Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended |
Mar. 31, 2015 | |
Document and Entity Information | |
Entity Registrant Name | California Resources Corp |
Entity Central Index Key | 1609253 |
Document Type | 10-Q |
Document Period End Date | 31-Mar-15 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -19 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Common Stock, Shares Outstanding | 386,004,534 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q1 |
Consolidated_Condensed_Balance
Consolidated Condensed Balance Sheets (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS | ||
Cash and cash equivalents | $28 | $14 |
Trade receivables, net | 241 | 308 |
Inventories | 71 | 71 |
Other current assets | 314 | 308 |
Total current assets | 654 | 701 |
PROPERTY, PLANT AND EQUIPMENT | 20,665 | 20,536 |
Accumulated depreciation, depletion and amortization | -9,099 | -8,851 |
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET | 11,566 | 11,685 |
OTHER ASSETS | 44 | 43 |
TOTAL ASSETS | 12,264 | 12,429 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 25 | |
Accounts payable | 373 | 588 |
Accrued liabilities | 337 | 334 |
Total current liabilities | 735 | 922 |
LONG-TERM DEBT, NET | 6,479 | 6,292 |
DEFERRED INCOME TAXES | 1,986 | 2,055 |
OTHER LONG-TERM LIABILITIES | 548 | 549 |
EQUITY | ||
Preferred stock (200 million shares authorized at $0.01 par value) no shares outstanding at March 31, 2015 and December 31, 2014 | ||
Common stock (2.0 billion shares authorized at $0.01 par value) outstanding shares (March 31, 2015 - 386,004,534 and December 31, 2014 - 385,639,582) | 4 | 4 |
Additional paid-in capital | 4,757 | 4,748 |
Accumulated deficit | -2,221 | -2,117 |
Accumulated other comprehensive income / (loss) | -24 | -24 |
Total equity | 2,516 | 2,611 |
TOTAL LIABILITIES AND EQUITY | $12,264 | $12,429 |
Consolidated_Condensed_Balance1
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
Consolidated Condensed Balance Sheets | ||
Preferred stock, outstanding shares | 0 | 0 |
Preferred stock, authorized shares | 200,000,000 | 200,000,000 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized shares | 2,000,000,000 | 2,000,000,000 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common Stock, Shares, Outstanding | 386,004,534 | 385,639,582 |
Consolidated_Condensed_Stateme
Consolidated Condensed Statements of Operations (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
REVENUES | ||
Oil and natural gas net sales to third parties | $549 | $20 |
Oil and natural gas net sales to related parties | 1,060 | |
Other revenue | 28 | 41 |
TOTAL REVENUES | 577 | 1,121 |
COSTS AND OTHER DEDUCTIONS | ||
Production costs | 242 | 256 |
General and administrative expenses | 76 | 77 |
Depreciation, depletion and amortization | 253 | 289 |
Taxes other than on income | 55 | 52 |
Exploration expense | 17 | 31 |
Interest and debt expense, net | 79 | |
Other expenses | 24 | 42 |
TOTAL COSTS AND OTHER DEDUCTIONS | 746 | 747 |
INCOME / (LOSS) BEFORE INCOME TAXES | -169 | 374 |
Income tax (expense) / benefit | 69 | -151 |
NET INCOME / (LOSS) | ($100) | $223 |
Net income / (loss) per share of common stock | ||
Basic (in dollars per share) | ($0.26) | $0.57 |
Diluted (in dollars per share) | ($0.26) | $0.57 |
Dividends per common share | $0.01 |
Consolidated_Condensed_Stateme1
Consolidated Condensed Statements of Comprehensive Income (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | |
Consolidated Condensed Statements of Comprehensive Income | |||
Net income / (loss) | ($100) | $223 | |
Other comprehensive income / (loss) items: | |||
Unrealized losses on derivatives | -2 | [1] | |
Pension and postretirement gains | 1 | [2] | |
Reclassification to income of realized losses on derivatives | 3 | [3] | |
Other comprehensive income, net of tax | 2 | ||
Comprehensive income/(loss) | ($100) | $225 | |
[1] | Net of tax of zero and $1 million for the three months ended March 31, 2015 and 2014, respectively. | ||
[2] | There were no taxes in 2015 and 2014. See Note 10, Retirement and Postretirement Benefit Plans, for additional information. | ||
[3] | Net of tax of zero and $(2) million for the three months ended March 31, 2015 and 2014, respectively. |
Consolidated_Condensed_Stateme2
Consolidated Condensed Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Consolidated Condensed Statements of Comprehensive Income | ||
Unrealized losses on derivatives, tax | $0 | $1 |
Pension and postretirement gains, tax | 0 | 0 |
Reclassification to income of realized losses on derivatives, tax | $0 | ($2) |
Consolidated_Condensed_Stateme3
Consolidated Condensed Statements of Cash Flows (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income / (loss) | ($100) | $223 |
Adjustments to reconcile net income / (loss) to net cash provided by operating activities: | ||
Depreciation, depletion and amortization | 253 | 289 |
Deferred income tax expenses/(benefit) | -69 | 119 |
Other noncash charges to income | 26 | 14 |
Dry hole expenses | 6 | 24 |
Changes in operating assets and liabilities, net | -1 | 71 |
Net cash provided by operating activities | 115 | 740 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital investments | -133 | -475 |
Changes in capital investment accruals | -173 | -24 |
Acquisitions and other | -7 | -2 |
Net cash used by investing activities | -313 | -501 |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from revolving credit facility | 757 | |
Repayments of revolving credit facility | -547 | |
Proceeds from issuance of common stock | 2 | |
Distributions to Occidental, net | -239 | |
Net cash provided / (used) by financing activities | 212 | -239 |
Increase in cash and cash equivalents | 14 | |
Cash and cash equivalents - beginning of period | 14 | |
Cash and cash equivalents - end of period | $28 |
THE_SPINOFF_AND_SUMMARY_OF_SIG
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended | |||
Mar. 31, 2015 | ||||
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
NOTE 1THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
The Separation and Spin-off | ||||
We are an independent oil and natural gas exploration and production company operating properties exclusively within the State of California. We were incorporated in Delaware as a wholly-owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly-owned subsidiary of Occidental until November 30, 2014. Prior to November 30, 2014, all material existing assets, operations and liabilities of the California business were consolidated under us. On November 30, 2014, Occidental distributed shares of our common stock on a pro rata basis to Occidental stockholders and we became an independent, publicly traded company (the Spin-off). Occidental retained approximately 18.5% of our outstanding shares of common stock, which it has stated it intends to divest within 18 months of the Spin-off. | ||||
Except when the context otherwise requires or where otherwise indicated, (1) all references to CRC, the Company, we, us and our refer to California Resources Corporation and its subsidiaries or the California business, (2) all references to the California business refer to Occidental’s California oil and gas exploration and production operations and related assets, liabilities and obligations, which we have assumed in connection with the Spin-off, and (3) all references to Occidental refer to Occidental Petroleum Corporation, our former parent, and its subsidiaries. | ||||
Basis of Presentation | ||||
Until the Spin-off, the accompanying financial statements were derived from the consolidated financial statements and accounting records of Occidental and were presented on a combined basis for the pre-Spin-off periods. These financial statements reflect the historical results of operations, financial position and cash flows of the California business. We account for our share of oil and gas exploration and production ventures, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets and statements of income and cash flows. | ||||
The statements of income for periods prior to the Spin-off included expense allocations for certain corporate functions and centrally-located activities historically performed by Occidental. These functions include executive oversight, accounting, treasury, tax, financial reporting, finance, internal audit, legal, risk management, information technology, government relations, public relations, investor relations, human resources, procurement, engineering, drilling, exploration, marketing, ethics and compliance, and certain other shared services. These allocations were based primarily on specific identification of time or activities associated with us, employee headcount or our relative size compared to Occidental. Our management believes the assumptions underlying the financial statements, including the assumptions regarding allocating expenses from Occidental, are reasonable. However, the financial statements for the pre-Spin-off periods may not include all of the actual expenses that would have been incurred, may include duplicative costs and may not reflect our results of operations, financial position and cash flows had we operated as a stand-alone public company during the periods presented. Actual costs that would have been incurred if we had been a stand-alone company prior to the Spin-off would have depended on multiple factors, including organizational structure and strategic and operating decisions. | ||||
The assets and liabilities in the pre-Spin-off financial statements are presented on a historical cost basis. We have eliminated all of our significant intercompany transactions and accounts. Prior to the Spin-off, we participated in Occidental’s centralized treasury management program and had not incurred any debt. Excess cash generated by our business was distributed to Occidental, and likewise our cash needs were provided by Occidental, in the form of contributions. | ||||
All financial information presented after the Spin-off represents our financial position, results of operations and cash flows, as follows: | ||||
· | Our consolidated statements of operations, comprehensive income and cash flows for the three months ended March 31, 2015 consist of our stand-alone consolidated results following the Spin-off, and the three months ended March 31, 2014 consist of the combined results of the California business. | |||
· | Our consolidated balance sheets at March 31, 2015 and December 31, 2014 consist of our consolidated balances. | |||
In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of March 31, 2015, and the statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2015 and 2014, as applicable. The income / (loss) and cash flows for the periods ended March 31, 2015 and 2014 are not necessarily indicative of the income / (loss) or cash flows you should expect for the full year. | ||||
Certain prior year amounts have been reclassified to conform to the 2015 presentation. | ||||
We have prepared this report pursuant to the rules and regulations of the United States Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. You should read this Form 10-Q in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||
ACCOUNTING_AND_DISCLOSURE_CHAN
ACCOUNTING AND DISCLOSURE CHANGES | 3 Months Ended |
Mar. 31, 2015 | |
ACCOUNTING AND DISCLOSURE CHANGES | |
ACCOUNTING AND DISCLOSURE CHANGES | |
NOTE 2ACCOUNTING AND DISCLOSURE CHANGES | |
In April 2015, the Financial Accounting Standards Board (FASB) issued rules to simplify the presentation of debt issuance costs by requiring that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with the presentation of debt discounts. These rules are effective for annual periods beginning after December 15, 2015 and interim periods within those fiscal years, with early adoption of the rules permitted for financial statements which have not been previously issued. We early adopted the new rule by retrospectively reclassifying unamortized debt issuance costs of $68 million at December 31, 2014. The amount was previously reflected in other assets. | |
OTHER_INFORMATION
OTHER INFORMATION | 3 Months Ended |
Mar. 31, 2015 | |
OTHER INFORMATION | |
OTHER INFORMATION | |
NOTE 3OTHER INFORMATION | |
Other current assets include amounts due from joint interest partners of approximately $130 million and $120 million, greenhouse gas emission credits of $67 million and $65 million, and deferred tax assets of $61 million each, at March 31, 2015 and December 31, 2014, respectively. | |
Accrued liabilities include accrued compensation-related costs of approximately $60 million and $95 million, interest payable of $97 million and $70 million and greenhouse gas liabilities of $75 million and $65 million, at March 31, 2015 and December 31, 2014, respectively. Other long-term liabilities include asset retirement obligations of $394 million and $397 million at March 31, 2015 and December 31, 2014, respectively. | |
Other revenue and other expenses mainly comprise sales and the associated costs, respectively, of the portion of electricity generated by our power plant that is sold to third parties. | |
Supplemental Cash Flow Information | |
Prior to the Spin-off we did not make any United States federal and state income tax payments directly to taxing jurisdictions. During that period, our share of Occidental’s tax payments or refunds were paid or received, as applicable, by our former parent. We did not make any United States federal or state income tax payments during the three-month period ended March 31, 2015. Interest paid totaled approximately $54 million and zero for the three months ended March 31, 2015 and 2014, respectively. | |
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVENTORIES | ||||||||
INVENTORIES | NOTE 4INVENTORIES | |||||||
Inventories as of March 31, 2015 and December 31, 2014, consisted of the following: | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Materials and supplies | $ | 67 | $ | 66 | ||||
Finished goods | 4 | 5 | ||||||
Total | $ | 71 | $ | 71 | ||||
DEBT
DEBT | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
DEBT | ||||||||
DEBT | NOTE 5DEBT | |||||||
Debt consisted of the following: | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in millions) | ||||||||
Revolving Credit Facility | $ | 570 | $ | 360 | ||||
Term Loan Facility | 1,000 | 1,000 | ||||||
5% notes due 2020 | 1,000 | 1,000 | ||||||
5 1/2% notes due 2021 | 1,750 | 1,750 | ||||||
6% notes due 2024 | 2,250 | 2,250 | ||||||
Total debt | 6,570 | 6,360 | ||||||
Less: Current maturities of long-term debt | (25 | ) | — | |||||
Less: Deferred financing costs | (66 | ) | (68 | ) | ||||
Total long-term debt, net | $ | 6,479 | $ | 6,292 | ||||
Credit Facilities | ||||||||
On September 24, 2014, we entered into a credit agreement with a syndicate of lenders, providing for (i) a five-year senior term loan facility (the Term Loan Facility) and (ii) a five-year senior revolving loan facility (the Revolving Credit Facility and, together with the Term Loan Facility, the Credit Facilities). All borrowings under these facilities are subject to certain customary conditions. We amended the Credit Facilities effective as of February 25, 2015, and changed certain of our covenants through December 31, 2016 or such earlier time as we elect and demonstrate compliance with our original covenants for two successive quarters (the Interim Covenant Period). | ||||||||
The aggregate commitments of the lenders are $2.0 billion — effectively reduced to $1.25 billion during the Interim Covenant Period — and $1.0 billion under the Revolving Credit Facility and Term Loan Facility, respectively. The Revolving Credit Facility includes a sub-limit of $400 million for the issuance of letters of credit. We will be required to repay the Term Loan Facility in equal quarterly installments equal to 2.5% (10.00% per annum) of the principal amount of the Term Loan Facility beginning on March 31, 2016. As of March 31, 2015, we had $570 million outstanding under our Revolving Credit Facility with the ability to incur additional borrowings of up to $708 million under this facility after taking into account our cash balance. | ||||||||
Borrowings under the Credit Facilities bear interest, at our election, at either a LIBOR rate or an alternate base rate (ABR) (equal to the greatest of (i) the administrative agent’s prime rate, (ii) the one-month LIBOR rate plus 1.00% and (iii) the federal funds effective rate plus 0.50%), in each case plus an applicable margin. This applicable margin is based on our most recent leverage ratio and will vary from (a) in the case of LIBOR loans, 1.50% to 2.25% and (b) in the case of ABR loans, 0.50% to 1.25%. The unused portion of the Revolving Credit Facility is subject to commitment fees ranging from 0.30% to 0.50% per annum, based on our most recent leverage ratio. We also pay customary fees and expenses under the Revolving Credit Facility. Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period. | ||||||||
All obligations under the Credit Facilities are guaranteed jointly and severally by all of our wholly-owned material subsidiaries, and will be unsecured while we maintain our credit ratings at the minimum levels defined in the Credit Facilities. As of March 31, 2015, our corporate family rating from Moody’s Investors Service was Ba2. During the remaining Interim Covenant Period, we would be required to grant security to our lenders if our corporate family ratings experienced a one-notch decline from Moody’s Investors Service or a two-notch decline from Standard & Poor’s Ratings Services. The assets and liabilities of subsidiaries not guaranteeing the debt are de minimis. | ||||||||
The Credit Facilities also require us to maintain the following financial covenants for the trailing twelve months ended as of the last day of each fiscal quarter: (a) a leverage ratio of no more than 4.50 to 1.00 except during the Interim Covenant Period when the ratio increases to 4.75 to 1.00 as of June 30, 2015, 6.25 to 1.00 as of September 30, 2015 and 8.25 to 1.00 as of December 31, 2015 and then decreases to 8.00 to 1.00 as of March 31, 2016, 7.25 to 1.00 as of June 30, 2016, 6.75 to 1.00 as of September 30, 2016, 6.25 to 1.00 as of December 31, 2016 and 4.50 to 1.00 thereafter and (b) an interest expense ratio of no less than 2.50 to 1.00 except as of December 31, 2015 when the ratio must be no less than 2.25 to 1.00. In addition, during the Interim Covenant Period, we must maintain an asset coverage ratio of no less than 1.05 to 1.00 measured as of the last day of each fiscal quarter. Finally, during the Interim Covenant Period, we must apply cash on hand in excess of $250 million to repay certain amounts outstanding under the Revolving Credit Facility. If we were to breach any of these covenants the banks would be permitted to accelerate the principal amount due under the facilities. If payment were accelerated it would result in a default under the notes. | ||||||||
Senior Notes | ||||||||
On October 1, 2014, we issued $5.00 billion in aggregate principal amount of our senior notes, including $1.00 billion of 5% senior notes due January 15, 2020 (the 2020 notes), $1.75 billion of 5 1/2% senior notes due September 15, 2021 (the 2021 notes) and $2.25 billion of 6% senior notes due November 15, 2024 (the 2024 notes and together with the 2020 notes and the 2021 notes, the notes), in a private placement. The notes were issued at par and are fully and unconditionally guaranteed on a senior unsecured basis by all of our material subsidiaries. We used the net proceeds from the notes to make a $4.95 billion cash distribution to Occidental in October 2014. | ||||||||
We will pay interest on the 2020 notes semi-annually in cash in arrears on January 15 and July 15 of each year, beginning on July 15, 2015. We will pay interest on the 2021 notes semi-annually in cash in arrears on March 15 and September 15 of each year, beginning on March 15, 2015. We will pay interest on the 2024 notes semi-annually in cash in arrears on May 15 and November 15 of each year, beginning on May 15, 2015. | ||||||||
In connection with the private placement of the notes, we granted the initial purchasers certain registration rights under a registration rights agreement. In April 2015, we completed the exchange of tendered unregistered notes for registered notes. | ||||||||
The indenture governing the notes includes covenants that, among other things, limit our and our restricted subsidiaries’ ability to incur debt secured by liens. These covenants also restrict our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. These covenants are subject to a number of important qualifications and limitations that are set forth in the indenture. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a change of control coupled with a credit rating decline, we will be required to offer to purchase the notes at a purchase price equal to 101 percent of their principal amount, plus accrued and unpaid interest or to have exercised our redemption right. | ||||||||
We estimate the fair value of fixed-rate debt based on prices from known market transactions for our instruments. The estimated fair value of our debt at March 31, 2015 and December 31, 2014, the fixed rate portion of which was classified as Level 1, and the variable rate portion of which approximated fair value, was approximately $6.0 billion and $5.6 billion, respectively, compared to a net carrying value of approximately $6.5 billion and $6.3 billion. A one-eighth percent change in the variable interest rates on the borrowings under our Term Loan Facility and Revolving Credit Facility on March 31, 2015, would result in an approximately $2 million change in annual interest expense. | ||||||||
As of March 31, 2015 and December 31, 2014, we had letters of credit in the aggregate amount of approximately $27 million and $25 million that were issued to support ordinary course marketing and other matters. | ||||||||
LAWSUITS_CLAIMS_COMMITMENTS_AN
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2015 | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | |
NOTE 6LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | |
We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies 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. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserve balances at March 31, 2015 and December 31, 2014 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. | |
We, our subsidiaries, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with the Spin-off, purchases and other transactions that they have entered into with us. These indemnities include indemnities made to Occidental against certain tax-related liabilities that may be incurred by Occidental relating to the Spin-off and liabilities related to the operation of our business while it was still owned by Occidental. As of March 31, 2015, we are not aware of circumstances that we believe would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves. | |
DERIVATIVES
DERIVATIVES | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
DERIVATIVES | ||||||||||||
DERIVATIVES | ||||||||||||
NOTE 7DERIVATIVES | ||||||||||||
General | ||||||||||||
From time to time, we use a variety of derivative instruments to establish, as of the date of production, the price we receive, to improve the effective realized prices for oil and gas, and to protect our capital program in case of price deterioration. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. We apply hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, any fair value gains or losses, over the remaining term of the hedge instrument, are recognized in earnings in the current period. We recognized approximately $3 million of net derivative losses in net sales for the three months ended March 31, 2015. | ||||||||||||
In April 2015, we extended our existing hedging program to protect our capital plan by hedging 30,000 barrels per day of our expected fourth quarter 2015 oil production. For this tranche, we purchased Brent-based puts with a $60 per barrel floor and sold calls with a weighted average ceiling of $73. | ||||||||||||
In February 2015, we put into place derivatives to protect the pricing for almost two-thirds of our expected third quarter 2015 oil production. For this program, we chose a combination of Brent-based collars (with a $55 per barrel floor and $72 ceiling) for 30,000 barrels per day for July through September as well as put options at $50 per barrel Brent for 40,000 barrels per day in the same period. In addition, in part to pay for the cost of the options, we sold a $75 per barrel Brent-based call for 30,000 barrels per day of oil production for March through June of 2015. The initial value of these derivatives was not material. | ||||||||||||
In December 2014, we purchased put options, to hedge the risk associated with declining oil prices, for 100,000 barrels of crude oil production per day, effective on a monthly basis from January 1, 2015 through June 30, 2015. The strike price of the put options is $50 per barrel tied to the Brent oil index. Changes in the intrinsic value of the put option are deferred in other comprehensive income/(loss) as a cash flow hedge until the hedged transactions are recognized in the statement of operations. The initial intrinsic value and subsequent changes were not material. | ||||||||||||
The time value of the December 2014 put options as well as the 2015 instruments are marked to market and changes are recognized in the statement of operations. | ||||||||||||
Going forward as an independent company, we will continue to be strategic and opportunistic in implementing any hedging program. Our objective is to protect against the cyclical nature of commodity prices to provide a level of certainty around our cash flows and margins necessary to implement our capital investment program. | ||||||||||||
We entered into financial swap agreements in November 2012 for the sale of a portion of our natural gas production. These swap agreements hedged 50 MMcf of natural gas per day beginning in January 2013 through March 2014 and qualified as cash-flow hedges. The weighted-average strike price of these swaps was $4.30 per Mcf. | ||||||||||||
The after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (AOCI) for derivative instruments classified as cash-flow hedges for the three-month periods ended March 31, 2015 and 2014, and the ending AOCI balances at those dates were not material. | ||||||||||||
There were no fair value hedges as of and during the three-month periods ended March 31, 2015 and 2014. | ||||||||||||
Fair Value of Derivatives | ||||||||||||
Our commodity derivatives are measured at fair value using industry-standard models with various inputs, including quoted forward prices. The value of our 2014 put options was approximately $24 million on a gross and net basis, which approximated the time value of the instruments as of December 31, 2014. | ||||||||||||
The following table presents the gross and net fair values of our outstanding derivatives as of March 31, 2015 (in millions): | ||||||||||||
Asset Derivatives | Liability Derivatives | |||||||||||
March 31, 2015 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Other current assets | $ | 30 | Accrued Liabilities | $ | (4 | ) | |||||
Total gross and net fair value | $ | 30 | $ | (4 | ) | |||||||
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
NOTE 8FAIR VALUE MEASUREMENTS | |||||||||||||||||
We have categorized our assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1 - using quoted prices in active markets for identical assets or liabilities; Level 2 - using observable inputs, such as quoted prices for similar assets and liabilities; and Level 3 - using unobservable inputs. Transfers between levels, if any, are reported at the end of each reporting period. | |||||||||||||||||
Fair Values - Recurring | |||||||||||||||||
The following tables present assets and liabilities accounted for at fair value on a recurring basis as of March 31, 2015 and December 31, 2014 (in millions): | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Collateral | Total | |||||||||||||
Assets: | |||||||||||||||||
Commodity derivative instruments, other current assets | $ | — | $ | 30 | $ | — | $ | — | $ | 30 | |||||||
Liabilities: | |||||||||||||||||
Commodity derivative instruments, accrued liabilities | $ | — | $ | 4 | $ | — | $ | — | $ | 4 | |||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Collateral | Total | |||||||||||||
Assets: | |||||||||||||||||
Commodity derivative instruments, other current assets | $ | — | $ | 24 | $ | — | $ | — | $ | 24 | |||||||
Fair Values - Nonrecurring | |||||||||||||||||
During the three months ended March 31, 2015 and 2014, we did not have any assets or liabilities measured at fair value on a non-recurring basis. | |||||||||||||||||
Financial Instruments Fair Value | |||||||||||||||||
The carrying amounts of cash and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value. | |||||||||||||||||
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
EARNINGS PER SHARE | ||||||||
Earnings per share | ||||||||
NOTE 9EARNINGS PER SHARE | ||||||||
We compute earnings per share (EPS) using the two-class method required for participating securities. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Restricted stock awards are considered participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. | ||||||||
The denominator of basic EPS is the sum of the daily weighted-average number of common shares outstanding during the periods presented and vested stock awards that have not yet been issued as common stock. The denominator of diluted EPS is based on the basic shares outstanding, adjusted for the effect of outstanding option awards, to the extent they are dilutive. | ||||||||
On the Spin-off date, we issued 381.4 million shares of our common stock. For comparative purposes, and to provide a more meaningful calculation of weighted-average shares outstanding, we have assumed this amount to be outstanding as of the beginning of each period prior to the Spin-off presented in the calculation of weighted-average shares. In addition, we have assumed the vested stock awards granted in December 2014 were also outstanding for each of the periods presented prior to the Spin-off, resulting in a weighted-average basic share count of 381.8 million shares. The effect of stock options granted in December 2014 was anti-dilutive for the periods presented. At the end of the first quarter of 2015 we issued approximately 370,000 shares of common stock in connection with our employee stock purchase plan which began in January 2015. The effect of the employee stock purchase plan was anti-dilutive for the three months ended March 31, 2015. | ||||||||
The following table presents the calculation of basic and diluted EPS for the three-month periods ended March 31: | ||||||||
2015 | 2014 | |||||||
(in millions, except per-share amounts) | ||||||||
Basic EPS calculation | ||||||||
Net income / (loss) | $ | (100 | ) | $ | 223 | |||
Net income / (loss) allocated to participating securities | — | (4 | ) | |||||
Net income / (loss) available to common stockholders | $ | (100 | ) | $ | 219 | |||
Weighted-average common shares outstanding - basic | 382.1 | 381.8 | ||||||
Basic EPS | $ | (0.26 | ) | $ | 0.57 | |||
Diluted EPS calculation | ||||||||
Net income / (loss) | $ | (100 | ) | $ | 223 | |||
Net income / (loss) allocated to participating securities | — | (4 | ) | |||||
Net income / (loss) available to common stockholders | $ | (100 | ) | $ | 219 | |||
Weighted average common shares outstanding - basic | 382.1 | 381.8 | ||||||
Dilutive effect of potentially dilutive securities | — | — | ||||||
Weighted-average common shares outstanding - diluted | 382.1 | 381.8 | ||||||
Diluted EPS | $ | (0.26 | ) | $ | 0.57 | |||
RETIREMENT_AND_POSTRETIREMENT_
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ||||||||||||||
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ||||||||||||||
NOTE 10RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ||||||||||||||
The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans: | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Pension | Postretirement | Pension | Postretirement | |||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||
Interest cost | 1 | 1 | 1 | 1 | ||||||||||
Expected return on plan assets | (1 | ) | — | (1 | ) | — | ||||||||
Total | $ | 1 | $ | 2 | $ | 1 | $ | 2 | ||||||
We did not make any contributions to our defined benefit pension plans in either of the three-month periods ended March 31, 2015 and 2014. | ||||||||||||||
RELATEDPARTY_TRANSACTIONS
RELATED-PARTY TRANSACTIONS | 3 Months Ended |
Mar. 31, 2015 | |
RELATED-PARTY TRANSACTIONS | |
RELATED-PARTY TRANSACTIONS | NOTE 11RELATED-PARTY TRANSACTIONS |
Through July 2014, substantially all of our products were sold to Occidental’s marketing subsidiaries at market prices and were settled at the time of sale to those entities. Beginning August 2014, we started marketing our own products directly to third parties. For the three months ended March 31, 2014 we had related party sales of approximately $1.1 billion. | |
Purchases from related parties reflect products purchased at market prices from Occidental’s subsidiaries and are used in our operations. These purchases were $21 million for the three months ended March 31, 2014 and were included in production costs. There were no significant related-party receivable or payable balances at March 31, 2015 and December 31, 2014. | |
Prior to the Spin-off, the statement of operations included expense allocations for certain corporate functions and centrally-located activities historically performed by Occidental. Charges from Occidental for these services of approximately $35 million for the three months ended March 31, 2014 are reflected in general and administrative expenses. | |
THE_SPINOFF_AND_SUMMARY_OF_SIG1
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended | |||
Mar. 31, 2015 | ||||
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||
Basis of Presentation | ||||
Basis of Presentation | ||||
Until the Spin-off, the accompanying financial statements were derived from the consolidated financial statements and accounting records of Occidental and were presented on a combined basis for the pre-Spin-off periods. These financial statements reflect the historical results of operations, financial position and cash flows of the California business. We account for our share of oil and gas exploration and production ventures, in which we have a direct working interest, by reporting our proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets and statements of income and cash flows. | ||||
The statements of income for periods prior to the Spin-off included expense allocations for certain corporate functions and centrally-located activities historically performed by Occidental. These functions include executive oversight, accounting, treasury, tax, financial reporting, finance, internal audit, legal, risk management, information technology, government relations, public relations, investor relations, human resources, procurement, engineering, drilling, exploration, marketing, ethics and compliance, and certain other shared services. These allocations were based primarily on specific identification of time or activities associated with us, employee headcount or our relative size compared to Occidental. Our management believes the assumptions underlying the financial statements, including the assumptions regarding allocating expenses from Occidental, are reasonable. However, the financial statements for the pre-Spin-off periods may not include all of the actual expenses that would have been incurred, may include duplicative costs and may not reflect our results of operations, financial position and cash flows had we operated as a stand-alone public company during the periods presented. Actual costs that would have been incurred if we had been a stand-alone company prior to the Spin-off would have depended on multiple factors, including organizational structure and strategic and operating decisions. | ||||
The assets and liabilities in the pre-Spin-off financial statements are presented on a historical cost basis. We have eliminated all of our significant intercompany transactions and accounts. Prior to the Spin-off, we participated in Occidental’s centralized treasury management program and had not incurred any debt. Excess cash generated by our business was distributed to Occidental, and likewise our cash needs were provided by Occidental, in the form of contributions. | ||||
All financial information presented after the Spin-off represents our financial position, results of operations and cash flows, as follows: | ||||
· | Our consolidated statements of operations, comprehensive income and cash flows for the three months ended March 31, 2015 consist of our stand-alone consolidated results following the Spin-off, and the three months ended March 31, 2014 consist of the combined results of the California business. | |||
· | Our consolidated balance sheets at March 31, 2015 and December 31, 2014 consist of our consolidated balances. | |||
In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of March 31, 2015, and the statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2015 and 2014, as applicable. The income / (loss) and cash flows for the periods ended March 31, 2015 and 2014 are not necessarily indicative of the income / (loss) or cash flows you should expect for the full year. | ||||
Certain prior year amounts have been reclassified to conform to the 2015 presentation. | ||||
We have prepared this report pursuant to the rules and regulations of the United States Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. You should read this Form 10-Q in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2014. | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
INVENTORIES | ||||||||
Inventories | ||||||||
2015 | 2014 | |||||||
(in millions) | ||||||||
Materials and supplies | $ | 67 | $ | 66 | ||||
Finished goods | 4 | 5 | ||||||
Total | $ | 71 | $ | 71 | ||||
DEBT_Tables
DEBT (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
DEBT | ||||||||
Debt | ||||||||
March 31, 2015 | December 31, 2014 | |||||||
(in millions) | ||||||||
Revolving Credit Facility | $ | 570 | $ | 360 | ||||
Term Loan Facility | 1,000 | 1,000 | ||||||
5% notes due 2020 | 1,000 | 1,000 | ||||||
5 1/2% notes due 2021 | 1,750 | 1,750 | ||||||
6% notes due 2024 | 2,250 | 2,250 | ||||||
Total debt | 6,570 | 6,360 | ||||||
Less: Current maturities of long-term debt | (25 | ) | — | |||||
Less: Deferred financing costs | (66 | ) | (68 | ) | ||||
Total long-term debt, net | $ | 6,479 | $ | 6,292 | ||||
DERIVATIVES_Tables
DERIVATIVES (Tables) | 3 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
DERIVATIVES | ||||||||||||
Gross and net fair values of outstanding derivatives (in millions) | Asset Derivatives | Liability Derivatives | ||||||||||
March 31, 2015 | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||
Commodity contracts | Other current assets | $ | 30 | Accrued Liabilities | $ | (4 | ) | |||||
Total gross and net fair value | $ | 30 | $ | (4 | ) | |||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 31, 2015 | |||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||
Assets and liabilities accounted for at fair value on a recurring basis | |||||||||||||||||
March 31, 2015 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Collateral | Total | |||||||||||||
Assets: | |||||||||||||||||
Commodity derivative instruments, other current assets | $ | — | $ | 30 | $ | — | $ | — | $ | 30 | |||||||
Liabilities: | |||||||||||||||||
Commodity derivative instruments, accrued liabilities | $ | — | $ | 4 | $ | — | $ | — | $ | 4 | |||||||
December 31, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Collateral | Total | |||||||||||||
Assets: | |||||||||||||||||
Commodity derivative instruments, other current assets | $ | — | $ | 24 | $ | — | $ | — | $ | 24 | |||||||
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
EARNINGS PER SHARE | ||||||||
Calculation of basic and diluted EPS | 2015 | 2014 | ||||||
(in millions, except per-share amounts) | ||||||||
Basic EPS calculation | ||||||||
Net income / (loss) | $ | (100 | ) | $ | 223 | |||
Net income / (loss) allocated to participating securities | — | (4 | ) | |||||
Net income / (loss) available to common stockholders | $ | (100 | ) | $ | 219 | |||
Weighted-average common shares outstanding - basic | 382.1 | 381.8 | ||||||
Basic EPS | $ | (0.26 | ) | $ | 0.57 | |||
Diluted EPS calculation | ||||||||
Net income / (loss) | $ | (100 | ) | $ | 223 | |||
Net income / (loss) allocated to participating securities | — | (4 | ) | |||||
Net income / (loss) available to common stockholders | $ | (100 | ) | $ | 219 | |||
Weighted average common shares outstanding - basic | 382.1 | 381.8 | ||||||
Dilutive effect of potentially dilutive securities | — | — | ||||||
Weighted-average common shares outstanding - diluted | 382.1 | 381.8 | ||||||
Diluted EPS | $ | (0.26 | ) | $ | 0.57 | |||
RETIREMENT_AND_POSTRETIREMENT_1
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables) | 3 Months Ended | |||||||||||||
Mar. 31, 2015 | ||||||||||||||
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | ||||||||||||||
Components of the net periodic benefit cost | ||||||||||||||
Three months ended March 31, | ||||||||||||||
2015 | 2014 | |||||||||||||
Pension | Postretirement | Pension | Postretirement | |||||||||||
Benefit | Benefit | Benefit | Benefit | |||||||||||
(in millions) | ||||||||||||||
Service cost | $ | 1 | $ | 1 | $ | 1 | $ | 1 | ||||||
Interest cost | 1 | 1 | 1 | 1 | ||||||||||
Expected return on plan assets | (1 | ) | — | (1 | ) | — | ||||||||
Total | $ | 1 | $ | 2 | $ | 1 | $ | 2 | ||||||
THE_SPINOFF_AND_SUMMARY_OF_SIG2
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (Spinoff - CRC, Occidental Petroleum And Subsidiaries) | 3 Months Ended | |
Mar. 31, 2015 | Nov. 30, 2014 | |
Spinoff - CRC | Occidental Petroleum And Subsidiaries | ||
Separation and Spin Off Transactions | ||
Percentage of outstanding shares of common stock retained by Occidental | 18.50% | |
Number of months from spin off date for divestment of common stock by Occidental | 18 months |
OTHER_INFORMATION_Details
OTHER INFORMATION (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 |
OTHER INFORMATION | |||
Amount due from joint interest partners included in other current assets | $130 | $120 | |
Greenhouse gas emission credits | 67 | 65 | |
Deferred tax assets | 61 | 61 | |
Accrued compensation-related costs | 60 | 95 | |
Interest payable | 97 | 70 | |
Greenhouse gas liabilities | 75 | 65 | |
Asset Retirement Obligations, Noncurrent | 394 | 397 | |
United States federal and state income taxes paid | 0 | ||
Interest Paid | $54 | $0 |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
INVENTORIES | ||
Materials and supplies | $67 | $66 |
Finished goods | 4 | 5 |
Total | $71 | $71 |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | ||||
Oct. 01, 2014 | Sep. 24, 2014 | Dec. 31, 2015 | Feb. 25, 2015 | Mar. 31, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2014 | |
Debt | ||||||||
Debt | $6,570,000,000 | $6,360,000,000 | ||||||
Less: Current maturities of long-term debt | -25,000,000 | |||||||
Less: Deferred financing costs | -66,000,000 | -68,000,000 | ||||||
Total long-term debt, net | 6,479,000,000 | 6,292,000,000 | ||||||
Maximum borrowing capacity | 2,000,000,000 | |||||||
Senior Notes | ||||||||
Debt | ||||||||
Aggregate principal amount | 5,000,000,000 | |||||||
Net Proceeds from private placement | 4,950,000,000 | |||||||
Cash distribution to Occidental in October 2014 | 4,950,000,000 | |||||||
Semi annual interest payment | semi-annually | |||||||
Percentage of principal amount at which senior notes can be redeemed | 101.00% | |||||||
5.00% Senior notes due 2020 | ||||||||
Debt | ||||||||
Debt | 1,000,000,000 | 1,000,000,000 | 1,000,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | 5.00% | 5.00% | |||||
5.50% Senior notes due 2021 | ||||||||
Debt | ||||||||
Debt | 1,750,000,000 | 1,750,000,000 | 1,750,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 5.50% | 5.50% | 5.50% | |||||
6.00% Senior notes due 2024 | ||||||||
Debt | ||||||||
Debt | 2,250,000,000 | 2,250,000,000 | 2,250,000,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | 6.00% | 6.00% | |||||
Credit Facilities | ||||||||
Debt | ||||||||
Credit agreement leverage ratio | 4.5 | |||||||
Credit Facilities | LIBOR | ||||||||
Debt | ||||||||
Variable rate basis | LIBOR | |||||||
Credit Facilities | Alternate Base Rate | ||||||||
Debt | ||||||||
Variable rate basis | alternate base rate | |||||||
Variable rate basis | one-month LIBOR | |||||||
Interest rate added to variable rate basis(as a percent) | 1.00% | |||||||
Credit Facilities | Prime Rate | ||||||||
Debt | ||||||||
Variable rate basis | agent's prime rate | |||||||
Credit Facilities | Federal fund rate | ||||||||
Debt | ||||||||
Variable rate basis | federal funds effective rate | |||||||
Interest rate added to variable rate basis(as a percent) | 0.50% | |||||||
Credit Facilities | Thereafter | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 4.5 | |||||||
Credit Facilities | Minimum | ||||||||
Debt | ||||||||
Credit agreement interest expense ratio | 2.5 | 2.25 | ||||||
Credit Facilities | Minimum | LIBOR | ||||||||
Debt | ||||||||
Interest rate added to variable rate basis(as a percent) | 1.50% | |||||||
Credit Facilities | Minimum | Alternate Base Rate | ||||||||
Debt | ||||||||
Interest rate added to variable rate basis(as a percent) | 0.50% | |||||||
Credit Facilities | Maximum | LIBOR | ||||||||
Debt | ||||||||
Interest rate added to variable rate basis(as a percent) | 2.25% | |||||||
Credit Facilities | Maximum | Alternate Base Rate | ||||||||
Debt | ||||||||
Interest rate added to variable rate basis(as a percent) | 1.25% | |||||||
Credit Facilities amendment - Interim Covenant Period | ||||||||
Debt | ||||||||
Maximum borrowing capacity | 1,250,000,000 | |||||||
Credit Facilities amendment - Interim Covenant Period | June 30, 2015 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 4.75 | |||||||
Credit Facilities amendment - Interim Covenant Period | September 30, 2015 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 6.25 | |||||||
Credit Facilities amendment - Interim Covenant Period | December 31, 2015 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 8.25 | |||||||
Credit Facilities amendment - Interim Covenant Period | March 31, 2016 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 8 | |||||||
Credit Facilities amendment - Interim Covenant Period | June 30, 2016 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 7.25 | |||||||
Credit Facilities amendment - Interim Covenant Period | September 30, 2016 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 6.75 | |||||||
Credit Facilities amendment - Interim Covenant Period | December 31, 2016 | ||||||||
Debt | ||||||||
Credit agreement leverage ratio during interim covenant period | 6.25 | |||||||
Credit Facilities amendment - Interim Covenant Period | Minimum | ||||||||
Debt | ||||||||
Credit agreement asset coverage ratio during interim covenant period | 1.05 | |||||||
Cash On Hand In Excess Of This Amount During The Interim Covenant Period Must Be Used To Pay Off Outstanding Debt Under the Revolving Credit Facility | 250,000,000 | |||||||
Term loan facility | ||||||||
Debt | ||||||||
Debt | 1,000,000,000 | 1,000,000,000 | ||||||
Senior term loan facility and senior revolving credit facility | 5 years | |||||||
Maximum borrowing capacity | 1,000,000,000 | |||||||
Term loan facility | Scenario, Forecast | ||||||||
Debt | ||||||||
Percentage of principal amount repaid quarterly | 2.5% of the principal amount | |||||||
Percentage of principal amount repaid annually | 10% of the principal amount | |||||||
Revolving credit facility | ||||||||
Debt | ||||||||
Debt | 570,000,000 | 360,000,000 | ||||||
Senior term loan facility and senior revolving credit facility | 5 years | |||||||
Maximum borrowing capacity | 1,000,000,000 | |||||||
Revolving credit facility | Minimum | ||||||||
Debt | ||||||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.30% | |||||||
Revolving credit facility | Maximum | ||||||||
Debt | ||||||||
Amount available for additional borrowings | 708,000,000 | |||||||
Commitment fees on unused portion of the Revolving Credit Facility | 0.50% | |||||||
Letter of Credit | ||||||||
Debt | ||||||||
Maximum borrowing capacity | 400,000,000 |
DEBT_Details_2
DEBT (Details 2) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Dec. 31, 2014 | |
Other Fixed-Rate and Variable-Rate Debt Disclosures | ||
Estimated fair value of long-term debt | $6,000,000,000 | $5,600,000,000 |
Debt net carrying value | 6,479,000,000 | 6,292,000,000 |
Aggregate letters of credit issued | 27,000,000 | 25,000,000 |
Pro Forma | ||
Other Variable-Rate Debt Disclosures | ||
Percentage of change in the variable interest rates | 0.13% | |
Effect of 1/8 percent change in interest rates | $2,000,000 |
DERIVATIVES_Details
DERIVATIVES (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||||
In Millions, unless otherwise specified | Mar. 31, 2015 | Apr. 30, 2015 | Dec. 31, 2014 | Feb. 28, 2015 | Mar. 31, 2014 | Nov. 30, 2012 |
bbl | bbl | bbl | item | |||
Derivatives | ||||||
Net derivative losses recognized in net sales (in dollars) | ($3) | |||||
Crude Oil Put Options Fourth Quarter 2015 | ||||||
Derivatives | ||||||
Crude oil production per day (in barrels per day) | 30,000 | |||||
Floor price (in dollars per barrel) | 60 | |||||
Ceiling price (in dollars per barrel) | 73 | |||||
Crude Oil - Put Option January 2015 through June 2015 | ||||||
Derivatives | ||||||
Crude oil production per day associated with the put option (in barrels per day) | 100,000 | |||||
Strike price (in dollars per barrel) | 50 | |||||
Crude Oil Collars July Through September 2015 | ||||||
Derivatives | ||||||
Crude oil production per day (in barrels per day) | 30,000 | |||||
Floor price (in dollars per barrel) | 55 | |||||
Ceiling price (in dollars per barrel) | 72 | |||||
Crude Oil Put Option July Through September 2015 | ||||||
Derivatives | ||||||
Crude oil production per day associated with the put option (in barrels per day) | 40,000 | |||||
Strike price (in dollars per barrel) | 50 | |||||
Crude Oil Call Option March Through June 2015 | ||||||
Derivatives | ||||||
Crude oil production per day associated with the call option (in barrels per day) | 30,000 | |||||
Strike price (in dollars per barrel) | 75 | |||||
Fair Value Hedges | ||||||
Derivatives | ||||||
Number of hedges | 0 | 0 | ||||
Natural Gas Swaps January 2013 Through March 2014 | ||||||
Derivatives | ||||||
Daily Volume (in cubic feet) | 50,000,000 | |||||
Weighted-average strike price (in dollars per cubic foot) | 0.0043 |
DERIVATIVES_Details_2
DERIVATIVES (Details 2) (USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Total gross and net fair value, asset | $30 | $24 |
Total gross and net fair value, liability | -4 | |
Commodity Contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 30 | |
Commodity Contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | ($4) |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (Recurring, USD $) | Mar. 31, 2015 | Dec. 31, 2014 |
In Millions, unless otherwise specified | ||
Level 2 | ||
Assets | ||
Commodity derivative instruments, other current assets | $30 | $24 |
Liabilities: | ||
Commodity derivative instruments, accrued liabilities | 4 | |
Total Fair Value | ||
Assets | ||
Commodity derivative instruments, other current assets | 30 | 24 |
Liabilities: | ||
Commodity derivative instruments, accrued liabilities | $4 |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 1 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Dec. 31, 2014 | Nov. 30, 2014 |
Basic EPS | ||||
Net income / (loss) | ($100) | $223 | ||
Net income / (loss) allocated to participating securities | -4 | |||
Net income / (loss) available to common stockholders | -100 | 219 | ||
Weighed average common shares outstanding - basic | 382.1 | 381.8 | ||
Basic EPS (in dollars per share) | ($0.26) | $0.57 | ||
Diluted EPS | ||||
Net income (loss) | -100 | 223 | ||
Net income / (loss) allocated to participating securities | -4 | |||
Net income / (loss) available to common stockholders | ($100) | $219 | ||
Weighed average common shares outstanding - basic | 382.1 | 381.8 | ||
Dilutive effect of potentially dilutive securities | 0 | 0 | ||
Weighted average common shares outstanding - diluted | 382.1 | 381.8 | ||
Diluted EPS (in dollars per share) | ($0.26) | $0.57 | ||
Employee Stock Purchase Plan | ||||
Basic EPS | ||||
Common stock issued under employee stock purchase plan | 370,000 | |||
Occidental Petroleum And Subsidiaries | Spinoff - CRC | ||||
Diluted EPS | ||||
Common stock distributed upon Spin-off | 381,400,000 | |||
Assumed weighted average basic share count for periods presented prior to spin off | 381,800,000 |
RETIREMENT_AND_POSTRETIREMENT_2
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Details) (USD $) | 3 Months Ended | |
Mar. 31, 2015 | Mar. 31, 2014 | |
Net periodic benefit costs: | ||
Employer contributions | $0 | $0 |
Pension Benefit | ||
Net periodic benefit costs: | ||
Service cost - benefits earned during the period | 1,000,000 | 1,000,000 |
Interest cost on projected benefit obligation | 1,000,000 | 1,000,000 |
Expected return on plan assets | -1,000,000 | -1,000,000 |
Net periodic benefit cost | 1,000,000 | 1,000,000 |
Postretirement Benefit | ||
Net periodic benefit costs: | ||
Service cost - benefits earned during the period | 1,000,000 | 1,000,000 |
Interest cost on projected benefit obligation | 1,000,000 | 1,000,000 |
Net periodic benefit cost | $2,000,000 | $2,000,000 |
RELATEDPARTY_TRANSACTIONS_Deta
RELATED-PARTY TRANSACTIONS (Details) (USD $) | 3 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
Sales | $1,060 |
Occidental Petroleum And Subsidiaries | |
Sales | 1,100 |
Purchases | 21 |
Occidental Petroleum And Subsidiaries | General and Administrative Expense | |
Charges for services provided by Occidental prior to the spin-off | $35 |