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Occidental Petroleum Corporation
S&P 500
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$59.7B
Market Cap
25.5
P/E
1.93
PEG
4.3%
ROCE
5.9%
ROE
0.64
D/E
17.2%
OPM
-5.9%
% from 52W High
80
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for OXY including FX impact
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📈 Price History
Ratio Health
Excellent
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By Category
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About

Occidental Petroleum Corporation, together with its subsidiaries, engages in the acquisition, exploration, and development of oil and gas properties in the United States and internationally. It operates through Oil and Gas and Midstream and Marketing. The Oil and Gas segment explores for, develops, and produces oil and condensate, natural gas liquids (NGLs), and natural gas. This segment also optimizes its transportation and storage capacity and invests in entities. The Midstream and Marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGLs, natural gas, carbon dioxide, and power. Occidental Petroleum Corporation was founded in 1920 and is headquartered in Houston, Texas.

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📈 Growth Pattern
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⭐ Superinvestors Holding OXY
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Manager Shares Value % of Fund Period
Warren Buffett Berkshire Hathaway Inc 264.94M $17.2B 6.55% Mar 2026
Steve Cohen Point72 Asset Management 2.68M $174.2M 0.22% Mar 2026
Li Lu Himalaya Capital Management 1.47M $95.3M 2.98% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Net Income
$2.8B
Not disclosed
Adjusted EPS
$2.40
Not disclosed
Reported EPS
$2.75
Not disclosed
Free Cash Flow Before Working Capital
$3.0B
Highest since Q3 2022
Production
1,433 Mboe/d
Exceeded high end of guidance
What Went Right
  • Generated approximately $3.0B of free cash flow before working capital, the highest since Q3 2022.
  • Total production of 1,433 Mboe/d exceeded the high end of guidance, led by Permian and Gulf of America strength.
  • Midstream & marketing adjusted earnings set a record at approximately $960M, more than double the midpoint of guidance, while principal debt was reduced to $11.8B.
What to Watch
  • Middle East disruptions lowered international volumes and sulfur sales face freight volatility and potential disruption in Q3.
  • Gulf of America planned maintenance and weather contingency pressure Q3 production, with Q3 domestic LOE expected at $8.75/boe vs $7.80/boe in Q2.
  • Narrowing Waha-to-Gulf Coast natural gas spread is expected to reduce Q3 midstream income, though upstream gas realizations should improve; Q2 domestic gas price was negative $1.48/Mcf.
Management Guidance
  • Q3 production guidance: 1.40-1.44 Mboe/d.
  • Full-year 2026: production guidance raised; midstream guidance raised by $300M; capital range maintained at $5.5B-$5.9B.
  • Q3 domestic LOE: $8.75/boe; full-year domestic LOE maintained at $8.10/boe.
  • 2027 starting capital: $5.9B, with production roughly flat versus 2026.
Investor Lens
Management's plan to add $4B of annual sustainable cash flow by 2030, with roughly 85% achievable at lower prices and no production growth required, is a structural step-change and should strengthen the investment thesis. Q2 execution — record midstream earnings, a production beat, $3.0B free cash flow and $11.8B principal debt — gives credibility to that target. The explicit capital-allocation sequence (debt to $10B, then build cash for the 2029 preferred redemption, with buybacks a lower priority) delays direct shareholder returns beyond the dividend but prioritizes balance sheet durability. Overall, the cash-flow inflection and lower sustaining capital outlook make Oxy's through-cycle case more compelling.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Q2 FCF hits $3.0B, production beats high end.
Revenue
Total revenue was not disclosed on the call. Oil and gas pre-tax income was $2.8B in Q2, while midstream & marketing delivered record adjusted earnings of approximately $960M.
Profitability
Net income attributable to common stockholders was $2.8B, with reported EPS of $2.75 and adjusted EPS of $2.40. Adjusted income attributable to common stockholders was $2.4B.
Margins
Domestic LOE was $7.80/boe, 6% better than guidance, supporting margins. Midstream & marketing adjusted earnings were more than double the midpoint of guidance, but Q2 domestic realized gas prices were negative $1.48/Mcf, a margin headwind.
Balance Sheet
Ended the quarter with approximately $4.2B of unrestricted cash and principal debt of $11.8B (net principal debt of $7.6B). The go-forward annual interest run-rate is about $760M, roughly $630M below 2025 interest; Q2 capital spend was $1.6B and free cash flow before working capital was $3.0B.
Key Risks
Management cited fluid Middle East conditions affecting international volumes and sulfur sales/freight, plus Gulf of America maintenance and weather contingency impacting Q3. A narrowing Waha-to-Gulf Coast gas spread is expected to reduce Q3 midstream income, partially offset by better upstream gas realizations.
Outlook
Q3 production is guided at 1.40-1.44 Mboe/d, and full-year production guidance was raised; 2026 capital remains $5.5B-$5.9B, with full-year midstream guidance increased by $300M. 2027 capital starts at $5.9B, which supports roughly flat production versus 2026.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-08-06
Strong operational and financial performance drove record free cash flow and production, with significant debt reduction and an 8% dividend increase. Sustainable cash flow growth is on track, supported by cost efficiencies, disciplined capital allocation, and robust U.S. asset performance.
Q1 2026 Q1 2026 2026-05-06
Q1 2026 saw strong operational and financial results, with production and free cash flow exceeding guidance. Leadership transition is underway, debt reduction remains a top priority, and the outlook is robust despite Middle East disruptions and market volatility.
Q4 2025 Q4 2025 2026-02-19
Record production and cost efficiencies drove strong free cash flow and debt reduction in 2025, with a leaner capital plan and 1% production growth targeted for 2026. The company remains focused on operational excellence, disciplined capital allocation, and sustainable shareholder returns.
Q3 2025 Q3 2025 2025-11-11
Q3 saw record oil and gas production, strong cash flow, and significant cost reductions, with the OxyChem sale enabling accelerated debt reduction and capital returns. Guidance was raised for key segments, and 2026 spending will remain flexible amid market volatility.
Q2 2025 Q2 2025 2025-08-07
Q2 2025 saw strong cash flow and operational outperformance despite lower oil prices, with $7.5B in debt repaid and $4B in divestitures since 2024. Stratos DAC hit milestones, and cost reductions drove improved margins, while OxyChem faces ongoing margin pressure from global oversupply.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

⚠️ Important Disclaimers — Please read without fail.

Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
The author and/or analyst may currently hold or have previously held positions in the securities discussed. Any such positions are not intended to influence the objectivity or independence of the analysis. This research is produced independently and is not sponsored, endorsed, or commissioned by any company or institution.

Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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