Exhibit 99.1
Occidental Announces 2nd Quarter 2019 Results
· Anadarko shareholder vote scheduled for August 8; acquisition anticipated to close promptly thereafter
· Formed strategic partnership with Ecopetrol to develop Midland Basin acreage for proceeds of $750 million in cash plus $750 million of carried capital
· Hedged 2020 oil price risk with 300,000 barrels of oil per day of costless collars
· Announced dividend increase for the 17th consecutive year
· Returned $600 million to shareholders, representing approximately one third of operating cash flow
· Achieved pre-tax income guidance for both OxyChem and Midstream
· Oil and gas operating costs per BOE decreased 5 percent quarter-over-quarter
· Global production of 741,000 BOE per day exceeded the high end of guidance, with Permian Resources up 44 percent year-over-year
HOUSTON — July 31, 2019 — Occidental Petroleum Corporation (NYSE:OXY) today announced net and core income for the second quarter of 2019 of $635 million, or $0.84 per diluted share, and $729 million, or $0.97 per diluted share, respectively. Net and core income for the first quarter of 2019 were $631 million, or $0.84 per diluted share. Second quarter pre-tax non-core items of $107 million include Anadarko acquisition-related transaction and debt financing fees.
“We are pleased to deliver another quarter of strong operational and financial results. The strength of our integrated business model and confidence in our future performance enabled us to increase our dividend for the 17th consecutive year,” said President and Chief Executive Officer Vicki Hollub. “As we move toward closing the acquisition of Anadarko and combining our two companies into an innovative and sustainable energy leader, we remain well positioned to drive profitable growth and return excess cash to our shareholders. Our strategic partnership with Ecopetrol is a further example of our commitment to enhancing our value proposition.”
QUARTERLY RESULTS
Oil and Gas
Oil and gas pre-tax income for the second quarter of 2019 was $726 million, compared to $484 million for the prior quarter. The increase in second quarter core income reflected higher crude oil prices and sales volumes, partially offset by a negative non-cash mark-to-market adjustment on carbon dioxide purchase contracts along with lower domestic gas prices.
Total average daily production volumes exceeded guidance at 741,000 barrels of oil equivalent (BOE) for the second quarter of 2019, compared to 719,000 BOE for the first quarter of 2019. Permian Resources average daily production volumes exceeded guidance at 289,000 BOE for the second
quarter of 2019, an increase of 11 percent from the prior quarter due to improved well performance and development activity. Year-over-year, Permian Resources production for the second quarter of 2019 increased by 44 percent. International average daily production volumes also exceeded guidance at 295,000 BOE for the second quarter of 2019. Compared to 298,000 BOE for the first quarter of 2019, production in the second quarter of 2019 was lower due to production sharing impacts in Oman.
Total cash operating costs per BOE for the second quarter of 2019 of $10.97 per BOE decreased by 5 percent, compared to the prior quarter. Compared to total year 2018, total cash operating costs per BOE decreased by over 8 percent due to improved efficiencies in downhole maintenance and lower energy costs.
For the second quarter of 2019, average WTI and Brent marker prices were $59.82 per barrel and $68.32 per barrel, respectively. Average worldwide realized crude oil prices increased by 12 percent from the prior quarter to $58.91 per barrel in the second quarter of 2019. Average worldwide realized NGL prices decreased by 1 percent from the prior quarter to $18.00 per BOE in the second quarter of 2019. Average domestic realized gas prices decreased by 83 percent from the prior quarter to $0.23 per Mcf in the second quarter of 2019.
Chemical
Chemical pre-tax income for the second quarter of 2019 was $208 million, compared to $265 million for the first quarter of 2019. The decrease in income reflected lower realized caustic soda prices in the second quarter of 2019, along with fees received under a pipeline easement agreement in the first quarter of 2019, slightly offset by favorable feedstock costs.
Midstream and Marketing
Midstream and marketing pre-tax income for the second quarter of 2019 was $331 million, compared to $279 million for the first quarter of 2019. The increase in income in the second quarter of 2019 reflected higher marketing results as the first quarter had significant non-cash mark-to-market losses, as well as higher pipeline income from Dolphin Pipeline, which had completed its first quarter planned maintenance. The increase was partially offset by lower gas plant income due to planned maintenance at certain domestic gas plants.
Subsequent Events
In July 2019, Occidental entered into three-way costless collar derivative instruments for 2020 and additional call options in 2021 for 300,000 barrels of oil per day to manage its near-term exposure to cash-flow variability from commodity price risks. Occidental entered into the 2021 call options to substantially improve the ceiling price that it will receive for contracted commodity volumes in 2020.
On July 31, 2019, Occidental and Ecopetrol entered into definitive agreements to form a joint venture to develop 97,000 net acres of Occidental’s Midland Basin properties in the Permian Basin. Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for a 49-percent interest in the new venture. Occidental will own a 51-percent interest and operate the joint venture. During the carry period, Ecopetrol will pay 75-percent of Occidental’s share of capital expenditures. The joint venture allows Occidental to accelerate its development plans in the Midland Basin, where it currently has minimal activity. Occidental will retain production and cash flow from its existing operations in the Midland Basin. This transaction is expected to close in the fourth quarter of 2019.
Supplemental Non-GAAP Measures
This press release refers to core income, a supplemental measure not calculated in accordance with generally accepted accounting principles in the United States (GAAP). A definition of core income and a reconciliation to net income, the comparable GAAP financial measure, is included in the financial schedules of this press release. Occidental’s definition of core income may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.
Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental Petroleum Corporation’s (“Occidental”) expectations, beliefs, plans or forecasts. Forward-looking statements involve estimates, expectations, projections, goals, forecasts, assumptions, risks and uncertainties, many of which involve factors or circumstances that are beyond Occidental’s control. Actual results may differ from anticipated results, sometimes materially, and reported or expected results should not be considered an indication of future performance.
Factors that could cause actual results to differ and that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of Occidental’s Annual Report on Form 10-K for the year ended December 31, 2018, and in Occidental’s other filings with the U.S. Securities and Exchange Commission (“SEC”). Additional factors related to the proposed transaction between Occidental and Anadarko Petroleum Corporation (“Anadarko”) appear in the definitive proxy statement/prospectus that is a part of Occidental’s registration statement on Form S-4, as amended (the “Registration Statement”), which was declared effective by the SEC on July 11, 2019, in connection with the proposed transaction between Occidental and Anadarko.
Because the factors referred to above could cause actual results or outcomes to differ materially from those expressed or implied in any forward-looking statements, you should not place undue reliance on any such forward-looking statements. Further, any forward-looking statement speaks only as of
the date of this press release and, unless legally required, Occidental does not undertake any obligation to update any forward-looking statement, as a result of new information, future events or otherwise.
Additional Information and Where to Find it
In connection with the proposed acquisition of Anadarko, Occidental has filed with the SEC the Registration Statement, containing a prospectus of Occidental that also constitutes a proxy statement of Anadarko. Anadarko mailed a definitive proxy statement/prospectus to stockholders of Anadarko. In connection with the consent solicitation by Carl C. Icahn and certain related parties, Occidental has also filed with the SEC a consent revocation solicitation statement on Schedule 14A and mailed such consent revocation solicitation statement to stockholders of Occidental. This press release is not a substitute for the proxy statement/prospectus or Registration Statement or other document Occidental and/or Anadarko has filed or may file with the SEC in connection with the proposed transaction between Occidental and Anadarko or a substitute for any consent revocation solicitation statement or other document that Occidental has filed or may file with the SEC in connection with any solicitation by Occidental.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS, THE REGISTRATION STATEMENT, THE CONSENT REVOCATION SOLICITATION STATEMENT (INCLUDING, IN EACH CASE, ANY AMENDMENTS OR SUPPLEMENTS THERETO) FILED BY OCCIDENTAL AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC CAREFULLY AND IN THEIR ENTIRETY BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT OCCIDENTAL, ANADARKO, THE PROPOSED TRANSACTION AND ANY SOLICITATION. Investors and security holders may obtain copies of these documents and other documents filed with the SEC by Occidental and Anadarko free of charge through the website maintained by the SEC at www.sec.gov. Copies of the documents filed by Occidental and Anadarko are also available free of charge by accessing their websites at www.oxy.com and www.anadarko.com, respectively.
Participants
Occidental, Anadarko and their directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction between Occidental and Anadarko. In addition, Occidental, its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies with respect to a solicitation by Occidental. Information about Occidental’s executive officers and directors is available in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on February 21, 2019, in its proxy statement for the 2019 Annual Meeting which was filed with the SEC on March 28, 2019, and in
its Form 8-K which was filed with the SEC on July 15, 2019. To the extent holdings of Occidental securities have changed since the amounts printed in the proxy statement for the 2019 Annual Meeting, such changes have been or will be reflected on Statements of Change in Ownership on Form 4 filed with the SEC. Information about Anadarko’s executive officers and directors is available in Anadarko’s Annual Report on Form 10-K for the year ended December 31, 2018, which was filed with the SEC on February 14, 2019, and in its proxy statement for the 2019 Annual Meeting which was filed with the SEC on March 29, 2019. Additional information regarding the interests of such potential participants is included in the Registration Statement, proxy statement/prospectus and is or will be included in other relevant documents filed with the SEC. These documents are or will be available free of charge from the sources indicated above.
About Occidental
Occidental is an international oil and gas exploration and production company with operations in the United States, Middle East and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment purchases, markets, gathers, processes, transports and stores hydrocarbons and other commodities. The company’s wholly owned subsidiary OxyChem manufactures and markets basic chemicals and vinyls. Occidental posts or provides links to important information on its website at oxy.com.
-0-
Contacts:
Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com
or
Investors:
Jeff Alvarez
713-215-7864
jeff_alvarez@oxy.com
On the web: oxy.com
Occidental Petroleum Corporation
Quarter 2 2019 Earnings Release Schedules Index
Schedule # | | Schedule Description |
1 | | Summary Highlights |
| | |
2 | | Segment Results Before Tax Allocations |
| | · Reported results |
| | · Non-core adjustments |
| | · Core results |
| | |
3 | | Segment Results After Tax Allocations |
| | · Reported results |
| | · Non-core adjustments |
| | · Core results |
| | · Reconciliation - Diluted EPS |
| | |
4 | | Non-Core Adjustments Detail |
| | · Before tax allocations |
| | · After tax allocations |
| | |
5 | | Consolidated Condensed Statements of Operations |
| | Reconciliation - Return on Capital Employed |
| | |
6 | | Consolidated Condensed Balance Sheets |
| | |
7 | | Consolidated Condensed Statements of Cash Flows |
| | Details of Capital Expenditures and Depreciation, Depletion and Amortization |
| | |
8 | | Daily Production - TOTAL REPORTED |
| | · MBOE/D |
| | · By Commodity |
| | |
9 | | Sales Volumes and Realized Prices |
| | · MBOE/D |
| | · Realized prices and related marker prices |
| | |
10 | | Oil and Gas $/BOE Costs and Exploration Expense |
| | |
11 | | Segment Core Results Pre-tax Variance Roll-forwards |
| | · Quarter-over-Quarter |
| | · Year-over-Year |
SCHEDULE 1
Occidental Petroleum Corporation
Summary Highlights
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2018 | | | | | | | | | | 2019 | | | | |
Quarterly | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | YTD |
Net income | | | | | | | | | | | | | | | | | | | | |
Reported Income ($ millions) | | $ | 708 | | $ | 848 | | $ | 1,869 | | $ | 706 | | $ | 4,131 | | $ | 631 | | $ | 635 | | | | | | $ | 1,266 |
Reported EPS - Diluted ($/share) | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | $ | 5.39 | | $ | 0.84 | | $ | 0.84 | | | | | | $ | 1.68 |
Effective tax rate | | 32% | | 26% | | 28% | | 15% | | 26% | | 26% | | 33% | | | | | | 30% |
| | | | | | | | | | | | | | | | | | | | |
Core Income (Non-GAAP) ($ millions) | | $ | 708 | | $ | 848 | | $ | 1,360 | | $ | 922 | | $ | 3,838 | | $ | 631 | | $ | 729 | | | | | | $ | 1,360 |
Core EPS - Diluted (Non-GAAP) ($/share) | | $ | 0.92 | | $ | 1.10 | | $ | 1.77 | | $ | 1.22 | | $ | 5.01 | | $ | 0.84 | | $ | 0.97 | | | | | | $ | 1.80 |
Effective tax rate | | 32% | | 26% | | 27% | | 12% | | 25% | | 26% | | 30% | | | | | | 29% |
| | | | | | | | | | | | | | | | | | | | |
Average Shares Outstanding | | | | | | | | | | | | | | | | | | | | |
Basic (millions) | | 765.6 | | 765.7 | | 761.7 | | 753.8 | | 761.7 | | 748.9 | | 748.3 | | | | | | 748.7 |
Diluted (millions) | | 767.0 | | 767.4 | | 763.3 | | 755.4 | | 763.3 | | 750.5 | | 749.5 | | | | | | 750.0 |
| | | | | | | | | | | | | | | | | | | | |
Production - Reported | | | | | | | | | | | | | | | | | | | | |
Total US (MBOE/D) | | 336 | | 358 | | 384 | | 410 | | 372 | | 421 | | 446 | | | | | | 434 |
US oil (MBBL/D) | | 228 | | 240 | | 256 | | 274 | | 250 | | 277 | | 289 | | | | | | 283 |
Worldwide (MBOE/D) | | 609 | | 639 | | 681 | | 700 | | 658 | | 719 | | 741 | | | | | | 730 |
Worldwide sales (MBOE/D) | | 610 | | 622 | | 696 | | 702 | | 658 | | 713 | | 744 | | | | | | 728 |
| | | | | | | | | | | | | | | | | | | | |
Realizations | | | | | | | | | | | | | | | | | | | | |
Worldwide oil ($/BBL) | | $ | 61.04 | | $ | 63.12 | | $ | 62.67 | | $ | 56.11 | | $ | 60.64 | | $ | 52.62 | | $ | 58.91 | | | | | | $ | 55.86 |
Worldwide NGL ($/BBL) | | $ | 25.35 | | $ | 27.21 | | $ | 29.55 | | $ | 22.88 | | $ | 26.25 | | $ | 18.14 | | $ | 18.00 | | | | | | $ | 18.07 |
Domestic gas ($/MCF) | | $ | 2.06 | | $ | 1.49 | | $ | 1.58 | | $ | 1.33 | | $ | 1.59 | | $ | 1.36 | | $ | 0.23 | | | | | | $ | 0.77 |
| | | | | | | | | | | | | | | | | | | | |
Cash Flows ($ millions) | | | | | | | | | | | | | | | | | | | | |
Operating before working capital | | $ | 1,697 | | $ | 1,988 | | $ | 2,553 | | $ | 1,875 | | $ | 8,113 | | $ | 1,832 | | $ | 1,771 | | | | | | $ | 3,603 |
Working capital changes | | (688) | | (232) | | (149) | | 548 | | (521) | | (884) | | 242 | | | | | | (642) |
Other, net | | - | | - | | - | | 77 | | 77 | | - | | - | | | | | | - |
Operating cash flow | | $ | 1,009 | | $ | 1,756 | | $ | 2,404 | | $ | 2,500 | | $ | 7,669 | | $ | 948 | | $ | 2,013 | | | | | | $ | 2,961 |
Capital expenditures | | $ | (1,032) | | $ | (1,287) | | $ | (1,319) | | $ | (1,337) | | $ | (4,975) | | $ | (1,259) | | $ | (1,211) | | | | | | $ | (2,470) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
| | | | 2018 | | | | | | | | 2019 | | | | |
Year-to-date | | Mar | | Jun | | Sep | | Dec | | | | Mar | | Jun | | Sep | | Dec | | |
Net income | | | | | | | | | | | | | | | | | | | | |
Reported Income ($ millions) | | $ | 708 | | $ | 1,556 | | $ | 3,425 | | $ | 4,131 | | | | $ | 631 | | $ | 1,266 | | | | | | |
Reported EPS - Diluted ($/share) | | $ | 0.92 | | $ | 2.02 | | $ | 4.45 | | $ | 5.39 | | | | $ | 0.84 | | $ | 1.68 | | | | | | |
Effective tax rate | | 32% | | 29% | | 28% | | 26% | | | | 26% | | 30% | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Core Income (Non-GAAP) ($ millions) | | $ | 708 | | $ | 1,556 | | $ | 2,916 | | $ | 3,838 | | | | $ | 631 | | $ | 1,360 | | | | | | |
Core EPS - Diluted (Non-GAAP) ($/share) | | $ | 0.92 | | $ | 2.02 | | $ | 3.79 | | $ | 5.01 | | | | $ | 0.84 | | $ | 1.80 | | | | | | |
Effective tax rate | | 32% | | 29% | | 28% | | 25% | | | | 26% | | 29% | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Average Shares Outstanding | | | | | | | | | | | | | | | | | | | | |
Basic (millions) | | 765.6 | | 765.7 | | 764.3 | | 761.7 | | | | 748.9 | | 748.7 | | | | | | |
Diluted (millions) | | 767.0 | | 767.2 | | 765.8 | | 763.3 | | | | 750.5 | | 750.0 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Production - Reported | | | | | | | | | | | | | | | | | | | | |
Total US (MBOE/D) | | 336 | | 347 | | 359 | | 372 | | | | 421 | | 434 | | | | | | |
US oil (MBBL/D) | | 228 | | 234 | | 241 | | 250 | | | | 277 | | 283 | | | | | | |
Worldwide (MBOE/D) | | 609 | | 624 | | 643 | | 658 | | | | 719 | | 730 | | | | | | |
Worldwide sales (MBOE/D) | | 610 | | 616 | | 643 | | 658 | | | | 713 | | 728 | | | | | | |
| | | | | | | | | | | | | | | | | | | | |
Realizations | | | | | | | | | | | | | | | | | | | | |
Worldwide oil ($/BBL) | | $ | 61.04 | | $ | 62.07 | | $ | 62.29 | | $ | 60.64 | | | | $ | 52.62 | | $ | 55.86 | | | | | | |
Worldwide NGL ($/BBL) | | $ | 25.35 | | $ | 26.34 | | $ | 27.54 | | $ | 26.25 | | | | $ | 18.14 | | $ | 18.07 | | | | | | |
Domestic gas ($/MCF) | | $ | 2.06 | | $ | 1.76 | | $ | 1.70 | | $ | 1.59 | | | | $ | 1.36 | | $ | 0.77 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
Cash Flows ($ millions) | | | | | | | | | | | | | | | | | | | | |
Operating before working capital | | $ | 1,697 | | $ | 3,685 | | $ | 6,238 | | $ | 8,113 | | | | $ | 1,832 | | $ | 3,603 | | | | | | |
Working capital changes | | (688) | | (920) | | (1,069) | | (521) | | | | (884) | | (642) | | | | | | |
Other, net | | - | | - | | - | | 77 | | | | - | | - | | | | | | |
Operating cash flow | | $ | 1,009 | | $ | 2,765 | | $ | 5,169 | | $ | 7,669 | | | | $ | 948 | | $ | 2,961 | | | | | | |
Capital expenditures | | $ | (1,032) | | $ | (2,319) | | $ | (3,638) | | $ | (4,975) | | | | $ | (1,259) | | $ | (2,470) | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SCHEDULE 2
Occidental Petroleum Corporation
Segment Results Before Tax Allocations
(Amounts in millions, except per share and effective tax rate amounts)
| | | | | | 2018 | | | | | | | | | | 2019 | | | | |
Reported Results | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 255 | | $ | 300 | | $ | 209 | | $ | (143) | | $ | 621 | | $ | 54 | | $ | 153 | | | | | | $ | 207 |
Foreign | | 502 | | 495 | | 571 | | 328 | | 1,896 | | 454 | | 596 | | | | | | 1,050 |
Exploration | | (7) | | (15) | | (13) | | (40) | | (75) | | (24) | | (23) | | | | | | (47) |
| | 750 | | 780 | | 767 | | 145 | | 2,442 | | 484 | | 726 | | | | | | 1,210 |
Chemical | | 298 | | 317 | | 321 | | 223 | | 1,159 | | 265 | | 208 | | | | | | 473 |
Midstream and Marketing | | 179 | | 250 | | 1,698 | | 675 | | 2,802 | | 279 | | 331 | | | | | | 610 |
Segment Income | | 1,227 | | 1,347 | | 2,786 | | 1,043 | | 6,403 | | 1,028 | | 1,265 | | | | | | 2,293 |
Corporate | | | | | | | | | | | | | | | | | | | | |
Interest | | (92) | | (91) | | (92) | | (81) | | (356) | | (83) | | (143) | | | | | | (226) |
Other | | (88) | | (106) | | (115) | | (130) | | (439) | | (89) | | (181) | | | | | | (270) |
Pre-tax Income | | 1,047 | | 1,150 | | 2,579 | | 832 | | 5,608 | | 856 | | 941 | | | | | | 1,797 |
Taxes | | | | | | | | | | | | | | | | | | | | |
Federal and state | | (95) | | (76) | | (362) | | 70 | | (463) | | (74) | | (38) | | | | | | (112) |
Foreign | | (244) | | (226) | | (348) | | (196) | | (1,014) | | (151) | | (268) | | | | | | (419) |
Net Income | | $ | 708 | | $ | 848 | | $ | 1,869 | | $ | 706 | | $ | 4,131 | | $ | 631 | | $ | 635 | | | | | | $ | 1,266 |
| | | | | | | | | | | | | | | | | | | | |
Reported earnings per share | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | $ | 5.40 | | $ | 0.84 | | $ | 0.84 | | | | | | $ | 1.68 |
Diluted | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | $ | 5.39 | | $ | 0.84 | | $ | 0.84 | | | | | | $ | 1.68 |
| | | | | | | | | | | | | | | | | | | | |
Effective Tax Rate | | 32% | | 26% | | 28% | | 15% | | 26% | | 26% | | 33% | | | | | | 30% |
| | | | | | | | | | | | | | | | | | | | |
Non-core Adjustments | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | $ | - | | | | | | $ | - |
Foreign | | - | | - | | (196) | | (220) | | (416) | | - | | - | | | | | | - |
Exploration | | - | | - | | - | | - | | - | | - | | - | | | | | | - |
| | - | | - | | (196) | | (220) | | (416) | | - | | - | | | | | | - |
Chemical | | - | | - | | - | | - | | - | | - | | - | | | | | | - |
Midstream and Marketing | | - | | - | | 902 | | 5 | | 907 | | - | | - | | | | | | - |
Segment Income (Loss) | | - | | - | | 706 | | (215) | | 491 | | - | | - | | | | | | - |
Corporate | | | | | | | | | | | | | | | | | | | | |
Interest | | - | | - | | - | | - | | - | | - | | (57) | | | | | | (57) |
Other | | - | | - | | - | | - | | - | | - | | (50) | | | | | | (50) |
Pre-tax Income (Loss) | | - | | - | | 706 | | (215) | | 491 | | - | | (107) | | | | | | (107) |
Taxes | | | | | | | | | | | | | | | | | | | | |
Federal and state | | - | | - | | (197) | | (1) | | (198) | | - | | 13 | | | | | | 13 |
Foreign | | - | | - | | - | | - | | - | | - | | - | | | | | | - |
Net Income (Loss) | | $ | - | | $ | - | | $ | 509 | | $ | (216) | | $ | 293 | | $ | - | | $ | (94) | | | | | | $ | (94) |
| | | | | | | | | | | | | | | | | | | | |
Core Results (Non-GAAP) | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 255 | | $ | 300 | | $ | 209 | | $ | (143) | | $ | 621 | | $ | 54 | | $ | 153 | | | | | | $ | 207 |
Foreign | | 502 | | 495 | | 767 | | 548 | | 2,312 | | 454 | | 596 | | | | | | 1,050 |
Exploration | | (7) | | (15) | | (13) | | (40) | | (75) | | (24) | | (23) | | | | | | (47) |
| | 750 | | 780 | | 963 | | 365 | | 2,858 | | 484 | | 726 | | | | | | 1,210 |
Chemical | | 298 | | 317 | | 321 | | 223 | | 1,159 | | 265 | | 208 | | | | | | 473 |
Midstream and Marketing | | 179 | | 250 | | 796 | | 670 | | 1,895 | | 279 | | 331 | | | | | | 610 |
Segment Income | | 1,227 | | 1,347 | | 2,080 | | 1,258 | | 5,912 | | 1,028 | | 1,265 | | | | | | 2,293 |
Corporate | | | | | | | | | | | | | | | | | | | | |
Interest | | (92) | | (91) | | (92) | | (81) | | (356) | | (83) | | (86) | | | | | | (169) |
Other | | (88) | | (106) | | (115) | | (130) | | (439) | | (89) | | (131) | | | | | | (220) |
Pre-tax Income | | 1,047 | | 1,150 | | 1,873 | | 1,047 | | 5,117 | | 856 | | 1,048 | | | | | | 1,904 |
Taxes | | | | | | | | | | | | | | | | | | | | |
Federal and state | | (95) | | (76) | | (165) | | 71 | | (265) | | (74) | | (51) | | | | | | (125) |
Foreign | | (244) | | (226) | | (348) | | (196) | | (1,014) | | (151) | | (268) | | | | | | (419) |
Core Income | | $ | 708 | | $ | 848 | | $ | 1,360 | | $ | 922 | | $ | 3,838 | | $ | 631 | | $ | 729 | | | | | | $ | 1,360 |
| | | | | | | | | | | | | | | | | | | | |
Core earnings per share | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.92 | | $ | 1.10 | | $ | 1.78 | | $ | 1.22 | | $ | 5.02 | | $ | 0.84 | | $ | 0.97 | | | | | | $ | 1.81 |
Diluted | | $ | 0.92 | | $ | 1.10 | | $ | 1.77 | | $ | 1.22 | | $ | 5.01 | | $ | 0.84 | | $ | 0.97 | | | | | | $ | 1.80 |
| | | | | | | | | | | | | | | | | | | | |
Effective Tax Rate | | 32% | | 26% | | 27% | | 12% | | 25% | | 26% | | 30% | | | | | | 29% |
| | | | | | | | | | | | | | | | | | | | |
Non-GAAP Measure
Core income is a non-GAAP measure. Occidental defines core income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. 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 net income is considered representative of management’s performance over the long term, and core income is not considered to be an alternative to net income reported in accordance with GAAP.
SCHEDULE 3
Occidental Petroleum Corporation
Segment Results After Tax Allocations
(Amounts in millions, except per share amounts)
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
Reported Results | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 199 | | $ | 233 | | $ | 163 | | $ | (111) | | | $ | 484 | | $ | 42 | | $ | 119 | | | | | | | $ | 161 |
Foreign | | 255 | | 247 | | 260 | | 62 | | | 824 | | 248 | | 351 | | | | | | | 599 |
Exploration | | (7) | | (12) | | (11) | | (34) | | | (64) | | (22) | | (21) | | | | | | | (43) |
| | 447 | | 468 | | 412 | | (83) | | | 1,244 | | 268 | | 449 | | | | | | | 717 |
Chemical | | 230 | | 247 | | 248 | | 160 | | | 885 | | 205 | | 159 | | | | | | | 364 |
Midstream and Marketing | | 146 | | 209 | | 1,342 | | 541 | | | 2,238 | | 227 | | 274 | | | | | | | 501 |
Segment Income | | 823 | | 924 | | 2,002 | | 618 | | | 4,367 | | 700 | | 882 | | | | | | | 1,582 |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
Interest | | (92) | | (91) | | (92) | | (81) | | | (356) | | (83) | | (130) | | | | | | | (213) |
Other | | (88) | | (106) | | (115) | | (130) | | | (439) | | (89) | | (181) | | | | | | | (270) |
Taxes | | 65 | | 121 | | 74 | | 299 | | | 559 | | 103 | | 64 | | | | | | | 167 |
Net Income | | $ | 708 | | $ | 848 | | $ | 1,869 | | $ | 706 | | | $ | 4,131 | | $ | 631 | | $ | 635 | | | | | | | $ | 1,266 |
| | | | | | | | | | | | | | | | | | | | | | |
Reported earnings per share | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | | $ | 5.40 | | $ | 0.84 | | $ | 0.84 | | | | | | | $ | 1.68 |
Diluted | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | | $ | 5.39 | | $ | 0.84 | | $ | 0.84 | | | | | | | $ | 1.68 |
| | | | | | | | | | | | | | | | | | | | | | |
Non-core Adjustments | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | - | | $ | - | | $ | - | | $ | - | | | $ | - | | $ | - | | $ | - | | | | | | | $ | - |
Foreign | | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
Exploration | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
| | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
Chemical | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Midstream and Marketing | | - | | - | | 705 | | 4 | | | 709 | | - | | - | | | | | | | - |
Segment Income (Loss) | | - | | - | | 509 | | (216) | | | 293 | | - | | - | | | | | | | - |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
Interest | | - | | - | | - | | - | | | - | | - | | (44) | | | | | | | (44) |
Other | | - | | - | | - | | - | | | - | | - | | (50) | | | | | | | (50) |
Taxes | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Net Income (Loss) | | $ | - | | $ | - | | $ | 509 | | $ | (216) | | | $ | 293 | | $ | - | | $ | (94) | | | | | | | $ | (94) |
| | | | | | | | | | | | | | | | | | | | | | |
Core Results (Non-GAAP) | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | 199 | | $ | 233 | | $ | 163 | | $ | (111) | | | $ | 484 | | $ | 42 | | $ | 119 | | | | | | | $ | 161 |
Foreign | | 255 | | 247 | | 456 | | 282 | | | 1,240 | | 248 | | 351 | | | | | | | 599 |
Exploration | | (7) | | (12) | | (11) | | (34) | | | (64) | | (22) | | (21) | | | | | | | (43) |
| | 447 | | 468 | | 608 | | 137 | | | 1,660 | | 268 | | 449 | | | | | | | 717 |
Chemical | | 230 | | 247 | | 248 | | 160 | | | 885 | | 205 | | 159 | | | | | | | 364 |
Midstream and Marketing | | 146 | | 209 | | 637 | | 537 | | | 1,529 | | 227 | | 274 | | | | | | | 501 |
Segment Income | | 823 | | 924 | | 1,493 | | 834 | | | 4,074 | | 700 | | 882 | | | | | | | 1,582 |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
Interest | | (92) | | (91) | | (92) | | (81) | | | (356) | | (83) | | (86) | | | | | | | (169) |
Other | | (88) | | (106) | | (115) | | (130) | | | (439) | | (89) | | (131) | | | | | | | (220) |
Taxes | | 65 | | 121 | | 74 | | 299 | | | 559 | | 103 | | 64 | | | | | | | 167 |
Core Income | | $ | 708 | | $ | 848 | | $ | 1,360 | | $ | 922 | | | $ | 3,838 | | $ | 631 | | $ | 729 | | | | | | | $ | 1,360 |
| | | | | | | | | | | | | | | | | | | | | | |
Core earnings per share | | | | | | | | | | | | | | | | | | | | | | |
Basic | | $ | 0.92 | | $ | 1.10 | | $ | 1.78 | | $ | 1.22 | | | $ | 5.02 | | $ | 0.84 | | $ | 0.97 | | | | | | | $ | 1.81 |
Diluted | | $ | 0.92 | | $ | 1.10 | | $ | 1.77 | | $ | 1.22 | | | $ | 5.01 | | $ | 0.84 | | $ | 0.97 | | | | | | | $ | 1.80 |
| | | | | | | | | | | | | | | | | | | | | | |
Reconciliation - Diluted Earnings Per Share | | | | | | | | | | | | | | | | | | | | | | |
Reported Diluted Earnings Per Share (GAAP) | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | | $ | 5.39 | | $ | 0.84 | | $ | 0.84 | | | | | | | $ | 1.68 |
After-Tax Non-Core Adjustments | | | | | | | | | | | | | | | | | | | | | | |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | $ | - | | $ | - | | $ | - | | $ | - | | | $ | - | | $ | - | | $ | - | | | | | | | $ | - |
Foreign | | - | | - | | (0.26) | | (0.29) | | | (0.55) | | - | | - | | | | | | | - |
Exploration | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Chemical | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Midstream and Marketing | | - | | - | | 0.93 | | - | | | 0.93 | | - | | - | | | | | | | - |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
Interest | | - | | - | | - | | - | | | - | | - | | (0.06) | | | | | | | (0.06) |
Other | | - | | - | | - | | - | | | - | | - | | (0.07) | | | | | | | (0.06) |
Taxes | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Total After-Tax Non-Core Adjustments | | $ | - | | $ | - | | $ | 0.67 | | $ | (0.29) | | | $ | 0.38 | | $ | - | | $ | (0.13) | | | | | | | $ | (0.12) |
| | | | | | | | | | | | | | | | | | | | | | |
Core Diluted Earnings Per Share (Non-GAAP) | | $ | 0.92 | | $ | 1.10 | | $ | 1.77 | | $ | 1.22 | | | $ | 5.01 | | $ | 0.84 | | $ | 0.97 | | | | | | | $ | 1.80 |
| | | | | | | | | | | | | | | | | | | | | | |
Average Diluted Shares Outstanding (millions) | | 767.0 | | 767.4 | | 763.3 | | 755.4 | | | 763.3 | | 750.5 | | 749.5 | | | | | | | 750.0 |
The difference between reported average diluted shares outstanding and core average diluted shares outstanding is immaterial and does not impact the calculation of core earnings per share. As such, core earnings per share is calculated as core income divided by reported average diluted shares outstanding.
SCHEDULE 4
Occidental Petroleum Corporation
Non-Core Adjustments Detail
(Amounts in millions)
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
Before Tax Allocations | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | | | | | | | | | | | | | | | | | | | | | |
No non-core items | | $ | - | | $ | - | | $ | - | | $ | - | | | $ | - | | $ | - | | $ | - | | | | | | | $ | - |
| | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Foreign | | | | | | | | | | | | | | | | | | | | | | |
Asset impairments and related items | | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Total Oil and Gas | | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Chemical | | | | | | | | | | | | | | | | | | | | | | |
No non-core items | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Total Chemical | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Midstream and Marketing | | | | | | | | | | | | | | | | | | | | | | |
Asset and equity investment gains | | - | | - | | 902 | | 5 | | | 907 | | - | | - | | | | | | | - |
Total Midstream and Marketing | | - | | - | | 902 | | 5 | | | 907 | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
APC transaction costs & debt financing | | - | | - | | - | | - | | | - | | - | | (107) | | | | | | | (107) |
Total Corporate | | - | | - | | - | | - | | | - | | - | | (107) | | | | | | | (107) |
| | | | | | | | | | | | | | | | | | | | | | |
Taxes | | - | | - | | (197) | | (1) | | | (198) | | - | | 13 | | | | | | | 13 |
Totals | | $ | - | | $ | - | | $ | 509 | | $ | (216) | | | $ | 293 | | $ | - | | $ | (94) | | | | | | | $ | (94) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
After Tax Allocations | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Domestic | | | | | | | | | | | | | | | | | | | | | | |
No non-core items | | $ | - | | $ | - | | $ | - | | $ | - | | | $ | - | | $ | - | | $ | - | | | | | | | $ | - |
| | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Foreign | | | | | | | | | | | | | | | | | | | | | | |
Asset impairments and related items | | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Total Oil and Gas | | - | | - | | (196) | | (220) | | | (416) | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Chemical | | | | | | | | | | | | | | | | | | | | | | |
No non-core items | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Total Chemical | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Midstream and Marketing | | | | | | | | | | | | | | | | | | | | | | |
Asset and equity sales gains | | - | | - | | 705 | | 4 | | | 709 | | - | | - | | | | | | | - |
Total Midstream and Marketing | | - | | - | | 705 | | 4 | | | 709 | | - | | - | | | | | | | - |
| | | | | | | | | | | | | | | | | | | | | | |
Corporate | | | | | | | | | | | | | | | | | | | | | | |
APC transaction costs & debt financing | | - | | - | | - | | - | | | - | | - | | (94) | | | | | | | (94) |
Total Corporate | | - | | - | | - | | - | | | - | | - | | (94) | | | | | | | (94) |
| | | | | | | | | | | | | | | | | | | | | | |
Taxes | | - | | - | | - | | - | | | - | | - | | - | | | | | | | - |
Income (Loss) | | - | | - | | 509 | | (216) | | | 293 | | - | | (94) | | | | | | | (94) |
Totals | | $ | - | | $ | - | | $ | 509 | | $ | (216) | | | $ | 293 | | $ | - | | $ | (94) | | | | | | | $ | (94) |
SCHEDULE 5
Occidental Petroleum Corporation
Consolidated Condensed Statements of Operations
(Amounts in millions, except per-share amounts)
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
| | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
REVENUES | | | | | | | | | | | | | | | | | | | | | | |
Net sales | | | | | | | | | | | | | | | | | | | | | | |
Oil & Gas | | $ | 2,454 | | $ | 2,531 | | $ | 2,889 | | $ | 2,567 | | | $ | 10,441 | | $ | 2,351 | | $ | 2,718 | | | | | | | $ | 5,069 |
Chemical | | 1,154 | | 1,176 | | 1,185 | | 1,142 | | | 4,657 | | 1,059 | | 998 | | | | | | | 2,057 |
Midstream and Marketing | | 389 | | 603 | | 1,367 | | 1,297 | | | 3,656 | | 816 | | 909 | | | | | | | 1,725 |
Eliminations | | (234) | | (227) | | (225) | | (244) | | | (930) | | (222) | | (205) | | | | | | | (427) |
| | 3,763 | | 4,083 | | 5,216 | | 4,762 | | | 17,824 | | 4,004 | | 4,420 | | | | | | | 8,424 |
Interest, dividends and other income | | 29 | | 38 | | 34 | | 35 | | | 136 | | 78 | | 41 | | | | | | | 119 |
Gains on sale of assets, net | | 33 | | 10 | | 926 | | 5 | | | 974 | | 7 | | 15 | | | | | | | 22 |
| | 3,825 | | 4,131 | | 6,176 | | 4,802 | | | 18,934 | | 4,089 | | 4,476 | | | | | | | 8,565 |
| | | | | | | | | | | | | | | | | | | | | | |
COSTS AND OTHER DEDUCTIONS | | | | | | | | | | | | | | | | | | | | | | |
Cost of sales | | 1,350 | | 1,365 | | 1,443 | | 1,605 | | | 5,763 | | 1,345 | | 1,386 | | | | | | | 2,731 |
Purchased commodities | | 13 | | 100 | | 343 | | 349 | | | 805 | | 365 | | 431 | | | | | | | 796 |
Selling, general and administrative expenses | | 130 | | 142 | | 151 | | 162 | | | 585 | | 140 | | 163 | | | | | | | 303 |
Other operating and non-operating expenses | | 177 | | 260 | | 280 | | 311 | | | 1,028 | | 238 | | 260 | | | | | | | 498 |
Taxes other than on income | | 108 | | 115 | | 110 | | 106 | | | 439 | | 111 | | 123 | | | | | | | 234 |
Depreciation, depletion and amortization | | 921 | | 947 | | 1,023 | | 1,086 | | | 3,977 | | 973 | | 1,031 | | | | | | | 2,004 |
Asset impairments and related items | | 30 | | 12 | | 214 | | 305 | | | 561 | | - | | - | | | | | | | - |
Anadarko transaction-related costs | | - | | - | | - | | - | | | - | | - | | 50 | | | | | | | 50 |
Exploration expense | | 15 | | 21 | | 24 | | 50 | | | 110 | | 36 | | 35 | | | | | | | 71 |
Interest and debt expense, net | | 97 | | 97 | | 96 | | 99 | | | 389 | | 98 | | 153 | | | | | | | 251 |
| | 2,841 | | 3,059 | | 3,684 | | 4,073 | | | 13,657 | | 3,306 | | 3,632 | | | | | | | 6,938 |
INCOME BEFORE INCOME TAXES AND OTHER ITEMS | | 984 | | 1,072 | | 2,492 | | 729 | | | 5,277 | | 783 | | 844 | | | | | | | 1,627 |
Provision for domestic and foreign income taxes | | (339) | | (302) | | (710) | | (126) | | | (1,477) | | (225) | | (306) | | | | | | | (531) |
Income from equity investments | | 63 | | 78 | | 87 | | 103 | | | 331 | | 73 | | 97 | | | | | | | 170 |
NET INCOME | | $ | 708 | | $ | 848 | | $ | 1,869 | | $ | 706 | | | $ | 4,131 | | $ | 631 | | $ | 635 | | | | | | | $ | 1,266 |
| | | | | | | | | | | | | | | | | | | | | | |
EARNINGS PER SHARE | | | | | | | | | | | | | | | | | | | | | | |
BASIC EARNINGS PER COMMON SHARE | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | | $ | 5.40 | | $ | 0.84 | | $ | 0.84 | | | | | | | $ | 1.68 |
DILUTED EARNINGS PER COMMON SHARE | | $ | 0.92 | | $ | 1.10 | | $ | 2.44 | | $ | 0.93 | | | $ | 5.39 | | $ | 0.84 | | $ | 0.84 | | | | | | | $ | 1.68 |
| | | | | | | | | | | | | | | | | | | | | | |
DIVIDENDS PER COMMON SHARE | | $ | 0.77 | | $ | 0.77 | | $ | 0.78 | | $ | 0.78 | | | $ | 3.10 | | $ | 0.78 | | $ | 0.78 | | | | | | | $ | 1.56 |
| | | | | | | | | | | | | | | | | | | | | | |
AVERAGE COMMON SHARES OUTSTANDING | | | | | | | | | | | | | | | | | | | | | | |
BASIC | | 765.6 | | 765.7 | | 761.7 | | 753.8 | | | 761.7 | | 748.9 | | 748.3 | | | | | | | 748.7 |
DILUTED | | 767.0 | | 767.4 | | 763.3 | | 755.4 | | | 763.3 | | 750.5 | | 749.5 | | | | | | | 750.0 |
| | | | | | | | | | | | | | | | | | | | | | |
Reconciliation - Return on Capital Employed | | | | | | | | | | | | | | | | | | | | | | | |
Net Income | | | | | | | | | | | $ | 4,131 | | | | $ | 1,266 | | | | | | | |
Interest and debt expense, net | | | | | | | | | | | 389 | | | | 251 | | | | | | | |
Interest income | | | | | | | | | | | (33) | | | | (25) | | | | | | | |
Income tax | | | | | | | | | | | (75) | | | | (47) | | | | | | | |
Net Income plus after-tax net interest expense | | | | | | | | | | | $ | 4,412 | | | | $ | 1,445 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net Income plus after-tax net interest expense (annualized) | | | | | | | | | | | $ | 4,412 | | | | $ | 2,890 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, net (current and long-term) at December 31, 2017 | | | | | | | | | | | $ | 9,828 | | | | | | | | | | | |
Total stockholders' equity at December 31, 2017 | | | | | | | | | | | 20,572 | | | | | | | | | | | |
Total debt and stockholders' equity at December 31, 2017 | | | | | | | | | | | $ | 30,400 | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, net (current and long-term) at December 31, 2018 | | | | | | | | | | | $ | 10,317 | | | | $ | 10,317 | | | | | | | |
Total stockholders’ equity at December 31, 2018 | | | | | | | | | | | 21,330 | | | | 21,330 | | | | | | | |
Total debt and stockholders’ equity at December 31, 2018 | | | | | | | | | | | $ | 31,647 | | | | $ | 31,647 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Long-term debt, net (current and long-term) at June 30, 2019 | | | | | | | | | | | | | | | $ | 10,271 | | | | | | | |
Total stockholders’ equity at June 30, 2019 | | | | | | | | | | | | | | | 21,347 | | | | | | | |
Total debt and stockholders’ equity at June 30, 2019 | | | | | | | | | | | | | | | $ | 31,618 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Average capital employed | | | | | | | | | | | $ | 31,024 | | | | $ | 31,633 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Return on capital employed (annualized) | | | | | | | | | | | 14% | | | | 9% | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Reconciliation - Cash Return on Capital Employed | | | | | | | | | | | | | | | | | | | | | | | |
Net Income plus after-tax net interest expense | | | | | | | | | | | $ | 4,412 | | | | $ | 1,445 | | | | | | | |
Depreciation, depletion and amortization (DD&A) | | | | | | | | | | | 3,977 | | | | 2,004 | | | | | | | |
Net Income plus after-tax net interest expense and DD&A | | | | | | | | | | | $ | 8,389 | | | | $ | 3,449 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net Income plus after-tax net interest expense and DD&A (annualized) | | | | | | | | | | | $ | 8,389 | | | | $ | 6,898 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Cash return on capital employed (annualized) | | | | | | | | | | | | 27% | | | | 22% | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
Non-GAAP Measure | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ROCE is defined by Occidental as net income plus after-tax net interest expense divided by average total debt plus stockholders’ equity. CROCE is ROCE that adds back DD&A. This definition may differ from the definition used by other companies. Management believes that ROCE and CROCE are useful to investors as a performance measure when comparing our profitability and the efficiency with which management has employed capital over time relative to other companies. ROCE and CROCE are not considered to be an alternative to net income reported in accordance with GAAP.
SCHEDULE 6
Occidental Petroleum Corporation
Consolidated Condensed Balance Sheets
(Amounts in millions)
| 2018 | | 2019 |
| | MAR | | JUN | | SEP | | DEC | | MAR | | JUN | | SEP | | DEC |
CURRENT ASSETS | | | | | | | | | | | | | | | | |
Cash and cash equivalents | | $ | 1,606 | | $ | 1,362 | | $ | 2,954 | | $ | 3,033 | | $ | 1,752 | | $ | 1,751 | | | | |
Trade receivables, net | | 5,184 | | 5,521 | | 6,000 | | 4,893 | | 5,310 | | 5,273 | | | | |
Inventories | | 1,057 | | 1,347 | | 1,009 | | 1,260 | | 1,484 | | 1,582 | | | | |
Assets held for sale | | 335 | | 1,664 | | - | | - | | - | | - | | | | |
Other current assets | | 712 | | 1,096 | | 1,149 | | 746 | | 724 | | 819 | | | | |
Total current assets | | 8,894 | | 10,990 | | 11,112 | | 9,932 | | 9,270 | | 9,425 | | | | |
INVESTMENTS | | | | | | | | | | | | | | | | |
Investments in unconsolidated entities | | 1,509 | | 1,551 | | 1,568 | | 1,680 | | 1,725 | | 1,777 | | | | |
PROPERTY, PLANT AND EQUIPMENT | | | | | | | | | | | | | | | | |
Property, plant and equipment | | 71,262 | | 71,214 | | 72,980 | | 74,420 | | 75,813 | | 77,004 | | | | |
Accumulated depreciation, depletion and amortization | | (39,918) | | (40,782) | | (41,825) | | (42,983) | | (43,913) | | (44,889) | | | | |
| | 31,344 | | 30,432 | | 31,155 | | 31,437 | | 31,900 | | 32,115 | | | | |
OPERATING LEASE ASSETS | | - | | - | | - | | - | | 684 | | 681 | | | | |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | | 1,061 | | 1,094 | | 1,122 | | 805 | | 801 | | 772 | | | | |
TOTAL ASSETS | | $ | 42,808 | | $ | 44,067 | | $ | 44,957 | | $ | 43,854 | | $ | 44,380 | | $ | 44,770 | | | | |
| | | | | | | | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | | | | | | | | | |
Current maturities of long-term debt | | $ | - | | $ | - | | $ | 116 | | $ | 116 | | $ | 116 | | $ | 116 | | | | |
Current lease liabilities | | - | | - | | - | | - | | 240 | | 252 | | | | |
Accounts payable | | 5,059 | | 5,412 | | 5,443 | | 4,885 | | 5,261 | | 5,445 | | | | |
Accrued liabilities | | 2,011 | | 2,521 | | 2,813 | | 2,411 | | 1,920 | | 2,067 | | | | |
Liabilities of assets held for sale | | - | | 145 | | - | | - | | - | | - | | | | |
Total current liabilities | | 7,070 | | 8,078 | | 8,372 | | 7,412 | | 7,537 | | 7,880 | | | | |
LONG-TERM DEBT, NET | | 10,309 | | 10,312 | | 10,198 | | 10,201 | | 10,203 | | 10,155 | | | | |
DEFERRED CREDITS AND OTHER LIABILITIES | | | | | | | | | | | | | | | | |
Deferred domestic and foreign income taxes | | 659 | | 738 | | 1,162 | | 907 | | 918 | | 950 | | | | |
Asset retirement obligations | | 1,248 | | 1,244 | | 1,249 | | 1,424 | | 1,430 | | 1,433 | | | | |
Pension and post retirement obligations | | 1,008 | | 1,010 | | 828 | | 809 | | 816 | | 819 | | | | |
Environmental remediation reserves | | 729 | | 731 | | 740 | | 762 | | 755 | | 764 | | | | |
Lease liabilities | | - | | - | | - | | - | | 465 | | 445 | | | | |
Other | | 1,063 | | 1,023 | | 919 | | 1,009 | | 1,020 | | 977 | | | | |
| | 4,707 | | 4,746 | | 4,898 | | 4,911 | | 5,404 | | 5,388 | | | | |
STOCKHOLDERS’ EQUITY | | | | | | | | | | | | | | | | |
Common stock, $.20 per share par value | | 179 | | 179 | | 179 | | 179 | | 179 | | 179 | | | | |
Treasury stock | | (9,168) | | (9,268) | | (10,162) | | (10,473) | | (10,653) | | (10,653) | | | | |
Additional paid-in capital | | 7,916 | | 7,967 | | 7,991 | | 8,046 | | 8,083 | | 8,157 | | | | |
Retained earnings | | 22,107 | | 22,361 | | 23,635 | | 23,750 | | 23,795 | | 23,848 | | | | |
Accumulated other comprehensive loss | | (312) | | (308) | | (154) | | (172) | | (168) | | (184) | | | | |
Total equity attributable to common stock | | 20,722 | | 20,931 | | 21,489 | | 21,330 | | 21,236 | | 21,347 | | | | |
| | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | | $ | 42,808 | | $ | 44,067 | | $ | 44,957 | | $ | 43,854 | | $ | 44,380 | | $ | 44,770 | | | | |
SCHEDULE 7
Occidental Petroleum Corporation
Consolidated Condensed Statements of Cash Flows and Detail of CAPEX and DD&A
(Amounts in millions)
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
| | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
OPERATING CASH FLOW | | | | | | | | | | | | | | | | | | | | | | |
Net income | | $ | 708 | | $ | 848 | | $ | 1,869 | | $ | 706 | | | $ | 4,131 | | $ | 631 | | $ | 635 | | | | | | | $ | 1,266 |
Depreciation, depletion and amortization (see detail below) | | 921 | | 947 | | 1,023 | | 1,086 | | | 3,977 | | 973 | | 1,031 | | | | | | | 2,004 |
Deferred income tax (benefit) provision | | 94 | | 77 | | 379 | | (179) | | | 371 | | 10 | | 37 | | | | | | | 47 |
Asset impairments and other non-cash charges | | (26) | | 116 | | (718) | | 262 | | | (366) | | 218 | | 68 | | | | | | | 286 |
Operating cash flow before working capital | | 1,697 | | 1,988 | | 2,553 | | 1,875 | | | 8,113 | | 1,832 | | 1,771 | | | | | | | 3,603 |
Working capital changes | | (688) | | (232) | | (149) | | 548 | | | (521) | | (884) | | 242 | | | | | | | (642) |
Other, net | | - | | - | | - | | 77 | | | 77 | | - | | - | | | | | | | - |
Operating cash flow | | 1,009 | | 1,756 | | 2,404 | | 2,500 | | | 7,669 | | 948 | | 2,013 | | | | | | | 2,961 |
| | | | | | | | | | | | | | | | | | | | | | |
INVESTING CASH FLOW | | | | | | | | | | | | | | | | | | | | | | |
Capital expenditures (see detail below) | | (1,032) | | (1,287) | | (1,319) | | (1,337) | | | (4,975) | | (1,259) | | (1,211) | | | | | | | (2,470) |
Payments for purchases of assets and businesses | | (177) | | (65) | | (484) | | (202) | | | (928) | | (69) | | (7) | | | | | | | (76) |
Sales of assets, net | | 275 | | 55 | | 2,415 | | 79 | | | 2,824 | | 16 | | 16 | | | | | | | 32 |
Changes in capital accrual | | (45) | | 39 | | 13 | | 48 | | | 55 | | (51) | | (57) | | | | | | | (108) |
Other investing activities | | 8 | | (57) | | (39) | | (94) | | | (182) | | (52) | | (29) | | | | | | | (81) |
Investing cash flow | | (971) | | (1,315) | | 586 | | (1,506) | | | (3,206) | | (1,415) | | (1,288) | | | | | | | (2,703) |
| | | | | | | | | | | | | | | | | | | | | | |
FINANCING CASH FLOW | | | | | | | | | | | | | | | | | | | | | | |
Cash dividends paid | | (592) | | (593) | | (595) | | (594) | | | (2,374) | | (591) | | (587) | | | | | | | (1,178) |
Purchases of treasury stock | | - | | (97) | | (811) | | (340) | | | (1,248) | | (237) | | - | | | | | | | (237) |
Proceeds from long-term debt, net of issuance costs | | 978 | | - | | - | | - | | | 978 | | - | | (108) | | | | | | | (108) |
Payment of long-term debt | | (500) | | - | | - | | - | | | (500) | | - | | - | | | | | | | - |
Other financing activities | | 10 | | 5 | | 8 | | 19 | | | 42 | | 14 | | (31) | | | | | | | (17) |
Financing cash flow | | (104) | | (685) | | (1,398) | | (915) | | | (3,102) | | (814) | | (726) | | | | | | | (1,540) |
| | | | | | | | | | | | | | | | | | | | | | |
Increase (decrease) in cash and cash equivalents | | (66) | | (244) | | 1,592 | | 79 | | | 1,361 | | (1,281) | | (1) | | | | | | | (1,282) |
Cash and cash equivalents - beginning of period | | 1,672 | | 1,606 | | 1,362 | | 2,954 | | | 1,672 | | 3,033 | | 1,752 | | | | | | | 3,033 |
Cash and cash equivalents - end of period | | $ | 1,606 | | $ | 1,362 | | $ | 2,954 | | $ | 3,033 | | | $ | 3,033 | | $ | 1,752 | | $ | 1,751 | | | | | | | $ | 1,751 |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Capital Expenditures | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Permian Resources | | $ | (574) | | $ | (742) | | $ | (783) | | $ | (674) | | | $ | (2,773) | | $ | (775) | | $ | (747) | | | | | | | $ | (1,522) |
Permian EOR | | (124) | | (116) | | (119) | | (159) | | | (518) | | (133) | | (135) | | | | | | | (268) |
Other Domestic | | (4) | | (2) | | - | | (3) | | | (9) | | (6) | | (5) | | | | | | | (11) |
Latin America | | (28) | | (59) | | (54) | | (71) | | | (212) | | (34) | | (35) | | | | | | | (69) |
Middle East | | (174) | | (180) | | (160) | | (151) | | | (665) | | (155) | | (153) | | | | | | | (308) |
Exploration Drilling | | (36) | | (25) | | (48) | | (127) | | | (236) | | (77) | | (40) | | | | | | | (117) |
Chemical | | (41) | | (60) | | (74) | | (96) | | | (271) | | (38) | | (54) | | | | | | | (92) |
Midstream and Marketing | | (44) | | (81) | | (68) | | (23) | | | (216) | | (26) | | (26) | | | | | | | (52) |
Corporate | | (7) | | (22) | | (13) | | (33) | | | (75) | | (15) | | (16) | | | | | | | (31) |
| | $ | (1,032) | | $ | (1,287) | | $ | (1,319) | | $ | (1,337) | | | $ | (4,975) | | $ | (1,259) | | $ | (1,211) | | | | | | | $ | (2,470) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Depreciation, Depletion and Amortization | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 502 | | $ | 556 | | $ | 611 | | $ | 652 | | | $ | 2,321 | | $ | 570 | | $ | 615 | | | | | | | $ | 1,185 |
Latin America | | 27 | | 25 | | 26 | | 24 | | | 102 | | 26 | | 37 | | | | | | | 63 |
Middle East | | 208 | | 183 | | 209 | | 231 | | | 831 | | 199 | | 200 | | | | | | | 399 |
Chemical | | 87 | | 88 | | 89 | | 90 | | | 354 | | 89 | | 92 | | | | | | | 181 |
Midstream and Marketing | | 87 | | 86 | | 78 | | 80 | | | 331 | | 79 | | 76 | | | | | | | 155 |
Corporate | | 10 | | 9 | | 10 | | 9 | | | 38 | | 10 | | 11 | | | | | | | 21 |
| | $ | 921 | | $ | 947 | | $ | 1,023 | | $ | 1,086 | | | $ | 3,977 | | $ | 973 | | $ | 1,031 | | | | | | | $ | 2,004 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SCHEDULE 8
Occidental Petroleum Corporation
Oil & Gas Net Production Volumes Per Day by Geographical Locations
TOTAL REPORTED PRODUCTION
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
REPORTED NET MBOE VOLUMES PER DAY: | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
United States | | | | | | | | | | | | | | | | | | | | | | |
Permian Resources | | 177 | | 201 | | 225 | | 250 | | | 214 | | 261 | | 289 | | | | | | | 275 |
Permian EOR | | 154 | | 153 | | 155 | | 156 | | | 154 | | 156 | | 153 | | | | | | | 155 |
Other Domestic | | 5 | | 4 | | 4 | | 4 | | | 4 | | 4 | | 4 | | | | | | | 4 |
Total | | 336 | | 358 | | 384 | | 410 | | | 372 | | 421 | | 446 | | | | | | | 434 |
| | | | | | | | | | | | | | | | | | | | | | |
Latin America | | 33 | | 32 | | 31 | | 31 | | | 32 | | 33 | | 35 | | | | | | | 34 |
| | | | | | | | | | | | | | | | | | | | | | |
Middle East | | | | | | | | | | | | | | | | | | | | | | |
Al Hosn | | 61 | | 68 | | 81 | | 82 | | | 73 | | 82 | | 82 | | | | | | | 82 |
Dolphin | | 36 | | 41 | | 41 | | 40 | | | 40 | | 40 | | 40 | | | | | | | 40 |
Oman | | 85 | | 89 | | 88 | | 84 | | | 86 | | 91 | | 86 | | | | | | | 88 |
Qatar | | 58 | | 51 | | 56 | | 53 | | | 55 | | 52 | | 52 | | | | | | | 52 |
Total | | 240 | | 249 | | 266 | | 259 | | | 254 | | 265 | | 260 | | | | | | | 262 |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL REPORTED PRODUCTION | | 609 | | 639 | | 681 | | 700 | | | 658 | | 719 | | 741 | | | | | | | 730 |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
REPORTED NET PRODUCTION VOLUMES PER DAY BY COMMODITY: | | | | | | | | | | | | | | | | | | | | | | |
United States | | | | | | | | | | | | | | | | | | | | | | |
Oil (MBBL) | | | | | | | | | | | | | | | | | | | | | | |
Permian Resources | | 109 | | 123 | | 139 | | 155 | | | 132 | | 157 | | 170 | | | | | | | 164 |
Permian EOR | | 117 | | 116 | | 116 | | 118 | | | 117 | | 118 | | 117 | | | | | | | 117 |
Other Domestic | | 2 | | 1 | | 1 | | 1 | | | 1 | | 2 | | 2 | | | | | | | 2 |
Total | | 228 | | 240 | | 256 | | 274 | | | 250 | | 277 | | 289 | | | | | | | 283 |
NGLs (MBBL) | | | | | | | | | | | | | | | | | | | | | | |
Permian Resources | | 31 | | 37 | | 41 | | 45 | | | 38 | | 49 | | 58 | | | | | | | 53 |
Permian EOR | | 28 | | 28 | | 31 | | 30 | | | 29 | | 30 | | 29 | | | | | | | 30 |
Other Domestic | | - | | - | | 1 | | - | | | - | | - | | - | | | | | | | - |
Total | | 59 | | 65 | | 73 | | 75 | | | 67 | | 79 | | 87 | | | | | | | 83 |
Natural Gas (MMCF) | | | | | | | | | | | | | | | | | | | | | | |
Permian Resources | | 222 | | 246 | | 270 | | 300 | | | 261 | | 330 | | 364 | | | | | | | 348 |
Permian EOR | | 56 | | 54 | | 48 | | 48 | | | 50 | | 46 | | 44 | | | | | | | 45 |
Other Domestic | | 16 | | 16 | | 14 | | 17 | | | 16 | | 13 | | 11 | | | | | | | 12 |
Total | | 294 | | 316 | | 332 | | 365 | | | 327 | | 389 | | 419 | | | | | | | 405 |
| | | | | | | | | | | | | | | | | | | | | | |
Latin America | | | | | | | | | | | | | | | | | | | | | | |
Oil (MBBL) | | 32 | | 31 | | 30 | | 30 | | | 31 | | 32 | | 34 | | | | | | | 33 |
Natural Gas (MMCF) | | 6 | | 6 | | 6 | | 6 | | | 6 | | 7 | | 7 | | | | | | | 7 |
| | | | | | | | | | | | | | | | | | | | | | |
Middle East | | | | | | | | | | | | | | | | | | | | | | |
Oil (MBBL) | | | | | | | | | | | | | | | | | | | | | | |
Al Hosn | | 11 | | 12 | | 14 | | 15 | | | 13 | | 14 | | 14 | | | | | | | 14 |
Dolphin | | 6 | | 7 | | 7 | | 6 | | | 7 | | 6 | | 7 | | | | | | | 7 |
Oman | | 64 | | 65 | | 63 | | 62 | | | 63 | | 68 | | 65 | | | | | | | 66 |
Qatar | | 58 | | 51 | | 56 | | 53 | | | 55 | | 52 | | 52 | | | | | | | 52 |
Total | | 139 | | 135 | | 140 | | 136 | | | 138 | | 140 | | 138 | | | | | | | 139 |
NGLs (MBBL) | | | | | | | | | | | | | | | | | | | | | | |
Al Hosn | | 19 | | 22 | | 26 | | 26 | | | 23 | | 26 | | 26 | | | | | | | 26 |
Dolphin | | 7 | | 8 | | 8 | | 8 | | | 8 | | 8 | | 8 | | | | | | | 8 |
Total | | 26 | | 30 | | 34 | | 34 | | | 31 | | 34 | | 34 | | | | | | | 34 |
Natural Gas (MMCF) | | | | | | | | | | | | | | | | | | | | | | |
Al Hosn | | 183 | | 204 | | 246 | | 245 | | | 220 | | 250 | | 251 | | | | | | | 251 |
Dolphin | | 139 | | 156 | | 158 | | 154 | | | 152 | | 154 | | 152 | | | | | | | 152 |
Oman | | 127 | | 146 | | 148 | | 134 | | | 139 | | 140 | | 125 | | | | | | | 133 |
Total | | 449 | | 506 | | 552 | | 533 | | | 511 | | 544 | | 528 | | | | | | | 536 |
SCHEDULE 9
Occidental Petroleum Corporation
Oil & Gas Sales Volumes Per Day and Realized Prices by Geographical Locations
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
NET SALES MBOE VOLUMES PER DAY: | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
| | | | | | | | | | | | | | | | | | | | | | |
United States | | 336 | | 358 | | 384 | | 410 | | | 372 | | 421 | | 446 | | | | | | | 434 |
| | | | | | | | | | | | | | | | | | | | | | |
Latin America | | 33 | | 31 | | 32 | | 30 | | | 32 | | 28 | | 38 | | | | | | | 33 |
| | | | | | | | | | | | | | | | | | | | | | |
Middle East | | | | | | | | | | | | | | | | | | | | | | |
Al Hosn | | 61 | | 68 | | 81 | | 82 | | | 73 | | 82 | | 82 | | | | | | | 82 |
Dolphin | | 37 | | 41 | | 41 | | 41 | | | 40 | | 39 | | 41 | | | | | | | 40 |
Oman | | 85 | | 72 | | 102 | | 86 | | | 86 | | 91 | | 85 | | | | | | | 87 |
Qatar | | 58 | | 52 | | 56 | | 53 | | | 55 | | 52 | | 52 | | | | | | | 52 |
Total | | 241 | | 233 | | 280 | | 262 | | | 254 | | 264 | | 260 | | | | | | | 261 |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL REPORTED SALES | | 610 | | 622 | | 696 | | 702 | | | 658 | | 713 | | 744 | | | | | | | 728 |
| | | | | | | | | | | | | | | | | | | | | | |
REALIZED PRICES | | | | | | | | | | | | | | | | | | | | | | |
United States | | | | | | | | | | | | | | | | | | | | | | |
Oil ($/BBL) | | $ | 61.03 | | $ | 61.08 | | $ | 56.36 | | $ | 48.25 | | | $ | 56.30 | | $ | 48.38 | | $ | 55.14 | | | | | | | $ | 51.85 |
NGLs ($/BBL) | | $ | 26.89 | | $ | 28.87 | | $ | 31.82 | | $ | 23.10 | | | $ | 27.64 | | $ | 16.79 | | $ | 16.28 | | | | | | | $ | 16.52 |
Natural Gas ($/MCF) | | $ | 2.06 | | $ | 1.49 | | $ | 1.58 | | $ | 1.33 | | | $ | 1.59 | | $ | 1.36 | | $ | 0.23 | | | | | | | $ | 0.77 |
| | | | | | | | | | | | | | | | | | | | | | |
Latin America | | | | | | | | | | | | | | | | | | | | | | |
Oil ($/BBL) | | $ | 59.24 | | $ | 65.66 | | $ | 69.94 | | $ | 62.49 | | | $ | 64.32 | | $ | 55.52 | | $ | 62.66 | | | | | | | $ | 59.67 |
Natural Gas ($/MCF) | | $ | 5.68 | | $ | 6.07 | | $ | 6.74 | | $ | 7.39 | | | $ | 6.43 | | $ | 7.37 | | $ | 7.01 | | | | | | | $ | 7.19 |
| | | | | | | | | | | | | | | | | | | | | | |
Middle East | | | | | | | | | | | | | | | | | | | | | | |
Oil ($/BBL) | | $ | 61.45 | | $ | 66.59 | | $ | 71.71 | | $ | 70.30 | | | $ | 67.69 | | $ | 60.50 | | $ | 65.83 | | | | | | | $ | 63.16 |
NGLs ($/BBL) | | $ | 21.89 | | $ | 23.58 | | $ | 24.66 | | $ | 22.38 | | | $ | 23.20 | | $ | 21.30 | | $ | 22.50 | | | | | | | $ | 21.89 |
| | | | | | | | | | | | | | | | | | | | | | |
Total Worldwide | | | | | | | | | | | | | | | | | | | | | | |
Oil ($/BBL) | | $ | 61.04 | | $ | 63.12 | | $ | 62.67 | | $ | 56.11 | | | $ | 60.64 | | $ | 52.62 | | $ | 58.91 | | | | | | | $ | 55.86 |
NGLs ($/BBL) | | $ | 25.35 | | $ | 27.21 | | $ | 29.55 | | $ | 22.88 | | | $ | 26.25 | | $ | 18.14 | | $ | 18.00 | | | | | | | $ | 18.07 |
Natural Gas ($/MCF) | | $ | 1.82 | | $ | 1.58 | | $ | 1.62 | | $ | 1.51 | | | $ | 1.62 | | $ | 1.55 | | $ | 1.03 | | | | | | | $ | 1.28 |
| | | | | | | | | | | | | | | | | | | | | | |
Index Prices | | | | | | | | | | | | | | | | | | | | | | |
WTI Oil ($/BBL) | | $ | 62.87 | | $ | 67.88 | | $ | 69.50 | | $ | 58.81 | | | $ | 64.77 | | $ | 54.90 | | $ | 59.82 | | | | | | | $ | 57.36 |
Brent Oil ($/BBL) | | $ | 67.18 | | $ | 74.90 | | $ | 75.97 | | $ | 68.08 | | | $ | 71.53 | | $ | 63.90 | | $ | 68.32 | | | | | | | $ | 66.11 |
NYMEX Natural Gas ($/MCF) | | $ | 2.87 | | $ | 2.75 | | $ | 2.88 | | $ | 3.40 | | | $ | 2.97 | | $ | 3.24 | | $ | 2.67 | | | | | | | $ | 2.95 |
| | | | | | | | | | | | | | | | | | | | | | |
Percentage of Index Prices | | | | | | | | | | | | | | | | | | | | | | |
Worldwide oil as a percentage of WTI | | 97% | | 93% | | 90% | | 95% | | | 94% | | 96% | | 98% | | | | | | | 97% |
Worldwide oil as a percentage of Brent | | 91% | | 84% | | 82% | | 82% | | | 85% | | 82% | | 86% | | | | | | | 84% |
Worldwide NGL as a percentage of WTI | | 40% | | 40% | | 43% | | 39% | | | 41% | | 33% | | 30% | | | | | | | 32% |
Worldwide NGL as a percentage of Brent | | 38% | | 36% | | 39% | | 34% | | | 37% | | 28% | | 26% | | | | | | | 27% |
Domestic gas as a percentage of NYMEX | | 72% | | 54% | | 55% | | 39% | | | 54% | | 42% | | 9% | | | | | | | 26% |
SCHEDULE 10
Occidental Petroleum Corporation
Oil and Gas Costs
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
| | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
| | | | | | | | | | | | | | | | | | | | | | |
Cash operating expenses ($/BOE) | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 13.32 | | $ | 12.80 | | $ | 12.39 | | $ | 11.35 | | | $ | 12.41 | | $ | 11.90 | | $ | 11.23 | | | | | | | $ | 11.55 |
Latin America | | $ | 12.17 | | $ | 12.17 | | $ | 13.18 | | $ | 15.86 | | | $ | 13.32 | | $ | 14.37 | | $ | 10.53 | | | | | | | $ | 12.14 |
Middle East | | $ | 10.75 | | $ | 11.44 | | $ | 10.56 | | $ | 12.09 | | | $ | 11.20 | | $ | 10.71 | | $ | 10.60 | | | | | | | $ | 10.65 |
Total Oil and Gas | | $ | 12.24 | | $ | 12.26 | | $ | 11.69 | | $ | 11.82 | | | $ | 11.98 | | $ | 11.55 | | $ | 10.97 | | | | | | | $ | 11.25 |
| | | | | | | | | | | | | | | | | | | | | | |
Taxes other than on income ($/BOE) | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 3.27 | | $ | 3.19 | | $ | 2.91 | | $ | 2.68 | | | $ | 3.00 | | $ | 2.79 | | $ | 2.89 | | | | | | | $ | 2.84 |
Total Oil and Gas | | $ | 1.82 | | $ | 1.86 | | $ | 1.63 | | $ | 1.59 | | | $ | 1.72 | | $ | 1.68 | | $ | 1.76 | | | | | | | $ | 1.72 |
| | | | | | | | | | | | | | | | | | | | | | |
DD&A expense ($/BOE) | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 16.63 | | $ | 17.07 | | $ | 17.28 | | $ | 17.27 | | | $ | 17.08 | | $ | 15.04 | | $ | 15.16 | | | | | | | $ | 15.10 |
Latin America | | $ | 8.99 | | $ | 8.95 | | $ | 8.81 | | $ | 8.77 | | | $ | 8.88 | | $ | 10.38 | | $ | 10.58 | | | | | | | $ | 10.50 |
Middle East | | $ | 9.62 | | $ | 8.58 | | $ | 8.15 | | $ | 9.59 | | | $ | 8.96 | | $ | 8.40 | | $ | 8.44 | | | | | | | $ | 8.42 |
Total Oil and Gas | | $ | 13.44 | | $ | 13.48 | | $ | 13.22 | | $ | 14.05 | | | $ | 13.56 | | $ | 12.40 | | $ | 12.58 | | | | | | | $ | 12.49 |
| | | | | | | | | | | | | | | | | | | | | | |
G&A and other operating expenses ($/BOE) | | $ | 2.74 | | $ | 2.96 | | $ | 3.17 | | $ | 5.82 | | | $ | 3.79 | | $ | 2.92 | | $ | 3.59 | | | | | | | $ | 3.26 |
| | | | | | | | | | | | | | | | | | | | | | |
Exploration Expense ($ millions) | | | | | | | | | | | | | | | | | | | | | | |
United States | | $ | 8 | | $ | 17 | | $ | 17 | | $ | 22 | | | $ | 64 | | $ | 16 | | $ | 15 | | | | | | | $ | 31 |
Latin America | | 1 | | 1 | | 6 | | 11 | | | 19 | | 1 | | 9 | | | | | | | 10 |
Middle East | | 6 | | 3 | | 1 | | 17 | | | 27 | | 19 | | 11 | | | | | | | 30 |
| | $ | 15 | | $ | 21 | | $ | 24 | | $ | 50 | | | $ | 110 | | $ | 36 | | $ | 35 | | | | | | | $ | 71 |
SCHEDULE 11
Occidental Petroleum Corporation
Segment Core Results Pre-tax Variance Roll-forwards
(Amounts in millions)
| | | | | | 2018 | | | | | | | | | | | 2019 | | | | | |
| | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | TY | | Qtr 1 | | Qtr 2 | | Qtr 3 | | Qtr 4 | | | YTD |
Quarter-over-Quarter | | | | | | | | | | | | | | | | | | | | | | |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Prior quarter core income | | $ | 381 | | $ | 750 | | $ | 780 | | $ | 963 | | | | | $ | 365 | | $ | 484 | | | | | | | |
Sales price | | 235 | | 66 | | (22) | | (325) | | | | | (73) | | 199 | | | | | | | |
Sales volume | | (68) | | (20) | | 254 | | (4) | | | | | (127) | | 85 | | | | | | | |
Operating expenses | | (11) | | (23) | | (54) | | (15) | | | | | 22 | | (1) | | | | | | | |
DD&A rate | | 171 | | (5) | | 43 | | (38) | | | | | 114 | | (1) | | | | | | | |
Exploration expense | | 41 | | (7) | | (2) | | (27) | | | | | 15 | | - | | | | | | | |
All others | | 1 | | 19 | | (36) | | (189) | | | | | 168 | | (40) | | | | | | | |
Current quarter core income | | $ | 750 | | $ | 780 | | $ | 963 | | $ | 365 | | | | | $ | 484 | | $ | 726 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Chemical | | | | | | | | | | | | | | | | | | | | | | |
Prior quarter core income | | $ | 217 | | $ | 298 | | $ | 317 | | $ | 321 | | | | | $ | 223 | | $ | 265 | | | | | | | |
Sales price | | 36 | | 5 | | 11 | | (26) | | | | | (62) | | (56) | | | | | | | |
Sales volume / mix | | (10) | | 10 | | 15 | | 13 | | | | | (23) | | 21 | | | | | | | |
Operations / manufacturing | | 46 | | 6 | | (31) | | (71) | | | | | 74 | | 19 | | | | | | | |
All others | | 9 | | (2) | | 9 | | (14) | | | | | 53 | | (41) | | | | | | | |
Current quarter core income | | $ | 298 | | $ | 317 | | $ | 321 | | $ | 223 | | | | | $ | 265 | | $ | 208 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Midstream and Marketing | | | | | | | | | | | | | | | | | | | | | | |
Prior quarter core income | | $ | 129 | | $ | 179 | | $ | 250 | | $ | 796 | | | | | $ | 670 | | $ | 279 | | | | | | | |
Marketing | | (9) | | 121 | | 481 | | (71) | | | | | (375) | | 56 | | | | | | | |
Gas plants | | 63 | | (75) | | 26 | | 10 | | | | | (12) | | (25) | | | | | | | |
Pipelines | | (6) | | 20 | | 33 | | (56) | | | | | (28) | | 41 | | | | | | | |
Power generation | | 1 | | 5 | | 6 | | (9) | | | | | (1) | | 5 | | | | | | | |
All others | | 1 | | - | | - | | - | | | | | 25 | | (25) | | | | | | | |
Current quarter core income | | $ | 179 | | $ | 250 | | $ | 796 | | $ | 670 | | | | | $ | 279 | | $ | 331 | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Year-over-Year | | | | | | | | | | | | | | | | | | | | | | |
Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Prior year core income | | $ | 220 | | $ | 117 | | $ | 139 | | $ | 381 | | | $ | 857 | | $ | 750 | | $ | 780 | | | | | | | $ | 1,530 |
Sales price | | 410 | | 624 | | 672 | | 9 | | | 1,715 | | (394) | | (303) | | | | | | | (697) |
Sales volume | | (25) | | (159) | | 24 | | 23 | | | (137) | | 143 | | 297 | | | | | | | 440 |
Operating expenses | | (24) | | (43) | | (127) | | (103) | | | (297) | | (70) | | (49) | | | | | | | (119) |
DD&A rate | | 175 | | 220 | | 255 | | 253 | | | 903 | | 112 | | 110 | | | | | | | 222 |
Exploration expense | | (4) | | (13) | | (16) | | 5 | | | (28) | | (21) | | (14) | | | | | | | (35) |
All others | | (2) | | 34 | | 16 | | (203) | | | (155) | | (36) | | (95) | | | | | | | (131) |
Current quarter core income | | $ | 750 | | $ | 780 | | $ | 963 | | $ | 365 | | | $ | 2,858 | | $ | 484 | | $ | 726 | | | | | | | $ | 1,210 |
| | | | | | | | | | | | | | | | | | | | | | |
Chemical | | | | | | | | | | | | | | | | | | | | | | |
Prior year core income | | $ | 170 | | $ | 230 | | $ | 200 | | $ | 217 | | | $ | 817 | | $ | 298 | | $ | 317 | | | | | | | $ | 615 |
Sales price | | 135 | | 86 | | 39 | | 17 | | | 277 | | (64) | | (126) | | | | | | | (190) |
Sales volume / mix | | (33) | | (43) | | 64 | | 22 | | | 10 | | (3) | | (8) | | | | | | | (11) |
Operations / manufacturing | | (12) | | 48 | | (5) | | (37) | | | (6) | | (13) | | 17 | | | | | | | 4 |
All others | | 38 | | (4) | | 23 | | 4 | | | 61 | | 47 | | 8 | | | | | | | 55 |
Current quarter core income | | $ | 298 | | $ | 317 | | $ | 321 | | $ | 223 | | | $ | 1,159 | | $ | 265 | | $ | 208 | | | | | | | $ | 473 |
| | | | | | | | | | | | | | | | | | | | | | |
Midstream and Marketing | | | | | | | | | | | | | | | | | | | | | | |
Prior year core income (loss) | | $ | (47) | | $ | 25 | | $ | 4 | | $ | 129 | | | $ | 111 | | $ | 179 | | $ | 250 | | | | | | | $ | 429 |
Marketing | | 129 | | 203 | | 697 | | 521 | | | 1,550 | | 158 | | 92 | | | | | | | 250 |
Gas plants | | 77 | | 15 | | 39 | | 27 | | | 158 | | (48) | | (1) | | | | | | | (49) |
Pipelines | | 23 | | 11 | | 52 | | (9) | | | 77 | | (31) | | (15) | | | | | | | (46) |
Power generation | | (3) | | 1 | | 4 | | 2 | | | 4 | | - | | - | | | | | | | - |
All others | | - | | (5) | | - | | - | | | (5) | | 21 | | 5 | | | | | | | 26 |
Current quarter core income | | $ | 179 | | $ | 250 | | $ | 796 | | $ | 670 | | | $ | 1,895 | | $ | 279 | | $ | 331 | | | | | | | $ | 610 |
