View:
====================================================================
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) APRIL 17, 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 No.) 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
- ------- ------------
Occidental Petroleum Corporation reported on
April 17, 1996, for the first quarter of 1996, income of $164
million ($.44 per share), before an after-tax extraordinary
loss of $30 million ($.09 per share). This compares with net
income of $178 million ($.49 per share) for the first quarter
of 1995. Net income for 1996 after the extraordinary loss
was $134 million ($.35 per share). The extraordinary loss was
for the previously announced early retirement of high-coupon
debt. Sales were $2.5 billion for the first quarter of 1996,
compared with $2.7 billion for the same period in 1995.
Oil and gas divisional earnings were $161 million
for the first quarter of 1996, compared with $60 million for
1995. The increase in 1996 earnings resulted primarily from
higher worldwide crude oil prices, increased international
crude oil production, higher domestic natural gas prices and
reduced costs.
Natural gas transmission divisional earnings for
the first quarter of 1996 were $121 million, compared with $75
million for 1995. The improvement in 1996 earnings resulted
primarily from higher sales and transportation margins and
volumes.
Chemical divisional earnings for the first quarter
of 1996 were $118 million, compared with $307 million for
1995. The decline in 1996 earnings resulted primarily from
decreased profit margins in petrochemicals and PVC resins and
the absence of income applicable to assets divested in 1995.
1
SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
First Quarter
-------------------
Periods Ended March 31 1996 1995
=============================================== ======= =======
DIVISIONAL NET SALES
Oil and gas $ 754 $ 705
Natural gas transmission 702 538
Chemical 1,068 1,472
Other (2) (1)
------- -------
$ 2,522 $ 2,714
=============================================== ======= =======
DIVISIONAL EARNINGS
Oil and gas $ 161 $ 60
Natural gas transmission 121 75
Chemical 118 307
------- -------
400 442
UNALLOCATED CORPORATE ITEMS
Interest expense, net (130) (144)
Income taxes (a) (99) (125)
Other (7) 5
------- -------
INCOME BEFORE EXTRAORDINARY GAIN(LOSS), NET 164 178
Extraordinary gain(loss), net (30) -
------- -------
NET INCOME 134 178
Preferred dividends (23) (23)
------- -------
EARNINGS(LOSS) APPLICABLE TO COMMON STOCK $ 111 $ 155
======= =======
PRIMARY EARNINGS(LOSS) PER COMMON SHARE
Income before extraordinary gain(loss), net $ .44 $ .49
Extraordinary gain(loss), net (.09) -
------- -------
PRIMARY EARNINGS(LOSS) PER COMMON SHARE $ .35 $ .49
======= =======
FULLY DILUTED EARNINGS(LOSS) PER COMMON SHARE
Income before extraordinary gain(loss), net $ .43 $ .47
Extraordinary gain(loss), net (.09) -
------- -------
FULLY DILUTED EARNINGS(LOSS) PER COMMON SHARE $ .34 $ .47
======= =======
AVERAGE COMMON SHARES OUTSTANDING 319.4 317.3
=============================================== ======= =======
(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 credits in lieu of U.S. federal income taxes
allocated to the divisions. Divisional earnings in the first 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 first 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.
2
SUMMARY OF OPERATING STATISTICS
First Quarter
-----------------
Periods Ended March 31 1996 1995
=================================================== ======= =======
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude oil and condensate (thousands of barrels) 58 66
Natural gas liquids (thousands of barrels) 11 11
Natural gas (millions of cubic feet) 615 644
Other Western Hemisphere
Crude oil and condensate (thousands of barrels) 128 123
Eastern Hemisphere
Crude oil and condensate (thousands of barrels) 103 84
Natural gas (millions of cubic feet) 135 108
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 193 174
Transportation (billions of cubic feet) 519 415
CAPITAL EXPENDITURES (millions) $ 219 $ 160
======= =======
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 224 $ 238
=================================================== ======= =======
3
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 thereunto duly authorized.
OCCIDENTAL PETROLEUM CORPORATION
DATE: April 18, 1996 S. P. Dominick, Jr.
--------------------------------
S. P. Dominick, Jr., Vice
President and Controller
(Chief Accounting and Duly
Authorized Officer)
4