UNITED STATES
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): February 12, 2019

OCCIDENTAL PETROLEUM CORPORATION
(Exact Name of Registrant as Specified in its Charter)

Registrant’s telephone number, including area code: (713) 215-7000

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o          Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o          Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o          Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o          Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Item 2.02                   Results of Operations and Financial Condition.

On February 12, 2019, Occidental Petroleum Corporation (the “Company”) issued a press release announcing the Company’s financial condition and results of operations for the quarter and full-year ended December 31, 2018. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K, and is incorporated herein by reference.

The information contained in this report and the exhibit hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any filings made by the Company under the Securities Act of 1933, as amended, or the Exchange Act, except as may be expressly set forth by specific reference in such filing.

Item 9.01                   Financial Statements and Exhibits.

(d)         Exhibits.

SIGNATURES

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.

Exhibit 99.1

Occidental Petroleum Announces 4th Quarter and Full Year 2018 Results

Occidental Petroleum reports 2018 net income of $4.1 billion with ROCE of 14%, the highest since 2014 portfolio optimization; returns more than $3.6 billion to shareholders

·            Q4 cash flow from operations before working capital of $1.9 billion funded capital expenditures and dividends

·            Reserve replacement of 164% worldwide with Permian Resources replacement of 300%

·            Q4 Permian Resources production of 250,000 BOE per day, up 57% year-over-year

·            2019 estimated production growth of 9 to 11%, with 30+% annual growth in Permian Resources

·            2018 year-end cash balance of $3.0 billion

·            2019 capital budget 10% lower at $4.5 billion

HOUSTON — February 12, 2019 — Occidental Petroleum Corporation (NYSE:OXY) today announced net income for the fourth quarter of 2018 of $706 million, or $0.93 per diluted share, which included impairment charges of $220 million. Core income for the fourth quarter of 2018 was $922 million, or $1.22 per diluted share.

“In 2018, outstanding performance across our businesses generated the highest level of operating cash flow and return on capital employed since our portfolio optimization, and we returned more than $3.6 billion to shareholders through share repurchases and our sustainable dividend,” said President and Chief Executive Officer Vicki Hollub. “These achievements reflect the strength of our integrated business model and the high quality of our assets. As we execute our returns-focused capital program in 2019, we will strive to ensure that every dollar we spend maximizes value for our shareholders.”

QUARTERLY RESULTS
Oil and Gas

Oil and gas pre-tax income for the fourth quarter of 2018 was $145 million, compared to $767 million for the prior quarter. Occidental recorded impairment charges on its Qatar assets of $220 million and $196 million in the fourth and third quarters of 2018, respectively. Excluding these impairment charges, oil and gas pre-tax income was $365 million for the fourth quarter of 2018, compared to $963 million for the third quarter of 2018. The decline in fourth quarter core income, compared to the prior quarter, reflected lower oil and natural gas liquids (NGL) prices, a negative non-cash mark-to-market adjustment on carbon dioxide (CO2) purchase contracts, and

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higher depreciation, depletion and amortization and operating expenses in Qatar, primarily as a result of the Idd El-Shargi North Dome offshore field contract expiration in October 2019.

Total average daily production volumes were 700,000 barrels of oil equivalent (BOE) for the fourth quarter of 2018, compared to 681,000 BOE in the third quarter of 2018. Permian Resources average daily production volumes for the fourth quarter of 2018 were 250,000 BOE, at the high end of guidance and an increase of 11 percent from the prior quarter due to improved well performance and development activity. Compared to the fourth quarter of 2017, Permian Resources production increased by more than 57 percent. International average daily volumes decreased by 7,000 BOE in the fourth quarter of 2018, compared to the prior quarter, primarily due to the impact of price on production sharing contracts in Oman and weather delays in Qatar.

For the fourth quarter of 2018, average WTI and Brent marker prices were $58.81 per barrel and $68.08 per barrel, respectively. Average worldwide realized crude oil prices decreased by 10 percent from the prior quarter to $56.11 per barrel. Average worldwide realized NGL prices decreased by 23 percent from the prior quarter to $22.88 per BOE.

Oil and Gas Preliminary Reserves

At year-end 2018, Occidental’s preliminary worldwide proved reserves totaled 2.8 billion BOE, compared to 2.6 billion BOE at the end of 2017. Proved reserve additions from all sources were 394 million BOE, compared to production of 240 million BOE, and represented a reserves replacement ratio all-in of 164 percent. Additions from improved recoveries were 294 million BOE and revisions were net positive 56 million BOE. Preliminary domestic proved reserves totaled 1.7 billion BOE at the end of 2018, compared to 1.6 billion BOE at the end of 2017. Occidental’s domestic operations had proved reserves additions from all sources of 292 million BOE, compared to production of 136 million BOE, for a reserves replacement ratio of 215 percent, with Permian Resources reserves replacement of 300 percent.

As of December 31, 2018, the company’s proved reserves consisted of approximately 57 percent oil, 18 percent NGL and 25 percent gas. Of the total proved reserves, approximately 62 percent is in the United States and 38 percent is international. Approximately 73 percent of the proved reserves is developed and 27 percent is undeveloped.

Chemical

Chemical pre-tax income for the fourth quarter of 2018 was $223 million, compared to $321 million for the prior quarter. The decline was primarily due to lower realized caustic soda pricing and unfavorable natural gas and ethylene costs. In addition, scheduled plant outages combined with typical seasonality resulted in lower production volumes across many product lines.

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Midstream and Marketing

Midstream and marketing pre-tax income for the fourth quarter of 2018 was $675 million, compared to $1.7 billion for the prior quarter. Third quarter earnings included a pre-tax net gain on sale of approximately $900 million for the Centurion common carrier oil pipeline and storage system, the Southeast New Mexico oil gathering system and the Ingleside Crude Terminal. Excluding the gain on sale, midstream pre-tax income from the third quarter of 2018 was $796 million. The decrease in fourth quarter income reflected lower Midland-to-Gulf-Coast spreads in the marketing business, lower pipeline income due to the sale of the Centurion pipeline in the third quarter and lower Dolphin Pipeline equity income.

About Occidental Petroleum

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities. The company’s wholly owned subsidiary OxyChem manufactures and markets basic chemicals and vinyls. Occidental posts or provides links to important information on its website at oxy.com.

Supplemental Non-GAAP Measures

This press release refers to return on capital employed (ROCE), core income and reserves replacement all-in, which are supplemental measures not calculated in accordance with generally accepted accounting principles in the United States (GAAP). Definitions and reconciliations of these non-GAAP measures to the most directly comparable financial measure calculated in accordance with GAAP are included in the financial schedules of this press release. Occidental’s definition of these non-GAAP measures may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; not successfully completing, or any material delay of, field developments,

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expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions;  uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; actions by third parties, including service providers, disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber-attacks or insurgent activity; failure of risk management; changes in law, regulations or tax rates. Words such as “estimate,” “guidance,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “strive,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual Report on Form 10-K for the year ended December 31, 2017, and in Occidental’s other filings with the SEC, including the forthcoming Annual Report on Form 10-K for the year ended December 31, 2018.

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Contacts:

Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com

or

Investors:
Jeff Alvarez
713-215-7864
jeff_alvarez@oxy.com

On the web: oxy.com

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Occidental Petroleum Corporation

Quarter 4 2018 Earnings Release Schedules Index

SCHEDULE 1

Occidental Petroleum Corporation

Summary Highlights

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS

Occidental’s results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. Therefore, management uses a measure called “core results,” which excludes those items. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported earnings are considered representative of management’s performance over the long term. Core results are not considered to be an alternative to operating income reported in accordance with generally accepted accounting principles.

SCHEDULE 2

Occidental Petroleum Corporation

Segment Results Before Tax Allocations

(Amounts in millions, except per share and effective tax rate amounts)