Occidental Petroleum (OXY.US) Q3 net profit surged 148% year over year to US$1,637 billion, with cumulative debt reduction of US$10.4 billion during the year

The Zhitong Finance App learned that Occidental Petroleum (OXY.US) announced financial results for the third quarter of 2026 on Monday. Benefiting from the rise in energy prices compared to the same period last year, the company achieved year-on-year growth in both quarterly revenue and net profit. However, due to the month-on-month decline in crude oil sales prices, oil and gas business profits declined somewhat compared to the previous quarter. After the earnings report was released, the stock rose more than 1% after the market.

According to financial reports, Occidental Petroleum's third-quarter revenue was US$6.567 billion, up about 19% from US$5.519 billion in the same period last year, but lower than the previous quarter's US$8.065 billion, down about 19% from the previous quarter.

According to US GAAP calculations, the company's net profit attributable to common shareholders in the third quarter was US$1,637 million, up about 148% from US$661 million in the same period last year, but lower than US$2,807 million in the previous quarter. Earnings per diluted share were $1.61, compared to $0.65 for the same period last year and $2.75 for the previous quarter.

In non-GAAP terms, Occidental's adjusted net profit from continuing operations in the third quarter was US$1,951 million, up about 280% year over year; adjusted diluted earnings per share were US$1.91, compared to US$0.51, compared to US$2.40 in the previous quarter.

The company stated that the difference between GAAP net profit and adjusted net profit mainly reflects losses in derivatives transactions.

Crude oil prices fell 11% month-on-month, putting pressure on oil and gas business profits

By business, Occidental Petroleum's oil and gas business profit before tax in the third quarter was US$2,556 million, down from US$2,849 million in the previous quarter. The company pointed out that after excluding projects affecting comparability, the decline in profit was mainly dragged down by lower actual sales prices of crude oil, but the rise in gas prices in the US partially offset this effect.

In the third quarter, the average actual sales price of Occidental Petroleum's global crude oil was 85.91 US dollars per barrel, down about 11% from the previous quarter's 96.78 US dollars; the average sales price of global liquefied natural gas was 24.63 US dollars per barrel, which was basically the same from month to month. Meanwhile, the average actual sales price of natural gas in the US rose from negative $1.48 per thousand cubic feet to $1.61 in the previous quarter.

In terms of production, the company's average daily oil and gas production in the third quarter was 1.427 million barrels of oil equivalent, higher than the median value in the company's previous guidance range, but slightly lower than the previous quarter's 1,433 million barrels of oil equivalent.

Occidental Petroleum said that the Permian Basin and Rocky Mountain business performed well, offsetting the impact of temporary production cuts at some facilities in the Gulf of Mexico due to third party gas pipeline restrictions and maintenance activities.

In terms of the midstream and marketing business, profit before tax for the third quarter was US$55 million, far lower than the previous quarter's US$1,338 million. The company said that the main reasons include declining profit margins due to narrowing of regional price spreads for natural gas, and the impact of crude oil sales schedules on the profit margin of the crude oil business. However, after excluding projects that affected comparability, the adjusted performance of the business still exceeded the upper limit of the company's previous guidance range.

Operating cash flow reached US$4.1 billion; cumulative debt reduction of US$10.4 billion over the year

In terms of cash flow, Occidental Petroleum's operating cash flow in the third quarter was approximately US$4.1 billion, free cash flow before deducting changes in working capital was approximately US$2,779 billion, and capital expenditure was approximately US$1.3 billion.

Debt reduction was also a major focus of this quarter's earnings report. Occidental Petroleum said that the principal amount of debt was further reduced by 1.8 billion US dollars in the third quarter, reducing the principal debt to 10 billion US dollars, reaching the company's important deleveraging goals. Since this year, the company has repaid a total of 10.4 billion US dollars in debt.

Occidental Petroleum President and CEO Richard Jackson said that the company achieved an important milestone in the third quarter, paying back a total of 10.4 billion US dollars in debt since the beginning of the year, driving down the principal amount of debt to 10 billion US dollars.

Jackson pointed out that as the balance sheet is further improved, the company is advancing a plan with the goal of increasing annual sustainable cash flow by more than $4 billion by 2030, thereby laying the foundation for accelerating return on shareholder capital and creating long-term shareholder value.