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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 27, 2020

 

 

 

OCCIDENTAL PETROLEUM CORPORATION

(Exact Name of Registrant as Specified in Charter)

 

 

 

Delaware		1-9210		95-4035997
(State or Other Jurisdiction of Incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

5 Greenway Plaza, Suite 110 Houston, Texas		77046
(Address of Principal Executive Offices)		(Zip Code)

 

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):

 

¨

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

¨

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

¨

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

¨

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

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of Each Class		Trading Symbol(s)		Name of Each Exchange on Which Registered
Common Stock, $0.20 par value		OXY		New York Stock Exchange

 

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  ¨

 

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.  ¨

 

 

 

 

 

 

Item 2.02

Results of Operations and Financial Condition.

 

On February 27, 2020, 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, 2019. 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 exhibits 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.

 

Exhibit No.		Description
99.1		Press Release dated February 27, 2020.
104		Cover Page Interactive Data File (embedded within the Inline XBRL document).

 

 

 

 

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
	By:	/s/ Christopher O. Champion
	Name:	Christopher O. Champion
	Title:	Vice President, Chief Accounting Officer and Controller
Date: February 27, 2020

 

 

Exhibit 99.1

 

 

Occidental Announces 4th Quarter and Full-Year 2019 Results

 

•

Fourth quarter company-wide production of 1,402,000 BOEPD; exceeded mid-point of guidance by 78,000 BOEPD

-

Permian Resources production of 476,000 BOEPD exceeded mid-point of guidance by 22,000 BOEPD

•

Industry-leading Permian Resources capital intensity

-

2020 plan of $21,000 per BOEPD added, 33% improvement from 2019

•

Strengthening balance sheet; repaid 32% of debt raised for Anadarko acquisition within five months of closing

-

Total debt repayments of $7.0 billion in the second half of 2019

•

Capturing the $900 million overhead synergy target one year ahead of schedule

•

Announced divestitures totaling $10.2 billion against target of $15.0 billion

•

Returned $0.7 billion to common stockholders in the fourth quarter

-

Announced 182nd consecutive quarterly dividend payment

 

HOUSTON — February 27, 2020 — Occidental Petroleum Corporation (NYSE:OXY) today announced a net loss attributable to common stockholders for the fourth quarter of 2019 of $1.3 billion, or $1.50 per diluted share, and adjusted loss attributable to common stockholders of $269 million, or $0.30 per diluted share. Fourth quarter pre-tax items affecting comparability included a charge of approximately $1.0 billion to reflect Occidental’s investment in Western Midstream Partners, LP (WES) at fair value as of December 31, 2019, upon applying the equity method of accounting, Anadarko acquisition-related transaction costs of $656 million, and net gains on sale of $475 million related to Occidental’s Midland Basin joint venture with Ecopetrol and a sale of real estate assets.

 

“The integration of our combined businesses is progressing extremely well and faster than expected as evidenced by our outstanding operational performance and we are ahead of schedule in capturing value from our $2 billion synergy program,” said President and Chief Executive Officer Vicki Hollub. “We are advancing toward achieving our divestiture target of $15 billion and repaid $7 billion of debt within five months of closing the Anadarko acquisition. Deleveraging and returning excess free cash flow to shareholders remain key priorities, and we are highly confident in our ability to achieve both.”

 

  

QUARTERLY RESULTS

 

Oil and Gas

 

Oil and gas pre-tax income for the fourth quarter of 2019 was $921 million, compared to $221 million for the prior quarter. The fourth quarter results included $475 million in net gains on sale related to Occidental’s Midland Basin joint venture with Ecopetrol and a sale of real estate assets and a mark-to-market loss of $182 million on crude oil hedges. Excluding gains on sales and the mark-to-market loss, the increase in fourth quarter income reflected higher domestic crude oil volumes from a full quarter of production from the Anadarko acquisition, partially offset by lower international crude oil volumes.

 

Total average daily production volume for the fourth quarter of 2019 exceeded guidance at 1,402,000 barrels of oil equivalent per day (BOED) with Permian Resources production of 476,000 BOED due to continued improvement in well performance and reduction in downtime. International average daily production volumes also came in above guidance for the fourth quarter at 257,000 BOED.

 

For the fourth quarter of 2019, average WTI and Brent marker prices were $56.96 per barrel and $62.50 per barrel, respectively. Average worldwide realized crude oil prices for the fourth quarter were $56.21, flat compared to the third quarter of 2019. Average worldwide realized NGL prices increased by 19 percent from the prior quarter to $17.78 per BOE. The increase in average domestic realized gas prices to $1.61 per Mcf during the fourth quarter of 2019 was due to a full quarter of production from legacy Anadarko gas-producing operations, which have higher realized prices.

 

OxyChem

 

Chemical pre-tax income for the fourth quarter exceeded guidance at $119 million. Compared to the prior quarter, the decline in fourth quarter income was primarily due to scheduled plant outages combined with softer overall demand, resulting in lower production and sales volumes across many product lines.

 

Marketing and Midstream

 

Occidental combined the operations of WES into the Marketing and Midstream operating segment. Marketing and Midstream pre-tax loss for the fourth quarter was $769 million, compared to income of $400 million for the third quarter of 2019. Fourth quarter pre-tax income included a $1.0 billion charge to reflect Occidental’s investment in WES at fair value as of December 31, 2019, upon applying the equity method of accounting. Excluding these charges, the decrease in fourth quarter pre-tax income reflected lower marketing results due to non-cash mark-to-market losses, the tightening of the Midland to MEH differential, and lower equity investment income due to the sale of the equity interests in Plains in the third quarter of 2019.

 

 

Supplemental Non-GAAP Measure

 

This press release refers to adjusted income, a supplemental measure not calculated in accordance with generally accepted accounting principles in the United States (GAAP). A definition of adjusted income and a reconciliation to net income, the comparable GAAP financial measure, is included in the financial schedules of this press release. Occidental’s definition of adjusted income may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.

 

About Occidental

 

Occidental is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. We are the leading producer and largest acreage holder in the Permian Basin. Occidental is advancing a lower-carbon future with our subsidiary Oxy Low Carbon Ventures, which promotes innovative technologies that drive cost efficiencies and economically grow our business while reducing emissions. Occidental’s Marketing and Midstream segment provides flow assurance for our oil and gas segment, while maximizing the value of our products. OxyChem, our chemical subsidiary, is among the top three U.S. producers for the principal products it manufactures and markets. Occidental posts or provides links to important information on our website at oxy.com.

 

 

Forward-Looking Statements

 

This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental’s expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, and they include, but are not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press 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.

 

 

Although Occidental believes that the expectations reflected in any of our forward-looking statements are reasonable, actual results may differ from anticipated results, sometimes materially. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: the extent to which Occidental is able to successfully integrate Anadarko Petroleum Corporation (Anadarko), manage expanded operations and realize the anticipated benefits of combining Occidental and Anadarko; Occidental’s ability to successfully complete the sale of the remaining assets, liabilities, businesses and operations of Occidental’s Africa assets and other planned divestitures; global commodity pricing fluctuations; world health events; 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, 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; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver our oil and natural gas and other processing and transportation considerations; general economic slowdowns domestically or internationally; difficult and adverse conditions in the domestic and global capital and credit markets; the impact of potential changes in Occidental’s credit ratings; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; political conditions and events; liability under environmental regulations, including remedial actions; litigation; 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 or regulations; reorganization or restructuring of Occidental’s operations; changes in tax rates; actions by third parties that are beyond Occidental’s control; and the ability to generate cash to fund operations and repay indebtedness.

 

Additional information concerning these and other factors can be found in Occidental’s filings with the U.S. Securities and Exchange Commission, including Occidental’s Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

 

-0-

 

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

 

 

Occidental Petroleum Corporation
Quarter 4 2019 Earnings Release Schedules Index
Schedule #		Schedule Description
1		Summary Highlights
2		Items Affecting Comparability Detail
		● Before tax allocations
		● After tax allocations
3		Segment Results Before Tax Allocations
		● Reported Results
		● Items Affecting Comparability
		● Adjusted Results (non-GAAP)
4		Segment Results After Tax Allocations
		● Reported Results
		● Items Affecting Comparability
		● Adjusted Results (non-GAAP)
		● Reconciliation - Diluted EPS
5		Consolidated Condensed Statements of Operations
6		Consolidated Condensed Balance Sheets
7		Consolidated Condensed Statements of Cash Flows
		Detail of Capital Expenditures and Depreciation, Depletion and Amortization
8		Oil & Gas Net Production Volumes Per Day
		● MBOE/D
		● By Commodity
9		Oil & Gas Net Sales Volumes Per Day and Realized Prices
		● MBOE/D
		● Realized Prices and Related Index Prices
10		Oil and Gas Metrics
11		WES Financial Information

 

 

SCHEDULE 1

 

Occidental Petroleum Corporation

Summary Highlights

 

				2018																			2019
Quarterly				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Net Income (Loss)
Reported income (loss) attributable to common stockholders ($ millions)				$	708			$	848			$	1,869			$	706		$	4,131			$	631			$	635			$	(912	)		$	(1,339	)	$	(985	)
Reported EPS - Diluted ($/share)				$	0.92			$	1.10			$	2.44			$	0.93		$	5.39			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)	$	(1.22	)
Effective tax rate on reported income (loss) (%)					32	%			26	%			28	%			15	%		26	%			26	%			33	%			(19	)%			-5	%		373	%
Adjusted income attributable to common stockholders (Non-GAAP) ($ millions)		(a)		$	708			$	848			$	1,360			$	922		$	3,838			$	631			$	729			$	93			$	(269	)	$	1,184
Adjusted EPS - Diluted (Non-GAAP) ($/share)		(b)		$	0.92			$	1.10			$	1.77			$	1.22		$	5.01			$	0.84			$	0.97			$	0.11			$	(0.30	)	$	1.45
Effective tax rate on adjusted income (loss) (%)					32	%			26	%			27	%			12	%		25	%			26	%			30	%			51	%			84	%		36	%
Average Shares Outstanding
Basic (millions)					765.6				765.7				761.7				753.8			761.7				748.9				748.3				845.7				894.9			809.5
Diluted (millions)					767.0				767.4				763.3				755.4			763.3				750.5				749.5				845.7				894.9			809.5
Daily Production Volumes
Total US (MBOE/D)					336				358				384				410			372				421				446				835				1,145			714
US Oil (MBBL/D)					228				240				256				274			250				277				289				486				642			425
Worldwide - Reported (MBOE/D)					609				639				681				700			658				719				741				1,155				1,491			1,029
Worldwide - Continuing Operations (MBOE/D)					609				639				681				700			658				719				741				1,114				1,402			996
Worldwide Sales - Continuing Operations (MBOE/D)					610				622				696				702			658				713				744				1,116				1,400			996
Commodity Price Realizations
Worldwide oil ($/BBL)				$	61.04			$	63.12			$	62.67			$	56.11		$	60.64			$	52.62			$	58.91			$	56.26			$	56.21		$	56.09
Worldwide NGL ($/BBL)				$	25.35			$	27.21			$	29.55			$	22.88		$	26.25			$	18.14			$	18.00			$	14.96			$	17.78		$	17.06
Domestic gas ($/MCF)				$	2.06			$	1.49			$	1.58			$	1.33		$	1.59			$	1.36			$	0.23			$	1.25			$	1.61		$	1.31
Cash Flows - Continuing Operations ($ millions)
Operating cash flow before working capital (Non-GAAP)		(c)		$	1,697			$	1,988			$	2,553			$	1,875		$	8,113			$	1,832			$	1,771			$	330			$	2,199		$	6,132
Working capital changes					(688	)			(232	)			(149	)			548			(521	)			(884	)			242				2,148				(435	)		1,071
Other, net					-				-				-				77			77				-				-				-				-			-
Operating cash flow				$	1,009			$	1,756			$	2,404			$	2,500		$	7,669			$	948			$	2,013			$	2,478			$	1,764		$	7,203
Capital expenditures				$	(1,032	)		$	(1,287	)		$	(1,319	)		$	(1,337	)	$	(4,975	)		$	(1,259	)		$	(1,211	)		$	(1,714	)		$	(2,171	)	$	(6,355	)
					2018																			2019
Year-to-date					Mar				Jun				Sep				Dec							Mar				Jun				Sep				Dec
Net Income
Reported income attributable to common stockholders ($ millions)				$	708			$	1,556			$	3,425			$	4,131						$	631			$	1,266			$	354			$	(985	)
Reported EPS - Diluted ($/share)				$	0.92			$	2.02			$	4.45			$	5.39						$	0.84			$	1.68			$	0.45			$	(1.22	)
Effective tax rate on reported income (loss) (%)					32	%			29	%			28	%			26	%						26	%			30	%			55	%			373	%
Adjusted income attributable to common stockholders (Non-GAAP) ($ millions)		(a)		$	708			$	1,556			$	2,916			$	3,838						$	631			$	1,360			$	1,453			$	1,184
Adjusted EPS - Diluted (Non-GAAP) ($/share)		(b)		$	0.92			$	2.02			$	3.79			$	5.01						$	0.84			$	1.80			$	1.85			$	1.45
Effective tax rate on adjusted income (loss) (%)					32	%			29	%			28	%			25	%						26	%			29	%			33	%			36	%
Average Shares Outstanding
Basic (millions)					765.6				765.7				764.3				761.7							748.9				748.7				781.1				809.5
Diluted (millions)					767.0				767.2				765.8				763.3							750.5				750.0				782.2				809.5
Daily Production Volumes
Total US (MBOE/D)					336				347				359				372							421				434				569				714
US Oil (MBBL/D)					228				234				241				250							277				283				351				425
Worldwide - Reported (MBOE/D)					609				624				643				658							719				730				874				1,029
Worldwide - Continuing Operations (MBOE/D)					609				624				643				658							719				730				860				996
Worldwide Sales - Continuing Operations (MBOE/D)					610				616				643				658							713				728				859				996
Commodity Price Realizations
Worldwide oil ($/BBL)				$	61.04			$	62.07			$	62.29			$	60.64						$	52.62			$	55.86			$	56.02			$	56.09
Worldwide NGL ($/BBL)				$	25.35			$	26.34			$	27.54			$	26.25						$	18.14			$	18.07			$	16.62			$	17.06
Domestic gas ($/MCF)				$	2.06			$	1.76			$	1.70			$	1.59						$	1.36			$	0.77			$	1.05			$	1.31
Cash Flows - Continuing Operations ($ millions)
Operating cash flows before working capital (Non-GAAP)		(c)		$	1,697			$	3,685			$	6,238			$	8,113						$	1,832			$	3,603			$	3,933			$	6,132
Working capital changes					(688	)			(920	)			(1,069	)			(521	)						(884	)			(642	)			1,506				1,071
Other, net					-				-				-				77							-				-				-				-
Operating cash flow				$	1,009			$	2,765			$	5,169			$	7,669						$	948			$	2,961			$	5,439			$	7,203
Capital expenditures				$	(1,032	)		$	(2,319	)		$	(3,638	)		$	(4,975	)					$	(1,259	)		$	(2,470	)		$	(4,184	)		$	(6,355	)

 

(a) See schedule 3 for non-GAAP reconciliation.

(b) See schedule 4 for non-GAAP reconciliation.

(c) See schedule 7 for non-GAAP reconciliation.

 

 

 

SCHEDULE 2

 

Occidental Petroleum Corporation

Items Affecting Comparability Detail

(Amounts in millions)

 

		2018																			2019
Before Tax Allocations		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Domestic
Asset impairments		$	-			$	-			$	-			$	-		$	-			$	-			$	-			$	(285	)		$	(3	)	$	(288	)
Asset sales gains, net			-				-											-				-				-				-				475			475
Oil collars MTM			-				-				-				-			-				-				-				75				(182	)		(107	)
			-				-				-				-			-				-				-				(210	)			290			80
Foreign
Asset impairments			-				-				(196	)			(220	)		(416	)			-				-				(40	)			1			(39	)
			-				-				(196	)			(220	)		(416	)			-				-				(40	)			1			(39	)
Total Oil and Gas			-				-				(196	)			(220	)		(416	)			-				-				(250	)			291			41
Chemical
No items affecting comparability			-				-				-				-			-				-				-				-				-			-
Total Chemical			-				-				-				-			-				-				-				-				-			-
Marketing & Midstream
Asset and equity investment sales gains, net			-				-				902				5			907				-				-				111				3			114
WES stand up and other asset impairments			-				-				-				-			-				-				-				-				(1,002	)		(1,002	)
Interest rate swap MTM, net			-				-				-				-			-				-				-				-				30			30
Total Marketing & Midstream			-				-				902				5			907				-				-				111				(969	)		(858	)
Corporate
Anadarko acquisition-related costs			-				-				-				-			-				-				(50	)			(924	)			(673	)		(1,647	)
Bridge loan financing fees			-				-				-				-			-				-				(57	)			(65	)			-			(122	)
Other acquisition-related pension and termination benefits			-				-				-				-			-				-				-				20				17			37
Interest rate swap MTM, net			-				-				-				-			-				-				-				(53	)			175			122
Other charges and asset impairments			-				-				-				-			-				-				-				-				(22	)		(22	)
Warrants gains MTM			-				-				-				-			-				-				-				20				61			81
Total Corporate			-				-				-				-			-				-				(107	)			(1,002	)			(442	)		(1,551	)
State tax rate revaluation			-				-				-				-			-				-				-				(23	)			5			(18	)
Income taxes			-				-				(197	)			(1	)		(198	)			-				13				174				58			245
Income (loss) from continuing operations			-				-				509				(216	)		293				-				(94	)			(990	)			(1,057	)		(2,141	)
Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				-				(13	)		(13	)
Discontinued operations, net of taxes			-				-				-				-			-				-				-				(15	)			-			(15	)
Totals		$	-			$	-			$	509			$	(216	)	$	293			$	-			$	(94	)		$	(1,005	)		$	(1,070	)	$	(2,169	)
		2018																			2019
After Tax Allocations		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Domestic
Asset impairments		$	-			$	-			$	-			$	-		$	-			$	-			$	-			$	(223	)		$	(1	)	$	(224	)
Asset and equity investment sales gains			-				-											-				-				-				-				369			369
Oil collars MTM			-				-				-				-			-				-				-				58				(141	)		(83	)
			-				-				-				-			-				-				-				(165	)			227			62
Foreign
Asset impairments			-				-				(196	)			(220	)		(416	)			-				-				(40	)			1			(39	)
			-				-				(196	)			(220	)		(416	)			-				-				(40	)			1			(39	)
Total Oil and Gas			-				-				(196	)			(220	)		(416	)			-				-				(205	)			228			23
Chemical
No items affecting comparability			-				-				-				-			-				-				-				-				-			-
Total Chemical			-				-				-				-			-				-				-				-				-			-
Marketing & Midstream
Asset and equity sales gains			-				-				705				4			709				-				-				87				2			89
WES stand up and other asset impairments			-				-				-				-			-				-				-				-				(997	)		(997	)
Interest rate swap MTM, net			-				-				-				-			-				-				-				-				26			26
Total Marketing & Midstream			-				-				705				4			709				-				-				87				(969	)		(882	)
Corporate
Anadarko acquisition-related costs			-				-				-				-			-				-				(50	)			(792	)			(514	)		(1,356	)
Bridge loan financing fees			-				-				-				-			-				-				(44	)			(51	)			-			(95	)
Other acquisition-related pension and termination benefits			-				-				-				-			-				-				-				16				13			29
Interest rate swap MTM, net			-				-				-				-			-				-				-				(42	)			137			95
Other charges and asset impairments			-				-				-				-			-				-				-				-				(18	)		(18	)
Warrants gains MTM			-				-				-				-			-				-				-				20				61			81
Total Corporate			-				-				-				-			-				-				(94	)			(849	)			(321	)		(1,264	)
State tax rate revaluation			-				-				-				-			-				-				-				(23	)			5			(18	)
Income (loss) from continuing operations			-				-				509				(216	)		293				-				(94	)			(990	)			(1,057	)		(2,141	)
Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				-				(13	)		(13	)
Discontinued operations, net of taxes			-				-				-				-			-				-				-				(15	)			-			(15	)
Totals		$	-			$	-			$	509			$	(216	)	$	293			$	-			$	(94	)		$	(1,005	)		$	(1,070	)	$	(2,169	)

 

 

 

SCHEDULE 3

 

Occidental Petroleum Corporation

Segment Results Before Tax Allocations

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

 

		2018																			2019
Reported Income (Loss)		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Domestic		$	255			$	300			$	209			$	(143	)	$	621			$	54			$	153			$	(79	)		$	710		$	838
Foreign			502				495				571				328			1,896				454				596				344				289			1,683
Exploration			(7	)			(15	)			(13	)			(40	)		(75	)			(24	)			(23	)			(44	)			(78	)		(169	)
			750				780				767				145			2,442				484				726				221				921			2,352
Chemical			298				317				321				223			1,159				265				208				207				119			799
Marketing & Midstream			179				250				1,698				675			2,802				279				331				400				(769	)		241
Segment income			1,227				1,347				2,786				1,043			6,403				1,028				1,265				828				271			3,392
Corporate
Interest			(92	)			(91	)			(92	)			(81	)		(356	)			(83	)			(143	)			(360	)			(416	)		(1,002	)
Other			(88	)			(106	)			(115	)			(130	)		(439	)			(89	)			(181	)			(1,089	)			(845	)		(2,204	)
Income (loss) from continuing operations before taxes			1,047				1,150				2,579				832			5,608				856				941				(621	)			(990	)		186
Taxes
Federal and state			(95	)			(76	)			(362	)			70			(463	)			(74	)			(38	)			181				(35	)		34
Foreign			(244	)			(226	)			(348	)			(196	)		(1,014	)			(151	)			(268	)			(297	)			(11	)		(727	)
Income (loss) from continuing operations			708				848				1,869				706			4,131				631				635				(737	)			(1,036	)		(507	)
Discontinued operations, net of taxes			-				-				-				-			-				-				-				(15	)			-			(15	)
Net income (loss)			708				848				1,869				706			4,131				631				635				(752	)			(1,036	)		(522	)
Less: Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				(42	)			(103	)		(145	)
Less: Preferred stock dividends			-				-				-				-			-				-				-				(118	)			(200	)		(318	)
Net income (loss) attributable to common stockholders		$	708			$	848			$	1,869			$	706		$	4,131			$	631			$	635			$	(912	)		$	(1,339	)	$	(985	)
Reported diluted earnings per share		$	0.92			$	1.10			$	2.44			$	0.93		$	5.39			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)	$	(1.22	)
Effective Tax Rate			32	%			26	%			28	%			15	%		26	%			26	%			33	%			(19	)%			(5	)%		373	%
Items Affecting Comparability		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Domestic		$	-			$	-			$	-			$	-		$	-			$	-			$	-			$	(210	)		$	290		$	80
Foreign			-				-				(196	)			(220	)		(416	)			-				-				(40	)			1			(39	)
Exploration			-				-				-				-			-				-				-				-				-			-
			-				-				(196	)			(220	)		(416	)			-				-				(250	)			291			41
Chemical			-				-				-				-			-				-				-				-				-			-
Marketing & Midstream			-				-				902				5			907				-				-				111				(969	)		(858	)
Segment income (loss)			-				-				706				(215	)		491				-				-				(139	)			(678	)		(817	)
Corporate
Interest			-				-				-				-			-				-				(57	)			(65	)			-			(122	)
Other			-				-				-				-			-				-				(50	)			(937	)			(442	)		(1,429	)
Income (loss) from continuing operations before taxes			-				-				706				(215	)		491				-				(107	)			(1,141	)			(1,120	)		(2,368	)
Taxes
Federal and state			-				-				(197	)			(1	)		(198	)			-				13				151				63			227
Foreign			-				-				-				-			-				-				-				-				-			-
Income (loss) from continuing operations			-				-				509				(216	)		293				-				(94	)			(990	)			(1,057	)		(2,141	)
Discontinued operations, net of taxes			-				-				-				-			-				-				-				(15	)			-			(15	)
Net income (loss)			-				-				509				(216	)		293				-				(94	)			(1,005	)			(1,057	)		(2,156	)
Less: Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				-				(13	)		(13	)
Less: Preferred stock dividends			-				-				-				-			-				-				-				-				-			-
Net income (loss) attributable to common stockholders		$	-			$	-			$	509			$	(216	)	$	293			$	-			$	(94	)		$	(1,005	)		$	(1,070	)	$	(2,169	)
Adjusted Income (Loss) (Non-GAAP) (a)		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Domestic		$	255			$	300			$	209			$	(143	)	$	621			$	54			$	153			$	131			$	420		$	758
Foreign			502				495				767				548			2,312				454				596				384				288			1,722
Exploration			(7	)			(15	)			(13	)			(40	)		(75	)			(24	)			(23	)			(44	)			(78	)		(169	)
			750				780				963				365			2,858				484				726				471				630			2,311
Chemical			298				317				321				223			1,159				265				208				207				119			799
Marketing & Midstream			179				250				796				670			1,895				279				331				289				200			1,099
Adjusted segment income			1,227				1,347				2,080				1,258			5,912				1,028				1,265				967				949			4,209
Corporate
Interest			(92	)			(91	)			(92	)			(81	)		(356	)			(83	)			(86	)			(295	)			(416	)		(880	)
Other			(88	)			(106	)			(115	)			(130	)		(439	)			(89	)			(131	)			(152	)			(403	)		(775	)
Adjusted income from continuing operations before taxes			1,047				1,150				1,873				1,047			5,117				856				1,048				520				130			2,554
Taxes
Federal and state			(95	)			(76	)			(165	)			71			(265	)			(74	)			(51	)			30				(98	)		(193	)
Foreign			(244	)			(226	)			(348	)			(196	)		(1,014	)			(151	)			(268	)			(297	)			(11	)		(727	)
Adjusted income			708				848				1,360				922			3,838				631				729				253				21			1,634
Less: Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				(42	)			(90	)		(132	)
Less: Preferred stock dividends			-				-				-				-			-				-				-				(118	)			(200	)		(318	)
Adjusted income (loss) attributable to common stockholders		$	708			$	848			$	1,360			$	922		$	3,838			$	631			$	729			$	93			$	(269	)	$	1,184
Adjusted diluted earnings per share (Non-GAAP)		$	0.92			$	1.10			$	1.77			$	1.22		$	5.01			$	0.84			$	0.97			$	0.11			$	(0.30	)	$	1.45
Effective Tax Rate			32	%			26	%			27	%			12	%		25	%			26	%			30	%			51	%			84	%		36	%

 

(a) Non-GAAP Measure

Adjusted income is a non-GAAP measure. Occidental defines adjusted income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. 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 net income is considered representative of management’s performance over the long term, and adjusted income is not considered to be an alternative to net income reported in accordance with GAAP.

 

 

 

SCHEDULE 4

 

Occidental Petroleum Corporation

Segment Results After Tax Allocations

(Amounts in millions, except per share amounts)

 

		2018																				2019
Reported Income (Loss)		Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY
Oil & Gas
Domestic		$	199			$	233			$	163			$	(111	)		$	484			$	42			$	119			$	(63	)		$	554			$	652
Foreign			255				247				260				62				824				248				351				165				179				943
Exploration			(7	)			(12	)			(11	)			(34	)			(64	)			(22	)			(21	)			(40	)			(72	)			(155	)
			447				468				412				(83	)			1,244				268				449				62				661				1,440
Chemical			230				247				248				160				885				205				159				161				83				608
Marketing & Midstream			146				209				1,342				541				2,238				227				274				352				(809	)			44
Segment income			823				924				2,002				618				4,367				700				882				575				(65	)			2,092
Corporate
Interest			(92	)			(91	)			(92	)			(81	)			(356	)			(83	)			(130	)			(295	)			(416	)			(924	)
Other			(88	)			(106	)			(115	)			(130	)			(439	)			(89	)			(181	)			(1,024	)			(845	)			(2,139	)
Taxes			65				121				74				299				559				103				64				7				290				464
Income (loss) from continuing operations			708				848				1,869				706				4,131				631				635				(737	)			(1,036	)			(507	)
Discontinued operations, net of taxes			-				-				-				-				-				-				-				(15	)			-				(15	)
Net income (loss)			708				848				1,869				706				4,131				631				635				(752	)			(1,036	)			(522	)
Less: Net income attributable to noncontrolling interests			-				-				-				-				-				-				-				(42	)			(103	)			(145	)
Less: Preferred stock dividends			-				-				-				-				-				-				-				(118	)			(200	)			(318	)
Net income (loss) attributable to common stockholders		$	708			$	848			$	1,869			$	706			$	4,131			$	631			$	635			$	(912	)		$	(1,339	)		$	(985	)
Reported diluted earnings per share		$	0.92			$	1.10			$	2.44			$	0.93			$	5.39			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)		$	(1.22	)
Items Affecting Comparability		Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY
Oil & Gas
Domestic		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	(165	)		$	227			$	62
Foreign			-				-				(196	)			(220	)			(416	)			-				-				(40	)			1				(39	)
Exploration			-				-				-				-				-				-				-				-				-				-
			-				-				(196	)			(220	)			(416	)			-				-				(205	)			228				23
Chemical			-				-				-				-				-				-				-				-				-				-
Marketing & Midstream			-				-				705				4				709				-				-				87				(969	)			(882	)
Segment income (loss)			-				-				509				(216	)			293				-				-				(118	)			(741	)			(859	)
Corporate
Interest			-				-				-				-				-				-				(44	)			(51	)			-				(95	)
Other			-				-				-				-				-				-				(50	)			(798	)			(321	)			(1,169	)
Taxes			-				-				-				-				-				-				-				(23	)			5				(18	)
Income (loss) from continuing operations			-				-				509				(216	)			293				-				(94	)			(990	)			(1,057	)			(2,141	)
Discontinued operations, net of taxes			-				-				-				-				-				-				-				(15	)			-				(15	)
Net income (loss)			-				-				509				(216	)			293				-				(94	)			(1,005	)			(1,057	)			(2,156	)
Less: Net income attributable to noncontrolling interests			-				-				-				-				-				-				-				-				(13	)			(13	)
Less: Preferred stock dividends			-				-				-				-				-				-				-				-				-				-
Net income (loss) attributable to common stockholders		$	-			$	-			$	509			$	(216	)		$	293			$	-			$	(94	)		$	(1,005	)		$	(1,070	)		$	(2,169	)
Adjusted Income (Loss) (Non-GAAP)		Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY
Oil & Gas
Domestic		$	199			$	233			$	163			$	(111	)		$	484			$	42			$	119			$	102			$	327			$	590
Foreign			255				247				456				282				1,240				248				351				205				178				982
Exploration			(7	)			(12	)			(11	)			(34	)			(64	)			(22	)			(21	)			(40	)			(72	)			(155	)
			447				468				608				137				1,660				268				449				267				433				1,417
Chemical			230				247				248				160				885				205				159				161				83				608
Marketing & Midstream			146				209				637				537				1,529				227				274				265				160				926
Segment income			823				924				1,493				834				4,074				700				882				693				676				2,951
Corporate
Interest			(92	)			(91	)			(92	)			(81	)			(356	)			(83	)			(86	)			(244	)			(416	)			(829	)
Other			(88	)			(106	)			(115	)			(130	)			(439	)			(89	)			(131	)			(226	)			(524	)			(970	)
Taxes			65				121				74				299				559				103				64				30				285				482
Adjusted income			708				848				1,360				922				3,838				631				729				253				21				1,634
Less: Adjusted income attributable to noncontrolling interests			-				-				-				-				-				-				-				(42	)			(90	)			(132	)
Less: Preferred stock dividends			-				-				-				-				-				-				-				(118	)			(200	)			(318	)
Adjusted income (loss) attributable to common stockholders		$	708			$	848			$	1,360			$	922			$	3,838			$	631			$	729			$	93			$	(269	)		$	1,184
Adjusted diluted earnings per share (Non-GAAP)		$	0.92			$	1.10			$	1.77			$	1.22			$	5.01			$	0.84			$	0.97			$	0.11			$	(0.30	)		$	1.45
Reconciliation - Diluted Earnings Per Share
Reported Diluted Earnings Per Share (GAAP)		$	0.92			$	1.10			$	2.44			$	0.93			$	5.39			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)		$	(1.22	)
After-Tax Adjustments for Items Affecting Comparability
Oil & Gas
Domestic		$	-			$	-			$	-			$	-			$	-			$	-			$	-			$	(0.19	)		$	0.25			$	0.08
Foreign			-				-				(0.26	)			(0.29	)			(0.55	)			-				-				(0.05	)			-				(0.05	)
Exploration			-				-				-				-				-				-				-				-				-				-
Chemical			-				-				-				-				-				-				-				-				-				-
Marketing & Midstream			-				-				0.93				-				0.93				-				-				0.10				(1.09	)			(1.09	)
WES			-				-				-				-				-				-				-				-								-
Corporate
Interest			-				-				-				-				-				-				(0.06	)			(0.06	)			-				(0.12	)
Other			-				-				-				-				-				-				(0.07	)			(0.94	)			(0.36	)			(1.44	)
Taxes			-				-				-				-				-				-				-				(0.03	)			0.01				(0.02	)
Discontinued Operations			-				-				-				-				-				-				-				(0.02	)			-				(0.02	)
Net income attributable to noncontrolling interests			-				-				-				-				-				-				-				-				(0.01	)			(0.01	)
Total After-Tax Adjustments for Items Affecting Comparability		$	-			$	-			$	0.67			$	(0.29	)		$	0.38			$	-			$	(0.13	)		$	(1.19	)		$	(1.20	)		$	(2.67	)
Adjusted Diluted Earnings Per Share (Non-GAAP)		$	0.92			$	1.10			$	1.77			$	1.22			$	5.01			$	0.84			$	0.97			$	0.11			$	(0.30	)		$	1.45
Average Diluted Shares Outstanding (millions)			767.0				767.4				763.3				755.4				763.3				750.5				749.5				845.7				894.9				809.5

 

The difference between reported average diluted shares outstanding and adjusted average diluted shares outstanding is immaterial and does not impact the calculation of adjusted earnings per share. As such, adjusted earnings per share is calculated as adjusted income (loss) divided by reported average diluted shares outstanding.

 

 

SCHEDULE 5

 

Occidental Petroleum Corporation

Consolidated Condensed Statements of Operations

(Amounts in millions, except per-share amounts)

 

		2018																			2019
		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
REVENUES AND OTHER INCOME
Net sales
Oil & Gas		$	2,454			$	2,531			$	2,889			$	2,567		$	10,441			$	2,351			$	2,718			$	3,821			$	4,533		$	13,423
Chemical			1,154				1,176				1,185				1,142			4,657				1,059				998				1,071				974			4,102
Marketing & Midstream			389				603				1,367				1,297			3,656				816				909				1,163				1,244			4,132
Eliminations			(234	)			(227	)			(225	)			(244	)		(930	)			(222	)			(205	)			(368	)			(469	)		(1,264	)
			3,763				4,083				5,216				4,762			17,824				4,004				4,420				5,687				6,282			20,393
Interest, dividends and other income			29				38				34				35			136				78				41				56				42			217
Gains on sale of assets, net			33				10				926				5			974				7				15				128				472			622
			3,825				4,131				6,176				4,802			18,934				4,089				4,476				5,871				6,796			21,232
COSTS AND OTHER DEDUCTIONS
Oil and gas operating expense			613				616				680				852			2,761				645				717				962				922			3,246
Transportation expense			43				38				41				30			152				31				33				217				340			621
Chemical and midstream costs of sales			694				711				722				706			2,833				669				636				741				745			2,791
Purchased commodities			13				100				343				366			822				365				431				441				442			1,679
Selling, general and administrative			130				142				151				162			585				140				163				242				337			882
Other operating and non-opertating expense			177				260				280				311			1,028				238				260				363				564			1,425
Taxes other than on income			108				115				110				106			439				111				123				198				275			707
Depreciation, depletion and amortization			921				947				1,023				1,086			3,977				973				1,031				1,706				2,271			5,981
Asset impairments and other charges			30				12				214				305			561				-				-				325				1,036			1,361
Anadarko acquisition-related costs			-				-				-				-			-				-				50				924				673			1,647
Exploration expense			15				21				24				50			110				36				35				63				112			246
Interest and debt expense, net			97				97				96				99			389				98				153				381				434			1,066
			2,841				3,059				3,684				4,073			13,657				3,306				3,632				6,563				8,151			21,652
INCOME (LOSS) BEFORE INCOME TAXES AND OTHER ITEMS			984				1,072				2,492				729			5,277				783				844				(692	)			(1,355	)		(420	)
OTHER ITEMS
Gains (losses) on interest rate swaps and warrants, net			-				-				-				-			-				-				-				(33	)			266			233
Income from equity investments			63				78				87				103			331				73				97				104				99			373
			63				78				87				103			331				73				97				71				365			606
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES			1,047				1,150				2,579				832			5,608				856				941				(621	)			(990	)		186
Income tax expense			(339	)			(302	)			(710	)			(126	)		(1,477	)			(225	)			(306	)			(116	)			(46	)		(693	)
INCOME (LOSS) FROM CONTINUING OPERATIONS			708				848				1,869				706			4,131				631				635				(737	)			(1,036	)		(507	)
Discontinued operations, net of taxes			-				-				-				-			-				-				-				(15	)			-			(15	)
NET INCOME (LOSS)			708				848				1,869				706			4,131				631				635				(752	)			(1,036	)		(522	)
Less: Net income attributable to noncontrolling interests			-				-				-				-			-				-				-				(42	)			(103	)		(145	)
Less: Preferred stock dividend			-				-				-				-			-				-				-				(118	)			(200	)		(318	)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS		$	708			$	848			$	1,869			$	706		$	4,131			$	631			$	635			$	(912	)		$	(1,339	)	$	(985	)
EARNINGS PER SHARE
BASIC EARNINGS PER COMMON SHARE
Income (loss) from continuing operations		$	0.92			$	1.10			$	2.44			$	0.93		$	5.40			$	0.84			$	0.84			$	(1.06	)		$	(1.50	)	$	(1.20	)
Discontinued operations, net			-				-				-				-			-				-				-				(0.02	)			-			(0.02	)
BASIC EARNINGS PER COMMON SHARE		$	0.92			$	1.10			$	2.44			$	0.93		$	5.40			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)	$	(1.22	)
DILUTED EARNINGS PER COMMON SHARE		$	0.92			$	1.10			$	2.44			$	0.93		$	5.39			$	0.84			$	0.84			$	(1.08	)		$	(1.50	)	$	(1.22	)
DIVIDENDS PER COMMON SHARE		$	0.77			$	0.77			$	0.78			$	0.78		$	3.10			$	0.78			$	0.78			$	0.79			$	0.79		$	3.14
AVERAGE COMMON SHARES OUTSTANDING
BASIC			765.6				765.7				761.7				753.8			761.7				748.9				748.3				845.7				894.9			809.5
DILUTED			767.0				767.4				763.3				755.4			763.3				750.5				749.5				845.7				894.9			809.5

 

 

 

SCHEDULE 6

 

Occidental Petroleum Corporation

Consolidated Condensed Balance Sheets 

(Amounts in millions)

 

		2018																2019
		MAR				JUN				SEP				DEC				MAR				JUN				SEP				DEC
CURRENT ASSETS
Cash and cash equivalents		$	1,606			$	1,362			$	2,954			$	3,033			$	1,752			$	1,751			$	4,840			$	3,032
Restricted cash and restricted cash equivalents			-				-				-				-				-				-				454				480
Trade receivables, net			5,184				5,521				6,000				4,893				5,310				5,273				5,854				6,373
Inventories			1,057				1,347				1,009				1,260				1,484				1,582				1,601				1,447
Assets held for sale			335				1,664				-				-				-				-				6,445				6,026
Other current assets			712				1,096				1,149				746				724				819				1,750				1,323
Total current assets			8,894				10,990				11,112				9,932				9,270				9,425				20,944				18,681
INVESTMENTS IN UNCONSOLIDATED ENTITIES			1,509				1,551				1,568				1,680				1,725				1,777				3,684				6,389
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment			71,262				71,214				72,980				74,420				75,813				77,004				136,925				122,347
Accumulated depreciation, depletion and amortization			(39,918	)			(40,782	)			(41,825	)			(42,983	)			(43,913	)			(44,889	)			(46,804	)			(41,878	)
			31,344				30,432				31,155				31,437				31,900				32,115				90,121				80,469
OPERATING LEASE ASSETS			-				-				-				-				684				681				1,078				1,385
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET			1,053				1,086				1,114				797				793				765				1,155				2,406
INTANGIBLES, NET			8				8				8				8				8				7				2,387				-
GOODWILL - WES Midstream			-				-				-				-				-				-				6,074				-
TOTAL ASSETS		$	42,808			$	44,067			$	44,957			$	43,854			$	44,380			$	44,770			$	125,443			$	109,330
CURRENT LIABILITIES
Current maturities of long-term debt		$	-			$	-			$	116			$	116			$	116			$	116			$	31			$	51
Current operating lease liabilities			-				-				-				-				240				252				463				569
Accounts payable			5,059				5,412				5,443				4,885				5,261				5,445				6,789				7,017
Accrued liabilities			2,011				2,521				2,813				2,411				1,920				2,067				5,175				5,302
Accrued income taxes			-				-				-				-				-				-				1,036				-
Liabilities of assets held for sale			-				145				-				-				-				-				2,203				2,010
Total current liabilities			7,070				8,078				8,372				7,412				7,537				7,880				15,697				14,949
LONG-TERM DEBT, NET
Long-term debt, net - Occidental			10,309				10,312				10,198				10,201				10,203				10,155				39,946				38,537
Long-term debt, net - WES Midstream			-				-				-				-				-				-				7,637				-
			10,309				10,312				10,198				10,201				10,203				10,155				47,583				38,537
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes			659				738				1,162				907				918				950				9,920				9,717
Asset retirement obligations			1,248				1,244				1,249				1,424				1,430				1,433				4,164				4,385
Pension and postretirement obligations			1,008				1,010				828				809				816				819				1,927				1,807
Environmental remediation reserves			729				731				740				762				755				764				905				1,035
Operating lease liabilities			-				-				-				-				465				445				676				854
Other			1,063				1,023				919				1,009				1,020				977				3,566				3,814
			4,707				4,746				4,898				4,911				5,404				5,388				21,158				21,612
EQUITY
Preferred stock, $1.00 per share par value			-				-				-				-				-				-				9,762				9,762
Common stock, $.20 per share par value			179				179				179				179				179				179				209				209
Treasury stock			(9,168	)			(9,268	)			(10,162	)			(10,473	)			(10,653	)			(10,653	)			(10,653	)			(10,653	)
Additional paid-in capital			7,916				7,967				7,991				8,046				8,083				8,157				14,867				14,955
Retained earnings			22,107				22,361				23,635				23,750				23,795				23,848				22,227				20,180
Accumulated other comprehensive loss			(312	)			(308	)			(154	)			(172	)			(168	)			(184	)			(332	)			(221	)
Total stockholder's equity			20,722				20,931				21,489				21,330				21,236				21,347				36,080				34,232
Noncontrolling interest			-				-				-				-				-				-				4,925				-
Total equity			20,722				20,931				21,489				21,330				21,236				21,347				41,005				34,232
TOTAL LIABILITIES AND EQUITY		$	42,808			$	44,067			$	44,957			$	43,854			$	44,380			$	44,770			$	125,443			$	109,330

 

 

 

SCHEDULE 7

 

Occidental Petroleum Corporation

Consolidated Condensed Statements of Cash Flows and Detail of CAPEX and DD&A

(Amounts in millions)

 

		2018																			2019
		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
OPERATING CASH FLOW FROM CONTINUING OPERATIONS
Net income (loss)		$	708			$	848			$	1,869			$	706		$	4,131			$	631			$	635			$	(752	)		$	(1,036	)	$	(522	)
Depreciation, depletion and amortization (see detail below)			921				947				1,023				1,086			3,977				973				1,031				1,706				2,271			5,981
Deferred income tax (benefit) provision			94				77				379				(179	)		371				10				37				(1,097	)			23			(1,027	)
Asset impairments and other non-cash charges			(26	)			116				(718	)			262			(366	)			218				68				473				941			1,700
Operating cash flow from continuing operations before working capital (NON-GAAP) (see below)			1,697				1,988				2,553				1,875			8,113				1,832				1,771				330				2,199			6,132
Working capital changes			(688	)			(232	)			(149	)			548			(521	)			(884	)			242				2,148				(435	)		1,071
Other, net			-				-				-				77			77				-				-				-				-			-
Operating cash flow from continuing operations (GAAP)			1,009				1,756				2,404				2,500			7,669				948				2,013				2,478				1,764			7,203
INVESTING CASH FLOW FROM CONTINUING OPERATIONS
Capital expenditures (see detail below)			(1,032	)			(1,287	)			(1,319	)			(1,337	)		(4,975	)			(1,259	)			(1,211	)			(1,714	)			(2,171	)		(6,355	)
Payments for purchases of assets and businesses			(177	)			(65	)			(484	)			(202	)		(928	)			(69	)			(7	)			(27,850	)			(162	)		(28,088	)
Sales of assets, net			275				55				2,415				79			2,824				16				16				4,777				1,334			6,143
Changes in capital accrual			(45	)			39				13				48			55				(51	)			(57	)			(52	)			(122	)		(282	)
Other investing activities			8				(57	)			(39	)			(94	)		(182	)			(52	)			(29	)			(59	)			(151	)		(291	)
Investing cash flow from continuing operations			(971	)			(1,315	)			586				(1,506	)		(3,206	)			(1,415	)			(1,288	)			(24,898	)			(1,272	)		(28,873	)
FINANCING CASH FLOW FROM CONTINUING OPERATIONS
Cash dividends paid			(592	)			(593	)			(595	)			(594	)		(2,374	)			(591	)			(587	)			(588	)			(858	)		(2,624	)
Purchases of treasury stock			-				(97	)			(811	)			(340	)		(1,248	)			(237	)			-				-				-			(237	)
Proceeds from debt - Occidental			978				-				-				-			978				-				(108	)			21,665				-			21,557
Proceeds from debt - WES Midstream			-				-				-				-			-				-				-				1,240				219			1,459
Payments of debt - Occidental			(500	)			-				-				-			(500	)			-				-				(4,949	)			(2,010	)		(6,959	)
Payments of debt - WES Midstream			-				-				-				-			-				-				-				(1,000	)			-			(1,000	)
WES Midstream distribution to noncontrolling interests			-				-				-				-			-				-				-				(127	)			(130	)		(257	)
Proceeds from issuance of preferred stock			-				-				-				-			-				-				(50	)			10,000				-			9,950
Other financing activities			10				5				8				19			42				14				19				(8	)			282			307
Financing cash flow from continuing operations			(104	)			(685	)			(1,398	)			(915	)		(3,102	)			(814	)			(726	)			26,233				(2,497	)		22,196
Cash Flow From Discontinued Operations			-				-				-				-			-				-				-				(199	)			214			15
Increase (decrease) in cash and cash equivalents and restricted cash and restricted cash equivalents			(66	)			(244	)			1,592				79			1,361				(1,281	)			(1	)			3,614				(1,791	)		541
Cash and cash equivalents and restricted cash and restricted cash equivalents - beginning  of period			1,672				1,606				1,362				2,954			1,672				3,033				1,752				1,751				5,365			3,033
Cash and cash equivalents and restricted cash and cash equivalents - end of period		$	1,606			$	1,362			$	2,954			$	3,033		$	3,033			$	1,752			$	1,751			$	5,365			$	3,574		$	3,574
Capital Expenditures		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
Permian Resources		$	(574	)		$	(742	)		$	(783	)		$	(674	)	$	(2,773	)		$	(775	)		$	(747	)		$	(905	)		$	(887	)	$	(3,314	)
Permian EOR			(124	)			(116	)			(119	)			(159	)		(518	)			(133	)			(135	)			(121	)			(116	)		(505	)
DJ Basin			-				-				-				-			-				-				-				(110	)			(210	)		(320	)
Gulf of Mexico			-				-				-				-			-				-				-				(47	)			(140	)		(187	)
Other Domestic			(4	)			(2	)			-				(3	)		(9	)			(6	)			(5	)			(24	)			(46	)		(81	)
Latin America			(28	)			(59	)			(54	)			(71	)		(212	)			(34	)			(35	)			(49	)			(55	)		(173	)
Middle East			(174	)			(180	)			(160	)			(151	)		(665	)			(155	)			(153	)			(135	)			(124	)		(567	)
Exploration Drilling			(36	)			(25	)			(48	)			(127	)		(236	)			(77	)			(40	)			(75	)			(161	)		(353	)
Chemical			(41	)			(60	)			(74	)			(96	)		(271	)			(38	)			(54	)			(56	)			(119	)		(267	)
Marketing & Midstream			(44	)			(81	)			(68	)			(23	)		(216	)			(26	)			(26	)			(161	)			(248	)		(461	)
Corporate			(7	)			(22	)			(13	)			(33	)		(75	)			(15	)			(16	)			(31	)			(65	)		(127	)
		$	(1,032	)		$	(1,287	)		$	(1,319	)		$	(1,337	)	$	(4,975	)		$	(1,259	)		$	(1,211	)		$	(1,714	)		$	(2,171	)	$	(6,355	)
Depreciation, Depletion and Amortization		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
Oil & Gas
United States		$	502			$	556			$	611			$	652		$	2,321			$	570			$	615			$	1,217			$	1,711		$	4,113
Latin America			27				25				26				24			102				26				37				37				34			134
Middle East			208				183				209				231			831				199				200				196				151			746
Chemical			87				88				89				90			354				89				92				93				94			368
Marketing & Midstream			87				86				78				80			331				79				76				147				262			564
Corporate			10				9				10				9			38				10				11				16				19			56
		$	921			$	947			$	1,023			$	1,086		$	3,977			$	973			$	1,031			$	1,706			$	2,271		$	5,981
Adjusted Operating Cash Flow From Continuing Operations Before Working Capital (Non-GAAP)																													Qtr 3				Qtr 4
Operating cash flow from continuing operations (GAAP)																													$	2,478			$	1,764
Less: Working capital and other, net																														(2,148	)			435
Operating cash flow from continuing operations before working capital (Non-GAAP)																														330				2,199
Add back impacts from:
Tax impact on divestitures																														880				(643	)
Anadarko acquisition-related costs																														924				673
Adjusted operating cash flow from continuing operations before working capital (Non-GAAP)																													$	2,134			$	2,229

 

 

 

                         SCHEDULE 8

 

 Occidental Petroleum Corporation

 Oil & Gas Net Production Volumes Per Day by Geographical Locations  

 TOTAL REPORTED PRODUCTION

 

		2018																				2019
REPORTED NET MBOE VOLUMES PER DAY:		Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY
United States
Permian Resources			177				201				225				250				214				261				289				390				476				355
Permian EOR			154				153				155				156				154				156				153				154				153				154
DJ Basin			-				-				-				-				-				-				-				163				314				120
Gulf of Mexico			-				-				-				-				-				-				-				90				141				58
Other Domestic			5				4				4				4				4				4				4				38				61				27
Total			336				358				384				410				372				421				446				835				1,145				714
Latin America			33				32				31				31				32				33				35				33				35				34
Middle East
Al Hosn			61				68				81				82				73				82				82				80				83				82
Dolphin			36				41				41				40				40				40				40				44				43				42
Oman			85				89				88				84				86				91				86				88				92				89
Qatar			58				51				56				53				55				52				52				34				4				35
Total			240				249				266				259				254				265				260				246				222				248
TOTAL CONTINUING OPERATIONS PRODUCTION			609				639				681				700				658				719				741				1,114				1,402				996
DISCONTINUED OPERATIONS - AFRICA			-				-				-				-				-				-				-				41				89				33
TOTAL REPORTED PRODUCTION			609				639				681				700				658				719				741				1,155				1,491				1,029
REPORTED NET PRODUCTION
VOLUMES PER DAY BY COMMODITY:
United States
Oil (MBBL)
Permian Resources			109				123				139				155				132				157				170				221				273				207
Permian EOR			117				116				116				118				117				118				117				116				117				117
DJ Basin			-				-				-				-				-				-				-				64				120				46
Gulf of Mexico			-				-				-				-				-				-				-				75				117				48
Other Domestic			2				1				1				1				1				2				2				10				15				7
Total			228				240				256				274				250				277				289				486				642				425
NGLs (MBBL)
Permian Resources			31				37				41				45				38				49				58				88				106				74
Permian EOR			28				28				31				30				29				30				29				30				29				30
DJ Basin			-				-				-				-				-				-				-				38				73				28
Gulf of Mexico			-				-				-				-				-				-				-				7				10				4
Other Domestic			-				-				1				-				-				-				-				5				9				4
Total			59				65				73				75				67				79				87				168				227				140
Natural Gas (MMCF)
Permian Resources			222				246				270				300				261				330				364				488				580				442
Permian EOR			56				54				48				48				50				46				44				45				41				44
DJ Basin			-				-				-				-				-				-				-				364				727				275
Gulf of Mexico			-				-				-				-				-				-				-				50				86				34
Other Domestic			16				16				14				17				16				13				11				138				223				98
Total			294				316				332				365				327				389				419				1,085				1,657				893
Latin America
Oil (MBBL)			32				31				30				30				31				32				34				32				34				33
Natural Gas (MMCF)			6				6				6				6				6				7				7				8				8				8
Middle East
Oil (MBBL)
Al Hosn			11				12				14				15				13				14				14				14				14				14
Dolphin			6				7				7				6				7				6				7				7				7				7
Oman			64				65				63				62				63				68				65				66				67				66
Qatar			58				51				56				53				55				52				52				34				4				35
Total			139				135				140				136				138				140				138				121				92				122
NGLs (MBBL)
Al Hosn			19				22				26				26				23				26				26				25				26				26
Dolphin			7				8				8				8				8				8				8				8				8				8
Total			26				30				34				34				31				34				34				33				34				34
Natural Gas (MMCF)
Al Hosn			183				204				246				245				220				250				251				246				257				251
Dolphin			139				156				158				154				152				154				152				171				166				161
Oman			127				146				148				134				139				140				125				133				152				138
Total			449				506				552				533				511				544				528				550				575				550

 

 

SCHEDULE 9

 

Occidental Petroleum Corporation

Oil & Gas Net Sales Volumes Per Day and Realized Prices by Geographical Locations

 

		2018																			2019
NET SALES MBOE VOLUMES PER DAY:		Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4			TY
United States			336				358				384				410			372				421				446				835				1,145			714
Latin America			33				31				32				30			32				28				38				36				33			34
Middle East
Al Hosn			61				68				81				82			73				82				82				80				83			82
Dolphin			37				41				41				41			40				39				41				44				43			42
Oman			85				72				102				86			86				91				85				87				92			89
Qatar			58				52				56				53			55				52				52				34				4			35
Total			241				233				280				262			254				264				260				245				222			248
TOTAL CONTINUING OPERATIONS SALES			610				622				696				702			658				713				744				1,116				1,400			996
DISCONTINUED OPERATIONS - AFRICA			-				-				-				-			-				-				-				41				89			33
TOTAL REPORTED SALES			610				622				696				702			658				713				744				1,157				1,489			1,029
REALIZED PRICES
United States
Oil ($/BBL)		$	61.03			$	61.08			$	56.36			$	48.25		$	56.30			$	48.38			$	55.14			$	54.90			$	56.00		$	54.31
NGLs ($/BBL)		$	26.89			$	28.87			$	31.82			$	23.10		$	27.64			$	16.79			$	16.28			$	13.91			$	17.25		$	16.03
Natural Gas ($/MCF)		$	2.06			$	1.49			$	1.58			$	1.33		$	1.59			$	1.36			$	0.23			$	1.25			$	1.61		$	1.31
Latin America
Oil ($/BBL)		$	59.24			$	65.66			$	69.94			$	62.49		$	64.32			$	55.52			$	62.66			$	54.98			$	54.96		$	57.26
Natural Gas ($/MCF)		$	5.68			$	6.07			$	6.74			$	7.39		$	6.43			$	7.37			$	7.01			$	7.05			$	6.69		$	7.01
Middle East
Oil ($/BBL)		$	61.45			$	66.59			$	71.71			$	70.30		$	67.69			$	60.50			$	65.83			$	62.17			$	58.14		$	61.96
NGLs ($/BBL)		$	21.89			$	23.58			$	24.66			$	22.38		$	23.20			$	21.30			$	22.50			$	20.22			$	21.26		$	21.31
Total Worldwide
Oil ($/BBL)		$	61.04			$	63.12			$	62.67			$	56.11		$	60.64			$	52.62			$	58.91			$	56.26			$	56.21		$	56.09
NGLs ($/BBL)		$	25.35			$	27.21			$	29.55			$	22.88		$	26.25			$	18.14			$	18.00			$	14.96			$	17.78		$	17.06
Natural Gas ($/MCF)		$	1.82			$	1.58			$	1.62			$	1.51		$	1.62			$	1.55			$	1.03			$	1.38			$	1.63		$	1.45
Index Prices
WTI Oil ($/BBL)		$	62.87			$	67.88			$	69.50			$	58.81		$	64.77			$	54.90			$	59.82			$	56.45			$	56.96		$	57.03
Brent Oil ($/BBL)		$	67.18			$	74.90			$	75.97			$	68.08		$	71.53			$	63.90			$	68.32			$	62.01			$	62.50		$	64.18
NYMEX Natural Gas ($/MCF)		$	2.87			$	2.75			$	2.88			$	3.40		$	2.97			$	3.24			$	2.67			$	2.27			$	2.50		$	2.67
Percentage of Index Prices
Worldwide oil as a percentage of WTI			97	%			93	%			90	%			95	%		94	%			96	%			98	%			100	%			99	%		98	%
Worldwide oil as a percentage of Brent			91	%			84	%			82	%			82	%		85	%			82	%			86	%			91	%			90	%		87	%
Worldwide NGL as a percentage of WTI			40	%			40	%			43	%			39	%		41	%			33	%			30	%			27	%			31	%		30	%
Worldwide NGL as a percentage of Brent			38	%			36	%			39	%			34	%		37	%			28	%			26	%			24	%			28	%		27	%
Domestic gas as a percentage of NYMEX			72	%			54	%			55	%			39	%		54	%			42	%			9	%			55	%			64	%		49	%

 

 

 

 

SCHEDULE 10

Occidental Petroleum Corporation

Oil and Gas Metrics

 

		2018																				2019
		Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY				Qtr 1				Qtr 2				Qtr 3				Qtr 4				TY
Lease operating expenses ($/BOE)
United States		$	13.23			$	12.72			$	12.31			$	11.28			$	12.33			$	11.83			$	11.16			$	8.45			$	6.84			$	8.71
Latin America		$	12.00			$	12.12			$	12.70			$	15.60			$	13.08			$	14.00			$	9.94			$	14.58			$	14.68			$	13.18
Middle East		$	9.60			$	10.32			$	9.58			$	11.07			$	10.14			$	9.73			$	9.59			$	11.22			$	9.49			$	10.01
Total Oil and Gas		$	11.73			$	11.80			$	11.23			$	11.38			$	11.52			$	11.14			$	10.55			$	9.26			$	7.45			$	9.19
Transportation costs ($/BOE)
United States		$	0.09			$	0.07			$	0.08			$	0.08			$	0.08			$	0.07			$	0.07			$	2.97			$	3.92			$	2.48
Total Oil and Gas		$	0.51			$	0.46			$	0.46			$	0.44			$	0.47			$	0.42			$	0.43			$	2.41			$	3.31			$	2.01
Taxes other than on income ($/BOE)
United States		$	3.27			$	3.19			$	2.91			$	2.68			$	3.00			$	2.79			$	2.89			$	2.40			$	2.32			$	2.50
Total Oil and Gas		$	1.82			$	1.86			$	1.63			$	1.59			$	1.72			$	1.68			$	1.76			$	1.82			$	1.91			$	1.81
DD&A expense ($/BOE)
United States		$	16.63			$	17.07			$	17.28			$	17.27			$	17.08			$	15.04			$	15.16			$	15.84			$	16.23			$	15.78
Latin America		$	8.99			$	8.95			$	8.81			$	8.77			$	8.88			$	10.38			$	10.58			$	11.00			$	11.37			$	10.85
Middle East		$	9.62			$	8.58			$	8.15			$	9.59			$	8.96			$	8.40			$	8.44			$	8.71			$	7.42			$	8.27
Total Oil and Gas		$	13.44			$	13.48			$	13.22			$	14.05			$	13.56			$	12.40			$	12.58			$	14.12			$	14.72			$	13.74
G&A and other operating expenses ($/BOE)		$	3.28			$	3.88			$	3.78			$	4.01			$	3.79			$	4.00			$	3.54			$	3.77			$	3.76			$	3.79
O&G MTM (Gain) Loss - Collars and CO2 ($ millions)		$	(30	)		$	(52	)		$	(39	)		$	117			$	(4	)		$	(69	)		$	3			$	(64	)		$	145			$	15
Exploration Expense ($ millions)
United States		$	8			$	17			$	17			$	22			$	64			$	16			$	15			$	31			$	37			$	99
Latin America			1				1				6				11				19				1				9				7				28				45
Middle East			6				3				1				17				27				19				11				25				47				102
		$	15			$	21			$	24			$	50			$	110			$	36			$	35			$	63			$	112			$	246

 

 

SCHEDULE 11

Occidental Petroleum Corporation

WES Financial Information

(Amounts in millions)

 

			Quarter Ended December 31, 2019
STATEMENTS OF OPERATIONS ITEMS:			Occidental				WES				Eliminations				Total
Net sales			$	5,857			$	727			$	(302	)		$	6,282
Income from equity investments			$	48			$	51			$	-			$	99
Chemical and midstream cost of sales, SGA and other operating expense			$	3,728			$	311			$	(302	)		$	3,737
Depreciation, depletion and amortization			$	2,090			$	181			$	-			$	2,271
CASH FLOW ITEMS:
Operating cash flow			$	1,467			$	297			$	-			$	1,764
Capital expenditures			$	(1,950	)		$	(221	)		$	-			$	(2,171	)
Debt activity, net			$	(2,010	)		$	219			$	-			$	(1,791	)
Noncontrolling distributions paid			$	-			$	(130	)		$	-			$	(130	)

 

Purchase price allocations were not pushed down to Western Gas Midstream Partners, LP (WES), and therefore will impact the comparability of results presented in this Earnings Release and WES's 2019 Form 10-K and Earnings Release.