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Warren Buffett’s bet on Occidental Petroleum (NYSE: OXY) is seemingly paying off, with the stock rising over 50% in the past year. 

Notably, OXY shares reached a 52-week high of $67.45 on March 31 before retreating and recovering, settling at $62 as of press time, up 52% over the past year. 

OXY one-year stock price chart. Source: Google Finance Occidental’s recovery reflects improving fundamentals and higher oil prices amid US-Iran tensions and concerns about disruptions to crude shipments through the Strait of Hormuz. Its average realized crude oil price rose 32.6% year over year in the third quarter.

Berkshire’s Hathaway’s (NYSE: BRK.A, BRK.B) investment gives it exposure to Occidental’s production assets and cash flows. 

Berkshire stake in Occidental The relationship also deepened when Berkshire completed its $9.7 billion cash acquisition of Occidental’s OxyChem business on January 2, 2026, giving the oil producer greater flexibility to reduce debt and focus on its core operations.

At the same time, Berkshire’s first-quarter filing showed a 26.9% stake, excluding the potential effect of outstanding warrants. 

Occidental’s 2025 annual filing separately listed Buffett and affiliated entities as holding 348.9 million shares and warrants, equivalent to 32.43% of outstanding common stock under that disclosure’s methodology.

Meanwhile, Occidental’s second-quarter 2026 results reported net income of $2.8 billion, or $2.75 per diluted share, and adjusted earnings of $2.40 per share. Operating cash flow reached $5.1 billion, while free cash flow before working capital hit $3 billion, its highest level since Q3 2022.

Production averaged 1.433 million barrels of oil equivalent per day, exceeding the high end of guidance. Occidental also reduced principal debt by $1.9 billion to $11.8 billion, moving closer to its $10 billion target.

Further debt reduction could lower interest expenses and free up cash for dividends, share repurchases and production investments.

OXY third quater outlook Third-quarter pricing data reinforced the favorable operating environment. Occidental’s average realized crude oil price rose 32.6% year over year to $85.91 per barrel, while Brent averaged $89.27, up 31.2%. Realized natural gas liquids prices increased nearly 26% to $24.63 per barrel.

However, production at some Gulf of America facilities was temporarily curtailed in September because of a third-party gas pipeline constraint and maintenance. 

Production was partially restored, with the remaining affected output expected to return as the issue was resolved.

Oil-price volatility remains the main risk. In this case, easing geopolitical tensions, weaker demand, increased competing supply, or changes in OPEC+ output could pressure crude prices and Occidental’s margins. 

Other risks include debt obligations, production costs, exploration uncertainty, environmental regulations and operational disruptions.

OXY investment case  Overall, after its 52% rally, Occidental is no longer an obvious bargain. Its investment case depends on sustained cash generation, disciplined spending and further debt reduction. 

Berkshire’s substantial stake supports investor interest but does not guarantee future returns, particularly given its longer investment horizon.

Krilogy Financial LLC increased its position in shares of Occidental Petroleum Corporation (NYSE:OXY – Free Report) by 164.2% during the 3rd quarter, according to its most recent filing with the Securities and Exchange Commission (SEC). The firm owned 41,969 shares of the oil and gas producer’s stock after buying an additional 26,084 shares during the period. Krilogy Financial LLC’s holdings in Occidental Petroleum were worth $2,566,000 at the end of the most recent reporting period.

A number of other institutional investors have also recently added to or reduced their stakes in OXY. Fluent Financial LLC purchased a new position in Occidental Petroleum in the third quarter valued at about $1,903,000. Fermata Advisors LLC acquired a new stake in Occidental Petroleum during the 3rd quarter valued at approximately $264,000. NorthCrest Asset Manangement LLC grew its stake in Occidental Petroleum by 100.5% during the 3rd quarter. NorthCrest Asset Manangement LLC now owns 34,504 shares of the oil and gas producer’s stock valued at $2,080,000 after purchasing an additional 17,299 shares in the last quarter. Perpetual Ltd grew its stake in Occidental Petroleum by 114.0% during the 3rd quarter. Perpetual Ltd now owns 31,015 shares of the oil and gas producer’s stock valued at $1,716,000 after purchasing an additional 16,523 shares in the last quarter. Finally, Woodstock Corp increased its holdings in Occidental Petroleum by 31.2% during the 3rd quarter. Woodstock Corp now owns 31,907 shares of the oil and gas producer’s stock worth $1,765,000 after purchasing an additional 7,582 shares during the last quarter. Institutional investors and hedge funds own 88.70% of the company’s stock.

Analysts Set New Price Targets A number of equities analysts have issued reports on the company. Susquehanna upped their target price on Occidental Petroleum from $67.00 to $70.00 and gave the company a “positive” rating in a research report on Tuesday, August 11th. Stifel Nicolaus began coverage on Occidental Petroleum in a research note on Thursday, September 10th. They set a “hold” rating and a $68.00 target price for the company. Stephens decreased their price target on shares of Occidental Petroleum from $73.00 to $69.00 and set an “overweight” rating for the company in a research report on Tuesday, July 14th. UBS Group lifted their price target on shares of Occidental Petroleum from $67.00 to $73.00 and gave the stock a “neutral” rating in a research note on Wednesday. Finally, Morgan Stanley cut their price target on shares of Occidental Petroleum from $74.00 to $68.00 and set an “equal weight” rating on the stock in a report on Friday, June 26th. Twelve research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the company’s stock. According to MarketBeat.com, Occidental Petroleum presently has a consensus rating of “Hold” and a consensus target price of $65.92.

Check Out Our Latest Stock Analysis on Occidental Petroleum Occidental Petroleum Stock Down 0.4% NYSE:OXY opened at $61.42 on Thursday. The company has a debt-to-equity ratio of 0.40, a quick ratio of 1.13 and a current ratio of 1.41. The company has a market capitalization of $61.40 billion, a price-to-earnings ratio of 9.51, a price-to-earnings-growth ratio of 0.96 and a beta of 0.24. Occidental Petroleum Corporation has a one year low of $38.80 and a one year high of $67.45. The stock has a 50-day simple moving average of $59.18 and a 200 day simple moving average of $57.28.

Occidental Petroleum (NYSE:OXY – Get Free Report) last announced its quarterly earnings data on Wednesday, August 5th. The oil and gas producer reported $2.40 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.83 by $0.57. Occidental Petroleum had a return on equity of 15.31% and a net margin of 28.36%. The firm had revenue of $8.06 billion for the quarter, compared to analysts’ expectations of $7.07 billion. During the same quarter in the prior year, the firm posted $0.39 earnings per share. Occidental Petroleum’s revenue for the quarter was up 53.4% compared to the same quarter last year. Sell-side analysts predict that Occidental Petroleum Corporation will post 6.20 EPS for the current fiscal year.

Occidental Petroleum Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Stockholders of record on Thursday, September 10th will be issued a $0.28 dividend. This is a positive change from Occidental Petroleum’s previous quarterly dividend of $0.26. The ex-dividend date is Thursday, September 10th. This represents a $1.12 dividend on an annualized basis and a dividend yield of 1.8%. Occidental Petroleum’s dividend payout ratio (DPR) is presently 17.34%.

Occidental Petroleum Profile (Free Report)

Occidental Petroleum Corporation, commonly known as Oxy, is an energy company engaged in the exploration, development and production of oil and natural gas. Its upstream operations are concentrated in the United States, including the Permian and Denver-Julesburg basins, and in selected international regions such as the Middle East and North Africa.

The company also operates midstream and marketing businesses that support the gathering, processing, transportation and sale of oil, natural gas and natural gas liquids.

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Four oil giants all pay dividends, but when crude prices drop, their balance sheets tell very different stories about which payouts survive and which ones get cut to the bone.

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Energy dividends are paid out of oil and gas sales, and the companies don’t control the price of either. When crude is high, every payout looks safe. When crude falls, a weak balance sheet shows up fast. Right now prices are working in shareholders’ favor: Brent averaged $103.85 per barrel in the second quarter, and the big producers are using that cash to pay down debt, buy back stock and raise dividends. For an income investor, the real question is which payouts would still hold when oil falls. Below, Exxon Mobil (NYSE:XOM | XOM Price Prediction), Chevron (NYSE:CVX), BP (NYSE:BP) and Occidental Petroleum (NYSE:OXY) are compared on coverage, free cash flow, debt and dividend history, starting with the safest.

Exxon Mobil: 43 Straight Years of Raises Backed by a Fortress Balance Sheet Exxon yields 2.56%. It is a fully integrated major. It pumps oil and gas in the Permian Basin, Guyana and its LNG projects, then processes that output and turns it into chemicals. Those best assets made up 59% of 2025 production, and total output reached a new high of 4.7M boe/d. Having refining and chemicals helps when crude prices fall, because cheaper oil brings down the cost of their raw material.

Dividend safety: This is the strongest income profile in the group. The forward annual dividend is $4.12 per share, compared with trailing diluted EPS of $7.81. The free cash flow yield of 3.50% is higher than the dividend yield, so the payout is covered by cash the business actually brings in. Exxon generated $26.13B of free cash flow in 2025. Debt is low: the debt-equity ratio is 0.168, net debt to EBITDA is 0.548, and earnings cover interest costs 56.3x. Exxon says it has grown annual dividend per share for 43 consecutive years. The quarterly payout went from $0.95 in 2024 to $0.99 in 2025 and is now $1.03.

Bull case: Exxon has cut $15.6B in structural costs since 2019 and is aiming for $20B by 2030. It also plans $20B of share repurchases this year. Fewer shares outstanding makes each future raise cheaper to fund. The stock trades at 21 and 15 times trailing and forward earnings, respectively. The CEO, Darren Woods, said “ExxonMobil is a fundamentally stronger company than it was just a few years ago,” and called it a “durable platform to grow earnings, cash flow, and shareholder value through 2030 and beyond.”

Risk: Reported earnings can swing a lot. In the first quarter, net income fell to $4.18B after a $3.88B mark-to-market timing charge and $706M in losses from Middle East supply disruptions. The effective tax rate also rose to 40%.

Chevron: Bigger After Hess and Generating Cash Fast Chevron yields 3.14%, which is the most income of the two US majors. It is also integrated, with production, processes, chemicals and now power generation. After buying Hess, it is much larger: worldwide production grew 20% from a year earlier to 4,070 MBOED in the second quarter, and US refineries ran at 97% utilization.

Dividend safety: The forward annual dividend is $7.12, compared with trailing diluted EPS of $10.38. The free cash flow yield of 4.08% is above the dividend yield. Second-quarter operating cash flow was $22.63B against capex of $4.54B, leaving $18.10B of free cash flow. Chevron used part of that to repay $8.41B of debt. The debt-equity ratio is 0.251 and interest coverage is 13.7x. The dividend has gone up in every year of the recent record: from $1.12 a quarter in 2018 to $1.29 in 2020, $1.71 in 2025 and $1.78 now. That includes a raise during 2020, when oil prices fell.

Bull case: The Hess deal is already paying off. Chevron reached a $3B annual run rate of cost savings six months ahead of plan and captured $1.5B in Hess synergies within a year. It has now returned over $5 billion to shareholders for the 16th consecutive quarter. It also signed a 20-year power deal for a 2.67 GW West Texas AI data center project, which adds a source of income that doesn’t depend on oil prices. The forward P/E is 15.

Risk: Hess added debt. Net debt to EBITDA is 1.08, compared with Exxon’s 0.548. That gives Chevron less of a cushion if a long oil downturn hits while it is still integrating the deal.

BP: The Biggest Yield, With a Turnaround Attached BP yields 4.59%, the highest in this group. US investors own it through an American Depositary Share (ADS), which trades on the NYSE in dollars and represents a set number of BP’s London-listed ordinary shares. BP announces its dividend in cents per ordinary share and then converts it to a per-ADS amount. The latest payout was 8.660 cents per ordinary share, or $0.5196 per ADS. BP is an integrated major with a large processes business, which helped this year: its refining margin indicator was $29.6/bbl versus $11.9/bbl a year earlier.

Dividend safety: Coverage is fine at current oil prices. Second-quarter operating cash flow was $10.86B against capex of $3.09B. Its finances are weaker. Net debt was $25.3B at the end of the first quarter, up from $22.2B at year end. The dividend history includes a cut: the ADR payout fell from $0.63 to $0.315 in 2020. It has been raised steadily since then and recently went from $0.4992 to $0.5196.

Bull case: On forward earnings, BP is the cheapest stock here at 10 times. Management expects $8 to $9B in divestment proceeds this year, including the roughly $6B Castrol sale, and has raised its cost-cutting target to $6.5 to $7.5B by 2027. The CEO, Meg O’Neill, has been direct about BP’s problems: “Our performance over the past few years has not met our own expectations… we have written off too much value; and our costs and liabilities are not resilient enough in a low price environment.”

Risk: BP carries liabilities its US peers don’t. It still has $6.9B in Gulf of America oil spill provisions on the books, it expects about $1.6B in settlement payments this year, and its UK operations pay an Energy Profits Levy with a 78% headline rate through March 2030.

Occidental Petroleum: A Fast-Growing Dividend Tied Directly to Crude Occidental yields 1.82%, and it is a different kind of company from the other three. It is classified as an Oil & Gas E&P company, meaning exploration and production. It has no large refining business to absorb a drop in crude, and it has sold its OxyChem chemicals unit. Its cash flow therefore rises and falls almost directly with the price of oil. Its realized crude price was $96.78/bbl in the second quarter.

Dividend safety: The current payout is easy to cover. The forward annual dividend is $1.12, compared with trailing diluted EPS of $3.39, and second-quarter free cash flow was $3.02B. The company is still paying down debt. Principal debt fell to $13.3B in the first quarter and to $11.8B in the second, and the next target is $10.0B. Its dividend record is the weakest of the four. In 2020 the quarterly payout went from $0.79 to $0.01. It has since been rebuilt to $0.28.

Bull case: Dividend growth is the main appeal here. The payout has been increased 8% this year, and the next payment is on October 15. Operations are improving: production of 1,433 Mboed beat guidance, and operating costs fell to $8.70/BOE. Goldman Sachs (NYSE:GS) is getting more positive, with Barron’s reporting a Goldman upgrade this week.

Risk: Occidental has the most to lose if oil prices fall. In its May outlook, the EIA forecast OPEC output recovering from 20.90 million barrels per day in the second quarter of 2026 to 28.28 million in the fourth quarter. More supply would brings down the prices that are currently funding Occidental’s debt paydown.

Where Big Oil Income Lands Now Exxon Mobil and Chevron are the most reliable income in this group: both cover their dividends with free cash flow, both carry little debt, and both kept raising the payout through the 2020 oil crash. BP offers the highest yield, but that yield depends on its recovery and on paying down debt. Occidental cut its dividend in 2020 and is now growing it quickly, which makes it a payout to keep an eye on in a downturn more than a foundation for an income portfolio. When oil prices fall, the dividends with strong balance sheets behind them are the ones most likely to hold.

Contact [email protected] for any questions or corrections.

High oil prices are a classic tailwind for energy stocks. Thanks to the war in Iran, that's exactly the scenario investors are facing this year, as energy ranks as the best-performing group among the 11 sectors represented in the S&P 500.

Undoubtedly, surging crude prices are playing a pivotal role in the 47% year-to-date gain sported by Occidental Petroleum (OXY -0.80%) shares. Amid a rally like that, you can't count on a dip, but as of Sept. 4, the stock trades 11% below its 52-week high. By definition, that's a correction, but prospective investors should note the shares are up 7.1% over the past month. That may be a sign the correction won't deepen.

As for reasons to buy this dip, oil prices help, but don't lose sight of Occidental's scorched-earth campaign to reduce debt and its efforts to reduce costs.

Occidental Petroleum has pulled back from its 52-week high, and that's an opportunity. Image source: Getty Images.

Occidental is taking the ax to its liabilities Investors just now getting to know Occidental may not realize that it's one of Berkshire Hathaway's major holdings. The stake was initiated when Warren Buffett was still captain of the conglomerate's ship, and the stock has been in rally mode since CEO Greg Abel took the reins at Berkshire.

The Berkshire/Occidental connection is noteworthy because Buffett is known to embrace companies with strong balance sheets and attractive cash-flow characteristics. Through the sale of its OxyChem unit to Berkshire (completed in January), Occidental pared its debt by $8.6 billion in the first half of 2026. At the end of the second quarter, the energy company's debt stood at $11.8 billion.

That sounds like a lot for a corporation with a market capitalization of $59 billion. Still, Occidental is within striking distance of its goal of getting the debt burden down to $10 billion. Realizing that goal is crucial because, with $10 billion in liabilities, the company saves $740 million in yearly interest expenses.

Obviously, companies have to pay interest on the capital they borrow, so it's not fair to say that Occidental is "squandering" money on servicing its debt. However, $740 million per year isn't small potatoes, and investors would be much better served if Occidental used that capital to invest in its business and potentially support shareholder rewards. An 8% quarterly dividend increase announced earlier this year confirms that as Occidental reduces debt, it does, in fact, reward investors.

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Don't forget the cash flow As Occidental makes good on its pledge to reduce liabilities, it evolves from a debt-cutting story to one where cash flow becomes another reason to consider the oil stock. Working on the assumption that West Texas Intermediate hovers around $95 a barrel for the remainder of 2026, S&P estimates Occidental will generate north of $10 billion in free operating cash flow this year, or more than triple the $3.2 billion it tallied in 2025.

The company is also prioritizing cost reductions, having trimmed costs by $2 billion since 2023, with another $500 million in store this year.

Importantly, cost cuts aren't a detriment to output. Despite taking some old rigs offline, Occidental can grow production 2% per year through 2028 thanks to a keen focus on operational efficiencies. Yes, that sounds like consultant jargon, but those efficiencies are part of the non-oil-price thesis underpinning this stock.

Key Takeaways Occidental targets more than $4B in annual sustainable cash flow improvement by 2030.About 85% of OXY's 2030 cash flow target is expected at lower prices without requiring production growth.OXY targets sustaining capital of $4.5B by 2030, down from about $5.0B-$5.1B in 2027. Occidental Petroleum Corporation (OXY - Free Report) used its Q2 earnings call to center the story on a multiyear cash flow plan built on lower costs, lower sustaining capital and a stronger balance sheet.

Management sees more than $4 billion of annual sustainable cash flow improvement by 2030. Adjusted EPS of $2.40 topped the Zacks Consensus Estimate of $1.92, and revenue of $8.33 billion exceeded the $7.18 billion estimate.

OXY Puts Sustainable Cash Flow at CenterPresident and CEO Richard Jackson said Occidental expects more than $1.2 billion of free cash flow improvement in 2026 before higher oil prices.

Jackson said the company sees more than $4 billion of annual sustainable cash flow improvement by 2030 versus 2025. About 85% is expected to be achievable at lower prices, without requiring production growth.

Senior vice president and CFO Sunil Mathew said 2027 should add roughly $700 million to $800 million versus 2026. Management expects to capture nearly half of the 2030 target by year-end 2027.

Occidental Raises Production OutlookMathew said second-quarter production averaged 1.43 million BOE per day, 23,000 BOE per day above the guidance midpoint. Permian strength and higher Gulf of America uptime offset lower international volumes tied to Middle East disruptions.

The CFO said Occidental raised full-year production guidance and expects third-quarter output of 1.40 million to 1.44 million BOE per day. Domestic lease operating expense guidance remains $8.10 per BOE for 2026.

Mathew cited adjusted midstream and marketing income of about $960 million, more than double the guidance midpoint. Full-year guidance rose by $300 million, though third-quarter income is expected to fall as the Waha-to-Gulf Coast gas spread narrows.

OXY Keeps Deleveraging Ahead of BuybacksMathew said principal debt fell to $11.8 billion, reducing the annual interest run rate to about $760 million. The board also approved an 8% dividend increase to $0.28 per share.

The CFO reiterated that the immediate priority is reaching $10 billion of principal debt. After that, management plans to reduce net debt while building cash ahead of the preferred equity redemption in August 2029.

A Wolfe Research analyst asked whether buybacks would remain secondary. Jackson favored net debt reduction, while Mathew said large continuous repurchases would remain a lower priority until the preferred redemption.

Occidental Maps Lower Sustaining CapitalA Barclays analyst asked about the pace of sustaining-capital reductions. Mathew said the 2027 capital starting point is $5.9 billion, with sustaining capital at about $5 billion to $5.1 billion after excluding exploration and certain multiyear and growth projects.

Mathew said sustaining capital is targeted to reach $4.5 billion by 2030. The plan combines a lower base decline rate, targeted at about 20% by 2030 from roughly 25%, with further well-cost efficiency.

Senior vice president and president of International Oil and Gas Operations Kenneth Dillon highlighted waterflooding as a decline-management tool. Jackson added that Permian unconventional CO2 pilots delivered more than 45% uplift in estimated ultimate recovery.

OXY Frames Growth as Efficiency-LedA Mizuho analyst asked how management would approach growth as cash flow improves. Jackson said the near-term bias remains toward free cash flow, with added investment required to preserve returns and capital efficiency.
Mathew said the baseline assumes no production growth. A moderate-growth scenario with about a 2% production CAGR produced greater free cash flow improvement by 2030 than the baseline.

A Goldman Sachs analyst asked about sustainable cost savings. Jackson pointed to drilling efficiency, while Mathew said the Permian plan calls for dropping three rigs in the fourth quarter while still bringing 15 more wells online.

Occidental Leaves a Disciplined Capital MessageJackson closed with execution, cost efficiency, lower sustaining capital and balance-sheet strength as core priorities. He described the $4 billion plan as a baseline that can improve through efficiencies and measured growth.

Mathew kept capital allocation centered on debt reduction and a sustainable dividend, with reinvestment expected to remain measured and efficiency-led.

What Zacks Signals Say About OXYOXY carries a Zacks Rank #4 (Sell), with a Value Score of A, Growth Score of C, Momentum Score of F and VGM Score of B. Value and VGM are favorable, while Growth is middling and Momentum is weak under the Zacks framework.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks methodology places greater weight on the Rank, which reflects earnings-estimate revisions, while Style Scores complement the Rank.The Zacks Rank can change as analysts revise estimates after the just-reported results, so the current mix is not a fixed assessment.

The logo for Occidental Petroleum is displayed on a screen on the floor at the New York Stock Exchange (NYSE) in New York, U.S., April 30, 2019. REUTERS/Brendan McDermid/File Photo Purchase Licensing Rights, opens new tab

CompaniesAug 6 (Reuters) - U.S. oil producer Occidental Petroleum (OXY.N), opens new tab said on Thursday it expects flat production and capital spending in 2027, adding that it would ​continue to prioritize debt-reduction efforts.

Speaking on a post-earnings conference call, Chief Financial Officer ‌Sunil Mathew said the company expects the starting point for capital spending to be $5.9 billion in 2027, including investments in mid-cycle projects.

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"At that level of investment, you can assume relatively flat production ​in line with 2026," he added.

For the full-year 2026, Occidental expects its production ​to be up to 1.45 million barrels of oil equivalent per ⁠day on capital spending of $5.5 billion to $5.9 billion.

Occidental also expects sustaining capital — a measure ​of capital spending that excludes multi-year projects, exploration and growth projects — of up to $5.1 billion ​in 2027.

Mathew said continued investment in mid-cycle projects will help reduce Occidental's base decline and ultimately reduce its sustaining capital.

The oil producer is targeting sustaining capital of $4.5 billion in 2030.

KEEPING EYE ON DEBT ​REDUCTIONOccidental CEO Richard Jackson said the company is on track to increase its free ​cash flow this year by more than $1.2 billion and that a "clear pathway" exists to add more ‌than $4 billion ⁠in annual cash flow by 2030 even before considering the benefit of higher oil prices.

That additional cash will be used to reduce debt and strengthen the balance sheet ahead of Occidental's planned redemption of Berkshire Hathaway's (BRKa.N), opens new tab preferred equity stake beginning in 2029, Mathew ​said.

Share buybacks will be ​a lower priority ⁠until the company reduces the preferred equity, he added.

Berkshire's investment requires Occidental to pay an 8% annual dividend, a higher payout ​than the typical junk bond now offers. Investors have said that ​the expensive ⁠equity has been a drag on Occidental's stock compared with its peers.

Occidental, which reported its biggest quarterly profit since 2022 on Wednesday, said its immediate cash flow priority remains to reduce principal debt ⁠to $10 ​billion.

The company will continue to focus on further reducing ​net debt once it achieves the $10 billion principal debt milestone, Mathew said.

Occidental shares closed 4.1% higher at $56.04 on ​Thursday.

Reporting by Vallari Srivastava in Bengaluru and Sheila Dang in Houston; Editing by Matthew Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways OXY's Q2 revenues are projected to rise 11.16%, while earnings are expected to jump 402.56%.Debt cuts lowered annual interest expense by $830 million, supporting Occidental Petroleum's earnings.OXY's premium valuation and commodity-price sensitivity may warrant waiting for a better entry point. Occidental Petroleum Corporation (OXY - Free Report) is expected to report a year-over-year increase in both top and bottom lines when it reports second-quarter 2026 results on Aug. 6.

The Zacks Consensus Estimate for revenues is pinned at $7.18 billion, indicating an increase of 11.16% from the year-ago reported figure. The consensus mark for earnings is pegged at $1.96 per share, indicating year-over-year growth of 402.56%. The bottom-line estimate has gone up 6.52% over the past 60 days.

Image Source: Zacks Investment Research

OXY’s Earnings Surprise HistoryOccidental Petroleum’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 49.72%.

Image Source: Zacks Investment Research

Q2 Production ExpectationFor the second quarter of 2026, Occidental Petroleum expects production of 1,390-1,430 thousand barrels of oil equivalent per day (Mboe/d). Output from the Permian Resources segment is pegged at 783-803 Mboe/d. International operations are expected to produce in the range of 205-211 Mboe/d.

The Zacks Consensus Estimate for second-quarter production volume is currently pegged at 1,415.7 Mboe/d.

What the Zacks Model UnveilsOur model does not predict an earnings beat for OXY this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. That is not the case here, as you can see below.

You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

Earnings ESP: OXY has an Earnings ESP of +1.75%.

Zacks Rank: Occidental Petroleum currently holds a Zacks Rank #4 (Sell).

Earnings Surprise by Others This SeasonSome companies in the same sector that have the right combination of the two factors for an earnings beat this season are National Energy Services Reunited Corp. (NESR - Free Report) , Calumet Inc. (CLMT - Free Report) and Sempra Energy (SRE - Free Report) . NESR, CLMT and SRE have an Earnings ESP of +7.80%, +169.57% and +0.79%, respectively. NESR currently sports a Zacks Rank #1, CLMT has a Zacks Rank # 2 and SRE carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Major Drivers Behind OXY’s Q2 Earnings PerformanceOccidental Petroleum's second-quarter earnings are likely to have benefited from the predominantly domestic operations, which reduce its exposure to disruptions caused by global events.

OXY has been generating cash flow and utilizing the same to reduce debts, which is likely to have a positive impact on earnings. The company retired debts worth $15.6 billion over the past 22 months, which lowered annual interest expenses by $830 million. This might have a positive impact on second-quarter earnings performance.

Operational efficiencies are expected to generate more than $1.2 billion in free cash flow in 2026, providing the company with greater financial flexibility to reduce debt, repurchase shares and fund growth initiatives, thereby supporting overall performance.

In the second quarter, OXY’s production volume in the Gulf of America region is expected to drop modestly due to planned facility maintenance and the beginning of the tropical weather season.

Occidental Petroleum's second-quarter volumes from the Middle East are likely to have been affected by temporary operational constraints at Al Hosn that started in mid-March and are expected to have eased before the end of the second quarter. Higher prices under production-sharing contract terms are also anticipated to lower net production volumes.

OXY’s Midstream earnings are expected to have remained strong in the second quarter, supported by gas marketing optimization opportunities arising from the wide Waha-to-Gulf Coast natural gas price spread. However, sulfur sales are likely to have been temporarily affected by logistics disruptions related to the ongoing Middle East conflict.

OXY’s Price PerformanceOXY’s shares have gained 20.1% in the past six months compared with the industry’s growth of 12.9%.

Image Source: Zacks Investment Research

OXY Stock Trading at a PremiumOccidental Petroleum’s shares are somewhat expensive on a relative basis, with its current trailing 12-month Enterprise Value/Earnings before Interest Tax Depreciation and Amortization (EV/EBITDA TTM) being 6.12X compared with the industry average of 5.35X.

Image Source: Zacks Investment Research

Investment ThesisOccidental Petroleum has continued to benefit from its strong U.S. footprint and disciplined emphasis on the Permian Basin, where the core development areas are delivering solid performance. OXY’s cost management initiatives and decision to sell the chemical business allowed it to further lower debts and boost margins.

The company has not been active in hedging, as a consequence, the fluctuation in commodity prices during the second quarter might have impacted its earnings.

Summing UpOccidental Petroleum’s strong cash flow generation, continued debt reduction initiatives and incremental contributions from recent acquisitions are likely to have supported its overall performance. Additionally, the company’s predominantly domestic operations are expected to have provided greater earnings stability by limiting exposure to global disruptions.

However, given OXY’s sensitivity to commodity price volatility and its current premium valuation, investors may be better off waiting for a more attractive entry point before considering the stock.

Key Takeaways Occidental expects the Permian Basin to generate more than 56% of its total output in 2026.A $3.1 billion Permian investment supports plans to drill 460 to 510 wells by year-end.Enhanced oil recovery is expected to produce more than 100,000 barrels of oil equivalent per day. Occidental Petroleum Corporation (OXY - Free Report) is a leading operator in the Permian Basin, a key driver of its U.S. oil and gas production. The CrownRock L.P. acquisition has expanded its operations in the region, which is expected to generate more than 56% of the company's total output in 2026.

Occidental plans to invest $3.1 billion in the Permian throughout 2026 to upgrade and expand operations. The company aims to drill 460 to 510 wells by year-end. Occidental controls 1.4 million acres in unconventional areas and 1.4 million acres in conventional zones in the Permian Basin, underscoring its strong regional presence.

Operational efficiency remains a key focus for Occidental. The company projects to drill many wells in the Permian Basin region this year and a 7% expected drop in average well costs in 2026 compared with 2025 will be beneficial. These improvements stem from enhanced well designs, consistent scheduling and technology upgrades that streamline development.

Courtesy of its operational efficiency and usage of new technology, Occidental will be able to generate more oil from the reserve. Through the Enhanced Oil Recovery technique, the company is expected to produce more than 100,000 barrels of oil equivalent per day, boosting its overall production volumes.

With nearly a decade of high-return inventory in the Permian Basin, Occidental is well positioned for sustained growth. Ongoing technological advancements are improving drilling efficiency, increasing production, minimizing environmental impact and unlocking additional resources, driving long-term value creation.

Permian Basin Reserves Support Long-Term Value CreationThe Permian Basin's abundant, low-cost reserves offer oil and gas producers long-term production visibility, robust margins and strong cash flow generation. Its vast resource base and operational efficiencies continue to drive sustainable earnings growth and shareholder value.

Devon Energy's (DVN - Free Report) high-quality Permian Basin assets enable low-cost production, strong cash flow generation and long-term reserve growth. Efficient operations, disciplined capital spending and cash flow support Devon Energy's sustainable earnings growth.

Diamondback Energy's (FANG - Free Report) premium Permian Basin acreage drives low-cost, high-margin production and long-term growth. Backed by operational efficiency, disciplined capital investments and strategic expansion, Diamondback Energy is well-positioned to benefit from the basin's long-term growth potential.

The Zacks Rundown on OXYReturn on equity (“ROE”) is a key indicator of a company’s financial performance. It reflects how effectively a corporation uses shareholders' equity to generate profits and is widely regarded as a measure of profitability and operational efficiency.

Occidental’s ROE is lower than the industry average in the trailing 12 months. ROE of OXY is 9.65% compared with the industry average of 10.94%.

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The Zacks Consensus Estimate for Occidental’s 2026 and 2027 earnings per share indicates an increase of 10.12% and 4.53%, respectively, in the past 60 days.
 

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Occidental’s shares have gained 25.6% in the past six months compared with the Zacks Oil and Gas-Integrated-United States industry’s rise of 16.3%.

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OXY’s Zacks Rank

Occidental Petroleum (OXY - Free Report) closed at $52.30 in the latest trading session, marking a -2.41% move from the prior day. The stock trailed the S&P 500, which registered a daily gain of 0.81%. Meanwhile, the Dow experienced a rise of 0.27%, and the technology-dominated Nasdaq saw an increase of 1.3%.

Coming into today, shares of the oil and gas exploration and production company had lost 6.15% in the past month. In that same time, the Oils-Energy sector lost 3.61%, while the S&P 500 gained 1.13%.

Investors will be eagerly watching for the performance of Occidental Petroleum in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on August 5, 2026. The company is expected to report EPS of $1.94, up 397.44% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $7.22 billion, indicating a 11.88% increase compared to the same quarter of the previous year.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $5.93 per share and revenue of $25.57 billion. These results would represent year-over-year changes of +168.33% and +0.5%, respectively.

Investors should also take note of any recent adjustments to analyst estimates for Occidental Petroleum. Recent revisions tend to reflect the latest near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.

Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.48% higher. Occidental Petroleum presently features a Zacks Rank of #3 (Hold).

Digging into valuation, Occidental Petroleum currently has a Forward P/E ratio of 9.04. This signifies a discount in comparison to the average Forward P/E of 19.87 for its industry.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry, currently bearing a Zacks Industry Rank of 174, finds itself in the bottom 30% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow OXY in the coming trading sessions, be sure to utilize Zacks.com.

In the latest trading session, Occidental Petroleum (OXY - Free Report) closed at $48.57, marking a -1.06% move from the previous day. The stock fell short of the S&P 500, which registered a gain of 0.79% for the day. Meanwhile, the Dow experienced a rise of 0.26%, and the technology-dominated Nasdaq saw an increase of 1.52%.

The oil and gas exploration and production company's stock has dropped by 16.68% in the past month, falling short of the Oils-Energy sector's loss of 4.84% and the S&P 500's loss of 1.82%.

The investment community will be paying close attention to the earnings performance of Occidental Petroleum in its upcoming release. In that report, analysts expect Occidental Petroleum to post earnings of $1.85 per share. This would mark year-over-year growth of 374.36%. Meanwhile, our latest consensus estimate is calling for revenue of $7.23 billion, up 11.96% from the prior-year quarter.

OXY's full-year Zacks Consensus Estimates are calling for earnings of $5.95 per share and revenue of $25.57 billion. These results would represent year-over-year changes of +169.23% and +0.5%, respectively.

It is also important to note the recent changes to analyst estimates for Occidental Petroleum. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 8.08% higher. Occidental Petroleum currently has a Zacks Rank of #3 (Hold).

From a valuation perspective, Occidental Petroleum is currently exchanging hands at a Forward P/E ratio of 8.25. This expresses a discount compared to the average Forward P/E of 18.15 of its industry.

The Oil and Gas - Integrated - United States industry is part of the Oils-Energy sector. This industry currently has a Zacks Industry Rank of 179, which puts it in the bottom 27% of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.

An updated edition of the April 28, 2026 article.

Corporate leadership is evolving as an increasing number of women take on senior roles at publicly traded companies. This shift is being supported by business results, with many women-led organizations demonstrating strong innovation, operational adaptability and solid shareholder returns across a range of industries. These leadership appointments go beyond symbolism, as many of these executives are outperforming peers through disciplined execution, efficient capital allocation and a clear focus on long-term value creation, strengthening investor confidence in more resilient and sustainable business models.

The latest reports paint a nuanced picture: women are becoming a structural force in U.S. entrepreneurship, even as funding and systemic gaps persist. One of the clearest takeaways is scale. Women now own more than 40% of all U.S. businesses, employing roughly 12.6 million people and generating $2.8 trillion in revenues. Growth has also been faster than that of male-owned firms, with women-owned businesses expanding nearly twice as quickly between 2022 and 2025. This shift signals that female entrepreneurship is no longer niche—it is central to the U.S. small- and mid-sized business ecosystem, particularly in services, consumer, healthcare and increasingly tech-enabled sectors. The data suggests women are not just starting companies, but building durable, employment-generating enterprises, a key driver of long-term economic resilience.

Female founders are increasingly gaining traction in AI and next-generation technology markets, which have become the primary destinations for venture capital. This indicates a shift from traditional sectors into high-value, innovation-driven markets, positioning women at the center of future growth themes. According to PitchBook's 2025 Female Founders report, U.S. female-founded startups raised a record $73.6 billion in venture capital in 2025, representing 27.7% of total U.S. VC deal value, the highest share on record. Importantly, AI accounted for roughly two-thirds of all venture dollars invested in female-founded startups.

At the same time, capital is becoming more concentrated in fewer, larger deals—often in AI—suggesting that while top-tier female-led companies are scaling rapidly, broader participation remains uneven.

Despite strong progress, a significant funding gap continues to limit the full potential of female founders. All-female founding teams still receive only about 1–2% of total U.S. venture capital, even though evidence suggests they often deliver higher capital efficiency and competitive returns. This imbalance highlights a structural constraint within the venture ecosystem, where access to early-stage and growth funding remains uneven. As a result, many promising female-led startups may struggle to scale at the same pace as their peers, underscoring a sizable untapped opportunity for investors willing to address this gap.

Despite funding challenges, women-led companies continue to drive innovation and resilience, making them attractive investment opportunities. If you want to capitalize on it, our Women Run Companies Screen will help you spot high-potential stocks in this space.

Investors looking to capitalize on opportunities across diverse industries should consider Newmont Corporation (NEM - Free Report) in gold mining, Pitney Bowes Inc. (PBI - Free Report) in shipping and mailing technology, The Coca-Cola Company (KO - Free Report) in the global beverage industry, Apple (AAPL - Free Report) in consumer technology and digital services, and Occidental Petroleum Corporation (OXY - Free Report) in the energy sector. These companies demonstrate strong leadership and strategic vision within their respective industries, positioning them for long-term growth and value creation.

Ready to uncover more transformative thematic investment ideas? Explore 37 cutting-edge investment themes with Zacks Thematic Investing Screens and discover your next big opportunity.

Newmont: Since joining Newmont in 2023 as chief operating officer and later becoming president and CEO in January 2026, Natascha Viljoen has played a key role in strengthening the company’s operational performance and strategic focus. One of her most important contributions has been overseeing the integration and optimization of Newmont’s expanded asset portfolio following the acquisition of Newcrest Mining. Under her leadership, the company has emphasized operational discipline, asset rationalization and productivity improvements to enhance profitability and cash generation across its global mining operations.

Viljoen has also been instrumental in advancing Newmont’s value-over-volume strategy. Rather than pursuing production growth at any cost, she has focused on improving margins, maximizing returns from high-quality assets and streamlining the company’s portfolio. Newmont has announced plans to divest non-core operations and concentrate capital on its Tier 1 assets, a move designed to strengthen the balance sheet and improve long-term shareholder returns. Her deep technical and operational background has helped drive initiatives aimed at improving mine performance, safety standards and cost efficiency.

Viljoen’s leadership is particularly important as the gold mining industry faces rising cost pressures, stricter environmental expectations and increasing capital allocation scrutiny. Her focus on operational excellence, disciplined capital spending and portfolio optimization positions Newmont to generate stronger free cash flow across commodity cycles. As the first woman to lead the company, Viljoen also brings a fresh leadership perspective while maintaining continuity in Newmont’s long-term strategy. Currently, Newmont sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Pitney Bowes: Debbie Pfeiffer has been one of the key leaders behind the stability and growth of Pitney Bowes’ Presort Services business, a segment that remains central to the company's cash flow generation and customer relationships. As executive vice president and president of Presort Services, she oversees a nationwide network of 35 operating centers and has played an important role in expanding the scale and efficiency of the business. With more than two decades at Pitney Bowes and over 40 years of industry experience, Pfeiffer has helped strengthen customer retention, expand national accounts and improve operating execution across the presort network.

Her contribution is particularly important because Presort Services is one of Pitney Bowes’ most resilient businesses. Under her leadership, the company has continued investing in automation and network expansion to improve service quality and processing efficiency. A recent example is the opening of a new highly automated Presort Services facility in Phoenix, AZ, which significantly increases processing capacity and supports faster mail delivery while lowering costs for customers. In 2025, the Presort network handled more than 15 billion pieces of mail, highlighting the scale of the operation she manages.

Her leadership also aligns with Pitney Bowes’ broader effort to improve profitability and operational performance. Following the company’s first-quarter 2026 results, management continued to emphasize operational efficiency, cash generation and strategic investments in core businesses. The Presort segment remains a valuable asset because it generates recurring revenue, benefits from long-standing customer relationships and provides economies of scale that are difficult for competitors to replicate. Pfeiffer’s ability to drive network optimization, customer growth and cost efficiencies makes her a significant contributor to Pitney Bowes’ long-term earnings and free-cash-flow profile. Currently, Pitney Bowes sports a Zacks Rank #1.

Coca-Cola: Tapaswee Chandele has become a key figure in Coca-Cola’s leadership team after being named executive vice president and global chief people officer in 2026. Having spent more than 25 years with the company, she has helped shape Coca-Cola’s approach to talent development, leadership succession and workforce strategy. Prior to her current role, she led Global Talent, Development and HR System Partnerships, overseeing programs designed to identify, develop and retain future leaders across the organization. Her leadership experience across India, Türkiye, South Africa and the United States has provided her with broad insight into Coca-Cola’s diverse global operations.

Chandele’s impact goes well beyond managing human resources. She has played an important role in strengthening leadership benches, enhancing employee capabilities and supporting organizational change initiatives across the company. Her elevation to the executive leadership team reflects Coca-Cola’s belief that attracting and developing talent is essential to maintaining its competitive position. Given the company’s vast global footprint, effective workforce management and leadership development are critical to driving consistent execution across markets.

Chandele’s role has become increasingly important as Coca-Cola pursues growth opportunities while navigating evolving consumer trends and advancing its digital capabilities. The company has continued to deliver solid organic revenue growth and healthy profitability, supported by strong execution across its global system. As global chief people officer, she is responsible for ensuring that Coca-Cola has the talent, leadership depth and organizational structure needed to support these objectives. Her efforts to build a stronger workforce and leadership pipeline could help sustain operational excellence and long-term value creation. Currently, Coca-Cola carries a Zacks Rank #2 (Buy).

Apple: Deirdre O’Brien has become one of Apple’s most influential executives through her dual role as senior vice president of Retail + People. Reporting directly to CEO Tim Cook, she oversees Apple’s global retail stores, online sales operations and human resources functions. This combination gives her significant influence over both customer engagement and workforce strategy. O’Brien has played a key role in shaping Apple’s retail experience, ensuring that product launches, service offerings and customer support remain consistent with the company’s premium brand positioning. She has also been involved in every major Apple product launch during her nearly four-decade tenure with the company.

From an operational standpoint, O’Brien’s contribution extends beyond retail execution. She leads talent management, recruiting, leadership development, compensation and employee support programs, helping Apple maintain a strong corporate culture while managing a workforce that supports millions of customers worldwide. Her focus on connecting employees, processes and customers has helped Apple preserve high levels of customer satisfaction and employee engagement despite its massive global scale. In an environment where technology companies compete aggressively for talent, her leadership is an important factor in Apple’s ability to attract and retain skilled employees.

Her impact is particularly relevant as Apple continues to deliver strong financial performance. In fiscal second-quarter 2026, Apple reported a record March-quarter revenue of $111.2 billion, up 17% year over year, while earnings per share rose 22% to $2.01. The company also achieved an all-time high in Services revenues and recorded double-digit growth across every geographic segment. Apple’s extensive retail network remains a critical channel for product sales, customer acquisition and ecosystem engagement, making O’Brien’s leadership an important contributor to the company’s long-term growth strategy and brand strength. Currently, Apple carries a Zacks Rank #2.

Occidental: Sylvia Kerrigan has become one of Occidental’s most influential executives through her role as senior vice president and chief legal officer. As the company’s top legal leader, she oversees global legal affairs, corporate governance, compliance and regulatory matters across Occidental’s oil and gas, chemicals and carbon management businesses. Her role is particularly important because Occidental operates in highly regulated markets where legal oversight, environmental compliance and transaction execution directly affect shareholder value. She also serves as a key adviser to the board and senior management on strategic decisions and risk management.

Kerrigan’s contribution has been especially relevant during Occidental’s transformation into a broader energy and carbon management company. The company has pursued major acquisitions, expanded its carbon capture initiatives through its subsidiary 1PointFive and continued optimizing its portfolio while managing a sizable asset base across the United States and international markets. Effective legal and governance oversight is critical to executing these initiatives, securing permits, managing contractual obligations and reducing regulatory risks. Her leadership helps ensure that strategic projects move forward while maintaining compliance with evolving environmental and energy regulations.

Her role also supports Occidental’s financial objectives. In the latest reported quarter, the company generated solid operating cash flow despite commodity-price volatility, supported by strong production from its oil and gas assets and steady contributions from its chemicals business. As Occidental continues to balance capital returns, debt management and investments in low-carbon technologies, Kerrigan’s expertise in governance, compliance and transaction execution remains an important enabler of long-term value creation. Her ability to help navigate legal complexities and regulatory challenges strengthens Occidental’s operational resilience and supports the successful execution of its long-term growth strategy. Currently, Occidental carries a Zacks Rank #2.