Occidental Petroleum (OXY) 8-K Occidental Petroleum Announces Second Quarter of 2012 Income

EXHIBIT 99.1

For Immediate Release: July 26, 2012

Occidental Petroleum Announces Second Quarter of 2012 Income

● Q2 2012 net income of $1.3 billion ($1.64 per diluted share)

● Q2 2012 total daily oil and gas production of 766,000 barrels of oil equivalent, the second consecutive quarter of record production

● Q2 2012 domestic daily oil and gas production of 462,000 barrels of oil equivalent, a record for the seventh consecutive quarter.

LOS ANGELES, July 26, 2012 -- Occidental Petroleum Corporation (NYSE:OXY) announced net income of $1.3 billion ($1.64 per diluted share) for the second quarter of 2012, compared with the second quarter of 2011 net income of $1.8 billion ($2.23 per diluted share).

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, "Our second quarter 2012 total Company production of 766,000 barrels of oil equivalent per day was the second consecutive quarter of record production.  Our domestic production was 9 percent higher than the second quarter of 2011 and total production was 7 percent higher.  Our domestic production of 462,000 barrels of oil equivalent per day was a record for the seventh consecutive quarter.  We increased our daily domestic production by 7,000 barrels from the first quarter of 2012 and by 38,000 barrels from the second quarter of 2011.

"Lower product prices impacted our second quarter results, resulting in diluted EPS of $1.64 per share.  We generated cash flow from operations of $6.0 billion for the first six months of 2012 and invested $5.1 billion in capital expenditures."

Oil and Gas

Oil and gas segment earnings were $2.0 billion for the second quarter of 2012, compared with $2.6 billion for the second quarter of 2011.  Lower oil and gas prices, higher operating costs and higher DD&A rates in the second quarter of 2012 were partially offset by higher volumes.

For the second quarter of 2012, daily oil and gas production volumes averaged 766,000 barrels of oil equivalent (BOE), compared with 715,000 BOE in the second quarter of 2011.

The second quarter 2012 production increase resulted from 38,000 BOE per day higher domestic volumes and a 13,000 BOE per day increase in the Middle East/North Africa.

1 of 4

Daily sales volumes increased from 705,000 BOE in the second quarter of 2011 to 759,000 BOE in the second quarter of 2012.

Oxy’s realized price for worldwide crude oil was $99.34 per barrel for the second quarter of 2012, compared with $103.12 per barrel for the second quarter of 2011. The second quarter of 2012 realized oil price represents 106 percent of the average WTI and 91 percent of the average Brent price for the quarter. Worldwide NGL prices were $42.06 per barrel in the second quarter of 2012, compared with $57.67 per barrel in the second quarter of 2011. Domestic gas prices decreased 51 percent from $4.27 per MCF in the second quarter of 2011 to $2.09 per MCF for the second quarter of 2012.

Second quarter 2012 realized prices were also lower than first quarter 2012 prices for all our products.  On a sequential quarterly basis, price decreases were 8 percent for worldwide crude oil, 20 percent for worldwide NGLs and 26 percent for domestic natural gas.

Chemicals

Chemical segment earnings for the second quarter of 2012 were $194 million, compared with $253 million in the second quarter of 2011.  The year-over-year decrease was the result of lower domestic and export caustic volumes, lower vinyl chloride monomer (VCM) export demand, and lower polyvinyl chloride and VCM export prices, partially offset by lower natural gas and ethylene costs.

Midstream, Marketing and Other

Midstream segment earnings were $77 million for the second quarter of 2012, compared with $187 million for the second quarter of 2011. The results predominantly reflect lower margins in the marketing and trading businesses and the gas processing businesses, partially offset by higher income in the pipeline businesses.

SIX-MONTH RESULTS

Year-to-date 2012 core income was $2.9 billion ($3.56 per diluted share), compared with $3.4 billion ($4.19 per diluted share) for the same period in 2011.  Net income for the first six months of 2012 was $2.9 billion ($3.55 per diluted share), compared with $3.4 billion ($4.13 per diluted share) for the same period in 2011.

Oil and Gas

Oil and gas segment earnings were $4.5 billion for the six months of 2012, compared with $5.1 billion for the same period of 2011.  The $600 million decrease in the 2012 results reflected lower NGL and natural gas prices, higher operating costs and higher DD&A rates, partially offset by higher oil prices and increased volumes.

Oil and gas production volumes for the six months were 760,000 BOE per day for 2012, compared with 723,000 BOE per day for the 2011 period.  Year-over-year, our domestic production increased by 11 percent, while total production increased by 5 percent.  Higher year-over-year average oil prices and other factors affecting our production-sharing

2 of 4

and similar contracts lowered our Middle East/North Africa and Long Beach production by 7,000 BOE per day.

The six-month 2012 daily production volume increase resulted from 44,000 BOE higher domestic volumes, partially offset by lower volumes of 2,000 BOE in the Middle East/North Africa and 5,000 BOE in Latin America.

Daily sales volumes were 752,000 BOE in the first six months of 2012, compared with 717,000 BOE for 2011.

Oxy's realized prices improved for crude oil but declined for natural gas and NGLs on a year-over-year basis.  Worldwide crude oil prices were $103.63 per barrel for the six months of 2012, compared with $97.38 per barrel for the six months of 2011.  Worldwide NGL prices were $47.52 per barrel for the six months of 2012, compared with $55.38 per barrel in the six months of 2011.  Domestic gas prices declined 42 percent, from $4.24 per MCF in the six months of 2011 to $2.46 per MCF in the six months of 2012.

Chemicals

Chemical segment earnings were $378 million for the six months of 2012, compared with $472 million for the same period in 2011.  The 2012 six-month reduction was primarily a result of lower export volumes and prices due to the weakening economic conditions in Europe and Asia, partially offset by lower energy costs.

Midstream, Marketing and Other

Midstream segment earnings were $208 million for the six months of 2012, compared with $301 million for the same period in 2011.  The 2012 results reflect lower results in the marketing and trading business, the gas processing business and the power generation business, partially offset by improved results in the pipeline businesses.

Forward-Looking Statements

Portions of this press release 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: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; general domestic politicaland regulatory approvalconditions; international political conditions; not successfully completing, or any material delay of, any development of new fields, expansion projects, capital expenditures, efficiency-improvement projects, acquisitions or dispositions; potential failure to achieve expected production from existing and future oil and gas development projects; exploration risks such as drilling unsuccessful wells; any general economic recession or slowdown domestically or internationally; 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; potential disruption or interruption of Occidental’s production or manufacturing or damage to facilities due to accidents, chemical releases,

3 of 4

labor unrest, weather, natural disasters, political events or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as "estimate", "project", "predict", "will", "would", "should", "could", "may", "might", "anticipate", "plan", "intend", "believe", "expect", "aim", "goal", "target", "objective", "likely" or similar expressions that convey the uncertainty of future events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental’s results of operations and financial position appear in Part 1, Item 1A "Risk Factors" of the 2011 Form 10-K.

-0-

Contacts:

Melissa E. Schoeb (media)

melissa_schoeb@oxy.com

310-443-6504

or

Chris Stavros (investors)

chris_stavros@oxy.com

212-603-8184

For further analysis of Occidental's quarterly performance, please visit the

website: www.oxy.com

4 of 4

Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
	Second Quarter						Six Months
($ millions, except per-share amounts)	2012			2011			2012			2011
SEGMENT NET SALES
Oil and Gas	$	4,495		$	4,591		$	9,397		$	8,958
Chemical		1,172			1,325			2,320			2,490
Midstream, Marketing and Other		262			441			655			853
Eliminations		(161	)		(184	)		(336	)		(402	)
Net Sales	$	5,768		$	6,173		$	12,036		$	11,899
SEGMENT EARNINGS
Oil and Gas  (a)	$	2,043		$	2,624		$	4,547		$	5,092
Chemical		194			253			378			472
Midstream, Marketing and Other		77			187			208			301
		2,314			3,064			5,133			5,865
Unallocated Corporate Items
Interest expense, net (b)		(25	)		(22	)		(53	)		(236	)
Income taxes (c)		(875	)		(1,111	)		(2,014	)		(2,165	)
Other		(82	)		(112	)		(174	)		(240	)
Income from Continuing Operations		1,332			1,819			2,892			3,224
Discontinued operations, net (d)		(4	)		(2	)		(5	)		142
NET INCOME	$	1,328		$	1,817		$	2,887		$	3,366
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.64		$	2.23		$	3.56		$	3.96
Discontinued operations, net		-			-			(0.01	)		0.18
	$	1.64		$	2.23		$	3.55		$	4.14
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.64		$	2.23		$	3.56		$	3.96
Discontinued operations, net		-			-			(0.01	)		0.17
	$	1.64		$	2.23		$	3.55		$	4.13
AVERAGE COMMON SHARES OUTSTANDING
BASIC		810.3			812.5			810.4			812.5
DILUTED		811.0			813.3			811.2			813.3
(a) Oil and Gas - The six months of 2011 include pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to Colombia net worth tax.   Also, included in the six months of 2011 results is a pre-tax gain for sale of an interest in a Colombia pipeline of $22 million.
(b) Unallocated Corporate Items - Interest Expense, net - The six months of 2011 include a pre-tax charge of $163 million related to the premium on debt extinguishment.
(c) Unallocated Corporate Items - Taxes - The six months of 2011 include a net $21 million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The six months of 2011 include a $144 million after-tax gain from the sale of the Argentine operations.

Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
	Second Quarter				Six Months
($ millions)	2012		2011		2012		2011
CAPITAL EXPENDITURES	$	2,713	$	1,633	$	5,125	$	2,958
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	1,087	$	839	$	2,172	$	1,729

Attachment 3
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Second Quarter				Six Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil (MBBL)
California		88		78		87		77
Permian		138		132		139		132
Midcontinent and Other		23		16		20		15
Total		249		226		246		224
NGL (MBBL)
California		15		15		15		15
Permian		39		40		39		38
Midcontinent and Other		19		16		19		12
Total		73		71		73		65
Natural Gas (MMCF)
California		269		252		268		247
Permian		151		143		153		154
Midcontinent and Other		420		366		416		347
Total		840		761		837		748
Latin America
Crude Oil  (MBBL) - Colombia		31		30		27		31
Natural Gas (MMCF) - Bolivia		14		16		14		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		3		4		3
Dolphin		9		10		9		10
Oman		62		68		63		67
Qatar		74		68		73		72
Other		32		28		37		43
Total		181		177		186		195
NGL (MBBL)
Dolphin		9		11		9		10
Natural Gas (MMCF)
Bahrain		230		172		224		172
Dolphin		194		203		183		199
Oman		57		49		57		50
Total		481		424		464		421
Barrels of Oil Equivalent (MBOE)		766		715		760		723

Attachment 4
SUMMARY OF OPERATING STATISTICS - SALES
	Second Quarter				Six Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil (MBBL)		249		226		246		224
NGL (MBBL)		73		71		73		65
Natural Gas (MMCF)		835		761		835		748
						��
Latin America
Crude Oil  (MBBL) - Colombia		31		30		27		31
Natural Gas (MMCF) - Bolivia		14		16		14		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		3		4		3
Dolphin		8		10		8		10
Oman		60		66		63		69
Qatar		73		65		71		71
Other		30		23		32		36
Total		175		167		178		189
NGL (MBBL)
Dolphin		9		11		9		10
Natural Gas (MMCF)		481		424		464		421
Barrels of Oil Equivalent (MBOE)		759		705		752		717

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)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	1,328		$	1.64	$	1,817		$	2.23
Oil and Gas
Segment Earnings	$	2,043				$	2,624
Add:
No significant items affecting earnings		-					-
Segment Core Results		2,043					2,624
Chemicals
Segment Earnings		194					253
Add:
No significant items affecting earnings		-					-
Segment Core Results		194					253
Midstream, Marketing and Other
Segment Earnings		77					187
Add:
No significant items affecting earnings		-					-
Segment Core Results		77					187
Total Segment Core Results		2,314					3,064
Corporate
Corporate Results --
Non Segment *		(986	)				(1,247	)
Add:
Discontinued operations, net **		4					2
Corporate Core Results - Non Segment		(982	)				(1,245	)
TOTAL CORE RESULTS	$	1,332		$	1.64	$	1,819		$	2.23
*  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)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	2,887		$	3.55	$	3,366		$	4.13
Oil and Gas
Segment Earnings	$	4,547				$	5,092
Add:
Libya exploration write-off		-					35
Gain on sale of Colombia pipeline interest		-					(22	)
Foreign tax		-					29
Segment Core Results		4,547					5,134
Chemicals
Segment Earnings		378					472
Add:
No significant items affecting earnings		-					-
Segment Core Results		378					472
Midstream, Marketing and Other
Segment Earnings		208					301
Add:
No significant items affecting earnings		-					-
Segment Core Results		208					301
Total Segment Core Results		5,133					5,907
Corporate
Corporate Results --
Non Segment *		(2,246	)				(2,499	)
Add:
Premium on debt extinguishments		-					163
State income tax charge		-					33
Tax effect of pre-tax adjustments		-					(50	)
Discontinued operations, net **		5					(142	)
Corporate Core Results - Non Segment		(2,241	)				(2,495	)
TOTAL CORE RESULTS	$	2,892		$	3.56	$	3,412		$	4.19
*  Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.