Occidental Petroleum : Second Quarter 2018 Summary of Selected Financial Data

Summary of Selected Financial Data

(Dollar amounts in millions, except per-share amounts)

For the twelve months ended December 31,2014

2015

2016

2017

6 months ended June 30, 2018

RESULTS OF OPERATIONS

Net sales

Income (loss) from continuing operations (b) Net income (loss) attributable to common stock Earnings (loss) per share attributable to common stock

$ $ $

19,312

• $ 12,480

  • $ 10,090

  (130) 616

  $ $

  (8,146) (7,829)

  $ $

  (1,002)

  (574)

  $ $ $

  12,508 1,311 1,311

  • $ 7,846

  • $ 1,556

  • $ 1,556

    Basic earnings (loss) per common share from continuing operations (b)

    Basic earnings (loss) per common share (b) Diluted earnings (loss) per common share (b)

    Core results (a)

    $ $ $ $

    (0.18) 0.79 0.79 3,783

    $ $ $ $

    (10.64) (10.23) (10.23)

    91

    $ $ $ $

    (1.31) (0.75) (0.75)

    (771)

    $ $ $ $

    1.71 1.71 1.70 1,556

  • $ 2.02

  • $ 2.02

  • $ 2.02

  • $ 1,556

    FINANCIAL POSITION

    Total assets

    Long-term debt, net (including current maturities) Stockholders' equity

    $ $ $

    56,237 6,816 34,959

    $ $ $

    43,409 8,305 24,350

    $ $ $

    43,109 9,819 21,497

    $ $ $

    42,026 9,828 20,572

  • $ 44,067

  • $ 10,312

  • $ 20,931

    CASH FLOW FROM CONTINUING OPERATIONS

    Operating:

    Cash flow from continuing operationsInvesting:

    $

    8,879

    $

    3,251

    Capital expenditures

    • $ (8,930)

• $ (5,272)

  Cash provided (used) by all other investing activities, netFinancing:

  • $ 2,678

• $ (148)

Cash dividends paid Purchases of treasury stock

Cash provided (used) by all other financing activities, netDividends per common share

$ $ $ $

(2,210) (2,500) 2,384

2.88

$ $ $ $

(2,264)

(593) 4,341

2.97

$ $ $ $ $ $ $

2,520

$

4,861

• $ 2,765

(2,717) (2,026)

• $ (3,599)

  • $ (2,319)

• $ 520

• $ 33

  (2,309)

  (22) 2,722

  3.02

  $ $ $ $

  (2,346)

• $ (1,185)

  (25) 28

• $ (97)

• $ 493

  3.06

• $ 1.54

Weighted average shares outstanding (millions)

Basic

Diluted

781.1 781.1

765.6 765.6

763.8 763.8

765.1 765.7 765.9 767.2

(a) 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. These events may recur, even across successive reporting periods. 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

(b) Represents amounts attributable to common stock after deducting noncontrolling interest amounts.

Consolidated Statement of Operations (Amounts in millions, except per-share amounts)REVENUES

Net sales

Oil and gas Chemical

Midstream and Marketing Eliminations (a)

Interest, dividends and other income

Gain on sale of assets and equity investments, net

COSTS AND OTHER DEDUCTIONS

Cost of sales

Selling, general and administrative and other operating expenses Taxes other than on income

Depreciation, depletion and amortization Asset impairments and related items Exploration expense

Interest and debt expense, net

INCOME (LOSS) BEFORE INCOME TAXES AND OTHER ITEMSBenefit (provision) for domestic and foreign income taxes

Income from equity investments

INCOME (LOSS) FROM CONTINUING OPERATIONSDiscontinued operations, net

NET INCOME (LOSS)

Less: Net income attributable to noncontrolling interest

NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKEARNINGS PER SHARE (attributable to common stock)

BASIC EARNINGS (LOSS) PER COMMON SHARE

Income (loss) from continuing operations

Discontinued operations, net

BASIC EARNINGS (LOSS) PER COMMON SHAREDILUTED EARNINGS (LOSS) PER COMMON SHARE

Income (loss) from continuing operations

Discontinued operations, net

DILUTED EARNINGS (LOSS) PER COMMON SHAREDIVIDENDS PER COMMON SHARE

For the twelve months ended December 31,2014

2015

2016

2017

6 months ended June 30, 2018

$

• 13,887 $

• 8,304 $

• 6,377 $

7,870 $ 4,985

4,817

3,945

3,756

4,355 2,330

1,373

891

684

1,157 992

(765)

(660)

(727)

(874) (461)

19,312

12,480

10,090

12,508 7,846

130

118

106

99 67

2,505

101

202

667 43

21,947

12,699

10,398

13,274 7,956

6,803

5,804

5,189

5,594 2,828

1,503

1,270

1,330

1,424 709

550

343

277

311 223

4,261

4,544

4,268

4,002 1,868

7,379

10,239

825

545 42

150

36

62

82 36

77

147

292

345 194

20,723

22,383

12,243

12,303 5,900

1,224

(9,684)

(1,845)

971 2,056

(1,685)

1,330

662

(17) (641)

331

208

181

357 141

(130)

(8,146)

(1,002)

1,311 1,556

$

760

630

616

(14)

$

(7,829)

(7,829)

317

-$

• (574) $

  (574)

  428

  -

  - 1,311 - 1,311

  $

  $

  (0.18)

  $

  (10.64)

  $

• (1.31) $ 0.56

  1.71 -

  $

  0.97 0.79

  0.41

  $

  $

  • (10.23) $

• (0.75) $

  1.71

  $

  $

  (0.18) 0.97

  $

  • (10.64) $ 0.41

• (1.31) $ 0.56

  1.70 -

  $

  $ $

  0.79 2.88

  $ $

  (10.23)

  $ $

• (0.75) $

1.70

$

2.97

3.02

$

3.06

$

(a) Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions.

- 1,556 - 1,556

2.02 -2.02

2.02 -2.02

1.54

Consolidated Balance SheetsCURRENT ASSETS

Cash and cash equivalents Restricted cash

Trade receivables, net Inventories

Assets held for sale Other current assets

Total current assetsINVESTMENTS

Investments in unconsolidated entities Available for sale investment

Total investments

PROPERTY, PLANT AND EQUIPMENT

Oil and gas segment

Chemical segment

Midstream and marketing segment Corporate

Accumulated depreciation, depletion and amortization

LONG-TERM RECEIVABLES AND OTHER ASSETS, NET TOTAL ASSETS

CURRENT LIABILITIES

Current maturities of long-term debt Accounts payable

Accrued liabilities

Domestic and foreign income taxes Liabilities of assets held for sale

Total current liabilitiesLONG-TERM DEBT, NET

DEFERRED CREDITS AND OTHER LIABILITIES

Deferred domestic and foreign income taxes Asset retirement obligations

Pension and postretirement obligations Environmental remediation reserves Other

STOCKHOLDERS' EQUITY

Common stock, $.20 per share par value Treasury stock

Additional paid-in capital Retained earnings

Accumulated other comprehensive loss

Total equity

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

31-Dec-14

31-Dec-15

$

• 3,789 $

4,019

4,206

1,052 -

807

13,873 1,171 394 1,565

59,061

6,574

8,304

576

74,515

(34,785)

39,730

1,069 $ 56,237

$

• 43,409 $ 43,109

31-Dec-16

31-Dec-17

30-Jun-18

• 3,201 $

1,193

2,233 -$

1,672 -$

1,362 -

2,970

3,989

4,145 5,521

986

866 -

1,246 1,347

141

474 1,664

911

1,340

733 1,096

9,402 1,267 167 1,434

8,428 1,401 - 1,401

8,270 10,990

1,515 1,551

-

-1,515 1,551

55,025

54,673

53,409 55,911

6,717

6,930

6,847 6,894

8,899

9,216

9,493 7,881

417

474

497 528

71,058

71,293

70,246 71,214

(39,419)

(38,956)

(39,072) (40,782)

31,639

32,337

31,174 30,432

934

943

1,067 1,094

$ 42,026

$ 44,067

$

-$ 1,450

$

- 3,926 2,436 - - 6,362 9,819

$

500 $

-

5,229

3,069

4,408 5,412

2,601

2,213 -

2,492 2,521

414 -

110

- -- 145

8,244

6,842

7,400 8,078

6,816

6,855

9,328 10,312

3,015

1,323

1,132

581 738

1,024

1,045

1,245

1,241 1,244

1,048

986

963

1,005 1,010

255

316

739

728 731

876

1,692

1,352

1,171 1,023

6,218

5,362

5,431

4,726 4,746

178

178

178

179 179

(8,528)

(9,121)

(9,143)

(9,168) (9,268)

7,599

7,640

7,747

7,884 7,967

36,067

25,960

22,981

21,935 22,361

(357)

(307)

(266)

(258) (308)

34,959

24,350

21,497

20,572 20,931

$

• 56,237 $

• 43,409 $

• 43,109 $

42,026 $ 44,067

Consolidated Statements of Cash Flow

For the twelve months ended December 31,2014

2015

2016

2017

6 months ended June 30, 2018

CASH FLOW FROM OPERATING ACTIVITIES

Net income (loss)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Discontinued operations, net

Depreciation, depletion and amortization of assets Deferred income tax provision (benefit)

Other noncash charges to income Asset impairments

Gain on sale of assets and equity investments, net Changes in operating assets and liabilities:

(Increase) decrease in receivables (Increase) decrease in inventories (Increase) decrease in other current assets

Increase (decrease) in accounts payable and accrued liabilities Increase (decrease) in current domestic and foreign income taxes

Other operating, net

Operating cash flow from continuing operations

Operating cash flow from discontinued operations, net of taxes Net cash provided by operating activities

CASH FLOW FROM INVESTING ACTIVITIES

Capital expenditures

Change in capital accrual

Payments for purchases of assets and businesses Sale of assets and equity investments, net

Other, net

Investing cash flow from continuing operations Investing cash flow from discontinued operations Net cash used by investing activities

CASH FLOW FROM FINANCING ACTIVITIES

Special cash distribution from California Resources Proceeds from long-term debt, net

Payments of long-term debt, net Proceeds from issuance of common stock Purchases of treasury stock Contributions from noncontrolling interest Cash dividends paid

Other, net

Financing cash flow from continuing operations Financing cash flow from discontinued operations Net cash provided (used) by financing activities

Increase (decrease) in cash and cash equivalents

Cash, cash equivalents and restricted cash - beginning of year Cash, cash equivalents and restricted cash - end of period

$

• 630 $

• (7,829) $

• (574) $

1,311

$

1,556

(760)

(317)

(428)

-

-

4,261

4,544

4,268

4,002 1,868

(1,178)

(1,372)

(517)

(719) 171

237

172

152

202 91

7,379

9,684

665

545 42

(2,505)

(101)

(202)

(667) (43)

1,413

1,431

(1,091)

(158) (1,342)

(112)

(24)

17

(349) (117)

89

33

65

39 (19)

(521)

(1,989)

609

(89) 631

(54)

(331)

17

64 (73)

11,076

8,879

2,197

-

3,348

3,251

(650)

97

3,384

2,520

(461)

864

680 4,861 - 4,861

- 2,765 - 2,765

(8,930)

(5,272)

(2,717)

(3,599)

(2,319)

542

(592)

(114)

122 (6)

(1,687)

(109)

(2,044)

(1,064) (242)

4,177

819

302

1,403 330

(354)

(266)

(170)

59 (49)

(6,252)

(5,420)

(4,743)

(3,079)

(2,286)

(2,226)

(8,478)

(5,420)

-

(4,743)

-

-(3,079)

-(2,286)

6,100 --

-

-

-

1,478 -

4,203 - 978

(107)

(2,710) - (500)

33

37

36 28 13

(2,500)

(593)

(22)

(25) (97)

(2,210)

375

(2,264)

-

(2,309)

-

- (2,346)

- (1,185)

1,693

2

(1,342)

-

(802)

-

- (2,343)

2 (789)

124

-

-

-

-

1,817

(1,342)

(802)

(2,343) (789)

4,415

(3,414)

(2,161)

(561) (310)

3,393

7,808

4,394

2,233 1,672

$

7,808

$

4,394

$

2,233

$

1,672

$

1,362

Oil and Gas Net Proved Developed and Undeveloped Year-End Reserves

¹ Natural gas volumes have been converted to barrels of equivalent (BOE) based on energy content of 6,000 cubic feet (Mcf) of gas to one barrel of oil.

Segment Total Year-End Assets

2013

2014

2015

2016

2017

Oil and Gas (a) Chemical

$

Midstream, marketing and other Corporate (b)

• 46,213 $ 3,947 14,374 4,881

• 31,072 $ 3,917 12,283 8,965

• 23,591 $ 3,982 10,175 5,661

24,130 $ 23,595

4,348 4,364

11,059 11,775

3,572 2,292

Total

$

69,415

$

56,237

$

43,409

$

43,109

$

42,026

(a) Oil and Gas - 2014 reduction reflects the tax-free spin off of California Resources Corporation in December 2014 and asset impairments and related items.

(b) Corporate included restricted cash of $1.2 billion and $4.0 billion at December 31, 2015 and 2014, respectively. 2014 included the investment in CRC stock as well as impairments of Joslyn Oil Sands.