Occidental Petroleum Beats Q3 Estimates and Targets New $6 Billion Debt Goal

Occidental Petroleum Corporation reported third-quarter 2026 adjusted earnings of $1.91 per share, up from $0.64 in the prior-year period and well ahead of analyst estimates. Revenues reached $6.77 billion, marking a 20.6% year-over-year increase. The company generated about $2.8 billion in free cash flow during the period, supported by onshore execution that helped counter disruptions in international and Gulf of America operations.

Following $1.8 billion in principal debt repayments in the quarter, Occidental reached its prior $10 billion balance sheet milestone, bringing year-to-date principal debt reductions to $10.4 billion. Chief financial officer Sunil Mathew established a new principal debt goal of $6 billion, which aligns with a debt-to-EBITDA ratio of approximately one at $50 West Texas Intermediate crude. Mathew stated that Occidental could reach this level and potentially reach a net cash position in 2027 under mid-cycle or current strip prices. The company ended the quarter with $3.9 billion in unrestricted cash.

Third-quarter production averaged 1.43 million barrels of oil equivalent per day, exceeding the midpoint of management guidance. For the fourth quarter, production is projected to range between 1.43 million and 1.47 million barrels of oil equivalent per day, as pipeline constraints in the Gulf carry over alongside impacts from an October hurricane. Looking ahead, Mathew identified approximately $5.9 billion as the starting capital spending plan for 2027, with overall output anticipated to remain relatively flat.

Chief executive officer Richard Jackson detailed plans to enhance sustainable cash flow by more than $4 billion annually by 2030 relative to 2025. The strategy centers on operational efficiencies, lower base decline rates, and expanding carbon capture and enhanced oil recovery projects. Occidental also confirmed that its STRATOS direct-air-capture facility is scheduled for startup around year-end before shifting to full operations in 2027, with a targeted 2028 project EBITDA of $90 million to $130 million.