Occidental beats Q3 forecasts as higher production offsets lower crude prices

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Occidental beats Q3 forecasts as higher production offsets lower crude prices

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Oil (WTI)

Occidental Petroleum beat third-quarter forecasts on Monday as higher production and debt reduction offset weaker oil prices. Worldwide realized crude fell 11% to $85.91 per barrel, yet adjusted earnings still topped analyst expectations.

Occidental Petroleum posted adjusted earnings of $1.91 per share on Monday, beating analyst expectations of $1.34. Revenue reached $6.77 billion against a projected $6.61 billion. The Houston-based producer reported the results for the third quarter.

Production and debt reduction drive the beat

Operations in the Permian and Rockies lifted worldwide production to 1,427 thousand barrels of oil equivalent per day, above the midpoint of guidance. That output helped counterbalance temporary curtailments at several Gulf of Mexico assets caused by maintenance and third-party pipeline constraints.

Occidental also retired $1.8 billion of principal debt during the quarter. Total debt reductions since the start of 2026 now stand at $10.4 billion, and the company reached a key $10.0 billion principal debt milestone.

Lower crude prices weigh on earnings

However, lower realized prices hurt the quarter. Worldwide realized crude fell 11% to $85.91 per barrel, and pre-tax oil and gas earnings dropped to $2.6 billion from $2.8 billion in the prior period.

Domestic natural gas partly offset that pressure. Realizations rebounded to positive $1.61 per thousand cubic feet after regional pricing distress in the second quarter.

Cash flow and shares

Continuing operations generated $4.1 billion in operating cash flow before working capital and $2.8 billion in free cash flow, against $1.3 billion in capital expenditures. Net income attributable to common stockholders came in at $1.6 billion, or $1.61 per share. The gap between reported and adjusted figures mainly reflects non-cash derivative valuations.

Shares edged 0.5% higher in extended trading Monday as investors weighed broader energy price softening against the company's capital-return roadmap.

Source: Investing.com

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