01—Abstract
Summary
Summary of the 10-Q filed November 9, 2026. Cited figures are marked; the original filing is the authoritative source.
Occidental Petroleum Corporation (OXY) reported strong financial results for the nine months ended September 30, 2026, driven by higher commodity prices and the successful divestiture of OxyChem.
Net sales increased to $19.9 billiona from $16.5 billion in the prior year period, reflecting a significant rise in crude oil prices. The company also generated a substantial gain of approximately $3.1 billion, net of taxes, from the sale of OxyChem on January 2, 2026, which has been reported as discontinued operations. Profitability saw a dramatic improvement, with net income soaring to $8.2 billion from $2.3 billion in the same period last year.
This was bolstered by robust performance in the oil and gas segment, which saw segment income increase by 63% year-over-year. The company also made significant progress in deleveraging its balance sheet, reducing total debt from $20.4 billion at the end of 2025 to $10.0 billionb by September 30, 2026, utilizing proceeds from the OxyChem sale and operational cash flow.
02—Key points
Key Highlights
- Occidental Petroleum reported a significant increase in net income to $8.18 billion for the nine months ended September 30, 2026, up from $2.26 billion in the prior year period.
- Net sales for the nine months ended September 30, 2026, reached $19.86 billion, a substantial increase from $16.48 billion in the comparable 2025 period, driven by higher commodity prices.
- The company successfully completed the divestiture of OxyChem on January 2, 2026, for $9.5 billion, recognizing a net gain of approximately $3.1 billion, which is reported under discontinued operations.
- Total debt was reduced significantly from $20.43 billion as of December 31, 2025, to $9.98 billion as of September 30, 2026, demonstrating effective balance sheet management.
- Operating cash flow from continuing operations increased to $10.61 billion for the nine months ended September 30, 2026, up from $7.21 billion in the prior year period, reflecting improved profitability.
- Capital expenditures for the nine months ended September 30, 2026, were $4.47 billion, a slight decrease from $4.90 billion in the same period last year, indicating disciplined investment.
- The company's oil and gas segment showed strong performance, with segment income increasing to $6.42 billion for the nine months ended September 30, 2026, compared to $3.93 billion in the prior year.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed November 9, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $6.57B$5.52B | +19.0% |
| SG&A Expenses | $224.00M$238.00M | −5.9% |
| Interest Expense | $939.00M$1.21B | −22.5% |
| Net Income | $1.82B$842.00M | +116.3% |
| EPS (Basic) | $1.63$0.67 | +143.3% |
| EPS (Diluted) | $1.61$0.65 | +147.7% |
| Shares Outstanding (Basic) | 1.00B986.40M | +1.5% |
| Shares Outstanding (Diluted) | 1.01B1.00B | +1.0% |
05—Questions
Frequently Asked Questions
What were the primary drivers of Occidental Petroleum's improved financial performance in the nine months ended September 30, 2026?
The improved financial performance was primarily driven by higher commodity prices, particularly for crude oil, which boosted net sales and profitability in the oil and gas segment. Additionally, the significant gain from the divestiture of OxyChem significantly contributed to net income. Strong operational cash flow and successful debt reduction also played a key role.
How did the divestiture of OxyChem impact Occidental Petroleum's financial statements?
The sale of OxyChem on January 2, 2026, resulted in a substantial gain of approximately $3.1 billion (net of taxes), which is reported under discontinued operations for the nine-month period. This transaction also provided significant cash proceeds that were used to reduce debt and strengthen the company's balance sheet.
What is the company's current debt position and outlook?
Occidental Petroleum has made significant strides in reducing its debt. Total debt decreased from approximately $20.4 billion at the end of 2025 to $10.0 billion by September 30, 2026. The company has no debt maturities in 2026 and expects cash on hand, operating cash flows, and its revolving credit facility to be sufficient to meet its obligations. The majority of its outstanding debt is fixed-rate.
How are Occidental Petroleum's operating segments performing?
The oil and gas segment is performing strongly, with segment income up 63% year-over-year due to higher oil prices. The midstream and marketing segment also showed substantial growth in segment income, increasing by over 2,600% compared to the prior year period, driven by factors like transportation capacity optimization and higher sulfur prices.
06—Continue