Occidental Petroleum Corporation (OXY.US) has a mixed performance in Q1, as operations are affected by the ongoing Middle East conflict, leading to a downward adjustment of the annual production forecast.

Occidental Petroleum Corporation (OXY.US) has announced mixed results for the first quarter of 2026. The financial report shows that Occidental Petroleum Corporation's first quarter revenue was $5.23 billion, below analysts' average expectations of $5.67 billion. In terms of profits, net income attributable to common stockholders was $3.2 billion, a significant increase from $766 million in the same period last year, mainly due to the sale of OxyChem business-related income; adjusted earnings per share were $1.06, well above analysts' average expectations of $0.59. The first quarter results reflect the benefits of rising oil prices - with the average realized oil price rising to $69.91 per barrel. The company stated that production reached 1.426 million barrels of oil equivalent per day, exceeding the high end of its guidance. Occidental Petroleum Corporation CEO Vicki Hollub stated in a press release, "Our first quarter performance reflects strong operational performance and the team's outstanding execution capabilities throughout the asset portfolio." Ongoing conflicts in the Middle East have caused volatility in the global energy markets, especially with key shipping lanes like the Strait of Hormuz almost disrupted. Any disruption or potential risk to oil supply can push up oil prices as traders factor in potential shortages. This dynamic has supported producers, including Occidental Petroleum Corporation, to achieve higher selling prices, thus increasing their revenue and cash flow even in a broader environment of uncertainty. Operating cash flow from ongoing operations totaled $1.4 billion, while operating cash flow before changes in working capital was $3.2 billion. Capital expenditures amounted to $1.6 billion, resulting in free cash flow before changes in working capital of $1.7 billion. The performance of the oil and gas business segment improved quarter over quarter, mainly benefiting from higher crude oil prices despite a slight decrease in production. Meanwhile, the midstream and marketing segment saw a pre-tax loss, reflecting timing effects and derivatives-related fluctuations. Occidental Petroleum Corporation continues to focus on strengthening its balance sheet, having repaid $7.1 billion of debt as of early May, reducing its total principal debt to $13.3 billion - with the company's goal to further decrease it to $10 billion. Management emphasizes that cost discipline, efficiency improvements, and portfolio optimization remain core strategies in dealing with commodity price cycles and political risks such as those from GEO Group Inc. Furthermore, due to pressure on Occidental Petroleum Corporation's global operations from the Middle East conflicts, the company has lowered its full-year production forecast. Occidental Petroleum Corporation holds a 40% interest in the Shah gas field in the UAE. This gas field is one of the world's largest sour gas fields and has been in maintenance mode since March 16. The company's other international assets are mainly located in Algeria, Oman, and Qatar, with this segment accounting for 16.2% of its total production in 2025. Occidental Petroleum Corporation currently expects international production in 2026 to be between 218,000 and 228,000 barrels of oil equivalent per day, lower than the previous estimate of 230,000 to 240,000 barrels of oil equivalent per day. The company has also revised down its total production expectation for 2026 to between 1.41 million and 1.46 million barrels of oil equivalent per day, compared to the previous estimate of 1.42 million to 1.48 million barrels of oil equivalent per day.