UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September 30, 2022~~March 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ___________ to ___________

Commission file number 1-9210

_____________________

OCCIDENTAL PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

95-4035997

(State or other jurisdiction of
incorporation or organization)

(I.R.S. Employer
Identification No.)

5 Greenway Plaza, Suite 110

Houston,

Texas

77046

(Address of principal executive offices) (Zip Code)

(713) 215-7000

(Registrant’s telephone number, including area code)

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
Warrants to Purchase Common Stock, $0.20 par value	OXY WS	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

þ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

þ Yes ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer þ Accelerated Filer ☐ Non-Accelerated Filer ☐

Smaller Reporting Company ☐ 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.

☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

☐ Yes þ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class

Outstanding as of ~~September 30, 2022~~April 28, 2023

Common Stock, $0.20 par value

~~908,914,149~~891,745,187


TABLE OF CONTENTS		PAGE

Part I		- Financial Information
Item 1.		Financial Statements (unaudited)
	Consolidated Condensed Balance Sheets — ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021~~2022	3
	Consolidated Condensed Statements of Operations — Three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021~~2022	5
	Consolidated Condensed Statements of Comprehensive Income (Loss) — Three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021~~2022	6
	Consolidated Condensed Statements of Cash Flows — ~~Nine~~Three months ended ~~September 30, 2022~~March 31, 2023 and ~~2021~~2022	7
	Consolidated Condensed Statements of Equity — Three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021~~2022	8
	Notes to Consolidated Condensed Financial Statements
	Note 1—General	109
	Note 2 —Revenue	1110
	Note 3—Inventories	1311

	Note ~~4—Divestitures~~ ~~and Other Transactions~~4 —Long-Term Debt	1411
	Note 5 —~~Long-Term Debt~~Derivatives	1413
	Note ~~6—Derivatives~~6 —I ncome Taxes	15

	Note 7 —Environmental Liabilities and Expenditures	15
	Note 78 —I~~ncome Taxes~~	17

	~~Note 8—Environmental Liabilities~~Lawsuits, Claims, Commitments and ~~Expenditures~~Contingencies	1918
	Note ~~9—Lawsuits, Claims, Commitments~~9 —Earnings per Share and ~~Contingencies~~Stockholders' Equity	20
	Note ~~10—Earnings per Share and Stockholders' Equity~~1 0 —Segments	22
		~~Note 11—Segments~~	23
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2423
	Cautionary Statement Regarding Forward-Looking Statements	2524
	Current Business Outlook	2625
	Consolidated Results of Operations and Items Affecting Comparability	2726
	Segment Results of Operations	3029
	Income Taxes	3432
	Liquidity and Capital Resources	3532
	Environmental Liabilities and Expenditures	3533
	Lawsuits, Claims, Commitments and Contingencies	3633
Item 3.		Quantitative and Qualitative Disclosures About Market Risk	3633
Item 4.		Controls and Procedures	3633
Part II		- Other Information
Item 1.		Legal Proceedings	3634
Item 1A.		Risk Factors	3634
Item 2.		Unregistered Sales of Equity Securities and Use of Proceeds	3734
Item 6.		Exhibits	3735

ABBREVIATIONS USED WITHIN THIS DOCUMENT


$/Bbl			price per barrel
Anadarko			Anadarko Petroleum Corporation and its consolidated subsidiaries
Andes			Andes Petroleum Ecuador Ltd.
AOC			Administrative Order on Consent
Bcf			billions of cubic feet
Berkshire Hathaway			Berkshire Hathaway Inc
Boe			barrels of oil equivalent
CERCLA			Comprehensive Environmental Response, Compensation, and Liability Act
CO2			carbon dioxide
~~DD&A~~DASS			~~depreciation, depletion and amortization~~Diamond Alkali Superfund Site
District Court			Federal District Court in the State of New Jersey
DSCC			Diamond Alkali Chemicals Company
DOJ			U.S. Department of Justice
EPA			U.S. Environmental Protection Agency
EPS			earnings per share
LIFO			last-in, first-out
Maxus			Maxus Energy Corporation
Mbbl			thousands of barrels
Mboe			thousands of barrels equivalent
Mboe/d			thousands of barrels equivalent per day
Mcf			thousand cubic feet
MMbbl			millions of barrels
MMcf			millions of cubic feet
NGL			natural gas liquids
NPL			National Priorities List
Occidental			Occidental Petroleum Corporation, a Delaware corporation and one or more entities in which it owns a controlling interest (subsidiaries)
OEPC			Occidental Exploration and Production Company
OPEC			Organization of the Petroleum Exporting Countries
OU			Operable Unit
OU4 UAO			Operable Unit 4 Unilateral Administrative Order
OxyChem			Occidental Chemical Corporation
PVC			polyvinyl chloride
RCF			revolving credit facility
Repsol			Repsol, S.A.
ROD			Record of Decision
~~Sonatrach~~			~~The national oil and gas company of Algeria~~
WES			Western Midstream Partners, LP
WES Operating			Western Midstream Operating, LP
WTI			West Texas Intermediate
YPF			YPF S.A.
Zero Coupons			Zero Coupon senior notes due 2036
~~2021~~2022 Form 10-K			Occidental’s Annual Report on Form 10-K for the year ended December 31, ~~2021~~2022, including any amendments thereto

PART I FINANCIAL INFORMATION

Item 1. Financial Statements (unaudited)


Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries


millions	millions	September 30, 2022		December 31, 2021		millions	March 31, 2023		December 31, 2022

ASSETS	ASSETS					ASSETS
CURRENT ASSETS	CURRENT ASSETS					CURRENT ASSETS
Cash and cash equivalents	Cash and cash equivalents	$	1,233	$	2,764	Cash and cash equivalents	$	1,165	$	984
Trade receivables, net		4,046		4,208
Trade receivables, net of reserves of $33 million in 2023 and $37 million in 2022						Trade receivables, net of reserves of $33 million in 2023 and $37 million in 2022	3,272		4,281
Inventories	Inventories	1,937		1,846		Inventories	2,311		2,059
Assets held for sale		—		72

Other current assets	Other current assets	1,533		1,321		Other current assets	1,394		1,562
Total current assets	Total current assets	8,749		10,211		Total current assets	8,142		8,886

INVESTMENTS IN UNCONSOLIDATED ENTITIES	INVESTMENTS IN UNCONSOLIDATED ENTITIES	3,156		2,938		INVESTMENTS IN UNCONSOLIDATED ENTITIES	3,161		3,176

PROPERTY, PLANT AND EQUIPMENT	PROPERTY, PLANT AND EQUIPMENT					PROPERTY, PLANT AND EQUIPMENT
Oil and gas	Oil and gas	103,236		101,251		Oil and gas	105,679		104,487
Chemical	Chemical	7,685		7,571		Chemical	7,851		7,808
Midstream and marketing	Midstream and marketing	7,669		8,371		Midstream and marketing	7,691		7,550
Corporate	Corporate	864		964		Corporate	905		889
Gross property, plant and equipment	Gross property, plant and equipment	119,454		118,157		Gross property, plant and equipment	122,126		120,734
Accumulated depreciation, depletion and amortization	Accumulated depreciation, depletion and amortization	(61,183)		(58,227)		Accumulated depreciation, depletion and amortization	(63,957)		(62,350)
Net property, plant and equipment	Net property, plant and equipment	58,271		59,930		Net property, plant and equipment	58,169		58,384

OPERATING LEASE ASSETS	OPERATING LEASE ASSETS	825		726		OPERATING LEASE ASSETS	852		903

LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	1,143		1,231		LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	1,276		1,260

TOTAL ASSETS	TOTAL ASSETS	$	72,144	$	75,036	TOTAL ASSETS	$	71,600	$	72,609

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.	The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.					The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries


millions, except share and per-share amounts	millions, except share and per-share amounts	September 30, 2022		December 31, 2021		millions, except share and per-share amounts	March 31, 2023		December 31, 2022

LIABILITIES AND EQUITY	LIABILITIES AND EQUITY					LIABILITIES AND EQUITY
CURRENT LIABILITIES	CURRENT LIABILITIES					CURRENT LIABILITIES
Current maturities of long-term debt (a)	Current maturities of long-term debt (a)	$	546	$	186	Current maturities of long-term debt (a)	$	139	$	165
Preferred stock redemption payable						Preferred stock redemption payable	712		—
Current operating lease liabilities	Current operating lease liabilities	248		186		Current operating lease liabilities	287		273
Accounts payable	Accounts payable	3,715		3,899		Accounts payable	3,514		4,029
Accrued liabilities	Accrued liabilities	3,426		4,046		Accrued liabilities	2,788		3,290
Liabilities of assets held for sale		—		7

Total current liabilities	Total current liabilities	7,935		8,324		Total current liabilities	7,440		7,757

LONG-TERM DEBT, NET
Long-term debt, net (b)		20,478		29,431

LONG-TERM DEBT, NET (b)						LONG-TERM DEBT, NET (b)	19,645		19,670

DEFERRED CREDITS AND OTHER LIABILITIES	DEFERRED CREDITS AND OTHER LIABILITIES					DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net	Deferred income taxes, net	5,304		7,039		Deferred income taxes, net	5,527		5,512
Asset retirement obligations	Asset retirement obligations	3,553		3,687		Asset retirement obligations	3,618		3,636
Pension and postretirement obligations	Pension and postretirement obligations	1,427		1,540		Pension and postretirement obligations	977		1,055
Environmental remediation liabilities	Environmental remediation liabilities	893		944		Environmental remediation liabilities	890		905
Operating lease liabilities	Operating lease liabilities	616		585		Operating lease liabilities	595		657
Other	Other	3,218		3,159		Other	3,349		3,332
Total deferred credits and other liabilities	Total deferred credits and other liabilities	15,011		16,954		Total deferred credits and other liabilities	14,956		15,097

STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY					STOCKHOLDERS' EQUITY
Preferred stock, at $1.00 per share par value (100,000 shares as of September 30, 2022 and December 31, 2021)		9,762		9,762
Common stock, at $0.20 per share par value, authorized shares: 1.5 billion, issued shares: 2022 — 1,098,408,209 shares and 2021 — 1,083,423,094 shares		220		217
Treasury stock: 2022 — 190,330,448 shares and 2021 — 149,348,394 shares		(13,192)		(10,673)
Preferred stock, at $1.00 per share par value (93,532 shares as of March 31, 2023 and 100,000 as of December 31, 2022)(c)						Preferred stock, at $1.00 per share par value (93,532 shares as of March 31, 2023 and 100,000 as of December 31, 2022)(c)	9,130		9,762
Common stock, at $0.20 per share par value, authorized shares: 1.5 billion, issued shares: 2023 — 1,102,716,163 shares and 2022 — 1,098,512,626 shares						Common stock, at $0.20 per share par value, authorized shares: 1.5 billion, issued shares: 2023 — 1,102,716,163 shares and 2022 — 1,098,512,626 shares	221		220
Treasury stock: 2023 — 211,164,919 shares and 2022 — 198,653,682 shares						Treasury stock: 2023 — 211,164,919 shares and 2022 — 198,653,682 shares	(14,524)		(13,772)
Additional paid-in capital	Additional paid-in capital	17,129		16,749		Additional paid-in capital	17,159		17,181
Retained earnings	Retained earnings	14,888		4,480		Retained earnings	17,318		16,499
Accumulated other comprehensive loss		(87)		(208)
Accumulated other comprehensive income						Accumulated other comprehensive income	255		195
Total stockholders' equity	Total stockholders' equity	28,720		20,327		Total stockholders' equity	29,559		30,085
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	72,144	$	75,036	TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	71,600	$	72,609

(a) Included ~~$141~~$139 million and ~~$85~~$143 million of current finance lease liabilities as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

(b) Included ~~$552~~$540 million and ~~$504~~$546 million of finance lease liabilities as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, respectively.

(c) Reduced for obligated redemptions. See Note 9 -Earnings Per Share and Stockholders' Equity in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


Consolidated Condensed Statements of Operations			Occidental Petroleum Corporation and Subsidiaries


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
millions, except per-share amounts	millions, except per-share amounts	2022		2021		2022		2021		millions, except per-share amounts	2023		2022

REVENUES AND OTHER INCOME	REVENUES AND OTHER INCOME									REVENUES AND OTHER INCOME
Net sales	Net sales	$	9,390	$	6,792	$	28,415	$	18,043	Net sales	$	7,225	$	8,349
Interest, dividends and other income	Interest, dividends and other income	37		18		122		142		Interest, dividends and other income	29		49
Gains on sales of assets and equity investments, net		74		5		232		119
Gains on sales of assets, net										Gains on sales of assets, net	4		135
Total	Total	9,501		6,815		28,769		18,304		Total	7,258		8,533

COSTS AND OTHER DEDUCTIONS	COSTS AND OTHER DEDUCTIONS									COSTS AND OTHER DEDUCTIONS
Oil and gas operating expense	Oil and gas operating expense	1,056		829		2,925		2,317		Oil and gas operating expense	1,081		864
Transportation and gathering expense	Transportation and gathering expense	378		360		1,089		1,053		Transportation and gathering expense	384		347
Chemical and midstream cost of sales	Chemical and midstream cost of sales	835		731		2,488		2,001		Chemical and midstream cost of sales	745		818
Purchased commodities	Purchased commodities	785		588		2,627		1,633		Purchased commodities	498		811
Selling, general and administrative expenses	Selling, general and administrative expenses	247		240		687		583		Selling, general and administrative expenses	241		196
Other operating and non-operating expense	Other operating and non-operating expense	319		256		909		762		Other operating and non-operating expense	308		299
Taxes other than on income	Taxes other than on income	427		289		1,188		743		Taxes other than on income	306		335
Depreciation, depletion and amortization	Depreciation, depletion and amortization	1,736		1,916		5,107		6,481		Depreciation, depletion and amortization	1,721		1,643
Asset impairments and other charges		—		17		—		173

Anadarko acquisition-related costs	Anadarko acquisition-related costs	4		29		82		122		Anadarko acquisition-related costs	—		65
Exploration expense	Exploration expense	47		31		98		145		Exploration expense	102		25
Interest and debt expense, net	Interest and debt expense, net	285		449		770		1,229		Interest and debt expense, net	238		371
Total	Total	6,119		5,735		17,970		17,242		Total	5,624		5,774

Income before income taxes and other items	Income before income taxes and other items	3,382		1,080		10,799		1,062		Income before income taxes and other items	1,634		2,759

OTHER ITEMS	OTHER ITEMS									OTHER ITEMS
Gains (losses) on interest rate swaps, net		70		(26)		332		150
Income from equity investments		196		163		586		463
Gains on interest rate swaps, net										Gains on interest rate swaps, net	—		135
Income from equity investments and other										Income from equity investments and other	100		189
Total	Total	266		137		918		613		Total	100		324

Income from continuing operations before income taxes		3,648		1,217		11,717		1,675
Income tax expense		(902)		(387)		(340)		(446)
Income from continuing operations		2,746		830		11,377		1,229
Loss from discontinued operations, net of tax		—		(2)		—		(444)
Income before income taxes										Income before income taxes	1,734		3,083
Income tax (expense) benefit										Income tax (expense) benefit	(471)		1,793

NET INCOME	NET INCOME	2,746		828		11,377		785		NET INCOME	1,263		4,876
Less: Preferred stock dividends		(200)		(200)		(600)		(600)
Less: Preferred stock dividends and redemption premiums										Less: Preferred stock dividends and redemption premiums	(280)		(200)
NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	2,546	$	628	$	10,777	$	185	NET INCOME ATTRIBUTABLE TO COMMON STOCKHOLDERS	$	983	$	4,676

PER COMMON SHARE	PER COMMON SHARE									PER COMMON SHARE
Income from continuing operations—basic		$	2.74	$	0.67	$	11.47	$	0.67
Loss from discontinued operations—basic		$	—	$	—	$	—	$	(0.47)

Net income attributable to common stockholders—basic	Net income attributable to common stockholders—basic	$	2.74	$	0.67	$	11.47	$	0.20	Net income attributable to common stockholders—basic	$	1.08	$	4.96

Income from continuing operations—diluted		$	2.52	$	0.65	$	10.64	$	0.65
Loss from discontinued operations—diluted		$	—	$	—	$	—	$	(0.46)

Net income attributable to common stockholders—diluted	Net income attributable to common stockholders—diluted	$	2.52	$	0.65	$	10.64	$	0.19	Net income attributable to common stockholders—diluted	$	1.00	$	4.65

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.	The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.									The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


Consolidated Condensed Statements of Comprehensive Income (Loss)			Occidental Petroleum Corporation and Subsidiaries


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
millions	millions	2022		2021		2022		2021		millions	2023		2022

Net income	Net income	$	2,746	$	828	$	11,377	$	785	Net income	$	1,263	$	4,876
Other comprehensive income (loss) items:	Other comprehensive income (loss) items:									Other comprehensive income (loss) items:
Gains on derivatives (a)	Gains on derivatives (a)	1		2		65		3		Gains on derivatives (a)	63		27
Pension and postretirement gains (losses) (b)	Pension and postretirement gains (losses) (b)	48		(45)		57		4		Pension and postretirement gains (losses) (b)	(5)		1
Other	Other	(1)		(1)		(1)		(1)		Other	2		—
Other comprehensive income (loss), net of tax		48		(44)		121		6
Other comprehensive income, net of tax										Other comprehensive income, net of tax	60		28
Comprehensive income attributable to preferred and common stockholders	Comprehensive income attributable to preferred and common stockholders	$	2,794	$	784	$	11,498	$	791	Comprehensive income attributable to preferred and common stockholders	$	1,323	$	4,904

(a) Net of tax expense of zero and $8 million for the three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021, and $18 million and zero for the nine months ended September 30, 2022 and 2021,~~ respectively.

(b) Net of tax ~~expense~~benefit of ~~$13~~$1 million and zero for the three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021, respectively, and $16 million and $13 million for the nine months ended September 30, 2022 and 2021,~~ respectively.

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


Consolidated Condensed Statements of Cash Flows			Occidental Petroleum Corporation and Subsidiaries


		Nine months ended September 30,					Three months ended March 31,
millions	millions	2022		2021		millions	2023		2022

CASH FLOW FROM OPERATING ACTIVITIES	CASH FLOW FROM OPERATING ACTIVITIES					CASH FLOW FROM OPERATING ACTIVITIES
Net income	Net income	$	11,377	$	785	Net income	$	1,263	$	4,876
Adjustments to reconcile net income to net cash provided by operating activities:	Adjustments to reconcile net income to net cash provided by operating activities:					Adjustments to reconcile net income to net cash provided by operating activities:
Discontinued operations, net		—		444

Depreciation, depletion and amortization of assets	Depreciation, depletion and amortization of assets	5,107		6,481		Depreciation, depletion and amortization of assets	1,721		1,643
Deferred income tax benefit		(1,765)		(192)
Asset impairments and other charges		—		173
Gain on sales of assets, net		(232)		(119)
Other noncash reconciling items		(461)		240
Deferred income tax provision (benefit)						Deferred income tax provision (benefit)	17		(2,240)

Gains on sales of assets, net						Gains on sales of assets, net	(4)		(135)
Noncash charges to income and other						Noncash charges to income and other	156		34
Changes in operating assets and liabilities:	Changes in operating assets and liabilities:					Changes in operating assets and liabilities:
(Increase) decrease in receivables		138		(1,366)
Decrease (increase) in receivables						Decrease (increase) in receivables	1,010		(1,238)
(Increase) decrease in inventories	(Increase) decrease in inventories	(96)		92		(Increase) decrease in inventories	(248)		439
Increase in other current assets	Increase in other current assets	(313)		(172)		Increase in other current assets	(122)		(158)
Increase (decrease) in accounts payable and accrued liabilities		(815)		593
Increase (decrease) in current domestic and foreign income taxes		(105)		63
Operating cash flow from continuing operations		12,835		7,022
Operating cash flow from discontinued operations, net of taxes		—		320
Decrease in accounts payable and accrued liabilities						Decrease in accounts payable and accrued liabilities	(1,174)		(187)
Increase in current domestic and foreign income taxes						Increase in current domestic and foreign income taxes	251		205

Net cash provided by operating activities	Net cash provided by operating activities	12,835		7,342		Net cash provided by operating activities	2,870		3,239

CASH FLOW FROM INVESTING ACTIVITIES	CASH FLOW FROM INVESTING ACTIVITIES					CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures	Capital expenditures	(2,977)		(1,933)		Capital expenditures	(1,461)		(858)
Change in capital accrual	Change in capital accrual	2		(83)		Change in capital accrual	(20)		(39)
Purchases of businesses and assets, net	Purchases of businesses and assets, net	(466)		(122)		Purchases of businesses and assets, net	(151)		(29)
Proceeds from sales of assets, net	Proceeds from sales of assets, net	562		1,005		Proceeds from sales of assets, net	54		267
Equity investments and other, net	Equity investments and other, net	(95)		(21)		Equity investments and other, net	(20)		(3)
Investing cash flow from continuing operations		(2,974)		(1,154)
Investing cash flow from discontinued operations		—		(48)

Net cash used by investing activities	Net cash used by investing activities	(2,974)		(1,202)		Net cash used by investing activities	(1,598)		(662)

CASH FLOW FROM FINANCING ACTIVITIES	CASH FLOW FROM FINANCING ACTIVITIES					CASH FLOW FROM FINANCING ACTIVITIES
Draws on receivables securitization facility		400		—
Payment of receivables securitization facility		(400)		—

Payments of long-term debt	Payments of long-term debt	(8,325)		(4,555)		Payments of long-term debt	(22)		(3,259)
Proceeds from issuance of common stock	Proceeds from issuance of common stock	291		24		Proceeds from issuance of common stock	30		27
Purchases of treasury stock	Purchases of treasury stock	(2,467)		—		Purchases of treasury stock	(732)		(36)

Cash dividends paid on common and preferred stock	Cash dividends paid on common and preferred stock	(863)		(630)		Cash dividends paid on common and preferred stock	(320)		(216)
Financing portion of net cash received (paid) for derivative instruments		61		(824)
Financing portion of net cash received for derivative instruments						Financing portion of net cash received for derivative instruments	—		79
Other financing, net	Other financing, net	(82)		(48)		Other financing, net	(36)		(24)
Financing cash flow from continuing operations		(11,385)		(6,033)
Financing cash flow from discontinued operations		—		(7)

Net cash used by financing activities	Net cash used by financing activities	(11,385)		(6,040)		Net cash used by financing activities	(1,080)		(3,429)

Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	(1,524)		100		Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents	192		(852)
Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period	Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period	2,803		2,194		Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period	1,026		2,803
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period	Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period	$	1,279	$	2,294	Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period	$	1,218	$	1,951

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.	The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.					The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


Consolidated Condensed Statements of Equity			Occidental Petroleum Corporation and Subsidiaries

Equity Attributable to Common Stock
millions, except per-share amounts Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Equity
Balance as of June 30, 2021 $ 9,762 $ 217 $ (10,668) $ 16,638 $ 2,533 $ (238) $ 18,244
Net income — — — — 828 — 828
Other comprehensive loss, net of
tax — — — — — (44) (44)
Dividends on common stock, $0.01 per share — — — — (9) — (9)
Dividends on preferred stock, $2,000 per share — — — — (200) — (200)
Issuance of common stock and
other, net — — — 54 — — 54
Balance as of September 30, 2021 $ 9,762 $ 217 $ (10,668) $ 16,692 $ 3,152 $ (282) $ 18,873


			Equity Attributable to Common Stock
millions, except per-share amounts	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity
Balance as of December 31, 2021	$	9,762	$	217	$	(10,673)	$	16,749	$	4,480	$	(208)	$	20,327
Net income	—		—		—		—		4,876		—		4,876
Other comprehensive income, net of tax	—		—		—		—		—		28		28
Dividends on common stock, $0.13 per share	—		—		—		—		(124)		—		(124)
Dividends on preferred stock, $2,000 per share	—		—		—		—		(200)		—		(200)
Shareholder warrants exercised	—		—		—		20		—		—		20
Options exercised	—		—		—		7		—		—		7
Issuance of common stock and other, net of cancellations	—		—		—		9		—		—		9
Purchases of treasury stock	—		—		(36)		—		—		—		$	(36)
Balance as of March 31, 2022	$	9,762	$	217	$	(10,709)	$	16,785	$	9,032	$	(180)	$	24,907


				Equity Attributable to Common Stock															Equity Attributable to Common Stock
millions, except per-share amounts	millions, except per-share amounts	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Equity		millions, except per-share amounts	Preferred Stock		Common Stock		Treasury Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income		Total Equity
Balance as of June 30, 2022		$	9,762	$	218	$	(11,391)	$	16,914	$	12,462	$	(135)	$	27,830
Balance as of December 31, 2022																Balance as of December 31, 2022	$	9,762	$	220	$	(13,772)	$	17,181	$	16,499	$	195	$	30,085
Net income	Net income	—		—		—		—		2,746		—		2,746		Net income	—		—		—		—		1,263		—		1,263
Other comprehensive income, net of tax	Other comprehensive income, net of tax	—		—		—		—		—		48		48		Other comprehensive income, net of tax	—		—		—		—		—		60		60
Dividends on common stock, $0.13 per share		—		—		—		—		(120)		—		(120)
Dividends on common stock, $0.18 per share																Dividends on common stock, $0.18 per share	—		—		—		—		(164)		—		(164)
Dividends on preferred stock, $2,000 per share	Dividends on preferred stock, $2,000 per share	—		—		—		—		(200)		—		(200)		Dividends on preferred stock, $2,000 per share	—		—		—		—		(200)		—		(200)
Preferred stock redemption - face value																Preferred stock redemption - face value	(647)		—		—		—		—		—		(647)
Preferred stock redemption - premium																Preferred stock redemption - premium	—		—		—		—		(65)		—		(65)
Preferred stock redemption value in excess of carrying value																Preferred stock redemption value in excess of carrying value	15		—		—		—		(15)		—		—
Shareholder warrants exercised	Shareholder warrants exercised	—		1		—		162		—		—		163		Shareholder warrants exercised	—		—		—		2		—		—		2
Options exercised	Options exercised	—		—		—		10		—		—		10		Options exercised	—		—		—		7		—		—		7
Issuance of common stock and other, net		—		1		—		43		—		—		44
Issuance of common stock and other, net of cancellations																Issuance of common stock and other, net of cancellations	—		1		—		(31)		—		—		(30)
Purchases of treasury stock	Purchases of treasury stock	—		—		(1,801)		—		—		—		(1,801)		Purchases of treasury stock	—		—		(752)		—		—		—		(752)
Balance as of September 30, 2022		$	9,762	$	220	$	(13,192)	$	17,129	$	14,888	$	(87)	$	28,720
Balance as of March 31, 2023																Balance as of March 31, 2023	$	9,130	$	221	$	(14,524)	$	17,159	$	17,318	$	255	$	29,559

The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.


~~Consolidated Condensed Statements of Equity~~			~~Occidental Petroleum Corporation and Subsidiaries~~

Equity Attributable to Common Stock
millions, except per-share amounts Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Equity
Balance as of December 31, 2020 $ 9,762 $ 216 $ (10,665) $ 16,552 $ 2,996 $ (288) $ 18,573
Net income — — — — 785 — 785
Other comprehensive income, net of
tax — — — — — 6 6
Dividends on common stock, $0.03 per share — — — — (29) — (29)
Dividends on preferred stock, $6,000 per share — — — — (600) — (600)
Issuance of common stock and
other, net — 1 — 140 — — 141
Purchases of treasury stock — — (3) — — — (3)
Balance as of September 30, 2021 $ 9,762 $ 217 $ (10,668) $ 16,692 $ 3,152 $ (282) $ 18,873

Equity Attributable to Common Stock
millions, except per-share amounts Preferred Stock Common Stock Treasury Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Equity
Balance as of December 31, 2021 $ 9,762 $ 217 $ (10,673) $ 16,749 $ 4,480 $ (208) $ 20,327
Net income — — — — 11,377 — 11,377
Other comprehensive income, net
  of tax — — — — — 121 121
Dividends on common stock,
  $0.39 per share
— — — — (369) — (369)
Dividends on preferred stock,
  $6,000 per share
— — — — (600) — (600)
Shareholder warrants exercised — 2 — 251 — — 253
Options exercised — — — 27 — — 27
Issuance of common stock and
  other, net — 1 — 102 — — 103
Purchases of treasury stock — — (2,519) — — — (2,519)
Balance as of September 30, 2022 $ 9,762 $ 220 $ (13,192) $ 17,129 $ 14,888 $ (87) $ 28,720

~~The accompanying notes are an integral part of these Consolidated Condensed Financial Statements.~~


Notes to Consolidated Condensed Financial Statements			Occidental Petroleum Corporation and Subsidiaries


NOTE 1 - GENERAL

NATURE OF OPERATIONS

Occidental conducts its operations through various subsidiaries and affiliates. Occidental has made its disclosures in accordance with United States generally accepted accounting principles as they apply to interim reporting, and condensed or omitted, as permitted by the U.S. Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in Consolidated Financial Statements and the notes thereto. These unaudited Consolidated Condensed Financial Statements should be read in conjunction with the audited Consolidated Financial Statements and the notes thereto in ~~Occidental's Annual Report on~~the 2022 Form ~~10-K for the year ended December 31, 2021.~~10-K.

In the opinion of Occidental’s management, the accompanying unaudited Consolidated Condensed Financial Statements in this report reflect all adjustments (consisting of normal recurring adjustments) that are necessary to fairly present Occidental’s results of operations and cash flows for the three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ and Occidental’s financial position as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021. Certain data in the Consolidated Condensed Financial Statements and notes for prior periods have been reclassified to conform to the current presentation.~~2022. The income and cash flows for the periods ended ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ are not necessarily indicative of the income or cash flows to be expected for the full year.

CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balances for the periods presented included investments in government money market funds in which the carrying value approximates fair value.

The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported in the Consolidated Condensed Statements of Cash Flows as of ~~September 30, 2022~~March 31, 2023 and ~~2021:~~2022:


							As of March 31,
millions	millions	2022		2021		millions	2023		2022
Cash and cash equivalents	Cash and cash equivalents	$	1,233	$	2,059	Cash and cash equivalents	$	1,165	$	1,909
Restricted cash and restricted cash equivalents included in other current assets	Restricted cash and restricted cash equivalents included in other current assets	31		220		Restricted cash and restricted cash equivalents included in other current assets	36		25
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net	Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net	15		15		Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net	17		17
Cash, cash equivalents, restricted cash and restricted cash equivalents	Cash, cash equivalents, restricted cash and restricted cash equivalents	$	1,279	$	2,294	Cash, cash equivalents, restricted cash and restricted cash equivalents	$	1,218	$	1,951

SUPPLEMENTAL CASH FLOW INFORMATION

The following table represents U.S. federal, domestic, state and international income taxes paid, tax refunds received and interest paid ~~related to continuing operations~~ during the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively:


							Three months ended March 31,
millions	millions	2022		2021		millions	2023		2022
Income tax payments	Income tax payments	$	1,885	$	502	Income tax payments	$	164	$	208
Income tax refunds received	Income tax refunds received	$	89	$	70	Income tax refunds received	$	—	$	70
Interest paid (a)	Interest paid (a)	$	1,236	$	1,432	Interest paid (a)	$	410	$	598

(a) Net of capitalized interest of ~~$50~~$19 million and ~~$46~~$11 million for the ~~nine~~three months ended ~~September 30,~~March 31, 2023 and 2022, ~~and 2021,~~ respectively.

~~BERKSHIRE HATHAWAY OWNERSHIP~~

Berkshire Hathaway is a related party of Occidental due to its ownership of Occidental's common stock. During the third quarter of 2022, Berkshire Hathaway increased its ownership in Occidental to approximately 194 million shares of common stock. Occidental has, from time to time, contracted with Berkshire Hathaway for the provision of electricity, rail and insurance. In addition, certain Berkshire Hathaway subsidiaries purchase various chemicals from our chemical segment. While these types of transactions between Berkshire Hathaway and Occidental have not been significant, Occidental will continue to assess the financial significance of our transactions with Berkshire Hathaway and its subsidiaries.

WES INVESTMENT

~~In July 2022, Occidental sold 10.0 million limited partner units of WES for proceeds of $253 million, resulting in a gain of $62 million.~~ As of ~~September 30, 2022,~~March 31, 2023, Occidental owned all of the 2.3% non-voting general partner interest and ~~49.4%~~49.5% of the limited partner units in WES. On a combined basis, with its 2% non-voting limited partner interest in WES Operating, Occidental's total effective economic interest in WES and its subsidiaries was ~~51.5%~~51.6%.

~~DISCONTINUED OPERATIONS~~

The nine months ended 2021 included a $412 million after-tax loss contingency in discontinued operations associated with its former operations in Ecuador, which was primarily recorded in the first quarter of 2021. See ~~Note~~ 9 ~~- Lawsuits, Claims, Commitments and Contingencies~~. In addition, the results of operations for Ghana for the nine months ended September 30, 2021, an after-tax loss of $32 million, are presented as discontinued operations. The Ghana assets were sold in October 2021.


NOTE 2 - REVENUE

Revenue from customers is recognized when obligations under the terms of a contract with our customers are satisfied; this generally occurs with the delivery of oil, NGL, gas, chemicals or services, such as transportation. As of ~~September 30, 2022,~~March 31, 2023, trade receivables, net of ~~$4.0~~$3.3 billion represent rights to payment for which Occidental has satisfied its obligations under a contract and its right to payment is conditioned only on the passage of time.

The following table shows a reconciliation of revenue from customers to total net sales for the three ~~and nine~~ months ended ~~September 30, 2022~~March 31, 2023 and ~~2021:~~2022:


		Three months ended September 30,				Nine months ended September 30,					Three months ended March 31,
millions	millions	2022		2021		2022		2021		millions	2023		2022

Revenue from customers	Revenue from customers	$	9,359	$	6,880	$	27,923	$	18,166	Revenue from customers	$	7,115	$	8,213
All other revenues (a)	All other revenues (a)	31		(88)		492		(123)		All other revenues (a)	110		136
Net sales	Net sales	$	9,390	$	6,792	$	28,415	$	18,043	Net sales	$	7,225	$	8,349

(a) Includes net marketing derivatives ~~collars and calls~~ and chemical exchange ~~contracts in 2021 and the same in 2022 with the exception of the collars and calls which expired on or before December 31, 2021.~~contracts.

DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

The table below presents Occidental's revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, NGL and gas at the lease or concession area. Chemical segment revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale:

millions United States International Eliminations Total
Three months ended September 30, 2022
Oil and gas
Oil $ 4,369 $ 1,061 $ — $ 5,430
NGL 658 127 — 785
Gas 786 88 — 874
Other 8 1 — 9
Segment total $ 5,821 $ 1,277 $ — $ 7,098
Chemical $ 1,572 $ 102 $ — $ 1,674
Midstream and marketing $ 859 $ 132 $ — $ 991
Eliminations $ — $ — $ (404) $ (404)
Consolidated $ 8,252 $ 1,511 $ (404) $ 9,359
millions United States International Eliminations Total
Three months ended September 30, 2021
Oil and gas
Oil $ 3,056 $ 766 $ — $ 3,822
NGL 642 90 — 732
Gas 399 76 — 475
Other 26 1 — 27
Segment total $ 4,123 $ 933 $ — $ 5,056
Chemical $ 1,329 $ 66 $ — $ 1,395
Midstream and marketing $ 543 $ 147 $ — $ 690
Eliminations $ — $ — $ (261) $ (261)
Consolidated $ 5,995 $ 1,146 $ (261) $ 6,880


millions	United States		International		Eliminations		Total

Three months ended March 31, 2023
Oil and gas
Oil	$	3,650	$	718	$	—	$	4,368
NGL	460		85		—		545
Gas	355		72		—		427
Other	(16)		1		—		(15)
Segment total	$	4,449	$	876	$	—	$	5,325
Chemical	$	1,308	$	94	$	—	$	1,402




Midstream and marketing	$	540	$	104	$	—	$	644
Eliminations	$	—	$	—	$	(256)	$	(256)
Consolidated	$	6,297	$	1,074	$	(256)	$	7,115

millions	United States		International		Eliminations		Total

Three months ended March 31, 2022
Oil and gas
Oil	$	4,048	$	751	$	—	$	4,799
NGL	698		62		—		760
Gas	455		58		—		513
Other	2		1		—		3
Segment total	$	5,203	$	872	$	—	$	6,075
Chemical	$	1,602	$	81	$	—	$	1,683




Midstream and marketing	$	648	$	99	$	—	$	747
Eliminations	$	—	$	—	$	(292)	$	(292)
Consolidated	$	7,453	$	1,052	$	(292)	$	8,213

1210

millions United States International Eliminations Total
Nine months ended September 30, 2022
Oil and gas
Oil $ 13,311 $ 2,958 $ — $ 16,269
NGL 2,139 302 — 2,441
Gas 1,916 225 — 2,141
Other 15 3 — 18
Segment total $ 17,381 $ 3,488 $ — $ 20,869
Chemical $ 4,984 $ 281 $ — $ 5,265
Midstream and marketing $ 2,410 $ 478 $ — $ 2,888
Eliminations $ — $ — $ (1,099) $ (1,099)
Consolidated $ 24,775 $ 4,247 $ (1,099) $ 27,923

millions United States International Eliminations Total
Nine months ended September 30, 2021
Oil and gas
Oil $ 8,548 $ 1,998 $ — $ 10,546
NGL 1,498 220 — 1,718
Gas 963 216 — 1,179
Other 18 2 — 20
Segment total $ 11,027 $ 2,436 $ — $ 13,463
Chemical $ 3,494 $ 175 $ — $ 3,669
Midstream and marketing $ 1,362 $ 430 $ — $ 1,792
Eliminations $ — $ — $ (758) $ (758)
Consolidated $ 15,883 $ 3,041 $ (758) $ 18,166


NOTE 3 - INVENTORIES

Finished goods primarily represent oil, which is carried at the lower of weighted-average cost or net realizable value, and caustic soda and chlorine, which are valued under the LIFO method. Inventories consisted of the following:

millions September 30, 2022 December 31, 2021
Raw materials $ 110 $ 96
Materials and supplies 882 783
Commodity inventory and finished goods 1,044 1,066
2,036 1,945
Revaluation to LIFO (99) (99)
Total $ 1,937 $ 1,846


~~NOTE 4 - DIVESTITURES AND OTHER TRANSACTIONS~~

In November 2021, Occidental entered into an agreement to sell certain non-strategic assets in the Permian Basin. The transaction closed in January 2022 for net cash proceeds of approximately $190 million. The difference in the proved assets' net book value and adjusted purchase price was treated as a normal retirement, which resulted in no gain or loss being recognized. The difference in the unproved assets' net book value and adjusted purchase price resulted in a gain on sale of approximately $123 million. The gain has been presented within gains on sales of assets and equity investments, net in the Consolidated Condensed Statements of Operations.


millions	March 31, 2023		December 31, 2022

Raw materials	$	125	$	120
Materials and supplies	958		913
Commodity inventory and finished goods	1,349		1,147
	2,432		2,180
Revaluation to LIFO	(121)		(121)
Total	$	2,311	$	2,059


NOTE 54 - LONG-TERM DEBT

As of March 31, 2023 and December 31, 2022, Occidental’s debt consisted of the following:


millions	March 31, 2023		December 31, 2022
8.750% medium-term notes due 2023	$	—	$	22
2.900% senior notes due 2024	654		654
6.950% senior notes due 2024	291		291
3.450% senior notes due 2024	111		111
5.875% senior notes due 2025	606		606
3.500% senior notes due 2025	137		137
5.500% senior notes due 2025	465		465
5.550% senior notes due 2026	870		870
3.200% senior notes due 2026	182		182
3.400% senior notes due 2026	284		284
7.500% debentures due 2026	112		112
8.500% senior notes due 2027	489		489
3.000% senior notes due 2027	216		216
7.125% debentures due 2027	150		150
7.000% debentures due 2027	48		48
6.625% debentures due 2028	14		14
7.150% debentures due 2028	232		232
7.200% senior debentures due 2028	82		82
6.375% senior notes due 2028	578		578
7.200% debentures due 2029	135		135
7.950% debentures due 2029	116		116
8.450% senior notes due 2029	116		116
3.500% senior notes due 2029	286		286
Variable rate bonds due 2030 (5.480% and 5.320% as of March 31, 2023 and December 31, 2022, respectively)	68		68
8.875% senior notes due 2030	1,000		1,000
(continued on next page)


millions (continued)	2023		2022
6.625% senior notes due 2030	1,449		1,449
6.125% senior notes due 2031	1,143		1,143
7.500% senior notes due 2031	900		900
7.875% senior notes due 2031	500		500
6.450% senior notes due 2036	1,727		1,727
Zero Coupon senior notes due 2036	673		673
4.300% senior notes due 2039	247		247
7.950% senior notes due 2039	325		325
6.200% senior notes due 2040	737		737
4.500% senior notes due 2044	191		191
4.625% senior notes due 2045	296		296
6.600% senior notes due 2046	1,117		1,117
4.400% senior notes due 2046	424		424
4.100% senior notes due 2047	258		258
4.200% senior notes due 2048	304		304
4.400% senior notes due 2049	280		280
7.730% debentures due 2096	58		58
7.500% debentures due 2096	60		60
7.250% debentures due 2096	5		5
Total borrowings at face value	$	17,936	$	17,958

The following table summarizes Occidental's outstanding debt, including finance lease liabilities:


millions	millions	September 30, 2022		December 31, 2021		millions	March 31, 2023		December 31, 2022
Total borrowings at face value	Total borrowings at face value	$	19,089	$	28,493	Total borrowings at face value	$	17,936	$	17,958
Adjustments to book value:	Adjustments to book value:					Adjustments to book value:
Unamortized premium, net	Unamortized premium, net	1,321		670		Unamortized premium, net	1,239		1,261
Debt issuance costs	Debt issuance costs	(79)		(135)		Debt issuance costs	(70)		(73)
Net book value of debt	Net book value of debt	$	20,331	$	29,028	Net book value of debt	$	19,105	$	19,146
Long-term finance leases	Long-term finance leases	552		504		Long-term finance leases	540		546
Current finance leases	Current finance leases	141		85		Current finance leases	139		143
Total debt and finance leases	Total debt and finance leases	$	21,024	$	29,617	Total debt and finance leases	$	19,784	$	19,835
Less: current maturities of financing leases	Less: current maturities of financing leases	(141)		(85)		Less: current maturities of financing leases	(139)		(143)
Less: current maturities of long-term debt	Less: current maturities of long-term debt	(405)		(101)		Less: current maturities of long-term debt	—		(22)
Long-term debt, net	Long-term debt, net	$	20,478	$	29,431	Long-term debt, net	$	19,645	$	19,670

DEBT ACTIVITY

In the ~~third~~first quarter of ~~2022, Occidental repaid debt with maturities ranging from 2024 through 2048 and a face value of $1.3 billion.~~

~~For the nine months ended September 30, 2022,~~2023, Occidental used ~~$8.3 billion of~~ cash on hand to repay debt maturities ranging from 2022 through 2049 with a face value of $9.4 billion and a net book value of $8.7 billion, which resulted in a gain of $143 million. Subsequent to September 30, 2022, but before the date of this filing, Occidental repaid additional debt principal of $191 million with maturities ranging from 2024 to 2049. Following these repayments, the face value of Occidental's debt was $18.9 billion.

~~In October, Occidental exercised a par call for all $340~~$22 million of its ~~2.70% Senior Notes due February~~8.750% medium-term notes upon maturity. Occidental has no remaining debt maturities in 2023. ~~The 2.70% Senior Notes will be redeemed on November 15, 2022.~~

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of ~~September 30, 2022~~March 31, 2023 and December 31, ~~2021,~~2022, substantially all of which was classified as Level 1, was approximately ~~$18.6~~$17.9 billion and ~~$31.1~~$17.6 billion, respectively.

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NOTE 65 - DERIVATIVES

OBJECTIVE AND STRATEGY

Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes. Occidental also enters into derivative financial instruments for trading purposes. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental may occasionally use a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, foreign currency fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes.

Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies, such as to lock in rates on debt issuances. The value of cash flow hedges was insignificant for all periods presented.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

As of ~~September 30, 2022,~~March 31, 2023, Occidental’s derivatives not designated as hedges consisted of marketing ~~derivatives and~~derivatives. Occidental retired all remaining outstanding interest rate ~~swaps.~~swaps in the twelve months ended December 31, 2022.

Derivative instruments that are not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact Occidental’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled.

MARKETING DERIVATIVES

Occidental's marketing derivative instruments not designated as hedges are short-duration physical and financial forward contracts. As of ~~September 30, 2022,~~March 31, 2023, the weighted-average settlement price of these forward contracts was ~~$86.82~~$77.70 per barrel and ~~$6.11~~$2.12 per Mcf for crude oil and natural gas, respectively. The weighted-average settlement price was ~~$74.85~~$81.37 per barrel and ~~$4.61~~$7.89 per Mcf for crude oil and natural gas, respectively, as of December 31, ~~2021.~~2022. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales.

The following table summarizes net short volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments:

long (short)

September 30, 2022

December 31, 2021

long (short)

March 31, 2023

December 31, 2022

Oil commodity contracts

Volume (MMbbl)

(28)

Volume (MMbbl)

(34)

(33)

Natural gas commodity contracts

Volume (Bcf)

(141)

(136)

Volume (Bcf)

(143)

(112)

~~INTEREST RATE SWAPS~~

Occidental's interest rate swap contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to the three-month London InterBank Offered Rate throughout the reference period. Net gains and losses associated with interest rate swaps are recognized currently in gains (losses) on interest rate swaps, net in the Consolidated Condensed Statements of Operations.

~~Occidental had the following outstanding interest rate swaps as of September 30, 2022:~~

millions, except percentages Mandatory Weighted-Average
Notional Principal Amount Reference Period Termination Date Interest Rate
$ 450 September 2017 - 2047 September 2023 6.445 %

Depending on market conditions, liability management actions or other factors, Occidental may enter into offsetting interest rate swap positions as well as amend or settle certain or all of the currently outstanding interest rate swaps.

Derivative settlements and collateralization are classified as cash flow from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified as cash flows from financing activities. Net cash receipts for the nine months ended September 30, 2022 related to interest rate

1513

~~swap agreements were $61 million, which included $86 million paid to settle interest rate swaps, periodic interest settlements of $34 million and the return of $181 million of collateral.~~

FAIR VALUE OF DERIVATIVES

The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when the derivatives are subject to netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets:


millions	millions	Fair Value Measurements Using						Netting (a)					Total Fair Value		millions	Fair Value Measurements Using								Netting (a)			Total Fair Value
Balance Sheet Classifications	Balance Sheet Classifications	Level 1		Level 2		Level 3				Balance Sheet Classifications		Level 1			Level 2		Level 3

September 30, 2022
March 31, 2023															March 31, 2023
Marketing Derivatives	Marketing Derivatives														Marketing Derivatives
Other current assets	Other current assets	$	1,921	$	210	$	—			$	(1,970)					$	161	Other current assets		$	1,025		$	99		$	—		$	(1,090)	$	34
Long-term receivables and other assets, net	Long-term receivables and other assets, net	84		1		—		(84)					1		Long-term receivables and other assets, net	9		2			—			(9)			2
Accrued liabilities		(1,828)		(159)		—		1,970					(17)
Deferred credits and other liabilities - other		(84)		—		—		84					—
Interest Rate Swaps

Accrued liabilities		—		(221)		—		—					(221)

December 31, 2021
Marketing Derivatives
Other current assets		$	1,516	$	173	$	—	$	(1,645)				$	44
Long-term receivables and other assets, net		4		1		—		(4)					1
Accrued liabilities		(1,608)		(196)		—		1,645					(159)
Deferred credits and other liabilities - other		(4)		—		—		4					—
Interest Rate Swaps

Accrued liabilities	Accrued liabilities	—		(315)		—		—					(315)		Accrued liabilities	(1,035)		(87)			—			1,090			(32)
Deferred credits and other liabilities - other	Deferred credits and other liabilities - other	—		(436)		—		—					(436)		Deferred credits and other liabilities - other	(9)		—			—			9			—

December 31, 2022															December 31, 2022
Marketing Derivatives															Marketing Derivatives
Other current assets															Other current assets	$	920	$	127		$	—		$	(980)		$	67
Long-term receivables and other assets, net															Long-term receivables and other assets, net	1		2			—			(1)			2
Accrued liabilities															Accrued liabilities	(938)		(96)			—			980			(54)
Deferred credits and other liabilities - other															Deferred credits and other liabilities - other	(1)		(1)			—			2			—

(a)These amounts do not include collateral. ~~As of September 30, 2022 and December 31, 2021, $64 million and $323~~Occidental netted $3 million of collateral ~~related to interest rate swaps had been netted~~deposited with brokers against derivative liabilities ~~respectively. Occidental netted $16 million of collateral received from brokers against derivative assets~~ related to marketing derivatives as of ~~September 30, 2022~~March 31, 2023 and netted ~~$110~~$15 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of December 31, ~~2021.~~2022.

GAINS AND LOSSES ON DERIVATIVES

The following table presents net gains ~~and (losses)~~ related to Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:


millions	millions	Three months ended September 30,				Nine months ended September 30,				millions	Three months ended March 31,
Income Statement Classification	Income Statement Classification	2022		2021		2022		2021		Income Statement Classification	2023		2022

Interest Rate Swaps	Interest Rate Swaps									Interest Rate Swaps
Gains (losses) on interest rate swaps, net		$	70	$	(26)	$	332	$	150
Gains on interest rate swaps, net (a)										Gains on interest rate swaps, net (a)	$	—	$	135
Marketing Derivatives	Marketing Derivatives									Marketing Derivatives
Net sales ~~(a)~~(b)	Net sales ~~(a)~~(b)	$	14	$	12	$	473	$	214	Net sales ~~(a)~~(b)	$	107	$	135
Collars and Calls
Net sales (b)		$	—	$	(101)	$	—	$	(339)

(a) Occidental retired all remaining outstanding interest rate swaps in the twelve months ended December 31, 2022.

(b)Includes derivative and non-derivative marketing activity.

~~(b)~~ ~~All of Occidental's calls and collars expired on or before December 31, 2021.~~

CREDIT RISK

Certain of Occidental's over-the-counter derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each party would need to post. The aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed as of ~~September 30, 2022~~March 31, 2023 was ~~$21 million (net of $64 million of collateral), which was primarily related to interest rate swaps.~~$9 million. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed as of December 31, ~~2021~~2022 was ~~$107 million (net of $323 million of collateral), which was primarily related to interest rate swaps.~~$18 million.


NOTE 76 - INCOME TAXES

~~LEGAL ENTITY REORGANIZATION~~

To align Occidental’s legal entity structure with the nature of its business activities after completing the acquisition of Anadarko and subsequent large scale post-acquisition divestiture program, management undertook a legal entity reorganization that was completed in the first quarter of 2022.

As a result of this legal entity reorganization, management made an adjustment to the tax basis in a portion of its operating assets, thus reducing Occidental’s deferred tax liabilities. Accordingly, in the first quarter of 2022, Occidental recorded an estimated non-cash tax benefit of $2.6 billion in connection with this reorganization. The timing of any reduction in Occidental’s future cash taxes as a result of this legal entity reorganization will be dependent on a number of factors, including prevailing commodity prices, capital activity level and production mix. Further refinement of the non-cash tax benefit may be necessary as Occidental finalizes its tax basis calculations, its 2022 tax returns and other information.

~~INFLATION REDUCTION ACT~~

In August 2022, Congress passed the Inflation Reduction Act which contains, among other provisions, a corporate book minimum tax on financial statement income, an excise tax on stock buybacks and certain tax incentives related to climate change and clean energy. Occidental is currently evaluating the provisions of this act. The ultimate impact of the Inflation Reduction Act to Occidental will depend on a number of factors including future commodity prices, interpretations and assumptions as well as additional regulatory guidance.

The following table summarizes components of income tax expense ~~on continuing operations for the three and nine months ended September 30, 2022 and 2021:~~

Three months ended September 30, Nine months ended September 30,
millions 2022 2021 2022 2021
Income from continuing operations before income taxes $ 3,648 $ 1,217 $ 11,717 $ 1,675
Current
Federal $ (297) $ (170) $ (1,152) $ (170)
State and Local (43) (23) (127) (12)
Foreign (290) (174) (826) (456)
Total current tax expense $ (630) $ (367) $ (2,105) $ (638)
Deferred
Federal (264) 19 1,718 35
State and Local 5 23 83 106
Foreign (13) (62) (36) 51
Total deferred tax benefit (expense) $ (272) $ (20) $ 1,765 $ 192
Total income tax expense $ (902) $ (387) $ (340) $ (446)
Income from continuing operations $ 2,746 $ 830 $ 11,377 $ 1,229
Worldwide effective tax rate 25 % 32 % 3 % 27 %

~~The 25% and 32% worldwide effective tax rates~~ for the three months ended ~~September 30, 2022~~March 31, 2023 and ~~2021, respectively, and~~2022:


	Three months ended March 31,
millions	2023			2022
Income before income taxes	$	1,734		$	3,083
Current
Federal	(265)			(215)
State and Local	(18)			(34)
Foreign	(171)			(198)
Total current tax expense	$	(454)		$	(447)
Deferred
Federal	(14)			2,213
State and Local	(3)			73
Foreign	—			(46)
Total deferred tax benefit (expense)	$	(17)		$	2,240
Total income tax benefit (expense)	$	(471)		$	1,793
Net income	$	1,263		$	4,876
Worldwide effective tax rate	27		%	(58)		%

The difference between the 27% worldwide effective tax rate for the ~~nine~~three months ended ~~September 30, 2021, were~~March 31, 2023 and the 21% U.S. federal statutory tax rate was primarily driven by Occidental's jurisdictional mix of income. U.S. income is taxed at a U.S. federal statutory rate of 21%, while international income is subject to tax at statutory rates as high as 55%. ~~These~~The difference between the (58)% worldwide effective ~~rates differ from~~rate for the 3%three months ended March 31, 2022 and the 21% U.S. federal statutory tax rate ~~for~~were primarily driven by the jurisdictional mix of income ~~from continuing operations for the nine months ended September 30, 2022, which was impacted by a non-cash~~as well as tax ~~benefit~~benefits associated with Occidental's legal entity reorganization, which is currently under IRS review as ~~described above.~~part of Occidental's 2022 federal tax audit.


NOTE 87 - ENVIRONMENTAL LIABILITIES AND EXPENDITURES

~~Occidental’s~~Occidental and its subsidiaries and their respective operations are subject to stringent federal, regional, state, provincial, tribal, local and international laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including CERCLA and similar federal, regional, state, provincial, tribal, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. Occidental or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at ~~operating, closed~~Third-Party, Currently Operated, and ~~third-party sites.~~Closed or Non-Operated Sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; ~~cleanup~~clean-up measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, natural resource damages, punitive damages, civil penalties, injunctive relief and government oversight costs.

ENVIRONMENTAL REMEDIATION

As of ~~September 30, 2022,~~March 31, 2023, certain Occidental subsidiaries participated in or monitored remedial activities or proceedings at ~~166~~161 sites. The following table presents ~~Occidental’s~~the current and non-current environmental remediation liabilities of such subsidiaries on a consolidated basis as of ~~September 30, 2022.~~March 31, 2023. The current portion ~~$155~~of $141 million is included in accrued liabilities and the ~~non-current portion, $893~~remainder of $890 million is included in deferred credits and other ~~liabilities-environmental~~liabilities - environmental remediation liabilities.

~~Occidental’s~~

These environmental remediation sites are grouped into ~~four categories: sites listed or proposed for listing by~~NPL Sites and the ~~U.S. EPA on the CERCLA NPL and~~following three categories of non-NPL ~~sites—third-party sites, Occidental-operated sites~~Sites—Third-Party Sites, Currently Operated Sites and ~~closed~~Closed or ~~non-operated Occidental sites.~~Non-Operated Sites.

millions, except number of sites Number of Sites Remediation Balance
NPL sites 30 $ 445
Third-party sites 71 237
Occidental-operated sites 13 105
Closed or non-operated Occidental sites 52 261
Total 166 $ 1,048


millions, except number of sites	Number of Sites	Remediation Balance
NPL Sites	30	$	440
Third-Party Sites	67	231
Currently Operated Sites	13	103
Closed or Non-Operated Sites	51	257
Total	161	$	1,031

As of ~~September 30, 2022, Occidental’s~~March 31, 2023, environmental remediation liabilities of Occidental subsidiaries exceeded $10 million each at 1617 of the ~~166~~161 sites described above, and 9995 of the sites had liabilities from ~~zero~~$0 to $1 million each. Based on current estimates, Occidental expects its subsidiaries to expend funds corresponding to approximately 40% of the period-end remediation balance ~~at the sites described above~~ over the next three ~~years~~ to four years ~~and~~with the ~~remaining balance at these sites~~remainder over the subsequent 10 or more years.

Occidental believes its range of reasonably possible additional losses of its subsidiaries beyond those ~~liabilities~~amounts currently recorded for environmental remediation ~~at these~~for the 161 environmental sites in the table above could be up to ~~$1.2~~$2.7 billion. The status of Occidental's involvement with the sites and related significant assumptions, including those sites indemnified by Maxus, has not changed materially since December 31, ~~2021.~~2022.

MAXUS ENVIRONMENTAL SITES

~~When Occidental acquired~~A significant portion of aggregate estimates of environmental remediation liabilities and reasonably possible additional losses described above relates to the former Diamond ~~Shamrock~~Alkali Chemicals Company (DSCC). When OxyChem acquired DSCC in 1986, Maxus ~~a subsidiary of YPF,~~ agreed to indemnify ~~Occidental~~OxyChem for a number of environmental sites, including the Diamond Alkali Superfund Site ~~along a portion of the Passaic River. On~~(DASS). In June ~~17,~~ 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in ~~Federal~~the U.S. Bankruptcy Court for the District ~~Court in the State~~ of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified ~~Occidental~~OxyChem in connection with ~~cleanup~~remediation costs and other ~~costs~~liabilities associated with the sites subject to the ~~indemnity, including~~indemnity. Any additional recovery of indemnified costs would come from the proceeds of litigation brought by the Maxus Liquidating Trust. For additional information on the Maxus Liquidating Trust, see Note 8 - Lawsuits, Claims, Commitments and Contingencies.

DIAMOND ALKALI SUPERFUND SITE

The EPA has organized the DASS into four Operable Units (OUs) for evaluating, selecting and implementing remediation under CERCLA. OxyChem’s current activities in each OU are summarized below, many of which are performed on OxyChem’s behalf by Glenn Springs Holdings, Inc.

OU1 – The Former Diamond Alkali ~~Superfund Site.~~Plant at 80-120 Lister Avenue in Newark, New Jersey: Maxus and its affiliates implemented an interim remedy of OU1 pursuant to a 1990 Consent Decree, for which OxyChem currently performs maintenance and monitoring. The EPA is conducting a periodic evaluation of the interim remedy for OU1.

OU2 – The Lower 8.3 Miles of the Lower Passaic River: In March 2016, the EPA issued a ~~ROD~~Record of Decision (ROD) specifying remedial actions required for ~~the lower 8.3 miles of the Lower Passaic River (OU-2 ROD). This ROD did not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay.~~OU2. During the third quarter of 2016, and following Maxus’s bankruptcy filing, OxyChem and the EPA entered into an ~~AOC~~Administrative Order on Consent (AOC) to complete the design of the ~~proposed cleanup plan outlined~~remedy selected in the ~~ROD at an estimated cost of $165 million. The~~OU2 ROD. At that time, the EPA sent notice letters to approximately 100 parties notifying them that they were potentially responsible to pay the costs to implement the remedy in OU2 and announced that it would pursue similar agreements with ~~other potentially responsible parties.~~

Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and remediation called for in the AOC and the OU-2 ROD as well as for certain other Maxus-indemnified sites. Occidental's accrued estimated environmental reserve does not consider any recoveries for indemnified costs. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental's allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be

~~incurred to comply with the AOC and the OU-2 ROD and to perform remediation at other Maxus-indemnified sites in light of the Maxus bankruptcy and the share of ultimate liability of~~ other potentially responsible parties. In June 2018, OxyChem filed a complaint under CERCLA in Federal District Court in the State of New Jersey (District Court) against numerous potentially responsible parties ~~for reimbursement~~seeking contribution and cost recovery of amounts incurred or to be incurred to comply with the AOC and the ~~OU-2~~OU2 ROD, or to perform other remediation activities atrelated to the ~~Diamond Alkali Superfund Site.~~DASS (2018 Contribution Action). The 2018 Contribution Action remains pending, but is stayed. The District Court has not adjudicated OxyChem’s relative share of responsibility for those costs. The EPA has estimated the cost to remediate OU2 to be approximately $1.4 billion.

OU3 – Newark Bay Study Area, including Newark Bay and Portions of the Hackensack River, Arthur Kill, and Kill van Kull: Maxus and its affiliates initiated a remedial investigation and feasibility study of OU3 pursuant to a 2004 AOC which was amended in 2010. OxyChem is currently performing feasibility study activities in OU3.

OU4 – The 17-mile Lower Passaic River Study Area, comprising OU2 and the Upper 9 Miles of the Lower Passaic River: In September 2021, the EPA issued a ROD ~~with an estimated cost of $441 million for~~selecting an interim remedy ~~plan~~ for the ~~upper nine miles~~portion of OU4 that excludes OU2, and is located upstream from the ~~Lower Passaic River (OU-4 ROD). At this time, Occidental's role or responsibilities~~Lister Avenue Plant site for which OxyChem inherited legal responsibility. The EPA had estimated the cost to remediate OU4, excluding OU2, to be approximately $440 million. The District Court has not adjudicated OxyChem's relative share of responsibility for costs under the ~~OU-4 ROD, and those of other potentially responsible parties, have not been determined with the EPA. In~~OU4 ROD. To provide continued, efficient remediation

progress, in January 2022, OxyChem offered to design and implement the interim remedy for ~~OU-4~~OU4 subject to certain ~~conditions.~~conditions, including a condition that the EPA would not seek to bar OxyChem’s right to pursue contribution or cost recovery from any other parties that are potentially responsible to pay for the OU4 interim remedy. In March 2022, the EPA sent a notice letter to OxyChem and other parties requesting good faith offers to implement the selected remedies at ~~OU-2~~OU2 and ~~OU-4.~~OU4. OxyChem ~~responded to the EPA's letter~~submitted a good faith offer in June 2022, reaffirming the offer to design the remedy for ~~OU-4~~OU4 and offering to enter into additional sequential agreements to remediate ~~OU-2~~OU2 and ~~OU-4,~~OU4, subject to ~~certain conditions.~~similar conditions, including that the EPA not seek to bar OxyChem from pursuing contribution or cost recovery from other responsible parties. The EPA ~~has~~did not ~~responded to~~accept OxyChem's June 2022 ~~response.~~

offer. In ~~June 2017,~~March 2023, the ~~court overseeing~~EPA issued a Unilateral Administrative Order (OU4 UAO) in which it directed and ordered OxyChem to design the ~~Maxus bankruptcy approved~~EPA’s selected interim remedy for OU4 and to provide approximately $93 million in financial assurance to secure its performance. OxyChem has commenced work to design the interim remedy in compliance with the OU4 UAO. As a ~~Plan~~result of ~~Liquidation~~OxyChem incurring costs to ~~liquidate Maxus~~implement the OU4 UAO, and ~~create a trust~~EPA's proposal to ~~pursue~~bar OxyChem's contribution claims against current and former parents and certain of their respective subsidiaries and affiliates of YPF and Repsol, as well as others to satisfy claims by Occidental and other creditors for past and future cleanup and other costs. In July 2017, the court-approved Plan of Liquidation became final and the trust became effective. The trust is pursuing claims against YPF, Repsol and others and is expected to distribute assets to Maxus' creditors in accordance with the trust agreement and Plan. In June 2018, the trust filed its complaint against YPF and Repsol in Delaware bankruptcy court asserting claims based upon, among other things, fraudulent transfer and alter ego. During 2019, the bankruptcy court denied Repsol's and YPF's motions to dismiss the complaint as well as their motions to move the case away from the bankruptcy court. The trust, YPF, and Repsol each filed motions for summary judgment, and the bankruptcy court denied all but one motionsettling parties, including those asserted in the ~~second quarter~~2018 Contribution Action, OxyChem filed a cost recovery action under CERCLA in March 2023 in the District Court against multiple parties (2023 Cost Recovery Action).

Natural Resource Trustees: In addition to the activities of ~~2022. Trial is set~~the EPA and OxyChem in the OUs described above, federal and state natural resources trustees are assessing natural resources in the Lower Passaic River and Greater Newark Bay to evaluate potential claims for ~~March 2023.~~natural resource damages.

ALDEN LEEDS LITIGATION

In December 2022, the EPA and the DOJ filed a proposed Consent Decree in the Alden Leeds litigation seeking court approval to settle with 85 parties for a total of $150 million and release them from liability for remediation costs in DASS OU2 and OU4, which OxyChem believes is based on a disproportionate allocation of responsibility to OxyChem despite overwhelming evidence regarding the responsibility of others, and, among other infirmities, is contrary to site-specific sampling and other relevant evidence concerning the liability of the settling parties. The EPA and the DOJ also seek entry of an order that would bar OxyChem from pursuing contribution against those parties for remediation costs OxyChem has incurred or may incur in the future to design and implement the remedies in OU2 and OU4.

In April 2023, the District Court granted OxyChem's request to intervene and participate in the Alden Leeds litigation as a party. OxyChem intends to challenge the proposed settlement vigorously and to seek contribution and cost recovery from other potentially responsible parties for remediation costs it has incurred or may incur at the DASS. OxyChem does not know when the District Court will rule on the propriety of the proposed settlement. If the proposed settlement is approved by the District Court and not overturned on appeal, then, notwithstanding OxyChem’s vigorous, good faith effort to contest the settlement proposed in the Alden Leeds litigation, the EPA could attempt to compel OxyChem to bear substantially all of the estimated cost to design and implement the OU2 and OU4 remedies, which could have a material adverse impact on OxyChem and Occidental’s consolidated results of operations in the period recorded.

While the remedies for OU2 and OU4 are expected to take over ten years to complete, the EPA may seek to require OxyChem to provide additional financial assurance. In the OU4 UAO, the EPA has directed OxyChem to post financial assurance in the amount of approximately $93 million. Subject to all defenses, OxyChem intends to comply with this directive. The amount of any additional financial assurance is not subject to estimation at this time. It is uncertain when or to what extent the EPA may take action to compel OxyChem to perform further remediation in OU2 or OU4 or the amount of financial assurance the EPA may attempt to require OxyChem to post. For further information on the Alden Leeds litigation, see No te 8 - Lawsuits, Claims, Commitments and Conting encies.

OTHER INFORMATION

For the DASS, OxyChem has accrued a reserve relating to its estimated allocable share of the costs to perform the maintenance and monitoring required in the OU1 Consent Decree, the design and implementation of remedies selected in the OU2 ROD and AOC and the OU4 ROD and OU4 UAO, and the remedial investigation and feasibility study required in OU3.

OxyChem’s accrued environmental remediation reserve does not reflect the potential for additional remediation costs or natural resource damages for the DASS that OxyChem believes are not reasonably estimable. OxyChem’s ultimate liability at the DASS may be higher or lower than the reserved amount and the reasonably possible additional losses, and is subject to final design plans, further action by the EPA and natural resource trustees, and the resolution of OxyChem's allocable share with other potentially responsible parties, among other factors.

OxyChem continues to evaluate the estimated costs currently recorded for remediation at the DASS and other Maxus-indemnified sites, as well as the range of reasonably possible additional losses beyond those amounts currently recorded. Given the complexity and extent of the remediation efforts, estimates of the remediation costs may increase or decrease over time as new information becomes available.


NOTE 98 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

LEGAL MATTERS

Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries are also ~~are~~ involved in proceedings under CERCLA and similar federal, regional, state, provincial, tribal, local and international environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, natural resource damages, punitive damages, civil penalties, injunctive relief and ~~injunctive relief.~~government oversight costs. Usually Occidental or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing ~~response~~remediation costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental or its subsidiary retains liability or indemnifies the other party for conditions that existed prior to the transaction.

In accordance with applicable accounting guidance, Occidental ~~accrues~~or its subsidiaries accrue reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserves for matters, other than for ~~environmental remediation and~~ the arbitration award ~~disclosed below,~~(disclosed below), tax matters and disputes or environmental remediation, that satisfy ~~this~~these criteria as of ~~September 30,~~March 31, 2023 and 2022 ~~and 2021~~ were not material to Occidental’s Consolidated Condensed Balance Sheets.

If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about legal matters and its experience in contesting, litigating and settling similar matters. Occidental reassesses the probability and estimability of contingent losses as new information becomes available.

ANDES ARBITRATION

In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental’s Participation Contract for Block 15. The awarded amount represented a recovery of Occidental's 60% of the value of Block 15. In 2017, Andes ~~filed a demand for~~commenced an arbitration, against OEPC, claiming it is entitled to a 40% share of the judgment amount obtained by Occidental. Occidental ~~contends~~contended that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60% economic interest in the block. OnIn March ~~26,~~ 2021, the arbitration tribunal issued an award in favor of Andes and against OEPC in the amount of $391 million plus interest. In June 2021, OEPC filed a motion to vacate the award due to concerns regarding the validity of the award. In December 2021, the U.S. District Court for the Southern District of New York confirmed the arbitration award, plus prejudgment interest, in the aggregate amount of $558 million. OEPC has appealed the judgment. Oral argument with respect to OEPC’s appeal occurred in February 2023, and a ruling is expected later this year. Andes has filed state court claims in New York and Delaware against OEPC, OPC and OXY USA to attempt to recover on its judgment against OEPC during the pendency of the appeal. The New York state court action against OPC was dismissed with prejudice in March 2023, and Andes filed its notice of appeal in April 2023. Andes also continues to attempt to recover on its judgment in New York federal court and in Delaware state court. All Occidental entities are vigorously defending against these actions. In addition, OEPC ~~has made a demand for~~commenced an arbitration against Andes to recover significant additional claims not addressed by the prior arbitration tribunal ~~that OEPC has against Andes~~ relating to Andes' 40% share of costs, liabilities, losses and expenses due under the farmout agreement and joint operating agreement to which Andes and OEPC are parties. A hearing on these claims occurred in December 2022. A ruling from the arbitration tribunal is expected in the first half of 2023.

ALDEN LEEDS AND OTHER LITIGATION

In December ~~2021,~~2022, the ~~U.S.~~EPA and the DOJ filed a proposed Consent Decree with the District Court ~~Southern District of New York confirmed the arbitration award, plus prejudgment interest,~~ in the ~~aggregate amount~~Alden Leeds litigation seeking court approval of ~~$558~~a proposed settlement in which the EPA seeks to release 85 potentially responsible parties from all remediation costs in OU2 and OU4 of the DASS for approximately $150 million. ~~OEPC has appealed~~OxyChem believes the ~~judgment.~~

~~If unfavorable outcomes~~proposed settlement relies, improperly, on an allocation report prepared by an EPA contractor in which the contractor purported to assign a disproportionate share of ~~these matters were~~the responsibility for remediation costs in OU2 and OU4 to ~~occur, future results~~OxyChem. In the proposed settlement, the EPA also seeks to bar OxyChem from pursuing contribution claims against the 85 settling parties for remediation costs in OU2 and OU4, including those asserted in OxyChem’s 2018 Contribution Action. The 2018 Contribution Action is currently stayed. The proposed settlement does not address the liability of ~~operations~~any party with respect to OU3 or ~~cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about~~natural resource damages. OxyChem intends to contest the ~~legal matters~~proposed settlement vigorously. As discussed above in Note 7 – Environmental Liabilities and ~~its experience~~Expenditures, in ~~contesting, litigating and settling similar matters. Occidental reassesses~~March 2023, the ~~probability and estimability of contingent losses as new information becomes available.~~EPA issued the OU4 UAO, which directs OxyChem

2018

to design the remedy for OU4. Subject to its defenses, OxyChem is complying with this order. Based upon the OU4 UAO, OxyChem also filed its 2023 Cost Recovery Action against multiple parties to recover costs incurred or that will be incurred to comply with the OU4 UAO.

The proposed EPA settlement was subject to a public comment period that closed in March 2023. OxyChem believes the proposed settlement exceeds the EPA’s statutory authority and is based on a flawed allocation process. OxyChem also believes that process was unreasonably limited in scope and unreliably based on voluntary reporting by the settling parties, instead of sworn evidence, publicly available sampling results and historical documents reflecting the operating history and disposal practices of the 85 parties that the EPA proposes to release as part of this settlement. OxyChem expects to show that the EPA’s proposed settlement does not fairly and reasonably reflect the settling parties’ contribution of hazardous substances to the DASS and, among other things, incorrectly attributes to OxyChem substances that were contributed by one or more of the 85 settling parties.

OxyChem's request to intervene in the Alden Leeds litigation has been granted. This intervention will allow OxyChem to protect its rights under federal law to challenge the proposed settlement, as well as the allocation report and process upon which the settlement is based. In the 2018 Contribution Action and 2023 Cost Recovery Action, OxyChem also intends to defend and prosecute vigorously its right to seek contribution and cost recovery from all potentially responsible parties to pay remediation costs in the DASS and to seek a judicial allocation of responsibility under CERCLA. As the Alden Leeds litigation is in its early stages, OxyChem is unable to estimate the timing of the District Court’s decision, its outcome, or the outcome of any appeals from the District Court’s decision.

MAXUS LIQUIDATING TRUST

As described in Note 7 – Environmental Liabilities and Expenditures, Maxus was contractually obligated to indemnify, defend, and hold harmless OxyChem against environmental liabilities arising from the former operations of DSCC. In June 2016, Maxus filed for bankruptcy protection in the U.S. Bankruptcy Court for the District of Delaware (the Bankruptcy Court). In June 2017, the Bankruptcy Court approved a Plan of Liquidation to liquidate Maxus and create the Trust for the benefit of Maxus’ creditors, including OxyChem, to pursue claims against Maxus’ current and former parents, YPF and Repsol, certain of their respective subsidiaries and affiliates, and others to satisfy claims by OxyChem and other creditors for past and future remediation and other costs. In July 2017, the court-approved Plan of Liquidation became final, and the Trust became effective. Pursuant to the Plan, the Trust is governed by an independent trustee and is not controlled by OxyChem. The Plan authorizes the Trust to distribute any assets it recovers from such litigation claims to the Trust’s beneficiaries, which include OxyChem and other creditors, in accordance with the Plan and governing Trust Agreement.

In June 2018, the Trust filed its complaint against YPF and Repsol in the Bankruptcy Court asserting claims based upon, among other things, fraudulent transfer and alter ego. During 2019, the Bankruptcy Court denied Repsol's and YPF's motions to dismiss the complaint as well as their motions to move the case to a different court. These rulings were upheld on appeal. The Trust, YPF and Repsol each filed motions for summary judgment, and the Bankruptcy Court denied all but one motion in the second quarter of 2022. The Bankruptcy Court’s summary judgment decision indicated that, at trial, the Trust must establish a causal link between its claimed damages and the alter ego conduct of YPF and Repsol. In April 2023, the Trust, YPF and Repsol reached an agreement to resolve the claims pending in the Bankruptcy Court. Related agreements were executed among the United States Government, YPF and Repsol as well as among OxyChem, YPF and Repsol. YPF and Repsol are required to pay the Trust $575 million, which the Trust will distribute according to the Plan. The agreements are subject to court and other approvals. If the settlement is approved, then OxyChem expects to recover proceeds of approximately $350 million during the second half of this year. OxyChem currently has a valuation allowance established against a substantial portion of its claims against Maxus. If the settlement is ultimately approved, OxyChem expects it will recognize a gain in excess of $200 million on the remeasurement of the valuation allowance.

TAX MATTERS AND DISPUTES

During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and international tax jurisdictions. Tax years through 2020 for U.S. federal income tax purposes have been audited by the IRS pursuant to its Compliance Assurance Program and subsequent taxable years are currently under review. Tax years through 2014 have been audited for state income tax purposes. Significant audit matters in international jurisdictions have been resolved through 2010. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law.

For Anadarko, its taxable years through 2014 and tax year 2016 for U.S. federal tax purposes have been audited by the IRS. Tax years through ~~2008~~2010 have been audited for state income tax purposes. There is one outstanding significant tax matter in an international jurisdiction related to a discontinued operation. As stated above, during the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law.

Other than the ~~matter~~dispute discussed below, Occidental believes that the resolution of these outstanding tax ~~matters~~disputes would not have a material adverse effect on its consolidated financial position or results of operations.

Anadarko received an $881 million tentative refund in 2016 related to its $5.2 billion Tronox Adversary Proceeding settlement payment in 2015. In September 2018, Anadarko received a statutory notice of deficiency from the IRS disallowing the net operating loss carryback and rejecting Anadarko’s refund claim. As a result, Anadarko filed a petition with the U.S. Tax Court to dispute the disallowances in November 2018. ~~The case was in~~In December 2022, the ~~IRS appeals process until the second quarter of 2020, however it has since been returned to the U.S.~~parties filed competing motions for partial summary judgment. The Tax Court ~~where a~~denied the motions and trial ~~date has been set for~~began on May ~~2023 and Occidental expects to continue pursuing resolution.~~1, 2023.

In accordance with ASC 740’s guidance on the accounting for uncertain tax positions, Occidental has recorded no tax benefit on the tentative cash tax refund of $881 million. As a result, should Occidental not ultimately prevail on the issue, there would be no additional tax expense recorded relative to this position for financial statement purposes other than future interest. However, in that event, Occidental would be required to repay approximately ~~$1.3~~$1.4 billion in federal taxes, $28 million in state taxes and accrued interest of ~~$369~~$453 million. A liability for this amount plus interest is included in deferred credits and other ~~liabilities-other.~~liabilities - other.

INDEMNITIES TO THIRD PARTIES

Occidental, its subsidiaries, or both, have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with ~~Occidental.~~Occidental or its subsidiaries. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of ~~September 30, 2022,~~March 31, 2023, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves.


NOTE 109 - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

The following table presents the ~~effects~~calculation of basic and diluted EPS attributable to common stockholders:


	Three months ended March 31,
millions except per-share amounts	2023		2022


Net income	$	1,263	$	4,876
Less: Preferred stock dividends and redemption premiums	(280)		(200)
Net income attributable to common stock	$	983	$	4,676
Less: Net income allocated to participating securities	(6)		(34)
Net income, net of participating securities	$	977	$	4,642
Weighted-average number of basic shares	901.2		936.7
Basic income per common share	$	1.08	$	4.96
Net income attributable to common stock	$	983	$	4,676
Less: Net income allocated to participating securities	(6)		(34)
Net income, net of participating securities	977		4,642
Weighted-average number of basic shares	901.2		936.7
Dilutive securities	74.1		61.0
Dilutive effect of potentially dilutive securities	975.3		997.7
Diluted income per common share	$	1.00	$	4.65

For the three months ended March 31, 2023, there were no Occidental common stock warrants nor options that were excluded from diluted shares. For the three months ended March 31, 2022, warrants and options covering approximately 84 million shares of Occidental common stock were excluded from diluted shares as their effect would have been anti-dilutive.

The following table presents Occidental's common share ~~repurchases as part of the~~activity, including its $3.0 billion stock repurchase plan announced in February ~~2022, along with~~2023, exercises of options and warrants, and other transactions in Occidental's ~~stock:~~common stock in the first quarter of 2023:

Period Exercise of Warrants and Options (a) Other (b) Treasury Stock Purchases (c) Common Stock Outstanding (d)
December 31, 2021 934,074,700
First Quarter 2022 1,082,282 2,764,746 (730,746) 937,190,982
Second Quarter 2022 3,409,920 42,342 (11,679,732) 928,963,512
Third Quarter 2022 7,667,545 18,280 (28,571,576) 908,077,761
Total 2022 12,159,747 2,825,368 (40,982,054) 908,077,761


Period	Exercise of Warrants and Options (a)	Other (b)	Treasury Stock Purchases	Common Stock Outstanding (c)
December 31, 2022				899,858,944
First Quarter 2023	268,371	3,935,166	(12,511,237)	891,551,244

(a) Approximately ~~$280~~$9 million of cash was received as a result of the exercise of common stock warrants and options.

(b) Consists of issuances from the 2015 long-term incentive plan, the OPC savings plan and the dividend reinvestment ~~plan and Anadarko restricted stock awards.~~plan.

(c) In addition to the 39.6 million shares that Occidental repurchased under its share repurchase plan during the nine months ended September 30, 2022, Occidental subsequently repurchased an additional 2.2 million shares under its share repurchase plan in the period from October 1, 2022, through November 7, 2022.

~~(d)~~ As of ~~September 30, 2022,~~March 31, 2023, Occidental has ~~104.1~~103.9 million outstanding warrants with a strike of ~~$22~~$22.00 per share and 83.9 million of warrants with a strike of $59.62 per share.

PREFERRED STOCK REDEMPTION

In connection with the Anadarko Acquisition, Occidental issued 100,000 shares of series A preferred stock, with a face value of $100,000 per share and a liquidation preference of $105,000 per share plus unpaid accrued dividends. Prior to August 2029, the agreement includes a mandatory redemption provision that obligates Occidental to redeem the preferred stock at a 10% premium to face value on a dollar-for-dollar basis for every dollar distributed to common shareholders (either via common stock dividends or share repurchases) above $4.00 per share, on a trailing 12-month basis. Preferred redemptions can settle between 30 and 60 days from the date Berkshire Hathaway is notified of the redemption obligation and accrued unpaid dividends are paid up to but not including the redemption date. Occidental cannot voluntarily redeem the preferred stock before August 2029. After August 2029, Occidental can voluntarily redeem the preferred stock at a 5% premium to face value.

Dividends on the preferred stock accrue on the face value at a rate per annum of 8%, but will be paid only when, and if, declared by Occidental’s Board of Directors. At any time, when such dividends have not been paid in full, the unpaid amounts will accrue dividends, compounded quarterly, at a rate per annum of 9%. Following the payment in full of any accrued but unpaid dividends, the dividend rate will remain at 9% per annum. If preferred dividends are not paid in full, Occidental is prohibited from paying dividends on common stock. Occidental paid $200 million in preferred stock dividends in the first quarter of 2023.

In March 2023, Occidental triggered the mandatory redemption provision. Occidental accrued redemptions of preferred stock with a face value of $647 million, and an additional $65 million premium. To the extent Occidental's trailing 12-month distributions to common shareholders remains above $4.00 per share, Occidental is required to continue to match any common shareholder distributions with preferred stock redemptions. Of the $712 million mandatory redemptions accrued as of March 31, 2023, $551 million of preferred stock redemptions, inclusive of a 10% premium, were settled in cash subsequent to March 31, 2023 but before the date of this filing.

The following table presents the ~~calculation~~number of ~~basic and diluted EPS attributable~~shares of preferred stock which were obligated to ~~common stockholders:~~be redeemed as of March 31, 2023.

Three months ended September 30, Nine months ended September 30,
millions except per-share amounts 2022 2021 2022 2021
Income from continuing operations $ 2,746 $ 830 $ 11,377 $ 1,229
Loss from discontinued operations — (2) — (444)
Net income $ 2,746 $ 828 $ 11,377 $ 785
Less: Preferred stock dividends (200) (200) (600) (600)
Net income attributable to common stock $ 2,546 $ 628 $ 10,777 $ 185
Less: Net income allocated to participating securities (18) (5) (76) (1)
Net income, net of participating securities $ 2,528 $ 623 $ 10,701 $ 184
Weighted-average number of basic shares 922.0 935.4 933.0 934.4
Basic income per common share $ 2.74 $ 0.67 $ 11.47 $ 0.20
Net income attributable to common stock $ 2,546 $ 628 $ 10,777 $ 185
Less: Net income allocated to participating securities (17) (5) (70) (1)
Net income, net of participating securities 2,529 623 10,707 184
Weighted-average number of basic shares 922.0 935.4 933.0 934.4
Dilutive securities 80.5 22.3 72.9 19.8
Dilutive effect of potentially dilutive securities 1,002.5 957.7 1,005.9 954.2
Diluted income per common share $ 2.52 $ 0.65 $ 10.64 $ 0.19


shares of Preferred stock			Three months ended March 31, 2023
Preferred stock, as of December 31, 2022			100,000
Less: Obligated redemptions			(6,468)
Preferred stock, as of March 31, 2023			93,532

~~For~~The carrying value of preferred stock is less than the ~~three~~face value. The difference between carrying value and ~~nine months ended 2022, there were no Occidental~~face value, along with the redemption premium, reduces net income available to common stockholders. The following presents the components of preferred stock ~~warrants nor options that were excluded from diluted shares. For the three~~dividends and ~~nine months ended 2021, warrants and options covering approximately 87 million shares of Occidental common stock were excluded from diluted shares as their effect would have been anti-dilutive.~~redemptions:


millions	March 31, 2023
Preferred dividends	$	200
Redemption premium	65
Redemption value in excess of carrying value	15
Preferred dividend and redemption premiums	$	280

2221


NOTE 1110 - SEGMENTS

Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses ~~Anadarko acquisition-related costs~~ and unallocated corporate expenses are included under corporate and eliminations. Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions. The following table presents Occidental’s industry segments:

millions
Oil and gas (a)
Chemical
Midstream and marketing (b)
Corporate and eliminations (c)
Total
Three months ended September 30, 2022
Net sales $ 7,098 $ 1,691 $ 1,005 $ (404) $ 9,390
Income (loss) from continuing operations before income taxes $ 3,345 $ 580 $ 104 $ (381) $ 3,648
Income tax expense — — — (902) (902)
Income (loss) from continuing operations $ 3,345 $ 580 $ 104 $ (1,283) $ 2,746
Three months ended September 30, 2021
Net sales $ 4,955 $ 1,396 $ 702 $ (261) $ 6,792
Income (loss) from continuing operations before income taxes $ 1,467 $ 407 $ 20 $ (677) $ 1,217
Income tax expense — — — (387) (387)
Income (loss) from continuing operations $ 1,467 $ 407 $ 20 $ (1,064) $ 830
millions
Oil and gas (a)
Chemical
Midstream and marketing (b)
Corporate and eliminations (c)
Total
Nine months ended September 30, 2022
Net sales $ 20,869 $ 5,284 $ 3,361 $ (1,099) $ 28,415
Income (loss) from continuing operations before income taxes $ 10,337 $ 2,051 $ 318 $ (989) $ 11,717
Income tax expense — — — (340) (340)
Income (loss) from continuing operations $ 10,337 $ 2,051 $ 318 $ (1,329) $ 11,377
Nine months ended September 30, 2021
Net sales $ 13,124 $ 3,671 $ 2,006 $ (758) $ 18,043
Income (loss) from continuing operations before income taxes $ 2,036 $ 970 $ 272 $ (1,603) $ 1,675
Income tax expense — — — (446) (446)
Income (loss) from continuing operations $ 2,036 $ 970 $ 272 $ (2,049) $ 1,229


millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Three months ended March 31, 2023
Net sales	$	5,325	$	1,405	$	751	$	(256)	$	7,225
Income (loss) before income taxes	$	1,640	$	472	$	2	$	(380)	$	1,734
Income tax expense	—		—		—		(471)		(471)
Net income (loss)	$	1,640	$	472	$	2	$	(851)	$	1,263

Three months ended March 31, 2022
Net sales	$	6,075	$	1,684	$	882	$	(292)	$	8,349
Income (loss) before income taxes	$	2,898	$	671	$	(50)	$	(436)	$	3,083
Income tax expense	—		—		—		1,793		1,793
Net income (loss)	$	2,898	$	671	$	(50)	$	1,357	$	4,876

(a) The three months ended ~~September 30, 2021~~March 31, 2023 included ~~$97~~a $26 million litigation settlement gain. The three months ended March 31, 2022 included $125 million of ~~oil, gas and CO~~2 ~~net derivative losses. The nine months ended September 30, 2022 included $147 million of~~ gains ~~primarily~~ related to the sale of certain non-strategic assets in the Permian Basin. ~~The nine months ended September 30, 2021 included $277 million of oil, gas and CO~~2 ~~net derivative losses and $173 million of asset impairments.~~

(b) The three ~~and nine~~ months ended ~~September 30,~~March 31, 2023 included a $26 million impairment charge included in Income from equity investments. The three months ended March 31, 2022 included ~~$84~~$198 million ~~and $186 million~~ of net derivative mark-to-market losses, respectively, and $62 million of gain on the sale of 10 million limited partner units in WES. The nine months ended September 30, 2021 included $124 million of gains on sales, primarily from the sale of 11.5 million limited partner units in WES, and $176 million in net derivative mark-to-market losses.

(c) The three months ended ~~September 30,~~March 31, 2022 included a ~~$70 million net gain on interest rate swaps. The nine months ended September 30, 2022 included a non-cash~~ tax benefit of $2.6 billion in connection with Occidental's legal entity reorganization, which is further discussed in the Income Taxes section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of this Form 10-Q, as well as ~~$332~~a $135 million of net gains on interest rate swaps, $143 million of net gains on early debt extinguishment and $82 million of Anadarko acquisition-related costs. The three months ended September 30, 2021 included $88 million of losses on debt tenders. The nine months ended September 30, 2021 also included $150 million of net gainsgain on interest rate swaps and ~~$122~~$65 million of Anadarko acquisition-related costs.

2322

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion should be read together with the Consolidated Condensed Financial Statements and the notes to the Consolidated Condensed Financial Statements, which are included in this report in Part I, Item 1; the information set forth in Risk Factors under Part II, Item 1A; the Consolidated Financial Statements and the notes to the Consolidated Financial Statements, which are included in Part II, Item 8 of Occidental's ~~Annual Report on~~2022 Form ~~10-K for the year ended December 31, 2021;~~10-K; and the information set forth in Risk Factors under Part I, Item 1A of the ~~2021~~2022 Form 10-K.


INDEX			PAGE
Cautionary Statement Regarding Forward-Looking Statements			2524
Current Business Outlook			2625
Consolidated Results of Operations and Items Affecting Comparability			2726
Segment Results of Operations			3029
Income Taxes			3432
Liquidity and Capital Resources			3532
Environmental Liabilities and Expenditures			3533
Lawsuits, Claims, Commitments and Contingencies			3633

2423


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

Portions of this report contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. 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, business strategy or financial position; 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,” "commit," "advance," “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 report. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.

Although Occidental believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results may differ from anticipated results, sometimes materially. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Occidental’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental’s ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Occidental’s credit ratings; the scope and duration of the global or regional health pandemics or epidemics, including the COVID-19 pandemic and ~~ongoing~~ actions taken by governmental authorities and other third parties in ~~response to the pandemic;~~connection therewith; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Occidental’s products and services; actions by OPEC and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Occidental's proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental's ability to timely obtain or maintain permits or other governmental approvals, including those necessary for drilling and/or development projects; Occidental's ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; Occidental’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental’s competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental’s oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit ~~markets;~~markets, including capital market disruptions and instability of financial institutions; governmental actions, war (including the Russia-Ukraine war) and political conditions and events; environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws, regulations and litigation (including the potential liability for remedial actions or assessments under existing or future laws, regulations and litigation); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, deep-water and onshore drilling and permitting regulations and environmental regulations (including regulations related to climate change)~~; environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws and regulations (including remedial actions)~~; Occidental's ability to recognize intended benefits from its business strategies and initiatives, such as Occidental's low carbon ventures businesses or announced greenhouse gas emissions reduction targets or net-zero goals; potential liability resulting from pending or future litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the creditworthiness and performance of Occidental's counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental’s ability to retain and hire key personnel; supply, transportation, and labor constraints; reorganization or restructuring of Occidental’s operations; changes in state, federal or international tax rates; and actions by third parties that are beyond Occidental's control.

Additional information concerning these and other factors that may cause Occidental’s results of operations and financial position to differ from expectations can be found in Occidental’s other filings with the SEC, including Occidental’s ~~2021~~2022 Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

2524


CURRENT BUSINESS OUTLOOK

Occidental’s operations, financial condition, cash flows and levels of expenditures are highly dependent on oil prices and, to a lesser extent, NGL and natural gas prices, the Midland-to-Gulf-Coast oil spreads, chemical product prices and inflationary pressures in the macro-economic environment. The average WTI price per barrel for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 was ~~$98.09,~~$76.13, compared to ~~$64.82~~$82.65 for the ~~nine~~three months ended ~~September 30, 2021. The return~~December 31, 2022. Oil prices decreased in the first quarter of ~~oil~~2023 as inflation and economic concerns signaled a potential decrease in energy demand, ~~to its pre-pandemic levels,~~despite the ongoing global impact of the Russia-Ukraine war and whether the oil industry will be able to sustain a continued supply response have resulted in a significant increase in benchmark oil prices year-over-year. Occidental does not operate or own assets in either Russia or Ukraine.war. It is expected that the price of oil will be volatile for the foreseeable future given the current geopolitical risks, evolving macro-economic environment ~~and recent activity from~~that impacts energy demand, future actions by OPEC and non-OPEC oil producing countries and the Biden ~~Administration.~~Administration's management of the U.S. Strategic Petroleum Reserve.

Occidental works to manage inflation impacts by capitalizing on operational efficiencies, locking in pricing on ~~longer term~~longer-term contracts and working closely with vendors to secure the supply of critical materials. As of ~~September 30, 2022,~~March 31, 2023, substantially all of Occidental's outstanding debt is fixed rate. ~~As interest rates have been increasing the fair value of our debt and interest rate swaps have decreased, this has resulted in more favorable terms to repay or settle such instruments.~~

~~2022~~2023 PRIORITIES

Occidental’s capital and operational priorities for ~~2022~~2023 are intended to maximize cash flow by sustaining ~~2021~~2022 production levels and maintaining capital discipline. Occidental intends to utilize operating cash flows to:

■~~continue to reduce financial leverage;~~

■~~maintain~~preserve and enhance its existing asset base with investments in its core cash-generative oil and gas and chemical businesses as well as emerging low-carbon businesses with a ~~robust liquidity position; and~~focus on its net-zero pathway;

■continue its shareholder return framework in the form of a sustainable common share dividend and an active share buyback ~~plan.~~plan, which could result in partial redemptions of the preferred stock further improving Occidental's financial position; and

■continue to opportunistically reduce financial leverage.

During the first ~~nine~~three months of ~~2022,~~2023, Occidental generated cash flow from ~~continuing~~ operations of ~~$12.8~~$2.9 billion and incurred capital expenditures of ~~$3.0~~$1.5 billion.

~~LIABILITY MANAGEMENT~~

Occidental repaid debt with maturities ranging from 2024 through 2048 and a face value of $1.3 billion. Subsequent to September 30, 2022, but before the date of this filing, Occidental repaid additional debt principal of $191 million with maturities ranging from 2024 to 2049. Following these repayments, the face value of Occidental's debt was $18.9 billion and near-term debt maturities are $362 million in 2023 and $1.3 billion in 2024. In October, Occidental exercised a par call for all $340 million of its 2.70% Senior Notes due February 2023, which will be redeemed on November 15, 2022. Cash on hand, cash flow from operations, funds available from the RCF and/or the receivables securitization facility could be used to service near term debt maturities.

For the nine months ended September 30, 2022, Occidental used $8.3 billion of cash, which reduced outstanding debt with a total face value of $9.4 billion and a net book value of $8.7 billion, which resulted in a gain of $143 million. In addition, in the third quarter of 2022, Occidental terminated interest rate swaps with a notional principal amount of $275 million for $86 million, which is net of collateral previously held by the bank.

DEBT RATINGS

As of ~~September 30, 2022,~~March 31, 2023, Occidental’s long-term debt was rated ~~Ba1~~Baa3 by Moody’s Investors Service, BB+ by Fitch Ratings and BB+ by Standard and Poor’s. ~~Occidental received~~Occidental's credit rating ~~upgrades from all three agencies~~was upgraded to investment grade by Moody's Investors Service in ~~the period from December 2021 through~~ March ~~2022.~~2023. Any downgrade in credit ratings could impact Occidental's ability to access capital markets and increase its cost of capital. In addition, ~~given that Occidental’s current debt ratings are non-investment grade,~~ Occidental or its subsidiaries may be requested, ~~and~~elect to provide or in some cases be required to provide collateral in the form of cash, letters of credit, surety bonds or other acceptable support as financial assurance of ~~its~~their performance and payment obligations under certain contractual arrangements such as pipeline transportation contracts, environmental remediation obligations, oil and gas purchase contracts and certain derivative instruments. Occidental has no remaining debt maturities in 2023.

SHAREHOLDER RETURNS

During the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, Occidental declared dividends to common shareholders of ~~$369~~$164 million or ~~$0.39~~$0.18 per share and repurchased ~~41.0~~12.5 million common shares at an average price of ~~$61.47.~~ $60.09 per share.

In March 2023, Occidental triggered the ~~period from October 1, 2022, through November 7, 2022,~~mandatory redemption provision. Occidental ~~repurchased~~accrued redemptions of preferred stock with a face value of $647 million, and an additional ~~2.2~~$65 million ~~shares~~premium. To the extent Occidental's trailing 12-month distributions to common shareholders remains above $4.00 per share, Occidental is required to continue to match any common shareholder distributions with preferred stock redemptions. Of the $712 million mandatory redemptions accrued as of March 31, 2023, $551 million, inclusive of the 10% premium, was settled for ~~$148 million under its share repurchase plan.~~cash subsequent to March 31, 2023 but before the date of this filing.

2625


CONSOLIDATED RESULTS OF OPERATIONS AND ITEMS AFFECTING COMPARABILITY

Occidental’s operations and cash flows can vary significantly based on changes in oil, NGL and natural gas prices and the prices it receives for its chemical products. Such changes in prices could result in adjustments in capital investment levels and how such capital is allocated, which could impact production volumes. Significant changes have occurred in the macro-economic environment over the previous year, which have ~~led~~impacted energy demand leading to ~~an increase~~decreases in commodity prices and chemical product pricing, and correspondingly Occidental's results of operations and cash flows. Occidental's results of operations and cash flows are driven by these macro-economic effects rather than seasonality. In accordance with the SEC final rule issued in November 2020, Occidental elected to discuss its results of operations on a sequential-quarter basis starting with Occidental’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022.

~~SELECTED STATEMENTS OF OPERATIONS ITEMS~~

The following ~~tables set~~table sets forth ~~consolidated sales from continuing operations as well as sales and~~ earnings of each operating segment and corporate items:

~~Q3 2022 compared to Q2 2022~~


									Three months ended
millions	millions	Three months ended September 30, 2022		% Change		Three months ended June 30, 2022		millions	March 31, 2023		December 31, 2022		March 31, 2022

Net sales (a)
Oil and gas		$	7,098	(8)	%	$	7,696
Chemical		1,691		(11)	%	1,909
Midstream and marketing		1,005		(32)	%	1,474
Eliminations		(404)		—	%	(403)
Total		9,390		(12)	%	10,676
Income from continuing operations

Net income								Net income
Oil and gas ~~(b)~~(a)	Oil and gas ~~(b)~~(a)	3,345		(18)	%	4,094		Oil and gas ~~(b)~~(a)	$	1,640	$	2,466	$	2,898
Chemical	Chemical	580		(28)	%	800		Chemical	472		457		671
Midstream and marketing ~~(b)~~(a)	Midstream and marketing ~~(b)~~(a)	104		(61)	%	264		Midstream and marketing ~~(b)~~(a)	2		(45)		(50)
Total	Total	4,029		(22)	%	5,158		Total	2,114		2,878		3,519
Unallocated Corporate Items ~~(b)~~(a)	Unallocated Corporate Items ~~(b)~~(a)							Unallocated Corporate Items ~~(b)~~(a)

Interest expense, net	Interest expense, net	(285)		(150)	%	(114)		Interest expense, net	(238)		(260)		(371)
Income tax expense		(902)		27	%	(1,231)
Income tax benefit (expense)								Income tax benefit (expense)	(471)		(473)		1,793
Other items, net	Other items, net	(96)		(66)	%	(58)		Other items, net	(142)		(218)		(65)
Income from continuing operations		$	2,746	(27)	%	$	3,755
Net income								Net income	$	1,263	$	1,927	$	4,876
Less: Preferred stock dividends and redemption premiums								Less: Preferred stock dividends and redemption premiums	$	(280)	$	(200)	$	(200)
Net income attributable to common stockholders								Net income attributable to common stockholders	$	983	$	1,727	$	4,676

Net income per share attributable to common stockholders - diluted								Net income per share attributable to common stockholders - diluted	$	1.00	$	1.74	$	4.65

(a) ~~Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions.~~

~~(b)~~ Refer ~~to the Items Affecting Comparability table which~~ ~~sets forth items affecting Occidental's earnings that vary widely and unpredictably in nature, timing and amount.~~

Net sales decreased for the three months ended September 30, 2022, compared to the immediately preceding quarter, primarily due to lower sulfur prices at Al Hosn Gas in the midstream and marketing segment, lower crude oil and NGL prices in the oil and gas segment, and, in the chemical segment, lower sales volumes across most product lines and lower realized PVC prices, partially offset by higher caustic soda prices. Decreases were partially offset by higher sales volumes and natural gas prices in the oil and gas segment and the timing impact of crude oil sales in the marketing business.

Purchased commodities decreased for the three months ended September 30, 2022, compared to the immediately preceding quarter, due to lower prices on third-party crude purchases related to the midstream and marketing segment.

Interest expense, net increased for the three months ended September 30, 2022, compared to the immediately preceding quarter, due to the net gains recorded in the second quarter for early debt repayments. See further discussion in ~~Note 5 - Long-Term Debt~~ ~~in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.~~

Income tax expense decreased for the three months ended September 30, 2022, compared to the immediately preceding quarter, primarily due to lower pre-tax income. See further discussion under the heading Income Taxes.

~~YTD 2022 compared to YTD 2021~~

millions Nine months ended September 30, 2022 % Change Nine months ended September 30, 2021
Net sales (a)
Oil and gas $ 20,869 59 % $ 13,124
Chemical 5,284 44 % 3,671
Midstream and marketing 3,361 68 % 2,006
Eliminations (1,099) (45) % (758)
Total 28,415 57 % 18,043
Income from continuing operations
Oil and gas (b)
10,337 408 % 2,036
Chemical 2,051 111 % 970
Midstream and marketing (b)
318 17 % 272
Total 12,706 288 % 3,278
Unallocated Corporate Items (b)
Interest expense, net (770) 37 % (1,229)
Income tax expense (340) 24 % (446)
Other items, net (219) 41 % (374)
Income from continuing operations $ 11,377 826 % $ 1,229

~~(a)~~ ~~Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions.~~

~~(b)~~ ~~Please refer~~ to the Items Affecting Comparability table which sets forth items affecting Occidental's earnings that vary widely and unpredictably in nature, timing and amount.

Net sales increased for the nine months ended September 30, 2022, compared to the same period in 2021, primarily due to higher crude oil, NGL and natural gas prices in the oil and gas segment and higher realized prices and improved demand across most chemical product lines.

Oil and gas operating expense increased for the nine months ended September 30, 2022, compared to the same period in 2021, primarily as a result of higher surface operations costs in the domestic operations and higher purchased injectant costs in the Permian.

Chemical and midstream cost of sales increased for the nine months ended September 30, 2022, compared to the same period in 2021, primarily as a result of higher raw material costs in the chemical segment and increased power generation costs in the midstream and marketing segment.

Purchased commodities increased for the nine months ended September 30, 2022, compared to the same period in 2021, due to higher prices on third-party crude purchases related to the midstream and marketing segment.

~~Taxes other than on income increased for the nine months ended September 30, 2022, compared to the same period of 2021, primarily due to higher production taxes, which are directly tied to revenues.~~

Depreciation, depletion and amortization expenses decreased for the nine months ended September 30, 2022, compared to the same period of 2021, primarily as a result of lower per Boe DD&A rates due to higher proved reserves as a result of positive program adds during 2021.

~~Interest and debt expense decreased for the nine months ended September 30, 2022, compared to the same period in 2021, due to lower outstanding debt as a result of debt repayments and debt tenders.~~

~~The loss from discontinued operations, net of tax for the nine months ended September 30, 2021 was primarily associated with Occidental's former operations in Ecuador, see~~ ~~Note~~ 9 ~~- Lawsuits, Claims, Commitments and Contingenciesin the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.~~

~~INCOME FROM CONTINUING OPERATIONS~~

~~Q3 2022 compared to Q2 2022~~

Excluding the impact of Items Affecting Comparability detailed in the table below, the decrease in income from continuing operations for the three months ended September 30, 2022, compared to the three months ended June 30, 2022, was primarily due to lower crude oil and NGL prices in the oil and gas segment and lower sales volumes across most chemical product lines and lower PVC prices in the chemical segment, partially offset by higher sales volumes and natural gas prices in the oil and gas segment.

~~YTD 2022 compared to YTD 2021~~

Excluding the impact of Items Affecting Comparability detailed in the table below, the increase in income from continuing operations for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, was

2826

~~primarily due to higher crude oil, natural gas liquids and natural gas prices in the oil and gas segment and higher realized pricing across most chemical product lines.~~

ITEMS AFFECTING COMPARABILITY

The following table sets forth items affecting the comparability of Occidental's earnings that vary widely and unpredictably in nature, timing and amount:


		Three months ended				Nine months ended September 30,					Three months ended
millions	millions	September 30, 2022		June 30, 2022		2022		2021		millions	March 31, 2023		December 31, 2022		March 31, 2022
Oil and gas	Oil and gas									Oil and gas
Asset impairments - domestic		$	—	$	—	$	—	$	(173)
Asset sales gains, net	Asset sales gains, net	10		22		157		2		Asset sales gains, net	$	—	$	46	$	125
Oil, gas and CO2 derivative losses, net		—		—		—		(277)
Legal settlement gain										Legal settlement gain	26		—		—
Total oil and gas	Total oil and gas	10		22		157		(448)		Total oil and gas	26		46		125

Midstream and marketing	Midstream and marketing									Midstream and marketing
Asset sales gains, net	Asset sales gains, net	62		—		62		124		Asset sales gains, net	—		36		—

Derivative gains (losses), net		(84)		96		(186)		(176)
Asset impairments (a)										Asset impairments (a)	(26)		—		—
Derivative losses, net										Derivative losses, net	(8)		(73)		(198)
Total midstream and marketing	Total midstream and marketing	(22)		96		(124)		(52)		Total midstream and marketing	(34)		(37)		(198)

Corporate	Corporate									Corporate
Anadarko acquisition-related costs	Anadarko acquisition-related costs	(4)		(13)		(82)		(122)		Anadarko acquisition-related costs	—		(7)		(65)
Interest rate swap gains, net		70		127		332		150
Maxus environmental reserve adjustment		—		(22)		(22)		—
Early debt extinguishment gains (losses)		(18)		179		143		(88)
Interest rate swap gains (losses), net										Interest rate swap gains (losses), net	—		(15)		135

Early debt extinguishment										Early debt extinguishment	—		6		(18)
Total corporate	Total corporate	48		271		371		(60)		Total corporate	—		(16)		52

Income tax impact of legal entity reorganization	Income tax impact of legal entity reorganization	42		—		2,636		—		Income tax impact of legal entity reorganization	—		123		2,594
Exploration license expiration tax benefit		10		13		23		—

State tax rate revaluation	State tax rate revaluation	—		—		(29)		55		State tax rate revaluation	—		—		(29)
Income taxes	Income taxes	(7)		(87)		(89)		123		Income taxes	2		11		5
Income (loss) from continuing operations		81		315		2,945		(382)
Income (loss)										Income (loss)	(6)		127		2,549
Preferred redemption premiums										Preferred redemption premiums	(80)		—		—

Discontinued operations, net of taxes (a)		—		—		—		(444)
Total	Total	81		315		2,945		(826)		Total	$	(86)	$	127	$	2,549

(a) Included in ~~discontinued operations,~~Income from equity investments and other in the Consolidated Condensed Statement of Operations.

Q1 2023 compared to Q4 2022

Excluding items affecting comparability, the decrease in net ~~of taxes~~income for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2023, compared to the three months ended December 31, 2022, was primarily due to lower crude oil and domestic natural gas commodity prices, and lower international sales volumes in the oil and gas segment.

Q1 2023 compared to Q1 2022

Excluding items affecting comparability, the decrease in net income for the three months ended March 31, 2023, compared to the three months ended March 31, 2022, was primarily due to lower crude oil and domestic NGL and natural gas commodity prices in the oil and gas segment, and lower realized PVC prices and lower demand across most product lines in the chemical segment, partially offset by higher worldwide oil and gas sales volumes.

SELECTED STATEMENTS OF OPERATIONS ITEMS


	Three months ended
millions	March 31, 2023		December 31, 2022		March 31, 2022
Net sales	$	7,225	$	8,219	$	8,349
Interest, dividends and other income	$	29	$	31	$	49
Gain on sale of assets, net	$	4	$	76	$	135
Oil and gas operating expense	$	1,081	$	1,103	$	864
Transportation and gathering expense	$	384	$	386	$	347
Chemical and midstream cost of sales	$	745	$	785	$	818
Purchased commodities	$	498	$	660	$	811
Selling, general and administrative expenses	$	241	$	258	$	196
Other operating and non-operating expense	$	308	$	362	$	299
Taxes other than on income	$	306	$	360	$	335
Depreciation, depletion and amortization	$	1,721	$	1,819	$	1,643

Anadarko acquisition-related costs	$	—	$	7	$	65
Exploration expense	$	102	$	118	$	25
Interest and debt expense, net	$	238	$	260	$	371
Gains (losses) on interest rate swaps, net	$	—	$	(15)	$	135
Income from equity investments and other	$	100	$	207	$	189
Income tax benefit (expense)	$	(471)	$	(473)	$	1,793

Q1 2023 compared to Q4 2022

Net sales decreased for the three months ended March 31, 2023, compared to the three months ended December 31, 2022, primarily due to lower crude oil and domestic natural gas commodity prices and lower international sales volumes in the oil and gas segment.

Purchased commodities decreased for the three months ended March 31, 2023, compared to the three months ended December 31, 2022, due to lower prices on third-party crude purchases related to the midstream and marketing segment.

Q1 2023 compared to Q1 2022

Net sales decreased for the three months ended March 31, 2023, compared to the same period in 2022, primarily due to lower crude oil and domestic NGL and natural gas commodity prices in the oil and gas segment, as well as lower realized PVC prices and sales volumes across most products in the chemical segment.

Oil and gas operating expense increased for the three months ended March 31, 2023, compared to the same period in 2022, primarily as a ~~loss contingency~~result of higher workover and maintenance costs due to increased domestic activities.

Purchased commodities decreased for the three months ended March 31, 2023, compared to the same period in 2022, due to lower prices on third-party crude purchases related to the midstream and marketing segment.

The income tax expense for the three months ended March 31, 2023, compared to a benefit for the same period in 2022, resulted primarily from the tax benefit associated with Occidental's ~~former operations in Ecuador, see~~ ~~Note~~ 9 ~~- Lawsuits, Claims, Commitments and Contingencie~~s ~~in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q~~legal entity reorganization. See Income Taxes section for ~~additional information. Results of operations for Ghana were also included in discontinued operations. The Ghana assets were sold in October 2021.~~further discussion.

2928


SEGMENT RESULTS OF OPERATIONS

SEGMENT RESULTS OF OPERATIONS

Occidental’s principal businesses consist of three reporting segments: oil and gas, chemical and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, NGL and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil (which includes condensate), NGL, natural gas, CO2 and power. It also optimizes its transportation and storage capacity and invests in entities that conduct similar activities such as WES.

The midstream and marketing segment also includes Occidental's low carbon ventures businesses. Occidental's low carbon ventures businesses seek to leverage Occidental’s legacy of carbon management expertise to develop carbon capture, utilization and storage projects, including the commercialization of direct air capture technology, invest in other low-carbon technologies intended to reduce greenhouse gas emissions from its operations and strategically partner with other industries to help reduce their emissions.

OIL AND GAS SEGMENT

The following table sets forth the average sales volumes per day for oil and NGL in Mbbl and for natural gas in MMcf:


		Three months ended		Nine months ended September 30,			Three months ended
		September 30, 2022	June 30, 2022	2022	2021		March 31, 2023	December 31, 2022	March 31, 2022
Sales Volumes per Day	Sales Volumes per Day					Sales Volumes per Day
Oil (Mbbl)	Oil (Mbbl)					Oil (Mbbl)
United States	United States	508	495	495	496	United States	551	542	483
International	International	114	121	111	118	International	103	119	97
NGL (Mbbl)	NGL (Mbbl)					NGL (Mbbl)
United States	United States	233	225	223	214	United States	243	238	210
International	International	38	34	31	33	International	28	41	23
Natural Gas (MMcf)	Natural Gas (MMcf)					Natural Gas (MMcf)
United States	United States	1,217	1,191	1,210	1,303	United States	1,319	1,244	1,219
International	International	497	458	437	471	International	414	497	347
Total Continuing Operations Volumes (Mboe) (a)		1,179	1,150	1,135	1,157
Operations Exited or Exiting (b)		—	—	—	24

Total Sales Volumes (Mboe) (a)	Total Sales Volumes (Mboe) (a)	1,179	1,150	1,135	1,181	Total Sales Volumes (Mboe) (a)	1,214	1,230	1,074

(a) Natural gas volumes have been converted to Boe based on energy content of six Mcf of gas to one barrel of oil. Barrels of oil equivalent does not necessarily result in price equivalency.

~~(b)~~ ~~Operations exited or exiting consisted of Ghana.~~

3029

The following table presents information about Occidental's average realized prices and index prices:


		Three months ended						Nine months ended September 30,							Three months ended
		September 30, 2022			June 30, 2022			2022			2021				March 31, 2023			December 31, 2022			March 31, 2022
Average Realized Prices	Average Realized Prices													Average Realized Prices
Oil ($/Bbl)	Oil ($/Bbl)													Oil ($/Bbl)
United States	United States	$	93.43		$	108.64		$	98.43		$	63.16		United States	$	73.63		$	82.41		$	93.23
International	International	$	101.46		$	103.99		$	97.72		$	61.98		International	$	77.42		$	89.23		$	85.42
Total Worldwide	Total Worldwide	$	94.89		$	107.72		$	98.30		$	62.94		Total Worldwide	$	74.22		$	83.64		$	91.91
NGL ($/Bbl)	NGL ($/Bbl)													NGL ($/Bbl)
United States	United States	$	35.04		$	42.80		$	39.38		$	28.20		United States	$	23.39		$	25.43		$	40.60
International	International	$	36.32		$	36.92		$	35.14		$	24.32		International	$	32.98		$	31.69		$	30.44
Total Worldwide	Total Worldwide	$	35.22		$	42.04		$	38.85		$	27.68		Total Worldwide	$	24.41		$	26.35		$	39.61
Natural Gas ($/Mcf)	Natural Gas ($/Mcf)													Natural Gas ($/Mcf)
United States	United States	$	7.06		$	6.25		$	5.83		$	2.84		United States	$	3.01		$	4.45		$	4.17
International	International	$	1.92		$	1.89		$	1.89		$	1.68		International	$	1.95		$	1.89		$	1.85
Total Worldwide	Total Worldwide	$	5.57		$	5.03		$	4.79		$	2.53		Total Worldwide	$	2.76		$	3.72		$	3.66

Average Index Prices	Average Index Prices													Average Index Prices
WTI oil ($/Bbl)	WTI oil ($/Bbl)	$	91.55		$	108.41		$	98.09		$	64.82		WTI oil ($/Bbl)	$	76.13		$	82.65		$	94.29
Brent oil ($/Bbl)	Brent oil ($/Bbl)	$	97.59		$	111.69		$	102.21		$	67.78		Brent oil ($/Bbl)	$	82.20		$	88.68		$	97.36
NYMEX gas ($/Mcf)	NYMEX gas ($/Mcf)	$	7.86		$	6.62		$	6.21		$	3.06		NYMEX gas ($/Mcf)	$	3.88		$	6.76		$	4.16

Average Realized Prices as Percentage of Average Index Prices	Average Realized Prices as Percentage of Average Index Prices													Average Realized Prices as Percentage of Average Index Prices
Worldwide oil as a percentage of average WTI	Worldwide oil as a percentage of average WTI	104		%	99		%	100		%	97		%	Worldwide oil as a percentage of average WTI	97		%	101		%	97		%
Worldwide oil as a percentage of average Brent	Worldwide oil as a percentage of average Brent	97		%	96		%	96		%	93		%	Worldwide oil as a percentage of average Brent	90		%	94		%	94		%
Worldwide NGL as a percentage of average WTI	Worldwide NGL as a percentage of average WTI	38		%	39		%	40		%	43		%	Worldwide NGL as a percentage of average WTI	32		%	32		%	42		%
Domestic natural gas as a percentage of average NYMEX	Domestic natural gas as a percentage of average NYMEX	90		%	94		%	94		%	93		%	Domestic natural gas as a percentage of average NYMEX	78		%	66		%	100		%

~~Q3 2022~~Q1 2023 compared to Q2Q4 2022

Oil and gas segment income was ~~$3.3~~$1.6 billion for the three months ended ~~September 30, 2022,~~March 31, 2023, compared with segment income of ~~$4.1~~$2.5 billion for the three months ended ~~June 30,~~December 31, 2022. Excluding the impact of ~~gains on sale,~~items affecting comparability, oil and gas segment results for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to the three months ended ~~June 30,~~December 31, 2022, reflected lower crude oil and domestic natural gas commodity prices, as well as lower international sales volumes.

The decrease in average daily sales volumes of 16 Mboe/d for the three months ended March 31, 2023, compared to the three months ended December 31, 2022, primarily reflected planned activities at Al Hosn Gas in preparation to complete the expansion project and the impact of the new Algeria PSC contracts, partially offset by increased activity in Permian Resources and better well performance and higher operating rates in the Gulf of Mexico.

Q1 2023 compared to Q1 2022

Oil and gas segment income was $1.6 billion for the three months ended March 31, 2023, compared with segment income of $2.9 billion for the three months ended March 31, 2022. Excluding the impact of items affecting comparability, oil and gas segment results for the three months ended March 31, 2023, compared to the three months ended March 31, 2022, reflected lower crude oil, domestic natural gas and domestic NGL commodity prices, partially offset by higher worldwide sales ~~volumes and natural gas prices.~~volumes.

The increase in average daily sales volumes ~~from continuing operations~~ of 29140 Mboe/d for the three months ended ~~September 30, 2022,~~March 31, 2023, compared to the three months ended ~~June 30,~~March 31, 2022, primarily reflected increased activity in the Permian ~~Basin.~~

Basin and Gulf of Mexico and the prior year planned shutdown at Al Hosn Gas to allow for tie-in work for the expansion project.

3130

~~YTD 2022 compared to YTD 2021~~

Oil and gas segment income was $10.3 billion for the nine months ended September 30, 2022, compared with segment income of $2.0 billion for the nine months ended September 30, 2021. Excluding the impact of asset impairments and other charges, gains on sale and oil, gas and CO2 derivative gains (losses), oil and gas segment results for the nine months ended September 30, 2022, compared to the nine months ended September 30, 2021, reflected higher oil, NGL and natural gas prices and lower DD&A rates, partially offset by higher lease operating costs and lower crude oil sales volumes.

The decrease in average daily sales volumes from continuing operations of 22 Mboe/d for the nine months ended September 30, 2022, compared to the same period in 2021, primarily reflected reduced capital investment in the DJ Basin, the impact of rising commodity prices that reduce Occidental's share of production under production sharing contracts and the impact of the planned shutdown of Al Hosn Gas in the first quarter of 2022 to allow for tie in work for the expansion project. These decreases were partially offset by increased development activity resulting in higher oil and NGL production in the Permian Basin.

The following table presents an analysis of the impacts of changes in average realized prices and sales volumes with regard to Occidental's domestic and international oil and gas revenue:


					Increase (Decrease) Related to										Increase (Decrease) Related to
millions	millions	Three Months Ended June 30, 2022		(b)	Price Realizations		Net Sales Volumes		Three Months Ended September 30, 2022		(b)	millions	Three months ended December 31, 2022		Price Realizations		Net Sales Volumes		Three months ended March 31, 2023 (b)
United States Revenue	United States Revenue											United States Revenue
Oil	Oil	$	4,894		$	(712)	$	187	$	4,369		Oil	$	4,110	$	(436)	$	(24)	$	3,650
NGL	NGL	783			(163)		38		658			NGL	492		(30)		(2)		460
Natural gas	Natural gas	675			91		20		786			Natural gas	506		(169)		18		355
Total	Total	$	6,352		$	(784)	$	245	$	5,813		Total	$	5,108	$	(635)	$	(8)	$	4,465
International Revenue	International Revenue											International Revenue
Oil (a)	Oil (a)	$	1,146		$	(29)	$	(56)	$	1,061		Oil (a)	$	977	$	(109)	$	(150)	$	718
NGL	NGL	113			(8)		22		127			NGL	119		5		(39)		85
Natural gas	Natural gas	79			2		7		88			Natural gas	86		—		(14)		72
Total	Total	$	1,338		$	(35)	$	(27)	$	1,276		Total	$	1,182	$	(104)	$	(203)	$	875


					Increase (Decrease) Related to										Increase (Decrease) Related to
millions	millions	Nine Months Ended September 30, 2021		(b)	Price Realizations		Net Sales Volumes		Nine Months Ended September 30, 2022		(b)	millions	Three months ended March 31, 2022 (b)		Price Realizations		Net Sales Volumes		Three months ended March 31, 2023 (b)
United States Revenue	United States Revenue											United States Revenue
Oil	Oil	$	8,548		$	4,763	$	—	$	13,311		Oil	$	4,048	$	(980)	$	582	$	3,650
NGL	NGL	1,498			574		67		2,139			NGL	698		(341)		103		460
Natural gas	Natural gas	963			988		(35)		1,916			Natural gas	455		(134)		34		355
Total	Total	$	11,009		$	6,325	$	32	$	17,366		Total	$	5,201	$	(1,455)	$	719	$	4,465
International Revenue	International Revenue											International Revenue
Oil (a)	Oil (a)	$	1,998		$	762	$	198	$	2,958		Oil (a)	$	751	$	(52)	$	19	$	718
NGL	NGL	220			86		(4)		302			NGL	62		2		21		85
Natural gas	Natural gas	216			19		(10)		225			Natural gas	58		3		11		72
Total	Total	$	2,434		$	867	$	184	$	3,485		Total	$	871	$	(47)	$	51	$	875

(a) Includes the impact of international production sharing contracts.

(b) Excludes "other" oil and gas revenue. See Note 2 - ~~Rev~~e ~~nue~~Revenue in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information regarding other revenue.

~~Other Significant Activity~~

In July 2022, Occidental entered into a new production sharing arrangement with Sonatrach and the other Algeria working interest partners which, if approved by the government, will be for a new 25-year term for all of the fields under the current agreement.

CHEMICAL SEGMENT

Chemical segment results generally correlate with the health of the global economy, specifically in the housing, construction, automotive and durable goods markets. Margins depend on market supply and demand balances and feedstock and energy prices which could be negatively affected by supply chain interruptions, labor constraints and rising inflation rates. Despite strong year-to-date results, adverse economic conditions in the markets listed above and the resulting changes in the prices of the chemical segment's products and feedstocks may negatively impact results.

~~Q3 2022~~Q1 2023 compared to Q2Q4 2022

Chemical segment earnings for the three months ended ~~September 30, 2022~~March 31, 2023 were ~~$580~~$472 million, compared to ~~$800~~$457 million for the three months ended ~~June 30,~~December 31, 2022. The ~~decrease in results~~increase was driven primarily ~~from~~by lower ethylene and energy costs, partially offset by lower realized caustic soda and PVC ~~prices and volumes across most product lines, as well as higher energy prices.~~pricing.

~~YTD 2022~~Q1 2023 compared to ~~YTD 2021~~Q1 2022

Chemical segment earnings for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 were ~~$2.1 billion,~~$472 million, compared to ~~$970~~$671 million for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022. The ~~improvement in results~~decrease was driven primarily by lower realized PVC pricing as well as lower sales volumes due to ~~higher realized pricing~~decreased demand across most product ~~lines, partially offset by higher raw material costs, primarily energy.~~lines.

MIDSTREAM AND MARKETING SEGMENT

The midstream and marketing segment results can experience volatility depending on commodity price changes, demand impacting export sales and the Midland-to-Gulf-Coast oil spreads. Gas gathering, processing and transportation results are affected by fluctuations in commodity prices and the volumes that are processed and transported through the segment’s plants, as well as the margins obtained on related services from investments in which Occidental has an equity interest.

~~Q3 2022~~Q1 2023 compared to Q2Q4 2022

Midstream and marketing segment earnings for the three months ended ~~September 30, 2022~~March 31, 2023 were ~~$104~~$2 million, compared with ~~$264~~losses of $45 million for the three months ended ~~June 30,~~December 31, 2022. Excluding the impact of ~~derivative gains~~items affecting comparability, the increase in midstream and marketing pre-tax first quarter results reflected the timing impact of crude oil sales and favorable gas margins due to transportation capacity optimization in the marketing business, partially offset by lower equity method investment income from WES.

Q1 2023 compared to Q1 2022

Midstream and marketing segment earnings for the three months ended March 31, 2023 were $2 million, compared with losses ~~and gains on sales~~ of ~~assets,~~$50 million for the three months ended March 31, 2022. Excluding the impact of items affecting comparability, the decrease in midstream and marketing segment results was primarily driven by increased activities in the low carbon ventures businesses, lower NGL prices impacting domestic gas plants and lower sulfur prices at Al Hosn Gas, partially offset by higher volumes from Al Hosn Gas and favorable gas margins from the ~~timing impact~~optimization of ~~crude oil sales~~gas transportation capacities in the marketing business.

~~YTD 2022 compared to YTD 2021~~

Midstream and marketing segment earnings for the nine months ended September 30, 2022 were $318 million, compared with $272 million for the nine months ended September 30, 2021. Excluding the impact of derivative losses and gains on sales of assets, the increase in midstream and marketing segment results was due to higher equity income from WES and higher sulfur prices at Al Hosn Gas, which were partially offset by lower marketing results due to the timing impact of crude oil sales.


INCOME TAXES

The following table sets forth the calculation of the worldwide effective tax rate for ~~income from continuing operations:~~income:

Three months ended Nine months ended September 30,
millions, except percentages September 30, 2022 June 30, 2022 2022 2021
Income from continuing operations before income taxes $ 3,648 $ 4,986 $ 11,717 $ 1,675
Income tax benefit (expense)
Domestic - federal and state (599) (916) 522 (41)
International (303) (315) (862) (405)
Total income tax expense (902) (1,231) (340) (446)
Income from continuing operations $ 2,746 $ 3,755 $ 11,377 $ 1,229
Worldwide effective tax rate 25 % 25 % 3 % 27 %


	Three months ended
millions, except percentages	March 31, 2023			December 31, 2022			March 31, 2022
Income before income taxes	$	1,734		$	2,400		$	3,083
Income tax benefit (expense)
Domestic - federal and state	(300)			(274)			2,037
International	(171)			(199)			(244)
Total income tax benefit (expense)	(471)			(473)			1,793
Net income	$	1,263		$	1,927		$	4,876
Worldwide effective tax rate	27		%	20		%	(58)		%

Occidental estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which Occidental operates, adjusted for certain discrete items. Each quarter, Occidental updates these rates and records a cumulative adjustment to its income taxes by applying the rates to the pre-tax income excluding certain discrete items. Occidental’s quarterly estimate of its effective tax rates can vary significantly based on various forecasted items, including future commodity prices, capital expenditures, expenses for which tax benefits are not recognized and the geographic mix of pre-tax income and losses. The ~~25%~~27% worldwide effective tax rate for ~~both~~ the three months ended ~~September 30, 2022 and June 30, 2022 and 27% for the nine months ended September 30, 2021, were~~March 31, 2023, was primarily driven by Occidental's jurisdictional mix of income. U.S. income is taxed at a U.S. federal statutory rate of 21%, while international income is subject to tax at statutory rates as high as 55%. ~~This effective rate differs from the 3%~~The (58)% effective tax rate for ~~income from continuing operations~~the three months ended March 31, 2022 and the 20% for the ~~nine~~three months ended ~~September 30,~~December 31, 2022, ~~which was impacted~~were primarily driven by ~~a non-cash~~the jurisdictional mix of income as well as tax ~~benefit~~benefits associated with ~~Occidental's~~Occidental’s legal entity reorganization in 2022, which is currently under IRS review as ~~further described below.~~part of Occidental's 2022 federal tax audit.

~~LEGAL ENTITY REORGANIZATION~~

~~INFLATION REDUCTION ACT~~

In August 2022, Congress passed the Inflation Reduction Act that contains, among other provisions, a corporate book minimum tax on financial statement income, an excise tax on stock buybacks and certain tax incentives related to climate change and clean energy. Occidental is currently evaluating the provisions of this act. The ultimate impact of the act is yet to be determined and will depend on additional regulatory guidance and interpretations.


LIQUIDITY AND CAPITAL RESOURCES

As of ~~September 30, 2022,~~March 31, 2023, Occidental had approximately $1.2 billion of cash and cash equivalents on hand. Through the date of this filing, Occidental has drawn no amounts under its RCF, which has $4.0 billion of borrowing capacity and matures in June 2025. Additionally, Occidental has up to ~~$400~~$600 million of available borrowing capacity on its receivables securitization facility which matures in December 2024. ~~There~~Through the date of this filing, there were no amounts outstanding on Occidental's receivable securitization facility as of ~~September 30, 2022.~~

As of September 30, 2022, Occidental has $562 million remaining of the $3.0 billion share repurchase program that was announced in February 2022. Occidental expects to use cash on hand and cash flow from operations to complete the program in the fourth quarter.March 31, 2023.

Operating cash flow ~~from continuing operations~~ was ~~$12.8~~$2.9 billion for the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$7.0~~$3.2 billion for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022. The ~~increase~~decrease in operating cash flow from continuing operations was primarily due to ~~higher~~lower commodity prices as compared to the same period in ~~2021.~~2022.

Occidental’s net cash used by investing activities ~~from continuing operations~~ was ~~$3.0~~$1.6 billion for the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$1.2 billion~~$662 million for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022. Capital expenditures, of which the majority were for the oil and gas segment, were approximately ~~$3.0~~$1.5 billion for the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$1.9 billion~~$858 million for the ~~nine~~three months ended ~~September 30, 2021. For the nine months ended September 30, 2021, proceeds~~March 31, 2022. Occidental's remaining capital budget is expected to be funded through cash flows generated from sales of equity investments and other assets, net primarily included the divestitures of non-strategic assets in the Permian Basin and non-operated assets in the DJ Basin as well as the sale of WES units.operations.

Occidental’s net cash used by financing activities ~~from continuing operations~~ was ~~$11.4~~$1.1 billion for the ~~nine~~three months ended ~~September 30, 2022,~~March 31, 2023, compared to ~~$6.0~~$3.4 billion for the ~~nine~~three months ended ~~September 30, 2021.~~March 31, 2022. Cash used by financing activities for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 reflected ~~the payments~~treasury share repurchases of ~~$8.3 billion relating to long-term debt,~~$732 million and dividend payments of ~~$863~~$320 million on preferred and common ~~stock and treasury share repurchases of $2.5 billion. See~~ ~~Note 5 - Long-Term Debt~~ ~~in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information regarding debt payments.~~stock. Cash used by financing activities for the ~~nine~~three months ended ~~September 30, 2021~~March 31, 2022 reflected ~~payments on~~repayments of debt of ~~$4.6~~$3.3 billion ~~net cash payments on interest rate swaps of $824 million~~ and dividend payments of $216 million on preferred and common stock. Occidental intends to fund the preferred stock redemptions and both the common and preferred dividends accrued as of ~~$630 million.~~March 31, 2023 through operating

cash flows. As of March 31, 2023, Occidental had $2.2 billion remaining of the $3.0 billion share repurchase program that was announced in February 2023. The program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time.

Occidental’s Zero Coupons can be put to Occidental in October of each year, in whole or in part, for the then accreted value of the outstanding Zero Coupons. The Zero Coupons can next be put to Occidental in October 2023, which, if put in whole, would require a payment of approximately $344 million at such date. ~~None of the outstanding Zero Coupons were put to Occidental in October 2022.~~ Occidental currently has the ability to meet this obligation and may use available capacity under the RCF to satisfy the put should it be exercised.

The remaining interest rate swaps with a fair value of $221 million as of September 30, 2022, have mandatory termination dates in September 2023. The interest rate swaps' fair value, and cash required to settle them on their termination dates, will continue to fluctuate with changes in interest rates through the mandatory termination dates. Depending on market conditions, liability management actions or other factors, Occidental may enter into offsetting interest rate swap positions or settle or amend certain or all of the currently outstanding interest rate swaps.

As of ~~September 30, 2022,~~March 31, 2023, and ~~as of~~through the date of this filing, Occidental was in compliance with all covenants in its financing agreements. Occidental has no remaining debt maturities in 2023, $1.1 billion in 2024, $1.2 billion in 2025, $1.4 billion in 2026 and $14.2 billion thereafter. Occidental currently expects its cash on hand, cash flow from operations, and funds available from the RCF and/or receivables securitization facility to be sufficient to meet its near-term debt maturities, operating expenditures and other obligations for the next 12 months from the date of this filing.

~~As of the date of this filing,~~ Occidental or its subsidiaries have provided ~~required~~ financial assurances through a combination of cash, letters of credit and surety bonds. As of March 31, 2023, Occidental ~~has~~had not issued any letters of credit under the RCF or other committed facilities. For additional information, see Risk Factors in Part I, Item 1A of Occidental’s ~~2021~~2022 Form 10-K.

For information regarding upcoming debt maturities and other near-term obligations see the Current Business Outlook section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations.


ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Occidental’s operations are subject to stringent federal, regional, state, provincial, tribal, local and international laws and regulations related to improving or maintaining environmental quality. Occidental’s environmental compliance costs have generally increased over time and are expected to rise in the future. Occidental factors environmental expenditures for its operations as an integral part of its business planning process.

The laws that require or address environmental remediation, including CERCLA and similar federal, regional, state, provincial, tribal, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. Occidental or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at ~~operating, closed~~Third-Party, Currently Operated, and ~~third-party sites.~~Closed or Non-Operated Sites. Remedial activities may include one or more of the following: investigation

involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, natural resource damages, punitive damages, civil penalties, injunctive relief and government oversight costs.

See Note 87 - Environmental Liabilities and Expenditures in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q and the Environmental Liabilities and Expenditures section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the ~~2021~~2022 Form 10-K for additional information regarding Occidental’s environmental liabilities and expenditures.


LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Occidental has disclosed its reserve balances for environmental remediation matters and its estimated range of reasonably possible additional losses for such matters. See Note 7 - Environmental Liabilities and Expenditures and Note 98 - Lawsuits, Claims, Commitments and Contingencies in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for further information.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

For the three months ended ~~September 30, 2022,~~March 31, 2023, there were no material changes in the information required to be provided under Item 305 of Regulation S-K included under Item 7A, Quantitative and Qualitative Disclosures About Market Risk in the ~~2021~~2022 Form 10-K.

Item 4. Controls and Procedures

Occidental's President and Chief Executive Officer and its Senior Vice President and Chief Financial Officer supervised and participated in Occidental's evaluation of the effectiveness of its disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, Occidental's President and Chief Executive Officer and Senior Vice President and Chief Financial Officer concluded that Occidental's disclosure controls and procedures were effective as of ~~September 30, 2022.~~March 31, 2023.

There has been no change in Occidental’s internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the three months ended ~~September 30, 2022~~March 31, 2023 that has materially affected, or is reasonably likely to materially affect, Occidental’s internal control over financial reporting.

Part II Other Information

Item 1. Legal Proceedings

Occidental has elected to use a $1 million threshold for disclosing certain proceedings arising under federal, state or local environmental laws when a governmental authority is a party and potential monetary sanctions are involved. ~~Occidental believes proceedings~~In April 2023, the New Mexico Environment Department (the Department) proposed a penalty amount to resolve alleged violations under ~~this threshold are not material to Occidental's business~~federal and ~~financial condition. In October 2022, two Occidental subsidiaries reached a settlement in principle of a citizen suit alleging violations of certain federal~~state air quality regulations ~~in New Mexico, which~~voluntarily disclosed by a subsidiary with respect to a period between 2016 and 2018. The subsidiary has cooperated with the ~~subsidiaries deny. Under the settlement, which is subject~~Department and intends to ~~approval by the New Mexico Federal District Court, the subsidiaries would pay a civil penalty~~pursue resolution of ~~$500,000 to the U.S. Department of the Treasury and commit to perform a $500,000 supplemental environmental project in lieu of penalties, among other terms.~~this matter. For information regarding other legal proceedings, see Note - 98 - Lawsuits, Claims, Commitments and Contingencies in the notes to the Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q.

Item 1A. Risk Factors

There have been no material changes from the risk factors included under Part I, Item 1A of Occidental’s ~~Annual Report on~~2022 Form 10-K for the year ended December 31, ~~2021.~~2022.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Occidental’s share repurchase activities for the ~~nine~~three months ended ~~September 30, 2022~~March 31, 2023 were as follows:

Period Total
Number
of Shares Purchased (a) Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced
Plans or Programs Maximum Value of Shares that May Yet Be Purchased Under the
Plans or Programs (millions) (b)
First Quarter 2022 730,746 $ 50.05 — $ 3,000
Second Quarter 2022 11,679,732 $ 58.38 11,190,640
July 1 - 31, 2022 6,427,771 $ 61.08 6,427,771
Aug 1 - 31, 2022 7,974,189 $ 64.58 7,811,712
Sept 1 - 30, 2022 14,169,616 $ 63.02 14,169,616
Third Quarter 2022 28,571,576 $ 63.02 28,409,099
Total 2022 (c)
40,982,054 $ 61.47 39,599,739 $ 562


Period	Total Number of Shares Purchased (a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Value of Shares that May Yet Be Purchased Under the Plans or Programs (millions) (b)
January 1 - 31, 2023	—	$	—	—	$	—
February 1 - 28, 2023	—	$	—	—	$	3,000
March 1 - 31, 2023	12,511,237	$	60.09	12,511,237	$	2,248
Total 2023	12,511,237	$	60.09	12,511,237

(a) Includes purchases from the trustee of Occidental's defined contribution savings plan that are not part of publicly announced plans or programs.

(b) Represents the value of shares remaining in Occidental's share repurchase plan. In February ~~2022,~~2023, Occidental announced an authorization to repurchase up to $3.0 billion of Occidental's shares of common stock. The plan does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time.

~~(c)~~

In addition to the 39.6 million shares that Occidental repurchased under its share repurchase plan during the nine months ended September 30, 2022, Occidental subsequently repurchased an additional 2.2 million shares in the period from October 1, 2022, through November 7, 2022. As of November 7, 2022, the maximum value of shares that may yet be purchased under the plan is approximately $414 million.

Item 6. Exhibits



10.1#*			~~Letter Agreement by and between Occidental Petroleum Corporation and Sylvia J. Kerrigan dated September 14, 2022.~~

~~10.2~~#*			Occidental Petroleum Corporation ~~2015 Long-Term Incentive Plan~~Retirement Policy (filed as Exhibit 10.1 to the Current Report on Form 8-K of ~~Notice of Grant of Restricted Stock Unit Incentive Award (for awards to Chief Legal Officer).~~

~~10.3~~#*			~~Transition Services and Separation Agreement by and between~~ Occidental ~~Petroleum Corporation and Marcia E. Backus dated September 29, 2022.~~filed on February 22, 2023, File No. 1-9210).

31.1*			Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2*			Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1**			Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS*			Inline XBRL Instance Document.

101.SCH*			Inline XBRL Taxonomy Extension Schema Document.

101.CAL*			Inline XBRL Taxonomy Extension Calculation Linkbase Document.

101.LAB*			Inline XBRL Taxonomy Extension Label Linkbase Document.

101.PRE*			Inline XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF*			Inline XBRL Taxonomy Extension Definition Linkbase Document.

104*			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

# Indicates a management contract or compensatory plan or arrangement.

* Filed herewith.

** Furnished herewith.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


			OCCIDENTAL PETROLEUM CORPORATION


~~November 8, 2022~~May 9, 2023			/s/ Christopher O. Champion
			Christopher O. Champion
			Vice President, Chief Accounting Officer and Controller

3835


Period	Exercise of Warrants and Options	(a)	Other	(b)	Treasury Stock Purchases	(c)	Common Stock Outstanding	(d)
December 31, 2021							934,074,700
First Quarter 2022	1,082,282		2,764,746		(730,746)		937,190,982
Second Quarter 2022	3,409,920		42,342		(11,679,732)		928,963,512
Third Quarter 2022	7,667,545		18,280		(28,571,576)		908,077,761
Total 2022	12,159,747		2,825,368		(40,982,054)		908,077,761


Period	Total Number of Shares Purchased	(a)	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	Maximum Value of Shares that May Yet Be Purchased Under the Plans or Programs (millions)		(b)
First Quarter 2022	730,746		$	50.05	—	$	3,000
Second Quarter 2022	11,679,732		$	58.38	11,190,640
July 1 - 31, 2022	6,427,771		$	61.08	6,427,771
Aug 1 - 31, 2022	7,974,189		$	64.58	7,811,712
Sept 1 - 30, 2022	14,169,616		$	63.02	14,169,616
Third Quarter 2022	28,571,576		$	63.02	28,409,099
Total 2022 (c)	40,982,054		$	61.47	39,599,739	$	562