Occidental Petroleum Corporation : Occidental Petroleum Announces First Quarter of 2012 Income

• Q1 2012 net income of $1.6 billion ($1.92 per diluted share)
• Q1 2012 total daily oil and gas production of 755,000 barrels of oil equivalent, the highest in Occidental's history
• Q1 2012 domestic daily oil and gas production of 455,000 barrels of oil equivalent, record for the 6^th consecutive quarter.

Occidental Petroleum Corporation (NYSE:OXY) announced net income of $1.6 billion ($1.92 per diluted share) for the first quarter of 2012, compared with the first quarter of 2011 net income of $1.5 billion ($1.90 per diluted share).

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, "For the quarter, we generated strong results with diluted EPS of $1.92 per share, cash flow from operations of $2.8 billion and annualized ROE of 16 percent. We increased our annual dividend rate by $0.32 per share, or 17 percent, to $2.16 per share.

"Our first quarter total company production of 755,000 barrels of oil equivalent per day was the highest in Occidental's history and our domestic production of 455,000 barrels of oil equivalent per day was a record for the sixth consecutive quarter. We are the largest liquids producer in the lower 48 states and we increased our domestic liquids production by 6,000 barrels per day from the fourth quarter of 2011 and 35,000 barrels a day, or 12 percent, from the first quarter of 2011."

Oil and Gas

Oil and gas segment earnings were slightly higher at $2.5 billion for the first quarter of 2012, compared with the first quarter of 2011. Higher oil prices and total sales volumes in the first quarter of 2012 were partially offset by higher operating costs, increased DD&A rates and lower natural gas prices.

For the first quarter of 2012, daily oil and gas production volumes averaged 755,000 barrels of oil equivalent, compared with 730,000 barrels of oil equivalent in the first quarter of 2011. As a result of higher year-over-year average oil prices and other factors affecting production-sharing and similar contracts, production was lower in the Middle East/North Africa, Colombia, and Long Beach by 10,000 barrels of oil equivalent per day.

The first quarter 2012 production volume increase was a result of 51,000 barrels of oil equivalent per day higher domestic volumes, partially offset by reduced volumes in the Middle East/North Africa and Colombia. The across-the-board domestic increase reflects the positive impact of our higher capital programs. The Middle East/North Africa was lower due to the December expiration of Yemen's Masila Field contract and price impacts on production-sharing contracts, partially offset by higher Libya production, including additional entitlements related to the post civil unrest period. Colombia daily volumes decreased due to higher insurgent activity resulting in pipeline interruptions.

Daily sales volumes increased from 728,000 barrels of oil equivalent per day in the first quarter of 2011 to 745,000 barrels of oil equivalent per day in the first quarter of 2012.

Oxy's realized price for worldwide crude oil was $107.98 per barrel for the first quarter of 2012, compared with $92.14 per barrel for the first quarter of 2011. The first quarter of 2012 realized oil price represents 105 percent of the average WTI and 91 percent of the average Brent price for the quarter. Worldwide NGL prices were $52.51 per barrel in the first quarter of 2012, compared with $52.64 per barrel in the first quarter of 2011. Domestic gas prices decreased 33 percent from $4.21 per MCF in the first quarter of 2011 to $2.84 per MCF for the first quarter of 2012.

Chemicals

Chemical segment earnings for the first quarter of 2012 were $184 million, compared with $219 million in the first quarter of 2011. The first quarter 2012 reduction was primarily a result of lower export volumes and higher raw material costs, in large part caused by a rapid increase in ethylene prices. Calcium chloride sales volumes for de-icing applications were significantly lower due to the mild winter weather.

Midstream, Marketing and Other

Midstream segment earnings were $131 million for the first quarter of 2012, compared with $114 million for the first quarter of 2011. The results reflect higher income in the pipeline and gas processing businesses, partially offset by lower power margins.

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. Factors that could cause results to differ materially include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental's products; general domestic political and regulatory approval conditions; international political conditions; not successfully completing, or any material delay of, any development of new fields, expansion projects, capital expenditures, efficiency-improvement projects, acquisitions or dispositions; potential failure to achieve expected production from existing and future oil and gas development projects; exploration risks such as drilling unsuccessful wells; any general economic recession or slowdown domestically or internationally; higher-than-expected costs; potential liability for remedial actions under existing or future environmental regulations and litigation; potential liability resulting from pending or future litigation; potential disruption or interruption of Occidental's production or manufacturing or damage to facilities due to accidents, chemical releases, labor unrest, weather, natural disasters, political events or insurgent activity; failure of risk management; changes in law or regulations; 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 uncertainty of future 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 report. 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 1, Item 1A "Risk Factors" of the 2011 Form 10-K.

For further analysis of Occidental's quarterly performance, please visit the website: www.oxy.com

				Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
				First Quarter
($ millions, except per-share amounts)				2012							2011
SEGMENT NET SALES
Oil and Gas				$	4,902						$	4,367
Chemical					1,148							1,165
Midstream, Marketing and Other					393							412
Eliminations					(175	)						(218	)
Net Sales				$	6,268						$	5,726
SEGMENT EARNINGS
Oil and Gas (a)				$	2,504						$	2,468
Chemical					184							219
Midstream, Marketing and Other					131							114
					2,819							2,801
Unallocated Corporate Items
Interest expense, net (b)					(28	)						(214	)
Income taxes (c)					(1,139	)						(1,054	)
Other					(92	)						(128	)
Income from Continuing Operations					1,560							1,405
Discontinued operations, net (d)					(1	)						144
NET INCOME				$	1,559						$	1,549
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations				$	1.92						$	1.72
Discontinued operations, net					-							0.18
				$	1.92						$	1.90
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations				$	1.92						$	1.72
Discontinued operations, net					-							0.18
				$	1.92						$	1.90
AVERAGE COMMON SHARES OUTSTANDING
BASIC					810.5							812.6
DILUTED					811.3							813.4
(a) Oil and Gas - The first quarter of 2011 includes pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to Colombia net worth tax. Also, included in the first quarter of 2011 results is a pre-tax gain for sale of an interest in a Colombia pipeline of $22 million.
(b) Unallocated Corporate Items - Interest Expense, net - The first quarter of 2011 includes a pre-tax charge of $163 million related to the premium on debt extinguishment.
(c) Unallocated Corporate Items - Taxes - The first quarter of 2011 includes a net $21 million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The first quarter of 2011 includes a $144 million after-tax gain from the sale of the Argentine operations.
				Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
				First Quarter
($ millions)				2012							2011
CAPITAL EXPENDITURES				$	2,412						$	1,325
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS				$	1,085						$	890
				Attachment 3
SUMMARY OF OPERATING STATISTICS - PRODUCTION
				First Quarter
				2012							2011
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil (MBBL)
California					86							77
Permian					139							132
Midcontinent and Other					19							13
Total					244							222
NGL (MBBL)
California					15							14
Permian					39							37
Midcontinent and Other					18							8
Total					72							59
Natural Gas (MMCF)
California					267							242
Permian					155							165
Midcontinent and Other					412							327
Total					834							734
Latin America
Crude Oil (MBBL) - Colombia					24							31
Natural Gas (MMCF) - Bolivia					14							16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain					4							4
Dolphin					8							9
Oman					64							67
Qatar					72							75
Other					42							57
Total					190							212
NGL (MBBL)
Dolphin					9							10
Other					-							1
Total					9							11
Natural Gas (MMCF)
Bahrain					219							173
Dolphin					173							196
Oman					57							50
Total					449							419
Barrels of Oil Equivalent (MBOE)					755							730
				Attachment 4
SUMMARY OF OPERATING STATISTICS - SALES
				First Quarter
				2012							2011
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil (MBBL)					244							222
NGL (MBBL)					72							59
Natural Gas (MMCF)					834							734
Latin America
Crude Oil (MBBL) - Colombia					24							33
Natural Gas (MMCF) - Bolivia					14							16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain					4							4
Dolphin					8							9
Oman					64							71
Qatar					70							76
Other					34							49
Total					180							209
NGL (MBBL)
Dolphin					9							10
Other					-							-
Total					9							10
Natural Gas (MMCF)					449							419
Barrels of Oil Equivalent (MBOE)					745							728
				Attachment 5
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.
				First Quarter
($ millions, except per-share amounts)				2012							Diluted EPS							2011							Diluted EPS
TOTAL REPORTED EARNINGS				$	1,559						$	1.92						$	1,549						$	1.90
Oil and Gas
Segment Earnings				$	2,504													$	2,468
Add:
Libya exploration write-off					-														35
Gain on sale of Colombia pipeline interest					-														(22	)
Foreign Tax					-														29
Segment Core Results					2,504														2,510
Chemicals
Segment Earnings					184														219
Add:
No significant items affecting earnings					-														-
Segment Core Results					184														219
Midstream, Marketing and Other
Segment Earnings					131														114
Add:
No significant items affecting earnings					-														-
Segment Core Results					131														114
Total Segment Core Results					2,819														2,843
Corporate
Corporate Results -
Non Segment *					(1,260	)													(1,252	)
Add:
Premium on debt extinguishments					-														163
State income tax charge					-														33
Tax effect of adjustments					-														(50	)
Discontinued operations, net **					1														(144	)
Corporate Core Results - Non Segment					(1,259	)													(1,250	)
TOTAL CORE RESULTS				$	1,560						$	1.92						$	1,593						$	1.96
* Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

Occidental Petroleum Corporation
Melissa E. Schoeb (media)
melissa_schoeb@oxy.com
310-443-6504
or
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chris_stavros@oxy.com
212-603-8184

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