Occidental Petroleum reported stronger-than-expected third-quarter 2026 earnings, supported by higher oil prices and solid operational performance. The Houston-based energy company surpassed Wall Street’s profit and revenue estimates for the quarter ended September 30, 2026.
The company announced adjusted earnings of $1.91 per share, comfortably above the Zacks Consensus Estimate of $1.43 per share. This represented a 33.57% earnings surprise and a significant improvement from adjusted earnings of $0.64 per share reported a year earlier.
Revenue also came in ahead of expectations. Occidental generated $6.77 billion in third-quarter revenue, exceeding analysts’ consensus estimate of $6.73 billion. Revenue increased approximately 0.8% compared with the same period last year.
Higher crude oil prices played an important role in supporting the company’s financial performance. Global oil market conditions helped strengthen revenue across its exploration and production operations, offsetting some pressure from lower production volumes.
According to Reuters, Brent crude averaged $89.27 per barrel during the quarter, representing a 31% increase from the previous year. Occidental’s realized oil price also increased 32.6% year over year to $85.91 per barrel.
Despite the stronger annual comparison, Occidental reported lower realized crude oil prices compared with the second quarter of 2026. Its worldwide average realized crude price declined 11% sequentially, highlighting the impact of changing market conditions.
The company’s oil and gas segment generated $2.6 billion in pretax income during the third quarter, compared with $2.8 billion in the previous quarter. Higher domestic natural gas prices helped partially offset the decline in crude oil prices.
Occidental’s worldwide production averaged 1.427 million barrels of oil equivalent per day during the quarter, exceeding the midpoint of its guidance. Strong performance from its Permian and Rockies operations helped offset temporary production restrictions in the Gulf of America.
However, production challenges remained a concern. Temporary pipeline constraints and maintenance activities affected certain Gulf facilities, contributing to a decline in overall production compared with the previous year.
The company also reported progress in strengthening its balance sheet. Occidental reduced its principal debt to $10 billion after retiring $1.8 billion during the third quarter.
For the quarter, operating cash flow from continuing operations reached $4.1 billion. Free cash flow before working capital stood at $2.8 billion, while capital expenditures totaled $1.3 billion.
Chief Executive Officer Richard Jackson said the company had reached an important financial milestone through its debt reduction efforts. Management also highlighted its longer-term objective of generating more than $4 billion in additional annual sustainable cash flow by 2030.
The midstream and marketing business delivered adjusted pretax income above the company’s guidance range. Its reported pretax income was $55 million, compared with $1.3 billion in the previous quarter, reflecting narrower natural gas margins and changes in crude sales timing.
Occidental’s third-quarter results come at a time when global petroleum markets remain sensitive to geopolitical developments, supply disruptions and changing demand. Oil price movements continue to play an important role in determining earnings across the energy sector.
Investors will also be watching the company’s production outlook, debt reduction strategy and ability to maintain cash flow as market conditions change. Occidental expects fourth-quarter production of approximately 1.43 million to 1.47 million barrels of oil equivalent per day.
