Occidental Petroleum delivered a strong operational quarter, marked by improved production, higher efficiency, and results that exceeded guidance across multiple basins. Operational execution—not higher commodity prices—was the primary driver, as performance gains came from better well productivity, stronger base production, and improved uptime across both onshore and offshore assets.
Total Wells Drilled
Based on the classified dataset, Occidental drilled a total of 721 wells, with activity concentrated in four core operating areas.
Wells Drilled by Play
| Play | Wells Drilled |
|---|---|
| Permian Basin | 593 |
| DJ Basin | 99 |
| Powder River Basin | 19 |
| Gulf of Mexico (Offshore) | 10 |
| Total | 721 |
Permian Basin: The Engine of Growth and Outperformance
Wells Drilled: 593
The Permian Basin was the clear centerpiece of Occidental’s operational outperformance. Production reached record quarterly levels, driven by strong new well results and continued improvement in base production. Management highlighted that Permian output exceeded the high end of guidance, reinforcing the basin’s role as the company’s primary growth engine.
Operational gains were fueled by improved subsurface characterization, optimized well designs, and continued cost reductions. Occidental emphasized that both the Delaware and Midland basins delivered strong results, with better-than-expected productivity and lower capital intensity. These improvements allowed the company to grow production while maintaining capital discipline—an important factor in exceeding guidance despite a volatile commodity price environment.
Why it mattered:
The Permian provided the flexibility to grow production, protect margins, and generate free cash flow, all while lowering unit costs. Improved production efficiency—not increased activity—was the defining theme.
DJ Basin: Consistent Base Performance Drives Stability
Wells Drilled: 99
In the DJ Basin, Occidental exceeded expectations through strong base production and operational reliability, rather than aggressive changes to drilling or completion design. Management noted that improved artificial lift performance, analytics-driven optimization, and higher facility uptime were the primary contributors to the basin’s upside.
While activity levels remained disciplined, the DJ Basin continued to deliver steady volumes and dependable cash flow. This consistency allowed the basin to quietly outperform guidance and support overall portfolio stability.
Why it mattered:
The DJ Basin demonstrated that operational excellence and base optimization can deliver meaningful production gains without incremental capital.
Powder River Basin: Emerging Performance with Growing Optionality
Wells Drilled: 19
The Powder River Basin played a smaller but increasingly important role in Occidental’s portfolio. Management highlighted significant improvements in drilling performance, with faster cycle times and better execution contributing to stronger results than prior periods.
Although activity levels remain modest, the Powder River Basin exceeded expectations and is now positioned as a flexible option within the Rockies portfolio. The company emphasized its ability to shift capital between the DJ and Powder River basins as economics dictate, underscoring the basin’s growing strategic value.
Why it mattered:
Improved execution turned the Powder River Basin into a credible contributor, reinforcing Occidental’s ability to exceed guidance through operational gains rather than higher spend.
Gulf of Mexico: Reliability and Uptime Drive Outperformance
Wells Drilled: 10
Offshore, Occidental’s Gulf of Mexico assets exceeded the high end of guidance due to exceptional uptime and operational reliability. Management cited the highest uptime in the company’s operating history, supported by favorable weather and improved maintenance execution.
While well counts were lower than onshore plays, the Gulf’s contribution was meaningful due to its low-decline nature and strong base production. These assets complemented the higher-decline shale portfolio and helped stabilize overall production results.
Why it mattered:
Improved uptime and reliability allowed the Gulf of Mexico to outperform expectations, highlighting the value of disciplined operations in mature offshore assets.
Final Takeaway
Across the Permian Basin, DJ Basin, Powder River Basin, and Gulf of Mexico, Occidental exceeded guidance by doing more with what it already had. The common thread was improved production efficiency—strong base performance, better well results, lower costs, and higher uptime—rather than increased drilling intensity.
With 721 wells drilled and the majority of activity concentrated in the Permian, Occidental demonstrated how operational discipline and technical execution can translate directly into stronger production and financial performance, even in a challenging market environment.
