Wedoany.com Report-Nov. 11, Occidental Petroleum (OXY.N) reported third-quarter earnings on Monday that exceeded Wall Street expectations, supported by higher oil and gas output that helped offset weaker crude prices. The U.S. shale producer benefited from its growing production base and past acquisitions despite a softer global oil market.

A man walks past a logo of Occidental Petroleum during the annual energy industry event Abu Dhabi International Petroleum Exhibition and Conference (ADIPEC) in Abu Dhabi, United Arab Emirates, November 3, 2025.

U.S. oil and gas production reached a record high in August, even as benchmark Brent crude prices dropped more than 13% during the quarter due to increased OPEC+ supply and slowing global demand. Occidental’s average global production rose to 1.46 million barrels of oil equivalent per day (MMboepd) in the July–September period, compared with 1.41 MMboepd a year earlier. The company noted that this increase was aided by the $12 billion acquisition of CrownRock in August last year.

However, realized oil prices declined to $64.78 per barrel from $75.33 in the same period of 2023. Larger competitors Exxon Mobil (XOM.N) and Chevron (CVX.N) also surpassed analysts’ third-quarter profit estimates, supported by strong output levels. Occidental projected its current-quarter production to range between 1.44 MMboepd and 1.48 MMboepd. Analysts, according to LSEG data, expected around 1.44 MMboepd for the fourth quarter.

Despite the positive earnings, Occidental’s shares fell slightly in extended trading. Melius Research analyst James West commented: “The market was looking for a bit more upside from the fourth-quarter forecast after recent energy-stock outperformance.”

In a major portfolio move, Occidental completed the sale of its chemical division, OxyChem, to Berkshire Hathaway (BRKa.N) for $9.7 billion last month. The divestment marked its largest asset sale to date and forms part of the company’s broader plan to reduce debt following several high-value acquisitions in recent years.

Occidental repaid $1.3 billion of debt during the third quarter and reported long-term net debt of $20.85 billion as of September 30. The company stated that ongoing debt reduction remains a strategic priority as it aims to strengthen its balance sheet and enhance shareholder value.

Headquartered in Houston, Occidental posted an adjusted profit of 64 cents per share for the three months ended September 30, surpassing analyst expectations of 52 cents per share. The results underscored the company’s continued operational efficiency and production growth amid a volatile energy market.

The combination of rising output, disciplined cost management, and debt reduction initiatives has positioned Occidental for stable performance in the coming quarters, even as global oil price fluctuations and demand uncertainties continue to challenge the energy sector.