UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 13, 2018

OCCIDENTAL PETROLEUM CORPORATION

(Exact Name of Registrant as Specified in its Charter)

Registrant’s telephone number, including area code: (713) 215-7000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02                   Results of Operations and Financial Condition.

On February 13, 2018, Occidental Petroleum Corporation (the “Company”) issued a press release announcing the Company’s financial condition and results of operations for the quarter ended December 31, 2017. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.

The information contained in this report and the exhibit hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01                   Financial Statements and Exhibits.

(d)         Exhibits.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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Exhibit 99.1

Occidental Petroleum Announces 2017 Results and 2018 Guidance

·                 Significant progress on Breakeven Plan with expected completion in third quarter 2018

·                 2018 capital budget of $3.9 billion and estimated production growth of 8 to 12 percent, with 40 percent annual growth in Permian Resources

·                 Delivered play-leading well results in Greater Sand Dunes and added 750 locations with breakeven under $50 in Permian Resources

·                 F&D cost of $8.53 per BOE and 187 percent reserve replacement

·                 Chemical’s 4CPe plant operations started in December 2017, on budget and on time

HOUSTON — February 13, 2018 — Occidental Petroleum Corporation (NYSE:OXY) today announced reported net income of $497 million, or $0.65 per diluted share, for the fourth quarter of 2017, compared with $190 million, or $0.25 per diluted share, for the third quarter of 2017. Core income for the fourth quarter of 2017 was $313 million, or $0.41 per diluted share, compared with $137 million, or $0.18 per diluted share, for the third quarter of 2017.

“In 2017, our investments in people, technology and assets continued to pay off, putting us ahead of schedule on our breakeven plan. All of our segments generated significant free cash flow, and we achieved record-breaking well results in our Permian Resources business,” said President and Chief Executive Officer Vicki Hollub. “We remain committed to value-based production growth as we execute our returns-focused capital program in 2018.”

QUARTERLY RESULTS
Oil and Gas

Total average daily production volumes were 621,000 barrels of oil equivalent (BOE) for the fourth quarter of 2017, compared to 600,000 BOE in the third quarter of 2017. Permian Resources average daily production volumes improved from the prior quarter by 20,000 BOE to 159,000 BOE in the fourth quarter of 2017 due to increased drilling activity and well productivity. Average daily production for Permian EOR increased by 2,000 BOE from the prior quarter to 155,000 BOE in the fourth quarter of 2017.

Oil and gas pre-tax income for the fourth quarter of 2017 was $44 million, compared to $220 million for the prior quarter. Fourth quarter income reflected non-cash charges on non-core Permian acreage of approximately $400 million, partially offset by sale gains of $64 million, while third quarter income included net gains on sales of domestic assets of $81 million. Excluding the charges and gains on sales, oil and gas income for the fourth quarter of 2017 was over $240 million higher than the third quarter, mainly due to improved crude oil and NGL prices.

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For the fourth quarter of 2017, average WTI and Brent marker prices were $55.40 per barrel and $61.54 per barrel, respectively. Average worldwide realized crude oil prices were $53.67 per barrel for the fourth quarter of 2017, an increase of 16 percent compared with the third quarter of 2017. Average worldwide realized natural gas liquids (NGLs) prices were $25.08 per barrel in the fourth quarter of 2017, an improvement of 21 percent compared to the third quarter of 2017. Average domestic realized natural gas prices were $2.08 per MCF in the fourth quarter of 2017, compared to $2.15 per MCF in the third quarter of 2017.

Oil & Gas Preliminary Reserves

At year-end 2017, Occidental’s preliminary worldwide proved reserves totaled 2.6 billion BOE, compared to 2.4 billion BOE at the end of 2016. Proved reserve additions from all sources were 412 million BOE, compared to production of 220 million BOE, and represented a reserves replacement ratio of 187 percent. Additions from improved recoveries were 201 million BOE and revisions were net positive 151 million BOE. Preliminary domestic proved reserves totaled 1.6 billion BOE at the end of 2017, compared to 1.4 billion BOE at the end of 2016. Occidental’s domestic operations had proved reserves additions from all sources of 313 million BOE, compared to production of 111 million BOE, for a reserves replacement ratio of over 280 percent. Total company finding and development costs (F&D) were $8.53 per BOE in 2017, compared to $9.65 per BOE in 2016.

As of December 31, 2017, the company’s proved reserves consisted of approximately 58 percent oil, 17 percent NGL and 25 percent gas. Of the total proved reserves, approximately 60 percent is in the United States and 40 percent is in international locations. Approximately 74 percent of the proved reserves is developed and 26 percent is undeveloped.

Chemical

Chemical pre-tax income for the fourth quarter of 2017 was $222 million, compared to pre-tax income of $200 million in the third quarter of 2017. The fourth quarter included a gain on sale of $5 million. The increase in core earnings was primarily due to higher realized caustic soda pricing, partially offset by unfavorable vinyl margins. Scheduled and unscheduled plant outages occurred at various facilities in the fourth quarter, resulting in lower sales volumes across many product lines.

A new manufacturing facility in Geismar, Louisiana, was completed on budget and on time in December 2017 and is expected to achieve full capacity in 2018. The facility manufactures 4CPe, a raw material used in making next-generation, climate-friendly refrigerants with low global-warming and zero-ozone depletion potential.

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Midstream and Marketing

Midstream pre-tax income for the fourth quarter of 2017 was $9 million, compared to $4 million for the third quarter of 2017. The fourth quarter results included non-cash charges of $120 million on idled facilities. Excluding the charges, the increase in fourth quarter income of $125 million, compared to the prior quarter, was due to higher marketing margins from improved crude oil price spreads and additional incremental margin earned from exporting crude oil from the Ingleside Crude Terminal and higher gas processing income due to higher NGL prices and lower plant expenses.

About Occidental Petroleum

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities. The company’s wholly owned subsidiary OxyChem manufactures and markets basic chemicals and vinyls. Occidental posts or provides links to important information on its website at www.oxy.com.

Non-GAAP Measures

This press release and the accompanying attachments refer to “finding and development cost” (F&D) and “reserves replacement,” which are non-GAAP measures that Occidental believes are widely used in our industry, as well as by analysts and investors, to measure and evaluate the cost of replacing annual production and adding proved reserves. Occidental’s definitions of these non-GAAP measures may differ from similarly titled measures provided by other companies and as a result may not be comparable. F&D Cost – All-In is calculated by dividing total costs incurred for the year as defined by GAAP by the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases of minerals in place for the year. F&D Cost – Organic is F&D Cost – All-In excluding both the property acquisition costs and purchases of minerals in place, and F&D – Program Additions further excludes reserve revisions. Reserves Replacement – All-In is calculated by dividing the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases and sales of minerals in place for the year by current year production. Reserves Replacement – Organic is Reserves Replacement – All-In, excluding purchases and sales of minerals in place for the year.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could

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cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber-attacks or insurgent activity; failure of risk management; changes in law or regulations; reorganization or restructuring of Occidental’s operations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of the 2016 Form 10-K.

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Contacts:

Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com

or

Investors:
Richard A. Jackson
713-215-7235
richard_jackson@oxy.com

On the web: www.oxy.com

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Occidental Petroleum Corporation

Quarter 4 2017 Earnings Release Schedules Index

SCHEDULE 1

Occidental Petroleum Corporation

Summary Highlights

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS

Occidental’s results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Therefore, management uses a measure called “core results,” which excludes those items. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported earnings are considered representative of management’s performance over the long term. Core results are not considered to be an alternative to operating income reported in accordance with generally accepted accounting principles.

SCHEDULE 2

Occidental Petroleum Corporation

Segment Results Before Tax Allocations

(Amounts in millions, except per share and effective tax rate amounts)