Cover Page
Cover Page | 9 Months Ended |
Sep. 30, 2019shares | |
Cover page. | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2019 |
Document Transition Report | false |
Entity File Number | 1-9210 |
Entity Registrant Name | OCCIDENTAL PETROLEUM CORP /DE/ |
Entity Central Index Key | 0000797468 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 95-4035997 |
Entity Address, Address Line One | 5 Greenway Plaza, Suite 110 |
Entity Address, City or Town | Houston, |
Entity Address, State or Province | TX |
Entity Address, Postal Zip Code | 77046 |
City Area Code | 713 |
Local Phone Number | 215-7000 |
Title of 12(b) Security | Common Stock, $0.20 par value |
Trading Symbol | OXY |
Security Exchange Name | NYSE |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 893,317,470 |
CONSOLIDATED CONDENSED BALANCE
CONSOLIDATED CONDENSED BALANCE SHEETS - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 4,840 | $ 3,033 |
Restricted cash and restricted cash equivalents | 454 | 0 |
Trade receivables, net | 5,854 | 4,893 |
Inventories | 1,601 | 1,260 |
Assets held for sale | 6,445 | 0 |
Other current assets | 1,750 | 746 |
Total current assets | 20,944 | 9,932 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES ($2,261 related to WES) | 3,684 | 1,680 |
PROPERTY, PLANT AND EQUIPMENT | 136,925 | 74,420 |
Accumulated depreciation, depletion, and amortization | (46,804) | (42,983) |
PROPERTY, PLANT AND EQUIPMENT, net of accumulated depreciation, depletion and amortization | 90,121 | 31,437 |
OPERATING LEASE ASSETS | 1,078 | |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 1,155 | 797 |
INTANGIBLES, NET ($2,380 related to WES) | 2,387 | 8 |
TOTAL ASSETS | 125,443 | 43,854 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 31 | 116 |
Current operating lease liabilities | 463 | |
Accounts payable | 6,789 | 4,885 |
Accrued liabilities ($315 related to WES) | 5,175 | 2,411 |
Accrued income taxes | 1,036 | 0 |
Liabilities of assets held for sale | 2,203 | 0 |
Total current liabilities | 15,697 | 7,412 |
LONG-TERM DEBT, NET | ||
LONG-TERM DEBT, NET | 47,583 | 10,201 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred income taxes ($1,167 related to WES) | 9,920 | 907 |
Asset retirement obligations ($319 related to WES) | 4,164 | 1,424 |
Pension and postretirement obligations | 1,927 | 809 |
Environmental remediation reserves | 905 | 762 |
Operating lease liabilities | 676 | |
Other | 3,566 | 1,009 |
Total deferred credits and other liabilities | 21,158 | 4,911 |
EQUITY | ||
Preferred stock, at $1.00 per share par value (100,000 shares at September 30, 2019) | 9,762 | 0 |
Common stock, at $0.20 per share par value (1,043,640,621 shares at September 30, 2019, and 895,115,637 shares at December 31, 2018) | 209 | 179 |
Treasury stock (150,323,151 shares at September 30, 2019, and 145,726,051 shares at December 31, 2018) | (10,653) | (10,473) |
Additional paid-in capital | 14,867 | 8,046 |
Retained earnings | 22,227 | 23,750 |
Accumulated other comprehensive loss | (332) | (172) |
Total stockholders' equity | 36,080 | 21,330 |
Noncontrolling interests | 4,925 | 0 |
Total equity | 41,005 | 21,330 |
TOTAL LIABILITIES AND EQUITY | 125,443 | 43,854 |
Occidental | ||
LONG-TERM DEBT, NET | ||
LONG-TERM DEBT, NET | 39,946 | 10,201 |
Oil and Gas segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 110,668 | 58,799 |
Chemical segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 7,092 | 7,001 |
Marketing and Other Midstream segment | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 8,133 | 8,070 |
WES Midstream | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | 9,635 | 0 |
WES | ||
CURRENT ASSETS | ||
INVESTMENTS IN UNCONSOLIDATED ENTITIES ($2,261 related to WES) | 2,261 | |
INTANGIBLES, NET ($2,380 related to WES) | 2,380 | |
GOODWILL - WES | 6,074 | 0 |
CURRENT LIABILITIES | ||
Accrued liabilities ($315 related to WES) | 315 | |
LONG-TERM DEBT, NET | ||
LONG-TERM DEBT, NET | 7,637 | 0 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred income taxes ($1,167 related to WES) | 1,167 | |
Asset retirement obligations ($319 related to WES) | 319 | |
Corporate | ||
CURRENT ASSETS | ||
PROPERTY, PLANT AND EQUIPMENT | $ 1,397 | $ 550 |
CONSOLIDATED CONDENSED BALANC_2
CONSOLIDATED CONDENSED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES ($2,261 related to WES) | $ 3,684 | $ 1,680 |
INTANGIBLES, NET | 2,387 | 8 |
Accrued liabilities | 5,175 | 2,411 |
Deferred income taxes ($1,167 related to WES) | 9,920 | 907 |
Asset retirement obligations | $ 4,164 | $ 1,424 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, outstanding (in shares) | 100,000 | 0 |
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, outstanding (in shares) | 1,043,640,621 | 895,115,637 |
Treasury stock (in shares) | 150,323,151 | 145,726,051 |
WES | ||
INVESTMENTS IN UNCONSOLIDATED ENTITIES ($2,261 related to WES) | $ 2,261 | |
INTANGIBLES, NET | 2,380 | |
Accrued liabilities | 315 | |
Deferred income taxes ($1,167 related to WES) | 1,167 | |
Asset retirement obligations | $ 319 |
CONSOLIDATED CONDENSED STATEMEN
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
REVENUES AND OTHER INCOME | ||||
Net sales | $ 5,687 | $ 5,216 | $ 14,111 | $ 13,062 |
Interest, dividends, and other income | 56 | 34 | 175 | 101 |
Gain on sale of assets, net | 128 | 926 | 150 | 969 |
TOTAL REVENUES AND OTHER INCOME | 5,871 | 6,176 | 14,436 | 14,132 |
COSTS AND OTHER DEDUCTIONS | ||||
Oil and gas operating expense | 962 | 680 | 2,324 | 1,909 |
Transportation expense | 217 | 41 | 281 | 121 |
Chemical and midstream cost of sales | 741 | 722 | 2,046 | 2,128 |
Purchased commodities | 441 | 343 | 1,237 | 456 |
Selling, general and administrative | 242 | 151 | 545 | 423 |
Other operating expense | 363 | 280 | 861 | 717 |
Taxes other than on income | 198 | 110 | 432 | 333 |
Depreciation, depletion, and amortization | 1,706 | 1,023 | 3,710 | 2,891 |
Asset impairments and other items | 325 | 214 | 325 | 256 |
Anadarko merger-related costs | 924 | 0 | 974 | 0 |
Exploration expense | 63 | 24 | 134 | 60 |
Losses on interest-rate swaps and warrants, net | 381 | 96 | 632 | 290 |
TOTAL COSTS AND OTHER DEDUCTIONS | 6,563 | 3,684 | 13,501 | 9,584 |
Income (loss) before income taxes and other items | (692) | 2,492 | 935 | 4,548 |
OTHER ITEMS | ||||
Gains (losses) on interest rate swaps and warrants, net | (33) | 0 | (33) | 0 |
Income from equity investments | 104 | 87 | 274 | 228 |
OTHER INCOME (LOSS) | 71 | 87 | 241 | 228 |
Income (loss) from continuing operations before income taxes | (621) | 2,579 | 1,176 | 4,776 |
Income tax expense | (116) | (710) | (647) | (1,351) |
Income (loss) from continuing operations | (737) | 1,869 | 529 | 3,425 |
Discontinued operations, net of tax | (15) | 0 | (15) | 0 |
NET INCOME (LOSS) | (752) | 1,869 | 514 | 3,425 |
Less: Net income attributable to noncontrolling interests | (42) | 0 | (42) | 0 |
Less: Preferred stock dividends | (118) | 0 | (118) | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (912) | $ 1,869 | $ 354 | $ 3,425 |
Income (loss) from continuing operations—basic (in usd per share) | $ (1.06) | $ 2.44 | $ 0.47 | $ 4.46 |
Income (loss) from discontinued operations—basic (in usd per share) | (0.02) | 0 | (0.02) | 0 |
Net income (loss) attributable to common stockholders—basic (in usd per share) | (1.08) | 2.44 | 0.45 | 4.46 |
Income (loss) from continuing operations—diluted (in usd per share) | (1.06) | 2.44 | 0.47 | 4.45 |
Income (loss) from discontinued operations—diluted (in usd per share) | (0.02) | 0 | (0.02) | 0 |
Net income (loss) attributable to common stockholders—diluted (in usd per share) | $ (1.08) | $ 2.44 | $ 0.45 | $ 4.45 |
CONSOLIDATED CONDENSED STATEM_2
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net income (loss) | $ (752) | $ 1,869 | $ 514 | $ 3,425 | |
Other comprehensive income (loss) items: | |||||
Losses on derivatives | [1] | (114) | (1) | (130) | (5) |
Pension and postretirement (losses) gains | [2] | (34) | 144 | (30) | 153 |
Reclassification of losses on derivatives | [3] | 0 | 10 | 0 | 13 |
Other comprehensive (loss) income, net of tax | (148) | 153 | (160) | 161 | |
Comprehensive income (loss) | (900) | 2,022 | 354 | 3,586 | |
Comprehensive income attributable to noncontrolling interests | (42) | 0 | (42) | 0 | |
Comprehensive income (loss) attributable to preferred and common stockholders | $ (942) | $ 2,022 | $ 312 | $ 3,586 | |
[1] | Net of tax of $32 million and zero for the three months ended September 30, 2019 , and 2018, and $36 million and $1 million for the nine months ended September 30, 2019 , and 2018, respectively. | ||||
[2] | Net of tax of $10 million and $(40) million for the three months ended September 30, 2019 , and 2018, and $8 million and $(43) million for the nine months ended September 30, 2019 , and 2018, respectively. | ||||
[3] | Net of tax of $(3) million for the three months ended September 30, 2018, and $(4) million for the nine months ended September 30, 2018, respectively. |
CONSOLIDATED CONDENSED STATEM_3
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized losses on derivatives, tax | $ 32 | $ 0 | $ 36 | $ 1 |
Pension and postretirement gains, tax | $ 10 | (40) | $ 8 | (43) |
Reclassification to income of realized (gains) losses on derivatives, tax | $ (3) | $ (4) |
CONSOLIDATED CONDENSED STATEM_4
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOW FROM OPERATING ACTIVITIES | ||
Net income | $ 514 | $ 3,425 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Discontinued operations, net | 15 | 0 |
Depreciation, depletion and amortization of assets | 3,710 | 2,891 |
Deferred income tax (benefit) provision | (1,050) | 550 |
Other noncash charges to income | 578 | 74 |
Gain on sale of assets, net | (150) | (969) |
Asset impairments and other items | 325 | 256 |
Undistributed earnings from affiliates | (50) | (16) |
Dry hole expenses | 41 | 27 |
Changes in operating assets and liabilities, net | 1,506 | (1,069) |
Cash provided by operating activities - continuing operations | 5,439 | 5,169 |
Cash used by operating activities - discontinued operations | (73) | 0 |
Net cash provided by operating activities | 5,366 | 5,169 |
CASH FLOW FROM INVESTING ACTIVITIES | ||
Capital expenditures | (4,184) | (3,638) |
Change in capital accrual | (160) | 7 |
Proceeds from sale of assets and equity investments, net | 4,809 | 2,745 |
Purchase of businesses and assets, net | (27,926) | (726) |
Equity investments and other, net | (140) | (88) |
Cash used by investing activities - continuing operations | (27,601) | (1,700) |
Cash used by investing activities - discontinued operations | (125) | 0 |
Net cash used by investing activities | (27,726) | (1,700) |
CASH FLOW FROM FINANCING ACTIVITIES | ||
Proceeds from long-term debt, net | 21,557 | 978 |
Payments of long-term debt | (4,949) | (500) |
Proceeds from WES revolvers | 1,240 | 0 |
Payment of revolvers - WES | (1,000) | 0 |
Proceeds from issuance of common and preferred stock | 10,010 | 17 |
Purchases of treasury stock | (237) | (908) |
Cash dividends paid to common stockholders | (1,766) | (1,780) |
Distributions to noncontrolling interest | (127) | 0 |
Other financing, net | (35) | 6 |
Cash provided (used) by financing activities - continuing operations | 24,693 | (2,187) |
Cash used by financing activities - discontinued operations | (1) | 0 |
Net cash provided by (used) by financing activities | 24,692 | (2,187) |
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | 2,332 | 1,282 |
Cash and cash equivalents — beginning of period | 3,033 | 1,672 |
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period | $ 5,365 | $ 2,954 |
CONSOLIDATED CONDENSED STATEM_5
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Millions | Total | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Beginning balance at Dec. 31, 2017 | $ 20,572 | $ 179 | $ 0 | $ (9,168) | $ 7,884 | $ 21,935 | $ (258) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 3,425 | 3,425 | ||||||
Other comprehensive income (loss), net of tax | 161 | 161 | ||||||
Dividends on common stock | (1,783) | (1,783) | ||||||
Issuance of common stock and other, net | 107 | 107 | ||||||
Purchases of treasury stock | (994) | (994) | ||||||
Reclassification of stranded tax effects | 58 | (58) | ||||||
Noncontrolling interest contributions, net | 0 | 0 | ||||||
Ending balance at Sep. 30, 2018 | 21,488 | 179 | 0 | (10,162) | 7,991 | 23,635 | (155) | 0 |
Beginning balance at Jun. 30, 2018 | 20,931 | 179 | 0 | (9,268) | 7,967 | 22,361 | (308) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 1,869 | 1,869 | ||||||
Other comprehensive income (loss), net of tax | 153 | 153 | ||||||
Dividends on common stock | (595) | (595) | ||||||
Issuance of common stock and other, net | 24 | 0 | 24 | |||||
Purchases of treasury stock | (894) | (894) | ||||||
Reclassification of stranded tax effects | 0 | 0 | ||||||
Noncontrolling interest contributions, net | 0 | 0 | ||||||
Ending balance at Sep. 30, 2018 | 21,488 | 179 | 0 | (10,162) | 7,991 | 23,635 | (155) | 0 |
Beginning balance at Dec. 31, 2018 | 21,330 | 179 | 0 | (10,473) | 8,046 | 23,750 | (172) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | 514 | 472 | 42 | |||||
Other comprehensive income (loss), net of tax | (160) | (160) | ||||||
Dividends on common stock | (1,877) | (1,877) | ||||||
Dividends on preferred stock | (118) | (118) | ||||||
Issuance of common stock and other, net | 6,851 | 30 | 6,821 | |||||
Issuance of preferred stock, net | 9,762 | 9,762 | ||||||
Purchases of treasury stock | (180) | (180) | ||||||
Fair value of noncontrolling interest acquired | 4,875 | 4,875 | ||||||
Noncontrolling interest contributions, net | 8 | 8 | ||||||
Ending balance at Sep. 30, 2019 | 41,005 | 209 | 9,762 | (10,653) | 14,867 | 22,227 | (332) | 4,925 |
Beginning balance at Jun. 30, 2019 | 21,347 | 179 | 0 | (10,653) | 8,157 | 23,848 | (184) | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income (loss) | (752) | (794) | 42 | |||||
Other comprehensive income (loss), net of tax | (148) | (148) | ||||||
Dividends on common stock | (709) | (709) | ||||||
Dividends on preferred stock | (118) | (118) | ||||||
Issuance of common stock and other, net | 6,740 | 30 | 6,710 | |||||
Issuance of preferred stock, net | 9,762 | 9,762 | ||||||
Fair value of noncontrolling interest acquired | 4,875 | 4,875 | ||||||
Noncontrolling interest contributions, net | 8 | 8 | ||||||
Ending balance at Sep. 30, 2019 | $ 41,005 | $ 209 | $ 9,762 | $ (10,653) | $ 14,867 | $ 22,227 | $ (332) | $ 4,925 |
CONSOLIDATED CONDENSED STATEM_6
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.79 | $ 0.78 | $ 2.35 | $ 2.32 |
DIVIDENDS PER PREFERRED SHARE (in dollars per share) | $ 1,489 | $ 1,489 |
General
General | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
General | General Nature of Operations In this report, "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 conducts its operations through various subsidiaries and affiliates. On August 8, 2019, pursuant to the Agreement and Plan of Merger, dated as of May 9, 2019 (the Merger Agreement), among Occidental, Baseball Merger Sub 1, Inc., a Delaware corporation and an indirect, wholly owned subsidiary of Occidental (Merger Subsidiary), and Anadarko Petroleum Corporation (Anadarko), Occidental acquired all of the outstanding shares of Anadarko through a transaction in which Merger Subsidiary merged with and into Anadarko (the Merger), with Anadarko continuing as the surviving entity and as an indirect, wholly owned subsidiary of Occidental. See Note 3 - The Merger . Occidental's principal businesses consist of four reporting segments: Oil and Gas, Chemical, Marketing and Other Midstream, and WES Midstream, which includes the operations of Western Midstream Partners, LP (WES), a publicly traded limited partnership and a consolidated subsidiary of OPC. The Oil and Gas segment explores for, develops and produces oil and condensate, natural gas liquids (NGL) and natural gas. The Chemical segment (OxyChem) mainly manufactures and markets basic chemicals and vinyls. The Marketing and Other Midstream 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, and invests in entities that conduct similar activities. Also within the Marketing and Other Midstream segment is Oxy Low Carbon Ventures (OLCV). OLCV seeks to capitalize on Occidental’s enhanced oil recovery (EOR) leadership by developing carbon capture, utilization and storage projects that source anthropogenic carbon dioxide and promote innovative technologies that drive cost efficiencies and grow Occidental’s business while reducing emissions. The WES Midstream segment owns gathering systems, plants and pipelines and earns revenue from fee-based and service-based contracts with Occidental and third parties. WES is a variable interest entity (VIE) to Occidental. Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles (GAAP) and include the accounts of OPC, its subsidiaries, VIEs for which Occidental is the primary beneficiary, and its undivided interests in oil and gas exploration and production ventures. Occidental has made its disclosures in accordance with 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 notes. These unaudited consolidated 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 (the 2018 Form 10-K). The Merger, including the addition of WES Midstream as a new reporting segment, introduced different revenue and expense streams to Occidental's legacy operations. As a result, changes were made to the structure of certain financial statements, notes and supplementary data to provide clarity and to conform to the current presentation. Variable Interest Entities Occidental, through its ownership of the general partner interest in WES, has the power to direct the activities that significantly affect the economic performance of WES and the obligation to absorb losses or the right to receive benefits that could be significant to WES; therefore, Occidental is considered the primary beneficiary and consolidates WES and all of its consolidated subsidiaries. WES maintains its own capital structure that is separate from Occidental, consisting of its own debt instruments and publicly traded common units. All intercompany transactions have been eliminated. The assets of WES and its subsidiaries cannot be used by Occidental for general corporate purposes and are included in and disclosed parenthetically on Occidental's consolidated condensed balance sheets, if material. The carrying amount of liabilities related to WES for which the creditors do not have recourse to Occidental's assets are also included in and disclosed parenthetically on Occidental's Consolidated Condensed Balance Sheets, if material. All outstanding debt for WES at September 30, 2019, including any borrowings under the WES revolving credit facility (WES RCF) and WES Term Loan Facility, is recourse to the general partner of Western Midstream Operating, LP (WES Operating), which in turn has been indemnified in certain circumstances by certain indirect wholly owned subsidiaries of Occidental for such liabilities. See Note 9 - Long-Term Debt . WES's sources of liquidity include cash and cash equivalents, cash flows generated from operations, interest income from a note receivable from Anadarko, borrowings under the WES RCF, the issuance of additional partnership units, and debt offerings. Concurrent with the closing of its May 2008 initial public offering, WES Operating loaned Anadarko $260 million in exchange for a 30-year note bearing interest at a fixed annual rate of 6.50% , payable quarterly. The note receivable and related interest income are eliminated in consolidation. Noncontrolling Interest WES is a publicly traded limited partnership with its common units traded on the New York Stock Exchange (NYSE) under the ticker symbol "WES." WES also owns the entire non-economic general partner interest and a 98% limited partner interest in WES Operating, a Delaware limited partnership formed by Anadarko in 2007 to acquire, own, develop and operate midstream assets. In addition, Occidental has a 2% limited partner interest in WES Operating and its ownership is held through the investment in WES. At September 30, 2019, Occidental’s ownership interest in WES consisted of the entire non-economic general partner interest and a 55.4% limited partner interest. The noncontrolling interest primarily consists of the 44.6% limited partner interest of WES owned by the public. Discontinued Operations In connection with the Merger, Occidental agreed to sell to TOTAL S.A. (Total) all of the assets, liabilities, businesses, and operations of Anadarko's operations in Algeria, Ghana, Mozambique and South Africa (collectively, the Africa Assets) for $8.8 billion , subject to certain purchase price adjustments. In August 2019, a purchase and sale agreement was executed for these Africa Assets. This transaction is conditioned on the receipt of required regulatory approvals, as well as other customary closing conditions. On September 27, 2019, Occidental completed the sale of Anadarko’s Mozambique LNG assets to Total for $4.2 billion . The assets and liabilities for Algeria, Ghana and South Africa, are presented as held for sale at September 30, 2019. The results of operations of the Africa Assets are presented as discontinued operations, see Note 4 - Acquisitions, Dispositions, and Other . Unless otherwise indicated, information presented in the Notes to the Consolidated Condensed Financial Statements relates only to Occidental's continuing operations. Information related to discontinued operations is included in Note 4 - Acquisitions, Dispositions, and Other , and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Condensed Financial Statements. Goodwill and Other Intangible Assets Goodwill resulting from the Merger was assigned to WES Midstream and represents the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed. Goodwill is subject to annual impairment testing. Changes in goodwill may result from, among other things, finalization of preliminary purchase price allocations, impairments, additional acquisitions, or divestitures. See Note 3 - The Merger . Other intangible assets represent contractual rights obtained in connection with the Merger that had favorable contractual terms relative to market terms as well as customer-related intangible assets, including customer relationships. Other intangible assets are amortized over their estimated useful lives and are assessed for impairment with the associated long-lived asset group whenever impairment indicators are present. See Note 3 - The Merger . Supplemental Cash Flow Information Occidental paid international and domestic state income taxes of $751 million and $838 million during the nine months ended September 30, 2019, and 2018, respectively. Occidental received domestic state tax refunds of $2 million in each of the nine months ended September 30, 2019, and 2018. No federal income tax payments were made during the nine months ended September 30, 2019, and 2018. Interest paid totaled $610 million and $298 million during the nine months ended September 30, 2019, and 2018, respectively. Cash Equivalents and Restricted Cash Equivalents Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balance at September 30, 2019, includes investments in government money market funds in which the carrying value approximates fair value. The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2019 to the line items within the Consolidated Condensed Balance Sheet at September 30, 2019. There was no restricted cash or restricted cash equivalents at September 30, 2018 or December 31, 2018. millions September 30, 2019 Cash and cash equivalents $ 4,840 Restricted cash and restricted cash equivalents 454 Cash and restricted cash included in assets held for sale 16 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 55 Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents $ 5,365 |
Accounting and Disclosure Chang
Accounting and Disclosure Changes | 9 Months Ended |
Sep. 30, 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 Accounting Standards Codification 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. See Note 10 - Lease Commitments |
The Merger
The Merger | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
The Merger | The Merger On May 9, 2019, Occidental entered into the Merger Agreement with Anadarko. On August 8, 2019, Anadarko’s stockholders voted to approve the Merger and it was made effective the same day. The Merger added to Occidental's oil and gas portfolio, primarily in the Permian Basin, DJ Basin and Gulf of Mexico, and a controlling interest in WES. In exchange for each share of Anadarko common stock, Anadarko stockholders received $59.00 in cash and 0.2934 of a share of Occidental common stock, plus cash in lieu of any fractional share of Occidental common stock that otherwise would have been issued, based on the average price of $46.31 per share of Occidental common stock on the NYSE on August 8, 2019. In connection with the Merger, Occidental issued $13.0 billion of new senior unsecured notes, $8.8 billion of term loans (the Term Loans) and 100,000 shares of series A preferred stock (the Preferred Stock) with a warrant to purchase 80 million shares of Occidental common stock at an exercise price of $62.50 (the Warrant) for $10 billion . In addition, Occidental increased its existing $3.0 billion revolving credit facility by an additional $2.0 billion in commitments. See Note 9 - Long-term Debt and Note 14 - Stockholders' Equity for additional information. The Merger constitutes a business combination and was accounted for using the acquisition method of accounting. The following table presents the Merger consideration paid to Anadarko stockholders as a result of the Merger: millions, except per share amounts Total shares of Anadarko common stock eligible for Merger consideration 491.6 Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration) $ 59.00 Cash portion of Merger consideration $ 29,002 Total shares of Anadarko common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration 492.0 Exchange ratio (per share of Anadarko common stock) 0.2934 Total shares of Occidental common stock issued to Anadarko stockholders 144 Average share price of Occidental common stock at August 8, 2019 $ 46.31 Stock portion of Merger consideration $ 6,684 Total Merger consideration $ 35,686 The following table sets forth the preliminary allocation of the Merger consideration. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, final appraisals of assets acquired and liabilities assumed, valuation of pre-merger contingencies and final tax returns that provide underlying tax basis of assets acquired and liabilities assumed. Occidental will finalize the purchase price allocation during the 12-month period following the Merger date, during which time the value of the assets and liabilities may be revised as appropriate. millions As of August 8, 2019 Fair value of assets acquired: Current assets $ 3,590 Anadarko's Africa Assets held for sale 10,746 Investments in unconsolidated entities 2,430 Property, plant and equipment, net - Anadarko 48,771 Property, plant and equipment, net - WES Midstream 9,475 Other assets 797 Intangible assets - WES Midstream 2,400 Amount attributable to assets acquired $ 78,209 Fair value of liabilities assumed: Current liabilities $ 3,677 Liabilities of Anadarko's Africa Assets held for sale 2,329 Long-term debt - Anadarko 12,829 Long-term debt - WES Midstream 7,407 Deferred income taxes 10,040 Asset retirement obligations 2,728 Pension and post retirement obligations 1,125 Non-current derivative liabilities 1,279 Other long-term liabilities 2,308 Amount attributable to liabilities assumed $ 43,722 Net assets $ 34,487 Less: Fair value of noncontrolling interests in WES Midstream 4,875 Fair value of net assets acquired 29,612 Goodwill - WES Midstream 6,074 Total Merger consideration $ 35,686 The aggregate purchase price noted above was allocated to the major categories of assets and liabilities acquired based upon their preliminary estimated fair values at the date of the Merger. The valuation of certain assets, including property and intangible assets, are based on preliminary appraisals. The majority of measurements of assets acquired and liabilities assumed, other than debt, are based on inputs that are not observable in the market and thus represent Level 3 inputs. The fair value of acquired properties and equipment is based on both available market data and a cost approach. Oil and natural gas properties were valued using either available market data based on the nature of the properties and the location or an income approach. Intangible assets primarily consist of third-party customer contracts, the fair value of which was determined using an income approach. Deferred income taxes represent the tax effects of differences in the tax basis and merger-date fair values of assets acquired and liabilities assumed. The measurement of debt instruments was based on unadjusted quoted prices in an active market and are primarily Level 1; approximately $6.1 billion of the assumed debt is considered Level 2. The value of derivative instruments was based on observable inputs, primarily forward commodity-price and interest-rate curves and is considered Level 2. The excess of the purchase price over the preliminary estimated fair value of the net tangible and identifiable intangible assets acquired totaled $6.1 billion in goodwill. Goodwill is attributable to the difference in the WES Midstream market capitalization value at the date of the Merger and the WES Midstream net assets acquired, and primarily represents the intrinsic value of the customer relationship between WES Midstream and Occidental. With the completion of the Merger, Occidental acquired proved and unproved properties of approximately $18.2 billion and $26.0 billion , respectively, primarily associated with the Permian Basin, DJ Basin, Gulf of Mexico and Powder River Basin. The remaining $5.0 billion is related to land, mineral interests and corporate properties. Other intangible assets of $2.4 billion primarily relate to customer contracts associated with the WES Midstream segment. These contracts are amortized over 25 years . The annual aggregate amortization expense for intangible assets is expected to be $108 million . From the date of the Merger through September 30, 2019, revenues and net loss attributable to common stockholders associated with Anadarko assets totaled $1.5 billion and $400 million , respectively. The following summarizes the unaudited pro forma condensed financial information of Occidental as if the Merger had occurred on January 1, 2018: Three months ended September 30 Nine months ended September 30 millions, except per-share amounts 2019 2018 2019 2018 Revenues $ 7,335 $ 8,913 $ 22,419 $ 23,095 Net income (loss) attributable to common stockholders $ (427 ) $ 2,060 $ 475 $ 3,405 Net income (loss) attributable to common stockholders per share—basic $ (0.50 ) $ 2.27 $ 0.51 $ 3.74 Net income (loss) attributable to common stockholders per share—diluted $ (0.50 ) $ 2.26 $ 0.50 $ 3.73 The unaudited pro forma information is presented for illustration purposes only and is not necessarily indicative of the operating results that would have occurred had the Merger been completed at January 1, 2018, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma information for 2019 and 2018 is a result of combining the three and nine months statements of operations of Occidental with the pre-merger results from January 1, 2019, and 2018 of Anadarko and includes adjustments for revenues and direct expenses. The pro forma results exclude results from the Africa Assets and the impact of any merger-related costs. The pro forma results include adjustments to DD&A (Depreciation, depletion and amortization) based on the purchase price allocated to property, plant, and equipment and intangibles and the estimated useful lives as well as adjustments to interest expense. The pro forma adjustments include estimates and assumptions based on currently available information. Management believes the estimates and assumptions are reasonable, and the relative effects of the Merger are properly reflected. The unaudited pro forma information does not reflect any cost savings anticipated as a result of the Merger or any merger-related costs. Anadarko Merger-Related Costs The following table summarizes the merger-related costs incurred: millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Employee severance and related cost $ 459 $ 459 Licensing fees for critical seismic data 329 354 Bank, legal and consulting fees 136 161 Total $ 924 $ 974 Employee severance and related cost primarily relates to one-time severance costs and the accelerated vesting of certain Anadarko share-based awards for former Anadarko employees based on the terms of the Merger Agreement and existing change of control provisions within the former Anadarko employment agreements. In addition, employee severance and related cost includes expenses for a voluntary separation program for eligible employees. Occidental initiated this program to align the size and composition of its workforce with its expected future operating and capital plans. Employee notifications related to the voluntary separation program were ongoing at September 30, 2019, with additional expenses associated with the program expected to be incurred throughout the remainder of 2019 and through most of 2020. The seismic licensing fees relate to relicensing of critical seismic data related to the Gulf of Mexico, Permian Basin and DJ Basin that Anadarko had licensed from third-party vendors. The third-party vendors who own the seismic data require a transfer fee in order for Occidental to use the data. Occidental Stock-based Incentive Plans On the date of the Merger, Occidental issued restricted share awards covering 1.7 million shares of common stock in exchange for Anadarko stock-based incentive shares to the former Anadarko employees. These restricted shares vest in periods ranging from one month to 3.5 years and are conditioned solely on the employees' continued service, with a weighted-average grant-date fair value of $47.13 and a weighted-average remaining life of 1.3 |
Acquisitions, Dispositions, and
Acquisitions, Dispositions, and Other Transactions | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | |
Acquisitions, Dispositions, and Other Transactions | Acquisitions, Dispositions and Other Transactions On September 27, 2019, Occidental completed the sale of Anadarko’s Mozambique LNG assets to Total for $4.2 billion , with proceeds used to pay down a portion of the Term Loans. Occidental and Total continue to work toward completing the sales of the remaining Africa Assets. Occidental anticipates that the remaining sales will be completed before June 2020. The carrying amount of the remaining Africa Assets will be adjusted in future periods based on changes in fair value. The results of the Africa Assets are presented as discontinued operations in the Consolidated Condensed Statements of Operations and Cash Flows. The following table presents the amounts reported in discontinued operations, net of income taxes, related to the Africa Assets subsequent to the Merger closing date through September 30, 2019: millions 2019 REVENUES AND OTHER INCOME Net sales $ 228 COSTS AND OTHER DEDUCTIONS Oil and gas operating expense $ 32 Transportation and marketing expense 4 Taxes other than on income 46 Fair value adjustment on assets held for sale 65 Selling, general and administrative 8 Other 4 $ 159 Income before income taxes $ 69 Income tax expense (84 ) Discontinued operations, net of tax $ (15 ) The following table presents the amounts reported in the Consolidated Condensed Balance Sheets as held for sale related to the Africa Assets and other corporate property. millions September 30, 2019 Cash and cash equivalents $ 16 Inventories 207 Other current assets 110 Property, plant and equipment, net 5,863 Operating lease assets 29 Long-term receivables and other assets, net 220 Assets held for sale $ 6,445 Current maturities of debt - finance leases 13 Current operating lease liabilities 11 Accounts payable 217 Accrued liabilities 152 Long-term debt, net - finance leases 187 Deferred income taxes 1,281 Asset retirement obligations 142 Other 200 Liabilities of assets held for sale $ 2,203 Net assets held for sale $ 4,242 Sale of Plains Investment On September 23, 2019, Occidental sold its remaining equity investment in Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. (together, Plains) for net proceeds of $646 million , which resulted in a pre-tax gain of $111 million . The proceeds were used to pay down a portion of the Term Loans. Ecopetrol Joint Venture On July 31, 2019, Occidental and Ecopetrol entered into definitive agreements to form a joint venture to develop approximately 97,000 net acres of Occidental’s Midland Basin properties in the Permian Basin. Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for a 49 -percent interest in the new venture. Occidental will own a 51 -percent interest and operate the joint venture. During the carry period, Ecopetrol will pay 75 -percent of Occidental’s share of capital expenditures, up to $750 million |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 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, NGL, chemicals or services, such as transportation. As of September 30, 2019 , trade receivables, net, of $5.9 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: Three months ended September 30 Nine months ended September 30 millions 2019 2018 2019 2018 Revenue from customers $ 5,231 $ 4,257 $ 12,397 $ 11,813 All other revenues (a) 456 959 1,714 1,249 Net sales $ 5,687 $ 5,216 $ 14,111 $ 13,062 (a) Includes net marketing derivatives, oil collars and calls, and chemical exchange contracts. Disaggregation of Revenue from Contracts with Customers 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. WES Midstream's operations are entirely in the United States. Chemical revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, Marketing and Other Midstream revenues are shown by the location of sale: millions United States Middle East Latin America Other International Eliminations Total Three months ended September 30, 2019 Oil and Gas Oil $ 2,453 $ 683 $ 177 $ — $ — $ 3,313 NGL 177 63 — — — 240 Gas 125 78 5 — — 208 Other (18 ) 3 — — — (15 ) Segment total $ 2,737 $ 827 $ 182 $ — $ — $ 3,746 Chemical $ 1,009 $ — $ 36 $ 16 $ — $ 1,061 Marketing and Other Midstream Gas processing 93 81 — — — 174 Power and other 198 — — 37 — 235 Segment total $ 291 $ 81 $ — $ 37 $ — $ 409 WES Midstream $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (368 ) $ (368 ) Consolidated $ 4,420 $ 908 $ 218 $ 53 $ (368 ) $ 5,231 millions United States Middle East Latin America Other International Eliminations Total Three months ended September 30, 2018 Oil and Gas Oil $ 1,326 $ 1,016 $ 197 $ — $ — $ 2,539 NGL 139 77 — — — 216 Gas 47 80 5 — — 132 Other 3 — (1 ) — — 2 Segment total $ 1,515 $ 1,173 $ 201 $ — $ — $ 2,889 Chemical $ 1,112 $ — $ 51 $ 21 $ — $ 1,184 Marketing and Other Midstream Gas processing 148 108 — — — 256 Pipelines 115 — — — — 115 Power and other 38 — — — — 38 Segment total $ 301 $ 108 $ — $ — $ — $ 409 Eliminations $ — $ — $ — $ — $ (225 ) $ (225 ) Consolidated $ 2,928 $ 1,281 $ 252 $ 21 $ (225 ) $ 4,257 millions United States Middle East Latin America Other International Eliminations Total Nine months ended September 30, 2019 Oil and Gas Oil $ 5,105 $ 2,266 $ 524 $ — $ — $ 7,895 NGL 339 196 — — — 535 Gas 180 233 14 — — 427 Other (40 ) (2 ) — — — (42 ) Segment total $ 5,584 $ 2,693 $ 538 $ — $ — $ 8,815 Chemical $ 2,937 $ — $ 119 $ 53 $ — $ 3,109 Marketing and Other Midstream Gas processing 302 272 — — — 574 Power and other 274 — — 37 — 311 Segment total $ 576 $ 272 $ — $ 37 $ — $ 885 WES Midstream $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (795 ) $ (795 ) Consolidated $ 9,480 $ 2,965 $ 657 $ 90 $ (795 ) $ 12,397 millions United States Middle East Latin America Other International Eliminations Total Nine months ended September 30, 2018 Oil and Gas Oil $ 3,907 $ 2,507 $ 547 $ — $ — $ 6,961 NGL 339 192 — — — 531 Gas 141 218 12 — — 371 Other 10 1 — — — 11 Segment total $ 4,397 $ 2,918 $ 559 $ — $ — $ 7,874 Chemical $ 3,294 $ — $ 154 $ 59 $ — $ 3,507 Marketing and Other Midstream Gas processing 416 308 — — — 724 Pipelines 310 — — — — 310 Power and other 84 — — — — 84 Segment total $ 810 $ 308 $ — $ — $ — $ 1,118 Eliminations $ — $ — $ — $ — $ (686 ) $ (686 ) Consolidated $ 8,501 $ 3,226 $ 713 $ 59 $ (686 ) $ 11,813 Contract Liabilities Contract liabilities relate to WES fees and capital reimbursements that are charged to customers for only a portion of the contract term and must be recognized as revenues over the expected period of benefit, fixed and variable fees that are received from customers but revenue recognition is deferred under midstream cost of service contracts, and hard-minerals bonus payments received from customers that must be recognized as revenue over the expected period of benefit. The following table summarizes current period activity related to contract liabilities from contracts with customers: millions Balance at December 31, 2018 $ — Increase due to contract liabilities acquired with Anadarko 154 Increase due to cash received, excluding revenues recognized in the period 9 Decrease due to revenue recognized (13 ) Balance at September 30, 2019 $ 150 Transaction Price Allocated to Remaining Performance Obligations Revenue expected to be recognized from certain performance obligations that are unsatisfied as of September 30, 2019, is reflected in the table below. Occidental applies the optional exemptions in Topic 606 and does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied performance obligations. As a result, the following table represents a small portion of Occidental's expected future consolidated revenues, as future revenue from the sale of most products and services is dependent on future production or variable customer volume and variable commodity prices for that volume: millions Oil and Gas WES Midstream Eliminations Total Remainder of 2019 $ 26 $ 193 $ (127 ) $ 92 2020 103 863 (589 ) 377 2021 103 912 (645 ) 370 2022 7 963 (703 ) 267 2023 7 915 (690 ) 232 Thereafter 60 4,399 (3,768 ) 691 Total $ 306 $ 8,245 $ (6,522 ) $ 2,029 |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Commodity inventory and finished goods primarily represents crude oil, which is carried at the 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 consisted of the following: millions September 30, 2019 December 31, 2018 Raw materials $ 67 $ 74 Materials and supplies 916 445 Commodity inventory and finished goods 665 788 1,648 1,307 Revaluation to LIFO (47 ) (47 ) Total $ 1,601 $ 1,260 |
Derivative Instruments
Derivative Instruments | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments | Derivative Instruments Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity-price fluctuations and transportation commitments, to fix margins on the future sale of stored commodity volumes and interest rate risks. Occidental also enters into derivative financial instruments for trading purposes. Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally 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, such as to lock rates on forecasted debt issuances. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Derivatives Not Designated as Hedging Instruments As of September 30, 2019, Occidental's derivatives not designated as hedges consist of three-way oil collars and call options, interest rate swaps, marketing derivatives and the Warrant. Derivative instruments that are derivatives not designated as hedging instruments are required to be recorded on the statement of operations and balance sheet at fair value. Changes in fair value will impact Occidental's earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the realized or cash value of the instrument. Three-way Oil Collars and Call Options In July 2019, Occidental entered into three-way costless collar derivative instruments for 2020 and additional call options in 2021 to manage its near-term exposure to cash-flow variability from commodity-price risks. A three-way collar is a combination of three options: a sold call, a purchased put and a sold put. The sold call establishes the ceiling price that Occidental will receive for the contracted commodity volume for a defined period of time. The purchased put establishes the floor price that Occidental will receive for the contracted volumes unless the market price for the commodity falls below the sold put strike price, at which point the floor price equals the reference price plus the difference between the purchased put strike price and the sold put strike price for a defined period of time. Occidental entered into the 2021 call options to substantially improve the ceiling price that Occidental will receive for the contracted commodity volumes in 2020. In the Merger, Occidental also assumed three-way costless collars that expire throughout the rest of 2019. Net gains and losses associated with collars and calls are recognized currently in net sales. Hedge accounting was not elected for these contracts. Occidental had the following collars and calls outstanding at September 30, 2019 : Collars and Calls, not designated as hedges 2019 Settlement Three-way collars (Oil MMBL) 8.0 Average price per barrel (NYMEX/Brent oil pricing) Ceiling sold price (call) $ 72.98 Floor purchased price (put) $ 56.72 Floor sold price (put) $ 46.72 2020 Settlement Three-way collars (Oil MMBL) 109.8 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.09 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement Call Options sold (Oil MMBL) 109.5 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.09 Occidental Interest Rate Swaps (Excluding WES Midstream) Occidental acquired interest rate swap contracts in the Merger. The contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to three-month London Inter-Bank Offered Rate (LIBOR) throughout the reference period. Net gains and losses associated with interest rate derivative instruments not designated as hedging instruments are recognized currently in losses on interest rate swaps and warrants, net. Occidental had the following outstanding interest rate swaps at September 30, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 125 September 2016 - 2046 October 2019 6.782 % $ 550 September 2016 - 2046 September 2020 6.418 % $ 125 September 2016 - 2046 September 2022 6.835 % $ 100 September 2017 - 2047 September 2020 6.891 % $ 250 September 2017 - 2047 September 2021 6.570 % $ 450 September 2017 - 2047 September 2023 6.445 % Depending on market conditions, liability-management actions or other factors, Occidental may enter into offsetting interest rate swap positions or settle or amend certain or all of the currently outstanding interest rate swaps. Derivative settlements and collateralization are classified as cash flows from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified as cash flows from financing activities. As a result of prior extensions of reference-period start dates without settlement of the related interest rate derivative obligations, the interest rate derivatives in Occidental's portfolio contain an other-than-insignificant financing element, and therefore, any settlements, collateralization or cash payments for amendments related to these extended interest rate derivatives are classified as cash flows from financing activities. Net cash payments related to settlements and amendments of interest rate swap agreements were $43 million during the period from August 8, 2019, through September 30, 2019 . Subsequent to September 30, 2019, Occidental settled interest rate swaps that had a mandatory termination date of October 11, 2019, and a notional value of $125 million . WES Interest Rate Swaps In the Merger, Occidental also acquired interest rate swap contracts held by WES. WES exchanged a floating interest rate indexed to the three-month LIBOR for a fixed interest rate. Net gains and losses associated with these interest rate derivative instruments are recognized currently in losses on interest rate swaps and warrants, net. The following interest rate swaps were outstanding at September 30, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 375 December 2019 - 2024 December 2019 2.662 % $ 375 December 2019 - 2029 December 2019 2.802 % $ 375 December 2019 - 2049 December 2019 2.885 % Depending on market conditions, liability-management actions, or other factors, WES may settle or amend certain or all of the currently outstanding interest rate swaps. Marketing Derivatives Occidental's marketing derivative instruments not designated as hedges are physical and financial forward contracts which typically settle within three months . A substantial majority of Occidental's physically settled derivative contracts are index-based and carry no mark-to-market valuation in earnings. These instruments settle at a weighted-average contract price of $58.39 per barrel and $2.22 per thousand cubic feet (Mcf) for crude oil and natural gas, respectively, at September 30, 2019 . 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. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales. The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments as of September 30, 2019 , and December 31, 2018 . 2019 2018 Crude Oil Commodity Contracts Volume (MMBL) 36 61 Natural Gas Commodity Contracts Volume (Bcf) (128 ) (142 ) The Warrant The Warrant issued with the Preferred Stock in connection with the Merger is exercisable at the holder's option, in whole or in part, until the first anniversary of the date on which no shares of Preferred Stock remain outstanding at which point the Warrant expires. The holder of the Warrant may require net cash settlement if certain shareholder and regulatory approvals to issue Occidental common stock are not obtained on a timely basis. The initial fair value of the Warrant, $188 million , was measured at the date of the Merger using the Black Scholes option model. The following inputs were used in the Black Scholes option model; the expected life is based on the estimated term of the Warrant, the volatility factor is based on historical volatilities of Occidental common stock, and the call option price for Occidental common stock at $62.50 . The fair value of the Warrant is remeasured each reporting period based on changes in the inputs above. Derivatives Designated as Hedging Instruments Net gains and losses attributable to derivative instruments subject to cash flow 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. 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 September 30, 2019 , Occidental had approximately 5 billion cubic feet (Bcf) of natural gas held in storage, and had cash flow hedges for the forecast sales, to be settled by physical delivery, of approximately 3 Bcf of stored natural gas. As of December 31, 2018 , Occidental had approximately 5 Bcf of natural gas held in storage, and had cash flow hedges for the forecasted sales, to be settled by physical delivery, of approximately 4 Bcf of stored natural gas. The fair value of the cash flow hedges associated with stored natural gas was immaterial at September 30, 2019 and December 31, 2018. The ineffective portion recognized through earnings was immaterial for the nine months ended September 30, 2019 , and the year ended December 31, 2018. In June 2019, in anticipation of issuing debt in the third quarter to partially finance the cash portion of the Merger consideration, Occidental entered into a series of U.S. treasury locks which were designated as cash flow hedges. In August 2019, the U.S. treasury locks were unwound with the issuance of the $13.0 billion new senior unsecured notes, and the resulting after-tax accumulated other comprehensive loss of $125 million will be amortized to interest expense over the life of the underlying senior notes. Fair Value of Derivatives The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets. Balance Sheet Classification Fair-Value Measurements Using Netting (a) Total Fair Value millions Level 1 Level 2 Level 3 September 30, 2019 Oil Collars and Calls Other current assets $ — $ 217 $ — $ (4 ) $ 213 Accrued liabilities — 3 — (3 ) — Deferred credits and other liabilities - other — 97 — — 97 Marketing Derivatives Other current assets 838 97 — (861 ) 74 Long-term receivables and other assets, net 70 12 — (70 ) 12 Accrued liabilities 827 45 — (861 ) 11 Deferred credits and other liabilities - other 71 1 — (70 ) 2 Interest Rate Swaps (excluding WES) Other current assets — 14 — — 14 Long-term receivables and other assets, net — 13 — — 13 Accrued liabilities — 882 — — 882 Deferred credits and other liabilities - other — 879 — — 879 WES Interest Rate Swaps Accrued liabilities — 171 — — 171 Warrant Deferred credits and other liabilities - other — 168 — — 168 December 31, 2018 Marketing Derivatives Other current assets $ 2,531 $ 110 $ — $ (2,392 ) $ 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Accrued liabilities 2,357 101 — (2,392 ) 66 Deferred credits and other liabilities - other 6 2 — (6 ) 2 (a) These amounts do not include collateral. As of September 30, 2019 , $359 million of collateral has been netted against derivative liabilities related to interest rate swaps. Occidental had $ 36 million of initial margin deposited with brokers as of September 30, 2019 , related to marketing derivatives. As of December 31, 2018, $ 45 million collateral received has been netted against derivative assets, and collateral posted 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. Gains and Losses on Derivatives The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations: Income Statement Classification Three months ended September 30 Nine months ended September 30 millions 2019 2018 2019 2018 Oil Collars and Calls Net sales $ 75 $ — $ 75 $ — Marketing Derivatives Net sales 91 36 (119 ) 8 Interest Rate Swaps (Excluding WES) Losses on interest rate swaps and warrants, net (45 ) — (45 ) — Interest Rate Swaps (WES) Losses on interest rate swaps and warrants, net (8 ) — (8 ) — Warrants Gains on interest rate swaps and warrants, net 20 — 20 — Credit Risk Occidental's counterparty credit risk related to the physical delivery of energy commodities results from its customers' potential 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 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 party would need to post. The aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed at September 30, 2019 was $1.6 billion (net of $0.3 billion collateral), primarily related to acquired interest-rate swaps, and $68 million (net of $1 million of collateral) existed at December 31, 2018 . |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 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. Fair Values — Recurring In January 2012, Occidental entered into a long-term contract to purchase CO 2 . This contract contains a price adjustment clause that is linked to changes in NYMEX crude oil prices. Occidental determined that the portion of this contract linked to NYMEX oil prices is not clearly and closely related to the host contract, and Occidental therefore bifurcated this embedded pricing feature from its host contract and accounts for it at fair value in the Consolidated Condensed Financial Statements. The following tables provide fair-value measurement information for embedded derivatives that are measured on a recurring basis: millions Fair-Value Measurements Using Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair As of September 30, 2019 Accrued liabilities $ — $ 54 $ — $ — $ 54 Deferred credits and other liabilities - other — 73 — — 73 As of December 31, 2018 Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other — 116 — — 116 Fair-Values — Nonrecurring During the nine months ended September 30, 2019 , Occidental measured assets and liabilities at merger-date fair value on a nonrecurring basis related to the Merger. See Note 3 - The Merger for more detail. During the three and nine months ended September 30, 2019, Occidental's Oil and Gas segment recognized pre-tax impairment and related charges of $285 million related to domestic undeveloped leases that were set to expire in the near term, where Occidental had no plans to pursue exploration activities, and $40 million related to Occidental's mutually agreed early termination of its Qatar Idd El Shargi South Dome (ISSD) contract. During 2018, Occidental recognized pre-tax impairment and related charges of $416 million primarily related to Idd El Shargi North Dome (ISND) and ISSD 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. 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 September 30, 2019 , was $47.8 billion , which included $7.6 billion in debt related to WES. The majority of Occidental's debt is classified as Level 1, with $12.5 billion classified as Level 2. At December 31, 2018 , the estimated fair value of Occidental's debt was $10.3 billion |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt Long-term debt consisted of the following: millions Balance at September 30, 2019 Occidental 4.850% senior notes due 2021 $ 677 2.600% senior notes due 2021 1,500 4.100% senior notes due 2021 1,249 Variable rate bonds due 2021 (3.137% as of September 30, 2019) 500 Variable rate bonds due 2021 (3.437% as of September 30, 2019) 500 2-year variable rate Term Loan due 2021 (3.417% as of September 30, 2019) 3,966 2.700% senior notes due 2022 2,000 3.125% senior notes due 2022 814 2.600% senior notes due 2022 400 Variable rate bonds due 2022 (3.637% as of September 30, 2019) 1,500 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 2.900% senior notes due 2024 3,000 6.950% senior notes due 2024 650 3.450% senior notes due 2024 248 3.500% senior notes due 2025 750 5.550% senior notes due 2026 1,100 3.200% senior notes due 2026 1,000 3.400% senior notes due 2026 1,150 7.500% debentures due 2026 112 3.000% senior notes due 2027 750 7.125% debentures due 2027 150 7.000% debentures due 2027 48 6.625% debentures due 2028 14 7.150% debentures due 2028 235 7.200% senior debentures due 2028 82 7.200% debentures due 2029 135 7.950% debentures due 2029 116 8.450% senior debentures due 2029 116 3.500 senior notes due 2029 1,500 Variable rate bonds due 2030 (1.785% as of September 30, 2019) 68 7.500% senior notes due 2031 900 7.875% senior notes due 2031 500 6.450% senior notes due 2036 1,750 Zero Coupon senior notes due 2036 2,271 4.300% senior notes due 2039 750 7.950% senior notes due 2039 325 6.200% senior notes due 2040 750 4.500% senior notes due 2044 625 4.625% senior notes due 2045 750 6.600% senior notes due 2046 1,100 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 4.400% senior notes due 2049 750 7.730% debentures due 2096 60 7.500% debentures due 2096 78 7.250% debentures due 2096 49 Total borrowings at face value (a) 39,151 Adjustments to book value: Unamortized premium, net 859 Debt issuance costs (133 ) Long-term finance leases 69 Long-term Debt, net - Occidental $ 39,946 (a) Total borrowings at face value also includes a $310 thousand 7.25% senior note due 2025 millions Balance at September 30, 2019 WES 5.375% senior notes due 2021 $ 500 4.000% senior notes due 2022 670 3.950% senior notes due 2025 500 4.650% senior notes due 2026 500 4.500% senior notes due 2028 400 4.750% senior notes due 2028 400 5.450% senior notes due 2044 600 5.300% senior notes due 2048 700 5.500% senior notes due 2048 350 WES Term Loan Facility (3.420% as of September 30, 2019) 3,000 WES revolving credit facility (3.340% as of September 30,2019) 160 Total borrowings at face value $ 7,780 Adjustments to book value: Unamortized discount net (135 ) Debt issuance costs (8 ) Long-term Debt, net - WES $ 7,637 Occidental Consolidated Total borrowings at face value $ 46,931 Adjustments to book value: Unamortized premium, net 724 Debt issuance costs (141 ) Long-term finance leases 69 Total Occidental Consolidated Long-term Debt $ 47,583 millions Balance at December 31, 2018 Occidental 9.250% senior debentures due 2019 $ 116 4.100% senior notes due 2021 1,249 3.125% senior notes due 2022 813 2.600% senior notes due 2022 400 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 3.500% senior notes due 2025 750 3.400% senior notes due 2026 1,150 3.000% senior notes due 2027 750 7.200% senior debentures due 2028 82 8.450% senior debentures due 2029 116 4.625% senior notes due 2045 750 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 Variable rate bonds due 2030 (1.9% as of December 31, 2018) 68 10,407 Adjustments to book value: Unamortized discount, net (36 ) Debt issuance costs (54 ) Current maturities (116 ) Total Occidental Consolidated Long-term Debt $ 10,201 Debt Issued On August 8, 2019, Occidental issued $13.0 billion of new senior unsecured notes, consisting of both floating and fixed rate debt. Occidental also borrowed under the Term Loans, which consist of: (1) a 364 -day senior unsecured variable-rate term loan tranche of $4.4 billion and (2) a two-year senior unsecured variable-rate term loan tranche of $4.4 billion . In total, the $21.8 billion in debt issued was used to finance part of the cash portion of the purchase price for the Merger. Debt Assumed as Part of the Merger In the Merger, Occidental assumed Anadarko and WES debt with an outstanding principal balance of $11.9 billion and $4.6 billion , respectively. In addition, WES had borrowings of $2.9 billion under an RCF and term loan facilities at the Merger date. Debt assumed from Anadarko and WES was recorded at fair value at the Merger date, refer to Note 3 - The Merger . In September 2019, Occidental completed its offers to exchange the Anadarko senior notes and debentures assumed as part of the Merger for notes of a corresponding series issued by Occidental and cash, and related solicitation of consents. Of the approximately $11.9 billion in aggregate principal amount of Anadarko senior notes and debentures offered in the exchange, 97 percent , or approximately $11.5 billion , were tendered and accepted in the exchange offers. The portion not exchanged, approximately $400 million , remains outstanding with the original terms. Debt Repayment In September 2019, Occidental paid down $4.8 billion on the Term Loans, primarily using proceeds from the sales of both the Anadarko Mozambique LNG asset and Occidental's equity investment in Plains. WES Debt Debt related to WES included $4.6 billion in senior unsecured notes, $3.0 billion under the WES Term Loan Facility due December 2020, and $160 million drawn against the WES RCF at September 30, 2019. The WES Term Loan Facility has a maturity date of December 31, 2020 and requires that net cash proceeds received from future asset sales and debt or equity offerings must be used to repay amounts outstanding under the facility, with a $1.0 billion exclusion for debt offering proceeds. The WES RCF has a maturity date of February 2024 and a borrowing capacity of $2.0 billion . In September 2019, WES borrowed $1.0 billion under the WES Term Loan Facility and used the funds to repay borrowings under the WES RCF. Revolving Credit Facility On June 3, 2019, Occidental entered into an amendment to its existing $3.0 billion revolving credit facility (Occidental RCF) pursuant to which, among other things, the commitments under the Occidental RCF were increased to $5.0 billion at the closing of the Merger. Borrowings under the Occidental RCF bear interest at various benchmark rates, including LIBOR, plus a margin based on Occidental's senior debt ratings. The facility has similar terms to other debt agreements and does not contain material adverse change clauses or debt-ratings triggers that could restrict Occidental's ability to borrow, or that would permit lenders to terminate their commitments or accelerate debt repayment. The facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur. Occidental has not drawn down any amounts under the Occidental RCF. Zero Coupon Notes Due 2036 The Zero Coupon senior notes due 2036 (Zero Coupons) have an aggregate principal amount due at maturity of approximately $2.3 billion , reflecting an accretion rate of 5.24% . The Zero Coupons can be put to Occidental in October of each year, in whole or in part, for the then-accreted value of the outstanding Zero Coupons. None of the Zero Coupons were put to Occidental in October 2019. The Zero Coupons can next be put to Occidental in October 2020, which, if put in whole, would be $992 million at such date. Occidental has the ability and intent to refinance these obligations using long-term debt should a put be exercised. |
Lease Commitments
Lease Commitments | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lease Commitments | Lease Commitments 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 as follows: • 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 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Condensed 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 long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. ASC 842 requires lessees to recognize a ROU asset and lease liability for all long-term leases. A 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 and amortized on a straight-line basis over the course of the lease term. 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. 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 the criteria under ASC 840. For Occidental operations, adoption of ASC 842 resulted in recording of net lease assets and lease liabilities of $772 million as of January 1, 2019. There was no material impact to net income, cash flows, or stockholders’ equity. Merger Impact ASC 805 Business Combinations requires lease-related assets and liabilities acquired to be measured as if the lease were new at the merger date. Occidental measured the Anadarko legacy lease agreements using an updated incremental borrowing rate curve. This resulted in legacy Anadarko assets and liabilities of $498 million and $574 million , respectively, excluding the Africa Assets at the Merger date. These agreements are still under further review for above-or below-market impacts. The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date: millions Operating Leases Finance Leases Total Remainder of 2019 $ 90 $ 7 $ 97 2020 172 25 197 2021 64 15 79 2022 42 12 54 2023 28 7 35 Thereafter 136 42 178 Total lease payments 532 108 640 Less: Interest (44 ) (22 ) (66 ) Total lease liabilities $ 488 $ 86 $ 574 Additionally, Occidental has elected short-term lease treatment for those acquired lease contracts which, at the Merger date, have a remaining lease term of 12 months or less. For the leases acquired through the Merger, Occidental will retain the previous lease classification. Nature of Leases Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $186 million , compressors of $174 million and other field equipment of $97 million , which are recorded gross on the Consolidated Condensed Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from two to seven years . Further, 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, rail cars, storage facilities, easements and real estate of $682 million , which typically are not associated with joint-interest recoveries. Real estate leases have contract expiration terms ranging from 1 to 16 years . Occidental’s finance lease agreements include leases for oil and gas exploration and development equipment, as well as real estate offices, compressors, and field equipment of approximately $100 million . The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,078 Finance Property, plant and equipment 97 Total lease assets $ 1,175 Liabilities: Current Operating Current operating lease liabilities $ 463 Finance Current maturities of long-term debt 31 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 676 Finance Long-term debt, net - Occidental 69 Total lease liabilities $ 1,239 At September 30, 2019 , Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2019 $ 119 $ 8 $ 127 2020 390 38 428 2021 197 15 212 2022 129 12 141 2023 94 7 101 Thereafter 311 42 353 Total lease payments 1,240 122 1,362 Less: Interest (101 ) (22 ) (123 ) Total lease liabilities $ 1,139 $ 100 $ 1,239 (a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79% . (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92% . 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: Operating millions Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Merger. The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities. Lease cost classification (a) Three months ended September 30, 2019 Nine months ended September 30, 2019 millions Operating lease costs (b) Property, plant and equipment, net $ 139 $ 321 Cost of sales 133 271 Selling, general and administrative expenses 26 61 Finance lease cost Amortization of ROU assets 5 11 Interest on lease liabilities 1 1 $ 304 $ 665 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $139 million and $295 million for the three and nine months ended September 30, 2019, respectively, and variable lease cost of $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. millions Nine months ended September 30, 2019 Operating cash flows $ 162 Investing cash flows 83 Financing cash flows 11 |
Lease Commitments | Lease Commitments 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 as follows: • 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 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Condensed 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 long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. ASC 842 requires lessees to recognize a ROU asset and lease liability for all long-term leases. A 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 and amortized on a straight-line basis over the course of the lease term. 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. 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 the criteria under ASC 840. For Occidental operations, adoption of ASC 842 resulted in recording of net lease assets and lease liabilities of $772 million as of January 1, 2019. There was no material impact to net income, cash flows, or stockholders’ equity. Merger Impact ASC 805 Business Combinations requires lease-related assets and liabilities acquired to be measured as if the lease were new at the merger date. Occidental measured the Anadarko legacy lease agreements using an updated incremental borrowing rate curve. This resulted in legacy Anadarko assets and liabilities of $498 million and $574 million , respectively, excluding the Africa Assets at the Merger date. These agreements are still under further review for above-or below-market impacts. The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date: millions Operating Leases Finance Leases Total Remainder of 2019 $ 90 $ 7 $ 97 2020 172 25 197 2021 64 15 79 2022 42 12 54 2023 28 7 35 Thereafter 136 42 178 Total lease payments 532 108 640 Less: Interest (44 ) (22 ) (66 ) Total lease liabilities $ 488 $ 86 $ 574 Additionally, Occidental has elected short-term lease treatment for those acquired lease contracts which, at the Merger date, have a remaining lease term of 12 months or less. For the leases acquired through the Merger, Occidental will retain the previous lease classification. Nature of Leases Occidental’s operating lease agreements include leases for oil and gas exploration and development equipment, including offshore and onshore drilling rigs of $186 million , compressors of $174 million and other field equipment of $97 million , which are recorded gross on the Consolidated Condensed Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from two to seven years . Further, 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, rail cars, storage facilities, easements and real estate of $682 million , which typically are not associated with joint-interest recoveries. Real estate leases have contract expiration terms ranging from 1 to 16 years . Occidental’s finance lease agreements include leases for oil and gas exploration and development equipment, as well as real estate offices, compressors, and field equipment of approximately $100 million . The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,078 Finance Property, plant and equipment 97 Total lease assets $ 1,175 Liabilities: Current Operating Current operating lease liabilities $ 463 Finance Current maturities of long-term debt 31 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 676 Finance Long-term debt, net - Occidental 69 Total lease liabilities $ 1,239 At September 30, 2019 , Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2019 $ 119 $ 8 $ 127 2020 390 38 428 2021 197 15 212 2022 129 12 141 2023 94 7 101 Thereafter 311 42 353 Total lease payments 1,240 122 1,362 Less: Interest (101 ) (22 ) (123 ) Total lease liabilities $ 1,139 $ 100 $ 1,239 (a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79% . (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92% . 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: Operating millions Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Merger. The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities. Lease cost classification (a) Three months ended September 30, 2019 Nine months ended September 30, 2019 millions Operating lease costs (b) Property, plant and equipment, net $ 139 $ 321 Cost of sales 133 271 Selling, general and administrative expenses 26 61 Finance lease cost Amortization of ROU assets 5 11 Interest on lease liabilities 1 1 $ 304 $ 665 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $139 million and $295 million for the three and nine months ended September 30, 2019, respectively, and variable lease cost of $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. millions Nine months ended September 30, 2019 Operating cash flows $ 162 Investing cash flows 83 Financing cash flows 11 |
Lawsuits, Claims, Commitments a
Lawsuits, Claims, Commitments and Contingencies | 9 Months Ended |
Sep. 30, 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 Comprehensive Environmental Response, Compensation and Liability Act (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 12 - 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 September 30, 2019 , and December 31, 2018, were not material to Occidental’s Consolidated Condensed 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. On May 30, 2019, a complaint was filed in the Court of Chancery of the State of Delaware by purported Occidental stockholders High River Limited Partnership, Icahn Partners Master Fund LP and Icahn Partners LP (the “Icahn Complainants”), captioned High River Ltd. P’ship v. Occidental Petroleum Corp., C.A. No. 2019-0403-JRS, seeking inspection of Occidental’s books and records pursuant to Section 220 of the Delaware General Corporation Law. In the complaint, the Icahn Complainants noted that they had accumulated over $1.6 billion of Occidental Common Stock. On June 14, 2019, Occidental filed an answer to the complaint in the Court of Chancery of the State of Delaware. A trial was held on September 20, 2019, and the parties are awaiting a ruling. 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 Condensed Balance Sheets. 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. With the Merger, Occidental maintains two separate federal consolidated groups. For the legacy Occidental group, 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. For Anadarko, taxable years through 2016 for United States federal and state income tax purposes have been audited by the IRS and respective state taxing authorities. While the local country audit of a single foreign tax jurisdiction is open for tax years 2011 through 2013, there are no outstanding significant audit matters in foreign jurisdictions. 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. The tax deduction for the Tronox Adversary Proceeding (Tronox) settlement payment contributed to a net operating loss reported on Anadarko’s 2015 federal income tax return that was subsequently carried back to previous years and resulted in a tentative cash refund of $881 million of prior taxes paid, which was received in 2016. While Occidental believes it is entitled to this refund, in accordance with ASC 740's guidance on the accounting for uncertain tax positions, as of September 30, 2019, Occidental has recorded no tax benefit on the tentative cash tax refund of prior federal taxes paid of $881 million . As a result, should Occidental not ultimately prevail on the issue, there would be no tax expense recorded for financial statement purposes other than future interest. However, in that event Occidental would be required to repay approximately $917 million ( $898 million federal and $19 million in state taxes) plus accrued interest of approximately $171 million . 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 September 30, 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. Purchase Obligations and Commitments Occidental, its subsidiaries, or both, have entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling rigs and services, electrical power, steam and certain chemical raw materials. Occidental has certain other commitments under contracts, guarantees and joint ventures, including purchase commitments for goods and services at market-related prices and certain other contingent liabilities. As of September 30, 2019, there were no material changes to Occidental's legacy purchase obligations since disclosure in the 2018 Form 10-K. In the Merger, Occidental assumed purchase obligations of approximately $5.2 billion , which included approximately $315 million , $1.0 billion , $907 million , $735 million , $589 million and $1.6 billion that will be paid for the remainder of 2019, 2020, 2021, 2022, 2023, and 2024 and thereafter, respectively. These amounts were discounted at 3.88% . These purchase obligations are related to long-term and work-related commitments for drilling wells, obtaining and processing seismic data, and fulfilling rig commitments, as well as various processing, transportation, storage, and purchase agreements to access markets and provide flexibility to sell its oil, natural gas, and NGL in certain areas. |
Environmental Liabilities and E
Environmental Liabilities and Expenditures | 9 Months Ended |
Sep. 30, 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 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. Occidental 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 September 30, 2019 , Occidental participated in or monitored remedial activities or proceedings at 185 sites. The following table presents Occidental’s current and non-current environmental remediation reserves as of September 30, 2019 . The current portion, $ 149 million , is included in accrued liabilities and the non-current portion, $ 905 million , in deferred credits and other liabilities - environmental remediation reserves. 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. Occidental continues to evaluate environmental liabilities assumed through the Merger with an initial determination that it will participate in or monitor remedial activities or proceedings at 42 sites. The underlying reserve balance for the environmental sites assumed through the Merger will change as more site-specific information and clean-up measures becomes available. Number of Sites Reserve Balance millions ) NPL sites 34 $ 452 Third-party sites 66 223 Occidental-operated sites 14 110 Closed or non-operated Occidental sites 29 127 Environmental sites assumed from the Merger 42 142 Total 185 $ 1,054 As of September 30, 2019 , Occidental’s environmental reserves exceeded $10 million each at 19 of the 185 sites described above, and 112 of the sites had reserves from zero 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 remaining 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 $1.2 billion . Other than the sites assumed through the Merger, 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 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. |
Retirement and Postretirement B
Retirement and Postretirement Benefit Plans | 9 Months Ended |
Sep. 30, 2019 | |
Retirement Benefits [Abstract] | |
Retirement and Postretirement Benefit Plans | Retirement and Postretirement Benefit Plans Occidental has various defined benefit pension plans for certain domestic union, non-union hourly and foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents. In conjunction with the Merger, Occidental acquired certain Anadarko contributory and non-contributory defined benefit pension plans, which include both qualified and supplemental plans, and plans that provide health care and life insurance benefits for certain retired employees. The Anadarko pension and postretirement obligations were remeasured as of the Merger date. The disclosures below exclude the Africa Assets classified as held for sale as of September 30, 2019. The remeasurement resulted in an increase to the benefit obligation of $193 million . Accumulated other comprehensive income balances of $390 million were eliminated in purchase price accounting. Net periodic benefit costs related to pension benefits included a curtailment gain of $34 million and a $10 million cost of special termination benefits for both the three and nine months ended September 30, 2019. The curtailment gain and cost of special termination benefits for 2019 relate to the separation program initiated in conjunction with the Merger. Excluding these items, net periodic benefit costs related to pension benefits were $15 million and $19 million for the three and nine months ended September 30, 2019, respectively, compared to $2 million and $4 million for the same periods in 2018. Net periodic benefit costs related to postretirement benefits were $19 million and $48 million for the three and nine months ended September 30, 2019, respectively, compared to $15 million and $55 million for the same periods in 2018. Occidental contributed approximately $7 million and $2 million in the three months ended September 30, 2019 , and 2018 , respectively, and approximately $8 million and $4 million in the nine months ended September 30, 2019 , and 2018 , respectively, to its defined benefit plans. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table is a summary of common stock issuances: shares in thousands Common Stock Balance at December 31, 2018 895,116 Issued in the ordinary course 2,394 Issued as part of the Merger (a) 146,131 Balance at September 30, 2019 1,043,641 (a) Includes approximately 2 million shares of common stock issued to a benefits trust for former Anadarko employees treated as treasury stock at September 30, 2019. Occidental has authorized 50 million shares of preferred stock with a par value of $1.00 per share. On August 8, 2019, in connection with the Merger, Occidental issued 100,000 shares of a new series A preferred stock (the Preferred Stock), having a face value of $100,000 per share. Dividends on the Preferred Stock will accrue on the face value at a rate per annum of 8 percent, but will be paid only when, as, and if declared by Occidental’s Board of Directors. At any time, when such dividends have not been paid in full, the unpaid amounts will accrue dividends, compounded quarterly, at a rate per annum of 9 percent. Following the payment in full of any accrued but unpaid dividends, the dividend rate will remain at 9 percent per annum. On October 15, 2019, Occidental paid approximately $149 million in Preferred Stock dividends. At September 30, 2019, Occidental had 100,000 shares of preferred stock issued and outstanding, and none were outstanding at December 31, 2018. The following table presents the calculation of basic and diluted net income (loss) attributable to common stockholders per share: Three months ended September 30 Nine months ended September 30 millions except per-share amounts 2019 2018 2019 2018 Net income (loss) attributable to common stockholders $ (912 ) $ 1,869 $ 354 $ 3,425 Less: Net income allocated to participating securities — 8 1 16 Net income (loss), net of participating securities $ (912 ) $ 1,861 $ 353 $ 3,409 Weighted average number of basic shares 845.7 761.7 781.1 764.3 Net income (loss) attributable to common stockholders per share—basic $ (1.08 ) $ 2.44 $ 0.45 $ 4.46 Net income (loss), net of participating securities $ (912 ) $ 1,861 $ 353 $ 3,409 Weighted average number of basic shares 845.7 761.7 781.1 764.3 Dilutive securities — 1.6 1.1 1.5 Total diluted weighted-average common shares 845.7 763.3 782.2 765.8 Net income (loss) attributable to common stockholders per share—diluted $ (1.08 ) $ 2.44 $ 0.45 $ 4.45 Accumulated other comprehensive loss consisted of the following after-tax amounts: millions Gains and (losses) on derivatives Pension and postretirement benefit plans Foreign currency translation adjustments Total Balance at December 31, 2018 $ 5 $ (170 ) $ (7 ) $ (172 ) Other comprehensive loss, before reclassifications (130 ) (30 ) — (160 ) Balance at September 30, 2019 $ (125 ) $ (200 ) $ (7 ) $ (332 ) |
Industry Segments
Industry Segments | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Industry Segments | Industry Segments Occidental conducts its operations through four segments: (1) Oil and Gas; (2) Chemical; (3) Marketing and Other Midstream; and (4) WES Midstream. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko merger-related costs and unallocated corporate expenses are included under Corporate and Eliminations. 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: millions Oil and Gas Chemical Marketing and Other Midstream WES Midstream (a) Corporate and Eliminations Total Three months ended September 30, 2019 Net sales $ 3,821 $ 1,071 $ 780 $ 383 $ (368 ) $ 5,687 Income (loss) from continuing operations before income taxes $ 221 $ 207 $ 266 $ 134 $ (1,449 ) (b) $ (621 ) Income tax expense — — — — (116 ) (116 ) Income (loss) from continuing operations $ 221 $ 207 $ 266 $ 134 $ (1,565 ) $ (737 ) Three months ended September 30, 2018 Net sales $ 2,889 $ 1,185 $ 1,367 $ — $ (225 ) $ 5,216 Income (loss) from continuing operations before income taxes $ 767 $ 321 $ 1,698 $ — $ (207 ) $ 2,579 Income tax expense — — — — (710 ) (710 ) Income (loss) from continuing operations $ 767 $ 321 $ 1,698 $ — $ (917 ) $ 1,869 Nine months ended September 30, 2019 Net sales $ 8,890 $ 3,128 $ 2,505 $ 383 $ (795 ) $ 14,111 Income (loss) from continuing operations before income taxes $ 1,431 $ 680 $ 876 $ 134 $ (1,945 ) (b) $ 1,176 Income tax expense — — — (647 ) (647 ) Income (loss) from continuing operations $ 1,431 $ 680 $ 876 $ 134 $ (2,592 ) $ 529 Nine months ended September 30, 2018 Net sales $ 7,874 $ 3,515 $ 2,359 $ — $ (686 ) $ 13,062 Income (loss) from continuing operations before income taxes $ 2,297 $ 936 $ 2,127 $ — $ (584 ) $ 4,776 Income tax expense — — — (1,351 ) (1,351 ) Income (loss) from continuing operations $ 2,297 $ 936 $ 2,127 $ — $ (1,935 ) $ 3,425 (a) The WES Midstream segment results represent the period from August 8, 2019, the Merger date, through September 30, 2019. (b) The three months ended September 30, 2019 includes merger-related costs of $924 million and amortized debt financing fees of $65 million . The nine months ended September 30, 2019 includes merger-related costs of $974 million and amortized debt financing fees of $122 million . |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles (GAAP) and include the accounts of OPC, its subsidiaries, VIEs for which Occidental is the primary beneficiary, and its undivided interests in oil and gas exploration and production ventures. Occidental has made its disclosures in accordance with 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 notes. These unaudited consolidated 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 (the 2018 Form 10-K). The Merger, including the addition of WES Midstream as a new reporting segment, introduced different revenue and expense streams to Occidental's legacy operations. As a result, changes were made to the structure of certain financial statements, notes and supplementary data to provide clarity and to conform to the current presentation. |
Variable Interest Entities | Variable Interest Entities Occidental, through its ownership of the general partner interest in WES, has the power to direct the activities that significantly affect the economic performance of WES and the obligation to absorb losses or the right to receive benefits that could be significant to WES; therefore, Occidental is considered the primary beneficiary and consolidates WES and all of its consolidated subsidiaries. WES maintains its own capital structure that is separate from Occidental, consisting of its own debt instruments and publicly traded common units. All intercompany transactions have been eliminated. The assets of WES and its subsidiaries cannot be used by Occidental for general corporate purposes and are included in and disclosed parenthetically on Occidental's consolidated condensed balance sheets, if material. The carrying amount of liabilities related to WES for which the creditors do not have recourse to Occidental's assets are also included in and disclosed parenthetically on Occidental's Consolidated Condensed Balance Sheets, if material. All outstanding debt for WES at September 30, 2019, including any borrowings under the WES revolving credit facility (WES RCF) and WES Term Loan Facility, is recourse to the general partner of Western Midstream Operating, LP (WES Operating), which in turn has been indemnified in certain circumstances by certain indirect wholly owned subsidiaries of Occidental for such liabilities. See Note 9 - Long-Term Debt . WES's sources of liquidity include cash and cash equivalents, cash flows generated from operations, interest income from a note receivable from Anadarko, borrowings under the WES RCF, the issuance of additional partnership units, and debt offerings. |
Discontinued Operations | Discontinued Operations In connection with the Merger, Occidental agreed to sell to TOTAL S.A. (Total) all of the assets, liabilities, businesses, and operations of Anadarko's operations in Algeria, Ghana, Mozambique and South Africa (collectively, the Africa Assets) for $8.8 billion , subject to certain purchase price adjustments. In August 2019, a purchase and sale agreement was executed for these Africa Assets. This transaction is conditioned on the receipt of required regulatory approvals, as well as other customary closing conditions. On September 27, 2019, Occidental completed the sale of Anadarko’s Mozambique LNG assets to Total for $4.2 billion . The assets and liabilities for Algeria, Ghana and South Africa, are presented as held for sale at September 30, 2019. The results of operations of the Africa Assets are presented as discontinued operations, see Note 4 - Acquisitions, Dispositions, and Other . Unless otherwise indicated, information presented in the Notes to the Consolidated Condensed Financial Statements relates only to Occidental's continuing operations. Information related to discontinued operations is included in Note 4 - Acquisitions, Dispositions, and Other , and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Condensed Financial Statements. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from the Merger was assigned to WES Midstream and represents the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed. Goodwill is subject to annual impairment testing. Changes in goodwill may result from, among other things, finalization of preliminary purchase price allocations, impairments, additional acquisitions, or divestitures. See Note 3 - The Merger . Other intangible assets represent contractual rights obtained in connection with the Merger that had favorable contractual terms relative to market terms as well as customer-related intangible assets, including customer relationships. Other intangible assets are amortized over their estimated useful lives and are assessed for impairment with the associated long-lived asset group whenever impairment indicators are present. See Note 3 - The Merger . |
Accounting and Disclosure Changes | Accounting and Disclosure Changes In January 2019, Occidental adopted the new lease standard Accounting Standards Codification 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. See Note 10 - Lease Commitments |
General (Tables)
General (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2019 to the line items within the Consolidated Condensed Balance Sheet at September 30, 2019. There was no restricted cash or restricted cash equivalents at September 30, 2018 or December 31, 2018. millions September 30, 2019 Cash and cash equivalents $ 4,840 Restricted cash and restricted cash equivalents 454 Cash and restricted cash included in assets held for sale 16 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 55 Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents $ 5,365 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the Consolidated Condensed Statements of Cash Flows for the nine months ended September 30, 2019 to the line items within the Consolidated Condensed Balance Sheet at September 30, 2019. There was no restricted cash or restricted cash equivalents at September 30, 2018 or December 31, 2018. millions September 30, 2019 Cash and cash equivalents $ 4,840 Restricted cash and restricted cash equivalents 454 Cash and restricted cash included in assets held for sale 16 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 55 Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents $ 5,365 |
The Merger (Tables)
The Merger (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Consideration | The following table presents the Merger consideration paid to Anadarko stockholders as a result of the Merger: millions, except per share amounts Total shares of Anadarko common stock eligible for Merger consideration 491.6 Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration) $ 59.00 Cash portion of Merger consideration $ 29,002 Total shares of Anadarko common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration 492.0 Exchange ratio (per share of Anadarko common stock) 0.2934 Total shares of Occidental common stock issued to Anadarko stockholders 144 Average share price of Occidental common stock at August 8, 2019 $ 46.31 Stock portion of Merger consideration $ 6,684 Total Merger consideration $ 35,686 |
Schedule of Preliminary Purchase Price Allocation | The following table sets forth the preliminary allocation of the Merger consideration. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, final appraisals of assets acquired and liabilities assumed, valuation of pre-merger contingencies and final tax returns that provide underlying tax basis of assets acquired and liabilities assumed. Occidental will finalize the purchase price allocation during the 12-month period following the Merger date, during which time the value of the assets and liabilities may be revised as appropriate. millions As of August 8, 2019 Fair value of assets acquired: Current assets $ 3,590 Anadarko's Africa Assets held for sale 10,746 Investments in unconsolidated entities 2,430 Property, plant and equipment, net - Anadarko 48,771 Property, plant and equipment, net - WES Midstream 9,475 Other assets 797 Intangible assets - WES Midstream 2,400 Amount attributable to assets acquired $ 78,209 Fair value of liabilities assumed: Current liabilities $ 3,677 Liabilities of Anadarko's Africa Assets held for sale 2,329 Long-term debt - Anadarko 12,829 Long-term debt - WES Midstream 7,407 Deferred income taxes 10,040 Asset retirement obligations 2,728 Pension and post retirement obligations 1,125 Non-current derivative liabilities 1,279 Other long-term liabilities 2,308 Amount attributable to liabilities assumed $ 43,722 Net assets $ 34,487 Less: Fair value of noncontrolling interests in WES Midstream 4,875 Fair value of net assets acquired 29,612 Goodwill - WES Midstream 6,074 Total Merger consideration $ 35,686 |
Pro Forma Information | The following summarizes the unaudited pro forma condensed financial information of Occidental as if the Merger had occurred on January 1, 2018: Three months ended September 30 Nine months ended September 30 millions, except per-share amounts 2019 2018 2019 2018 Revenues $ 7,335 $ 8,913 $ 22,419 $ 23,095 Net income (loss) attributable to common stockholders $ (427 ) $ 2,060 $ 475 $ 3,405 Net income (loss) attributable to common stockholders per share—basic $ (0.50 ) $ 2.27 $ 0.51 $ 3.74 Net income (loss) attributable to common stockholders per share—diluted $ (0.50 ) $ 2.26 $ 0.50 $ 3.73 |
Schedule of Merger-Related Costs | The following table summarizes the merger-related costs incurred: millions Three months ended September 30, 2019 Nine months ended September 30, 2019 Employee severance and related cost $ 459 $ 459 Licensing fees for critical seismic data 329 354 Bank, legal and consulting fees 136 161 Total $ 924 $ 974 |
Acquisitions, Dispositions, a_2
Acquisitions, Dispositions, and Other Transactions (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | |
Summary of Revenues, Costs and Assets Held for Sale of Discontinued Operations | The following table presents the amounts reported in discontinued operations, net of income taxes, related to the Africa Assets subsequent to the Merger closing date through September 30, 2019: millions 2019 REVENUES AND OTHER INCOME Net sales $ 228 COSTS AND OTHER DEDUCTIONS Oil and gas operating expense $ 32 Transportation and marketing expense 4 Taxes other than on income 46 Fair value adjustment on assets held for sale 65 Selling, general and administrative 8 Other 4 $ 159 Income before income taxes $ 69 Income tax expense (84 ) Discontinued operations, net of tax $ (15 ) The following table presents the amounts reported in the Consolidated Condensed Balance Sheets as held for sale related to the Africa Assets and other corporate property. millions September 30, 2019 Cash and cash equivalents $ 16 Inventories 207 Other current assets 110 Property, plant and equipment, net 5,863 Operating lease assets 29 Long-term receivables and other assets, net 220 Assets held for sale $ 6,445 Current maturities of debt - finance leases 13 Current operating lease liabilities 11 Accounts payable 217 Accrued liabilities 152 Long-term debt, net - finance leases 187 Deferred income taxes 1,281 Asset retirement obligations 142 Other 200 Liabilities of assets held for sale $ 2,203 Net assets held for sale $ 4,242 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 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: Three months ended September 30 Nine months ended September 30 millions 2019 2018 2019 2018 Revenue from customers $ 5,231 $ 4,257 $ 12,397 $ 11,813 All other revenues (a) 456 959 1,714 1,249 Net sales $ 5,687 $ 5,216 $ 14,111 $ 13,062 (a) Includes net marketing derivatives, oil collars and calls, and chemical exchange contracts. |
Schedule of revenue from customers by segment, product, and geographical area | Excluding net marketing revenue, Marketing and Other Midstream revenues are shown by the location of sale: millions United States Middle East Latin America Other International Eliminations Total Three months ended September 30, 2019 Oil and Gas Oil $ 2,453 $ 683 $ 177 $ — $ — $ 3,313 NGL 177 63 — — — 240 Gas 125 78 5 — — 208 Other (18 ) 3 — — — (15 ) Segment total $ 2,737 $ 827 $ 182 $ — $ — $ 3,746 Chemical $ 1,009 $ — $ 36 $ 16 $ — $ 1,061 Marketing and Other Midstream Gas processing 93 81 — — — 174 Power and other 198 — — 37 — 235 Segment total $ 291 $ 81 $ — $ 37 $ — $ 409 WES Midstream $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (368 ) $ (368 ) Consolidated $ 4,420 $ 908 $ 218 $ 53 $ (368 ) $ 5,231 millions United States Middle East Latin America Other International Eliminations Total Three months ended September 30, 2018 Oil and Gas Oil $ 1,326 $ 1,016 $ 197 $ — $ — $ 2,539 NGL 139 77 — — — 216 Gas 47 80 5 — — 132 Other 3 — (1 ) — — 2 Segment total $ 1,515 $ 1,173 $ 201 $ — $ — $ 2,889 Chemical $ 1,112 $ — $ 51 $ 21 $ — $ 1,184 Marketing and Other Midstream Gas processing 148 108 — — — 256 Pipelines 115 — — — — 115 Power and other 38 — — — — 38 Segment total $ 301 $ 108 $ — $ — $ — $ 409 Eliminations $ — $ — $ — $ — $ (225 ) $ (225 ) Consolidated $ 2,928 $ 1,281 $ 252 $ 21 $ (225 ) $ 4,257 millions United States Middle East Latin America Other International Eliminations Total Nine months ended September 30, 2019 Oil and Gas Oil $ 5,105 $ 2,266 $ 524 $ — $ — $ 7,895 NGL 339 196 — — — 535 Gas 180 233 14 — — 427 Other (40 ) (2 ) — — — (42 ) Segment total $ 5,584 $ 2,693 $ 538 $ — $ — $ 8,815 Chemical $ 2,937 $ — $ 119 $ 53 $ — $ 3,109 Marketing and Other Midstream Gas processing 302 272 — — — 574 Power and other 274 — — 37 — 311 Segment total $ 576 $ 272 $ — $ 37 $ — $ 885 WES Midstream $ 383 $ — $ — $ — $ — $ 383 Eliminations $ — $ — $ — $ — $ (795 ) $ (795 ) Consolidated $ 9,480 $ 2,965 $ 657 $ 90 $ (795 ) $ 12,397 millions United States Middle East Latin America Other International Eliminations Total Nine months ended September 30, 2018 Oil and Gas Oil $ 3,907 $ 2,507 $ 547 $ — $ — $ 6,961 NGL 339 192 — — — 531 Gas 141 218 12 — — 371 Other 10 1 — — — 11 Segment total $ 4,397 $ 2,918 $ 559 $ — $ — $ 7,874 Chemical $ 3,294 $ — $ 154 $ 59 $ — $ 3,507 Marketing and Other Midstream Gas processing 416 308 — — — 724 Pipelines 310 — — — — 310 Power and other 84 — — — — 84 Segment total $ 810 $ 308 $ — $ — $ — $ 1,118 Eliminations $ — $ — $ — $ — $ (686 ) $ (686 ) Consolidated $ 8,501 $ 3,226 $ 713 $ 59 $ (686 ) $ 11,813 |
Schedule of contract with customer liabilities activity | The following table summarizes current period activity related to contract liabilities from contracts with customers: millions Balance at December 31, 2018 $ — Increase due to contract liabilities acquired with Anadarko 154 Increase due to cash received, excluding revenues recognized in the period 9 Decrease due to revenue recognized (13 ) Balance at September 30, 2019 $ 150 |
Schedule of expected revenue recognition from satisfaction of performance obligations | As a result, the following table represents a small portion of Occidental's expected future consolidated revenues, as future revenue from the sale of most products and services is dependent on future production or variable customer volume and variable commodity prices for that volume: millions Oil and Gas WES Midstream Eliminations Total Remainder of 2019 $ 26 $ 193 $ (127 ) $ 92 2020 103 863 (589 ) 377 2021 103 912 (645 ) 370 2022 7 963 (703 ) 267 2023 7 915 (690 ) 232 Thereafter 60 4,399 (3,768 ) 691 Total $ 306 $ 8,245 $ (6,522 ) $ 2,029 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following: millions September 30, 2019 December 31, 2018 Raw materials $ 67 $ 74 Materials and supplies 916 445 Commodity inventory and finished goods 665 788 1,648 1,307 Revaluation to LIFO (47 ) (47 ) Total $ 1,601 $ 1,260 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | The following interest rate swaps were outstanding at September 30, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 375 December 2019 - 2024 December 2019 2.662 % $ 375 December 2019 - 2029 December 2019 2.802 % $ 375 December 2019 - 2049 December 2019 2.885 % Occidental had the following collars and calls outstanding at September 30, 2019 : Collars and Calls, not designated as hedges 2019 Settlement Three-way collars (Oil MMBL) 8.0 Average price per barrel (NYMEX/Brent oil pricing) Ceiling sold price (call) $ 72.98 Floor purchased price (put) $ 56.72 Floor sold price (put) $ 46.72 2020 Settlement Three-way collars (Oil MMBL) 109.8 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.09 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement Call Options sold (Oil MMBL) 109.5 Average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.09 Occidental had the following outstanding interest rate swaps at September 30, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 125 September 2016 - 2046 October 2019 6.782 % $ 550 September 2016 - 2046 September 2020 6.418 % $ 125 September 2016 - 2046 September 2022 6.835 % $ 100 September 2017 - 2047 September 2020 6.891 % $ 250 September 2017 - 2047 September 2021 6.570 % $ 450 September 2017 - 2047 September 2023 6.445 % |
Summary of net sales related to the outstanding commodity derivative instruments | The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments as of September 30, 2019 , and December 31, 2018 . 2019 2018 Crude Oil Commodity Contracts Volume (MMBL) 36 61 Natural Gas Commodity Contracts Volume (Bcf) (128 ) (142 ) |
Gross and net fair values of outstanding derivatives | The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets. Balance Sheet Classification Fair-Value Measurements Using Netting (a) Total Fair Value millions Level 1 Level 2 Level 3 September 30, 2019 Oil Collars and Calls Other current assets $ — $ 217 $ — $ (4 ) $ 213 Accrued liabilities — 3 — (3 ) — Deferred credits and other liabilities - other — 97 — — 97 Marketing Derivatives Other current assets 838 97 — (861 ) 74 Long-term receivables and other assets, net 70 12 — (70 ) 12 Accrued liabilities 827 45 — (861 ) 11 Deferred credits and other liabilities - other 71 1 — (70 ) 2 Interest Rate Swaps (excluding WES) Other current assets — 14 — — 14 Long-term receivables and other assets, net — 13 — — 13 Accrued liabilities — 882 — — 882 Deferred credits and other liabilities - other — 879 — — 879 WES Interest Rate Swaps Accrued liabilities — 171 — — 171 Warrant Deferred credits and other liabilities - other — 168 — — 168 December 31, 2018 Marketing Derivatives Other current assets $ 2,531 $ 110 $ — $ (2,392 ) $ 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Accrued liabilities 2,357 101 — (2,392 ) 66 Deferred credits and other liabilities - other 6 2 — (6 ) 2 (a) |
Schedule of Gains and Losses on Derivatives | Gains and Losses on Derivatives The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations: Income Statement Classification Three months ended September 30 Nine months ended September 30 millions 2019 2018 2019 2018 Oil Collars and Calls Net sales $ 75 $ — $ 75 $ — Marketing Derivatives Net sales 91 36 (119 ) 8 Interest Rate Swaps (Excluding WES) Losses on interest rate swaps and warrants, net (45 ) — (45 ) — Interest Rate Swaps (WES) Losses on interest rate swaps and warrants, net (8 ) — (8 ) — Warrants Gains on interest rate swaps and warrants, net 20 — 20 — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 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 embedded derivatives that are measured on a recurring basis: millions Fair-Value Measurements Using Embedded derivatives Level 1 Level 2 Level 3 Netting and Total Fair As of September 30, 2019 Accrued liabilities $ — $ 54 $ — $ — $ 54 Deferred credits and other liabilities - other — 73 — — 73 As of December 31, 2018 Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other — 116 — — 116 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Long-term debt consisted of the following: millions Balance at September 30, 2019 Occidental 4.850% senior notes due 2021 $ 677 2.600% senior notes due 2021 1,500 4.100% senior notes due 2021 1,249 Variable rate bonds due 2021 (3.137% as of September 30, 2019) 500 Variable rate bonds due 2021 (3.437% as of September 30, 2019) 500 2-year variable rate Term Loan due 2021 (3.417% as of September 30, 2019) 3,966 2.700% senior notes due 2022 2,000 3.125% senior notes due 2022 814 2.600% senior notes due 2022 400 Variable rate bonds due 2022 (3.637% as of September 30, 2019) 1,500 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 2.900% senior notes due 2024 3,000 6.950% senior notes due 2024 650 3.450% senior notes due 2024 248 3.500% senior notes due 2025 750 5.550% senior notes due 2026 1,100 3.200% senior notes due 2026 1,000 3.400% senior notes due 2026 1,150 7.500% debentures due 2026 112 3.000% senior notes due 2027 750 7.125% debentures due 2027 150 7.000% debentures due 2027 48 6.625% debentures due 2028 14 7.150% debentures due 2028 235 7.200% senior debentures due 2028 82 7.200% debentures due 2029 135 7.950% debentures due 2029 116 8.450% senior debentures due 2029 116 3.500 senior notes due 2029 1,500 Variable rate bonds due 2030 (1.785% as of September 30, 2019) 68 7.500% senior notes due 2031 900 7.875% senior notes due 2031 500 6.450% senior notes due 2036 1,750 Zero Coupon senior notes due 2036 2,271 4.300% senior notes due 2039 750 7.950% senior notes due 2039 325 6.200% senior notes due 2040 750 4.500% senior notes due 2044 625 4.625% senior notes due 2045 750 6.600% senior notes due 2046 1,100 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 4.400% senior notes due 2049 750 7.730% debentures due 2096 60 7.500% debentures due 2096 78 7.250% debentures due 2096 49 Total borrowings at face value (a) 39,151 Adjustments to book value: Unamortized premium, net 859 Debt issuance costs (133 ) Long-term finance leases 69 Long-term Debt, net - Occidental $ 39,946 (a) Total borrowings at face value also includes a $310 thousand 7.25% senior note due 2025 millions Balance at September 30, 2019 WES 5.375% senior notes due 2021 $ 500 4.000% senior notes due 2022 670 3.950% senior notes due 2025 500 4.650% senior notes due 2026 500 4.500% senior notes due 2028 400 4.750% senior notes due 2028 400 5.450% senior notes due 2044 600 5.300% senior notes due 2048 700 5.500% senior notes due 2048 350 WES Term Loan Facility (3.420% as of September 30, 2019) 3,000 WES revolving credit facility (3.340% as of September 30,2019) 160 Total borrowings at face value $ 7,780 Adjustments to book value: Unamortized discount net (135 ) Debt issuance costs (8 ) Long-term Debt, net - WES $ 7,637 Occidental Consolidated Total borrowings at face value $ 46,931 Adjustments to book value: Unamortized premium, net 724 Debt issuance costs (141 ) Long-term finance leases 69 Total Occidental Consolidated Long-term Debt $ 47,583 millions Balance at December 31, 2018 Occidental 9.250% senior debentures due 2019 $ 116 4.100% senior notes due 2021 1,249 3.125% senior notes due 2022 813 2.600% senior notes due 2022 400 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 3.500% senior notes due 2025 750 3.400% senior notes due 2026 1,150 3.000% senior notes due 2027 750 7.200% senior debentures due 2028 82 8.450% senior debentures due 2029 116 4.625% senior notes due 2045 750 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 Variable rate bonds due 2030 (1.9% as of December 31, 2018) 68 10,407 Adjustments to book value: Unamortized discount, net (36 ) Debt issuance costs (54 ) Current maturities (116 ) Total Occidental Consolidated Long-term Debt $ 10,201 |
Lease Commitments (Tables)
Lease Commitments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Schedule of Operating Lease Maturities | The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date: millions Operating Leases Finance Leases Total Remainder of 2019 $ 90 $ 7 $ 97 2020 172 25 197 2021 64 15 79 2022 42 12 54 2023 28 7 35 Thereafter 136 42 178 Total lease payments 532 108 640 Less: Interest (44 ) (22 ) (66 ) Total lease liabilities $ 488 $ 86 $ 574 At September 30, 2019 , Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2019 $ 119 $ 8 $ 127 2020 390 38 428 2021 197 15 212 2022 129 12 141 2023 94 7 101 Thereafter 311 42 353 Total lease payments 1,240 122 1,362 Less: Interest (101 ) (22 ) (123 ) Total lease liabilities $ 1,139 $ 100 $ 1,239 (a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79% . (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92% . |
Schedule of Finance Lease Maturities | At September 30, 2019 , Occidental's leases expire based on the following schedule: Operating Finance millions Leases (a) Leases (b) Total Remainder of 2019 $ 119 $ 8 $ 127 2020 390 38 428 2021 197 15 212 2022 129 12 141 2023 94 7 101 Thereafter 311 42 353 Total lease payments 1,240 122 1,362 Less: Interest (101 ) (22 ) (123 ) Total lease liabilities $ 1,139 $ 100 $ 1,239 (a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79% . (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92% . The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date: millions Operating Leases Finance Leases Total Remainder of 2019 $ 90 $ 7 $ 97 2020 172 25 197 2021 64 15 79 2022 42 12 54 2023 28 7 35 Thereafter 136 42 178 Total lease payments 532 108 640 Less: Interest (44 ) (22 ) (66 ) Total lease liabilities $ 488 $ 86 $ 574 |
Schedule of Lease Related Assets and Liabilities | The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,078 Finance Property, plant and equipment 97 Total lease assets $ 1,175 Liabilities: Current Operating Current operating lease liabilities $ 463 Finance Current maturities of long-term debt 31 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 676 Finance Long-term debt, net - Occidental 69 Total lease liabilities $ 1,239 |
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: Operating millions Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Merger. |
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 and finance lease liabilities. Lease cost classification (a) Three months ended September 30, 2019 Nine months ended September 30, 2019 millions Operating lease costs (b) Property, plant and equipment, net $ 139 $ 321 Cost of sales 133 271 Selling, general and administrative expenses 26 61 Finance lease cost Amortization of ROU assets 5 11 Interest on lease liabilities 1 1 $ 304 $ 665 (a) Amounts reflected are gross before joint-interest recoveries. (b) Includes short-term lease cost of $139 million and $295 million for the three and nine months ended September 30, 2019, respectively, and variable lease cost of $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. millions Nine months ended September 30, 2019 Operating cash flows $ 162 Investing cash flows 83 Financing cash flows 11 |
Environmental Liabilities and_2
Environmental Liabilities and Expenditures (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of current and non-current environmental remediation reserves by categories of sites | The following table presents Occidental’s current and non-current environmental remediation reserves as of September 30, 2019 . The current portion, $ 149 million , is included in accrued liabilities and the non-current portion, $ 905 million , in deferred credits and other liabilities - environmental remediation reserves. 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. Occidental continues to evaluate environmental liabilities assumed through the Merger with an initial determination that it will participate in or monitor remedial activities or proceedings at 42 sites. The underlying reserve balance for the environmental sites assumed through the Merger will change as more site-specific information and clean-up measures becomes available. Number of Sites Reserve Balance millions ) NPL sites 34 $ 452 Third-party sites 66 223 Occidental-operated sites 14 110 Closed or non-operated Occidental sites 29 127 Environmental sites assumed from the Merger 42 142 Total 185 $ 1,054 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of common stock issuances | The following table is a summary of common stock issuances: shares in thousands Common Stock Balance at December 31, 2018 895,116 Issued in the ordinary course 2,394 Issued as part of the Merger (a) 146,131 Balance at September 30, 2019 1,043,641 (a) Includes approximately 2 million shares of common stock issued to a benefits trust for former Anadarko employees treated as treasury stock at September 30, 2019. |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted net income (loss) attributable to common stockholders per share: Three months ended September 30 Nine months ended September 30 millions except per-share amounts 2019 2018 2019 2018 Net income (loss) attributable to common stockholders $ (912 ) $ 1,869 $ 354 $ 3,425 Less: Net income allocated to participating securities — 8 1 16 Net income (loss), net of participating securities $ (912 ) $ 1,861 $ 353 $ 3,409 Weighted average number of basic shares 845.7 761.7 781.1 764.3 Net income (loss) attributable to common stockholders per share—basic $ (1.08 ) $ 2.44 $ 0.45 $ 4.46 Net income (loss), net of participating securities $ (912 ) $ 1,861 $ 353 $ 3,409 Weighted average number of basic shares 845.7 761.7 781.1 764.3 Dilutive securities — 1.6 1.1 1.5 Total diluted weighted-average common shares 845.7 763.3 782.2 765.8 Net income (loss) attributable to common stockholders per share—diluted $ (1.08 ) $ 2.44 $ 0.45 $ 4.45 |
Components of accumulated other comprehensive loss | Accumulated other comprehensive loss consisted of the following after-tax amounts: millions Gains and (losses) on derivatives Pension and postretirement benefit plans Foreign currency translation adjustments Total Balance at December 31, 2018 $ 5 $ (170 ) $ (7 ) $ (172 ) Other comprehensive loss, before reclassifications (130 ) (30 ) — (160 ) Balance at September 30, 2019 $ (125 ) $ (200 ) $ (7 ) $ (332 ) |
Industry Segments (Tables)
Industry Segments (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of industry segments | The following tables present Occidental’s industry segments: millions Oil and Gas Chemical Marketing and Other Midstream WES Midstream (a) Corporate and Eliminations Total Three months ended September 30, 2019 Net sales $ 3,821 $ 1,071 $ 780 $ 383 $ (368 ) $ 5,687 Income (loss) from continuing operations before income taxes $ 221 $ 207 $ 266 $ 134 $ (1,449 ) (b) $ (621 ) Income tax expense — — — — (116 ) (116 ) Income (loss) from continuing operations $ 221 $ 207 $ 266 $ 134 $ (1,565 ) $ (737 ) Three months ended September 30, 2018 Net sales $ 2,889 $ 1,185 $ 1,367 $ — $ (225 ) $ 5,216 Income (loss) from continuing operations before income taxes $ 767 $ 321 $ 1,698 $ — $ (207 ) $ 2,579 Income tax expense — — — — (710 ) (710 ) Income (loss) from continuing operations $ 767 $ 321 $ 1,698 $ — $ (917 ) $ 1,869 Nine months ended September 30, 2019 Net sales $ 8,890 $ 3,128 $ 2,505 $ 383 $ (795 ) $ 14,111 Income (loss) from continuing operations before income taxes $ 1,431 $ 680 $ 876 $ 134 $ (1,945 ) (b) $ 1,176 Income tax expense — — — (647 ) (647 ) Income (loss) from continuing operations $ 1,431 $ 680 $ 876 $ 134 $ (2,592 ) $ 529 Nine months ended September 30, 2018 Net sales $ 7,874 $ 3,515 $ 2,359 $ — $ (686 ) $ 13,062 Income (loss) from continuing operations before income taxes $ 2,297 $ 936 $ 2,127 $ — $ (584 ) $ 4,776 Income tax expense — — — (1,351 ) (1,351 ) Income (loss) from continuing operations $ 2,297 $ 936 $ 2,127 $ — $ (1,935 ) $ 3,425 (a) The WES Midstream segment results represent the period from August 8, 2019, the Merger date, through September 30, 2019. (b) The three months ended September 30, 2019 includes merger-related costs of $924 million and amortized debt financing fees of $65 million . The nine months ended September 30, 2019 includes merger-related costs of $974 million and amortized debt financing fees of $122 million . |
General (Details)
General (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | |||||
May 31, 2008USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) | Sep. 27, 2019USD ($) | Aug. 08, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Noncontrolling Interest [Line Items] | ||||||||
Number of reporting segments | segment | 4 | |||||||
Interest paid | $ 610,000,000 | $ 298,000,000 | ||||||
Cash and cash equivalents | 4,840,000,000 | $ 3,033,000,000 | ||||||
Restricted cash and restricted cash equivalents | 454,000,000 | 0 | ||||||
Cash and restricted cash included in assets held for sale | 16,000,000 | |||||||
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | 55,000,000 | |||||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | 5,365,000,000 | 2,954,000,000 | $ 3,033,000,000 | $ 1,672,000,000 | ||||
Foreign and State | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Income taxes paid | 751,000,000 | 838,000,000 | ||||||
State | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Domestic tax refunds | 2,000,000 | 2,000,000 | ||||||
Federal | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Income taxes paid | $ 0 | $ 0 | ||||||
Western Midstream Operating, LP | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership interest | 2.00% | |||||||
WES Midstream | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership interest | 55.40% | |||||||
WES Midstream | Western Midstream Operating, LP | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership interest | 98.00% | |||||||
Public Ownership | WES Midstream | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Ownership interest | 44.60% | |||||||
Anadarko | Western Midstream Operating, LP | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Note receivable | $ 260,000,000 | |||||||
Notes Payable | Western Midstream Operating, LP | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Debt instrument term | 30 years | |||||||
Fixed annual rate, payable quarterly | 6.50% | |||||||
Mozambique LNG Assets | Discontinued Operations, Disposed of by Sale | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Discontinued operations, consideration receivable | $ 4,200,000,000 | |||||||
Anadarko | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Domestic tax refunds | $ 881,000,000 | |||||||
Anadarko | Africa Assets | Discontinued Operations, Held-for-sale | ||||||||
Noncontrolling Interest [Line Items] | ||||||||
Discontinued operations, consideration receivable | $ 8,800,000,000 |
The Merger - Narrative (Details
The Merger - Narrative (Details) - USD ($) | Aug. 08, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Aug. 07, 2019 | Jun. 04, 2019 | Jun. 03, 2019 |
Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 3,000,000,000 | |||||
Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Cash of acquirer in exchange for acquiree (usd per share) | $ 59 | |||||
Exchange ratio | 0.2934 | |||||
Closing price per share, common stock (usd per share) | $ 46.31 | |||||
Debt issuance, face amount | $ 21,800,000,000 | |||||
Amount from exercise of warrants | 10,000,000,000 | |||||
Long-term debt | 12,829,000,000 | |||||
Goodwill | 6,074,000,000 | |||||
Property, plant and equipment, net | 48,771,000,000 | |||||
Other intangible assets acquired | 2,400,000,000 | |||||
Aggregate amortization expense for intangible assets | 108,000,000 | |||||
Revenues from date of merger | $ 1,500,000,000 | |||||
Net loss attributable to common shareholders from date of merger | $ 400,000,000 | |||||
Anadarko | Customer Contracts | ||||||
Business Acquisition [Line Items] | ||||||
Other intangible assets acquired | $ 2,400,000,000 | |||||
Amortization period | 25 years | |||||
Anadarko | Level 2 | ||||||
Business Acquisition [Line Items] | ||||||
Long-term debt | $ 6,100,000,000 | |||||
Anadarko | Revolving Credit Facility | ||||||
Business Acquisition [Line Items] | ||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000,000 | $ 3,000,000,000 | ||||
Revolving credit facility, additional commitment | 2,000,000,000 | |||||
Anadarko | Senior Notes | ||||||
Business Acquisition [Line Items] | ||||||
Debt issuance, face amount | 13,000,000,000 | |||||
Anadarko | The Term Loans | ||||||
Business Acquisition [Line Items] | ||||||
Debt issuance, face amount | $ 8,800,000,000 | |||||
Series A Preferred Stock | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Shares issued | 100,000 | |||||
Common Stock | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Closing price per share, common stock (usd per share) | $ 46.31 | |||||
Shares issued | 144,000,000 | |||||
Number of securities called by warrant (in shares) | 80,000,000 | |||||
Exercise price of warrant (usd per share) | $ 62.50 | |||||
Proved Properties | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, net | $ 18,200,000,000 | |||||
Unproved Properties | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, net | 26,000,000,000 | |||||
Land, Mineral Interests and Corporate Properties | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Property, plant and equipment, net | $ 5,000,000,000 | |||||
Restricted Stock Awards | Anadarko | ||||||
Business Acquisition [Line Items] | ||||||
Restricted stock issued on date of Merger (in shares) | 1,700,000 | |||||
Weighted-average grant-date fair value (usd per share) | $ 47.13 | |||||
Weighted-average grant-date fair value, remaining life | 1 year 3 months 18 days | |||||
Restricted Stock Awards | Anadarko | Minimum | ||||||
Business Acquisition [Line Items] | ||||||
Restricted shares vesting period | 1 month | |||||
Restricted Stock Awards | Anadarko | Maximum | ||||||
Business Acquisition [Line Items] | ||||||
Restricted shares vesting period | 3 years 6 months |
The Merger - Schedule of Purcha
The Merger - Schedule of Purchase Consideration Paid (Details) - Anadarko $ / shares in Units, $ in Millions | Aug. 08, 2019USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Total shares of common stock eligible for merger consideration (in shares) | 491,600,000 |
Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for merger consideration) (usd per share) | $ / shares | $ 59 |
Cash portion of Merger consideration | $ | $ 29,002 |
Total shares of common stock and shares underlying Anadarko stock-based awards eligible for merger consideration (n shares) | 492,000,000 |
Exchange ratio (per share of Anadarko common stock) | 0.2934 |
Average share price of Occidental common stock at August 8, 2019 (usd per share) | $ / shares | $ 46.31 |
Total Merger consideration | $ | $ 35,686 |
Common Stock | |
Business Acquisition [Line Items] | |
Total shares of Occidental common stock issued | 144,000,000 |
Average share price of Occidental common stock at August 8, 2019 (usd per share) | $ / shares | $ 46.31 |
Stock portion of Merger consideration | $ | $ 6,684 |
The Merger - Preliminary Purcha
The Merger - Preliminary Purchase Price Allocation (Details) - Anadarko $ in Millions | Aug. 08, 2019USD ($) |
Fair value of assets acquired: | |
Current assets | $ 3,590 |
Anadarko's Africa Assets held for sale | 10,746 |
Investments in unconsolidated entities | 2,430 |
Property, plant and equipment, net | 48,771 |
Other assets | 797 |
Intangible assets - WES Midstream | 2,400 |
Amount attributable to assets acquired | 78,209 |
Fair value of liabilities assumed: | |
Current liabilities | 3,677 |
Liabilities of Anadarko's Africa Assets held for sale | 2,329 |
Long-term debt | 12,829 |
Deferred income taxes | 10,040 |
Asset retirement obligations | 2,728 |
Pension and post retirement obligations | 1,125 |
Non-current derivative liabilities | 1,279 |
Other long-term liabilities | 2,308 |
Amount attributable to liabilities assumed | 43,722 |
Net assets | 34,487 |
Less: Fair value of noncontrolling interests in WES Midstream | 4,875 |
Fair value of net assets acquired | 29,612 |
Goodwill - WES Midstream | 6,074 |
Total Merger consideration | 35,686 |
WES Midstream | |
Fair value of assets acquired: | |
Property, plant and equipment, net | 9,475 |
Fair value of liabilities assumed: | |
Long-term debt | $ 7,407 |
The Merger - Pro Forma Informat
The Merger - Pro Forma Information (Details) - Anadarko - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Revenues | $ 7,335 | $ 8,913 | $ 22,419 | $ 23,095 |
Net income (loss) attributable to common stockholders | $ (427) | $ 2,060 | $ 475 | $ 3,405 |
Net income (loss) attributable to common stockholders per share—basic (in usd per share) | $ (0.50) | $ 2.27 | $ 0.51 | $ 3.74 |
Net income (loss) attributable to common stockholders per share—diluted (in usd per share) | $ (0.50) | $ 2.26 | $ 0.50 | $ 3.73 |
The Merger - Merger-Related Cos
The Merger - Merger-Related Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | ||||
Total | $ 924 | $ 0 | $ 974 | $ 0 |
Anadarko | ||||
Business Acquisition [Line Items] | ||||
Employee severance and related cost | 459 | 459 | ||
Licensing fees for critical seismic data | 329 | 354 | ||
Bank, legal and consulting fees | 136 | 161 | ||
Total | $ 924 | $ 974 |
Acquisitions, Dispositions, a_3
Acquisitions, Dispositions, and Other Transactions - Narrative (Details) ft² in Thousands, $ in Millions | Sep. 23, 2019USD ($) | Jul. 31, 2019USD ($)ft² | Sep. 27, 2019USD ($) |
Mozambique LNG Assets | Discontinued Operations, Disposed of by Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Sale for substantially all of assets, liabilities, businesses, and operations | $ 4,200 | ||
Plains All American Pipeline, LP | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from sale of equity method investments | $ 646 | ||
Pre-tax gain on sale of pipeline | $ 111 | ||
Ecopetrol Joint Venture | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Area of development in joint venture | ft² | 97 | ||
Ownership percentage in joint venture | 51.00% | ||
Ecopetrol | Ecopetrol Joint Venture | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Amount due at closing | $ 750 | ||
Carried capital | $ 750 | ||
Minority interest in new venture | 49.00% | ||
Percentage share of capital expenditures | 75.00% | ||
Share of capital expenditures (up to) | $ 750 |
Acquisitions, Dispositions, a_4
Acquisitions, Dispositions, and Other Transactions - Summary of Revenues and Costs from Discontinued Operations (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
COSTS AND OTHER DEDUCTIONS | |||||
Discontinued operations, net of tax | $ (15) | $ 0 | $ (15) | $ 0 | |
Anadarko's Africa Assets | Discontinued Operations, Disposed of by Sale | |||||
REVENUES AND OTHER INCOME | |||||
Net sales | $ 228 | ||||
COSTS AND OTHER DEDUCTIONS | |||||
Oil and gas operating expense | 32 | ||||
Transportation and marketing expense | 4 | ||||
Taxes other than on income | 46 | ||||
Fair value adjustment on assets held for sale | 65 | ||||
Selling, general and administrative | 8 | ||||
Other | 4 | ||||
Costs and other deductions, net | 159 | ||||
Income before income taxes | 69 | ||||
Income tax expense | (84) | ||||
Discontinued operations, net of tax | $ (15) |
Acquisitions, Dispositions, a_5
Acquisitions, Dispositions, and Other Transactions - Summary of Assets Held for Sale (Details) - Anadarko's Africa Assets - Discontinued Operations, Disposed of by Sale $ in Millions | Sep. 30, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash and cash equivalents | $ 16 |
Inventories | 207 |
Other current assets | 110 |
Property, plant and equipment, net | 5,863 |
Operating lease assets | 29 |
Long-term receivables and other assets, net | 220 |
Assets held for sale | 6,445 |
Current maturities of debt - finance leases | 13 |
Current operating lease liabilities | 11 |
Accounts payable | 217 |
Accrued liabilities | 152 |
Long-term debt, net - finance leases | 187 |
Deferred income taxes | 1,281 |
Asset retirement obligations | 142 |
Other | 200 |
Liabilities of assets held for sale | 2,203 |
Net assets held for sale | $ 4,242 |
Revenue Recognition - Impact of
Revenue Recognition - Impact of Adoption (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Trade receivables, net | $ 5,854 | $ 4,893 |
Revenue Recognition - Reconcili
Revenue Recognition - Reconciliation (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||||
Revenue from customers | $ 5,231 | $ 4,257 | $ 12,397 | $ 11,813 |
All other revenue | 456 | 959 | 1,714 | 1,249 |
Net sales | $ 5,687 | $ 5,216 | $ 14,111 | $ 13,062 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregation of revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of revenue | ||||
Revenue from customers | $ 5,687 | $ 5,216 | $ 14,111 | $ 13,062 |
Consolidated | 5,231 | 4,257 | 12,397 | 11,813 |
United States | ||||
Disaggregation of revenue | ||||
Consolidated | 4,420 | 2,928 | 9,480 | 8,501 |
Middle East | ||||
Disaggregation of revenue | ||||
Consolidated | 908 | 1,281 | 2,965 | 3,226 |
Latin America | ||||
Disaggregation of revenue | ||||
Consolidated | 218 | 252 | 657 | 713 |
Other International | ||||
Disaggregation of revenue | ||||
Consolidated | 53 | 21 | 90 | 59 |
Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | (368) | (225) | (795) | (686) |
Consolidated | (368) | (225) | (795) | (686) |
Eliminations | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Middle East | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Eliminations | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 3,746 | 2,889 | 8,815 | 7,874 |
Oil and Gas | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 3,313 | 2,539 | 7,895 | 6,961 |
Oil and Gas | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 240 | 216 | 535 | 531 |
Oil and Gas | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 208 | 132 | 427 | 371 |
Oil and Gas | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | (15) | 2 | (42) | 11 |
Oil and Gas | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 2,737 | 1,515 | 5,584 | 4,397 |
Oil and Gas | United States | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 2,453 | 1,326 | 5,105 | 3,907 |
Oil and Gas | United States | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 177 | 139 | 339 | 339 |
Oil and Gas | United States | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 125 | 47 | 180 | 141 |
Oil and Gas | United States | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | (18) | 3 | (40) | 10 |
Oil and Gas | Middle East | ||||
Disaggregation of revenue | ||||
Revenue from customers | 827 | 1,173 | 2,693 | 2,918 |
Oil and Gas | Middle East | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 683 | 1,016 | 2,266 | 2,507 |
Oil and Gas | Middle East | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 63 | 77 | 196 | 192 |
Oil and Gas | Middle East | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 78 | 80 | 233 | 218 |
Oil and Gas | Middle East | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 3 | 0 | (2) | 1 |
Oil and Gas | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 182 | 201 | 538 | 559 |
Oil and Gas | Latin America | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 177 | 197 | 524 | 547 |
Oil and Gas | Latin America | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Latin America | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 5 | 5 | 14 | 12 |
Oil and Gas | Latin America | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | (1) | 0 | 0 |
Oil and Gas | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Other International | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Oil | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | NGL | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Gas | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Oil and Gas | Eliminations | Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Chemical | ||||
Disaggregation of revenue | ||||
Revenue from customers | 1,061 | 1,184 | 3,109 | 3,507 |
Chemical | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 1,009 | 1,112 | 2,937 | 3,294 |
Chemical | Middle East | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Chemical | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 36 | 51 | 119 | 154 |
Chemical | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 16 | 21 | 53 | 59 |
Chemical | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Marketing and Other Midstream | ||||
Disaggregation of revenue | ||||
Revenue from customers | 409 | 409 | 1,118 | |
Marketing and Other Midstream | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 174 | 256 | 574 | 724 |
Marketing and Other Midstream | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 115 | 311 | 310 | |
Marketing and Other Midstream | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 235 | 38 | 885 | 84 |
Marketing and Other Midstream | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 291 | 301 | 810 | |
Marketing and Other Midstream | United States | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 93 | 148 | 302 | 416 |
Marketing and Other Midstream | United States | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 115 | 274 | 310 | |
Marketing and Other Midstream | United States | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 198 | 38 | 576 | 84 |
Marketing and Other Midstream | Middle East | ||||
Disaggregation of revenue | ||||
Revenue from customers | 81 | 108 | 308 | |
Marketing and Other Midstream | Middle East | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 81 | 108 | 272 | 308 |
Marketing and Other Midstream | Middle East | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | |
Marketing and Other Midstream | Middle East | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 272 | 0 |
Marketing and Other Midstream | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | |
Marketing and Other Midstream | Latin America | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Marketing and Other Midstream | Latin America | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | |
Marketing and Other Midstream | Latin America | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Marketing and Other Midstream | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 37 | 0 | 0 | |
Marketing and Other Midstream | Other International | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Marketing and Other Midstream | Other International | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 37 | 0 | |
Marketing and Other Midstream | Other International | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 37 | 0 | 37 | 0 |
Marketing and Other Midstream | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | |
Marketing and Other Midstream | Eliminations | Gas Processing | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | 0 |
Marketing and Other Midstream | Eliminations | Pipelines | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | 0 | |
Marketing and Other Midstream | Eliminations | Power and Other | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | $ 0 | 0 | $ 0 |
WES Midstream | ||||
Disaggregation of revenue | ||||
Revenue from customers | 383 | 383 | ||
WES Midstream | United States | ||||
Disaggregation of revenue | ||||
Revenue from customers | 383 | 383 | ||
WES Midstream | Middle East | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Latin America | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Other International | ||||
Disaggregation of revenue | ||||
Revenue from customers | 0 | 0 | ||
WES Midstream | Eliminations | ||||
Disaggregation of revenue | ||||
Revenue from customers | $ 0 | $ 0 |
Revenue Recognition - Contract
Revenue Recognition - Contract Liabilities (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2019USD ($) | |
Change in Contract with Customer Liability [Roll Forward] | |
Balance at December 31, 2018 | $ 0 |
Increase due to contract liabilities acquired with Anadarko | 154 |
Increase due to cash received, excluding revenues recognized in the period | 9 |
Decrease due to revenue recognized | (13) |
Balance at September 30, 2019 | $ 150 |
Revenue Recognition - Schedule
Revenue Recognition - Schedule of Expected Future Revenue (Details) $ in Millions | Sep. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 92 |
Remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (127) |
Remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 26 |
Remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 193 |
Remaining performance obligation, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 377 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (589) |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 103 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 863 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 370 |
Remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (645) |
Remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 103 |
Remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 912 |
Remaining performance obligation, period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 267 |
Remaining performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (703) |
Remaining performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 7 |
Remaining performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 963 |
Remaining performance obligation, period | 3 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 232 |
Remaining performance obligation, period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (690) |
Remaining performance obligation, period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 7 |
Remaining performance obligation, period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 915 |
Remaining performance obligation, period | 4 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 691 |
Remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ (3,768) |
Remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 60 |
Remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 4,399 |
Remaining performance obligation, period | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 2,029 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Eliminations | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | (6,522) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | Oil and Gas | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | 306 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | WES Midstream | Operating Segments | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 8,245 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 67 | $ 74 |
Materials and supplies | 916 | 445 |
Commodity inventory and finished goods | 665 | 788 |
Inventories, gross | 1,648 | 1,307 |
Revaluation to LIFO | (47) | (47) |
Total | $ 1,601 | $ 1,260 |
Derivative Instruments - Summar
Derivative Instruments - Summary of Derivative Instruments (Details) - Crude Oil | Sep. 30, 2019ThousandBarrels / d$ / Barrel |
2019 Settlement | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | ThousandBarrels / d | 8,000 |
2019 Settlement | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 72.98 |
Purchase price (dollars per barrel) | 46.72 |
2019 Settlement | Long position | |
Derivative [Line Items] | |
Purchase price (dollars per barrel) | 56.72 |
2020 Settlement | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | ThousandBarrels / d | 109,800 |
2020 Settlement | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.09 |
Purchase price (dollars per barrel) | 45 |
2020 Settlement | Long position | |
Derivative [Line Items] | |
Purchase price (dollars per barrel) | 55 |
2021 Settlement | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | ThousandBarrels / d | 109,500 |
2021 Settlement | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.09 |
Derivative Instruments - Intere
Derivative Instruments - Interest-Rate Derivatives (Details) - USD ($) $ in Millions | 2 Months Ended | |
Sep. 30, 2019 | Oct. 11, 2019 | |
Interest Rate Swap, 6.782% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 125 | |
Weighted-Average Interest Rate | 6.782% | |
Interest Rate Swap, 6.782% | Subsequent Event | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 125 | |
Interest Rate Swap, 6.418% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 550 | |
Weighted-Average Interest Rate | 6.418% | |
Interest Rate Swap, 6.835% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 125 | |
Weighted-Average Interest Rate | 6.835% | |
Interest Rate Swap, 6.891% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 100 | |
Weighted-Average Interest Rate | 6.891% | |
Interest Rate Swap, 6.570% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 250 | |
Weighted-Average Interest Rate | 6.57% | |
Interest Rate Swap, 6.445% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 450 | |
Weighted-Average Interest Rate | 6.445% | |
Interest Rate Swap, 2.662% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 375 | |
Weighted-Average Interest Rate | 2.662% | |
Interest Rate Swap, 2.802% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 375 | |
Weighted-Average Interest Rate | 2.802% | |
Interest Rate Swap, 2.885% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 375 | |
Weighted-Average Interest Rate | 2.885% | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Net cash payments related to settlements and amendments | $ 43 |
Derivative Instruments - Market
Derivative Instruments - Marketing Derivatives and Warrants (Details) $ / shares in Units, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2019 | Sep. 30, 2019Bcf | Sep. 30, 2019MMBbls | Sep. 30, 2019$ / MillionCubicFeet | Sep. 30, 2019$ / Barrel | Dec. 31, 2018Bcf | Dec. 31, 2018MMBbls | Dec. 31, 2018$ / MillionCubicFeet | Dec. 31, 2018$ / Barrel | Aug. 08, 2019USD ($)$ / shares | |
Marketing Derivatives | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Derivative instrument settlement period (within) | 3 months | |||||||||
Marketing Derivatives | Not designated as hedging instruments | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Weighted average sales price (dollars per barrel) | 2.22 | 58.39 | 3.18 | 58.81 | ||||||
Crude oil | Not designated as hedging instruments | Long position | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Outstanding net volumes on derivatives not designated as hedges (mmbls/bcf) | MMBbls | 36 | 61 | ||||||||
Natural gas | Not designated as hedging instruments | Short position | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Outstanding net volumes on derivatives not designated as hedges (mmbls/bcf) | Bcf | 128 | 142 | ||||||||
Warrant | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Initial fair value of warrant | $ | $ 188 | |||||||||
Anadarko | Common Stock | ||||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | ||||||||||
Exercise price of warrant (usd per share) | $ / shares | $ 62.50 |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2019USD ($) | Sep. 30, 2019USD ($)Bcf | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)Bcf | Sep. 30, 2018USD ($) | Dec. 31, 2018Bcf | ||
Derivative [Line Items] | |||||||
Natural gas held in storage (in cubic feet) | Bcf | 5 | 5 | 5 | ||||
Forecast sale of natural gas from storage designated as cash-flow hedges (in cubic feet) | Bcf | 3 | 3 | 4 | ||||
Unrealized loss included in other comprehensive income | [1] | $ (114) | $ (1) | $ (130) | $ (5) | ||
Interest Rate Contract | |||||||
Derivative [Line Items] | |||||||
Unrealized loss included in other comprehensive income | $ 125 | ||||||
Interest Rate Contract | Senior Notes | |||||||
Derivative [Line Items] | |||||||
Debt issuance, face amount | $ 13,000 | ||||||
[1] | Net of tax of $32 million and zero for the three months ended September 30, 2019 , and 2018, and $36 million and $1 million for the nine months ended September 30, 2019 , and 2018, respectively. |
Derivative Instruments - Fair V
Derivative Instruments - Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral paid netted against derivative liabilities | $ 1 | |
Collateral received netted against derivative assets | 45 | |
Collateral deposited with clearinghouses and brokers | 178 | |
Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral deposited with clearinghouses and brokers | $ 36 | |
Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral paid netted against derivative liabilities | 359 | |
Other current assets | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (4) | |
Total net fair value, asset | 213 | |
Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (861) | (2,392) |
Total net fair value, asset | 74 | 249 |
Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 14 | |
Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (70) | (6) |
Total net fair value, asset | 12 | 8 |
Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 13 | |
Accrued liabilities | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (3) | |
Total net fair value, liability | 0 | |
Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (861) | (2,392) |
Total net fair value, liability | 11 | 66 |
Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 882 | |
Accrued liabilities | Interest Rate Swaps | WES Midstream | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 171 | |
Deferred credits and other liabilities - other | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 97 | |
Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | (70) | (6) |
Total net fair value, liability | 2 | 2 |
Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 879 | |
Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | 168 | |
Level 1 | Other current assets | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 1 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 838 | 2,531 |
Level 1 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 1 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 70 | 5 |
Level 1 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 1 | Accrued liabilities | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 1 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 827 | 2,357 |
Level 1 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 1 | Accrued liabilities | Interest Rate Swaps | WES Midstream | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 1 | Deferred credits and other liabilities - other | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 1 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 71 | 6 |
Level 1 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 1 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 2 | Other current assets | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 217 | |
Level 2 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 97 | 110 |
Level 2 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 14 | |
Level 2 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 12 | 9 |
Level 2 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 13 | |
Level 2 | Accrued liabilities | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 3 | |
Level 2 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 45 | 101 |
Level 2 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 882 | |
Level 2 | Accrued liabilities | Interest Rate Swaps | WES Midstream | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 171 | |
Level 2 | Deferred credits and other liabilities - other | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 97 | |
Level 2 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 1 | 2 |
Level 2 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 879 | |
Level 2 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 168 | |
Level 3 | Other current assets | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 3 | Other current assets | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 3 | Other current assets | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 3 | Long-term receivables and other assets, net | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Level 3 | Long-term receivables and other assets, net | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Level 3 | Accrued liabilities | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 3 | Accrued liabilities | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Level 3 | Accrued liabilities | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 3 | Accrued liabilities | Interest Rate Swaps | WES Midstream | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 3 | Deferred credits and other liabilities - other | Oil Collars and Calls | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 3 | Deferred credits and other liabilities - other | Marketing Derivatives | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | $ 0 |
Level 3 | Deferred credits and other liabilities - other | Interest Rate Swaps | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Level 3 | Deferred credits and other liabilities - other | Warrant | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 0 |
Derivative Instruments - Gains
Derivative Instruments - Gains and Losses on Derivatives (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | $ (33) | $ 0 | $ (33) | $ 0 |
Oil Collars and Calls | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | 75 | 0 | 75 | 0 |
Marketing Derivatives | Net sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | 91 | 36 | (119) | 8 |
Interest Rate Swaps | Losses on interest rate swaps and warrants, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | (45) | 0 | (45) | 0 |
Interest Rate Swaps | Losses on interest rate swaps and warrants, net | WES Midstream | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | (8) | 0 | (8) | 0 |
Warrant | Losses on interest rate swaps and warrants, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) on derivatives | $ 20 | $ 0 | $ 20 | $ 0 |
Derivative Instruments - Credi
Derivative Instruments - Credit Risk (Details) - Not designated as hedging instruments - USD ($) $ in Millions | Sep. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed (net of collateral) | $ 1,600 | $ 68 |
Amount of collateral posted related to derivative instruments with credit-risk-related contingent features | $ 300 | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Oil and Gas segment | |||
Liabilities: | |||
Impairment and related charges | $ 285 | $ 285 | |
ISSD | |||
Liabilities: | |||
Impairment and related charges | 40 | 41 | |
Qatar ISND and ISSD | |||
Liabilities: | |||
Impairment and related charges | $ 416 | ||
Total Fair Value | |||
Liabilities: | |||
Estimated fair value of debt | 47,800 | 47,800 | 10,300 |
Total Fair Value | WES Midstream | |||
Liabilities: | |||
Estimated fair value of debt | 7,600 | 7,600 | |
Level 2 | Total Fair Value | |||
Liabilities: | |||
Estimated fair value of debt | 12,500 | 12,500 | |
Recurring | Accrued liabilities | |||
Liabilities: | |||
Netting and Collateral | 0 | 0 | 0 |
Recurring | Accrued liabilities | Total Fair Value | |||
Liabilities: | |||
Embedded derivatives | 54 | 54 | 66 |
Recurring | Accrued liabilities | Level 1 | |||
Liabilities: | |||
Embedded derivatives | 0 | 0 | 0 |
Recurring | Accrued liabilities | Level 2 | |||
Liabilities: | |||
Embedded derivatives | 54 | 54 | 66 |
Recurring | Accrued liabilities | Level 3 | |||
Liabilities: | |||
Embedded derivatives | 0 | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Netting and Collateral | 0 | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | Total Fair Value | |||
Liabilities: | |||
Embedded derivatives | 73 | 73 | 116 |
Recurring | Deferred credits and other liabilities - other | Level 1 | |||
Liabilities: | |||
Embedded derivatives | 0 | 0 | 0 |
Recurring | Deferred credits and other liabilities - other | Level 2 | |||
Liabilities: | |||
Embedded derivatives | 73 | 73 | 116 |
Recurring | Deferred credits and other liabilities - other | Level 3 | |||
Liabilities: | |||
Embedded derivatives | $ 0 | $ 0 | $ 0 |
Non recurring | Measurement Input, Discount Rate | |||
Liabilities: | |||
Risk adjusted discount rate | 0.10 |
Long-Term Debt - Schedule of Lo
Long-Term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Aug. 08, 2019 | Dec. 31, 2018 | |
Long-term Debt | |||
Long-term debt, gross | $ 46,931,000 | $ 10,407,000 | |
Unamortized premium, net | 724,000 | (36,000) | |
Debt issuance costs | (141,000) | (54,000) | |
Long-term finance leases | 69,000 | ||
Current maturities | (31,000) | (116,000) | |
LONG-TERM DEBT, NET | $ 47,583,000 | 10,201,000 | |
Senior Notes | 4.100% senior notes due 2021 | |||
Long-term Debt | |||
Interest rate | 4.10% | ||
Long-term debt, gross | 1,249,000 | ||
Senior Notes | 3.125% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 3.125% | ||
Long-term debt, gross | 813,000 | ||
Senior Notes | 2.600% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 2.60% | ||
Long-term debt, gross | 400,000 | ||
Senior Notes | 2.700% senior notes due 2023 | |||
Long-term Debt | |||
Interest rate | 2.70% | ||
Long-term debt, gross | 1,191,000 | ||
Senior Notes | 3.500% senior notes due 2025 | |||
Long-term Debt | |||
Interest rate | 3.50% | ||
Long-term debt, gross | 750,000 | ||
Senior Notes | 3.400% senior notes due 2026 | |||
Long-term Debt | |||
Interest rate | 3.40% | ||
Long-term debt, gross | 1,150,000 | ||
Senior Notes | 3.000% senior notes due 2027 | |||
Long-term Debt | |||
Interest rate | 3.00% | ||
Long-term debt, gross | 750,000 | ||
Senior Notes | 7.200% senior debentures due 2028 | |||
Long-term Debt | |||
Interest rate | 7.20% | ||
Long-term debt, gross | 82,000 | ||
Senior Notes | 8.450% senior debentures due 2029 | |||
Long-term Debt | |||
Interest rate | 8.45% | ||
Long-term debt, gross | 116,000 | ||
Senior Notes | Zero Coupon senior notes due 2036 | |||
Long-term Debt | |||
Interest rate | 5.24% | ||
Senior Notes | 4.625% senior notes due 2045 | |||
Long-term Debt | |||
Interest rate | 4.625% | ||
Long-term debt, gross | 750,000 | ||
Senior Notes | 4.400% senior notes due 2046 | |||
Long-term Debt | |||
Interest rate | 4.40% | ||
Long-term debt, gross | 1,200,000 | ||
Senior Notes | 4.100% senior notes due 2047 | |||
Long-term Debt | |||
Interest rate | 4.10% | ||
Long-term debt, gross | 750,000 | ||
Senior Notes | 4.200% senior notes due 2048 | |||
Long-term Debt | |||
Interest rate | 4.20% | ||
Long-term debt, gross | 1,000,000 | ||
Senior Notes | 9.250% senior debentures due 2019 | |||
Long-term Debt | |||
Interest rate | 9.25% | ||
Long-term debt, gross | $ 116,000 | ||
Variable Rate Bonds | Variable rate bonds due 2030 (1.9% as of December 31, 2018) | |||
Long-term Debt | |||
Effective interest rate | 1.90% | ||
Long-term debt, gross | $ 68,000 | ||
Medium-term Notes | 8.750% medium-term notes due 2023 | |||
Long-term Debt | |||
Interest rate | 8.75% | ||
Long-term debt, gross | 22,000 | ||
Occidental | |||
Long-term Debt | |||
Long-term debt, gross | $ 39,151,000 | ||
Unamortized premium, net | 859,000 | ||
Debt issuance costs | (133,000) | ||
Long-term finance leases | 69,000 | ||
Long-term debt | 39,946,000 | ||
LONG-TERM DEBT, NET | $ 39,946,000 | 10,201,000 | |
Occidental | Senior Notes | 4.850% senior notes due 2021 | |||
Long-term Debt | |||
Interest rate | 4.85% | ||
Long-term debt, gross | $ 677,000 | ||
Occidental | Senior Notes | 2.600% senior notes due 2021 | |||
Long-term Debt | |||
Interest rate | 2.60% | ||
Long-term debt, gross | $ 1,500,000 | ||
Occidental | Senior Notes | 4.100% senior notes due 2021 | |||
Long-term Debt | |||
Interest rate | 4.10% | ||
Long-term debt, gross | $ 1,249,000 | ||
Occidental | Senior Notes | 2.700% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 2.70% | ||
Long-term debt, gross | $ 2,000,000 | ||
Occidental | Senior Notes | 3.125% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 3.125% | ||
Long-term debt, gross | $ 814,000 | ||
Occidental | Senior Notes | 2.600% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 2.60% | ||
Long-term debt, gross | $ 400,000 | ||
Occidental | Senior Notes | 2.700% senior notes due 2023 | |||
Long-term Debt | |||
Interest rate | 2.70% | ||
Long-term debt, gross | $ 1,191,000 | ||
Occidental | Senior Notes | 2.900% senior notes due 2024 | |||
Long-term Debt | |||
Interest rate | 2.90% | ||
Long-term debt, gross | $ 3,000,000 | ||
Occidental | Senior Notes | 6.950% senior notes due 2024 | |||
Long-term Debt | |||
Interest rate | 6.95% | ||
Long-term debt, gross | $ 650,000 | ||
Occidental | Senior Notes | 3.450% senior notes due 2024 | |||
Long-term Debt | |||
Interest rate | 3.45% | ||
Long-term debt, gross | $ 248,000 | ||
Occidental | Senior Notes | 3.500% senior notes due 2025 | |||
Long-term Debt | |||
Interest rate | 3.50% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 5.550% senior notes due 2026 | |||
Long-term Debt | |||
Interest rate | 5.55% | ||
Long-term debt, gross | $ 1,100,000 | ||
Occidental | Senior Notes | 3.200% senior notes due 2026 | |||
Long-term Debt | |||
Interest rate | 3.20% | ||
Long-term debt, gross | $ 1,000,000 | ||
Occidental | Senior Notes | 3.400% senior notes due 2026 | |||
Long-term Debt | |||
Interest rate | 3.40% | ||
Long-term debt, gross | $ 1,150,000 | ||
Occidental | Senior Notes | 7.500% debentures due 2026 | |||
Long-term Debt | |||
Interest rate | 7.50% | ||
Occidental | Senior Notes | 3.000% senior notes due 2027 | |||
Long-term Debt | |||
Interest rate | 3.00% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 7.125% debentures due 2027 | |||
Long-term Debt | |||
Interest rate | 7.125% | ||
Occidental | Senior Notes | 7.000% debentures due 2027 | |||
Long-term Debt | |||
Interest rate | 7.00% | ||
Occidental | Senior Notes | 6.625% debentures due 2028 | |||
Long-term Debt | |||
Interest rate | 6.625% | ||
Occidental | Senior Notes | 7.150% debentures due 2028 | |||
Long-term Debt | |||
Interest rate | 7.15% | ||
Occidental | Senior Notes | 7.200% senior debentures due 2028 | |||
Long-term Debt | |||
Interest rate | 7.20% | ||
Long-term debt, gross | $ 82,000 | ||
Occidental | Senior Notes | 7.200% debentures due 2029 | |||
Long-term Debt | |||
Interest rate | 7.20% | ||
Occidental | Senior Notes | 7.950% debentures due 2029 | |||
Long-term Debt | |||
Interest rate | 7.95% | ||
Occidental | Senior Notes | 8.450% senior debentures due 2029 | |||
Long-term Debt | |||
Interest rate | 8.45% | ||
Long-term debt, gross | $ 116,000 | ||
Occidental | Senior Notes | 3.500 senior notes due 2029 | |||
Long-term Debt | |||
Interest rate | 3.50% | ||
Long-term debt, gross | $ 1,500,000 | ||
Occidental | Senior Notes | 7.500% senior notes due 2031 | |||
Long-term Debt | |||
Interest rate | 7.50% | ||
Long-term debt, gross | $ 900,000 | ||
Occidental | Senior Notes | 7.875% senior notes due 2031 | |||
Long-term Debt | |||
Interest rate | 7.875% | ||
Long-term debt, gross | $ 500,000 | ||
Occidental | Senior Notes | 6.450% senior notes due 2036 | |||
Long-term Debt | |||
Interest rate | 6.45% | ||
Long-term debt, gross | $ 1,750,000 | ||
Occidental | Senior Notes | Zero Coupon senior notes due 2036 | |||
Long-term Debt | |||
Long-term debt, gross | $ 2,271,000 | ||
Occidental | Senior Notes | 4.300% senior notes due 2039 | |||
Long-term Debt | |||
Interest rate | 4.30% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 7.950% senior notes due 2039 | |||
Long-term Debt | |||
Interest rate | 7.95% | ||
Long-term debt, gross | $ 325,000 | ||
Occidental | Senior Notes | 6.200% senior notes due 2040 | |||
Long-term Debt | |||
Interest rate | 6.20% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 4.500% senior notes due 2044 | |||
Long-term Debt | |||
Interest rate | 4.50% | ||
Long-term debt, gross | $ 625,000 | ||
Occidental | Senior Notes | 4.625% senior notes due 2045 | |||
Long-term Debt | |||
Interest rate | 4.625% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 6.600% senior notes due 2046 | |||
Long-term Debt | |||
Interest rate | 6.60% | ||
Long-term debt, gross | $ 1,100,000 | ||
Occidental | Senior Notes | 4.400% senior notes due 2046 | |||
Long-term Debt | |||
Interest rate | 4.40% | ||
Long-term debt, gross | $ 1,200,000 | ||
Occidental | Senior Notes | 4.100% senior notes due 2047 | |||
Long-term Debt | |||
Interest rate | 4.10% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Senior Notes | 4.200% senior notes due 2048 | |||
Long-term Debt | |||
Interest rate | 4.20% | ||
Long-term debt, gross | $ 1,000,000 | ||
Occidental | Senior Notes | 4.400% senior notes due 2049 | |||
Long-term Debt | |||
Interest rate | 4.40% | ||
Long-term debt, gross | $ 750,000 | ||
Occidental | Variable Rate Bonds | Variable rate bonds due 2021 | |||
Long-term Debt | |||
Effective interest rate | 3.137% | ||
Long-term debt, gross | $ 500,000 | ||
Occidental | Variable Rate Bonds | Variable rate bonds due 2021 | |||
Long-term Debt | |||
Effective interest rate | 3.437% | ||
Long-term debt, gross | $ 500,000 | ||
Occidental | Variable Rate Bonds | 2-year variable rate Term Loan due 2021 | |||
Long-term Debt | |||
Effective interest rate | 3.417% | ||
Occidental | Variable Rate Bonds | Variable rate bonds due 2022 | |||
Long-term Debt | |||
Effective interest rate | 3.637% | ||
Long-term debt, gross | $ 1,500,000 | ||
Occidental | Variable Rate Bonds | Variable rate bonds due 2030 | |||
Long-term Debt | |||
Effective interest rate | 1.785% | ||
Long-term debt, gross | $ 68,000 | ||
Occidental | Medium-term Notes | 8.750% medium-term notes due 2023 | |||
Long-term Debt | |||
Interest rate | 8.75% | ||
Long-term debt, gross | $ 22,000 | ||
Occidental | Debentures | 7.500% debentures due 2026 | |||
Long-term Debt | |||
Long-term debt, gross | 112,000 | ||
Occidental | Debentures | 7.125% debentures due 2027 | |||
Long-term Debt | |||
Long-term debt, gross | 150,000 | ||
Occidental | Debentures | 7.000% debentures due 2027 | |||
Long-term Debt | |||
Long-term debt, gross | 48,000 | ||
Occidental | Debentures | 6.625% debentures due 2028 | |||
Long-term Debt | |||
Long-term debt, gross | 14,000 | ||
Occidental | Debentures | 7.150% debentures due 2028 | |||
Long-term Debt | |||
Long-term debt, gross | 235,000 | ||
Occidental | Debentures | 7.200% debentures due 2029 | |||
Long-term Debt | |||
Long-term debt, gross | 135,000 | ||
Occidental | Debentures | 7.950% debentures due 2029 | |||
Long-term Debt | |||
Long-term debt, gross | $ 116,000 | ||
Occidental | Debentures | 7.730% debentures due 2096 | |||
Long-term Debt | |||
Interest rate | 7.73% | ||
Long-term debt, gross | $ 60,000 | ||
Occidental | Debentures | 7.500% debentures due 2096 | |||
Long-term Debt | |||
Interest rate | 7.50% | ||
Long-term debt, gross | $ 78,000 | ||
Occidental | Debentures | 7.250% debentures due 2096 | |||
Long-term Debt | |||
Interest rate | 7.25% | ||
Long-term debt, gross | $ 49,000 | ||
Occidental | Debentures | 7.250% senior notes due 2025 | |||
Long-term Debt | |||
Interest rate | 7.25% | ||
Long-term debt, gross | $ 310 | ||
Occidental | The Term Loans | 2-year variable rate Term Loan due 2021 | |||
Long-term Debt | |||
Effective interest rate | 3.417% | ||
Debt instrument term | 2 years | ||
Long-term debt, gross | $ 3,966,000 | ||
WES | |||
Long-term Debt | |||
Long-term debt, gross | 7,780,000 | ||
Unamortized discount net | (135,000) | ||
Debt issuance costs | (8,000) | ||
Long-term debt | $ 4,600,000 | ||
LONG-TERM DEBT, NET | 7,637,000 | $ 0 | |
WES | Senior Notes | |||
Long-term Debt | |||
Long-term debt | $ 4,600,000 | ||
WES | Senior Notes | 5.375% senior notes due 2021 | |||
Long-term Debt | |||
Interest rate | 5.375% | ||
Long-term debt, gross | $ 500,000 | ||
WES | Senior Notes | 4.000% senior notes due 2022 | |||
Long-term Debt | |||
Interest rate | 4.00% | ||
Long-term debt, gross | $ 670,000 | ||
WES | Senior Notes | 3.950% senior notes due 2025 | |||
Long-term Debt | |||
Interest rate | 3.95% | ||
Long-term debt, gross | $ 500,000 | ||
WES | Senior Notes | 4.650% senior notes due 2026 | |||
Long-term Debt | |||
Interest rate | 4.65% | ||
Long-term debt, gross | $ 500,000 | ||
WES | Senior Notes | 4.500% senior notes due 2028 | |||
Long-term Debt | |||
Interest rate | 4.50% | ||
Long-term debt, gross | $ 400,000 | ||
WES | Senior Notes | 4.750% senior notes due 2028 | |||
Long-term Debt | |||
Interest rate | 4.75% | ||
Long-term debt, gross | $ 400,000 | ||
WES | Senior Notes | 5.450% senior notes due 2044 | |||
Long-term Debt | |||
Interest rate | 5.45% | ||
Long-term debt, gross | $ 600,000 | ||
WES | Senior Notes | 5.300% senior notes due 2048 | |||
Long-term Debt | |||
Interest rate | 5.30% | ||
Long-term debt, gross | $ 700,000 | ||
WES | Senior Notes | 5.500% senior notes due 2048 | |||
Long-term Debt | |||
Interest rate | 5.50% | ||
Long-term debt, gross | $ 350,000 | ||
WES | The Term Loans | |||
Long-term Debt | |||
Long-term debt | $ 3,000,000 | ||
WES | The Term Loans | Term Loan Facility | |||
Long-term Debt | |||
Effective interest rate | 3.42% | ||
Long-term debt, gross | $ 3,000,000 | ||
WES | Line of Credit | Revolving Credit Facility | |||
Long-term Debt | |||
Effective interest rate | 3.34% | ||
Long-term debt, gross | $ 160,000 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) - USD ($) | Aug. 08, 2019 | Sep. 30, 2019 | Aug. 07, 2019 | Jun. 04, 2019 | Jun. 03, 2019 |
Revolving Credit Facility | |||||
Long-term Debt | |||||
Revolving credit facility, maximum borrowing capacity | $ 3,000,000,000 | ||||
Anadarko | |||||
Long-term Debt | |||||
Debt issuance, face amount | $ 21,800,000,000 | ||||
Term loan balance | 11,900,000,000 | ||||
Anadarko | Revolving Credit Facility | |||||
Long-term Debt | |||||
Revolving credit facility balance | 2,900,000,000 | ||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000,000 | $ 3,000,000,000 | |||
Senior Notes | Anadarko | |||||
Long-term Debt | |||||
Debt issuance, face amount | 13,000,000,000 | ||||
Term loan balance | 11,900,000,000 | ||||
Percentage of Anadarko debt tendered and exchanged | 97.00% | ||||
Amount tendered and exchanged | $ 11,500,000,000 | ||||
Amount not tendered and exchanged | 400,000,000 | ||||
Senior Notes | Zero Coupon senior notes due 2036 | |||||
Long-term Debt | |||||
Debt issuance, face amount | $ 2,300,000,000 | ||||
Interest rate | 5.24% | ||||
Repurchase amount if put in whole | $ 992,000,000 | ||||
Line of Credit | 364-Day Senior Unsecured Term Loan Facility | Anadarko | |||||
Long-term Debt | |||||
Debt issuance, face amount | $ 4,400,000,000 | ||||
Debt instrument term | 364 days | ||||
Line of Credit | Term Loan Facility | Anadarko | |||||
Long-term Debt | |||||
Debt issuance, face amount | $ 4,400,000,000 | ||||
Debt instrument term | 2 years | ||||
The Term Loans | |||||
Long-term Debt | |||||
Pay down of term loans | 4,800,000,000 | ||||
The Term Loans | Anadarko | |||||
Long-term Debt | |||||
Debt issuance, face amount | $ 8,800,000,000 | ||||
WES | |||||
Long-term Debt | |||||
Term loan balance | $ 4,600,000,000 | ||||
WES | Senior Notes | |||||
Long-term Debt | |||||
Term loan balance | 4,600,000,000 | ||||
WES | Line of Credit | |||||
Long-term Debt | |||||
Revolving credit facility balance | 160,000,000 | ||||
WES | Line of Credit | Revolving Credit Facility | |||||
Long-term Debt | |||||
Revolving credit facility, maximum borrowing capacity | 2,000,000,000 | ||||
WES | The Term Loans | |||||
Long-term Debt | |||||
Term loan balance | 3,000,000,000 | ||||
Exclusion for debt offering proceeds | 1,000,000,000 | ||||
Proceeds from Issuance of Secured Debt | $ 1,000,000,000 |
Lease Commitments - Narrative (
Lease Commitments - Narrative (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Aug. 08, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 1,078 | ||
Total lease liabilities | 1,139 | $ 488 | |
Finance lease agreement | 100 | 86 | |
Offshore and onshore drilling rigs | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 186 | ||
Compressors | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 174 | ||
Other field equipment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 97 | ||
Oil and gas exploration and development equipment | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 2 years | ||
Oil and gas exploration and development equipment | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 7 years | ||
Pipelines, rail cars, storage facilities, easements and real estate | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 682 | ||
Real estate leases | Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 1 year | ||
Real estate leases | Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 16 years | ||
Oil and gas exploration and development equipment, real estate offices, compressors, and field equipment | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease agreement | $ 100 | ||
Anadarko | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 498 | ||
Total lease liabilities | $ 574 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 772 | ||
Total lease liabilities | $ 772 |
Lease Commitments - Schedule of
Lease Commitments - Schedule of Operating and Finance Lease Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2019 | Aug. 08, 2019 |
Operating Leases | ||
Remainder of 2019 | $ 119 | $ 90 |
2020 | 390 | 172 |
2021 | 197 | 64 |
2022 | 129 | 42 |
2023 | 94 | 28 |
Thereafter | 311 | 136 |
Total lease payments | 1,240 | 532 |
Less: Interest | (101) | (44) |
Total lease liabilities | 1,139 | 488 |
Finance Leases | ||
Remainder of 2019 | 8 | 7 |
2020 | 38 | 25 |
2021 | 15 | 15 |
2022 | 12 | 12 |
2023 | 7 | 7 |
Thereafter | 42 | 42 |
Total lease payments | 122 | 108 |
Less: Interest | (22) | (22) |
Total lease liabilities | 100 | 86 |
Total | ||
Remainder of 2019 | 127 | 97 |
2020 | 428 | 197 |
2021 | 212 | 79 |
2022 | 141 | 54 |
2023 | 101 | 35 |
Thereafter | 353 | 178 |
Total lease payments | 1,362 | 640 |
Less: Interest | (123) | (66) |
Total lease liabilities | $ 1,239 | $ 574 |
Weighted average lease term, operating lease | 5 years 3 months 18 days | |
Weighted average discount rate, operating lease | 2.79% | |
Weighted average lease term, finance lease | 6 years 4 months 24 days | |
Weighted average discount rate, finance lease | 4.92% |
Lease Commitments - Lease Asset
Lease Commitments - Lease Assets and Liabilities (Details) $ in Millions | Sep. 30, 2019USD ($) |
Assets: | |
Operating lease assets | $ 1,078 |
Finance lease assets | 97 |
Total leased assets | 1,175 |
Liabilities: | |
Operating lease liabilities, current | 463 |
Finance lease liabilities, current | 31 |
Operating lease liabilities, non-current | 676 |
Finance lease liabilities, non-current | 69 |
Total lease liabilities | $ 1,239 |
Lease Commitments - Schedule _2
Lease Commitments - 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(a) | $ 704 |
Lease Commitments - Other Infor
Lease Commitments - Other Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Sep. 30, 2019 | Sep. 30, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 139 | $ 321 |
Amortization of ROU assets | 5 | 11 |
Interest on lease liabilities | 1 | 1 |
Lease, Cost | 304 | 665 |
Short-term lease cost | 139 | 295 |
Variable lease cost | 55 | 115 |
Operating cash flows | 162 | |
Investing cash flows | 83 | |
Financing cash flows | 11 | |
Cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 133 | 271 |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 26 | $ 61 |
Lawsuits, Claims, Commitments_2
Lawsuits, Claims, Commitments and Contingencies (Details) $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2017 | Dec. 31, 2016USD ($) | Aug. 08, 2019group | May 30, 2019USD ($) | |
Lawsuits, commitments and contingencies | ||||||
Accumulated Occidental common stock | $ 1,600 | |||||
Number of separate federal consolidated groups | group | 2 | |||||
Potential cash tax | $ 917 | |||||
Federal | ||||||
Lawsuits, commitments and contingencies | ||||||
Potential cash tax | 898 | |||||
State | ||||||
Lawsuits, commitments and contingencies | ||||||
Tentative cash tax refund | 2 | $ 2 | ||||
Potential cash tax | 19 | |||||
Anadarko | ||||||
Lawsuits, commitments and contingencies | ||||||
Tentative cash tax refund | $ 881 | |||||
Potential accrued interest | $ 171 | |||||
Arbitration filed by Andes Petroleum Ecuador Ltd | ||||||
Lawsuits, commitments and contingencies | ||||||
Proceeds from settlement | $ 1,000 | |||||
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% |
Lawsuits, Claims, Commitments_3
Lawsuits, Claims, Commitments and Contingencies - Purchase Obligations (Details) - Anadarko $ in Millions | Sep. 30, 2019USD ($) |
Purchase obligations | |
Total purchase obligations | $ 5,200 |
Purchase obligations, due in reminder fiscal year 2019 | 315 |
Purchase obligations, due in fiscal year 2020 | 1,000 |
Purchase obligations, due in fiscal year 2021 | 907 |
Purchase obligations, due in fiscal year 2022 | 735 |
Purchase obligations, due in fiscal year 2023 | 589 |
Purchase obligations, due in fiscal year 2024 and thereafter | $ 1,600 |
Purchase obligation, discount rate | 3.88% |
Environmental Liabilities and_3
Environmental Liabilities and Expenditures (Details) $ in Millions | 1 Months Ended | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Mar. 31, 2016mi | Sep. 30, 2016USD ($) | Jun. 30, 2019USD ($)category | Sep. 30, 2019USD ($)site | Dec. 31, 2018USD ($) | |
Environmental remediation reserves | |||||
Number of Sites | site | 185 | ||||
Environmental remediation reserves, current, included in accrued liabilities | $ 149 | ||||
Environmental remediation reserves, non-current, included in deferred credits and other liabilities - other | $ 905 | $ 905 | $ 762 | ||
Number of non-NPL sites categories | category | 3 | ||||
Reserve Balance | $ 1,054 | ||||
Environmental reserves, exceeding $ ten million, threshold value | $ 10 | ||||
Environmental reserves, exceeding $ ten million, number of sites | site | 19 | ||||
Environmental reserves, range between zero to $ one million site category, number of sites | site | 112 | ||||
Expected expend funds of environmental reserves (as a percent) | 40.00% | ||||
Minimum period of expending second half of environmental reserves | 10 years | ||||
Environmental remediation additional loss range | $ 1,200 | ||||
Low end of range | |||||
Environmental remediation reserves | |||||
Period of expending first half of environmental reserves | 3 years | ||||
High end of range | |||||
Environmental remediation reserves | |||||
Environmental reserves, range between zero to $ one million site category | $ 1 | ||||
Period of expending first half of environmental reserves | 4 years | ||||
NPL sites | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 34 | ||||
Reserve Balance | $ 452 | ||||
Third-party sites | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 66 | ||||
Reserve Balance | $ 223 | ||||
Occidental-operated sites | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 14 | ||||
Reserve Balance | $ 110 | ||||
Closed or non-operated Occidental sites | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 29 | ||||
Reserve Balance | $ 127 | ||||
Environmental sites assumed from the Merger | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 42 | ||||
Reserve Balance | $ 142 | ||||
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 | ||||
Anadarko | |||||
Environmental remediation reserves | |||||
Number of Sites | site | 42 |
Retirement and Postretirement_2
Retirement and Postretirement Benefit Plans - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions | Aug. 08, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 |
Net Periodic Benefit Costs | |||||
Accumulated other comprehensive income eliminated in purchase price accounting | $ 390 | ||||
Pension Benefit | |||||
Net Periodic Benefit Costs | |||||
Increase in benefit obligation from remeasurement | $ 193 | ||||
Curtailment gain | $ 34 | $ 10 | |||
Net periodic benefit cost | 15 | $ 2 | 19 | $ 4 | |
Employer contributions | 7 | 2 | 8 | 4 | |
Postretirement Benefit | |||||
Net Periodic Benefit Costs | |||||
Net periodic benefit cost | $ 19 | $ 15 | $ 48 | $ 55 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Common stock issuances | ||||
Balance at the beginning of the year (in shares) | 895,115,637 | |||
Balance at the end of the year (in shares) | 1,043,640,621 | 1,043,640,621 | ||
Basic earnings (loss) per common share | ||||
Net income (loss) attributable to common stockholders | $ (912) | $ 1,869 | $ 354 | $ 3,425 |
Less: Net income allocated to participating securities | 0 | 8 | 1 | 16 |
Net income (loss), net of participating securities | $ (912) | $ 1,861 | $ 353 | $ 3,409 |
Weighted average number of basic shares (in shares) | 845,700,000 | 761,700,000 | 781,100,000 | 764,300,000 |
Net income (loss) attributable to common stockholders per share—basic (in usd per share) | $ (1.08) | $ 2.44 | $ 0.45 | $ 4.46 |
Diluted earnings (loss) per common share | ||||
Net income (loss), net of participating securities | $ (912) | $ 1,861 | $ 353 | $ 3,409 |
Weighted average number of basic shares (in shares) | 845,700,000 | 761,700,000 | 781,100,000 | 764,300,000 |
Dilutive securities (in shares) | 0 | 1,600,000 | 1,100,000 | 1,500,000 |
Total diluted weighted average common shares (in shares) | 845,700,000 | 763,300,000 | 782,200,000 | 765,800,000 |
Net income (loss) attributable to common stockholders per share—diluted (in usd per share) | $ (1.08) | $ 2.44 | $ 0.45 | $ 4.45 |
Accumulated other comprehensive loss | ||||
Beginning balance | $ 21,347 | $ 20,931 | $ 21,330 | $ 20,572 |
Other comprehensive loss, before reclassifications | (160) | |||
Ending balance | 41,005 | 21,488 | $ 41,005 | 21,488 |
Anadarko | ||||
Common stock issuances | ||||
Treasury stock (in shares) | 2,000,000 | |||
Common Stock | ||||
Common stock issuances | ||||
Issued in the ordinary course (in shares) | 2,394,000 | |||
Issued as part of the Merger (in shares) | 146,131,000 | |||
Accumulated other comprehensive loss | ||||
Beginning balance | 179 | 179 | $ 179 | 179 |
Ending balance | 209 | 179 | 209 | 179 |
Gains and (losses) on derivatives | ||||
Accumulated other comprehensive loss | ||||
Beginning balance | 5 | |||
Other comprehensive loss, before reclassifications | (130) | |||
Ending balance | (125) | (125) | ||
Pension and postretirement benefit plans | ||||
Accumulated other comprehensive loss | ||||
Beginning balance | (170) | |||
Other comprehensive loss, before reclassifications | (30) | |||
Ending balance | (200) | (200) | ||
Foreign currency translation adjustments | ||||
Accumulated other comprehensive loss | ||||
Beginning balance | (7) | |||
Other comprehensive loss, before reclassifications | 0 | |||
Ending balance | (7) | (7) | ||
Accumulated Other Comprehensive Loss | ||||
Accumulated other comprehensive loss | ||||
Beginning balance | (184) | (308) | (172) | (258) |
Ending balance | $ (332) | $ (155) | $ (332) | $ (155) |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 15, 2019 | Aug. 08, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Class of Stock [Line Items] | ||||
Preferred stock, authorized shares (in shares) | 50,000,000 | |||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 | ||
Preferred stock, issued (in shares) | 100,000 | |||
Preferred stock, outstanding (in shares) | 100,000 | 0 | ||
Series A Preferred Stock | Subsequent Event | ||||
Class of Stock [Line Items] | ||||
Payments of preferred stock dividends | $ 149 | |||
Anadarko | Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Issued as part of the Merger (in shares) | 100,000 | |||
Face value (in usd per share) | $ 100,000 | |||
Preferred stock accrual rate per annum | 8.00% | |||
Preferred stock accrual rate per annum on unpaid amounts | 9.00% |
Industry Segments - Schedule of
Industry Segments - Schedule of Industry Segments and Eliminations (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($)segment | Sep. 30, 2018USD ($) | |
Segment Information | ||||
Number of operating segments | segment | 4 | |||
Net sales | $ 5,687 | $ 5,216 | $ 14,111 | $ 13,062 |
Income (loss) from continuing operations before income taxes | (621) | 2,579 | 1,176 | 4,776 |
Income tax expense | (116) | (710) | (647) | (1,351) |
Income (loss) from continuing operations | (737) | 1,869 | 529 | 3,425 |
Anadarko merger-related costs | 924 | 0 | 974 | 0 |
Amortization of debt financing fees | 65 | 122 | ||
Operating Segments | Oil and Gas | ||||
Segment Information | ||||
Net sales | 3,821 | 2,889 | 8,890 | 7,874 |
Income (loss) from continuing operations before income taxes | 221 | 767 | 1,431 | 2,297 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 221 | 767 | 1,431 | 2,297 |
Operating Segments | Chemical | ||||
Segment Information | ||||
Net sales | 1,071 | 1,185 | 3,128 | 3,515 |
Income (loss) from continuing operations before income taxes | 207 | 321 | 680 | 936 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 207 | 321 | 680 | 936 |
Operating Segments | Marketing and Other Midstream | ||||
Segment Information | ||||
Net sales | 780 | 1,367 | 2,505 | 2,359 |
Income (loss) from continuing operations before income taxes | 266 | 1,698 | 876 | 2,127 |
Income tax expense | 0 | 0 | 0 | 0 |
Income (loss) from continuing operations | 266 | 1,698 | 876 | 2,127 |
Operating Segments | WES Midstream | ||||
Segment Information | ||||
Net sales | 383 | 0 | 383 | 0 |
Income (loss) from continuing operations before income taxes | 134 | 0 | 134 | 0 |
Income tax expense | 0 | 0 | ||
Income (loss) from continuing operations | 134 | 0 | 134 | 0 |
Corporate and Eliminations | ||||
Segment Information | ||||
Net sales | (368) | (225) | (795) | (686) |
Income (loss) from continuing operations before income taxes | (1,449) | (207) | (1,945) | (584) |
Income tax expense | (116) | (710) | (647) | (1,351) |
Income (loss) from continuing operations | $ (1,565) | $ (917) | $ (2,592) | $ (1,935) |