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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 25, 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
Item 5. Other Events.
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Occidental Petroleum Corporation reported on
January 25, 1995 break-even earnings (a loss of $.06 per
share after preferred dividends) for the fourth quarter of
1994, compared with net income of $57 million ($.15 per
share) for the fourth quarter of 1993. Earnings before the
after-tax effect of special items, discussed below, were $77
million for 1994, compared with a loss for 1993. The 1993
results included the after-tax benefit of $40 million,
reported as discontinued operations, for the reversal of
reserves no longer required related to the sale of Island
Creek Coal, Inc. Sales were $2.5 billion for the fourth
quarter of 1994, compared with $2.0 billion for the same
period of 1993.
Oil and gas divisional earnings before special
items noted below were $4 million for the fourth quarter of
1994, compared with a loss of $3 million for 1993.
Divisional results after these items were a loss of $42
million for the fourth quarter of 1994, compared with
income of $76 million for 1993. The 1994 results include a
$15 million benefit resulting from the reversal of reserves
for anticipated liabilities no longer needed related to the
sale of Occidental's U.K. North Sea interests.
Additionally, the 1994 results reflected $41 million of
reserves provided for litigation matters, $11 million for
impairment of oil and gas properties, $4 million for
environmental remediation and $5 million for a voluntary
retirement program. The 1993 results reflected a $6 million
charge for a legal settlement and a net benefit of $85
million from a reversal of tax reserves no longer required
related to the sale of Occidental's U.K. North Sea interests
in 1991. The 1994 earnings reflected higher oil and gas
volumes compared with 1993, offset by higher exploration
costs.
Natural gas transmission divisional earnings were
$93 million for the fourth quarter of 1994, compared with
$74 million for 1993. The 1994 results included a benefit
of $4 million from a reduction of LIFO inventory. The
fourth quarter of 1994 also benefited from lower rate
refunds to customers attributable to 1994 activity.
Chemical divisional earnings before special items
noted below were $212 million for the fourth quarter of
1994, compared with $10 million in 1993. Divisional
earnings after these items for the fourth quarter of 1994
were $127 million, compared with $16 million for 1993. The
1994 earnings included charges of $55 million to provide for
certain litigation matters and $30 million for expenses
related to the curtailment of certain plant operations. The
1993 earnings included a $6 million benefit resulting from
the reversal of a plant closure reserve. The increase in
1994 earnings primarily reflected the impact of improved
prices and margins in the PVC, caustic soda and
petrochemicals businesses.
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Unallocated income taxes were $63 million higher
in the fourth quarter of 1994, compared with 1993. The 1993
taxes reflected the net benefit of a change in the provision
for taxes and in the effective tax rate in the fourth
quarter. Unallocated corporate other items were income of
$6 million in the fourth quarter of 1994, compared with
expense of $26 million in 1993. The improvement in 1994
reflected higher equity earnings primarily from
unconsolidated chemical investments and from lower expenses.
For the total year 1994, Occidental's net loss
totaled $36 million ($.36 per share), compared with net
income of $283 million ($.80 per share) in 1993. Sales were
$9.2 billion for 1994, compared with $8.1 billion for 1993.
The 1993 results included the after-tax benefit of $221
million ($.72 per share), reported as discontinued
operations, and an extraordinary loss of $12 million ($.04
per share) resulting from the early extinguishment of debt.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
Fourth Quarter Twelve Months
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Periods Ended December 31 1994 1993 1994 1993
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DIVISIONAL NET SALES
Oil and gas $ 665 $ 425 $ 2,451 $ 1,702
Natural gas transmission 536 630 2,110 2,378
Chemical 1,364 967 4,677 4,042
Other (1) (2) (2) (6)
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NET SALES $ 2,564 $ 2,020 $ 9,236 $ 8,116
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DIVISIONAL EARNINGS
Oil and gas $ (42) $ 76 $ 27 $ 278
Natural gas transmission 93 74 276 426
Chemical 127 16 350 173
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Earnings from operations 178 166 653 877
UNALLOCATED CORPORATE ITEMS
Interest expense, net (143) (145) (564) (554)
Income taxes (a) (41) 22 (110) (186)
Other 6 (26) (15) (63)
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Income (loss) from continuing
operations - 17 (36) 74
Discontinued operations, net - 40 - 221
Extraordinary gain (loss), net - - - (12)
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NET INCOME(LOSS) - 57 (36) 283
Preferred dividends (20) (11) (76) (39)
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Earnings (loss) applicable to
common stock $ (20) $ 46 $ (112) $ 244
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EARNINGS PER COMMON SHARE:
Income (loss) from continuing
operations $ (.06) $ .02 $ (.36) $ .12
Discontinued operations, net - .13 - .72
Extraordinary gain (loss), net - - - (.04)
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EARNINGS (LOSS) PER COMMON SHARE $ (.06) $ .15 $ (.36) $ .80
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AVERAGE COMMON SHARES OUTSTANDING 312.8 305.4 310.8 304.9
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(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 1994 have benefited from credits allocated by $5
million, $12 million and $8 million at oil and gas, natural gas
transmission and chemical, respectively. Divisional earnings in the
fourth quarter of 1993 have benefited from credits allocated by $5
million, $17 million and $10 million at oil and gas, natural gas
transmission and chemical, respectively.
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SUMMARY OF OPERATING STATISTICS
Fourth Quarter Twelve Months
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Periods Ended December 31 1994 1993 1994 1993
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NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY:
United States
Crude oil and condensate
(thousands of barrels) 59 57 59 58
Natural gas liquids
(thousands of barrels) 13 6 8 13
Natural gas
(millions of cubic feet) 612 575 620 600
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 116 118 118 112
Natural gas
(millions of cubic feet) - 1 1 1
Eastern Hemisphere
Crude oil and condensate
(thousands of barrels) 77 51 61 46
Natural gas
(millions of cubic feet) 50 48 53 51
NATURAL GAS TRANSMISSION DELIVERIES:
Sales (billions of cubic feet) 146 176 549 662
Transportation
(billions of cubic feet) 381 426 1,533 1,609
CAPITAL EXPENDITURES (millions) $ 476 $ 269 $ 1,186 $ 1,083
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 223 $ 221 $ 883 $ 892
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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
DATE: January 25, 1995 ---------------------------------------------------
S. P. Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)
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