Occidental Petroleum Corp. (OXY) Raising Target Following Strong Multi Year Cash Flow Improvement Plan

Equity Research 6 August 2026 | 9:44PM EDT

Occidental Petroleum Corp. (OXY) Raising Target Following Strong Multi-Year Cash Flow Improvement Plan

OXY 12m Price Target: $63.00 Price: $56.04 Upside: 12.4% NEUTRAL Neil Mehta The Positives. Alongside 2Q26 earnings, OXY introduced a target | Goldman Sachs & Co. LLC for $4.0 bn in cash flow improvement by 2030 largely driven by Jack Cavanagh corporate savings and lower sustaining capital. During the quarter, | Goldman Sachs & Co. LLC OXY disclosed record Midstream and Marketing adjusted pre-tax income of $961 mn, more than double the midpoint of company Jerry Speicher | Goldman Sachs & Co. LLC guidance. As a result, OXY was able to reduce debt by $1.9 bn during 2Q26, and the company remains committed to its target to lower principal debt <$10.0 bn. Key Data _____________________________________ Market cap: $56.7bn Enterprise value: $71.7bn The Challenges. Given the recent recovery in Waha pricing at the 3m ADTV: $563.3mn United States start of 3Q26, OXY expects a normalization in its natural gas Americas E&P transportation upside as differentials have tightened relative to M&A Rank: 2

2Q26, although the company expects this to be largely offset by GS Forecast __________________________________ 12/25 12/26E 12/27E 12/28E increased US natural gas realizations. OXY also noted an expectation Revenue ($ mn) New 21,352.0 25,283.5 22,897.5 23,044.6

for share repurchases to remain a lower priority after the company Revenue ($ mn) Old 21,352.0 22,905.6 23,105.4 23,263.1 EBITDA ($ mn) 12,474.0 16,129.1 13,629.7 13,723.9 gets principal debt <$10 bn until the preferred equity redemption in EBIT ($ mn) 5,110.0 8,787.0 6,173.8 6,151.0

August 2029. EPS ($) New EPS ($) Old P/E (X) What is Our View? We reiterate our Neutral rating on OXY and raise Dividend yield (%) 2.1 1.8 1.9 1.9 Net debt/EBITDA (X) 1.6 0.4 0.2 (0.2) our 12-month price target to $63 driven by the company’s incremental focus on capital efficiency across the company’s 6/26 9/26E 12/26E 3/27E EPS ($) operations through the new $4.0 bn target for cash flow improvement by 2030. We see OXY’s organic focus on optimizing GS Factor Profile ______________________________ Growth the productivity of its existing assets and improving the efficiency of its operations as a positive for the story more broadly. Given OXY’s Financial Returns

prioritization toward building cash on the balance sheet after the Multiple

company achieves its principal debt target of <$10 bn, we note Integrated potential constraints on shareholder returns and seek more clarity on management’s outlook for incremental dividend growth. Percentile 20th 40th 60th 80th 100th

OXY relative to Americas Coverage OXY relative to Americas E&P

Key Takeaways Source: Company data, Goldman Sachs Research estimates. See disclosures for details.

Long-Term Cash Flow Outlook. Alongside 2Q26 earnings, OXY

Goldman Sachs does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. For Reg AC certification and other important disclosures, see the Disclosure Appendix, or go to Analysts employed by non-US affiliates are not registered/qualified as research analysts with FINRA in the U.S.

Goldman Sachs Occidental Petroleum Corp. (OXY)

Occidental Petroleum Corp. (OXY) Balance Sheet ($ mn) _______________________________________ NEUTRAL Rating since May 20, 2026 12/25 12/26E 12/27E 12/28E Cash & cash equivalents 1,968.0 4,150.0 6,735.7 10,199.5 Accounts receivable 2,575.0 3,142.0 3,142.0 3,142.0 Inventory 1,823.0 2,185.0 2,185.0 2,185.0 Ratios & Valuation __________________________________________ Other current assets 2,461.0 1,655.0 1,655.0 1,655.0 12/25 12/26E 12/27E 12/28E Total current assets 8,827.0 11,132.0 13,717.7 17,181.5 P/E (X) Net PP&E 63,643.0 61,434.4 59,264.9 56,985.5 EV/EBITDA (X) 5.8 4.4 4.9 4.5 Net intangibles -- -- -- -- EV/sales (X) 3.4 2.8 2.9 2.7 Total investments 0.0 0.0 0.0 0.0 FCF yield (%) Other long-term assets 11,716.0 6,798.0…