Shares of Occidental Petroleum rose as the energy company's second-quarter profits jumped, driven by increased oil production and rising prices. The stock climbed in response to a mix of better-than-expected results and a commitment to returning cash to shareholders.
Production and prices boost profits
Occidental produced an average of 1,433 thousand barrels of oil equivalent per day in the second quarter. That outperformed internal targets. At the same time, crude oil prices rose 38% to $96.78 per barrel. This combination led to pre-tax income from oil and gas reaching $2.8 billion. This is a sharp increase from $1 billion in the first quarter and $934 million in the same period of 2025.
The midstream and marketing segment also showed improvement. It turned in a pre-tax profit of $1.3 billion in Q2, compared to a $87 million loss in the first quarter. This helped push Occidental’s adjusted net income to $2.4 billion, or $2.40 per share.
Debt reduction fuels investor confidence
The energy company generated $3 billion in free cash flow, which allowed it to pay down $1.9 billion in debt. Occidental's total debt now stands at $11.8 billion, which is closer to the company's $10 billion target. With more financial flexibility, Occidental increased its dividend by 8% to $0.28 per share. At the current share price, that translates to a 2% annualized yield.
CEO Richard Jackson attributed the strong results to efficient operations and a development approach focused on value. He said the second quarter proved the company's competitive edge and ability to generate returns for shareholders.