Occidental Petroleum Reports $3.175 Billion Net Income in Q1 2026

Occidental Petroleum Corporation reported a significant financial performance for the first quarter of 2026, with net income attributable to common stockholders reaching $3.175 billion, a substantial increase from $766 million in the same period of 2025. The company’s revenues for the quarter totaled $5.230 billion, down from $5.704 billion year-over-year, primarily due to lower realized prices across all commodities. The earnings per share for the quarter were $3.13, compared to $0.77 in the prior year.

The financial results reflect notable changes compared to the previous fiscal period. The company experienced a loss of $202 million on sales of assets, which included a $186 million loss from the divestiture of non-core assets in the Permian Basin. In contrast, the previous quarter had a gain of $253 million from asset sales. Additionally, interest and debt expenses increased to $432 million from $310 million, largely due to premiums paid on early debt extinguishment. The company utilized proceeds from the recent sale of its chemical subsidiary, OxyChem, to repay approximately $6.7 billion of debt, significantly reducing its long-term liabilities.

Strategically, Occidental completed the sale of OxyChem on January 2, 2026, for an adjusted purchase price of $9.5 billion, resulting in a gain of $3.1 billion, net of taxes. This transaction marks a pivotal shift in the company’s operations, allowing it to focus more on its oil and gas and midstream segments. The company also reported a joint venture with BlackRock for the development of a commercial-scale direct air capture facility, further emphasizing its commitment to sustainability and carbon management.

Operationally, Occidental's oil and gas segment reported earnings of $1.017 billion for the first quarter, down from $1.697 billion in the same period last year. Average daily sales volumes for oil and natural gas increased, but the company faced challenges with lower realized prices and derivative losses. The midstream and marketing segment reported a loss of $87 million, compared to a loss of $72 million in the prior year, reflecting higher gas margins and transportation capacity optimizations. As of March 31, 2026, the company had $3.811 billion in cash and cash equivalents, alongside $4.15 billion in available borrowing capacity under its revolving credit facility.

Looking ahead, Occidental anticipates that its financial results will continue to be influenced by oil prices, which averaged $71.93 per barrel in the first quarter of 2026. The company expects ongoing volatility in commodity prices due to geopolitical risks and macroeconomic conditions. Occidental's strategic priorities include maintaining production levels, delivering sustainable dividends, and advancing its carbon management initiatives, all aimed at maximizing shareholder value while navigating the complexities of the energy market.