Occidental Petroleum (OXY) 8-K Occidental Petroleum Announces 3rd Quarter and Nine Months of 2013 Net Income

EXHIBIT 99.1

For Immediate Release: October 29, 2013

Occidental Petroleum Announces 3rd Quarter and Nine Months of 2013 Net Income

● Q3 2013 core income of $1.6 billion, or $1.97 per diluted share

● Q3 2013 domestic oil and gas production of 476,000 barrels of oil equivalent per day, an increase of 8,000 barrels per day in liquids on a sequential quarter over quarter basis

● Q3 2013 total company oil and gas production of 767,000 barrels of oil equivalent per day

 

LOS ANGELES, October 29, 2013 -- Occidental Petroleum Corporation (NYSE:OXY) announced core income for the third quarter of 2013 of $1.6 billion ($1.97 per diluted share), compared with $1.4 billion ($1.70 per diluted share) for the third quarter of 2012. Net income was $1.6 billion ($1.96 per diluted share) for the third quarter of 2013, compared with $1.4 billion ($1.69 per diluted share) for the third quarter of 2012.

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, "Domestic production was 476,000 barrels of oil equivalent per day (BOE), an increase of 7,000 BOE from the third quarter of 2012 and 6,000 BOE higher than the second quarter of 2013. Our domestic liquids production increased by 8,000 barrels per day on a sequential quarter over quarter basis. On a year-to-date basis, our domestic liquids production increased by 18,000 barrels per day, or nearly 6 percent.

"We continue to see positive results from our focused drilling program and improved domestic operational efficiencies. Year-to-date, we have achieved a 22-percent reduction in our drilling costs relative to 2012. Domestic oil and gas operating expenses were $14.33 per BOE for the nine months of 2013, an 18-percent improvement from total year 2012 rates. Our focus on capital and operating efficiencies has helped us generate $9.8 billion of cash flow from operations during the first nine months of 2013, resulting in a current cash balance of $3.8 billion compared to the year-end level of $1.6 billion."

QUARTERLY RESULTS

Oil and Gas

Oil and gas segment earnings were $2.4 billion for the third quarter of 2013, compared with $2.0 billion for the third quarter of 2012. The current quarter results reflect higher domestic oil and gas realized prices, lower operating costs and higher domestic liquid volumes, partially offset by higher DD&A rates and lower Middle East/North Africa crude oil volumes.

Operating costs continued to drop significantly in 2013, compared with 2012. Domestic operating costs for the nine months of 2013 were $14.33 per barrel, compared to $17.43 for the

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full year of 2012. For the entire company, operating costs for the nine months were $13.64 per barrel, compared to $14.99 for the full year of 2012.

For the third quarter of 2013, daily oil and gas production volumes averaged 767,000 BOE, compared with 766,000 BOE in the third quarter of 2012. Increased domestic production of 7,000 BOE per day was offset by lower Middle East/North Africa production resulting from lower cost recovery barrels. Daily sales volumes were 765,000 BOE for both the third quarter of 2013 and the third quarter of 2012. Sales volumes differed from production volumes due to the timing of liftings in Oxy’s international operations.

Oxy’s realized price for worldwide crude oil increased almost 8 percent to $103.95 per barrel for the third quarter of 2013, compared with $96.62 per barrel for the third quarter of 2012. Domestic crude oil prices increased by over 13 percent in the third quarter of 2013 to $104.30 per barrel, compared to $91.97 per barrel in the third quarter of 2012. Middle East/North Africa crude oil prices and worldwide NGL prices were virtually flat on a year-over-year basis for the third quarter of 2013. Domestic gas prices increased by 32 percent in the third quarter of 2013 to $3.27 per MCF, compared with $2.48 in the third quarter of 2012.

On a sequential quarterly basis, worldwide realized crude oil prices increased 6 percent and worldwide realized NGL prices increased approximately 5 percent. Also on a sequential quarterly basis, domestic crude oil prices increased by about 10 percent, domestic gas prices decreased by over 14 percent and Middle East/North Africa oil prices increased slightly.

Chemical

Chemical earnings for the third quarter of 2013 were $181 million, compared with $162 million in the third quarter of 2012. The improvement in the third quarter 2013 results was primarily due to higher margins in polyvinyl chloride and vinyl chloride monomer.

Midstream, Marketing and Other

Midstream segment earnings were $212 million for the third quarter of 2013, compared with $156 million for the third quarter of 2012. The increase in earnings reflected improved marketing and trading performance and better results in the pipeline, gas processing and power generation businesses.

NINE-MONTH RESULTS

Net income for the nine months of 2013 was $4.3 billion ($5.28 per diluted share), compared with $4.3 billion ($5.25 per diluted share) for the same period in 2012. Year-to-date 2013 core income was $4.2 billion ($5.23 per diluted share), compared with $4.3 billion ($5.26 per diluted share) for the same period in 2012.

Oil and Gas

Oil and gas segment earnings were $6.4 billion for the nine months of 2013, compared with $6.6 billion for the same period of 2012.  Higher domestic oil and gas prices, domestic liquids volumes and lower operating costs were more than offset by lower Middle East/North

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Africa oil prices and volumes, lower domestic NGL prices and higher total company DD&A rates.

Oil and gas production volumes for the nine months were 767,000 BOE per day for 2013, compared with 762,000 BOE per day for the 2012 period. Year-over-year, Oxy’s domestic production increased by 13,000 BOE per day. International production was 8,000 BOE per day lower, mainly due to lower cost recovery barrels in the Dolphin and Oman operations.  Daily sales volumes were 758,000 BOE in the nine months of 2013, compared with 757,000 BOE for 2012. Sales volumes were lower than production volumes mainly due to the timing of liftings in the Middle East/North Africa.

Oxy's worldwide realized prices declined for crude oil and NGLs but increased for both domestic crude oil and natural gas on a year-over-year basis. Worldwide realized crude oil prices were $100.04 per barrel for the nine months of 2013, compared with $101.20 per barrel for the nine months of 2012. Worldwide NGL prices were $39.87 per barrel for the nine months of 2013, a reduction of about 12 percent from the $45.21 per barrel for the nine months of 2012. Domestic crude oil prices increased from $95.83 per barrel in the nine months of 2012 to $97.07 per barrel in the nine months of 2013. Domestic gas prices increasedover37 percent from $2.47 per MCF in the nine months of 2012 to $3.39 per MCF in the nine months of 2013.

Chemical

Chemical core earnings were $484 million for the nine months of 2013, compared with $540 million for the same period in 2012. The lower 2013 earnings primarily resulted from higher energy and ethylene costs more than offsetting higher volumes and prices in chlor-alkali and vinyls.

Midstream, Marketing and Other

Midstream segment earnings were $475 million for the nine months of 2013, compared with $364 million for the same period in 2012. The 2013 results reflected improved marketing and trading performance and better results in the power generation and gas processing businesses.

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

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business prospects. Actual results may differ from anticipated results sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks 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 prospective nature of 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 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. Material risks that may affect Occidental’s results of operations and financial position appear in Part 1, Item 1A "Risk Factors" of the 2012 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.

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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
	Third Quarter						Nine Months
($ millions, except per-share amounts)	2013			2012			2013			2012
SEGMENT NET SALES
Oil and Gas	$	5,018		$	4,635		$	14,179		$	14,032
Chemical		1,200			1,119			3,562			3,439
Midstream, Marketing and Other		442			389			1,164			1,044
Eliminations		(211	)		(178	)		(622	)		(514	)
Net Sales	$	6,449		$	5,965		$	18,283		$	18,001
SEGMENT EARNINGS
Oil and Gas	$	2,363		$	2,026		$	6,383		$	6,573
Chemical (a)		181			162			615			540
Midstream, Marketing and Other		212			156			475			364
		2,756			2,344			7,473			7,477
Unallocated Corporate Items
Interest expense, net		(28	)		(34	)		(87	)		(87	)
Income taxes		(1,037	)		(855	)		(2,782	)		(2,869	)
Other (b)		(103	)		(76	)		(330	)		(250	)
Income from Continuing Operations		1,588			1,379			4,274			4,271
Discontinued operations, net		(5	)		(4	)		(14	)		(9	)
NET INCOME	$	1,583		$	1,375		$	4,260		$	4,262
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.97		$	1.70		$	5.30		$	5.26
Discontinued operations, net		(0.01	)		(0.01	)		(0.02	)		(0.01	)
	$	1.96		$	1.69		$	5.28		$	5.25
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.97		$	1.70		$	5.30		$	5.26
Discontinued operations, net		(0.01	)		(0.01	)		(0.02	)		(0.01	)
	$	1.96		$	1.69		$	5.28		$	5.25
AVERAGE COMMON SHARES OUTSTANDING
BASIC		805.1			809.7			804.8			810.1
DILUTED		805.7			810.4			805.4			810.8
(a) Chemical - Nine months of 2013 includes a $131 million pre-tax gain for the sale of an investment in Carbocloro,
a Brazilian chemical facility.
(b) Unallocated Corporate Items - Other - Nine months of 2013 includes a $55 million pre-tax charge for the
estimated cost related to the employment and post-employment benefits for the Company's former Executive
Chairman and termination of certain other employees and consulting arrangements.

Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
	Third Quarter				Nine Months
($ millions)	2013		2012		2013		2012
CAPITAL EXPENDITURES	$	2,271	$	2,591	$	6,551	$	7,716
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	1,334	$	1,148	$	3,896	$	3,320

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 reported in accordance with generally accepted accounting principles.
	Third Quarter
($ millions, except per-share amounts)	2013			Diluted EPS		2012			Diluted EPS
TOTAL REPORTED EARNINGS	$	1,583		$	1.96	$	1,375		$	1.69
Oil and Gas
Segment Earnings	$	2,363				$	2,026
Add:
No significant items affecting earnings		-					-
Segment Core Results		2,363					2,026
Chemicals
Segment Earnings		181					162
Add:
No significant items affecting earnings		-					-
Segment Core Results		181					162
Midstream, Marketing and Other
Segment Earnings		212					156
Add:
No significant items affecting earnings		-					-
Segment Core Results		212					156
Total Segment Core Results		2,756					2,344
Corporate
Corporate Results --
Non Segment (a)		(1,173	)				(969	)
Add:
Discontinued operations, net (b)		5					4
Corporate Core Results - Non Segment		(1,168	)				(965	)
TOTAL CORE RESULTS	$	1,588		$	1.97	$	1,379		$	1.70
(a) Interest expense, income taxes, G&A expense and other.
(b) Amounts shown after tax.

Attachment 4
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
	Nine Months
($ millions, except per-share amounts)	2013			Diluted EPS		2012			Diluted EPS
TOTAL REPORTED EARNINGS	$	4,260		$	5.28	$	4,262		$	5.25
Oil and Gas
Segment Earnings	$	6,383				$	6,573
Add:
No significant items affecting earnings		-					-
Segment Core Results		6,383					6,573
Chemicals
Segment Earnings		615					540
Add:
Carbocloro sale gain		(131	)				-
Segment Core Results		484					540
Midstream, Marketing and Other
Segment Earnings		475					364
Add:
No significant items affecting earnings		-					-
Segment Core Results		475					364
Total Segment Core Results		7,342					7,477
Corporate
Corporate Results --
Non Segment (a)		(3,213	)				(3,215	)
Add:
Charge for former executives and
consultants (b)		55					-
Tax effect of pre-tax adjustments		25					-
Discontinued operations, net (c)		14					9
Corporate Core Results - Non Segment		(3,119	)				(3,206	)
TOTAL CORE RESULTS	$	4,223		$	5.23	$	4,271		$	5.26
(a) Interest expense, income taxes, G&A expense and other.
(b) Reflects pre-tax charge for the estimated cost related to the employment and post-employment benefits for the
Company's former Executive Chairman and termination of certain other employees and consulting arrangements.
(c) Amounts shown after tax.

Attachment 5
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Third Quarter		Nine Months
	2013	2012	2013	2012
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Oil (MBBL)
California	89	88	88	87
Permian	146	144	146	140
Midcontinent and Other	32	28	30	24
Total	267	260	264	251
NGLs (MBBL)
California	21	18	21	16
Permian	41	40	40	39
Midcontinent and Other	17	16	17	18
Total	79	74	78	73
Natural Gas (MMCF)
California	260	247	261	261
Permian	148	151	161	153
Midcontinent and Other	373	414	377	414
Total	781	812	799	828
Latin America
Oil  (MBBL) - Colombia	30	30	29	28
Natural Gas (MMCF) - Bolivia	12	12	13	13
Middle East / North Africa
Oil (MBBL)
Dolphin	7	7	7	8
Oman	69	69	67	65
Qatar	69	69	68	71
Other	35	38	40	41
Total	180	183	182	185
NGLs (MBBL)
Dolphin	7	7	7	9
Other	-	1	-	-
Total	7	8	7	9
Natural Gas (MMCF)
Dolphin	145	147	141	171
Oman	53	57	55	57
Other	233	237	236	229
Total	431	441	432	457
Barrels of Oil Equivalent (MBOE)	767	766	767	762

Attachment 6
SUMMARY OF OPERATING STATISTICS - SALES
	Third Quarter		Nine Months
	2013	2012	2013	2012
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Oil (MBBL)	267	259	264	251
NGLs (MBBL)	79	74	78	73
Natural Gas (MMCF)	781	807	800	825
Latin America
Oil  (MBBL) - Colombia	30	30	29	28
Natural Gas (MMCF) - Bolivia	12	12	13	13
Middle East / North Africa
Oil (MBBL)
Dolphin	7	7	6	8
Oman	72	67	69	64
Qatar	70	68	67	70
Other	29	42	30	38
Total	178	184	172	180
NGLs (MBBL)
Dolphin	7	8	7	9
Natural Gas (MMCF)	431	441	432	457
Barrels of Oil Equivalent (MBOE)	765	765	758	757