Occidental Petroleum Corporation
Other securities:
OXY.Wwarrant
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ITEMS 1 AND 2. BUSINESS AND PROPERTIES
In this Form 10-K, “Occidental” refers to Occidental Petroleum Corporation, a Delaware corporation; “the Company,” “it,” and “our” refer to Occidental and/or one or more entities in which it owns a controlling interest (subsidiaries). Occidental’s executive offices are located at 5 Greenway Plaza, Suite 110, Houston, Texas 77046; telephone (713) 215-7000.
The Company is an international energy company recognized for its premier diversified assets, primarily situated in the United States, the Middle East and North Africa. The Company’s distinguished operational capabilities support sustainable value creation for shareholders. The Company ranks among the largest oil and gas producers in the U.S., holding leading positions in the Permian and DJ Basins as well as offshore Gulf of America, and is the largest independent oil producer in Oman. Our midstream and marketing segment ensures flow assurance and optimizes the value of oil and gas operations. Additionally, Oxy Low Carbon Ventures, a subsidiary within the midstream and marketing segment, focuses on advancing innovative decarbonization technologies and solutions—including direct air capture, carbon sequestration and lithium development to advance the Company’s growth opportunities while reducing overall emissions and delivering the energy and products the world needs.
RECENT DEVELOPMENTS
In October 2025, the Company announced entry into a purchase and sale agreement with Berkshire Hathaway to sell all of the issued and outstanding equity interests in OxyChem in an all-cash transaction for $9.7 billion, subject to post closing adjustments. The sale was completed on January 2, 2026, resulting in an estimated gain of $3.2 billion, net of taxes subject to post-closing adjustments. As a result of the agreement to sell OxyChem, its results are reported separately as discontinued operations in our consolidated statements of operations for all periods presented and its assets and liabilities have been reclassified in our consolidated balance sheet to assets and liabilities held for sale. Prior to presentation of OxyChem as discontinued operations, the Company’s chemical business was a reportable segment.
As a result of our agreement to sell OxyChem, the following changes in our basis of presentation have occurred:
■In accordance with ASC 205, Discontinued Operations, intersegment sales from our oil and gas and midstream and marketing segments to the chemical segment are no longer eliminated as intercompany transactions. All periods presented have been retrospectively adjusted to reflect this change.
■Beginning October 1, 2025, in accordance with ASC 360, PP&E, depreciation and amortization were no longer recorded for the chemical segment’s PP&E and right of use lease assets.
The Company’s culture is built upon the following core values:
■Lead with Passion
■Outperform Expectations
■Deliver Results Responsibly
■Unleash Opportunities
■Commit to Good
The Company’s human capital resources and programs are managed by its Human Resources department, with support from business leaders across the Company. The Company’s senior management team plays a key role in setting and monitoring the Company’s culture, values and broader human capital management practices, with oversight by the Company’s Board of Directors, the Sustainability and Shareholder Engagement Committee of the Board and the Environmental, Health and Safety Committee of the Board. To enhance senior leadership’s engagement with employees, the Company hosts quarterly executive virtual conversations led by its President and CEO, Vicki Hollub, who along with other executives reviews financial and operational performance of the Company and responds to employee questions.
The Company strives to create an environment where employees’ differences are appreciated, celebrated and encouraged. The Company has attracted, and continues to recruit, a diverse workforce of exceptional talent. This diversity enriches the Company’s culture and its employees’ experiences on the job and contributes to an innovative and effective business model that helps communities where we operate thrive. The Human Resources department supports several
OXY 2025 FORM 10-K | 3 |
| BUSINESS AND PROPERTIES | |||||||
voluntary Employee Resource Groups, which promote peer engagement and education to help advance inclusion and a sense of belonging of employees with common interests.
TALENT ATTRACTION, DEVELOPMENT AND RETENTION
The Company recruits candidates in numerous ways, including through job fairs, professional societies and campus recruiting. To attract and retain talent, the Company has implemented programs that afford employees flexibility and promote work-life balance. Among them is the Balanced Workplace Program under which eligible office-based employees may opt to work three days in the office and two days at home each week.
In addition, the Company’s global STEP was formed to recruit, develop and retain highly skilled and valued geoscientists, engineers, scientists and other petrotechnical professionals who collectively drive innovation, advance performance and inspire the future of energy development. STEP is a highly valued program for individual contributors to focus and advance on a technical, non-managerial career path, providing a competitive advantage for the Company through the optimum application of technology. The Chief Petrotechnical Officer leads all aspects of STEP and reports directly to the Company’s Chief Operating Officer.
Company employees have access to extensive development and training opportunities and programs to expand their personal and professional skills and knowledge. The Company’s approach to education includes leadership/management training to develop leadership skills at all levels and expanded on-demand professional and development classes and mentoring to enhance critical business skills, broaden employee networks, and engage its employees.
EMPLOYEE COMPENSATION AND BENEFITS
The Company’s compensation and benefits program is designed to attract and retain the talent necessary to achieve its business strategy. The compensation and benefits program recognizes and rewards strong Company and individual performance with competitive base salaries, as well as an annual bonus program, recognition awards, long-term performance incentives and advancement opportunities for eligible individuals. The Company’s compensation and benefits program is routinely reviewed and benchmarked to ensure competitiveness and to provide the benefits that matter most to current and future employees.
The Company strives to give employees the tools and resources they need to succeed both professionally and personally and to foster a safe and collaborative work environment. To that end, the Company offers, and regularly evaluates, its comprehensive health, welfare and retirement and savings benefits plans, professional memberships and work-life balance benefits. It also provides programs to enhance and support employees’ overall well-being, including their physical, mental, social and financial health. Addressing well-being is imperative to ensure that the Company’s employees stay resilient, healthy and productive. The Company offers an enhanced mental health benefit, providing cost-free and convenient care for employees and their eligible dependents. Professional support is available virtually or in person for a range of concerns, including anxiety, depression, stress management, parenting challenges, relationship conflicts and sleep issues.
HEALTH AND SAFETY
The health and safety of the Company’s workforce and communities is a top priority as reflected in the Company’s HSE and Sustainability Principles. The Company’s Operating Management System sets expectations, provides guidance, training and resources, and empowers employees and contractors to stop any job or activity if they observe conditions that may give rise to a safety or environmental incident. The Company is also focused on reducing incident severity, enhancing contractor safety programs and harmonizing safety systems, programs and tools. These efforts helped the Company sustain its robust safety record in 2025 and promote continued improvements and innovations in safety, efficiency, reliability and environmental stewardship.
WORKFORCE COMPOSITION
The table below shows the regional distribution of the Company’s employees working in continuing operations as of December 31, 2025:
| North America | Middle East | Latin America | Other (a) | Total (b) | |||||||||||||||||||||||
| Union | — | 409 | — | — | 409 | ||||||||||||||||||||||
| Non-Union | 6,793 | 3,032 | 67 | 111 | 10,003 | ||||||||||||||||||||||
| Total | 6,793 | 3,441 | 67 | 111 | 10,412 | ||||||||||||||||||||||
(a)Other headcount included North Africa, Europe and Asia.
(b)Excludes employees related to OxyChem, a discontinued operation.
4 | OXY 2025 FORM 10-K |
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
The following discussion should be read together with the Consolidated Condensed Financial Statements and the notes to the Consolidated Condensed Financial Statements, which are included in this report in Part I, Item 1; the information set forth in Risk Factors under Part II, Item 1A; the Consolidated Financial Statements and the notes to the Consolidated Financial Statements, which are included in Part II, Item 8 of the 2025 Form 10-K; and the information set forth in Risk Factors under Part I, Item 1A of the 2025 Form 10-K.
Portions of this report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as "estimate," "project," "predict," "will," "would," "should," "could," "may," "might," "anticipate," "plan," "intend," "believe," "expect," "aim," "goal," "target," "objective," "commit," "advance," "guidance," "priority," "focus," "assumption," "likely" or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report unless an earlier date is specified. Unless legally required, the Company does not undertake any obligation to update, modify or withdraw any forward-looking statement as a result of new information, future events or otherwise.
Actual outcomes or results may differ from anticipated results, sometimes materially. Forward-looking and other statements regarding the Company's sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or require disclosure in the Company's filings with the SEC. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and definitions, assumptions, data sources and estimates or measurements that are subject to change in the future, including through rulemaking or guidance. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; the Company's indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; the Company's ability to successfully monetize select assets and repay or refinance debt and the impact of changes in the Company's credit ratings or future increases in interest rates; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, the Company's products and services; actions by OPEC and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of the Company's proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; government actions (including the effects of announced or future tariff increases and other geopolitical, trade, tariff, fiscal and regulatory uncertainties), war (including the Russia-Ukraine war and conflicts in the Middle East) and political conditions and events (such as in Latin America); inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including the Company's ability to timely obtain or maintain permits or other government approvals, including those necessary for drilling and/or development projects; the Company's ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or divestitures; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections or projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses, including retained liabilities and indemnification obligations associated with the chemical business; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; the Company's ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve the Company's competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver the Company's oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets, including capital market disruptions and instability of financial institutions; HSE risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, and deep-water and onshore drilling and permitting regulations; the Company's ability to recognize intended benefits from its business strategies and initiatives, such as the Company's low-carbon ventures businesses and announced GHG emissions reduction targets or net-zero goals; changes in government grant or loan programs; potential liability resulting from pending or future litigation, government investigations and other proceedings; disruption or interruption of production or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the scope and duration of global or regional health pandemics or epidemics and actions taken by government authorities and other third parties in connection therewith; the creditworthiness and performance of the Company's counterparties, including financial institutions, operating partners and other parties; failure of risk management; the Company's ability to retain and hire key personnel; supply, transportation and labor constraints; reorganization or restructuring of the Company's operations; changes in state, federal or international tax rates, deductions, incentives or credits; and actions by third parties that are beyond the Company's control.
Additional information concerning these and other factors that may cause the Company's results of operations and financial position to differ from expectations can be found in the Company's other filings with the SEC, including the Company's 2025 Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
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The Company's financial results are significantly influenced by crude oil prices and, to a lesser extent, NGL and natural gas prices and commodity market differentials. The average WTI price per barrel was $92.79 for the three months ended June 30, 2026, compared with $71.93 for the three months ended March 31, 2026. The average WTI price per barrel was $82.36 for the six months ended June 30, 2026, compared with $67.58 for the six months ended June 30, 2025.
Changes in commodity prices may affect the Company's capital allocation decisions, including the level and timing of investments, which could affect future production volumes. Oil prices are expected to remain volatile due to a variety of factors, including geopolitical developments, macroeconomic conditions and their impact on global energy demand, actions by OPEC and non-OPEC producing countries, and changes in U.S. trade policy.
Commodity prices during the second quarter benefited in part from risk premiums associated with the conflict involving Iran and resulting disruptions to regional energy markets and trade flows. Although shipping activity through the Strait of Hormuz improved during portions of the quarter following diplomatic efforts, recent developments have underscored the continued fragility of those conditions. Ongoing geopolitical uncertainty, potential disruptions to maritime transportation and energy infrastructure, and evolving governmental responses could continue to influence commodity prices and contribute to market volatility. The duration, scope and ultimate outcome of the conflict remain uncertain and could continue to affect energy markets, global economic conditions and commodity prices.
Recent U.S. trade policy actions, including the implementation of tariff replacement measures, could also affect the Company's operations and financial performance. Although the Company has not experienced a material impact to date, tariffs or tariff replacement measures imposed on suppliers could increase costs over time. In addition, broader economic impacts and uncertainty associated with evolving trade policies could affect demand for the Company's products and the prices realized for its production.
STRATEGIC PRIORITIES
The Company is focused on delivering a unique shareholder value proposition with its portfolio of oil and gas and midstream and marketing assets, as well as its ongoing development of carbon management and sequestration solutions and GHG emissions reduction efforts. The Company conducts its operations with an emphasis on technical expertise, HSE, sustainability and social responsibility, and is advancing integrated technologies in CO2, power and midstream to enable differentiated resource recovery and value.
In order to maximize shareholder returns, the Company intends to:
■Maintain safe and responsible operations;
■Execute from a strong balance sheet;
■Deliver a sustainable and growing dividend; and
■Sustain base production.
In August 2026, the Board increased the quarterly dividend by 8% to $0.28 per share, which will be payable on October 15, 2026 to shareholders of record as of September 10, 2026.
OXYCHEM TRANSACTION
The Company completed the sale of OxyChem on January 2, 2026 in an all-cash transaction for an adjusted sales price of $9.5 billion, subject to additional post-closing adjustments. The transaction resulted in a gain of approximately $3.1 billion, net of taxes. OxyChem is reported as discontinued operations, with its assets and liabilities classified as held for sale as of December 31, 2025.
See Note 1 - General in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information regarding the OxyChem Transaction.
DEBT
As of June 30, 2026, the Company's debt was rated Baa3 by Moody's Investors Service, BBB by Fitch Ratings and BB+ by Standard and Poor's. Any downgrade in the Company's credit ratings could affect its ability to access capital markets and increase its cost of capital. In addition, Occidental or its subsidiaries may be requested, may elect to provide or in some cases may be required to provide collateral in the form of cash, letters of credit, surety bonds or other acceptable support as financial assurance of their performance and payment obligations under certain contractual arrangements, such as pipeline transportation contracts, oil and gas purchase contracts and certain derivative instruments; certain permits, including with respect to carbon capture, utilization and sequestration activities; and environmental remediation matters.
During the six months ended June 30, 2026, the Company used after-tax proceeds from the OxyChem Transaction and cash from operations to repay approximately $8.6 billion of debt. For information on the Company's debt activity, see Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.
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As of June 30, 2026, substantially all of the Company's outstanding debt was fixed rate.
The following table sets forth earnings of each operating segment and corporate items:
| Three months ended | ||||||||||||||
| millions | June 30, 2026 | % Change | March 31, 2026 | |||||||||||
| Net income | ||||||||||||||
Oil and gas (a) | $ | 2,849 | 180 | % | $ | 1,017 | ||||||||
Midstream and marketing (a) | 1,338 | 1,638 | % | (87) | ||||||||||
| Total | 4,187 | 350 | % | 930 | ||||||||||
Unallocated Corporate Items (a) | ||||||||||||||
| Interest expense, net | (108) | (75) | % | (432) | ||||||||||
| Income tax expense | (915) | 494 | % | (154) | ||||||||||
| Corporate and other items, net | (164) | 52 | % | (108) | ||||||||||
| Income from continuing operations | $ | 3,000 | 1,171 | % | $ | 236 | ||||||||
| Discontinued operations, net of taxes | (4) | (100) | % | 3,123 | ||||||||||
| Net income | $ | 2,996 | (11) | % | $ | 3,359 | ||||||||
| Less: Net income attributable to noncontrolling interest | (19) | 36 | % | (14) | ||||||||||
| Less: Preferred stock dividends | (170) | — | % | (170) | ||||||||||
| Net income attributable to common stockholders | $ | 2,807 | (12) | % | $ | 3,175 | ||||||||
| Net income per share attributable to common stockholders - diluted | $ | 2.75 | (12) | % | $ | 3.13 | ||||||||
(a) Refer to the Items Affecting Comparability table which sets forth items affecting the Company's earnings that vary widely and unpredictably in nature, timing and amount.
| Six months ended | |||||||||||
| millions | June 30, 2026 | % Change | June 30, 2025 | ||||||||
| Net income | |||||||||||
Oil and gas (a) | $ | 3,866 | 47 | % | $ | 2,631 | |||||
Midstream and marketing (a) | 1,251 | 3,891 | % | (33) | |||||||
| Total | 5,117 | 97 | % | 2,598 | |||||||
Unallocated Corporate Items (a) | |||||||||||
| Interest expense, net | (540) | (7) | % | (581) | |||||||
| Income tax expense | (1,069) | 88 | % | (569) | |||||||
| Corporate and other items, net | (272) | (3) | % | (280) | |||||||
| Income from continuing operations | $ | 3,236 | 177 | % | $ | 1,168 | |||||
| Discontinued operations, net of taxes | 3,119 | 1,173 | % | 245 | |||||||
| Net income | $ | 6,355 | 350 | % | $ | 1,413 | |||||
| Less: Net income attributable to noncontrolling interest | (33) | 74 | % | (19) | |||||||
| Less: Preferred stock dividends | (340) | — | % | (340) | |||||||
| Net income attributable to common stockholders | $ | 5,982 | 468 | % | $ | 1,054 | |||||
| Net income per share attributable to common stockholders - diluted | $ | 5.89 | 472 | % | $ | 1.03 | |||||
(a) Refer to the Items Affecting Comparability table which sets forth items affecting the Company's earnings that vary widely and unpredictably in nature, timing and amount.
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ITEMS AFFECTING COMPARABILITY
The following table sets forth items affecting the comparability of the Company's earnings that vary widely and unpredictably in nature, timing and amount:
| Three months ended | Six months ended | |||||||||||||||||||
| millions | June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | ||||||||||||||||
| Oil and gas | ||||||||||||||||||||
| Crude oil derivative gains (losses) | $ | 105 | $ | (339) | $ | (234) | $ | — | ||||||||||||
| Losses on sales of assets and other, net | (15) | (30) | (45) | — | ||||||||||||||||
| Legal reserves and other | — | — | — | (65) | ||||||||||||||||
| Total oil and gas | 90 | (369) | (279) | (65) | ||||||||||||||||
| Midstream and marketing | ||||||||||||||||||||
| Derivative gains (losses), net | 178 | (409) | (231) | 11 | ||||||||||||||||
Gains (losses) on sales of assets and other, net (a) | 199 | (164) | 35 | — | ||||||||||||||||
Asset impairments and other charges (a) | — | (105) | (105) | (162) | ||||||||||||||||
| Total midstream and marketing | 377 | (678) | (301) | (151) | ||||||||||||||||
| Corporate | ||||||||||||||||||||
| Early debt extinguishment | 47 | (237) | (190) | — | ||||||||||||||||
| Early retirement costs | (39) | (15) | (54) | — | ||||||||||||||||
| Acquisition-related costs and other | — | — | — | (12) | ||||||||||||||||
| Total corporate | 8 | (252) | (244) | (12) | ||||||||||||||||
| Income tax impact on items affecting comparability | (107) | 281 | 174 | 49 | ||||||||||||||||
| Gains (losses) from continuing operations | 368 | (1,018) | (650) | (179) | ||||||||||||||||
| Discontinued operations, net of taxes | (4) | 3,123 | 3,119 | 245 | ||||||||||||||||
| Total | $ | 364 | $ | 2,105 | $ | 2,469 | $ | 66 | ||||||||||||
(a) Includes amounts from income from equity investments and other in the Consolidated Condensed Statements of Operations.
Q2 2026 compared to Q1 2026
Excluding the impact of items affecting comparability, net income increased for the three months ended June 30, 2026, compared to the three months ended March 31, 2026, primarily due to higher realized crude oil prices in the oil and gas segment and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
First six months of 2026 compared to the first six months of 2025
Excluding the impact of items affecting comparability, net income increased for the six months ended June 30, 2026, compared to the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher marketing margins from natural gas transportation capacity optimization activities in the Permian, the timing of crude sales, lower long-haul crude transportation costs, higher sulfur prices at Al Hosn and lower interest expense due to reduced long-term debt. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
SELECTED STATEMENTS OF OPERATIONS ITEMS
Q2 2026 compared to Q1 2026
Net sales increased to $8.1 billion for the three months ended June 30, 2026, compared to $5.2 billion for the three months ended March 31, 2026, primarily due to higher crude oil prices and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices in the oil and gas segment.
Gains (losses) on sales of assets and other, net were a gain of $180 million for the three months ended June 30, 2026, compared with a loss of $202 million for the three months ended March 31, 2026. The gain on sale of assets and other, net
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for the three months ended June 30, 2026 included a gain of $220 million from a pro-rata ownership reduction in WES following an acquisition made by WES. The loss on sale of assets and other, net for the three months ended March 31, 2026 reflected a loss of approximately $200 million on the divestiture of non-core oil and gas interests and certain gas processing plants in the Permian Basin.
Interest and debt expense, net decreased to $108 million for the three months ended June 30, 2026, compared to $432 million for the three months ended March 31, 2026, primarily due to premiums paid on early debt extinguishment in the three months ended March 31, 2026 and lower interest expense in the three months ended June 30, 2026 as a result of lower outstanding debt.
Income tax expense increased to $915 million for the three months ended June 30, 2026, compared to $154 million for the three months ended March 31, 2026, primarily due to higher pre-tax income earned in the three months ended June 30, 2026.
First six months of 2026 compared to the first six months of 2025
Net sales increased to $13.3 billion for the six months ended June 30, 2026, compared to $11.0 billion for the same period in 2025, primarily due to higher realized crude oil prices in the oil and gas segment, higher sulfur prices at Al Hosn, and higher marketing margins related to the timing of crude sales and natural gas transportation capacity optimization activities in the Permian. These increases were partially offset by lower domestic realized natural gas prices and derivative losses on the crude oil collars in the oil and gas segment.
Income tax expense increased to $1.1 billion for the six months ended June 30, 2026, compared to $569 million for the same period in 2025, primarily due to higher pre-tax income in the six months ended June 30, 2026.
OVERVIEW OF SEGMENT RESULTS
The Company's principal businesses consist of two reporting segments: oil and gas and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, NGL and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil (including condensate), NGL, natural gas, CO2 and power; optimizes its transportation and storage capacity; and invests in entities that conduct similar activities, including WES. The midstream and marketing segment also includes the Company's low-carbon ventures businesses.
OIL AND GAS SEGMENT
The following table sets forth average daily sales volumes for oil and NGL in Mbbl and for natural gas in MMcf:
| Three months ended | Six months ended | |||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | |||||||||||
| Sales Volumes per Day | ||||||||||||||
| Oil (Mbbl) | ||||||||||||||
| United States | 614 | 612 | 613 | 603 | ||||||||||
| International | 100 | 107 | 104 | 107 | ||||||||||
| NGL (Mbbl) | ||||||||||||||
| United States | 303 | 292 | 298 | 276 | ||||||||||
| International | 29 | 35 | 32 | 38 | ||||||||||
| Natural Gas (MMcf) | ||||||||||||||
| United States | 1,867 | 1,813 | 1,836 | 1,728 | ||||||||||
| International | 453 | 478 | 464 | 493 | ||||||||||
Total Sales Volumes (Mboe) (a) | 1,433 | 1,428 | 1,430 | 1,394 | ||||||||||
(a) Natural gas volumes have been converted to Boe based on energy content of six Mcf of gas to one barrel of oil. Conversion to Boe does not necessarily result in price equivalency.
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The following table presents the Company's average realized prices and average index prices for the periods presented:
| Three months ended | Six months ended | ||||||||||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2026 | June 30, 2025 | ||||||||||||||
| Average Realized Prices | |||||||||||||||||
| Oil ($/Bbl) | |||||||||||||||||
| United States | $ | 96.93 | $ | 70.31 | $ | 83.72 | $ | 66.78 | |||||||||
| International | $ | 95.83 | $ | 67.59 | $ | 81.32 | $ | 70.67 | |||||||||
| Total Worldwide | $ | 96.78 | $ | 69.91 | $ | 83.37 | $ | 67.37 | |||||||||
| NGL ($/Bbl) | |||||||||||||||||
| United States | $ | 23.79 | $ | 18.45 | $ | 21.19 | $ | 22.81 | |||||||||
| International | $ | 33.49 | $ | 23.52 | $ | 28.08 | $ | 26.80 | |||||||||
| Total Worldwide | $ | 24.64 | $ | 18.99 | $ | 21.86 | $ | 23.29 | |||||||||
| Natural Gas ($/Mcf) | |||||||||||||||||
| United States | $ | (1.48) | $ | 1.01 | $ | (0.26) | $ | 1.88 | |||||||||
| International | $ | 1.95 | $ | 1.93 | $ | 1.94 | $ | 1.90 | |||||||||
| Total Worldwide | $ | (0.80) | $ | 1.20 | $ | 0.19 | $ | 1.88 | |||||||||
| Average Index Prices | |||||||||||||||||
| WTI oil ($/Bbl) | $ | 92.79 | $ | 71.93 | $ | 82.36 | $ | 67.58 | |||||||||
| Brent oil ($/Bbl) | $ | 97.06 | $ | 77.93 | $ | 87.49 | $ | 70.74 | |||||||||
| NYMEX gas ($/Mcf) | $ | 2.89 | $ | 3.93 | $ | 3.41 | $ | 3.65 | |||||||||
| Average Realized Prices as Percentage of Average Index Prices | |||||||||||||||||
| Worldwide oil as a percentage of average WTI | 104 | % | 97 | % | 101 | % | 100 | % | |||||||||
| Worldwide oil as a percentage of average Brent | 100 | % | 90 | % | 95 | % | 95 | % | |||||||||
| Worldwide NGL as a percentage of average WTI | 27 | % | 26 | % | 27 | % | 34 | % | |||||||||
| Domestic natural gas as a percentage of average NYMEX | (51) | % | 26 | % | (8) | % | 52 | % | |||||||||
Q2 2026 compared with Q1 2026
Oil and gas segment earnings were $2.8 billion for the three months ended June 30, 2026, compared with $1.0 billion for the three months ended March 31, 2026. The increase was primarily driven by higher realized crude oil and NGL prices and derivative gains, partially offset by lower domestic natural gas realizations.
Average daily sales volumes were generally consistent for the three months ended June 30, 2026, compared with the three months ended March 31, 2026, as modest increases in domestic NGL and natural gas volumes were largely offset by lower international oil, NGL, and natural gas volumes.
First six months of 2026 compared to the first six months of 2025
Oil and gas segment earnings were $3.9 billion for the six months ended June 30, 2026, compared with $2.6 billion for the same period in 2025. The increase was primarily driven by higher realized crude oil prices and higher sales volumes, partially offset by lower domestic natural gas realizations and crude oil derivative losses.
Average daily sales volumes increased for the six months ended June 30, 2026, compared with the same period in 2025, primarily due to development activity and new wells coming online in the Permian and the effect in 2025 of a third-party pipeline disruption affecting the Company's Gulf of America operations. These increases were partially offset by lower international sales volumes associated with disruptions resulting from conflict in the Middle East.
33
The following table analyzes the impacts of changes in average realized prices and sales volumes on the Company's domestic and international oil, NGL and natural gas revenues:
| Increase (Decrease) Related to | ||||||||||||||
| millions | Three months ended March 31, 2026 (b) | Price Realizations | Net Sales Volumes | Three months ended June 30, 2026 (b) | ||||||||||
| United States Revenue | ||||||||||||||
| Oil | $ | 3,873 | $ | 1,488 | $ | 56 | $ | 5,417 | ||||||
| NGL | 444 | 155 | (7) | $ | 592 | |||||||||
| Natural gas | 164 | (414) | — | $ | (250) | |||||||||
| Total | $ | 4,481 | $ | 1,229 | $ | 49 | $ | 5,759 | ||||||
| International Revenue | ||||||||||||||
Oil (a) | $ | 650 | $ | 188 | $ | 34 | $ | 872 | ||||||
| NGL | 74 | 26 | (11) | $ | 89 | |||||||||
| Natural gas | 83 | 2 | (4) | $ | 81 | |||||||||
| Total | $ | 807 | $ | 216 | ||||||||||
Recent insider activity
| Date | Insider | Role | Action | Shares | Price | Value |
|---|---|---|---|---|---|---|
| 2026-06-23 | Jackson Richard A. | President and CEO | Buy | +4,770 | $52.38 | $249,853 |
Source: SEC Form 4 filings.
Next expected filings
- ~2026-11-09 10-Q expected by 2026-11-12 (in 61 days)
- ~2027-02-18 10-K expected by 2027-02-24 (in 162 days)
- ~2027-05-04 10-Q expected by 2027-05-07 (in 237 days)
- ~2027-08-04 10-Q expected by 2027-08-07 (in 329 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-08-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-08-05 10-Q Quarterly Report
- 2026-07-10 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-05 10-Q Quarterly Report
- 2026-05-05 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-04 8-K Officer/Director Change; Shareholder Vote Results; Regulation FD Disclosure; Financial Statements and Exhibits
- 2026-04-10 8-K Earnings Release; Financial Statements and Exhibits
- 2026-03-09 8-K Material Agreement Entered; Material Modification to Rights; Other Events; Financial Statements and Exhibits
- 2026-02-18 10-K Annual Report
- 2026-02-18 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-20 8-K Earnings Release; Financial Statements and Exhibits
- 2026-01-02 8-K Completion of Acquisition/Disposition; Regulation FD Disclosure; Financial Statements and Exhibits
- 2025-11-10 10-Q Quarterly Report
- 2025-11-10 8-K Earnings Release; Financial Statements and Exhibits
- 2025-10-10 8-K Earnings Release; Financial Statements and Exhibits