TLDR
- Occidental Petroleum (OXY) stock jumped 10% to $51.82 after Q4 adjusted EPS of $0.31 beat the $0.17 estimate
- FY26 capex guidance of $5.7 billion came in over 10% below Wall Street’s $6.4 billion consensus
- Midstream unit swung to a $204 million pre-tax profit from a $123 million loss a year earlier
- Occidental raised its quarterly dividend by more than 8% to $0.26 per share
- The company cut debt by $5.8 billion since mid-December, targeting a principal debt of $14.3 billion in 2026
Occidental Petroleum stock surged 10% to $51.82 in early Thursday trading after the company posted fourth-quarter results that cleared Wall Street’s bar by a wide margin.
Adjusted earnings came in at $0.31 per share, nearly double the $0.17 analysts had expected. Revenue hit $5.1 billion against a forecast of $5.5 billion.
The earnings beat was only part of the story. Occidental’s 2026 capital expenditure guidance of $5.7 billion — within a range of $5.5 billion to $5.9 billion — landed well below the $6.4 billion consensus estimate on Wall Street.
Occidental Petroleum Corporation, OXY
TD Cowen analyst Robert Hodges called the FY26 guidance “the standout,” pointing to implied operational savings and a capex cut of more than 10% below consensus.
Hodges said the reduction was driven by efficiency gains, lower activity in U.S. unconventional oil, and reduced exploration spending.
OXY’s peers also traded higher Thursday as oil prices climbed around 2% on U.S.-Iran tensions. ConocoPhillips rose 2.4%, Chevron gained 1.9%, and Exxon added 1.3%. Occidental’s move was still well ahead of the pack.
Midstream Unit Does Heavy Lifting
With realized oil prices falling to $59.22 per barrel in Q4 from $69.73 a year earlier, the midstream business helped carry the quarter.
The midstream unit reported a pre-tax income of $204 million, compared to a loss of $123 million in the same period last year.
The turnaround was driven by higher gas margins from transportation capacity optimization in the Permian, lower long-haul crude transportation costs, and higher sulfur prices at Al Hosn — its joint venture with ADNOC in Abu Dhabi.
Production rose slightly to 1.48 million barrels of oil equivalent per day (MMboepd) in Q4. For 2026, the company is guiding for average production of 1.42 to 1.48 MMboepd, with Q1 expected between 1.38 and 1.42 MMboepd.
Debt Reduction on Track
Occidental has been carrying a heavy debt load since its $55 billion acquisition of Anadarko Petroleum in 2019 and the $12 billion CrownRock deal last year.
Long-term debt stood at $20.63 billion as of December 31. The company said it has cut debt by $5.8 billion since mid-December and is targeting a principal debt level of roughly $14.3 billion in 2026.
The quarterly dividend was raised by more than 8% to $0.26 per share, a move that signals confidence in its cash position.
OXY shares are up 15% since the start of January, matching the 15% gain in West Texas Intermediate crude over the same period.
The stock was trading at $51.82 in early Thursday trading, up from Wednesday’s close.
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