Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2019shares | |
Document and Entity Information | |
Entity Registrant Name | OCCIDENTAL PETROLEUM CORP /DE/ |
Entity Central Index Key | 0000797468 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Amendment Flag | false |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 747,877,859 |
Entity Current Reporting Status | Yes |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 1,752 | $ 3,033 |
Trade receivables, net | 5,310 | 4,893 |
Inventories | 1,484 | 1,260 |
Other current assets | 724 | 746 |
Total current assets | 9,270 | 9,932 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 1,725 | 1,680 |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization of $43,913 at March 31, 2019, and $42,983 at December 31, 2018 | 31,900 | 31,437 |
OPERATING LEASE ASSETS | 684 | |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 801 | 805 |
TOTAL ASSETS | 44,380 | 43,854 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 116 | 116 |
Current lease liabilities | 240 | |
Accounts payable | 5,261 | 4,885 |
Accrued liabilities | 1,920 | 2,411 |
Total current liabilities | 7,537 | 7,412 |
LONG-TERM DEBT, NET | 10,203 | 10,201 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred domestic and foreign income taxes, net | 918 | 907 |
Asset retirement obligations | 1,430 | 1,424 |
Pension and postretirement obligations | 816 | 809 |
Environmental remediation reserves | 755 | 762 |
Lease liabilities | 465 | |
Other | 1,020 | 1,009 |
Total deferred credits and other liabilities | 5,404 | 4,911 |
STOCKHOLDERS' EQUITY | ||
Common stock, at par value (896,293,910 shares at March 31, 2019, and 895,115,637 shares at December 31, 2018) | 179 | 179 |
Treasury stock (148,416,051 shares at March 31, 2019, and 145,726,051 shares at December 31, 2018) | (10,653) | (10,473) |
Additional paid-in capital | 8,083 | 8,046 |
Retained earnings | 23,795 | 23,750 |
Accumulated other comprehensive loss | (168) | (172) |
Total stockholders’ equity | 21,236 | 21,330 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 44,380 | $ 43,854 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accumulated depreciation, depletion and amortization | $ 43,913 | $ 42,983 |
Common stock, outstanding (in shares) | 896,293,910 | 895,115,637 |
Treasury stock (in shares) | 148,416,051 | 145,726,051 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
REVENUES AND OTHER INCOME | ||
Net sales | $ 4,004 | $ 3,763 |
Interest, dividends and other income | 78 | 29 |
Gain on sale of assets, net | 7 | 33 |
TOTAL REVENUES AND OTHER INCOME | 4,089 | 3,825 |
COSTS AND OTHER DEDUCTIONS | ||
Cost of sales | 1,345 | 1,350 |
Purchased commodities | 365 | 13 |
Selling, general and administrative expenses | 140 | 130 |
Other operating and non-operating expenses | 238 | 177 |
Taxes other than on income | 111 | 108 |
Depreciation, depletion and amortization | 973 | 921 |
Asset impairments and related items | 0 | 30 |
Exploration expense | 36 | 15 |
Interest and debt expense, net | 98 | 97 |
TOTAL COSTS AND OTHER DEDUCTIONS | 3,306 | 2,841 |
Income before income taxes and other items | 783 | 984 |
Provision for domestic and foreign income taxes | (225) | (339) |
Income from equity investments | 73 | 63 |
NET INCOME | $ 631 | $ 708 |
BASIC EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.84 | $ 0.92 |
DILUTED EARNINGS PER COMMON SHARE (in dollars per share) | $ 0.84 | $ 0.92 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 631 | $ 708 | |
Other comprehensive income (loss) items: | |||
Foreign currency translation gains | 0 | 1 | |
Unrealized gains (losses) on derivatives | [1] | 2 | (3) |
Pension and postretirement gains (losses) | [2] | 2 | 4 |
Reclassification of realized (gains) losses on derivatives | [3] | 0 | 2 |
Other comprehensive income, net of tax | 4 | 4 | |
Comprehensive income | $ 635 | $ 712 | |
[1] | Net of tax of zero and $1 for the three months ended March 31, 2019, and 2018, respectively. | ||
[2] | Net of tax of $(1) and $(1) for the three months ended March 31, 2019, and 2018, respectively. | ||
[3] | Net of tax of zero and $(1) for the three months ended March 31, 2019, and 2018, respectively. |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) on derivatives, tax | $ 0 | $ 1 |
Pension and postretirement gains, tax | (1) | (1) |
Reclassification to income of realized (gains) losses on derivatives, tax | $ 0 | $ (1) |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income | $ 631 | $ 708 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, depletion and amortization of assets | 973 | 921 |
Deferred income tax provision | 10 | 94 |
Other noncash charges (benefits) to income | 225 | (23) |
Asset impairments and related items | 0 | 30 |
Gain on sale of assets, net | (7) | (33) |
Changes in operating assets and liabilities, net | (884) | (688) |
Net cash provided by operating activities | 948 | 1,009 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | (1,259) | (1,032) |
Change in capital accrual | (51) | (45) |
Payments for purchases of assets and businesses | (69) | (177) |
Sales of assets, net | 16 | 275 |
Equity investments and other, net | (52) | 8 |
Net cash used by investing activities | (1,415) | (971) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net | 0 | 978 |
Payments of long-term debt | 0 | (500) |
Proceeds from issuance of common stock | 16 | 10 |
Purchase of treasury stock | (237) | 0 |
Cash dividends paid | (591) | (592) |
Other financing, net | (2) | 0 |
Net cash used by financing activities | (814) | (104) |
Decrease in cash and cash equivalents | (1,281) | (66) |
Cash and cash equivalents — beginning of period | 3,033 | 1,672 |
Cash and cash equivalents — end of period | $ 1,752 | $ 1,606 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive loss |
Beginning balance at Dec. 31, 2017 | $ 20,572 | $ 179 | $ (9,168) | $ 7,884 | $ 21,935 | $ (258) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 708 | 708 | ||||
Other comprehensive income, net of tax | 4 | 4 | ||||
Dividends on common stock | (594) | (594) | ||||
Issuance of common stock, net | 32 | 32 | ||||
Reclassification of stranded tax effects | 58 | (58) | ||||
Ending balance at Mar. 31, 2018 | 20,722 | 179 | (9,168) | 7,916 | 22,107 | (312) |
Beginning balance at Dec. 31, 2018 | 21,330 | 179 | (10,473) | 8,046 | 23,750 | (172) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 631 | 631 | ||||
Other comprehensive income, net of tax | 4 | 4 | ||||
Dividends on common stock | (586) | (586) | ||||
Issuance of common stock, net | 37 | 37 | ||||
Purchases of treasury stock | (180) | (180) | ||||
Ending balance at Mar. 31, 2019 | $ 21,236 | $ 179 | $ (10,653) | $ 8,083 | $ 23,795 | $ (168) |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.78 | $ 0.77 |
General
General | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 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, 2018 . 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, 2019 and December 31, 2018, and the consolidated statements of operations, comprehensive income, cash flows and stockholders' equity for the three months ended March 31, 2019 , and 2018 . Certain data in the financial statements and notes for prior periods have been reclassified to conform to the current presentation. The income and cash flows for the periods ended March 31, 2019 , and 2018 , are not necessarily indicative of the income or cash flows to be expected for the full year. |
Accounting and Disclosure Chang
Accounting and Disclosure Changes | 3 Months Ended |
Mar. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Accounting and Disclosure Changes | Accounting and Disclosure Changes In January 2019, Occidental adopted the new lease standard Topic 842 - Leases (ASC 842). The new standard requires Occidental to recognize most leases, including operating leases, on the balance sheet. The new rules require lessees to recognize a right-of-use asset (ROU) and lease liability for all leases with lease terms of more than 12 months. Occidental adopted the standard using the modified retrospective approach, including adopting several optional practical expedients. Occidental has developed and implemented an internal software solution to support the identification, documentation, tracking, accounting and supplemental reporting of leases under ASC 842. Continued enhancements to the software solution through 2019 are expected to ensure manual processes are streamlined while maintaining control functionality surrounding completeness in population and reporting. See Note 13, Leases . |
Revenue Recognition
Revenue Recognition | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition Revenue from customers is recognized when obligations under the terms of a contract with our customers are satisfied; this generally occurs with the delivery of oil, gas, natural gas liquids (NGL), chemicals or services such as transportation. Occidental does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to Occidental. As of March 31, 2019, trade receivables, net, of $5.3 billion represent rights to payment for which Occidental has satisfied its obligations under a contract and its right to payment is conditioned only on the passage of time. The following table shows a reconciliation of revenue from customers to total net sales (in millions): For the three months ended March 31, 2019 2018 Revenue from customers $ 3,435 $ 3,694 All other revenues (a) 569 69 Total net sales $ 4,004 $ 3,763 (a) Includes net marketing margin and chemical exchange contracts. The following table presents Occidental's revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, gas and NGL at the lease or concession area. Chemical revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, Midstream revenues are shown by the location of sale (in millions): For the three months ended March 31, 2019 Revenue by Product United States Middle East Latin America Other International Eliminations Total Oil and Gas Segment Oil $ 1,205 $ 758 $ 135 $ — $ — $ 2,098 NGL 78 65 — — — 143 Gas 47 79 4 — — 130 Other (21 ) 1 — — — (20 ) Segment Total $ 1,309 $ 903 $ 139 $ — $ — $ 2,351 Chemical Segment $ 993 $ — $ 43 $ 19 $ — $ 1,055 Midstream Segment Gas Processing 105 102 — — — 207 Power and Other 44 — — — — 44 Segment Total $ 149 $ 102 $ — $ — $ — $ 251 Eliminations $ — $ — $ — $ — $ (222 ) $ (222 ) Consolidated $ 2,451 $ 1,005 $ 182 $ 19 $ (222 ) $ 3,435 For the three months ended March 31, 2018 Revenue by Product United States Middle East Latin America Other International Eliminations Total Oil and Gas Segment Oil $ 1,247 $ 773 $ 170 $ — $ — $ 2,190 NGL 89 51 — — — 140 Gas 52 65 4 — — 121 Other 3 — — — — 3 Segment Total $ 1,391 $ 889 $ 174 $ — $ — $ 2,454 Chemical Segment $ 1,049 $ — $ 52 $ 21 $ — $ 1,122 Midstream Segment Gas Processing 137 96 — — — 233 Pipelines 94 — — — — 94 Power and Other 25 — — — — 25 Segment Total $ 256 $ 96 $ — $ — $ — $ 352 Eliminations $ — $ — $ — $ — $ (234 ) $ (234 ) Consolidated $ 2,696 $ 985 $ 226 $ 21 $ (234 ) $ 3,694 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Occidental paid foreign and domestic state income taxes of $ 222 million and $ 227 million during the three months ended March 31, 2019 , and 2018 , respectively. No federal income tax payments were made during the three months ended March 31, 2019, and 2018. Interest paid totaled $ 114 million and $ 97 million during the three months ended March 31, 2019 , and 2018 , respectively. Occidental acquired property and equipment of $94 million under build-to-suit leases during the three months ended March 31, 2019. |
Inventories
Inventories | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Finished goods primarily represents crude oil, which is carried at lower of weighted average cost or market value, and caustic soda and chlorine, which are valued under the last-in, first-out (LIFO) method. Inventories as of March 31, 2019 , and December 31, 2018 , consisted of the following (in millions): 2019 2018 Raw materials $ 71 $ 74 Materials and supplies 470 445 Finished goods 990 788 1,531 1,307 Revaluation to LIFO (47 ) (47 ) Total $ 1,484 $ 1,260 |
Environmental Liabilities and E
Environmental Liabilities and Expenditures | 3 Months Ended |
Mar. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Environmental Liabilities and Expenditures | Environmental Liabilities and Expenditures Occidental’s operations are subject to stringent federal, state, local and international 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 international 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; or operation and maintenance of remedial systems. The 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, 2019, Occidental participated in or monitored remedial activities or proceedings at 146 sites. The following table presents Occidental’s current and non-current environmental remediation reserves as of March 31, 2019, the current portion of which is included in accrued liabilities ($ 120 million ) and the remainder in deferred credits and other liabilities - environmental remediation reserves ($ 755 million ). The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency (EPA) 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 35 $ 458 Third-party sites 68 170 Occidental-operated sites 14 114 Closed or non-operated Occidental sites 29 133 Total 146 $ 875 As of March 31, 2019, Occidental’s environmental reserves exceeded $10 million each at 16 of the 146 sites described above, and 91 of the sites had reserves from $0 to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately 40 percent of the 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 range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be 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 (Maxus), has not changed materially since December 31, 2018. Maxus Environmental Sites When Occidental acquired Diamond Shamrock Chemicals Company (DSCC) in 1986, Maxus, 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 September 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 clean-up and other costs associated with the sites subject to the indemnity, including 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 clean-up 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 accrued estimated environmental reserve does not consider any recoveries for indemnified costs. 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. In June 2018, Occidental filed a complaint under CERCLA in Federal District Court in the State of New Jersey against numerous potentially responsible parties for reimbursement of amounts incurred or to be incurred to comply with the AOC, the ROD or to perform other remediation activities at the Site. In June 2017, the court overseeing the Maxus bankruptcy approved a Plan of Liquidation (Plan) to liquidate Maxus and create a trust to pursue claims against YPF, Repsol and others to satisfy claims by Occidental and other creditors for past and future cleanup and other costs. In July 2017, the court-approved Plan became final and the trust became effective. Among other responsibilities, the trust will pursue claims against YPF, Repsol and others and distribute assets to Maxus' creditors in accordance with the trust agreement and Plan. In June 2018, the trust filed its complaint against YPF and Repsol in Delaware bankruptcy court asserting claims based upon, among other things, fraudulent transfer and alter ego. On February 15, 2019, the bankruptcy court denied Repsol's and YPF's motions to dismiss the complaint. |
Lawsuits, Claims, Commitments a
Lawsuits, Claims, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Lawsuits, Claims, Commitments and Contingencies | Lawsuits, Claims, Commitments and Contingencies Legal Matters 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, 2019, and December 31, 2018, were not material to Occidental’s consolidated balance sheets. In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental's Participation Contract for Block 15. The awarded amount represented a recovery of 60 percent of the value of Block 15. In 2017, Andes Petroleum Ecuador Ltd. (Andes) filed a demand for arbitration, claiming it is entitled to a 40 percent share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60 percent economic interest in the block. The merits hearing is scheduled for May 2020. Occidental intends to vigorously defend against this claim in arbitration. The ultimate outcome and impact of outstanding lawsuits, claims and proceedings on Occidental cannot be predicted. Management believes that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on Occidental's consolidated balance sheet. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. 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. Taxable years through 2016 for United States federal income tax purposes have been audited by the United States Internal Revenue Service (IRS) pursuant to its Compliance Assurance Program and subsequent taxable years are currently under review. Taxable years through 2009 have been audited for state income tax purposes. While a single foreign tax jurisdiction is open for 2002 and subsequent years, all other significant audit matters in foreign jurisdictions have been resolved through 2010. 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, 2019, 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 Postretirement B
Retirement and Postretirement Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefit Plans | Retirement and Postretirement Benefit Plans The following table sets forth the components of the net periodic benefit costs for Occidental’s defined benefit plans for the three months ended March 31, 2019 , and 2018 (in millions): Three months ended March 31 2019 2018 Net Periodic Benefit Costs Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit Service cost $ 1 $ 6 $ 2 $ 6 Interest cost 4 8 4 9 Expected return on plan assets (5 ) — (6 ) — Recognized actuarial loss 2 2 1 4 Recognized prior service cost — (2 ) — — Total $ 2 $ 14 $ 1 $ 19 Occidental contributed approximately $ 1 million to the defined benefit pension plans in the three months ended March 31, 2019, and 2018. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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, 2019 , and December 31, 2018 (in millions): Fair Value Measurements at March 31, 2019: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair Liabilities: Accrued liabilities $ — $ 38 $ — $ — $ 38 Deferred credits and other liabilities - other $ — $ 74 $ — $ — $ 74 Fair Value Measurements at December 31, 2018: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair Liabilities: Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other $ — $ 116 $ — $ — $ 116 Fair Values — Nonrecurring During the three months ended March 31, 2019, Occidental did not have any assets or liabilities measured at fair value on a nonrecurring basis. During 2018, Occidental recognized pre-tax impairment and related charges of $416 million primarily related to Qatar Idd El Shargi North Dome (ISND) and Idd El Shargi South Dome proved properties and inventory. The fair value of the proved properties was measured based on the income approach, which incorporated a number of assumptions involving expectations of future cash flows. These assumptions included estimates of future product prices, which Occidental based on forward price curves, estimates of oil and gas reserves, estimates of future expected operating and capital costs and a risk-adjusted discount rate of 10 percent . These inputs are categorized as Level 3 in the fair value hierarchy. As the end of the contract period for ISND approaches, significant changes to estimated future cash flows could result in additional impairment charges. 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, 2019 , and December 31, 2018 , was $10.8 billion and $10.3 billion , respectively. The remaining principal payments, less the discount on long-term debt, aggregated approximately $10.4 billion as of March 31, 2019, and December 31, 2018. |
Derivatives
Derivatives | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives | 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 may elect 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. 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 loss and are reclassified to earnings as the transactions to which the derivatives relate are recognized in earnings. 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 credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring collateral or other credit risk mitigants, as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. 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 over-the-counter 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, 2019, and December 31, 2018. 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. As of March 31, 2019, Occidental had approximately 1 billion cubic feet (Bcf) of natural gas held in storage with no cash flow hedges currently associated with the stored volumes. As of December 31, 2018, Occidental had approximately 5 Bcf of natural gas held in storage, and had cash flow hedges for the forecast sales, to be settled by physical delivery, of approximately 4 Bcf of stored natural gas. The amount of cash flow hedges, including the ineffective portion, was immaterial for the three months ended March 31, 2019, and the year ended December 31, 2018. Derivatives Not Designated as Hedging Instruments Forward unrealized instruments that are derivatives not designated as hedging instruments are required to be recorded on the income statement and balance sheet at fair value. The fair value represents an unrealized gain or loss between executed sales prices and market prices at the end of the period. The fair value does not reflect the realized or cash value of the instrument. Substantially all of the fair value of Occidental's derivative instruments not designated as hedges are used to manage its exposure to commodity price fluctuations and settle within three months at a weighted average contract price of $60.04 per barrel and $2.36 per thousand cubic feet (Mcf) for crude oil and natural gas, respectively, at March 31, 2019. The remaining fair value of derivative instruments not designated as hedges was immaterial. The weighted average contract price was $58.81 per barrel and $3.18 per Mcf for crude oil and natural gas, respectively, at December 31, 2018. The following table summarizes the amounts reported in net sales related to the outstanding commodity derivatives not designated as hedging instruments as of March 31, 2019, and December 31, 2018. (in millions, except Long/(Short) volumes) 2019 2018 Unrealized gain (loss) on derivatives not designated as hedges Crude Oil Commodity Contracts $ (63 ) $ 184 Natural Gas Commodity Contracts $ 3 $ 5 Outstanding net volumes on derivatives not designated as hedges Crude Oil Commodity Contracts Volume (MMBL) 56 61 Natural Gas Commodity Contracts Volume (Bcf) (162 ) (142 ) Fair Value of Derivatives The following tables present the gross and net fair values of Occidental’s outstanding derivatives: As of March 31, 2019 Fair Value Measurements Using Netting (b) Total Fair Value (in millions) Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivatives not designated as hedges (a) Commodity Contracts Other current assets 1,077 48 — (1,099 ) 26 Long-term receivables and other assets, net 19 8 — (19 ) 8 Liabilities: Derivatives not designated as hedges (a) Commodity Contracts Accrued liabilities 1,136 54 — (1,099 ) 91 Deferred credits and other liabilities - other 20 2 — (19 ) 3 (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 condensed balance sheets. (b) These amounts do not include collateral. As of March 31, 2019, no collateral received has been netted against derivative assets and collateral paid of $ 66 million has been netted against derivative liabilities. Occidental had $ 94 million of initial margin deposited with brokers as of March 31, 2019. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables. As of December 31, 2018 Fair Value Measurements Using Netting (b) Total Fair Value (in millions) Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivatives not designated as hedges (a) Commodity Contracts Other current assets 2,531 110 — (2,392 ) 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Liabilities: Cash-flow hedges (a) Commodity contracts Accrued liabilities — 2 — — 2 Derivatives not designated as hedges (a) Commodity contracts Accrued liabilities 2,357 101 — (2,392 ) 66 Deferred credits and other liabilities - other 6 2 — (6 ) 2 (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 condensed balance sheets. (b) These amounts do not include collateral. As of December 31, 2018, $ 45 million collateral received has been netted against derivative assets and collateral paid of $ 1 million has been netted against derivative liabilities. Occidental had $ 178 million of initial margin deposited with brokers as of December 31, 2018. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables. |
Industry Segments
Industry Segments | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Industry Segments | 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, NGL and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGL, natural gas, carbon dioxide (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 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, 2019 Net sales $ 2,351 $ 1,059 $ 816 $ (222 ) $ 4,004 Pre-tax operating profit (loss) $ 484 $ 265 $ 279 $ (172 ) (a) $ 856 Income taxes — — — (225 ) (b) (225 ) Net income (loss) $ 484 $ 265 $ 279 $ (397 ) $ 631 Three months ended March 31, 2018 Net sales $ 2,454 $ 1,154 $ 389 $ (234 ) $ 3,763 Pre-tax operating profit (loss) $ 750 $ 298 $ 179 $ (180 ) (a) $ 1,047 Income taxes — — — (339 ) (b) (339 ) Net income (loss) $ 750 $ 298 $ 179 $ (519 ) $ 708 (a) Includes unallocated net interest expense, administration expense, environmental remediation and other items. (b) Includes all foreign and domestic income taxes. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the calculation of basic and diluted EPS for the three months ended March 31, 2019 , and 2018 (in millions, except per-share amounts): 2019 2018 Basic EPS Net Income $ 631 $ 708 Less: Net income allocated to participating securities (3 ) (3 ) Net Income, net of participating securities 628 705 Weighted average number of basic shares 748.9 765.6 Basic EPS $ 0.84 $ 0.92 Diluted EPS Net income, net of participating securities $ 628 $ 705 Weighted average number of basic shares 748.9 765.6 Dilutive effect of potentially dilutive securities 1.6 1.4 Total diluted weighted average common shares 750.5 767.0 Diluted EPS $ 0.84 $ 0.92 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, Occidental adopted ASC 842 using the modified retrospective approach, which provided a method for recording existing leases at adoption and did not require restatement of prior year amounts and disclosures which continue to be reflected in accordance with ASC 840. Occidental elected certain practical expedients including: • Leases that commenced before the effective date carried forward their historical lease classification. • Existing or expired land easements as of December 31, 2018 were not reassessed to determine whether or not they contained a lease. • Leases with a lease term of twelve months or less from lease commencement date are considered short-term leases and not recorded on the balance sheet; however, the lease expenditures recognized are captured and reported as incurred. • 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 drilling rigs considered long-term in nature, 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. ASC 842 requires lessees to recognize an ROU asset and lease liability for all long-term leases. An ROU asset represents Occidental’s right to use an underlying asset for the lease term and the associated lease liability represents the discounted obligation of future minimum lease payments. Occidental identifies leases through its accounts payable and contract monitoring process. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The ROU assets include the discounted obligation in addition to any upfront payments or costs incurred during the contract execution of the lease. Except for leases with explicitly defined contract terms, Occidental utilizes judgment to assess likelihood of renewals, terminations and purchase options, in order to determine the lease term. Occidental uses the incremental borrowing rate at commencement date to determine the present value of lease payments. The incremental borrowing rate equates to the rate of interest that Occidental would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain leases include variable lease payments which are over and above the minimum lease liability used to derive the ROU asset and lease liability and are based on the underlying asset’s operations. These variable lease costs are reported in the lease cost classification table below. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The criteria for distinguishing between finance and operating leases are substantially similar to criteria under ASC 840. Adoption of ASC 842 resulted in recording of net lease assets and lease liabilities of $772 million , respectively, as of January 1, 2019. There was no material impact to net income, cash flows or stockholders’ equity. Nature of Leases Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including drilling rigs, compressors and other field equipment, which are recorded gross on the balance sheet and in the lease cost disclosures below. Actual expenditures are netted against joint interest recoveries on the income statement through the normal joint interest billing process. Occidental’s leases also include pipelines and other transportation equipment, rail cars, power plants, machinery, terminals, storage facilities, land, easements and residential and office space, which typically are not associated with joint interest recoveries. The following table presents Occidental's lease balances and their location on the balance sheet at March 31, 2019 (in millions): Balance sheet location 2019 Assets: Operating Operating lease assets $ 684 Finance Property, plant, and equipment, net 23 Total leased assets $ 707 Liabilities: Current Operating Current lease liabilities $ 229 Finance Current lease liabilities 11 Non-current Operating Deferred credits and other liabilities - Lease liabilities 453 Finance Deferred credits and other liabilities - Lease liabilities 12 Total lease liabilities $ 705 At March 31, 2019, Occidental's leases matured on the following schedule (in millions): Operating Finance Leases (a) Leases (b) Total Remainder of 2019 $ 166 $ 9 $ 175 2020 167 12 179 2021 110 1 111 2022 78 1 79 2023 53 1 54 Thereafter 170 — 170 Total lease payments 744 24 768 Less: Interest (62 ) (1 ) (63 ) Present value of lease liabilities $ 682 $ 23 $ 705 (a) The weighted average remaining lease term is 5.7 years and the weighted average discount rate is 3.12% . (b) The weighted average remaining lease term is 2.5 years and the weighted average discount rate is 2.95% . At December 31, 2018 , future undiscounted net minimum fixed lease payments for non-cancellable operating leases, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows (in millions): Amount 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments $ 704 The following tables present Occidental's total lease cost and classifications as well as cash paid for amounts included in the measurement of operating lease liabilities. Lease costs and amounts paid associated with finance leases were immaterial for the three months ended March 31, 2019 (in millions): Lease cost classification (a,b) Property, plant and equipment, net $ 91 Cost of sales 77 Selling, general and administrative expenses 16 Total $ 184 Cash paid on operating leases (b) Cash flow from operating activities $ 48 Cash flow from investing activities $ 19 (a) Includes short-term lease costs of $86 million and variable lease costs of $31 million . (b) Amounts reflected are gross before joint interest recoveries. |
Leases | Leases On January 1, 2019, Occidental adopted ASC 842 using the modified retrospective approach, which provided a method for recording existing leases at adoption and did not require restatement of prior year amounts and disclosures which continue to be reflected in accordance with ASC 840. Occidental elected certain practical expedients including: • Leases that commenced before the effective date carried forward their historical lease classification. • Existing or expired land easements as of December 31, 2018 were not reassessed to determine whether or not they contained a lease. • Leases with a lease term of twelve months or less from lease commencement date are considered short-term leases and not recorded on the balance sheet; however, the lease expenditures recognized are captured and reported as incurred. • 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 drilling rigs considered long-term in nature, 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. ASC 842 requires lessees to recognize an ROU asset and lease liability for all long-term leases. An ROU asset represents Occidental’s right to use an underlying asset for the lease term and the associated lease liability represents the discounted obligation of future minimum lease payments. Occidental identifies leases through its accounts payable and contract monitoring process. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The ROU assets include the discounted obligation in addition to any upfront payments or costs incurred during the contract execution of the lease. Except for leases with explicitly defined contract terms, Occidental utilizes judgment to assess likelihood of renewals, terminations and purchase options, in order to determine the lease term. Occidental uses the incremental borrowing rate at commencement date to determine the present value of lease payments. The incremental borrowing rate equates to the rate of interest that Occidental would have to pay to borrow on a collateralized basis over a similar term an amount equal to the lease payments in a similar economic environment. Certain leases include variable lease payments which are over and above the minimum lease liability used to derive the ROU asset and lease liability and are based on the underlying asset’s operations. These variable lease costs are reported in the lease cost classification table below. Recognition, measurement and presentation of expenses and cash flows arising from a lease will depend on classification as a finance or operating lease. The criteria for distinguishing between finance and operating leases are substantially similar to criteria under ASC 840. Adoption of ASC 842 resulted in recording of net lease assets and lease liabilities of $772 million , respectively, as of January 1, 2019. There was no material impact to net income, cash flows or stockholders’ equity. Nature of Leases Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including drilling rigs, compressors and other field equipment, which are recorded gross on the balance sheet and in the lease cost disclosures below. Actual expenditures are netted against joint interest recoveries on the income statement through the normal joint interest billing process. Occidental’s leases also include pipelines and other transportation equipment, rail cars, power plants, machinery, terminals, storage facilities, land, easements and residential and office space, which typically are not associated with joint interest recoveries. The following table presents Occidental's lease balances and their location on the balance sheet at March 31, 2019 (in millions): Balance sheet location 2019 Assets: Operating Operating lease assets $ 684 Finance Property, plant, and equipment, net 23 Total leased assets $ 707 Liabilities: Current Operating Current lease liabilities $ 229 Finance Current lease liabilities 11 Non-current Operating Deferred credits and other liabilities - Lease liabilities 453 Finance Deferred credits and other liabilities - Lease liabilities 12 Total lease liabilities $ 705 At March 31, 2019, Occidental's leases matured on the following schedule (in millions): Operating Finance Leases (a) Leases (b) Total Remainder of 2019 $ 166 $ 9 $ 175 2020 167 12 179 2021 110 1 111 2022 78 1 79 2023 53 1 54 Thereafter 170 — 170 Total lease payments 744 24 768 Less: Interest (62 ) (1 ) (63 ) Present value of lease liabilities $ 682 $ 23 $ 705 (a) The weighted average remaining lease term is 5.7 years and the weighted average discount rate is 3.12% . (b) The weighted average remaining lease term is 2.5 years and the weighted average discount rate is 2.95% . At December 31, 2018 , future undiscounted net minimum fixed lease payments for non-cancellable operating leases, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows (in millions): Amount 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments $ 704 The following tables present Occidental's total lease cost and classifications as well as cash paid for amounts included in the measurement of operating lease liabilities. Lease costs and amounts paid associated with finance leases were immaterial for the three months ended March 31, 2019 (in millions): Lease cost classification (a,b) Property, plant and equipment, net $ 91 Cost of sales 77 Selling, general and administrative expenses 16 Total $ 184 Cash paid on operating leases (b) Cash flow from operating activities $ 48 Cash flow from investing activities $ 19 (a) Includes short-term lease costs of $86 million and variable lease costs of $31 million . (b) Amounts reflected are gross before joint interest recoveries. |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Accounting | 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. |
Accounting and Disclosure Changes | Accounting and Disclosure Changes In January 2019, Occidental adopted the new lease standard Topic 842 - Leases (ASC 842). The new standard requires Occidental to recognize most leases, including operating leases, on the balance sheet. The new rules require lessees to recognize a right-of-use asset (ROU) and lease liability for all leases with lease terms of more than 12 months. Occidental adopted the standard using the modified retrospective approach, including adopting several optional practical expedients. Occidental has developed and implemented an internal software solution to support the identification, documentation, tracking, accounting and supplemental reporting of leases under ASC 842. Continued enhancements to the software solution through 2019 are expected to ensure manual processes are streamlined while maintaining control functionality surrounding completeness in population and reporting. See Note 13, Leases . |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of reconciliation of revenue from customers to total net sales | The following table shows a reconciliation of revenue from customers to total net sales (in millions): For the three months ended March 31, 2019 2018 Revenue from customers $ 3,435 $ 3,694 All other revenues (a) 569 69 Total net sales $ 4,004 $ 3,763 (a) Includes net marketing margin and chemical exchange contracts. |
Schedule of revenue from customers by segment, product, and geographical area | Excluding net marketing revenue, Midstream revenues are shown by the location of sale (in millions): For the three months ended March 31, 2019 Revenue by Product United States Middle East Latin America Other International Eliminations Total Oil and Gas Segment Oil $ 1,205 $ 758 $ 135 $ — $ — $ 2,098 NGL 78 65 — — — 143 Gas 47 79 4 — — 130 Other (21 ) 1 — — — (20 ) Segment Total $ 1,309 $ 903 $ 139 $ — $ — $ 2,351 Chemical Segment $ 993 $ — $ 43 $ 19 $ — $ 1,055 Midstream Segment Gas Processing 105 102 — — — 207 Power and Other 44 — — — — 44 Segment Total $ 149 $ 102 $ — $ — $ — $ 251 Eliminations $ — $ — $ — $ — $ (222 ) $ (222 ) Consolidated $ 2,451 $ 1,005 $ 182 $ 19 $ (222 ) $ 3,435 For the three months ended March 31, 2018 Revenue by Product United States Middle East Latin America Other International Eliminations Total Oil and Gas Segment Oil $ 1,247 $ 773 $ 170 $ — $ — $ 2,190 NGL 89 51 — — — 140 Gas 52 65 4 — — 121 Other 3 — — — — 3 Segment Total $ 1,391 $ 889 $ 174 $ — $ — $ 2,454 Chemical Segment $ 1,049 $ — $ 52 $ 21 $ — $ 1,122 Midstream Segment Gas Processing 137 96 — — — 233 Pipelines 94 — — — — 94 Power and Other 25 — — — — 25 Segment Total $ 256 $ 96 $ — $ — $ — $ 352 Eliminations $ — $ — $ — $ — $ (234 ) $ (234 ) Consolidated $ 2,696 $ 985 $ 226 $ 21 $ (234 ) $ 3,694 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories as of March 31, 2019 , and December 31, 2018 , consisted of the following (in millions): 2019 2018 Raw materials $ 71 $ 74 Materials and supplies 470 445 Finished goods 990 788 1,531 1,307 Revaluation to LIFO (47 ) (47 ) Total $ 1,484 $ 1,260 |
Environmental Liabilities and_2
Environmental Liabilities and Expenditures (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of current and non-current environmental remediation reserves by categories of sites | Number of Sites Reserve Balance NPL sites 35 $ 458 Third-party sites 68 170 Occidental-operated sites 14 114 Closed or non-operated Occidental sites 29 133 Total 146 $ 875 |
Retirement and Postretirement_2
Retirement and Postretirement Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of the net periodic benefit costs | The following table sets forth the components of the net periodic benefit costs for Occidental’s defined benefit plans for the three months ended March 31, 2019 , and 2018 (in millions): Three months ended March 31 2019 2018 Net Periodic Benefit Costs Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit Service cost $ 1 $ 6 $ 2 $ 6 Interest cost 4 8 4 9 Expected return on plan assets (5 ) — (6 ) — Recognized actuarial loss 2 2 1 4 Recognized prior service cost — (2 ) — — Total $ 2 $ 14 $ 1 $ 19 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
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, 2019 , and December 31, 2018 (in millions): Fair Value Measurements at March 31, 2019: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair Liabilities: Accrued liabilities $ — $ 38 $ — $ — $ 38 Deferred credits and other liabilities - other $ — $ 74 $ — $ — $ 74 Fair Value Measurements at December 31, 2018: Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair Liabilities: Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other $ — $ 116 $ — $ — $ 116 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of net sales related to the outstanding commodity derivative instruments | The following table summarizes the amounts reported in net sales related to the outstanding commodity derivatives not designated as hedging instruments as of March 31, 2019, and December 31, 2018. (in millions, except Long/(Short) volumes) 2019 2018 Unrealized gain (loss) on derivatives not designated as hedges Crude Oil Commodity Contracts $ (63 ) $ 184 Natural Gas Commodity Contracts $ 3 $ 5 Outstanding net volumes on derivatives not designated as hedges Crude Oil Commodity Contracts Volume (MMBL) 56 61 Natural Gas Commodity Contracts Volume (Bcf) (162 ) (142 ) |
Gross and net fair values of outstanding derivatives | The following tables present the gross and net fair values of Occidental’s outstanding derivatives: As of March 31, 2019 Fair Value Measurements Using Netting (b) Total Fair Value (in millions) Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivatives not designated as hedges (a) Commodity Contracts Other current assets 1,077 48 — (1,099 ) 26 Long-term receivables and other assets, net 19 8 — (19 ) 8 Liabilities: Derivatives not designated as hedges (a) Commodity Contracts Accrued liabilities 1,136 54 — (1,099 ) 91 Deferred credits and other liabilities - other 20 2 — (19 ) 3 (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 condensed balance sheets. (b) These amounts do not include collateral. As of March 31, 2019, no collateral received has been netted against derivative assets and collateral paid of $ 66 million has been netted against derivative liabilities. Occidental had $ 94 million of initial margin deposited with brokers as of March 31, 2019. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables. As of December 31, 2018 Fair Value Measurements Using Netting (b) Total Fair Value (in millions) Balance Sheet Location Level 1 Level 2 Level 3 Assets: Derivatives not designated as hedges (a) Commodity Contracts Other current assets 2,531 110 — (2,392 ) 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Liabilities: Cash-flow hedges (a) Commodity contracts Accrued liabilities — 2 — — 2 Derivatives not designated as hedges (a) Commodity contracts Accrued liabilities 2,357 101 — (2,392 ) 66 Deferred credits and other liabilities - other 6 2 — (6 ) 2 (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 condensed balance sheets. (b) These amounts do not include collateral. As of December 31, 2018, $ 45 million collateral received has been netted against derivative assets and collateral paid of $ 1 million has been netted against derivative liabilities. Occidental had $ 178 million of initial margin deposited with brokers as of December 31, 2018. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables. |
Industry Segments (Tables)
Industry Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
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, 2019 Net sales $ 2,351 $ 1,059 $ 816 $ (222 ) $ 4,004 Pre-tax operating profit (loss) $ 484 $ 265 $ 279 $ (172 ) (a) $ 856 Income taxes — — — (225 ) (b) (225 ) Net income (loss) $ 484 $ 265 $ 279 $ (397 ) $ 631 Three months ended March 31, 2018 Net sales $ 2,454 $ 1,154 $ 389 $ (234 ) $ 3,763 Pre-tax operating profit (loss) $ 750 $ 298 $ 179 $ (180 ) (a) $ 1,047 Income taxes — — — (339 ) (b) (339 ) Net income (loss) $ 750 $ 298 $ 179 $ (519 ) $ 708 (a) Includes unallocated net interest expense, administration expense, environmental remediation and other items. (b) Includes all foreign and domestic income taxes. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted EPS for the three months ended March 31, 2019 , and 2018 (in millions, except per-share amounts): 2019 2018 Basic EPS Net Income $ 631 $ 708 Less: Net income allocated to participating securities (3 ) (3 ) Net Income, net of participating securities 628 705 Weighted average number of basic shares 748.9 765.6 Basic EPS $ 0.84 $ 0.92 Diluted EPS Net income, net of participating securities $ 628 $ 705 Weighted average number of basic shares 748.9 765.6 Dilutive effect of potentially dilutive securities 1.6 1.4 Total diluted weighted average common shares 750.5 767.0 Diluted EPS $ 0.84 $ 0.92 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease Related Assets and Liabilities | The following table presents Occidental's lease balances and their location on the balance sheet at March 31, 2019 (in millions): Balance sheet location 2019 Assets: Operating Operating lease assets $ 684 Finance Property, plant, and equipment, net 23 Total leased assets $ 707 Liabilities: Current Operating Current lease liabilities $ 229 Finance Current lease liabilities 11 Non-current Operating Deferred credits and other liabilities - Lease liabilities 453 Finance Deferred credits and other liabilities - Lease liabilities 12 Total lease liabilities $ 705 |
Schedule of Operating Lease Maturities | At March 31, 2019, Occidental's leases matured on the following schedule (in millions): Operating Finance Leases (a) Leases (b) Total Remainder of 2019 $ 166 $ 9 $ 175 2020 167 12 179 2021 110 1 111 2022 78 1 79 2023 53 1 54 Thereafter 170 — 170 Total lease payments 744 24 768 Less: Interest (62 ) (1 ) (63 ) Present value of lease liabilities $ 682 $ 23 $ 705 (a) The weighted average remaining lease term is 5.7 years and the weighted average discount rate is 3.12% . (b) The weighted average remaining lease term is 2.5 years and the weighted average discount rate is 2.95% . |
Schedule of Finance Lease Maturities | At March 31, 2019, Occidental's leases matured on the following schedule (in millions): Operating Finance Leases (a) Leases (b) Total Remainder of 2019 $ 166 $ 9 $ 175 2020 167 12 179 2021 110 1 111 2022 78 1 79 2023 53 1 54 Thereafter 170 — 170 Total lease payments 744 24 768 Less: Interest (62 ) (1 ) (63 ) Present value of lease liabilities $ 682 $ 23 $ 705 (a) The weighted average remaining lease term is 5.7 years and the weighted average discount rate is 3.12% . (b) The weighted average remaining lease term is 2.5 years and the weighted average discount rate is 2.95% . |
Schedule of Future Net Minimum Fixed Lease Payments | At December 31, 2018 , future undiscounted net minimum fixed lease payments for non-cancellable operating leases, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows (in millions): Amount 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments $ 704 |
Schedule of Lease Costs | The following tables present Occidental's total lease cost and classifications as well as cash paid for amounts included in the measurement of operating lease liabilities. Lease costs and amounts paid associated with finance leases were immaterial for the three months ended March 31, 2019 (in millions): Lease cost classification (a,b) Property, plant and equipment, net $ 91 Cost of sales 77 Selling, general and administrative expenses 16 Total $ 184 Cash paid on operating leases (b) Cash flow from operating activities $ 48 Cash flow from investing activities $ 19 (a) Includes short-term lease costs of $86 million and variable lease costs of $31 million . (b) Amounts reflected are gross before joint interest recoveries. |
Revenue Recognition - Impact of
Revenue Recognition - Impact of Adoption (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net | $ 5,310 | $ 4,893 |
Revenue Recognition - Reconcili
Revenue Recognition - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Revenue from customers | $ 3,435 | $ 3,694 |
All other revenue | 569 | 69 |
Total net sales | $ 4,004 | $ 3,763 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of revenue | ||
Revenue from customers | $ 4,004 | $ 3,763 |
Consolidated | 3,435 | 3,694 |
United States | ||
Disaggregation of revenue | ||
Consolidated | 2,451 | 2,696 |
Middle East | ||
Disaggregation of revenue | ||
Consolidated | 1,005 | 985 |
Latin America | ||
Disaggregation of revenue | ||
Consolidated | 182 | 226 |
Other International | ||
Disaggregation of revenue | ||
Consolidated | 19 | 21 |
Eliminations | ||
Disaggregation of revenue | ||
Revenue from customers | (222) | (234) |
Consolidated | (222) | (234) |
Eliminations | United States | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Eliminations | Middle East | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Eliminations | Latin America | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Eliminations | Other International | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | ||
Disaggregation of revenue | ||
Revenue from customers | 2,351 | 2,454 |
Oil and Gas Segment | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 2,098 | 2,190 |
Oil and Gas Segment | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 143 | 140 |
Oil and Gas Segment | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 130 | 121 |
Oil and Gas Segment | Other | ||
Disaggregation of revenue | ||
Revenue from customers | (20) | 3 |
Oil and Gas Segment | United States | ||
Disaggregation of revenue | ||
Revenue from customers | 1,309 | 1,391 |
Oil and Gas Segment | United States | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 1,205 | 1,247 |
Oil and Gas Segment | United States | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 78 | 89 |
Oil and Gas Segment | United States | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 47 | 52 |
Oil and Gas Segment | United States | Other | ||
Disaggregation of revenue | ||
Revenue from customers | (21) | 3 |
Oil and Gas Segment | Middle East | ||
Disaggregation of revenue | ||
Revenue from customers | 903 | 889 |
Oil and Gas Segment | Middle East | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 758 | 773 |
Oil and Gas Segment | Middle East | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 65 | 51 |
Oil and Gas Segment | Middle East | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 79 | 65 |
Oil and Gas Segment | Middle East | Other | ||
Disaggregation of revenue | ||
Revenue from customers | 1 | 0 |
Oil and Gas Segment | Latin America | ||
Disaggregation of revenue | ||
Revenue from customers | 139 | 174 |
Oil and Gas Segment | Latin America | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 135 | 170 |
Oil and Gas Segment | Latin America | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Latin America | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 4 | 4 |
Oil and Gas Segment | Latin America | Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Eliminations | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Eliminations | Oil | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Eliminations | NGL | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Eliminations | Gas | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Eliminations | Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Chemical Segment | ||
Disaggregation of revenue | ||
Revenue from customers | 1,055 | 1,122 |
Chemical Segment | United States | ||
Disaggregation of revenue | ||
Revenue from customers | 993 | 1,049 |
Chemical Segment | Middle East | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Chemical Segment | Latin America | ||
Disaggregation of revenue | ||
Revenue from customers | 43 | 52 |
Chemical Segment | Other International | ||
Disaggregation of revenue | ||
Revenue from customers | 19 | 21 |
Chemical Segment | Eliminations | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | ||
Disaggregation of revenue | ||
Revenue from customers | 251 | 352 |
Midstream Segment | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 207 | 233 |
Midstream Segment | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 94 | |
Midstream Segment | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | 44 | 25 |
Midstream Segment | United States | ||
Disaggregation of revenue | ||
Revenue from customers | 149 | 256 |
Midstream Segment | United States | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 105 | 137 |
Midstream Segment | United States | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 94 | |
Midstream Segment | United States | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | 44 | 25 |
Midstream Segment | Middle East | ||
Disaggregation of revenue | ||
Revenue from customers | 102 | 96 |
Midstream Segment | Middle East | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 102 | 96 |
Midstream Segment | Middle East | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | |
Midstream Segment | Middle East | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | |
Midstream Segment | Latin America | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | |
Midstream Segment | Other International | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Eliminations | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Eliminations | Gas Processing | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Eliminations | Pipelines | ||
Disaggregation of revenue | ||
Revenue from customers | 0 | |
Midstream Segment | Eliminations | Power and Other | ||
Disaggregation of revenue | ||
Revenue from customers | $ 0 | $ 0 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule of Cash Flow, Supplemental Disclosures [Line Items] | ||
Interest paid | $ 114,000,000 | $ 97,000,000 |
Property and equipment acquired | 94,000,000 | |
Foreign and State | ||
Schedule of Cash Flow, Supplemental Disclosures [Line Items] | ||
Income taxes paid | 222,000,000 | 227,000,000 |
Domestic | ||
Schedule of Cash Flow, Supplemental Disclosures [Line Items] | ||
Income taxes paid | $ 0 | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 71 | $ 74 |
Materials and supplies | 470 | 445 |
Finished goods | 990 | 788 |
Inventories, gross | 1,531 | 1,307 |
Revaluation to LIFO | (47) | (47) |
Total | $ 1,484 | $ 1,260 |
Environmental Liabilities and_3
Environmental Liabilities and Expenditures (Details) $ in Millions | 1 Months Ended | 3 Months Ended | ||
Mar. 31, 2016mi | Mar. 31, 2019USD ($)sitecategory | Sep. 30, 2016USD ($) | Dec. 31, 2018USD ($) | |
Environmental remediation reserves | ||||
Number of Sites | site | 146 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ 120 | |||
Environmental remediation reserves, non-current, included in deferred credits and other liabilities - other | $ 755 | $ 762 | ||
Number of non-NPL sites categories | category | 3 | |||
Reserve Balance | $ 875 | |||
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 | 91 | |||
Expected expend funds of environmental reserves (as a percent) | 0.00% | |||
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 | ||||
Environmental reserves, range between zero to $ one million site category | $ 0 | |||
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 | |||
NPL sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 35 | |||
Reserve Balance | $ 458 | |||
Third-party sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 68 | |||
Reserve Balance | $ 170 | |||
Occidental-operated sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 14 | |||
Reserve Balance | $ 114 | |||
Closed or non-operated Occidental sites | ||||
Environmental remediation reserves | ||||
Number of Sites | site | 29 | |||
Reserve Balance | $ 133 | |||
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 |
Lawsuits, Claims, Commitments_2
Lawsuits, Claims, Commitments and Contingencies (Details) - Arbitration filed by Andes Petroleum Ecuador Ltd - USD ($) $ in Billions | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Lawsuits, commitments and contingencies | ||
Proceeds from settlement | $ 1 | |
Recovery of amount awarded in settlement amount (as a percent) | 60.00% | |
Percentage of judgment amount claimed | 40.00% | |
Own economic interest (as a percent) | 60.00% |
Retirement and Postretirement_3
Retirement and Postretirement Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefit | ||
Net Periodic Benefit Costs | ||
Service cost | $ 1 | $ 2 |
Interest cost | 4 | 4 |
Expected return on plan assets | (5) | (6) |
Recognized actuarial loss | 2 | 1 |
Recognized prior service cost | 0 | 0 |
Total | 2 | 1 |
Postretirement Benefit | ||
Net Periodic Benefit Costs | ||
Service cost | 6 | 6 |
Interest cost | 8 | 9 |
Expected return on plan assets | 0 | 0 |
Recognized actuarial loss | 2 | 4 |
Recognized prior service cost | (2) | 0 |
Total | 14 | 19 |
Defined benefit plans | ||
Net Periodic Benefit Costs | ||
Employer contributions | $ 1 | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2018USD ($) | Mar. 31, 2019USD ($) | |
Liabilities: | ||
Carrying value of debt, net of unamortized discount | $ 10,400 | $ 10,400 |
Qatar ISND and ISSD | ||
Liabilities: | ||
Impairment and related charges | 416 | |
Total Fair Value | ||
Liabilities: | ||
Estimated fair value of debt | 10,300 | 10,800 |
Recurring | Accrued liabilities | ||
Liabilities: | ||
Netting and Collateral | 0 | 0 |
Recurring | Accrued liabilities | Total Fair Value | ||
Liabilities: | ||
Embedded derivatives | 66 | 38 |
Recurring | Accrued liabilities | Level 1 | ||
Liabilities: | ||
Embedded derivatives | 0 | 0 |
Recurring | Accrued liabilities | Level 2 | ||
Liabilities: | ||
Embedded derivatives | 66 | 38 |
Recurring | Accrued liabilities | Level 3 | ||
Liabilities: | ||
Embedded derivatives | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | ||
Liabilities: | ||
Netting and Collateral | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | Total Fair Value | ||
Liabilities: | ||
Embedded derivatives | 116 | 74 |
Recurring | Deferred credits and other liabilities - other | Level 1 | ||
Liabilities: | ||
Embedded derivatives | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | Level 2 | ||
Liabilities: | ||
Embedded derivatives | 116 | 74 |
Recurring | Deferred credits and other liabilities - other | Level 3 | ||
Liabilities: | ||
Embedded derivatives | $ 0 | $ 0 |
Non recurring | Measurement Input, Discount Rate | ||
Liabilities: | ||
Risk adjusted discount rate | 0.10 |
Derivatives - Cash Flow Hedges
Derivatives - Cash Flow Hedges (Details) - Bcf | Mar. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Natural gas held in storage (in cubic feet) | 1 | 5 |
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet) | 4 |
Derivatives - Not Designated as
Derivatives - Not Designated as Hedging Instruments (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)$ / MillionCubicFeet$ / BarrelBcfMMBbls | Dec. 31, 2018USD ($)$ / MillionCubicFeet$ / BarrelBcfMMBbls | |
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Derivative instrument settlement period (within) | 3 months | |
Not designated as hedging instruments | Crude oil | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Weighted average sales price (dollars per barrel) | $ / Barrel | 60.04 | 58.81 |
Not designated as hedging instruments | Crude oil | Net sales | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Unrealized gain (loss) on derivatives not designated as hedges | $ (63) | $ 184 |
Not designated as hedging instruments | Natural gas | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Weighted average sales price (dollars per barrel) | $ / MillionCubicFeet | 2.36 | 3.18 |
Not designated as hedging instruments | Natural gas | Net sales | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Unrealized gain (loss) on derivatives not designated as hedges | $ 3 | $ 5 |
Not designated as hedging instruments | Long position | Crude oil | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Outstanding net volumes on derivatives not designated as hedges (mmbls/bcf) | MMBbls | 56 | 61 |
Not designated as hedging instruments | Short position | Natural gas | ||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||
Outstanding net volumes on derivatives not designated as hedges (mmbls/bcf) | Bcf | 162 | 142 |
Derivatives - Fair Value (Detai
Derivatives - Fair Value (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral received netted against derivative assets | $ 0 | $ 45,000,000 |
Collateral paid netted against derivative liabilities | 66,000,000 | 1,000,000 |
Collateral deposited with clearinghouses and brokers | 94,000,000 | 178,000,000 |
Not designated as hedging instruments | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 2,000,000 | |
Not designated as hedging instruments | Other current assets | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 1,099,000,000 | 2,392,000,000 |
Total net fair value, asset | 26,000,000 | 249,000,000 |
Not designated as hedging instruments | Long-term receivables and other assets, net | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 19,000,000 | 6,000,000 |
Total net fair value, asset | 8,000,000 | 8,000,000 |
Not designated as hedging instruments | Accrued liabilities | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (1,099,000,000) | (2,392,000,000) |
Total net fair value, liability | 91,000,000 | 66,000,000 |
Not designated as hedging instruments | Deferred credits and other liabilities - other | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (19,000,000) | (6,000,000) |
Total net fair value, liability | 3,000,000 | 2,000,000 |
Not designated as hedging instruments | Level 1 | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Not designated as hedging instruments | Level 1 | Other current assets | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 1,077,000,000 | 2,531,000,000 |
Not designated as hedging instruments | Level 1 | Long-term receivables and other assets, net | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 19,000,000 | 5,000,000 |
Not designated as hedging instruments | Level 1 | Accrued liabilities | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 1,136,000,000 | 2,357,000,000 |
Not designated as hedging instruments | Level 1 | Deferred credits and other liabilities - other | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 20,000,000 | 6,000,000 |
Not designated as hedging instruments | Level 2 | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 2,000,000 | |
Not designated as hedging instruments | Level 2 | Other current assets | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 48,000,000 | 110,000,000 |
Not designated as hedging instruments | Level 2 | Long-term receivables and other assets, net | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 8,000,000 | 9,000,000 |
Not designated as hedging instruments | Level 2 | Accrued liabilities | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 54,000,000 | 101,000,000 |
Not designated as hedging instruments | Level 2 | Deferred credits and other liabilities - other | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 2,000,000 | 2,000,000 |
Not designated as hedging instruments | Level 3 | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Not designated as hedging instruments | Level 3 | Other current assets | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Not designated as hedging instruments | Level 3 | Long-term receivables and other assets, net | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Not designated as hedging instruments | Level 3 | Accrued liabilities | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Not designated as hedging instruments | Level 3 | Deferred credits and other liabilities - other | Commodity Contract | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 0 | $ 0 |
Industry Segments (Details)
Industry Segments (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | |
Segment Information | ||
Number of operating segments | segment | 3 | |
Net sales | $ 4,004 | $ 3,763 |
Pre-tax operating profit (loss) | 856 | 1,047 |
Income taxes | (225) | (339) |
Net income (loss) | 631 | 708 |
Operating segments | Oil and Gas | ||
Segment Information | ||
Net sales | 2,351 | 2,454 |
Pre-tax operating profit (loss) | 484 | 750 |
Income taxes | 0 | 0 |
Net income (loss) | 484 | 750 |
Operating segments | Chemical | ||
Segment Information | ||
Net sales | 1,059 | 1,154 |
Pre-tax operating profit (loss) | 265 | 298 |
Income taxes | 0 | 0 |
Net income (loss) | 265 | 298 |
Operating segments | Midstream and Marketing | ||
Segment Information | ||
Net sales | 816 | 389 |
Pre-tax operating profit (loss) | 279 | 179 |
Income taxes | 0 | 0 |
Net income (loss) | 279 | 179 |
Corporate and Eliminations | ||
Segment Information | ||
Net sales | (222) | (234) |
Pre-tax operating profit (loss) | (172) | (180) |
Income taxes | (225) | (339) |
Net income (loss) | $ (397) | $ (519) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Basic EPS | ||
Net Income | $ 631 | $ 708 |
Less: Net income allocated to participating securities | (3) | (3) |
Net Income, net of participating securities | $ 628 | $ 705 |
Weighted average number of basic shares (in shares) | 748.9 | 765.6 |
Basic EPS (in dollars per share) | $ 0.84 | $ 0.92 |
Diluted EPS | ||
Net income, net of participating securities | $ 628 | $ 705 |
Weighted average number of basic shares (in shares) | 748.9 | 765.6 |
Dilutive effect of potentially dilutive securities (in shares) | 1.6 | 1.4 |
Total diluted weighted average common shares (in shares) | 750.5 | 767 |
Diluted EPS (in dollars per share) | $ 0.84 | $ 0.92 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 684 | |
Present value of lease liabilities | $ 682 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease assets | $ 772 | |
Present value of lease liabilities | $ 772 |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Assets: | |
Operating lease assets | $ 684 |
Finance lease assets | 23 |
Total leased assets | 707 |
Liabilities: | |
Current lease liabilities | 240 |
Lease liabilities | 465 |
Total lease liabilities | 705 |
Current lease liabilities | |
Liabilities: | |
Current lease liabilities | 229 |
Finance, liability, current | 11 |
Deferred credits and other liabilities - Lease liabilities | |
Liabilities: | |
Lease liabilities | 453 |
Finance, liability, noncurrent | $ 12 |
Leases - Schedule of Operating
Leases - Schedule of Operating and Finance Lease Maturities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
Remainder of 2019 | $ 166 |
2020 | 167 |
2021 | 110 |
2022 | 78 |
2023 | 53 |
Thereafter | 170 |
Total lease payments | 744 |
Less: Interest | (62) |
Present value of lease liabilities | 682 |
Finance Leases | |
Remainder of 2019 | 9 |
2020 | 12 |
2021 | 1 |
2022 | 1 |
2023 | 1 |
Thereafter | 0 |
Total lease payments | 24 |
Less: Interest | (1) |
Present value of lease liabilities | 23 |
Total | |
Remainder of 2019 | 175 |
2020 | 179 |
2021 | 111 |
2022 | 79 |
2023 | 54 |
Thereafter | 170 |
Total lease payments | 768 |
Less: Interest | (63) |
Present value of lease liabilities | $ 705 |
Weighted average lease term, operating lease | 5 years 8 months 12 days |
Weighted average discount rate, operating lease | 3.12% |
Weighted average lease term, finance lease | 2 years 6 months |
Weighted average discount rate, finance lease | 2.95% |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) $ in Millions | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 186 |
2020 | 147 |
2021 | 96 |
2022 | 68 |
2023 | 49 |
Thereafter | 158 |
Total minimum lease payments | $ 704 |
Leases - Other Information (Det
Leases - Other Information (Details) | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |
Lease cost | $ 184,000,000 |
Cash flow from operating activities | 48 |
Cash flow from investing activities | 19 |
Short-term lease costs | 86,000,000 |
Variable lease costs | 31,000,000 |
Cost of sales | |
Lessee, Lease, Description [Line Items] | |
Lease cost | 77,000,000 |
Selling, general and administrative expenses | |
Lessee, Lease, Description [Line Items] | |
Lease cost | 16,000,000 |
Property, plant and equipment, net | |
Lessee, Lease, Description [Line Items] | |
Lease cost | $ 91,000,000 |