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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 23, 1997
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 January 23,
1997 net income of $159 million ($.41 per share) for the
fourth quarter of 1996, compared with net income for the
fourth quarter of 1995 of $7 million (a loss of $.05 per
share). Fourth quarter 1995 income before special items was
$79 million. The fourth quarter of 1995 results included a
$132 million pretax charge relating to reorganizations of
the oil and gas and natural gas transmission divisions.
Sales were $2.8 billion for the fourth quarter of 1996,
compared with $2.5 billion for the same period of 1995.
Oil and gas divisional earnings were $155 million for
the fourth quarter of 1996, compared with earnings before
special items of $64 million for the fourth quarter of 1995.
Divisional results for the fourth quarter of 1995 were a
loss of $31 million after inclusion of a $95 million charge
related to reorganization costs. The increase in 1996
earnings resulted primarily from higher worldwide crude oil
and domestic natural gas prices.
Natural gas transmission divisional earnings were $75
million for the fourth quarter of 1996, compared with
earnings before special items of $59 million for the fourth
quarter of 1995. Divisional earnings after special items
were $22 million for the fourth quarter of 1995. The 1995
earnings included a $37 million charge related to
reorganization costs. The increase in 1996 earnings
resulted primarily from higher margins.
Chemical divisional earnings were $110 million for the
fourth quarter of 1996, compared with $167 million for the
fourth quarter of 1995. The decline in 1996 earnings
resulted primarily from lower product margins for
petrochemical and chlor-alkali products.
Interest expense in the fourth quarter of 1996 was $102
million, compared with $130 million for the fourth quarter
of 1995. The decline in interest is attributable to lower
average interest rates and lower average debt levels
resulting primarily from redemptions of high-coupon debt.
Unallocated other expenses were $20 million for the
fourth quarter of 1996, compared with $7 million for the
fourth quarter of 1995. The net increase results mainly
from the initial establishment of the MidCon ESOP, special
project expenses and lower equity earnings from
unconsolidated subsidiaries.
For the total year 1996, Occidental's net income
totaled $668 million or $1.77 per share, compared with $511
million or $1.31 per share in 1995. Total year 1996 income
before special items was $643 million, compared with 1995
income of $623 million. Sales were $10.6 billion for 1996,
compared with $10.4 billion for 1995.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
Fourth Quarter Twelve Months
---------------- ----------------
Periods Ended December 31 1996 1995 1996 1995
================================== ======= ======= ======= =======
DIVISIONAL NET SALES
Oil and gas $ 900 $ 778 $ 3,680 $ 3,018
Natural gas transmission 797 578 2,574 2,038
Chemical 1,097 1,117 4,307 5,370
Other (2) - (4) (3)
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$ 2,792 $ 2,473 $10,557 $10,423
================================== ======= ======= ======= =======
DIVISIONAL EARNINGS
Oil and gas $ 155 $ (31) $ 480 $ 45
Natural gas transmission 75 22 296 213
Chemical 110 167 668 1,080
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340 158 1,444 1,338
UNALLOCATED CORPORATE ITEMS
Interest expense, net (102) (130) (451) (540)
Income taxes (a) (59) (14) (263) (295)
Other (20) (7) (32) 8
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INCOME BEFORE EXTRAORDINARY
GAIN(LOSS), NET 159 7 698 511
Extraordinary gain(loss), net - - (30) -
------- ------- ------- -------
NET INCOME 159 7 668 511
Preferred dividends (24) (23) (93) (93)
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EARNINGS(LOSS) APPLICABLE TO
COMMON STOCK $ 135 $ (16) $ 575 $ 418
======= ======= ======= =======
PRIMARY EARNINGS PER COMMON SHARE
Income before extraordinary
gain(loss), net $ .41 $ (.05) $ 1.86 $ 1.31
Extraordinary gain(loss), net - - (.09) -
------- ------- ------- -------
PRIMARY EARNINGS PER SHARE $ .41 $ (.05) $ 1.77 $ 1.31
======= ======= ======= =======
FULLY DILUTED EARNINGS PER COMMON SHARE
Income before extraordinary
gain(loss), net $ .40 $ (.05) $ 1.81 $ 1.30
Extraordinary gain(loss), net - - (.08) -
------- ------- ------- -------
FULLY DILUTED EARNINGS PER SHARE $ .40 $ (.05) $ 1.73 $ 1.30
======= ======= ======= =======
AVERAGE COMMON SHARES OUTSTANDING 329.5 318.8 324.1 318.2
================================== ======= ======= ======= =======
(a) The twelve months of 1996 includes a $100 million credit for reduction in
federal income tax liabilities no longer required. Also included is 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
1996 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 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.
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SUMMARY OF OPERATING STATISTICS
Fourth Quarter Twelve Months
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Periods Ended December 31 1996 1995 1996 1995
===================================== ====== ====== ====== ======
NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY
United States
Crude oil and condensate
(thousands of barrels) 60 62 57 64
Natural gas liquids
(thousands of barrels) 14 10 13 11
Natural gas
(millions of cubic feet) 589 584 601 612
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 123 127 128 129
Eastern Hemisphere
Crude oil and condensate
(thousands of barrels) 99 100 101 85
Natural gas
(millions of cubic feet) 112 125 115 127
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 204 203 699 648
Transportation
(billions of cubic feet) 418 421 1,555 1,533
CAPITAL EXPENDITURES (millions) $ 405 $ 373 $1,185 $ 979
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 234 $ 214 $ 921 $ 922
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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, 1997 S. P. Dominick, Jr.
-----------------------------------
S. P. Dominick, Jr., Vice President
and Controller (Chief Accounting
and Duly Authorized Officer)
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