MRO Magazine

Occidental Petroleum Announces 2nd Quarter 2015 Results


July 30, 2015
By Business Wire News

HOUSTON

Occidental Petroleum Corporation (NYSE: OXY) announced core income for the second quarter of 2015 of $165 million ($0.21 per diluted share), compared with $31 million ($0.04 per diluted share) for the first quarter of 2015 and $1.1 billion ($1.38 per diluted share) for the second quarter of 2014. The second quarter of 2015 had reported income of $176 million ($0.23 per diluted share), compared with a reported loss of $218 million ($0.28 per diluted share) for the first quarter of 2015 and reported income of $1.4 billion ($1.82 per diluted share) for the second quarter of 2014.

“We continue to focus on managing our business to be profitable in this current environment by improving margins and increasing production through improved well performance,” said Stephen I. Chazen, President and Chief Executive Officer. “Our second quarter production increased to 658,000 BOE per day from last year’s 580,000 BOE per day, an increase of 13 percent with 78 percent of the increase from oil. The increase was led by Permian Resources, which delivered a 51 percent increase to 109,000 BOE per day, of which oil production grew by 31,000 barrels a day. Operating costs in the U.S. were down to $13 per BOE from $14.50 in 2014. Our second quarter capital was about $250 million lower than the first quarter and over 25 percent lower than the same period last year. Higher production volumes, improved well performance in the Permian, and higher product prices resulted in an increase of about $400 million in operating cash flow before working capital compared to the first quarter. Capital investments continue to be profitable and provide operating cash flow in the current price environment.”

Operating cash flow before working capital changes for the first six months of 2015 was $2.6 billion. The six months working capital changes were $950 million. At December 31, 2014, accounts payable was $5.2 billion, and as of June 30, 2015, it decreased by $1.1 billion to $4.1 billion. This decrease was due to payments related to higher capital and operating spending accrued in the fourth quarter of 2014 but not paid until 2015. Total company capital expenditures for the first six months of 2015 were $3.2 billion. The Oil and Gas segment spent $2.7 billion, with Permian Resources representing 47 percent of the total expenditures, and the remaining $500 million was split between the Chemical and Midstream segments.

QUARTERLY RESULTS
Oil and Gas

Total oil and gas after-tax results were $108 million for the second quarter of 2015, compared to a loss of $22 million for the first quarter of 2015 and income of $941 million for the second quarter of 2014.

Domestic core after-tax results were a loss of $42 million for the second quarter of 2015, compared to a loss of $89 million for the first quarter of 2015 and income of $409 million for the second quarter of 2014. Compared to the first quarter of 2015, the current quarter domestic results mainly reflected higher crude oil prices as well as improvements in cash operating costs. Year-over-year, the current quarter domestic results reflected significantly lower realized prices for all products, especially crude oil, partially offset by higher crude oil volumes and lower DD&A rates.

International core after-tax earnings were $154 million for the second quarter of 2015, compared to $69 million for the first quarter of 2015 and $561 million for the second quarter of 2014. Compared to the first quarter of 2015, the current quarter international results reflected improved realized crude oil prices and higher sales volumes. Year-over-year, the current quarter international results primarily reflected lower crude oil realized prices, partially offset by higher sales volumes.

For the second quarter of 2015, total company average daily oil and gas production volumes increased by 78,000 barrels of oil equivalent (BOE) to 658,000 BOE from 580,000 BOE in the second quarter of 2014 for continuing operations. Domestic average daily production increased by 25,000 BOE to 333,000 BOE in the current quarter with the majority of the increase coming from oil production, which grew by 26,000 barrels to 205,000 barrels per day, with all of the increase attributable to Permian Resources. The increase in Permian Resources oil production was partially offset by lower oil and natural gas production in the Midcontinent and Other regions. International average daily production increased to 325,000 BOE in the second quarter of 2015 from 272,000 BOE in the second quarter of 2014. The increase in international production is mainly due to operational improvements and the commencement of production from the Al Hosn Gas Project.

On a sequential basis, total company average daily oil and gas production increased by 13,000 BOE. The current quarter domestic average daily production increased by 7,000 BOE compared to the first quarter of 2015. Permian Resources average daily production grew by 11,000 BOE, with 9,000 BOE of the increase coming from oil production growth that increased 15 percent compared to the first quarter of 2015. The increase in Permian Resources oil production was partially offset by lower oil and natural gas production in the Midcontinent and Other regions. The increase in international average daily production of 6,000 BOE compared to the first quarter of 2015 reflected improved production rates at Al Hosn and higher production from Dolphin as operations recovered from the first quarter planned maintenance activities. These improvements in production were offset by the loss of Yemen production due to civil unrest and lower cost recovery on production-sharing contracts.

Total company average daily sales volumes were 657,000 BOE in the second quarter of 2015 compared to 637,000 BOE for the first quarter of 2015 and 579,000 BOE in the second quarter of 2014.

Worldwide commodity prices for the second quarter of 2015 improved from the first quarter of 2015, but were still significantly lower than the second quarter of 2014. The average quarterly WTI and Brent marker prices increased to $57.94 per barrel and $63.50 per barrel, respectively, in the second quarter of 2015, compared to $48.63 per barrel and $55.17 per barrel, respectively, for the first quarter of 2015, but decreased from $102.99 per barrel and $109.77 per barrel for the second quarter of 2014. Worldwide realized crude oil prices improved by 12 percent to $54.55 per barrel for the second quarter of 2015, compared with $48.50 per barrel for the first quarter of 2015, and decreased by 45 percent compared with $99.30 per barrel in the second quarter of 2014. Although worldwide NGL prices increased slightly to $18.06 per barrel in the second quarter of 2015, compared with $17.96 per barrel in the first quarter of 2015, as a percentage of WTI, the realization decreased 16 percent. The second quarter 2015 NGL prices decreased by 56 percent, compared with $40.98 per barrel in the second quarter of 2014. Domestic natural gas prices decreased 16 percent in the second quarter of 2015 to $2.09 per MCF, compared with $2.49 per MCF in the first quarter of 2015, and fell by 50 percent compared with $4.15 per MCF in the second quarter of 2014.

Chemical

Chemical pre-tax core earnings for the second quarter of 2015 were $136 million, compared to $139 million in the first quarter of 2015 and $133 million in the second quarter of 2014.

Midstream and Marketing

Midstream pre-tax core earnings for the second quarter of 2015 were $84 million, compared to a loss of $5 million for the first quarter of 2015 and income of $130 million for the second quarter of 2014. The increase in earnings compared to the first quarter of 2015 reflected improved marketing margins due to the widening of WTI and LLS differentials, and higher pipeline income from both domestic and foreign pipelines. Compared to the second quarter of 2014, the current quarter reflected lower gas plant results due to the decline in NGL prices, reduced pipeline income as a result of lower Dolphin Pipeline gas sales, and lower power generation income due to extended planned outages.

About Occidental Petroleum

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East region 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 in support of Occidental’s businesses. The company’s wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.

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; reorganization or restructuring of Occidental’s operations; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; 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; 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; or changes in tax rates. 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 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 the 2014 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.

 
Occidental Petroleum Corporation

Q2 2015 Earnings Release Schedules Index

     

Schedule #

Schedule Description

1 Summary Highlights
 
2

Segment income before tax allocations

● Core income
● Non-core adjustments
● Reported income
 
3

Segment income after tax allocations

● Core income
● Non-core adjustments
● Reported income
 
4 Detail of non-core adjustments

Before tax allocations

After tax allocations

 
5 GAAP Consolidated Income Statement
 
6 Condensed Balance Sheets
● 2014
● 2015
● Financial measures (Debt/Cap, ROE & ROCE) – including GAAP reconciliations
 
7 Condensed Statement of Cash Flows – including GAAP reconciliations
Details of Depreciation, Depletion and Amortization and Capital Expenditures
 
8 Daily production
● MBOE/D
● By Commodity
 
9 Sales
● MBOE/D volumes
● Realized prices and related marker prices
 
10 Oil and Gas $/BOE Costs
 
11 Segment Core Income Pre-tax Variance Roll-forwards
● Quarter-over-Quarter
● Year-over-Year
 
Occidental Petroleum Corporation
Summary Highlights
                       
20142015

Quarterly

Qtr 1Qtr 2Qtr 3Qtr 4YTDQtr 1Qtr 2Qtr 3Qtr 4YTD
Net income (loss)
Core ($ millions) $ 1,095 $ 1,082 $ 1,046 $ 560 $ 3,783 $ 31 $ 165 $ 196
Core EPS – Diluted ($/share) $ 1.38 $ 1.38 $ 1.34 $ 0.72 $ 4.83 $ 0.04 $ 0.21 $ 0.25
Effective tax rate 41 % 41 % 41 % 39 % 41 % 75 % 65 % 67 %
 
Reported ($ millions) $ 1,390 $ 1,431 $ 1,208 $ (3,413 ) $ 616 $ (218 ) $ 176 $ (42 )
Reported EPS – Diluted ($/share) $ 1.75 $ 1.82 $ 1.55 $ (4.41 ) $ 0.79 $ (0.28 ) $ 0.23 $ (0.05 )
Effective tax rate 41 % 41 % 41 % 15 % 109 % 8 % 64 % 113 %
 
Average Shares Outstanding
Basic (millions) 791.3 782.6 777.4 773.1 781.1 769.6 766.4 768.0
Diluted (millions) 791.7 782.9 777.7 773.4 781.1 769.6 766.6 768.0
 
Production
Total US (MBOE/D) 302 308 315 321 312 326 333 330
US oil (MBBL/D) 173 179 182 189 181 198 205 201
Worldwide (MBOE/D) 573 580 595 616 591 645 658 652
Worldwide sales (MBOE/D) 562 579 590 635 592 637 657 647
 
Realizations
Worldwide oil ($/BBL) $ 98.14 $ 99.30 $ 94.26 $ 71.58 $ 90.13 $ 48.50 $ 54.55 $ 51.60
Worldwide NGL ($/BBL) $ 41.70 $ 40.98 $ 38.20 $ 27.39 $ 37.01 $ 17.96 $ 18.06 $ 18.01
Domestic gas ($/MCF) $ 4.39 $ 4.15 $ 3.74 $ 3.56 $ 3.97 $ 2.49 $ 2.09 $ 2.29
 
Cash Flows ($ millions)
Operating before working capital $ 2,294 $ 2,070 $ 2,341 $ 1,374 $ 8,079 $ 1,121 $ 1,517 $ 2,638
Working capital changes (252 ) 204 (267 ) 1,107 792 (555 ) (399 ) (954 )
Other, net  

                        (307 )       (307 )
Operating – continuing operations $ 2,042 $ 2,274 $ 2,074 $ 2,481 $ 8,871 $ 566 $ 811 $ 1,377
Capital expenditures $ (1,732 ) $ (2,001 ) $ (2,003 ) $ (2,984 ) $ (8,720 ) $ (1,735 ) $ (1,488 ) $ (3,223 )
               
20142015

Year-to-date

MarJunSepDecMarJunSepDec
Net income (loss)
Core ($ millions) $ 1,095 $ 2,177 $ 3,223 $ 3,783 $ 31 $ 196
Core EPS – Diluted ($/share) $ 1.38 $ 2.76 $ 4.10 $ 4.83 $ 0.04 $ 0.25
Effective tax rate 41 % 41 % 41 % 41 % 75 % 67 %
 
Reported ($ millions) $ 1,390 $ 2,821 $ 4,029 $ 616 $ (218 ) $ (42 )
Reported EPS – Diluted ($/share) $ 1.75 $ 3.58 $ 5.13 $ 0.79 $ (0.28 ) $ (0.05 )
Effective tax rate 41 % 41 % 41 % 109 % 8 % 113 %
 
Average Shares Outstanding
Basic (millions) 791.3 786.9 783.7 781.1 769.6 768.0
Diluted (millions) 791.7 787.2 784.1 781.1 769.6 768.0
 
Production
Total US (MBOE/D) 302 305 308 312 326 330
US oil (MBBL/D) 173 175 178 181 198 201
Worldwide (MBOE/D) 573 576 582 591 645 652
Worldwide sales (MBOE/D) 562 571 577 592 637 647
 
Realizations
Worldwide oil ($/BBL) $ 98.14 $ 98.73 $ 97.20 $ 90.13 $ 48.50 $ 51.60
Worldwide NGL ($/BBL) $ 41.70 $ 41.34 $ 40.27 $ 37.01 $ 17.96 $ 18.01
Domestic gas ($/MCF) $ 4.39 $ 4.28 $ 4.10 $ 3.97 $ 2.49 $ 2.29
 
Cash Flows ($ millions)
Operating before working capital $ 2,294 $ 4,364 $ 6,705 $ 8,079 $ 1,121 $ 2,638
Working capital changes (252 ) (48 ) (315 ) 792 (555 ) (954 )

Other, net

 

   

   

   

   

   

(307

)

   
Operating – continuing operations $ 2,042 $ 4,316 $ 6,390 $ 8,871 $ 566 $

1,377

Capital expenditures $ (1,732 ) $ (3,733 ) $ (5,736 ) $ (8,720 ) $ (1,735 ) $ (3,223 )
 

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 1

 

Occidental Petroleum Corporation
Segment IncomeBefore Tax Allocations

(Amounts in millions, except per share and effective tax rate amounts)
                           
20142015

Core Results

Qtr 1Qtr 2Qtr 3Qtr 4YTDQtr 1Qtr 2Qtr 3  Qtr 4YTD
Oil & Gas  
Domestic $ 646 $ 642 $ 486 $ 80 $ 1,854 $ (236 ) $ (67 ) $ (303 )
Foreign 1,092 1,096 1,103 710 4,001 295 395 690
Exploration   (19 )   (35 )   (18 )   (54 )   (126 )   (2 )   (4 )         (6 )
1,719 1,703 1,571 736 5,729 57 324 381
Chemical 136 133 140 160 569 139 136 275
Midstream and marketing   96     130     155     168     549     (5 )   84           79  
Segment Earnings 1,951 1,966 1,866 1,064 6,847 191 544 735
Corporate
Interest (20 ) (18 ) (15 ) (18 ) (71 ) (28 ) (7 ) (35 )
Other   (68 )   (107 )   (83 )   (123 )   (381 )   (39 )   (61 )         (100 )
Pre-tax income 1,863 1,841 1,768 923 6,395 124 476 600
Taxes
Federal and state (215 ) (228 ) (178 ) (82 ) (703 ) 14 59 73
Foreign   (553 )   (531 )   (544 )   (281 )   (1,909 )   (107 )   (370 )         (477 )
Net Income $ 1,095   $ 1,082   $ 1,046   $ 560   $ 3,783   $ 31   $ 165         $ 196  
 
Core earnings per share
Basic $ 1.38 $ 1.38 $ 1.34 $ 0.72 $ 4.83 $ 0.04 $ 0.21 $ 0.25
Diluted $ 1.38   $ 1.38   $ 1.34   $ 0.72   $ 4.83   $ 0.04   $ 0.21         $ 0.25  
 
Effective tax rate   41 %   41 %   41 %   39 %   41 %   75 %   65 %         67 %
 
 

Non-core Adjustments

Qtr 1Qtr 2Qtr 3Qtr 4YTDQtr 1Qtr 2Qtr 3  Qtr 4YTD
Oil & Gas
Domestic $ $ 64 $ (3 ) $ (4,296 ) $ (4,235 ) $ (277 ) $ 32 $ (245 )
Foreign (1,066 ) (1,066 ) (46 ) (1 ) (47 )
Exploration                                      
64 (3 ) (5,362 ) (5,301 ) (323 ) 31 (292 )
Chemical (149 ) (149 )
Midstream and marketing   66     78     (50 )   1,921     2,015     (10 )   3           (7 )
Segment Earnings 66 142 (53 ) (3,590 ) (3,435 ) (333 ) 34 (299 )
Corporate
Interest
Other       (16 )   (21 )   (1,382 )   (1,419 )   (25 )   (6 )         (31 )
Pre-tax income 66 126 (74 ) (4,972 ) (4,854 ) (358 ) 28 (330 )
Taxes
Federal and state (26 ) (50 ) 23 913 860 111 (12 ) 99
Foreign               67     67     1     (1 )          
Income From Continuing Operations 40 76 (51 ) (3,992 ) (3,927 ) (246 ) 15 (231 )
Discontinued Operations   255     273     213     19     760     (3 )   (4 )         (7 )
Net Income (loss) $ 295   $ 349   $ 162   $ (3,973 ) $ (3,167 ) $ (249 ) $ 11         $ (238 )
 
 

Reported Income

Qtr 1Qtr 2Qtr 3Qtr 4YTDQtr 1Qtr 2Qtr 3  Qtr 4YTD
Oil & Gas
Domestic $ 646 $ 706 $ 483 $ (4,216 ) $ (2,381 ) $ (513 ) $ (35 ) $ (548 )
Foreign 1,092 1,096 1,103 (356 ) 2,935 249 394 643
Exploration   (19 )   (35 )   (18 )   (54 )   (126 )   (2 )   (4 )         (6 )
1,719 1,767 1,568 (4,626 ) 428 (266 ) 355 89
Chemical 136 133 140 11 420 139 136 275
Midstream and marketing   162     208     105     2,089     2,564     (15 )   87           72  
Segment Earnings 2,017 2,108 1,813 (2,526 ) 3,412 (142 ) 578 436
Corporate
Interest (20 ) (18 ) (15 ) (18 ) (71 ) (28 ) (7 ) (35 )
Other   (68 )   (123 )   (104 )   (1,505 )   (1,800 )   (64 )   (67 )         (131 )
Pre-tax income 1,929 1,967 1,694 (4,049 ) 1,541 (234 ) 504 270
Taxes
Federal and state (241 ) (278 ) (155 ) 831 157 125 47 172
Foreign   (553 )   (531 )   (544 )   (214 )   (1,842 )   (106 )   (371 )         (477 )
Income From Continuing Operations 1,135 1,158 995 (3,432 ) (144 ) (215 ) 180 (35 )
Discontinued Operations   255     273     213     19     760     (3 )   (4 )         (7 )
Net Income (loss) (a) $ 1,390   $ 1,431   $ 1,208   $ (3,413 ) $ 616   $ (218 ) $ 176         $ (42 )
 
Reported earnings per share
Basic $ 1.75 $ 1.83 $ 1.55 $ (4.41 ) $ 0.79 $ (0.28 ) $ 0.23 $ (0.05 )
Diluted $ 1.75   $ 1.82   $ 1.55   $ (4.41 ) $ 0.79   $ (0.28 ) $ 0.23         $ (0.05 )
 
Effective tax rate   41 %   41 %   41 %   15 %   109 %   8 %   64 %         113 %
 
(a) Represents amounts attributable to common stock after deducting noncontrolling interest amounts.
 

Schedule 2

 

Occidental Petroleum Corporation
Segment Income After Tax Allocations
(Amounts in millions, except per share amounts)

                                         
20142015

Core Results

Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Oil & Gas                
Domestic $ 412 $ 409 $ 310 $ 59 $ 1,190 $ (89 ) $ (42 ) $ (131 )
Foreign 587 561 605 304 2,057 69 154 223
Exploration   (5 )     (29 )     (15 )     (46 )     (95 )   (2 )     (4 )             (6 )
994 941 900 317 3,152 (22 ) 108 86
Chemical 86 84 89 98 357 88 86 174
Midstream and marketing   71       103       118       125       417     4       66               70  
Segment Earnings 1,151 1,128 1,107 540 3,926 70 260

330

Corporate
Interest (20 ) (18 ) (15 ) (17 ) (70 ) (28 ) (7 ) (35 )
Other (68 ) (107 ) (83 ) (124 ) (382 ) (39 ) (61 ) (100 )
Taxes   32       79       37       161       309     28       (27 )             1  
Net Income $ 1,095     $ 1,082     $ 1,046     $ 560     $ 3,783   $ 31     $ 165             $

196

 
 
Core earnings per share
Basic $ 1.38 $ 1.38 $ 1.34 $ 0.72 $ 4.83 $ 0.04 $ 0.21 $ 0.25
Diluted $ 1.38     $ 1.38     $ 1.34     $ 0.72     $ 4.83   $ 0.04     $ 0.21             $ 0.25  
 
 

Non-core Adjustments

Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Oil & Gas
Domestic $ $ 41 $ (2 ) $ (2,751 ) $ (2,712 ) $ (177 ) $ 20 $ (157 )
Foreign (1,055 ) (1,055 ) (46 ) (1 ) (47 )
Exploration                                                    
41 (2 ) (3,806 ) (3,767 ) (223 ) 19 (204 )
Chemical (94 ) (94 )
Midstream and marketing   40       47       (30 )     1,225       1,282     (4 )     2               (2 )
Segment Earnings 40 88 (32 ) (2,675 ) (2,579 ) (227 ) 21 (206 )
Corporate
Interest
Other (12 ) (19 ) (1,261 ) (1,292 ) (19 ) (6 ) (25 )
Taxes                     (56 )     (56 )                        
Income From Continuing Operations 40 76 (51 ) (3,992 ) (3,927 ) (246 ) 15 (231 )
Discontinued Operations   255       273       213       19       760     (3 )     (4 )             (7 )
Net Income (loss) $ 295     $ 349     $ 162     $ (3,973 )   $ (3,167 ) $ (249 )   $ 11             $ (238 )
 
 

Reported Income

Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Oil & Gas
Domestic $ 412 $ 450 $ 308 $ (2,692 ) $ (1,522 ) $ (266 ) $ (22 ) $ (288 )
Foreign 587 561 605 (751 ) 1,002 23 153 176
Exploration   (5 )     (29 )     (15 )     (46 )     (95 )   (2 )     (4 )             (6 )
994 982 898 (3,489 ) (615 ) (245 ) 127 (118 )
Chemical 86 84 89 4 263 88 86 174
Midstream and marketing   111       150       88       1,350       1,699           68               68  
Segment Earnings 1,191 1,216 1,075 (2,135 ) 1,347 (157 ) 281 124
Corporate
Interest (20 ) (18 ) (15 ) (17 ) (70 ) (28 ) (7 ) (35 )
Other (68 ) (119 ) (102 ) (1,385 ) (1,674 ) (58 ) (67 ) (125 )
Taxes   32       79       37       105       253     28       (27 )             1  
Income From Continuing Operations 1,135 1,158 995 (3,432 ) (144 ) (215 ) 180 (35 )
Discontinued Operations   255       273       213       19       760     (3 )     (4 )             (7 )
Net Income (loss) (a) $ 1,390     $ 1,431     $ 1,208     $ (3,413 )   $ 616   $ (218 )   $ 176             $ (42 )
 
Reported earnings per share
Basic $ 1.75 $ 1.83 $ 1.55 $ (4.41 ) $ 0.79 $ (0.28 ) $ 0.23 $ (0.05 )
Diluted $ 1.75     $ 1.82     $ 1.55     $ (4.41 )   $ 0.79   $ (0.28 )   $ 0.23             $ (0.05 )
 
(a) Represents amounts attributable to common stock after deducting noncontrolling interest amounts.
 

Schedule 3

 
Occidental Petroleum Corporation
Non-core Adjustments Detail
(Amounts in millions)
                                           
20142015

Before Tax Allocations

Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Oil & Gas                
Domestic
Hugoton sale gain $ $ 535 $ (3 ) $ (1 ) $ 531 $ $ (1 ) $ (1 )
Other asset sale gains(losses) (13 ) 19 6
Asset impairments and related items         (471 )           (4,295 )     (4,766 )   (264 )     14               (250 )
64 (3 ) (4,296 ) (4,235 ) (277 ) 32 (245 )
Foreign
Asset impairments and related items                     (1,066 )     (1,066 )   (46 )     (1 )             (47 )
Total Oil and Gas         64       (3 )     (5,362 )     (5,301 )   (323 )     31               (292 )
 
Chemical
Asset impairments                     (149 )     (149 )                        
Total Chemical                     (149 )     (149 )                        
 
Midstream and marketing
BridgeTex Pipeline sale gain 633 633
Plains Pipeline sale gain 1,351 1,351
Asset impairments and related items   66       78       (50 )     (63 )     31     (10 )     3               (7 )
Total Midstream   66       78       (50 )     1,921       2,015     (10 )     3               (7 )
 
Corporate
Asset sales (11 ) (11 )
Other than temporary loss on
available for sale investment (553 ) (553 )
Joslyn impairment (805 ) (805 )
Spin-off costs and related items         (16 )     (21 )     (24 )     (61 )   (14 )     (6 )             (20 )
Total Corporate         (16 )     (21 )     (1,382 )     (1,419 )   (25 )     (6 )             (31 )
 
Taxes   (26 )     (50 )     23       980       927     112       (13 )             99  
Income From Continuing Operations 40 76 (51 ) (3,992 ) (3,927 ) (246 ) 15 (231 )
Discontinued Operations   255       273       213       19       760     (3 )     (4 )             (7 )
Totals $ 295     $ 349     $ 162     $ (3,973 )   $ (3,167 ) $ (249 )   $ 11             $ (238 )
 
 
                                   
20142015

After Tax Allocations

Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Oil & Gas
Domestic
Hugoton sale gain $ $ 341 $ (2 ) $ (1 ) $ 338 $ $ (1 ) $ (1 )
Other asset sale gains(losses) (8 ) 12 4
Asset impairments and related items         (300 )           (2,750 )     (3,050 )   (169 )     9               (160 )
41 (2 ) (2,751 ) (2,712 ) (177 ) 20 (157 )
Foreign
Asset impairments and related items                     (1,055 )     (1,055 )   (46 )     (1 )             (47 )
Total Oil and Gas         41       (2 )     (3,806 )     (3,767 )   (223 )     19               (204 )
 
Chemical
Asset impairments                     (94 )     (94 )                        
Total Chemical                     (94 )     (94 )                        
 
Midstream and marketing
BridgeTex Pipeline sale gain 403 403
Plains Pipeline sale gain 861 861
Asset impairments and related items   40       47       (30 )     (39 )     18     (4 )     2               (2 )
Total Midstream   40       47       (30 )     1,225       1,282     (4 )     2               (2 )
 
Corporate
Asset sales (7 ) (7 )
Other than temporary loss on
available for sale investment (553 ) (553 )
Joslyn impairment (687 ) (687 )
Spin-off costs and related items         (12 )     (19 )     (21 )     (52 )   (12 )     (6 )             (18 )
Total Corporate         (12 )     (19 )     (1,261 )     (1,292 )   (19 )     (6 )             (25 )
 
Taxes                     (56 )     (56 )                        
Income From Continuing Operations 40 76 (51 ) (3,992 ) (3,927 ) (246 ) 15 (231 )
Discontinued Operations   255       273       213       19       760     (3 )     (4 )             (7 )
Totals $ 295     $ 349     $ 162     $ (3,973 )   $ (3,167 ) $ (249 )   $ 11             $ (238 )
 

Schedule 4

 
Occidental Petroleum Corporation
Consolidated Condensed Statements of Operations
(Amounts in millions, except per-share amounts)
                                                 
20142015
Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3    Qtr 4  YTD
REVENUES                  
Net sales
Oil and gas $ 3,602 $ 3,703 $ 3,586 $ 2,996 $ 13,887 $ 2,009 $ 2,342 $ 4,351
Chemical 1,220 1,242 1,232 1,123 4,817 1,000 1,030 2,030
Midstream and marketing 340 440 261 332 1,373 197 294 491
Eliminations   (194 )     (252 )     (175 )     (144 )     (765 )   (117 )     (197 )               (314 )
4,968 5,133 4,904 4,307 19,312 3,089 3,469 6,558
Interest, dividends and other income 30 47 31 22 130 31 26 57
Gain (loss) on sale of assets and equity investments, net         525       (5 )     1,985       2,505     (24 )     19                 (5 )
  4,998       5,705       4,930       6,314       21,947     3,096       3,514                 6,610  
 
COSTS AND OTHER DEDUCTIONS
Cost of sales 1,643 1,691 1,736 1,733 6,803 1,557 1,480 3,037
Depreciation, depletion and amortization 977 1,024 1,056 1,204 4,261 1,029 1,116 2,145
Selling, general and administrative and other operating expenses 317 429 355 402 1,503 311 347 658
Asset impairments and related items 471 6,908 7,379 324 324
Taxes other than on income 151 144 135 120 550 107 107 214
Exploration expense 24 39 28 59 150 8 10 18
Interest and debt expense, net   22       20       16       19       77     30       8                 38  
  3,134     3,818     3,326     10,445     20,723     3,366       3,068                 6,434  
INCOME (LOSS) BEFORE INCOME TAXES AND OTHER ITEMS 1,864 1,887 1,604 (4,131 ) 1,224 (270 ) 446 176
Benefit from (provision for) domestic and foreign income taxes (794 ) (809 ) (699 ) 617 (1,685 ) 19 (324 ) (305 )
Income from equity investments   67       83       93       88       331     36       58                 94  
INCOME (LOSS) FROM CONTINUING OPERATIONS 1,137 1,161 998 (3,426 ) (130 ) (215 ) 180 (35 )
Discontinued operations, net   255       273       213       19       760     (3 )     (4 )               (7 )
NET INCOME (LOSS) 1,392 1,434 1,211 (3,407 ) 630 (218 ) 176 (42 )
Less: Net income (loss) attributable to noncontrolling interest   (2 )     (3 )     (3 )     (6 )     (14 )                          
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK $ 1,390     $ 1,431     $ 1,208     $ (3,413 )   $ 616   $ (218 )   $ 176               $ (42 )
 
EARNINGS PER SHARE (attributable to common stock)
BASIC EARNINGS PER COMMON SHARE
Income (loss) from continuing operations $ 1.43 $ 1.48 $ 1.28 $ (4.44 ) $ (0.18 ) $ (0.28 ) $ 0.23 $ (0.04 )
Discontinued operations, net   0.32       0.35       0.27       0.03       0.97                           (0.01 )
BASIC EARNINGS PER COMMON SHARE $ 1.75     $ 1.83     $ 1.55     $ (4.41 )   $ 0.79   $ (0.28 )   $ 0.23               $ (0.05 )
 
DILUTED EARNINGS PER COMMON SHARE $ 1.75     $ 1.82     $ 1.55     $ (4.41 )   $ 0.79   $ (0.28 )   $ 0.23               $ (0.05 )
 
DIVIDENDS PER COMMON SHARE $ 0.72     $ 0.72     $ 0.72     $ 0.72     $ 2.88   $ 0.72     $ 0.75               $ 1.47  
 
AVERAGE COMMON SHARES OUTSTANDING
BASIC 791.3 782.6 777.4 773.1 781.1 769.6 766.4 768.0
DILUTED 791.7 782.9 777.7 773.4 781.1 769.6 766.6 768.0
 

Schedule 5

 
Occidental Petroleum Corporation
Consolidated Condensed Balance Sheets
(Amounts in millions)
                             
20142015
MARJUNSEPDECMARJUNSEP    DEC
CURRENT ASSETS    
Cash and cash equivalents $ 2,332 $ 2,391 $ 2,897 $ 3,789 $ 2,153 $ 2,756
Restricted cash

4,019 3,265 2,382
Trade receivables, net 5,233 5,826 4,960 4,206 3,068 3,973
Inventories 1,308 1,323 1,359 1,052 1,133 1,120
Other current assets   2,026     1,246     1,291     807     815     777          
Total current assets 10,899 10,786 10,507 13,873 10,434 11,008
INVESTMENTS
Investments in unconsolidated entities 1,511 1,547 1,544 1,171 1,221 1,330
Available for sale investment               394     544     432          
Total investments 1,511 1,547 1,544 1,565 1,765 1,762
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 89,790 92,135 94,771 74,515 75,979 77,375
Accumulated depreciation, depletion and amortization   (33,746 )   (35,001 )   (36,306 )   (34,785 )   (35,870 )   (36,897 )        
56,044 57,134 58,465 39,730 40,109 40,478
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET   821     826     994     1,091     1,081     1,121          
TOTAL ASSETS $ 69,275   $ 70,293   $ 71,510   $ 56,259   $ 53,389   $ 54,369          
 
CURRENT LIABILITIES
Current maturities of long-term debt $ $ $ 1,599 $ $ 700 $ 1,450
Accounts payable 5,423 6,097 5,511 5,229 3,867 4,145
Accrued liabilities 2,441 2,332 2,337 2,601 2,152 2,230
Domestic and foreign income taxes   326     440     74     414     196              
Total current liabilities 8,190 8,869 9,521 8,244 6,915 7,825
LONG-TERM DEBT, NET 6,877 6,835 6,837 6,838 6,139 6,880
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred domestic and foreign income taxes 7,398 7,313 7,634 3,015 2,947 3,153
Other   3,441     3,464     3,433     3,203     3,224     3,209          
10,839 10,777 11,067 6,218 6,171 6,362
STOCKHOLDERS’ EQUITY
Common stock, $.20 per share par value 178 178 178 178 178 178
Treasury stock (7,079 ) (7,681 ) (8,146 ) (8,528 ) (8,734 ) (9,107 )
Additional paid-in capital 7,543 7,564 7,570 7,599 7,632 7,651
Retained earnings 42,652 43,519 44,166 36,067 35,294 34,896
Accumulated other comprehensive loss (296 ) (291 ) (289 ) (357 ) (206 ) (316 )
Non-controlling interest   371     523     606                      
Total equity   43,369     43,812     44,085     34,959     34,164     33,302          
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $ 69,275   $ 70,293   $ 71,510   $ 56,259   $ 53,389   $ 54,369          
 
Financial Measures
Long-term Debt to Capitalization Ratio 14 % 13 % 13 % 16 % 15 % 17 %
Return on Equity (ROE)* 13 % 13 % 12 % 2 % -3 % 0 %
Return on Capital Employed (ROCE)* 11 % 11 % 11 % 1 % -2 % 0 %
* Non yearend periods are annualized
 
Reconciliation of non-GAAP disclosures to GAAPMARJUNSEPDECMARJUN
ROCE
 
GAAP measure – net income attributable to common stock $ 1,390 $ 2,821 $ 4,029 $ 616 $ (218 ) $ (42 )
Interest expense 20 38 53 71 28 35
Tax effect of interest expense   (7 )   (13 )   (19 )   (25 )   (10 )   (12 )
Earnings before tax-effected interest expense $ 1,403   $ 2,846   $ 4,063   $ 662   $ (200 ) $ (19 )
 
MARJUNSEPDECMARJUN
Stockholders’ equity $ 43,369 $ 43,812 $ 44,085 $ 34,959 $ 34,164 $ 33,302

Debt (current maturities and long-term)

  6,877     6,835     8,436     6,838     6,839     8,330  
Total capital employed $ 50,246   $ 50,647   $ 52,521   $ 41,797   $ 41,003   $ 41,632  
 

Schedule 6

                       
Occidental Petroleum Corporation
Condensed Statements of Cash Flows and Details of Depreciation, Depletion and Amortization and Capital Expenditures
(Amounts in millions)
                                   
2014  2015  
Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
OPERATING CASH FLOW
Net income (loss) $ 1,392 $ 1,434 $ 1,211 $ (3,407 ) $ 630 $ (218 ) $ 176 $ (42 )
Depreciation, depletion and amortization (see detail below) 977 1,024 1,056 1,204 4,261 1,029 1,116 2,145
Deferred income tax provision 125 (182 ) 277 (1,398 ) (1,178 ) (63 ) 202 139
Asset impairments and other non-cash charges   (200 )     (206 )     (203 )     4,975       4,366     373       23               396  
Operating cash flow before working capital 2,294 2,070 2,341 1,374 8,079 1,121 1,517 2,638
Working capital changes (252 ) 204 (267 ) 1,107 792 (555 ) (399 ) (954 )
Other, net                                     (307 )             (307 )
Operating cash flow from continuing operations   2,042       2,274       2,074       2,481       8,871     566       811           1,377  
 
INVESTING CASH FLOW
Capital expenditures (see detail below) (1,732 ) (2,001 ) (2,003 ) (2,984 ) (8,720 ) (1,735 ) (1,488 ) (3,223 )
Payment for purchases of assets and businesses (4 ) (303 ) (45 ) (1,335 ) (1,687 ) (6 ) (37 ) (43 )
Sales of assets and equity investments, net 1,371 16 2,790 4,177 20 38 58
Changes in capital accrual 542 542 (458 ) (127 ) (585 )
Other investing activities   (35 )     (70 )     (17 )     (63 )     (185 )   (27 )     (69 )             (96 )
Investing cash flow from continuing operations   (1,771 )     (1,003 )     (2,049 )     (1,050 )     (5,873 )   (2,206 )     (1,683 )             (3,889 )
 
FINANCING CASH FLOW
Cash dividends paid (514 ) (570 ) (565 ) (561 ) (2,210 ) (557 ) (556 ) (1,113 )
Purchases of treasury stock (946 ) (630 ) (507 ) (417 ) (2,500 ) (207 ) (329 ) (536 )
Special cash distribution from California Resources 6,100 6,100
Proceeds from short-term borrowings 1,599 (1,599 )
Proceeds from long-term debt 1,478 1,478
Other financing activities   (48 )     (42 )     9       13       (68 )   19       5               24  
Financing cash flow from continuing operations   (1,508 )     (1,242 )     536       3,536       1,322     (745 )     598               (147 )
 
Cash Flow From Discontinued Operations 176 30 (55 ) (56 ) 95 (5 ) (6 ) (11 )
 
Increase (decrease) in cash (1,061 ) 59 506 4,911 4,415 (2,390 ) (280 ) (2,670 )

Cash, cash equivalents and restricted cash (a) – beg of period

  3,393       2,332       2,391       2,897       3,393     7,808       5,418               7,808  

Cash, cash equivalents and restricted cash (a) – end of period

$ 2,332     $ 2,391     $ 2,897     $ 7,808     $ 7,808   $ 5,418     $ 5,138             $ 5,138  
 
 
Depreciation, Depletion and Amortization
Oil & GasQtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
United States $ 503 $ 519 $ 537 $ 555 $ 2,114 $ 502 $ 541 $ 1,043
Latin America 42 35 40 44 161 48 49 97
Middle East/North Africa 297 331 340 458 1,426 329 370 699
Chemical 89 93 91 94 367 92 92 184
Midstream and marketing 39 38 38 45 160 48 55 103
Corporate   7       8       10       8       33     10       9               19  
$ 977     $ 1,024     $ 1,056     $ 1,204     $ 4,261   $ 1,029     $ 1,116             $ 2,145  
 
Capital Expenditures
Oil & Gas
Permian Resources $ (328 ) $ (401 ) $ (472 ) $ (715 ) $ (1,916 ) $ (729 ) $ (555 ) $ (1,284 )
Permian EOR (164 ) (193 ) (210 ) (155 ) (722 ) (115 ) (119 ) (234 )
Other domestic (231 ) (219 ) (205 ) (257 ) (912 ) (86 ) (21 ) (107 )
Latin America (67 ) (74 ) (69 ) (100 ) (310 ) (47 ) (45 ) (92 )
Middle East/North Africa (454 ) (554 ) (527 ) (614 ) (2,149 ) (476 ) (449 ) (925 )
Exploration Drilling (88 ) (125 ) (160 ) (150 ) (523 ) (58 ) (30 ) (88 )
Chemical (41 ) (71 ) (61 ) (141 ) (314 ) (40 ) (57 ) (97 )
Midstream and marketing (399 ) (462 ) (311 ) (811 ) (1,983 ) (115 ) (105 ) (220 )
Corporate   (23 )     (30 )     (21 )     (27 )     (101 )   (9 )     (9 )             (18 )
GAAP external reporting (1,795 ) (2,129 ) (2,036 ) (2,970 ) (8,930 ) (1,675 ) (1,390 ) (3,065 )

Non-controlling interest contributions (b)

123 149 74 29 375
Cracker JV investment contributions   (60 )     (21 )     (41 )     (43 )     (165 )   (60 )     (98 )             (158 )
$ (1,732 )   $ (2,001 )   $ (2,003 )   $ (2,984 )   $ (8,720 ) $ (1,735 )   $ (1,488 )           $ (3,223 )
 
 
 
Reconciliation of non-GAAP disclosures to GAAPQtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
Condensed Statements of Cash Flows
CASH FLOW FROM OPERATING ACTIVITIES
Continuing operations $ 2,042 $ 2,274 $ 2,074 $ 2,481 $ 8,871 $ 566 $ 811 $ 1,377
Discontinued operations 655 593 564 385 2,197 (5 ) (6 ) (11 )
CASH FLOW FROM INVESTING ACTIVITIES
Continuing operations (1,894 ) (1,152 ) (2,123 ) (1,075 ) (6,244 ) (2,206 ) (1,683 ) (3,889 )
Discontinued operations (479 ) (563 ) (619 ) (565 ) (2,226 )
CASH FLOW FROM FINANCING ACTIVITIES
Continuing operations (1,385 ) (1,093 ) 610 (458 ) (2,326 ) 9 1,481 1,490
Discontinued operations                     124       124                          
Increase (decrease) in cash and cash equivalents (1,061 ) 59 506 892 396 (1,636 ) 603 (1,033 )
Cash and cash equivalents – beginning of period   3,393       2,332       2,391       2,897       3,393     3,789       2,153               3,789  
Cash and cash equivalents – end of period $ 2,332     $ 2,391     $ 2,897     $ 3,789     $ 3,789   $ 2,153     $ 2,756             $ 2,756  
 

(a) Restricted cash must be used solely to pay dividends, repurchase common stock, repay debt, or a combination of the foregoing.

(b) Disclosed as financing cash flows in GAAP cash flow statements.

 

Schedule 7

                       
Occidental Petroleum Corporation
Oil & Gas Net Production Volumes Per Day by Geographical Locations
                                   
20142015
NET MBOE VOLUMES PER DAY:Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3  Qtr 4  YTD
United States
Permian Resources 67 72 77 84 75 98 109 104
Permian EOR 145 144 148 150 147 145 145 145
Midcontinent & Other 90   92   90   87   90 83   79           81
Total 302 308 315 321 312 326 333 330
 
Latin America 31 21 31 34 29 40 42 41
 
Middle East / North Africa
Al Hosn 9 18 13
Dolphin 34 38 38 40 38 39 42 41
Oman 73 76 75 80 76 89 87 88
Qatar 68 69 69 70 69 64 65 64
Other 65   68   67   71   67 78   71           75
Total 240 251 249 261 250 279 283 281
 
Continuing operations 573 580 595 616 591 645 658 652
Sold assets – Hugoton 18   6       6            
Barrels of Oil Equivalent (MBOE)591  586  595  616  597645  658          652
 
NET PRODUCTION VOLUMES PER DAY

BY COMMODITY:

United States
Oil (MBBL)
Permian Resources 37 40 43 51 43 62 71 67
Permian EOR 110 110 111 112 111 111 110 110
Midcontinent & Other 26   29   28   26   27 25   24           24
Total 173 179 182 189 181 198 205 201
NGLs (MBBL)
Permian Resources 11 12 13 13 12 14 15 15
Permian EOR 28 29 30 31 30 28 29 29
Midcontinent & Other 14   12   12   12   12 11   11           11
Total 53 53 55 56 54 53 55 55
Natural Gas (MMCF)
Permian Resources 115 120 121 122 120 130 136 132
Permian EOR 38 34 42 39 38 37 38 38
Midcontinent & Other 305   305   299   296   301 280   263           271
Total 458 459 462 457 459 447 437 441
 
Latin America
Oil (MBBL) 29 19 29 32 27 38 40 39
Natural Gas (MMCF) 12 12 12 10 11 12 10 11
 
Middle East / North Africa
Oil (MBBL)
Al Hosn 2 4 3
Dolphin 6 7 7 7 7 7 7 7
Oman 66 70 67 72 69 80 81 80
Qatar 68 69 69 70 69 64 65 64
Other 27   28   28   31   28 37   31           35
Total 167 174 171 180 173 190 188 189
NGLs (MBBL)
Al Hosn 2 4 3
Dolphin 6   7   7   8   7 7   8           8
Total 6 7 7 8 7 9 12 11
Natural Gas (MMCF)
Al Hosn 30 60 44
Dolphin 131 144 146 152 143 150 160 155
Oman 40 40 45 49 43 56 38 47
Other 231   236   235   240   236 245   240           242
Total 402 420 426 441 422 481 498 488
 

Schedule 8

 
Occidental Petroleum Corporation
Oil & Gas Sales Volumes Per Day and Realized Prices by Geographical Locations
                                             
20142015
NET SALES MBOE VOLUMES PER DAY:Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTDQtr 1  Qtr 2  Qtr 3    Qtr 4  YTD
                 
United States 302 308 315 321 312 326 333 330
 
Latin America 34 26 31 34 31 38 37 37
 
Middle East / North Africa
Al Hosn 9 18 13
Dolphin 34 38 38 39 38 40 42 41
Oman 72 77 76 78 76 89 87 88
Qatar 71 66 71 68 69 67 65 66
Other   49       64       59       95       66     68       75                 72  
Total 226 245 244 280 249 273 287

 

 

280
 
Continuing operations 562 579 590 635 592 637 657

 

 

647
Sold assets – Hugoton   18       6                   6                            
Barrels of Oil Equivalent (MBOE)  580      585      590      635      598    637      657    

 

   

 

   647  
 
REALIZED PRICES
United States
Oil ($/BBL) $ 92.56 $ 93.70 $ 87.43 $ 66.46 $ 84.73 $ 43.66 $ 52.64 $ 48.25
NGLs ($/BBL) $ 42.06 $ 42.17 $ 39.32 $ 27.67 $ 37.79 $ 17.32 $ 17.32 $ 17.32
Natural Gas ($/MCF) $ 4.39 $ 4.15 $ 3.74 $ 3.56 $ 3.97 $ 2.49 $ 2.09 $ 2.29
 
Latin America
Oil (MBBL) $ 98.53 $ 101.30 $ 92.16 $ 63.93 $ 88.00 $ 47.70 $ 55.19 $ 51.43
Natural Gas (MMCF) $ 10.81 $ 10.99 $ 9.88 $ 3.19 $ 8.94 $ 4.53 $ 5.49 $ 4.98
 
Middle East / North Africa
Oil ($/BBL) $ 104.65 $ 105.15 $ 102.19 $ 77.80 $ 96.34 $ 53.98 $ 56.48 $ 55.27
NGLs ($/BBL) $ 38.43 $ 32.00 $ 29.70 $ 25.37 $ 30.98 $ 21.57 $ 21.38 $ 21.46
 
Total Worldwide
Oil ($/BBL) $ 98.14 $ 99.30 $ 94.26 $ 71.58 $ 90.13 $ 48.50 $ 54.55 $ 51.60
NGLs ($/BBL) $ 41.70 $ 40.98 $ 38.20 $ 27.39 $ 37.01 $ 17.96 $ 18.06 $ 18.01
Natural Gas ($/MCF) $ 2.90 $ 2.68 $ 2.42 $ 2.21 $ 2.55 $ 1.66 $ 1.48 $ 1.57
 
Index Prices
WTI Oil ($/BBL) $ 98.68 $ 102.99 $ 97.17 $ 73.15 $ 93.00 $ 48.63 $ 57.94 $ 53.29
Brent Oil ($/BBL) $ 107.90 $ 109.77 $ 103.39 $ 76.98 $ 99.51 $ 55.17 $ 63.50 $ 59.33
NYMEX Natural Gas ($/MCF) $ 4.66 $ 4.55 $ 4.17 $ 3.99 $ 4.34 $ 3.07 $ 2.73 $ 2.90
 
Percentage of Index Prices
Worldwide oil as a percentage of WTI 99 % 96 % 97 % 98 % 97 % 100 % 94 % 97 %
Worldwide oil as a percentage of Brent 91 % 90 % 91 % 93 % 91 % 88 % 86 % 87 %
Worldwide NGL as a percentage of WTI 42 % 40 % 39 % 37 % 40 % 37 % 31 % 34 %
Worldwide NGL as a percentage of Brent 39 % 37 % 37 % 36 % 37 % 33 % 28 % 30 %
Domestic gas as a percentage of NYMEX 94 % 91 % 90 % 89 % 91 % 81 % 77 % 79 %
 

Schedule 9

                                         
Occidental Petroleum Corporation
Oil and Gas Costs
                                                   
20142015
Qtr 1    Qtr 2    Qtr 3    Qtr 4    YTDQtr 1    Qtr 2    Qtr 3    Qtr 4    YTD
 
Cash operating expenses ($/BOE)
United States $ 13.67 $ 14.63 $ 14.89 $ 14.94 $ 14.54 $ 14.46 $ 13.04 $ 13.74
Latin America $ 15.28 $ 21.05 $ 15.84 $ 13.90 $ 16.25 $ 9.95 $ 11.99 $ 10.90
Middle East/North Africa $ 11.55 $ 10.87 $ 11.30 $ 13.35 $ 11.83 $ 12.51 $ 11.03 $ 11.76
Total Oil and Gas $ 12.94 $ 13.34 $ 13.45 $ 14.18 $ 13.50 $ 13.36 $ 12.10 $ 12.72
 
Taxes other than on income ($/BOE)
United States $ 4.96 $ 4.76 $ 4.36 $ 3.86 $ 4.48 $ 3.14 $ 3.30 $ 3.20
Total Oil and Gas $ 2.83 $ 2.66 $ 2.42 $ 1.96 $ 2.45 $ 1.63 $ 1.85 $ 1.74
 
DD&A expense ($/BOE)
United States $ 17.46 $ 18.13 $ 18.63 $ 18.81 $ 18.26 $ 17.12 $ 17.82 $ 17.48
Latin America $ 13.65 $ 14.73 $ 13.73 $ 14.22 $ 14.14 $ 14.05 $ 14.66 $ 14.35
Middle East/North Africa $ 14.59 $ 14.91 $ 15.13 $ 17.73 $ 15.68 $ 13.41 $ 14.20 $ 13.82
Total Oil and Gas $ 16.12 $ 16.64 $ 16.90 $ 18.09 $ 16.97 $ 15.35 $ 16.06 $ 15.71
 
G&A and other operating expenses ($/BOE) $ 3.62 $ 4.23 $ 4.12 $ 3.68 $ 3.91 $ 3.58 $ 3.57 $ 3.59
 
Exploration Expense ($ millions)
United States $ 10 $ 14 $ 11 $ 35 $ 70 $ 5 $ 6 $ 11
Latin America 4 4
Middle East/North Africa   14       25       17       20       76   3       4                   7
$ 24     $ 39     $ 28     $ 59     $ 150 $ 8     $ 10    

 

 

   

 

 

    $ 18
 

Schedule 10

                       

Occidental Petroleum Corporation

Segment Core Income Pre-tax Variance Roll-forwards
(Amounts in millions)
                               
20142015  
Qtr 1  Qtr 2  Qtr 3  Qtr 4Qtr 1  Qtr 2  Qtr 3  Qtr 4  YTD

Quarter-over-Quarter

Oil & Gas
Prior quarter core income $ 1,752 $ 1,719 $ 1,703 $ 1,571 $ 736 $ 57
Sales price 27 13 (182 ) (845 ) (934 ) 217
Sales volume (146 ) 49 43 173 10 28
Operating expenses 66 (34 ) (19 ) (100 ) 101 30
DD&A rate (30 ) (10 ) 4 (14 ) 123 (5 )
Exploration expense 1 (15 ) 11 (37 ) 52 (3 )
All others   49       (19 )     11       (12 )   (31 )              
Current quarter core income $ 1,719     $ 1,703     $ 1,571     $ 736   $ 57     $ 324          
 
Chemical
Prior quarter core income $ 128 $ 136 $ 133 $ 140 $ 160 $ 139
Sales price 11 24 9 (30 ) (92 ) 2
Sales volume / mix 41 (2 ) (6 ) 4 (26 ) 16
Operations / manufacturing (39 ) (17 ) (1 ) 56 89 (20 )
All others   (5 )     (8 )     5       (10 )   8       (1 )        
Current quarter core income $ 136     $ 133     $ 140     $ 160   $ 139     $ 136          
 
Midstream and Marketing
Prior quarter core income $ 106 $ 96 $ 130 $ 155 $ 168 $ (5 )
Marketing (26 ) 31 13 11 (73 ) 59
Gas plants 53 (6 ) (26 ) (14 ) 1
Pipelines (51 ) 17 7 27 (83 ) 29
Power generation 17 (3 ) 3 (9 ) (3 )
All others   (3 )     (5 )     2       10                    
Current quarter core income $ 96     $ 130     $ 155     $ 168   $ (5 )   $ 84          
 

Year-over-Year

Oil & Gas
Prior year core income $ 1,542 $ 1,751 $ 1,973 $ 1,752 $ 1,719 $ 1,703 $ 3,422
Sales price 136 124 (291 ) (1,024 ) (1,923 ) (1,714 ) (3,637 )
Sales volume 61 (96 ) (50 ) 104 210 247 457
Operating expenses 6 (40 ) (36 ) (86 ) (51 ) 6 (45 )
DD&A rate (34 ) (49 ) (41 ) 4 102 84 186
Exploration expense 6 19 (1 ) (35 ) 19 28 47
All others   2       (6 )     17       21     (19 )     (30 )             (49 )
Current quarter core income $ 1,719     $ 1,703     $ 1,571     $ 736   $ 57     $ 324             $ 381  
 
Chemical
Prior year core income $ 159 $ 144 $ 181 $ 128 $ 136 $ 133 $ 269
Sales price (31 ) (5 ) 7 6 (88 ) (115 ) (203 )
Sales volume / mix 43 29 9 21 (44 ) (29 ) (73 )
Operations / manufacturing (19 ) (36 ) (65 ) 13 145 146 291
All others   (16 )     1       8       (8 )   (10 )     1               (9 )
Current quarter core income $ 136     $ 133     $ 140     $ 160   $ 139     $ 136             $ 275  
 
Midstream and Marketing
Prior year core income $ 183 $ 123 $ 125 $ 106 $ 96 $ 130 $ 226
Marketing (99 ) (9 ) 43 27 (21 ) 7 (14 )
Gas plants 9 7 22 (41 ) (33 ) (74 )
Pipelines 6 6 (19 ) (7 ) (26 ) (15 ) (41 )
Power generation 8 5 3 7 (12 ) (11 ) (23 )
All others   (2 )     (4 )     (4 )     13     (1 )     6               5  
Current quarter core income $ 96     $ 130     $ 155     $ 168   $ (5 )   $ 84             $ 79  
 

Schedule 11

Occidental Petroleum Corporation
Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com
or
Investors:
Christopher M. Degner
212-603-8111
christopher_degner@oxy.com
On the web: www.oxy.com