US shale producer Occidental Petroleum surpassed Wall Street expectations for third-quarter profit on Monday, as higher oil prices helped offset a decline in production.
Benchmark Brent crude prices averaged 31 per cent higher at $89.27 per barrel in the quarter from a year earlier as the conflict in the Middle East, now in its ninth month, disrupted energy supplies and shipping through the crucial Strait of Hormuz.
Occidental's average realised price jumped 32.6 per cent to $85.91 per barrel for the three months ended September 30.
Average global production fell about 2.6 per cent to 1.43 million barrels of oil equivalent per day (boepd) for the July-September quarter, hurt by temporary curtailment of production at certain facilities in the Gulf of Mexico and maintenance activities.
Production from Occidental's international operations, concentrated in Algeria, Oman, Qatar and the United Arab Emirates, fell 5.8 per cent to 224,000 boepd.
Occidental's international assets accounted for 16.2 per cent of its total output in 2025.
For the current quarter, the company forecast production between 1.43 million and 1.47 million boepd, with output from the Permian Basin expected to average in the range of 820,000 to 840,000 boepd.
Analysts at Piper Sandler said fourth-quarter production guidance was slightly below expectations and domestic operating cost forecasts were higher than anticipated.
Larger rivals Exxon Mobil and Chevron, as well as peers Devon Energy, APA Corp, Diamondback Energy, EOG Resources and ConocoPhillips, have all topped profit estimates on higher crude prices.
Separately, Occidental said it signed long-term agreements to source up to two million tonnes of carbon dioxide annually from two carbon capture projects in the Delaware Basin to support its oil recovery operations in the Permian Basin, with deliveries expected to begin in 2029.
The Houston-based shale producer posted an adjusted profit of $1.91 per share for the three months ended September 30, compared with expectations of $1.46, according to data compiled by LSEG.
(Reporting by Katha Kalia in Bengaluru; Editing by Sriraj Kalluvila and Leroy Leo)