Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | ☐ | ||||
For the fiscal year ended | December 31, | For the transition period from to |
State or other jurisdiction of incorporation or organization | Delaware | ||||
I.R.S. Employer Identification No. | 95-4035997 | ||||
Address of principal executive offices | 5 Greenway Plaza, Suite 110 | Houston, | Texas | ||
Zip Code | 77046 | ||||
Registrant’s telephone number, including area code | (713) | 215-7000 |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered |
Common Stock, $0.20 par value | OXY | New York Stock Exchange |
Large Accelerated Filer | Accelerated Filer | Emerging Growth Company | ☐ | |||
Non-Accelerated Filer | Smaller Reporting Company |
TABLE OF CONTENTS | ||
Part I | ||
Items 1 and | Business and Properties | |
Chemical Operations | ||
Item 1A. | ||
Item | ||
Item | ||
Item | ||
Information About Our Executive Officers | ||
Part II | ||
Item | ||
Item | Selected Financial Data | |
Item | Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) | |
Item | Quantitative and Qualitative Disclosures About Market Risk | |
Item | Financial Statements and Supplementary Data | |
Item | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item | Controls and Procedures | |
Item | Other Information | |
Part III | ||
Item | Directors, Executive Officers and Corporate Governance | |
Item | Executive Compensation | |
Item | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item | Certain Relationships and Related Transactions and Director Independence | |
Item | Principal Accounting Fees and Services | |
Part IV | ||
Item | Exhibits and Financial Statement Schedules | |
Item 16. |
BUSINESS AND PROPERTIES |
GENERAL |
EMPLOYEES |
AVAILABLE INFORMATION |
2 | OXY 2019 FORM 10-K |
BUSINESS AND PROPERTIES |
OIL AND GAS OPERATIONS |
2016 | 2015 | 2014 (a) | |||||||||||||||||||||||||||||||||||
Proved Reserves | Oil | NGLs | Gas | BOE | (b) | Oil | NGLs | Gas | BOE | (b) | Oil | NGLs | Gas | BOE | (b) | ||||||||||||||||||||||
United States | 960 | 219 | 1,045 | 1,353 | 915 | 186 | 1,019 | 1,271 | 1,273 | 222 | 1,714 | 1,781 | |||||||||||||||||||||||||
International | 397 | 201 | 2,729 | 1,053 | 394 | 144 | 2,349 | 929 | 497 | 140 | 2,413 | 1,038 | |||||||||||||||||||||||||
Total | 1,357 | 420 | 3,774 | 2,406 | 1,309 | 330 | 3,368 | 2,200 | 1,770 | 362 | 4,127 | 2,819 | |||||||||||||||||||||||||
Sales Volumes | |||||||||||||||||||||||||||||||||||||
United States | 69 | 19 | 132 | 110 | 73 | 20 | 155 | 119 | 67 | 20 | 173 | 116 | |||||||||||||||||||||||||
International | 74 | 11 | 217 | 121 | 86 | 7 | 205 | 127 | 74 | 2 | 158 | 102 | |||||||||||||||||||||||||
Total | 143 | 30 | 349 | 231 | 159 | 27 | 360 | 246 | 141 | 22 | 331 | 218 |
2019 | 2018 | 2017 | |||||||||||||||||||||||||
Oil | NGL | Gas | BOE | (a) | Oil | NGL | Gas | BOE | (a) | Oil | NGL | Gas | BOE | (a) | |||||||||||||
Proved Reserves (b) | |||||||||||||||||||||||||||
United States | 1,570 | 540 | 4,128 | 2,798 | 1,186 | 284 | 1,445 | 1,711 | 1,107 | 247 | 1,205 | 1,555 | |||||||||||||||
International (c) | 400 | 200 | 2,572 | 1,029 | 397 | 202 | 2,650 | 1,041 | 408 | 198 | 2,626 | 1,043 | |||||||||||||||
Total | 1,970 | 740 | 6,700 | 3,827 | 1,583 | 486 | 4,095 | 2,752 | 1,515 | 445 | 3,831 | 2,598 | |||||||||||||||
Sales Volumes | |||||||||||||||||||||||||||
United States | 155 | 52 | 326 | 261 | 91 | 25 | 119 | 136 | 73 | 20 | 108 | 111 | |||||||||||||||
International (c) | 56 | 12 | 204 | 102 | 62 | 11 | 189 | 104 | 66 | 11 | 188 | 109 | |||||||||||||||
Total | 211 | 64 | 530 | 363 | 153 | 36 | 308 | 240 | 139 | 31 | 296 | 220 |
(a) |
Natural gas volumes are converted to |
(b) | The |
(c) | Excluded reserves of |
OXY 2019 FORM 10-K | 3 |
BUSINESS AND PROPERTIES |
CHEMICAL OPERATIONS |
Principal Products | Major Uses | Annual Capacity | ||
Basic Chemicals | ||||
Chlorine | Raw material for ethylene dichloride (EDC), water treatment and pharmaceuticals | |||
Caustic soda | Pulp, paper and aluminum production | |||
Chlorinated organics | Refrigerants(a), silicones and pharmaceuticals | |||
Potassium chemicals | Fertilizers, batteries, soaps, detergents and specialty glass | 0.4 million tons | ||
EDC | Raw material for | VCM | 2.1 billion pounds | |
Chlorinated isocyanurates | Swimming pool sanitation and disinfecting products | 131 million pounds | ||
Sodium silicates | Catalysts, soaps, detergents and paint pigments | 0.6 million tons | ||
Calcium chloride | Ice melting, dust control, road stabilization and oil field services | 0.7 million tons | ||
Vinyls | ||||
VCM | Precursor for | PVC | 6.2 billion pounds | |
PVC | Piping, building materials and automotive and medical products | 3.7 billion pounds | ||
Raw material for VCM | 1.2 billion pounds (b) |
(a) | Includes 4CPe, a raw material used in making next-generation, climate-friendly refrigerants with low global-warming and zero ozone-depletion potential. |
(b) | Amount is gross production capacity for 50/50 joint venture with Orbia (formerly Mexichem). |
4 | OXY 2019 FORM 10-K |
BUSINESS AND PROPERTIES |
Location | Description | Capacity | |||
Gas Plants | |||||
Texas, New Mexico and Colorado | Occidental and third-party-operated natural gas gathering, compression and processing systems, and CO2 processing and capturing | ||||
Rocky Mountains, Pennsylvania, Texas and New Mexico | |||||
UAE | Natural gas processing facilities for Al Hosn Gas | ||||
Pipelines | |||||
Gathering Systems | |||||
Texas, New Mexico and Colorado | CO2 fields and pipeline systems transporting CO2 to oil and gas producing locations | ||||
Oman | Equity investment in | 3.2 Bcf of natural gas per day | |||
Equity investment in | |||||
Power Generation | |||||
Texas and Louisiana | Occidental-operated power and steam generation facilities | ||||
(a) | Amounts are gross, including interests held by third parties. |
ENVIRONMENTAL REGULATION |
OXY 2019 FORM 10-K | 5 |
RISK FACTORS |
Ø | Worldwide and domestic supplies of, and demand for, |
Ø | The cost of exploring for, developing, producing, refining and marketing |
Ø | Operational impacts such as production disruptions, technological advances and regional market conditions, including available transportation capacity and infrastructure constraints in producing |
Ø | Changes in weather patterns and |
Ø | The impacts of the members of OPEC and other |
Ø | The worldwide military and political environment, including uncertainty or instability resulting from an escalation or outbreak of armed hostilities or acts of terrorism in the United States, or |
Ø | The price and availability of alternative and competing |
Ø | Technological advances affecting energy consumption and supply; |
Ø | Domestic and foreign governmental regulations and |
Ø | Shareholder activism or activities by non-governmental organizations to restrict the exploration, development and production of oil, natural gas and NGL; |
Ø | Additional or increased nationalization and expropriation activities by foreign |
Ø |
Ø | Volatility in commodity futures markets; |
Ø | The effect of energy conservation efforts; and |
Ø | Global inventory levels and general economic |
Ø | Adversely affect Occidental’s financial condition, liquidity, ability to reduce debt, pay dividends, finance planned capital expenditures, ability to repurchase shares and results of operations; |
Ø | Reduce the amount of oil, natural gas and NGLs that Occidental can produce economically; |
Ø | Cause Occidental to delay or postpone some of its capital projects; |
Ø | Reduce Occidental’s revenues, operating income or cash flows; |
Ø | Reduce the amounts of Occidental’s estimated proved oil, natural gas and NGL reserves; |
Ø | Reduce the carrying value of Occidental’s oil and natural gas properties due to recognizing impairments of proved properties, unproved properties and exploration assets; |
Ø | Reduce the standardized measure of discounted future net cash flows relating to oil, natural gas and NGL reserves; |
Ø | Limit Occidental’s access to, or increase the cost of, sources of capital such as equity and long-term debt; and |
Ø | Adversely affect the ability of Occidental’s partners to fund their working interest capital requirements. |
6 | OXY 2019 FORM 10-K |
RISK FACTORS |
Ø | Equipment failures; |
Ø | Construction delays; |
Ø | Escalating costs or competition for services, materials, supplies or labor; |
Ø | Property or border disputes; |
Ø | Disappointing drilling results or reservoir performance; |
Ø | Title problems and other associated risks that may affect its ability to profitably grow production, replace reserves and achieve its targeted returns; |
Ø | Actions by third-party operators of our properties; |
Ø | Delays and costs of drilling wells on lands subject to complex development terms and circumstances; and |
Ø | Oil, natural gas or NGL gathering, transportation and processing availability, restrictions or limitations. |
Ø | New or amended laws and regulations, or new or different applications or interpretations of |
Ø | Refusal of, or delay in, the extension or grant of exploration, development or production |
Ø | Development delays and cost overruns due to approval delays for, or denial of, drilling, construction, environmental and other regulatory approvals, permits and authorizations. |
OXY 2019 FORM 10-K | 7 |
RISK FACTORS |
8 | OXY 2019 FORM 10-K |
RISK FACTORS |
Ø | Damage to and destruction of property and equipment; |
Ø | Damage to natural resources; |
Ø | Pollution and other environmental damage, including spillage or mishandling of recovered chemicals or fluids; |
Ø | Regulatory investigations and penalties; |
Ø | Loss of well location, acreage, expected production and related reserves; |
Ø | Suspension or delay of our operations; |
Ø | Substantial liability claims; and |
Ø | Repair and remediation costs. |
Ø | Unauthorized access to seismic data, reserves information, strategic information, or other sensitive or proprietary information could have a negative impact on our ability to compete for oil and natural gas resources; |
Ø | Data corruption, communication or systems interruption or other operational disruption during drilling activities could result in delays and failure to reach the intended target or cause a drilling incident; |
OXY 2019 FORM 10-K | 9 |
RISK FACTORS |
Ø | Data corruption, communication or systems interruption or operational disruptions of production-related infrastructure could result in a loss of production or accidental discharge; |
Ø | A cyber-attack on our chemical operations could result in a disruption of the manufacturing and marketing of our products or a potential environmental hazard; |
Ø | A cyber-attack on a vendor or service provider could result in supply chain disruptions, which could delay or halt our construction and development projects; |
Ø | A cyber-attack on third-party gathering, pipeline, processing, or other infrastructure systems could delay or prevent us from transporting, processing and marketing our production; |
Ø | A cyber-attack involving commodities exchanges or financial institutions could slow or halt commodities trading, thus preventing us from marketing our production or engaging in hedging activities; |
Ø | A cyber-attack that halts activities at a power generation facility or refinery using natural gas as feedstock could have a significant impact on the natural gas market; |
Ø | A cyber-attack on a communications network or power grid could cause operational disruption; |
Ø | A cyber-attack on our automated and surveillance systems could cause a loss in production and potential environmental hazards; |
Ø | A deliberate corruption of our financial or operating data could result in events of non-compliance which could then lead to regulatory fines or penalties; and |
Ø | A cyber-attack resulting in the loss or disclosure of, or damage to, our or any of our customer’s or supplier’s data or confidential information could harm our business by damaging our reputation, subjecting us to potential financial or legal liability, and requiring us to incur significant costs, including costs to repair or restore our systems and data or to take other remedial steps. |
Ø | Occidental’s production is less than the notional volume; |
Ø | The counterparties to Occidental’s hedging or other price risk management contracts fail to perform under those arrangements; or |
Ø | A sudden, unexpected event materially impacts oil, natural gas or NGL prices. |
10 | OXY 2019 FORM 10-K |
RISK FACTORS |
OXY 2019 FORM 10-K | 11 |
RISK FACTORS |
12 | OXY 2019 FORM 10-K |
RISK FACTORS |
ITEM | UNRESOLVED STAFF COMMENTS |
ITEM 3. | LEGAL PROCEEDINGS |
ITEM 4. | MINE SAFETY DISCLOSURES |
OXY 2019 FORM 10-K | 13 |
OTHER INFORMATION |
INFORMATION ABOUT OUR EXECUTIVE OFFICERS |
Name Current Title | Age at February | 27, 2020 | Positions with Occidental | ||
Marcia E. Backus Senior Vice President | 65 | Senior Vice President, General Counsel and Chief Compliance Officer since December 2016; Senior Vice President, General Counsel, Chief Compliance Officer and Corporate Secretary, 2015-2016; Vice President, General Counsel and Corporate Secretary, 2014-2015; Vice President and General Counsel, 2013-2014; Vinson & Elkins: Partner, 1990-2013. | |||
Oscar K. Brown Senior Vice President | 49 | Senior Vice President - Strategy, Business Development and Supply Chain since November 2018; Senior Vice President - Corporate Strategy and Development, 2017 - 2018; Senior Vice President - Business Development, 2016 - 2017; Bank of America Merrill Lynch: Managing Director and co-head of Americas Energy Investment Banking, 2010 - 2016. | |||
Cedric W. Burgher Chief Financial Officer and Senior Vice President | 59 | Senior Vice President and Chief Financial Officer since May 2017; EOG Resources: Senior Vice President, Investor and Public Relations, 2014-2017; QR Energy L.P.: Chief Financial Officer, 2010-2014. | |||
Christopher O. Champion Vice President | 50 | Vice President, Chief Accounting Officer and Controller since August 2019; Anadarko Petroleum Corporation: Senior Vice President, Chief Accounting Officer and Controller, 2017-2019; Vice President, Chief Accounting Officer and Controller 2015-2017; KPMG LLP: Audit Partner, 2003-2015. | |||
Kenneth Dillon Senior Vice President | 60 | Senior Vice President since December 2016; President - International Oil and Gas Operations since June 2016; Senior Vice President - Operations and Major Projects, 2014-2016; Senior Vice President - Major Projects, 2012-2014. | |||
Vicki Hollub President and Chief Executive Officer | 60 | President, Chief Executive Officer and Director since April 2016; President, Chief Operating Officer and Director, 2015-2016; Senior Executive Vice President and President, Oxy Oil and Gas, 2015; Executive Vice President and President Oxy Oil and Gas - Americas, 2014-2015; Vice President and Executive Vice President, U.S. Operations, Oxy Oil and Gas, 2013-2014. | |||
Edward A. “Sandy” Lowe Executive Vice President | 68 | Executive Vice President since 2015; Group Chairman - Middle East since 2016; Senior Vice President, 2008-2015; President - Oxy Oil & Gas International, 2009-2016. | |||
Robert Palmer Senior Vice President | 64 | Senior Vice President since July 2017; President - Domestic Onshore Oil and Gas Operations, Oxy Oil and Gas since June 2019; Senior Vice President - Technical Support, 2017-2019; President and General Manager - Colombia, 2012-2017. | |||
Glenn M. Vangolen Senior Vice President | 61 | Senior Vice President, |
14 | OXY 2019 FORM 10-K |
OTHER INFORMATION |
ITEM | MARKET FOR |
MARKET INFORMATION, HOLDERS AND DIVIDEND POLICY |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||
First Quarter 2016 | 103,371 | (a) | $ | 70.63 | — | ||||||||||||||||
Second Quarter 2016 | 96,449 | (a) | $ | 76.06 | — | ||||||||||||||||
Third Quarter 2016 | 96,151 | (a) | $ | 70.50 | — | ||||||||||||||||
October 1 - 31, 2016 | — | $ | — | — | |||||||||||||||||
November 1 - 30, 2016 | — | $ | — | — | |||||||||||||||||
December 1 - 31, 2016 | — | $ | — | — | |||||||||||||||||
Fourth Quarter 2016 | — | $ | — | — | |||||||||||||||||
Total 2016 | 295,971 | (a) | $ | 72.36 | — | 63,756,544 | (b) |
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs | ||||||||||||||
First Quarter 2019 | 2,690,000 | $ | 66.94 | 2,690,000 | ||||||||||||||
Second Quarter 2019 | — | $ | — | — | ||||||||||||||
Third Quarter 2019 | — | $ | — | — | ||||||||||||||
Fourth Quarter 2019 | — | (a) | $ | — | — | |||||||||||||
Total 2019 | 2,690,000 | (a) | $ | 66.94 | 2,690,000 | 44,206,787 | (b) |
(a) |
(b) | Represents the total number of shares remaining at year end under |
OXY 2019 FORM 10-K | 15 |
OTHER INFORMATION |
PERFORMANCE GRAPH |
12/31/2011 | 12/31/2012 | 12/31/2013 | 12/31/2014 | 12/31/2015 | 12/31/2016 | ||||||||||||
$ | 100 | $ | 84 | $ | 107 | $ | 98 | $ | 85 | $ | 94 | ||||||
100 | 102 | 125 | 117 | 95 | 120 | ||||||||||||
100 | 116 | 154 | 175 | 177 | 198 |
Fiscal Year Ended December 31 | 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | |||||||||||||||||
Occidental | $ | 100 | $ | 87 | $ | 96 | $ | 104 | $ | 91 | $ | 65 | |||||||||||
Peer Group | $ | 100 | $ | 83 | $ | 104 | $ | 107 | $ | 95 | $ | 103 | |||||||||||
S&P 500 | $ | 100 | $ | 101 | $ | 113 | $ | 138 | $ | 132 | $ | 174 |
OXY 2019 FORM 10-K |
OTHER INFORMATION |
ITEM | SELECTED FINANCIAL DATA |
As of and for the years ended December 31, | 2016 | 2015 | 2014 | 2013 | 2012 | ||||||||||||||||
RESULTS OF OPERATIONS (a) | |||||||||||||||||||||
Net sales | $ | 10,090 | $ | 12,480 | $ | 19,312 | $ | 20,170 | $ | 20,100 | |||||||||||
Income (loss) from continuing operations | $ | (1,002 | ) | $ | (8,146 | ) | $ | (130 | ) | $ | 4,932 | $ | 3,829 | ||||||||
Net income (loss) attributable to common stock | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | $ | 5,903 | $ | 4,598 | |||||||||
Basic earnings (loss) per common share from continuing operations | $ | (1.31 | ) | $ | (10.64 | ) | $ | (0.18 | ) | $ | 6.12 | $ | 4.72 | ||||||||
Basic earnings (loss) per common share | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 | $ | 7.33 | $ | 5.67 | |||||||||
Diluted earnings (loss) per common share | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 | $ | 7.32 | $ | 5.67 | |||||||||
FINANCIAL POSITION (a) | |||||||||||||||||||||
Total assets | $ | 43,109 | $ | 43,409 | $ | 56,237 | $ | 69,415 | $ | 64,175 | |||||||||||
Long-term debt, net | $ | 9,819 | $ | 6,855 | $ | 6,816 | $ | 6,911 | $ | 6,988 | |||||||||||
Stockholders’ equity | $ | 21,497 | $ | 24,350 | $ | 34,959 | $ | 43,372 | $ | 40,048 | |||||||||||
MARKET CAPITALIZATION (b) | $ | 54,437 | $ | 51,632 | $ | 62,119 | $ | 75,699 | $ | 61,710 | |||||||||||
CASH FLOW FROM CONTINUING OPERATIONS | |||||||||||||||||||||
Operating: | |||||||||||||||||||||
Cash flow from continuing operations | $ | 2,519 | $ | 3,254 | $ | 8,871 | $ | 10,229 | $ | 9,050 | |||||||||||
Investing: | |||||||||||||||||||||
Capital expenditures | $ | (2,717 | ) | $ | (5,272 | ) | $ | (8,930 | ) | $ | (7,357 | ) | $ | (7,874 | ) | ||||||
Cash provided (used) by all other investing activities, net | $ | (2,025 | ) | $ | (151 | ) | $ | 2,686 | $ | 1,040 | $ | (1,989 | ) | ||||||||
Financing: | |||||||||||||||||||||
Cash dividends paid | $ | (2,309 | ) | $ | (2,264 | ) | $ | (2,210 | ) | $ | (1,553 | ) | (c) | $ | (2,128 | ) | (c) | ||||
Purchases of treasury stock | $ | (22 | ) | $ | (593 | ) | $ | (2,500 | ) | $ | (943 | ) | $ | (583 | ) | ||||||
Cash provided (used) by all other financing activities, net | $ | 2,722 | $ | 4,341 | $ | 2,384 | $ | (437 | ) | $ | 1,865 | ||||||||||
DIVIDENDS PER COMMON SHARE | $ | 3.02 | $ | 2.97 | $ | 2.88 | $ | 2.56 | $ | 2.16 | |||||||||||
WEIGHTED AVERAGE BASIC SHARES OUTSTANDING (millions) | 764 | 766 | 781 | 804 | 809 |
millions, except per-share amounts | 2019 (a) | 2018 | 2017 | 2016 | 2015 | ||||||||||||||
RESULTS OF OPERATIONS (b,c) | |||||||||||||||||||
Net sales | $ | 20,393 | $ | 17,824 | $ | 12,508 | $ | 10,090 | $ | 12,480 | |||||||||
Income (loss) from continuing operations | $ | (507 | ) | $ | 4,131 | $ | 1,311 | $ | (1,002 | ) | $ | (8,146 | ) | ||||||
Net income (loss) attributable to common stockholders | $ | (985 | ) | $ | 4,131 | $ | 1,311 | $ | (574 | ) | $ | (7,829 | ) | ||||||
Net income (loss) from continuing operations attributable to common stockholders - basic per common share | $ | (1.20 | ) | $ | 5.40 | $ | 1.71 | $ | (1.31 | ) | $ | (10.64 | ) | ||||||
Net income (loss) attributable to common stockholders - basic per common share | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | $ | (0.75 | ) | $ | (10.23 | ) | ||||||
Net income (loss) attributable to common stockholders - diluted per common share | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 | $ | (0.75 | ) | $ | (10.23 | ) | ||||||
FINANCIAL POSITION (b) | |||||||||||||||||||
Total assets | $ | 109,330 | $ | 43,854 | $ | 42,026 | $ | 43,109 | $ | 43,409 | |||||||||
Long-term debt, net | $ | 38,537 | $ | 10,201 | $ | 9,328 | $ | 9,819 | $ | 6,855 | |||||||||
Stockholders’ equity | $ | 34,232 | $ | 21,330 | $ | 20,572 | $ | 21,497 | $ | 24,350 | |||||||||
MARKET CAPITALIZATION (d) | $ | 36,846 | $ | 45,998 | $ | 56,357 | $ | 54,437 | $ | 51,632 | |||||||||
CASH FLOW FROM CONTINUING OPERATIONS (b,c) | |||||||||||||||||||
Operating: | |||||||||||||||||||
Cash flow from continuing operations | $ | 7,203 | $ | 7,669 | $ | 4,861 | $ | 2,520 | $ | 3,251 | |||||||||
Investing: | |||||||||||||||||||
Capital expenditures | $ | (6,355 | ) | $ | (4,975 | ) | $ | (3,599 | ) | $ | (2,717 | ) | $ | (5,272 | ) | ||||
Payments for purchases of assets and businesses | $ | (28,088 | ) | $ | (928 | ) | $ | (1,064 | ) | $ | (2,044 | ) | $ | (109 | ) | ||||
Sales of assets, net | $ | 6,143 | $ | 2,824 | $ | 1,403 | $ | 302 | $ | 819 | |||||||||
Cash provided (used) by all other investing activities, net | $ | (573 | ) | $ | (127 | ) | $ | 181 | $ | (284 | ) | $ | (858 | ) | |||||
Financing: | |||||||||||||||||||
Cash dividends paid | $ | (2,624 | ) | $ | (2,374 | ) | $ | (2,346 | ) | $ | (2,309 | ) | $ | (2,264 | ) | ||||
Purchases of treasury stock | $ | (237 | ) | $ | (1,248 | ) | $ | (25 | ) | $ | (22 | ) | $ | (593 | ) | ||||
Proceeds from long-term debt, net - Occidental | $ | 21,557 | $ | 978 | $ | — | $ | 4,203 | $ | 1,478 | |||||||||
Payment of long-term debt, net - Occidental | $ | (6,959 | ) | $ | (500 | ) | $ | — | $ | (2,710 | ) | $ | — | ||||||
Proceeds from issuance of common and preferred stock | $ | 10,028 | $ | 33 | $ | 28 | $ | 36 | $ | 37 | |||||||||
Cash provided (used) by all other financing activities, net | $ | 431 | $ | 9 | $ | — | $ | — | $ | — | |||||||||
DIVIDENDS PER COMMON SHARE | $ | 3.14 | $ | 3.10 | $ | 3.06 | $ | 3.02 | $ | 2.97 | |||||||||
WEIGHTED-AVERAGE BASIC SHARES OUTSTANDING | 810 | 762 | 765 | 764 | 766 |
(a) | Summary financial information included the impact of the Acquisition, see Note 3 - The Acquisitionin the Notes to Consolidated Financial Statements. Summary results of operations from the date of the Acquisition to December 31, 2019 included the results of WES, a previously consolidated subsidiary. The summary results of operations also included a loss as a result of no longer consolidating WES of approximately $1 billion. See Note 1 - Summary of Significant Accounting Policies in the Notes to Consolidated Financial Statements. |
(b) | See the MD&A section of this report and the Notes to Consolidated Financial Statements for information regarding acquisitions and dispositions, discontinued operations and other |
(c) | The 2019 results include results of operations and cash flows related to the Acquisition for the period beginning August 8, 2019 through December 31, 2019. |
(d) | Market capitalization is calculated by multiplying the year-end total shares of common stock outstanding, net of shares held as treasury stock, by the year-end closing stock price. |
OXY 2019 FORM 10-K | 17 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
INDEX | PAGE |
Segment Results of Operations and Items Affecting Comparability | |
Income Taxes | |
Commitments and Obligations | |
Global Investments | |
18 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
STRATEGY |
Ø |
Ø |
Ø |
Ø | Achieving production growth rates of |
Ø |
Ø | Health, |
Ø | Achieving debt reduction targets; |
Ø | Total |
Ø | Maintaining investment grade credit metrics; |
Ø | Return on |
Ø | Specific measures such as |
Ø | Acquisition-related synergy and divestiture targets. |
OIL AND GAS SEGMENT |
OXY 2019 FORM 10-K | 19 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
2016 | 2015 | 2019 | 2018 | % Change | |||||||||||||||
WTI oil ($/barrel) | $ | 43.32 | $ | 48.80 | $ | 57.03 | $ | 64.77 | (12 | )% | |||||||||
Brent oil ($/barrel) | $ | 45.04 | $ | 53.64 | $ | 64.18 | $ | 71.53 | (10 | )% | |||||||||
NYMEX gas ($/Mcf) | $ | 2.42 | $ | 2.75 | $ | 2.67 | $ | 2.97 | (10 | )% |
2016 | 2015 | 2019 | 2018 | |||||||||
Worldwide oil as a percentage of average WTI | 89 | % | 97 | % | 98 | % | 94 | % | ||||
Worldwide oil as a percentage of average Brent | 86 | % | 88 | % | 87 | % | 85 | % | ||||
Worldwide NGLs as a percentage of average WTI | 34 | % | 33 | % | ||||||||
Worldwide NGLs as a percentage of average Brent | 33 | % | 30 | % | ||||||||
Worldwide NGL as a percentage of average WTI | 30 | % | 41 | % | ||||||||
Worldwide NGL as a percentage of average Brent | 27 | % | 37 | % | ||||||||
Domestic natural gas as a percentage of NYMEX | 79 | % | 78 | % | 49 | % | 54 | % |
20 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
1. Powder River Basin 2. DJ Basin 3. Greater Natural Buttes 4. Permian Basin |
5. Gulf of Mexico |
OXY 2019 FORM 10-K | 21 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
1. Delaware Basin 2. Central Basin Platform 3. Midland Basin |
22 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
Development Area | Working Interest | |
Horn Mountain | 100 | % |
Marlin | 100 | % |
Holstein | 100 | % |
Caesar Tonga | 34 | % |
Constellation | 33 | % |
Lucius | 49 | % |
K2 Complex | 42 | % |
OXY 2019 FORM 10-K | 23 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
OXY 2019 FORM 10-K |
1. 2. Llanos Norte Basin 3. Teca Heavy Oil Area 4. Putumayo Basin |
OXY 2019 FORM 10-K | 25 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
2019 | 2018 | 2017 | ||||||||||
WTI oil ($/barrel) | $ | 55.69 | $ | 65.56 | $ | 51.34 | ||||||
Brent oil ($/barrel) | $ | 63.03 | $ | 72.20 | $ | 54.93 | ||||||
NYMEX gas ($/Mcf) | $ | 2.58 | $ | 3.10 | $ | 2.98 |
2019 | 2018 | |||||
Oil | 52 | % | 57 | % | ||
Natural gas | 29 | % | 25 | % | ||
NGL | 19 | % | 18 | % |
Oil (MMbbl) | NGL(MMbbl) | Natural Gas (Bcf) | Total (MMBOE) | |||||||||
Proved developed reserves | 99 | 7 | 19 | 109 | ||||||||
Proved undeveloped reserves | 14 | — | 11 | 16 |
26 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
Revisions of previous estimates | ) | ||
Improved recovery | |||
Extensions and discoveries | |||
Purchases | |||
Sales | ( | ) | |
Production | ( | ) | |
Total |
OXY 2019 FORM 10-K | 27 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
MMBOE | 2019 | ||
Revisions of previous estimates | (166 | ) | |
Improved recovery | 192 | ||
Extensions and discoveries | 36 | ||
Purchases | 317 | ||
Sales | (29 | ) | |
Transfer to proved developed reserves | (196 | ) | |
Total | 154 |
28 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
OXY 2019 FORM 10-K | 29 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
CHEMICAL SEGMENT |
30 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
MARKETING AND MIDSTREAM SEGMENT |
OXY 2019 FORM 10-K | 31 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
32 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SEGMENT RESULTS OF OPERATIONS AND ITEMS AFFECTING COMPARABILITY |
(in millions, except per share amounts) | ||||||||||||
For the years ended December 31, | 2016 | 2015 | 2014 | |||||||||
NET SALES (a) | ||||||||||||
Oil and Gas | $ | 6,377 | $ | 8,304 | $ | 13,887 | ||||||
Chemical | 3,756 | 3,945 | 4,817 | |||||||||
Midstream and Marketing | 684 | 891 | 1,373 | |||||||||
Eliminations (a) | (727 | ) | (660 | ) | (765 | ) | ||||||
$ | 10,090 | $ | 12,480 | $ | 19,312 | |||||||
SEGMENT RESULTS AND EARNINGS | ||||||||||||
Domestic | $ | (1,552 | ) | $ | (4,151 | ) | $ | (2,381 | ) | |||
Foreign | 965 | (3,747 | ) | 2,935 | ||||||||
Exploration | (49 | ) | (162 | ) | (126 | ) | ||||||
Oil and Gas (b,c,d) | (636 | ) | (8,060 | ) | 428 | |||||||
Chemical (e) | 571 | 542 | 420 | |||||||||
Midstream and Marketing (f,g) | (381 | ) | (1,194 | ) | 2,564 | |||||||
(446 | ) | (8,712 | ) | 3,412 | ||||||||
Unallocated corporate items | ||||||||||||
Interest expense, net | (275 | ) | (141 | ) | (71 | ) | ||||||
Income taxes | 662 | 1,330 | (1,685 | ) | ||||||||
Other (h) | (943 | ) | (623 | ) | (1,800 | ) | ||||||
Income (loss) from continuing operations (i) | (1,002 | ) | (8,146 | ) | (144 | ) | ||||||
Discontinued operations, net (j) | 428 | 317 | 760 | |||||||||
Net Income attributable to common stock | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | ||||
Basic Earnings per Common Share | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 |
Benefit (Charge) (in millions) | 2016 | 2015 | 2014 | |||||||||
OIL AND GAS | ||||||||||||
Asset sales gains (b) | $ | 107 | $ | 10 | $ | 531 | ||||||
Asset impairments and related items domestic (c) | (1 | ) | (3,457 | ) | (4,766 | ) | ||||||
Asset impairments and related items international (d) | (70 | ) | (5,050 | ) | (1,066 | ) | ||||||
Total Oil and Gas | $ | 36 | $ | (8,497 | ) | $ | (5,301 | ) | ||||
CHEMICAL | ||||||||||||
Asset sales gains (e) | $ | 88 | $ | 98 | $ | — | ||||||
Asset impairments and related items | — | (121 | ) | (149 | ) | |||||||
Total Chemical | $ | 88 | $ | (23 | ) | $ | (149 | ) | ||||
MIDSTREAM AND MARKETING | ||||||||||||
Asset sale gains (f) | $ | — | $ | — | $ | 1,984 | ||||||
Asset impairments and related items (g) | (160 | ) | (1,259 | ) | 31 | |||||||
Total Midstream and Marketing | $ | (160 | ) | $ | (1,259 | ) | $ | 2,015 | ||||
CORPORATE | ||||||||||||
Asset sale losses | $ | — | $ | (8 | ) | $ | — | |||||
Asset impairments (h) | (619 | ) | (235 | ) | (1,358 | ) | ||||||
Severance, spin-off and other | — | (118 | ) | (61 | ) | |||||||
Tax effect of pre-tax and other adjustments | 424 | 1,903 | 927 | |||||||||
Discontinued operations, net of tax (j) | 428 | 317 | 760 | |||||||||
Total Corporate | $ | 233 | $ | 1,859 | $ | 268 | ||||||
TOTAL | $ | 197 | $ | (7,920 | ) | $ | (3,167 | ) |
millions, except per share amounts | 2019 | 2018 | 2017 | |||||||||
NET SALES (a) | ||||||||||||
Oil and Gas | $ | 13,423 | $ | 10,441 | $ | 7,870 | ||||||
Chemical | 4,102 | 4,657 | 4,355 | |||||||||
Marketing and Midstream | 4,132 | 3,656 | 1,157 | |||||||||
Eliminations | (1,264 | ) | (930 | ) | (874 | ) | ||||||
Total | $ | 20,393 | $ | 17,824 | $ | 12,508 | ||||||
SEGMENT RESULTS AND EARNINGS | ||||||||||||
Domestic | $ | 838 | $ | 621 | $ | (589 | ) | |||||
International | 1,683 | 1,896 | 1,767 | |||||||||
Exploration | (169 | ) | (75 | ) | (67 | ) | ||||||
Oil and Gas | 2,352 | 2,442 | 1,111 | |||||||||
Chemical | 799 | 1,159 | 822 | |||||||||
Marketing and Midstream | 241 | 2,802 | 85 | |||||||||
Total | $ | 3,392 | $ | 6,403 | $ | 2,018 | ||||||
Unallocated corporate items | ||||||||||||
Interest expense, net | (1,002 | ) | (356 | ) | (324 | ) | ||||||
Income taxes | (693 | ) | (1,477 | ) | (17 | ) | ||||||
Other | (2,204 | ) | (439 | ) | (366 | ) | ||||||
Income (loss) from continuing operations | $ | (507 | ) | $ | 4,131 | $ | 1,311 | |||||
Discontinued operations, net | (15 | ) | — | — | ||||||||
Net income (loss) | (522 | ) | 4,131 | 1,311 | ||||||||
Less: Net income attributable to noncontrolling interests | (145 | ) | — | — | ||||||||
Less: Preferred stock dividends | (318 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders | $ | (985 | ) | $ | 4,131 | $ | 1,311 | |||||
Net income (loss) attributable to common stockholders—basic | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | |||||
Net income (loss) attributable to common stockholders—diluted | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 |
(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. |
OXY 2019 FORM 10-K | 33 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
millions | 2019 | 2018 | 2017 | |||||||||
Segment Sales | $ | 13,423 | $ | 10,441 | $ | 7,870 | ||||||
Segment Results (a) | ||||||||||||
Domestic | $ | 838 | $ | 621 | $ | (589 | ) | |||||
International | 1,683 | 1,896 | 1,767 | |||||||||
Exploration | (169 | ) | (75 | ) | (67 | ) | ||||||
Total | $ | 2,352 | $ | 2,442 | $ | 1,111 | ||||||
Items affecting comparability | ||||||||||||
Asset sale gains, net (b) | $ | 475 | $ | — | $ | 655 | ||||||
Asset impairments and related items domestic (c) | $ | (288 | ) | $ | — | $ | (397 | ) | ||||
Asset impairments and related items international (d) | $ | (39 | ) | $ | (416 | ) | $ | (4 | ) | |||
Oil collars mark-to-market gains | $ | (107 | ) | $ | — | $ | — |
(a) | Results include significant items affecting comparability discussed in the footnotes below. |
(b) | The |
(c) | The |
(d) | The |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Segment Sales | $ | 6,377 | $ | 8,304 | $ | 13,887 | ||||||
Segment Results | ||||||||||||
Domestic | $ | (1,552 | ) | $ | (4,151 | ) | $ | (2,381 | ) | |||
Foreign | 965 | (3,747 | ) | 2,935 | ||||||||
Exploration | (49 | ) | (162 | ) | (126 | ) | ||||||
$ | (636 | ) | $ | (8,060 | ) | $ | 428 |
Production per Day (MBOE) | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Permian Resources | 124 | 110 | 75 | ||||||
Permian EOR | 145 | 145 | 147 | ||||||
South Texas and Other | 33 | 73 | 96 | ||||||
Total | 302 | 328 | 318 | ||||||
Latin America | 34 | 37 | 29 | ||||||
Middle East/North Africa | |||||||||
Al Hosn | 64 | 35 | — | ||||||
Dolphin | 43 | 41 | 38 | ||||||
Oman | 96 | 89 | 76 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Other | 26 | 72 | 67 | ||||||
Total | 294 | 303 | 250 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Average Realized Prices table) |
Production per Day from Ongoing Operations (MBOE) | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Permian Resources | 124 | 110 | 75 | ||||||
Permian EOR | 145 | 145 | 147 | ||||||
South Texas and Other | 31 | 42 | 52 | ||||||
Total | 300 | 297 | 274 | ||||||
Latin America | 34 | 37 | 29 | ||||||
Middle East/North Africa | |||||||||
Al Hosn | 64 | 35 | — | ||||||
Dolphin | 43 | 41 | 38 | ||||||
Oman | 96 | 89 | 76 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Total | 268 | 231 | 183 | ||||||
Total Production Ongoing Operations | 602 | 565 | 486 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 72 | 67 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Average Realized Prices table) |
Production per Day by Products | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | |||||||||
Permian Resources | 77 | 71 | 43 | ||||||
Permian EOR | 108 | 110 | 111 | ||||||
South Texas and Other | 4 | 21 | 29 | ||||||
Total | 189 | 202 | 183 | ||||||
NGLs (MBBL) | |||||||||
Permian Resources | 21 | 16 | 12 | ||||||
Permian EOR | 27 | 29 | 30 | ||||||
South Texas and Other | 5 | 10 | 13 | ||||||
Total | 53 | 55 | 55 | ||||||
Natural gas (MMCF) | |||||||||
Permian Resources | 158 | 137 | 120 | ||||||
Permian EOR | 59 | 37 | 38 | ||||||
South Texas and Other | 144 | 250 | 318 | ||||||
Total | 361 | 424 | 476 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 33 | 35 | 27 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 7 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Other | 7 | 32 | 28 | ||||||
Total | 168 | 194 | 173 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | |||||||||
Al Hosn | 190 | 109 | — | ||||||
Dolphin | 166 | 158 | 143 | ||||||
Oman | 115 | 44 | 43 | ||||||
Other | 114 | 237 | 236 | ||||||
Total | 585 | 548 | 422 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Average Realized Prices table) |
Production per Day by Products from Ongoing Operations | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | |||||||||
Permian Resources | 77 | 71 | 43 | ||||||
Permian EOR | 108 | 110 | 111 | ||||||
South Texas and Other | 4 | 6 | 7 | ||||||
Total | 189 | 187 | 161 | ||||||
NGLs (MBBL) | |||||||||
Permian Resources | 21 | 16 | 12 | ||||||
Permian EOR | 27 | 29 | 30 | ||||||
South Texas and Other | 5 | 7 | 9 | ||||||
Total | 53 | 52 | 51 | ||||||
Natural gas (MMCF) | |||||||||
Permian Resources | 158 | 137 | 120 | ||||||
Permian EOR | 59 | 37 | 38 | ||||||
South Texas and Other | 133 | 173 | 210 | ||||||
Total | 350 | 347 | 368 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 33 | 35 | 27 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 7 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Total | 161 | 162 | 145 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | |||||||||
Al Hosn | 190 | 109 | — | ||||||
Dolphin | 166 | 158 | 143 | ||||||
Oman | 115 | 44 | 43 | ||||||
Total | 471 | 311 | 186 | ||||||
Total Production Ongoing Operations | 602 | 565 | 486 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 72 | 67 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Average Realized Prices table) |
millions (except percentages) | 2019 | Year over Year Change | 2018 | Year over Year Change | 2017 | |||||||||||||
Average Realized Prices | ||||||||||||||||||
Oil Prices ($ per bbl) | ||||||||||||||||||
United States | $ | 54.31 | (4 | )% | $ | 56.30 | 18 | % | $ | 47.91 | ||||||||
Latin America | $ | 57.26 | (11 | )% | $ | 64.32 | 33 | % | $ | 48.50 | ||||||||
Middle East | $ | 61.96 | (8 | )% | $ | 67.69 | 34 | % | $ | 50.38 | ||||||||
Total worldwide | $ | 56.09 | (8 | )% | $ | 60.64 | 24 | % | $ | 48.93 | ||||||||
NGL Prices ($ per bbl) | ||||||||||||||||||
United States | $ | 16.03 | (42 | )% | $ | 27.64 | 17 | % | $ | 23.67 | ||||||||
Middle East | $ | 21.31 | (8 | )% | $ | 23.20 | 29 | % | $ | 18.05 | ||||||||
Total worldwide | $ | 17.06 | (35 | )% | $ | 26.25 | 21 | % | $ | 21.63 | ||||||||
Gas Prices ($ per Mcf) | ||||||||||||||||||
United States | $ | 1.31 | (18 | )% | $ | 1.59 | (31 | )% | $ | 2.31 | ||||||||
Latin America | $ | 7.01 | 9 | % | $ | 6.43 | 27 | % | $ | 5.08 | ||||||||
Total worldwide | $ | 1.45 | (10 | )% | $ | 1.62 | (12 | )% | $ | 1.84 |
34 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
Sales Volumes per Day by Products | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | 189 | 202 | 183 | ||||||
NGLs (MBBL) | 53 | 55 | 55 | ||||||
Natural gas (MMCF) | 361 | 424 | 476 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 34 | 35 | 29 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 8 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 66 | 67 | 69 | ||||||
Other | 7 | 36 | 27 | ||||||
Total | 169 | 200 | 172 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | 585 | 548 | 422 | ||||||
Total Sales Volumes (MBOE) (a) | 632 | 674 | 598 | ||||||
(See footnote following the Average Realized Prices table) |
Sales Volumes per Day by Products from Ongoing Operations | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | 189 | 187 | 161 | ||||||
NGLs (MBBL) | 53 | 52 | 51 | ||||||
Natural gas (MMCF) | 350 | 347 | 368 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 34 | 35 | 29 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 8 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 66 | 67 | 69 | ||||||
Total | 162 | 164 | 145 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | 471 | 311 | 186 | ||||||
Total Sales Ongoing Operations | 604 | 567 | 488 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 76 | 66 | ||||||
Total Sales Volumes (MBOE) (a) | 632 | 674 | 598 | ||||||
(See footnote following the Average Realized Prices table) |
2016 | 2015 | 2014 | ||||||||||
Average Realized Prices | ||||||||||||
Oil Prices ($ per bbl) | ||||||||||||
United States | $ | 39.38 | $ | 45.04 | $ | 84.73 | ||||||
Latin America | $ | 37.48 | $ | 44.49 | $ | 88.00 | ||||||
Middle East/North Africa | $ | 38.25 | $ | 49.65 | $ | 96.34 | ||||||
Total worldwide | $ | 38.73 | $ | 47.10 | $ | 90.13 | ||||||
NGLs Prices ($ per bbl) | ||||||||||||
United States | $ | 14.72 | $ | 15.35 | $ | 37.79 | ||||||
Middle East/North Africa | $ | 15.01 | $ | 17.88 | $ | 30.98 | ||||||
Total worldwide | $ | 14.82 | $ | 15.96 | $ | 37.01 | ||||||
Gas Prices ($ per Mcf) | ||||||||||||
United States | $ | 1.90 | $ | 2.15 | $ | 3.97 | ||||||
Latin America | $ | 3.78 | $ | 5.20 | $ | 8.94 | ||||||
Total worldwide | $ | 1.53 | $ | 1.49 | $ | 2.55 |
Production per Day from Ongoing Operations (MBOE/d) | 2019 | Year over Year Change | 2018 | Year over Year Change | 2017 | ||||||||||
United States | |||||||||||||||
Permian Resources | 355 | 66 | % | 214 | 52 | % | 141 | ||||||||
Permian EOR | 154 | — | % | 154 | 3 | % | 150 | ||||||||
DJ Basin | 120 | N/A | — | N/A | — | ||||||||||
Gulf of Mexico | 58 | N/A | — | N/A | — | ||||||||||
Other Domestic | 27 | N/A | 4 | N/A | 5 | ||||||||||
Total | 714 | 92 | % | 372 | 26 | % | 296 | ||||||||
Latin America | 34 | 6 | % | 32 | — | % | 32 | ||||||||
Middle East | |||||||||||||||
Al Hosn Gas | 82 | 12 | % | 73 | 3 | % | 71 | ||||||||
Dolphin | 42 | 5 | % | 40 | (5 | )% | 42 | ||||||||
Oman | 89 | 3 | % | 86 | (9 | )% | 95 | ||||||||
Qatar | 35 | (36 | )% | 55 | (5 | )% | 58 | ||||||||
Total | 248 | (2 | )% | 254 | (5 | )% | 266 | ||||||||
Total Production from Ongoing Operations | 996 | 51 | % | 658 | 11 | % | 594 | ||||||||
Sold domestic operations | — | N/A | — | N/A | 8 | ||||||||||
Discontinued operations - Africa Assets | 33 | N/A | — | N/A | — | ||||||||||
Total Production (MBOE/d) (a) | 1,029 | 56 | % | 658 | 9 | % | 602 |
(a) | Natural gas volumes have been converted to BOE based on energy content of six Mcf of gas to one barrel of oil. Barrels of oil equivalence does not necessarily result in price equivalence. Please refer to “Supplemental Oil and Gas Information (unaudited)” for additional information on oil and gas production and sales. |
2019 | 2018 | 2017 | ||||
Average lease operating expense per BOE | $9.19 | $11.52 | $11.20 |
OXY 2019 FORM 10-K | 35 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
millions | 2019 | 2018 | 2017 | |||||||||
Segment Sales | $ | 4,102 | $ | 4,657 | $ | 4,355 | ||||||
Segment Results | $ | 799 | $ | 1,159 | $ | 822 |
millions | 2019 | 2018 | 2017 | |||||||||
Segment Sales | $ | 4,132 | $ | 3,656 | $ | 1,157 | ||||||
Segment Results (a) | $ | 241 | $ | 2,802 | $ | 85 | ||||||
Items affecting comparability | ||||||||||||
Asset and equity investment sale gains (b) | $ | 114 | $ | 907 | $ | 94 | ||||||
Asset impairments and other charges(c) | $ | (1,002 | ) | $ | — | $ | (120 | ) | ||||
Interest rate swaps MTM, net(d) | $ | 30 | $ | — | $ | — |
(a) | Results include items affecting comparability listed below, as well as WES segment results from August 8, 2019 to December 31, 2019 of $541 million. |
(b) | The 2019 amount represented a $114 million gain on the sale of an equity investment in Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. (together, Plains). The 2018 amount represented a gain on sale of non-core domestic midstream assets. The 2017 amount represented a non-cash fair value gain related to Plains. |
(c) | The 2019 amount included a $1 billion charge as a result of recording Occidental’s investment in WES at fair value as of December 31, 2019 upon the loss of control. The 2017 amount represented impairments and related charges related to idled midstream facilities. |
(d) | The 2019 amount represented a $30 million mark-to-market gain on an interest rate swap for WES. |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Segment Sales | $ | 3,756 | $ | 3,945 | $ | 4,817 | ||||||
Segment Results | $ | 571 | $ | 542 | $ | 420 |
millions | 2019 | 2018 | 2017 | |||||||||
Items Affecting Comparability | ||||||||||||
Anadarko acquisition-related costs | $ | (1,647 | ) | $ | — | $ | — | |||||
Bridge loan financing fees | $ | (122 | ) | $ | — | $ | — | |||||
Other acquisition-related pension and other termination benefits | $ | 37 | $ | — | $ | — | ||||||
Asset impairments and other charges | $ | (22 | ) | $ | — | $ | — | |||||
Gains on warrants and interest rate swaps, net | $ | 203 | $ | — | $ | — |
36 | OXY 2019 FORM 10-K |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Segment Sales | $ | 684 | $ | 891 | $ | 1,373 | ||||||
Segment Results | $ | (381 | ) | $ | (1,194 | ) | $ | 2,564 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
INCOME TAXES |
(in millions) | 2016 | 2015 | 2014 | |||||||||
SEGMENT RESULTS | ||||||||||||
Oil and Gas | $ | (636 | ) | $ | (8,060 | ) | $ | 428 | ||||
Chemical | 571 | 542 | 420 | |||||||||
Midstream and Marketing (a) | (381 | ) | (1,194 | ) | 2,564 | |||||||
Unallocated Corporate Items | (1,218 | ) | (764 | ) | (1,871 | ) | ||||||
Pre-tax (loss) income | (1,664 | ) | (9,476 | ) | 1,541 | |||||||
Income tax (benefit) expense | ||||||||||||
Federal and State | (1,298 | ) | (2,070 | ) | (157 | ) | ||||||
Foreign | 636 | 740 | 1,842 | |||||||||
Total income tax (benefit) expense | (662 | ) | (1,330 | ) | 1,685 | |||||||
Loss from continuing operations(a) | $ | (1,002 | ) | $ | (8,146 | ) | $ | (144 | ) | |||
Worldwide effective tax rate | 40 | % | 14 | % | 109 | % |
millions | 2019 | 2018 | 2017 | |||||||||
SEGMENT RESULTS | ||||||||||||
Oil and Gas | $ | 2,352 | $ | 2,442 | $ | 1,111 | ||||||
Chemical | 799 | 1,159 | 822 | |||||||||
Marketing and Midstream | 241 | 2,802 | 85 | |||||||||
Unallocated corporate items | (3,206 | ) | (795 | ) | (690 | ) | ||||||
Income from continuing operations before taxes | $ | 186 | $ | 5,608 | $ | 1,328 | ||||||
Income tax expense (benefit) | ||||||||||||
Federal and state | (34 | ) | 463 | (903 | ) | |||||||
Foreign | 727 | 1,014 | 920 | |||||||||
Total income tax expense | $ | 693 | $ | 1,477 | $ | 17 | ||||||
Income (loss) from continuing operations | $ | (507 | ) | $ | 4,131 | $ | 1,311 | |||||
Worldwide effective tax rate | 373 | % | 26 | % | 1 | % |
CONSOLIDATED RESULTS OF OPERATIONS |
(in millions) | 2016 | 2015 | 2014 | |||||||||||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||||||||||||||
Net sales | $ | 10,090 | $ | 12,480 | $ | 19,312 | $ | 20,393 | $ | 17,824 | $ | 12,508 | ||||||||||||
Interest, dividends and other income | $ | 106 | $ | 118 | $ | 130 | $ | 217 | $ | 136 | $ | 99 | ||||||||||||
Gain on sale of equity investments and other assets | $ | 202 | $ | 101 | $ | 2,505 | ||||||||||||||||||
Gain on sale of equity investments and other assets, net | $ | 622 | $ | 974 | $ | 667 |
OXY 2019 FORM 10-K | 37 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
(in millions) | 2016 | 2015 | 2014 | |||||||||||||||||||||
Cost of sales | $ | 5,189 | $ | 5,804 | $ | 6,803 | ||||||||||||||||||
Selling, general and administrative and other operating expenses | $ | 1,330 | $ | 1,270 | $ | 1,503 | ||||||||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||||||||||||||
Oil and gas operating expense | $ | 3,246 | $ | 2,761 | $ | 2,427 | ||||||||||||||||||
Transportation expense | $ | 621 | $ | 152 | $ | 175 | ||||||||||||||||||
Chemical and midstream cost of sales | $ | 2,791 | $ | 2,833 | $ | 2,938 | ||||||||||||||||||
Purchased commodities | $ | 1,679 | $ | 822 | $ | 54 | ||||||||||||||||||
Selling, general and administrative | $ | 882 | $ | 585 | $ | 546 | ||||||||||||||||||
Other operating and non-operating expense | $ | 1,425 | $ | 1,028 | $ | 878 | ||||||||||||||||||
Depreciation, depletion and amortization | $ | 4,268 | $ | 4,544 | $ | 4,261 | $ | 5,981 | $ | 3,977 | $ | 4,002 | ||||||||||||
Asset impairments and related items | $ | 825 | $ | 10,239 | $ | 7,379 | ||||||||||||||||||
Asset impairments and other charges | $ | 1,361 | $ | 561 | $ | 545 | ||||||||||||||||||
Taxes other than on income | $ | 277 | $ | 343 | $ | 550 | $ | 707 | $ | 439 | $ | 311 | ||||||||||||
Anadarko acquisition-related costs | $ | 1,647 | $ | — | $ | — | ||||||||||||||||||
Exploration expense | $ | 62 | $ | 36 | $ | 150 | $ | 246 | $ | 110 | $ | 82 | ||||||||||||
Interest and debt expense, net | $ | 292 | $ | 147 | $ | 77 | $ | 1,066 | $ | 389 | $ | 345 |
38 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
Income/(expense) (in millions) | 2016 | 2015 | 2014 | |||||||||
(Provision for) benefit from income taxes | $ | 662 | $ | 1,330 | $ | (1,685 | ) | |||||
Income from equity investments | $ | 181 | $ | 208 | $ | 331 | ||||||
Discontinued operations, net | $ | 428 | $ | 317 | $ | 760 |
Income/(expense) millions | 2019 | 2018 | 2017 | |||||||||
Income tax expense | $ | (693 | ) | $ | (1,477 | ) | $ | (17 | ) | |||
Income from equity investments | $ | 373 | $ | 331 | $ | 357 | ||||||
Discontinued operations, net | $ | (15 | ) | $ | — | $ | — |
OXY 2019 FORM 10-K | 39 |
(in millions) | 2016 | 2015 | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 2,233 | $ | 3,201 | ||||
Restricted cash | — | 1,193 | ||||||
Trade receivables, net | 3,989 | 2,970 | ||||||
Inventories | 866 | 986 | ||||||
Assets held for sale | — | 141 | ||||||
Other current assets | 1,340 | 911 | ||||||
Total current assets | $ | 8,428 | $ | 9,402 | ||||
Investments in unconsolidated entities | $ | 1,401 | $ | 1,267 | ||||
Available for sale investment | $ | — | $ | 167 | ||||
Property, plant and equipment, net | $ | 32,337 | $ | 31,639 | ||||
Long-term receivables and other assets, net | $ | 943 | $ | 934 | ||||
CURRENT LIABILITIES | ||||||||
Current maturities of long-term debt | $ | — | $ | 1,450 | ||||
Accounts payable | 3,926 | 3,069 | ||||||
Accrued liabilities | 2,436 | 2,213 | ||||||
Liabilities of assets held for sale | — | 110 | ||||||
Total current liabilities | $ | 6,362 | $ | 6,842 | ||||
Long-term debt, net | $ | 9,819 | $ | 6,855 | ||||
Deferred credits and other liabilities-income taxes | $ | 1,132 | $ | 1,323 | ||||
Deferred credits and other liabilities-other | $ | 4,299 | $ | 4,039 | ||||
Stockholders’ equity | $ | 21,497 | $ | 24,350 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
LIQUIDITY AND CAPITAL RESOURCES |
Cash provided by operating activities | ||||||||||||||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||||||||||||||
Operating cash flow from continuing operations | $ | 2,519 | $ | 3,254 | $ | 8,871 | $ | 7,203 | $ | 7,669 | $ | 4,861 | ||||||||||||
Operating cash flow from discontinued operations, net of taxes | 864 | 97 | 2,197 | 172 | — | — | ||||||||||||||||||
Net cash provided by operating activities | $ | 3,383 | $ | 3,351 | $ | 11,068 | $ | 7,375 | $ | 7,669 | $ | 4,861 |
40 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
millions | 2019 | 2018 | 2017 | |||||||||
Capital expenditures | ||||||||||||
Oil and Gas | $ | (5,500 | ) | $ | (4,413 | ) | $ | (2,945 | ) | |||
Chemical | (267 | ) | (271 | ) | (308 | ) | ||||||
Marketing and Midstream(a) | (461 | ) | (216 | ) | (284 | ) | ||||||
Corporate | (127 | ) | (75 | ) | (62 | ) | ||||||
Total | $ | (6,355 | ) | $ | (4,975 | ) | $ | (3,599 | ) | |||
Purchase of businesses and assets, net | (28,088 | ) | (928 | ) | (1,064 | ) | ||||||
Proceeds from sale of assets and equity investments, net | 6,143 | 2,824 | 1,403 | |||||||||
Other investing activities, net | (573 | ) | (127 | ) | 181 | |||||||
Investing cash flows from continuing operations | $ | (28,873 | ) | $ | (3,206 | ) | $ | (3,079 | ) | |||
Investing cash flows from discontinued operations | (154 | ) | — | — | ||||||||
Net cash used by investing activities | $ | (29,027 | ) | $ | (3,206 | ) | $ | (3,079 | ) |
Cash used by investing activities | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
Capital expenditures | ||||||||||||
Oil and Gas | $ | (1,978 | ) | $ | (4,442 | ) | $ | (6,533 | ) | |||
Chemical | (324 | ) | (254 | ) | (314 | ) | ||||||
Midstream and Marketing | (358 | ) | (535 | ) | (1,983 | ) | ||||||
Corporate | (57 | ) | (41 | ) | (100 | ) | ||||||
Total | (2,717 | ) | (5,272 | ) | (8,930 | ) | ||||||
Other investing activities, net | (2,025 | ) | (151 | ) | 2,686 | |||||||
Net cash used by investing activities – continuing operations | (4,742 | ) | (5,423 | ) | (6,244 | ) | ||||||
Investing cash flow from discontinued operations | — | — | (2,226 | ) | ||||||||
Net cash used by investing activities | $ | (4,742 | ) | $ | (5,423 | ) | $ | (8,470 | ) |
Cash provided (used) by financing activities | ||||||||||||
(in millions) | 2016 | 2015 | 2014 | |||||||||
Financing cash flow from continuing operations | $ | 391 | $ | 1,484 | $ | (2,326 | ) | |||||
Financing cash flow from discontinued operations | — | — | 124 | |||||||||
Net cash provided (used) by financing activities | $ | 391 | $ | 1,484 | $ | (2,202 | ) |
millions | 2019 | 2018 | 2017 | |||||||||
Net cash provided (used) by financing activities | $ | 22,193 | $ | (3,102 | ) | $ | (2,343 | ) |
OXY 2019 FORM 10-K | 41 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
OFF-BALANCE SHEET ARRANGEMENTS |
COMMITMENTS AND OBLIGATIONS |
Contractual Obligations (in millions) | Payments Due by Year | |||||||||||||||||||
Total | 2017 | 2018 and 2019 | 2020 and 2021 | 2022 and thereafter | ||||||||||||||||
On-Balance Sheet | ||||||||||||||||||||
Long-term debt (Note 5) (a) | $ | 9,907 | $ | — | $ | 616 | $ | 1,249 | $ | 8,042 | ||||||||||
Other long-term liabilities (b) | 2,218 | 760 | 323 | 294 | 841 | |||||||||||||||
Off-Balance Sheet | ||||||||||||||||||||
Operating leases (Note 6) | 1,274 | 255 | 364 | 186 | 469 | |||||||||||||||
Purchase obligations (c) | 8,938 | 1,649 | 2,037 | 1,450 | 3,802 | |||||||||||||||
Total | $ | 22,337 | $ | 2,664 | $ | 3,340 | $ | 3,179 | $ | 13,154 |
millions | Payments Due by Year | ||||||||||||||||||
Total | 2020 | 2021 and 2022 | 2023 and 2024 | 2025 and thereafter | |||||||||||||||
On-Balance Sheet | |||||||||||||||||||
Long-term debt (Note 7) (a) | $ | 37,401 | $ | — | $ | 11,096 | $ | 5,111 | $ | 21,194 | |||||||||
Leases (Note 8) (b) | 2,018 | 608 | 630 | 251 | 529 | ||||||||||||||
Asset retirement obligations (Note 1) | 4,633 | 247 | 271 | 799 | 3,316 | ||||||||||||||
Other long-term liabilities (c) | 3,765 | 1,054 | 513 | 490 | 1,708 | ||||||||||||||
Off-Balance Sheet | |||||||||||||||||||
Purchase obligations (d) | 20,712 | 3,252 | 5,704 | 4,660 | 7,096 | ||||||||||||||
Total | $ | 68,529 | $ | 5,161 | $ | 18,214 | $ | 11,311 | $ | 33,843 |
(a) |
(b) | Occidental is the lessee under various agreements for real estate, equipment, plants and facilities. See Note 2 - Accounting and Disclosure Changes in the Notes to Consolidated Financial Statements regarding the impact of rules effective January 1, 2019 which require Occidental to recognize most leases, including operating leases, on the balance sheet. |
(c) | Included obligations under postretirement benefit and deferred compensation plans, accrued transportation commitments, severance and change of control obligations related to the Acquisition and other accrued liabilities. |
(d) | Amounts |
42 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES |
OXY 2019 FORM 10-K | 43 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
ENVIRONMENTAL LIABILITIES AND EXPENDITURES |
2019 | 2018 | |||||||||||||
millions, except number of sites | Number of Sites | Remediation Balance | Number of Sites | Remediation Balance | ||||||||||
NPL sites | 36 | $ | 463 | 34 | $ | 458 | ||||||||
Third-party sites | 74 | 311 | 68 | 168 | ||||||||||
Occidental-operated sites | 17 | 154 | 14 | 115 | ||||||||||
Closed or non-operated Occidental sites | 50 | 269 | 29 | 141 | ||||||||||
Total | 177 | $ | 1,197 | 145 | $ | 882 |
44 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
millions | 2019 | 2018 | 2017 | |||||||||
Operating Expenses | ||||||||||||
Oil and Gas | $ | 178 | $ | 91 | $ | 62 | ||||||
Chemical | 80 | 80 | 78 | |||||||||
Marketing and Midstream | 12 | 10 | 7 | |||||||||
Total | $ | 270 | $ | 181 | $ | 147 | ||||||
Capital Expenditures | ||||||||||||
Oil and Gas | $ | 111 | $ | 71 | $ | 71 | ||||||
Chemical | 34 | 23 | 18 | |||||||||
Marketing and Midstream | 4 | 2 | 3 | |||||||||
Total | $ | 149 | $ | 96 | $ | 92 | ||||||
Remediation Expenses | ||||||||||||
Corporate | $ | 112 | $ | 47 | $ | 39 |
OXY 2019 FORM 10-K | 45 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
GLOBAL INVESTMENTS |
millions | Oil and Gas | Chemical | Marketing and Midstream | Corporate and Other | Total Consolidated | ||||||||||||||
North America | |||||||||||||||||||
United States | $ | 72,833 | $ | 4,173 | $ | 13,324 | $ | 3,952 | $ | 94,282 | |||||||||
Canada | — | 126 | 27 | — | 153 | ||||||||||||||
Middle East | 3,748 | — | 3,634 | — | 7,382 | ||||||||||||||
Latin America | 1,355 | 57 | — | — | 1,412 | ||||||||||||||
Africa and Other | — | 5 | 70 | 6,026 | 6,101 | ||||||||||||||
Consolidated | $ | 77,936 | $ | 4,361 | $ | 17,055 | $ | 9,978 | $ | 109,330 |
CRITICAL ACCOUNTING POLICIES AND ESTIMATES |
46 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
OXY 2019 FORM 10-K | 47 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
Ø | Over-the-Counter (OTC) bilateral financial commodity contracts, international exchange contracts, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. |
Ø | Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace or are observable but have been adjusted based upon various assumptions and the fair value is designated as Level 3 within the valuation hierarchy. |
Ø | Occidental values debt using market-observable information for debt instruments that are traded on secondary markets. For debt instruments that are not traded, the fair value is determined by interpolating the value based on debt with similar terms and credit risk. |
($ amounts in millions) | 2016 | 2015 | 2014 | ||||||||||||||||||
# of Sites | Reserve Balance | # of Sites | Reserve Balance | # of Sites | Reserve Balance | ||||||||||||||||
NPL sites | 33 | $ | 461 | 34 | $ | 27 | 30 | $ | 23 | ||||||||||||
Third-party sites | 68 | 163 | 66 | 128 | 67 | 101 | |||||||||||||||
Occidental-operated sites | 17 | 106 | 18 | 107 | 17 | 107 | |||||||||||||||
Closed or non-operated Occidental sites | 29 | 140 | 31 | 124 | 31 | 103 | |||||||||||||||
Total | 147 | $ | 870 | 149 | $ | 386 | 145 | $ | 334 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Operating Expenses | ||||||||||||
Oil and Gas | $ | 65 | $ | 93 | $ | 103 | ||||||
Chemical | 75 | 74 | 80 | |||||||||
Midstream and Marketing | 11 | 13 | 11 | |||||||||
$ | 151 | $ | 180 | $ | 194 | |||||||
Capital Expenditures | ||||||||||||
Oil and Gas | $ | 43 | $ | 122 | $ | 143 | ||||||
Chemical | 25 | 41 | 35 | |||||||||
Midstream and Marketing | 5 | 4 | 11 | |||||||||
$ | 73 | $ | 167 | $ | 189 | |||||||
Remediation Expenses | ||||||||||||
Corporate | $ | 61 | $ | 117 | $ | 79 |
48 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SIGNIFICANT ACCOUNTING AND DISCLOSURE CHANGES |
OXY 2019 FORM 10-K | 49 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SAFE HARBOR DISCUSSION REGARDING OUTLOOK AND OTHER FORWARD-LOOKING DATA |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
COMMODITY PRICE RISK |
Maturity Periods | Maturity Periods | |||||||||||||||||||||||||||||||||||
Source of Fair Value Assets/(liabilities) (in millions) | 2017 | 2018 and 2019 | 2020 and 2021 | Total | ||||||||||||||||||||||||||||||||
Source of Fair Value Assets/(Liabilities) millions | 2020 | 2021 and 2022 | 2023 and 2024 | 2025 and thereafter | Total | |||||||||||||||||||||||||||||||
Prices actively quoted | $ | (6 | ) | $ | — | $ | — | $ | (6 | ) | $ | (63 | ) | $ | — | $ | — | $ | — | $ | (63 | ) | ||||||||||||||
Prices provided by other external sources | — | (1 | ) | — | (1 | ) | 36 | 8 | 1 | 1 | 46 | |||||||||||||||||||||||||
Total | $ | (6 | ) | $ | (1 | ) | $ | — | $ | (7 | ) | $ | (27 | ) | $ | 8 | $ | 1 | $ | 1 | $ | (17 | ) |
50 | OXY 2019 FORM 10-K |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
INTEREST RATE RISK |
millions except percentages | U.S. Dollar Fixed-Rate Debt | U.S. Dollar Variable-Rate Debt | Total (a) | |||||||||
2020 | $ | — | $ | — | $ | — | ||||||
2021 | 3,426 | 2,956 | 6,382 | |||||||||
2022 | 3,214 | 1,500 | 4,714 | |||||||||
2023 | 1,213 | — | 1,213 | |||||||||
2024 | 3,898 | — | 3,898 | |||||||||
Thereafter | 21,126 | 68 | 21,194 | |||||||||
Total | $ | 32,877 | $ | 4,524 | $ | 37,401 | ||||||
Weighted-average interest rate | 4.09 | % | 3.15 | % | 3.98 | % | ||||||
Fair Value | $ | 34,260 | $ | 4,535 | $ | 38,795 |
(a) | Excluded net unamortized debt premiums of $914 million and debt issuance cost of $125 million. |
FOREIGN CURRENCY RISK |
Year of Maturity (in millions of U.S. dollars) | U.S. Dollar Fixed-Rate Debt | U.S. Dollar Variable-Rate Debt | Grand Total (a) | |||||||||
2017 | $ | — | $ | — | — | |||||||
2018 | 500 | — | 500 | |||||||||
2019 | 116 | — | 116 | |||||||||
2020 | — | — | — | |||||||||
2021 | 1,249 | — | 1,249 | |||||||||
Thereafter | 7,974 | 68 | 8,042 | |||||||||
Total | $ | 9,839 | $ | 68 | $ | 9,907 | ||||||
Weighted-average interest rate | 3.67 | % | 0.90 | % | 3.65 | % | ||||||
Fair Value | $ | 10,001 | $ | 68 | $ | 10,069 |
OXY 2019 FORM 10-K |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
CREDIT RISK |
DERIVATIVE INSTRUMENTS HELD FOR NON-TRADING PURPOSES |
millions except percentages | ||||||||||
Percent change in commodity prices | Resulting net fair value position-asset (liability) | Change to fair value from December 31, 2019 position | ||||||||
+ 5% | $ | (270 | ) | $ | (202 | ) | ||||
- 5% | $ | 100 | $ | 168 | ||||||
+ 10% | $ | (525 | ) | $ | (457 | ) | ||||
-10% | $ | 254 | $ | 322 |
52 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS INDEX |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | PAGE |
Note 3 - The Acquisition | |
OXY 2019 FORM 10-K | 53 |
FINANCIAL STATEMENTS REPORT |
54 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
OXY 2019 FORM 10-K | 55 |
FINANCIAL STATEMENTS REPORT |
56 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
OXY 2019 FORM 10-K | 57 |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
Assets at December 31, | 2016 | 2015 | ||||||||||||||
December 31, | ||||||||||||||||
millions | 2019 | 2018 | ||||||||||||||
ASSETS | ||||||||||||||||
CURRENT ASSETS | ||||||||||||||||
Cash and cash equivalents | $ | 2,233 | $ | 3,201 | $ | 3,032 | $ | 3,033 | ||||||||
Restricted cash | — | 1,193 | ||||||||||||||
Trade receivables, net of reserves of $16 in 2016 and $17 in 2015 | 3,989 | 2,970 | ||||||||||||||
Restricted cash and restricted cash equivalents | 480 | — | ||||||||||||||
Trade receivables, net of reserves of $19 in 2019 and $21 in 2018 | 6,373 | 4,893 | ||||||||||||||
Inventories | 866 | 986 | 1,447 | 1,260 | ||||||||||||
Assets held for sale | — | 141 | 6,026 | — | ||||||||||||
Other current assets | 1,340 | 911 | 1,323 | 746 | ||||||||||||
Total current assets | 8,428 | 9,402 | 18,681 | 9,932 | ||||||||||||
INVESTMENTS | ||||||||||||||||
Investment in unconsolidated entities | 1,401 | 1,267 | ||||||||||||||
Available for sale investment | — | 167 | ||||||||||||||
Total investments | 1,401 | 1,434 | ||||||||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6,389 | 1,680 | ||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||||||||||
Oil and gas segment | 54,673 | 55,025 | 105,881 | 58,799 | ||||||||||||
Chemical segment | 6,930 | 6,717 | 7,172 | 7,001 | ||||||||||||
Midstream and marketing | 9,216 | 8,899 | ||||||||||||||
Marketing and midstream segment | 8,176 | 8,070 | ||||||||||||||
Corporate | 474 | 417 | 1,118 | 550 | ||||||||||||
71,293 | 71,058 | 122,347 | 74,420 | |||||||||||||
Accumulated depreciation, depletion and amortization | (38,956 | ) | (39,419 | ) | (41,878 | ) | (42,983 | ) | ||||||||
32,337 | 31,639 | 80,469 | 31,437 | |||||||||||||
OPERATING LEASE ASSETS | 1,385 | — | ||||||||||||||
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 943 | 934 | 2,406 | 805 | ||||||||||||
TOTAL ASSETS | $ | 43,109 | $ | 43,409 | $ | 109,330 | $ | 43,854 |
58 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
Liabilities and Stockholders’ Equity at December 31, | 2016 | 2015 | ||||||||||||||
December 31, | ||||||||||||||||
millions except share and per-share amounts | 2019 | 2018 | ||||||||||||||
LIABILITIES AND EQUITY | ||||||||||||||||
CURRENT LIABILITIES | ||||||||||||||||
Current maturities of long-term debt | $ | — | $ | 1,450 | $ | 51 | $ | 116 | ||||||||
Current operating lease liabilities | 569 | — | ||||||||||||||
Accounts payable | 3,926 | 3,069 | 7,017 | 4,885 | ||||||||||||
Accrued liabilities | 2,436 | 2,213 | 5,302 | 2,411 | ||||||||||||
Liabilities of assets held for sale | — | 110 | 2,010 | — | ||||||||||||
Total current liabilities | 6,362 | 6,842 | 14,949 | 7,412 | ||||||||||||
LONG-TERM DEBT, NET | 9,819 | 6,855 | ||||||||||||||
Long-term debt, net | 38,537 | 10,201 | ||||||||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||||||||||
Deferred domestic and foreign income taxes | 1,132 | 1,323 | ||||||||||||||
Deferred income taxes, net | 9,717 | 907 | ||||||||||||||
Asset retirement obligations | 4,385 | 1,424 | ||||||||||||||
Pension and postretirement obligations | 1,807 | 809 | ||||||||||||||
Environmental remediation liabilities | 1,035 | 762 | ||||||||||||||
Operating lease liabilities | 854 | — | ||||||||||||||
Other | 4,299 | 4,039 | 3,814 | 1,009 | ||||||||||||
5,431 | 5,362 | 21,612 | 4,911 | |||||||||||||
STOCKHOLDERS' EQUITY | ||||||||||||||||
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, issued shares: 2016 — 892,214,604 and 2015 — 891,360,091 | 178 | 178 | ||||||||||||||
Treasury stock: 2016 — 127,977,306 shares and 2015 — 127,681,335 shares | (9,143 | ) | (9,121 | ) | ||||||||||||
EQUITY | ||||||||||||||||
Preferred stock, at $1.00 per share par value (100,000 shares at December 31, 2019) | 9,762 | — | ||||||||||||||
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, issued shares: 2019 — 1,044,434,893 and 2018 — 895,115,637 | 209 | 179 | ||||||||||||||
Treasury stock: 2019 — 150,323,151 shares and 2018 — 145,726,051 shares | (10,653 | ) | (10,473 | ) | ||||||||||||
Additional paid-in capital | 7,747 | 7,640 | 14,955 | 8,046 | ||||||||||||
Retained earnings | 22,981 | 25,960 | 20,180 | 23,750 | ||||||||||||
Accumulated other comprehensive loss | (266 | ) | (307 | ) | (221 | ) | (172 | ) | ||||||||
Total stockholders' equity | 21,497 | 24,350 | ||||||||||||||
Total stockholders’ equity | 34,232 | 21,330 | ||||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 43,109 | $ | 43,409 | ||||||||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 109,330 | $ | 43,854 |
OXY 2019 FORM 10-K | 59 |
FINANCIAL STATEMENTS |
Consolidated Statements of Operations | Occidental Petroleum Corporation and Subsidiaries |
For the years ended December 31, | 2016 | 2015 | 2014 | |||||||||
REVENUES AND OTHER INCOME | ||||||||||||
Net sales | $ | 10,090 | $ | 12,480 | $ | 19,312 | ||||||
Interest, dividends and other income | 106 | 118 | 130 | |||||||||
Gain on sale of equity investments and other assets | 202 | 101 | 2,505 | |||||||||
10,398 | 12,699 | 21,947 | ||||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||
Cost of sales (excludes depreciation, depletion, and amortization of $4,266 in 2016, $4,540 in 2015, and $4,257 in 2014) | 5,189 | 5,804 | 6,803 | |||||||||
Selling, general and administrative and other operating expenses | 1,330 | 1,270 | 1,503 | |||||||||
Depreciation, depletion and amortization | 4,268 | 4,544 | 4,261 | |||||||||
Asset impairments and related items | 825 | 10,239 | 7,379 | |||||||||
Taxes other than on income | 277 | 343 | 550 | |||||||||
Exploration expense | 62 | 36 | 150 | |||||||||
Interest and debt expense, net | 292 | 147 | 77 | |||||||||
12,243 | 22,383 | 20,723 | ||||||||||
INCOME (LOSS) BEFORE INCOME TAXES AND OTHER ITEMS | (1,845 | ) | (9,684 | ) | 1,224 | |||||||
(Provision for) benefit from domestic and foreign income taxes | 662 | 1,330 | (1,685 | ) | ||||||||
Income from equity investments | 181 | 208 | 331 | |||||||||
INCOME (LOSS) FROM CONTINUING OPERATIONS | (1,002 | ) | (8,146 | ) | (130 | ) | ||||||
Income from discontinued operations | 428 | 317 | 760 | |||||||||
NET INCOME (LOSS) | $ | (574 | ) | $ | (7,829 | ) | $ | 630 | ||||
Less: Net income attributable to noncontrolling interest | — | — | (14 | ) | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCK | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | ||||
BASIC EARNINGS (LOSS) PER COMMON SHARE (attributable to common stock) | ||||||||||||
Income (loss) from continuing operations | $ | (1.31 | ) | $ | (10.64 | ) | $ | (0.18 | ) | |||
Discontinued operations, net | 0.56 | 0.41 | 0.97 | |||||||||
BASIC EARNINGS (LOSS) PER COMMON SHARE | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 | ||||
DILUTED EARNINGS (LOSS) PER COMMON SHARE (attributable to common stock) | ||||||||||||
Income (loss) from continuing operations | $ | (1.31 | ) | $ | (10.64 | ) | $ | (0.18 | ) | |||
Discontinued operations, net | 0.56 | 0.41 | 0.97 | |||||||||
DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 | ||||
DIVIDENDS PER COMMON SHARE | $ | 3.02 | $ | 2.97 | $ | 2.88 | ||||||
The accompanying notes are an integral part of these consolidated financial statements. |
Years Ended December 31, | ||||||||||||
millions except per-share amounts | 2019 | 2018 | 2017 | |||||||||
REVENUES AND OTHER INCOME | ||||||||||||
Net sales | $ | 20,393 | $ | 17,824 | $ | 12,508 | ||||||
Interest, dividends and other income | 217 | 136 | 99 | |||||||||
Gains on sale of equity investments and other assets, net | 622 | 974 | 667 | |||||||||
Total | 21,232 | 18,934 | 13,274 | |||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||
Oil and gas operating expense | 3,246 | 2,761 | 2,427 | |||||||||
Transportation expense | 621 | 152 | 175 | |||||||||
Chemical and midstream cost of sales | 2,791 | 2,833 | 2,938 | |||||||||
Purchased commodities | 1,679 | 822 | 54 | |||||||||
Selling, general and administrative | 882 | 585 | 546 | |||||||||
Other operating and non-operating expense | 1,425 | 1,028 | 878 | |||||||||
Depreciation, depletion and amortization | 5,981 | 3,977 | 4,002 | |||||||||
Asset impairments and other charges | 1,361 | 561 | 545 | |||||||||
Taxes other than on income | 707 | 439 | 311 | |||||||||
Anadarko acquisition-related costs | 1,647 | — | — | |||||||||
Exploration expense | 246 | 110 | 82 | |||||||||
Interest and debt expense, net | 1,066 | 389 | 345 | |||||||||
Total | 21,652 | 13,657 | 12,303 | |||||||||
Income (loss) before income taxes and other items | (420 | ) | 5,277 | 971 | ||||||||
OTHER ITEMS | ||||||||||||
Gains on interest rate swaps and warrants, net | 233 | — | — | |||||||||
Income from equity investments | 373 | 331 | 357 | |||||||||
Total | 606 | 331 | 357 | |||||||||
Income from continuing operations before income taxes | 186 | 5,608 | 1,328 | |||||||||
Income tax expense | (693 | ) | (1,477 | ) | (17 | ) | ||||||
Income (loss) from continuing operations | (507 | ) | 4,131 | 1,311 | ||||||||
Loss from discontinued operations, net of tax | (15 | ) | — | — | ||||||||
NET INCOME (LOSS) | (522 | ) | 4,131 | 1,311 | ||||||||
Less: Net income attributable to noncontrolling interest | (145 | ) | — | — | ||||||||
Less: Preferred stock dividends | (318 | ) | — | — | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (985 | ) | $ | 4,131 | $ | 1,311 | |||||
PER COMMON SHARE | ||||||||||||
Income (loss) from continuing operations—basic | $ | (1.20 | ) | $ | 5.40 | $ | 1.71 | |||||
(Loss) from discontinued operations—basic | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—basic | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | |||||
Income (loss) from continuing operations—diluted | $ | (1.20 | ) | $ | 5.39 | $ | 1.70 | |||||
(Loss) from discontinued operations—diluted | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—diluted | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 | |||||
DIVIDENDS PER COMMON SHARE | $ | 3.14 | $ | 3.10 | $ | 3.06 |
60 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Comprehensive Income | Occidental Petroleum Corporation and Subsidiaries |
For the years ended December 31, | 2016 | 2015 | 2014 | |||||||||||||||||||||
Net income (loss) attributable to common stock | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | ||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||||||||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | |||||||||||||||||
Other comprehensive income (loss) items: | ||||||||||||||||||||||||
Foreign currency translation (losses) gains | — | (2 | ) | (2 | ) | |||||||||||||||||||
Foreign currency translation gains | — | — | 3 | |||||||||||||||||||||
Unrealized gains (losses) on derivatives (a) | (14 | ) | 3 | (5 | ) | (129 | ) | (6 | ) | 13 | ||||||||||||||
Pension and postretirement gains (losses) (b) | 47 | 48 | (77 | ) | 78 | 137 | (7 | ) | ||||||||||||||||
Distribution of California Resources to shareholders (c) | — | — | 22 | |||||||||||||||||||||
Reclassification to income of realized losses (gains) on derivatives (d) | 8 | 1 | 8 | |||||||||||||||||||||
Reclassification of realized losses (gains) on derivatives (c) | 2 | 13 | (1 | ) | ||||||||||||||||||||
Other comprehensive income (loss), net of tax | 41 | 50 | (54 | ) | (49 | ) | 144 | 8 | ||||||||||||||||
Comprehensive income (loss) | $ | (533 | ) | $ | (7,779 | ) | $ | 562 | (571 | ) | 4,275 | 1,319 | ||||||||||||
Less: Comprehensive income attributable to noncontrolling interests | (145 | ) | — | — | ||||||||||||||||||||
Comprehensive income (loss) attributable to preferred and common stockholders | $ | (716 | ) | $ | 4,275 | $ | 1,319 |
(a) | Net of tax of |
(b) | Net of tax of $(25), $(38) and $4 in 2019, 2018 and 2017, respectively. See Note 15 - Retirement and Postretirement Benefit Plans in the Notes to |
(c) | Net of tax of $0, $(4) and $0 in |
OXY 2019 FORM 10-K | 61 |
FINANCIAL STATEMENTS |
Consolidated Statements of | Occidental Petroleum Corporation and Subsidiaries |
Equity Attributable to Common Stock | ||||||||||||||||||||||||||||
Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest | Total Equity | ||||||||||||||||||||||
Balance, December 31, 2013 | $ | 178 | $ | (6,095 | ) | $ | 7,515 | $ | 41,831 | $ | (303 | ) | $ | 246 | $ | 43,372 | ||||||||||||
Net income | — | — | — | 616 | — | — | 616 | |||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | (76 | ) | — | (76 | ) | |||||||||||||||||||
Dividends on common stock | — | — | — | (2,252 | ) | — | — | (2,252 | ) | |||||||||||||||||||
Issuance of common stock and other, net | — | — | 84 | — | — | — | 84 | |||||||||||||||||||||
Distribution of California Resources stock to shareholders | — | — | — | (4,128 | ) | 22 | — | (4,106 | ) | |||||||||||||||||||
Noncontrolling interest distributions and other | — | — | — | — | — | (246 | ) | (a) | (246 | ) | ||||||||||||||||||
Purchases of treasury stock | — | (2,433 | ) | — | — | — | — | (2,433 | ) | |||||||||||||||||||
Balance, December 31, 2014 | $ | 178 | $ | (8,528 | ) | $ | 7,599 | $ | 36,067 | $ | (357 | ) | $ | — | $ | 34,959 | ||||||||||||
Net loss | — | — | — | (7,829 | ) | — | — | (7,829 | ) | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 50 | — | 50 | |||||||||||||||||||||
Dividends on common stock | — | — | — | (2,278 | ) | — | — | (2,278 | ) | |||||||||||||||||||
Issuance of common stock and other, net | — | — | 41 | — | — | — | 41 | |||||||||||||||||||||
Purchases of treasury stock | — | (593 | ) | — | — | — | — | (593 | ) | |||||||||||||||||||
Balance, December 31, 2015 | $ | 178 | $ | (9,121 | ) | $ | 7,640 | $ | 25,960 | $ | (307 | ) | $ | — | $ | 24,350 | ||||||||||||
Net loss | — | — | — | (574 | ) | — | — | (574 | ) | |||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | 41 | — | 41 | |||||||||||||||||||||
Dividends on common stock | — | — | — | (2,405 | ) | — | — | (2,405 | ) | |||||||||||||||||||
Issuance of common stock and other, net | — | — | 107 | — | — | — | 107 | |||||||||||||||||||||
Purchases of treasury stock | — | (22 | ) | — | — | — | — | (22 | ) | |||||||||||||||||||
Balance, December 31, 2016 | $ | 178 | $ | (9,143 | ) | $ | 7,747 | $ | 22,981 | $ | (266 | ) | $ | — | $ | 21,497 |
Equity Attributable to Common Stock | ||||||||||||||||||||||||||||||||
millions, except per share amounts | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2016 | $ | — | $ | 178 | $ | (9,143 | ) | $ | 7,747 | $ | 22,981 | $ | (266 | ) | $ | — | $ | 21,497 | ||||||||||||||
Net income | — | — | — | — | 1,311 | — | — | 1,311 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||
Dividends on common stock, $3.06 per share | — | — | — | — | (2,357 | ) | — | — | (2,357 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | 1 | — | 137 | — | — | — | 138 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (25 | ) | — | — | — | — | (25 | ) | ||||||||||||||||||||||
Balance, December 31, 2017 | $ | — | $ | 179 | $ | (9,168 | ) | $ | 7,884 | $ | 21,935 | $ | (258 | ) | $ | — | $ | 20,572 | ||||||||||||||
Net income | — | — | — | — | 4,131 | — | — | 4,131 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 144 | — | 144 | ||||||||||||||||||||||||
Dividends on common stock, $3.10 per share | — | — | — | — | (2,374 | ) | — | — | (2,374 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | — | — | 162 | — | — | — | 162 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (1,305 | ) | — | — | — | — | (1,305 | ) | ||||||||||||||||||||||
Reclassification of stranded tax effects (See Note 2) | — | — | — | — | 58 | (58 | ) | — | — | |||||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | 179 | $ | (10,473 | ) | $ | 8,046 | $ | 23,750 | $ | (172 | ) | $ | — | $ | 21,330 | ||||||||||||||
Net income (loss) | — | — | — | — | (667 | ) | — | 145 | (522 | ) | ||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (49 | ) | — | (49 | ) | ||||||||||||||||||||||
Dividends on common stock, $3.14 per share | — | — | — | — | (2,585 | ) | — | — | (2,585 | ) | ||||||||||||||||||||||
Dividends on preferred stock, $3,489 per share | — | — | — | — | (318 | ) | — | — | (318 | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | 30 | — | 6,909 | — | — | — | 6,939 | ||||||||||||||||||||||||
Issuance of preferred stock | 9,762 | — | — | — | — | — | — | 9,762 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (180 | ) | — | — | — | — | (180 | ) | ||||||||||||||||||||||
Fair value of noncontrolling interest acquired | — | — | — | — | — | — | 4,895 | 4,895 | ||||||||||||||||||||||||
Noncontrolling interest distributions, net | — | — | — | — | — | — | (131 | ) | (131 | ) | ||||||||||||||||||||||
Change in control WES | — | — | — | — | — | — | (4,909 | ) | (4,909 | ) | ||||||||||||||||||||||
Balance, December 31, 2019 | $ | 9,762 | $ | 209 | $ | (10,653 | ) | $ | 14,955 | $ | 20,180 | $ | (221 | ) | $ | — | $ | 34,232 |
62 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Cash Flows | Occidental Petroleum Corporation and Subsidiaries |
For the years ended December 31, | 2016 | 2015 | 2014 | ||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||
millions | 2019 | 2018 | 2017 | ||||||||||||||||||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||||||||||||||||||||
Net income (loss) | $ | (574 | ) | $ | (7,829 | ) | $ | 630 | $ | (522 | ) | $ | 4,131 | $ | 1,311 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||||||||||||||
Income from discontinued operations | (428 | ) | (317 | ) | (760 | ) | |||||||||||||||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||||||||||||||
Discontinued operations, net | 15 | — | — | ||||||||||||||||||||
Depreciation, depletion and amortization of assets | 4,268 | 4,544 | 4,261 | 5,981 | 3,977 | 4,002 | |||||||||||||||||
Deferred income tax benefit | (517 | ) | (1,372 | ) | (1,178 | ) | |||||||||||||||||
Deferred income tax (benefit) provision | (1,027 | ) | 371 | (719 | ) | ||||||||||||||||||
Other noncash charges to income | 121 | 159 | 101 | 940 | 34 | 219 | |||||||||||||||||
Asset impairments and related items | 665 | 9,684 | 7,379 | ||||||||||||||||||||
Gain on sale of equity investments and other assets | (202 | ) | (101 | ) | (2,505 | ) | |||||||||||||||||
Undistributed earnings from equity investments | 3 | 6 | 38 | ||||||||||||||||||||
Dry hole expenses | 33 | 10 | 99 | ||||||||||||||||||||
Asset impairments and other charges | 1,328 | 561 | 545 | ||||||||||||||||||||
Gain on sales of equity investments and other assets, net | (622 | ) | (974 | ) | (667 | ) | |||||||||||||||||
Undistributed earnings from affiliates | (50 | ) | (43 | ) | (68 | ) | |||||||||||||||||
Dry hole expense | 89 | 56 | 51 | ||||||||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||||||||
Decrease (increase) in receivables | (1,091 | ) | 1,431 | 1,413 | |||||||||||||||||||
Increase in receivables | (44 | ) | (740 | ) | (158 | ) | |||||||||||||||||
Decrease (increase) in inventories | 17 | (24 | ) | (112 | ) | 77 | (108 | ) | (349 | ) | |||||||||||||
Decrease in other current assets | 65 | 33 | 89 | 186 | 94 | 39 | |||||||||||||||||
(Decrease) increase in accounts payable and accrued liabilities | 603 | (1,989 | ) | (530 | ) | 793 | 195 | (89 | ) | ||||||||||||||
(Decrease) increase in current domestic and foreign income taxes | 17 | (331 | ) | (54 | ) | ||||||||||||||||||
Increase in current domestic and foreign income taxes | 59 | 38 | 64 | ||||||||||||||||||||
Other operating, net | (461 | ) | (650 | ) | — | — | 77 | 680 | |||||||||||||||
Operating cash flow from continuing operations | 2,519 | 3,254 | 8,871 | 7,203 | 7,669 | 4,861 | |||||||||||||||||
Operating cash flow from discontinued operations, net of taxes | 864 | 97 | 2,197 | 172 | — | — | |||||||||||||||||
Net cash provided by operating activities | 3,383 | 3,351 | 11,068 | 7,375 | 7,669 | 4,861 | |||||||||||||||||
CASH FLOW FROM INVESTING ACTIVITIES | |||||||||||||||||||||||
Capital expenditures | (2,717 | ) | (5,272 | ) | (8,930 | ) | (6,355 | ) | (4,975 | ) | (3,599 | ) | |||||||||||
Change in capital accrual | (114 | ) | (592 | ) | 542 | (282 | ) | 55 | 122 | ||||||||||||||
Payments for purchases of assets and businesses | (2,044 | ) | (109 | ) | (1,687 | ) | |||||||||||||||||
Sales of equity investments and assets, net | 302 | 819 | 4,177 | ||||||||||||||||||||
Other, net | (169 | ) | (269 | ) | (346 | ) | |||||||||||||||||
Purchase of businesses and assets, net | (28,088 | ) | (928 | ) | (1,064 | ) | |||||||||||||||||
Proceeds from sale of assets and equity investments, net | 6,143 | 2,824 | 1,403 | ||||||||||||||||||||
Equity investments and other, net | (291 | ) | (182 | ) | 59 | ||||||||||||||||||
Investing cash flow from continuing operations | (4,742 | ) | (5,423 | ) | (6,244 | ) | (28,873 | ) | (3,206 | ) | (3,079 | ) | |||||||||||
Investing cash flow from discontinued operations | — | — | (2,226 | ) | (154 | ) | — | — | |||||||||||||||
Net cash used by investing activities | (4,742 | ) | (5,423 | ) | (8,470 | ) | (29,027 | ) | (3,206 | ) | (3,079 | ) | |||||||||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||||||||||||||
Change in restricted cash | 1,193 | 2,826 | (4,019 | ) | |||||||||||||||||||
Special cash distributions from California Resources | — | — | 6,100 | ||||||||||||||||||||
Proceeds from long-term debt | 4,203 | 1,478 | — | ||||||||||||||||||||
Payments of long-term debt | (2,710 | ) | — | (107 | ) | ||||||||||||||||||
Proceeds from issuance of common stock | 36 | 37 | 33 | ||||||||||||||||||||
Proceeds from long-term debt, net - Occidental | 21,557 | 978 | — | ||||||||||||||||||||
Payments of long-term debt, net - Occidental | (6,959 | ) | (500 | ) | — | ||||||||||||||||||
Proceeds from long-term debt, net - WES | 1,459 | — | — | ||||||||||||||||||||
Payments of long-term debt, net - WES | (1,000 | ) | — | — | |||||||||||||||||||
Proceeds from issuance of common and preferred stock | 10,028 | 33 | 28 | ||||||||||||||||||||
Purchases of treasury stock | (22 | ) | (593 | ) | (2,500 | ) | (237 | ) | (1,248 | ) | (25 | ) | |||||||||||
Contributions from noncontrolling interest | — | — | 375 | ||||||||||||||||||||
Cash dividends paid | (2,309 | ) | (2,264 | ) | (2,210 | ) | (2,624 | ) | (2,374 | ) | (2,346 | ) | |||||||||||
Other, net | — | — | 2 | ||||||||||||||||||||
Distributions to noncontrolling interest | (257 | ) | — | — | |||||||||||||||||||
Other financing, net | 229 | 9 | — | ||||||||||||||||||||
Financing cash flow from continuing operations | 391 | 1,484 | (2,326 | ) | 22,196 | (3,102 | ) | (2,343 | ) | ||||||||||||||
Financing cash flow from discontinued operations | — | — | 124 | (3 | ) | — | — | ||||||||||||||||
Net cash provided (used) by financing activities | 391 | 1,484 | (2,202 | ) | 22,193 | (3,102 | ) | (2,343 | ) | ||||||||||||||
Increase (decrease) in cash and cash equivalents | (968 | ) | (588 | ) | 396 | ||||||||||||||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 541 | 1,361 | (561 | ) | |||||||||||||||||||
Cash and cash equivalents — beginning of year | 3,201 | 3,789 | 3,393 | 3,033 | 1,672 | 2,233 | |||||||||||||||||
Cash and cash equivalents — end of year | $ | 2,233 | $ | 3,201 | $ | 3,789 | |||||||||||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of year | $ | 3,574 | $ | 3,033 | $ | 1,672 |
OXY 2019 FORM 10-K | 63 |
FINANCIAL STATEMENTS FOOTNOTES |
Notes to Consolidated Financial Statements | Occidental Petroleum Corporation and Subsidiaries |
NOTE 1 | - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
48 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SIGNIFICANT ACCOUNTING AND DISCLOSURE CHANGES |
OXY 2019 FORM 10-K | 49 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SAFE HARBOR DISCUSSION REGARDING OUTLOOK AND OTHER FORWARD-LOOKING DATA |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
COMMODITY PRICE RISK |
Maturity Periods | ||||||||||||||||||||
Source of Fair Value Assets/(Liabilities) millions | 2020 | 2021 and 2022 | 2023 and 2024 | 2025 and thereafter | Total | |||||||||||||||
Prices actively quoted | $ | (63 | ) | $ | — | $ | — | $ | — | $ | (63 | ) | ||||||||
Prices provided by other external sources | 36 | 8 | 1 | 1 | 46 | |||||||||||||||
Total | $ | (27 | ) | $ | 8 | $ | 1 | $ | 1 | $ | (17 | ) |
50 | OXY 2019 FORM 10-K |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
INTEREST RATE RISK |
millions except percentages | U.S. Dollar Fixed-Rate Debt | U.S. Dollar Variable-Rate Debt | Total (a) | |||||||||
2020 | $ | — | $ | — | $ | — | ||||||
2021 | 3,426 | 2,956 | 6,382 | |||||||||
2022 | 3,214 | 1,500 | 4,714 | |||||||||
2023 | 1,213 | — | 1,213 | |||||||||
2024 | 3,898 | — | 3,898 | |||||||||
Thereafter | 21,126 | 68 | 21,194 | |||||||||
Total | $ | 32,877 | $ | 4,524 | $ | 37,401 | ||||||
Weighted-average interest rate | 4.09 | % | 3.15 | % | 3.98 | % | ||||||
Fair Value | $ | 34,260 | $ | 4,535 | $ | 38,795 |
(a) | Excluded net unamortized debt premiums of $914 million and debt issuance cost of $125 million. |
FOREIGN CURRENCY RISK |
OXY 2019 FORM 10-K | 51 |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
CREDIT RISK |
DERIVATIVE INSTRUMENTS HELD FOR NON-TRADING PURPOSES |
millions except percentages | ||||||||||
Percent change in commodity prices | Resulting net fair value position-asset (liability) | Change to fair value from December 31, 2019 position | ||||||||
+ 5% | $ | (270 | ) | $ | (202 | ) | ||||
- 5% | $ | 100 | $ | 168 | ||||||
+ 10% | $ | (525 | ) | $ | (457 | ) | ||||
-10% | $ | 254 | $ | 322 |
52 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS INDEX |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | PAGE |
Note 3 - The Acquisition | |
OXY 2019 FORM 10-K | 53 |
FINANCIAL STATEMENTS REPORT |
54 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
in millions | 2016 | 2015 | 2014 | |||||||||
Balance — Beginning of Year | $ | 76 | $ | 141 | $ | 140 | ||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 29 | 88 | 462 | |||||||||
Reclassifications to property, plant and equipment based on the determination of proved reserves | (28 | ) | (78 | ) | (423 | ) | ||||||
Spin-off of California Resources | — | — | (17 | ) | ||||||||
Capitalized exploratory well costs charged to expense | (21 | ) | (75 | ) | (21 | ) | ||||||
Balance — End of Year | $ | 56 | $ | 76 | $ | 141 |
OXY 2019 FORM 10-K | 55 |
FINANCIAL STATEMENTS REPORT |
56 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
OXY 2019 FORM 10-K | 57 |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
For the years ended December 31, (in millions) | 2016 | 2015 | 2014 | |||||||||
OIL AND GAS | ||||||||||||
United States | ||||||||||||
Impairments and related charges of exiting operations | $ | (44 | ) | $ | 1,862 | (a) | $ | 3,253 | ||||
Impairments related to decline in commodity prices and changes in future development plans | 15 | 1,428 | 1,381 | |||||||||
Rig termination charges | — | 192 | — | |||||||||
Other asset impairment related charges | 5 | 204 | 119 | |||||||||
Latin America | ||||||||||||
Impairments related to decline in commodity prices | 9 | 559 | 57 | |||||||||
Middle East and North Africa | ||||||||||||
Impairments of exiting operations | 61 | 1,658 | 918 | |||||||||
Impairments related to decline in commodity prices | — | 2,833 | 91 | |||||||||
CHEMICAL | ||||||||||||
Impairments of assets | — | 121 | 149 | |||||||||
MIDSTREAM AND MARKETING | ||||||||||||
Century gas processing plant | — | 814 | — | |||||||||
Other asset impairment related charges | 160 | 216 | 40 | |||||||||
CORPORATE | ||||||||||||
Other-than-temporary impairment of investment in California Resources | 78 | 227 | 553 | |||||||||
Joslyn impairment | — | — | 805 | |||||||||
Severance, spin-off and allowance for doubtful accounts | 541 | 125 | 13 | |||||||||
$ | 825 | $ | 10,239 | $ | 7,379 |
December 31, | ||||||||
millions | 2019 | 2018 | ||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 3,032 | $ | 3,033 | ||||
Restricted cash and restricted cash equivalents | 480 | — | ||||||
Trade receivables, net of reserves of $19 in 2019 and $21 in 2018 | 6,373 | 4,893 | ||||||
Inventories | 1,447 | 1,260 | ||||||
Assets held for sale | 6,026 | — | ||||||
Other current assets | 1,323 | 746 | ||||||
Total current assets | 18,681 | 9,932 | ||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6,389 | 1,680 | ||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Oil and gas segment | 105,881 | 58,799 | ||||||
Chemical segment | 7,172 | 7,001 | ||||||
Marketing and midstream segment | 8,176 | 8,070 | ||||||
Corporate | 1,118 | 550 | ||||||
122,347 | 74,420 | |||||||
Accumulated depreciation, depletion and amortization | (41,878 | ) | (42,983 | ) | ||||
80,469 | 31,437 | |||||||
OPERATING LEASE ASSETS | 1,385 | — | ||||||
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 2,406 | 805 | ||||||
TOTAL ASSETS | $ | 109,330 | $ | 43,854 |
58 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
December 31, | ||||||||
millions except share and per-share amounts | 2019 | 2018 | ||||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Current maturities of long-term debt | $ | 51 | $ | 116 | ||||
Current operating lease liabilities | 569 | — | ||||||
Accounts payable | 7,017 | 4,885 | ||||||
Accrued liabilities | 5,302 | 2,411 | ||||||
Liabilities of assets held for sale | 2,010 | — | ||||||
Total current liabilities | 14,949 | 7,412 | ||||||
LONG-TERM DEBT, NET | ||||||||
Long-term debt, net | 38,537 | 10,201 | ||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||
Deferred income taxes, net | 9,717 | 907 | ||||||
Asset retirement obligations | 4,385 | 1,424 | ||||||
Pension and postretirement obligations | 1,807 | 809 | ||||||
Environmental remediation liabilities | 1,035 | 762 | ||||||
Operating lease liabilities | 854 | — | ||||||
Other | 3,814 | 1,009 | ||||||
21,612 | 4,911 | |||||||
EQUITY | ||||||||
Preferred stock, at $1.00 per share par value (100,000 shares at December 31, 2019) | 9,762 | — | ||||||
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, issued shares: 2019 — 1,044,434,893 and 2018 — 895,115,637 | 209 | 179 | ||||||
Treasury stock: 2019 — 150,323,151 shares and 2018 — 145,726,051 shares | (10,653 | ) | (10,473 | ) | ||||
Additional paid-in capital | 14,955 | 8,046 | ||||||
Retained earnings | 20,180 | 23,750 | ||||||
Accumulated other comprehensive loss | (221 | ) | (172 | ) | ||||
Total stockholders’ equity | 34,232 | 21,330 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 109,330 | $ | 43,854 |
OXY 2019 FORM 10-K | 59 |
FINANCIAL STATEMENTS |
Consolidated Statements of Operations | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | ||||||||||||
millions except per-share amounts | 2019 | 2018 | 2017 | |||||||||
REVENUES AND OTHER INCOME | ||||||||||||
Net sales | $ | 20,393 | $ | 17,824 | $ | 12,508 | ||||||
Interest, dividends and other income | 217 | 136 | 99 | |||||||||
Gains on sale of equity investments and other assets, net | 622 | 974 | 667 | |||||||||
Total | 21,232 | 18,934 | 13,274 | |||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||
Oil and gas operating expense | 3,246 | 2,761 | 2,427 | |||||||||
Transportation expense | 621 | 152 | 175 | |||||||||
Chemical and midstream cost of sales | 2,791 | 2,833 | 2,938 | |||||||||
Purchased commodities | 1,679 | 822 | 54 | |||||||||
Selling, general and administrative | 882 | 585 | 546 | |||||||||
Other operating and non-operating expense | 1,425 | 1,028 | 878 | |||||||||
Depreciation, depletion and amortization | 5,981 | 3,977 | 4,002 | |||||||||
Asset impairments and other charges | 1,361 | 561 | 545 | |||||||||
Taxes other than on income | 707 | 439 | 311 | |||||||||
Anadarko acquisition-related costs | 1,647 | — | — | |||||||||
Exploration expense | 246 | 110 | 82 | |||||||||
Interest and debt expense, net | 1,066 | 389 | 345 | |||||||||
Total | 21,652 | 13,657 | 12,303 | |||||||||
Income (loss) before income taxes and other items | (420 | ) | 5,277 | 971 | ||||||||
OTHER ITEMS | ||||||||||||
Gains on interest rate swaps and warrants, net | 233 | — | — | |||||||||
Income from equity investments | 373 | 331 | 357 | |||||||||
Total | 606 | 331 | 357 | |||||||||
Income from continuing operations before income taxes | 186 | 5,608 | 1,328 | |||||||||
Income tax expense | (693 | ) | (1,477 | ) | (17 | ) | ||||||
Income (loss) from continuing operations | (507 | ) | 4,131 | 1,311 | ||||||||
Loss from discontinued operations, net of tax | (15 | ) | — | — | ||||||||
NET INCOME (LOSS) | (522 | ) | 4,131 | 1,311 | ||||||||
Less: Net income attributable to noncontrolling interest | (145 | ) | — | — | ||||||||
Less: Preferred stock dividends | (318 | ) | — | — | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (985 | ) | $ | 4,131 | $ | 1,311 | |||||
PER COMMON SHARE | ||||||||||||
Income (loss) from continuing operations—basic | $ | (1.20 | ) | $ | 5.40 | $ | 1.71 | |||||
(Loss) from discontinued operations—basic | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—basic | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | |||||
Income (loss) from continuing operations—diluted | $ | (1.20 | ) | $ | 5.39 | $ | 1.70 | |||||
(Loss) from discontinued operations—diluted | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—diluted | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 | |||||
DIVIDENDS PER COMMON SHARE | $ | 3.14 | $ | 3.10 | $ | 3.06 |
60 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Comprehensive Income | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | ||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | |||||
Other comprehensive income (loss) items: | ||||||||||||
Foreign currency translation gains | — | — | 3 | |||||||||
Unrealized gains (losses) on derivatives (a) | (129 | ) | (6 | ) | 13 | |||||||
Pension and postretirement gains (losses) (b) | 78 | 137 | (7 | ) | ||||||||
Reclassification of realized losses (gains) on derivatives (c) | 2 | 13 | (1 | ) | ||||||||
Other comprehensive income (loss), net of tax | (49 | ) | 144 | 8 | ||||||||
Comprehensive income (loss) | (571 | ) | 4,275 | 1,319 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | (145 | ) | — | — | ||||||||
Comprehensive income (loss) attributable to preferred and common stockholders | $ | (716 | ) | $ | 4,275 | $ | 1,319 |
(a) |
(b) | Net of tax of $(25), $(38) and |
(c) |
OXY 2019 FORM 10-K | 61 |
FINANCIAL STATEMENTS |
Consolidated Statements of Stockholders’ Equity | Occidental Petroleum Corporation and Subsidiaries |
Equity Attributable to Common Stock | ||||||||||||||||||||||||||||||||
millions, except per share amounts | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2016 | $ | — | $ | 178 | $ | (9,143 | ) | $ | 7,747 | $ | 22,981 | $ | (266 | ) | $ | — | $ | 21,497 | ||||||||||||||
Net income | — | — | — | — | 1,311 | — | — | 1,311 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||
Dividends on common stock, $3.06 per share | — | — | — | — | (2,357 | ) | — | — | (2,357 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | 1 | — | 137 | — | — | — | 138 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (25 | ) | — | — | — | — | (25 | ) | ||||||||||||||||||||||
Balance, December 31, 2017 | $ | — | $ | 179 | $ | (9,168 | ) | $ | 7,884 | $ | 21,935 | $ | (258 | ) | $ | — | $ | 20,572 | ||||||||||||||
Net income | — | — | — | — | 4,131 | — | — | 4,131 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 144 | — | 144 | ||||||||||||||||||||||||
Dividends on common stock, $3.10 per share | — | — | — | — | (2,374 | ) | — | — | (2,374 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | — | — | 162 | — | — | — | 162 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (1,305 | ) | — | — | — | — | (1,305 | ) | ||||||||||||||||||||||
Reclassification of stranded tax effects (See Note 2) | — | — | — | — | 58 | (58 | ) | — | — | |||||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | 179 | $ | (10,473 | ) | $ | 8,046 | $ | 23,750 | $ | (172 | ) | $ | — | $ | 21,330 | ||||||||||||||
Net income (loss) | — | — | — | — | (667 | ) | — | 145 | (522 | ) | ||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (49 | ) | — | (49 | ) | ||||||||||||||||||||||
Dividends on common stock, $3.14 per share | — | — | — | — | (2,585 | ) | — | — | (2,585 | ) | ||||||||||||||||||||||
Dividends on preferred stock, $3,489 per share | — | — | — | — | (318 | ) | — | — | (318 | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | 30 | — | 6,909 | — | — | — | 6,939 | ||||||||||||||||||||||||
Issuance of preferred stock | 9,762 | — | — | — | — | — | — | 9,762 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (180 | ) | — | — | — | — | (180 | ) | ||||||||||||||||||||||
Fair value of noncontrolling interest acquired | — | — | — | — | — | — | 4,895 | 4,895 | ||||||||||||||||||||||||
Noncontrolling interest distributions, net | — | — | — | — | — | — | (131 | ) | (131 | ) | ||||||||||||||||||||||
Change in control WES | — | — | — | — | — | — | (4,909 | ) | (4,909 | ) | ||||||||||||||||||||||
Balance, December 31, 2019 | $ | 9,762 | $ | 209 | $ | (10,653 | ) | $ | 14,955 | $ | 20,180 | $ | (221 | ) | $ | — | $ | 34,232 |
62 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Cash Flows | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | |||||||||||
millions | 2019 | 2018 | 2017 | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | ||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||
Discontinued operations, net | 15 | — | — | ||||||||
Depreciation, depletion and amortization of assets | 5,981 | 3,977 | 4,002 | ||||||||
Deferred income tax (benefit) provision | (1,027 | ) | 371 | (719 | ) | ||||||
Other noncash charges to income | 940 | 34 | 219 | ||||||||
Asset impairments and other charges | 1,328 | 561 | 545 | ||||||||
Gain on sales of equity investments and other assets, net | (622 | ) | (974 | ) | (667 | ) | |||||
Undistributed earnings from affiliates | (50 | ) | (43 | ) | (68 | ) | |||||
Dry hole expense | 89 | 56 | 51 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in receivables | (44 | ) | (740 | ) | (158 | ) | |||||
Decrease (increase) in inventories | 77 | (108 | ) | (349 | ) | ||||||
Decrease in other current assets | 186 | 94 | 39 | ||||||||
(Decrease) increase in accounts payable and accrued liabilities | 793 | 195 | (89 | ) | |||||||
Increase in current domestic and foreign income taxes | 59 | 38 | 64 | ||||||||
Other operating, net | — | 77 | 680 | ||||||||
Operating cash flow from continuing operations | 7,203 | 7,669 | 4,861 | ||||||||
Operating cash flow from discontinued operations, net of taxes | 172 | — | — | ||||||||
Net cash provided by operating activities | 7,375 | 7,669 | 4,861 | ||||||||
CASH FLOW FROM INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (6,355 | ) | (4,975 | ) | (3,599 | ) | |||||
Change in capital accrual | (282 | ) | 55 | 122 | |||||||
Purchase of businesses and assets, net | (28,088 | ) | (928 | ) | (1,064 | ) | |||||
Proceeds from sale of assets and equity investments, net | 6,143 | 2,824 | 1,403 | ||||||||
Equity investments and other, net | (291 | ) | (182 | ) | 59 | ||||||
Investing cash flow from continuing operations | (28,873 | ) | (3,206 | ) | (3,079 | ) | |||||
Investing cash flow from discontinued operations | (154 | ) | — | — | |||||||
Net cash used by investing activities | (29,027 | ) | (3,206 | ) | (3,079 | ) | |||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from long-term debt, net - Occidental | 21,557 | 978 | — | ||||||||
Payments of long-term debt, net - Occidental | (6,959 | ) | (500 | ) | — | ||||||
Proceeds from long-term debt, net - WES | 1,459 | — | — | ||||||||
Payments of long-term debt, net - WES | (1,000 | ) | — | — | |||||||
Proceeds from issuance of common and preferred stock | 10,028 | 33 | 28 | ||||||||
Purchases of treasury stock | (237 | ) | (1,248 | ) | (25 | ) | |||||
Cash dividends paid | (2,624 | ) | (2,374 | ) | (2,346 | ) | |||||
Distributions to noncontrolling interest | (257 | ) | — | — | |||||||
Other financing, net | 229 | 9 | — | ||||||||
Financing cash flow from continuing operations | 22,196 | (3,102 | ) | (2,343 | ) | ||||||
Financing cash flow from discontinued operations | (3 | ) | — | — | |||||||
Net cash provided (used) by financing activities | 22,193 | (3,102 | ) | (2,343 | ) | ||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 541 | 1,361 | (561 | ) | |||||||
Cash and cash equivalents — beginning of year | 3,033 | 1,672 | 2,233 | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of year | $ | 3,574 | $ | 3,033 | $ | 1,672 |
OXY 2019 FORM 10-K | 63 |
FINANCIAL STATEMENTS FOOTNOTES |
Notes to Consolidated Financial Statements | Occidental Petroleum Corporation and Subsidiaries |
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
48 | OXY 2019 FORM 10-K |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SIGNIFICANT ACCOUNTING AND DISCLOSURE CHANGES |
OXY 2019 FORM 10-K | 49 |
MANAGEMENT’S DISCUSSION AND ANALYSIS |
SAFE HARBOR DISCUSSION REGARDING OUTLOOK AND OTHER FORWARD-LOOKING DATA |
ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
COMMODITY PRICE RISK |
Maturity Periods | ||||||||||||||||||||
Source of Fair Value Assets/(Liabilities) millions | 2020 | 2021 and 2022 | 2023 and 2024 | 2025 and thereafter | Total | |||||||||||||||
Prices actively quoted | $ | (63 | ) | $ | — | $ | — | $ | — | $ | (63 | ) | ||||||||
Prices provided by other external sources | 36 | 8 | 1 | 1 | 46 | |||||||||||||||
Total | $ | (27 | ) | $ | 8 | $ | 1 | $ | 1 | $ | (17 | ) |
50 | OXY 2019 FORM 10-K |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
INTEREST RATE RISK |
millions except percentages | U.S. Dollar Fixed-Rate Debt | U.S. Dollar Variable-Rate Debt | Total (a) | |||||||||
2020 | $ | — | $ | — | $ | — | ||||||
2021 | 3,426 | 2,956 | 6,382 | |||||||||
2022 | 3,214 | 1,500 | 4,714 | |||||||||
2023 | 1,213 | — | 1,213 | |||||||||
2024 | 3,898 | — | 3,898 | |||||||||
Thereafter | 21,126 | 68 | 21,194 | |||||||||
Total | $ | 32,877 | $ | 4,524 | $ | 37,401 | ||||||
Weighted-average interest rate | 4.09 | % | 3.15 | % | 3.98 | % | ||||||
Fair Value | $ | 34,260 | $ | 4,535 | $ | 38,795 |
(a) | Excluded net unamortized debt premiums of $914 million and debt issuance cost of $125 million. |
FOREIGN CURRENCY RISK |
OXY 2019 FORM 10-K | 51 |
QUANTITATIVE AND QUALITATIVE DISCLOSURES |
CREDIT RISK |
DERIVATIVE INSTRUMENTS HELD FOR NON-TRADING PURPOSES |
millions except percentages | ||||||||||
Percent change in commodity prices | Resulting net fair value position-asset (liability) | Change to fair value from December 31, 2019 position | ||||||||
+ 5% | $ | (270 | ) | $ | (202 | ) | ||||
- 5% | $ | 100 | $ | 168 | ||||||
+ 10% | $ | (525 | ) | $ | (457 | ) | ||||
-10% | $ | 254 | $ | 322 |
52 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS INDEX |
ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
INDEX TO CONSOLIDATED FINANCIAL STATEMENTS | PAGE |
Note 3 - The Acquisition | |
OXY 2019 FORM 10-K | 53 |
FINANCIAL STATEMENTS REPORT |
54 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
OXY 2019 FORM 10-K | 55 |
FINANCIAL STATEMENTS REPORT |
56 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS REPORT |
OXY 2019 FORM 10-K | 57 |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
December 31, | ||||||||
millions | 2019 | 2018 | ||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 3,032 | $ | 3,033 | ||||
Restricted cash and restricted cash equivalents | 480 | — | ||||||
Trade receivables, net of reserves of $19 in 2019 and $21 in 2018 | 6,373 | 4,893 | ||||||
Inventories | 1,447 | 1,260 | ||||||
Assets held for sale | 6,026 | — | ||||||
Other current assets | 1,323 | 746 | ||||||
Total current assets | 18,681 | 9,932 | ||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6,389 | 1,680 | ||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Oil and gas segment | 105,881 | 58,799 | ||||||
Chemical segment | 7,172 | 7,001 | ||||||
Marketing and midstream segment | 8,176 | 8,070 | ||||||
Corporate | 1,118 | 550 | ||||||
122,347 | 74,420 | |||||||
Accumulated depreciation, depletion and amortization | (41,878 | ) | (42,983 | ) | ||||
80,469 | 31,437 | |||||||
OPERATING LEASE ASSETS | 1,385 | — | ||||||
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 2,406 | 805 | ||||||
TOTAL ASSETS | $ | 109,330 | $ | 43,854 |
58 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Balance Sheets | Occidental Petroleum Corporation and Subsidiaries |
December 31, | ||||||||
millions except share and per-share amounts | 2019 | 2018 | ||||||
LIABILITIES AND EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Current maturities of long-term debt | $ | 51 | $ | 116 | ||||
Current operating lease liabilities | 569 | — | ||||||
Accounts payable | 7,017 | 4,885 | ||||||
Accrued liabilities | 5,302 | 2,411 | ||||||
Liabilities of assets held for sale | 2,010 | — | ||||||
Total current liabilities | 14,949 | 7,412 | ||||||
LONG-TERM DEBT, NET | ||||||||
Long-term debt, net | 38,537 | 10,201 | ||||||
DEFERRED CREDITS AND OTHER LIABILITIES | ||||||||
Deferred income taxes, net | 9,717 | 907 | ||||||
Asset retirement obligations | 4,385 | 1,424 | ||||||
Pension and postretirement obligations | 1,807 | 809 | ||||||
Environmental remediation liabilities | 1,035 | 762 | ||||||
Operating lease liabilities | 854 | — | ||||||
Other | 3,814 | 1,009 | ||||||
21,612 | 4,911 | |||||||
EQUITY | ||||||||
Preferred stock, at $1.00 per share par value (100,000 shares at December 31, 2019) | 9,762 | — | ||||||
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, issued shares: 2019 — 1,044,434,893 and 2018 — 895,115,637 | 209 | 179 | ||||||
Treasury stock: 2019 — 150,323,151 shares and 2018 — 145,726,051 shares | (10,653 | ) | (10,473 | ) | ||||
Additional paid-in capital | 14,955 | 8,046 | ||||||
Retained earnings | 20,180 | 23,750 | ||||||
Accumulated other comprehensive loss | (221 | ) | (172 | ) | ||||
Total stockholders’ equity | 34,232 | 21,330 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 109,330 | $ | 43,854 |
OXY 2019 FORM 10-K | 59 |
FINANCIAL STATEMENTS |
Consolidated Statements of Operations | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | ||||||||||||
millions except per-share amounts | 2019 | 2018 | 2017 | |||||||||
REVENUES AND OTHER INCOME | ||||||||||||
Net sales | $ | 20,393 | $ | 17,824 | $ | 12,508 | ||||||
Interest, dividends and other income | 217 | 136 | 99 | |||||||||
Gains on sale of equity investments and other assets, net | 622 | 974 | 667 | |||||||||
Total | 21,232 | 18,934 | 13,274 | |||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||
Oil and gas operating expense | 3,246 | 2,761 | 2,427 | |||||||||
Transportation expense | 621 | 152 | 175 | |||||||||
Chemical and midstream cost of sales | 2,791 | 2,833 | 2,938 | |||||||||
Purchased commodities | 1,679 | 822 | 54 | |||||||||
Selling, general and administrative | 882 | 585 | 546 | |||||||||
Other operating and non-operating expense | 1,425 | 1,028 | 878 | |||||||||
Depreciation, depletion and amortization | 5,981 | 3,977 | 4,002 | |||||||||
Asset impairments and other charges | 1,361 | 561 | 545 | |||||||||
Taxes other than on income | 707 | 439 | 311 | |||||||||
Anadarko acquisition-related costs | 1,647 | — | — | |||||||||
Exploration expense | 246 | 110 | 82 | |||||||||
Interest and debt expense, net | 1,066 | 389 | 345 | |||||||||
Total | 21,652 | 13,657 | 12,303 | |||||||||
Income (loss) before income taxes and other items | (420 | ) | 5,277 | 971 | ||||||||
OTHER ITEMS | ||||||||||||
Gains on interest rate swaps and warrants, net | 233 | — | — | |||||||||
Income from equity investments | 373 | 331 | 357 | |||||||||
Total | 606 | 331 | 357 | |||||||||
Income from continuing operations before income taxes | 186 | 5,608 | 1,328 | |||||||||
Income tax expense | (693 | ) | (1,477 | ) | (17 | ) | ||||||
Income (loss) from continuing operations | (507 | ) | 4,131 | 1,311 | ||||||||
Loss from discontinued operations, net of tax | (15 | ) | — | — | ||||||||
NET INCOME (LOSS) | (522 | ) | 4,131 | 1,311 | ||||||||
Less: Net income attributable to noncontrolling interest | (145 | ) | — | — | ||||||||
Less: Preferred stock dividends | (318 | ) | — | — | ||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ | (985 | ) | $ | 4,131 | $ | 1,311 | |||||
PER COMMON SHARE | ||||||||||||
Income (loss) from continuing operations—basic | $ | (1.20 | ) | $ | 5.40 | $ | 1.71 | |||||
(Loss) from discontinued operations—basic | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—basic | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | |||||
Income (loss) from continuing operations—diluted | $ | (1.20 | ) | $ | 5.39 | $ | 1.70 | |||||
(Loss) from discontinued operations—diluted | (0.02 | ) | — | — | ||||||||
Net income (loss) attributable to common stockholders—diluted | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 | |||||
DIVIDENDS PER COMMON SHARE | $ | 3.14 | $ | 3.10 | $ | 3.06 |
60 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Comprehensive Income | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | ||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | |||||
Other comprehensive income (loss) items: | ||||||||||||
Foreign currency translation gains | — | — | 3 | |||||||||
Unrealized gains (losses) on derivatives (a) | (129 | ) | (6 | ) | 13 | |||||||
Pension and postretirement gains (losses) (b) | 78 | 137 | (7 | ) | ||||||||
Reclassification of realized losses (gains) on derivatives (c) | 2 | 13 | (1 | ) | ||||||||
Other comprehensive income (loss), net of tax | (49 | ) | 144 | 8 | ||||||||
Comprehensive income (loss) | (571 | ) | 4,275 | 1,319 | ||||||||
Less: Comprehensive income attributable to noncontrolling interests | (145 | ) | — | — | ||||||||
Comprehensive income (loss) attributable to preferred and common stockholders | $ | (716 | ) | $ | 4,275 | $ | 1,319 |
(a) | Net of tax of $36, $2 and $(7) in 2019, 2018 and 2017, respectively. |
(b) | Net of tax of $(25), $(38) and $4 in 2019, 2018 and 2017, respectively. See Note 15 - Retirement and Postretirement Benefit Plans in the Notes to Consolidated Financial Statements for additional information. |
(c) | Net of tax of $0, $(4) and $0 in 2019, 2018 and 2017, respectively. |
OXY 2019 FORM 10-K | 61 |
FINANCIAL STATEMENTS |
Consolidated Statements of Stockholders’ Equity | Occidental Petroleum Corporation and Subsidiaries |
Equity Attributable to Common Stock | ||||||||||||||||||||||||||||||||
millions, except per share amounts | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance, December 31, 2016 | $ | — | $ | 178 | $ | (9,143 | ) | $ | 7,747 | $ | 22,981 | $ | (266 | ) | $ | — | $ | 21,497 | ||||||||||||||
Net income | — | — | — | — | 1,311 | — | — | 1,311 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 8 | — | 8 | ||||||||||||||||||||||||
Dividends on common stock, $3.06 per share | — | — | — | — | (2,357 | ) | — | — | (2,357 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | 1 | — | 137 | — | — | — | 138 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (25 | ) | — | — | — | — | (25 | ) | ||||||||||||||||||||||
Balance, December 31, 2017 | $ | — | $ | 179 | $ | (9,168 | ) | $ | 7,884 | $ | 21,935 | $ | (258 | ) | $ | — | $ | 20,572 | ||||||||||||||
Net income | — | — | — | — | 4,131 | — | — | 4,131 | ||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | 144 | — | 144 | ||||||||||||||||||||||||
Dividends on common stock, $3.10 per share | — | — | — | — | (2,374 | ) | — | — | (2,374 | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | — | — | 162 | — | — | — | 162 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (1,305 | ) | — | — | — | — | (1,305 | ) | ||||||||||||||||||||||
Reclassification of stranded tax effects (See Note 2) | — | — | — | — | 58 | (58 | ) | — | — | |||||||||||||||||||||||
Balance, December 31, 2018 | $ | — | $ | 179 | $ | (10,473 | ) | $ | 8,046 | $ | 23,750 | $ | (172 | ) | $ | — | $ | 21,330 | ||||||||||||||
Net income (loss) | — | — | — | — | (667 | ) | — | 145 | (522 | ) | ||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | (49 | ) | — | (49 | ) | ||||||||||||||||||||||
Dividends on common stock, $3.14 per share | — | — | — | — | (2,585 | ) | — | — | (2,585 | ) | ||||||||||||||||||||||
Dividends on preferred stock, $3,489 per share | — | — | — | — | (318 | ) | — | — | (318 | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | 30 | — | 6,909 | — | — | — | 6,939 | ||||||||||||||||||||||||
Issuance of preferred stock | 9,762 | — | — | — | — | — | — | 9,762 | ||||||||||||||||||||||||
Purchases of treasury stock | — | — | (180 | ) | — | — | — | — | (180 | ) | ||||||||||||||||||||||
Fair value of noncontrolling interest acquired | — | — | — | — | — | — | 4,895 | 4,895 | ||||||||||||||||||||||||
Noncontrolling interest distributions, net | — | — | — | — | — | — | (131 | ) | (131 | ) | ||||||||||||||||||||||
Change in control WES | — | — | — | — | — | — | (4,909 | ) | (4,909 | ) | ||||||||||||||||||||||
Balance, December 31, 2019 | $ | 9,762 | $ | 209 | $ | (10,653 | ) | $ | 14,955 | $ | 20,180 | $ | (221 | ) | $ | — | $ | 34,232 |
62 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS |
Consolidated Statements of Cash Flows | Occidental Petroleum Corporation and Subsidiaries |
Years Ended December 31, | |||||||||||
millions | 2019 | 2018 | 2017 | ||||||||
CASH FLOW FROM OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | ||||
Adjustments to reconcile net income (loss) to net cash from operating activities: | |||||||||||
Discontinued operations, net | 15 | — | — | ||||||||
Depreciation, depletion and amortization of assets | 5,981 | 3,977 | 4,002 | ||||||||
Deferred income tax (benefit) provision | (1,027 | ) | 371 | (719 | ) | ||||||
Other noncash charges to income | 940 | 34 | 219 | ||||||||
Asset impairments and other charges | 1,328 | 561 | 545 | ||||||||
Gain on sales of equity investments and other assets, net | (622 | ) | (974 | ) | (667 | ) | |||||
Undistributed earnings from affiliates | (50 | ) | (43 | ) | (68 | ) | |||||
Dry hole expense | 89 | 56 | 51 | ||||||||
Changes in operating assets and liabilities: | |||||||||||
Increase in receivables | (44 | ) | (740 | ) | (158 | ) | |||||
Decrease (increase) in inventories | 77 | (108 | ) | (349 | ) | ||||||
Decrease in other current assets | 186 | 94 | 39 | ||||||||
(Decrease) increase in accounts payable and accrued liabilities | 793 | 195 | (89 | ) | |||||||
Increase in current domestic and foreign income taxes | 59 | 38 | 64 | ||||||||
Other operating, net | — | 77 | 680 | ||||||||
Operating cash flow from continuing operations | 7,203 | 7,669 | 4,861 | ||||||||
Operating cash flow from discontinued operations, net of taxes | 172 | — | — | ||||||||
Net cash provided by operating activities | 7,375 | 7,669 | 4,861 | ||||||||
CASH FLOW FROM INVESTING ACTIVITIES | |||||||||||
Capital expenditures | (6,355 | ) | (4,975 | ) | (3,599 | ) | |||||
Change in capital accrual | (282 | ) | 55 | 122 | |||||||
Purchase of businesses and assets, net | (28,088 | ) | (928 | ) | (1,064 | ) | |||||
Proceeds from sale of assets and equity investments, net | 6,143 | 2,824 | 1,403 | ||||||||
Equity investments and other, net | (291 | ) | (182 | ) | 59 | ||||||
Investing cash flow from continuing operations | (28,873 | ) | (3,206 | ) | (3,079 | ) | |||||
Investing cash flow from discontinued operations | (154 | ) | — | — | |||||||
Net cash used by investing activities | (29,027 | ) | (3,206 | ) | (3,079 | ) | |||||
CASH FLOW FROM FINANCING ACTIVITIES | |||||||||||
Proceeds from long-term debt, net - Occidental | 21,557 | 978 | — | ||||||||
Payments of long-term debt, net - Occidental | (6,959 | ) | (500 | ) | — | ||||||
Proceeds from long-term debt, net - WES | 1,459 | — | — | ||||||||
Payments of long-term debt, net - WES | (1,000 | ) | — | — | |||||||
Proceeds from issuance of common and preferred stock | 10,028 | 33 | 28 | ||||||||
Purchases of treasury stock | (237 | ) | (1,248 | ) | (25 | ) | |||||
Cash dividends paid | (2,624 | ) | (2,374 | ) | (2,346 | ) | |||||
Distributions to noncontrolling interest | (257 | ) | — | — | |||||||
Other financing, net | 229 | 9 | — | ||||||||
Financing cash flow from continuing operations | 22,196 | (3,102 | ) | (2,343 | ) | ||||||
Financing cash flow from discontinued operations | (3 | ) | — | — | |||||||
Net cash provided (used) by financing activities | 22,193 | (3,102 | ) | (2,343 | ) | ||||||
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 541 | 1,361 | (561 | ) | |||||||
Cash and cash equivalents — beginning of year | 3,033 | 1,672 | 2,233 | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of year | $ | 3,574 | $ | 3,033 | $ | 1,672 |
OXY 2019 FORM 10-K | 63 |
FINANCIAL STATEMENTS FOOTNOTES |
Notes to Consolidated Financial Statements | Occidental Petroleum Corporation and Subsidiaries |
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
64 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
OXY 2019 FORM 10-K | 65 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | December 31, 2019 | |||
Cash and cash equivalents | $ | 3,032 | ||
Restricted cash and restricted cash equivalents | 480 | |||
Cash and restricted cash included in assets held for sale | 8 | |||
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | 54 | |||
Cash, cash equivalents, restricted cash, and restricted cash equivalents | $ | 3,574 |
66 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | 2019 | 2018 | 2017 | |||||||||
Balance — beginning of year | $ | 112 | $ | 108 | $ | 56 | ||||||
Exploratory well costs acquired through the Acquisition | 231 | — | — | |||||||||
Additions to capitalized exploratory well costs pending the determination of proved reserves | 383 | 220 | 201 | |||||||||
Reclassifications to property, plant and equipment based on the determination of proved reserves | (230 | ) | (198 | ) | (128 | ) | ||||||
Capitalized exploratory well costs charged to expense | (72 | ) | (18 | ) | (21 | ) | ||||||
Balance — end of year | $ | 424 | $ | 112 | $ | 108 |
OXY 2019 FORM 10-K | 67 |
FINANCIAL STATEMENTS FOOTNOTES |
68 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
Ø | Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. These derivatives are classified as Level 1. |
Ø | Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, interest rate swaps, warrants, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. |
Ø | Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace or are observable but have been adjusted based upon various assumptions and the fair value is designated as Level 3 within the valuation hierarchy. |
Ø | Occidental values debt using market-observable information for debt instruments that are traded on secondary markets. For debt instruments that are not traded, the fair value is determined by interpolating the value based on debt with similar terms and credit risk. |
OXY 2019 FORM 10-K | 69 |
FINANCIAL STATEMENTS FOOTNOTES |
70 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | 2019 | 2018 | ||||||
Beginning balance | $ | 1,499 | $ | 1,312 | ||||
Liabilities assumed in the Acquisition | 3,344 | — | ||||||
Liabilities incurred – capitalized to PP&E | 131 | 31 | ||||||
Liabilities settled and paid | (200 | ) | (40 | ) | ||||
Accretion expense | 71 | 67 | ||||||
Acquisitions, dispositions and other | — | (18 | ) | |||||
WES loss of control | (359 | ) | — | |||||
Revisions to previous estimates | 147 | 147 | ||||||
Ending balance (a) | $ | 4,633 | $ | 1,499 |
(a) | The ending balance included $248 million and $75 million related to the current balance of AROs that are included in Accrued Liabilities on the Consolidated Balance Sheets at December 31, 2019 and 2018, respectively. |
For the years ended December 31, (in millions) | 2016 | 2015 | ||||||
Beginning balance | $ | 1,124 | $ | 1,091 | ||||
Liabilities incurred – capitalized to PP&E | 46 | 46 | ||||||
Liabilities settled and paid | (38 | ) | (35 | ) | ||||
Accretion expense | 59 | 54 | ||||||
Acquisitions, dispositions and other – changes in PP&E | 11 | (209 | ) | |||||
Revisions to estimated cash flows – changes in PP&E | 167 | 177 | ||||||
Ending balance | $ | 1,369 | $ | 1,124 |
OXY 2019 FORM 10-K | 71 |
FINANCIAL STATEMENTS FOOTNOTES |
72 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 2 - ACCOUNTING AND DISCLOSURE CHANGES |
OXY 2019 FORM 10-K | 73 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE 3 - THE ACQUISITION |
millions except per-share amounts | As of August 8, 2019 | |||
Total shares of Anadarko common stock eligible for Acquisition consideration | 491.6 | |||
Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Acquisition consideration) | $ | 59.00 | ||
Cash portion of Acquisition consideration | $ | 29,002 | ||
Total shares of Anadarko common stock eligible for Acquisition consideration | 491.6 | |||
Exchange ratio (per share of Anadarko common stock) | 0.2934 | |||
Total shares of Occidental common stock issued to Anadarko stockholders | 144 | |||
Average share price of Occidental common stock at August 8, 2019 | $ | 46.31 | ||
Stock portion of Acquisition consideration | $ | 6,679 | ||
Acquisition consideration attributable to Anadarko stock-based awards | $ | 23 | ||
Total Acquisition consideration | $ | 35,704 |
74 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | As of August 8, 2019 | |||
Fair value of assets acquired: | ||||
Current assets | $ | 3,596 | ||
Africa Assets held for sale | 10,616 | |||
Investments in unconsolidated entities | 194 | |||
Property, plant and equipment | 49,074 | |||
Other assets | 836 | |||
Amount attributable to assets acquired | $ | 64,316 | ||
Fair value of liabilities assumed: | ||||
Current liabilities | $ | 3,410 | ||
Liabilities of Africa Assets held for sale | 2,200 | |||
Long-term debt | 13,240 | |||
Deferred income taxes | 8,607 | |||
Asset retirement obligations | 2,724 | |||
Pension and post-retirement obligations | 1,072 | |||
Non-current derivative liabilities | 1,280 | |||
Other long-term liabilities | 2,323 | |||
Amount attributable to liabilities assumed | $ | 34,856 | ||
Net assets | $ | 29,460 | ||
Fair value of WES net assets acquired less noncontrolling interests (a) | $ | 6,244 | ||
Total Acquisition consideration | $ | 35,704 |
(a) | See Note 1 - Summary of Significant Accounting Policies for a discussion of the WES investment. |
OXY 2019 FORM 10-K | 75 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | As of August 8, 2019 | |||
Fair value of WES assets acquired: | ||||
Current assets | $ | 499 | ||
Investments in unconsolidated entities | 2,425 | |||
Property, plant and equipment | 10,160 | |||
Intangible assets - customer relationships | 1,800 | |||
Goodwill | 5,772 | |||
Other assets | 342 | |||
Amount attributable to assets acquired | $ | 20,998 | ||
Fair value of WES liabilities assumed: | ||||
Current liabilities | $ | 815 | ||
Long-term debt | 7,407 | |||
Deferred income taxes | 1,174 | |||
Asset retirement obligations | 321 | |||
Other long-term liabilities | 142 | |||
Amount attributable to liabilities assumed | $ | 9,859 | ||
Net assets | $ | 11,139 | ||
Less: Fair value of noncontrolling interests in WES | $ | 4,895 | ||
Fair value of WES net assets acquired less noncontrolling interests | $ | 6,244 |
76 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
Year ended December 31, | ||||||||
millions except per-share amounts | 2019 | 2018 | ||||||
Revenues | $ | 28,723 | $ | 31,206 | ||||
Net income (loss) attributable to common stockholders (a) | $ | (769 | ) | $ | 2,965 | |||
Net income (loss) attributable to common stockholders per share—basic | $ | (0.95 | ) | $ | 3.26 | |||
Net income (loss) attributable to common stockholders per share—diluted | $ | (0.95 | ) | $ | 3.25 |
(a) | Excluding the pro-forma results of WES, net income (loss) attributable to common stockholders would be $(1.1) billion and $2.8 billion for the years ended December 31, 2019 and 2018, respectively. |
millions | 2019 | |||
Employee severance and related employee cost | $ | 1,033 | ||
Licensing fees for critical seismic data | 401 | |||
Bank, legal, consulting and other | 213 | |||
Total | $ | 1,647 |
OXY 2019 FORM 10-K | 77 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE 4 - ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS |
millions | 2019 | ||
Revenues and other income | |||
Net sales | $ | 739 | |
Costs and other deductions | |||
Oil and gas lease operating expense | $ | 81 | |
Transportation expense | 14 | ||
Taxes other than on income | 133 | ||
Fair value adjustment on assets held for sale | 244 | ||
Other | 53 | ||
Total costs and other deductions | $ | 525 | |
Income before income taxes | $ | 214 | |
Income tax expense | (229 | ) | |
Discontinued operations, net of tax | $ | (15 | ) |
millions | 2019 | ||
Current assets | $ | 289 | |
Property, plant and equipment, net | 5,481 | ||
Long-term receivables and other assets, net | 256 | ||
Assets held for sale (a) | $ | 6,026 | |
Current liabilities | $ | 452 | |
Long-term debt, net - finance leases | 185 | ||
Deferred income taxes | 1,112 | ||
Asset retirement obligations | 181 | ||
Other | 80 | ||
Liabilities of assets held for sale (a) | $ | 2,010 | |
Net assets held for sale | $ | 4,016 |
(a) | Assets and liabilities held for sale at December 31, 2019 included South Africa assets which were sold to Total in January 2020. |
78 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
OXY 2019 FORM 10-K | 79 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE 5 - REVENUE |
80 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | 2019 | 2018 | ||||||
Revenue from customers | $ | 18,674 | $ | 15,560 | ||||
All other revenues (a) | 1,719 | 2,264 | ||||||
Net sales | $ | 20,393 | $ | 17,824 |
(a) | Included net marketing derivatives, oil collars and calls and chemical exchange contracts. |
millions | United States | Middle East | Latin America | Other International | Eliminations | Total | ||||||||||||||||||
Year ended December 31, 2019 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | 8,411 | $ | 2,758 | $ | 683 | $ | — | $ | — | $ | 11,852 | ||||||||||||
NGL | 658 | 263 | — | — | — | 921 | ||||||||||||||||||
Gas | 424 | 319 | 20 | — | — | 763 | ||||||||||||||||||
Other | (1 | ) | (5 | ) | — | — | — | (6 | ) | |||||||||||||||
Segment total | $ | 9,492 | $ | 3,335 | $ | 703 | $ | — | $ | — | $ | 13,530 | ||||||||||||
Chemical | $ | 3,858 | $ | — | $ | 155 | $ | 67 | $ | — | $ | 4,080 | ||||||||||||
Marketing and Midstream (a) | ||||||||||||||||||||||||
Gas processing | $ | 395 | $ | 351 | $ | — | $ | — | $ | — | $ | 746 | ||||||||||||
WES - Gas processing and pipeline | 1,110 | — | — | — | — | 1,110 | ||||||||||||||||||
Power and other | 472 | — | — | — | — | 472 | ||||||||||||||||||
Segment total | $ | 1,977 | $ | 351 | $ | — | $ | — | $ | — | $ | 2,328 | ||||||||||||
Eliminations | $ | — | $ | — | $ | — | $ | — | $ | (1,264 | ) | $ | (1,264 | ) | ||||||||||
Consolidated | $ | 15,327 | $ | 3,686 | $ | 858 | $ | 67 | $ | (1,264 | ) | $ | 18,674 | |||||||||||
Year ended December 31, 2018 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | 5,125 | $ | 3,405 | $ | 715 | $ | — | $ | — | $ | 9,245 | ||||||||||||
NGL | 430 | 261 | — | — | — | 691 | ||||||||||||||||||
Gas | 185 | 294 | 16 | — | — | 495 | ||||||||||||||||||
Other | 7 | 3 | — | — | — | 10 | ||||||||||||||||||
Segment total | $ | 5,747 | $ | 3,963 | $ | 731 | $ | — | $ | — | $ | 10,441 | ||||||||||||
Chemical | $ | 4,363 | $ | — | $ | 205 | $ | 80 | $ | — | $ | 4,648 | ||||||||||||
Marketing and Midstream | ||||||||||||||||||||||||
Gas processing | $ | 557 | $ | 425 | $ | — | $ | — | $ | — | $ | 982 | ||||||||||||
Pipelines | 311 | — | — | — | — | 311 | ||||||||||||||||||
Power and other | 108 | — | — | — | — | 108 | ||||||||||||||||||
Segment total | $ | 976 | $ | 425 | $ | — | $ | — | $ | — | $ | 1,401 | ||||||||||||
Eliminations | $ | — | $ | — | $ | — | $ | — | $ | (930 | ) | $ | (930 | ) | ||||||||||
Consolidated | $ | 11,086 | $ | 4,388 | $ | 936 | $ | 80 | $ | (930 | ) | $ | 15,560 |
(a) | The marketing and midstream segment included revenues from customers from WES from the date of the Acquisition to December 31, 2019. See Note 1 - Summary of Significant Accounting Policies. |
OXY 2019 FORM 10-K | 81 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Total | ||
2020 | $ | 103 | |
2021 | 103 | ||
2022 | 7 | ||
2023 | 7 | ||
2024 | 7 | ||
Thereafter | 53 | ||
Total | $ | 280 |
NOTE | 6 - INVENTORIES |
millions | 2019 | 2018 | ||||||
Raw materials | $ | 75 | $ | 74 | ||||
Materials and supplies | 879 | 445 | ||||||
Commodity inventory and finished goods | 533 | 788 | ||||||
1,487 | 1,307 | |||||||
Revaluation to LIFO | (40 | ) | (47 | ) | ||||
Total | $ | 1,447 | $ | 1,260 |
Balance at December 31, (in millions) | 2016 | 2015 | ||||||
Raw materials | $ | 65 | $ | 73 | ||||
Materials and supplies | 446 | 568 | ||||||
Finished goods | 395 | 395 | ||||||
906 | 1,036 | |||||||
Revaluation to LIFO | (40 | ) | (50 | ) | ||||
Total | $ | 866 | $ | 986 |
82 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE 7 - LONG-TERM DEBT |
4.850% senior notes due 2021 | $ | 677 | ||
2.600% senior notes due 2021 | 1,500 | |||
4.100% senior notes due 2021 | 1,249 | |||
Variable rate bonds due 2021 (2.854% as of December 31, 2019) | 500 | |||
Variable rate bonds due 2021 (3.151% as of December 31, 2019) | 500 | |||
2-year variable rate Term Loan due 2021 (3.111% as of December 31, 2019) | 1,956 | |||
2.700% senior notes due 2022 | 2,000 | |||
3.125% senior notes due 2022 | 814 | |||
2.600% senior notes due 2022 | 400 | |||
Variable rate bonds due 2022 (3.360% as of December 31, 2019) | 1,500 | |||
2.700% senior notes due 2023 | 1,191 | |||
8.750% medium-term notes due 2023 | 22 | |||
2.900% senior notes due 2024 | 3,000 | |||
6.950% senior notes due 2024 | 650 | |||
3.450% senior notes due 2024 | 248 | |||
3.500% senior notes due 2025 | 750 | |||
5.550% senior notes due 2026 | 1,100 | |||
3.200% senior notes due 2026 | 1,000 | |||
3.400% senior notes due 2026 | 1,150 | |||
7.500% debentures due 2026 | 112 | |||
3.000% senior notes due 2027 | 750 | |||
7.125% debentures due 2027 | 150 | |||
7.000% debentures due 2027 | 48 | |||
6.625% debentures due 2028 | 14 | |||
7.150% debentures due 2028 | 235 | |||
7.200% senior debentures due 2028 | 82 | |||
7.200% debentures due 2029 | 135 | |||
7.950% debentures due 2029 | 116 | |||
8.450% senior debentures due 2029 | 116 | |||
3.500% senior notes due 2029 | 1,500 | |||
Variable rate bonds due 2030 (1.705% as of December 31, 2019) | 68 | |||
7.500% senior notes due 2031 | 900 | |||
7.875% senior notes due 2031 | 500 | |||
6.450% senior notes due 2036 | 1,750 | |||
Zero Coupon senior notes due 2036 | 2,271 | |||
6.500% note payable to WES due 2038 | 260 | |||
4.300% senior notes due 2039 | 750 | |||
7.950% senior notes due 2039 | 325 | |||
6.200% senior notes due 2040 | 750 | |||
4.500% senior notes due 2044 | 625 | |||
4.625% senior notes due 2045 | 750 | |||
6.600% senior notes due 2046 | 1,100 | |||
4.400% senior notes due 2046 | 1,200 | |||
4.100% senior notes due 2047 | 750 | |||
4.200% senior notes due 2048 | 1,000 | |||
4.400% senior notes due 2049 | 750 | |||
7.730% debentures due 2096 | 60 | |||
7.500% debentures due 2096 | 78 | |||
7.250% debentures due 2096 | 49 | |||
Total borrowings at face value(a) | 37,401 | |||
Adjustments to book value: | ||||
Unamortized premium, net | 914 | |||
Debt issuance costs | (125 | ) | ||
Long-term finance leases | 347 | |||
Long-term Debt, net | $ | 38,537 |
(a) | Total borrowings at face value included a $310 thousand 7.25% senior note due 2025. |
OXY 2019 FORM 10-K | 83 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | December 31, 2018 | |||
Occidental | ||||
9.250% senior debentures due 2019 | $ | 116 | ||
4.100% senior notes due 2021 | 1,249 | |||
3.125% senior notes due 2022 | 813 | |||
2.600% senior notes due 2022 | 400 | |||
2.700% senior notes due 2023 | 1,191 | |||
8.750% medium-term notes due 2023 | 22 | |||
3.500% senior notes due 2025 | 750 | |||
3.400% senior notes due 2026 | 1,150 | |||
3.000% senior notes due 2027 | 750 | |||
7.200% senior debentures due 2028 | 82 | |||
8.450% senior debentures due 2029 | 116 | |||
4.625% senior notes due 2045 | 750 | |||
4.400% senior notes due 2046 | 1,200 | |||
4.100% senior notes due 2047 | 750 | |||
4.200% senior notes due 2048 | 1,000 | |||
Variable rate bonds due 2030 (1.9% as of December 31, 2018) | 68 | |||
Total borrowings at face value | 10,407 | |||
Adjustments to book value: | ||||
Unamortized discount, net | (36 | ) | ||
Debt issuance costs | (54 | ) | ||
Current maturities | (116 | ) | ||
Long-term Debt, net | $ | 10,201 |
Balance at December 31, (in millions) | 2016 | 2015 | ||||||
1.50% senior notes due 2018 | $ | 500 | $ | 500 | ||||
9.25% senior debentures due 2019 | 116 | 116 | ||||||
4.10% senior notes due 2021 | 1,249 | 1,249 | ||||||
3.125% senior notes due 2022 | 813 | 813 | ||||||
2.60% senior notes due 2022 | 400 | — | ||||||
2.70% senior notes due 2023 | 1,191 | 1,191 | ||||||
8.75% medium-term notes due 2023 | 22 | 22 | ||||||
3.50% senior notes due 2025 | 750 | 750 | ||||||
3.40% senior notes due 2026 | 1,150 | — | ||||||
3.00% senior notes due 2027 | 750 | — | ||||||
7.20% senior debentures due 2028 | 82 | 82 | ||||||
8.45% senior debentures due 2029 | 116 | 116 | ||||||
4.625% senior notes due 2045 | 750 | 750 | ||||||
4.40% senior notes due 2046 | 1,200 | — | ||||||
4.10% senior notes due 2047 | 750 | — | ||||||
2.50% senior notes due 2016 | — | 700 | ||||||
4.125% senior notes due 2016 | — | 750 | ||||||
1.75% senior notes due 2017 | — | 1,250 | ||||||
Variable rate bonds due 2030 (0.9% and 0.15% as of December 31, 2016 and 2015, respectively ) | 68 | 68 | ||||||
9,907 | 8,357 | |||||||
Less: | ||||||||
Unamortized discount, net | (36 | ) | (24 | ) | ||||
Debt issuance costs | (52 | ) | (28 | ) | ||||
Current maturities | — | (1,450 | ) | |||||
Total | $ | 9,819 | $ | 6,855 |
84 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 8 - LEASE COMMITMENTS |
Ø | Existing or expired land easements as of December 31, 2018, were not reassessed to determine whether or not they contained a lease. |
Ø | Leases with a lease term of 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Balance Sheet; however, the lease expenditures recognized are captured and reported as incurred. |
Ø | For asset classes, except long-term drilling rigs, Occidental elected to account for the lease and non-lease components as a single lease component as the non-lease portions were not significant to separate in determining the lease liability. For long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. |
(in millions) | Amount | |||
2017 | $ | 255 | ||
2018 | 230 | |||
2019 | 134 | |||
2020 | 100 | |||
2021 | 86 | |||
Thereafter | 469 | |||
Total minimum lease payments | $ | 1,274 |
OXY 2019 FORM 10-K | 85 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Operating Leases | Finance Leases | Total | ||||||||
2019 | $ | 90 | $ | 7 | $ | 97 | |||||
2020 | 172 | 17 | 189 | ||||||||
2021 | 64 | 16 | 80 | ||||||||
2022 | 42 | 13 | 55 | ||||||||
2023 | 28 | 8 | 36 | ||||||||
Thereafter | 136 | 43 | 179 | ||||||||
Total lease payments | $ | 532 | $ | 104 | $ | 636 | |||||
Less: Interest | (44 | ) | (18 | ) | (62 | ) | |||||
Total lease liabilities (a) | $ | 488 | $ | 86 | $ | 574 |
(a) | Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million, respectively. |
millions | Balance sheet location | 2019 | ||||
Assets: | ||||||
Operating | Operating lease assets | $ | 1,385 | |||
Finance | Property, plant and equipment | 397 | ||||
Total lease assets | $ | 1,782 | ||||
Liabilities: | ||||||
Current | ||||||
Operating | Current operating lease liabilities | $ | 569 | |||
Finance | Current maturities of long-term debt | 51 | ||||
Non-current | ||||||
Operating | Deferred credits and other liabilities - Operating lease liabilities | 854 | ||||
Finance | Long-term debt, net | 347 | ||||
Total lease liabilities | $ | 1,821 |
86 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Operating Leases(a) | Finance Leases(b) | Total | ||||||||
2020 | $ | 555 | $ | 53 | $ | 608 | |||||
2021 | 408 | 45 | 453 | ||||||||
2022 | 136 | 41 | 177 | ||||||||
2023 | 99 | 37 | 136 | ||||||||
2024 | 81 | 34 | 115 | ||||||||
Thereafter | 254 | 275 | 529 | ||||||||
Total lease payments | 1,533 | 485 | 2,018 | ||||||||
Less: Interest | (110 | ) | (87 | ) | (197 | ) | |||||
Total lease liabilities | $ | 1,423 | $ | 398 | $ | 1,821 |
(a) | The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53%. |
(b) | The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74%. |
millions | Operating Leases | |||
2019 | $ | 186 | ||
2020 | 147 | |||
2021 | 96 | |||
2022 | 68 | |||
2023 | 49 | |||
Thereafter | 158 | |||
Total minimum lease payments(a) | $ | 704 |
(a) | The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Acquisition. |
millions | Year ended December 31, 2019 | |||
Lease cost classification(a) | ||||
Operating lease costs(b) | ||||
Property, plant and equipment, net | $ | 449 | ||
Operating expense and cost of sales | 391 | |||
Selling, general and administrative expenses | 92 | |||
Finance lease cost | ||||
Amortization of ROU assets | 19 | |||
Interest on lease liabilities | 2 | |||
Total lease cost | $ | 953 |
(a) | Amounts reflected are gross before joint-interest recoveries. |
(b) | Included short-term lease cost of $404 million for the twelve months ended December 31, 2019, and variable lease cost of $162 million for the twelve months ended December 31, 2019. |
millions | Year ended December 31, 2019 | |||
Operating cash flows | $ | 262 | ||
Investing cash flows | $ | 112 | ||
Financing cash flows (a) | $ | 19 |
(a) | Excludes cash received of approximately $300 million associated with the failed sale-leaseback, see Note 4 - Acquisitions, Dispositions and Other. |
OXY 2019 FORM 10-K | 87 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 9 - DERIVATIVES |
Collars and Calls, not designated as hedges | ||||||
2020 Settlement | ||||||
Three-way collars (oil MMBBL) | 128.1 | |||||
Volume weighted average price per barrel (Brent oil pricing) | ||||||
Ceiling sold price (call) | $ | 74.16 | ||||
Floor purchased price (put) | $ | 55.00 | ||||
Floor sold price (put) | $ | 45.00 | ||||
2021 Settlement | ||||||
Call options sold (oil MMBBL) | 127.8 | |||||
Volume weighted average price per barrel (Brent oil pricing) | ||||||
Ceiling sold price (call) | $ | 74.16 |
88 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions except percentages | Mandatory | Weighted-Average | ||||||||
Notional Principal Amount | Reference Period | Termination Date | Interest Rate | |||||||
$ | 550 | September 2016 - 2046 | September 2020 | 6.418 | % | |||||
$ | 125 | September 2016 - 2046 | September 2022 | 6.835 | % | |||||
$ | 100 | September 2017 - 2047 | September 2020 | 6.891 | % | |||||
$ | 250 | September 2017 - 2047 | September 2021 | 6.570 | % | |||||
$ | 450 | September 2017 - 2047 | September 2023 | 6.445 | % |
2019 | 2018 | |||||
Oil Commodity Contracts | ||||||
Volume (MMBBL) | 55 | 61 | ||||
Natural gas commodity contracts | ||||||
Volume (Bcf) | (128 | ) | (142 | ) |
OXY 2019 FORM 10-K | 89 |
FINANCIAL STATEMENTS FOOTNOTES |
As of December 31, (in millions, except Long/(Short) volumes) | 2016 | 2015 | ||||||
Gain (loss) on derivatives not designated as hedges | ||||||||
Oil commodity contracts | $ | (5 | ) | $ | 28 | |||
Natural gas commodity contracts | $ | 1 | $ | (26 | ) | |||
Outstanding net volumes on derivatives not designated as hedges | ||||||||
Oil Commodity Contracts | ||||||||
Volume (MMBOE) | 67 | 83 | ||||||
Price Per Bbl | $ | 53.86 | $ | 45.25 | ||||
Natural gas commodity contracts | ||||||||
Volume (Bcf) | (12 | ) | (5 | ) | ||||
Price Per MMBTU | $ | 3.19 | $ | 2.72 |
As of December 31, 2016 | Fair Value Measurements Using | Netting (b) | Total Fair Value | ||||||||||||||
(in millions) | Balance Sheet Location | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Cash-flow hedges (a) | |||||||||||||||||
Commodity contracts | Other current assets | — | 1 | — | — | 1 | |||||||||||
Long-term receivables and other assets, net | — | — | — | — | — | ||||||||||||
Derivatives not designated as hedging instruments (a) | |||||||||||||||||
Commodity contracts | Other current assets | 166 | 57 | — | (196 | ) | 27 | ||||||||||
Long-term receivables and other assets, net | 2 | 3 | — | (2 | ) | 3 | |||||||||||
Liabilities: | |||||||||||||||||
Cash-flow hedges (a) | |||||||||||||||||
Commodity contracts | Accrued liabilities | — | 6 | — | — | 6 | |||||||||||
Deferred credits and liabilities | — | — | — | — | — | ||||||||||||
Derivatives not designated as hedging instruments (a) | |||||||||||||||||
Commodity contracts | Accrued liabilities | 172 | 51 | — | (196 | ) | 27 | ||||||||||
Deferred credits and liabilities | 1 | 6 | — | (2 | ) | 5 |
millions | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||
Balance Sheet Classification | Level 1 | Level 2 | Level 3 | Netting (a) | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Oil Collars and Calls | ||||||||||||||||||||
Other current assets | $ | — | $ | 92 | $ | — | $ | — | $ | 92 | ||||||||||
Deferred credits and other liabilities - other | — | (160 | ) | — | — | (160 | ) | |||||||||||||
Marketing Derivatives | ||||||||||||||||||||
Other current assets | 945 | 79 | — | (973 | ) | 51 | ||||||||||||||
Long-term receivables and other assets, net | 4 | 12 | — | (4 | ) | 12 | ||||||||||||||
Accrued liabilities | (1,008 | ) | (44 | ) | — | 973 | (79 | ) | ||||||||||||
Deferred credits and other liabilities - other | (4 | ) | (1 | ) | — | 4 | (1 | ) | ||||||||||||
Interest Rate Swaps | ||||||||||||||||||||
Other current assets | — | 5 | — | — | 5 | |||||||||||||||
Long-term receivables and other assets, net | — | 5 | — | — | 5 | |||||||||||||||
Accrued liabilities | — | (657 | ) | — | — | (657 | ) | |||||||||||||
Deferred credits and other liabilities - other | — | (776 | ) | — | — | (776 | ) | |||||||||||||
Warrant | ||||||||||||||||||||
Deferred credits and other liabilities - other | — | (107 | ) | — | — | (107 | ) | |||||||||||||
December 31, 2018 | ||||||||||||||||||||
Marketing Derivatives | ||||||||||||||||||||
Other current assets | $ | 2,531 | $ | 110 | $ | — | $ | (2,392 | ) | $ | 249 | |||||||||
Long-term receivables and other assets, net | 5 | 9 | — | (6 | ) | 8 | ||||||||||||||
Accrued liabilities | (2,357 | ) | (101 | ) | — | 2,392 | (66 | ) | ||||||||||||
Deferred credits and other liabilities - other | (6 | ) | (2 | ) | — | 6 | (2 | ) |
(a) |
These amounts do not include collateral. As of December 31, |
90 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
As of December 31, 2015 | Fair Value Measurements Using | Netting (b) | Total Fair Value | ||||||||||||||
(in millions) | Balance Sheet Location | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||||
Cash-flow hedges (a) | |||||||||||||||||
Commodity contracts | Other current assets | — | 8 | — | — | 8 | |||||||||||
Long-term receivables and other assets, net | — | — | — | — | — | ||||||||||||
Derivatives not designated as hedging instruments (a) | |||||||||||||||||
Commodity contracts | Other current assets | 554 | 72 | — | (519 | ) | 107 | ||||||||||
Long-term receivables and other assets, net | 3 | 6 | — | (2 | ) | 7 | |||||||||||
Liabilities: | |||||||||||||||||
Cash-flow hedges (a) | |||||||||||||||||
Commodity contracts | Accrued liabilities | — | 1 | — | 1 | ||||||||||||
Deferred credits and liabilities | — | — | — | — | — | ||||||||||||
Derivatives not designated as hedging instruments (a) | |||||||||||||||||
Commodity contracts | Accrued liabilities | 541 | 84 | — | (519 | ) | 106 | ||||||||||
Deferred credits and liabilities | 3 | 5 | — | (2 | ) | 6 |
millions | December 31, | |||||||||||
Income Statement Classification | 2019 | 2018 | 2017 | |||||||||
Oil Collars and Calls | ||||||||||||
Net sales | $ | (107 | ) | $ | — | $ | — | |||||
Marketing Derivatives | ||||||||||||
Net sales (a) | 1,804 | 2,254 | (138 | ) | ||||||||
Interest Rate Swaps (Excluding WES) | ||||||||||||
Gain on interest rate swaps and warrants, net | 122 | — | — | |||||||||
Interest Rate Swaps (WES) | ||||||||||||
Gain on interest rate swaps and warrants, net | 30 | — | — | |||||||||
Warrant | ||||||||||||
Gain on interest rate swaps and warrants, net | 81 | — | — |
(a) |
NOTE | 10 - ENVIRONMENTAL LIABILITIES AND EXPENDITURES |
OXY 2019 FORM 10-K | 91 |
($ amounts in millions) | 2016 | 2015 | 2014 | ||||||||||||||||||
Number of Sites | Reserve Balance | Number of Sites | Reserve Balance | Number of Sites | Reserve Balance | ||||||||||||||||
NPL sites | 33 | $ | 461 | 34 | $ | 27 | 30 | $ | 23 | ||||||||||||
Third-party sites | 68 | 163 | 66 | 128 | 67 | 101 | |||||||||||||||
Occidental-operated sites | 17 | 106 | 18 | 107 | 17 | 107 | |||||||||||||||
Closed or non-operated Occidental sites | 29 | 140 | 31 | 124 | 31 | 103 | |||||||||||||||
Total | 147 | $ | 870 | 149 | $ | 386 | 145 | $ | 334 |
FINANCIAL STATEMENTS FOOTNOTES |
2019 | 2018 | |||||||||||||
millions, except number of sites | Number of Sites | Remediation Balance | Number of Sites | Remediation Balance | ||||||||||
NPL sites | 36 | $ | 463 | 34 | $ | 458 | ||||||||
Third-party sites | 74 | 311 | 68 | 168 | ||||||||||
Occidental-operated sites | 17 | 154 | 14 | 115 | ||||||||||
Closed or non-operated Occidental sites | 50 | 269 | 29 | 141 | ||||||||||
Total | 177 | $ | 1,197 | 145 | $ | 882 |
(in millions) | 2016 | 2015 | 2014 | |||||||||
Operating Expenses | ||||||||||||
Oil and Gas | $ | 65 | $ | 93 | $ | 103 | ||||||
Chemical | 75 | 74 | 80 | |||||||||
Midstream and Marketing | 11 | 13 | 11 | |||||||||
$ | 151 | $ | 180 | $ | 194 | |||||||
Capital Expenditures | ||||||||||||
Oil and Gas | $ | 43 | $ | 122 | $ | 143 | ||||||
Chemical | 25 | 41 | 35 | |||||||||
Midstream and Marketing | 5 | 4 | 11 | |||||||||
$ | 73 | $ | 167 | $ | 189 | |||||||
Remediation Expenses | ||||||||||||
Corporate | $ | 61 | $ | 117 | $ | 79 |
92 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 11 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES |
OXY 2019 FORM 10-K | 93 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE |
millions | 2019 | 2018 | 2017 | |||||||||
Domestic | $ | (1,632 | ) | $ | 3,431 | $ | (609 | ) | ||||
Foreign | 1,818 | 2,177 | 1,937 | |||||||||
Total | $ | 186 | $ | 5,608 | $ | 1,328 |
For the years ended December 31, (in millions) | Domestic | Foreign | Total | |||||||||
2016 | $ | (2,698 | ) | $ | 1,034 | $ | (1,664 | ) | ||||
2015 | $ | (5,810 | ) | $ | (3,666 | ) | $ | (9,476 | ) | |||
2014 | $ | (732 | ) | $ | 2,273 | $ | 1,541 |
millions | 2019 | 2018 | 2017 | |||||||||
Current | ||||||||||||
Federal | $ | 33 | $ | (23 | ) | $ | (81 | ) | ||||
State and Local | 46 | 52 | 11 | |||||||||
Foreign | 1,641 | 1,077 | 806 | |||||||||
Total current tax expense | $ | 1,720 | $ | 1,106 | $ | 736 | ||||||
Deferred | ||||||||||||
Federal | (130 | ) | 422 | (856 | ) | |||||||
State and Local | 17 | 12 | 23 | |||||||||
Foreign | (914 | ) | (63 | ) | 114 | |||||||
Total deferred tax expense (benefit) | $ | (1,027 | ) | $ | 371 | $ | (719 | ) | ||||
Total income tax expense | $ | 693 | $ | 1,477 | $ | 17 |
For the years ended December 31, (in millions) | United States Federal | State and Local | Foreign | Total | ||||||||||||
2016 | ||||||||||||||||
Current | $ | (784 | ) | $ | 9 | $ | 630 | $ | (145 | ) | ||||||
Deferred | (505 | ) | (19 | ) | 7 | (517 | ) | |||||||||
$ | (1,289 | ) | $ | (10 | ) | $ | 637 | $ | (662 | ) | ||||||
2015 | ||||||||||||||||
Current | $ | (810 | ) | $ | (31 | ) | $ | 883 | $ | 42 | ||||||
Deferred | (1,146 | ) | (83 | ) | (143 | ) | (1,372 | ) | ||||||||
$ | (1,956 | ) | $ | (114 | ) | $ | 740 | $ | (1,330 | ) | ||||||
2014 | ||||||||||||||||
Current | $ | 870 | $ | 81 | $ | 1,912 | $ | 2,863 | ||||||||
Deferred | (1,037 | ) | (71 | ) | (70 | ) | (1,178 | ) | ||||||||
$ | (167 | ) | $ | 10 | $ | 1,842 | $ | 1,685 |
94 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
2019 | 2018 | 2017 | |||||||
U.S. federal statutory tax rate | 21 | % | 21 | % | 35 | % | |||
Enhanced oil recovery credit and other general business credits | (4 | ) | (3 | ) | (9 | ) | |||
Change in federal income tax rate | — | — | (44 | ) | |||||
Tax (benefit) expense due to reversal of indefinite reinvestment assertion | — | (2 | ) | 7 | |||||
Tax impact from foreign operations | 187 | 11 | 12 | ||||||
State income taxes, net of federal benefit | 28 | 1 | 2 | ||||||
Uncertain tax positions | 13 | — | — | ||||||
Transaction costs | 19 | — | — | ||||||
Non-controlling interest | (16 | ) | — | — | |||||
Executive compensation limitation | 24 | — | — | ||||||
Stock warrants | (9 | ) | — | — | |||||
WES loss of control | 113 | — | — | ||||||
Other | (3 | ) | (2 | ) | (2 | ) | |||
Worldwide effective tax rate | 373 | % | 26 | % | 1 | % |
For the years ended December 31, | 2016 | 2015 | 2014 | ||||||
United States federal statutory tax rate | 35 | % | 35 | % | 35 | % | |||
Other than temporary loss on available for sale investment in California Resources stock | (2 | ) | (1 | ) | 12 | ||||
Enhanced oil recovery credit | 5 | — | — | ||||||
Tax benefit due to write off of exploration blocks | 14 | — | — | ||||||
Operations outside the United States | (14 | ) | (21 | ) | 65 | ||||
State income taxes, net of federal benefit | — | 1 | 1 | ||||||
Other | 2 | — | (4 | ) | |||||
Worldwide effective tax rate | 40 | % | 14 | % | 109 | % |
millions | 2019 | 2018 | ||||||
Deferred tax liabilities | ||||||||
Property, plant and equipment differences | $ | (12,375 | ) | $ | (2,089 | ) | ||
Equity investments, partnerships and foreign subsidiaries | (989 | ) | (161 | ) | ||||
Gross long-term deferred tax liabilities | (13,364 | ) | (2,250 | ) | ||||
Deferred tax assets | ||||||||
Environmental reserves | 261 | 195 | ||||||
Postretirement benefit accruals | 441 | 176 | ||||||
Deferred compensation and benefits | 266 | 170 | ||||||
Asset retirement obligations | 906 | 280 | ||||||
Foreign tax credit carryforwards | 4,379 | 2,356 | ||||||
General business credit carryforwards | 443 | 429 | ||||||
Net operating loss carryforward | 692 | 29 | ||||||
Interest expense carryforward | 492 | — | ||||||
All other | 782 | 111 | ||||||
Gross long-term deferred tax assets | 8,662 | 3,746 | ||||||
Valuation allowance | (4,959 | ) | (2,403 | ) | ||||
Net long-term deferred tax assets | $ | 3,703 | $ | 1,343 | ||||
Less: Foreign deferred tax asset in long-term receivables and other assets, net | $ | (56 | ) | $ | — | |||
Total deferred income taxes, net | $ | (9,717 | ) | $ | (907 | ) |
2016 | 2015 | |||||||||||||||
Tax effects of temporary differences (in millions) | Deferred Tax Assets | Deferred Tax Liabilities | Deferred Tax Assets | Deferred Tax Liabilities | ||||||||||||
Property, plant and equipment differences | $ | — | $ | 3,345 | $ | — | $ | 3,232 | ||||||||
Equity investments, partnerships and foreign subsidiaries | — | 58 | — | 12 | ||||||||||||
Environmental reserves | 314 | — | 136 | — | ||||||||||||
Postretirement benefit accruals | 342 | — | 346 | — | ||||||||||||
Deferred compensation and benefits | 222 | — | 179 | — | ||||||||||||
Asset retirement obligations | 406 | — | 372 | — | ||||||||||||
Foreign tax credit carryforwards | 2,046 | — | 2,034 | — | ||||||||||||
Alternative minimum tax credit carryforwards | 226 | — | — | — | ||||||||||||
General business credit carryforwards | 186 | — | — | — | ||||||||||||
Federal benefit of state income taxes | 8 | — | 11 | — | ||||||||||||
All other | 370 | — | 677 | — | ||||||||||||
Subtotal | 4,120 | 3,403 | 3,755 | 3,244 | ||||||||||||
Valuation allowance | (1,849 | ) | — | (1,834 | ) | — | ||||||||||
Total deferred taxes | $ | 2,271 | $ | 3,403 | $ | 1,921 | $ | 3,244 |
OXY 2019 FORM 10-K | 95 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | 2019 | 2018 | 2017 | |||||||||
Balance at January 1 | $ | — | $ | 22 | $ | 22 | ||||||
Increase related to Anadarko Acquisition | 2,143 | — | — | |||||||||
Increases related to current-year positions | 30 | — | — | |||||||||
Settlements | — | (22 | ) | — | ||||||||
Balance at December 31 | $ | 2,173 | $ | — | $ | 22 |
For the years ended December 31, (in millions) | 2016 | 2015 | ||||||
Balance at January 1, | $ | 22 | $ | 61 | ||||
Reductions based on tax positions related to prior years and settlements | — | (39 | ) | |||||
Balance at December 31, | $ | 22 | $ | 22 |
NOTE |
Shares in thousands | Common Stock | ||
Balance, December 31, 2016 | 892,215 | ||
Issued | 1,252 | ||
Options exercised and other, net | 2 | ||
Balance, December 31, 2017 | 893,469 | ||
Issued | 1,628 | ||
Options exercised and other, net | 19 | ||
Balance, December 31, 2018 | 895,116 | ||
Issued in the ordinary course | 3,188 | ||
Issued as part of the Acquisition (a) | 146,131 | ||
Balance, December 31, 2019 | 1,044,435 |
(a) | Included approximately 2 million shares of common stock issued to a benefits trust for former Anadarko employees treated as treasury stock at December 31, 2019. |
96 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions except per share amounts | 2019 | 2018 | 2017 | |||||||||
Income (loss) from continuing operations | $ | (507 | ) | $ | 4,131 | $ | 1,311 | |||||
Loss from discontinued operations | (15 | ) | — | — | ||||||||
Net income (loss) | $ | (522 | ) | $ | 4,131 | $ | 1,311 | |||||
Less: Net income attributable to noncontrolling interest | (145 | ) | — | — | ||||||||
Less: Preferred stock dividends | (318 | ) | — | — | ||||||||
Net income (loss) attributable to common stock | $ | (985 | ) | $ | 4,131 | $ | 1,311 | |||||
Less: Net income allocated to participating securities | — | (17 | ) | (6 | ) | |||||||
Net income (loss), net of participating securities | $ | (985 | ) | $ | 4,114 | $ | 1,305 | |||||
Weighted-average number of basic shares | 809.5 | 761.7 | 765.1 | |||||||||
Basic earnings (loss) per common share | $ | (1.22 | ) | $ | 5.40 | $ | 1.71 | |||||
Net income (loss), net of participating securities | $ | (985 | ) | $ | 4,114 | $ | 1,305 | |||||
Weighted-average number of basic shares | 809.5 | 761.7 | 765.1 | |||||||||
Dilutive securities | — | 1.6 | 0.8 | |||||||||
Total diluted weighted-average common shares | 809.5 | 763.3 | 765.9 | |||||||||
Diluted earnings (loss) per common share | $ | (1.22 | ) | $ | 5.39 | $ | 1.70 |
(in millions, except per-share amounts) | 2016 | 2015 | 2014 | |||||||||
Income (loss) from continuing operations | $ | (1,002 | ) | $ | (8,146 | ) | $ | (130 | ) | |||
Less: Income from continuing operations attributable to noncontrolling interest | — | — | (14 | ) | ||||||||
Income (loss) from contributing operations attributable to common stock | (1,002 | ) | (8,146 | ) | (144 | ) | ||||||
Income from discontinued operations | 428 | 317 | 760 | |||||||||
Net income (loss) | (574 | ) | (7,829 | ) | 616 | |||||||
Less: Net income allocated to participating securities | — | — | — | |||||||||
Net income (loss), net of participating securities | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | ||||
Weighted average number of basic shares | 763.8 | 765.6 | 781.1 | |||||||||
Basic earnings (loss) per common share | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 | ||||
Net income (loss), net of participating securities | $ | (574 | ) | $ | (7,829 | ) | $ | 616 | ||||
Weighted average number of basic shares | 763.8 | 765.6 | 781.1 | |||||||||
Dilutive securities | — | — | — | |||||||||
Total diluted weighted average common shares | 763.8 | 765.6 | 781.1 | |||||||||
Diluted earnings (loss) per common share | $ | (0.75 | ) | $ | (10.23 | ) | $ | 0.79 |
Balance at December 31, (in millions) | 2016 | 2015 | ||||||
Foreign currency translation adjustments | $ | (10 | ) | $ | (9 | ) | ||
Unrealized losses on derivatives | (13 | ) | (7 | ) | ||||
Pension and post-retirement adjustments (a) | (243 | ) | (291 | ) | ||||
Total | $ | (266 | ) | $ | (307 | ) |
millions | 2019 | 2018 | ||||||
Foreign currency translation adjustments | $ | (7 | ) | $ | (7 | ) | ||
Unrealized gains (losses) on derivatives | (122 | ) | 5 | |||||
Pension and postretirement adjustments (a) | (92 | ) | (170 | ) | ||||
Total | $ | (221 | ) | $ | (172 | ) |
(a) |
OXY 2019 FORM 10-K | 97 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 14 - STOCK-BASED INCENTIVE PLANS |
For the years ended December 31, (in millions) | 2016 | 2015 | 2014 | |||||||||
Compensation expense | $ | 121 | $ | 49 | $ | 129 | ||||||
Income tax benefit recognized in the income statement | 43 | 17 | 46 |
Cash-Settled | Stock-Settled | |||||||||||||||
thousands, except fair values | RSUs | Weighted-Average Grant-Date Fair Value | RSUs | Weighted-Average Grant-Date Fair Value | ||||||||||||
Unvested at January 1 | 186 | $ | 73.93 | 3,971 | $ | 73.19 | ||||||||||
Granted (a) | 4,267 | $ | 42.62 | 3,543 | $ | 58.73 | ||||||||||
Vested | (67 | ) | $ | 72.26 | (2,743 | ) | $ | 67.04 | ||||||||
Forfeitures | (39 | ) | $ | 47.60 | (376 | ) | $ | 67.25 | ||||||||
Unvested at December 31 | 4,347 | $ | 43.46 | 4,395 | $ | 65.88 |
(a) | Included 1.5 million shares issued in exchange for Anadarko stock-based incentive shares. |
Cash-Settled | Stock-Settled | |||||||||||||||||
RSUs (000's) | Weighted-Average Grant-Date Fair Value | RSUs (000's) | Weighted-Average Grant-Date Fair Value | |||||||||||||||
Unvested at January 1 | 1,130 | $ | 81.06 | 1,758 | $ | 81.19 | ||||||||||||
Granted | 53 | 75.57 | 2,238 | 74.82 | ||||||||||||||
Vested | (536 | ) | 83.18 | (417 | ) | 82.35 | ||||||||||||
Forfeitures | (46 | ) | 80.89 | (79 | ) | 77.00 | ||||||||||||
Unvested at December 31 | 601 | 78.70 | 3,500 | 77.07 |
98 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
TSRIs | ||||||||||||
2019 | 2018 | 2017 | ||||||||||
Assumptions used: | ||||||||||||
Risk-free interest rate | 2.5 | % | 2.3 | % | 1.5 | % | ||||||
Volatility factor | 22 | % | 24 | % | 25 | % | ||||||
Expected life (years) | 3 | 3 | 3 | |||||||||
Grant-date fair value of underlying Occidental common stock | $ | 67.19 | $ | 69.87 | $ | 67.21 |
TSRIs | ||||||||||||
Year Granted | 2016 | 2015 | 2014 | |||||||||
Assumptions used: | ||||||||||||
Risk-free interest rate | 0.8 | % | 0.9 | % | 1.0 | % | ||||||
Dividend yield | 3.9 | % | 4.1 | % | 2.8 | % | ||||||
Volatility factor | 42 | % | 37 | % | 27 | % | ||||||
Expected life (years) | 3 | 3 | 3 | |||||||||
Grant-date fair value of underlying Occidental common stock | $ | 76.83 | $ | 72.54 | $ | 101.95 |
TSRIs | TSRIs | ||||||||||||||||
Awards (000’s) | Weighted-Average Grant-Date Fair Value of Occidental Stock | ||||||||||||||||
thousands, except fair values | Awards | Weighted-Average Grant-Date Fair Value of Occidental Stock | |||||||||||||||
Unvested at January 1 | 346 | $ | 83.75 | 1,444 | $ | 70.97 | |||||||||||
Granted | 473 | 76.83 | 578 | $ | 67.19 | ||||||||||||
Vested (a) | (102 | ) | 87.27 | (442 | ) | $ | 76.83 | ||||||||||
Forfeitures | (10 | ) | 76.43 | (43 | ) | $ | 76.83 | ||||||||||
Unvested at December 31 | 707 | 78.72 | 1,537 | $ | 67.70 |
(a) | Presented at the target payouts. The weighted-average payout at vesting was 19% of the target, resulting in the issuance of approximately 83,000 shares of Occidental common stock. |
SARs & Options (000's) | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term (yrs) | Aggregate Intrinsic Value (000’s) | |||||||||||
Beginning balance, January 1 | 629 | $ | 77.58 | |||||||||||
Exercised | (47 | ) | 45.53 | |||||||||||
Granted | — | — | ||||||||||||
Forfeited | (11 | ) | 79.98 | |||||||||||
Ending balance, December 31 | 571 | 79.98 | 5.1 | $ | — | |||||||||
Exercisable at December 31 | 214 | 79.98 | 5.1 | $ | — |
ROCEI / ROAI | CROCEI, ROCEI, and ROAI | ||||||||||||||||
Awards (000's) | Weighted-Average Grant-Date Fair Value of Occidental Stock | ||||||||||||||||
thousands, except fair values | Awards | Weighted-Average Grant-Date Fair Value of Occidental Stock | |||||||||||||||
Unvested at January 1 | 392 | $ | 85.43 | 210 | $ | 71.60 | |||||||||||
Granted | 81 | $ | 67.19 | ||||||||||||||
Vested (a) | (137 | ) | $ | 72.54 | |||||||||||||
Forfeited | — | — | |||||||||||||||
Unvested at December 31 | 392 | 85.43 | 154 | $ | 68.44 |
(a) | Presented at the target payouts. The weighted-average payout at vesting was 86% of the target resulting in the issuance of approximately 118,000 shares. |
OXY 2019 FORM 10-K | 99 |
FINANCIAL STATEMENTS FOOTNOTES |
NOTE | 15 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS |
Pension Benefits | Postretirement Benefits | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Long-term receivables and other assets, net | $ | 85 | $ | 60 | $ | — | $ | — | ||||||||
Accrued liabilities | (96 | ) | (25 | ) | (72 | ) | (45 | ) | ||||||||
Deferred credits and other liabilities — pension and postretirement obligations | (704 | ) | (46 | ) | (1,103 | ) | (763 | ) | ||||||||
$ | (715 | ) | $ | (11 | ) | $ | (1,175 | ) | $ | (808 | ) | |||||
Accumulated other comprehensive loss included the following after-tax balances: | ||||||||||||||||
Net (gain) loss | $ | (25 | ) | $ | 91 | $ | 184 | $ | 151 | |||||||
Prior service credit | — | — | (67 | ) | (72 | ) | ||||||||||
$ | (25 | ) | $ | 91 | $ | 117 | $ | 79 |
100 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
Pension Benefits | Postretirement Benefits | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Changes in the benefit obligation: | ||||||||||||||||
Benefit obligation — beginning of year | $ | 349 | $ | 391 | $ | 808 | $ | 999 | ||||||||
Service cost — benefits earned during the period | 45 | 5 | 24 | 23 | ||||||||||||
Interest cost on projected benefit obligation | 39 | 15 | 36 | 34 | ||||||||||||
Actuarial (gain) loss | (33 | ) | (19 | ) | 45 | (90 | ) | |||||||||
Foreign currency exchange rate gain | — | (3 | ) | — | — | |||||||||||
Curtailment (gain) loss | (136 | ) | — | 10 | — | |||||||||||
Special termination benefits | 49 | — | — | — | ||||||||||||
Benefits paid | (95 | ) | (40 | ) | (51 | ) | (57 | ) | ||||||||
Participant contributions | — | — | 2 | — | ||||||||||||
Plan amendments | — | — | — | (101 | ) | |||||||||||
Additions due to the Acquisition | 2,136 | — | 301 | — | ||||||||||||
Benefit obligation — end of year | $ | 2,354 | $ | 349 | $ | 1,175 | $ | 808 | ||||||||
Changes in plan assets: | ||||||||||||||||
Fair value of plan assets — beginning of year | $ | 338 | $ | 403 | $ | — | $ | — | ||||||||
Actual return on plan assets | 122 | (33 | ) | — | — | |||||||||||
Participant contributions | — | — | 2 | — | ||||||||||||
Employer contributions | 41 | 8 | 49 | — | ||||||||||||
Benefits paid | (95 | ) | (40 | ) | (51 | ) | — | |||||||||
Additions due to the Acquisition | 1,233 | — | — | — | ||||||||||||
Fair value of plan assets — end of year | $ | 1,639 | $ | 338 | $ | — | $ | — | ||||||||
Unfunded status: | $ | (715 | ) | $ | (11 | ) | $ | (1,175 | ) | $ | (808 | ) |
(in millions) | Pension Benefits | Postretirement Benefits | ||||||||||||||
As of December 31, | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Amounts recognized in the consolidated balance sheet: | ||||||||||||||||
Other assets | $ | 61 | $ | 45 | $ | — | $ | — | ||||||||
Accrued liabilities | (3 | ) | (7 | ) | (58 | ) | (58 | ) | ||||||||
Deferred credits and other liabilities — other | (71 | ) | (65 | ) | (892 | ) | (921 | ) | ||||||||
$ | (13 | ) | $ | (27 | ) | $ | (950 | ) | $ | (979 | ) | |||||
AOCI included the following after-tax balances: | ||||||||||||||||
Net loss | $ | 76 | $ | 93 | $ | 169 | $ | 197 | ||||||||
Prior service cost | — | — | 1 | 1 | ||||||||||||
$ | 76 | $ | 93 | $ | 170 | $ | 198 | |||||||||
For the years ended December 31, | ||||||||||||||||
Changes in the benefit obligation: | ||||||||||||||||
Benefit obligation — beginning of year | $ | 411 | $ | 453 | $ | 979 | $ | 1,036 | ||||||||
Service cost — benefits earned during the period | 7 | 7 | 20 | 26 | ||||||||||||
Interest cost on projected benefit obligation | 18 | 18 | 39 | 40 | ||||||||||||
Actuarial gain | (1 | ) | (16 | ) | (28 | ) | (66 | ) | ||||||||
Foreign currency exchange rate (gain) loss | 1 | (9 | ) | — | — | |||||||||||
Benefits paid | (37 | ) | (42 | ) | (60 | ) | (57 | ) | ||||||||
Benefit obligation — end of year | $ | 399 | $ | 411 | $ | 950 | $ | 979 | ||||||||
Changes in plan assets: | ||||||||||||||||
Fair value of plan assets — beginning of year | $ | 384 | $ | 436 | $ | — | $ | — | ||||||||
Actual return on plan assets | 34 | (21 | ) | — | — | |||||||||||
Employer contributions | 5 | 11 | — | — | ||||||||||||
Benefits paid | (37 | ) | (42 | ) | — | — | ||||||||||
Fair value of plan assets — end of year | $ | 386 | $ | 384 | $ | — | $ | — | ||||||||
Funded/(Unfunded) status: | $ | (13 | ) | $ | (27 | ) | $ | (950 | ) | $ | (979 | ) |
Accumulated Benefit Obligation in Excess of Plan Assets | Plan Assets in Excess of Accumulated Benefit Obligation | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Projected benefit obligation | $ | 2,175 | $ | 173 | $ | 179 | $ | 176 | ||||||||
Accumulated benefit obligation | $ | 1,918 | $ | 169 | $ | 179 | $ | 176 | ||||||||
Fair value of plan assets | $ | 1,375 | $ | 98 | $ | 264 | $ | 240 |
(in millions) | Accumulated Benefit Obligation in Excess of Plan Assets | Plan Assets in Excess of Accumulated Benefit Obligation | ||||||||||||||
As of December 31, | 2016 | 2015 | 2016 | 2015 | ||||||||||||
Projected Benefit Obligation | $ | 193 | $ | 160 | $ | 206 | $ | 251 | ||||||||
Accumulated Benefit Obligation | $ | 189 | $ | 156 | $ | 206 | $ | 251 | ||||||||
Fair Value of Plan Assets | $ | 119 | $ | 88 | $ | 267 | $ | 296 |
OXY 2019 FORM 10-K | 101 |
FINANCIAL STATEMENTS FOOTNOTES |
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
millions | 2019 | 2018 | 2017 | 2019 | 2018 | 2017 | ||||||||||||||||||
Net periodic benefit costs: | ||||||||||||||||||||||||
Service cost — benefits earned during the period | $ | 45 | $ | 5 | $ | 6 | $ | 24 | $ | 23 | $ | 21 | ||||||||||||
Interest cost on projected benefit obligation | 39 | 15 | 17 | 36 | 34 | 38 | ||||||||||||||||||
Expected return on plan assets | (50 | ) | (25 | ) | (24 | ) | — | — | — | |||||||||||||||
Recognized actuarial loss | 9 | 7 | 10 | 8 | 14 | 14 | ||||||||||||||||||
Recognized prior service credit | — | — | — | (8 | ) | — | — | |||||||||||||||||
Liability (gain) loss due to curtailment | (91 | ) | — | — | 6 | — | — | |||||||||||||||||
Special termination benefits | 49 | — | — | — | — | — | ||||||||||||||||||
Other costs and adjustments | (2 | ) | 1 | 3 | — | (2 | ) | 1 | ||||||||||||||||
Net periodic benefit cost | $ | (1 | ) | $ | 3 | $ | 12 | $ | 66 | $ | 69 | $ | 74 |
Pension Benefits | Postretirement Benefits | |||||||||||||||||||||||
For the years ended December 31, (in millions) | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Net periodic benefit costs: | ||||||||||||||||||||||||
Service cost — benefits earned during the period | $ | 7 | $ | 7 | $ | 11 | $ | 19 | $ | 26 | $ | 24 | ||||||||||||
Interest cost on projected benefit obligation | 18 | 18 | 23 | 39 | 40 | 44 | ||||||||||||||||||
Expected return on plan assets | (24 | ) | (27 | ) | (33 | ) | — | — | — | |||||||||||||||
Recognized actuarial loss | 12 | 10 | 6 | 15 | 27 | 20 | ||||||||||||||||||
Other costs and adjustments | 4 | (4 | ) | (8 | ) | 1 | 1 | 1 | ||||||||||||||||
Net periodic benefit cost | $ | 17 | $ | 4 | $ | (1 | ) | $ | 74 | $ | 94 | $ | 89 |
Pension Benefits | Postretirement Benefits | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Benefit Obligation Assumptions: | ||||||||||||
Discount rate | 3.10 | % | 4.09 | % | 3.26 | % | 4.29 | % | ||||
Net Periodic Benefit Cost Assumptions: | ||||||||||||
Discount rate for January 1 - August 31 expense | 3.21 | % | 3.45 | % | 3.41 | % | 3.61 | % | ||||
Discount rate for September 1 - December 31 expense | 3.21 | % | 3.45 | % | 3.41 | % | 4.14 | % | ||||
Assumed long-term rate of return on assets | 6.50 | % | 6.50 | % | — | — | ||||||
Rates of increase in compensation levels | 5.44 | % | — | — | — |
Pension Benefits | Postretirement Benefits | |||||||||||
For the years ended December 31, | 2016 | 2015 | 2016 | 2015 | ||||||||
Benefit Obligation Assumptions: | ||||||||||||
Discount rate | 3.90 | % | 4.14 | % | 4.15 | % | 4.36 | % | ||||
Net Periodic Benefit Cost Assumptions: | ||||||||||||
Discount rate | 4.14 | % | 3.81 | % | 4.36 | % | 3.99 | % | ||||
Assumed long term rate of return on assets | 6.50 | % | 6.50 | % | — | — |
102 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
(in millions) | Fair Value Measurements at December 31, 2016 Using | |||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Asset Class: | ||||||||||||||||
U.S. government securities | $ | 13 | $ | — | $ | — | $ | 13 | ||||||||
Corporate bonds (a) | — | 85 | — | 85 | ||||||||||||
Common/collective trusts (b) | — | 18 | — | 18 | ||||||||||||
Mutual funds: | ||||||||||||||||
Bond funds | 18 | — | — | 18 | ||||||||||||
Blend funds | 48 | — | — | 48 | ||||||||||||
Common and preferred stocks (c) | 178 | — | — | 178 | ||||||||||||
Other | — | 29 | — | 29 | ||||||||||||
Total pension plan assets (d) | $ | 257 | $ | 132 | $ | — | $ | 389 |
(in millions) | Fair Value Measurements at December 31, 2015 Using | |||||||||||||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
millions | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||||||
December 31, 2019 | ||||||||||||||||||||||||||||||||
Asset Class: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 16 | $ | — | $ | — | $ | 16 | $ | 13 | $ | — | $ | — | $ | 13 | ||||||||||||||||
Corporate bonds (a) | — | 78 | — | 78 | — | 60 | — | 60 | ||||||||||||||||||||||||
Common/collective trusts (b) | — | 12 | — | 12 | ||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||
Bond funds | 46 | — | — | 46 | ||||||||||||||||||||||||||||
International funds | 68 | — | — | 68 | ||||||||||||||||||||||||||||
Common and preferred stocks (b) | 173 | — | — | 173 | ||||||||||||||||||||||||||||
Other | — | 29 | — | 29 | ||||||||||||||||||||||||||||
Investments measured at fair value | $ | 300 | $ | 89 | $ | — | $ | 389 | ||||||||||||||||||||||||
Investments measured at net asset value (c) | — | — | — | 1,253 | ||||||||||||||||||||||||||||
Total pension plan assets (d) | $ | 300 | $ | 89 | $ | — | $ | 1,642 | ||||||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||||||||||||||
Asset Class: | ||||||||||||||||||||||||||||||||
U.S. government securities | $ | 17 | $ | — | $ | — | $ | 17 | ||||||||||||||||||||||||
Corporate bonds (a) | — | 66 | — | 66 | ||||||||||||||||||||||||||||
Common/collective trusts (e) | — | 9 | — | 9 | ||||||||||||||||||||||||||||
Mutual funds: | ||||||||||||||||||||||||||||||||
Bond funds | 33 | — | — | 33 | 31 | — | — | 31 | ||||||||||||||||||||||||
Blend funds | 48 | — | — | 48 | 48 | — | — | 48 | ||||||||||||||||||||||||
Common and preferred stocks (c) | 169 | — | — | 169 | ||||||||||||||||||||||||||||
Common and preferred stocks (b) | 141 | — | — | 141 | ||||||||||||||||||||||||||||
Other | — | 29 | — | 29 | — | 31 | — | 31 | ||||||||||||||||||||||||
Total pension plan assets (d) | $ | 266 | $ | 119 | $ | — | $ | 385 | $ | 237 | $ | 106 | $ | — | $ | 343 |
(a) | This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries. |
(b) | This category |
(c) | This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries. |
(d) | Certain investments measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. |
(e) | Amounts exclude net payables of approximately $3 million and |
OXY 2019 FORM 10-K | 103 |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Pension Benefits | Postretirement Benefits | ||||||
2020 | $ | 810 | $ | 73 | ||||
2021 | $ | 113 | $ | 72 | ||||
2022 | $ | 125 | $ | 71 | ||||
2023 | $ | 128 | $ | 70 | ||||
2024 | $ | 124 | $ | 68 | ||||
2025 - 2029 | $ | 625 | $ | 321 |
For the years ended December 31, (in millions) | Pension Benefits | Postretirement Benefits | ||||||
2017 | $ | 41 | $ | 59 | ||||
2018 | $ | 30 | $ | 58 | ||||
2019 | $ | 28 | $ | 58 | ||||
2020 | $ | 29 | $ | 57 | ||||
2021 | $ | 29 | $ | 57 | ||||
2022 - 2026 | $ | 185 | $ | 285 |
NOTE | 16 - INVESTMENTS AND RELATED-PARTY TRANSACTIONS |
millions | % Interest | Carrying amount | |||||
WES | 56.3 | % | $ | 5,128 | |||
OxyChem Ingleside Facility | 50.0 | % | 679 | ||||
Dolphin Energy Limited | 24.5 | % | 240 | ||||
Other | various | 342 | |||||
Total | $ | 6,389 |
For the years ended December 31, (in millions) | 2016 | 2015 | 2014 | |||||||||
Revenues | $ | 1,238 | $ | 1,050 | $ | 3,090 | ||||||
Costs and expenses | 1,043 | 827 | 2,774 | |||||||||
Net income | $ | 195 | $ | 223 | $ | 316 | ||||||
As of December 31, (in millions) | 2016 | 2015 | ||||||||||
Current assets | $ | 914 | $ | 896 | ||||||||
Non-current assets | $ | 3,605 | $ | 3,589 | ||||||||
Current liabilities | $ | 577 | $ | 536 | ||||||||
Long-term debt | $ | 1,957 | $ | 2,141 | ||||||||
Other non-current liabilities | $ | 159 | $ | 149 | ||||||||
Stockholders’ equity | $ | 1,826 | $ | 1,659 |
millions | 2019 | 2018 | 2017 | |||||||||
Summarized Results of Operations(a) | ||||||||||||
Revenues and other income | $ | 26,520 | $ | 28,091 | $ | 13,843 | ||||||
Costs and expenses | 24,084 | 25,029 | 12,230 | |||||||||
Net income | $ | 2,436 | $ | 3,062 | $ | 1,613 | ||||||
Summarized Balance Sheet(b) | ||||||||||||
Current assets | $ | 1,130 | $ | 5,587 | $ | 5,754 | ||||||
Non-current assets | $ | 21,158 | $ | 25,871 | $ | 25,108 | ||||||
Current liabilities | $ | 785 | $ | 4,879 | $ | 4,479 | ||||||
Long-term debt | $ | 8,673 | $ | 12,505 | $ | 14,091 | ||||||
Other non-current liabilities | $ | 859 | $ | 95 | $ | 414 | ||||||
Stockholders’ equity | $ | 11,971 | $ | 13,979 | $ | 11,878 |
(a) | The 2019 Summarized Results of Operations include results of Plains for the period beginning January 1, 2019 through the date Occidental’s interest was sold in September 2019. |
(b) | The 2019 Summarized Balance Sheet included the balance of WES due to the loss of control on December 30, 2019 and excluded the balances of Plains as the interest was sold in September 2019. |
For the years ended December 31, (in millions) | 2016 | 2015 | 2014 | |||||||||
Sales (a) | $ | 602 | $ | 555 | $ | 835 | ||||||
Purchases | $ | 7 | $ | 26 | $ | 6 | ||||||
Services | $ | 17 | $ | 32 | $ | 27 | ||||||
Advances and amounts due from | $ | 59 | $ | 60 | $ | 26 | ||||||
Amounts due to | $ | — | $ | 5 | $ | 15 |
millions | 2019 | 2018 | 2017 | |||||||||
Sales (a,c) | $ | 691 | $ | 805 | $ | 636 | ||||||
Purchases (b,c) | $ | 463 | $ | 502 | $ | 387 | ||||||
Services | $ | 28 | $ | 52 | $ | 38 | ||||||
Advances and amounts due from related parties | $ | 133 | $ | 63 | $ | 63 | ||||||
Amounts due to related parties (d) | $ | 463 | $ | 46 | $ | 45 |
(a) | In |
(b) | In 2019 and 2018, purchases of ethylene from the Ingleside ethylene cracker accounted for 98 percent of related-party purchases, respectively. |
(c) | Excluded sales to |
(d) | Amounts due to related parties at December 31, 2019 primarily consists of a 6.5% note payable to |
NOTE | 17 - FAIR VALUE MEASUREMENTS |
104 | OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Fair Value Measurements Using | Total Fair Value | ||||||||||||||||||
Balance Sheet Classification | Level 1 | Level 2 | Level 3 | Netting | ||||||||||||||||
December 31, 2019 | ||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||
Accrued liabilities | $ | — | $ | 40 | $ | — | $ | — | $ | 40 | ||||||||||
Deferred credits and other liabilities - other | $ | — | $ | 49 | $ | — | $ | — | $ | 49 | ||||||||||
December 31, 2018 | ||||||||||||||||||||
Embedded Derivatives | ||||||||||||||||||||
Accrued liabilities | $ | — | $ | 66 | $ | — | $ | — | $ | 66 | ||||||||||
Deferred credits and other liabilities - other | $ | — | $ | 116 | $ | — | $ | — | $ | 116 |
(in millions) | Fair Value Measurements at December 31, 2016 Using | Netting and Collateral | Total Fair Value | |||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Liabilities: | ||||||||||||||||||||||
Embedded derivative | Accrued liabilities | $ | — | $ | 43 | $ | — | $ | — | $ | 43 | |||||||||||
Deferred credits and liabilities | $ | — | $ | 178 | $ | — | $ | — | $ | 178 |
(in millions) | Fair Value Measurements at December 31, 2015 Using | Netting and Collateral | Total Fair Value | |||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | |||||||||||||||||||
Assets: | ||||||||||||||||||||||
Available for sale investment | $ | 167 | $ | — | $ | — | $ | — | $ | 167 | ||||||||||||
Liabilities: | ||||||||||||||||||||||
Embedded derivative | Accrued liabilities | $ | — | $ | 47 | $ | — | $ | — | $ | 47 | |||||||||||
Deferred credits and liabilities | $ | — | $ | 267 | $ | — | $ | — | $ | 267 |
(in millions) | Fair Value Measurements at December 31, 2015 Using | Net Book Value (a) | Total Pre-tax (Non-cash) Impairment Loss | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Assets: | ||||||||||||||||||||
Impaired proved oil and gas assets - international | $ | — | $ | — | $ | 2,666 | $ | 7,359 | $ | 4,693 | ||||||||||
Impaired proved oil and gas assets - domestic | $ | — | $ | — | $ | 625 | $ | 1,655 | $ | 1,030 | ||||||||||
Impaired Midstream assets | $ | — | $ | — | $ | 50 | $ | 891 | $ | 841 | ||||||||||
Impaired Chemical property, plant, and equipment | $ | — | $ | — | $ | 3 | $ | 124 | $ | 121 | ||||||||||
(in millions) | Fair Value Measurements at September 30, 2015 Using | Net Book Value (a) | Total Pre-tax (Non-cash) Impairment Loss | |||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | |||||||||||||||||
Williston proved oil and gas assets (b) | $ | — | $ | — | $ | 615 | $ | 1,378 | $ | 763 |
NOTE | 18 - INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS |
OXY 2019 FORM 10-K | 105 |
Industry Segments | ||||||||||||||||||||
(in millions) | Oil and Gas | Chemical | Midstream and Marketing | Corporate and Eliminations | Total | |||||||||||||||
Year ended December 31, 2016 | ||||||||||||||||||||
Net sales | $ | 6,377 | (a) | $ | 3,756 | (b) | $ | 684 | (c) | $ | (727 | ) | $ | 10,090 | ||||||
Pretax operating profit (loss) | $ | (636 | ) | (d) | $ | 571 | (e) | $ | (381 | ) | (f) | $ | (1,218 | ) | (g) | $ | (1,664 | ) | ||
Income taxes | — | — | — | 662 | (h) | 662 | ||||||||||||||
Discontinued operations, net | — | — | — | 428 | (i) | 428 | ||||||||||||||
Net income (loss) attributable to common stock | $ | (636 | ) | $ | 571 | $ | (381 | ) | $ | (128 | ) | $ | (574 | ) | ||||||
Investments in unconsolidated entities | $ | — | $ | 730 | $ | 666 | $ | 5 | $ | 1,401 | ||||||||||
Property, plant and equipment additions, net (k) | $ | 1,998 | $ | 353 | $ | 370 | $ | 59 | $ | 2,780 | ||||||||||
Depreciation, depletion and amortization | $ | 3,575 | $ | 340 | $ | 313 | $ | 40 | $ | 4,268 | ||||||||||
Total assets | $ | 24,130 | $ | 4,348 | $ | 11,059 | $ | 3,572 | $ | 43,109 | ||||||||||
Year ended December 31, 2015 | ||||||||||||||||||||
Net sales | $ | 8,304 | (a) | $ | 3,945 | (b) | $ | 891 | (c) | $ | (660 | ) | $ | 12,480 | ||||||
Pretax operating profit (loss) | $ | (8,060 | ) | (d) | $ | 542 | (e) | $ | (1,194 | ) | (f) | $ | (764 | ) | (g) | $ | (9,476 | ) | ||
Income taxes | — | — | — | 1,330 | (j) | 1,330 | ||||||||||||||
Discontinued operations, net | $ | — | — | — | 317 | (i) | 317 | |||||||||||||
Net income (loss) attributable to common stock | $ | (8,060 | ) | $ | 542 | $ | (1,194 | ) | $ | 883 | $ | (7,829 | ) | |||||||
Investments in unconsolidated entities | $ | 4 | $ | 550 | $ | 708 | $ | 5 | $ | 1,267 | ||||||||||
Property, plant and equipment additions, net (k) | $ | 4,485 | $ | 271 | $ | 611 | $ | 42 | $ | 5,409 | ||||||||||
Depreciation, depletion and amortization | $ | 3,886 | $ | 371 | $ | 249 | $ | 38 | $ | 4,544 | ||||||||||
Total assets | $ | 23,591 | $ | 3,982 | $ | 10,175 | $ | 5,661 | $ | 43,409 | ||||||||||
Year ended December 31, 2014 | ||||||||||||||||||||
Net sales | $ | 13,887 | (a) | $ | 4,817 | (b) | $ | 1,373 | (c) | $ | (765 | ) | $ | 19,312 | ||||||
Pretax operating profit (loss) | $ | 428 | (d) | $ | 420 | (e) | $ | 2,578 | (f) | $ | (1,871 | ) | (g) | $ | 1,555 | |||||
Net income attributable to noncontrolling interest | (14 | ) | (14 | ) | ||||||||||||||||
Income taxes | (1,685 | ) | (h) | (1,685 | ) | |||||||||||||||
Discontinued operations, net | — | — | — | 760 | (j) | 760 | ||||||||||||||
Net income (loss) attributable to common stock | $ | 428 | $ | 420 | $ | 2,564 | $ | (2,796 | ) | $ | 616 | |||||||||
Investments in unconsolidated entities | $ | 11 | $ | 202 | $ | 948 | $ | 10 | $ | 1,171 | ||||||||||
Property, plant and equipment additions, net (l) | $ | 6,589 | $ | 325 | $ | 2,093 | $ | 103 | $ | 9,110 | ||||||||||
Depreciation, depletion and amortization | $ | 3,701 | $ | 367 | $ | 160 | $ | 33 | $ | 4,261 | ||||||||||
Total assets | $ | 31,072 | $ | 3,917 | $ | 12,283 | $ | 8,965 | $ | 56,237 | ||||||||||
(See footnotes on next page) |
FINANCIAL STATEMENTS FOOTNOTES |
millions | Oil and Gas | Chemical | Marketing and Midstream | Corporate and Eliminations | Total | ||||||||||||||
Year ended December 31, 2019 | |||||||||||||||||||
Net sales | $ | 13,423 | $ | 4,102 | $ | 4,132 | $ | (1,264 | ) | $ | 20,393 | ||||||||
Income (loss) from continuing operations before income taxes | $ | 2,352 | (a) | $ | 799 | $ | 241 | (b) | $ | (3,206 | ) | (c) | $ | 186 | |||||
Income tax expense | — | — | — | (693 | ) | (d) | (693 | ) | |||||||||||
Income (loss) from continuing operations | $ | 2,352 | $ | 799 | $ | 241 | $ | (3,899 | ) | $ | (507 | ) | |||||||
Investments in unconsolidated entities | $ | 181 | $ | 689 | $ | 5,519 | $ | — | $ | 6,389 | |||||||||
Property, plant and equipment additions(e) | $ | 5,559 | $ | 272 | $ | 475 | $ | 135 | $ | 6,441 | |||||||||
Depreciation, depletion and amortization | $ | 4,994 | $ | 368 | $ | 563 | $ | 56 | $ | 5,981 | |||||||||
Total assets | $ | 77,936 | $ | 4,361 | $ | 17,055 | $ | 9,978 | $ | 109,330 | |||||||||
Year ended December 31, 2018 | |||||||||||||||||||
Net sales | $ | 10,441 | $ | 4,657 | $ | 3,656 | $ | (930 | ) | $ | 17,824 | ||||||||
Income (loss) from continuing operations before income taxes | $ | 2,442 | (a) | $ | 1,159 | $ | 2,802 | (b) | $ | (795 | ) | (c) | $ | 5,608 | |||||
Income tax expense | — | — | — | (1,477 | ) | (d) | (1,477 | ) | |||||||||||
Income (loss) from continuing operations | $ | 2,442 | $ | 1,159 | $ | 2,802 | $ | (2,272 | ) | $ | 4,131 | ||||||||
Investments in unconsolidated entities | $ | — | $ | 733 | $ | 947 | $ | — | $ | 1,680 | |||||||||
Property, plant and equipment additions(e) | $ | 4,443 | $ | 277 | $ | 221 | $ | 79 | $ | 5,020 | |||||||||
Depreciation, depletion and amortization | $ | 3,254 | $ | 354 | $ | 331 | $ | 38 | $ | 3,977 | |||||||||
Total assets | $ | 24,874 | $ | 4,359 | $ | 11,087 | $ | 3,534 | $ | 43,854 | |||||||||
Year ended December 31, 2017 | |||||||||||||||||||
Net sales | $ | 7,870 | $ | 4,355 | $ | 1,157 | $ | (874 | ) | $ | 12,508 | ||||||||
Income (loss) from continuing operations before income taxes | $ | 1,111 | (a) | $ | 822 | $ | 85 | (b) | $ | (690 | ) | (c) | $ | 1,328 | |||||
Income tax expense | — | — | — | (17 | ) | (d) | (17 | ) | |||||||||||
Income (loss) from continuing operations | $ | 1,111 | $ | 822 | $ | 85 | $ | (707 | ) | $ | 1,311 | ||||||||
Investments in unconsolidated entities | $ | — | $ | 771 | $ | 739 | $ | 5 | $ | 1,515 | |||||||||
Property, plant and equipment additions(e) | $ | 2,968 | $ | 323 | $ | 296 | $ | 64 | $ | 3,651 | |||||||||
Depreciation, depletion and amortization | $ | 3,269 | $ | 352 | $ | 340 | $ | 41 | $ | 4,002 | |||||||||
Total assets | $ | 23,595 | $ | 4,364 | $ | 11,775 | $ | 2,292 | $ | 42,026 |
(a) |
(b) |
Basic Chemicals | Vinyls | Other Chemicals | ||||
Year ended December 31, 2016 | 57% | 40% | 3% | |||
Year ended December 31, 2015 | 56% | 40% | 4% | |||
Year ended December 31, 2014 | 54% | 43% | 3% |
Gas Processing | Power | Marketing, Transportation and other * | ||||
Year ended December 31, 2016 | 92% | 44% | (36)% | |||
Year ended December 31, 2015 | 70% | 31% | (1)% | |||
Year ended December 31, 2014 | 49% | 31% | 20% |
The |
(c) | The |
(d) |
(e) |
Benefit (Charge) (in millions) | 2016 | 2015 | 2014 | |||||||||
CORPORATE | ||||||||||||
Pre-tax operating profit (loss) | ||||||||||||
Asset sale losses | $ | — | $ | (8 | ) | $ | — | |||||
Asset impairments and related items | (619 | ) | (235 | ) | (1,358 | ) | ||||||
Severance, spin-off and other | — | (118 | ) | (61 | ) | |||||||
$ | (619 | ) | $ | (361 | ) | $ | (1,419 | ) | ||||
Income taxes | ||||||||||||
Tax effect of pre-tax and other adjustments * | $ | 424 | $ | 1,903 | $ | 927 |
(in millions) | Net sales (a) | Property, plant and equipment, net | ||||||||||||||||||||||
For the years ended December 31, | 2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
United States | $ | 6,290 | $ | 7,479 | $ | 11,943 | $ | 24,004 | $ | 23,265 | $ | 26,673 | ||||||||||||
Foreign | ||||||||||||||||||||||||
Oman | 1,101 | 1,631 | 2,524 | 1,858 | 1,292 | 2,876 | ||||||||||||||||||
Qatar | 1,206 | 1,449 | 2,803 | 1,299 | 1,354 | 2,605 | ||||||||||||||||||
Colombia | 463 | 570 | 938 | 741 | 821 | 1,396 | ||||||||||||||||||
United Arab Emirates | 664 | 477 | — | 4,373 | 4,484 | 4,312 | ||||||||||||||||||
Other Foreign | 366 | 874 | 1,104 | 62 | 423 | 1,868 | ||||||||||||||||||
Total Foreign | 3,800 | 5,001 | 7,369 | 8,333 | 8,374 | 13,057 | ||||||||||||||||||
Total | $ | 10,090 | $ | 12,480 | $ | 19,312 | $ | 32,337 | $ | 31,639 | $ | 39,730 |
OXY 2019 FORM 10-K |
FINANCIAL STATEMENTS FOOTNOTES |
Property, plant and equipment, net | ||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||
United States | $ | 72,808 | $ | 23,594 | $ | 22,863 | ||||||
International | ||||||||||||
United Arab Emirates | 3,887 | 4,051 | 4,241 | |||||||||
Oman | 2,115 | 2,048 | 1,962 | |||||||||
Colombia | 1,010 | 927 | 807 | |||||||||
Qatar | 562 | 741 | 1,236 | |||||||||
Other International | 87 | 76 | 65 | |||||||||
Total International | 7,661 | 7,843 | 8,311 | |||||||||
Total | $ | 80,469 | $ | 31,437 | $ | 31,174 |
For the years ended December 31, (in millions) | 2014 | |||
Sales and other operating revenue from discontinued operations | $ | 3,951 | ||
Income from discontinued operations before-tax | 1,205 | |||
Income tax expense | 440 | |||
Income from discontinued operations | $ | 765 |
OXY 2019 FORM 10-K | 107 |
Supplemental Quarterly Information (Unaudited) |
Quarterly Financial Data | Occidental Petroleum Corporation and Subsidiaries |
Three months ended | March 31 | June 30 | September 30 | December 31 | |||||||||||||||||||||||||||||
millions except per-share amounts | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||||||||||||
2019 | |||||||||||||||||||||||||||||||||
Segment net sales | |||||||||||||||||||||||||||||||||
Oil and gas | $ | 1,275 | $ | 1,625 | $ | 1,660 | $ | 1,817 | $ | 2,351 | $ | 2,718 | $ | 3,821 | $ | 4,533 | |||||||||||||||||
Chemical | 890 | 908 | 988 | 970 | 1,059 | 998 | 1,071 | 974 | |||||||||||||||||||||||||
Midstream and marketing | 133 | 141 | 202 | 208 | |||||||||||||||||||||||||||||
Marketing and Midstream(a) | 816 | 909 | 1,163 | 1,244 | |||||||||||||||||||||||||||||
Eliminations | (175 | ) | (143 | ) | (202 | ) | (207 | ) | (222 | ) | (205 | ) | (368 | ) | (469 | ) | |||||||||||||||||
Net sales | $ | 2,123 | $ | 2,531 | $ | 2,648 | $ | 2,788 | $ | 4,004 | $ | 4,420 | $ | 5,687 | $ | 6,282 | |||||||||||||||||
Gross profit | $ | (335 | ) | $ | 143 | $ | 203 | $ | 345 | $ | 1,210 | $ | 1,449 | $ | 1,422 | $ | 1,287 | ||||||||||||||||
Segment earnings | |||||||||||||||||||||||||||||||||
Oil and gas | $ | (485 | ) | (a) | $ | (117 | ) | $ | (51 | ) | (a) | $ | 17 | (a) | $ | 484 | $ | 726 | $ | 221 | $ | 921 | |||||||||||
Chemical | 214 | (b) | 88 | 117 | 152 | 265 | 208 | 207 | 119 | ||||||||||||||||||||||||
Midstream and marketing | (95 | ) | (58 | ) | (180 | ) | (c) | (48 | ) | ||||||||||||||||||||||||
(366 | ) | (87 | ) | (114 | ) | 121 | |||||||||||||||||||||||||||
Marketing and Midstream(a) | 279 | 331 | 400 | (769 | ) | ||||||||||||||||||||||||||||
Total segment earnings | $ | 1,028 | $ | 1,265 | $ | 828 | $ | 271 | |||||||||||||||||||||||||
Unallocated corporate items | |||||||||||||||||||||||||||||||||
Interest expense, net | (57 | ) | (84 | ) | (62 | ) | (72 | ) | (83 | ) | (143 | ) | (360 | ) | (416 | ) | |||||||||||||||||
Income taxes | 203 | 96 | 30 | 333 | (225 | ) | (306 | ) | (116 | ) | (46 | ) | |||||||||||||||||||||
Other | (140 | ) | (d) | (61 | ) | (92 | ) | (650 | ) | (d) | (89 | ) | (181 | ) | (1,089 | ) | (845 | ) | |||||||||||||||
Income (loss) from continuing operations | (360 | ) | (136 | ) | (238 | ) | (268 | ) | $ | 631 | $ | 635 | $ | (737 | ) | $ | (1,036 | ) | |||||||||||||||
Discontinued operations, net | 438 | (e) | (3 | ) | (3 | ) | (4 | ) | |||||||||||||||||||||||||
Net income (loss) attributable to common stock | $ | 78 | $ | (139 | ) | $ | (241 | ) | $ | (272 | ) | ||||||||||||||||||||||
Basic earnings per common share | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.47 | ) | $ | (0.18 | ) | $ | (0.31 | ) | $ | (0.35 | ) | |||||||||||||||||||||
Discontinued operations, net | 0.57 | — | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Basic earnings per common share | $ | 0.10 | $ | (0.18 | ) | $ | (0.32 | ) | $ | (0.36 | ) | ||||||||||||||||||||||
Diluted earnings per common share | |||||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | (0.47 | ) | $ | (0.18 | ) | $ | (0.31 | ) | $ | (0.35 | ) | |||||||||||||||||||||
Discontinued operations, net | 0.57 | — | (0.01 | ) | (0.01 | ) | |||||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.10 | $ | (0.18 | ) | $ | (0.32 | ) | $ | (0.36 | ) | ||||||||||||||||||||||
Discontinued operates, net of taxes | — | — | (15 | ) | — | ||||||||||||||||||||||||||||
Net Income (loss) | $ | 631 | $ | 635 | $ | (752 | ) | $ | (1,036 | ) | |||||||||||||||||||||||
Less: Net income attributable to noncontrolling interests | — | — | (42 | ) | (103 | ) | |||||||||||||||||||||||||||
Less: Preferred stock dividend | — | — | (118 | ) | (200 | ) | |||||||||||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | 631 | $ | 635 | $ | (912 | ) | $ | (1,339 | ) | |||||||||||||||||||||||
Basic earnings (loss) per common share | $ | 0.84 | $ | 0.84 | $ | (1.08 | ) | $ | (1.50 | ) | |||||||||||||||||||||||
Diluted earnings (loss) per common share | $ | 0.84 | $ | 0.84 | $ | (1.08 | ) | $ | (1.50 | ) | |||||||||||||||||||||||
Dividends per common share | $ | 0.75 | $ | 0.75 | $ | 0.76 | $ | 0.76 | $ | 0.78 | $ | 0.78 | $ | 0.79 | $ | 0.79 | |||||||||||||||||
Market price per common share | |||||||||||||||||||||||||||||||||
High | $ | 72.19 | $ | 78.31 | $ | 78.48 | $ | 75.60 | |||||||||||||||||||||||||
Low | $ | 58.24 | $ | 66.94 | $ | 67.83 | $ | 64.37 | |||||||||||||||||||||||||
2018 | |||||||||||||||||||||||||||||||||
Segment net sales | |||||||||||||||||||||||||||||||||
Oil and gas | $ | 2,454 | $ | 2,531 | $ | 2,889 | $ | 2,567 | |||||||||||||||||||||||||
Chemical | 1,154 | 1,176 | 1,185 | 1,142 | |||||||||||||||||||||||||||||
Marketing and Midstream | 389 | 603 | 1,367 | 1,297 | |||||||||||||||||||||||||||||
Eliminations | (234 | ) | (227 | ) | (225 | ) | (244 | ) | |||||||||||||||||||||||||
Net sales | $ | 3,763 | $ | 4,083 | $ | 5,216 | $ | 4,762 | |||||||||||||||||||||||||
Gross profit | $ | 1,371 | $ | 1,556 | $ | 2,297 | $ | 1,616 | |||||||||||||||||||||||||
Segment earnings | |||||||||||||||||||||||||||||||||
Oil and gas | $ | 750 | $ | 780 | $ | 767 | $ | 145 | |||||||||||||||||||||||||
Chemical | 298 | 317 | 321 | 223 | |||||||||||||||||||||||||||||
Marketing and Midstream | 179 | 250 | 1,698 | 675 | |||||||||||||||||||||||||||||
Total segment earnings | $ | 1,227 | $ | 1,347 | $ | 2,786 | $ | 1,043 | |||||||||||||||||||||||||
Unallocated corporate items | |||||||||||||||||||||||||||||||||
Interest expense, net | (92 | ) | (91 | ) | (92 | ) | (81 | ) | |||||||||||||||||||||||||
Income taxes | (339 | ) | (302 | ) | (710 | ) | (126 | ) | |||||||||||||||||||||||||
Other | (88 | ) | (106 | ) | (115 | ) | (130 | ) | |||||||||||||||||||||||||
Net income attributable to common stockholders | $ | 708 | $ | 848 | $ | 1,869 | $ | 706 | |||||||||||||||||||||||||
Basic earnings per common share | $ | 0.92 | $ | 1.10 | $ | 2.44 | $ | 0.93 | |||||||||||||||||||||||||
Diluted earnings per common share | $ | 0.92 | $ | 1.10 | $ | 2.44 | $ | 0.93 | |||||||||||||||||||||||||
Dividends per common share | $ | 0.77 | $ | 0.77 | $ | 0.78 | $ | 0.78 |
(a) |
OXY 2019 FORM 10-K |
Three months ended | March 31 | June 30 | September 30 | December 31 | |||||||||||||
Segment net sales | |||||||||||||||||
Oil and gas | $ | 2,009 | $ | 2,342 | $ | 2,054 | $ | 1,899 | |||||||||
Chemical | 1,000 | 1,030 | 1,008 | 907 | |||||||||||||
Midstream and marketing | 197 | 294 | 231 | 169 | |||||||||||||
Eliminations | (117 | ) | (197 | ) | (177 | ) | (169 | ) | |||||||||
Net sales | $ | 3,089 | $ | 3,469 | $ | 3,116 | $ | 2,806 | |||||||||
Gross profit | $ | 396 | $ | 766 | $ | 501 | $ | 126 | |||||||||
Segment earnings | |||||||||||||||||
Oil and gas | $ | (266 | ) | (a) | $ | 355 | $ | (3,128 | ) | (a) | $ | (5,021 | ) | (a) | |||
Chemical | 139 | 136 | 272 | (b) | (5 | ) | (b) | ||||||||||
Midstream and marketing(c) | (15 | ) | 87 | 24 | (1,290 | ) | (d) | ||||||||||
(142 | ) | 578 | (2,832 | ) | (6,316 | ) | |||||||||||
Unallocated corporate items | |||||||||||||||||
Interest expense, net | (28 | ) | (7 | ) | (47 | ) | (59 | ) | |||||||||
Income taxes | 19 | (324 | ) | 445 | 1,190 | ||||||||||||
Other | (64 | ) | (67 | ) | (172 | ) | (d) | (320 | ) | (e) | |||||||
Income from continuing operations (c) | (215 | ) | 180 | (2,606 | ) | (5,505 | ) | ||||||||||
Discontinued operations, net | (3 | ) | (4 | ) | (3 | ) | 327 | ||||||||||
Net income | $ | (218 | ) | $ | 176 | $ | (2,609 | ) | $ | (5,178 | ) | ||||||
Basic earnings per common share | |||||||||||||||||
Income (loss) from continuing operations | $ | (0.28 | ) | $ | 0.23 | $ | (3.41 | ) | $ | (7.21 | ) | ||||||
Discontinued operations, net | — | — | (0.01 | ) | 0.43 | ||||||||||||
Basic earnings per common share | $ | (0.28 | ) | $ | 0.23 | $ | (3.42 | ) | $ | (6.78 | ) | ||||||
Diluted earnings per common share | |||||||||||||||||
Income (loss) from continuing operations | $ | (0.28 | ) | $ | 0.23 | $ | (3.41 | ) | $ | (7.21 | ) | ||||||
Discontinued operations, net | — | — | (0.01 | ) | 0.43 | ||||||||||||
Diluted earnings per common share | $ | (0.28 | ) | $ | 0.23 | $ | (3.42 | ) | $ | (6.78 | ) | ||||||
Dividends per common share | $ | 0.72 | $ | 0.75 | $ | 0.75 | $ | 0.75 | |||||||||
Market price per common share | |||||||||||||||||
High | $ | 83.74 | $ | 82.06 | $ | 77.76 | $ | 77.37 | |||||||||
Low | $ | 71.70 | $ | 73.35 | $ | 63.60 | $ | 64.89 |
2019 | 2018 | 2017 | ||||
Average WTI oil price (per barrel) | $55.69 | $65.56 | $51.34 | |||
Average Brent price (per barrel) | $63.03 | $72.20 | $54.93 | |||
Average Henry Hub natural gas price (per MMBtu) | $2.58 | $3.10 | $2.98 |
109 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
Oil Reserves | ||||||||||||||||||||||||
in millions of barrels (MMbbl) | ||||||||||||||||||||||||
United | Latin | Middle East/ | ||||||||||||||||||||||
States | America | North Africa (a) | Total | |||||||||||||||||||||
millions of barrels (MMbbl) | United States | Latin America | Middle East (b) | Total | ||||||||||||||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||||||||||||||
Balance at December 31, 2013 | 1,131 | 88 | 394 | 1,613 | ||||||||||||||||||||
Balance at December 31, 2016 | 960 | 71 | 326 | 1,357 | ||||||||||||||||||||
Revisions of previous estimates | (54 | ) | 6 | 40 | (8 | ) | 66 | 14 | 33 | 113 | ||||||||||||||
Improved recovery | 224 | 9 | 32 | 265 | 97 | 8 | 17 | 122 | ||||||||||||||||
Extensions and discoveries | 15 | — | 2 | 17 | — | — | 5 | 5 | ||||||||||||||||
Purchases of proved reserves | 33 | — | — | 33 | 70 | — | — | 70 | ||||||||||||||||
Sales of proved reserves (b) | (9 | ) | — | — | (9 | ) | ||||||||||||||||||
Sales of proved reserves | (13 | ) | — | — | (13 | ) | ||||||||||||||||||
Production | (67 | ) | (11 | ) | (63 | ) | (141 | ) | (73 | ) | (11 | ) | (55 | ) | (139 | ) | ||||||||
Balance at December 31, 2014 | 1,273 | 92 | 405 | 1,770 | ||||||||||||||||||||
Revisions of previous estimates (c) | (220 | ) | (10 | ) | 22 | (208 | ) | |||||||||||||||||
Improved recovery | 81 | 8 | 12 | 101 | ||||||||||||||||||||
Extensions and discoveries | — | — | 2 | 2 | ||||||||||||||||||||
Purchases of proved reserves | — | — | — | — | ||||||||||||||||||||
Sales of proved reserves (b) | (146 | ) | — | (51 | ) | (197 | ) | |||||||||||||||||
Production | (73 | ) | (13 | ) | (73 | ) | (159 | ) | ||||||||||||||||
Balance at December 31, 2015 | 915 | 77 | 317 | 1,309 | ||||||||||||||||||||
Balance at December 31, 2017 | 1,107 | 82 | 326 | 1,515 | ||||||||||||||||||||
Revisions of previous estimates | (90 | ) | 4 | 86 | — | 15 | (2 | ) | (7 | ) | 6 | |||||||||||||
Improved recovery | 114 | 2 | 9 | 125 | 135 | 23 | 31 | 189 | ||||||||||||||||
Extensions and discoveries | — | — | 2 | 2 | — | 4 | 2 | 6 | ||||||||||||||||
Purchases of proved reserves | 90 | — | — | 90 | 32 | — | — | 32 | ||||||||||||||||
Sales of proved reserves (b) | — | — | (26 | ) | (26 | ) | ||||||||||||||||||
Sales of proved reserves | (12 | ) | — | — | (12 | ) | ||||||||||||||||||
Production | (69 | ) | (12 | ) | (62 | ) | (143 | ) | (91 | ) | (11 | ) | (51 | ) | (153 | ) | ||||||||
Balance at December 31, 2016 | 960 | 71 | 326 | 1,357 | ||||||||||||||||||||
Balance at December 31, 2018 | 1,186 | 96 | 301 | 1,583 | ||||||||||||||||||||
Revisions of previous estimates (c) | (154 | ) | 3 | 15 | (136 | ) | ||||||||||||||||||
Improved recovery | 128 | 12 | 25 | 165 | ||||||||||||||||||||
Extensions and discoveries | 37 | 2 | 2 | 41 | ||||||||||||||||||||
Purchases of proved reserves (d) | 545 | — | — | 545 | ||||||||||||||||||||
Sales of proved reserves | (17 | ) | — | — | (17 | ) | ||||||||||||||||||
Production | (155 | ) | (12 | ) | (44 | ) | (211 | ) | ||||||||||||||||
Balance at December 31, 2019 | 1,570 | 101 | 299 | 1,970 | ||||||||||||||||||||
PROVED DEVELOPED RESERVES | ||||||||||||||||||||||||
December 31, 2013 | 822 | 76 | 281 | 1,179 | ||||||||||||||||||||
December 31, 2014 | 819 | 86 | 316 | 1,221 | ||||||||||||||||||||
December 31, 2015 | 673 | 77 | 278 | 1,028 | ||||||||||||||||||||
December 31, 2016 (d) | 670 | 69 | 298 | 1,037 | ||||||||||||||||||||
December 31, 2016 | 670 | 69 | 298 | 1,037 | ||||||||||||||||||||
December 31, 2017 | 772 | 77 | 279 | 1,128 | ||||||||||||||||||||
December 31, 2018 | 843 | 77 | 240 | 1,160 | ||||||||||||||||||||
December 31, 2019 (e) | 1,206 | 76 | 226 | 1,508 | ||||||||||||||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||||||||||||||
December 31, 2013 | 309 | 12 | 113 | 434 | ||||||||||||||||||||
December 31, 2014 | 454 | 6 | 89 | 549 | ||||||||||||||||||||
December 31, 2015 | 242 | — | 39 | 281 | ||||||||||||||||||||
December 31, 2016 (e) | 290 | 2 | 28 | 320 | ||||||||||||||||||||
December 31, 2016 | 290 | 2 | 28 | 320 | ||||||||||||||||||||
December 31, 2017 | 335 | 5 | 47 | 387 | ||||||||||||||||||||
December 31, 2018 | 343 | 19 | 61 | 423 | ||||||||||||||||||||
December 31, 2019 | 364 | 25 | 73 | 462 |
(a) | Excluded reserve amounts related to the Africa Assets. |
(b) | A majority of the proved reserve amounts relate to PSCs and other similar economic arrangements. |
(c) |
(d) |
(e) | Approximately |
110 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
millions of barrels (MMbbl) | United States | Latin America | Middle East | Total | ||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance at December 31, 2016 | 219 | — | 201 | 420 | ||||||||
Revisions of previous estimates | 11 | — | (2 | ) | 9 | |||||||
Improved recovery | 23 | — | 10 | 33 | ||||||||
Extensions and discoveries | — | — | — | — | ||||||||
Purchases of proved reserves | 21 | — | — | 21 | ||||||||
Sales of proved reserves | (7 | ) | — | — | (7 | ) | ||||||
Production | (20 | ) | — | (11 | ) | (31 | ) | |||||
Balance at December 31, 2017 | 247 | — | 198 | 445 | ||||||||
Revisions of previous estimates | 7 | — | 15 | 22 | ||||||||
Improved recovery | 47 | — | — | 47 | ||||||||
Extensions and discoveries | — | — | — | — | ||||||||
Purchases of proved reserves | 11 | — | — | 11 | ||||||||
Sales of proved reserves | (3 | ) | — | — | (3 | ) | ||||||
Production | (25 | ) | — | (11 | ) | (36 | ) | |||||
Balance at December 31, 2018 | 284 | — | 202 | 486 | ||||||||
Revisions of previous estimates (b) | (21 | ) | — | 10 | (11 | ) | ||||||
Improved recovery | 58 | — | — | 58 | ||||||||
Extensions and discoveries | 11 | — | — | 11 | ||||||||
Purchases of proved reserves (c) | 267 | — | — | 267 | ||||||||
Sales of proved reserves | (7 | ) | — | — | (7 | ) | ||||||
Production | (52 | ) | — | (12 | ) | (64 | ) | |||||
Balance at December 31, 2019 | 540 | — | 200 | 740 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 149 | — | 164 | 313 | ||||||||
December 31, 2017 | 161 | — | 153 | 314 | ||||||||
December 31, 2018 | 196 | — | 145 | 341 | ||||||||
December 31, 2019 (d) | 406 | — | 141 | 547 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 70 | — | 37 | 107 | ||||||||
December 31, 2017 | 86 | — | 45 | 131 | ||||||||
December 31, 2018 | 88 | — | 57 | 145 | ||||||||
December 31, 2019 | 134 | — | 59 | 193 |
(a) | Excluded reserve amounts related to the Africa Assets. |
(b) |
NGLs Reserves | ||||||||||||
in millions of barrels (MMbbl) | ||||||||||||
United | Latin | Middle East/ | ||||||||||
States | America | North Africa | Total | |||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance at December 31, 2013 | 204 | — | 134 | 338 | ||||||||
Revisions of previous estimates | 6 | — | 8 | 14 | ||||||||
Improved recovery | 37 | — | — | 37 | ||||||||
Extensions and discoveries | 2 | — | — | 2 | ||||||||
Purchases of proved reserves | 3 | — | — | 3 | ||||||||
Sales of proved reserves (a) | (10 | ) | — | — | (10 | ) | ||||||
Production | (20 | ) | — | (2 | ) | (22 | ) | |||||
Balance at December 31, 2014 | 222 | — | 140 | 362 | ||||||||
Revisions of previous estimates (b) | (28 | ) | — | 10 | (18 | ) | ||||||
Improved recovery | 12 | — | 1 | 13 | ||||||||
Extensions and discoveries | — | — | — | — | ||||||||
Purchases of proved reserves | — | — | — | — | ||||||||
Sales of proved reserves | — | — | — | — | ||||||||
Production | (20 | ) | — | (7 | ) | (27 | ) | |||||
Balance at December 31, 2015 | 186 | — | 144 | 330 | ||||||||
Revisions of previous estimates | 1 | — | 70 | 71 | ||||||||
Improved recovery | 28 | — | — | 28 | ||||||||
Extensions and discoveries | — | — | — | — | ||||||||
Purchases of proved reserves | 26 | — | — | 26 | ||||||||
Sales of proved reserves | (3 | ) | — | (2 | ) | (5 | ) | |||||
Production | (19 | ) | — | (11 | ) | (30 | ) | |||||
Balance, December 31, 2016 | 219 | — | 201 | 420 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 151 | — | 51 | 202 | ||||||||
December 31, 2014 | 147 | — | 109 | 256 | ||||||||
December 31, 2015 | 141 | — | 112 | 253 | ||||||||
December 31, 2016 (c) | 149 | — | 164 | 313 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 53 | — | 83 | 136 | ||||||||
December 31, 2014 | 75 | — | 31 | 106 | ||||||||
December 31, 2015 | 45 | — | 32 | 77 | ||||||||
December 31, 2016 (d) | 70 | — | 37 | 107 |
(c) |
(d) | Approximately |
OXY 2019 FORM 10-K | 111 |
Supplemental Oil and Gas Information (Unaudited) |
billions of cubic feet (Bcf) | United States | Latin America | Middle East (b) | Total | ||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance at December 31, 2016 | 1,045 | 6 | 2,723 | 3,774 | ||||||||
Revisions of previous estimates | 197 | 8 | (33 | ) | 172 | |||||||
Improved recovery | 167 | 1 | 106 | 274 | ||||||||
Extensions and discoveries | — | — | 3 | 3 | ||||||||
Purchases of proved reserves | 50 | — | — | 50 | ||||||||
Sales of proved reserves | (146 | ) | — | — | (146 | ) | ||||||
Production | (108 | ) | (3 | ) | (185 | ) | (296 | ) | ||||
Balance at December 31, 2017 | 1,205 | 12 | 2,614 | 3,831 | ||||||||
Revisions of previous estimates | (25 | ) | — | 191 | 166 | |||||||
Improved recovery | 329 | 1 | 17 | 347 | ||||||||
Extensions and discoveries | — | — | 4 | 4 | ||||||||
Purchases of proved reserves | 69 | — | — | 69 | ||||||||
Sales of proved reserves | (14 | ) | — | — | (14 | ) | ||||||
Production | (119 | ) | (2 | ) | (187 | ) | (308 | ) | ||||
Balance at December 31, 2018 | 1,445 | 11 | 2,639 | 4,095 | ||||||||
Revisions of previous estimates (c) | (409 | ) | (1 | ) | 90 | (320 | ) | |||||
Improved recovery | 393 | 2 | 30 | 425 | ||||||||
Extensions and discoveries | 59 | 2 | 3 | 64 | ||||||||
Purchases of proved reserves (d) | 2,996 | — | — | 2,996 | ||||||||
Sales of proved reserves | (30 | ) | — | — | (30 | ) | ||||||
Production | (326 | ) | (2 | ) | (202 | ) | (530 | ) | ||||
Balance at December 31, 2019 | 4,128 | 12 | 2,560 | 6,700 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 708 | 6 | 2,324 | 3,038 | ||||||||
December 31, 2017 | 782 | 11 | 2,131 | 2,924 | ||||||||
December 31, 2018 | 978 | 11 | 2,015 | 3,004 | ||||||||
December 31, 2019 (e) | 3,198 | 11 | 1,996 | 5,205 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 337 | — | 399 | 736 | ||||||||
December 31, 2017 | 423 | 1 | 483 | 907 | ||||||||
December 31, 2018 | 467 | — | 624 | 1,091 | ||||||||
December 31, 2019 | 930 | 1 | 564 | 1,495 |
(a) | Excluded reserve amounts related to the Africa Assets. |
(b) |
Natural Gas Reserves | ||||||||||||
in billions of cubic feet (Bcf) | ||||||||||||
United | Latin | Middle East/ | ||||||||||
States | America | North Africa (a) | Total | |||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance, December 31, 2013 | 2,012 | 24 | 2,687 | 4,723 | ||||||||
Revisions of previous estimates | (111 | ) | 3 | (273 | ) | (381 | ) | |||||
Improved recovery | 284 | 4 | 25 | 313 | ||||||||
Extensions and discoveries | 27 | — | 101 | 128 | ||||||||
Purchases of proved reserves | 46 | — | — | 46 | ||||||||
Sales of proved reserves (b) | (371 | ) | — | — | (371 | ) | ||||||
Production | (173 | ) | (4 | ) | (154 | ) | (331 | ) | ||||
Balance at December 31, 2014 | 1,714 | 27 | 2,386 | 4,127 | ||||||||
Revisions of previous estimates (c) | (600 | ) | (4 | ) | 64 | (540 | ) | |||||
Improved recovery | 123 | — | 64 | 187 | ||||||||
Extensions and discoveries | — | — | 17 | 17 | ||||||||
Purchases of proved reserves | — | — | — | — | ||||||||
Sales of proved reserves (b) | (63 | ) | — | — | (63 | ) | ||||||
Production | (155 | ) | (4 | ) | (201 | ) | (360 | ) | ||||
Balance at December 31, 2015 | 1,019 | 19 | 2,330 | 3,368 | ||||||||
Revisions of previous estimates | (19 | ) | (10 | ) | 554 | 525 | ||||||
Improved recovery | 138 | — | 51 | 189 | ||||||||
Extensions and discoveries | — | — | 2 | 2 | ||||||||
Purchases of proved reserves | 128 | — | — | 128 | ||||||||
Sales of proved reserves (b) | (89 | ) | — | — | (89 | ) | ||||||
Production | (132 | ) | (3 | ) | (214 | ) | (349 | ) | ||||
Balance at December 31, 2016 | 1,045 | 6 | 2,723 | 3,774 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 1,495 | 23 | 1,684 | 3,202 | ||||||||
December 31, 2014 | 1,128 | 26 | 1,915 | 3,069 | ||||||||
December 31, 2015 | 813 | 19 | 1,872 | 2,704 | ||||||||
December 31, 2016 (d) | 708 | 6 | 2,324 | 3,038 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 517 | 1 | 1,003 | 1,521 | ||||||||
December 31, 2014 | 586 | 1 | 471 | 1,058 | ||||||||
December 31, 2015 | 206 | — | 458 | 664 | ||||||||
December 31, 2016 (e) | 337 | — | 399 | 736 |
(c) |
(d) |
(e) | Approximately |
112 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
millions of BOE (MMBOE) (b) | United States | Latin America | Middle East | Total(c) | ||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance at December 31, 2016 | 1,353 | 72 | 981 | 2,406 | ||||||||
Revisions of previous estimates | 109 | 16 | 26 | 151 | ||||||||
Improved recovery | 149 | 8 | 44 | 201 | ||||||||
Extensions and discoveries | — | — | 5 | 5 | ||||||||
Purchases of proved reserves | 99 | — | — | 99 | ||||||||
Sales of proved reserves | (44 | ) | — | — | (44 | ) | ||||||
Production | (111 | ) | (12 | ) | (97 | ) | (220 | ) | ||||
Balance at December 31, 2017 | 1,555 | 84 | 959 | 2,598 | ||||||||
Revisions of previous estimates | 18 | (2 | ) | 40 | 56 | |||||||
Improved recovery | 237 | 23 | 34 | 294 | ||||||||
Extensions and discoveries | — | 4 | 3 | 7 | ||||||||
Purchases of proved reserves | 54 | — | — | 54 | ||||||||
Sales of proved reserves | (17 | ) | — | — | (17 | ) | ||||||
Production | (136 | ) | (11 | ) | (93 | ) | (240 | ) | ||||
Balance at December 31, 2018 | 1,711 | 98 | 943 | 2,752 | ||||||||
Revisions of previous estimates (d) | (243 | ) | 3 | 40 | (200 | ) | ||||||
Improved recovery | 251 | 12 | 30 | 293 | ||||||||
Extensions and discoveries | 58 | 2 | 3 | 63 | ||||||||
Purchases of proved reserves (e) | 1,311 | — | — | 1,311 | ||||||||
Sales of proved reserves | (29 | ) | — | — | (29 | ) | ||||||
Production | (261 | ) | (12 | ) | (90 | ) | (363 | ) | ||||
Balance at December 31, 2019 | 2,798 | 103 | 926 | 3,827 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 937 | 70 | 849 | 1,856 | ||||||||
December 31, 2017 | 1,063 | 79 | 786 | 1,928 | ||||||||
December 31, 2018 | 1,202 | 79 | 721 | 2,002 | ||||||||
December 31, 2019(f) | 2,145 | 78 | 700 | 2,923 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2016 | 416 | 2 | 132 | 550 | ||||||||
December 31, 2017 | 492 | 5 | 173 | 670 | ||||||||
December 31, 2018 | 509 | 19 | 222 | 750 | ||||||||
December 31, 2019 | 653 | 25 | 226 | 904 |
(a) | Excluded reserve amounts related to the |
(b) | Natural gas volumes have been converted to barrels of oil equivalent (BOE) based on an energy content of six thousand cubic feet (Mcf) of gas to one barrel of oil. |
(c) | Included proved reserves related to PSCs and other similar economic arrangements of 0.5 billion BOE at December 31, 2019, 2018, 2017, and 2016. |
(d) | Revisions of previous estimates in 2019 primarily related to negative price revisions, changes to development plans and reservoir performance in the Permian Basin. |
(e) | Purchases of proved reserves in 2019 related to acquired reserves through the Acquisition. |
(f) | Approximately 8% of the proved |
OXY 2019 FORM 10-K | 113 |
Supplemental Oil and Gas Information (Unaudited) |
Total Reserves | ||||||||||||
in millions of BOE (MMBOE) (a) | ||||||||||||
United | Latin | Middle East/ | ||||||||||
States | America | North Africa | Total (b) | |||||||||
PROVED DEVELOPED AND UNDEVELOPED RESERVES | ||||||||||||
Balance at December 31, 2013 | 1,670 | 92 | 976 | 2,738 | ||||||||
Revisions of previous estimates | (67 | ) | 6 | 3 | (58 | ) | ||||||
Improved recovery | 310 | 9 | 35 | 354 | ||||||||
Extensions and discoveries | 22 | — | 19 | 41 | ||||||||
Purchases of proved reserves | 43 | — | — | 43 | ||||||||
Sales of proved reserves (c) | (81 | ) | — | — | (81 | ) | ||||||
Production | (116 | ) | (11 | ) | (91 | ) | (218 | ) | ||||
Balance at December 31, 2014 | 1,781 | 96 | 942 | 2,819 | ||||||||
Revisions of previous estimates | (348 | ) | (10 | ) | 43 | (315 | ) | |||||
Improved recovery | 113 | 8 | 23 | 144 | ||||||||
Extensions and discoveries | — | — | 5 | 5 | ||||||||
Purchases of proved reserves | — | — | — | — | ||||||||
Sales of proved reserves (c) | (156 | ) | — | (51 | ) | (207 | ) | |||||
Production | (119 | ) | (14 | ) | (113 | ) | (246 | ) | ||||
Balance at December 31, 2015 | 1,271 | 80 | 849 | 2,200 | ||||||||
Revisions of previous estimates (d) | (92 | ) | 3 | 248 | 159 | |||||||
Improved recovery | 165 | 2 | 18 | 185 | ||||||||
Extensions and discoveries | — | — | 2 | 2 | ||||||||
Purchases of proved reserves | 137 | — | — | 137 | ||||||||
Sales of proved reserves (c) | (18 | ) | — | (28 | ) | (46 | ) | |||||
Production | (110 | ) | (13 | ) | (108 | ) | (231 | ) | ||||
Balance at December 31, 2016 | 1,353 | 72 | 981 | 2,406 | ||||||||
PROVED DEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 1,222 | 80 | 613 | 1,915 | ||||||||
December 31, 2014 | 1,154 | 90 | 744 | 1,988 | ||||||||
December 31, 2015 | 950 | 80 | 702 | 1,732 | ||||||||
December 31, 2016 (e) | 937 | 70 | 849 | 1,856 | ||||||||
PROVED UNDEVELOPED RESERVES | ||||||||||||
December 31, 2013 | 448 | 12 | 363 | 823 | ||||||||
December 31, 2014 | 627 | 6 | 198 | 831 | ||||||||
December 31, 2015 | 321 | — | 147 | 468 | ||||||||
December 31, 2016 (f) | 416 | 2 | 132 | 550 |
Oil (MMbbl) | NGL(MMbbl) | Natural Gas (Bcf) | Total (MMBOE) | |||||||||
PROVED DEVELOPED RESERVES | 99 | 7 | 19 | 109 | ||||||||
PROVED UNDEVELOPED RESERVES | 14 | — | 11 | 16 |
millions | United States | Latin America | Middle East | Total | ||||||||||||
December 31, 2019 | ||||||||||||||||
Proved properties | $ | 59,658 | $ | 3,667 | $ | 11,787 | $ | 75,112 | ||||||||
Unproved properties | 30,301 | 36 | 432 | 30,769 | ||||||||||||
Total capitalized costs (a,b) | 89,959 | 3,703 | 12,219 | 105,881 | ||||||||||||
Proved properties depreciation, depletion and amortization | (20,961 | ) | (2,643 | ) | (8,853 | ) | (32,457 | ) | ||||||||
Unproved properties valuation | (1,025 | ) | (27 | ) | (170 | ) | (1,222 | ) | ||||||||
Total Accumulated depreciation, depletion and amortization | (21,986 | ) | (2,670 | ) | (9,023 | ) | (33,679 | ) | ||||||||
Net capitalized costs | $ | 67,973 | $ | 1,033 | $ | 3,196 | $ | 72,202 | ||||||||
December 31, 2018 | ||||||||||||||||
Proved properties | $ | 35,717 | $ | 3,436 | $ | 17,302 | $ | 56,455 | ||||||||
Unproved properties | 1,900 | 43 | 401 | 2,344 | ||||||||||||
Total capitalized costs (a) | 37,617 | 3,479 | 17,703 | 58,799 | ||||||||||||
Proved properties depreciation, depletion and amortization | (17,188 | ) | (2,514 | ) | (14,286 | ) | (33,988 | ) | ||||||||
Unproved properties valuation | (1,200 | ) | (27 | ) | (85 | ) | (1,312 | ) | ||||||||
Total Accumulated depreciation, depletion and amortization | (18,388 | ) | (2,541 | ) | (14,371 | ) | (35,300 | ) | ||||||||
Net capitalized costs | $ | 19,229 | $ | 938 | $ | 3,332 | $ | 23,499 | ||||||||
December 31, 2017 | ||||||||||||||||
Proved properties | $ | 31,091 | $ | 3,194 | $ | 16,582 | $ | 50,867 | ||||||||
Unproved properties | 2,094 | 53 | 394 | 2,541 | ||||||||||||
Total capitalized costs (a) | 33,185 | 3,247 | 16,976 | 53,408 | ||||||||||||
Proved properties depreciation, depletion and amortization | (14,609 | ) | (2,412 | ) | (13,196 | ) | (30,217 | ) | ||||||||
Unproved properties valuation | (1,166 | ) | (27 | ) | — | (1,193 | ) | |||||||||
Total Accumulated depreciation, depletion and amortization | (15,775 | ) | (2,439 | ) | (13,196 | ) | (31,410 | ) | ||||||||
Net capitalized costs | $ | 17,410 | $ | 808 | $ | 3,780 | $ | 21,998 |
(a) | Included acquisition costs, development costs, capitalized interest and asset retirement obligations. Excluded capitalized costs related to Africa Assets. |
(b) | $48.4 billion of capitalized costs are associated with the Acquisition. |
114 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
millions | United States | Latin America | Middle East | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2019(a) | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 19,567 | $ | 6 | $ | — | $ | 19,573 | ||||||||
Unproved properties | 29,042 | 1 | 11 | 29,054 | ||||||||||||
Exploration costs | 307 | 58 | 141 | 506 | ||||||||||||
Development costs | 4,449 | 196 | 563 | 5,208 | ||||||||||||
Costs incurred | $ | 53,365 | $ | 261 | $ | 715 | $ | 54,341 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2018 | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 428 | $ | — | $ | — | $ | 428 | ||||||||
Unproved properties | 46 | 4 | 2 | 52 | ||||||||||||
Exploration costs | 196 | 42 | 44 | 282 | ||||||||||||
Development costs | 3,387 | 203 | 698 | 4,288 | ||||||||||||
Costs incurred | $ | 4,057 | $ | 249 | $ | 744 | $ | 5,050 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017 | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 880 | $ | — | $ | 1 | $ | 881 | ||||||||
Unproved properties | 32 | — | — | 32 | ||||||||||||
Exploration costs | 163 | 39 | 54 | 256 | ||||||||||||
Development costs | 1,981 | 157 | 582 | 2,720 | ||||||||||||
Costs incurred | $ | 3,056 | $ | 196 | $ | 637 | $ | 3,889 |
(a) | Excluded costs incurred related to Africa Assets. |
OXY 2019 FORM 10-K | 115 |
Supplemental Oil and Gas Information (Unaudited) |
millions | United States | Latin America | Middle East | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2019 | ||||||||||||||||
Revenues (a) | $ | 9,497 | $ | 703 | $ | 3,335 | $ | 13,535 | ||||||||
Lease operating costs | 2,271 | 163 | 904 | 3,338 | ||||||||||||
Transportation costs | 647 | 5 | 78 | 730 | ||||||||||||
Other operating expenses | 1,125 | 51 | 200 | 1,376 | ||||||||||||
Depreciation, depletion and amortization | 4,113 | 135 | 746 | 4,994 | ||||||||||||
Taxes other than on income | 651 | 8 | — | 659 | ||||||||||||
Exploration expenses | 99 | 45 | 102 | 246 | ||||||||||||
Oil and gas mark-to-market - Collars and CO2 | 15 | — | — | 15 | ||||||||||||
Pretax income before impairments and other charges | 576 | 296 | 1,305 | 2,177 | ||||||||||||
Asset impairments and other charges | 288 | — | 39 | 327 | ||||||||||||
Pretax income | 288 | 296 | 1,266 | 1,850 | ||||||||||||
Income tax expense (b) | 74 | 135 | 634 | 843 | ||||||||||||
Results of operations(c) | $ | 214 | $ | 161 | $ | 632 | $ | 1,007 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2018 | ||||||||||||||||
Revenues (a) | $ | 5,747 | $ | 731 | $ | 3,963 | $ | 10,441 | ||||||||
Lease operating costs | 1,675 | 151 | 939 | 2,765 | ||||||||||||
Transportation costs | 11 | 3 | 98 | 112 | ||||||||||||
Other operating expenses | 676 | 49 | 186 | 911 | ||||||||||||
Depreciation, depletion and amortization | 2,321 | 102 | 831 | 3,254 | ||||||||||||
Taxes other than on income | 407 | 6 | — | 413 | ||||||||||||
Exploration expenses | 64 | 19 | 27 | 110 | ||||||||||||
Oil and gas mark-to-market - CO2 | (4 | ) | — | — | (4 | ) | ||||||||||
Pretax income before impairments and other charges | 597 | 401 | 1,882 | 2,880 | ||||||||||||
Asset impairments and other charges | 32 | — | 416 | 448 | ||||||||||||
Pretax income | 565 | 401 | 1,466 | 2,432 | ||||||||||||
Income tax expense (benefit) (b) | (131 | ) | 174 | 925 | 968 | |||||||||||
Results of operations | $ | 696 | $ | 227 | $ | 541 | $ | 1,464 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017 | ||||||||||||||||
Revenues (a) | $ | 4,047 | $ | 570 | $ | 3,253 | $ | 7,870 | ||||||||
Lease operating costs | 1,463 | 151 | 849 | 2,463 | ||||||||||||
Transportation costs | 11 | 4 | 101 | 116 | ||||||||||||
Other operating expenses | 621 | 51 | 166 | 838 | ||||||||||||
Depreciation, depletion and amortization | 2,549 | 124 | 596 | 3,269 | ||||||||||||
Taxes other than on income | 273 | 9 | — | 282 | ||||||||||||
Exploration expenses | 28 | 7 | 47 | 82 | ||||||||||||
Oil and gas mark-to-market - CO2 | (36 | ) | — | — | (36 | ) | ||||||||||
Pretax income (loss) before impairments and other charges | (862 | ) | 224 | 1,494 | 856 | |||||||||||
Asset impairments and other charges | 397 | 4 | — | 401 | ||||||||||||
Pretax income (loss) | (1,259 | ) | 220 | 1,494 | 455 | |||||||||||
Income tax expense (benefit) (b) | (695 | ) | 120 | 690 | 115 | |||||||||||
Results of operations | $ | (564 | ) | $ | 100 | $ | 804 | $ | 340 |
(a) | Revenues are net of royalty payments. |
(b) | U.S. federal income taxes reflect certain expenses related to oil and gas activities allocated for U.S. income tax purposes . These amounts are computed using the statutory rate in effect during the period. |
(c) | The 2019 results of operations excluded amounts related to Africa Assets. |
116 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
$/BOE (a) | United States | Latin America | Middle East | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2019 | ||||||||||||||||
Revenues (b) | $ | 36.43 | $ | 56.70 | $ | 36.94 | $ | 37.25 | ||||||||
Lease operating costs | 8.71 | 13.18 | 10.01 | 9.19 | ||||||||||||
Transportation costs | 2.48 | 0.34 | 0.87 | 2.01 | ||||||||||||
Other operating expenses | 4.32 | 4.15 | 2.21 | 3.79 | ||||||||||||
Depreciation, depletion and amortization | 15.78 | 10.85 | 8.27 | 13.74 | ||||||||||||
Taxes other than on income | 2.50 | 0.63 | — | 1.81 | ||||||||||||
Exploration expenses | 0.38 | 3.66 | 1.13 | 0.68 | ||||||||||||
Oil and gas mark-to-market - Collars and CO2 | 0.06 | — | — | 0.04 | ||||||||||||
Pretax income before impairments and other charges | 2.20 | 23.89 | 14.45 | 5.99 | ||||||||||||
Asset impairments and other charges | 1.11 | — | 0.43 | 0.90 | ||||||||||||
Pretax income | 1.09 | 23.89 | 14.02 | 5.09 | ||||||||||||
Income tax expense(c) | 0.29 | 10.90 | 7.01 | 2.32 | ||||||||||||
Results of operations(d) | $ | 0.80 | $ | 12.99 | $ | 7.01 | $ | 2.77 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2018 | ||||||||||||||||
Revenues (b) | $ | 42.30 | $ | 63.37 | $ | 42.78 | $ | 43.50 | ||||||||
Lease operating costs | 12.33 | 13.08 | 10.14 | 11.52 | ||||||||||||
Transportation costs | 0.08 | 0.24 | 1.06 | 0.47 | ||||||||||||
Other operating expenses | 4.98 | 4.24 | 2.01 | 3.79 | ||||||||||||
Depreciation, depletion and amortization | 17.08 | 8.88 | 8.96 | 13.56 | ||||||||||||
Taxes other than on income | 3.00 | 0.52 | — | 1.72 | ||||||||||||
Exploration expenses | 0.47 | 1.65 | 0.29 | 0.46 | ||||||||||||
Oil and gas mark-to-market - CO2 | (0.03 | ) | — | — | (0.01 | ) | ||||||||||
Pretax income before impairments and other charges | 4.39 | 34.76 | 20.32 | 11.99 | ||||||||||||
Asset impairments and other charges | 0.24 | — | 4.49 | 1.87 | ||||||||||||
Pretax income | 4.15 | 34.76 | 15.83 | 10.12 | ||||||||||||
Income tax expense (benefit) (c) | (0.96 | ) | 15.08 | 9.99 | 4.03 | |||||||||||
Results of operations | $ | 5.11 | $ | 19.68 | $ | 5.84 | $ | 6.09 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2017 | ||||||||||||||||
Revenues (b) | $ | 36.50 | $ | 47.79 | $ | 33.51 | $ | 35.79 | ||||||||
Lease operating costs | 13.19 | 12.66 | 8.75 | 11.20 | ||||||||||||
Transportation costs | 0.10 | 0.33 | 1.04 | 0.53 | ||||||||||||
Other operating expenses | 5.60 | 4.28 | 1.71 | 3.81 | ||||||||||||
Depreciation, depletion and amortization | 22.99 | 10.37 | 6.14 | 14.87 | ||||||||||||
Taxes other than on income | 2.47 | 0.75 | — | 1.28 | ||||||||||||
Exploration expenses | 0.25 | 0.59 | 0.48 | 0.37 | ||||||||||||
Oil and gas mark-to-market - CO2 | (0.32 | ) | — | — | (0.16 | ) | ||||||||||
Pretax income before impairments and other charges | (7.78 | ) | 18.81 | 15.39 | 3.89 | |||||||||||
Asset impairments and other charges | 3.58 | 0.34 | — | 1.82 | ||||||||||||
Pretax income (loss) | (11.36 | ) | 18.47 | 15.39 | 2.07 | |||||||||||
Income tax expense (benefit) (c) | (6.27 | ) | 10.06 | 7.11 | 0.52 | |||||||||||
Results of operations | $ | (5.09 | ) | $ | 8.41 | $ | 8.28 | $ | 1.55 |
(a) | Natural gas volumes have been converted to barrels of oil equivalent (BOE) based on energy content of six thousand cubic feet (Mcf) of gas to one barrel of oil. |
(b) |
United | Latin | Middle East/ | ||||||||||||||
in millions | States | America | North Africa | Total | ||||||||||||
December 31, 2016 | ||||||||||||||||
Proved properties | $ | 32,220 | $ | 3,029 | $ | 16,792 | $ | 52,041 | ||||||||
Unproved properties | 2,548 | 28 | 54 | 2,630 | ||||||||||||
Total capitalized costs (a) | 34,768 | 3,057 | 16,846 | 54,671 | ||||||||||||
Proved properties depreciation, depletion and amortization | (15,085 | ) | (2,285 | ) | (13,067 | ) | (30,437 | ) | ||||||||
Unproved properties valuation | (1,178 | ) | (27 | ) | — | (1,205 | ) | |||||||||
Total Accumulated depreciation, depletion and amortization | (16,263 | ) | (2,312 | ) | (13,067 | ) | (31,642 | ) | ||||||||
Net capitalized costs | $ | 18,505 | $ | 745 | $ | 3,779 | $ | 23,029 | ||||||||
December 31, 2015 | ||||||||||||||||
Proved properties | $ | 30,200 | $ | 2,955 | $ | 19,290 | $ | 52,445 | ||||||||
Unproved properties | 1,376 | 27 | 1,077 | 2,480 | ||||||||||||
Total capitalized costs (a) | 31,576 | 2,982 | 20,367 | 54,925 | ||||||||||||
Proved properties depreciation, depletion and amortization | (12,544 | ) | (2,119 | ) | (15,718 | ) | (30,381 | ) | ||||||||
Unproved properties valuation | (1,204 | ) | (27 | ) | (961 | ) | (2,192 | ) | ||||||||
Total Accumulated depreciation, depletion and amortization | (13,748 | ) | (2,146 | ) | (16,679 | ) | (32,573 | ) | ||||||||
Net capitalized costs | $ | 17,828 | $ | 836 | $ | 3,688 | $ | 22,352 | ||||||||
December 31, 2014 | ||||||||||||||||
Proved properties | $ | 33,186 | $ | 2,788 | $ | 19,545 | $ | 55,519 | ||||||||
Unproved properties | 2,389 | 27 | 1,026 | 3,442 | ||||||||||||
Total capitalized costs (a) | 35,575 | 2,815 | 20,571 | 58,961 | ||||||||||||
Proved properties depreciation, depletion and amortization | (13,943 | ) | (1,365 | ) | (12,625 | ) | (27,933 | ) | ||||||||
Unproved properties valuation | (1,301 | ) | (27 | ) | — | (1,328 | ) | |||||||||
Total Accumulated depreciation, depletion and amortization | (15,244 | ) | (1,392 | ) | (12,625 | ) | (29,261 | ) | ||||||||
Net capitalized costs | $ | 20,331 | $ | 1,423 | $ | 7,946 | $ | 29,700 |
United | Latin | Middle East/ | ||||||||||||||
in millions | States | America | North Africa | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2016 | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 797 | $ | — | $ | 367 | $ | 1,164 | ||||||||
Unproved properties | 1,265 | — | — | 1,265 | ||||||||||||
Exploration costs | 13 | 6 | 52 | 71 | ||||||||||||
Development costs | 1,417 | 75 | 670 | 2,162 | ||||||||||||
Costs incurred | $ | 3,492 | $ | 81 | $ | 1,089 | $ | 4,662 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2015 | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 37 | $ | — | $ | 47 | $ | 84 | ||||||||
Unproved properties | 25 | — | — | 25 | ||||||||||||
Exploration costs | 74 | 2 | 66 | 142 | ||||||||||||
Development costs | 2,880 | 170 | 1,461 | 4,511 | ||||||||||||
Costs incurred | $ | 3,016 | $ | 172 | $ | 1,574 | $ | 4,762 | ||||||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||
Property acquisition costs | ||||||||||||||||
Proved properties | $ | 771 | $ | — | $ | — | $ | 771 | ||||||||
Unproved properties | 842 | — | — | 842 | ||||||||||||
Exploration costs | 379 | 4 | 180 | 563 | ||||||||||||
Development costs | 3,665 | 305 | 2,138 | 6,108 | ||||||||||||
Costs incurred | $ | 5,657 | $ | 309 | $ | 2,318 | $ | 8,284 |
United | Latin | Middle East/ | ||||||||||||||
in millions | States | America | North Africa | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2016 | ||||||||||||||||
Revenues (a) | $ | 3,135 | $ | 476 | $ | 2,766 | $ | 6,377 | ||||||||
Production costs (b) | 1,335 | 170 | 982 | 2,487 | ||||||||||||
Other operating expenses | 426 | 36 | 218 | 680 | ||||||||||||
Depreciation, depletion and amortization | 2,793 | 156 | 626 | 3,575 | ||||||||||||
Taxes other than on income | 240 | 10 | — | 250 | ||||||||||||
Exploration expenses | 8 | 5 | 49 | 62 | ||||||||||||
Pretax income (loss) before impairments and related items | (1,667 | ) | 99 | 891 | (677 | ) | ||||||||||
Asset impairments and related items | 1 | 9 | 61 | 71 | ||||||||||||
Pretax income (loss) | (1,668 | ) | 90 | 830 | (748 | ) | ||||||||||
Income tax expense (benefit) (c) | (784 | ) | 65 | 336 | (383 | ) | ||||||||||
Results of operations | $ | (884 | ) | $ | 25 | $ | 494 | $ | (365 | ) | ||||||
FOR THE YEAR ENDED DECEMBER 31, 2015 | ||||||||||||||||
Revenues (a) | $ | 3,809 | $ | 589 | $ | 3,906 | $ | 8,304 | ||||||||
Production costs (b) | 1,571 | 160 | 1,113 | 2,844 | ||||||||||||
Other operating expenses | 511 | 29 | 238 | 778 | ||||||||||||
Depreciation, depletion and amortization | 2,109 | 196 | 1,581 | 3,886 | ||||||||||||
Taxes other than on income | 307 | 16 | — | 323 | ||||||||||||
Exploration expenses | 18 | 2 | 16 | 36 | ||||||||||||
Pretax income (loss) before impairments and related items | (707 | ) | 186 | 958 | 437 | |||||||||||
Asset impairments and related items | 3,447 | 559 | 4,491 | 8,497 | ||||||||||||
Pretax income (loss) | (4,154 | ) | (373 | ) | (3,533 | ) | (8,060 | ) | ||||||||
Income tax expense (benefit) (c) | (1,606 | ) | (61 | ) | 787 | (880 | ) | |||||||||
Results of operations | $ | (2,548 | ) | $ | (312 | ) | $ | (4,320 | ) | $ | (7,180 | ) | ||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||
Revenues (a) | $ | 6,773 | $ | 977 | $ | 6,160 | $ | 13,910 | ||||||||
Production costs (b) | 1,683 | 185 | 1,076 | 2,944 | ||||||||||||
Other operating expenses | 588 | (2 | ) | 266 | 852 | |||||||||||
Depreciation, depletion and amortization | 2,114 | 161 | 1,426 | 3,701 | ||||||||||||
Taxes other than on income | 519 | 15 | — | 534 | ||||||||||||
Exploration expenses | 70 | 4 | 76 | 150 | ||||||||||||
Pretax income before impairments and related items | 1,799 | 614 | 3,316 | 5,729 | ||||||||||||
Asset impairments and related items | 4,766 | 57 | 1,009 | 5,832 | ||||||||||||
Pretax income (loss) | (2,967 | ) | 557 | 2,307 | (103 | ) | ||||||||||
Income tax expense (benefit) (c) | (1,182 | ) | 223 | 1,730 | 771 | |||||||||||
Results of operations | $ | (1,785 | ) | $ | 334 | $ | 577 | $ | (874 | ) |
Revenues are net of royalty payments. |
(c) |
United | Latin | Middle East/ | ||||||||||||||
$/BOE (a) | States | America | North Africa | Total | ||||||||||||
FOR THE YEAR ENDED DECEMBER 31, 2016 | ||||||||||||||||
Revenues (b) | $ | 28.36 | $ | 36.87 | $ | 25.67 | $ | 27.59 | ||||||||
Production costs | 12.07 | 13.16 | 9.12 | 10.76 | ||||||||||||
Other operating expenses | 3.86 | 2.76 | 2.02 | 2.94 | ||||||||||||
Depreciation, depletion and amortization | 25.27 | 12.12 | 5.81 | 15.46 | ||||||||||||
Taxes other than on income | 2.17 | 0.77 | — | 1.08 | ||||||||||||
Exploration expenses | 0.07 | 0.39 | 0.45 | 0.27 | ||||||||||||
Pretax income (loss) before impairments and related items | (15.08 | ) | 7.67 | 8.27 | (2.92 | ) | ||||||||||
Asset impairments and related items | 0.01 | 0.70 | 0.57 | 0.31 | ||||||||||||
Pretax income (loss) | (15.09 | ) | 6.97 | 7.70 | (3.23 | ) | ||||||||||
Income tax expense (benefit) (c) | (7.09 | ) | 5.03 | 3.12 | (1.66 | ) | ||||||||||
Results of operations | $ | (8.00 | ) | $ | 1.94 | $ | 4.58 | $ | (1.57 | ) | ||||||
FOR THE YEAR ENDED DECEMBER 31, 2015 | ||||||||||||||||
Revenues (b) | $ | 31.84 | $ | 43.83 | $ | 34.64 | $ | 33.78 | ||||||||
Production costs | 13.13 | 11.93 | 9.87 | 11.57 | ||||||||||||
Other operating expenses | 4.27 | 2.18 | 2.11 | 3.15 | ||||||||||||
Depreciation, depletion and amortization | 17.63 | 14.54 | 14.02 | 15.81 | ||||||||||||
Taxes other than on income | 2.57 | 1.19 | — | 1.32 | ||||||||||||
Exploration expenses | 0.15 | 0.15 | 0.14 | 0.15 | ||||||||||||
Pretax income (loss) before impairments and related items | (5.91 | ) | 13.84 | 8.50 | 1.78 | |||||||||||
Asset impairments and related items | 28.81 | 41.60 | 39.82 | 34.56 | ||||||||||||
Pretax income (loss) | (34.72 | ) | (27.76 | ) | (31.32 | ) | (32.78 | ) | ||||||||
Income tax expense (benefit) (c) | (13.42 | ) | (4.54 | ) | 6.98 | (3.58 | ) | |||||||||
Results of operations | $ | (21.30 | ) | $ | (23.22 | ) | $ | (38.30 | ) | $ | (29.20 | ) | ||||
FOR THE YEAR ENDED DECEMBER 31, 2014 | ||||||||||||||||
Revenues (b) | $ | 58.50 | $ | 85.81 | $ | 67.74 | $ | 63.78 | ||||||||
Production costs | 14.54 | 16.25 | 11.83 | 13.50 | ||||||||||||
Other operating expenses | 5.08 | (0.18 | ) | 2.93 | 3.91 | |||||||||||
Depreciation, depletion and amortization | 18.26 | 14.14 | 15.68 | 16.97 | ||||||||||||
Taxes other than on income | 4.48 | 1.32 | — | 2.45 | ||||||||||||
Exploration expenses | 0.60 | 0.35 | 0.84 | 0.69 | ||||||||||||
Pretax income before impairments and related items | 15.54 | 53.93 | 36.46 | 26.26 | ||||||||||||
Asset impairments and related items | 41.17 | 5.01 | 11.10 | 26.74 | ||||||||||||
Pretax income (loss) | (25.63 | ) | 48.92 | 25.36 | (0.48 | ) | ||||||||||
Income tax expense (benefit) (c) | (10.21 | ) | 19.59 | 19.02 | 3.54 | |||||||||||
Results of operations | $ | (15.42 | ) | $ | 29.33 | $ | 6.34 | $ | (4.02 | ) |
(d) |
OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
2019 | 2018 | 2017 | ||||
Average WTI oil price (per barrel) | $55.69 | $65.56 | $51.34 | |||
Average Brent price (per barrel) | $63.03 | $72.20 | $54.93 | |||
Average Henry Hub natural gas price (per MMBtu) | $2.58 | $3.10 | $2.98 |
millions | United States | Latin America | Middle East | Total | ||||||||||||
AT DECEMBER 31, 2019 | ||||||||||||||||
Future cash inflows | $ | 97,293 | $ | 5,803 | $ | 28,715 | $ | 131,811 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating | (47,685 | ) | (2,824 | ) | (9,786 | ) | (60,295 | ) | ||||||||
Development costs (a) | (13,137 | ) | (553 | ) | (2,543 | ) | (16,233 | ) | ||||||||
Future income tax expense | (4,097 | ) | (687 | ) | (2,559 | ) | (7,343 | ) | ||||||||
Future net cash flows | 32,374 | 1,739 | 13,827 | 47,940 | ||||||||||||
10% discount factor | (12,427 | ) | (701 | ) | (6,819 | ) | (19,947 | ) | ||||||||
Standardized measure of discounted future net cash flows (b) | $ | 19,947 | $ | 1,038 | $ | 7,008 | $ | 27,993 | ||||||||
AT DECEMBER 31, 2018 | ||||||||||||||||
Future cash inflows | $ | 75,313 | $ | 6,104 | $ | 31,158 | $ | 112,575 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating | (33,373 | ) | (2,673 | ) | (9,609 | ) | (45,655 | ) | ||||||||
Development costs (a) | (9,450 | ) | (377 | ) | (2,136 | ) | (11,963 | ) | ||||||||
Future income tax expense | (4,150 | ) | (959 | ) | (3,524 | ) | (8,633 | ) | ||||||||
Future net cash flows | 28,340 | 2,095 | 15,889 | 46,324 | ||||||||||||
10% discount factor | (14,288 | ) | (846 | ) | (7,729 | ) | (22,863 | ) | ||||||||
Standardized measure of discounted future net cash flows | $ | 14,052 | $ | 1,249 | $ | 8,160 | $ | 23,461 | ||||||||
AT DECEMBER 31, 2017 | ||||||||||||||||
Future cash inflows | $ | 59,289 | $ | 3,961 | $ | 25,662 | $ | 88,912 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating | (29,318 | ) | (1,915 | ) | (9,349 | ) | (40,582 | ) | ||||||||
Development costs (a) | (7,986 | ) | (238 | ) | (2,199 | ) | (10,423 | ) | ||||||||
Future income tax expense | (1,838 | ) | (543 | ) | (2,906 | ) | (5,287 | ) | ||||||||
Future net cash flows | 20,147 | 1,265 | 11,208 | 32,620 | ||||||||||||
10% discount factor | (10,951 | ) | (423 | ) | (5,026 | ) | (16,400 | ) | ||||||||
Standardized measure of discounted future net cash flows | $ | 9,196 | $ | 842 | $ | 6,182 | $ | 16,220 |
Standardized Measure of Discounted Future Net Cash Flows | ||||||||||||||||
in millions | ||||||||||||||||
United | Latin | Middle East/ | ||||||||||||||
States | America | North Africa | Total | |||||||||||||
AT DECEMBER 31, 2016 | ||||||||||||||||
Future cash inflows | $ | 42,289 | $ | 2,551 | $ | 21,079 | $ | 65,919 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating expenses | (23,574 | ) | (1,418 | ) | (8,101 | ) | (33,093 | ) | ||||||||
Development costs (a) | (7,204 | ) | (134 | ) | (1,900 | ) | (9,238 | ) | ||||||||
Future income tax expense | — | (244 | ) | (2,349 | ) | (2,593 | ) | |||||||||
Future net cash flows | 11,511 | 755 | 8,729 | 20,995 | ||||||||||||
Ten percent discount factor | (6,676 | ) | (202 | ) | (4,404 | ) | (11,282 | ) | ||||||||
Standardized measure of discounted future net cash flows | $ | 4,835 | $ | 553 | $ | 4,325 | $ | 9,713 | ||||||||
AT DECEMBER 31, 2015 | ||||||||||||||||
Future cash inflows | $ | 47,290 | $ | 3,416 | $ | 22,994 | $ | 73,700 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating expenses | (25,386 | ) | (1,852 | ) | (9,041 | ) | (36,279 | ) | ||||||||
Development costs (a) | (7,245 | ) | (178 | ) | (2,672 | ) | (10,095 | ) | ||||||||
Future income tax expense | (759 | ) | (392 | ) | (4,045 | ) | (5,196 | ) | ||||||||
Future net cash flows | 13,900 | 994 | 7,236 | 22,130 | ||||||||||||
Ten percent discount factor | (7,446 | ) | (293 | ) | (2,996 | ) | (10,735 | ) | ||||||||
Standardized measure of discounted future net cash flows | $ | 6,454 | $ | 701 | $ | 4,240 | $ | 11,395 | ||||||||
AT DECEMBER 31, 2014 | ||||||||||||||||
Future cash inflows | $ | 122,377 | $ | 8,325 | $ | 48,684 | $ | 179,386 | ||||||||
Future costs | ||||||||||||||||
Production costs and other operating expenses | (48,436 | ) | (3,422 | ) | (13,020 | ) | (64,878 | ) | ||||||||
Development costs (a) | (16,618 | ) | (397 | ) | (7,245 | ) | (24,260 | ) | ||||||||
Future income tax expense | (15,939 | ) | (1,322 | ) | (11,211 | ) | (28,472 | ) | ||||||||
Future net cash flows | 41,384 | 3,184 | 17,208 | 61,776 | ||||||||||||
Ten percent discount factor | (23,722 | ) | (1,219 | ) | (6,686 | ) | (31,627 | ) | ||||||||
Standardized measure of discounted future net cash flows | $ | 17,662 | $ | 1,965 | $ | 10,522 | $ | 30,149 |
(a) |
(b) | Excluded discounted future net cash flows of $2.0 billion related to Occidental’s Africa Assets. |
118 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
Changes in the Standardized Measure of Discounted Future | ||||||||||||||||||||||||
Net Cash Flows From Proved Reserve Quantities | ||||||||||||||||||||||||
in millions | ||||||||||||||||||||||||
For the years ended December 31, | 2016 | 2015 | 2014 | |||||||||||||||||||||
Beginning of year | $ | 11,395 | $ | 30,149 | $ | 30,412 | ||||||||||||||||||
millions | 2019 | 2018 | 2017 | |||||||||||||||||||||
Balance at January 1 | $ | 23,461 | $ | 16,220 | $ | 9,713 | ||||||||||||||||||
Sales and transfers of oil and gas produced, net of production costs and other operating expenses | (3,830 | ) | (4,952 | ) | (11,016 | ) | (8,884 | ) | (7,828 | ) | (5,362 | ) | ||||||||||||
Net change in prices received per barrel, net of production costs and other operating expenses | (3,714 | ) | (36,081 | ) | (3,641 | ) | (6,823 | ) | 9,482 | 7,598 | ||||||||||||||
Extensions, discoveries and improved recovery, net of future production and development costs | 811 | 854 | 4,754 | 2,607 | 3,378 | 1,534 | ||||||||||||||||||
Change in estimated future development costs | (227 | ) | 3,091 | (3,375 | ) | (1,636 | ) | (3,463 | ) | (1,283 | ) | |||||||||||||
Revisions of quantity estimates | 868 | (1,782 | ) | 190 | (1,769 | ) | 664 | 966 | ||||||||||||||||
Previously estimated development costs incurred during the period | 1,662 | 3,327 | 4,676 | 3,297 | 1,943 | 1,643 | ||||||||||||||||||
Accretion of discount | 1,034 | 3,220 | 3,456 | 2,276 | 1,551 | 922 | ||||||||||||||||||
Net change in income taxes | 1,367 | 13,046 | 3,673 | 2,905 | (1,182 | ) | (528 | ) | ||||||||||||||||
Purchases and sales of reserves in place, net | 178 | (2,334 | ) | 45 | 9,945 | 347 | 688 | |||||||||||||||||
Changes in production rates and other | 169 | 2,857 | 975 | 2,614 | 2,349 | 329 | ||||||||||||||||||
Net change | (1,682 | ) | (18,754 | ) | (263 | ) | 4,532 | 7,241 | 6,507 | |||||||||||||||
End of year | $ | 9,713 | $ | 11,395 | $ | 30,149 | ||||||||||||||||||
Balance at December 31 | $ | 27,993 | $ | 23,461 | $ | 16,220 |
United | Latin | Middle East/ | ||||||||||||||||||
States | America | North Africa | Total | |||||||||||||||||
2016 | ||||||||||||||||||||
Oil | — | Average sales price ($/bbl) | $ | 39.38 | $ | 37.48 | $ | 38.25 | $ | 38.73 | ||||||||||
NGLs | — | Average sales price ($/bbl) | $ | 14.72 | $ | — | $ | 15.01 | $ | 14.82 | ||||||||||
Gas | — | Average sales price ($/mcf) | $ | 1.90 | $ | 3.78 | $ | 1.27 | $ | 1.53 | ||||||||||
2015 | ||||||||||||||||||||
Oil | — | Average sales price ($/bbl) | $ | 45.04 | $ | 44.49 | $ | 49.65 | $ | 47.10 | ||||||||||
NGLs | — | Average sales price ($/bbl) | $ | 15.35 | $ | — | $ | 17.88 | $ | 15.96 | ||||||||||
Gas | — | Average sales price ($/mcf) | $ | 2.15 | $ | 5.20 | $ | 0.91 | $ | 1.49 | ||||||||||
2014 | ||||||||||||||||||||
Oil | — | Average sales price ($/bbl) | $ | 84.73 | $ | 88.00 | $ | 96.34 | $ | 90.13 | ||||||||||
NGLs | — | Average sales price ($/bbl) | $ | 37.79 | $ | — | $ | 30.98 | $ | 37.01 | ||||||||||
Gas | — | Average sales price ($/mcf) | $ | 3.97 | $ | 8.94 | $ | 0.77 | $ | 2.55 |
United States | Latin America | Middle East | Total | |||||||||||||
2019 | ||||||||||||||||
Oil ($/bbl) | $ | 54.31 | $ | 57.26 | $ | 61.96 | $ | 56.09 | ||||||||
NGL ($/bbl) | $ | 16.03 | $ | — | $ | 21.31 | $ | 17.06 | ||||||||
Gas ($/Mcf) | $ | 1.31 | $ | 7.01 | $ | 1.59 | $ | 1.45 | ||||||||
2018 | ||||||||||||||||
Oil ($/bbl) | $ | 56.30 | $ | 64.32 | $ | 67.69 | $ | 60.64 | ||||||||
NGL ($/bbl) | $ | 27.64 | $ | — | $ | 23.20 | $ | 26.25 | ||||||||
Gas ($/Mcf) | $ | 1.59 | $ | 6.43 | $ | 1.58 | $ | 1.62 | ||||||||
2017 | ||||||||||||||||
Oil ($/bbl) | $ | 47.91 | $ | 48.50 | $ | 50.38 | $ | 48.93 | ||||||||
NGL ($/bbl) | $ | 23.67 | $ | — | $ | 18.05 | $ | 21.63 | ||||||||
Gas ($/Mcf) | $ | 2.31 | $ | 5.08 | $ | 1.52 | $ | 1.84 |
OXY 2019 FORM 10-K | 119 |
Supplemental Oil and Gas Information (Unaudited) |
United | Latin | Middle East/ | United States | Latin America | Middle East | Total | ||||||||||||||||||||||
States | America | North Africa | Total | |||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||
Oil | — | Exploratory | — | — | 2 | 2 | ||||||||||||||||||||||
Development | 166 | 12 | 157 | 335 | ||||||||||||||||||||||||
Exploratory | 22 | — | 7 | 29 | ||||||||||||||||||||||||
Development | 422 | 68 | 129 | 619 | ||||||||||||||||||||||||
Gas | — | Exploratory | — | — | — | — | ||||||||||||||||||||||
Development | — | — | 10 | 10 | ||||||||||||||||||||||||
Exploratory | — | 2 | 5 | 7 | ||||||||||||||||||||||||
Development | 2 | — | 2 | 4 | ||||||||||||||||||||||||
Dry | — | Exploratory | — | — | 6 | 6 | ||||||||||||||||||||||
Development | — | — | — | — | ||||||||||||||||||||||||
2015 | ||||||||||||||||||||||||||||
Exploratory | 1 | 3 | 6 | 10 | ||||||||||||||||||||||||
Development | — | 1 | — | 1 | ||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||
Oil | — | Exploratory | 17 | — | 1 | 18 | ||||||||||||||||||||||
Development | 387 | 24 | 217 | 628 | ||||||||||||||||||||||||
Exploratory | 11 | 2 | 5 | 18 | ||||||||||||||||||||||||
Development | 267 | 54 | 138 | 459 | ||||||||||||||||||||||||
Gas | — | Exploratory | — | — | 2 | 2 | ||||||||||||||||||||||
Development | 4 | 1 | 12 | 17 | ||||||||||||||||||||||||
Development | 3 | — | 1 | 4 | ||||||||||||||||||||||||
Dry | — | Exploratory | — | — | 4 | 4 | ||||||||||||||||||||||
Development | — | 1 | 1 | 2 | ||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||
Exploratory | — | 2 | 3 | 5 | ||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||
Oil | — | Exploratory | 25 | — | 5 | 30 | ||||||||||||||||||||||
Development | 419 | 52 | 253 | 724 | ||||||||||||||||||||||||
Exploratory | 14 | 1 | 5 | 20 | ||||||||||||||||||||||||
Development | 201 | 51 | 105 | 357 | ||||||||||||||||||||||||
Gas | — | Exploratory | 2 | — | 2 | 4 | ||||||||||||||||||||||
Development | 33 | 1 | 13 | 47 | ||||||||||||||||||||||||
Development | 2 | — | 1 | 3 | ||||||||||||||||||||||||
Dry | — | Exploratory | — | 1 | 3 | 4 | ||||||||||||||||||||||
Development | — | 1 | — | 1 | ||||||||||||||||||||||||
Exploratory | — | — | 3 | 3 |
Wells at December 31, 2016 (a) | United States | Latin America | Middle East | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Wells at December 31, 2019 (a) | United States | Latin America | Middle East | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Oil | — | Gross (b) | 16,501 | (841 | ) | 1,493 | — | 2,209 | (28 | ) | 20,203 | (869 | ) | ||||||||||||||||||||||||||||||||||||||
Net (c) | 14,350 | (773 | ) | 748 | — | 1,198 | (15 | ) | 16,296 | (788 | ) | ||||||||||||||||||||||||||||||||||||||||
Gross (b) | 20,976 | (1,196 | ) | 1,881 | — | 2,579 | — | 25,436 | (1,196 | ) | |||||||||||||||||||||||||||||||||||||||||
Net (c) | 17,304 | (1,076 | ) | 954 | — | 1,205 | — | 19,463 | (1,076 | ) | |||||||||||||||||||||||||||||||||||||||||
Gas | — | Gross (b) | 4,083 | (319 | ) | 34 | — | 117 | — | 4,234 | (319 | ) | |||||||||||||||||||||||||||||||||||||||
Net (c) | 3,608 | (298 | ) | 31 | — | 61 | — | 3,700 | (298 | ) | |||||||||||||||||||||||||||||||||||||||||
Gross (b) | 9,596 | (2,386 | ) | 35 | — | 113 | (2 | ) | 9,744 | (2,388 | ) | ||||||||||||||||||||||||||||||||||||||||
Net (c) | 8,056 | (2,138 | ) | 33 | — | 58 | (2 | ) | 8,147 | (2,140 | ) |
(a) | The numbers in parentheses indicate the number of wells with multiple completions. |
(b) | The total number of wells in which interests are owned. |
(c) | The sum of fractional interests. |
120 | OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
Wells at December 31, 2016 | United States | Latin America | Middle East | Total | ||||||||||||
Exploratory and development wells | ||||||||||||||||
— | Gross | 34 | 5 | 26 | 65 | |||||||||||
— | Net | 32 | 4 | 16 | 52 |
United States | Latin America | Middle East | Total | |||||||||
Exploratory and development wells being drilled | ||||||||||||
Gross | 73 | 2 | 23 | 98 | ||||||||
Net | 57 | 2 | 13 | 72 | ||||||||
Exploratory and development wells pending completion (a,b) | ||||||||||||
Gross | 359 | — | — | 359 | ||||||||
Net | 294 | — | — | 294 |
(a) | Wells suspended or waiting on completion include exploration and development wells where drilling has occurred, but the wells are awaiting the completion of hydraulic fracturing or other completion activities or the resumption of drilling in the future. |
(b) | There were 138 MMBOE of PUDs primarily assigned to U.S. onshore development wells suspended or waiting on completion at December 31, 2019, Occidental expects to convert all of these PUDs reserves to developed status within five years of their initial disclosure. |
Thousands of acres at | United | Latin | Middle | |||||||||||||||||||||||||
December 31, 2016 | States | America | East | Total | ||||||||||||||||||||||||
thousands | United States | Latin America | Middle East | Total | ||||||||||||||||||||||||
Developed (a) | Developed (a) | |||||||||||||||||||||||||||
— | Gross (b) | 6,437 | 130 | 636 | 7,203 | |||||||||||||||||||||||
— | Net (c) | 2,949 | 88 | 246 | 3,283 | |||||||||||||||||||||||
Gross (b) | 6,782 | 146 | 589 | 7,517 | ||||||||||||||||||||||||
Net (c) | 4,208 | 97 | 215 | 4,520 | ||||||||||||||||||||||||
Undeveloped (d) | Undeveloped (d) | |||||||||||||||||||||||||||
— | Gross (b) | 1,597 | 269 | 1,802 | 3,668 | |||||||||||||||||||||||
— | Net (c) | 494 | 213 | 1,105 | 1,812 | |||||||||||||||||||||||
Gross (b) | 1,992 | 1,853 | 5,536 | 9,381 | ||||||||||||||||||||||||
Net (c) | 1,341 | 996 | 4,717 | 7,054 | ||||||||||||||||||||||||
Fee Mineral Ownership (e) | ||||||||||||||||||||||||||||
Gross (b) | 12,515 | — | — | 12,515 | ||||||||||||||||||||||||
Net (c) | 8,810 | — | — | 8,810 |
(a) | Acres spaced or assigned to productive wells. |
(b) | Total acres in which interests are held. |
(c) | Sum of the fractional interests owned based on working interests, or interests under PSCs and other economic arrangements. |
(d) | Acres on which wells have not been drilled or completed to a point that would permit the production of commercial quantities of oil and gas, regardless of whether the acreage contains proved reserves. |
(e) | Occidental’s fee mineral acreage is primarily undeveloped. |
OXY 2019 FORM 10-K | 121 |
Supplemental Oil and Gas Information (Unaudited) |
Production per Day (MBOE) | 2016 | 2015 | 2014 | |||||||||||||||
Sales per Day from Ongoing Operations (MBOE/d) | 2019 | 2018 | 2017 | |||||||||||||||
United States | ||||||||||||||||||
Permian Resources | 124 | 110 | 75 | 355 | 214 | 141 | ||||||||||||
Permian EOR | 145 | 145 | 147 | 154 | 154 | 150 | ||||||||||||
South Texas and Other | 33 | 73 | 96 | |||||||||||||||
DJ Basin | 120 | — | — | |||||||||||||||
Gulf of Mexico | 58 | — | — | |||||||||||||||
Other Domestic | 27 | 4 | 5 | |||||||||||||||
Total | 302 | 328 | 318 | 714 | 372 | 296 | ||||||||||||
Latin America | 34 | 37 | 29 | 34 | 32 | 33 | ||||||||||||
Middle East/North Africa | ||||||||||||||||||
Al Hosn | 64 | 35 | — | |||||||||||||||
Middle East | ||||||||||||||||||
Al Hosn Gas | 82 | 73 | 71 | |||||||||||||||
Dolphin | 43 | 41 | 38 | 42 | 40 | 42 | ||||||||||||
Oman | 96 | 89 | 76 | 89 | 86 | 95 | ||||||||||||
Qatar | 65 | 66 | 69 | 35 | 55 | 58 | ||||||||||||
Other | 26 | 72 | 67 | |||||||||||||||
Total | 294 | 303 | 250 | 248 | 254 | 266 | ||||||||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | |||||||||||||||
(See footnote following the Sales Volumes from Ongoing Operations table) | ||||||||||||||||||
Total Sales from Ongoing Operations (MBOE/d) | 996 | 658 | 595 | |||||||||||||||
Sold domestic operations | — | — | 8 | |||||||||||||||
Discontinued operations - Africa Assets | 33 | — | — | |||||||||||||||
Total Sales (MBOE/d) | 1,029 | 658 | 603 |
Production per Day from Ongoing Operations (MBOE) | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Permian Resources | 124 | 110 | 75 | ||||||
Permian EOR | 145 | 145 | 147 | ||||||
South Texas and Other | 31 | 42 | 52 | ||||||
Total | 300 | 297 | 274 | ||||||
Latin America | 34 | 37 | 29 | ||||||
Middle East | |||||||||
Al Hosn | 64 | 35 | — | ||||||
Dolphin | 43 | 41 | 38 | ||||||
Oman | 96 | 89 | 76 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Total | 268 | 231 | 183 | ||||||
Total Production Ongoing Operations (MBOE) (a) | 602 | 565 | 486 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 72 | 67 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Sales Volumes from Ongoing Operations table) |
Production per Day by Products | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | |||||||||
Permian Resources | 77 | 71 | 43 | ||||||
Permian EOR | 108 | 110 | 111 | ||||||
South Texas and Other | 4 | 21 | 29 | ||||||
Total | 189 | 202 | 183 | ||||||
NGLs (MBBL) | |||||||||
Permian Resources | 21 | 16 | 12 | ||||||
Permian EOR | 27 | 29 | 30 | ||||||
South Texas and Other | 5 | 10 | 13 | ||||||
Total | 53 | 55 | 55 | ||||||
Natural gas (MMCF) | |||||||||
Permian Resources | 158 | 137 | 120 | ||||||
Permian EOR | 59 | 37 | 38 | ||||||
South Texas and Other | 144 | 250 | 318 | ||||||
Total | 361 | 424 | 476 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 33 | 35 | 27 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 7 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Other | 7 | 32 | 28 | ||||||
Total | 168 | 194 | 173 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | |||||||||
Al Hosn | 190 | 109 | — | ||||||
Dolphin | 166 | 158 | 143 | ||||||
Oman | 115 | 44 | 43 | ||||||
Other | 114 | 237 | 236 | ||||||
Total | 585 | 548 | 422 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Sales Volumes from Ongoing Operations table) |
Production per Day by Products from Ongoing Operations | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | |||||||||
Permian Resources | 77 | 71 | 43 | ||||||
Permian EOR | 108 | 110 | 111 | ||||||
South Texas and Other | 4 | 6 | 7 | ||||||
Total | 189 | 187 | 161 | ||||||
NGLs (MBBL) | |||||||||
Permian Resources | 21 | 16 | 12 | ||||||
Permian EOR | 27 | 29 | 30 | ||||||
South Texas and Other | 5 | 7 | 9 | ||||||
Total | 53 | 52 | 51 | ||||||
Natural gas (MMCF) | |||||||||
Permian Resources | 158 | 137 | 120 | ||||||
Permian EOR | 59 | 37 | 38 | ||||||
South Texas and Other | 133 | 173 | 210 | ||||||
Total | 350 | 347 | 368 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 33 | 35 | 27 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 7 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 65 | 66 | 69 | ||||||
Total | 161 | 162 | 145 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | |||||||||
Al Hosn | 190 | 109 | — | ||||||
Dolphin | 166 | 158 | 143 | ||||||
Oman | 115 | 44 | 43 | ||||||
Total | 471 | 311 | 186 | ||||||
Total Production Ongoing Operations (MBOE) (a) | 602 | 565 | 486 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 72 | 67 | ||||||
Total Production (MBOE) (a) | 630 | 668 | 597 | ||||||
(See footnote following the Sales Volumes from Ongoing Operations table) |
Sales Volumes per Day by Products | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | 189 | 202 | 183 | ||||||
NGLs (MBBL) | 53 | 55 | 55 | ||||||
Natural gas (MMCF) | 361 | 424 | 476 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 34 | 35 | 29 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East/North Africa | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 8 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 66 | 67 | 69 | ||||||
Other | 7 | 36 | 27 | ||||||
Total | 169 | 200 | 172 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | 585 | 548 | 422 | ||||||
Total Sales Volumes (MBOE) (a) | 632 | 674 | 598 | ||||||
(See footnote following the Sales Volumes from Ongoing Operations table) |
Sales Volumes per Day by Products from Ongoing Operations | 2016 | 2015 | 2014 | ||||||
United States | |||||||||
Oil (MBBL) | 189 | 187 | 161 | ||||||
NGLs (MBBL) | 53 | 52 | 51 | ||||||
Natural gas (MMCF) | 350 | 347 | 368 | ||||||
Latin America | |||||||||
Oil (MBBL) – Colombia | 34 | 35 | 29 | ||||||
Natural gas (MMCF) – Bolivia | 8 | 10 | 11 | ||||||
Middle East | |||||||||
Oil (MBBL) | |||||||||
Al Hosn | 12 | 7 | — | ||||||
Dolphin | 7 | 8 | 7 | ||||||
Oman | 77 | 82 | 69 | ||||||
Qatar | 66 | 67 | 69 | ||||||
Total | 162 | 164 | 145 | ||||||
NGLs (MBBL) | |||||||||
Al Hosn | 20 | 10 | — | ||||||
Dolphin | 8 | 8 | 7 | ||||||
Total | 28 | 18 | 7 | ||||||
Natural gas (MMCF) | 471 | 311 | 186 | ||||||
Total Sales Ongoing Operations (MBOE) (a) | 604 | 567 | 488 | ||||||
Sold domestic operations | 2 | 31 | 44 | ||||||
Sold or Exited MENA operations | 26 | 76 | 66 | ||||||
Total Sales Volumes (MBOE) (a) | 632 | 674 | 598 | ||||||
OXY 2019 FORM 10-K |
Supplemental Oil and Gas Information (Unaudited) |
Sales per Day by Products from Ongoing Operations (MBOE/d) | 2019 | 2018 | 2017 | ||||||
United States | |||||||||
Oil (Mbbl) | |||||||||
Permian Resources | 207 | 132 | 85 | ||||||
Permian EOR | 117 | 117 | 113 | ||||||
DJ Basin | 46 | — | — | ||||||
Gulf of Mexico | 48 | — | — | ||||||
Other Domestic | 7 | 1 | 2 | ||||||
Total | 425 | 250 | 200 | ||||||
NGL (Mbbl) | |||||||||
Permian Resources | 74 | 38 | 26 | ||||||
Permian EOR | 30 | 29 | 27 | ||||||
DJ Basin | 28 | — | — | ||||||
Gulf of Mexico | 4 | — | — | ||||||
Other Domestic | 4 | — | — | ||||||
Total | 140 | 67 | 53 | ||||||
Natural gas (MMcf) | |||||||||
Permian Resources | 442 | 261 | 184 | ||||||
Permian EOR | 44 | 50 | 57 | ||||||
DJ Basin | 275 | — | — | ||||||
Gulf of Mexico | 34 | — | — | ||||||
Other Domestic | 98 | 16 | 18 | ||||||
Total | 893 | 327 | 259 | ||||||
Latin America | |||||||||
Oil (Mbbl) | 33 | 31 | 32 | ||||||
Natural gas (MMcf) | 7 | 6 | 7 | ||||||
Middle East | |||||||||
Oil (Mbbl) | |||||||||
Al Hosn Gas | 14 | 13 | 13 | ||||||
Dolphin | 7 | 7 | 7 | ||||||
Oman | 66 | 63 | 72 | ||||||
Qatar | 35 | 55 | 58 | ||||||
Total | 122 | 138 | 150 | ||||||
NGL (Mbbl) | |||||||||
Al Hosn Gas | 26 | 23 | 23 | ||||||
Dolphin | 8 | 8 | 8 | ||||||
Total | 34 | 31 | 31 | ||||||
Natural gas (MMcf) | |||||||||
Al Hosn Gas | 251 | 220 | 211 | ||||||
Dolphin | 161 | 152 | 159 | ||||||
Oman | 138 | 139 | 138 | ||||||
Total | 550 | 511 | 508 | ||||||
Total Sales from Ongoing Operations (MBOE/d) | 996 | 658 | 595 |
OXY 2019 FORM 10-K | 123 |
Schedule II – Valuation and Qualifying Accounts | Occidental Petroleum Corporation and Subsidiaries |
Additions | Additions | |||||||||||||||||||||||||||||||||||||||||
millions | Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions (a) | Balance at End of Period | |||||||||||||||||||||||||||||||||||||
2019 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 668 | $ | 126 | $ | (6 | ) | $ | — | $ | 788 | (b) | ||||||||||||||||||||||||||||||
Environmental, litigation and other reserves | $ | 994 | $ | 182 | $ | 1,408 | $ | (173 | ) | $ | 2,411 | (c) | ||||||||||||||||||||||||||||||
Balance at Beginning of Period | Charged to Costs and Expenses | Charged to Other Accounts | Deductions (a) | Balance at End of Period | ||||||||||||||||||||||||||||||||||||||
2016 | ||||||||||||||||||||||||||||||||||||||||||
2018 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 20 | $ | 543 | $ | (3 | ) | $ | (2 | ) | $ | 558 | (b) | $ | 594 | $ | 77 | $ | (3 | ) | $ | — | $ | 668 | (b) | |||||||||||||||||
Environmental, litigation, tax and other reserves | $ | 935 | $ | 140 | $ | 85 | $ | (166 | ) | $ | 994 | (c) | ||||||||||||||||||||||||||||||
2017 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 558 | $ | 37 | $ | (2 | ) | $ | 1 | $ | 594 | (b) | ||||||||||||||||||||||||||||||
Environmental, litigation, tax and other reserves | $ | 479 | $ | 61 | $ | 531 | $ | (74 | ) | $ | 997 | (c) | $ | 997 | $ | 45 | $ | 53 | $ | (160 | ) | $ | 935 | (c) | ||||||||||||||||||
2015 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 19 | $ | 9 | $ | (3 | ) | $ | (5 | ) | $ | 20 | (b) | |||||||||||||||||||||||||||||
Environmental, litigation, tax and other reserves | $ | 672 | $ | 119 | $ | 2 | $ | (314 | ) | $ | 479 | (c) | ||||||||||||||||||||||||||||||
2014 | ||||||||||||||||||||||||||||||||||||||||||
Allowance for doubtful accounts | $ | 17 | $ | 4 | $ | (2 | ) | $ | — | $ | 19 | (b) | ||||||||||||||||||||||||||||||
Environmental, litigation, tax and other reserves | $ | 496 | $ | 80 | $ | 183 | $ | (87 | ) | $ | 672 | (c) |
(a) | Primarily represents payments. |
(b) | Of these amounts, |
(c) | Of these amounts, |
124 | OXY 2019 FORM 10-K |
ITEM | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
DISCLOSURE CONTROLS AND PROCEDURES |
ITEM | OTHER INFORMATION |
OXY 2019 FORM 10-K | 125 |
ITEM | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
ITEM | EXECUTIVE COMPENSATION |
ITEM | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
SECURITIES AUTHORIZED FOR ISSUANCE UNDER EQUITY COMPENSATION PLANS |
a) | Number of securities to be issued upon exercise of outstanding options, warrants and rights | b) | Weighted-average exercise price of outstanding options, warrants and rights | c) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | ||
7,450,436 (1) | $79.98 (2) | 52,452,301 (3) |
(1) | Included shares reserved to be issued pursuant to restricted stock units, stock options (Options), and performance-based awards. Shares for performance-based awards are included assuming maximum payout, but may be paid out at lesser amounts, or not at all, according to achievement of performance goals. |
(2) | Price applies only to the Options included in column (a). Exercise price is not applicable to the other awards included in column (a). |
(3) | A plan provision requires each share covered by an award (other than stock appreciation rights (SARs) and Options) to be counted as if three shares were issued in determining the number of shares that are available for future awards. Accordingly, the number of shares available for future awards may be less than the amount shown depending on the type of award granted. Additionally, under the plan, the amount shown may increase, depending on the award type, by the number of shares currently unvested or forfeitable, or three times that number as applicable, that are forfeited or canceled, or correspond to the portion of any stock-based awards settled in cash. |
ITEM | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE |
126 | OXY 2019 FORM 10-K |
ITEM | PRINCIPAL ACCOUNTING FEES AND SERVICES |
ITEM | EXHIBITS AND FINANCIAL STATEMENT SCHEDULES |
2.2 | |
3.(i) | |
3.(i)(a) | |
3.(ii) | |
Instruments defining the rights of holders of other long-term debt of Occidental and its subsidiaries are not being filed since the total amount of securities authorized under each of such instruments does not exceed | |
All of the Exhibits numbered 10.1 to | |
10.1 | |
10.2 | |
10.3 | |
10.4 | |
10.5 | |
10.6 |
OXY 2019 FORM 10-K | 127 |
10.7 | |
10.8 | |
Form of Indemnification Agreement between Occidental and each of its directors and certain executive officers (filed as Exhibit B to the Proxy Statement of Occidental for its May 21, 1987, Annual Meeting of Stockholders, File No. 1-9210). | |
Occidental Petroleum Corporation Split Dollar Life Insurance Program and Related Documents (filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q of Occidental for the quarterly period ended September 30, 1994, File No. 1-9210). | |
10.16 | |
10.22 | |
Occidental Petroleum Corporation 2015 Long-Term Incentive Plan Form of Notice of Grant of Total Shareholder Return Incentive Award (filed as Exhibit 10.9 to the Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended June 30, 2015, File No. 1-9210). | |
128 | OXY 2019 FORM 10-K |
10.29 | |
10.31 | |
10.32 | |
10.33 | |
10.34 | |
10.35 | |
10.36 | |
10.37 | |
10.38 | |
10.39 | |
10.40 | |
10.41 | |
10.42 | |
21 | |
23.1 | |
23.2 | |
23.3 | |
31.1 | |
31.2 | |
32.1 | |
99.1 | |
99.2 | |
101.INS | Inline XBRL Instance Document. |
101.SCH | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
104 |
OXY 2019 FORM 10-K | 129 |
ITEM 16. | FORM 10-K SUMMARY |
130 | OXY 2019 FORM 10-K |
SIGNATURES |
OCCIDENTAL PETROLEUM CORPORATION | ||
By: | /s/ Vicki Hollub | |
Vicki Hollub | ||
President and Chief Executive Officer | ||
Title | Date | |||
/s/ Vicki Hollub | President, Chief Executive Officer | February | ||
Vicki Hollub | and Director | |||
/s/ | Senior Vice President and | February | ||
Chief Financial Officer | ||||
/s/ | Vice President, | February | ||
and | ||||
/s/ Spencer Abraham | Director | February | ||
Spencer Abraham | ||||
/s/ Eugene L. Batchelder | Chairman of the Board of Directors | February | ||
Eugene L. Batchelder | ||||
/s/ Margaret M. Foran | Director | February | ||
Margaret M. Foran | ||||
/s/ Carlos M. Gutierrez | Director | February | ||
Carlos M. Gutierrez | ||||
/s/ William R. Klesse | Director | February | ||
William R. Klesse | ||||
/s/ Jack B. Moore | Director | February | ||
Jack B. Moore | ||||
/s/ Avedick B. Poladian | Director | February | ||
Avedick B. Poladian | ||||
/s/ Robert M. Shearer | Director | February 27, 2020 | ||
Robert M. Shearer | ||||
/s/ Elisse B. Walter | Director | February | ||
Elisse B. Walter | ||||
OXY 2019 FORM 10-K | |