Occidental Petroleum Corporation announced its financial results for the third quarter of 2026 on November 9, 2026. The company reported net income attributable to common stockholders of $1.6 billion, which translates to earnings per diluted share (EPS) of $1.61. Adjusted income attributable to common stockholders was $2.0 billion, resulting in adjusted EPS from continuing operations of $1.91. The difference between the reported and adjusted figures is primarily attributed to losses related to derivatives.
On the balance sheet, Occidental achieved a significant milestone in the third quarter by reducing its principal debt to $10.0 billion. This reduction follows the retirement of $10.4 billion in debt since the beginning of the year. The company generated $4.1 billion of operating cash flow from continuing operations and delivered $2.8 billion of free cash flow before working capital, with capital expenditures totaling $1.3 billion.
Production performance for the quarter averaged 1,427 thousand barrels of oil equivalent per day (Mboed) globally, which exceeded the mid-point of the company's guidance. This performance was led by the Permian and Rockies business units, though it was partially offset by temporary curtailments at certain Gulf of America facilities due to a third-party gas pipeline constraint and maintenance activities.
Regarding commodity prices, the average realized crude oil price decreased 11% from the previous quarter to $85.91 per barrel. Average worldwide realized natural gas liquids prices remained flat at $24.63 per barrel. In contrast, average domestic realized gas prices improved by 209% to $1.61 per thousand cubic feet (Mcf), compared to negative $1.48 per Mcf in the prior quarter.
Oil and gas pre-tax income for the quarter totaled $2.6 billion, a decrease from $2.8 billion in the second quarter of 2026. This decline was primarily driven by lower realized crude oil prices, partially offset by higher domestic natural gas prices. Average WTI and Brent marker prices were $85.79 per barrel and $91.62 per barrel, respectively.
The Midstream and Marketing segment reported pre-tax income of $55 million for the third quarter, compared to $1.3 billion in the previous quarter. Excluding items affecting comparability, the results exceeded the high end of guidance. The decrease was driven by lower gas margins resulting from the narrowing of the Waha-to-Gulf-Coast gas spreads and lower crude margins related to the timing of crude sales, partially offset by higher sulfur volumes and prices at Al Hosn. The segment also reported $121 million in equity method investment income from WES.
