Occidental Petroleum Corp. (OXY) had a good Wednesday evening. The energy company released fourth-quarter earnings that sailed past Wall Street's expectations, sending shares higher in extended trading.

The Numbers That Matter

Occidental reported quarterly earnings of 31 cents per share, crushing the analyst consensus of 18 cents by a solid 67.57%. That's the kind of beat that gets investors' attention.

But the real story here goes beyond a single earnings number. The company delivered across multiple fronts during the quarter:

• Strengthened the balance sheet with the completion of the OxyChem sale on Jan. 2, 2026, reducing debt by $5.8 billion since mid-Dec. 2025 and bringing the principal debt to date to $15 billion
• Total company production of 1,481 Mboed exceeded the high end of guidance
• Midstream and marketing pre-tax adjusted income exceeded the high end of guidance
• Worldwide year-end proved reserves of 4.6 billion BOE with an all-in reserves replacement ratio of 98% and organic reserves replacement ratio of 107%

"Our emphasis on operational excellence and cost efficiency drove meaningful production and operating expense outperformance during the fourth quarter," said CEO Vicki Hollub.

Translation: they produced more oil and gas than expected while keeping costs under control. In the energy business, that's the winning formula.

Stock Movement: Occidental Petroleum shares rose 2.71% to $48.50 in Wednesday's extended trading.