Occidental Petroleum Reports $1.61 EPS as Debt Reduction Continues

Occidental Petroleum reported third-quarter 2026 earnings per share of $1.61, alongside a significant step in debt reduction, bringing principal debt down to $10.0 billion after retiring $10.4 billion year-to-date. The results demonstrate a continuing trend of strong cash flow generation despite a slight decline in oil prices.

While pre-tax income from oil and gas decreased to $2.6 billion from $2.8 billion in the second quarter, the company benefited from higher domestic natural gas prices, which increased significantly to $1.61 per thousand cubic feet. This offset some of the impact of an 11% decrease in average worldwide realized crude oil prices to $85.91 per barrel. Total global production averaged 1,427 thousand barrels of oil equivalent per day (Mboed), exceeding the company’s guidance.

The midstream and marketing segment experienced a decrease in pre-tax income to $55 million, down from $1.3 billion in the prior quarter, largely due to narrowing gas spreads and timing of crude sales. However, results still exceeded the high end of guidance. WES equity method investment income contributed $121 million to the quarter. Importantly, Occidental generated $4.1 billion in operating cash flow and $2.8 billion in free cash flow, demonstrating the company’s ability to convert production into liquidity.

Occidental’s focus on debt reduction and strong cash flow generation positions it to pursue its plan of adding more than $4.0 billion in annual sustainable cash flow by 2030. The company’s ability to navigate fluctuating commodity prices and maintain financial discipline suggests a pathway for continued capital returns and shareholder value.