Occidental Petroleum Corporatio (OXY) 8-K Occidental Petroleum Announces 4th Quarter and 12 Months of 2012 Income

EXHIBIT 99.1

For Immediate Release: January 31, 2013

Occidental Petroleum Announces 4th Quarter and 12 Months of 2012 Income

● Q4 2012 record total company oil and gas production of 779,000 barrels of oil equivalent per day

● Q4 2012 domestic daily oil and gas production of 475,000 barrels of oil equivalent, a record for the ninth consecutive quarter

● Q4 2012 core earnings of $1.5 billion, or $1.83 per diluted share

LOS ANGELES, January 31, 2013 -- Occidental Petroleum Corporation (NYSE:OXY) announced core income of $1.5 billion ($1.83 per diluted share) for the fourth quarter of 2012, compared with $1.6 billion ($2.02 per diluted share) for the fourth quarter of 2011.  In the fourth quarter of 2012, we recorded after-tax charges of $1.1 billion or $1.41 per diluted share, almost all of which was related to the impairment of gas assets in the Midcontinent.  Net income for the fourth quarter of 2012 after this charge was $336 million ($0.42 per diluted share), compared with $1.6 billion ($2.01 per diluted share) for the same period of 2011.

Core income was $5.8 billion ($7.09 per diluted share) for the year 2012, compared with $6.8 billion ($8.39 per diluted share) for 2011.  Net income for the twelve months of 2012 was $4.6 billion ($5.67 per diluted share), compared with $6.8 billion ($8.32 per diluted share) for 2011.

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, "Our fourth quarter domestic production of 475,000 barrels of oil equivalent per day, of which 342,000 barrels per day was liquids, set a record for the ninth consecutive quarter.  Our total company production for all of 2012 was 766,000 barrels of oil equivalent per day, which was 5 percent higher than 2011.  Our domestic oil production grew by 11 percent for all of 2012 to 255,000 barrels per day from 230,000 barrels in 2011.

"Fourth quarter core income was $1.5 billion or $1.83 per diluted share.  These results were $0.13 higher than the third quarter of 2012 as a result of higher liquids volumes, higher realized NGL and domestic gas prices and lower operating expenses.  In the fourth quarter, our production costs were $1.04 a barrel lower than the third quarter, with improvements across most units.  The reductions resulted from efficiencies achieved across most cost categories including savings in surface operations, reductions in the use of outside contractors, curtailment of uneconomic down-hole maintenance and workover

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activity, as well as related overhead.  Our exit rate on a per barrel basis was well below the total year 2012 and below the fourth quarter 2011 levels.  We generated cash flow from continuing operations before working capital changes of $12.1 billion for the twelve months of 2012 and invested $10.2 billion in capital expenditures."

QUARTERLY RESULTS

Oil and Gas

Oil and gas core earnings were $2.3 billion for the fourth quarter of 2012, compared with $2.5 billion for the fourth quarter of 2011.  Lower 2012 earnings resulted from lower year-over-year prices across all products in the fourth quarter of 2012 and higher DD&A rates, partially offset by higher liquids volumes.  After including the fourth quarter 2012 charges, which will be discussed in more detail on the earnings call, segment earnings were $522 million.

For the fourth quarter of 2012, daily oil and gas production volumes averaged 779,000 barrels of oil equivalent (BOE), compared with 748,000 BOE in the fourth quarter of 2011.

The fourth quarter 2012 production increase resulted from higher volumes of 26,000 BOE per day from domestic operations and 5,000 BOE per day from international production.  The international increase included higher production in Iraq, Bahrain and Libya, partially offset by lower volumes from Dolphin, resulting from the full cost recovery of pre-startup capital, and in Yemen due to the Masila field contract expiration.

Daily sales volumes increased from 749,000 BOE in the fourth quarter of 2011 to 784,000 BOE in the fourth quarter of 2012.

Oxy’s realized price for worldwide crude oil was $96.19 per barrel for the fourth quarter of 2012, compared with $99.62 per barrel for the fourth quarter of 2011.  The fourth quarter of 2012 realized oil price represents 109 percent of the average WTI and 87 percent of the average Brent price. Worldwide NGL prices were $45.08 per barrel in the fourth quarter of 2012, compared with $55.25 per barrel in the fourth quarter of 2011.  Domestic gas prices decreased 14 percent from $3.59 per MCF in the fourth quarter of 2011 to $3.09 per MCF for the fourth quarter of 2012.

Fourth quarter 2012 realized prices were higher than third quarter 2012 prices for worldwide NGLs and domestic natural gas but were slightly lower for worldwide crude oil.  On a sequential quarterly basis, prices increased 11 percent for NGLs and 25 percent for domestic natural gas and decreased less than 1 percent for worldwide crude oil.

Chemical

Chemical segment earnings for the fourth quarter of 2012 were $180 million, compared with $144 million in the fourth quarter of 2011.  The increase was primarily the

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result of higher export volumes for caustic soda and vinyl chloride monomer and lower ethylene costs.

Midstream, Marketing and Other

Midstream segment earnings were $75 million for the fourth quarter of 2012, compared with $70 million for the fourth quarter of 2011.

TWELVE-MONTH RESULTS

Oil and Gas

Oil and gas core earnings were $8.8 billion for the twelve months of 2012, compared with $10.3 billion for the same period of 2011.  The decrease in 2012 reflected lower NGL and natural gas prices, higher operating costs, exploration expense and DD&A rates, partially offset by higher oil prices and domestic volumes.  Segment earnings, after including the fourth quarter charges, were $7.1 billion for 2012, compared with $10.2 billion for 2011.

Oil and gas production volumes for the twelve months were 766,000 BOE per day for 2012, compared with 733,000 BOE per day for the same period in 2011.  Year-over-year, Oxy's domestic production increased by 9 percent, while total company production increased by 5 percent.  Dolphin's full cost recovery of pre-startup capital, which reduced production, was the only operation where production sharing and similar contracts had an appreciable effect.

The twelve-month 2012 production increase resulted from 37,000 BOE per day in higher domestic volumes, partially offset by lower volumes in the Middle East/North Africa and Latin America.

Daily sales volumes were 764,000 BOE in the twelve months of 2012, compared with 731,000 BOE for the same period in 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 $99.87 per barrel for the twelve months of 2012, compared with $97.92 per barrel for the twelve months of 2011.  Worldwide NGL prices were $45.18 per barrel for the year 2012, compared with $55.53 per barrel for the year 2011.  Domestic gas prices declined 35 percent, from $4.06 per MCF in the twelve months of 2011 to $2.62 per MCF in the twelve months of 2012.

Chemical

Chemical segment earnings were $720 million for the twelve months of 2012, compared with $861 million for the same period in 2011.  The reduction was primarily a result of lower margins due to weaker economic conditions in Europe and Asia, and increased competitive activity from these regions.  The calcium chloride and potassium

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hydroxide businesses were also negatively impacted by an extremely mild winter and drought conditions in the United States.

Midstream, Marketing and Other

Midstream segment earnings were $439 million for the twelve months of 2012, compared with $448 million for the same period in 2011.

About Oxy

Occidental Petroleum Corporation (OXY) 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 one of the largest U.S. oil and gas companies, based on equity market capitalization. Oxy's wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products and vinyls.  Oxy 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

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; higher-than-expected costs; 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 or acquisitions; exploration risks such as drilling unsuccessful wells; any changes in general economic conditions domestically or internationally; the ability to attract trained engineers; 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, 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

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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.

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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

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Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
	Fourth Quarter						Twelve Months
($ millions, except per-share amounts)	2012			2011			2012			2011
SEGMENT NET SALES
Oil and Gas	$	4,874		$	4,784		$	18,906		$	18,419
Chemical		1,141			1,094			4,580			4,815
Midstream, Marketing and Other		355			338			1,399			1,447
Eliminations		(199	)		(182	)		(713	)		(742	)
Net Sales	$	6,171		$	6,034		$	24,172		$	23,939
SEGMENT EARNINGS
Oil and Gas  (a)	$	522		$	2,537		$	7,095		$	10,241
Chemical		180			144			720			861
Midstream, Marketing and Other		75			70			439			448
		777			2,751			8,254			11,550
Unallocated Corporate Items
Interest expense, net (b)		(30	)		(25	)		(117	)		(284	)
Income taxes (c)		(249	)		(949	)		(3,118	)		(4,201	)
Other		(134	)		(136	)		(384	)		(425	)
Income from Continuing Operations		364			1,641			4,635			6,640
Discontinued operations, net (d)		(28	)		(7	)		(37	)		131
NET INCOME	$	336		$	1,634		$	4,598		$	6,771
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.45		$	2.02		$	5.72		$	8.16
Discontinued operations, net		(0.03	)		(0.01	)		(0.05	)		0.16
	$	0.42		$	2.01		$	5.67		$	8.32
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	0.45		$	2.02		$	5.71		$	8.16
Discontinued operations, net		(0.03	)		(0.01	)		(0.04	)		0.16
	$	0.42		$	2.01		$	5.67		$	8.32
AVERAGE COMMON SHARES OUTSTANDING
BASIC		807.1			810.7			809.3			812.1
DILUTED		807.7			811.5			810.0			812.9
(a) Oil and Gas - The fourth quarter and twelve months of 2012 include pre-tax charges of $1.7 billion related to the impairment of domestic gas assets and related items.  The twelve 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 twelve 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 twelve months of 2011 include a pre-tax charge of  $163 million related to the premium on debt extinguishment.
(c) Unallocated Corporate Items - Taxes - The twelve months of 2011 include a net $21 million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The twelve 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
	Fourth Quarter				Twelve Months
($ millions)	2012		2011		2012		2011
CAPITAL EXPENDITURES	$	2,510	$	2,549	$	10,226	$	7,518
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	1,191	$	938	$	4,511	$	3,591

Attachment 3
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.
	Fourth Quarter
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	336		$	0.42	$	1,634		$	2.01
Oil and Gas
Segment Earnings	$	522				$	2,537
Add:
Asset impairments and related items		1,731					-
Segment Core Results		2,253					2,537
Chemicals
Segment Earnings		180					144
Add:
No significant items affecting earnings		-					-
Segment Core Results		180					144
Midstream, Marketing and Other
Segment Earnings		75					70
Add:
No significant items affecting earnings		-					-
Segment Core Results		75					70
Total Segment Core Results		2,508					2,751
Corporate
Corporate Results --
Non Segment *		(441	)				(1,117	)
Add:
Litigation reserves		20					-
Tax effect of pre-tax adjustments		(636	)				-
Discontinued operations, net **		28					7
Corporate Core Results - Non Segment		(1,029	)				(1,110	)
TOTAL CORE RESULTS	$	1,479		$	1.83	$	1,641		$	2.02
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

Attachment 4
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
	Twelve Months
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	4,598		$	5.67	$	6,771		$	8.32
Oil and Gas
Segment Earnings	$	7,095				$	10,241
Add:
Asset impairments and related items		1,731					-
Libya exploration write-off		-					35
Gain on sale of Colombia pipeline interest		-					(22	)
Foreign tax		-					29
Segment Core Results		8,826					10,283
Chemicals
Segment Earnings		720					861
Add:
No significant items affecting earnings		-					-
Segment Core Results		720					861
Midstream, Marketing and Other
Segment Earnings		439					448
Add:
No significant items affecting earnings		-					-
Segment Core Results		439					448
Total Segment Core Results		9,985					11,592
Corporate
Corporate Results --
Non Segment *		(3,656	)				(4,779	)
Add:
Litigation reserves		20					-
Premium on debt extinguishments		-					163
State income tax charge		-					33
Tax effect of pre-tax adjustments		(636	)				(50	)
Discontinued operations, net **		37					(131	)
Corporate Core Results - Non Segment		(4,235	)				(4,764	)
TOTAL CORE RESULTS	$	5,750		$	7.09	$	6,828		$	8.39
*  Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.

Attachment 5
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Fourth Quarter				Twelve Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil (MBBL)
California		92		84		88		80
Permian		146		137		142		134
Midcontinent and Other		27		19		25		16
Total		265		240		255		230
NGL (MBBL)
California		21		15		17		15
Permian		40		37		39		38
Midcontinent and Other		16		18		17		16
Total		77		70		73		69
Natural Gas (MMCF)
California		242		276		256		260
Permian		162		167		155		157
Midcontinent and Other		396		390		410		365
Total		800		833		821		782
Latin America
Crude Oil  (MBBL) - Colombia		30		28		29		29
Natural Gas (MMCF) - Bolivia		12		14		13		15
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		5		4		4
Dolphin		7		9		8		9
Oman		74		67		67		67
Qatar		71		76		71		73
Other		36		33		36		38
Total		192		190		186		191
NGL (MBBL)
Dolphin		7		9		8		10
Other		-		-		1		-
Total		7		9		9		10
Natural Gas (MMCF)
Bahrain		242		180		232		173
Dolphin		138		181		163		199
Oman		56		58		57		54
Total		436		419		452		426
Barrels of Oil Equivalent (MBOE)		779		748		766		733

Attachment 6
SUMMARY OF OPERATING STATISTICS - SALES
	Fourth Quarter				Twelve Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil (MBBL)		265		240		255		230
NGL (MBBL)		77		70		73		69
Natural Gas (MMCF)		800		833		819		782
Latin America
Crude Oil  (MBBL) - Colombia		30		32		28		29
Natural Gas (MMCF) - Bolivia		12		14		13		15
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		5		4		4
Dolphin		7		9		8		9
Oman		70		66		66		69
Qatar		75		75		71		73
Other		39		31		36		34
Total		195		186		185		189
NGL (MBBL)
Dolphin		7		10		8		10
Other		2		-		1		-
Total		9		10		9		10
Natural Gas (MMCF)		436		419		452		426
Barrels of Oil Equivalent (MBOE)		784		749		764		731