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OXY · Analysis updated Nov 10, 2026, 6:00 PM ET
Why is Occidental Petroleum Corporation (OXY) stock moving?
Occidental reported Q3 2026 on Nov 9. Adjusted EPS of $1.91 beat the $1.46 estimate, and reported EPS was $1.61, with the gap mainly from derivatives losses. Revenue of $6.772B was slightly below the $6.791B estimate. Operating cash flow from continuing operations was $4.1B and free cash flow before working capital was $2.8B, with capex of $1.3B. Principal debt fell to $10.0B after $10.4B of debt was retired this year, and production of 1,427 Mboed beat the guidance midpoint. Management reiterated roughly flat production for 2027 and about $700M to $800M of sustainable cash flow improvement that year, and it advanced a plan to add more than $4.0B of annual sustainable cash flow by 2030. Headwinds include a Q4 rise in domestic lease operating expense from higher CO2 costs, lower Q4 gas marketing income, a September Gulf of America curtailment, and realized oil prices down 11% quarter over quarter to $85.91 per barrel. Long-term CO2 supply agreements in the Delaware Basin support the EOR business. The market data shows the stock falling from a $64.17 close on Oct 23 to a $55.76 close on Nov 9, a drop of about 13%, with a sharp leg down from $63.90 on Oct 30 to $60.72 on Nov 2 and $57.33 on Nov 4 on heavy volume. On Nov 10 it rebounded 2.0% to $56.90 on 16.8M shares, the highest volume in the 30-day window, after an intraday low of $53.86 and a high of $57.23, and it closed above its $56.35 VWAP. The post-earnings rebound on high volume is an early sign of support, but the stock is still well below its late-October range and the outlook depends on oil prices and Q4 cost headwinds.
News behind the analysis
- Occidental Petroleum Reports Third Quarter 2026 Financial ResultsQ3 net income was $1.6B ($1.61 per diluted share) and adjusted EPS from continuing operations was $1.91. Principal debt was cut to $10.0B after $1.8B of Q3 repayments.
- Occidental Petroleum Q3 Adj. EPS $1.91 Beats $1.46 Estimate, Sales $6.772B Miss $6.791B EstimateAdjusted EPS beat consensus by about 31%, while revenue came in slightly below estimates by about $19M.
- Occidental Announces Long-Term CO₂ Supply Agreements for Permian Basin EOR OperationsOccidental signed long-term agreements to secure CO₂ captured from third-party gas processing plants in the Delaware Basin for its enhanced oil recovery operations.
- Occidental Inks Agreements With Two Firms To Secure CO₂ Captured From Third-Party Natural Processing Sites In Delaware BasinTwo separate agreements secure CO₂ supply from third-party processing sites in the Delaware Basin, supporting enhanced oil recovery.
- Occidental Petroleum Expects Domestic Lease Operating Expense To Increase In Q4 Due To Higher CO2 Costs; Expects Lower Q4 Gas Marketing Income As Additional Permian Gas Takeaway Capacity Comes Online; Co Is Dropping 3 Rigs At The End Of 2026, Adding 15 More Wells OnlineManagement guided to higher domestic lease operating expense in Q4 from CO2 costs and lower gas marketing income. It is also dropping 3 rigs at year-end while adding 15 wells.
- Occidental Petroleum Continues To Expect Relatively Flat Production In 2027 Compared To 2026; Expects About $700M To $800M Of Sustainable Cash Flow Improvement In 2027 Relative To 2026Production is expected to stay roughly flat in 2027 versus 2026. Sustainable cash flow is expected to improve by about $700M to $800M in 2027.
- Occidental Petroleum Q3 2026 Earnings Call TranscriptTranscript of the Q3 2026 earnings call, where management discussed the quarter's results and outlook.
About Occidental Petroleum Corporation
Occidental Petroleum is a large Houston-based oil and gas producer. Its biggest operating area is the Permian Basin in Texas and New Mexico, and it also has assets in the Gulf of America (formerly called the Gulf of Mexico), Oman, the UAE and Algeria. It stands out for using CO2 to squeeze more oil out of older wells and for its carbon-capture work, including direct air capture. It sold its OxyChem chemicals unit to Berkshire Hathaway in January 2026, and Berkshire is also a major shareholder.
How it makes money
Since the OxyChem sale closed in January 2026, most of Occidental's revenue comes from selling the crude oil, natural gas and natural gas liquids it produces, at roughly 1.4–1.5 million barrels of oil equivalent per day. A smaller midstream and marketing segment makes money from moving, storing and trading oil and gas, and from its stake in Western Midstream (WES). A low-carbon unit is developing carbon capture and storage. Before the sale, chemicals made up roughly a fifth of revenue. The company has used the roughly $9.5 billion it received to pay down debt.
What usually moves OXY
- Crude oil and natural gas prices
- Permian Basin production and drilling costs
- Debt reduction and dividend changes
- Progress and costs of carbon-capture projects
- Berkshire Hathaway's ownership stake