Skip to content
Options Trading Report

Options Trading Report

Primary Menu
  • Home
  • Business
  • Economy
  • Top News
  • Newsletters
  • Home
  • 2026
  • November
  • Occidental Beat Q3 by 31% and Hit Its Debt Target Early. The Next Target Is $6 Billion.
  • Market News

Occidental Beat Q3 by 31% and Hit Its Debt Target Early. The Next Target Is $6 Billion.

OXY delivered $2.8B in free cash flow, retired $10.4B in debt year to date, and set a new $6B principal-debt milestone. Berkshire owns about 26.5% of OXY common stock.
Editor November 13, 2026 3 minutes read
8b68e8ae-3065-49ca-b1d8-f6f4b5c69540

Occidental Petroleum walked into its November 9 earnings call having already accomplished something it was not supposed to finish this year. The company retired $10.4 billion in debt through the first nine months of 2026, reaching its $10 billion principal-debt milestone ahead of schedule and immediately setting a new target: get principal debt down to $6 billion.

The earnings numbers were a separate story, and a compelling one. Adjusted EPS came in at $1.91 against a consensus estimate of about $1.46, a beat of roughly 31%. The driving force was a dramatic collapse in interest expense, which fell to $78 million in Q3 from $266 million in the same quarter a year ago. Free cash flow reached approximately $2.8 billion. Total production averaged 1.427 million barrels of oil equivalent per day, exceeding the midpoint of guidance.

The $6 Billion Target Changes the Math

Reaching $6 billion in principal debt would bring annual interest expense down further from current levels. Management has framed the milestone as part of a path to meaningfully lower cash interest versus 2025, and it also said $6 billion in principal debt implies a debt-to-EBITDA ratio of approximately 1 at $50 per barrel WTI, a floor they intend to maintain through the cycle. The company may reach that target and potentially a net cash position in 2027.

Beyond debt reduction, Occidental is targeting more than $4 billion in additional annual sustainable cash flow by 2030 versus 2025, roughly a 95% increase, through lower decline rates, reduced interest costs, and operating efficiencies. Its STRATOS direct-air-capture facility remains on track to begin full operations in 2027, with expected EBITDA of $90 million to $130 million in 2028.

Why Wall Street Is Watching

Berkshire Hathaway, the company Warren Buffett built, owned 26.5% of Occidental’s common stock as of September 30, 2026, in its most recent quarterly report, plus additional preferred shares and warrants. That stake did not emerge from a passive index position: the relationship deepened when Berkshire completed the $9.7 billion cash acquisition of OxyChem on January 2, 2026, giving Occidental immediate proceeds to accelerate its debt paydown. Wells Fargo maintained an Overweight rating on November 11, though it trimmed its price target to $76 from $82. The street average target sits around $71, against a recent price around $57 to $58.

The stock has recently traded with a 52-week range of $38.80 to $67.45, and its dividend yield has been about 2%. Oil above $85 per barrel supported free cash flow this quarter. In its Q3 release, Occidental reported an average WTI marker price of $85.79 per barrel during the quarter.

What Could Go Wrong

Oil price is the master variable. The 2027 capital budget of approximately $5.9 billion is framed by management as sustaining capital with production roughly flat, meaning cash flow improvement depends on commodity prices cooperating. A sustained move below $70 WTI pressures the debt reduction timeline and reduces the dividend cushion. Preferred equity redemption is due to begin in August 2029, constraining how management allocates cash in the interim. Around $57 to $58, OXY sits roughly 15% below its 52-week high, making it neither obviously cheap nor obviously expensive without a view on oil.

The Bottom Line

Occidental just beat earnings by about 31%, hit a major debt milestone ahead of schedule, set a new $6 billion principal-debt milestone, and outlined a path to $4 billion in additional sustainable cash flow by 2030. With Berkshire as a 26% plus anchor shareholder, the stock is not priced for that outcome yet. The risk is oil, and that is not a small risk. But the operational case has rarely been cleaner than it is today.

Post navigation

Previous: Elections Trip the Market – by Justin Vaughn, Editor, Options Trading Report

Related Stories

Election Shockwaves_ Markets Whipsaw
  • Market News

Elections Trip the Market – by Justin Vaughn, Editor, Options Trading Report

Editor November 13, 2026
47a8560f-fb94-4a2b-bc7b-7630c5cf3849
  • Market News

Nine Days of Outflows From BlackRock’s Bitcoin ETF

Editor November 12, 2026
2313710b-2ed0-43ac-a1e2-41201dde5aed
  • Market News

Caterpillar Just Got a $3.4 Billion Order From an AI Lab. The Stock Is Still Down 44% From Its High.

Editor November 10, 2026

Live Market Pulse

The charting technology is provided by TradingView. Learn how to use theTradingView Stock Screener.

Want More Market News?
Add your email address below to get up to date market news and more!
By submitting your email address, you'll receive a free subscription to Options Trading Report newsletter (Privacy Policy). These newsletters are completely free - and always will be. You will also receive occasional offers about products and services available to you from our affiliates. You can unsubscribe at any time.

Recent Posts

  • Occidental Beat Q3 by 31% and Hit Its Debt Target Early. The Next Target Is $6 Billion.
  • Elections Trip the Market – by Justin Vaughn, Editor, Options Trading Report
  • Warning To Traders On This Black Friday Deal
  • Crocs Trades at 12x Earnings. The Cash Is the Point.
  • Get this pick before January 1st
  • Anthropic Prices Wednesday. Nvidia Reports Tuesday. 48 Hours to Decide.
  • Labor Dept: Dollar Lost 87.9% Since 1971

Search

Categories

  • Business
  • Economy
  • Market News
  • Newsletters
  • Top News

You may have missed

8b68e8ae-3065-49ca-b1d8-f6f4b5c69540
  • Market News

Occidental Beat Q3 by 31% and Hit Its Debt Target Early. The Next Target Is $6 Billion.

Editor November 13, 2026
Election Shockwaves_ Markets Whipsaw
  • Market News

Elections Trip the Market – by Justin Vaughn, Editor, Options Trading Report

Editor November 13, 2026
8bfe7f89-f764-4166-9704-ea8c31652b40
  • Newsletters

Warning To Traders On This Black Friday Deal

Editor November 13, 2026
c13fef04-79bd-4482-b0eb-e280fc74f970
  • Newsletters

Crocs Trades at 12x Earnings. The Cash Is the Point.

Editor November 13, 2026
  • About Us
  • Disclaimer
  • Privacy Policy
  • Terms of Service/Use Agreement
  • Contact Us
Copyright 2026 © All rights reserved | Options Trading Report | optionstradingreport.com SITE_OK
Manage Consent
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
  • Manage options
  • Manage services
  • Manage {vendor_count} vendors
  • Read more about these purposes
View preferences
  • {title}
  • {title}
  • {title}