Occidental Petroleum (OXY) lowered its full-year 2026 production forecast on Tuesday, citing the significant impact of the Iran war on its international operations.
The company now expects total production to range between 1.41 million and 1.46 million barrels of oil equivalent per day, a slight reduction from its previous guidance of 1.42-1.48 mmboe/d.
International output specifically was revised downward to 218,000 to 228,000 boe/d, as regional hostilities continue to obstruct key energy infrastructure.
The guidance cut follows a prolonged suspension at the Shah gas field in the UAE, where Occidental holds a 40% interest.
Operations at the facility, one of the world's largest sour gas fields, have remained offline since an Iranian drone strike on March 16.
Despite these geopolitical headwinds, Occidental reported that its total first-quarter production of 1,426 Mboed actually exceeded the high end of its quarterly guidance, bolstered by strong performance in the Permian Basin, the Rockies, and the Gulf of Mexico.
Financial results for the first quarter reflected a volatile energy market. Occidental's oil and gas pre-tax income rose to $1.0 billion, up from $0.7 billion in the fourth quarter of 2025.
This growth was driven by an 18% quarterly increase in average worldwide realized crude oil prices, the company said.
However, these gains were partially offset by lower domestic gas prices, which fell 10% to $1.01 per Mcf.
Looking ahead, the company's ability to hit its revised targets remains tied to the stability of its Middle Eastern assets.
While US shale production remains a core strength, continued closure of the Shah field and broader regional supply losses have forced the producer to adopt a more conservative outlook for the remainder of 2026.