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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) JANUARY 24, 1996
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-9210 95-4035997
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
10889 WILSHIRE BOULEVARD, LOS ANGELES, CALIFORNIA 90024
(Address of principal executive offices)(ZIP code)
Registrant's telephone number, including area code:
(310) 208-8800
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Item 5. Other Events
_______ ____________
Occidental Petroleum Corporation reported on January 24,
1996 net income of $7 million (a loss of $.05 per share) for the
fourth quarter of 1995, compared with break-even earnings (a loss
of $.06 per share) for the fourth quarter of 1994. The fourth
quarter 1995 results included a $132 million pretax charge
relating to the previously announced reorganizations of the oil
and gas and natural gas transmission divisions. Sales were $2.4
billion for the fourth quarter of 1995, compared with $2.5
billion for the same period of 1994.
The reorganization of the oil and gas division, for which a
charge of $95 million was recorded, is expected to result in
annualized savings of $100 million. Approximately 15 percent of
this charge is to provide for estimated losses on disposition of
assets as part of the reorganization. MidCon's reorganization,
for which a $37 million charge was recorded, is expected to
recognize annualized savings of $50 million.
Oil and gas divisional earnings before special items were
$64 million for the fourth quarter of 1995, compared with $4
million for the fourth quarter of 1994. Divisional results after
special items were a loss of $31 million for the fourth quarter
of 1995, compared with a loss of $42 million for 1994. The 1995
results included the $95 million charge related to reorganization
costs. The 1994 results included charges to provide reserves for
litigation matters and impairment of properties and other
charges, partially offset by the reversal of reserves related to
sold businesses. The increase in 1995 operating earnings
resulted primarily from higher worldwide crude oil production and
lower exploration expense.
Natural gas transmission divisional earnings before special
items were $59 million for the fourth quarter of 1995, compared
with $89 million in 1994. Divisional earnings after special
items were $22 million for the fourth quarter of 1995, compared
with $93 million for 1994. The 1995 earnings included the $37
million charge related to reorganization costs. The 1994
earnings included a benefit from a LIFO inventory reduction. The
decrease in 1995 operating earnings resulted from lower margins
including those on restructured contracts, partially offset by
higher throughput volumes.
Chemical divisional earnings were $167 million for the
fourth quarter of 1995, compared with earnings before special
items of $212 million in 1994. Fourth quarter 1994 divisional
earnings, after charges for litigation matters and curtailment of
certain plant operations, were $127 million. The decline in 1995
operating earnings resulted primarily from decreased profit
margins in petrochemicals and PVC resins and the absence of
income applicable to assets divested in 1995. Partially
offsetting these declines was the favorable impact of improved
profit margins for caustic soda.
Unallocated interest expense was $13 million lower in the
fourth quarter of 1995, compared with 1994. The 1995 interest
expense reflected the benefit of a net reduction in outstanding
debt, partially offset by increased expense due to regulatory
settlements. Unallocated corporate other items were an expense
of $7 million in the fourth quarter of 1995, compared with income
of $6 million in 1994. The decline in 1995 primarily reflected
lower equity earnings from unconsolidated chemical investments.
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For the total year 1995, Occidental's net income totaled
$511 million ($1.31 per share), compared with a net loss of $36
million ($.36 per share) in 1994. Sales increased to $10.4
billion for 1995 from $9.2 billion in 1994.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
Fourth Quarter Twelve Months
________________ ________________
Periods Ended December 31 1995 1994 1995 1994
================================== ======= ======= ======= =======
DIVISIONAL NET SALES
Oil and gas $ 778 $ 665 $ 3,018 $ 2,451
Natural gas transmission 578 536 2,038 2,110
Chemical 1,117 1,364 5,370 4,677
Other - (1) (3) (2)
------- ------- ------- -------
$ 2,473 $ 2,564 $10,423 $ 9,236
================================== ======= ======= ======= =======
DIVISIONAL EARNINGS
Oil and gas $ (31) $ (42) $ 45 $ 27
Natural gas transmission 22 93 213 276
Chemical 167 127 1,080 350
------- ------- ------- -------
158 178 1,338 653
UNALLOCATED CORPORATE ITEMS
Interest expense, net (130) (143) (540) (564)
Income taxes (a) (14) (41) (295) (110)
Other (7) 6 8 (15)
------- ------- ------- -------
NET INCOME(LOSS) 7 - 511 (36)
Preferred dividends (23) (20) (93) (76)
------- ------- ------- -------
Earnings(loss) applicable to
common stock $ (16) $ (20) $ 418 $ (112)
======= ======= ======= =======
EARNINGS(LOSS) PER COMMON SHARE
Primary $ (.05) $ (.06) $ 1.31 $ (.36)
======= ======= ======= =======
Fully diluted $ (.05) $ (.06) $ 1.30 $ (.36)
======= ======= ======= =======
AVERAGE COMMON SHARES OUTSTANDING 318.8 312.8 318.2 310.8
================================== ======= ======= ======= =======
(a) Includes an offset for charges and credits in lieu of U.S. federal income
taxes allocated to the divisions. Divisional earnings in the fourth
quarter of 1995 have benefited from credits allocated by $4 million,
$12 million and $7 million at oil and gas, natural gas transmission and
chemical, respectively. Divisional earnings in the fourth quarter of
1994 have benefited from credits allocated by $5 million, $12 million and
$8 million at oil and gas, natural gas transmission and chemical,
respectively.
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SUMMARY OF OPERATING STATISTICS
Fourth Quarter Twelve Months
________________ ________________
Periods Ended December 31 1995 1994 1995 1994
=================================== ======= ======= ======= =======
NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY
United States
Crude oil and condensate
(thousands of barrels) 62 59 64 59
Natural gas liquids
(thousands of barrels) 10 13 11 8
Natural gas
(millions of cubic feet) 584 612 612 620
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 127 116 129 119
Eastern Hemisphere and other
Crude oil and condensate
(thousands of barrels) 100 77 85 59
Natural gas
(millions of cubic feet) 125 50 127 52
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 203 146 648 549
Transportation
(billions of cubic feet) 421 381 1,533 1,533
CAPITAL EXPENDITURES (millions) $ 372 $ 476 $ 978 $ 1,186
======= ======= ======= =======
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 213 $ 222 $ 921 $ 882
=================================== ======= ======= ======= =======
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SIGNATURE
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.
OCCIDENTAL PETROLEUM CORPORATION
(Registrant)
DATE: January 24, 1996 S.P.Dominick, Jr.
________________________________________________
S.P.Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)
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