Occidental Petroleum Corporatio (OXY) 8-K Occidental Petroleum Announces Second Quarter and First Six Months of 2010 Results

EXHIBIT 99.1

For Immediate Release: July 27, 2010

Occidental Petroleum Announces Second Quarter and First Six Months of 2010 Results

Ÿ	Q2 2010 net income $1.1 billion ($1.31 per diluted share)
Ÿ	Q2 2010 daily oil and gas sales average of 747,000 BOE
Ÿ	Quarterly year-over-year production volume growth of over 3 ½ percent

LOS ANGELES, July 27, 2010 -- Occidental Petroleum Corporation (NYSE:OXY) announced net income of $1.1 billion ($1.31 per diluted share) for the second quarter of 2010, compared with $682 million ($0.84 per diluted share) for the second quarter of 2009.

In announcing the results, Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, "The second quarter 2010 net income of $1.1 billion was a 56-percent increase over the same period of 2009. The second quarter 2010 production was 743,000 BOE per day, a 3.6-percent increase from the second quarter of 2009 despite losing 29,000 BOE per day from the effect of production sharing and similar contracts. We continue to generate significant cash flow with the first six months of 2010 results generating cash flow from operating activities of $4.3 billion. Free cash flow after capital spending and dividends was over $2 billion."

QUARTERLY RESULTS

Oil and Gas

Oil and gas segment earnings were $1.9 billion for the second quarter of 2010, compared with $1.1 billion for the same period in 2009. The increase in the second quarter of 2010 results was due to higher crude oil and natural gas prices and higher volumes.

For the second quarter of 2010, daily oil and gas sales volumes averaged 747,000 barrels of oil equivalent (BOE), compared with 719,000 BOE in the second quarter of 2009. Volumes increased in the Middle East/North Africa and California and were partially offset by decreases in Colombia. The Middle East/North Africa increase included new production from the Bahrain start-up and increased production from the Mukhaizna field in Oman. Underlying daily production volumes were 743,000 BOE in the second quarter of 2010 compared to 717,000 BOE in the second quarter of 2009, an increase of over three and one-half percent. Production was negatively impacted in

the Middle East/North Africa, Long Beach and Colombia due to higher oil prices affecting our production sharing and similar contracts by a total of 29,000 BOE per day.

Oxy's realized price for worldwide crude oil was $72.13 per barrel for the second quarter of 2010, compared with $52.97 per barrel for the second quarter of 2009. Domestic realized gas prices rose from $2.87 per MCF in the second quarter of 2009 to $4.19 per MCF for the second quarter of 2010.

Chemicals

Chemical segment earnings for the second quarter 2010 were $108 million, compared with $115 million for the same period in 2009. The second quarter of 2010 results continue to reflect the significant caustic soda price erosion and higher raw material prices experienced in the second half of 2009 offset by improved volumes across most product lines.

Midstream, Marketing and Other

Midstream segment earnings were $13 million for the second quarter of 2010, compared with $63 million for the second quarter of 2009. Earnings for the second quarter of 2010 reflect lower margins in the marketing and trading businesses, partially offset by higher margins in the gas processing business and pipelines businesses.

SIX-MONTH RESULTS

Net income for the first six months of 2010 was $2.1 billion ($2.61 per diluted share), compared with $1.1 billion ($1.29 per diluted share) for the same period in 2009. Year-to-date 2010 core results were $2.1 billion ($2.63 per diluted share), compared with $1.1 billion ($1.34 per diluted share).

Oil and Gas

Oil and gas segment earnings were $3.7 billion for the six months of 2010, compared with $1.6 billion for the same period of 2009. The $2.1 billion increase in the 2010 results reflected higher crude oil and natural gas prices and higher volumes.

Daily oil and gas sales volumes for the six months were 737,000 BOE per day for 2010, compared with 716,000 BOE per day for the 2009 period. Volumes increased in the Middle East/North Africa, resulting from the new production in Bahrain and higher production in the Mukhaizna field in Oman, and domestically in California. Volumes declined in Latin America, mainly in Colombia. Underlying daily production volumes were 743,000 BOE in the first six months of 2010, compared with 713,000 BOE for 2009, an increase of over four percent. Production was negatively impacted in the Middle East/North Africa, Long Beach and Colombia resulting from higher year-over-year average oil prices affecting our production sharing and similar contracts by 28,000 BOE per day.

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Oxy's realized price for worldwide crude oil was $72.01 per barrel for the six months of 2010, compared with $46.05 per barrel for the six months of 2009. Domestic realized gas prices increased from $3.20 per MCF in the six months of 2009 to $4.90 per MCF in the six months of 2010.

Chemicals

Chemical segment earnings were $138 million for the six months of 2010, compared with $284 million for the same period in 2009.  The 2010 six-month results reflect the significant margin erosion in caustic soda, which began in 2009 due to the economic downturn, particularly in the housing and construction sectors, combined with higher raw material costs primarily for ethylene.  Volumes and prices across most product lines are gradually recovering, resulting in the improvement in earnings from first quarter $30 million to second quarter of $108 million.

Midstream, Marketing and Other

Midstream segment earnings were $107 million for the six months of 2010, compared with $77 million for the same period in 2009.  The 2010 results reflect higher margins in the gas processing business and increased earnings in the pipeline and power generation businesses, partially offset by lower marketing and trading income.

About Oxy

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions.  Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization.  Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls.  Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.

Forward-Looking Statements

Statements in this release that contain words such as “will,” “expect” or “estimate,” or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; operational interruptions; changes in tax rates; exploration risks, such as drilling of unsuccessful wells; and commodity trading risks.  You should not place undue reliance

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on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.

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Contacts:	Richard S. Kline (media)
	richard_kline@oxy.com
	310-443-6249
	Chris Stavros (investors)
	chris_stavros@oxy.com
	212-603-8184

For further analysis of Occidental's quarterly performance, please visit the web site: www.oxy.com

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							Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
	Second Quarter						Six Months
($ millions, except per-share amounts)	2010			2009			2010			2009
SEGMENT NET SALES
Oil and Gas	$	3,676		$	2,726		$	7,322		$	4,863
Chemical		1,013			811			1,969			1,603
Midstream, Marketing and Other		236			250			605			478
Eliminations		(164	)		(100	)		(364	)		(184	)
Net Sales	$	4,761		$	3,687		$	9,532		$	6,760
SEGMENT EARNINGS
Oil and Gas (a)	$	1,853		$	1,083		$	3,672		$	1,628
Chemical		108			115			138			284
Midstream, Marketing and Other		13			63			107			77
		1,974			1,261			3,917			1,989
Unallocated Corporate Items
Interest expense, net		(22	)		(23	)		(58	)		(43	)
Income taxes		(800	)		(455	)		(1,529	)		(696	)
Other (b)		(83	)		(99	)		(190	)		(195	)
Income from Continuing Operations (a)		1,069			684			2,140			1,055
Discontinued operations, net		(6	)		(2	)		(13	)		(5	)
NET INCOME (a)	$	1,063		$	682		$	2,127		$	1,050
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.31		$	0.84		$	2.63		$	1.30
Discontinued operations, net		-			-			(0.02	)		(0.01	)
	$	1.31		$	0.84		$	2.61		$	1.29
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.31		$	0.84		$	2.63		$	1.30
Discontinued operations, net		-			-			(0.02	)		(0.01	)
	$	1.31		$	0.84		$	2.61		$	1.29
AVERAGE BASIC COMMON SHARES OUTSTANDING
BASIC		812.6			811.0			812.3			810.8
DILUTED		813.8			814.0			813.7			813.7
(a) Net Income - Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $12 million for the second quarter of 2010 and 2009 and $36 million and $21 million for the first six months of 2010 and 2009, respectively.  Oil and gas segment earnings are presented net of these non-controlling interest amounts.
(b) Unallocated Corporate Items - Other - The second quarter of 2009 includes a pre-tax charge of $8 million related to severance.  The first six months of 2009 includes additional pre-tax charges of $32 million for severance and  $15 million for railcar leases.

						Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
	Second Quarter					Six Months
($ millions)	2010		2009			2010			2009
CAPITAL EXPENDITURES	$	868	$	831		$	1,716		$	1,902
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	876	$	742		$	1,750		$	1,528
ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS
Income / (Expense)	Second Quarter					Six Months
($ millions)	2010		2009			2010			2009
Foreign exchange gains and (losses) *	$	4	$	(6	)	$	(1	)	$	31
* Amounts shown after tax.

					Attachment 3
SUMMARY OF OPERATING STATISTICS - SALES
	Second Quarter				Six Months
	2010		2009		2010		2009
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil and Liquids (MBBL)
California		92		90		93		93
Permian		159		163		159		165
Midcontinent Gas		18		14		17		13
Total		269		267		269		271
Natural Gas (MMCF)
California		293		232		294		224
Permian		129		124		127		124
Midcontinent Gas		259		265		257		273
Total		681		621		678		621
Latin America
Crude Oil  (MBBL)
Argentina		37		37		37		41
Colombia		27		42		30		41
Total		64		79		67		82
Natural Gas (MMCF)
Argentina		32		30		32		32
Bolivia		15		19		13		17
Total		47		49		45		49
Middle East / North Africa
Crude Oil and Liquids (MBBL)
Bahrain		3		-		3		-
Dolphin		23		29		23		26
Libya		25		14		14		10
Oman		58		49		57		48
Qatar		78		82		76		79
Yemen		32		32		33		37
Total		219		206		206		200
Natural Gas (MMCF)
Bahrain		161		-		163		-
Dolphin		235		282		232		257
Oman		48		50		50		52
Total		444		332		445		309
Barrels of Oil Equivalent (MBOE)
Total  Sales - MBOE		747		719		737		716

					Attachment 4
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Second Quarter				Six Months
	2010		2009		2010		2009
NET OIL, GAS AND LIQUIDS PRODUCTION
PER DAY
United States
Crude Oil and Liquids (MBBL)		269		267		269		271
Natural Gas (MMCF)		681		621		678		621
Latin America
Crude Oil (MBBL)
Argentina		37		38		37		38
Colombia		32		41		33		41
Total		69		79		70		79
Natural Gas (MMCF)		47		49		45		49
Middle East / North Africa
Crude Oil and Liquids (MBBL)
Bahrain		3		-		3		-
Dolphin		23		29		24		26
Libya		15		13		15		11
Oman		60		49		58		47
Qatar		78		78		76		79
Yemen		31		35		33		37
Total		210		204		209		200
Natural Gas (MMCF)		444		332		445		309
Barrels of Oil Equivalent (MBOE)
Total Worldwide Production - MBOE		743		717		743		713

						Attachment 5
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
Occidental's results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called "core results," which excludes those items. This non-GAAP measure is not meant to disassociate those items from management's performance, but rather is meant to provide useful information to investors interested in comparing Occidental's earnings performance between periods. Reported earnings are considered representative of management's performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.
	Second Quarter
($ millions, except per-share amounts)	2010			Diluted EPS		2009			Diluted EPS
TOTAL REPORTED EARNINGS	$	1,063		$	1.31	$	682		$	0.84
Oil and Gas
Segment Earnings	$	1,853				$	1,083
Add:
No significant items affecting earnings		-					-
Segment Core Results		1,853					1,083
Chemicals
Segment Earnings		108					115
Add:
No significant items affecting earnings		-					-
Segment Core Results		108					115
Midstream, Marketing and Other
Segment Earnings		13					63
Add:
No significant items affecting earnings		-					-
Segment Core Results		13					63
Total Segment Core Results		1,974					1,261
Corporate
Corporate Results --
Non Segment *		(911	)				(579	)
Add:
Severance accrual		-					8
Tax effect of pre-tax adjustments		-					(3	)
Discontinued operations, net **		6					2
Corporate Core Results - Non Segment		(905	)				(572	)
TOTAL CORE RESULTS	$	1,069		$	1.31	$	689		$	0.85
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

									Attachment 6
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
	Six Months
($ millions, except per-share amounts)	2010			Diluted EPS		2009				Diluted EPS
TOTAL REPORTED EARNINGS	$	2,127		$	2.61	$	1,050			$	1.29
Oil and Gas
Segment Earnings	$	3,672				$	1,628
Add:
Rig Terminations		-					8
Segment Core Results		3,672					1,636
Chemicals
Segment Earnings		138					284
Add:
No significant items affecting earnings		-					-
Segment Core Results		138					284
Midstream, Marketing and Other
Segment Earnings		107					77
Add:
No significant items affecting earnings		-					-
Segment Core Results		107					77
Total Segment Core Results		3,917					1,997
Corporate
Corporate Results --
Non Segment *		(1,790	)				(939	)
Add:
Severance accruals		-					40
Railcar leases		-					15
Tax effect of pre-tax adjustments		-					(22	)
Discontinued operations, net **		13					5
Corporate Core Results - Non Segment		(1,777	)				(901	)
TOTAL CORE RESULTS	$	2,140		$	2.63	$	1,096			$	1.34
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.