California Resources (CRC) 10-Q 7 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document and Entity Information
Entity Registrant Name	California Resources Corp
Entity Central Index Key	1,609,253
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding	386,380,829
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 37	$ 14
Trade receivables, net	268	308
Inventories	74	71
Other current assets	277	308
Total current assets	656	701
PROPERTY, PLANT AND EQUIPMENT	20,745	20,536
Accumulated depreciation, depletion and amortization	(9,335)	(8,851)
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	11,410	11,685
OTHER ASSETS	51	43
TOTAL ASSETS	12,117	12,429
CURRENT LIABILITIES
Current maturities of long-term debt	50
Accounts payable	278	588
Accrued liabilities	357	334
Total current liabilities	685	922
LONG-TERM DEBT, NET	6,476	6,292
DEFERRED INCOME TAXES	1,941	2,055
OTHER LONG-TERM LIABILITIES	$ 560	$ 549
EQUITY
Preferred stock (200 million shares authorized at $0.01 par value) no shares outstanding at June 30, 2015 and December 31, 2014
Common stock (2.0 billion shares authorized at $0.01 par value) outstanding shares (June 30, 2015 - 386,380,829 and December 31, 2014 - 385,639,582)	$ 4	$ 4
Additional paid-in capital	4,766	4,748
Accumulated deficit	(2,293)	(2,117)
Accumulated other comprehensive income / (loss)	(22)	(24)
Total equity	2,455	2,611
TOTAL LIABILITIES AND EQUITY	$ 12,117	$ 12,429

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 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	386,380,829	385,639,582

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES
Oil and natural gas net sales to third parties	$ 609	$ 28	$ 1,158	$ 48
Oil and natural gas net sales to related parties		1,079		2,139
Other revenue	25	33	53	74
TOTAL REVENUES	634	1,140	1,211	2,261
COSTS AND OTHER DEDUCTIONS
Production costs	242	270	484	534
General and administrative expenses	85	71	161	140
Depreciation, depletion and amortization	251	293	504	582
Taxes other than on income	53	55	108	107
Exploration expense	7	15	24	46
Interest and debt expense, net	83		162
Other expenses	27	28	51	70
TOTAL COSTS AND OTHER DEDUCTIONS	748	732	1,494	1,479
INCOME / (LOSS) BEFORE INCOME TAXES	(114)	408	(283)	782
Income tax (expense) / benefit	46	(162)	115	(313)
NET INCOME / (LOSS)	$ (68)	$ 246	$ (168)	$ 469
Net income / (loss) per share of common stock
Basic (in dollars per share)	$ (0.18)	$ 0.63	$ (0.44)	$ 1.21
Diluted (in dollars per share)	(0.18)	$ 0.63	(0.44)	$ 1.21
Dividends per common share	$ 0.01		$ 0.02

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Condensed Statements of Comprehensive Income
Net income / (loss)		$ (68)	$ 246	$ (168)	$ 469
Other comprehensive income / (loss) items:
Unrealized losses on derivatives	[1]				(2)
Pension and postretirement (losses) / gains	[2]	(3)		(3)	1
Reclassification to income of realized losses on derivatives	[3]				3
Reclassification to income of realized losses on pension and postretirement	[4]	5		5
Other comprehensive income / (loss), net of tax		2		2	2
Comprehensive income/(loss)		$ (66)	$ 246	$ (166)	$ 471
[1]	No tax for the three months ended June 30, 2015 and 2014. Net of tax of zero and $1 million for the six months ended June 30, 2015 and 2014, respectively.
[2]	Net of tax of $2 million and zero for the three months ended June 30, 2015 and 2014, respectively. Net of tax of $2 million and zero for the six months ended June 30, 2015 and 2014, respectively. See Note 10, Retirement and Postretirement Benefit Plans, for additional information.
[3]	No tax for the three months ended June 30, 2015 and 2014. Net of tax of Zero and ($2) million for the six months ended June 30, 2015 and 2014, respectively.
[4]	Net of tax of ($3) million and zero for the three months ended June 30, 2015 and 2014, respectively. Net of tax of ($3) million and zero for the six months ended June 30, 2015 and 2014, respectively. See Note 10, Retirement and Postretirement Benefit Plans, for additional information.

Consolidated Condensed Stateme6

Consolidated Condensed Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Consolidated Condensed Statements of Comprehensive Income
Unrealized losses on derivatives, tax	$ 0	$ 0	$ 0	$ 1
Pension and postretirement (losses) / gains, tax	2	0	2	0
Reclassification to income of realized losses on derivatives, tax	0	0	0	(2)
Reclassification to income of realized losses on pension and postretirement, tax	$ (3)	$ 0	$ (3)	$ 0

Consolidated Condensed Stateme7

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOW FROM OPERATING ACTIVITIES
Net income / (loss)	$ (168)	$ 469
Adjustments to reconcile net income / (loss) to net cash provided by operating activities:
Depreciation, depletion and amortization	504	582
Deferred income tax expense / (benefit)	(115)	178
Other noncash charges to income	54	22
Dry hole expenses	7	32
Changes in operating assets and liabilities, net	(50)	(47)
Net cash provided by operating activities	232	1,236
CASH FLOW FROM INVESTING ACTIVITIES
Capital investments	(228)	(1,003)
Changes in capital investment accruals	(203)	(1)
Acquisitions and other	(9)	(35)
Net cash used by investing activities	(440)	(1,039)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from revolving credit facility	1,164
Repayments of revolving credit facility	(934)
Proceeds from issuance of common stock	5
Cash dividends paid	(4)
Distributions to Occidental, net		(197)
Net cash provided / (used) by financing activities	231	$ (197)
Increase in cash and cash equivalents	23
Cash and cash equivalents - beginning of period	14
Cash and cash equivalents - end of period	$ 37

THE SPIN-OFF AND SUMMARY OF SIG

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2015
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 THE 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 and six months ended June 30, 2015, as applicable, consist of our stand-alone consolidated results following the Spin-off, and the three and six months ended June 30, 2014 consist of the combined results of the California business. · Our consolidated balance sheets at June 30, 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 June 30, 2015, and the statements of operations, comprehensive income, and cash flows for the three and six months ended June 30, 2015 and 2014, as applicable. The income / (loss) and cash flows for the periods ended June 30, 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. In 2015, we changed the classification of certain employee-related costs between general and administrative expenses and production costs to better align these costs with the functions performed by those employees. Prior period amounts have been changed to conform to the current year classification. 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 CHANG

ACCOUNTING AND DISCLOSURE CHANGES	6 Months Ended
	Jun. 30, 2015
ACCOUNTING AND DISCLOSURE CHANGES
ACCOUNTING AND DISCLOSURE CHANGES	NOTE 2 ACCOUNTING AND DISCLOSURE CHANGES In May 2015, the Financial Accounting Standards Board (FASB) issued rules to remove the requirements to categorize within the fair value hierarchy all investments for which the fair value is measured using the net asset value (NAV) per share practical expedient. The new rules also limit disclosures to investments for which the entity has elected to measure the fair value using that practical expedient, rather than for all investments that are eligible to be measured at fair value using the NAV per share. These rules will be effective for annual periods beginning after December 15, 2015, and interim periods within those fiscal years, with early adoption of the rules permitted. We do not expect the disclosure changes to have a significant impact on our financial statements. In April 2015, the 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 will be 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 in the first quarter of 2015 and retrospectively reclassified unamortized debt issuance costs of $68 million at December 31, 2014. The amount was previously reflected in other assets.

OTHER INFORMATION

OTHER INFORMATION	6 Months Ended
	Jun. 30, 2015
OTHER INFORMATION
OTHER INFORMATION	NOTE 3 OTHER INFORMATION Other current assets at June 30, 2015 and December 31, 2014, include amounts due from joint interest partners of approximately $120 million each, deferred tax assets of $60 million each, and greenhouse gas emission credits of $40 million and $65 million, respectively. Accrued liabilities at June 30, 2015 and December 31, 2014, include accrued compensation-related costs of approximately $95 million each, interest payable of $85 million and $70 million and greenhouse gas liabilities of $70 million and $65 million, respectively. Other long-term liabilities include asset retirement obligations of $396 million and $397 million at June 30, 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 six-month period ended June 30, 2015. Interest paid totaled approximately $149 million and zero for the six months ended June 30, 2015 and 2014, respectively.

INVENTORIES

INVENTORIES	6 Months Ended
	Jun. 30, 2015
INVENTORIES
INVENTORIES	NOTE 4 INVENTORIES Inventories as of June 30, 2015 and December 31, 2014, consisted of the following: 2015 2014 (in millions) Materials and supplies $ $ Finished goods Total $ $

DEBT

DEBT	6 Months Ended
	Jun. 30, 2015
DEBT
DEBT	NOTE 5 DEBT Debt as of June 30, 2015 and December 31, 2014, consisted of the following: 2015 2014 (in millions) Revolving Credit Facility $ $ Term Loan Facility 5% notes due 2020 5 1/2% notes due 2021 6% notes due 2024 Total debt Less: Current maturities of long-term debt ) — Less: Deferred financing costs ) ) Total long-term debt, net $ $ 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 $25 million quarterly installments beginning on March 31, 2016. As of June 30, 2015, we had $590 million outstanding under our Revolving Credit Facility with the ability to incur additional borrowings of up to $697 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 not be required to be secured so long as we maintain our credit ratings at the minimum levels defined in the Credit Facilities. 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). 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 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 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 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. 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% 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 June 30, 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 $5.9 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 June 30, 2015, would result in an approximately $2 million change in annual interest expense. As of June 30, 2015 and December 31, 2014, we had letters of credit in the aggregate amount of approximately $27 million and $25 million, respectively, that were issued to support ordinary course marketing and other matters.

LAWSUITS, CLAIMS, COMMITMENTS A

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jun. 30, 2015
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	NOTE 6 LAWSUITS, 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 June 30, 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 June 30, 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	6 Months Ended
	Jun. 30, 2015
DERIVATIVES
DERIVATIVES	NOTE 7 DERIVATIVES General From time to time, we use a variety of derivative instruments intended 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 $17 million and $20 million of net derivative losses from marking these contracts to market, which were included in net sales, for the three and six months ended June 30, 2015, respectively. As of June 30, 2015, our existing hedge positions, the initial values of which were not material, were as follows: · Weighted average Brent-based floors of $52.14 per barrel for 70,000 barrels per day of our third quarter 2015 oil production; · Brent-based ceilings of $72.12 per barrel for 30,000 barrels per day of our third quarter 2015 oil production; · Weighted average Brent-based floors and ceilings of $61.25 per barrel and $73.88 per barrel, respectively, for 40,000 barrels per day of our fourth quarter 2015 oil production; · Brent-based hedge at $72.05 per barrel for 2,000 barrels per day of our total year 2016 oil production; · Index-based hedges at an average price of $3.01 per million British thermal unit (MMBtu) for 40,000 MMBtu per day and weighted average floors and ceilings of $2.80 per MMBtu and $3.17 per MMBtu, respectively, for 20,000 MMBtu per day of our second half 2015 natural gas production. From January through June 2015 we had purchased options for 100,000 barrels of our crude oil production per day, at $50 per barrel Brent and sold options for 30,000 barrels per day for March through June 2015 at $75 Brent. The initial intrinsic and time values were deferred and subsequent changes were included in the net derivative losses reported in net sales. The initial intrinsic value, which was accounted for as a cash flow hedge, was insignificant. Going forward, 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. For the first quarter of 2014 we had hedged 50 MMcf per day of our natural gas production, which 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- and six-month periods ended June 30, 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- and six-month periods ended June 30, 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 100,000 barrel 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 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. The following table presents the gross and net fair values of our outstanding derivatives as of June 30, 2015 (in millions): Asset Derivatives Liability Derivatives June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current assets $ Accrued Liabilities $ ) Total gross and net fair value $ $ )

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS	NOTE 8 FAIR 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 June 30, 2015 and December 31, 2014 (in millions): June 30, 2015 Level 1 Level 2 Level 3 Collateral Total Assets: Commodity derivative instruments, other current assets $ — $ $ — $ — $ Liabilities: Commodity derivative instruments, accrued liabilities $ — $ $ — $ — $ December 31, 2014 Level 1 Level 2 Level 3 Collateral Total Assets: Commodity derivative instruments, other current assets $ — $ $ — $ — $ Fair Values - Nonrecurring During the six months ended June 30, 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	6 Months Ended
	Jun. 30, 2015
EARNINGS PER SHARE
Earnings per share	NOTE 9 EARNINGS 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, however it excludes outstanding shares related to unvested stock awards. 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. For the three and six months ended June 30, 2015 we issued approximately 365,000 shares and 735,000 shares, respectively, of common stock in connection with our employee stock purchase plan. The effect of the employee stock purchase plan was anti-dilutive for the three and six months ended June 30, 2015. The following table presents the calculation of basic and diluted EPS for the three- and six-month periods ended June 30, 2015 and 2014: Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in millions, except per-share amounts) Basic EPS calculation Net income / (loss) $ ) $ $ ) $ Net income / (loss) allocated to participating securities — ) — ) Net income / (loss) available to common stockholders $ ) $ $ ) $ Weighted-average common shares outstanding - basic Basic EPS $ ) $ $ ) $ Diluted EPS calculation Net income / (loss) $ ) $ $ ) $ Net income / (loss) allocated to participating securities — ) — ) Net income / (loss) available to common stockholders $ ) $ $ ) $ Weighted average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — — — Weighted-average common shares outstanding - diluted Diluted EPS $ ) $ $ ) $

RETIREMENT AND POSTRETIREMENT B

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS	6 Months Ended
	Jun. 30, 2015
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS	NOTE 10 RETIREMENT 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 June 30, 2015 2014 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss — — Settlements — — — Total $ $ $ $ Six months ended June 30, 2015 2014 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss — — Settlements — — — Total $ $ $ $ We contributed $3 million to our defined benefit pension plans during the three months ended June 30, 2015. We did not make any contributions during the three months ended March 31, 2015 or either of the three- or six-month periods ended June 30, 2014. The 2015 settlements were associated with early retirements.

RELATED-PARTY TRANSACTIONS

RELATED-PARTY TRANSACTIONS	6 Months Ended
	Jun. 30, 2015
RELATED-PARTY TRANSACTIONS
RELATED-PARTY TRANSACTIONS	NOTE 11 RELATED-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 and six months ended June 30, 2014, related party sales included oil and natural gas products of $1,079 million and $2,139 million, respectively, and power (reflected in other revenue) of $28 million and $66 million, respectively. Purchases from related parties reflect products purchased at market prices from Occidental’s subsidiaries and used in our operations. These purchases were approximately $100 million and $120 million for the three and six months ended June 30, 2014, respectively, and were included in production costs. There were no significant related-party receivable or payable balances at June 30, 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 $40 million and $75 million for the three and six months ended June 30, 2014, respectively, are reflected in general and administrative expenses.

THE SPIN-OFF AND SUMMARY OF S19

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 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 and six months ended June 30, 2015, as applicable, consist of our stand-alone consolidated results following the Spin-off, and the three and six months ended June 30, 2014 consist of the combined results of the California business. · Our consolidated balance sheets at June 30, 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 June 30, 2015, and the statements of operations, comprehensive income, and cash flows for the three and six months ended June 30, 2015 and 2014, as applicable. The income / (loss) and cash flows for the periods ended June 30, 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. In 2015, we changed the classification of certain employee-related costs between general and administrative expenses and production costs to better align these costs with the functions performed by those employees. Prior period amounts have been changed to conform to the current year classification. 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)	6 Months Ended
	Jun. 30, 2015
INVENTORIES
Inventories	2015 2014 (in millions) Materials and supplies $ $ Finished goods Total $ $

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jun. 30, 2015
DEBT
Debt	2015 2014 (in millions) Revolving Credit Facility $ $ Term Loan Facility 5% notes due 2020 5 1/2% notes due 2021 6% notes due 2024 Total debt Less: Current maturities of long-term debt ) — Less: Deferred financing costs ) ) Total long-term debt, net $ $

DERIVATIVES (Tables)

DERIVATIVES (Tables)	6 Months Ended
	Jun. 30, 2015
DERIVATIVES
Gross and net fair values of outstanding derivatives (in millions)	Asset Derivatives Liability Derivatives June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Commodity contracts Other current assets $ Accrued Liabilities $ ) Total gross and net fair value $ $ )

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jun. 30, 2015
FAIR VALUE MEASUREMENTS
Assets and liabilities accounted for at fair value on a recurring basis (in millions)	June 30, 2015 Level 1 Level 2 Level 3 Collateral Total Assets: Commodity derivative instruments, other current assets $ — $ $ — $ — $ Liabilities: Commodity derivative instruments, accrued liabilities $ — $ $ — $ — $ December 31, 2014 Level 1 Level 2 Level 3 Collateral Total Assets: Commodity derivative instruments, other current assets $ — $ $ — $ — $

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2015
EARNINGS PER SHARE
Calculation of basic and diluted EPS	Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 (in millions, except per-share amounts) Basic EPS calculation Net income / (loss) $ ) $ $ ) $ Net income / (loss) allocated to participating securities — ) — ) Net income / (loss) available to common stockholders $ ) $ $ ) $ Weighted-average common shares outstanding - basic Basic EPS $ ) $ $ ) $ Diluted EPS calculation Net income / (loss) $ ) $ $ ) $ Net income / (loss) allocated to participating securities — ) — ) Net income / (loss) available to common stockholders $ ) $ $ ) $ Weighted average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — — — Weighted-average common shares outstanding - diluted Diluted EPS $ ) $ $ ) $

RETIREMENT AND POSTRETIREMENT25

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)	6 Months Ended
	Jun. 30, 2015
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
Components of the net periodic benefit cost	Three months ended June 30, 2015 2014 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss — — Settlements — — — Total $ $ $ $ Six months ended June 30, 2015 2014 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss — — Settlements — — — Total $ $ $ $

THE SPIN-OFF AND SUMMARY OF S26

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - Spinoff - CRC - Occidental Petroleum And Subsidiaries	6 Months Ended
	Jun. 30, 2015	Nov. 30, 2014
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

ACCOUNTING AND DISCLOSURE CHA27

ACCOUNTING AND DISCLOSURE CHANGES (Details) $ in Millions	Dec. 31, 2014USD ($)
ACCOUNTING AND DISCLOSURE CHANGES
Unamortized debt issuance costs	$ 68

OTHER INFORMATION (Details)

OTHER INFORMATION (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
OTHER INFORMATION
Amount due from joint interest partners, other current assets	$ 120		$ 120
Deferred tax assets, other current assets	60		60
Greenhouse gas emission assets, other current assets	40		65
Accrued compensation-related costs, accrued liabilities	95		95
Interest payable, accrued liabilities	85		70
Greenhouse gas liabilities, accrued liabilities	70		65
Asset Retirement Obligations, other long-term liabilities	396		$ 397
Interest Paid	$ 149	$ 0

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
INVENTORIES
Materials and supplies	$ 70	$ 66
Finished goods	4	5
Total	$ 74	$ 71

DEBT (Details)

DEBT (Details) $ in Millions	Feb. 25, 2015USD ($)	Oct. 01, 2014USD ($)	Sep. 24, 2014USD ($)	Jun. 30, 2015USD ($)	Dec. 31, 2015	Dec. 31, 2014USD ($)
Debt
Debt				$ 6,590		$ 6,360
Less: Current maturities of long-term debt				(50)
Less: Deferred financing costs				(64)		(68)
Total long-term debt, net				6,476		6,292
Maximum borrowing capacity			$ 2,000
Senior Notes
Debt
Aggregate principal amount		$ 5,000
Net Proceeds from private placement		4,950
Cash distribution to Occidental in October 2014		$ 4,950
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		$ 1,000		$ 1,000
Debt Instrument, Interest Rate, Stated Percentage		5.00%		5.00%		5.00%
5.50% Senior notes due 2021
Debt
Debt		$ 1,750		$ 1,750		$ 1,750
Debt Instrument, Interest Rate, Stated Percentage		5.50%		5.50%		5.50%
6.00% Senior notes due 2024
Debt
Debt		$ 2,250		$ 2,250		$ 2,250
Debt Instrument, Interest Rate, Stated Percentage		6.00%		6.00%		6.00%
Credit Facilities
Debt
Credit agreement leverage ratio			4.50
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			4.50
Credit Facilities | Minimum
Debt
Credit agreement interest expense ratio			2.50		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
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
Term loan facility
Debt
Debt				$ 1,000		$ 1,000
Senior term loan facility and senior revolving credit facility			5 years
Maximum borrowing capacity			$ 1,000
Quarterly installment payment beginning March 31, 2016				25
Revolving credit facility
Debt
Debt				590		$ 360
Senior term loan facility and senior revolving credit facility			5 years
Maximum borrowing capacity			$ 1,000
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				$ 697
Commitment fees on unused portion of the Revolving Credit Facility			0.50%
Letter of Credit
Debt
Maximum borrowing capacity			$ 400

DEBT (Details 2)

DEBT (Details 2) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Dec. 31, 2014
Other Fixed-Rate and Variable-Rate Debt Disclosures
Estimated fair value of long-term debt, including current maturities	$ 5,900	$ 5,600
Net carrying value of long term debt including current maturities	6,500	6,300
Aggregate letters of credit issued	$ 27	$ 25
Pro Forma
Other Variable-Rate Debt Disclosures
Percentage of change in the variable interest rates	0.125%
Effect of 1/8 percent change in interest rates	$ 2

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2015USD ($)item$ / MMBTU$ / bbl	Jun. 30, 2015USD ($)MMBTUitem$ / MMBTU$ / bblbbl	Jun. 30, 2014item	Mar. 31, 2014ft³ / d$ / ft³
Derivatives
Net derivative losses recognized in net sales (in dollars) | $	$ (17)	$ (20)
Daily Volume (in cubic feet) | ft³ / d				50,000,000
Weighted-average strike price (in dollars per cubic foot) | $ / ft³				0.00430
Crude Oil - Put Option January 2015 through June 2015
Derivatives
Crude oil production per day (in barrels per day) | bbl		100,000
Hedge price (in dollars per barrel)	50	50
Crude Oil Call Option March Through June 2015
Derivatives
Crude oil production per day associated with the call option (in barrels per day) | bbl		30,000
Hedge price (in dollars per barrel)	75	75
Crude Oil Average Brent Based Hedge - Third Quarter 2015
Derivatives
Daily volume (in barrels per day) | bbl		70,000
Weighted average floor price	52.14	52.14
Crude Oil Brent Based Hedge - Third Quarter 2015
Derivatives
Daily volume (in barrels per day) | bbl		30,000
Ceiling price	72.12	72.12
Crude Oil Hedge - Fourth Quarter 2015
Derivatives
Daily volume (in barrels per day) | bbl		40,000
Weighted average floor price	61.25	61.25
Weighted Average ceiling price	73.88	73.88
Crude Oil Hedge - Total Year 2016
Derivatives
Daily volume (in barrels per day) | bbl		2,000
Hedge price (in dollars per barrel)	72.05	72.05
Natural Gas Index Based Hedge - Second Half 2015 Member
Derivatives
Daily volume (in Mmbtu) | MMBTU		40,000
Hedges average price | $ / MMBTU	3.01	3.01
Natural Gas Collars Based Hedge - Second Half 2015 Member
Derivatives
Daily volume (in Mmbtu) | MMBTU		20,000
Weighted average floor price | $ / MMBTU	2.80	2.80
Weighted Average ceiling price | $ / MMBTU	3.17	3.17
Fair Value Hedges
Derivatives
Number of hedges | item	0	0	0

DERIVATIVES (Details 2)

DERIVATIVES (Details 2) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Gross and net fair values of outstanding derivatives (in millions)
Total gross and net fair value, asset	$ 18	$ 24
Total gross and net fair value, liability	(9)
Commodity Contracts | Other current assets
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	18
Commodity Contracts | Accrued liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	$ (9)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - Recurring - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Level 1
Assets
Commodity derivative instruments, other current assets		$ 0
Level 2
Assets
Commodity derivative instruments, other current assets	$ 18	24
Liabilities:
Commodity derivative instruments, accrued liabilities	9
Level 3
Assets
Commodity derivative instruments, other current assets		0
Netting and Collateral
Assets
Commodity derivative instruments, other current assets		0
Total Fair Value
Assets
Commodity derivative instruments, other current assets	18	$ 24
Liabilities:
Commodity derivative instruments, accrued liabilities	$ 9

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended		3 Months Ended		6 Months Ended
	Dec. 31, 2014	Nov. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic EPS calculation
Net income / (loss)			$ (68)	$ 246	$ (168)	$ 469
Net income / (loss) allocated to participating securities				(4)		(8)
Net income / (loss) available to common stockholders			$ (68)	$ 242	$ (168)	$ 461
Weighed average common shares outstanding - basic			382.7	381.8	382.4	381.8
Basic EPS (in dollars per share)			$ (0.18)	$ 0.63	$ (0.44)	$ 1.21
Diluted EPS calculation
Net income / (loss)			$ (68)	$ 246	$ (168)	$ 469
Net income / (loss) allocated to participating securities				(4)		(8)
Net income / (loss) available to common stockholders			$ (68)	$ 242	$ (168)	$ 461
Weighed average common shares outstanding - basic			382.7	381.8	382.4	381.8
Weighted average common shares outstanding - diluted			382.7	381.8	382.4	381.8
Diluted EPS (in dollars per share)			$ (0.18)	$ 0.63	$ (0.44)	$ 1.21
Employee Stock Purchase Plan
Diluted EPS calculation
Common stock issued under employee stock purchase plan			365,000		735,000
Occidental Petroleum And Subsidiaries | Spinoff - CRC
Diluted EPS calculation
Common stock issued upon Spin-off		381,400,000
Weighted average basic share count for periods presented prior to Spin-off	381,800,000

RETIREMENT AND POSTRETIREMENT36

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Net periodic benefit costs:
Employer contributions	$ 3,000,000	$ 0		$ 0
Pension Benefit
Net periodic benefit costs:
Service cost	1,000,000	1,000,000	$ 2,000,000	2,000,000
Interest cost	1,000,000	1,000,000	2,000,000	2,000,000
Expected return on plan assets	(1,000,000)	(1,000,000)	(2,000,000)	(3,000,000)
Recognized actuarial loss	1,000,000	1,000,000	1,000,000	1,000,000
Settlements	8,000,000		8,000,000
Net periodic benefit cost	10,000,000	2,000,000	11,000,000	2,000,000
Postretirement Benefit
Net periodic benefit costs:
Service cost	1,000,000	1,000,000	2,000,000	2,000,000
Interest cost	1,000,000	1,000,000	2,000,000	2,000,000
Net periodic benefit cost	$ 2,000,000	$ 2,000,000	$ 4,000,000	$ 4,000,000

RELATED-PARTY TRANSACTIONS (Det

RELATED-PARTY TRANSACTIONS (Details) - Jun. 30, 2014 - USD ($) $ in Millions	Total	Total
Sales	$ 1,079	$ 2,139
Occidental Petroleum And Subsidiaries
Purchases	100	120
Occidental Petroleum And Subsidiaries | General and Administrative Expense
Charges for services provided by Occidental prior to the spin-off	40	75
Occidental Petroleum And Subsidiaries | Oil and natural gas
Sales	1,079	2,139
Occidental Petroleum And Subsidiaries | Power | other revenue
Sales	$ 28	$ 66