| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 84 | 9.5x | 17.8x | Top tier | |
Growth | 59 | 18.5% | 7.1% | Around median | |
Quality | 49 | 7.0% | 4.5% | Around median | |
Safety | 74 | 0.7x | 2.6x | Top tier | |
Capital Return | 66 | 1.63% | 2.12% | Around median | |
Momentum | 83 | 29.2% | 2.9% | Top tier | |
Sentiment | 91 | 13 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Occidental Petroleum Corporation operates through an integrated portfolio that includes oil and gas production in the United States and international markets, alongside marketing and transportation, OxyChem, and Low Carbon Ventures projects. Its production in Q2 FY2026 was approximately 1.43 million barrels of oil equivalent per day, with domestic performance relying on the Permian Basin and the Gulf of America, while the marketing and transportation business benefits from gas price differentials and crude marketing margins. The company holds resources estimated at approximately 16.5 billion barrels of oil equivalent, 88% of which are within the United States, and says this base provides a low-cost development runway extending beyond 30 years.
In Q2 FY2026, Occidental reported revenue of $8.1 billion, net income of $3.0 billion, and reported diluted earnings per share of $2.75, compared with adjusted earnings of $2.40 per share. Net income equates mathematically to approximately 37% of revenue, while the company generated nearly $3 billion of free cash flow before working capital changes, its highest quarterly level since Q3 FY2022. FY2025 data show revenue of $21.6 billion and net income of $2.3 billion, highlighting the strength of the latest quarter's result compared with the previous annual base.
The Q2 FY2026 performance mix was broad but uneven across segments: production exceeded the upper end of guidance, and the marketing and transportation segment recorded adjusted pre-tax income of approximately $960 million, more than double the midpoint of prior guidance, supported by improved gas marketing, crude margins, and sulfur prices at Al Hosn. Strength in the Permian and OxyChem also supported results, while Middle East disruptions reduced international volumes. The company ended the quarter with approximately $4.2 billion of unrestricted cash after reducing principal debt to $11.8 billion.
The average analyst price target is $69.2, within a range of $63 to $79, with the consensus rated Buy; the average is slightly above the 52-week range high of $67.45, while the highest target is clearly above that high. No price-to-earnings ratio is provided in the data, so the stock's valuation here is based on the breadth of the target range compared with the 52-week range of $38.8 to $67.45, and on the company's ability to convert its $4 billion cash flow plan by 2030 into actual results despite commodity price and execution risks.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Occidental reported revenue of $8.1 billion, net income of $3.0 billion, and reported earnings per share of $2.75 in Q2 FY2026. Adjusted earnings per share were $2.40, while free cash flow before working capital changes reached approximately $3 billion, the highest since Q3 FY2022. Results were supported by production of 1.43 million barrels of oil equivalent per day, record marketing and transportation income of approximately $960 million, and the performance of the Permian and OxyChem.
The company is targeting more than $4 billion of sustainable annual improvement compared with FY2025 and expects to achieve approximately half of it by the end of FY2027. The plan includes reducing sustainable capital by $900 million, lowering the base production decline rate from approximately 25% to 20%, and reducing well costs by a targeted 12%. It also includes reducing interest expense by approximately $740 million compared with FY2025 and the conclusion of nearly $400 million in Low Carbon Ventures spending as Stratos transitions to operations.
Principal debt was $11.8 billion at the end of Q2 FY2026 after being reduced by $1.5 billion since the previous call, its lowest level since Q2 FY2019. Net principal debt was $7.6 billion after accounting for $4.2 billion of unrestricted cash. The company is targeting principal debt of $10 billion, while maturities through the end of 2029 do not exceed $414 million, and the future annualized interest rate declines to approximately $760 million.
Automated analysis for informational purposes only — not investment advice.
Strong performance from new wells and the production base in the Permian contributed to production exceeding guidance in Q2 FY2026. Carbon dioxide injection trials in the Midland and Delaware reservoirs showed an increase of more than 45% in estimated ultimate recovery, which could raise average recovery from an unconventional well from approximately 10% to nearly 15%, with an ambition to reach 20% through repeated injection cycles. The company also plans to reduce three rigs in Q4 FY2026 while bringing 15 additional wells into production, demonstrating the impact of drilling and development efficiency.
The company expects marketing and transportation income to decline in Q3 FY2026 as the gas price differential between Waha and the Gulf Coast narrows following the addition of transportation capacity. Expected domestic lease operating expenses will also rise to $8.75 per barrel of oil equivalent due to maintenance and weather contingencies in the Gulf of America. Internationally, Middle East disruptions reduced volumes in Q2 FY2026, and shipping volatility could affect sulfur selling prices or the timing of Al Hosn sales.
The board increased the quarterly dividend by 8% to $0.28 per share in August 2026, supported by debt reduction and improvements in costs and cash flows. Management describes a sustainable and growing dividend as a foundational priority but ties any further growth to the balance sheet's and cash flow's ability to support it throughout the energy price cycle. Share repurchases will remain opportunistic and a lower priority than debt reduction and accumulating cash for the preferred share redemption scheduled for August 2029.
