How did Oxy perform in Q2 2026 compared with Q1 2026?

Adjusted EPS from continuing operations rose to $2.40 from $1.06, and reported diluted EPS was $2.75 versus $3.13 in Q1, which included a large discontinued-operations gain. Oil and gas pre-tax income rose to $2.8 billion from $1.0 billion, and midstream and marketing swung to $1.3 billion from a loss of $87 million, driven by higher realized crude prices and margin timing.

How strong was Oxy's cash flow and what did it do with it?

Operating cash flow from continuing operations was $5.1 billion and operating cash flow before working capital was $4.6 billion. After $1.6 billion of capex, free cash flow before working capital was $3.0 billion. The company used this to reduce principal debt by $1.9 billion to $11.8 billion and to raise its quarterly dividend to $0.28 per share.

What should investors watch in natural gas and commodity exposure?

Domestic realized gas prices were negative at -$1.48 per Mcf in Q2, compared with $1.01 in Q1, which weighed on results. Because realized oil prices rose sharply, future earnings will remain sensitive to crude prices, which were $92.79 WTI and $97.06 Brent for the quarter.

What is management's long-term outlook?

Management said it expects significant free cash flow growth by 2030, supported by advanced recovery capabilities, improved organic resource base, cost efficiencies, and continued debt reduction toward the $10.0 billion target. The filing itself contains no quantified guidance beyond the qualitative statements in the release.

Why do reported and adjusted results differ so much this year?

Reported results include items affecting comparability and discontinued operations. Year-to-date reported EPS is $5.89 versus adjusted EPS of $3.46, largely because of a $3.1 billion gain from discontinued operations recognized in Q1 2026, along with derivative losses, debt extinguishment costs, and impairments in the adjustments.

OXY/OXY-WT 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed August 5, 2026. Cited figures are marked; the original filing is the authoritative source.

Occidental Petroleum (OXY) reported second quarter 2026 results on August 5, 2026, with net income attributable to common stockholders of $2.8 billion^a, or $2.75 per diluted share, and adjusted EPS from continuing operations of $2.40.

The quarter was driven by a sharp rise in realized prices: worldwide realized oil averaged $96.78^b per barrel, up 38% from the first quarter, against WTI and Brent marker prices of $92.79 and $97.06. Oil and gas pre-tax income was $2.8 billion and midstream and marketing pre-tax income was $1.3 billion, a swing from an $87 million loss in the prior quarter. Production of 1,433 Mboed exceeded the high end of guidance, with the Permian and Gulf of America outperforming.

Domestic realized gas prices were negative at -$1.48^c per Mcf, a notable weak spot in the quarter. Cash generation and balance sheet repair were the other main themes. Operating cash flow from continuing operations was $5.1 billion, and operating cash flow before working capital was $4.6 billion.

Free cash flow before working capital from continuing operations was $3.0 billion^d, the highest since the third quarter of 2022, on capital expenditures of $1.6 billion. Management reduced principal debt by $1.9 billion to $11.8 billion and is working toward a $10.0 billion target. The company also raised its quarterly dividend by roughly 8% this year to $0.28 per share, payable October 15, 2026.

The quarter's reported results were flattered by items affecting comparability, including a $3.1 billion gain from discontinued operations, which is why reported EPS ($2.75) is above adjusted EPS ($2.40) on a continuing-operations basis. Management frames the outlook around resource organic improvement, cost efficiency, and significant free cash flow growth by 2030. Investors should weigh the strong Q2 cash flow against commodity-price sensitivity, since realized oil prices in this quarter were far above the first quarter's $69.91 per barrel.

02—Key points

Key Highlights

Net income attributable to common stockholders was $2.8 billion ($2.75 diluted EPS); adjusted EPS from continuing operations was $2.40, versus $1.06 in Q1 2026.
Realized worldwide oil price rose 38% quarter over quarter to $96.78/bbl, while domestic realized natural gas was negative at -$1.48/Mcf.
Free cash flow before working capital from continuing operations was $3.0 billion, the highest level since Q3 2022, with capex of $1.6 billion.
Principal debt was reduced by $1.9 billion to $11.8 billion, moving toward a $10.0 billion milestone.
Worldwide production of 1,433 Mboed exceeded the high end of guidance; midstream and marketing pre-tax adjusted income also beat the high end of guidance.
Quarterly dividend increased by about 8% this year to $0.28 per share, payable October 15, 2026, to holders of record as of September 10, 2026.
Reported results included a $3.1 billion net gain from discontinued operations in Q1 2026 (Q2 discontinued operations were minimal), so reported and adjusted figures diverge in 2026 year-to-date comparisons.

03—Questions

Frequently Asked Questions

How did Oxy perform in Q2 2026 compared with Q1 2026?
Adjusted EPS from continuing operations rose to $2.40 from $1.06, and reported diluted EPS was $2.75 versus $3.13 in Q1, which included a large discontinued-operations gain. Oil and gas pre-tax income rose to $2.8 billion from $1.0 billion, and midstream and marketing swung to $1.3 billion from a loss of $87 million, driven by higher realized crude prices and margin timing.
How strong was Oxy's cash flow and what did it do with it?
Operating cash flow from continuing operations was $5.1 billion and operating cash flow before working capital was $4.6 billion. After $1.6 billion of capex, free cash flow before working capital was $3.0 billion. The company used this to reduce principal debt by $1.9 billion to $11.8 billion and to raise its quarterly dividend to $0.28 per share.
What should investors watch in natural gas and commodity exposure?
Domestic realized gas prices were negative at -$1.48 per Mcf in Q2, compared with $1.01 in Q1, which weighed on results. Because realized oil prices rose sharply, future earnings will remain sensitive to crude prices, which were $92.79 WTI and $97.06 Brent for the quarter.
What is management's long-term outlook?
Management said it expects significant free cash flow growth by 2030, supported by advanced recovery capabilities, improved organic resource base, cost efficiencies, and continued debt reduction toward the $10.0 billion target. The filing itself contains no quantified guidance beyond the qualitative statements in the release.
Why do reported and adjusted results differ so much this year?
Reported results include items affecting comparability and discontinued operations. Year-to-date reported EPS is $5.89 versus adjusted EPS of $3.46, largely because of a $3.1 billion gain from discontinued operations recognized in Q1 2026, along with derivative losses, debt extinguishment costs, and impairments in the adjustments.

04—Continue

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