According to documents submitted to the U.S. Securities and Exchange Commission (SEC), Occidental Petroleum's operating cash flow decreased by $156 million in the second quarter of 2026 due to the settlement of crude oil collar options.

A collar option is a common risk management strategy in which a company simultaneously buys a put option and sells a call option to lock in the fluctuation range of crude oil prices. This settlement reflects the final cash delivery of related derivative contracts for the quarter. The document points out that this expenditure had a direct impact on the company's operating cash generation for the quarter. Despite this cash outflow, the company’s overall financial and operational conditions continued to operate according to its established strategic framework. The use of such derivatives is intended to provide price protection for part of the company's oil production and manage market volatility risk. The specific impact on cash flow has been confirmed and disclosed in the quarterly financial report.