01—Abstract
Summary
Summary of the 8-K filed July 10, 2026. Cited figures are marked; the original filing is the authoritative source.
On July 10, 2026, Occidental Petroleum (OXY) furnished an 8-K (Item 2.02, Exhibit 99.1) providing a preliminary set of "Earnings Considerations" for the second quarter of 2026.
The document is explicitly not a full earnings release or an estimate of Q2 2026 earnings; it is a partial, preliminary summary of factors management expects to affect results, and it may not capture all adjustments or charges. The information is furnished rather than filed, so it is not subject to Section 18 liability and is not incorporated into Securities Act filings unless specifically referenced. The most notable quantitative disclosures are realized prices and hedging drag.
Worldwide realized oil averaged $96.78a/Bbl (U.S. $96.93, International $95.83), closely tracking Brent at $97.06 and WTI at $92.79, with worldwide oil realizations at 104% of WTI and 100% of Brent. Crude collar settlements reduced operating cash flow before working capital by $156 million in the quarter. Diluted weighted-average shares were 1,012.2 million.
The gas and NGL data are the most striking. U.S. natural gas realized a negative $1.48b/Mcf, equal to about negative 51% of NYMEX ($2.89/Mcf), and worldwide gas averaged $(0.80)/Mcf, implying significant negative price realizations, likely from transportation, processing, or marketing costs exceeding sales value in some regions.
U.S. NGL realized $23.79c/Bbl (about 27% of WTI), while international NGL realized $33.49/Bbl. Investors should view these figures as preliminary and watch the full Q2 release for final results, reconciliation of these items, and management's commentary on the domestic gas realization gap.
02—Key points
Key Highlights
- Worldwide average realized oil price of $96.78/Bbl for Q2 2026, at 104% of average WTI ($92.79) and 100% of average Brent ($97.06).
- Crude oil collar settlements reduced Q2 2026 operating cash flow before working capital by $156 million, reflecting hedging losses in a higher-price environment.
- U.S. natural gas realized a negative $1.48/Mcf in Q2 2026, or roughly (51)% of the $2.89/Mcf NYMEX average; worldwide gas realized $(0.80)/Mcf.
- Worldwide NGL realized $24.64/Bbl (about 27% of WTI), with U.S. NGL at $23.79/Bbl and international NGL at $33.49/Bbl.
- Average diluted shares outstanding of 1,012.2 million for Q2 2026, a key input for per-share metrics.
- The disclosure is preliminary, partial, and explicitly not an estimate of Q2 2026 earnings; final results will come with the full earnings release.
- Information is furnished under Item 2.02 and Exhibit 99.1 and is not deemed filed under Section 18 of the Exchange Act.
03—Questions
Frequently Asked Questions
Does this filing provide Occidental's Q2 2026 earnings?
No. The document explicitly states it is not an estimate of Q2 2026 earnings and is not comprehensive. It lists factors management believes will affect results, such as realized prices and hedging cash flows, and may not account for all adjustments or charges. Full results should be expected in the later quarterly earnings release and Form 10-Q.
How did hedging affect Occidental's Q2 2026 cash flow?
Crude oil collar settlements reduced operating cash flow before working capital by $156 million in Q2 2026. Because oil prices were high, the collars generated payments out, which offset some of the benefit of strong realized prices.
Why are the natural gas realization figures negative?
Realized U.S. natural gas was $(1.48)/Mcf against a NYMEX average of $2.89/Mcf, or about negative 51% of the benchmark. Negative realizations typically reflect transportation, processing, or marketing costs exceeding the sales value at the point of sale, often due to regional pipeline constraints or basis differentials. The filing does not explain the cause, so investors should look for management commentary in the full earnings materials.
Is the information in this 8-K legally actionable as a filed statement?
The information is furnished under Item 2.02, not filed. Under the filing's terms, it is not deemed filed for purposes of Section 18 of the Exchange Act and is not incorporated into Securities Act or Exchange Act filings unless specifically referenced. The document also contains extensive forward-looking statement disclaimers, and the company does not undertake to update them.
Why does the share count matter for investors?
Average diluted shares of 1,012.2 million are the denominator for per-share earnings and cash flow metrics. Investors can use this figure with net income or cash flow data from the full earnings release to compute per-share results and assess dilution or buyback effects over time.
04—Continue