Occidental Petroleum's stock soared 8.93% during intraday trading on Thursday, marking a significant upward movement for the energy producer.

The surge was primarily driven by the company's better-than-expected fourth-quarter financial results. Occidental reported adjusted earnings per share of 31 cents, substantially surpassing analyst estimates of approximately 17 to 18 cents. While revenue declined year-over-year to $5.11 billion, the earnings beat demonstrated operational strength, particularly in the midstream unit which helped offset weaker crude oil prices.

Further bolstering investor sentiment was the company's forward-looking guidance, which included a notable reduction in expected capital expenditure to around $5.7 billion for fiscal year 2026, compared to Wall Street consensus of $6.4 billion. Concurrently, rising oil prices due to escalating geopolitical tensions between the U.S. and Iran provided a favorable backdrop for the broader energy sector. Additionally, Occidental announced corporate actions including cash tender offers for up to $700 million of its senior notes and debentures, a move aimed at managing its debt profile, while Mizuho Securities raised its price target on the stock.