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Occidental Tops Q3 Forecasts, Lifts Cash Flow and Cuts Debt as It Moves to Sell OxyChem

Management signals a portfolio pivot toward higher-return oil projects following plans to divest the chemicals business.

Overview

  • Adjusted earnings came in at $0.64 per share versus the $0.52 consensus, with revenue of $6.72 billion slightly above estimates.
  • Total production reached 1.465 million boe/d, exceeding guidance, including 800 Mboe/d in the Permian, 288 Mboe/d in the Rockies, and 238 Mboe/d internationally.
  • Operating cash flow totaled $2.8 billion and free cash flow was $1.5 billion before working capital, enabling $1.3 billion of debt repayment and reducing principal debt to $20.8 billion.
  • Fourth‑quarter guidance calls for total production of 1,440–1,480 Mboe/d, with the Permian at 795–815 Mboe/d.
  • Shares traded higher after the release as analysts highlighted a reported ~18% increase in resources to 16.5 BBoe and noted plans to reallocate OxyChem capital toward EOR, Gulf of America water floods, and low‑cost Permian opportunities, alongside lower U.S. opex guidance.