Occidental Petroleum 8K Announces Third Quarter Net Income | OXY 22 Oct 09

Exhibit 99.1

		Occidental Petroleum Corporation
		10889 Wilshire Boulevard
		Los Angeles, California 90024-4201
		310.208.8800
		www.oxy.com

For Immediate Release: October 22, 2009

Occidental Petroleum Announces Third Quarter Net Income

LOS ANGELES, October 22, 2009 — Occidental Petroleum Corporation (NYSE: OXY) announced net income of $927 million ($1.14 per diluted share) for the third quarter of 2009, compared with $2.3 billion ($2.77 per diluted share) for the third quarter of 2008.

In announcing the results, Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, “Occidental achieved year-over-year production growth of nearly seven percent in the third quarter and eight percent in the nine months of 2009. In addition, higher worldwide crude oil prices resulted in an increase in Occidental’s third quarter of 2009 net income of 36-percent over the second quarter of 2009.

“Our Kern County discovery has made a significant contribution to this production growth. Kern County gross production run rates grew from 7,700 BOE per day around the end of the first quarter, to 17,300 BOE per day at the end of the second quarter and to approximately 26,000 BOE per day at the end of the third quarter.”

QUARTERLY RESULTS

Oil and Gas

Oil and gas segment earnings were $1.5 billion for the third quarter of 2009, compared with $3.6 billion for the same period in 2008. The decrease in the third quarter 2009 segment earnings reflected lower crude oil and natural gas prices, partially offset by higher oil and gas sales volumes and lower operating expenses.

For the third quarter of 2009, daily oil and gas sales volumes averaged 628,000 barrels of oil equivalent (BOE), compared with 588,000 BOE per day in the third quarter of 2008. Volumes increased by six percent domestically, mainly from California and the Permian and by 15 percent in the

Middle East/North Africa largely in Dolphin and Oman, partially offset by a six-percent decrease in Latin America mostly due to a labor strike in Argentina. Increased California volumes resulted largely from the new exploration discoveries in Kern County.

Oxy’s realized price for worldwide crude oil was $62.79 per barrel for the third quarter of 2009, compared with $104.15 per barrel for the third quarter of 2008. Domestic realized gas prices decreased from $9.35 per MCF in the third quarter of 2008 to $3.04 per MCF for the third quarter of 2009.

Chemicals

Chemical segment earnings for the third quarter of 2009 were $72 million, compared with $219 million for the same period in 2008. The third quarter 2009 results reflect the continued weakness in the U.S. housing, automotive and durable goods sectors resulting in lower margins for caustic soda and polyvinyl chloride and lower volumes for chlorine, caustic soda, potassium hydroxide and polyvinyl chloride.

Midstream, Marketing and Other

Midstream segment earnings were $77 million for the third quarter of 2009, compared with $66 million for the third quarter of 2008. The third quarter of 2009 reflects better results in marketing operations, partially offset by lower margins in the gas processing business.

NINE MONTH RESULTS

Net income for the nine months of 2009 was $2.0 billion ($2.43 per diluted share), compared with $6.4 billion ($7.77 per diluted share) for the nine months of 2008.

Oil and Gas

Oil and gas segment earnings were $3.1 billion for the nine months of 2009, compared with $10.3 billion for the same period of 2008. The decrease in segment earnings reflected lower crude oil and natural gas prices, partially offset by higher oil and gas sales volumes and lower operating and administrative costs.

Daily oil and gas sales volumes for the first nine months was 643,000 BOE per day for 2009, compared with 594,000 BOE per

day for the same 2008 period. Volumes increased by five percent domestically mainly in California and Midcontinent/Rockies, by 14 percent in Latin America, and by 12 percent in the Middle East/North Africa largely due to Dolphin and Oman.

Oxy’s realized price for worldwide crude oil was $51.44 per barrel for the nine months of 2009, compared with $100.39 per barrel for the nine months of 2008. Domestic realized gas prices decreased from $9.18 per MCF in the nine months of 2008 to $3.15 per MCF in the nine months of 2009.

Chemicals

Chemical segment earnings were $356 million for the nine months of 2009, compared with $542 million for the nine months of 2008. The 2009 results reflect lower volumes and prices for chlorine, caustic soda and polyvinyl chloride due to the economic slowdown, partially offset by lower feedstock and energy costs.

Midstream, Marketing and Other

Midstream segment earnings were $154 million for the nine months of 2009, compared with $350 million for the same period in 2008. The earnings decline in 2009 reflects lower margins in the gas processing business.

About Oxy

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy’s wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company’s worldwide operations.

Forward-Looking Statements

Statements in this release that contain words such as “will,” “should,” “expect,” or “estimate,” or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially

include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; exploration risks, such as drilling of unsuccessful wells; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; operational interruptions and changes in tax rates. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.

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Contacts:		Richard S. Kline (media)
		richard_kline@oxy.com
		310-443-6249

		Chris Stavros (investors)
		chris_stavros@oxy.com
		212-603-8184

		For further analysis of Occidental’s quarterly performance, please visit the web site: www.oxy.com

SUMMARY OF SEGMENT NET SALES AND EARNINGS

(In millions, except	Third Quarter						Nine Months
per-share amounts)	2009			2008			2009			2008
SEGMENT NET SALES
Oil and Gas	$	3,089		$	5,422		$	7,952		$	15,441
Chemical	842			1,454			2,445			4,107
Midstream, Marketing and Other	285			381			763			1,204
Eliminations	(112		)	(197		)	(296		)	(556		)
Net sales	$	4,104		$	7,060		$	10,864		$	20,196
SEGMENT EARNINGS
Oil and Gas (a), (b)	$	1,464		$	3,618		$	3,092		$	10,312
Chemical	72			219			356			542
Midstream, Marketing and Other	77			66			154			350
	1,613			3,903			3,602			11,204
Unallocated Corporate Items
Interest expense, net	(33		)	(3		)	(76		)	(10		)
Income taxes	(549		)	(1,546		)	(1,245		)	(4,511		)
Other (c)	(102		)	(82		)	(297		)	(292		)

Income from Continuing Operations(a)	929			2,272			1,984			6,391
Discontinued operations, net	(2		)	(1		)	(7		)	23
NET INCOME (a)	$	927		$	2,271		$	1,977		$	6,414
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.14		$	2.78		$	2.44		$	7.78
Discontinued operations, net	—			—			(0.01		)	0.03
	$	1.14		$	2.78		$	2.43		$	7.81
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.14		$	2.77		$	2.44		$	7.74
Discontinued operations, net	—			—			(0.01		)	0.03
	$	1.14		$	2.77		$	2.43		$	7.77
AVERAGE COMMON SHARES OUTSTANDING
BASIC	811.8			815.3			811.1			820.1
DILUTED	814.4			817.6			813.9			823.5

See footnotes on following page.

(a)		Net Income - Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $14 million and $38 million for the third quarter and $35 million and $104 million for the nine months ended September 30, 2009 and 2008, respectively. Oil and gas segment earnings are also presented net of these non-controlling interest amounts.

(b)		Oil and Gas - The nine months of 2009 includes an $8 million pre-tax charge for rig contract termination costs.

(c)		Unallocated Corporate Items - Other - The nine months of 2009 includes non-core pre-tax charges of $40 million related to severance and $15 million for railcar leases.

SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE

	Third Quarter				Nine Months
($ millions)	2009		2008		2009		2008
CAPITAL EXPENDITURES	$	746	$	1,199	$	2,649	$	3,070
DEPRECIATION, DEPLETION AND AMORTIZATION OF ASSETS	$	769	$	683	$	2,297	$	1,957

ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS

Income/(Expense)	Third Quarter					Nine Months
($ millions)	2009			2008		2009		2008
Foreign exchange gains and (losses)*	$	(3	)	$	8	$	28	$	3

*Amounts shown after tax.

SUMMARY OF OPERATING STATISTICS

	Third Quarter				Nine Months
	2009		2008		2009		2008
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil and Liquids (MBBL)
California	92		87		93		86
Permian	168		166		168		168
Midcontinent/Rockies	9		8		10		6
Total	269		261		271		260

Natural Gas (MMCF)
California	269		236		240		239
Permian	208		169		200		179
Midcontinent/Rockies	176		165		192		166
Total	653		570		632		584

Latin America
Crude Oil (MBBL)
Argentina	30		38		37		32
Colombia	44		43		46		43
Total	74		81		83		75

Natural Gas (MMCF)
Argentina	27		24		30		19
Bolivia	18		21		17		21
Total	45		45		47		40

Middle East/North Africa
Crude Oil and Liquids (MBBL)
Oman	39		23		38		21
Dolphin	21		18		22		20
Qatar	46		49		48		47
Yemen	22		20		25		22
Libya	4		7		6		17
Total	132		117		139		127

Natural Gas (MMCF)
Oman	22		25		23		24
Dolphin	208		165		218		176
Total	230		190		241		200

Barrels of Oil Equivalent (MBOE)
Subtotal consolidated subsidiaries	630		593		646		599
Colombia-minority interest	(5	)	(7	)	(6	)	(7	)
Yemen-Occidental net interest	3		2		3		2
Total Worldwide Sales Volumes - MBOE	628		588		643		594

SUMMARY OF OPERATING STATISTICS

	Third Quarter				Nine Months
	2009		2008		2009		2008
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil and Liquids (MBBL)	269		261		271		260
Natural Gas (MMCF)	653		570		632		584

Latin America
Crude Oil (MBBL)
Argentina	31		39		36		33
Colombia	43		43		46		43
Total	74		82		82		76
Natural Gas (MMCF)	45		45		47		40

Middle East/North Africa
Crude Oil and Liquids (MBBL)
Oman	40		24		38		21
Dolphin	21		18		22		20
Qatar	48		48		48		47
Yemen	22		19		25		22
Libya	5		9		7		17
Total	136		118		140		127
Natural Gas (MMCF)	230		190		241		200

Barrels of Oil Equivalent (MBOE)
Subtotal consolidated subsidiaries	634		595		646		600
Colombia-minority interest	(5	)	(6	)	(6	)	(6	)
Yemen-Occidental net interest	3		2		3		2
Total Worldwide Production Volumes - MBOE	632		591		643		596

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS

Occidental’s results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called “core results,” which excludes those items. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported earnings are considered representative of management’s performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS

	Third Quarter
($ millions, except	Diluted					Diluted
per-share amounts)	2009			EPS		2008			EPS
TOTAL REPORTED EARNINGS*	$	927		$	1.14	$	2,271		$	2.77

Oil and Gas*
Segment Earnings	$	1,464				$	3,618
Add:
No significant items affecting earning	—					—
Segment Core Results	1,464					3,618
Chemicals
Segment Earnings	72					219
Add:
No significant items affecting earning	—					—
Segment Core Results	72					219
Midstream, Marketing and Other
Segment Earnings	77					66
Add:
No significant items affecting earnings	—					—
Segment Core Results	77					66
Total Segment Core Results	1,613					3,903
Corporate
Corporate Results – Non Segment**	(686		)			(1,632		)
Add:
Discontinued operations, net***	2					1

Corporate Core Results – Non Segment	(684		)			(1,631		)
TOTAL CORE RESULTS	$	929		$	1.14	$	2,272		$	2.77

* Represents amounts attributable to common stock, after deducting non-controlling interest of $14 million and $38 million for the third quarter 2009 and 2008, respectively.

** Interest expense, income taxes, G&A expense and other.

*** Amounts shown after tax.

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)

	Nine Months
($ millions, except	Diluted					Diluted
per-share amounts)	2009			EPS		2008			EPS
TOTAL REPORTED EARNINGS*	$	1,977		$	2.43	$	6,414		$	7.77

Oil and Gas*
Segment Earnings	$	3,092				$	10,312
Add:
Rig terminations	8					—
Segment Core Results	3,100					10,312
Chemicals
Segment Earnings	356					542
Add:
No significant items affecting earnings	—					—
Segment Core Results	356					542
Midstream, Marketing and Other
Segment Earnings	154					350
Add:
No significant items affecting earnings	—					—
Segment Core Results	154					350
Total Segment Core Results	3,610					11,204
Corporate
Corporate Results — Non Segment**	(1,625		)			(4,790		)
Add:
Severance accruals	40					—
Railcar leases	15					—
Tax effect of pre-tax adjustments	(22		)			—
Discontinued operations, net***	7					(23		)

Corporate Core Results — Non Segment	(1,585		)			(4,813		)
TOTAL CORE RESULTS	$	2,025		$	2.48	$	6,391		$	7.74

*		Represents amounts attributable to common stock, after deducting non-controlling interest of $35 million and $104 million for the nine months of 2009 and 2008, respectively.
**		Interest expense, income taxes, G&A expense and other.
***		Amounts shown after tax.

Occidental Petroleum (OXY) 8-KOccidental Petroleum Announces Third Quarter Net Income