I really like the new CEO Richard Jackson. Petroleum engineer by training, as was Vicki, but he always impressed me more than Vicki as the former (VP of Operations). His imprint on the company's new strategy is clearly apparent, with a newfound focus on operational efficiency(opex reduction and production maintenance), capital discipline, enhanced oil recovery, production base decline improvement, debt reduction, very cautious capital deployment towards rank exploration, downplaying the CO2 DAC effort fiasco etc...I think Charlie would be happy with him.
oxy.com - Quarterly earnings
seekingalpha.com - Occidental petroleum corporation oxy q2 earnings call transcript

AI slop summary below.

Occidental Petroleum (OXY) reported strong Q2 2026 results, 2026), with solid profits, cash generation, and production that beat expectations, largely thanks to higher oil prices and good operational performance.

Adjusted earnings were about $2.40 per share (well above forecasts around $1.80–$1.90), and reported earnings hit $2.75 per share. Revenue came in around $8.3 billion. They produced about 1.433 million barrels of oil equivalent per day (Mboed) worldwide, beating the top of their guidance range, with strong results from the Permian Basin and Gulf of America/Mexico operations. Realized oil prices jumped sharply (around $97 per barrel worldwide, up significantly from prior periods), which boosted oil-and-gas segment profits. The midstream and marketing side also had a strong turnaround, delivering record-level adjusted income. Free cash flow before working capital hit about $3.0 billion—the best quarterly figure since late 2022—after $1.6 billion in capital spending. Operating cash flow was strong at around $5.1 billion. They also raised the quarterly dividend by another 8% (to $0.28 per share).

Debt reduction and preferred stock remain a clear focus. They cut principal debt by $1.9 billion in the quarter, bringing it down to $11.8 billion (the lowest level in years and advancing toward a $10 billion milestone). Year-to-date debt paydowns have been substantial (helped by earlier proceeds from the OxyChem sale). Lower debt has already reduced interest costs meaningfully. Management’s near-term priority is reaching the $10 billion principal debt target; after that, they plan to further cut net debt while building cash reserves ahead of the preferred equity redemption. The preferred stock (issued to Berkshire Hathaway in connection with the 2019 Anadarko deal) still has roughly $8.5 billion face value outstanding and carries an 8% annual dividend. Occidental cannot voluntarily redeem it before August 2029 (and then at a 5% premium). There are also rules that can require matching redemptions if common-stock distributions exceed certain levels. Management has repeatedly said they will balance further debt reduction with accumulating cash so they are ready to redeem the preferred shares starting in 2029, which should free up significant cash flow thereafter (no more high preferred dividends). Share buybacks are a lower priority until then.

On the technical/operations side, Occidental is emphasizing ways to make existing production last longer and decline more slowly, which lowers the capital needed just to hold output steady (sustaining capital). A key goal is reducing the overall base production decline rate from roughly 25% toward about 20% by 2030 (with further improvements possible later). They draw on decades of experience with CO2-enhanced oil recovery (EOR)—injecting carbon dioxide to push more oil out of reservoirs. They have run pilots in the Permian for years and consistently seen recovery uplifts of more than 45% (and believe commercial-scale projects could do even better, potentially lifting unconventional recovery factors from around 10% toward 15–20% with ongoing CO2 cycling). Three commercial unconventional CO2 EOR projects are advancing (expected online later in the decade), with a larger pipeline of opportunities. This, combined with conventional EOR optimization, waterfloods (including in the Gulf of America), and other advanced recovery techniques, is expected to flatten declines and support lower long-term sustaining capital (targeting around $4.5 billion by 2030). They also highlight ongoing well-cost and capital-efficiency gains.

In the Delaware and broader Permian basins, they continue to de-risk and develop secondary (and tertiary) benches—deeper or secondary geologic layers such as upper Bone Spring intervals, deeper Wolfcamp and Barnett formations. These have been a growing share of the drilling program (rising into the mid-40% range in some commentary) and are delivering solid performance relative to industry averages, often while using existing infrastructure for better returns. This expands inventory and supports longer-term production durability without needing as much new primary-zone activity.

Overall guidance points to continued disciplined capital spending (full-year 2026 range tightened/lowered in some reports) and solid production, with a pathway to more than $4 billion in annual sustainable free-cash-flow improvement by 2030 through lower declines, efficiency, interest savings, and other factors (before any extra help from higher oil prices).Brief bio on the new CEO: Richard Jackson became President and CEO (and joined the board) effective June 1, 2026, succeeding long-time CEO Vicki Hollub. He is a petroleum engineer (B.S. from Texas A&M) with more than 20–25 years in the industry, almost all at Occidental since joining in 2003 (starting in Middle East operations). He has held a series of technical and leadership roles, including Vice President of Drilling Americas, Vice President of Investor Relations, General Manager of the Permian Delaware Basin and EOR, President of Low Carbon Integrated Technologies / Oxy Low Carbon Ventures, President of U.S. Onshore Oil and Gas / Resources and Carbon Management, and most recently Senior Vice President and Chief Operating Officer (from late 2025). He has deep experience in drilling, Permian operations, enhanced oil recovery, and low-carbon technologies.

In short, the quarter showed strong near-term financial results and cash generation that are being used to strengthen the balance sheet, while management continues to highlight technical work on EOR and secondary benches as ways to improve the durability and capital efficiency of the production base over the longer term.