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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) APRIL 20, 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 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
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Item 5. Other Events
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Occidental Petroleum Corporation reported on April
20, 1995 net income of $178 million ($.49 per share) for the
first quarter of 1995, compared with a net loss of $40 million
($.19 per share) for the first quarter of 1994. Sales were
$2.7 billion for the first quarter of 1995, compared with $2.1
billion for the same period in 1994.
Oil and gas divisional earnings were $60 million for
the first quarter of 1995, compared with $4 million for 1994.
The increase in 1995 earnings primarily resulted from higher
worldwide oil and gas production and oil prices, which were
partially offset by lower domestic natural gas prices.
Included in the 1994 results was a $7 million charge for
severance and related costs.
Natural gas transmission divisional earnings for the
first quarter of 1995 were $75 million, compared with earnings
of $64 million before special items in 1994. The 1994
results, after the net benefit of $12 million from a reduction
in the contract impairment reserve, were $76 million. The
improvement in 1995 operating earnings resulted primarily from
higher margins on gas sales from storage.
Chemical divisional earnings for the first quarter
of 1995 were $307 million, compared with $22 million for 1994.
The increase in 1995 earnings resulted primarily from
substantially higher prices and profit margins for PVC,
caustic soda and petrochemicals. Included in the 1994 results
was an $11 million unfavorable impact related to an explosion
at the Taft plant and charges for start-up costs related to
the Swift Creek chemical plant.
Unallocated income taxes were $134 million higher in
1995 compared with 1994 resulting primarily from the higher
divisional earnings. Unallocated corporate other items were
income of $5 million in the first quarter of 1995, compared
with expense of $8 million in 1994. The improvement in these
items in 1995 primarily reflected higher equity earnings from
unconsolidated chemical and oil and gas investments.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
First Quarter
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Periods Ended March 31 1995 1994
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DIVISIONAL NET SALES
Oil and gas $ 705 $ 484
Natural gas transmission 538 634
Chemical 1,472 989
Other (1) (1)
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Net sales $ 2,714 $ 2,106
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DIVISIONAL EARNINGS
Oil and gas $ 60 $ 4
Natural gas transmission 75 76
Chemical 307 22
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Earnings from operations 442 102
UNALLOCATED CORPORATE ITEMS
Interest expense, net (144) (143)
Income taxes (a) (125) 9
Other 5 (8)
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NET INCOME (LOSS) 178 (40)
Preferred dividends (23) (17)
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Earnings (loss) applicable to
common stock $ 155 $ (57)
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EARNINGS (LOSS) PER COMMON SHARE $ .49 $ (.19)
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AVERAGE COMMON SHARES OUTSTANDING 317.3 306.2
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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 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. Divisional
earnings in the first quarter of 1994 have benefited
from credits allocated by $5 million, $5 million and
$7 million at oil and gas, natural gas transmission
and chemical, respectively.
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SUMMARY OF OPERATING STATISTICS
First Quarter
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Periods Ended March 31 1995 1994
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NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY:
United States
Crude oil and condensate
(thousands of barrels) 66 57
Natural gas liquids
(thousands of barrels) 11 5
Natural gas
(millions of cubic feet) 644 600
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 123 122
Eastern Hemisphere
Crude oil and condensate
(thousands of barrels) 84 55
Natural gas
(millions of cubic feet) 108 58
NATURAL GAS TRANSMISSION DELIVERIES:
Sales (billions of cubic feet) 174 172
Transportation
(billions of cubic feet) 415 461
CAPITAL EXPENDITURES (millions) $ 160 $ 336
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 238 $ 207
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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: April 21, 1995 S. P. Dominick, Jr
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S. P. Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)
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