Occidental Petroleum (OXY.US) Q3 net profit surged 148% year-on-year to $1.637 billion, with $10.4 billion in debt reduced year-to-date

According to Zhitong Finance APP, Occidental Petroleum (OXY.US) released its Q3 2026 earnings report on Monday. Benefiting from higher energy prices compared to the same period last year, the company achieved year-over-year growth in both quarterly revenue and net profit. However, due to a quarter-on-quarter decline in crude oil selling prices, profits from the oil and gas segment fell compared to the previous quarter. After the earnings report was released, the stock rose more than 1% after hours.

The financial report shows that Occidental Petroleum’s third-quarter revenue was $6.567 billion, up about 19% from $5.519 billion in the same period last year, but down about 19% from $8.065 billion in the previous quarter on a quarter-on-quarter basis.

Under US GAAP, net profit attributable to common shareholders for the third quarter was $1.637 billion, an increase of about 148% from $661 million in the same period last year, but below $2.807 billion in the previous quarter. Diluted earnings per share were $1.61, compared to $0.65 a year ago and $2.75 in the previous quarter.

On a non-GAAP basis, Occidental Petroleum’s adjusted net profit from continuing operations for the third quarter was $1.951 billion, up about 280% from $513 million in the same period last year; adjusted diluted earnings per share were $1.91, compared to $0.51 in the same period last year and $2.40 in the previous quarter.

The company stated that the difference between GAAP and adjusted net profit mainly reflects derivative trading losses.

Crude Oil Prices Fall 11% QoQ, Oil & Gas Profits Under Pressure

By business segment, Occidental Petroleum’s pre-tax profit from oil and gas operations in the third quarter was $2.556 billion, lower than $2.849 billion in the previous quarter. The company noted that after excluding non-comparable items, the profit decline was mainly dragged down by a drop in actual crude oil sales prices, though rising US domestic natural gas prices partially offset this impact.

In the third quarter, Occidental Petroleum’s global average actual crude oil sales price was $85.91 per barrel, down about 11% from $96.78 per barrel in the previous quarter; the global average liquefied natural gas sales price was $24.63 per barrel, remaining flat quarter-on-quarter. Meanwhile, the average actual selling price of US domestic natural gas rose to $1.61 per thousand cubic feet from negative $1.48 in the prior quarter.

In terms of production, the company’s average global oil and gas output for the third quarter was 1.427 million barrels of oil equivalent per day, above the midpoint of previous company guidance but slightly below the 1.433 million barrels per day in the last quarter.

Occidental Petroleum said that the solid performance in the Permian Basin and Rockies offset the impact of temporary reduction in output from some Gulf of Mexico facilities due to third-party gas pipeline restrictions and maintenance activities.

For the midstream and marketing business, third-quarter pre-tax profit was $55 million, significantly lower than $1.338 billion in the previous quarter. The company said main reasons included falling regional natural gas price differentials impacting margins, as well as crude oil sales timing affecting the profit margins of the oil business. However, after excluding non-comparable items, the segment’s adjusted results still exceeded the top end of prior company guidance.

Operating Cash Flow Reaches $4.1 Billion, Debt Reduced by $10.4 Billion Year-to-Date

In terms of cash flow, Occidental Petroleum’s operating cash flow from continuing operations in the third quarter was about $4.1 billion, with free cash flow before working capital changes at about $2.779 billion and capital expenditures at about $1.3 billion.

Debt reduction was also a highlight of this quarter’s report. Occidental Petroleum said it further reduced principal debt by $1.8 billion in the third quarter, bringing principal debt down to $10 billion, achieving an important deleveraging target. Since the beginning of the year, the company has repaid a total of $10.4 billion in debt.

Occidental Petroleum President and CEO Richard Jackson stated that the company hit a major milestone in the third quarter, repaying $10.4 billion in debt since the beginning of the year, bringing principal debt down to $10 billion.

Jackson noted that as the balance sheet further improves, the company is advancing a plan aiming to increase sustainable annual cash flow by more than $4 billion by 2030, laying the groundwork for accelerated shareholder capital returns and the creation of long-term shareholder value.