Key Highlights

  • Occidental Petroleum (NYSE:OXY) traded near USD 63.90 on October 26, 2026, down 0.42%, with a market value near USD 63.88 billion, a trailing P/E of 18.93, EPS of USD 3.38 and a 1.62% yield.
  • Second-quarter 2026 diluted EPS was USD 2.75, with adjusted EPS from continuing operations of USD 2.40, on net income of USD 2.8 billion.
  • Free cash flow before working capital was USD 3.0 billion, the highest since the third quarter of 2022, and Occidental Petroleum (NYSE:OXY) cut principal debt by USD 1.9 billion to USD 11.8 billion.
  • Production of 1,433 thousand barrels of oil equivalent a day beat the top of guidance, and the next results are expected on November 9, 2026.

The Leverage Argument

Brent crude changed hands near USD 114.51 (about USD 114) and West Texas Intermediate near USD 101.04 (about USD 100) on October 26, 2026. Occidental Petroleum (NYSE:OXY) is often treated as a high-beta play on crude because of its large production base and its history of debt. In the second quarter, West Texas Intermediate averaged USD 92.79 and Brent USD 97.06, and Occidental realized USD 96.78 a barrel on worldwide crude. Oil and gas pre-tax income rose to USD 2.8 billion from USD 1.0 billion in the first quarter, while midstream and marketing added USD 1.3 billion.

Balance Sheet and Cash Flow

Operating cash flow from continuing operations was USD 5.1 billion, or USD 4.6 billion before working capital, and capital spending was USD 1.6 billion. Principal debt fell USD 1.9 billion to USD 11.8 billion, moving toward a USD 10.0 billion milestone. The quarterly dividend rose 8% this year to USD 0.28 a share, paid on October 15, 2026. CEO Richard Jackson pointed to the strength of Oxy's resources and expects significant free cash flow growth by 2030. The release did not include a sensitivity table. Global production of 1,433 thousand barrels of oil equivalent a day exceeded the high end of guidance, and midstream and marketing also beat. Capital spending of USD 1.6 billion against USD 4.6 billion of operating cash flow before working capital explains the USD 3.0 billion of free cash flow, simple arithmetic on company figures.

Risks and What to Watch

Leverage cuts both ways: with debt of USD 11.8 billion, a drop in crude would reduce free cash flow and slow deleveraging more than at lower-debt peers such as EOG Resources. A Middle East settlement or weaker demand would be the main trigger. The International Energy Agency expects 2026 demand to fall 2.6 million barrels a day. A published calendar lists third-quarter results for November 9, 2026, after the close, which should be confirmed. The Federal Reserve meets on October 28 and the U.S. midterms are on November 3. The company also expects significant free cash flow growth by 2030, a long-dated ambition that investors should weigh against near-term price volatility.

Where Things Stand

Occidental Petroleum (NYSE:OXY) can look good at USD 100 oil because free cash flow already reached USD 3.0 billion in the second quarter and debt is falling toward USD 10.0 billion, but the same leverage amplifies a price drop. The shares trade at 18.93 times trailing earnings, in the middle of the group. The November 9 report should show whether free cash flow and debt reduction continued at the second-quarter pace.