Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2020 |
Document Transition Report | false |
Entity File Number | 1-9210 |
Entity Registrant Name | OCCIDENTAL PETROLEUM CORPORATION |
Entity Central Index Key | 0000797468 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4035997 |
Entity Address, Address Line One | 5 Greenway Plaza, Suite 110 |
Entity Address, City or Town | Houston, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77046 |
City Area Code | 713 |
Local Phone Number | 215-7000 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 931,209,495 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common Stock, $0.20 par value |
Trading Symbol | OXY |
Security Exchange Name | NYSE |
Warrants to Purchase Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Warrants to Purchase Common Stock, $0.20 par value |
Trading Symbol | OXY WS |
Security Exchange Name | NYSE |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,896 | $ 3,032 |
Restricted cash and restricted cash equivalents | 51 | 485 |
Trade receivables, net | 2,083 | 6,373 |
Inventories | 1,660 | 1,581 |
Other current assets | 1,445 | 1,432 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 3,559 | 3,870 |
Total current assets | 10,694 | 16,773 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 3,125 | 6,389 |
PROPERTY, PLANT AND EQUIPMENT | 120,459 | 124,267 |
Accumulated depreciation, depletion and amortization | (52,038) | (42,037) |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization | 68,421 | 82,230 |
OPERATING LEASE ASSETS | 1,196 | 1,411 |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 998 | 2,527 |
Assets, Total | 84,434 | 109,330 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 2,558 | 51 |
Current operating lease liabilities | 459 | 579 |
Accounts payable | 2,682 | 7,050 |
Accrued liabilities | 3,470 | 5,447 |
Liabilities of assets held for sale | 1,331 | 1,718 |
Total current liabilities | 10,500 | 14,845 |
LONG-TERM DEBT, NET | ||
Long-term debt, net | 35,899 | 38,537 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred income taxes, net | 7,508 | 9,717 |
Asset retirement obligations | 4,135 | 4,411 |
Pension and postretirement obligations | 1,728 | 1,823 |
Environmental remediation liabilities | 975 | 1,035 |
Operating lease liabilities | 786 | 872 |
Other | 3,043 | 3,858 |
Total deferred credits and other liabilities | 18,175 | 21,716 |
STOCKHOLDERS' EQUITY | ||
Preferred stock at par value, 100,000 shares at September 30, 2020 and December 31, 2019 | 9,762 | 9,762 |
Common stock at par value, 1,079,959,455 shares at September 30, 2020 and 1,044,434,893 shares at December 31, 2019 | 216 | 209 |
Treasury stock, 148,573,859 shares at September 30, 2020 and 150,323,151 shares at December 31, 2019 | (10,657) | (10,653) |
Treasury stock, 148,573,859 shares at September 30, 2020 and 150,323,151 shares at December 31, 2019 | 16,505 | 14,955 |
Additional paid-in capital | 4,317 | 20,180 |
Accumulated other comprehensive loss | (283) | (221) |
Total stockholders' equity | 19,860 | 34,232 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | 84,434 | 109,330 |
Oil and gas segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 103,954 | 107,801 |
Chemical segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 7,254 | 7,172 |
Midstream and marketing segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 8,211 | 8,176 |
Corporate | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | $ 1,040 | $ 1,118 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, outstanding (in shares) | 100,000 | 100,000 |
Common stock, outstanding (in shares) | 1,079,959,455 | 1,044,434,893 |
Treasury stock (in shares) | 148,573,859 | 150,323,151 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
REVENUES AND OTHER INCOME | ||||
Net sales | $ 4,108 | $ 5,859 | $ 13,649 | $ 14,283 |
Interest, dividends and other income | 21 | 56 | 88 | 175 |
(Losses) gains on sale of assets, net | (846) | 128 | (824) | 150 |
Total | 3,283 | 6,043 | 12,913 | 14,608 |
COSTS AND OTHER DEDUCTIONS | ||||
Oil and gas operating expense | 656 | 974 | 2,356 | 2,336 |
Transportation and gathering expense | 343 | 221 | 1,275 | 285 |
Chemical and midstream cost of sales | 618 | 741 | 1,807 | 2,046 |
Purchased commodities | 333 | 441 | 940 | 1,237 |
Selling, general and administrative expenses | 166 | 245 | 655 | 548 |
Other operating and non-operating expense | 231 | 362 | 542 | 860 |
Taxes other than on income | 180 | 244 | 473 | 478 |
Depreciation, depletion and amortization | 1,915 | 1,767 | 6,343 | 3,771 |
Asset impairments and other charges | 2,723 | 325 | 10,996 | 325 |
Anadarko acquisition-related costs | 5 | 924 | 302 | 974 |
Exploration expense | 29 | 63 | 99 | 134 |
Interest and debt expense, net | 353 | 381 | 1,015 | 632 |
Total | 7,552 | 6,688 | 26,803 | 13,626 |
Income (loss) before income taxes and other items | (4,269) | (645) | (13,890) | 982 |
OTHER ITEMS | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | 88 | (33) | (573) | (33) |
Income from equity investments | 123 | 104 | 183 | 274 |
Total | 211 | 71 | (390) | 241 |
Income (loss) from continuing operations before income taxes | (4,058) | (574) | (14,280) | 1,223 |
Income tax benefit (expense) | 403 | (163) | 1,896 | (694) |
Income (loss) from continuing operations | (3,655) | (737) | (12,384) | 529 |
Income (loss) from discontinued operations, net of tax | 80 | (15) | (1,335) | (15) |
NET INCOME (LOSS) | (3,575) | (752) | (13,719) | 514 |
Less: Net income attributable to noncontrolling interest | 0 | (42) | 0 | (42) |
Less: Preferred stock dividends | (203) | (118) | (644) | (118) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (3,778) | $ (912) | $ (14,363) | $ 354 |
Income (loss) from continuing operations—basic (in usd per share) | $ (4.16) | $ (1.06) | $ (14.26) | $ 0.47 |
Loss from discontinued operations - basic (in usd per share) | 0.09 | (0.02) | (1.46) | (0.02) |
Net income (loss) attributable to common stockholders—basic (in usd per share) | (4.07) | (1.08) | (15.72) | 0.45 |
Income (loss) from continuing operations—diluted (in usd per share) | (4.16) | (1.06) | (14.26) | 0.47 |
Loss from discontinued operations - diluted (in usd per share) | 0.09 | (0.02) | (1.46) | (0.02) |
Net income (loss) attributable to common stockholders—diluted (in usd per share) | $ (4.07) | $ (1.08) | $ (15.72) | $ 0.45 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | $ (3,575) | $ (752) | $ (13,719) | $ 514 | |
Other comprehensive income (loss) items: | |||||
Foreign currency translation losses | 0 | 0 | (1) | 0 | |
Losses on derivatives | [1] | (1) | (114) | (3) | (130) |
Pension and postretirement (losses) gains | [2] | 28 | (34) | (63) | (30) |
Reclassification of losses on derivatives | [3] | 2 | 0 | 5 | 0 |
Other comprehensive income (loss), net of tax | 29 | (148) | (62) | (160) | |
Comprehensive income (loss) | (3,546) | (900) | (13,781) | 354 | |
Comprehensive income (loss) attributable to noncontrolling interest | 0 | (42) | 0 | (42) | |
Comprehensive income (loss) attributable to preferred and common stockholders | $ (3,546) | $ (942) | $ (13,781) | $ 312 | |
[1] | Net of tax of zero and $32 million for the three months ended September 30, 2020 and 2019, and $1 million and $36 million for the nine months ended September 30, 2020 and 2019, respectively. | ||||
[2] | Net of tax of $(8) million and $10 million for the three months ended September 30, 2020 and 2019, respectively, and $18 million and $8 million for the nine months ended September 30, 2020 and 2019, respectively. | ||||
[3] | Net of tax of zero for each of the three months ended September 30, 2020 and 2019, respectively, and $(1) million and zero for the nine months ended September 30, 2020 and 2019, respectively. |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized losses on derivatives, tax | $ 0 | $ 32 | $ 1 | $ 36 |
Pension and postretirement gains, tax | (8) | 10 | 18 | 8 |
Reclassification to income of realized (gains) losses on derivatives, tax | $ 0 | $ 0 | $ (1) | $ 0 |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income (loss) | $ (13,719) | $ 514 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Discontinued operations, net | 1,335 | 15 |
Depreciation, depletion and amortization of assets | 6,343 | 3,771 |
Deferred income tax benefit | (2,117) | (1,050) |
Asset impairments and other items | 10,915 | 325 |
Losses (gains) on sales of assets, net | 824 | (150) |
Other noncash charges to income | 134 | 568 |
Changes in operating assets and liabilities | (1,240) | 1,480 |
Operating cash flow from continuing operations | 2,475 | 5,473 |
Operating cash flow from discontinued operations, net of taxes | 76 | (107) |
Net cash provided by operating activities | 2,551 | 5,366 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | (1,921) | (4,187) |
Change in capital accrual | (725) | (128) |
Purchase of businesses and assets, net | (102) | (27,926) |
Proceeds from sale of assets, net | 193 | 4,809 |
Equity investments and other, net | 188 | (140) |
Investing cash flow from continuing operations | (2,367) | (27,572) |
Investing cash flow from discontinued operations, net of taxes | (31) | (154) |
Net cash used by investing activities | (2,398) | (27,726) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net of issuance costs | 4,956 | 21,557 |
Payments of long-term debt | (4,615) | (4,949) |
Proceeds from short-term borrowings and revolvers - WES | 0 | 1,240 |
Payment of revolvers - WES | 0 | (1,000) |
Proceeds from issuance of common and preferred stock | 126 | 10,010 |
Purchases of treasury stock | (4) | (237) |
Cash dividends paid on common and preferred stock | (1,634) | (1,766) |
Distributions paid to noncontrolling interest | 0 | (127) |
Financing portion of net cash paid for derivative instruments | (377) | |
Financing portion of net cash paid for derivative instruments | 11 | |
Other financing, net | (99) | (46) |
Financing cash flow from continuing operations | (1,647) | 24,693 |
Financing cash flow from discontinued operations, net of taxes | (6) | (1) |
Net cash (used) provided by financing activities | (1,653) | 24,692 |
(Decrease) increase in cash, cash equivalents, restricted cash and restricted cash equivalents | (1,500) | 2,332 |
Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period | 3,574 | 3,033 |
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period | 2,074 | 5,365 |
NON-CASH INVESTING ACTIVITIES | ||
Exchange equity investment in WES (see Note 1) | 260 | 0 |
NON-CASH FINANCING ACTIVITIES | ||
Settlement of long-term debt - WES (see Note 8) | $ (260) | $ 0 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2018 | $ 21,330,000 | $ 0 | $ 179,000 | $ (10,473,000) | $ 8,046,000 | $ 23,750,000 | $ (172,000) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 514,000 | 472,000 | 42,000 | |||||
Other comprehensive income (loss), net of tax | (160,000) | (160,000) | ||||||
Dividends on common stock | (1,877,000) | (1,877,000) | ||||||
Dividends on preferred stock | (118,000) | (118,000) | ||||||
Issuance of common stock and other, net | 6,851,000 | 30,000 | 6,821,000 | |||||
Issuance of preferred stock, net | 9,762,000 | 9,762,000 | ||||||
Purchases of treasury stock | (180,000) | (180,000) | ||||||
Fair value of noncontrolling interest acquired | 4,875,000 | 4,875,000 | ||||||
Noncontrolling interest contributions, net | 8,000 | 8,000 | ||||||
Ending balance at Sep. 30, 2019 | 41,005,000 | 9,762,000 | 209,000 | (10,653,000) | 14,867,000 | 22,227,000 | (332,000) | 4,925,000 |
Beginning balance at Jun. 30, 2019 | 21,347,000 | 0 | 179,000 | (10,653,000) | 8,157,000 | 23,848,000 | (184,000) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (752,000) | (794,000) | 42,000 | |||||
Other comprehensive income (loss), net of tax | (148,000) | (148,000) | ||||||
Dividends on common stock | (709,000) | (709,000) | ||||||
Dividends on preferred stock | (118,000) | (118,000) | ||||||
Issuance of common stock and other, net | 6,740,000 | 30,000 | 6,710,000 | |||||
Issuance of preferred stock, net | 9,762,000 | 9,762,000 | ||||||
Fair value of noncontrolling interest acquired | 4,875,000 | 4,875,000 | ||||||
Noncontrolling interest contributions, net | 8,000 | 8,000 | ||||||
Ending balance at Sep. 30, 2019 | 41,005,000 | 9,762,000 | 209,000 | (10,653,000) | 14,867,000 | 22,227,000 | (332,000) | 4,925,000 |
Beginning balance at Dec. 31, 2019 | 34,232,000 | 9,762,000 | 209,000 | (10,653,000) | 14,955,000 | 20,180,000 | (221,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (13,719,000) | (13,719,000) | ||||||
Other comprehensive income (loss), net of tax | (62,000) | (62,000) | ||||||
Dividends on common stock | (737,000) | (737,000) | ||||||
Dividends on preferred stock | (200,000) | 6,000 | 438,000 | (644,000) | ||||
Issuance of common stock and other, net | 243,000 | 1,000 | 242,000 | |||||
Issuance of warrants on common stock | 4,000 | 767,000 | (763,000) | |||||
Berkshire warrants | 103,000 | 103,000 | ||||||
Purchases of treasury stock | (4,000) | (4,000) | ||||||
Ending balance at Sep. 30, 2020 | 19,860,000 | 9,762,000 | 216,000 | (10,657,000) | 16,505,000 | 4,317,000 | (283,000) | 4,925,000 |
Beginning balance at Jun. 30, 2020 | 23,346,000 | 9,762,000 | 213,000 | (10,657,000) | 16,235,000 | 8,105,000 | (312,000) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (3,575,000) | (3,575,000) | ||||||
Other comprehensive income (loss), net of tax | 29,000 | 29,000 | ||||||
Dividends on common stock | (10,000) | (10,000) | ||||||
Dividends on preferred stock | 19,000 | 3,000 | 219,000 | (203,000) | ||||
Issuance of common stock and other, net | 51,000 | 51,000 | 0 | |||||
Ending balance at Sep. 30, 2020 | $ 19,860,000 | $ 9,762,000 | $ 216,000 | $ (10,657,000) | $ 16,505,000 | $ 4,317,000 | $ (283,000) | $ 4,925,000 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
DIVIDENDS PER COMMON SHARE (in usd per share) | $ 0.01 | $ 0.79 | $ 0.81 | $ 2.35 |
DIVIDENDS PER PREFERRED SHARE (in dollars per share) | $ 2,000 | $ 1,489 | $ 6,444 | $ 1,489 |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
General | NOTE 1 - GENERAL NATURE OF OPERATIONS In this report, "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 conducts its operations through various subsidiaries and affiliates. 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 U.S. Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in consolidated financial statements and the notes thereto. 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, 2019 (the 2019 Form 10-K). 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 September 30, 2020 and December 31, 2019, the consolidated condensed statements of operations, comprehensive income, cash flows and stockholders' equity for the three and nine months ended September 30, 2020 and 2019. Certain data in the financial statements and notes for prior periods have been reclassified to conform to the current presentation. The income and cash flows for the periods ended September 30, 2020 and 2019 are not necessarily indicative of the income or cash flows to be expected for the full year. THE ACQUISITION On August 8, 2019, pursuant to the Agreement and Plan of Merger dated May 9, 2019, Occidental acquired all of the outstanding shares of Anadarko Petroleum Corporation (the Acquisition). The Acquisition added to Occidental's oil and gas portfolio, primarily in the Permian Basin, DJ Basin, Gulf of Mexico and Algeria, and an interest in Western Midstream Partners, L.P. (WES). The Acquisition constituted a business combination. Under the acquisition method of accounting, the acquisition consideration was allocated to tangible and intangible assets acquired and liabilities assumed based on their fair values. Occidental expensed $302 million in acquisition-related costs for the nine months ended September 30, 2020, primarily related to severance costs. DISCONTINUED OPERATIONS In connection with the Acquisition, Occidental entered into a purchase and sale agreement with TOTAL S.A. (Total) to sell all of the assets, liabilities, businesses, and operations of Anadarko's operations in Algeria, Ghana, Mozambique and South Africa. Total and Occidental completed the sale of the Mozambique assets in September 2019 and the South Africa assets in January 2020. In April 2020, subsequent to communications with Algerian government officials, Occidental determined that the sale of the Algeria operations to Total would not be consummated, and the decision was made to continue to operate within Algeria. As a result, as of the second quarter of 2020, Occidental no longer classified the Algeria operations as a held for sale asset in discontinued operations and reclassified prior periods to reflect the Algeria operations as continuing operations, see Note 3 - Di vestiture s and Other Transactions for the impact on prior periods. In addition, in the second quarter 2020, Occidental recorded a $931 million impairment to remeasure the Algeria oil and gas properties to their fair value, which was lower than the carrying amount as if Depreciation, Depletion and Amortization (DD&A) were recorded from the date of the Acquisition. The fair value of the oil and gas properties was measured based on the income approach, see Note 7 - Fair Value Measurements for a description of inputs and assumptions utilized. In May 2020, Occidental and Total mutually agreed to execute a waiver of the obligation to purchase and sell the Ghana assets, so that Occidental could begin marketing the sale of the Ghana assets to other third parties. Occidental is currently marketing the Ghana assets. The assets and liabilities for Ghana remain presented as held for sale at September 30, 2020. Occidental recorded an after-tax impairment of $1.4 billion in the second quarter 2020 to reflect the held for sale assets at their fair value less costs to sell based on the income approach, refer to Note 7 - Fair Value Measurements . The results of operations of Ghana continue to be presented as discontinued operations, see Note 3 - Di vestiture s and Other Transactions . Unless otherwise indicated, information presented in the Notes to the Consolidated Condensed Financial Statements relates only to Occidental's continuing operations. Information related to discontinued operations is included in Note 3 - Di vestiture s and Other Transactions , and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Condensed Financial Statements. SUPPLEMENTAL CASH FLOW INFORMATION Occidental paid U.S. domestic state and foreign income taxes for continuing operations of $375 million and $827 million during the nine months ended September 30, 2020 and 2019, respectively. Occidental received tax refunds of $223 million and $5 million during the nine months ended September 30, 2020 and 2019, respectively, related to continuing operations. Interest paid for continuing operations totaled $1.3 billion and $611 million during the nine months ended September 30, 2020 and 2019, respectively. CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balance at September 30, 2020, includes investments in government money market funds in which the carrying value approximates fair value. The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, respectively. millions 2020 2019 Cash and cash equivalents $ 1,896 $ 4,840 Restricted cash and restricted cash equivalents 51 467 Cash and restricted cash included in assets held for sale 113 3 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 14 55 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 2,074 $ 5,365 Total restricted cash and restricted cash equivalents are primarily associated with a benefits trust for former Anadarko employees that was funded as part of the Acquisition and a judicially controlled account related to a Brazilian tax dispute. Assets held for sale includes restricted cash for the payments of future hard-minerals royalties conveyed, see Note 3 - Divestitures and Other Transactions . EQUITY METHOD INVESTMENT-WES On December 31, 2019, Occidental and WES executed several agreements to allow WES to operate as an independent midstream company. Occidental's loss of control of WES on December 31, 2019, resulted in Occidental recognizing, at fair value, an equity method investment of $5.1 billion based on the closing market price of WES. The amounts presented as non-controlling interest on the Consolidated Condensed Statements of Operations relate to the period prior to Occidental's loss of control. Prior to the loss of control, Occidental consolidated WES as a variable interest entity, for which the non-controlling interest primarily consisted of the 44.6% limited partner interest of WES owned by the public. In the first quarter 2020, Occidental recorded a loss from an equity investment of $440 million as a result of WES’s write-off of its goodwill. At the end of the third quarter 2020, Occidental recorded an other-than-temporary impairment of $2.7 billion, as the fair value of Occidental’s investment in WES has remained significantly lower than its book value for the majority of the nine months ended September 30, 2020. Occidental concluded that the difference between the fair value and book value of WES was not temporary, primarily given both the magnitude and the duration that the fair value was below its book value. This other-than-temporary impairment was calculated based on the closing market price of WES as of September 30, 2020. The market value of WES’s publicly traded common units is considered a Level 1 input. In addition, Occidental recorded a loss of $46 million as a result of a non-cash transaction with WES in which Occidental exchanged approximately 27.9 million of its WES common units to retire a $260 million note payable to WES, see Note 8 - Long-Term Debt . Subsequent to this exchange and WES’s retirement of those common units, Occidental has a 2% non-voting general partner interest, a 51.5% limited partner interest and a 2% non-voting limited partner interest in WES Operating, a subsidiary of WES. As of September 30, 2020, on a combined basis, Occidental's total effective economic interest in WES and its subsidiaries is 53.5%. Occidental intends to reduce its limited partner ownership interest in WES to below 50%. As of September 30, 2020, Occidental’s equity method investment in WES was $1.9 billion, which exceeds Occidental’s pro-rata interest in the net assets of WES by $370 million. This basis difference is primarily associated with WES's property, plant and equipment and equity investments and is subject to amortization over their estimated average lives. Subsequent to the other-than-temporary impairment there is no equity method goodwill associated with WES equity investment. Subsequent to loss of control, transactions between Occidental and WES were no longer eliminated upon consolidation. Occidental and WES entered into the following related-party transactions for the three and nine months ended September 30, 2020. millions Three months ended September 30, 2020 Nine months ended September 30, 2020 Sales $ 46 $ 165 Purchases $ 164 $ 474 Transportation, gathering and other fees paid $ 258 $ 804 |
Accounting and Disclosure Chang
Accounting and Disclosure Changes | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Accounting and Disclosure Changes | NOTE 2 - ACCOUNTING AND DISCLOSURE CHANGES In January 2020, Occidental adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments - Credit Losses (Topic 326). The new standard makes significant changes to the accounting for credit losses on financial assets and disclosures regarding credit losses. For trade receivables, loans and held-to-maturity debt securities, entities will be required to estimate lifetime expected credit losses. This will result in the earlier recognition of credit losses than the current incurred-loss model. The acceleration of the recognition of losses is more material for entities whose receivables and other held-to-maturity debt investments are (1) long dated and (2) with less credit worthy counterparties. The vast majority of Occidental's receivables are short dated with maturities of less than 60 days with creditworthy counterparties, including refiners, pipelines and resellers. Given Occidental’s continued effort to maintain a strong credit portfolio, there have been no negative indications regarding the collectability of these receivables as of the date of this filing. Therefore, adoption of this standard has no material impact for the quarter. Occidental will continue to assess the risk to its receivables in the future. |
Divestitures and Other Transact
Divestitures and Other Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | |
Divestitures and Other Transactions | NOTE 3 - DIVESTITURES AND OTHER TRANSACTIONS DIVESTITURES In August 2020, Occidental entered into an agreement to sell approximately 4.5 million mineral acres and 1 million fee surface acres located in Wyoming, Colorado, and Utah for approximately $1.33 billion. The transaction closed in October 2020 for net cash proceeds of approximately $1.0 billion, after satisfying $329 million of liabilities associated with the sale of future royalties. As of September 30, 2020, approximately $1.4 billion of assets, primarily property associated with mineral and fee surface acres, and $338 million of liabilities, assumed through the Acquisition, were classified as held for sale. Occidental recorded a loss on sale of $431 million. The loss has been presented within (losses) gains on sale of assets, net in the Consolidated Condensed Statement of Operations. The net proceeds were utilized to pay down a portion of the 2-year variable rate Term Loan due 2021 (Term Loan). See Note 8 - Long -Term Debt for further information. In October 2020, Occidental entered into an agreement to sell its onshore oil and gas Colombia assets, which have been classified as held for sale within our Consolidated Condensed Balance Sheet as of September 30, 2020. The disposal group carrying value primarily includes approximately $587 million in property, plant and equipment. The transaction is expected to close in the fourth quarter 2020. In the third quarter 2020, Occidental recorded a loss of approximately $356 million associated with remeasuring the assets to their fair value, which was lower than their carrying amount. The loss has been presented within (losses) gains on sale of assets, net in the Consolidated Condensed Statement of Operations. The net proceeds will be used to pay down near-term maturities. ALGERIA OPERATIONS - RECLASSIFICATION The following table presents the amounts previously reported in discontinued operations, net of income taxes, which was reclassified to continuing operations, in the six months ended June 30, 2020, as a result of Occidental's decision to operate in Algeria. millions Six months ended June 30, 2020 Three and nine months ended September 30, 2019 Revenues and other income Net sales $ 319 $ 172 Costs and other deductions Oil and gas lease operating expense 44 12 Transportation expense 14 4 Taxes other than on income 48 46 Depreciation, depletion and amortization 110 61 Impairment upon reclassification to held for use 931 — Other 10 2 Total costs and other deductions 1,157 125 Income (losses) before income taxes (838) 47 Income tax expense (95) (47) Net income of Algeria operations, after taxes $ (933) $ — The following table presents the amounts previously reported in the Consolidated Condensed Balance Sheets as held for sale related to Algeria that were subsequently reclassified as of December 31, 2019: millions December 31, 2019 Current assets $ 249 Property, plant and equipment, net 1,761 Long-term receivables and other assets, net 146 Total Assets $ 2,156 Current liabilities $ 188 Non-current liabilities 104 Total Liabilities $ 292 DISCONTINUED OPERATIONS In January 2020, Occidental completed the sale of the South Africa assets to Total. The results of the South Africa and Ghana assets are presented as discontinued operations in the Consolidated Condensed Statements of Operations and Cash Flows. The amounts related to the Ghana assets are presented as held for sale on the Consolidated Condensed Balance Sheets as of September 30, 2020 and December 31, 2019, of which approximately $1.4 billion and $3.6 billion are related to property, plant and equipment, net, respectively. Approximately $750 million of the amounts presented in liabilities held for sale are primarily related to deferred income taxes, asset retirement obligations and a finance lease liability. The amounts presented in discontinued operations, net of income taxes, for the nine months ended September 30, 2020, primarily relate to a second quarter after-tax impairment of $1.4 billion recorded to adjust the Ghana assets to their fair value as the sale to Total will no longer be consummated. The amounts presented in discontinued operations, net of taxes, for the three months ended September 30, 2020 primarily relate to oil and gas revenues which have been partially offset by oil and gas operating expenses and other-operating expenses. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | NOTE 4 - REVENUE Revenue from customers is recognized when obligations under the terms of a contract with our customers are satisfied; this generally occurs with the delivery of oil, natural gas liquids (NGL), gas, chemicals or services, such as transportation. As of September 30, 2020, trade receivables, net, of $2.1 billion represent rights to payment, for which Occidental has satisfied its obligations under a contract and its right to payment is conditioned only on the passage of time. The following table shows a reconciliation of revenue from customers to total net sales for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, millions 2020 2019 2020 2019 Revenue from customers $ 4,018 $ 5,403 $ 12,576 $ 12,569 All other revenues (a) 90 456 1,073 1,714 Net sales $ 4,108 $ 5,859 $ 13,649 $ 14,283 (a) Includes net marketing derivatives, oil collars and calls, and chemical exchange contracts. DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS The table below presents Occidental's revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, NGLs and gas at the lease or concession area. Chemical segment revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale. millions United States Middle East / Africa Latin America Other International Eliminations Total Three months ended September 30, 2020 Oil and Gas Oil $ 1,784 $ 397 $ 138 $ — $ — $ 2,319 NGL 252 53 — — — 305 Gas 155 77 3 — — 235 Other 23 — — — — 23 Segment total $ 2,214 $ 527 $ 141 $ — $ — $ 2,882 Chemical $ 888 $ — $ 33 $ 18 $ — $ 939 Midstream and Marketing Gas processing $ 89 $ 73 $ — $ — $ — $ 162 Marketing 110 — — 62 — 172 Power and other 45 — — — — 45 Segment total $ 244 $ 73 $ — $ 62 $ — $ 379 Eliminations $ — $ — $ — $ — $ (182) $ (182) Consolidated $ 3,346 $ 600 $ 174 $ 80 $ (182) $ 4,018 millions United States Middle East/Africa Latin America Other International Eliminations Total Three months ended September 30, 2019 Oil and Gas Oil $ 2,453 $ 852 $ 177 $ — $ — $ 3,482 NGL 177 66 — — — 243 Gas 125 78 5 — — 208 Other (18) 3 — — — (15) Segment total $ 2,737 $ 999 $ 182 $ — $ — $ 3,918 Chemical $ 1,009 $ — $ 36 $ 16 $ — $ 1,061 Midstream and Marketing Gas processing $ 93 $ 81 $ — $ — $ — $ 174 Marketing 157 — — 37 — 194 Power and other 41 — — — — 41 Segment total $ 291 $ 81 $ — $ 37 $ — $ 409 WES Midstream (a) $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (368) $ (368) Consolidated $ 4,420 $ 1,080 $ 218 $ 53 $ (368) $ 5,403 (a) Occidental and WES executed several agreements to allow WES to operate as an independent midstream company resulting in Occidental's loss of control on December 31, 2019. millions United States Middle East / Africa Latin America Other International Eliminations Total Nine months ended September 30, 2020 Oil and Gas Oil $ 5,705 $ 1,426 $ 353 $ — $ — $ 7,484 NGL 592 158 — — — 750 Gas 476 239 12 — — 727 Other 54 1 — — — 55 Segment total $ 6,827 $ 1,824 $ 365 $ — $ — $ 9,016 Chemical $ 2,591 $ — $ 101 $ 47 $ — $ 2,739 Midstream and Marketing Gas processing $ 261 $ 215 $ — $ — $ — $ 476 Marketing 655 — — 163 — 818 Power and other 70 — — — — 70 Segment total $ 986 $ 215 $ — $ 163 $ — $ 1,364 Eliminations $ — $ — $ — $ — $ (543) $ (543) Consolidated $ 10,404 $ 2,039 $ 466 $ 210 $ (543) $ 12,576 millions United States Middle East/Africa Latin America Other International Eliminations Total Nine months ended September 30, 2019 Oil and Gas Oil $ 5,105 $ 2,435 $ 524 $ — $ — $ 8,064 NGL 339 199 — — — 538 Gas 180 233 14 — — 427 Other (40) (2) — — — (42) Segment total $ 5,584 $ 2,865 $ 538 $ — $ — $ 8,987 Chemical $ 2,937 $ — $ 119 $ 53 $ — $ 3,109 Midstream and Marketing Gas processing $ 302 $ 272 $ — $ — $ — $ 574 Marketing 162 — — 37 — 199 Power and other 112 — — — — 112 Segment total $ 576 $ 272 $ — $ 37 $ — $ 885 WES Midstream (a) $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (795) $ (795) Consolidated $ 9,480 $ 3,137 $ 657 $ 90 $ (795) $ 12,569 (a) Occidental and WES executed several agreements to allow WES to operate as an independent midstream company resulting in Occidental's loss of control on December 31, 2019. TRANSACTION PRICE ALLOCATED TO REMAINING PERFORMANCE OBLIGATIONS Revenue expected to be recognized from certain performance obligations that are unsatisfied as of September 30, 2020 is reflected in the table below. Occidental applies the optional exemptions in ASU 2014-09 Revenue from Contracts with Customers (Topic 606) and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied performance obligations. As a result, the following table represents a small portion of Occidental's expected future consolidated revenues, as future revenue from the sale of most products and services is dependent on future production or variable customer volume and variable commodity prices for that volume: millions Remainder of 2020 $ 38 2021 114 2022 9 2023 9 2024 9 Thereafter 85 Total $ 264 |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | NOTE 5 - INVENTORY Commodity inventory and finished goods primarily represents crude oil, which is carried at the lower of weighted-average cost or net realizable value, and caustic soda and chlorine, which are valued under the last-in, first-out (LIFO) method. Inventories consisted of the following: millions September 30, 2020 December 31, 2019 Raw materials $ 63 $ 75 Materials and supplies 885 974 Finished goods 753 572 1,701 1,621 Revaluation to LIFO (41) (40) Total $ 1,660 $ 1,581 During the first half of 2020, Occidental recognized impairments of $54 million and $76 million due to obsolete material and supplies inventory and lower-than-cost or net-realizable value adjustments primarily related to commodity inventories, respectively. Occidental did not recognize any inventory impairments for the three months ended September 30, 2020. |
Derivatives
Derivatives | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | NOTE 6 - DERIVATIVES Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes. Occidental also enters into derivative financial instruments for trading purposes. Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies, such as to lock rates on forecasted debt issuances. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS As of September 30, 2020, Occidental’s derivatives not designated as hedges consist of three-way oil collars and call options, natural gas collars, interest rate swaps and marketing derivatives. Derivative instruments that are derivatives not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact Occidental’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the realized or cash value of the instrument. COLLARS AND CALL OPTIONS In 2019, Occidental entered into three-way costless collar derivative instruments for 2020, along with additional call options in 2021 to manage its near-term exposure to cash flow variability from oil price risks. A three-way collar is a combination of three options: a sold call, a purchased put and a sold put. The sold call establishes the ceiling price that Occidental will receive for the contracted commodity volume for a defined period of time. The purchased put establishes the floor price that Occidental will receive for the contracted volumes unless the market price for the commodity falls below the sold put strike price, at which point the floor price equals the reference price plus the difference between the purchased put strike price and the sold put strike price for a defined period of time. Occidental entered into the 2021 call options to substantially improve the terms for the ceiling price that Occidental will receive for the contracted commodity volumes in 2020. Occidental received cash of $643 million associated with the oil collars in the nine months ended September 30, 2020. In September 2020, Occidental entered into two-way collar derivative instruments for 2021 to manage its near-term exposure to cash-flow variability from natural gas commodity price risks. A two-way collar is a combination of two options: a sold call and a purchased put. The sold call establishes the ceiling price that Occidental will receive for the contracted commodity volume for a defined period of time. The purchased put establishes the floor price that Occidental will receive for the contracted volumes. Net gains and losses associated with collars and calls are recognized in net sales. Occidental had the following collars and calls outstanding at September 30, 2020: Collars and Calls, not designated as hedges 2020 Settlement - oil Three-way collars (Oil MMBBL) 32.2 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement - oil Call options sold (Oil MMBBL) 127.8 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 2021 Settlement - natural gas Natural Gas Collars (millions of MMBTU) 182.5 Volume weighted average price per MMBTU (NYMEX) Ceiling sold price (call) $ 3.61 Floor purchased price (put) $ 2.50 INTEREST RATE SWAPS Occidental acquired interest rate swap contracts in the Acquisition. The contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to three-month London InterBank Offered Rate (LIBOR) throughout the reference period. Net gains and losses associated with interest rate derivative instruments not designated as hedging instruments are recognized currently in gains (losses) on interest rate swaps and warrants, net. Occidental had the following outstanding interest rate swaps at September 30, 2020: millions, except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 400 September 2016 - 2046 September 2021 6.348 % $ 350 September 2017 - 2047 September 2021 6.662 % $ 275 September 2016 - 2046 September 2022 6.709 % $ 450 September 2017 - 2047 September 2023 6.445 % Depending on market conditions, liability management actions or other factors, Occidental may enter into offsetting interest rate swap positions or settle or amend certain or all of the currently outstanding interest rate swaps. In the first quarter of 2020, Occidental extended all 2020 mandatory termination dates to 2021 or thereafter. In addition to the interest rate swaps, Occidental has approximately $1.1 billion of debt referenced to LIBOR that matures after 2021. It is expected that a number of private-sector banks currently reporting information used to set LIBOR will stop doing so after 2021. Occidental is currently evaluating the potential effect to its debt and derivative obligations due to the transition from LIBOR to another benchmark rate. The effect to our LIBOR indexed contracts will depend on the alternative reference rate selected by our counterparties and the contracts' relative values at the time of the transition. Derivative settlements and collateralization are classified as cash flow from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified as cash flows from financing activities. Due to the liability position of the interest rate derivatives at the date of the Acquisition, the interest rate derivatives in Occidental’s portfolio contain an other-than-insignificant financing element, and therefore, any settlements, collateralization or cash payments related to interest rate derivatives are classified as cash flow from financing activities. Net cash payments related to settlements were $47 million and $94 million for the three and nine months ended September 30, 2020, respectively. Collateral with respect to interest rate swap agreements was returned (paid) in the amount of $37 million and $(283) million for the three and nine months ended September 30, 2020, respectively. MARKETING DERIVATIVES Occidental's marketing derivative instruments not designated as hedges are physical and financial-forward contracts which typically settle within three months. A substantial majority of Occidental's physically settled derivative contracts are index-based and carry no mark-to-market valuation in earnings. These instruments settled at a weighted average contract price of $41.73 per barrel and $2.36 per thousand cubic feet (Mcf) for crude oil and natural gas, respectively, at September 30, 2020. The weighted-average contract price was $60.60 per barrel and $2.17 per Mcf for crude oil and natural gas, respectively, at December 31, 2019. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales. The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments. September 30, 2020 December 31, 2019 Crude Oil Commodity Contracts Volume (MMBBL) (5) 55 Natural Gas Commodity Contracts Volume (Bcf) (111) (128) THE BERKSHIRE WARRANTS Warrants for 80 million shares of Occidental stock, with an initial exercise price of $62.50, were issued in connection with the financing of the Acquisition (the Berkshire Warrants). The Berkshire Warrants are exercisable at the holder's option, in whole or in part, until the first anniversary of the date on which no shares of Preferred Stock remain outstanding, at which time the Berkshire Warrants expire. The holders of the Berkshire Warrants could have required net cash settlement if certain shareholder and regulatory approvals to issue shares of Occidental's common stock underlying the Berkshire Warrants were not obtained. Prior to these approvals, the fair value of the Berkshire Warrants was remeasured each reporting date with gains and losses being recorded on the income statement. At Occidental's May 29, 2020 annual shareholders meeting, all remaining approvals were obtained and the Berkshire Warrants can no longer be cash settled. Upon these approvals, the fair value of the Berkshire Warrants was remeasured at May 29, 2020, using the Black-Scholes option model. The reclassification from liabilities to "Additional paid-in capital" was $103 million. The following inputs were used in the Black-Scholes option model: the expected life of the Berkshire Warrants, a volatility factor and the exercise price. The expected life is based on the estimated term of the Berkshire Warrants, the volatility factor is based on historical volatilities of Occidental common stock, and the initial exercise price of $62.50. The Berkshire Warrants contain an anti-dilution provision that adjusts the exercise price and the number of shares of Occidental's common stock issuable on exercise upon the occurrence of certain distributions to common shareholders. On June 26, 2020, Occidental's Board of Directors declared a distribution to its common shareholders of warrants to purchase additional shares of common stock, see Note 13 - Earnings Per Share and Stockholders' Equity . This distribution to common shareholders resulted in an anti-dilution adjustment to the Berkshire Warrants, which lowered its exercise price to $59.624 and increased the number of shares of Occidental's common stock issuable on exercise of the Berkshire Warrants by approximately 3.9 million shares. DERIVATIVES DESIGNATED AS HEDGING INSTRUMENTS Net gains and losses attributable to derivative instruments subject to cash flow hedge accounting reside in accumulated other comprehensive loss and are reclassified to earnings, as the transactions to which the derivatives relate are recognized in earnings. CASH FLOW HEDGES Occidental’s marketing operations store natural gas purchased from third parties at Occidental’s leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes. As of September 30, 2020 and December 31, 2019, cash flow hedges were immaterial. FAIR VALUE OF DERIVATIVES The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets. millions Fair Value Measurements Using Netting (a) Total Fair Value Balance Sheet Classifications Level 1 Level 2 Level 3 September 30, 2020 Collars and Call Options Other current assets $ — $ 269 $ — $ — $ 269 Deferred credits and other liabilities - other — (18) — — (18) Marketing Derivatives Other current assets 1,162 37 — (1,194) 5 Long-term receivables and other assets, net 77 2 — (77) 2 Accrued liabilities (1,180) (49) — 1,194 (35) Deferred credits and other liabilities - other (77) — — 77 — Interest Rate Swaps Accrued liabilities — (1,011) — — (1,011) Deferred credits and other liabilities - other — (894) — — (894) December 31, 2019 Collars and Call Options Other current assets $ — $ 92 $ — $ — $ 92 Deferred credits and other liabilities - other — (160) — — (160) Marketing Derivatives Other current assets 945 79 — (973) 51 Long-term receivables and other assets, net 4 12 — (4) 12 Accrued liabilities (1,008) (44) — 973 (79) Deferred credits and other liabilities - other (4) (1) — 4 (1) Interest Rate Swaps Other current assets — 5 — — 5 Long-term receivables and other assets, net — 5 — — 5 Accrued liabilities — (657) — — (657) Deferred credits and other liabilities - other — (776) — — (776) Berkshire Warrants (b) Deferred credits and other liabilities - other — (107) — — (107) (a) These amounts do not include collateral. (b) Berkshire Warrants were reclassified to equity on May 29, 2020. As of September 30, 2020 and December 31, 2019, $388 million and $104 million of collateral had been netted against derivative liabilities related to interest rate swaps, respectively. As of September 30, 2020, Occidental had deposited $15 million of collateral with brokers related to marketing derivatives, which is netted with derivative liabilities. Initial margin of $65 million was deposited with brokers as of December 31, 2019, related to marketing derivatives. GAINS AND LOSSES ON DERIVATIVES The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations: millions Three months ended September 30, Nine months ended September 30, Income Statement Classification 2020 2019 2020 2019 Collars and Calls Net sales $ 110 $ 75 $ 1,067 $ 75 Marketing Derivatives Net sales (a) (18) 91 — (119) Interest Rate Swaps Gains (losses) on interest rate swaps and warrants, net 88 (53) (577) (53) Berkshire Warrants Gains on interest rate swaps and warrants, net (b) $ — $ 20 $ 5 $ 20 (a) Includes derivative and non-derivative marketing activity. (b) Includes losses and gains on Berkshire Warrants prior to the May 29, 2020 reclassification to equity. CREDIT RISK Occidental's counterparty credit risk related to the physical delivery of energy commodities results from its customers' potential inability to meet their settlement commitments. Occidental manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring collateral or other credit risk mitigants, as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. Occidental also enters into future contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk as a significant portion of these transactions settle on a daily margin basis. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | NOTE 7 - 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 In January 2012, Occidental entered into a long-term contract to purchase carbon dioxide (CO 2 ). This contract contains a price adjustment clause that is linked to changes in NYMEX crude oil prices. Occidental determined that the portion of this contract linked to NYMEX oil prices is not clearly and closely related to the host contract, and Occidental therefore bifurcated this embedded pricing feature from its host contract and accounts for it at fair value in the Consolidated Condensed Financial Statements. The following tables provide fair value measurement information for embedded derivatives that are measured on a recurring basis: millions Fair Value Measurements Using Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair As of September 30, 2020 Accrued liabilities $ — $ (79) $ — $ — $ (79) Deferred credits and other liabilities - other — (19) — — (19) As of December 31, 2019 Accrued liabilities $ — $ (40) $ — $ — $ (40) Deferred credits and other liabilities - other — (49) — — (49) FAIR VALUES - NONRECURRING - IMPAIRMENTS In the second quarter 2020, as a result of the expected prolonged period of lower commodity prices brought on by the COVID-19 pandemic’s impact on oil demand, Occidental tested substantially all of its oil and gas assets for impairment. Occidental recognized total pre-tax impairments to its oil and gas proved and unproved properties of $8.6 billion, of which $6.4 billion is included in oil and gas segment results and $2.2 billion ($1.4 billion net of tax) related to Ghana is included in discontinued operations. In the second quarter 2020, Occidental recorded proved property pre-tax impairments of $1.2 billion primarily related to certain assets for its domestic onshore and Gulf of Mexico assets and $0.9 billion to adjust the Algeria oil and gas proved properties to their fair value. The fair value of the proved properties was measured based on the income approach. Unproved property pre-tax impairments of $4.3 billion were primarily related to domestic onshore unproved acreage. The fair value of this acreage was measured based on a market approach using an implied acreage valuation derived from domestic onshore market participants excluding the fair value assigned to proved properties. Income approaches are considered Level 3 fair value estimates and include significant assumptions of future production and timing of production, commodity price assumptions, and operating and capital cost estimates, discounted using a 10 percent weighted average cost of capital. Taxes were based on current statutory rates. Future production and timing of production is based on internal reserves estimates and internal economic models for a specific oil and gas asset. Internal reserve estimates consist of proved reserves and unproved reserves, the latter adjusted for uncertainty based on reserve category. Price assumptions were based on a combination of market information and published industry resources adjusted for historical differentials. Price assumptions ranged from approximately $40 per barrel of oil in 2020 increasing to approximately $70 per barrel of oil in 2034, with an unweighted arithmetic average price of $59.17 and $62.42 for WTI and Brent indexed assets for the 15 year period, respectively. Natural gas prices ranged from approximately $2.00 per MCF in 2020 to $3.60 per MCF in 2034, with an unweighted arithmetic average price of $3.13 for NYMEX based assets for the 15 year period. Both oil and natural gas commodity prices were held flat after 2034 and were adjusted for location and quality differentials. Operating and capital cost estimates were based on current observable costs and were further escalated 1 percent in every period where commodity prices exceeded $50 per barrel and 2 percent in every period where commodity prices exceeded $60 per barrel. The weighted average cost of capital is calculated based on industry peers and best approximates the cost of capital an external market participant would expect to obtain. In the first quarter 2020, Occidental's oil and gas segment recognized pre-tax impairment and related charges of $581 million primarily related to both proved and unproved oil and gas properties and a lower of cost or net realizable value adjustment for crude inventory. Occidental recorded proved property impairments of $293 million related to certain international assets and the Gulf of Mexico. Occidental recorded unproved property impairments, of approximately $241 million, primarily related to domestic onshore undeveloped leases and offshore Gulf of Mexico where Occidental no longer intends to pursue exploration, appraisal or development activities primarily due to the reduction in near-term capital plans. If there is a further worsening of the macroeconomic conditions and if such worsened conditions are expected to be prolonged, Occidental’s oil and gas properties may be subject to further testing for impairment, which could result in additional non-cash asset impairments, and such impairments could be material to our financial statements. GOODWILL As of December 31, 2019, Occidental had $1.2 billion of goodwill related to its ownership in WES, which was included in long-term receivables and other assets, net. Significant declines in the market value of WES’s publicly traded units resulted in management’s determination that, more likely than not, the fair value of the reporting unit was significantly less than its carrying value and the remaining $1.2 billion in goodwill was fully impaired in the first quarter of 2020. The market value of WES's publicly traded units is considered a Level 1 input. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | NOTE 8 - LONG-TERM DEBT The following table summarizes Occidental's outstanding debt, including finance lease liabilities: millions September 30, 2020 December 31, 2019 Total borrowings at face value $ 37,511 $ 37,401 Adjustments to book value: Unamortized premium, net 765 914 Debt issuance costs (144) (125) Long-term finance leases 292 347 Current finance leases 33 51 Total debt and finance leases 38,457 38,588 Less current maturities of long-term debt and financing leases (2,558) (51) Long-term debt, net $ 35,899 $ 38,537 DEBT ACTIVITY In March 2020, Occidental amended the sole financial covenant in its revolving credit facility (RCF) and Term Loan by revising the definition of "Total Capitalization" within each agreement to exclude any non-cash write-downs, impairments and related charges occurring after September 30, 2019. In July and August 2020, Occidental issued several series of notes with maturities from five one In August 2020, Occidental exchanged approximately 27.9 million WES common units to retire a $260 million note payable to WES, resulting in a net loss of $46 million, which includes a $76 million gain on debt extinguished associated with an unamortized premium on the note payable to WES. This net loss on exchange has been presented in (losses) gains on sale of assets, net in the Consolidated Condensed Statement of Operations. The following table summarizes Occidental's debt issuances, repurchases, repayments and exchanges for the nine months ended September 30, 2020: millions Borrowings at face value Total borrowings at face value as of December 31, 2019 $ 37,401 Issuance of July 2020 Notes: (a) 8.000% senior notes due 2025 500 8.500% senior notes due 2027 500 8.875% senior notes due 2030 1,000 July tender and purchase: 4.100% senior notes due February 2021 (943) Variable rate bonds due February 2021 (473) 4.850% senior notes due March 2021 (530) 2.600% senior notes due August 2021 (51) Issuance of August 2020 Notes: (b) 5.875% senior notes due 2025 900 6.375% senior notes due 2028 600 6.625% senior notes due 2030 1,500 August and September tender and purchase: 4.100% senior Notes due February 2021 (139) Variable rate bonds due August 2021 (122) 2.600% senior Notes due August 2021 (1,099) Variable rate bonds due August 2022 (448) 2.600% senior Notes due April 2022 (171) 2.700% senior Notes due August 2022 (102) 2.700% senior Notes due February 2023 (52) August WES exchange: 6.500% note payable to WES due 2038 (260) September Term Loan Repayment: 2-year variable rate Term Loan due 2021 (500) Total borrowings at face value as of September 30, 2020 $ 37,511 (a) Interest on the July notes will be paid semi-annually in arrears on July 15 and January 15 of each year, commencing on January 15, 2021. (b) Interest on the August notes will be paid semi-annually on March 1 and September 1 of each year, commencing on March 1, 2021. SUBSEQUENT DEBT ACTIVITY In October 2020, Occidental fully redeemed the remaining variable rate notes due August 2021 for $377 million, and Occidental paid $1.0 billion of the Term Loan with proceeds from the sale of mineral and surface acres located in Wyoming, Colorado and Utah . After this payment, $446 million of the Term Loan remained outstanding. FAIR VALUE OF DEBT The estimated fair value of Occidental’s debt as of September 30, 2020, was $31.5 billion. The majority of Occidental's debt is classified as Level 1, with $1.6 billion classified as Level 2. At December 31, 2019, the estimated fair value of Occidental's debt was $38.8 billion. |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Lease Commitments | NOTE 9 - LEASE COMMITMENTS Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $56 million, compressors of $155 million, storage facilities of $297 million, office space of $417 million and other field equipment of $58 million, which are recorded gross on the Consolidated Condensed Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from two one Occidental’s finance lease agreements include leases for oil and gas exploration and development equipment, as well as real estate offices, compressors and field equipment of approximately $325 million . The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2020, and December 31, 2019: millions Balance sheet location September 30, 2020 December 31, 2019 Assets: Operating Operating lease assets $ 1,196 $ 1,411 Finance Property, plant and equipment 329 397 Total lease assets $ 1,525 $ 1,808 Liabilities: Current Operating Current operating lease liabilities $ 459 $ 579 Finance Current maturities of long-term debt 33 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 786 872 Finance Long-term debt, net 292 347 Total lease liabilities $ 1,570 $ 1,849 At September 30, 2020, Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2020 $ 117 $ 7 $ 124 2021 454 35 489 2022 182 34 216 2023 110 32 142 2024 89 30 119 Thereafter 480 261 741 Total lease payments 1,432 399 1,831 Less: Interest (187) (74) (261) Total lease liabilities $ 1,245 $ 325 $ 1,570 (a) The weighted-average remaining lease term is 6.0 years and the weighted-average discount rate is 4.53%. (b) The weighted-average remaining lease term is 11.8 years and the weighted-average discount rate is 3.37%. The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities: millions Three months ended September 30, Nine months ended September 30, Lease cost classification (a) 2020 2019 2020 2019 Operating lease costs (b) Property, plant and equipment, net $ 24 $ 139 $ 153 $ 321 Cost of sales 131 135 417 273 Selling, general and administrative expenses 37 26 80 61 Finance lease cost: Amortization of ROU assets 5 5 14 11 Interest on lease liabilities 3 1 9 1 Total lease cost $ 200 $ 306 $ 673 $ 667 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $42 million and $146 million for the three and nine months ended September 30, 2020, respectively, and $139 million and $295 million for the three and nine months ended September 30, 2019, respectively. Includes variable lease cost of $11 million and $73 million for the three and nine months ended September 30, 2020, respectively, and $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. Nine months ended September 30, millions 2020 2019 Operating cash flows $ 401 $ 164 Investing cash flows $ 59 $ 83 Financing cash flows $ 15 $ 11 |
Lease Commitments | NOTE 9 - LEASE COMMITMENTS Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $56 million, compressors of $155 million, storage facilities of $297 million, office space of $417 million and other field equipment of $58 million, which are recorded gross on the Consolidated Condensed Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from two one Occidental’s finance lease agreements include leases for oil and gas exploration and development equipment, as well as real estate offices, compressors and field equipment of approximately $325 million . The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2020, and December 31, 2019: millions Balance sheet location September 30, 2020 December 31, 2019 Assets: Operating Operating lease assets $ 1,196 $ 1,411 Finance Property, plant and equipment 329 397 Total lease assets $ 1,525 $ 1,808 Liabilities: Current Operating Current operating lease liabilities $ 459 $ 579 Finance Current maturities of long-term debt 33 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 786 872 Finance Long-term debt, net 292 347 Total lease liabilities $ 1,570 $ 1,849 At September 30, 2020, Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2020 $ 117 $ 7 $ 124 2021 454 35 489 2022 182 34 216 2023 110 32 142 2024 89 30 119 Thereafter 480 261 741 Total lease payments 1,432 399 1,831 Less: Interest (187) (74) (261) Total lease liabilities $ 1,245 $ 325 $ 1,570 (a) The weighted-average remaining lease term is 6.0 years and the weighted-average discount rate is 4.53%. (b) The weighted-average remaining lease term is 11.8 years and the weighted-average discount rate is 3.37%. The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities: millions Three months ended September 30, Nine months ended September 30, Lease cost classification (a) 2020 2019 2020 2019 Operating lease costs (b) Property, plant and equipment, net $ 24 $ 139 $ 153 $ 321 Cost of sales 131 135 417 273 Selling, general and administrative expenses 37 26 80 61 Finance lease cost: Amortization of ROU assets 5 5 14 11 Interest on lease liabilities 3 1 9 1 Total lease cost $ 200 $ 306 $ 673 $ 667 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $42 million and $146 million for the three and nine months ended September 30, 2020, respectively, and $139 million and $295 million for the three and nine months ended September 30, 2019, respectively. Includes variable lease cost of $11 million and $73 million for the three and nine months ended September 30, 2020, respectively, and $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. Nine months ended September 30, millions 2020 2019 Operating cash flows $ 401 $ 164 Investing cash flows $ 59 $ 83 Financing cash flows $ 15 $ 11 |
Lawsuits, Claims, Commitments a
Lawsuits, Claims, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments and Contingencies | NOTE 10 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES LEGAL MATTERS Occidental 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. Occidental or certain of its subsidiaries also are involved in proceedings under the Comprehensive Environmental Response, Compensation and Liability Act (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 Occidental 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. In accordance with applicable accounting guidance, 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. Reserve balances for matters, other than for environmental remediation, that satisfy these criteria as of September 30, 2020, and December 31, 2019, were not material to Occidental’s Consolidated Condensed Balance Sheets. In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental's Participation Contract for Block 15. The awarded amount represented a recovery of 60 percent of the value of Block 15. In 2017, Andes Petroleum Ecuador Ltd. (Andes) filed a demand for arbitration, claiming it is entitled to a 40 percent share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60 percent economic interest in the block. The merits hearing occurred in September 2020 and an arbitration decision is expected within the next six months. In August 2019, Sanchez Energy Corporation and certain of its affiliates (Sanchez) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Sanchez is a party to agreements with Anadarko as a result of its 2017 purchase of Anadarko's Eagle Ford Shale assets. Sanchez is attempting to reject some of the agreements related to the purchase of Anadarko’s Eagle Ford Shale assets. If Sanchez is permitted to reject certain of those agreements, then Anadarko may owe deficiency payments to various third parties. The Company intends to defend vigorously any attempt by Sanchez to reject the agreements. The Company expects a ruling on Sanchez's purported contract rejection in the first quarter of 2021. On May 26, 2020, a putative securities class action captioned City of Sterling Heights General Employees’ Retirement System, et al. v. Occidental Petroleum Corporation, et al., No. 651994/2020 (City of Sterling), was filed in the Supreme Court of the State of New York. The complaint asserts claims under Sections 11, 12 and 15 of the Securities Act of 1933, as amended (the Securities Act), based on alleged misstatements in the Securities Act filings, including the registration statement filed in connection with the Anadarko Acquisition and Occidental’s related issuance of common stock and debt securities offerings that took place in August 2019. The lawsuit was filed against Occidental, certain current and former officers and directors and certain underwriters of the debt securities offerings, and seeks damages in an unspecified amount, plus attorneys’ fees and expenses. Two additional putative class actions were filed in the same court (together with City of Sterling, the State Cases) and the State Cases were consolidated into In re Occidental Petroleum Corporation Securities Litigation , No. 651830/2020. The Company intends to vigorously defend itself in all respects in regard to the State Cases. The ultimate outcome and impact of outstanding lawsuits, claims and proceedings on Occidental cannot be predicted. Management believes that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on Occidental's Consolidated Condensed Balance Sheets. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. Occidental reassesses the probability and estimability of contingent losses as new information becomes available. TAX MATTERS 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. For the legacy Occidental group, taxable years through 2017 for U.S. federal income tax purposes have been audited by the U.S. Internal Revenue Service (IRS) pursuant to its Compliance Assurance Program and subsequent taxable years are currently under review. Taxable years through 2009 have been audited for state income tax purposes. All significant audit matters in foreign jurisdictions have been resolved through 2010. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. For Anadarko, its taxable years through 2016 for U.S. federal and state income tax purposes have been audited by the IRS and respective state taxing authorities. There are outstanding significant audit matters in one foreign jurisdiction. As stated above, during the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Other than the matter discussed below, Occidental believes that the resolution of these outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. Anadarko received an $881 million tentative refund in 2016 related to its $5.2 billion Tronox Adversary Proceeding settlement payment in 2015. In September 2018, Anadarko received a statutory notice of deficiency from the IRS disallowing the net operating loss carryback and rejecting Anadarko’s refund claim. As a result, Anadarko filed a petition with the U.S. Tax Court to dispute the disallowances in November 2018. The case was in the IRS appeals process until the second quarter of 2020, however it has since been returned to the U.S. Tax Court where Occidental expects to continue pursuing resolution. While Occidental believes it is entitled to this refund, in accordance with ASC 740’s guidance on the accounting for uncertain tax positions, as of September 30, 2020, Occidental has recorded no tax benefit on the tentative cash tax refund of $881 million. As a result, should Occidental not ultimately prevail on the issue, there would be no additional tax expense recorded relative to this position for financial statement purposes other than future interest. A liability was recorded in deferred credits and other liabilities-other at December 31, 2019, for the amount to be repaid plus interest in the event Occidental does not prevail. On March 27, 2020, the President signed into law the Coronavirus Aid, Relief and Economic Security Act (hereafter, CARES Act), an economic stimulus package in response to the COVID-19 pandemic. The CARES Act contains several corporate income tax provisions, including provisions allowing for immediate refund of remaining unutilized AMT credits as well as allowing a 5-year carryback of net operating losses generated in tax years 2018, 2019 and 2020. For the nine months ended September 30, 2020, Occidental received approximately $195 million of cash refunds as a result of the aforementioned AMT credit and NOL carryback provisions. Occidental does not currently expect the various provisions of the CARES Act to have a material effect on current income tax expense or the realizability of deferred income tax assets. Occidental will continue to monitor additional guidance issued by the U.S. Treasury Department and the Internal Revenue Service. INDEMNITIES TO THIRD PARTIES Occidental, 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 September 30, 2020, 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. |
Environmental Liabilities and E
Environmental Liabilities and Expenditures | 9 Months Ended |
Sep. 30, 2020 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities and Expenditures | NOTE 11 - ENVIRONMENTAL LIABILITIES AND EXPENDITURES Occidental’s operations are subject to stringent federal, state, local and international laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including CERCLA and similar federal, state, local and international 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; or operation and maintenance of remedial systems. The environmental 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. ENVIRONMENTAL REMEDIATION As of September 30, 2020, Occidental participated in or monitored remedial activities or proceedings at 174 sites. The following table presents Occidental’s current and non-current environmental remediation liabilities as of September 30, 2020. The current portion, $160 million, is included in accrued liabilities and the non-current portion, $975 million, in deferred credits and other liabilities-environmental remediation liabilities. Occidental’s environmental remediation sites are grouped into four categories: sites listed or proposed for listing by the U.S. Environmental Protection Agency (EPA) on the CERCLA National Priorities List (NPL) and three categories of non-NPL sites—third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. millions, except number of sites Number of Sites Remediation Balance NPL sites 35 $ 451 Third-party sites 72 284 Occidental-operated sites 17 142 Closed or non-operated Occidental sites 50 258 Total 174 $ 1,135 As of September 30, 2020, Occidental’s environmental remediation liabilities exceeded $10 million each at 19 of the 174 sites described above, and 98 of the sites had liabilities from zero to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately 45 percent of the period-end remediation balance at the sites described above over the next three MAXUS ENVIRONMENTAL SITES When Occidental acquired Diamond Shamrock Chemicals Company (DSCC) in 1986, Maxus, a subsidiary of YPF S.A. (YPF), agreed to indemnify Occidental for a number of environmental sites, including the Diamond Alkali Superfund Site (Site) along a portion of the Passaic River. On September 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in Federal District Court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with clean-up and other costs associated with the sites subject to the indemnity, including the Site. In March 2016, the EPA issued a Record of Decision (ROD) specifying remedial actions required for the lower 8.3 miles of the Lower Passaic River. The ROD does not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay. During the third quarter of 2016, and following Maxus’s bankruptcy filing, Occidental and the EPA entered into an Administrative Order on Consent (AOC) to complete the design of the proposed clean-up plan outlined in the ROD at an estimated cost of $165 million. The EPA announced that it will pursue similar agreements with other potentially responsible parties. Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and remediation called for in the AOC and the ROD as well as for certain other Maxus-indemnified sites. Occidental's accrued estimated environmental reserve does not consider any recoveries for indemnified costs. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental's allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be incurred to comply with the AOC, the ROD and to perform remediation at other Maxus-indemnified sites in light of the Maxus bankruptcy and the share of ultimate liability of other potentially responsible parties. In June 2018, Occidental filed a complaint under CERCLA in Federal District Court in the State of New Jersey against numerous potentially responsible parties for reimbursement of amounts incurred or to be incurred to comply with the AOC, the ROD, or to perform other remediation activities at the Site. In June 2017, the court overseeing the Maxus bankruptcy approved a Plan of Liquidation (Plan) to liquidate Maxus and create a trust to pursue claims against YPF, Repsol, and others to satisfy claims by Occidental and other creditors for past and future cleanup and other costs. In July 2017, the court-approved Plan became final and the trust became effective. Among other responsibilities, the trust will pursue claims against YPF, Repsol and others and distribute assets to Maxus' creditors in accordance with the trust agreement and Plan. In June 2018, the trust filed its complaint against YPF and Repsol in Delaware bankruptcy court asserting claims based upon, among other things, fraudulent transfer and alter ego. During 2019, the bankruptcy court denied Repsol's and YPF's motions to dismiss the complaint as well as their motions to move the case away from the bankruptcy court. Discovery remains ongoing at the time of this report. |
Retirement and Postretirement B
Retirement and Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefit Plans | NOTE 12 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS Occidental has various defined benefit pension plans for certain domestic union, non-union hourly and foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents. In conjunction with the Acquisition, Occidental acquired certain Anadarko contributory and non-contributory defined benefit pension plans, which include both qualified and supplemental plans, and plans that provide health care and life insurance benefits for certain retired employees. The Anadarko pension and postretirement obligations were remeasured as of the Acquisition date. Effective as of June 30, 2020, the defined benefit pension plans and certain of the supplemental plans covering active Anadarko employees were frozen. The following table contains a summary of Occidental's retirement and postretirement benefits plan costs for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, millions 2020 2019 2020 2019 Net gains related to settlement, curtailment and special termination benefits (a) $ 5 $ 24 $ 121 $ 24 Net periodic benefit costs related to pension benefits excluding settlement, curtailment and special termination benefits — (b) 15 22 19 Net periodic benefit costs related to postretirement benefits 18 19 56 48 Contributions to qualified and supplemental plans $ 30 $ 7 $ 132 $ 8 (a) Net gains related to settlement, curtailment and special termination benefits for the three and nine months ended September 30, 2020 and 2019 primarily relate to a separation program initiated in conjunction with the Acquisition and the freezing of benefit accruals for Anadarko employees. (b) Net periodic benefit costs related to pension benefits excluding settlement, curtailment and special termination benefits were immaterial for the three months ended September 30, 2020. The increase in contributions is primarily due to distributions from the Anadarko supplemental plans related to the severance program described above. Occidental is reimbursed for a majority of these contributions from a trust for former Anadarko employees. Occidental is deferring all required contributions to the qualified defined benefit plans as permitted by the CARES Act. |
Earnings Per Share And Stockhol
Earnings Per Share And Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Earnings Per Share And Stockholders' Equity | NOTE 13 - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY The following table presents the calculation of basic and diluted net income (loss) attributable to common stockholders per share: Three months ended Nine months ended millions except per-share amounts 2020 2019 2020 2019 Net income (loss) from continuing operations $ (3,655) $ (737) $ (12,384) $ 529 Income (loss) from discontinued operations 80 (15) (1,335) (15) Net income (loss) (3,575) (752) (13,719) 514 Less: Net income attributable to noncontrolling interest — (42) — (42) Less: Preferred stock dividends (203) (118) (644) (118) Net income (loss) attributable to common stock $ (3,778) $ (912) $ (14,363) $ 354 Less: Net income allocated to participating securities — — — (1) Net income (loss) attributable to common stock, net of participating securities (3,778) (912) (14,363) 353 Weighted average number of basic shares 929.3 845.7 913.9 781.1 Net income (loss) attributable to common stockholders per share—basic $ (4.07) $ (1.08) $ (15.72) $ 0.45 Net income (loss) attributable to common stock, net of participating securities (3,778) (912) (14,363) 353 Weighted-average number of basic shares 929.3 845.7 913.9 781.1 Dilutive securities — — — 1.1 Total diluted weighted-average common shares 929.3 845.7 913.9 782.2 Net income (loss) attributable to common stockholders per share—diluted $ (4.07) $ (1.08) $ (15.72) $ 0.45 For the three and nine months ended September 30, 2020, the Berkshire Warrants, Common Stock Warrants, and options covering approximately 200 million shares of Occidental common stock were excluded from the diluted shares as their effect would have been anti-dilutive. PREFERRED STOCK In connection with the Acquisition, Occidental issued 100,000 shares of series A preferred stock (the Preferred Stock), having a face value of $100,000 per share. Dividends on the Preferred Stock accrue on the face value at a rate per annum of 8 percent, but will be paid only when, as and if declared by Occidental’s Board of Directors. The Board of Directors will assess market conditions and Occidental's financial position on a quarterly basis to determine whether the dividend on the Preferred Stock will be paid in shares of common stock, in cash or a combination of shares of common stock and cash. At any time, when such dividends have not been paid in full, the unpaid amounts will accrue dividends, compounded quarterly, at a rate per annum of 9 percent. Following the payment in full of any accrued but unpaid dividends, the dividend rate will remain at 9 percent per annum. If preferred dividends are not paid in full, Occidental is prohibited from paying dividends on common stock. On October 15, 2020, Occidental paid $200 million cash in Preferred Stock dividends. In March and June 2020, the Board of Directors elected to declare its quarterly dividend on the Preferred Stock in shares of common stock. In accordance with the Certificate of Designations, the number of shares issued was calculated based on 90 percent of the average of the volume weighted average price over each of the 10 consecutive trading days following the dividend declaration date. In April and July 2020, Occidental issued approximately 17.3 million and 11.6 million shares, respectively, of common stock to the holders of the Preferred Stock. COMMON STOCK WARRANTS On June 26, 2020, the Board of Directors declared a distribution of warrants to holders of Occidental common stock, at a rate of 0.125 warrants per share of Occidental common stock (the Common Stock Warrants). Occidental issued approximately 116 million Common Stock Warrants on August 3, 2020, to holders of record of outstanding shares of Occidental’s common stock as of the close of business on July 6, 2020, and pursuant to Occidental’s outstanding equity-based incentive awards in connection with anti-dilution adjustments resulting from such distribution. The Common Stock Warrants have an exercise price of $22.00 per share and will expire on August 3, 2027. The Common Stock Warrants are listed on the New York Stock Exchange and trade under the symbol "OXY WS". The Common Stock Warrants were measured at fair value on the declaration date using the Black-Scholes option model and were classified as equity in "Additional paid-in capital". The following level 2 inputs were used in the Black-Scholes option model: the expected life of the Common Stock Warrants, a volatility factor and the exercise price. The expected life is based on the estimated term of the Common Stock Warrants, the volatility factor is based on historical volatilities of Occidental common stock and the exercise of $22.00 per share of Occidental common stock. As of the declaration date, the fair value of the Common Stock Warrants was determined to be $767 million. |
Industry Segments
Industry Segments | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Industry Segments | NOTE 14 - SEGMENTS Occidental conducts its operations through three segments: (1) oil and gas (2) chemical and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-related costs and unallocated corporate expenses are included under Corporate and Eliminations. 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 table presents Occidental’s industry segments: millions Oil and Gas (a) Chemical Midstream and Marketing (b) Corporate and Eliminations (c) Total Three months ended September 30, 2020 Net sales $ 2,989 $ 937 $ 364 $ (182) $ 4,108 Income (loss) from continuing operations before income taxes $ (1,072) $ 178 $ (2,791) $ (373) $ (4,058) Income tax benefit (d) — — — 403 403 Income (loss) from continuing operations $ (1,072) $ 178 $ (2,791) $ 30 $ (3,655) Three months ended September 30, 2019 Net sales $ 3,993 $ 1,071 $ 1,163 $ (368) $ 5,859 Income (loss) from continuing operations before income taxes $ 268 $ 207 $ 400 $ (1,449) $ (574) Income tax expense — — — (163) (163) Income (loss) from continuing operations $ 268 $ 207 $ 400 $ (1,612) $ (737) millions Oil and Gas (a) Chemical Midstream and Marketing (b) Corporate and Eliminations (c) Total Nine months ended September 30, 2020 Net sales $ 10,089 $ 2,745 $ 1,358 $ (543) $ 13,649 Income (loss) from continuing operations before income taxes $ (8,570) $ 472 $ (4,085) $ (2,097) $ (14,280) Income tax benefit (d) — — — 1,896 1,896 Income (loss) from continuing operations $ (8,570) $ 472 $ (4,085) $ (201) $ (12,384) Nine months ended September 30, 2019 Net sales $ 9,062 $ 3,128 $ 2,888 $ (795) $ 14,283 Income (loss) from continuing operations before income taxes $ 1,478 $ 680 $ 1,010 $ (1,945) $ 1,223 Income tax expense — — — (694) (694) Income (loss) from continuing operations $ 1,478 $ 680 $ 1,010 $ (2,639) $ 529 (a) Includes $795 million in net asset sale losses for the three and nine months ended September 30, 2020. Additionally, for the nine months ended September 30, 2020, includes $7.0 billion related to asset impairments and other charges partially offset by a $1.1 billion gain on the oil collars and calls. (b) Includes $2.7 billion of other-than-temporary impairment of WES equity investment for the three and nine months ended September 30, 2020. Additionally, for the nine months ended September 30, 2020, includes $1.4 billion of impairments related to the write-off of goodwill and a loss from an equity investment related to WES's write-off of its goodwill. (c) Includes $302 million in expenses related to Anadarko acquisition-related costs and a $577 million loss on interest rate swaps for the nine months ended September 30, 2020. (d) Includes a valuation allowance on tax assets of $37 million for the three and nine months ended September 30, 2020. |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Discontinued Operations | DISCONTINUED OPERATIONS In connection with the Acquisition, Occidental entered into a purchase and sale agreement with TOTAL S.A. (Total) to sell all of the assets, liabilities, businesses, and operations of Anadarko's operations in Algeria, Ghana, Mozambique and South Africa. Total and Occidental completed the sale of the Mozambique assets in September 2019 and the South Africa assets in January 2020. In April 2020, subsequent to communications with Algerian government officials, Occidental determined that the sale of the Algeria operations to Total would not be consummated, and the decision was made to continue to operate within Algeria. As a result, as of the second quarter of 2020, Occidental no longer classified the Algeria operations as a held for sale asset in discontinued operations and reclassified prior periods to reflect the Algeria operations as continuing operations, see Note 3 - Di vestiture s and Other Transactions for the impact on prior periods. In addition, in the second quarter 2020, Occidental recorded a $931 million impairment to remeasure the Algeria oil and gas properties to their fair value, which was lower than the carrying amount as if Depreciation, Depletion and Amortization (DD&A) were recorded from the date of the Acquisition. The fair value of the oil and gas properties was measured based on the income approach, see Note 7 - Fair Value Measurements for a description of inputs and assumptions utilized. In May 2020, Occidental and Total mutually agreed to execute a waiver of the obligation to purchase and sell the Ghana assets, so that Occidental could begin marketing the sale of the Ghana assets to other third parties. Occidental is currently marketing the Ghana assets. The assets and liabilities for Ghana remain presented as held for sale at September 30, 2020. Occidental recorded an after-tax impairment of $1.4 billion in the second quarter 2020 to reflect the held for sale assets at their fair value less costs to sell based on the income approach, refer to Note 7 - Fair Value Measurements . The results of operations of Ghana continue to be presented as discontinued operations, see Note 3 - Di vestiture s and Other Transactions . Unless otherwise indicated, information presented in the Notes to the Consolidated Condensed Financial Statements relates only to Occidental's continuing operations. Information related to discontinued operations is included in Note 3 - Di vestiture s and Other Transactions , and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Condensed Financial Statements. |
Cash Equivalents and Restricted Cash Equivalents | Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. |
Accounting and Disclosure Changes | NOTE 2 - ACCOUNTING AND DISCLOSURE CHANGES In January 2020, Occidental adopted Accounting Standards Update (ASU) 2016-13 Financial Instruments - Credit Losses (Topic 326). The new standard makes significant changes to the accounting for credit losses on financial assets and disclosures regarding credit losses. For trade receivables, loans and held-to-maturity debt securities, entities will be required to estimate lifetime expected credit losses. This will result in the earlier recognition of credit losses than the current incurred-loss model. The acceleration of the recognition of losses is more material for entities whose receivables and other held-to-maturity debt investments are (1) long dated and (2) with less credit worthy counterparties. The vast majority of Occidental's receivables are short dated with maturities of less than 60 days with creditworthy counterparties, including refiners, pipelines and resellers. Given Occidental’s continued effort to maintain a strong credit portfolio, there have been no negative indications regarding the collectability of these receivables as of the date of this filing. Therefore, adoption of this standard has no material impact for the quarter. Occidental will continue to assess the risk to its receivables in the future. |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, respectively. millions 2020 2019 Cash and cash equivalents $ 1,896 $ 4,840 Restricted cash and restricted cash equivalents 51 467 Cash and restricted cash included in assets held for sale 113 3 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 14 55 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 2,074 $ 5,365 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2020 and 2019, respectively. millions 2020 2019 Cash and cash equivalents $ 1,896 $ 4,840 Restricted cash and restricted cash equivalents 51 467 Cash and restricted cash included in assets held for sale 113 3 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 14 55 Cash, cash equivalents, restricted cash and restricted cash equivalents $ 2,074 $ 5,365 |
Summary of related-party transactions | millions Three months ended September 30, 2020 Nine months ended September 30, 2020 Sales $ 46 $ 165 Purchases $ 164 $ 474 Transportation, gathering and other fees paid $ 258 $ 804 |
Divestitures and Other Transa_2
Divestitures and Other Transactions (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | |
Summary of Revenues, Costs and Assets Held for Sale of Discontinued Operations | The following table presents the amounts previously reported in discontinued operations, net of income taxes, which was reclassified to continuing operations, in the six months ended June 30, 2020, as a result of Occidental's decision to operate in Algeria. millions Six months ended June 30, 2020 Three and nine months ended September 30, 2019 Revenues and other income Net sales $ 319 $ 172 Costs and other deductions Oil and gas lease operating expense 44 12 Transportation expense 14 4 Taxes other than on income 48 46 Depreciation, depletion and amortization 110 61 Impairment upon reclassification to held for use 931 — Other 10 2 Total costs and other deductions 1,157 125 Income (losses) before income taxes (838) 47 Income tax expense (95) (47) Net income of Algeria operations, after taxes $ (933) $ — The following table presents the amounts previously reported in the Consolidated Condensed Balance Sheets as held for sale related to Algeria that were subsequently reclassified as of December 31, 2019: millions December 31, 2019 Current assets $ 249 Property, plant and equipment, net 1,761 Long-term receivables and other assets, net 146 Total Assets $ 2,156 Current liabilities $ 188 Non-current liabilities 104 Total Liabilities $ 292 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of reconciliation of revenue from customers to total net sales | The following table shows a reconciliation of revenue from customers to total net sales for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, millions 2020 2019 2020 2019 Revenue from customers $ 4,018 $ 5,403 $ 12,576 $ 12,569 All other revenues (a) 90 456 1,073 1,714 Net sales $ 4,108 $ 5,859 $ 13,649 $ 14,283 (a) Includes net marketing derivatives, oil collars and calls, and chemical exchange contracts. |
Schedule of revenue from customers by segment, product, and geographical area | Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale. millions United States Middle East / Africa Latin America Other International Eliminations Total Three months ended September 30, 2020 Oil and Gas Oil $ 1,784 $ 397 $ 138 $ — $ — $ 2,319 NGL 252 53 — — — 305 Gas 155 77 3 — — 235 Other 23 — — — — 23 Segment total $ 2,214 $ 527 $ 141 $ — $ — $ 2,882 Chemical $ 888 $ — $ 33 $ 18 $ — $ 939 Midstream and Marketing Gas processing $ 89 $ 73 $ — $ — $ — $ 162 Marketing 110 — — 62 — 172 Power and other 45 — — — — 45 Segment total $ 244 $ 73 $ — $ 62 $ — $ 379 Eliminations $ — $ — $ — $ — $ (182) $ (182) Consolidated $ 3,346 $ 600 $ 174 $ 80 $ (182) $ 4,018 millions United States Middle East/Africa Latin America Other International Eliminations Total Three months ended September 30, 2019 Oil and Gas Oil $ 2,453 $ 852 $ 177 $ — $ — $ 3,482 NGL 177 66 — — — 243 Gas 125 78 5 — — 208 Other (18) 3 — — — (15) Segment total $ 2,737 $ 999 $ 182 $ — $ — $ 3,918 Chemical $ 1,009 $ — $ 36 $ 16 $ — $ 1,061 Midstream and Marketing Gas processing $ 93 $ 81 $ — $ — $ — $ 174 Marketing 157 — — 37 — 194 Power and other 41 — — — — 41 Segment total $ 291 $ 81 $ — $ 37 $ — $ 409 WES Midstream (a) $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (368) $ (368) Consolidated $ 4,420 $ 1,080 $ 218 $ 53 $ (368) $ 5,403 (a) Occidental and WES executed several agreements to allow WES to operate as an independent midstream company resulting in Occidental's loss of control on December 31, 2019. millions United States Middle East / Africa Latin America Other International Eliminations Total Nine months ended September 30, 2020 Oil and Gas Oil $ 5,705 $ 1,426 $ 353 $ — $ — $ 7,484 NGL 592 158 — — — 750 Gas 476 239 12 — — 727 Other 54 1 — — — 55 Segment total $ 6,827 $ 1,824 $ 365 $ — $ — $ 9,016 Chemical $ 2,591 $ — $ 101 $ 47 $ — $ 2,739 Midstream and Marketing Gas processing $ 261 $ 215 $ — $ — $ — $ 476 Marketing 655 — — 163 — 818 Power and other 70 — — — — 70 Segment total $ 986 $ 215 $ — $ 163 $ — $ 1,364 Eliminations $ — $ — $ — $ — $ (543) $ (543) Consolidated $ 10,404 $ 2,039 $ 466 $ 210 $ (543) $ 12,576 millions United States Middle East/Africa Latin America Other International Eliminations Total Nine months ended September 30, 2019 Oil and Gas Oil $ 5,105 $ 2,435 $ 524 $ — $ — $ 8,064 NGL 339 199 — — — 538 Gas 180 233 14 — — 427 Other (40) (2) — — — (42) Segment total $ 5,584 $ 2,865 $ 538 $ — $ — $ 8,987 Chemical $ 2,937 $ — $ 119 $ 53 $ — $ 3,109 Midstream and Marketing Gas processing $ 302 $ 272 $ — $ — $ — $ 574 Marketing 162 — — 37 — 199 Power and other 112 — — — — 112 Segment total $ 576 $ 272 $ — $ 37 $ — $ 885 WES Midstream (a) $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (795) $ (795) Consolidated $ 9,480 $ 3,137 $ 657 $ 90 $ (795) $ 12,569 (a) Occidental and WES executed several agreements to allow WES to operate as an independent midstream company resulting in Occidental's loss of control on December 31, 2019. |
Schedule of expected revenue recognition from satisfaction of performance obligations | As a result, the following table represents a small portion of Occidental's expected future consolidated revenues, as future revenue from the sale of most products and services is dependent on future production or variable customer volume and variable commodity prices for that volume: millions Remainder of 2020 $ 38 2021 114 2022 9 2023 9 2024 9 Thereafter 85 Total $ 264 |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: millions September 30, 2020 December 31, 2019 Raw materials $ 63 $ 75 Materials and supplies 885 974 Finished goods 753 572 1,701 1,621 Revaluation to LIFO (41) (40) Total $ 1,660 $ 1,581 |
Derivatives (Tables)
Derivatives (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | Occidental had the following collars and calls outstanding at September 30, 2020: Collars and Calls, not designated as hedges 2020 Settlement - oil Three-way collars (Oil MMBBL) 32.2 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement - oil Call options sold (Oil MMBBL) 127.8 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 2021 Settlement - natural gas Natural Gas Collars (millions of MMBTU) 182.5 Volume weighted average price per MMBTU (NYMEX) Ceiling sold price (call) $ 3.61 Floor purchased price (put) $ 2.50 Occidental had the following outstanding interest rate swaps at September 30, 2020: millions, except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 400 September 2016 - 2046 September 2021 6.348 % $ 350 September 2017 - 2047 September 2021 6.662 % $ 275 September 2016 - 2046 September 2022 6.709 % $ 450 September 2017 - 2047 September 2023 6.445 % |
Summary of net sales related to the outstanding commodity derivative instruments | The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments. September 30, 2020 December 31, 2019 Crude Oil Commodity Contracts Volume (MMBBL) (5) 55 Natural Gas Commodity Contracts Volume (Bcf) (111) (128) |
Gross and net fair values of outstanding derivatives | The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets. millions Fair Value Measurements Using Netting (a) Total Fair Value Balance Sheet Classifications Level 1 Level 2 Level 3 September 30, 2020 Collars and Call Options Other current assets $ — $ 269 $ — $ — $ 269 Deferred credits and other liabilities - other — (18) — — (18) Marketing Derivatives Other current assets 1,162 37 — (1,194) 5 Long-term receivables and other assets, net 77 2 — (77) 2 Accrued liabilities (1,180) (49) — 1,194 (35) Deferred credits and other liabilities - other (77) — — 77 — Interest Rate Swaps Accrued liabilities — (1,011) — — (1,011) Deferred credits and other liabilities - other — (894) — — (894) December 31, 2019 Collars and Call Options Other current assets $ — $ 92 $ — $ — $ 92 Deferred credits and other liabilities - other — (160) — — (160) Marketing Derivatives Other current assets 945 79 — (973) 51 Long-term receivables and other assets, net 4 12 — (4) 12 Accrued liabilities (1,008) (44) — 973 (79) Deferred credits and other liabilities - other (4) (1) — 4 (1) Interest Rate Swaps Other current assets — 5 — — 5 Long-term receivables and other assets, net — 5 — — 5 Accrued liabilities — (657) — — (657) Deferred credits and other liabilities - other — (776) — — (776) Berkshire Warrants (b) Deferred credits and other liabilities - other — (107) — — (107) (a) These amounts do not include collateral. (b) Berkshire Warrants were reclassified to equity on May 29, 2020. |
Schedule of Gains and Losses on Derivatives | The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations: millions Three months ended September 30, Nine months ended September 30, Income Statement Classification 2020 2019 2020 2019 Collars and Calls Net sales $ 110 $ 75 $ 1,067 $ 75 Marketing Derivatives Net sales (a) (18) 91 — (119) Interest Rate Swaps Gains (losses) on interest rate swaps and warrants, net 88 (53) (577) (53) Berkshire Warrants Gains on interest rate swaps and warrants, net (b) $ — $ 20 $ 5 $ 20 (a) Includes derivative and non-derivative marketing activity. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following tables provide fair value measurement information for embedded derivatives that are measured on a recurring basis: millions Fair Value Measurements Using Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair As of September 30, 2020 Accrued liabilities $ — $ (79) $ — $ — $ (79) Deferred credits and other liabilities - other — (19) — — (19) As of December 31, 2019 Accrued liabilities $ — $ (40) $ — $ — $ (40) Deferred credits and other liabilities - other — (49) — — (49) |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | The following table summarizes Occidental's outstanding debt, including finance lease liabilities: millions September 30, 2020 December 31, 2019 Total borrowings at face value $ 37,511 $ 37,401 Adjustments to book value: Unamortized premium, net 765 914 Debt issuance costs (144) (125) Long-term finance leases 292 347 Current finance leases 33 51 Total debt and finance leases 38,457 38,588 Less current maturities of long-term debt and financing leases (2,558) (51) Long-term debt, net $ 35,899 $ 38,537 The following table summarizes Occidental's debt issuances, repurchases, repayments and exchanges for the nine months ended September 30, 2020: millions Borrowings at face value Total borrowings at face value as of December 31, 2019 $ 37,401 Issuance of July 2020 Notes: (a) 8.000% senior notes due 2025 500 8.500% senior notes due 2027 500 8.875% senior notes due 2030 1,000 July tender and purchase: 4.100% senior notes due February 2021 (943) Variable rate bonds due February 2021 (473) 4.850% senior notes due March 2021 (530) 2.600% senior notes due August 2021 (51) Issuance of August 2020 Notes: (b) 5.875% senior notes due 2025 900 6.375% senior notes due 2028 600 6.625% senior notes due 2030 1,500 August and September tender and purchase: 4.100% senior Notes due February 2021 (139) Variable rate bonds due August 2021 (122) 2.600% senior Notes due August 2021 (1,099) Variable rate bonds due August 2022 (448) 2.600% senior Notes due April 2022 (171) 2.700% senior Notes due August 2022 (102) 2.700% senior Notes due February 2023 (52) August WES exchange: 6.500% note payable to WES due 2038 (260) September Term Loan Repayment: 2-year variable rate Term Loan due 2021 (500) Total borrowings at face value as of September 30, 2020 $ 37,511 (a) Interest on the July notes will be paid semi-annually in arrears on July 15 and January 15 of each year, commencing on January 15, 2021. (b) Interest on the August notes will be paid semi-annually on March 1 and September 1 of each year, commencing on March 1, 2021. |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Lease Related Assets and Liabilities | The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2020, and December 31, 2019: millions Balance sheet location September 30, 2020 December 31, 2019 Assets: Operating Operating lease assets $ 1,196 $ 1,411 Finance Property, plant and equipment 329 397 Total lease assets $ 1,525 $ 1,808 Liabilities: Current Operating Current operating lease liabilities $ 459 $ 579 Finance Current maturities of long-term debt 33 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 786 872 Finance Long-term debt, net 292 347 Total lease liabilities $ 1,570 $ 1,849 |
Schedule of Operating Lease Maturities | At September 30, 2020, Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2020 $ 117 $ 7 $ 124 2021 454 35 489 2022 182 34 216 2023 110 32 142 2024 89 30 119 Thereafter 480 261 741 Total lease payments 1,432 399 1,831 Less: Interest (187) (74) (261) Total lease liabilities $ 1,245 $ 325 $ 1,570 (a) The weighted-average remaining lease term is 6.0 years and the weighted-average discount rate is 4.53%. |
Schedule of Finance Lease Maturities | At September 30, 2020, Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2020 $ 117 $ 7 $ 124 2021 454 35 489 2022 182 34 216 2023 110 32 142 2024 89 30 119 Thereafter 480 261 741 Total lease payments 1,432 399 1,831 Less: Interest (187) (74) (261) Total lease liabilities $ 1,245 $ 325 $ 1,570 (a) The weighted-average remaining lease term is 6.0 years and the weighted-average discount rate is 4.53%. |
Schedule of Lease Costs | The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities: millions Three months ended September 30, Nine months ended September 30, Lease cost classification (a) 2020 2019 2020 2019 Operating lease costs (b) Property, plant and equipment, net $ 24 $ 139 $ 153 $ 321 Cost of sales 131 135 417 273 Selling, general and administrative expenses 37 26 80 61 Finance lease cost: Amortization of ROU assets 5 5 14 11 Interest on lease liabilities 3 1 9 1 Total lease cost $ 200 $ 306 $ 673 $ 667 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $42 million and $146 million for the three and nine months ended September 30, 2020, respectively, and $139 million and $295 million for the three and nine months ended September 30, 2019, respectively. Includes variable lease cost of $11 million and $73 million for the three and nine months ended September 30, 2020, respectively, and $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. Nine months ended September 30, millions 2020 2019 Operating cash flows $ 401 $ 164 Investing cash flows $ 59 $ 83 Financing cash flows $ 15 $ 11 |
Environmental Liabilities and_2
Environmental Liabilities and Expenditures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of current and non-current environmental remediation reserves by categories of sites | The following table presents Occidental’s current and non-current environmental remediation liabilities as of September 30, 2020. The current portion, $160 million, is included in accrued liabilities and the non-current portion, $975 million, in deferred credits and other liabilities-environmental remediation liabilities. Occidental’s environmental remediation sites are grouped into four categories: sites listed or proposed for listing by the U.S. Environmental Protection Agency (EPA) on the CERCLA National Priorities List (NPL) and three categories of non-NPL sites—third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. millions, except number of sites Number of Sites Remediation Balance NPL sites 35 $ 451 Third-party sites 72 284 Occidental-operated sites 17 142 Closed or non-operated Occidental sites 50 258 Total 174 $ 1,135 |
Retirement and Postretirement_2
Retirement and Postretirement Benefits Plans (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Retirement and Postretirement Benefit Plan Costs | The following table contains a summary of Occidental's retirement and postretirement benefits plan costs for the three and nine months ended September 30, 2020 and 2019: Three months ended September 30, Nine months ended September 30, millions 2020 2019 2020 2019 Net gains related to settlement, curtailment and special termination benefits (a) $ 5 $ 24 $ 121 $ 24 Net periodic benefit costs related to pension benefits excluding settlement, curtailment and special termination benefits — (b) 15 22 19 Net periodic benefit costs related to postretirement benefits 18 19 56 48 Contributions to qualified and supplemental plans $ 30 $ 7 $ 132 $ 8 (a) Net gains related to settlement, curtailment and special termination benefits for the three and nine months ended September 30, 2020 and 2019 primarily relate to a separation program initiated in conjunction with the Acquisition and the freezing of benefit accruals for Anadarko employees. (b) Net periodic benefit costs related to pension benefits excluding settlement, curtailment and special termination benefits were immaterial for the three months ended September 30, 2020. |
Earnings Per Share And Stockh_2
Earnings Per Share And Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted net income (loss) attributable to common stockholders per share: Three months ended Nine months ended millions except per-share amounts 2020 2019 2020 2019 Net income (loss) from continuing operations $ (3,655) $ (737) $ (12,384) $ 529 Income (loss) from discontinued operations 80 (15) (1,335) (15) Net income (loss) (3,575) (752) (13,719) 514 Less: Net income attributable to noncontrolling interest — (42) — (42) Less: Preferred stock dividends (203) (118) (644) (118) Net income (loss) attributable to common stock $ (3,778) $ (912) $ (14,363) $ 354 Less: Net income allocated to participating securities — — — (1) Net income (loss) attributable to common stock, net of participating securities (3,778) (912) (14,363) 353 Weighted average number of basic shares 929.3 845.7 913.9 781.1 Net income (loss) attributable to common stockholders per share—basic $ (4.07) $ (1.08) $ (15.72) $ 0.45 Net income (loss) attributable to common stock, net of participating securities (3,778) (912) (14,363) 353 Weighted-average number of basic shares 929.3 845.7 913.9 781.1 Dilutive securities — — — 1.1 Total diluted weighted-average common shares 929.3 845.7 913.9 782.2 Net income (loss) attributable to common stockholders per share—diluted $ (4.07) $ (1.08) $ (15.72) $ 0.45 |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of industry segments | The following table presents Occidental’s industry segments: millions Oil and Gas (a) Chemical Midstream and Marketing (b) Corporate and Eliminations (c) Total Three months ended September 30, 2020 Net sales $ 2,989 $ 937 $ 364 $ (182) $ 4,108 Income (loss) from continuing operations before income taxes $ (1,072) $ 178 $ (2,791) $ (373) $ (4,058) Income tax benefit (d) — — — 403 403 Income (loss) from continuing operations $ (1,072) $ 178 $ (2,791) $ 30 $ (3,655) Three months ended September 30, 2019 Net sales $ 3,993 $ 1,071 $ 1,163 $ (368) $ 5,859 Income (loss) from continuing operations before income taxes $ 268 $ 207 $ 400 $ (1,449) $ (574) Income tax expense — — — (163) (163) Income (loss) from continuing operations $ 268 $ 207 $ 400 $ (1,612) $ (737) millions Oil and Gas (a) Chemical Midstream and Marketing (b) Corporate and Eliminations (c) Total Nine months ended September 30, 2020 Net sales $ 10,089 $ 2,745 $ 1,358 $ (543) $ 13,649 Income (loss) from continuing operations before income taxes $ (8,570) $ 472 $ (4,085) $ (2,097) $ (14,280) Income tax benefit (d) — — — 1,896 1,896 Income (loss) from continuing operations $ (8,570) $ 472 $ (4,085) $ (201) $ (12,384) Nine months ended September 30, 2019 Net sales $ 9,062 $ 3,128 $ 2,888 $ (795) $ 14,283 Income (loss) from continuing operations before income taxes $ 1,478 $ 680 $ 1,010 $ (1,945) $ 1,223 Income tax expense — — — (694) (694) Income (loss) from continuing operations $ 1,478 $ 680 $ 1,010 $ (2,639) $ 529 (a) Includes $795 million in net asset sale losses for the three and nine months ended September 30, 2020. Additionally, for the nine months ended September 30, 2020, includes $7.0 billion related to asset impairments and other charges partially offset by a $1.1 billion gain on the oil collars and calls. (b) Includes $2.7 billion of other-than-temporary impairment of WES equity investment for the three and nine months ended September 30, 2020. Additionally, for the nine months ended September 30, 2020, includes $1.4 billion of impairments related to the write-off of goodwill and a loss from an equity investment related to WES's write-off of its goodwill. (c) Includes $302 million in expenses related to Anadarko acquisition-related costs and a $577 million loss on interest rate swaps for the nine months ended September 30, 2020. (d) Includes a valuation allowance on tax assets of $37 million for the three and nine months ended September 30, 2020. |
General (Details)
General (Details) - USD ($) shares in Millions, $ in Millions | Dec. 30, 2019 | Aug. 31, 2020 | Apr. 30, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 |
Noncontrolling Interest [Line Items] | ||||||||||||
Anadarko acquisition-related costs | $ (5) | $ (924) | $ (302) | $ (974) | ||||||||
Impairment and related charges | $ 8,600 | |||||||||||
Income taxes paid | 375 | 827 | ||||||||||
Domestic tax refunds | 223 | 5 | ||||||||||
Interest paid | 1,300 | 611 | ||||||||||
Cash and cash equivalents | 1,896 | 4,840 | 1,896 | 4,840 | $ 3,032 | |||||||
Restricted cash and restricted cash equivalents | 51 | 467 | 51 | 467 | 485 | |||||||
Cash and restricted cash included in assets held for sale | 113 | 3 | 113 | 3 | ||||||||
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | 14 | 55 | 14 | 55 | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents | 2,074 | 5,365 | 2,074 | 5,365 | 3,574 | $ 3,033 | ||||||
Equity method investment amounts | 3,125 | 3,125 | 6,389 | |||||||||
Loss from equity investment | (123) | $ (104) | (183) | (274) | ||||||||
Note payable retired | 260 | $ 0 | ||||||||||
WES | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Loss on non-cash transaction | 46 | |||||||||||
Common units exchanged to retire note payable | 27.9 | |||||||||||
Note payable retired | $ 260 | |||||||||||
Sales | 46 | 165 | ||||||||||
WES | Purchases | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Purchases | 164 | 474 | ||||||||||
WES | Transportation, gathering and other fees paid | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Purchases | 258 | $ 804 | ||||||||||
WES Midstream segment | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Non-voting general partner interest | 2.00% | |||||||||||
Limited partner interest | 51.50% | |||||||||||
Effective economic interest | 53.50% | |||||||||||
Ownership interest, intended reduction | 50.00% | |||||||||||
Pro-rata interest in net assets | 370 | $ 370 | ||||||||||
Public Ownership | WES Midstream segment | Variable Interest Entity, Primary Beneficiary | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Limited partner interest | 44.60% | |||||||||||
WES Midstream segment | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Equity method investment amounts | 1,900 | 1,900 | $ 5,100 | |||||||||
Loss from equity investment | $ 440 | |||||||||||
Impairment of equity method investment | 2,700 | |||||||||||
Algeria Africa Assets | Discontinued Operations, Disposed of by Sale | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Impairment and related charges | $ 931 | |||||||||||
Ghana Assets | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Impairment and related charges | $ 1,400 | 1,400 | ||||||||||
Ghana Assets | Discontinued Operations, Disposed of by Sale | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Impairment and related charges | $ 1,400 | |||||||||||
Anadarko | ||||||||||||
Noncontrolling Interest [Line Items] | ||||||||||||
Anadarko acquisition-related costs | (302) | |||||||||||
Domestic tax refunds | $ 881 | $ 881 |
Divestitures and Other Transa_3
Divestitures and Other Transactions - Narrative (Details) a in Millions, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||
Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Sep. 30, 2020USD ($) | Aug. 31, 2020USD ($)a | Dec. 31, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment and related charges | $ 8,600 | |||||
Subsequent Event | Variable rate bonds due February 2021 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Maturity of notes | 2 years | |||||
Ghana Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment and related charges | $ 1,400 | $ 1,400 | ||||
Discontinued Operations, Disposed of by Sale | Wyoming, Colorado, and Utah Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Area of land sold (acres) | a | 4.5 | |||||
Fee surface sold (acres) | a | 1 | |||||
Agreement consideration | $ 1,330 | |||||
Discontinued Operations, Disposed of by Sale | Wyoming, Colorado, and Utah Assets | Subsequent Event | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Net proceeds from sale | $ 1,000 | |||||
Liabilities satisfied associated with future royalties | 329 | |||||
Loss on sale of assets | 431 | |||||
Discontinued Operations, Disposed of by Sale | Columbia Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Loss associated with remeasuring assets to fair value | 356 | |||||
Discontinued Operations, Disposed of by Sale | Columbia Assets | Subsequent Event | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, net | $ 587 | |||||
Discontinued Operations, Disposed of by Sale | Ghana Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Impairment and related charges | 1,400 | |||||
Discontinued Operations, Held-for-sale | Wyoming, Colorado, and Utah Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, net | 1,400 | 1,400 | ||||
Total Liabilities | 338 | 338 | ||||
Discontinued Operations, Held-for-sale | Ghana Assets | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Property, plant and equipment, net | 1,400 | 1,400 | $ 3,600 | |||
Deferred income taxes presented in liabilities held for sale | $ 750 | $ 750 | ||||
Impairment and related charges | $ 2,200 |
Divestitures and Other Transa_4
Divestitures and Other Transactions - Summary of Revenues and Costs from Discontinued Operations (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | |
Costs and other deductions | |||||
Net income of Algeria operations, after taxes | $ 80 | $ (15) | $ (1,335) | $ (15) | |
Algeria Africa Assets | Discontinued Operations, Disposed of by Sale | |||||
Revenues and other income | |||||
Net sales | 172 | $ 319 | 172 | ||
Costs and other deductions | |||||
Oil and gas lease operating expense | 12 | 44 | 12 | ||
Transportation expense | 4 | 14 | 4 | ||
Taxes other than on income | 46 | 48 | 46 | ||
Depreciation, depletion and amortization | 61 | 110 | 61 | ||
Impairment upon reclassification to held for use | 0 | 931 | 0 | ||
Other | 2 | 10 | 2 | ||
Total costs and other deductions | 125 | 1,157 | 125 | ||
Income (losses) before income taxes | 47 | (838) | 47 | ||
Income tax expense | (47) | (95) | (47) | ||
Net income of Algeria operations, after taxes | $ 0 | $ (933) | $ 0 |
Divestitures and Other Transa_5
Divestitures and Other Transactions - Summary of Assets Held for Sale (Details) - Algeria Africa Assets - Discontinued Operations, Disposed of by Sale $ in Millions | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Current assets | $ 249 |
Property, plant and equipment, net | 1,761 |
Long-term receivables and other assets, net | 146 |
Total Assets | 2,156 |
Current liabilities | 188 |
Non-current liabilities | 104 |
Total Liabilities | $ 292 |
Revenue - Impact of Adoption (D
Revenue - Impact of Adoption (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net | $ 2,083 | $ 6,373 |
Revenue - Reconciliation (Detai
Revenue - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue from customers | $ 4,018 | $ 5,403 | $ 12,576 | $ 12,569 |
All other revenue | 90 | 456 | 1,073 | 1,714 |
Revenues, Total | $ 4,108 | $ 5,859 | $ 13,649 | $ 14,283 |
Revenue - Disaggregation of rev
Revenue - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of revenue | ||||
Revenue from customers | $ 4,018 | $ 5,403 | $ 12,576 | $ 12,569 |
United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 3,346 | 4,420 | 10,404 | 9,480 |
Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 600 | 1,080 | 2,039 | 3,137 |
Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 174 | 218 | 466 | 657 |
Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 80 | 53 | 210 | 90 |
Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | (182) | (368) | (543) | (795) |
Eliminations | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 2,882 | 3,918 | 9,016 | 8,987 |
Oil and Gas | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 2,319 | 3,482 | 7,484 | 8,064 |
Oil and Gas | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 305 | 243 | 750 | 538 |
Oil and Gas | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 235 | 208 | 727 | 427 |
Oil and Gas | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 23 | (15) | 55 | (42) |
Oil and Gas | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 2,214 | 2,737 | 6,827 | 5,584 |
Oil and Gas | United States | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 1,784 | 2,453 | 5,705 | 5,105 |
Oil and Gas | United States | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 252 | 177 | 592 | 339 |
Oil and Gas | United States | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 155 | 125 | 476 | 180 |
Oil and Gas | United States | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 23 | (18) | 54 | (40) |
Oil and Gas | Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 527 | 999 | 1,824 | 2,865 |
Oil and Gas | Middle East / Africa | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 397 | 852 | 1,426 | 2,435 |
Oil and Gas | Middle East / Africa | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 53 | 66 | 158 | 199 |
Oil and Gas | Middle East / Africa | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 77 | 78 | 239 | 233 |
Oil and Gas | Middle East / Africa | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 3 | 1 | (2) |
Oil and Gas | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 141 | 182 | 365 | 538 |
Oil and Gas | Latin America | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 138 | 177 | 353 | 524 |
Oil and Gas | Latin America | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Latin America | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 3 | 5 | 12 | 14 |
Oil and Gas | Latin America | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Chemical | ||||
Disaggregation of revenue | ||||
Revenue from customers | 939 | 1,061 | 2,739 | 3,109 |
Chemical | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 888 | 1,009 | 2,591 | 2,937 |
Chemical | Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Chemical | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 33 | 36 | 101 | 119 |
Chemical | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 18 | 16 | 47 | 53 |
Chemical | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 379 | 409 | 1,364 | 885 |
Midstream and Marketing | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 162 | 174 | 476 | 574 |
Midstream and Marketing | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 172 | 194 | 818 | 199 |
Midstream and Marketing | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 45 | 41 | 70 | 112 |
Midstream and Marketing | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 244 | 291 | 986 | 576 |
Midstream and Marketing | United States | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 89 | 93 | 261 | 302 |
Midstream and Marketing | United States | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 110 | 157 | 655 | 162 |
Midstream and Marketing | United States | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 45 | 41 | 70 | 112 |
Midstream and Marketing | Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 73 | 81 | 215 | 272 |
Midstream and Marketing | Middle East / Africa | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 73 | 81 | 215 | 272 |
Midstream and Marketing | Middle East / Africa | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Middle East / Africa | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Latin America | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Latin America | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Latin America | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 62 | 37 | 163 | 37 |
Midstream and Marketing | Other International | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Other International | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 62 | 37 | 163 | 37 |
Midstream and Marketing | Other International | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Eliminations | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Eliminations | Marketing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Midstream and Marketing | Eliminations | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | $ 0 | 0 | $ 0 | 0 |
WES Midstream | ||||
Disaggregation of revenue | ||||
Revenue from customers | 383 | 383 | ||
WES Midstream | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 383 | 383 | ||
WES Midstream | Middle East / Africa | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | $ 0 | $ 0 |
Revenue - Schedule of Expected
Revenue - Schedule of Expected Future Revenue (Details) $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 264 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 38 |
Remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 114 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 9 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 9 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 9 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 85 |
Remaining performance obligation, period |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 63 | $ 75 |
Materials and supplies | 885 | 974 |
Finished goods | 753 | 572 |
Inventories, gross | 1,701 | 1,621 |
Revaluation to LIFO | (41) | (40) |
Total | 1,660 | $ 1,581 |
Inventory [Line Items] | ||
Impairment recognized due to lower than cost or market adjustments | 54 | |
Commodity Inventories | ||
Inventory [Line Items] | ||
Impairment recognized due to lower than cost or market adjustments | $ 76 |
Derivatives - Derivative Instru
Derivatives - Derivative Instruments (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($)MMBbls$ / Barrel | |
Derivative [Line Items] | |
Cash received | $ | $ 643 |
Crude Oil | 2020 Settlement - oil | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | MMBbls | 32.2 |
Crude Oil | 2020 Settlement - oil | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.16 |
Purchase price (dollars per barrel) | 45 |
Crude Oil | 2020 Settlement - oil | Long position | |
Derivative [Line Items] | |
Purchase price (dollars per barrel) | 55 |
Crude Oil | 2021 Settlement - oil | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | MMBbls | 127.8 |
Crude Oil | 2021 Settlement - oil | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.16 |
Gas | 2021 Settlement - oil | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | MMBbls | 182,500,000,000 |
Gas | 2021 Settlement - oil | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 3.61 |
Gas | 2021 Settlement - oil | Long position | |
Derivative [Line Items] | |
Purchase price (dollars per barrel) | 2.50 |
Derivatives - Interest-Rate Der
Derivatives - Interest-Rate Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Debt referenced to LIBOR | $ 38,457 | $ 38,457 | $ 38,588 |
LIBOR | |||
Derivative [Line Items] | |||
Debt referenced to LIBOR | 1,100 | 1,100 | |
Interest Rate Swap, 6.835% | |||
Derivative [Line Items] | |||
Notional Principal Amount | $ 400 | $ 400 | |
Weighted-Average Interest Rate | 6.348% | 6.348% | |
Interest Rate Swap, 6.891% | |||
Derivative [Line Items] | |||
Notional Principal Amount | $ 350 | $ 350 | |
Weighted-Average Interest Rate | 6.662% | 6.662% | |
Interest Rate Swap, 6.570% | |||
Derivative [Line Items] | |||
Notional Principal Amount | $ 275 | $ 275 | |
Weighted-Average Interest Rate | 6.709% | 6.709% | |
Interest Rate Swap, 6.445% | |||
Derivative [Line Items] | |||
Notional Principal Amount | $ 450 | $ 450 | |
Weighted-Average Interest Rate | 6.445% | 6.445% | |
Interest Rate Swaps | |||
Derivative [Line Items] | |||
Net cash payments related to settlements | $ (47) | $ (94) | |
Collateral paid with respect to interest rate swap agreements | $ 37 | $ (283) |
Derivatives - Marketing Derivat
Derivatives - Marketing Derivatives and Warrants (Details) shares in Millions | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 30, 2020$ / Barrel | Sep. 30, 2020$ / MillionCubicFeet | Sep. 30, 2020MMBbls | Sep. 30, 2020Bcf | Dec. 31, 2019$ / Barrel | Dec. 31, 2019$ / MillionCubicFeet | Dec. 31, 2019MMBbls | Dec. 31, 2019Bcf | Jun. 26, 2020$ / sharesshares | May 29, 2020shares | Aug. 08, 2019$ / sharesshares | |
Marketing Derivatives | Not designated as hedging instruments | |||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||||
Weighted average sales price (dollars per barrel) | 41.73 | 2.36 | 60.60 | 2.17 | |||||||
Crude oil | Not designated as hedging instruments | Long position | |||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||||
Outstanding net volumes on derivatives not designated as hedges (mmbls/bcf) | 5 | 111 | 55 | 128 | |||||||
Common Stock | |||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||||
Warrants issued (in shares) | 3.9 | ||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 59.624 | ||||||||||
Additional Paid-in Capital | Reclassification | |||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||||
Warrants issued (in shares) | 103 | ||||||||||
Anadarko | Common Stock | |||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||||
Warrants issued (in shares) | 80 | ||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 62.50 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral deposited with clearinghouses and brokers | $ 15 | |
Initial margin | $ 65 | |
Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral paid netted against derivative liabilities | 388 | 104 |
Other current assets | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | 0 |
Total net fair value, asset | 269 | 92 |
Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (1,194) | (973) |
Total net fair value, asset | 5 | 51 |
Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 5 | |
Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (77) | (4) |
Total net fair value, asset | 2 | 12 |
Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 5 | |
Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (1,194) | (973) |
Total net fair value, liability | (35) | (79) |
Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | 0 |
Total net fair value, liability | (1,011) | (657) |
Deferred credits and other liabilities - other | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | 0 |
Total net fair value, liability | (18) | (160) |
Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (77) | (4) |
Total net fair value, liability | 0 | (1) |
Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | 0 |
Total net fair value, liability | (894) | (776) |
Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | (107) | |
Level 1 | Other current assets | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 1 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 1,162 | 945 |
Level 1 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 1 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 77 | 4 |
Level 1 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 1 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (1,180) | (1,008) |
Level 1 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 1 | Deferred credits and other liabilities - other | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 1 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (77) | (4) |
Level 1 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 1 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 2 | Other current assets | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 269 | 92 |
Level 2 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 37 | 79 |
Level 2 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 5 | |
Level 2 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 2 | 12 |
Level 2 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 5 | |
Level 2 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (49) | (44) |
Level 2 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (1,011) | (657) |
Level 2 | Deferred credits and other liabilities - other | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (18) | (160) |
Level 2 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | (1) |
Level 2 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (894) | (776) |
Level 2 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (107) | |
Level 3 | Other current assets | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 3 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 3 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 3 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 3 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 3 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 3 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 3 | Deferred credits and other liabilities - other | Collars and Call Options | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 3 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 3 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 0 | 0 |
Level 3 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 0 |
Derivatives - Gains and Losses
Derivatives - Gains and Losses on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | $ 88 | $ (33) | $ (573) | $ (33) |
Collars and Call Options | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | 110 | 75 | 1,067 | 75 |
Marketing Derivatives | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | (18) | 91 | 0 | (119) |
Interest Rate Swaps | Gains (losses) on interest rate swaps and warrants, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | 88 | (53) | (577) | (53) |
Warrant | Gains (losses) on interest rate swaps and warrants, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on interest rate swaps and Berkshire warrants, net | $ 0 | $ 20 | $ 5 | $ 20 |
Derivatives - Credit Risk (Deta
Derivatives - Credit Risk (Details) - Not designated as hedging instruments - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Derivative [Line Items] | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed (net of collateral) | $ 35 | $ 787 |
Amount of collateral posted related to derivative instruments with credit-risk-related contingent features | 388 | $ 169 |
Marketing Derivatives | ||
Derivative [Line Items] | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed (net of collateral) | $ 12 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)$ / Barrel$ / MillionCubicFeet | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Embedded derivatives | |||||
Impairment and related charges | $ 8,600 | ||||
Goodwill impairment | $ 1,200 | ||||
Low end of range | |||||
Embedded derivatives | |||||
Operating and capital cost estimates, percentage | 1.00% | ||||
Operating and capital cost estimates (in dollars per barrel) | $ / Barrel | 50 | ||||
High end of range | |||||
Embedded derivatives | |||||
Operating and capital cost estimates, percentage | 2.00% | ||||
Operating and capital cost estimates (in dollars per barrel) | $ / Barrel | 60 | ||||
Crude Oil | |||||
Embedded derivatives | |||||
Sales price (dollars per barrel) | $ / Barrel | 62.42 | ||||
Unweighted arithmetic average price (in dollars per barrel) | $ / Barrel | 59.17 | ||||
Unweighted arithmetic average price, period | 15 years | ||||
Crude Oil | Low end of range | |||||
Embedded derivatives | |||||
Sales price (dollars per barrel) | $ / Barrel | 40 | ||||
Crude Oil | High end of range | |||||
Embedded derivatives | |||||
Sales price (dollars per barrel) | $ / Barrel | 70 | ||||
Natural Gas | |||||
Embedded derivatives | |||||
Unweighted arithmetic average price (in dollars per barrel) | $ / MillionCubicFeet | 3.13 | ||||
Unweighted arithmetic average price, period | 15 years | ||||
Natural Gas | Low end of range | |||||
Embedded derivatives | |||||
Sales price (dollars per barrel) | $ / MillionCubicFeet | 2 | ||||
Natural Gas | High end of range | |||||
Embedded derivatives | |||||
Sales price (dollars per barrel) | $ / MillionCubicFeet | 3.60 | ||||
Oman, Bolivia and the Gulf of Mexico | |||||
Embedded derivatives | |||||
Impairment and related charges | 293 | ||||
Gulf of Mexico | |||||
Embedded derivatives | |||||
Impairment and related charges | $ 1,200 | 241 | |||
Algeria Oil and Gas Proved Properties | |||||
Embedded derivatives | |||||
Impairment and related charges | 900 | ||||
Level 2 | Domestic Onshore Unproved Acreage | |||||
Embedded derivatives | |||||
Impairment and related charges | $ 4,300 | ||||
Level 3 | Measurement Input, Weighted Average Cost of Capital | |||||
Embedded derivatives | |||||
Discount rate | 10.00% | 10.00% | |||
Recurring | Accrued liabilities | |||||
Embedded derivatives | |||||
Netting and Collateral | $ 0 | $ 0 | $ 0 | ||
Recurring | Accrued liabilities | Total Fair Value | |||||
Embedded derivatives | |||||
Embedded derivatives | (79) | (79) | (40) | ||
Recurring | Accrued liabilities | Level 1 | |||||
Embedded derivatives | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Recurring | Accrued liabilities | Level 2 | |||||
Embedded derivatives | |||||
Embedded derivatives | (79) | (79) | (40) | ||
Recurring | Accrued liabilities | Level 3 | |||||
Embedded derivatives | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Recurring | Deferred credits and other liabilities - other | |||||
Embedded derivatives | |||||
Netting and Collateral | 0 | 0 | 0 | ||
Recurring | Deferred credits and other liabilities - other | Total Fair Value | |||||
Embedded derivatives | |||||
Embedded derivatives | (19) | (19) | (49) | ||
Recurring | Deferred credits and other liabilities - other | Level 1 | |||||
Embedded derivatives | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Recurring | Deferred credits and other liabilities - other | Level 2 | |||||
Embedded derivatives | |||||
Embedded derivatives | (19) | (19) | (49) | ||
Recurring | Deferred credits and other liabilities - other | Level 3 | |||||
Embedded derivatives | |||||
Embedded derivatives | 0 | 0 | 0 | ||
Ghana Assets | |||||
Embedded derivatives | |||||
Impairment and related charges | $ 1,400 | $ 1,400 | |||
Ghana Assets | Discontinued Operations, Held-for-sale | |||||
Embedded derivatives | |||||
Impairment and related charges | 2,200 | ||||
Impairment and related charges, net of tax | 1,400 | ||||
Oil and gas segment | |||||
Embedded derivatives | |||||
Impairment and related charges | $ 6,400 | $ 581 | |||
Midstream And Marketing | Anadarko | |||||
Embedded derivatives | |||||
Goodwill | $ 1,200 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Total borrowings at face value | $ 37,511,000,000 | $ 37,401,000,000 |
Unamortized premium, net | 765,000,000 | 914,000,000 |
Debt issuance costs | (144,000,000) | (125,000,000) |
Long-term finance leases | 292,000,000 | 347,000,000 |
Current finance leases | 33,000,000 | 51,000,000 |
Total debt and finance leases | 38,457,000,000 | 38,588,000,000 |
Less current maturities of long-term debt and financing leases | (2,558,000,000) | (51,000,000) |
Long-term debt, net | $ 35,899,000,000 | $ 38,537,000,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) shares in Millions, $ in Millions | 1 Months Ended | 2 Months Ended | 9 Months Ended | |||
Oct. 31, 2020 | Aug. 31, 2020 | Aug. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Long-term Debt | ||||||
Note payable retired | $ 260 | $ 0 | ||||
Total Fair Value | ||||||
Long-term Debt | ||||||
Estimated fair value of debt | 31,500 | $ 38,800 | ||||
Total Fair Value | Level 2 | ||||||
Long-term Debt | ||||||
Estimated fair value of debt | $ 1,600 | |||||
Variable rate bonds due February 2021 | Subsequent Event | ||||||
Long-term Debt | ||||||
Maturity of notes | 2 years | |||||
Debt redeemed | $ 377 | |||||
2-year variable rate Term Loan due 2021 | Subsequent Event | ||||||
Long-term Debt | ||||||
Debt redeemed | 1,000 | |||||
Outstanding term loan | $ 446 | |||||
Low end of range | Issuance Of July And August 2020 Notes | ||||||
Long-term Debt | ||||||
Maturity of notes | 5 years | |||||
Low end of range | Tender Offers July And August 2020 | ||||||
Long-term Debt | ||||||
Maturity of notes | 1 year | |||||
High end of range | Issuance Of July And August 2020 Notes | ||||||
Long-term Debt | ||||||
Maturity of notes | 10 years | |||||
High end of range | Tender Offers July And August 2020 | ||||||
Long-term Debt | ||||||
Maturity of notes | 3 years | |||||
WES | ||||||
Long-term Debt | ||||||
Common units exchanged to retire note payable | 27.9 | |||||
Note payable retired | $ 260 | |||||
Loss on exchange | 46 | |||||
Gain on debt extinguished | $ 76 |
Long-Term Debt - Debt Issuance,
Long-Term Debt - Debt Issuance, Repurchases, Repayments and Exchanges (Details) | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Long-term Debt Rollforward [Roll Forward] | |
Total borrowings at face value as of December 31, 2019 | $ 37,401,000,000 |
Total borrowings at face value as of September 30, 2020 | 37,511,000,000 |
Variable rate bonds due February 2021 | July Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Tender and purchase | (473,000,000) |
Variable rate bonds due February 2021 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Tender and purchase | (122,000,000) |
Variable rate bonds due August 2022 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Tender and purchase | $ (448,000,000) |
6.500% note payable to WES due 2038 | August Exchange | WES | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 6.50% |
Tender and purchase | $ (260,000,000) |
2-year variable rate Term Loan due 2021 | September Repayment | |
Long-term Debt Rollforward [Roll Forward] | |
Tender and purchase | $ (500,000,000) |
Senior Notes | 8.000% senior notes due 2025 | Issuance of July 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 8.00% |
Issuances | $ 500,000,000 |
Senior Notes | 8.500% senior notes due 2027 | Issuance of July 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 8.50% |
Issuances | $ 500,000,000 |
Senior Notes | 8.875% senior notes due 2030 | Issuance of July 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 8.875% |
Issuances | $ 1,000,000,000 |
Senior Notes | 4.100% senior notes due February 2021 | July Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 4.10% |
Tender and purchase | $ (943,000,000) |
Senior Notes | 4.100% senior notes due February 2021 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 4.10% |
Tender and purchase | $ (139,000,000) |
Senior Notes | 4.850% senior notes due March 2021 | July Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 4.85% |
Tender and purchase | $ (530,000,000) |
Senior Notes | 2.600% senior notes due August 2021 | July Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 2.60% |
Tender and purchase | $ (51,000,000) |
Senior Notes | 2.600% senior notes due August 2021 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 2.60% |
Tender and purchase | $ (1,099,000,000) |
Senior Notes | 5.875% senior notes due 2025 | Issuance of August 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 5.875% |
Issuances | $ 900,000,000 |
Senior Notes | 6.375% senior notes due 2028 | Issuance of August 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 6.375% |
Issuances | $ 600,000,000 |
Senior Notes | 6.625% senior notes due 2030 | Issuance of August 2020 Notes | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 6.625% |
Issuances | $ 1,500,000,000 |
Senior Notes | 2.600% senior Notes due April 2022 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 2.60% |
Tender and purchase | $ (171,000,000) |
Senior Notes | 2.700% senior Notes due August 2022 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 2.70% |
Tender and purchase | $ (102,000,000) |
Senior Notes | 2.700% senior Notes due February 2023 | August and September Tender and Purchase | |
Long-term Debt Rollforward [Roll Forward] | |
Interest rate | 2.70% |
Tender and purchase | $ (52,000,000) |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 1,196 | $ 1,411 |
Finance lease agreement | 325 | |
Offshore and onshore drilling rigs | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 56 | |
Compressors | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 155 | |
Storage facilities | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 297 | |
Office space | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | 417 | |
Other field equipment | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 58 | |
Oil and gas exploration and development equipment | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Contract expiration term | 2 years | |
Oil and gas exploration and development equipment | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Contract expiration term | 8 years | |
Pipelines, rail cars, storage facilities, easements and real estate | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 262 | |
Real estate leases | Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Contract expiration term | 1 year | |
Real estate leases | Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Contract expiration term | 13 years |
Lease Commitments - Lease Asset
Lease Commitments - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease assets | $ 1,196 | $ 1,411 |
Finance lease assets | $ 329 | $ 397 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Total leased assets | $ 1,525 | $ 1,808 |
Liabilities: | ||
Operating lease liabilities, current | 459 | 579 |
Current finance leases | $ 33 | $ 51 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DebtCurrent | us-gaap:DebtCurrent |
Operating lease liabilities, non-current | $ 786 | $ 872 |
Finance lease liabilities, non-current | $ 292 | $ 347 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtNoncurrent | us-gaap:LongTermDebtNoncurrent |
Total lease liabilities | $ 1,570 | $ 1,849 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Operating and Finance Lease Maturities (Details) $ in Millions | Sep. 30, 2020USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
Remainder of 2020 | $ 117 |
2021 | 454 |
2022 | 182 |
2023 | 110 |
2024 | 89 |
Thereafter | 480 |
Total lease payments | 1,432 |
Less: Interest | (187) |
Total lease liabilities | 1,245 |
Remainder of 2020 | |
Remainder of 2020 | 7 |
2021 | 35 |
2022 | 34 |
2023 | 32 |
2024 | 30 |
Thereafter | 261 |
Total lease payments | 399 |
Less: Interest | (74) |
Total lease liabilities | 325 |
Operating and Finance Lease Liabilities, Payments, Due [Abstract] | |
Remainder of 2020 | 124 |
2021 | 489 |
2022 | 216 |
2023 | 142 |
2024 | 119 |
Thereafter | 741 |
Total lease payments | 1,831 |
Less: Interest | (261) |
Total lease liabilities | $ 1,570 |
Weighted average lease term, operating lease | 6 years |
Weighted average discount rate, operating lease | 4.53% |
Weighted average lease term, finance lease | 11 years 9 months 18 days |
Weighted average discount rate, finance lease | 3.37% |
Lease Commitments - Other Infor
Lease Commitments - Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||||
Amortization of ROU assets | $ 5 | $ 5 | $ 14 | $ 11 |
Interest on lease liabilities | 3 | 1 | 9 | 1 |
Lease, Cost | 200 | 306 | 673 | 667 |
Short-term lease cost | 42 | 139 | 146 | 295 |
Variable lease cost | 11 | 55 | 73 | 115 |
Operating cash flows | 401 | 164 | ||
Investing cash flows | 59 | 83 | ||
Financing cash flows | 15 | 11 | ||
Property, plant and equipment, net | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | 24 | 139 | 153 | 321 |
Cost of sales | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | 131 | 135 | 417 | 273 |
Selling, general and administrative expenses | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease costs | $ 37 | $ 26 | $ 80 | $ 61 |
Lawsuits, Claims, Commitments_2
Lawsuits, Claims, Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Lawsuits, commitments and contingencies | ||||||
Tentative cash tax refund | $ 223 | $ 5 | ||||
Anticipated cash refund | $ 195 | $ 195 | ||||
Anadarko | ||||||
Lawsuits, commitments and contingencies | ||||||
Tentative cash tax refund | $ 881 | $ 881 | ||||
Arbitration filed by Andes Petroleum Ecuador Ltd | ||||||
Lawsuits, commitments and contingencies | ||||||
Proceeds from settlement | $ 1,000 | |||||
Recovery of amount awarded in settlement amount (as a percent) | 60.00% | |||||
Percentage of judgment amount claimed | 40.00% | |||||
Own economic interest (as a percent) | 60.00% | |||||
Tronox Settlement | ||||||
Lawsuits, commitments and contingencies | ||||||
Payments for settlement | $ 5,200 |
Environmental Liabilities and_3
Environmental Liabilities and Expenditures (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2016mi | Sep. 30, 2016USD ($) | Sep. 30, 2020USD ($)site | Dec. 31, 2019USD ($) | |
Environmental remediation reserves | ||||
Number of Sites | site | 174 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 1,135,000,000 | |||
Environmental remediation reserves, non-current, included in deferred credits and other liabilities - other | 975,000,000 | $ 1,035,000,000 | ||
Environmental reserves, exceeding $ ten million, threshold value | $ 10,000,000 | |||
Environmental reserves, exceeding $ ten million, number of sites | site | 19 | |||
Environmental reserves, range between zero to $ one million site category, number of sites | site | 98 | |||
Expected expend funds of environmental reserves (as a percent) | 45.00% | |||
Period of expending remaining environmental reserves (or more) | 10 years | |||
Environmental remediation additional loss range | $ 1,100,000,000 | |||
Low end of range | ||||
Environmental remediation reserves | ||||
Environmental reserves, range between zero to $ one million site category | $ 0 | |||
Period of expending first half of environmental reserves | 3 years | |||
High end of range | ||||
Environmental remediation reserves | ||||
Environmental reserves, range between zero to $ one million site category | $ 1,000,000 | |||
Period of expending first half of environmental reserves | 4 years | |||
NPL sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 35 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 451,000,000 | |||
Third-party sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 72 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 284,000,000 | |||
Occidental-operated sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 17 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 142,000,000 | |||
Closed or non-operated Occidental sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 50 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 258,000,000 | |||
Lower Passaic River | ||||
Environmental remediation reserves | ||||
Stretch of Lower Passaic river requiring remedial actions | mi | 8.3 | |||
Stretch of Lower Passaic river not covered by remedial actions | mi | 9 | |||
Clean-up estimated cost | $ 165,000,000 | |||
Accrued liabilities | ||||
Environmental remediation reserves | ||||
Environmental remediation reserves, current, included in accrued liabilities | 160,000,000 | |||
Deferred credits and other liabilities - other | ||||
Environmental remediation reserves | ||||
Environmental remediation reserves, non-current, included in deferred credits and other liabilities - other | $ 975,000,000 |
Retirement and Postretirement_3
Retirement and Postretirement Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Periodic Benefit Costs | ||||
Net gains related to settlement, curtailment, and special termination benefits | $ 5 | $ 24 | $ 121 | $ 24 |
Contributions to qualified and supplemental plans | 30 | 7 | 132 | 8 |
Pension Benefit | ||||
Net Periodic Benefit Costs | ||||
Net periodic benefit costs | 0 | 15 | 22 | 19 |
Postretirement Benefit | ||||
Net Periodic Benefit Costs | ||||
Net periodic benefit costs | $ 18 | $ 19 | $ 56 | $ 48 |
Earnings Per Share And Stockh_3
Earnings Per Share And Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Basic earnings (loss) per common share | ||||
Net income (loss) from continuing operations | $ (3,655) | $ (737) | $ (12,384) | $ 529 |
Income (loss) from discontinued operations, net of tax | 80 | (15) | (1,335) | (15) |
NET INCOME (LOSS) | (3,575) | (752) | (13,719) | 514 |
Less: Net income attributable to noncontrolling interest | 0 | (42) | 0 | (42) |
Less: Preferred stock dividends | (203) | (118) | (644) | (118) |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | (3,778) | (912) | (14,363) | 354 |
Less: Net income allocated to participating securities | 0 | 0 | 0 | (1) |
Net income (loss) attributable to common stock, net of participating securities | $ (3,778) | $ (912) | $ (14,363) | $ 353 |
Weighted average number of basic shares (in shares) | 929.3 | 845.7 | 913.9 | 781.1 |
Basic earnings (loss) per common share (in usd per share) | $ (4.07) | $ (1.08) | $ (15.72) | $ 0.45 |
Weighted average number of basic shares (in shares) | 929.3 | 845.7 | 913.9 | 781.1 |
Net income (loss) attributable to common stock, net of participating securities | $ (3,778) | $ (912) | $ (14,363) | $ 353 |
Dilutive securities (in shares) | 0 | 0 | 0 | 1.1 |
Total diluted weighted average common shares (in shares) | 929.3 | 845.7 | 913.9 | 782.2 |
Net income (loss) attributable to common stockholders per share—diluted (in usd per share) | $ (4.07) | $ (1.08) | $ (15.72) | $ 0.45 |
Berkshire Warrants, Common Stock Warrants, and options excluded from diluted shares (in shares) | 200 | 200 |
Earnings Per Share And Stockh_4
Earnings Per Share And Stockholders' Equity - Narrative (Details) $ / shares in Units, $ in Millions | Oct. 15, 2020USD ($) | Aug. 08, 2019$ / sharesshares | Jul. 31, 2020shares | Jun. 30, 2020 | Apr. 30, 2020shares | Mar. 31, 2020 | Aug. 03, 2020USD ($)$ / sharesshares | Jun. 26, 2020 |
Class of Stock [Line Items] | ||||||||
Volume weighted average price | 90.00% | 90.00% | ||||||
Volume weighted average price calculation period | 10 days | 10 days | ||||||
Common stock issued (in shares) | 11,600,000 | 17,300,000 | ||||||
Subsequent Event | ||||||||
Class of Stock [Line Items] | ||||||||
Payments of preferred stock dividends | $ | $ 200 | |||||||
Common Stock | Warrant | ||||||||
Class of Stock [Line Items] | ||||||||
Warrant, rate conversion | 0.125 | |||||||
Warrants issued (in shares) | 116,000,000 | |||||||
Exercise price of warrant (usd per share) | $ / shares | $ 22 | |||||||
Fair value of Common Stock Warrants | $ | $ 767 | |||||||
Anadarko | Series A Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Issued as part of the Merger (in shares) | 100,000 | |||||||
Face value (in usd per share) | $ / shares | $ 100,000 | |||||||
Preferred stock accrual rate per annum | 8.00% | |||||||
Preferred stock accrual rate per annum on unpaid amounts | 9.00% |
Industry Segments - Schedule of
Industry Segments - Schedule of Industry Segments and Eliminations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)site | Sep. 30, 2019USD ($) | |
Segment Information | ||||||
Number of operating segments | site | 3 | |||||
Net sales | $ 4,108 | $ 5,859 | $ 13,649 | $ 14,283 | ||
Income (loss) from continuing operations before income taxes | (4,058) | (574) | (14,280) | 1,223 | ||
Income tax benefit (expense) | 403 | (163) | 1,896 | (694) | ||
Income (loss) from continuing operations | (3,655) | (737) | (12,384) | 529 | ||
Asset impairments | $ 8,600 | |||||
Gain on derivative instrument | 88 | (33) | (573) | (33) | ||
Goodwill impairment | $ 1,200 | |||||
Anadarko acquisition-related costs | 5 | 924 | 302 | 974 | ||
Operating Segments | ||||||
Segment Information | ||||||
Valuation allowance on tax assets | 37 | 37 | ||||
Operating Segments | Oil and Gas | ||||||
Segment Information | ||||||
Net sales | 2,989 | 3,993 | 10,089 | 9,062 | ||
Income (loss) from continuing operations before income taxes | (1,072) | 268 | (8,570) | 1,478 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Income (loss) from continuing operations | (1,072) | 268 | (8,570) | 1,478 | ||
Net asset sale losses | 795 | 795 | ||||
Asset impairments | 7,000 | |||||
Gain on derivative instrument | 1,100 | |||||
Operating Segments | Chemical | ||||||
Segment Information | ||||||
Net sales | 937 | 1,071 | 2,745 | 3,128 | ||
Income (loss) from continuing operations before income taxes | 178 | 207 | 472 | 680 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Income (loss) from continuing operations | 178 | 207 | 472 | 680 | ||
Operating Segments | Midstream And Marketing | ||||||
Segment Information | ||||||
Net sales | 364 | 1,163 | 1,358 | 2,888 | ||
Income (loss) from continuing operations before income taxes | (2,791) | 400 | (4,085) | 1,010 | ||
Income tax benefit (expense) | 0 | 0 | 0 | 0 | ||
Income (loss) from continuing operations | (2,791) | 400 | (4,085) | 1,010 | ||
Impairment of equity method investment | 2,700 | 2,700 | ||||
Goodwill impairment | 1,400 | |||||
Corporate and Eliminations | ||||||
Segment Information | ||||||
Net sales | (182) | (368) | (543) | (795) | ||
Income (loss) from continuing operations before income taxes | (373) | (1,449) | (2,097) | (1,945) | ||
Income tax benefit (expense) | 403 | (163) | 1,896 | (694) | ||
Income (loss) from continuing operations | $ 30 | $ (1,612) | (201) | $ (2,639) | ||
Anadarko acquisition-related costs | 302 | |||||
Loss on interest rate swaps | $ 577 |