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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) OCTOBER 18, 1995
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
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Occidental Petroleum Corporation reported on October
18, 1995 net income of $139 million ($.36 per share) for the
third quarter of 1995, compared with net income of $23 million
($.01 per share) for the third quarter of 1994. Sales were $2.6
billion for the third quarter of 1995, compared with $2.4 billion
for the same period in 1994.
Oil and gas divisional earnings for the third quarter
of 1995 were $46 million, compared with earnings before special
items of $24 million in 1994. The 1994 earnings, after a $16
million gain resulting from the sale of Occidental's producing
operations in Argentina, were $40 million. The increase in 1995
operating earnings primarily resulted from higher worldwide crude
oil production, partially offset by lower domestic natural gas
prices.
Natural gas transmission divisional earnings for the
third quarter of 1995 were $54 million, compared with earnings of
$53 million in 1994.
Chemical divisional earnings for the third quarter of
1995 were $252 million, compared with earnings before special
items of $154 million in 1994. The 1994 earnings, after a charge
of $18 million for a plant closure reserve, were $136 million.
The increase in 1995 operating earnings reflected the impact of
improved profit margins for caustic soda and petrochemicals.
Unallocated income taxes were $83 million in 1995,
compared with $64 million in 1994. The increase in 1995 resulted
primarily from the higher divisional earnings.
For the first nine months of 1995, Occidental's net
income totaled $504 million or $1.37 per share, compared with a
net loss of $36 million for the first nine months of 1994. Sales
were $8.0 billion for the first nine months of 1995, compared
with $6.7 billion for the same period in 1994.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
Third Quarter Nine Months
---------------- ----------------
Periods Ended September 30 1995 1994 1995 1994
================================== ======= ======= ======= =======
DIVISIONAL NET SALES
Oil and gas $ 779 $ 741 $ 2,240 $ 1,786
Natural gas transmission 454 461 1,460 1,574
Chemical 1,325 1,202 4,253 3,313
Other (1) - (3) (1)
_______ _______ _______ _______
Net sales $ 2,557 $ 2,404 $ 7,950 $ 6,672
================================== ======= ======= ======= =======
DIVISIONAL EARNINGS
Oil and gas $ 46 $ 40 $ 76 $ 69
Natural gas transmission 54 53 191 183
Chemical 252 136 913 223
_______ _______ _______ _______
352 229 1,180 475
UNALLOCATED CORPORATE ITEMS
Interest expense, net (133) (136) (410) (421)
Income taxes (a) (83) (64) (281) (69)
Other 3 (6) 15 (21)
_______ _______ _______ _______
NET INCOME(LOSS) 139 23 504 (36)
Preferred dividends (24) (20) (70) (56)
_______ _______ _______ _______
Earnings(loss) applicable to
common stock $ 115 $ 3 $ 434 $ (92)
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EARNINGS(LOSS) PER COMMON SHARE
Primary $ .36 $ .01 $ 1.37 $ (.30)
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Fully diluted $ .36 $ .01 $ 1.33 $ (.30)
======= ======= ======= =======
AVERAGE COMMON SHARES OUTSTANDING 318.6 312.4 318.0 310.2
================================== ======= ======= ======= =======
(a) Includes an adjustment to corporate taxes, as quarterly consolidated taxes
are computed in accordance with APB Opinion No. 28 and hence are based on
projections of total-year income and taxes. Also, includes an offset for
charges and credits in lieu of U.S. federal income taxes allocated to the
divisions. Divisional earnings in the third quarter of 1995 have benefited
from credits allocated by $4 million, $12 million and $6 million at oil
and gas, natural gas transmission and chemical, respectively. Divisional
earnings in the third quarter of 1994 have benefited from credits al-
located by $4 million, $12 million and $9 million at oil and gas, natural
gas transmission and chemical, respectively.
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SUMMARY OF OPERATING STATISTICS
Third Quarter Nine Months
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Periods Ended September 30 1995 1994 1995 1994
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NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY
United States
Crude oil and condensate
(thousands of barrels) 62 59 65 59
Natural gas liquids
(thousands of barrels) 11 10 11 7
Natural gas
(millions of cubic feet) 588 616 621 624
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 129 118 127 118
Eastern Hemisphere and other
Crude oil and condensate
(thousands of barrels) 95 59 89 56
Natural gas
(millions of cubic feet) 96 50 107 55
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 137 104 445 403
Transportation
(billions of cubic feet) 344 339 1,112 1,152
CAPITAL EXPENDITURES (millions) $ 226 $ 197 $ 606 $ 710
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 235 $ 229 $ 708 $ 660
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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: October 18, 1995 S. P. Dominick, Jr.
--------------------------------
S. P. Dominick, Jr.,
Vice President and Controller
(Chief Accounting and Duly
Authorized Officer)
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