OCCIDENTAL PETROLEUM CORP /DE/
For the period ended Sep 30, 2026. Filed Nov 9, 2026.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2026 · Filed Nov 9, 2026
OXY$55.76-1.1%Stored close · as of Nov 9, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2026-06-30; filed 2026-08-05.
0001628280-26-053388
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCautionary Statement Regarding Forward-Looking StatementsCurrent Business OutlookConsolidated Results of OperationsSegment Results of OperationsIncome TaxesLiquidity and Capital ResourcesEnvironmental Liabilities and ExpendituresLawsuits, Claims, Commitments and ContingenciesCurrent report: 10-Q
Period ended 2026-09-30; filed 2026-11-09.
0001628280-26-072198
Item 2. Managements Discussion and Analysis of Financial Condition and Results of OperationsCautionary Statement Regarding Forward-Looking StatementsCurrent Business OutlookConsolidated Results of OperationsSegment Results of OperationsIncome TaxesLiquidity and Capital ResourcesEnvironmental Liabilities and ExpendituresLawsuits, Claims, Commitments and ContingenciesThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 88 previous paragraphs and 89 current paragraphs.
57 unchanged; 24 reworded; 7 added; 7 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 9 previous and 9 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
The Company's financial results are significantly influenced by crude oil prices and, to a lesser extent, NGL and natural gas prices and commodity market differentials. Third-quarter 2026 average WTI and Brent prices were $85.79 and $91.62 per barrel, respectively, down from $92.79 and $97.06 per barrel in the second quarter. For the first nine months of 2026, average WTI and Brent prices were $83.50 and $88.87 per barrel, respectively, compared to $66.70 and $69.87 per barrel in the prior-year period.
Current report
U.S. trade policy actions and tariffs could affect the Company's operations and financial performance. While no material impact has occurred year to date, future trade policies may increase supplier costs and affect product demand, supply chain efficiency, and oil and gas commodity prices.
Current report
Interest and debt expense, net decreased to $618 million for the nine months ended September 30, 2026, compared to $847 million for the same period in 2025, primarily due to reduced long-term debt.
Current report
Average daily sales volumes were lower for the three months ended September 30, 2026, compared with the three months ended June 30, 2026, resulting from lower domestic volumes due to planned and unplanned maintenance at certain Gulf of America facilities and a third-party gas pipeline constraint.
Current report
Midstream and marketing segment earnings for the three months ended September 30, 2026 were $55 million, compared to segment earnings of $1.3 billion for the three months ended June 30, 2026. Excluding the impact of items affecting comparability, third quarter results decreased due to lower gas margins due to the narrowing of the Waha-to-Gulf-Coast gas spreads in the third quarter and lower crude margins related to the timing impact of crude sales, partially offset by higher sulfur volumes and prices at Al Hosn.
Current report
During the first nine months of 2026, outstanding debt decreased from approximately $20.4 billion at December 31, 2025 to approximately $10.0 billion at September 30, 2026. The corresponding annualized interest on outstanding debt decreased from approximately $1.24 billion to approximately $655 million, which is expected to reduce the Company's cash interest requirements in future periods.
Removed paragraphs (7)
Previous report
The Company's financial results are significantly influenced by crude oil prices and, to a lesser extent, NGL and natural gas prices and commodity market differentials. The average WTI price per barrel was $92.79 for the three months ended June 30, 2026, compared with $71.93 for the three months ended March 31, 2026. The average WTI price per barrel was $82.36 for the six months ended June 30, 2026, compared with $67.58 for the six months ended June 30, 2025.
Previous report
Recent U.S. trade policy actions, including the implementation of tariff replacement measures, could also affect the Company's operations and financial performance. Although the Company has not experienced a material impact to date, tariffs or tariff replacement measures imposed on suppliers could increase costs over time. In addition, broader economic impacts and uncertainty associated with evolving trade policies could affect demand for the Company's products and the prices realized for its production.
Previous report
In August 2026, the Board increased the quarterly dividend by 8% to $0.28 per share, which will be payable on October 15, 2026 to shareholders of record as of September 10, 2026.
Previous report
Gains (losses) on sales of assets and other, net were a gain of $180 million for the three months ended June 30, 2026, compared with a loss of $202 million for the three months ended March 31, 2026. The gain on sale of assets and other, net for the three months ended June 30, 2026 included a gain of $220 million from a pro-rata ownership reduction in WES following an acquisition made by WES. The loss on sale of assets and other, net for the three months ended March 31, 2026 reflected a loss of approximately $200 million on the divestiture of non-core oil and gas interests and certain gas processing plants in the Permian Basin.
Previous report
Interest and debt expense, net decreased to $108 million for the three months ended June 30, 2026, compared to $432 million for the three months ended March 31, 2026, primarily due to premiums paid on early debt extinguishment in the three months ended March 31, 2026 and lower interest expense in the three months ended June 30, 2026 as a result of lower outstanding debt.
Previous report
Average daily sales volumes were generally consistent for the three months ended June 30, 2026, compared with the three months ended March 31, 2026, as modest increases in domestic NGL and natural gas volumes were largely offset by lower international oil, NGL, and natural gas volumes.
Previous report
Midstream and marketing segment earnings for the three months ended June 30, 2026 were $1.3 billion, compared to segment losses of $87 million for the three months ended March 31, 2026. Excluding the impact of items affecting comparability, second quarter results improved primarily due to higher crude margins driven by the timing impact of crude marketing, reflecting the lag between the purchase of crude volumes and their subsequent sale, and higher gas margins from transportation capacity optimizations.
Reworded paragraphs (24)
Previous wording
Changes in commodity prices may affect the Company's capital allocation decisions, including the level and timing of investments, which could affect future production volumes. Oil prices are expected to remain volatile due to a variety of factors, including geopolitical developments, macroeconomic conditions and their impact on global energy demand, actions by OPEC and non-OPEC producing countries, and changes in U.S. trade policy.
Current wording
Commodity prices are expected to remain volatile due to a variety of factors, including geopolitical developments, macroeconomic conditions and their impact on global energy demand, actions by OPEC and non-OPEC producing countries, and changes in U.S. trade policy. Commodity prices during the third quarter of 2026 were impacted in part by geopolitical risk premiums associated with conflicts and instability in the Middle East and the resulting uncertainty affecting global energy markets.
Previous wording
Commodity prices during the second quarter benefited in part from risk premiums associated with the conflict involving Iran and resulting disruptions to regional energy markets and trade flows. Although shipping activity through the Strait of Hormuz improved during portions of the quarter following diplomatic efforts, recent developments have underscored the continued fragility of those conditions. Ongoing geopolitical uncertainty, potential disruptions to maritime transportation and energy infrastructure, and evolving governmental responses could continue to influence commodity prices and contribute to market volatility. The duration, scope and ultimate outcome of the conflict remain uncertain and could continue to affect energy markets, global economic conditions and commodity prices.
Current wording
While geopolitical conditions fluctuated during the quarter, global energy supply, transportation and trade networks remain exposed to international developments that could affect the production, transportation and delivery of crude oil and other commodities. Ongoing uncertainty related to conflicts and tensions in the Middle East, including the potential for disruptions to global energy supply, transportation routes, export infrastructure and regional trade flows, as well as evolving governmental actions, sanctions measures and diplomatic efforts, could continue to influence commodity prices and contribute to market volatility. The duration, scope and ultimate outcome of such developments remain uncertain and could affect global economic conditions, energy markets and the prices realized for the Company's production.
Previous wording
The Company is focused on delivering a unique shareholder value proposition with its portfolio of oil and gas and midstream and marketing assets, as well as its ongoing development of carbon management and sequestration solutions and GHG emissions reduction efforts. The Company conducts its operations with an emphasis on technical expertise, HSE, sustainability and social responsibility, and is advancing integrated technologies in CO2, power and midstream to enable differentiated resource recovery and value.
Current wording
The Company is focused on delivering a unique shareholder value proposition with its portfolio of oil and gas and midstream and marketing assets, as well as its ongoing development of carbon management and sequestration solutions and GHG emissions reduction efforts. The Company conducts its operations with an emphasis on technical expertise, HSE, sustainability and social responsibility, and is advancing integrated technologies in CO 2, power and midstream to enable differentiated resource recovery and value.
Previous wording
During the six months ended June 30, 2026, the Company used after-tax proceeds from the OxyChem Transaction and cash from operations to repay approximately $8.6 billion of debt. For information on the Company's debt activity, see Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.
Current wording
During the nine months ended September 30, 2026, the Company used approximately $7.9 billion of net after-tax proceeds from the OxyChem Transaction and cash from operations to repay approximately $10.4 billion of debt. For information on the Company's debt activity, see Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.
Previous wording
Excluding the impact of items affecting comparability, net income increased for the three months ended June 30, 2026, compared to the three months ended March 31, 2026, primarily due to higher realized crude oil prices in the oil and gas segment and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
Current wording
Excluding the impact of items affecting comparability, net income decreased for the three months ended September 30, 2026, compared to the three months ended June 30, 2026, primarily due to lower realized crude oil prices in the oil and gas segment and lower marketing margins related to the narrowing of the Waha-to-Gulf-Coast spread and the timing impact of crude sales. These decreases were partially offset by higher realized domestic natural gas prices in the oil and gas segment.
Previous wording
Excluding the impact of items affecting comparability, net income increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher marketing margins from natural gas transportation capacity optimization activities in the Permian, the timing of crude sales, lower long-haul crude transportation costs, higher sulfur prices at Al Hosn and lower interest expense due to reduced long-term debt. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
Current wording
Excluding the impact of items affecting comparability, net income increased for the nine months ended September 30, 2026, compared to the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher marketing margins from natural gas transportation capacity optimization activities in the Permian, the timing of crude sales and lower long-haul crude transportation costs, higher sulfur prices at Al Hosn and lower interest expense due to reduced long-term debt. These increases were partially offset by lower realized domestic natural gas prices in the oil and gas segment.
Previous wording
Net sales increased to $8.1 billion for the three months ended June 30, 2026, compared to $5.2 billion for the three months ended March 31, 2026, primarily due to higher crude oil prices and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
Current wording
Net sales decreased to $6.6 billion for the three months ended September 30, 2026, compared to $8.1 billion for the three months ended June 30, 2026, primarily due to lower crude oil prices and lower marketing margins related to the narrowing of the Waha-to-Gulf-Coast spread and the timing impact of crude sales. These decreases were partially offset by higher realized domestic natural gas prices in the oil and gas segment and partially offset by higher sulfur volumes and prices at Al Hosn.
Previous wording
Income tax expense increased to $915 million for the three months ended June 30, 2026, compared to $154 million for the three months ended March 31, 2026, primarily due to higher pre-tax income earned in the three months ended June 30, 2026.
Current wording
Income tax expense decreased to $554 million for the three months ended September 30, 2026, compared to $915 million for the three months ended June 30, 2026, primarily due to lower pre-tax income earned in the three months ended September 30, 2026.
Previous wording
Net sales increased to $13.3 billion for the six months ended June 30, 2026, compared to $11.0 billion for the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher sulfur prices at Al Hosn, and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices and derivative losses on the crude oil collars in the oil and gas segment.
Current wording
Net sales increased to $19.9 billion for the nine months ended September 30, 2026, compared to $16.5 billion for the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian, and higher sulfur prices at Al Hosn. These increases were partially offset by lower realized domestic natural gas prices and derivative losses on the crude oil collars in the oil and gas segment.
Previous wording
Income tax expense increased to $1.1 billion for the six months ended June 30, 2026, compared to $569 million for the same period in 2025, primarily due to higher pre-tax income in the six months ended June 30, 2026.
Current wording
Income tax expense increased to $1.6 billion for the nine months ended September 30, 2026, compared to $848 million for the same period in 2025, primarily due to higher pre-tax income in the nine months ended September 30, 2026.
Previous wording
Average daily sales volumes increased for the six months ended June 30, 2026, compared with the same period in 2025, primarily due to development activity and new wells coming online in the Permian and the effect in 2025 of a third-party pipeline disruption affecting the Company's Gulf of America operations. These increases were partially offset by lower international sales volumes associated with disruptions resulting from conflict in the Middle East.
Current wording
Average daily sales volumes increased for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to development activity and new wells coming online in the Permian. These increases were partially offset by lower international sales volumes associated with disruptions resulting from conflicts in the Middle East and the impact of higher prices on production sharing contracts.
Previous wording
Oil and gas segment earnings were $2.8 billion for the three months ended June 30, 2026, compared with $1.0 billion for the three months ended March 31, 2026. The increase was primarily driven by higher realized crude oil and NGL prices and derivative gains, partially offset by lower domestic natural gas realizations.
Current wording
Oil and gas segment earnings were $2.6 billion for the three months ended September 30, 2026, compared with $2.8 billion for the three months ended June 30, 2026. Excluding the impact of items affecting comparability, the decrease was primarily driven by lower realized crude oil prices, partially offset by higher realized domestic natural gas prices.
Previous wording
Oil and gas segment earnings were $3.9 billion for the six months ended June 30, 2026, compared with $2.6 billion for the same period in 2025. The increase was primarily driven by higher realized crude oil prices and higher sales volumes, partially offset by lower domestic natural gas realizations and crude oil derivative losses.
Current wording
Oil and gas segment earnings were $6.4 billion for the nine months ended September 30, 2026, compared with $3.9 billion for the same period in 2025. Excluding the impact of items affecting comparability, the increase was primarily driven by higher realized crude oil prices, partially offset by lower realized domestic natural gas prices.
Previous wording
Midstream and marketing segment earnings for the six months ended June 30, 2026 were $1.3 billion, compared to segment losses of $33 million for the same period in 2025. Excluding the impact of items affecting comparability, the increase reflected higher crude margins driven by the timing impact of crude marketing, higher gas margins from transportation capacity optimization, and lower crude marketing transportation costs. Results also benefitted from higher sulfur prices at Al Hosn.
Current wording
Midstream and marketing segment earnings for the nine months ended September 30, 2026 were $1.3 billion, compared to segment earnings of $48 million for the same period in 2025. Excluding the impact of items affecting comparability, the increase reflected higher crude margins driven by the timing impact of crude sales and lower crude marketing transportation costs, higher gas margins from transportation capacity optimizations in the Permian, and higher sulfur prices at Al Hosn.
Previous wording
Income from discontinued operations, net of taxes of $3.1 billion increased for the six months ended June 30, 2026, compared to $245 million for the same period in 2025. The increase was primarily due to the $3.1 billion gain recognized upon closing the OxyChem Transaction.
Current wording
Income from discontinued operations, net of taxes of $3.1 billion increased for the nine months ended September 30, 2026, compared to $381 million for the same period in 2025. The increase was primarily due to the $3.1 billion gain recognized upon closing the OxyChem Transaction.
Previous wording
As of June 30, 2026, the Company's sources of liquidity included $4.2 billion of cash and cash equivalents and $4.2 billion of borrowing capacity under its RCF, which matures on June 30, 2028. There were no borrowings outstanding under the Company's RCF as of June 30, 2026.
Current wording
As of September 30, 2026, the Company's sources of liquidity included $3.9 billion of cash and cash equivalents and $4.2 billion of borrowing capacity under its RCF, which matures on June 30, 2028. There were no borrowings outstanding under the Company's RCF as of September 30, 2026.
Previous wording
Operating cash flow from continuing operations was $6.5 billion for the six months ended June 30, 2026, compared to $4.8 billion for the six months ended June 30, 2025. Operating cash flow from continuing operations for the six months ended June 30, 2026 included $183 million in cash settlements related to crude oil collars. The increase, compared to the same period in 2025, was primarily due to higher net income in 2026 resulting from the sharp increase in crude oil prices beginning in March 2026 and higher natural gas margins from gas transportation capacity optimization in the marketing segment.
Current wording
Operating cash flow from continuing operations was $10.6 billion for the nine months ended September 30, 2026, compared to $7.2 billion for the nine months ended September 30, 2025. Operating cash flow from continuing operations for the nine months ended September 30, 2026 included $238 million in cash settlement payments related to crude oil collars. The increase, compared to the same period in 2025, was primarily due to higher net income in 2026 resulting from the significant increase in crude oil prices beginning in March 2026, higher natural gas margins from gas transportation capacity optimization in the marketing segment and higher sulfur prices at Al Hosn.
Previous wording
Operating cash flow used by discontinued operations was $926 million for the six months ended June 30, 2026, compared to operating cash flow from discontinued operations of $347 million for the six months ended June 30, 2025. The decrease was primarily due to estimated tax payments made related to the sale of OxyChem in the first quarter of 2026.
Current wording
Operating cash flow used by discontinued operations was $1.4 billion for the nine months ended September 30, 2026, compared to operating cash flow from discontinued operations of $690 million for the nine months ended September 30, 2025. The change in operating cash flows from discontinued operations primarily reflected the January 2, 2026 divestiture of OxyChem and income tax payments made subsequent to the sale, compared to nine months of OxyChem operations in 2025.
Previous wording
The Company's net cash used by investing activities from continuing operations was $3.4 billion for the six months ended June 30, 2026, compared to $2.2 billion for the six months ended June 30, 2025. The year-over-year change was primarily due to $1.5 billion in proceeds from divestitures in the prior year.
Current wording
The Company's net cash used by investing activities from continuing operations was $5.0 billion for the nine months ended September 30, 2026, compared to $3.2 billion for the nine months ended September 30, 2025. The year-over-year change was primarily due to $2.2 billion in proceeds from divestitures in the prior year.
Previous wording
Capital expenditures, the majority of which related to the oil and gas segment, were $3.1 billion for the six months ended June 30, 2026, compared to $3.4 billion for the six months ended June 30, 2025.
Current wording
Capital expenditures, the majority of which related to the oil and gas segment, were $4.5 billion for the nine months ended September 30, 2026, compared to $4.9 billion for the nine months ended September 30, 2025.
Previous wording
Cash flow provided by investing activities from discontinued operations was $9.5 billion for the six months ended June 30, 2026, primarily reflecting proceeds from the OxyChem Transaction.
Current wording
Cash flow provided by investing activities from discontinued operations was $9.4 billion for the nine months ended September 30, 2026, reflecting proceeds from the OxyChem Transaction.
Previous wording
The Company's net cash used by financing activities from continuing operations was $9.5 billion for the six months ended June 30, 2026, which included $8.6 billion of principal payments on long-term debt and $0.8 billion of payments of common and preferred cash dividends. See Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q.
Current wording
The Company's net cash used by financing activities from continuing operations was $11.8 billion for the nine months ended September 30, 2026, which included $10.5 billion of payments of debt and $1.3 billion of payments of common and preferred cash dividends. See Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q.
Previous wording
Net cash used by financing activities for the six months ended June 30, 2025 was $2.2 billion, which included $2.3 billion of payments on long-term debt, $0.8 billion of payments of common and preferred cash dividends and proceeds of approximately $890 million from the exercise of common stock warrants.
Current wording
Net cash used by financing activities for the nine months ended September 30, 2025 was $3.9 billion, which included $3.6 billion of payments on long-term debt and $1.2 billion of payments of common and preferred cash dividends, partially offset by proceeds of approximately $890 million from the exercise of common stock warrants.
Previous wording
As of the date of this filing, the Company is in compliance with all covenants in its financing agreements, and it has no remaining debt maturities due in 2026, $48 million in 2027, $14 million in 2028, $352 million in 2029, and $11.4 billion thereafter. The Company expects cash on hand, operating cash flows and funds available from the RCF to be sufficient to meet its near-term debt maturities, operating expenditures, capital expenditures and other obligations for the next 12 months from the date of this filing.
Current wording
As of the date of this filing, the Company is in compliance with all covenants in its financing agreements, and has no debt maturities due in 2026, $48 million in 2027, $14 million in 2028, $352 million in 2029, and $9.6 billion thereafter. The Company expects cash on hand, operating cash flows and funds available from the RCF to be sufficient to meet its near-term debt maturities, operating expenditures, capital expenditures and other obligations for the next 12 months from the date of this filing. Subsequent to September 30, 2026, but before the date of this filing, Occidental used cash on hand to repay the remaining $33 million of Zero Coupon senior notes due 2036.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
Changes in commodity prices may affect the Company's capital allocation decisions, including the level and timing of investments, which could affect future production volumes.