Abstract
Occidental Petroleum will report its second-quarter results on August 05, 2026, Post Market; the preview summarizes expected revenue, profitability, and EPS dynamics alongside institutional stances and business-segment highlights for the upcoming print.
Market Forecast
Consensus for the current quarter anticipates total revenue of 7.08 billion US dollars, EBIT of 2.90 billion US dollars, and adjusted EPS of 1.85, implying year-over-year growth of 12.80%, 214.81%, and 548.86%, respectively. Forecast commentary points to modest revenue expansion and improved profitability, with margin stabilization expected; specific gross margin and net margin forecasts are not available. The main business is expected to be supported by upstream oil and gas realizations, while midstream and marketing provide steady contributions. The most promising segment is oil and gas, with revenue scale above 20.90 billion US dollars last quarter and a constructive year-over-year outlook tied to commodity prices.
Last Quarter Review
In the previous quarter, Occidental Petroleum reported revenue of 5.11 billion US dollars, a gross profit margin of 70.57%, net profit attributable to shareholders of 3.35 billion US dollars, a net profit margin of 63.96%, and adjusted EPS of 1.06, with year-over-year revenue down 25.34% and adjusted EPS up 21.84%. One notable highlight was a sharp quarter-on-quarter rebound in net earnings, with quarter-on-quarter growth of 2554.76% in net profit, indicating significant operating leverage and nonrecurring comparisons. By segment, oil and gas remained the core, contributing 20.90 billion US dollars, while midstream and marketing added 1.28 billion US dollars; segment revenue dynamics were shaped by commodity differentials and throughput.
Current Quarter Outlook
Upstream oil and gas
Upstream drives Occidental Petroleum’s near-term earnings sensitivity through realized crude and natural gas pricing and production volumes. The forecast points to higher year-over-year revenue and EBIT, which aligns with a firmer oil strip and efficiency gains in core basins. Investors will focus on well productivity, capital discipline, and any updates to production guidance across the Permian, Rockies, and international assets. Price realizations relative to benchmarks and differentials in the Permian are crucial to unit cash margins and could influence both reported EBIT and adjusted EPS this quarter.
Most promising growth area
The company’s oil and gas segment remains the largest growth lever near term, benefiting from price tailwinds and operational efficiency. Management’s emphasis on capital allocation, high-return projects, and maintaining steady development cadence can expand free cash flow if commodity prices hold. Watch for commentary on drilling and completion cycle times, enhanced recovery techniques, and potential incremental production from key plays, which collectively can sustain volume growth while maintaining cost control.
Key stock-price swing factors this quarter
Commodity price volatility remains the primary driver for Occidental Petroleum’s stock performance this quarter, especially any moves in Brent and WTI benchmarks. Differential changes in the Permian and Gulf Coast markets can affect realized prices, while NGL and gas pricing provide additional variability. Operating cost trends, maintenance schedules, and any hedging updates may also sway margins. Capital return plans, including buybacks and balance sheet updates, could frame investor sentiment alongside any commentary on strategic initiatives.
Analyst Opinions
Bullish opinions dominate recent institutional commentary, highlighting improved commodity realizations, disciplined capital spending, and the potential for positive earnings surprises relative to forecast EPS of 1.85. Analysts emphasize operating leverage to oil prices and efficiency gains in core shale assets as reasons for optimism. Some institutions note that valuation remains supported by free cash flow resilience if the current oil strip holds, reinforcing a constructive stance into the print.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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