Occidental Petroleum Corporatio (OXY) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - Jun. 30, 2015 - shares	Total
Document and Entity Information
Entity Registrant Name	OCCIDENTAL PETROLEUM CORP /DE/
Entity Central Index Key	797,468
Document Type	10-Q
Document Period End Date	Jun. 30, 2015
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	763,951,136
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2

CONSOLIDATED CONDENSED BALANCE

CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
CURRENT ASSETS
Cash and cash equivalents	$ 2,756	$ 3,789
Restricted cash	2,382	4,019
Trade receivables, net	3,973	4,206
Inventories	1,120	1,052
Other current assets	777	807
Total current assets	11,008	13,873
Investments
Investments in unconsolidated entities	1,330	1,171
Available for sale investment	432	394
Total investments	1,762	1,565
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization of $36,897 at June 30, 2015 and $34,785 at December 31, 2014	40,478	39,730
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET	1,121	1,091
TOTAL ASSETS	54,369	56,259
CURRENT LIABILITIES
Current maturities of long-term debt	1,450
Accounts payable	4,145	5,229
Accrued liabilities	2,230	2,601
Domestic and foreign income taxes		414
Total current liabilities	7,825	8,244
LONG-TERM DEBT, NET	6,880	6,838
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred domestic and foreign income taxes	3,153	3,015
Other	3,209	3,203
Total deferred credits and other liabilities	6,362	6,218
STOCKHOLDERS' EQUITY
Common stock, at par value (890,872,794 and 890,557,537 shares respectively)	178	178
Treasury stock 127,471,658 and 119,951,199 shares respectively)	(9,107)	(8,528)
Additional paid-in capital	7,651	7,599
Retained earnings	34,896	36,067
Accumulated other comprehensive loss	(316)	(357)
Total stockholders' equity	33,302	34,959
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 54,369	$ 56,259

CONSOLIDATED CONDENSED BALANCE3

CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
CONSOLIDATED CONDENSED BALANCE SHEETS
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	$ 36,897	$ 34,785
Common stock, outstanding shares	890,872,794	890,557,537
Treasury stock, shares	127,471,658	119,951,199

CONSOLIDATED CONDENSED STATEMEN

CONSOLIDATED CONDENSED STATEMENTS OF INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
REVENUES AND OTHER INCOME
Net sales	$ 3,469	$ 5,133	$ 6,558	$ 10,101
Interest, dividends and other income	26	47	57	77
Gain (loss) on sale of assets, net	19	525	(5)	525
TOTAL REVENUES AND OTHER INCOME	3,514	5,705	6,610	10,703
COSTS AND OTHER DEDUCTIONS
Cost of sales, excluding depreciation, depletion and amortization	1,480	1,691	3,037	3,334
Selling, general and administrative and other operating expenses	347	429	658	746
Depreciation, depletion and amortization	1,116	1,024	2,145	2,001
Asset impairments and related items		471	324	471
Taxes other than on income	107	144	214	295
Exploration expense	10	39	18	63
Interest and debt expense, net	8	20	38	42
TOTAL COSTS AND OTHER DEDUCTIONS	3,068	3,818	6,434	6,952
Income (loss) before income taxes and other items	446	1,887	176	3,751
Provision for domestic and foreign income taxes	(324)	(809)	(305)	(1,603)
Income from equity investments	58	83	94	150
Income (loss) from continuing operations	180	1,161	(35)	2,298
Discontinued operations, net	(4)	273	(7)	528
Net income (loss)	176	1,434	(42)	2,826
Less: Net income attributable to noncontrolling interest		(3)		(5)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	$ 176	$ 1,431	$ (42)	$ 2,821
BASIC EARNINGS PER COMMON SHARE (attributable to common stock)
Income (loss) from continuing operations (in dollars per share)	$ 0.23	$ 1.48	$ (0.04)	$ 2.91
Discontinued operations, net (in dollars per share)		0.35	(0.01)	0.67
BASIC EARNINGS PER COMMON SHARE (in dollars per share)	0.23	1.83	(0.05)	3.58
DILUTED EARNINGS PER COMMON SHARE (attributable to common stock)
Income (loss) from continuing operations (in dollars per share)	0.23	1.47	(0.04)	2.91
Discontinued operations, net (in dollars per share)		0.35	(0.01)	0.67
DILUTED EARNINGS PER COMMON SHARE (in dollars per share)	0.23	1.82	(0.05)	3.58
DIVIDENDS PER COMMON SHARE (in dollars per share)	$ 0.75	$ 0.72	$ 1.47	$ 1.44

CONSOLIDATED CONDENSED STATEME5

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Net income (loss) attributable to common stock	$ 176	$ 1,431	$ (42)	$ 2,821
Other comprehensive income (loss) items:
Foreign currency translation loss			(1)
Unrealized (loss) gain on available for sale investment	(112)		38
Unrealized loss on derivatives				(5)
Pension and postretirement gain	2	5	4	9
Reclassification to income of realized loss on derivatives				8
Other comprehensive income, net of tax	(110)	5	41	12
Comprehensive income (loss)	$ 66	$ 1,436	$ (1)	$ 2,833

CONSOLIDATED CONDENSED STATEME6

CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME
Unrealized losses on derivatives, tax				$ 3,000,000
Pension and postretirement gains, tax	$ (1,000,000)	$ (3,000,000)	$ (2,000,000)	(5,000,000)
Reclassification to income of realized losses on derivatives, tax	5,000,000
Other comprehensive income (loss) related to noncontrolling interests	$ 0	$ 0	$ 0	$ 0

CONSOLIDATED CONDENSED STATEME7

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)	$ (42)	$ 2,826
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Discontinued operations, net	7	(528)
Depreciation, depletion and amortization of assets	2,145	2,001
Deferred income tax provision (benefit)	139	(57)
Other noncash charges to income	145	143
Asset impairments and related items	236	471
Undistributed earnings from equity investments	3	33
Loss (gain) on sale of assets, net	5	(525)
Dry hole expenses	(954)	(48)
Changes in operating assets and liabilities, net	(307)
Operating cash flow from continuing operations	1,377	4,316
Operating cash flow from discontinued operations	(11)	1,248
Net cash provided by operating activities	1,366	5,564
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures	(3,065)	(3,924)
Change in capital accrual	(585)
Payments for purchases of assets and businesses	(43)	(307)
Sale of assets, net	58	1,371
Other, net	(254)	(186)
Investing cash flow from continuing operations	(3,889)	(3,046)
Investing cash flow from discontinued operations		(1,042)
Net cash used by investing activities	(3,889)	(4,088)
CASH FLOW FROM FINANCING ACTIVITIES
Change in restricted cash	1,637
Payment of long-term debt		(107)
Proceeds from long-term debt, net	1,478
Proceeds from issuance of common stock	23	16
Purchases of treasury stock	(536)	(1,576)
Cash dividends paid	(1,113)	(1,084)
Contributions from noncontrolling interest		272
Other, net	1	1
Net cash provided (used by) financing activities	1,490	(2,478)
Decrease in cash and cash equivalents	(1,033)	(1,002)
Cash and cash equivalents-beginning of period	3,789	3,393
Cash and cash equivalents-end of period	$ 2,756	$ 2,391

General

General	6 Months Ended
	Jun. 30, 2015
General
General	1. General In these unaudited consolidated condensed financial statements, “Occidental” means Occidental Petroleum Corporation, a Delaware corporation (OPC), or OPC and one or more entities in which it owns a controlling interest (subsidiaries). Occidental has made its disclosures in accordance with United States generally accepted accounting principles (GAAP) as they apply to interim reporting, and condensed or omitted, as permitted by the Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in consolidated financial statements and the notes. These unaudited consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of Occidental’s management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present Occidental’s consolidated financial position as of June 30, 2015, and the consolidated statements of operations, comprehensive income and cash flows for the three and six months ended June 30, 2015 and 2014, as applicable. The income and cash flows for the periods ended June 30, 2015 and 2014 are not necessarily indicative of the income or cash flows to be expected for the full year. As a result of the spin-off of California Resources Corporation (California Resources), the statements of operations and cash flows related to California Resources have been treated as discontinued operations for the three and six months ended June 30, 2014. The assets and liabilities of California Resources were removed from Occidental’s consolidated balance sheet as of November 30, 2014. See Note 2, Asset Acquisitions, Dispositions and Other, for additional information.

Asset Acquisitions, Disposition

Asset Acquisitions, Dispositions and Other	6 Months Ended
	Jun. 30, 2015
Asset Acquisitions, Dispositions and Other
Asset Acquisitions, Dispositions and Other	2. Asset Acquisitions, Dispositions and Other In June 2015, Occidental issued $1.5 billion of debt that was comprised of $750 million of 3.50-percent senior unsecured notes due 2025 and $750 million of 4.625-percent senior unsecured notes due 2045. Occidental received net proceeds of approximately $1.48 billion. Interest on the notes will be payable semi-annually in arrears in June and December of each year for both series of notes, beginning on December 15, 2015. On November 30, 2014, the spin-off of Occidental’s California oil and gas operations and related assets was completed through the distribution of 81.3 percent of the outstanding shares of common stock of California Resources to holders of Occidental common stock, creating an independent, publicly traded company. In connection with the spin-off, California Resources distributed to Occidental $4.95 billion in restricted cash and $1.15 billion in unrestricted cash. As indicated by a private letter ruling from the United States Internal Revenue Service (IRS), the $4.95 billion distribution must be used solely to pay dividends, repurchase common stock, repay debt, or a combination of the foregoing, within 18 months following the distribution. At June 30, 2015, the remaining balance of the restricted cash distribution was $2.4 billion and was presented as “Restricted cash” on the consolidated balance sheet. Occidental retained 71.5 million shares of California Resources. See Note 9, Fair Value Measurements, for additional information. Sales and other operating revenues and income from discontinued operations related to California Resources for the three and six months ended June 30, 2014 were as follows (in millions): Three months ended June 30 Six months ended June 30 Sales and other operating revenue from discontinued operations $ $ Income from discontinued operations before-tax $ $ Income tax expense Income from discontinued operations $ $

Accounting and Disclosure Chang

Accounting and Disclosure Changes	6 Months Ended
	Jun. 30, 2015
Accounting and Disclosure Changes
Accounting and Disclosure Changes	3. Accounting and Disclosure Changes In July 2015, the Financial Accounting Standards Board (FASB) voted to defer the effective date of the new revenue recognition standard to interim and annual periods beginning after December 15, 2017. Under the new rules, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods and services. The rules also require more detailed disclosures related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The rules are not expected to have a significant impact on Occidental’s financial statements upon adoption. In May 2015, the FASB issued rules modifying how entities measure certain investments at net asset value as well as how they are categorized within the fair value hierarchy. The new rules remove the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share. The update also removes the requirement for certain disclosures for all investments that are eligible to be measured at fair value using the net asset value per share practice, and instead requires it for only those investments the entity elects to measure as such. The rules become effective for fiscal years, and for interim periods, beginning after December 15, 2015. The rules will not have a significant impact on Occidental’s financial statements. In April 2015, the FASB issued rules simplifying the presentation of debt issuance costs. The new rules require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The rules become effective for fiscal years, and for interim periods, beginning after December 15, 2015. The rules will not have a significant impact on Occidental’s financial statements. In February 2015, the FASB issued rules modifying how an entity should evaluate certain legal entities for consolidation. The modifications change how limited partnerships and similar legal entities are evaluated, eliminate the presumption that a general partner should consolidate limited partnerships, change the consolidation analysis for reporting entities that are involved with variable interest entities, and change the scope exception for certain legal entities, among other things. The rules become effective for fiscal years, and for interim periods, beginning after December 15, 2015. The rules are not expected to have an impact on Occidental’s financial statements upon adoption. In January 2015, the FASB issued rules that eliminate from GAAP the concept of an extraordinary item. The presentation and disclosure guidance for items that are unusual in nature or occur infrequently will be retained and expanded to include items that are both unusual in nature and infrequently occurring. The rules do not impact Occidental’s financial statements upon adoption.

Supplemental Cash Flow Informat

Supplemental Cash Flow Information	6 Months Ended
	Jun. 30, 2015
Supplemental Cash Flow Information
Supplemental Cash Flow Information	4. Supplemental Cash Flow Information Occidental paid United States federal, state and foreign income taxes of $0.6 billion and $1.7 billion during the six months ended June 30, 2015 and 2014, respectively. Interest paid totaled $108 million and $110 million for the six months ended June 30, 2015 and 2014, respectively.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2015
Inventories
Inventories	5. Inventories A portion of inventories is valued under the LIFO method. The valuation of LIFO inventory for interim periods is based on Occidental’s estimates of year-end inventory levels and costs. Inventories as of June 30, 2015 and December 31, 2014 consisted of the following (in millions): 2015 2014 Raw materials $ $ Materials and supplies Finished goods Revaluation to LIFO Total $ $

Environmental Liabilities and E

Environmental Liabilities and Expenditures	6 Months Ended
	Jun. 30, 2015
Environmental Liabilities and Expenditures
Environmental Liabilities and Expenditures	6. Environmental Liabilities and Expenditures Occidental’s operations are subject to stringent federal, state, local and foreign laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar federal, state, local and foreign laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal of hazardous substances; or operation and maintenance of remedial systems. Government or private proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. As of June 30, 2015, Occidental participated in or monitored remedial activities or proceedings at 147 sites. The following table presents Occidental’s environmental remediation reserves as of June 30, 2015, the current portion which is included in accrued liabilities ($79 million) and the remainder in deferred credits and other liabilities — other ($237 million). The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency on the CERCLA National Priorities List (NPL sites) and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. Number of Sites Reserve Balance (in millions) NPL sites $ Third-party sites Occidental-operated sites Closed or non-operated Occidental sites Total $ As of June 30, 2015, Occidental’s environmental reserves exceeded $10 million each at 11 of the 147 sites described above, and 102 of the sites each had reserves of $1 million or less. Based on current estimates, Occidental expects to expend funds corresponding to approximately half of the current environmental reserves at the sites described above over the next three to four years and the balance at these sites over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be up to $395 million. The status of Occidental’s involvement with the sites and related significant assumptions has not changed materially since December 31, 2014. For additional information regarding environmental matters, refer to Note 7, Lawsuits, Claims, Commitments and Contingencies, for additional information.

Lawsuits, Claims, Commitments a

Lawsuits, Claims, Commitments and Contingencies	6 Months Ended
	Jun. 30, 2015
Lawsuits, Claims, Commitments and Contingencies
Lawsuits, Claims, Commitments and Contingencies	7. Lawsuits, Claims, Commitments and Contingencies OPC or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. OPC or certain of its subsidiaries also are involved 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, civil penalties and injunctive relief. Usually OPC or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction. Occidental has entered into a written settlement agreement with the State of New Jersey (the State) to resolve claims asserted by the State against Occidental arising from Occidental’s acquisition of Diamond Shamrock Chemicals Company (DSCC) and historic operations of DSCC’s Lister Avenue Plant. In December 2014, the settlement was approved by the court. Under the settlement agreement (State Settlement) Occidental agreed to pay the State $190 million and, under certain circumstances, perform or fund future work on behalf of the State along a portion of the Passaic River. Occidental made payments related to this settlement of $70 million, $60 million and $60 million in February, April and June 2015, respectively. When Occidental acquired the stock of DSCC in 1986, Maxus Energy Corporation, a subsidiary of YPF S.A. (Maxus), retained liability for the Lister Avenue Plant, which is part of the Diamond Alkali Superfund Site, as well as other sites. Maxus is also obligated to indemnify Occidental for the State of New Jersey settlement. Occidental is pursuing Maxus to recover the settlement costs. The State Settlement does not cover any potential Occidental share of costs associated with the Environmental Protection Agency’s proposed clean-up plan of the Passaic River announced in April 2014. Maxus is also responsible for federal clean-up or other costs associated with the Lister Avenue Plant and the Diamond Alkali Superfund Site. Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Occidental has disclosed its reserve balances for environmental matters. Reserve balances for other matters as of June 30, 2015 and December 31, 2014 were not material to Occidental’s consolidated balance sheets. Occidental also evaluates the amount of reasonably possible losses that it could incur as a result of the matters mentioned above. Occidental has disclosed its range of reasonably possible additional losses for sites where it is a participant in environmental remediation. Occidental believes that other reasonably possible losses that it could incur in excess of reserves accrued on the balance sheet would not be material to its consolidated financial position or results of operations. 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. Although taxable years through 2009 for United States federal income tax purposes have been audited by the IRS pursuant to its Compliance Assurance Program, subsequent taxable years are currently under review. Additionally, in December 2012, Occidental filed United States federal refund claims for tax years 2008 and 2009, which are subject to IRS review. Taxable years from 2000 through the current year remain subject to examination by foreign and state government tax authorities in certain jurisdictions. In certain of these jurisdictions, tax authorities are in various stages of auditing Occidental’s income taxes. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. OPC, its subsidiaries or both have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of June 30, 2015, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves.

Retirement and Postretirement B

Retirement and Postretirement Benefit Plans	6 Months Ended
	Jun. 30, 2015
Retirement and Postretirement Benefit Plans
Retirement and Postretirement Benefit Plans	8. Retirement and Post-retirement Benefit Plans The following tables set forth the components of the net periodic benefit costs for Occidental’s defined benefit pension and post-retirement benefit plans for the three and six months ended June 30, 2015 and 2014 (in millions): Three months ended June 30 2015 2014 Net Periodic Benefit Costs Pension Benefit Post- retirement Benefit Pension Benefit Post- retirement Benefit Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss Total $ $ $ $ Six months ended June 30 2015 2014 Net Periodic Benefit Costs Pension Benefit Post- retirement Benefit Pension Benefit Post- retirement Benefit Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss Total $ $ $ $ Occidental contributed approximately zero and $2 million to its defined benefit pension plans in the three-months ended June 30, 2015 and 2014, respectively. Occidental contributed approximately $5 million and $3 million in the six-months ended June 30, 2015 and 2014, respectively.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Fair Value Measurements	9. Fair Value Measurements Occidental has categorized its assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1 — using quoted prices in active markets for the assets or liabilities; Level 2 — using observable inputs other than quoted prices for the assets or liabilities; and Level 3 — using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. Fair Values — Recurring Occidental primarily applies the market approach for recurring fair value measurements, maximizes its use of observable inputs and minimizes its use of unobservable inputs. Occidental utilizes the mid-point between bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, Occidental makes assumptions in valuing its assets and liabilities, including assumptions about the risks inherent in the inputs to the valuation technique. For assets and liabilities carried at fair value, Occidental measures fair value using the following methods: Ø Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. Those derivatives are classified as Level 1. Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. Ø Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace, or are observable but have been adjusted based upon various assumptions and the fair value is designated as Level 3 within the valuation hierarchy. Ø Occidental values its available for sale investment in California Resources based on the closing share price of California Resources’ common stock as of the balance sheet date. This investment is classified as Level 1. At June 30, 2015, Occidental had approximately 71.5 million shares of common stock of California Resources, which are recorded as a $432 million available for sale investment. Occidental generally uses an income approach to measure fair value when observable inputs are unavailable. This approach utilizes management’s judgments regarding expectations of projected cash flows, and discounts those cash flows using a risk-adjusted discount rate. The following tables provide fair value measurement information for such assets and liabilities that are measured on a recurring basis as of June 30, 2015 and December 31, 2014 (in millions): Fair Value Measurements at June 30, 2015: Description Level 1 Level 2 Level 3 Netting and Collateral Total Fair Value Assets: Commodity derivatives $ $ $ — $ $ Available for sale investment $ $ — $ — $ — $ Liabilities: Commodity derivatives $ $ $ — $ $ Fair Value Measurements at December 31, 2014: Description Level 1 Level 2 Level 3 Netting and Collateral Total Fair Value Assets: Commodity derivatives $ $ $ — $ $ Available for sale investment $ $ — $ — $ — $ Liabilities: Commodity derivatives $ $ $ — $ $ Fair Values — Nonrecurring During the three months ended June 30, 2015 and 2014 and the six months ended June 30, 2014, Occidental did not have any assets or liabilities measured at fair value on a non-recurring basis. As a result of lower commodity prices during the first quarter 2015, Occidental recognized approximately $160 million in pre-tax impairment charges related to proved domestic oil and gas properties. Other Financial Instruments The carrying amounts of cash and cash equivalents and other on-balance-sheet financial instruments, other than long term fixed-rate debt, approximate fair value. The cost, if any, to terminate Occidental’s off-balance-sheet financial instruments is not significant. Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair value of Occidental’s debt as of June 30, 2015 and December 31, 2014 was $8.6 billion and $7.0 billion, respectively, and its carrying value net of unamortized discount as of June 30, 2015 and December 31, 2014 was $8.3 billion and $6.8 billion, respectively. The majority of Occidental’s debt is classified as Level 1, with $68 million classified as Level 2.

Derivatives

Derivatives	6 Months Ended
	Jun. 30, 2015
Derivatives
Derivatives	10. Derivatives Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental applies hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, any fair value gains or losses are recognized in earnings in the current period. Occidental uses a variety of derivative instruments, including cash-flow hedges and derivative instruments not designated as hedging instruments, to obtain average prices for the relevant production month and to improve realized prices for oil and gas. Occidental only occasionally hedges its oil and gas production, and, when it does, the volumes are usually insignificant. Cash-Flow Hedges Occidental’s marketing and trading operations, from time to time, store natural gas purchased from third parties at Occidental’s North American leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes through February 2016. As of June 30, 2015, Occidental had approximately 9 billion cubic feet of natural gas held in storage, and had cash-flow hedges for the forecast sale, to be settled by physical delivery, of approximately 3 billion cubic feet of stored natural gas. As of December 31, 2014, Occidental did not have any cash-flow hedges. Occidental’s after-tax gains and losses recognized in, and reclassified to income from, Accumulated Other Comprehensive Income (AOCI) for derivative instruments classified as cash-flow hedges for the three and six months ended June 30, 2015 and 2014, and the ending AOCI balances for each period, were not material. The gains and losses reclassified to income were recognized in net sales, and the amount of the ineffective portion of cash-flow hedges was immaterial for the three and six months ended June 30, 2015 and 2014. Derivatives Not Designated as Hedging Instruments The following table summarizes Occidental’s net volumes of outstanding commodity derivatives contracts not designated as hedging instruments, including both financial and physical derivative contracts as of June 30, 2015 and December 31, 2014: Net Outstanding Position Long / (Short) Commodity 2015 2014 Oil (million barrels) Natural gas (billion cubic feet) Carbon dioxide (billion cubic feet) The volumes in the table above exclude contracts tied to index prices, for which the fair value, if any, is minimal at any point in time. These excluded contracts do not expose Occidental to price risk because the contract prices fluctuate with index prices. Occidental fulfills short positions through its own production or by third-party purchase contracts. Subsequent to June 30, 2015, Occidental entered into purchase contracts for a substantial portion of the short positions outstanding at quarter end and has sufficient production capacity and the ability to enter into additional purchase contracts to satisfy the remaining positions. Approximately $45 million of net gains from derivatives not designated as hedging instruments and $72 million of net gains were recognized in net sales for the three months ended June 30, 2015 and 2014, respectively. Approximately $44 million of net losses from derivatives not designated as hedging instruments and $84 million of net gains were recognized in net sales or the six months ended June 30, 2015 and 2014, respectively. Fair Value of Derivatives The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of June 30, 2015 and December 31, 2014 (in millions): Asset Derivatives Liability Derivatives June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments (a) Commodity contracts Other current assets Accrued liabilities Long-term receivables and other assets, net Deferred credits and other liabilities Total gross fair value Less: counterparty netting and cash collateral (b,d) Total net fair value of derivatives $ $ Asset Derivatives Liability Derivatives December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments (a) Commodity contracts Other current assets Accrued liabilities Long-term receivables and other assets, net Deferred credits and other liabilities Total gross fair value Less: counterparty netting and cash collateral (c,d) Total net fair value of derivatives $ $ (a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets. (b) As of June 30, 2015, collateral received of $15 million has been netted against the derivative assets and collateral paid of $3 million has been netted against derivative liabilities. (c) As of December 31, 2014, no collateral was received against the derivative assets and collateral paid of $8 million has been netted against derivative liabilities. (d) Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $7 million and $44 million deposited by Occidental has not been reflected in these derivative fair value tables as of June 30, 2015 and December 31, 2014, respectively. This collateral is included in other current assets in the consolidated balance sheets as of June 30, 2015 and December 31, 2014, respectively. See Note 9, Fair Value Measurements, for fair value measurement disclosures on derivatives. Credit Risk A large portion of Occidental’s derivative transaction volume is executed through the over-the-counter market. Occidental is subject to counterparty credit risk to the extent the counterparty to the derivatives is unable to meet its settlement commitments. Occidental manages this credit risk by selecting counterparties that it believes to be financially strong, by spreading the credit risk among many such counterparties, by entering into master netting arrangements with the counterparties and by requiring collateral, as appropriate. Occidental actively monitors the creditworthiness of each counterparty and records valuation adjustments to reflect counterparty risk, if necessary. Occidental executes the rest of its derivative transactions in the exchange-traded market, which are subject to minimal credit risk as a significant portion of these transactions is settled on a daily margin basis with select clearinghouses and brokers. Certain of Occidental’s OTC derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each would need to post. As of June 30, 2015 and December 31, 2014, Occidental had a net liability of zero and $4 million, respectively, which is net of collateral posted of zero and $3 million, respectively. Occidental believes that if it had received a one-notch reduction in its credit ratings, it would not have resulted in a material change in its collateral-posting requirements as of June 30, 2015 and December 31, 2014.

Industry Segments

Industry Segments	6 Months Ended
	Jun. 30, 2015
Industry Segments
Industry Segments	11. Industry Segments Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, carbon dioxide (CO 2 ) and power. It also trades around its assets, including transportation and storage capacity, and trades oil, NGLs, gas and power. Additionally, the midstream and marketing segment invests in entities that conduct similar activities. Earnings of industry segments generally exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment and geographic assets and income from the segments’ equity investments. Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions. The following tables present Occidental’s industry segments (in millions): Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Three months ended June 30, 2015 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income (loss) attributable to common stock $ $ $ $ $ Three months ended June 30, 2014 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income attributable to noncontrolling interest — — — Net income (loss) attributable to common stock $ $ $ $ $ Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Six months ended June 30, 2015 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ (a) $ $ $ (a,b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income (loss) attributable to common stock $ $ $ $ $ Six months ended June 30, 2014 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income attributable to noncontrolling interest — — — Net income (loss) attributable to common stock $ $ $ $ $ (a) Includes pre-tax charges of $310 million for the impairment of certain domestic and international oil and gas assets and other items and $14 million of other corporate items. (b) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. (c) Includes all foreign and domestic income taxes from continuing operations.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Earnings Per Share	12. Earnings Per Share Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based awards are considered participating securities prior to vesting and, therefore, net income allocated to these participating securities has been deducted from earnings in computing basic and diluted EPS under the two-class method. Basic EPS was computed by dividing net income attributable to common stock, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units. The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards. The following table presents the calculation of basic and diluted EPS for the three and six months ended June 30, 2015 and 2014 (in millions, except per-share amounts): Three months ended June 30 Six months ended June 30 2015 2014 2015 2014 Basic EPS Income (loss) from continuing operations $ $ $ Less: Income from continuing operations attributable to noncontrolling interest — — Income (loss) from continuing operations attributable to common stock Discontinued operations, net Net income (loss) Less: Net income allocated to participating securities — — Net income (loss), net of participating securities Weighted average number of basic shares Basic EPS $ $ $ $ Diluted EPS Net income (loss), net of participating securities $ $ $ $ Weighted average number of basic shares Dilutive effect of potentially dilutive securities — Total diluted weighted average common shares Diluted EPS $ $ $ $

Asset Acquisitions, Dispositi20

Asset Acquisitions, Dispositions and Other (Tables)	6 Months Ended
	Jun. 30, 2015
Asset Acquisitions, Dispositions and Other
Schedule of sales and other operating revenues and income from discontinued operations (in millions)	Three months ended June 30 Six months ended June 30 Sales and other operating revenue from discontinued operations $ $ Income from discontinued operations before-tax $ $ Income tax expense Income from discontinued operations $ $

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2015
Inventories
Inventories (in millions)	2015 2014 Raw materials $ $ Materials and supplies Finished goods Revaluation to LIFO Total $ $

Environmental Liabilities and22

Environmental Liabilities and Expenditures (Tables)	6 Months Ended
	Jun. 30, 2015
Environmental Liabilities and Expenditures
Environmental loss contingencies by categories of sites	Number of Sites Reserve Balance (in millions) NPL sites $ Third-party sites Occidental-operated sites Closed or non-operated Occidental sites Total $

Retirement and Postretirement23

Retirement and Postretirement Benefit Plans (Tables)	6 Months Ended
	Jun. 30, 2015
Retirement and Postretirement Benefit Plans
Components of the net periodic benefit cost (in millions)	Three months ended June 30 2015 2014 Net Periodic Benefit Costs Pension Benefit Post- retirement Benefit Pension Benefit Post- retirement Benefit Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss Total $ $ $ $ Six months ended June 30 2015 2014 Net Periodic Benefit Costs Pension Benefit Post- retirement Benefit Pension Benefit Post- retirement Benefit Service cost $ $ $ $ Interest cost Expected return on plan assets — — Recognized actuarial loss Total $ $ $ $

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2015
Fair Value Measurements
Assets and liabilities measured at fair value on a recurring basis (in millions)	Fair Value Measurements at June 30, 2015: Description Level 1 Level 2 Level 3 Netting and Collateral Total Fair Value Assets: Commodity derivatives $ $ $ — $ $ Available for sale investment $ $ — $ — $ — $ Liabilities: Commodity derivatives $ $ $ — $ $ Fair Value Measurements at December 31, 2014: Description Level 1 Level 2 Level 3 Netting and Collateral Total Fair Value Assets: Commodity derivatives $ $ $ — $ $ Available for sale investment $ $ — $ — $ — $ Liabilities: Commodity derivatives $ $ $ — $ $

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2015
Derivatives - table
Gross and net fair values of outstanding derivatives (in millions)	Asset Derivatives Liability Derivatives June 30, 2015 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments (a) Commodity contracts Other current assets Accrued liabilities Long-term receivables and other assets, net Deferred credits and other liabilities Total gross fair value Less: counterparty netting and cash collateral (b,d) Total net fair value of derivatives $ $ Asset Derivatives Liability Derivatives December 31, 2014 Balance Sheet Location Fair Value Balance Sheet Location Fair Value Derivatives not designated as hedging instruments (a) Commodity contracts Other current assets Accrued liabilities Long-term receivables and other assets, net Deferred credits and other liabilities Total gross fair value Less: counterparty netting and cash collateral (c,d) Total net fair value of derivatives $ $ (a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets. (b) As of June 30, 2015, collateral received of $15 million has been netted against the derivative assets and collateral paid of $3 million has been netted against derivative liabilities. (c) As of December 31, 2014, no collateral was received against the derivative assets and collateral paid of $8 million has been netted against derivative liabilities. (d) Select clearinghouses and brokers require Occidental to post an initial margin deposit. Collateral, mainly for initial margin, of $7 million and $44 million deposited by Occidental has not been reflected in these derivative fair value tables as of June 30, 2015 and December 31, 2014, respectively. This collateral is included in other current assets in the consolidated balance sheets as of June 30, 2015 and December 31, 2014, respectively.
Not designated as hedging instruments | Commodity Contracts
Derivatives - table
Net volumes of outstanding commodity derivatives contracts	Net Outstanding Position Long / (Short) Commodity 2015 2014 Oil (million barrels) Natural gas (billion cubic feet) Carbon dioxide (billion cubic feet)

Industry Segments (Tables)

Industry Segments (Tables)	6 Months Ended
	Jun. 30, 2015
Industry Segments
Industry segment and corporate disclosures (in millions)	Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Three months ended June 30, 2015 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income (loss) attributable to common stock $ $ $ $ $ Three months ended June 30, 2014 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income attributable to noncontrolling interest — — — Net income (loss) attributable to common stock $ $ $ $ $ Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Six months ended June 30, 2015 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ (a) $ $ $ (a,b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income (loss) attributable to common stock $ $ $ $ $ Six months ended June 30, 2014 Net sales $ $ $ $ $ Pre-tax operating profit (loss) $ $ $ $ (b) $ Income taxes — — — (c) Discontinued operations, net — — — Net income attributable to noncontrolling interest — — — Net income (loss) attributable to common stock $ $ $ $ $ (a) Includes pre-tax charges of $310 million for the impairment of certain domestic and international oil and gas assets and other items and $14 million of other corporate items. (b) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. (c) Includes all foreign and domestic income taxes from continuing operations.

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Jun. 30, 2015
Earnings Per Share
Calculation of basic and diluted EPS	Three months ended June 30 Six months ended June 30 2015 2014 2015 2014 Basic EPS Income (loss) from continuing operations $ $ $ Less: Income from continuing operations attributable to noncontrolling interest — — Income (loss) from continuing operations attributable to common stock Discontinued operations, net Net income (loss) Less: Net income allocated to participating securities — — Net income (loss), net of participating securities Weighted average number of basic shares Basic EPS $ $ $ $ Diluted EPS Net income (loss), net of participating securities $ $ $ $ Weighted average number of basic shares Dilutive effect of potentially dilutive securities — Total diluted weighted average common shares Diluted EPS $ $ $ $

Asset Acquisitions, Dispositi28

Asset Acquisitions, Dispositions and Other (Details) - Jun. 30, 2015 - USD ($) $ in Millions	Total	Total
Debt instrument
Net proceeds from issuance of long-term debt		$ 1,478
Senior unsecured notes
Debt instrument
Debt instrument issued	$ 1,500	$ 1,500
Net proceeds from issuance of long-term debt	$ 1,480
3.50% senior unsecured notes due 2025
Debt instrument
Debt instrument interest rate stated percentage	3.50%	3.50%
Debt instrument issued	$ 750	$ 750
4.625% senior unsecured notes due 2045
Debt instrument
Debt instrument interest rate stated percentage	4.625%	4.625%
Debt instrument issued	$ 750	$ 750

Asset Acquisitions, Dispositi29

Asset Acquisitions, Dispositions and Other (Detail 1) - Spin-off California Resources Corp - USD ($) shares in Millions, $ in Millions	Nov. 30, 2014	Jun. 30, 2015
Acquisitions, dispositions and other transactions
Percentage of common stock distributed	81.30%
Distribution of restricted cash to pay obligations of spin-off agreements	$ 4,950
Distribution of cash to pay obligations of spin-off agreements	$ 1,150
Shares owned by Occidental		71.5
Period Following Spin-off within which cash will be distributed to satisfy spin off obligations	P18M
Remaining balance of cash distribution included in restricted cash on balance sheet		$ 2,400

Asset Acquisitions, Dispositi30

Asset Acquisitions, Dispositions and Other (Detail 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Sales and other operating revenues and income from discontinued operations related to California Resources Company
Income from discontinued operations	$ (4)	$ 273	$ (7)	$ 528
California Resources Corporation | Spin-off California Resources Corp
Sales and other operating revenues and income from discontinued operations related to California Resources Company
Sales and other operating revenue from discontinued operations		1,141		2,261
Income from discontinued operations before-tax		422		812
Income tax expense		(148)		(286)
Income from discontinued operations		$ 274		$ 526

Supplemental Cash Flow Inform31

Supplemental Cash Flow Information (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014
Supplemental Cash Flow Information
United States federal, state and foreign income taxes paid for continuing operations	$ 600	$ 1,700
Interest Paid	$ 108	$ 110

Inventories (Details)

Inventories (Details) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Inventories
Raw materials	$ 74	$ 71
Materials and supplies	638	585
Finished goods	497	485
Inventories, Gross	1,209	1,141
Revaluation to LIFO	(89)	(89)
Total	$ 1,120	$ 1,052

Environmental Liabilities and33

Environmental Liabilities and Expenditures (Details) - Jun. 30, 2015 $ in Millions	USD ($)site
Environmental Liabilities and Expenditures
Environmental remediation reserves, current, included in accrued liabilities	$ 79
Environmental remediation reserves, noncurrent, included in deferred credits and other liabilities - other	$ 237
Environmental remediation reserves
Number of Sites | site	147
Reserve Balance	$ 316
Environmental reserves, exceeding $ ten million, threshold value	$ 10
Environmental reserves, range between zero to $ one million site category, number of sites | site	102
Minimum period of expending second half of environmental reserves	10 years
Low end of range
Environmental remediation reserves
Environmental reserves, exceeding $ ten million, number of sites | site	11
Environmental reserves, range between zero to $ one million site category	$ 1
Period of expending first half of environmental reserves	3 years
High end of range
Environmental remediation reserves
Period of expending first half of environmental reserves	4 years
Environmental remediation additional loss range	$ 395
NPL sites
Environmental remediation reserves
Number of Sites | site	32
Reserve Balance	$ 22
Third-party sites
Environmental remediation reserves
Number of Sites | site	65
Reserve Balance	$ 92
Occidental-operated sites
Environmental remediation reserves
Number of Sites | site	18
Reserve Balance	$ 108
Closed or non-operated Occidental sites
Environmental remediation reserves
Number of Sites | site	32
Reserve Balance	$ 94

Lawsuits, Claims, Commitments34

Lawsuits, Claims, Commitments and Contingencies (Details) - Diamond Shamrock Chemicals Company - State of New Jersey Member - USD ($) $ in Millions	1 Months Ended
	Jun. 30, 2015	Apr. 30, 2015	Feb. 28, 2015	Dec. 31, 2014
Lawsuits, commitments and contingencies
Litigation Settlement, Amount				$ 190
Payments related to settlement	$ 60	$ 60	$ 70

Retirement and Postretirement35

Retirement and Postretirement Benefit Plans (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Defined benefit pension plans
Postretirement and Other Benefit Plans Disclosure
Employer contributions		$ 2	$ 5	$ 3
Pension Benefit
Net periodic benefit costs:
Service cost	$ 2	3	4	6
Interest cost	5	6	10	12
Expected return on plan assets	(7)	(9)	(14)	(17)
Recognized actuarial loss	2	2	4	3
Net periodic benefit cost	2	2	4	4
Postretirement Benefit
Net periodic benefit costs:
Service cost	7	6	14	12
Interest cost	10	12	20	24
Recognized actuarial loss	7	6	14	12
Net periodic benefit cost	$ 24	$ 24	$ 48	$ 48

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014	Dec. 31, 2014
Fair Value - Other Financial Instruments
Debt carrying value			$ 8,300
Carrying value of debt, net of unamortized discount			8,300		$ 6,800
Asset impairments and related items		$ 471	324	$ 471
Pre-tax impairment of oil and gas properties			310
Proved oil and gas assets - domestic
Fair Value - Other Financial Instruments
Pre-tax impairment of oil and gas properties	$ 160
Level 1
Assets:
Available for sale investment			$ 432		394
Fair Value - Other Financial Instruments
Investment recorded as available for sale asset, shares owned			71.5
Level 2
Fair Value - Other Financial Instruments
Debt estimated fair value			$ 68
Total Fair Value
Assets:
Available for sale investment			432		394
Fair Value - Other Financial Instruments
Debt estimated fair value			8,600		7,000
Recurring | Level 1
Assets:
Commodity derivatives			139		712
Liabilities:
Commodity derivatives			130		750
Recurring | Level 2
Assets:
Commodity derivatives			35		127
Liabilities:
Commodity derivatives			162		246
Recurring | Netting and Collateral
Assets:
Commodity derivatives			(139)		(742)
Liabilities:
Commodity derivatives			(127)		(756)
Recurring | Total Fair Value
Assets:
Commodity derivatives			35		97
Liabilities:
Commodity derivatives			$ 165		$ 240

Derivatives (Details)

Derivatives (Details) $ in Millions	6 Months Ended
	Jun. 30, 2014USD ($)
After-tax Derivative Activity recorded in AOCI
Unrealized (losses) gains recognized in AOCI	$ (5)
Reclassification to income of realized loss on derivatives	$ 8

Derivatives (Details 1)

Derivatives (Details 1) item in Millions, $ in Millions	6 Months Ended
	Jun. 30, 2015USD ($)item	Jun. 30, 2014USD ($)item
Net sales
Outstanding commodity derivatives contracts not designated as hedging instruments
Net gains from derivatives not designated as hedging instruments recognized in net sales (in dollars) | $		$ 84
Net losses from derivatives not designated as hedging instruments recognized in net sales (in dollars) | $	$ 44
CO2 (in cubic feet)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	612,000	621,000
Oil (in barrels)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	76	(9)
Natural Gas (in cubic feet)
Outstanding commodity derivatives contracts not designated as hedging instruments
Net Outstanding Position Long/(Short)	(33,000)	(32,000)

Derivatives (Details 2)

Derivatives (Details 2) - USD ($) $ in Millions	Jun. 30, 2015	Dec. 31, 2014
Gross and net fair values of outstanding derivatives (in millions)
Collateral received netted against derivative assets	$ 15	$ 0
Collateral paid netted against derivative liabilities	3	8
Collateral deposited with clearinghouses and brokers	7	44
Credit risk contingent features
Net derivative liabilities with credit-risk-contingent features	0	4
Amount of collateral posted	0	3
Not designated as hedging instruments
Gross and net fair values of outstanding derivatives (in millions)
Less: counterparty netting and cash collateral, asset	(139)	(742)
Less: counterparty netting and cash collateral, liability	(127)	(756)
Total net fair value, asset	35	97
Total net fair value, liability	165	240
Not designated as hedging instruments | Other current assets
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	166	828
Not designated as hedging instruments | Long-term receivables and other assets, net
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	8	11
Not designated as hedging instruments | Accrued liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	159	886
Not designated as hedging instruments | Deferred credits and other liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	133	110
Not designated as hedging instruments | Commodity Contracts
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	174	839
Commodity contract derivative liability, gross	$ 292	$ 996

Derivatives (Details 3)

Derivatives (Details 3) ft³ in Billions	Jun. 30, 2015ft³
Derivatives
Natural gas held in storage (in cubic feet)	9
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet)	3

Industry Segments (Details)

Industry Segments (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015USD ($)	Jun. 30, 2014USD ($)	Jun. 30, 2015USD ($)segment	Jun. 30, 2014USD ($)
Industry Segments
Number of operating segments | segment			3
Segment Information
Net sales	$ 3,469	$ 5,133	$ 6,558	$ 10,101
Pretax operating profit (loss)	504	1,970	270	3,901
Income taxes	(324)	(809)	(305)	(1,603)
Discontinued operations, net	(4)	273	(7)	528
Less: Net income attributable to noncontrolling interest		(3)		(5)
Net income (loss) attributable to common stock	176	1,431	(42)	2,821
Pre-tax impairment of oil and gas properties			310
Other charges			14
Oil and Gas
Segment Information
Net sales			4,351	7,305
Pretax operating profit (loss)			89	3,486
Net income (loss) attributable to common stock			89	3,486
Chemical
Segment Information
Net sales			2,030	2,462
Pretax operating profit (loss)			275	269
Net income (loss) attributable to common stock			275	269
Midstream and Marketing
Segment Information
Net sales			491	780
Pretax operating profit (loss)			72	375
Less: Net income attributable to noncontrolling interest				(5)
Net income (loss) attributable to common stock			72	370
Operating segments | Oil and Gas
Segment Information
Net sales	2,342	3,703
Pretax operating profit (loss)	355	1,767
Net income (loss) attributable to common stock	355	1,767
Operating segments | Chemical
Segment Information
Net sales	1,030	1,242
Pretax operating profit (loss)	136	133
Net income (loss) attributable to common stock	136	133
Operating segments | Midstream and Marketing
Segment Information
Net sales	294	440
Pretax operating profit (loss)	87	211
Less: Net income attributable to noncontrolling interest		(3)
Net income (loss) attributable to common stock	87	208
Corporate and Eliminations
Segment Information
Net sales	(197)	(252)	(314)	(446)
Pretax operating profit (loss)	(74)	(141)	(166)	(229)
Income taxes	(324)	(809)	(305)	(1,603)
Discontinued operations, net	(4)	273	(7)	528
Net income (loss) attributable to common stock	$ (402)	$ (677)	$ (478)	$ (1,304)

Earnings Per Share (Details)

Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2015	Jun. 30, 2014	Jun. 30, 2015	Jun. 30, 2014
Basic EPS
Income (loss) from continuing operations	$ 180	$ 1,161	$ (35)	$ 2,298
Less: Income from continuing operations attributable to noncontrolling interest		(3)		(5)
Income from continuing operations attributable to common stock	180	1,158	(35)	2,293
Discontinued operations, net	(4)	273	(7)	528
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK	176	1,431	(42)	2,821
Less: Net income allocated to participating securities		(3)		(4)
Net income attributable to common stock, net of participating securities	$ 176	$ 1,428	$ (42)	$ 2,817
Weighted average number of basic shares	766.4	782.6	768	786.9
Basic EPS (in dollars per share)	$ 0.23	$ 1.83	$ (0.05)	$ 3.58
Diluted EPS
Net income attributable to common stock, net of participating securities	$ 176	$ 1,428	$ (42)	$ 2,817
Weighted average number of basic shares	766.4	782.6	768	786.9
Dilutive effect of potentially dilutive securities (in shares)	0.2	0.3		0.3
Total diluted weighted average common shares	766.6	782.9	768	787.2
Diluted EPS (in dollars per share)	$ 0.23	$ 1.82	$ (0.05)	$ 3.58