Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2017shares | |
Document and Entity Information | |
Entity Registrant Name | OCCIDENTAL PETROLEUM CORP /DE/ |
Entity Central Index Key | 797,468 |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2017 |
Amendment Flag | false |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding | 764,581,720 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,494 | $ 2,233 |
Trade receivables, net | 4,316 | 3,989 |
Inventories | 1,005 | 866 |
Assets held for sale | 162 | |
Other current assets | 1,261 | 1,340 |
Total current assets | 8,238 | 8,428 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 1,436 | 1,401 |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization of $37,607 at March 31, 2017 and $38,956 at December 31, 2016 | 32,005 | 32,337 |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 786 | 943 |
TOTAL ASSETS | 42,465 | 43,109 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 500 | |
Accounts payable | 4,071 | 3,926 |
Accrued liabilities | 2,155 | 2,436 |
Liabilities of assets held for sale | 126 | |
Total current liabilities | 6,852 | 6,362 |
LONG-TERM DEBT, NET | 9,322 | 9,819 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred domestic and foreign income taxes | 1,031 | 1,132 |
Other | 4,181 | 4,299 |
Total deferred credits and other liabilities | 5,212 | 5,431 |
STOCKHOLDERS' EQUITY | ||
Common stock, at par value ( 892,559,026 shares at March 31, 2017 and 892,214,604 shares at December 31, 2016) | 179 | 178 |
Treasury stock (127,977,306 shares at March 31, 2017 and December 31, 2016) | (9,143) | (9,143) |
Additional paid-in capital | 7,783 | 7,747 |
Retained earnings | 22,513 | 22,981 |
Accumulated other comprehensive loss | (253) | (266) |
Total stockholders' equity | 21,079 | 21,497 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 42,465 | $ 43,109 |
CONSOLIDATED CONDENSED BALANCE3
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
CONSOLIDATED CONDENSED BALANCE SHEETS | ||
Accumulated depreciation, depletion and amortization | $ 37,607 | $ 38,956 |
Common stock, outstanding shares | 892,559,026 | 892,214,604 |
Treasury stock, shares | 127,977,306 | 127,977,306 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES AND OTHER INCOME | ||
Net sales | $ 2,957 | $ 2,123 |
Interest, dividends and other income | 21 | 20 |
Gain on disposal of assets, net | 138 | |
TOTAL REVENUES AND OTHER INCOME | 2,978 | 2,281 |
COSTS AND OTHER DEDUCTIONS | ||
Cost of sales | 1,426 | 1,281 |
Selling, general and administrative and other operating expenses | 272 | 272 |
Taxes other than on income | 68 | 75 |
Depreciation, depletion and amortization | 942 | 1,102 |
Asset impairments and related items | 13 | 78 |
Exploration expense | 11 | 9 |
Interest and debt expense, net | 81 | 60 |
TOTAL COSTS AND OTHER DEDUCTIONS | 2,813 | 2,877 |
Income (loss) before income taxes and other items | 165 | (596) |
(Provision) benefit for domestic and foreign income taxes | (78) | 203 |
Income from equity investments | 30 | 33 |
Income (loss) from continuing operations | 117 | (360) |
Discontinued operations, net | 438 | |
NET INCOME | $ 117 | $ 78 |
BASIC EARNINGS PER COMMON SHARE | ||
Income (loss) from continuing operations (in dollars per share) | $ 0.15 | $ (0.47) |
Discontinued operations, net (in dollars per share) | 0.57 | |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | 0.15 | 0.10 |
DILUTED EARNINGS PER COMMON SHARE | ||
Income (loss) from continuing operations (in dollars per share) | 0.15 | (0.47) |
Discontinued operations, net (in dollars per share) | 0.57 | |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | 0.15 | 0.10 |
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.76 | $ 0.75 |
CONSOLIDATED CONDENSED STATEME5
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | |||
Net income | $ 117 | $ 78 | |
Other comprehensive income (loss) items: | |||
Foreign currency translation gains | 1 | 1 | |
Unrealized gains (losses) on derivatives | [1] | 5 | (10) |
Pension and postretirement gains | [2] | 9 | 5 |
Reclassification to income of realized (gains) losses on derivatives | [3] | (2) | 7 |
Other comprehensive income, net of tax | 13 | 3 | |
Comprehensive income | $ 130 | $ 81 | |
[1] | Net of tax of $(3) and $6 for the three months ended March 31, 2017, and 2016, respectively. | ||
[2] | Net of tax of $(5) and $(3) for the three months ended March 31, 2017, and 2016, respectively. | ||
[3] | Net of tax of $1 and $(4) for the three months ended March 31, 2017, and 2016, respectively. |
CONSOLIDATED CONDENSED STATEME6
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME | ||
Unrealized gains (losses) on derivatives, tax | $ (3) | $ 6 |
Pension and postretirement gains, tax | (5) | (3) |
Reclassification to income of realized losses on derivatives, tax | $ 1 | $ (4) |
CONSOLIDATED CONDENSED STATEME7
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income | $ 117 | $ 78 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Discontinued operations, net | (438) | |
Depreciation, depletion and amortization of assets | 942 | 1,102 |
Deferred income tax (benefit) provision | (108) | 77 |
Other noncash charges to income | 85 | 63 |
Asset impairments and related items | 13 | 78 |
Gain on sale of assets, net | (138) | |
Changes in operating assets and liabilities, net | (389) | (316) |
Other operating, net | (8) | (367) |
Operating cash flow from continuing operations | 652 | 139 |
Operating cash flow from discontinued operations | 550 | |
Net cash provided by operating activities | 652 | 689 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | (722) | (646) |
Change in capital accrual | (41) | (208) |
Proceeds from sale of assets and equity investments, net | 285 | |
Payments for purchases of assets and businesses | (19) | (24) |
Other investing, net | (37) | (44) |
Net cash used by investing activities | (819) | (637) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Change in restricted cash | 1,193 | |
Payment of long-term debt, net | (700) | |
Proceeds from issuance of common stock | 12 | 11 |
Purchases of treasury stock | (7) | |
Cash dividends paid | (584) | (574) |
Net cash used by financing activities | (572) | (77) |
Decrease in cash and cash equivalents | (739) | (25) |
Cash and cash equivalents - beginning of period | 2,233 | 3,201 |
Cash and cash equivalents - end of period | $ 1,494 | $ 3,176 |
General
General | 3 Months Ended |
Mar. 31, 2017 | |
General | |
General | 1. General In these unaudited consolidated condensed financial statements, “Occidental” means Occidental Petroleum Corporation, a Delaware corporation (OPC), or OPC and one or more entities in which it owns a controlling interest (subsidiaries). Occidental has made its disclosures in accordance with United States generally accepted accounting principles (GAAP) as they apply to interim reporting, and condensed or omitted, as permitted by the Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in consolidated financial statements and the notes. These unaudited consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2016. In the opinion of Occidental’s management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present Occidental’s consolidated financial position as of March 31, 2017 , and the consolidated statements of operations, comprehensive income and cash flows for the three months ended March 31, 2017 , and 2016 , as applicable. The income and cash flows for the periods ended March 31, 2017 , and 2016 , are not necessarily indicative of the income or cash flows to be expected for the full year. |
Asset Acquisitions, Disposition
Asset Acquisitions, Dispositions and Other | 3 Months Ended |
Mar. 31, 2017 | |
Asset Acquisitions, Dispositions and Other | |
Asset Acquisitions, Dispositions and Other | 2. Asset Acquisitions, Dispositions and Other In February 2017, Occidental entered into a sales agreement to sell its South Texas operations for approximately $0.6 billion. The transaction closed in April 2017, and is subject to customary price adjustments. The assets and liabilities related to these operations were presented as held for sale at March 31, 2017, and primarily included property, plant and equipment and asset retirement obligations. |
Accounting and Disclosure Chang
Accounting and Disclosure Changes | 3 Months Ended |
Mar. 31, 2017 | |
Accounting and Disclosure Changes | |
Accounting and Disclosure Changes | 3. Accounting and Disclosure Changes In March 2017, the Financial Accounting Standards Board (FASB) issued guidance related to presentation of net periodic pension cost and net periodic postretirement benefit cost. The rules become effective for annual periods beginning after December 15, 2017. These rules are not expected to have a material impact to Occidental’s financial statements upon adoption. In March, April, and May of 2016, the FASB issued rules clarifying several aspects of the new revenue recognition standard, previously issued in May 2014. The guidance is effective for interim and annual reporting periods starting January 1, 2018. Under the new standard, an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects what it expects to receive in exchange for the goods and services. The new standard also requires more detailed disclosures related to the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. Occidental will not early adopt the standard, and plans to use a modified retrospective approach upon adoption, with the cumulative effect of initial application recognized at the date of initial application subject to certain additional disclosures. Occidental has compiled an inventory of all revenue contracts across all segments. A portion of contracts from all significant revenue streams have been reviewed in detail against the requirements of the new standard to identify: whether such contracts are in the scope of the new standard; whether there will be material changes in the timing or amount of revenue recognized; and whether Occidental has processes and controls in place to assemble any additional required disclosures. Occidental is continuing to evaluate the impact the standard is expected to have on its consolidated financial statements. In February 2016, the FASB issued rules which require Occidental to recognize most leases, including operating leases, on the balance sheet. The new rules require lessees to recognize a right-of-use asset and lease liability for all leases with lease terms of more than 12 months. The lease liability represents the discounted obligation to make future minimum lease payments and corresponding right-of-use asset on the balance sheet for most leases. The guidance retains the current accounting for lessors and does not make significant changes to the recognition, measurement and presentation of expenses and cash flows by a lessee. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. Occidental is the lessee under various agreements for real estate, equipment, plants and facilities, aircraft, and vehicles that are currently accounted for as operating leases, refer to Note 6, Lease Commitments in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2016. As a result, these new rules will increase reported assets and liabilities. Occidental will not early adopt this standard. Occidental will apply the revised lease rules for our interim and annual reporting periods starting January 1, 2019, using a modified retrospective approach, including several optional practical expedients related to leases commenced before the effective date. Occidental is currently evaluating the effect of these rules on its financial statements, and reviewing software solutions for the identification and tracking of leases in order to develop an adoption plan based on Occidental’s population of leases under the revised definition of leases. The quantitative impacts of the new standard are dependent on the leases in force at the time of adoption. As a result, the evaluation of the effect of the new standards will extend over future periods. |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2017 | |
Supplemental Cash Flow Information | |
Supplemental Cash Flow Information | 4. Supplemental Cash Flow Information Occidental paid foreign income taxes and United States state taxes of $174 million and $102 million during the three months ended March 31, 2017, and 2016, respectively. No federal income tax payments were made during the three months ended March 31, 2017, and 2016 because Occidental reported a net operating loss on domestic operations in 2016 and 2015, respectively. Interest paid totaled $70 million and $89 million during the three months ended March 31, 2017, and 2016, respectively. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Inventories | 5. Inventories Inventories as of March 31, 2017, and December 31, 2016, consisted of the following (in millions): 2017 2016 Raw materials $ $ Materials and supplies Finished goods Revaluation to LIFO ) ) Total $ $ |
Environmental Liabilities and E
Environmental Liabilities and Expenditures | 3 Months Ended |
Mar. 31, 2017 | |
Environmental Liabilities and Expenditures | |
Environmental Liabilities and Expenditures | 6. Environmental Liabilities and Expenditures Occidental’s operations are subject to stringent federal, state, local and foreign laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar federal, state, local and foreign laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal of hazardous substances; or operation and maintenance of remedial systems. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. As of March 31, 2017, Occidental participated in or monitored remedial activities or proceedings at 147 sites. The following table presents Occidental’s environmental remediation reserves as of March 31, 2017, the current portion of which is included in accrued liabilities ($131 million) and the remainder in deferred credits and other liabilities - other ($736 million). The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency on the CERCLA National Priorities List (NPL sites) and three categories of non-NPL sites - third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. Number of Sites Reserve Balance NPL sites $ Third-party sites Occidental-operated sites Closed or non-operated Occidental sites Total $ As of March 31, 2017, Occidental’s environmental reserves exceeded $10 million each at 16 of the 147 sites described above, and 88 of the sites each had reserves of $1 million or less. Based on current estimates, Occidental expects to expend funds corresponding to approximately half of the current environmental reserves at the sites described above over the next three to four years and the balance at these sites over the subsequent 10 or more years. Occidental believes its estimable amount of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could range up to $1.1 billion. The status of Occidental’s involvement with the sites and related significant assumptions, including those sites indemnified by Maxus Energy Corporation (see further discussion below), has not changed materially since December 31, 2016. When Occidental acquired Diamond Shamrock Chemicals Company (DSCC) in 1986, Maxus Energy Corporation (Maxus), currently a subsidiary of YPF S.A. (YPF), agreed to indemnify Occidental for a number of environmental sites, including the Diamond Alkali Superfund Site (Site) along a portion of the Passaic River. On June 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in Federal District Court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with cleanup and other costs associated with the sites subject to the indemnity, including the Site. Occidental is pursuing Maxus and its parent company, YPF, as the alter ego of Maxus, to recover all indemnified costs, which will include costs to be incurred at the Site. In March 2016, the EPA issued a Record of Decision (ROD) specifying remedial actions required for the lower 8.3 miles of the Lower Passaic River. The ROD does not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay. During the third quarter of 2016, and following Maxus’s bankruptcy filing, Occidental and the EPA entered into an Administrative Order on Consent (AOC) to complete the design of the proposed cleanup plan outlined in the ROD at an estimated cost of $165 million. The EPA announced that it will pursue similar agreements with other potentially responsible parties. Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and the remediation called for in the AOC and the ROD, as well as for certain other Maxus-indemnified sites. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental’s allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be incurred to comply with the AOC, the ROD and to perform remediation at other Maxus-indemnified sites in light of the Maxus bankruptcy and the share of ultimate liability of other potentially responsible parties. |
Lawsuits, Claims, Commitments a
Lawsuits, Claims, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2017 | |
Lawsuits, Claims, Commitments and Contingencies | |
Lawsuits, Claims, Commitments and Contingencies | 7. Lawsuits, Claims, Commitments and Contingencies Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries also are involved in proceedings under CERCLA and similar federal, state, local and foreign environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief. Usually Occidental or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction. In accordance with applicable accounting guidance, Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. In Note 6, Environmental Liabilities and Expenditures, Occidental has disclosed its reserve balances for environmental remediation matters that satisfy this criteria. Reserve balances for matters, other than environmental remediation, that satisfy this criteria as of March 31, 2017, and December 31, 2016, were not material to Occidental’s consolidated balance sheets. Occidental also evaluates the amount of reasonably possible losses that it could incur as a result of outstanding lawsuits, claims and proceedings and discloses its estimable range of reasonably possible additional losses for sites where it is a participant in environmental remediation. Occidental believes that other reasonably possible losses for non-environmental matters that it could incur in excess of reserves accrued on the balance sheet would not be material to its consolidated financial position or results of operations. Occidental reassesses the probability and estimability of contingent losses as new information becomes available. Tax Matters During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and foreign tax jurisdictions. Although taxable years through 2009 for United States federal income tax purposes have been audited by the United States Internal Revenue Service (IRS) pursuant to its Compliance Assurance Program, subsequent taxable years are currently under review. Taxable years from 2002 through the current year remain subject to examination by foreign and state government tax authorities in certain jurisdictions. In certain of these jurisdictions, tax authorities are in various stages of auditing Occidental’s income taxes. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. Indemnities to Third Parties Occidental, its subsidiaries, or both, have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of March 31, 2017, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves. |
Retirement and Post-retirement
Retirement and Post-retirement Benefit Plans | 3 Months Ended |
Mar. 31, 2017 | |
Retirement and Post-retirement Benefit Plans | |
Retirement and Post-retirement Benefit Plans | 8. Retirement and Post-retirement Benefit Plans The following tables set forth the components of the net periodic benefit costs for Occidental’s defined benefit pension and post-retirement benefit plans for the three months ended March 31, 2017, and 2016 (in millions): Three months ended March 31 2017 2016 Net Periodic Benefit Costs Pension Post- Pension Post- Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss Total $ $ $ $ Occidental contributed approximately $1 million in each of the three months ended March 31, 2017, and 2016. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Fair Value Measurements | 9. Fair Value Measurements Occidental has categorized its assets and liabilities that are measured at fair value in a three-level fair value hierarchy, based on the inputs to the valuation techniques: Level 1 — using quoted prices in active markets for the assets or liabilities; Level 2 — using observable inputs other than quoted prices for the assets or liabilities; and Level 3 — using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. The following tables provide fair value measurement information for such assets and liabilities that are measured on a recurring basis as of March 31, 2017, and December 31, 2016 (in millions): Fair Value Measurements at March 31, 2017: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Liabilities: Accrued liabilities $ — $ $ — $ — $ Deferred credits and liabilities $ — $ $ — $ — $ Fair Value Measurements at December 31, 2016: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Liabilities: Accrued liabilities $ — $ $ — $ — $ Deferred credits and liabilities $ — $ $ — $ — $ Fair Values — Nonrecurring During the three months ended March 31, 2017, Occidental did not have any assets or liabilities measured at fair value on a nonrecurring basis. During the year ended December 31, 2016, Occidental recognized pre-tax impairment charges of $15 million related to proved oil and gas properties. Other Financial Instruments The carrying amounts of cash and cash equivalents and other on-balance-sheet financial instruments, other than long-term, fixed-rate debt, approximate fair value. The cost, if any, to terminate Occidental’s off-balance-sheet financial instruments is not significant. Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair value of Occidental’s debt as of March 31, 2017, and December 31, 2016, was $10.1 billion and $10.2 billion, respectively, and its carrying value net of unamortized discount and debt issuance costs as of March 31, 2017, and December 31, 2016, was $9.8 billion for both periods. The majority of Occidental’s debt is classified as Level 1, with $68 million classified as Level 2. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2017 | |
Derivatives | |
Derivatives | 10. Derivatives Occidental uses a variety of derivative financial instruments and physical contracts, including those designated as cash flow hedges, to manage its exposure to commodity price fluctuations, transportation commitments and to fix margins on the future sale of stored volumes of oil and natural gas. Where Occidental buys product for its own consumption or sells its production to a defined customer, Occidental elects normal purchases and normal sales exclusions. Occidental usually applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies to lock in margins. Occidental also enters into derivative financial instruments for speculative or trading purposes; however, the results of any transactions are immaterial to the marketing portfolio. The financial instruments not designated as hedges will impact Occidental’s earnings through mark-to-market until the offsetting future physical commodity is delivered. For GAAP purposes, any physical inventory is carried at lower of cost or market on the balance sheet. A substantial majority of Occidental’s physical derivative contracts are index-based and carry no mark-to-market value in earnings. Net gains and losses associated with derivative instruments not designated as hedging instruments are recognized currently in net sales. Net gains and losses attributable to derivative instruments subject to hedge accounting reside in accumulated other comprehensive income (loss) and are reclassified to earnings as the transactions to which the derivatives relate are recognized in earnings. Cash-Flow Hedges Occidental’s marketing operations store natural gas purchased from third parties at Occidental’s leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes. These agreements continue through 2018. As of March 31, 2017, Occidental had approximately 6 billion cubic feet (Bcf) of natural gas held in storage, and had cash-flow hedges for the forecasted sales to be settled by physical delivery of approximately 4 Bcf of stored natural gas. As of December 31, 2016, Occidental had approximately 7 billion cubic feet (Bcf) of natural gas held in storage, and had cash-flow hedges for the forecasted sales, to be settled by physical delivery, of approximately 7 Bcf of stored natural gas. The amount of cash-flow hedges, including the ineffective portion, was immaterial for the three months ended March 31, 2017, and the year ended December 31, 2016. Derivatives Not Designated as Hedging Instruments The following table summarizes the amounts reported in net sales related to the outstanding commodity derivative instruments not designated as hedging instruments as of March 31, 2017, and December 31, 2016: As of March 31, (in millions, except Long/(Short) volumes) 2017 2016 Gain (loss) on derivatives not designated as hedges Oil commodity contracts $ $ ) Natural gas commodity contracts $ $ Outstanding net volumes on derivatives not designated as hedges Oil Commodity Contracts Volume (MMBL) Price Per Bbl $ $ Natural gas commodity contracts Volume (Bcf) ) ) Price Per MMBTU $ $ Fair Value of Derivatives The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of March 31, 2017, and December 31, 2016 (in millions): As of March 31, 2017 Fair Value Measurements Using Total (in millions) (Commodity Contracts) Level 1 Level 2 Level 3 Netting (b) Value Assets: Cash-flow hedges: (a) Other current assets — — — — — Long-term receivables and other assets, net — — — — — Derivatives not designated as hedging instruments: (a) Other current assets — ) Long-term receivables and other assets, net — ) Liabilities: Cash-flow hedges: (a) Accrued liabilities — — — — — Deferred credits and liabilities — — — — — Derivatives not designated as hedging instruments: (a) Accrued liabilities — ) Deferred credits and liabilities — ) As of December 31, 2016 Fair Value Measurements Using Total (in millions) (Commodity Contracts) Level 1 Level 2 Level 3 Netting (b) Value Assets: Cash-flow hedges: (a) Other current assets — — — Long-term receivables and other assets, net — — — — — Derivatives not designated as hedging instruments: (a) Other current assets — ) Long-term receivables and other assets, net — ) Liabilities: Cash-flow hedges (a) Accrued liabilities — — — Deferred credits and liabilities — — — — — Derivatives not designated as hedging instruments: (a) Accrued liabilities — ) Deferred credits and liabilities — ) (a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets. (b) These amounts do not include collateral. As of March 31, 2017, collateral received of $6 million has been netted against derivative assets and collateral paid of $1 million has been netted against derivative liabilities. As of December 31, 2016, collateral received of $4 million has been netted against derivative assets and collateral paid of $13 million has been netted against derivative liabilities. Collateral deposited by Occidental, mainly for initial margin, of $25 million as of March 31, 2017, and December 31, 2016, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets. Credit Risk The majority of Occidental’s counterparty credit risk is related to the physical delivery of energy commodities to its customers and their inability to meet their settlement commitments. Occidental manages this credit risk by selecting counterparties that it believes to be financially strong, by entering into master netting arrangements with counterparties and by requiring collateral, as appropriate. Occidental actively reviews the creditworthiness of its counterparties and monitors credit exposures against assigned credit limits by adjusting credit limits to reflect counterparty risk, if necessary. Occidental also enters into future contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk as a significant portion of these transactions settle on a daily margin basis. Certain of Occidental’s OTC derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each would need to post. Occidental believes that if it had received a one-notch reduction in its credit ratings, it would not have resulted in a material change in its collateral-posting requirements as of March 31, 2017, and December 31, 2016. |
Industry Segments
Industry Segments | 3 Months Ended |
Mar. 31, 2017 | |
Industry Segments | |
Industry Segments | 11. Industry Segments Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGLs) and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment gathers, processes, transports, stores, purchases and markets oil, condensate, NGLs, natural gas, CO 2 and power. It also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment invests in entities that conduct similar activities. Results of industry segments generally exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment and geographic area assets and income from the segments’ equity investments. 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. The following tables present Occidental’s industry segments (in millions): Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Three months ended March 31, 2017 Net sales $ $ $ $ ) $ Pre-tax operating profit (loss) $ $ $ ) $ ) (a) $ Income taxes — — — ) (b) ) Net income (loss) $ $ $ ) $ ) $ Three months ended March 31, 2016 Net sales $ $ $ $ ) $ Pre-tax operating profit (loss) $ ) $ $ ) $ ) (a) $ ) Income taxes — — — (b) Discontinued operations, net — — — Net income (loss) $ ) $ $ ) $ $ (a) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. (b) Includes all foreign and domestic income taxes from continuing operations. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share | |
Earnings Per Share | 12. Earnings Per Share Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based awards are considered participating securities prior to vesting and, therefore, net income allocated to these participating securities has been deducted from earnings in computing basic and diluted EPS under the two-class method. Basic EPS was computed by dividing net income attributable to common stock, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, net of treasury shares and including vested but unissued shares and share units. The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards. The following table presents the calculation of basic and diluted EPS for the three months ended March 31, 2017, and 2016 (in millions, except per-share amounts): Three months ended March 31 2017 2016 Basic EPS Income (loss) from continuing operations $ $ ) Discontinued operations, net — Net Income Less: Net income allocated to participating securities — — Net Income, net of participating securities Weighted average number of basic shares Basic EPS $ $ Diluted EPS Net income, net of participating securities $ $ Weighted average number of basic shares Dilutive effect of potentially dilutive securities — Total diluted weighted average common shares Diluted EPS $ $ |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Inventories | |
Schedule of inventories | Inventories as of March 31, 2017, and December 31, 2016, consisted of the following (in millions): 2017 2016 Raw materials $ $ Materials and supplies Finished goods Revaluation to LIFO ) ) Total $ $ |
Environmental Liabilities and21
Environmental Liabilities and Expenditures (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Environmental Liabilities and Expenditures | |
Environmental remediation reserves by categories of sites | Number of Sites Reserve Balance NPL sites $ Third-party sites Occidental-operated sites Closed or non-operated Occidental sites Total $ |
Retirement and Post-retiremen22
Retirement and Post-retirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Retirement and Post-retirement Benefit Plans | |
Components of the net periodic benefit costs | The following tables set forth the components of the net periodic benefit costs for Occidental’s defined benefit pension and post-retirement benefit plans for the three months ended March 31, 2017, and 2016 (in millions): Three months ended March 31 2017 2016 Net Periodic Benefit Costs Pension Post- Pension Post- Service cost $ $ $ $ Interest cost Expected return on plan assets ) — ) — Recognized actuarial loss Total $ $ $ $ |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value Measurements | |
Assets and liabilities measured at fair value on a recurring basis | The following tables provide fair value measurement information for such assets and liabilities that are measured on a recurring basis as of March 31, 2017, and December 31, 2016 (in millions): Fair Value Measurements at March 31, 2017: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Liabilities: Accrued liabilities $ — $ $ — $ — $ Deferred credits and liabilities $ — $ $ — $ — $ Fair Value Measurements at December 31, 2016: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Liabilities: Accrued liabilities $ — $ $ — $ — $ Deferred credits and liabilities $ — $ $ — $ — $ |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivatives | |
Gross and net fair values of outstanding derivatives | The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of March 31, 2017, and December 31, 2016 (in millions): As of March 31, 2017 Fair Value Measurements Using Total (in millions) (Commodity Contracts) Level 1 Level 2 Level 3 Netting (b) Value Assets: Cash-flow hedges: (a) Other current assets — — — — — Long-term receivables and other assets, net — — — — — Derivatives not designated as hedging instruments: (a) Other current assets — ) Long-term receivables and other assets, net — ) Liabilities: Cash-flow hedges: (a) Accrued liabilities — — — — — Deferred credits and liabilities — — — — — Derivatives not designated as hedging instruments: (a) Accrued liabilities — ) Deferred credits and liabilities — ) As of December 31, 2016 Fair Value Measurements Using Total (in millions) (Commodity Contracts) Level 1 Level 2 Level 3 Netting (b) Value Assets: Cash-flow hedges: (a) Other current assets — — — Long-term receivables and other assets, net — — — — — Derivatives not designated as hedging instruments: (a) Other current assets — ) Long-term receivables and other assets, net — ) Liabilities: Cash-flow hedges (a) Accrued liabilities — — — Deferred credits and liabilities — — — — — Derivatives not designated as hedging instruments: (a) Accrued liabilities — ) Deferred credits and liabilities — ) (a) Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets. (b) These amounts do not include collateral. As of March 31, 2017, collateral received of $6 million has been netted against derivative assets and collateral paid of $1 million has been netted against derivative liabilities. As of December 31, 2016, collateral received of $4 million has been netted against derivative assets and collateral paid of $13 million has been netted against derivative liabilities. Collateral deposited by Occidental, mainly for initial margin, of $25 million as of March 31, 2017, and December 31, 2016, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets. |
Not designated as hedging instruments | Commodity contracts | |
Derivatives | |
Summary of net sales related to the outstanding commodity derivative instruments | As of March 31, (in millions, except Long/(Short) volumes) 2017 2016 Gain (loss) on derivatives not designated as hedges Oil commodity contracts $ $ ) Natural gas commodity contracts $ $ Outstanding net volumes on derivatives not designated as hedges Oil Commodity Contracts Volume (MMBL) Price Per Bbl $ $ Natural gas commodity contracts Volume (Bcf) ) ) Price Per MMBTU $ $ |
Industry Segments (Tables)
Industry Segments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Industry Segments | |
Schedule of industry segments | The following tables present Occidental’s industry segments (in millions): Oil Midstream Corporate and and and Gas Chemical Marketing Eliminations Total Three months ended March 31, 2017 Net sales $ $ $ $ ) $ Pre-tax operating profit (loss) $ $ $ ) $ ) (a) $ Income taxes — — — ) (b) ) Net income (loss) $ $ $ ) $ ) $ Three months ended March 31, 2016 Net sales $ $ $ $ ) $ Pre-tax operating profit (loss) $ ) $ $ ) $ ) (a) $ ) Income taxes — — — (b) Discontinued operations, net — — — Net income (loss) $ ) $ $ ) $ $ (a) Includes unallocated net interest expense, administration expense, environmental remediation and other pre-tax items. (b) Includes all foreign and domestic income taxes from continuing operations. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share | |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS for the three months ended March 31, 2017, and 2016 (in millions, except per-share amounts): Three months ended March 31 2017 2016 Basic EPS Income (loss) from continuing operations $ $ ) Discontinued operations, net — Net Income Less: Net income allocated to participating securities — — Net Income, net of participating securities Weighted average number of basic shares Basic EPS $ $ Diluted EPS Net income, net of participating securities $ $ Weighted average number of basic shares Dilutive effect of potentially dilutive securities — Total diluted weighted average common shares Diluted EPS $ $ |
Asset Acquisitions, Dispositi27
Asset Acquisitions, Dispositions and Other (Details) $ in Billions | Feb. 28, 2017USD ($) |
South Texas operations | Disposed of by sale | |
Asset Acquisitions, Dispositions and Other | |
Sale consideration | $ 0.6 |
Supplemental Cash Flow Inform28
Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Supplemental Cash Flow Information | ||
Foreign income taxes and United States state taxes paid | $ 174 | $ 102 |
Interest paid | $ 70 | $ 89 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Inventories | ||
Raw materials | $ 66 | $ 65 |
Materials and supplies | 452 | 446 |
Finished goods | 526 | 395 |
Inventories, Gross | 1,044 | 906 |
Revaluation to LIFO | (39) | (40) |
Total | $ 1,005 | $ 866 |
Environmental Liabilities and30
Environmental Liabilities and Expenditures (Details) $ in Millions | 1 Months Ended | 3 Months Ended | |
Mar. 31, 2016mi | Mar. 31, 2017USD ($)site | Sep. 30, 2016USD ($) | |
Environmental remediation reserves | |||
Number of Sites | site | 147 | ||
Environmental remediation reserves, current, included in accrued liabilities | $ 131 | ||
Environmental remediation reserves, noncurrent, included in deferred credits and other liabilities - other | 736 | ||
Reserve Balance | 867 | ||
Environmental reserves, exceeding $ ten million, threshold value | $ 10 | ||
Environmental reserves, exceeding $ ten million, number of sites | site | 16 | ||
Environmental reserves, range between zero to $ one million site category, number of sites | site | 88 | ||
Minimum period of expending second half of environmental reserves | 10 years | ||
Environmental remediation additional loss range | $ 1,100 | ||
Low end of range | |||
Environmental remediation reserves | |||
Period of expending first half of environmental reserves | 3 years | ||
High end of range | |||
Environmental remediation reserves | |||
Environmental reserves, range between zero to $ one million site category | $ 1 | ||
Period of expending first half of environmental reserves | 4 years | ||
Lower Passaic River | |||
Environmental remediation reserves | |||
Stretch of Lower Passaic river requiring remedial actions | mi | 8.3 | ||
Stretch of Lower Passaic river not covered by remedial actions | mi | 9 | ||
Clean-up estimated cost | $ 165 | ||
NPL sites | |||
Environmental remediation reserves | |||
Number of Sites | site | 33 | ||
Reserve Balance | $ 460 | ||
Third-party sites | |||
Environmental remediation reserves | |||
Number of Sites | site | 68 | ||
Reserve Balance | $ 160 | ||
Occidental-operated sites | |||
Environmental remediation reserves | |||
Number of Sites | site | 17 | ||
Reserve Balance | $ 110 | ||
Closed or non-operated Occidental sites | |||
Environmental remediation reserves | |||
Number of Sites | site | 29 | ||
Reserve Balance | $ 137 |
Retirement and Post-retiremen31
Retirement and Post-retirement Benefit Plans (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Pension Benefit | ||
Net Periodic Benefit Costs: | ||
Service cost | $ 2 | $ 2 |
Interest cost | 4 | 4 |
Expected return on plan assets | (6) | (6) |
Recognized actuarial loss | 2 | 3 |
Total | 2 | 3 |
Post-retirement Benefit | ||
Net Periodic Benefit Costs: | ||
Service cost | 5 | 5 |
Interest cost | 10 | 10 |
Recognized actuarial loss | 4 | 5 |
Total | 19 | 20 |
Defined benefit plans | ||
Net Periodic Benefit Costs: | ||
Employer contributions | $ 1 | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Mar. 31, 2017 | |
Liabilities: | ||
Carrying value of debt, net of unamortized discount | $ 9,800 | $ 9,800 |
Level 2 | ||
Liabilities: | ||
Debt estimated fair value | 68 | |
Fair Value | ||
Liabilities: | ||
Debt estimated fair value | 10,200 | 10,100 |
Recurring | Level 2 | Accrued liabilities | ||
Liabilities: | ||
Embedded derivative | 43 | 53 |
Recurring | Level 2 | Deferred credits and liabilities | ||
Liabilities: | ||
Embedded derivative | 178 | 204 |
Recurring | Fair Value | Accrued liabilities | ||
Liabilities: | ||
Embedded derivative | 43 | 53 |
Recurring | Fair Value | Deferred credits and liabilities | ||
Liabilities: | ||
Embedded derivative | 178 | $ 204 |
Non recurring | Proved gas and oil properties | ||
Liabilities: | ||
Pre-tax Impairment Charges | $ 15 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - ft³ ft³ in Billions | Mar. 31, 2017 | Dec. 31, 2016 |
Derivatives | ||
Natural gas held in storage (in cubic feet) | 6 | 7 |
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet) | 4 | 7 |
Derivatives - Not Designated as
Derivatives - Not Designated as Hedging Instruments (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)$ / MMBTUMMBblsBcf | Dec. 31, 2016USD ($)$ / MMBTUMMBblsBcf | |
Oil (in barrels) | Net sales | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Gain (loss) on derivatives not designated as hedges | $ | $ 9 | $ (5) |
Natural gas (in cubic feet) | Net sales | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Gain (loss) on derivatives not designated as hedges | $ | $ 3 | $ 1 |
Long position | Oil (in barrels) | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | MMBbls | 73 | 67 |
Price (in USD per Bbl or mmbtu) | $ / MMBTU | 50.66 | 53.86 |
Short position | Natural gas (in cubic feet) | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Derivative, Nonmonetary Notional Amount, Volume | Bcf | 26 | 12 |
Price (in USD per Bbl or mmbtu) | $ / MMBTU | 2.86 | 3.19 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2017 | Dec. 31, 2016 |
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral received netted against derivative assets | $ 6 | $ 4 |
Collateral paid netted against derivative liabilities | 1 | 13 |
Collateral deposited with clearinghouses and brokers | 25 | 25 |
Cash-flow hedges | Commodity contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Total net fair value, asset | 1 | |
Cash-flow hedges | Commodity contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Total net fair value, liability | 6 | |
Cash-flow hedges | Level 2 | Commodity contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 1 | |
Cash-flow hedges | Level 2 | Commodity contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 6 | |
Not designated as hedging instruments | Commodity contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Total net fair value, asset | 23 | 27 |
Netting, asset | (308) | (196) |
Not designated as hedging instruments | Commodity contracts | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Total net fair value, asset | 3 | 3 |
Netting, asset | (3) | (2) |
Not designated as hedging instruments | Commodity contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (308) | (196) |
Total net fair value, liability | 8 | 27 |
Not designated as hedging instruments | Commodity contracts | Deferred credits and other liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (3) | (2) |
Total net fair value, liability | 6 | 5 |
Not designated as hedging instruments | Level 1 | Commodity contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 285 | 166 |
Not designated as hedging instruments | Level 1 | Commodity contracts | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 4 | 2 |
Not designated as hedging instruments | Level 1 | Commodity contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 282 | 172 |
Not designated as hedging instruments | Level 1 | Commodity contracts | Deferred credits and other liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 3 | 1 |
Not designated as hedging instruments | Level 2 | Commodity contracts | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 46 | 57 |
Not designated as hedging instruments | Level 2 | Commodity contracts | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 2 | 3 |
Not designated as hedging instruments | Level 2 | Commodity contracts | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 34 | 51 |
Not designated as hedging instruments | Level 2 | Commodity contracts | Deferred credits and other liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 6 | $ 6 |
Industry Segments (Details)
Industry Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2017USD ($)segment | Mar. 31, 2016USD ($)segment | |
Segment Information | ||
Number of operating segments | segment | 3 | 3 |
Net sales | $ 2,957 | $ 2,123 |
Pre-tax operating profit (loss) | 195 | (563) |
Income taxes | (78) | 203 |
Discontinued operations, net | 438 | |
Net income (loss) | 117 | 78 |
Operating segments | Oil and Gas | ||
Segment Information | ||
Net sales | 1,894 | 1,275 |
Pre-tax operating profit (loss) | 220 | (485) |
Net income (loss) | 220 | (485) |
Operating segments | Chemical | ||
Segment Information | ||
Net sales | 1,068 | 890 |
Pre-tax operating profit (loss) | 170 | 214 |
Net income (loss) | 170 | 214 |
Operating segments | Midstream and Marketing | ||
Segment Information | ||
Net sales | 211 | 133 |
Pre-tax operating profit (loss) | (47) | (95) |
Net income (loss) | (47) | (95) |
Corporate and Eliminations | ||
Segment Information | ||
Net sales | (216) | (175) |
Pre-tax operating profit (loss) | (148) | (197) |
Income taxes | (78) | 203 |
Discontinued operations, net | 438 | |
Net income (loss) | $ (226) | $ 444 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Basic EPS | ||
Income (loss) from continuing operations | $ 117 | $ (360) |
Discontinued operations, net | 438 | |
Net income (loss) | 117 | 78 |
Net income, net of participating securities | $ 117 | $ 78 |
Weighted average number of basic shares | 764.4 | 763.4 |
Basic EPS (in dollars per share) | $ 0.15 | $ 0.10 |
Diluted EPS | ||
Net income, net of participating securities | $ 117 | $ 78 |
Weighted average number of basic shares | 764.4 | 763.4 |
Dilutive effect of potentially dilutive securities (in shares) | 0.8 | |
Total diluted weighted average common shares | 765.2 | 763.4 |
Diluted EPS (in dollars per share) | $ 0.15 | $ 0.10 |