Occidental Petroleum (OXY) said Tuesday it expects flat production growth next year and capital spending to fall below this year’s levels, with prices currently mired in the low $60s/bbl.
The company said it forecasts FY 2026 capital spending in the $6.3 billion-$6.7 billion range, compared with its 2025 projection of $7.1 billion-$7.3 billion, while production comes in flat to a 2% increase, driven primarily by unconventional Permian operations, Sunil Mathew said on its earnings conference call, according to Reuters.
Occidental (OXY) plans to invest up to $400 million in U.S. onshore operations in 2026, primarily located in the Permian Basin and the Rockies region, and the CFO said allocating more capital to such projects likely will provide it greater flexibility if macro conditions worsen.
The company also plans to boost spending in the U.S. Gulf and Oman by $250 million, while reducing allocation to its low-carbon portfolio.
Mathew also said Occidental (OXY) remains focused on cutting its debt load, built up after major acquisitions of Anadarko Petroleum and CrownRock, while boosting shareholder returns.
Occidental (OXY) closed +0.1% in Tuesday’s trading after reporting Q3 net profit fell to $661 million, $0.65/share, from $964 million, or $0.98/share in the year-earlier quarter, while revenues fell 6% Y/Y to $6.72 billion; on an adjusted basis, Q3 earnings fell to $694 million, or a larger than expected $0.64/share, compared to $977 million, or $1.00/share, last year.
The company said Q3 global production edged up to 1.46 million boe/day from 1.41 million boe/day a year ago, while guiding for Q4 output of 1.44 million-1.48 million boe/day.