sales of $1.1 billion and $2.1 billion for the three and six months ended June 30, 2006, compared with the same periods in 2005, reflected higher worldwide crude oil and natural gas prices and production.
The increase in production for the three and six months ended June 30, 2006, was due to the Vintage acquisition and the resumption of producing operations in Libya in the third quarter of 2005.
The average West Texas Intermediate (WTI) price in the second quarter of 2006 was $70.70 per barrel and the average New York Mercantile Exchange (NYMEX) price for natural gas was $7.26 per million BTUs, compared to $53.17 per barrel and $6.80 per million BTUs, respectively, for the second quarter 2005. Occidental’s realized oil price for the second quarter of 2006 was $60.67 per barrel compared to $46.27 per barrel for the second quarter of 2005. Occidental’s realized price differential to WTI improved in the second quarter of 2006 to 86% of WTI as compared to 85% in the first quarter of 2006. For the first six months of 2006, Occidental’s realized oil price was $57.39 per barrel compared to last year’s realized price of $44.39 for first six months of 2005. A change of 25 cents per million BTUs in NYMEX gas prices impacts quarterly oil and gas segment earnings by approximately $12 million while a $1.00 per-barrel change in oil prices has a quarterly pre-tax impact of approximately $38 million.
Average production costs for the first six months of 2006 were $11.14 per barrel of oil equivalent (BOE) compared to the 2005 production cost of $8.81 per BOE. Included in the increase of $2.33 per BOE were utility costs of 15 cents, gas plant costs of 14 cents, ad valorem and production taxes of 31 cents and export taxes. Argentina export taxes resulting from higher energy prices represented 38 cents of this increase. The remaining change was the result of workover, maintenance and other costs. Higher energy prices also reduced the volumes produced under production sharing contracts, which resulted in spreading gross costs for the total production operated by Occidental over fewer net barrels.
On January 30, 2006, Occidental completed the merger of Vintage into a wholly-owned Occidental subsidiary. Occidental acquired producing assets in Argentina, the United States, Yemen and Bolivia. The Argentine assets consist of 22 concessions, 19 of which Occidental will operate, located in the San Jorge Basin in southern Argentina and the Cuyo Basin in western Argentina. Occidental paid approximately $1.3 billion to former Vintage shareholders for the cash portion of the merger consideration and issued approximately 28 million shares for the stock portion, which was valued at $2.1 billion. In addition, Occidental assumed Vintage’s debt, which had an estimated fair market value of $585 million at closing. Occidental has divested a portion of Vintage’s assets for proceeds of over $700 million and intends to divest of more of these assets. Occidental believes that the merger provides significant growth opportunities represented by Vintage’s assets in Argentina, California and Yemen, all of which will complement and enhance Occidental’s current operations and production. Furthermore, the addition of Vintage’s assets is expected to make significant long-term contributions to Occidental’s cash flow. The results of operations for the assets held for sale are not included in the revenue, cost or production amounts and are treated as discontinued operations.
On August 7, 2006, Occidental announced an agreement with Plains Exploration & Production Company to acquire certain oil and gas assets for $865 million in cash. Occidental estimates that the acquisition will add proved reserves of approximately 56 million barrels of oil equivalent. The principal properties being acquired are adjacent to Occidental’s existing properties in California and the Permian Basin in West Texas. This transaction is consistent with Occidental’s U.S. strategy of focusing on its core geographic areas in California and Texas.
Occidental plans to apply the techniques that it has used successfully to enhance production in its other U.S. operations. Occidental expects to substantially increase the current production rate of 8,900 net barrels of oil equivalent per day within the next few years. The transaction, which is accretive to earnings and cash flow and will be financed from cash on hand, is expected to close on or about October 1, 2006.
Chemical segment and core earnings for the first six months of 2006 were $498 million, compared with $439 million for the same period of 2005. Chemical segment and core earnings for the three months ended June 30, 2006 were $250 million, compared with $225 million for the same period of 2005. The increase in earnings for the first three and six
months ended June 30, 2006, compared with the same periods in 2005, was due to increased chlorine and caustic soda volumes.
Corporate and Other
Unallocated corporate items – income taxes for the three and six months ended June 30, 2005, includes a $619 million tax benefit resulting from the resolution of certain tax issues with IRS, and for the six months ended June 30, 2005, includes a $10 million charge related to a state tax issue.
Since August 2002, when Occidental acquired its investment in Lyondell, two senior executives of Occidental have held seats on Lyondell’s board of directors. One of Occidental’s senior executives did not stand for re-election to Lyondell’s board of directors at its annual meeting on May 4, 2006. As a result, Occidental management believes that it has lost the ability to exercise significant influence over Lyondell’s financial and operating policies and has discontinued accruing its share of Lyondell earnings or losses under equity-method accounting. Subsequent to May 4, 2006, Occidental has accounted for its Lyondell shares as an available-for-sale cost method investment.
On May 15, 2006, Ecuador’s Minister of Energy terminated Occidental’s contract for the operation of Block 15, which comprised all of its oil producing operations in the country, and the Government of Ecuador seized Occidental’s Block 15 assets shortly thereafter. The process resulting in this action began more than two years ago shortly after Occidental prevailed, by unanimous decision of an international arbitration panel, in a legal dispute over tax refunds that the Government of Ecuador wrongly withheld from Occidental. The panel’s decision was subsequently upheld by a London court. As a result of the seizure, Occidental has classified its Block 15 operations as discontinued operations. In the second quarter of 2006, Occidental recorded a net after-tax charge of $306 million in discontinued operations. This amount consists of after-tax charges for the write-off of the investment in Block 15 in Ecuador, as well as ship or pay obligations entered into with the OCP Pipeline to ship oil produced at Block 15, partially offset by $109 million net of tax income from operations for the first five months of 2006.
Liquidity and Capital Resources
Occidental’s net cash provided by operating activities was $3.1 billion for the first six months of 2006, compared with $2.4 billion for the same period of 2005. The significant increase in operating cash flow in 2006, compared to 2005, resulted from several factors. The most important drivers were the significantly higher oil and natural gas prices and production and, to a much lesser extent, higher chemical volumes. In the first six months of 2006, compared to the same period in 2005, Occidental's realized oil price was higher by 29 percent and Occidental’s realized natural gas price increased almost 20 percent in the U.S., where over 80 percent of Occidental’s natural gas was produced. Oil and gas production for the first six months of 2006, compared to the same period in 2005, increased almost 16 percent. Chemical volume increases had a less significant effect on cash flow because chemical segment earnings and cash flow are significantly smaller than those for the oil and gas segment.
Increases in the costs of producing oil and gas, such as purchased goods and services, utility and gas plant costs and production taxes, partially offset oil and gas sales price increases, but such cost increases had a much lower effect on cash flow than the realized price increases. Other cost elements, such as labor costs and overheads, are not significant drivers of cash flow because they are mainly fixed within a narrow range over the short-to-intermediate term.
Occidental’s net cash used by investing activities was $2.2 billion for the first six months of 2006, compared with $2.4 billion for the same period of 2005. The 2006 amount includes $1.3 billion in cash consideration paid as part of the Vintage acquisition partially offset by $658 million of cash proceeds from the Vintage assets held for sale. The 2005 amount includes cash payments for the Permian Basin transactions and the acquisition of the Vulcan chlor-alkali manufacturing facilities, which were partially offset by the cash proceeds from the sale of Lyondell common stock. Capital expenditures for the first six months of 2006 were $1.2 billion, including $1.1 billion in oil and gas. Capital expenditures for the first six months of 2005 were $1.0 billion, including $932 million in oil and gas.
Occidental’s net cash used by financing activities was $1.8 billion in the first six months of 2006, compared with $568 million for the same period of 2005. The 2006 amount includes $970 million of cash paid for repurchases of 10.0
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million shares of Occidental’s common stock at an average price of $96.59 per share. In the second quarter of 2006, Occidental repurchased 7.6 million common shares at an average price of $98.11 per share. In February 2006, Occidental announced a common stock repurchase plan for an intermediate target total of approximately 30 million shares. In July 2006, the Board of Directors increased the number of shares authorized for the previously announced repurchase program to 20 million pre-split shares. The share repurchases will continue to be funded solely from available cash from operations. The 2006 amount also includes net debt payments of $618 million. The 2005 amount includes net debt payments of $430 million.
Available but unused lines of committed bank credit totaled approximately $1.5 billion at June 30, 2006, and cash and cash equivalents and short-term investments totaled $1.6 billion on the June 30, 2006 balance sheet.
At June 30, 2006, under the most restrictive covenants of certain financing agreements, Occidental’s capacity for additional unsecured borrowing was approximately $41.8 billion, and the capacity for the payment of cash dividends and other distributions on, and for acquisitions of, Occidental’s capital stock was approximately $15.9 billion, assuming that such dividends, distributions and acquisitions were made without incurring additional borrowing.
Occidental currently expects to spend approximately $3.0 billion on its 2006 capital spending program. Although its income and cash flows are largely dependent on oil and gas prices and production, Occidental believes that cash on hand, short-term investments and cash generated from operations will be sufficient to fund its operating needs, capital expenditure requirements, dividend payments and potential acquisitions.
On July 20, 2006, Occidental’s Board of Directors authorized an increase in the quarterly dividend to $0.44 per share of common stock on a pre-split basis, compared to the previous quarterly rate of $0.36 per share. The Board of Directors also authorized a two-for-one stock split in the form of a stock dividend to Occidental’s shareholders of record on August 1, 2006, with distribution of the shares to occur on August 15, 2006. The total number of authorized common stock shares and associated par value per share was unchanged by this action. Share and per share information in the consolidated condensed statements of income and stockholders’ equity information in the consolidated condensed balance sheets presented in this report are on a pre-split basis.
On August 7, 2006, Occidental announced an agreement with Plains Exploration & Production Company to acquire certain oil and gas assets for $865 million in cash. The transaction is expected to close on or about October 1, 2006.
Environmental Expenditures
Occidental’s operations in the United States are subject to stringent federal, state and local laws and regulations relating to improving or maintaining environmental quality. Foreign operations also are subject to environmental-protection laws. The laws that require or address environmental remediation may apply to past waste disposal practices and releases. In many cases, the laws apply regardless of fault, legality of the original activities or current ownership or control of sites. OPC or certain of its subsidiaries are currently participating in environmental assessments and cleanups under these laws at sites subject to the federal Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), comparable state sites and other domestic and foreign remediation sites, including Occidental facilities and previously owned sites.
The following table presents Occidental’s environmental remediation reserves at June 30, 2006, the current portion of which ($83 million) is included in accrued liabilities. The remaining amount of $329 million is included in other deferred credits and other liabilities. The reserves are grouped by three categories of environmental remediation sites ($ amounts in millions):
| | | | # of Sites | | Reserve
Balance | |
| | CERCLA & Equivalent Sites | | | 131 | | | | $ | 234 | | |
| | Active Facilities | | | 19 | | | | | 115 | | |
| | Closed or Sold Facilities | | | 39 | | | | | 63 | | |
| | Total | | | 189 | | | | $ | 412 | | |
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In determining the environmental remediation reserves and the reasonably possible range of loss, Occidental refers to currently available information, including relevant past experience, available technology, regulations in effect, the timing of remediation and cost-sharing arrangements. Occidental believes it is reasonably possible that it will continue to incur additional liabilities beyond those recorded for environmental remediation at these and other sites. The range of reasonably possible loss for existing environmental remediation matters could be up to $415 million beyond the amount accrued.
The following table shows additional detail regarding reserves for CERCLA or CERCLA-equivalent proceedings in which OPC or certain of its subsidiaries were involved at June 30, 2006 ($ amounts in millions):
| | Description | | # of Sites | | Reserve
Balance | |
| | Minimal/No Exposure (a) | | | 107 | | | | $ | 3 | | |
| | Reserves between $1-10 MM | | | 17 | | | | | 55 | | |
| | Reserves over $10 MM | | | 7 | | | | | 176 | | |
| | Total | | | 131 | | | | $ | 234 | | |
| | (a) | Includes 29 sites for which Maxus Energy Corporation has retained the liability and indemnified Occidental, 9 sites where Occidental has denied liability without challenge, 59 sites where Occidental’s reserves are less than $50,000 each, and 10 sites where reserves are between $50,000 and $1 million each. | |
Refer to the “Environmental Liabilities and Expenditures” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations in the 2005 Form 10-K for additional information regarding Occidental’s environmental expenditures.
Lawsuits, Claims, Commitments, Contingencies and Related Matters
OPC and certain of its subsidiaries have been named in a substantial number of lawsuits, claims and other legal proceedings. These actions seek, among other things, compensation for alleged personal injury, breach of contract, property damage, punitive damages, civil penalties or other losses, or injunctive or declaratory relief. OPC and certain of its subsidiaries also have been named in proceedings under CERCLA and similar federal, state, local and foreign environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages and civil penalties; however, Occidental is usually one of many companies in these proceedings and has to date been successful in sharing response costs with other financially sound companies. With respect to all such lawsuits, claims and proceedings, including environmental proceedings, Occidental accrues reserves when it is probable a liability has been incurred and the amount of loss can be reasonably estimated.
On May 15, 2006, Ecuador’s Minister of Energy terminated Occidental’s contract for the operation of Block 15, alleging that Occidental had violated its Participation Contract for Block 15 and Ecuador’s Hydrocarbons Law. The Government of Ecuador seized Occidental’s Block 15 assets, which comprised all of its oil producing operations in the country, shortly thereafter. As a result of the seizure, Occidental has classified its Block 15 operations as discontinued operations. See Corporate and Other for more information. On May 17, 2006, Occidental filed an arbitration claim against the Government of Ecuador, seeking redress for illegal confiscation of the Block 15 operations with the International Centre for Settlement of Investment Disputes in Washington, D.C., invoking the protections of the U.S. – Ecuador Bilateral Investment Treaty. This process could take well over a year and Occidental cannot predict its outcome.
During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and foreign tax jurisdictions. Taxable years prior to 2001 are generally closed for U.S. federal corporate income tax purposes. Corporate tax returns for taxable years 2001 through 2003 are in various stages of audit by the U.S. Internal Revenue Service. Disputes arise during the course of such audits as to facts and matters of law.
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Occidental has guarantees outstanding at June 30, 2006, which encompass performance bonds, letters of credit, indemnities, commitments and other forms of guarantees provided by Occidental to third parties, mainly to provide assurance that Occidental and/or its subsidiaries and affiliates will meet their various obligations (guarantees). At June 30, 2006 the notional amount of the guarantees that are subject to the reporting requirements of FIN 45 was approximately $330 million, which mostly consists of Occidental’s guarantees of equity investees’ debt and other commitments. This amount excludes approximately $100 million related to Occidental’s guarantee of its share of the senior debt of the OCP pipeline in Ecuador, as the total amount has been accrued on the consolidated balance sheet at June 30, 2006.
It is impossible at this time to determine the ultimate liabilities that OPC and its subsidiaries may incur resulting from any lawsuits, claims and proceedings, audits, commitments, contingencies and related matters. If these matters were to be ultimately resolved unfavorably at amounts substantially exceeding Occidental’s reserves, an outcome not currently anticipated, it is possible that such outcome could have a material adverse effect upon Occidental’s consolidated financial position or results of operations. However, after taking into account reserves, management does not expect the ultimate resolution of any of these matters to have a material adverse effect upon Occidental’s consolidated financial position or results of operations.
Accounting Changes
In June 2006, the Financial Accounting Standards Board (FASB) issued FASB Interpretation (FIN) No. 48, “Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109.” This Interpretation provides accounting guidance for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return as well as additional disclosures related to these tax positions. FIN No. 48 is effective for fiscal years beginning after December 15, 2006. Occidental is currently assessing the effect of FIN No. 48 on its financial statements.
In February 2006, the FASB issued SFAS No. 155, “Accounting for Certain Hybrid Financial Instruments, an amendment of FASB Statement No. 133 and 140.” This Statement provides new accounting guidance for embedded derivatives and other issues. SFAS No. 155 is effective for all financial instruments acquired or issued after the beginning of an entity’s first fiscal year that begins after September 15, 2006. Occidental is currently assessing the effect of SFAS No. 155 on its financial statements, but does not expect it to have a material effect on its financial statements.
Safe Harbor Statement Regarding Outlook and Forward-Looking Information
Portions of this report contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Factors that could cause results to differ materially include, but are not limited to: exploration risks such as drilling unsuccessful wells; global commodity pricing fluctuations; higher-than-expected costs; potential liability for remedial actions under existing or future environmental regulations and litigation; potential liability resulting from pending or future litigation; general domestic and international political conditions; potential disruption or interruption of Occidental’s production or manufacturing facilities due to accidents, political events or insurgent activity; potential failure to achieve expected production from existing and future oil and gas development projects; the supply/demand considerations for Occidental’s products; any general economic recession or slowdown domestically or internationally; regulatory uncertainties; and not successfully completing, or any material delay of, any development of new fields, expansion, capital expenditure, efficiency-improvement project, acquisition or disposition. Forward-looking statements are generally accompanied by words such as “estimate”, “project”, “predict”, “will”, “anticipate”, “plan”, “intend”, “believe”, “expect” or similar expressions that convey the uncertainty of future events or outcomes. You should not place undue reliance on these forward-looking statements. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Certain risks that may affect Occidental’s results of operations and financial position appear in Part 1, Item 1A of Occidental’s 2005 Annual Report on Form 10-K.
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Item 3. Quantitative and Qualitative Disclosures About Market Risk
For the three and six months ended June 30, 2006, there were no material changes in the information required to be provided under Item 305 of Regulation S-K included under the caption “Management’s Discussion and Analysis of Financial Condition and Results of Operations (Incorporating Item 7A) – Derivative Activities and Market Risk” in Occidental’s 2005 Annual Report on Form 10-K.
Item 4. Controls and Procedures
Occidental's Chief Executive Officer and Chief Financial Officer supervised and participated in Occidental's evaluation of its disclosure controls and procedures as of the end of the period covered by this report. Disclosure controls and procedures are controls and procedures designed to ensure that information required to be disclosed in Occidental's periodic reports filed or submitted under the Securities Exchange Act of 1934, as amended (Exchange Act), is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by Occidental in the reports that it files or submits under the Exchange Act is accumulated and communicated to Occidental’s management to allow timely decisions regarding required disclosure. Based upon that evaluation, Occidental's Chief Executive Officer and Chief Financial Officer concluded that Occidental's disclosure controls and procedures are effective.
There has been no change in Occidental's internal control over financial reporting identified in connection with the evaluation required under the Exchange Act Rules that occurred during Occidental’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, Occidental's internal control over financial reporting.
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PART II OTHER INFORMATION
Item 1. Legal Proceedings
This item incorporates by reference the information regarding lawsuits, claims, commitments, contingencies and related matters in Note 9 to the consolidated condensed financial statements in Part I of this Form 10-Q.
The OxyVinyls partnership voluntarily entered into a consent decree with the U.S. Environmental Protection Agency, the State of New Jersey and the Louisville Metropolitan Air Pollution Control District regarding contested compliance allegations at four manufacturing facilities. Under the terms of the agreement, OxyVinyls will undertake emission reduction projects expected to reduce by almost 50 percent the combined vinyl chloride emissions from the four facilities at a cost of approximately $1.1 million. OxyVinyls also agreed to pay $125,000 toward a dust control study in New Jersey, and to pay penalties of approximately $340,000 to resolve alleged state and federal law violations. The consent decree was entered by the U.S. District Court for the Northern District of Texas in July 2006.
Item 2. Share Repurchase Activities
Occidental’s share repurchase activities as of June 30, 2006, were as follows:
Period | | Total
Number
of Shares
Purchased | | Average
Price
Paid
per Share | | Total Number
of Shares Purchased as
Part of Publicly
Announced Plans
or Programs (b) | | Maximum Number
of Shares that
May Yet be Purchased
Under the Plans
or Programs (b) |
First Quarter 2006 | | 2,411,940 | | | $ 91.79 | | 2,205,400 | | |
| | | | | | | | | | |
| | | | | | | | | | |
April 1 – 30, 2006 | | 1,365,500 | | | $100.72 | | 1,365,500 | | |
May 1 – 31, 2006 | | 4,404,273 | (a) | | $ 98.64 | | 4,318,300 | | |
June 1 – 30, 2006 | | 1,856,500 | | | $ 94.93 | | 1,856,500 | | |
Second Quarter 2006 | | 7,626,273 | | | $ 98.11 | | 7,540,300 | | |
| | | | | | | | | | |
Total 2006 | | 10,038,213 | | | $ 96.59 | | 9,745,700 | | 10,254,300 |
(a) Occidental purchased 85,973 shares in May from the trustee of its defined contribution savings plan.
(b) In 2006, Occidental announced a common stock repurchase plan for an intermediate target total of approximately 30 million shares. In July 2006, the Board of Directors increased the number of shares authorized for the previously announced share repurchase program to 20 million pre-split shares. A cumulative total of 10,134,994 shares have been purchased since December 2005.
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Item 4. Submission of Matters to a Vote of Security-Holders
Occidental’s 2006 Annual Meeting of Stockholders (the Annual Meeting) was held on May 5, 2006. The following actions were taken at the Annual Meeting, for which proxies were solicited pursuant to Regulation 14A under the Securities Exchange Act of 1934, as amended:
1. | The twelve nominees proposed by the Board of Directors were elected as directors by the following votes: |
| | NOMINEE | VOTES FOR | WITHHELD | |
| | Spencer Abraham | 369,893,523 | 4,451,732 | |
| | Ronald W. Burkle | 194,263,291 | 180,081,964 | |
| | John S. Chalsty | 296,434,895 | 77,910,360 | |
| | Edward P. Djerejian | 370,088,345 | 4,256,910 | |
| | R. Chad Dreier | 297,551,145 | 76,794,110 | |
| | John E. Feick | 370,231,896 | 4,113,359 | |
| | Ray R. Irani | 365,487,867 | 8,857,388 | |
| | Irvin W. Maloney | 297,093,684 | 77,251,571 | |
| | Rodolfo Segovia | 367,243,269 | 7,101,986 | |
| | Aziz D. Syriani | 366,723,149 | 7,622,106 | |
| | Rosemary Tomich | 296,688,723 | 77,656,532 | |
| | Walter L. Weisman | 370,017,405 | 4,327,850 | |
2. | The ratification of the selection of KPMG as independent auditors was approved. The proposal received: 369,453,414 votes for, 2,326,288 votes against, and 2,565,553 abstentions. |
3. | The amendment of the Restated Certificate of Incorporation to increase the authorized capital stock was approved. The proposal received 315,438,881 votes for, 55,809,689 votes against and 3,096,685 abstentions. |
4. | A stockholder proposal requesting a limitation on executive compensation was not approved.* The proposal received 11,359,098 votes for; 316,141,999 votes against; 3,686,211 abstentions and 43,157,947 broker non-votes. |
5. | A stockholder proposal requesting a scientific report on global warming was not approved.* The proposal received 21,040,827 votes for; 267,430,570 votes against; 42,715,816 abstentions and 43,158,042 broker non-votes. |
6. | A stockholder proposal requesting election of directors by majority vote was not approved.* The proposal received 186,244,803 votes for; 141,502,826 votes against; 3,439,576 abstentions and 43,158,050 broker non-votes. On July 20, 2006, Occidental amended its By-Laws to provide that in an uncontested election, any nominee for director who receives a greater number of votes “against” his or her election than votes “for” such election must promptly tender his or her resignation and to provide procedures for consideration of such tenders. |
_________________________
* Occidental’s By-laws provide that, unless otherwise required by law, any question brought before the annual meeting shall be decided by the affirmative vote of a majority of the shares present in person or by proxy at the meeting for the purposes of determining a quorum.
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Item 6. Exhibits
3.(ii) | Bylaws of Occidental Petroleum Corporation, as amended through July 20, 2006. |
10.1 | Terms and Conditions of Target Performance-Based Restricted Share Unit Award Under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit 10.1 to Occidental's Current Report on Form 8-K dated July 19, 2006 (date of earliest event reported), File No. 1-9210). |
10.2 | Amendment to Occidental Petroleum Corporation 2005 Deferred Stock Program. |
10.3 | Amendment to Occidental Petroleum Corporation 2005 Deferred Compensation Program. |
10.4 | Terms and Conditions of Stock Appreciation Rights (SARs) under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan. |
10.5 | Terms and Conditions of Restricted Share Unit Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan. |
11 | Statement regarding the computation of earnings per share for the three and six months ended June 30, 2006 and 2005. |
12 | Statement regarding the computation of total enterprise ratios of earnings to fixed charges for the six months ended June 30, 2006 and 2005 and for each of the five years in the period ended December 31, 2005. |
31.1 | Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| | OCCIDENTAL PETROLEUM CORPORATION | |
DATE: August 7, 2006 | /s/ Jim A. Leonard | |
| | Jim A. Leonard, Vice President and Controller
(Principal Accounting and Duly Authorized Officer) | |
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EXHIBIT INDEX
EXHIBITS
3.(ii) | Bylaws of Occidental Petroleum Corporation, as amended through July 20, 2006. |
10.2 | Amendment to Occidental Petroleum Corporation 2005 Deferred Stock Program. |
10.3 | Amendment to Occidental Petroleum Corporation 2005 Deferred Compensation Program. |
10.4 | Terms and Conditions of Stock Appreciation Rights (SARs) under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan. |
10.5 | Terms and Conditions of Restricted Share Unit Award under Occidental Petroleum Corporation 2005 Long-Term Incentive Plan. |
11 | Statement regarding the computation of earnings per share for the three and six months ended June 30, 2006 and 2005. |
12 | Statement regarding the computation of total enterprise ratios of earnings to fixed charges for the six months ended June 30, 2006 and 2005 and for each of the five years in the period ended December 31, 2005. |
31.1 | Certification of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
31.2 | Certification of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. |
32.1 | Certifications of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
