Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Occidental Petroleum's second quarter of fiscal 2026 was defined by its transformation into a pure-play oil and gas company following the January completion of the OxyChem sale to Berkshire Hathaway, which generated a $3.1 billion after-tax gain and provided cash to pay down $8.6 billion in debt. Strong oil and gas revenue, up 53% year over year, reflected higher production and favorable commodity prices, though the company did not provide detailed operational commentary. The divestiture significantly strengthened the balance sheet, reducing the debt-to-equity ratio to 0.32, but the quarter also saw a $230 million loss on asset divestitures and a $234 million loss on commodity derivatives, highlighting ongoing volatility risks.
Revenue
$8.06B
+53.39% YoY
EPS (Diluted)
$2.75
+957.69% YoY
Source: SEC XBRL
Occidental Petroleum (OXY) reported Q2 FY2026 revenue of $8.06B, up 53.4% year over year. OXY's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 1.06 | 0.60 | Beat +77.5% |
| Dec 2025 | 0.31 | 0.18 | Beat +68.2% |
| Sep 2025 | 0.64 | 0.52 | Beat +23.0% |
| Jun 2025 | 0.39 | 0.29 | Beat +35.2% |
Compiled by AI from this SEC filing
The sale of OxyChem to Berkshire Hathaway closed on January 2, 2026 for an adjusted net proceeds of $9.5 billion, resulting in a $3.1 billion after-tax gain included in discontinued operations.
Source: 10-Q Note 4 Discontinued Operations
After-tax proceeds from the OxyChem sale and free cash flow were used to repay $8.6 billion of debt, reducing total face value from $20.4 billion to $11.8 billion and the long-term debt-to-equity ratio to 0.32.
Source: 10-Q Note 3 Long-Term Debt
The company entered into crude oil two-way collars for the remainder of 2026 with a floor of $55/bbl and a weighted-average ceiling of $75.89/bbl on 100,000 barrels per day to manage cash flow variability.
Source: 10-Q Note 5 Derivatives
BlackRock's $550 million commitment to the direct air capture joint venture has been fully invested; the plant remains under construction with $1.3 billion in construction-in-progress.
Source: 10-Q Note 1 General
Non-core leasehold and processing plant sales in the Permian Basin resulted in a $230 million loss, partially offsetting the OxyChem gain.
Source: 10-Q Note 4 Acquisitions and Divestitures
Compiled by AI from this SEC filing · 1 high, 3 medium, 1 low
As a pure-play oil and gas producer, Occidental's revenue and cash flow are highly sensitive to oil and natural gas prices. The $234 million loss on crude collars in H1 2026 demonstrates the financial impact even when hedging.
Source: 10-Q Note 5 Derivatives
Although debt was cut to $11.8 billion, the company still carries significant leverage. A sustained downturn in energy prices could pressure its ability to service debt and maintain investment-grade credit.
Source: 10-Q Balance Sheet
The sale of OxyChem eliminates diversification, leaving Occidental exposed entirely to the E&P sector. Earnings are now tied to a single volatile industry with no downstream or chemical buffer.
Source: 10-Q Note 4 Discontinued Operations
Occidental retains substantial legacy environmental obligations, including those from the OxyChem transaction, with remediation liabilities of $1.7 billion. Regulatory changes could increase these costs.
Source: 10-Q Note 7 Environmental Liabilities
The direct air capture joint venture may incur additional payments if construction or operational thresholds are not met. Failure to achieve commercial operations could result in a write-down of the $1.3 billion investment.
Source: 10-Q Note 1 Noncontrolling Interest
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 8.07 $B | 5.26 $B | +53.39% |
EPS (Basic) $ | 2.80 $ | 0.27 $ | +937.04% |
EPS (Diluted) $ | 2.75 $ | 0.26 $ | +957.69% |
SG&A Expense $M | 262.00 $M | 257.00 $M | +1.95% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
OXY reported Q1 FY2026 revenue of $5.23B (down 8.3% YoY) while EPS surged 294% to $3.19, driven by a major asset divestiture that generated $7.85B in investing cash flows and enabled a $10B reduction in long-term debt.
OXY reported a challenging FY2025 with revenue declining 1.9% to $21.6B and EPS falling 36.3% to $1.65, though the company made meaningful progress reducing long-term debt by 15.5% to $21.4B following its CrownRock acquisition integration.
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