Occidental Petroleum beats Q1 2026 guidance as CEO Vicki Hollub steps down
The company produced 1.426 million barrels of oil equivalent per day, though full-year output targets were revised lower due to regional instability.
Occidental Petroleum reported first-quarter 2026 earnings on 6 May 2026, surpassing the upper end of its guidance for both the Oil and Gas and Midstream and Marketing segments. The results were delivered during a conference call that also marked a significant leadership transition for the international energy company.
CEO Vicki Hollub announced her retirement, effective 1 June 2026, following a career that has seen the firm navigate complex global energy dynamics. The board has approved Senior Vice President and COO Richard Jackson as her successor. Jackson, who currently serves as the chief operating officer, confirmed that the company exceeded expectations in its key operational areas during the quarter.
Production figures for the period showed the company generated 1.426 million barrels of oil equivalent per day. However, the outlook for the remainder of the year has been tempered by external factors. Disruptions in the Middle East, alongside strategic enhanced oil recovery actions, have led management to adjust the midpoint of full-year production guidance to 1.44 million BOE per day.
Financial results highlighted a notable divergence between reported and adjusted metrics. Adjusted earnings per diluted share stood at $1.06, whereas reported earnings were significantly higher at $3.13 per diluted share. Senior Vice President and CFO Sunil Mathew explained that the difference between the two figures is primarily attributable to gains associated with the sale of OxyChem.
Despite the production guidance revision, the company remains optimistic about its midstream operations. Strong performance in the early part of 2026 prompted Occidental to raise the midpoint of its full-year midstream guidance to $1.1 billion, an increase of approximately $800 million compared to previous forecasts. The full-year capital spending outlook remains stable, projected between $5.5 billion and $5.9 billion.
Operational updates regarding the STRATOS project were also provided during the call. Jackson confirmed that construction of Phase 2 has been completed. However, the company identified an issue involving non-process components at the site, which is unrelated to the underlying technology. Management is currently reviewing the repair timeline and assessing the potential impact on the project's operating schedule.
