Occidental Petroleum : Announces 2nd Quarter 2017 Results and Progress Toward Cash Flow Breakeven at Low Oil Prices

• Raised dividend for the 15th consecutive year
• Increased cash balance to $2.2 billion with ample additional liquidity available
• Permian Resources average daily production up 7 percent sequentially from previous quarter to 138,000 BOE
• Acquired working interests in low decline, low capital intensity EOR production, while monetizing low priority non-strategic acreage
• Improved cash flow generation in the Chemical and Midstream segments

HOUSTON - August 2, 2017 - Occidental Petroleum Corporation (NYSE:OXY) today announced reported net income of $507 million, or $0.66 per diluted share, compared with $117 million, or $0.15 per diluted share, for the first quarter of 2017. Core income for the second quarter of 2017 was $119 million, or $0.15 per diluted share, compared with $117 million, or $0.15 per diluted share, for the first quarter of 2017.

'We continue to make progress on our pathway to breakeven at low oil prices. Reported earnings for all three operating segments were higher than the previous quarter despite lower oil prices. Both the Chemical and Midstream segments exceeded expectations, and Permian Resources had another great quarter with 7 percent production growth over the previous quarter. I am confident in our organization's ability to continue to exceed expectations toward our cash flow breakeven goal at low oil prices,' said President and Chief Executive Officer Vicki Hollub.

QUARTERLY RESULTS

Oil and Gas

Total average daily production volumes were 601,000 barrels of oil equivalent (BOE) for the second quarter of 2017. Adjusted to exclude South Texas properties sold in April, average daily production volumes from ongoing operations were 594,000 BOE in the second quarter of 2017, compared to 559,000 BOE in the first quarter of 2017. Permian Resources average daily production volumes improved by 9,000 BOE from the prior quarter to 138,000 BOE in the second quarter of 2017 due to increased drilling activity and well productivity in the Delaware Basin. International average daily production improved by 24,000 BOE from the prior quarter as the Al Hosn Gas and Dolphin operations came back online to full capacity after completing planned maintenance in the first quarter of 2017.

Oil and gas pre-tax income for the second quarter of 2017 was $627 million, compared to $220 million for the first quarter of 2017. The second quarter income includes gains from domestic asset sales of $510 million, which include the sale of South Texas properties. Excluding the gains on sales, oil and gas income for the second quarter of 2017 was down compared to the first quarter of 2017 due to lower commodity prices across all products, which was partially offset by higher sales volumes.

For the second quarter of 2017, average WTI and Brent marker prices were $48.29 per barrel and $50.92 per barrel, respectively. Average worldwide realized crude oil prices were $46.55 per barrel for the second quarter of 2017, a decrease of 5 percent compared with the first quarter of 2017. Average worldwide realized NGL prices were $18.90 per barrel in the second quarter of 2017, a decrease of 12 percent compared to the first quarter of 2017. Average domestic realized natural gas prices were $2.23 per MCF in the second quarter of 2017, compared to $2.68 per MCF in the first quarter of 2017.

Chemical

Chemical pre-tax income for the second quarter of 2017 was $230 million. Compared to pre-tax income of $170 million in the first quarter of 2017, the increase in earnings primarily resulted from higher realized caustic soda and vinyls prices, higher equity income from the Ingleside ethylene cracker that commenced operations in February 2017, and higher potassium hydroxide sales volumes due to seasonally improved agricultural demand. These increases were partially offset by higher ethylene costs.

Midstream and Marketing

Midstream pre-tax income for the second quarter of 2017 was $119 million, compared to a loss of $47 million for the first quarter of 2017. The second quarter of 2017 included a non-cash, fair-value gain on the Plains Pipeline equity investment of $94 million. Excluding the gain, the improvement in second quarter of 2017 income, compared to the first quarter of 2017, reflected higher marketing margins due to improved Midland-to-Gulf Coast spreads and increased sales volumes at the Ingleside Crude Terminal and higher foreign pipeline income as the Dolphin Pipeline operations came back online to full capacity after completing planned maintenance in the first quarter of 2017.

About Occidental Petroleum

Occidental Petroleum Corporation 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 gathers, processes, transports, stores, purchases and markets 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 www.oxy.com.

Forward-Looking Statements

Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental's products; higher-than-expected costs; the regulatory approval environment; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber-attacks or insurgent activity; failure of risk management; changes in law or regulations; reorganization or restructuring of Occidental's operations; or changes in tax rates. Words such as 'estimate,' 'project,' 'predict,' 'will,' 'would,' 'should,' 'could,' 'may,' 'might,' 'anticipate,' 'plan,' 'intend,' 'believe,' 'expect,' 'aim,' 'goal,' 'target,' 'objective,' 'likely' or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental's results of operations and financial position appear in Part I, Item 1A 'Risk Factors' of the 2016 Form 10-K.