Occidental Petroleum stock: New debt target follows Q3 milestone

Published on 11/13/2026 at 17:04 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Occidental Petroleum stock enters a new balance-sheet phase after management set a 6-billion-US-dollar debt target. Fourth-quarter output is expected to recover.

Debt target resets balance-sheet focus

Third-quarter production exceeded the midpoint of management guidance despite Gulf of America disruptions.
Management expects fourth-quarter output to recover and 2027 production to remain broadly flat.
Capital spending and cash-flow improvements will shape the next phase of deleveraging.

Occidental Petroleum, US6745991058, Illustration mit AI erstellt.

Occidental Petroleum's management set a new principal-debt milestone of 6 billion US dollars during the company's third-quarter earnings call on November 11, shifting the focus from reaching the previous target to sustaining balance-sheet improvement. A Zacks Investment Research report carried by The Globe and Mail said the target could support a debt-to-EBITDA ratio of roughly one at 50 US dollars per barrel of West Texas Intermediate crude.

Occidental repaid 1.8 billion US dollars of principal debt during the quarter, taking repayments for 2026 to 10.4 billion US dollars. Unrestricted cash stood at 3.9 billion US dollars at quarter-end. Management said the company could reach the new milestone and potentially move to a net cash position in 2027 at mid-cycle or current strip prices.

Production outlook points to recovery

Third-quarter production averaged 1.43 million barrels of oil equivalent per day and exceeded the midpoint of guidance. Strong execution in the Permian and Rockies offset temporary Gulf of America disruptions tied to a third-party gas pipeline constraint and maintenance.

Management expects fourth-quarter production of 1.43 million to 1.47 million barrels of oil equivalent per day. It projects broadly flat total production in 2027, with oil output flat to slightly higher. The outlook still reflects operational risks in the Gulf and the effect of an October hurricane.

Spending and cash flow remain key

Occidental sees starting 2027 capital spending at approximately 5.9 billion US dollars. Management also projected 700 million to 800 million US dollars of sustainable annual cash-flow improvement in 2027 versus 2026, with the longer-term objective exceeding 4 billion US dollars annually by 2030 compared with 2025.

Occidental Petroleum stock traded at 53.22 euros on Lang & Schwarz at 17:01 CET on Friday, November 13. That was 1.86 percent above the 52.25-euro quote recorded in the November 12 report at 16:34 CET. The move since that report is separate from the company's operating outlook and does not establish a causal link.