Occidental Petroleum stock hits debt milestone after strong Q3 cash flow

Occidental Petroleum reported a strong third quarter on Monday, November 9, 2026, combining resilient production with a major balance-sheet milestone. The earnings release, carried by MarketScreener, said the company reduced principal debt to 10.0 billion US dollars after retiring 10.4 billion US dollars since the start of the year.

Occidental Petroleum stock traded at 51.63 euros on Lang & Schwarz at 14:09 CET on Wednesday, November 11, 2026.

Cash generation supports deleveraging

Net income attributable to common stockholders reached 1.6 billion US dollars, or 1.61 US dollars per diluted share, for the quarter ended September 30. Adjusted income from continuing operations was 2.0 billion US dollars, producing adjusted diluted earnings of 1.91 US dollars per share. Occidental said the difference mainly reflected losses from derivatives.

Operating cash flow from continuing operations totaled 4.1 billion US dollars. Free cash flow before working capital, a non-GAAP measure, came to 2.8 billion US dollars after 1.3 billion US dollars of capital spending. The release cautioned that such adjusted measures are not calculated under US GAAP and may not be directly comparable with similarly named measures used by other companies.

Occidental repaid 1.8 billion US dollars of principal debt during the quarter. Management said the new target is a 6.0 billion US dollar principal-debt milestone. Reaching that level would reduce annual interest expense to approximately 400 million US dollars, according to management commentary reported after the results.

Production beats quarterly guidance

Global production averaged 1,427 thousand barrels of oil equivalent per day, exceeding the midpoint of company guidance. Stronger performance in the Permian and Rockies helped offset a temporary curtailment at certain Gulf of America facilities caused by a third-party gas pipeline constraint and maintenance work.

The upstream result came despite weaker realized crude prices. Worldwide realized crude prices fell 11% from the second quarter to 85.91 US dollars per barrel, while oil and gas pre-tax income declined to 2.6 billion US dollars from 2.8 billion US dollars. Domestic realized gas prices improved sharply, partly offsetting the pressure from crude.

Midstream and marketing pre-tax income fell to 55 million US dollars from 1.3 billion US dollars in the previous quarter. Occidental attributed the decline to narrower Waha-to-Gulf-Coast gas spreads and the timing of crude sales. Excluding items affecting comparability, however, the segment exceeded the high end of its guidance range.

Balance sheet remains the central investment theme

Chief Executive Officer Richard Jackson said the debt milestone strengthens Occidental's financial position and supports a plan to add more than 4.0 billion US dollars in annual sustainable cash flow by 2030. That objective could give the company more flexibility for capital returns, but it remains dependent on commodity prices, operating execution, capital spending and debt repayment.

The quarter therefore presents a mixed operating picture. Production exceeded expectations and cash generation was strong, while lower crude realizations reduced upstream earnings and the midstream comparison was distorted by unusually high results in the prior quarter. The balance-sheet improvement is the clearest company-specific development for investors following the release.

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