Fiscal year ends DecLast earnings: May 6, 2026Est. next earnings: Aug 6, 2026
Latest Score
6.0/ 10
+1.0vs prior
4-Period Change
-2.0
vs Q1 '25
Challenge RatePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
4%
All quarters
6.0out of 10Mixed
Sentiment · FY2026 Q1
Q4 '24Q1 '26
Top Analysts & Firms
Most Active Analysts
Analyst
Firm
Questions
ChallengePercentage of questions scored as challenging — where the analyst pushed back, pressed for specifics, or questioned management's assumptions.
Base2Base 2GAAP revenue YoY -23.1% → base 2. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript+2Transcript +2Tier 2 transformative divestiture: OxyChem sale removed approximately $1.5B/quarter of chemical revenue from GAAP, making revenue structurally misleading. CFO stated oil prices roughly in line with 2025; ex-divestiture O&G revenue approximately flat. Band gap: clean base ~5 (flat) vs GAAP base 2 (decline >15%) = 3 bands, capped at +2.+EPS0EPS 0GAAP EPS YoY +311.69% driven by OxyChem sale gain ($3.17 reported vs $1.06 adjusted). GAAP EPS spread: +334.81 percentage points (mechanical +1). GAAP operating income YoY -74.61%, operating income spread: -51.49 percentage points (mechanical -1). EPS and OI disagree on direction, but both are contaminated by the same OxyChem divestiture: Q1 2025 included OxyChem operations while Q1 2026 does not. Divestiture impact already captured in +2 transcript adjustment. Adjusted EPS $1.06 vs prior-year GAAP $0.77 suggests improvement, but Q1 2025 adjusted EPS unavailable for clean comparison. Setting 0 to avoid double-counting divestiture.+Guidance+2Guidance +2Midstream segment earnings guidance midpoint raised from approximately $300M to $1.1B (+267%, well above 3% threshold). Production guidance midpoint lowered to 1.44M BOE/day due to Middle East disruptions and EOR optimization, but production/volume targets are not scored for Energy companies per sector rules. CapEx range maintained at $5.5-5.9B (spend commitment, not scored). Midstream raise is a financial segment guide (growth commitment) -> +2.=Final6
How this score was built
Base2Base 2GAAP revenue YoY -23.1% → base 2. The base score is anchored to the GAAP revenue YoY band before transcript, EPS, and guidance adjustments.+Transcript+2Transcript +2Tier 2 transformative divestiture: OxyChem sale removed approximately $1.5B/quarter of chemical revenue from GAAP, making revenue structurally misleading. CFO stated oil prices roughly in line with 2025; ex-divestiture O&G revenue approximately flat. Band gap: clean base ~5 (flat) vs GAAP base 2 (decline >15%) = 3 bands, capped at +2.+
Macro Signals
→Oil Energy→CAPEX→Supply Chain
Occidental reported Q1 adjusted EPS of $1.06, up from $0.87 a year ago, with production of 1.426 million BOE per day beating guidance by 21,000 BOE per day on domestic strength. Free cash flow from continuing operations was approximately 52% higher year-over-year. Management raised full-year midstream guidance by approximately $800 million to a $1.1 billion midpoint. A CEO succession was announced with strategic continuity emphasized. Aggressive deleveraging continued ahead of target. Middle East disruptions constrained international operations, and the Stratos DAC facility faced a non-process issue.
Key Themes7
neutral📊 company
CEO Succession With Strategic Continuity
Vicki Hollub retiring June 1 after 45-year career; Richard Jackson succeeding as President and CEO with Board approval. Jackson emphasized continued focus on execution, cost efficiency, and organic development from the existing resource base.
Capital Allocation
positive📊 company
Production Beats Guidance On Domestic Strength
Production averaged 1.426 million BOE per day, exceeding high end of guidance by 21 thousand BOE per day. Domestic outperformance of 33 thousand BOE per day driven by strong Permian and Rockies new well performance and 98% Gulf Of America topside uptime.
EPS0EPS 0GAAP EPS YoY +311.69% driven by OxyChem sale gain ($3.17 reported vs $1.06 adjusted). GAAP EPS spread: +334.81 percentage points (mechanical +1). GAAP operating income YoY -74.61%, operating income spread: -51.49 percentage points (mechanical -1). EPS and OI disagree on direction, but both are contaminated by the same OxyChem divestiture: Q1 2025 included OxyChem operations while Q1 2026 does not. Divestiture impact already captured in +2 transcript adjustment. Adjusted EPS $1.06 vs prior-year GAAP $0.77 suggests improvement, but Q1 2025 adjusted EPS unavailable for clean comparison. Setting 0 to avoid double-counting divestiture.
+
Guidance+2Guidance +2Midstream segment earnings guidance midpoint raised from approximately $300M to $1.1B (+267%, well above 3% threshold). Production guidance midpoint lowered to 1.44M BOE/day due to Middle East disruptions and EOR optimization, but production/volume targets are not scored for Energy companies per sector rules. CapEx range maintained at $5.5-5.9B (spend commitment, not scored). Midstream raise is a financial segment guide (growth commitment) -> +2.
=
Final6
Aggressive Deleveraging Ahead Of Target
Principal debt reduced to $13.3 billion, below the $14.3 billion target set in Q4 2025. Since December, $7.5 billion paid down. Go-forward interest payments of $845 million per year, approximately $550 million lower than 2025. Near-term priority is reducing to $10 billion.
CreditCapital Allocation
positive📊 company
OxyChem Sale Simplifies Portfolio
OxyChem divestiture generated gain lifting reported EPS to $3.13 versus adjusted EPS of $1.06. Company now focused on oil and gas with 83% of production and 88% of resources in the United States. Proceeds accelerated debt reduction.
M&ACapital Allocation
negative📊 company
Middle East Disruptions Constrain International Ops
Modest operational constraints at Alosan beginning mid-March expected to normalize before end of Q2. Higher PSC-effect oil prices reduced net international production. Full-year production guidance midpoint adjusted to 1.44 million BOE per day partly due to Middle East impacts.
MacroeconomicSupply Chain
positive📊 company
Cost Efficiency Savings Program Accelerating
On track for additional $500 million in oil and gas cost savings in 2026 across new well costs, facility costs, operating costs, and transportation. Domestic LOE at $7.85 per BOE, 5% improvement versus Q1 guidance. Approximately 7% new well cost improvement on track.
Cost PressureMargin
mixed📊 company
Stratos DAC Facility Faces Non-Process Issue
Phase 2 construction of second 250 thousand tons per year capacity complete. Phase 1 commissioning showed technology performing as expected. However, non-process component issue identified requiring repair; timeline under assessment. No expected impact to capital range for the year.
Innovation & R&DCapex Investment
How are you thinking about capital allocation post reaching this objective?
Coterra posted Q4 revenue of $1,959 million, up 40% YoY on a GAAP basis, with income from operations surging as Delaware Basin acquisition volumes and natural gas price recovery drove strong top-line growth despite oil prices declining to $58