Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity File Number | 1-9210 | ||
Entity Registrant Name | OCCIDENTAL PETROLEUM CORP /DE/ | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Entity Central Index Key | 0000797468 | ||
Title of 12(b) Security | Common Stock, $0.20 par value | ||
Trading Symbol | OXY | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 45 | ||
Entity Common Stock, Shares Outstanding | 895,224,961 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement, relating to its 2020 Annual Meeting of Stockholders, are incorporated by reference into Part III of this Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 3,032 | $ 3,033 |
Restricted cash and restricted cash equivalents | 480 | 0 |
Trade receivables, net of reserves of $19 in 2019 and $21 in 2018 | 6,373 | 4,893 |
Inventories | 1,447 | 1,260 |
Assets held for sale | 6,026 | 0 |
Other current assets | 1,323 | 746 |
Total current assets | 18,681 | 9,932 |
INVESTMENTS | ||
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6,389 | 1,680 |
PROPERTY, PLANT AND EQUIPMENT | ||
GROSS PROPERTY, PLANT AND EQUIPMENT | 122,347 | 74,420 |
Accumulated depreciation, depletion and amortization | (41,878) | (42,983) |
Property, plant and equipment, net | 80,469 | 31,437 |
OPERATING LEASE ASSETS | 1,385 | |
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | 2,406 | 805 |
TOTAL ASSETS | 109,330 | 43,854 |
CURRENT LIABILITIES | ||
Current maturities of long-term debt | 51 | 116 |
Current operating lease liabilities | 569 | |
Accounts payable | 7,017 | 4,885 |
Accrued liabilities | 5,302 | 2,411 |
Liabilities of assets held for sale | 2,010 | 0 |
Total current liabilities | 14,949 | 7,412 |
Long-term debt, net | 38,537 | 10,201 |
DEFERRED CREDITS AND OTHER LIABILITIES | ||
Deferred income taxes, net | 9,717 | 907 |
Asset retirement obligations | 4,385 | 1,424 |
Pension and postretirement obligations | 1,807 | 809 |
Environmental remediation liabilities | 1,035 | 762 |
Operating lease liabilities | 854 | |
Other | 3,814 | 1,009 |
Total Deferred Credits and Other Liabilities | 21,612 | 4,911 |
EQUITY | ||
Preferred stock, at $1.00 per share par value (100,000 shares at December 31, 2019) | 9,762 | 0 |
Common stock, $0.20 per share par value, authorized shares: 1.1 billion, issued shares: 2019 — 1,044,434,893 and 2018 — 895,115,637 | 209 | 179 |
Treasury stock: 2019 — 150,323,151 shares and 2018 — 145,726,051 shares | (10,653) | (10,473) |
Additional paid-in capital | 14,955 | 8,046 |
Retained earnings | 20,180 | 23,750 |
Accumulated other comprehensive loss | (221) | (172) |
Total stockholders’ equity | 34,232 | 21,330 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | 109,330 | 43,854 |
Oil and Gas Segment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
GROSS PROPERTY, PLANT AND EQUIPMENT | 105,881 | 58,799 |
Chemical Segment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
GROSS PROPERTY, PLANT AND EQUIPMENT | 7,172 | 7,001 |
Midstream Segment | ||
PROPERTY, PLANT AND EQUIPMENT | ||
GROSS PROPERTY, PLANT AND EQUIPMENT | 8,176 | 8,070 |
Corporate | ||
PROPERTY, PLANT AND EQUIPMENT | ||
GROSS PROPERTY, PLANT AND EQUIPMENT | $ 1,118 | $ 550 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Trade receivables, reserves | $ 19 | $ 21 |
Preferred stock, par value (in dollars per share) | $ 1 | |
Preferred stock, shares outstanding (in shares) | 100,000 | 0 |
Common stock, per share par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, authorized shares (in shares) | 1,100,000,000 | 1,100,000,000 |
Common stock, issued shares (in shares) | 1,044,434,893 | 895,115,637 |
Treasury stock, shares (in shares) | 150,323,151 | 145,726,051 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
REVENUES AND OTHER INCOME | |||
Net sales | $ 20,393 | $ 17,824 | $ 12,508 |
Interest, dividends and other income | 217 | 136 | 99 |
Gains on sale of equity investments and other assets, net | 622 | 974 | 667 |
Total | 21,232 | 18,934 | 13,274 |
COSTS AND OTHER DEDUCTIONS | |||
Oil and gas operating expense | 3,246 | 2,761 | 2,427 |
Transportation expense | 621 | 152 | 175 |
Chemical and midstream cost of sales | 2,791 | 2,833 | 2,938 |
Purchased commodities | 1,679 | 822 | 54 |
Selling, general and administrative | 882 | 585 | 546 |
Other operating and non-operating expense | 1,425 | 1,028 | 878 |
Depreciation, depletion and amortization | 5,981 | 3,977 | 4,002 |
Asset impairments and other charges | 1,361 | 561 | 545 |
Taxes other than on income | 707 | 439 | 311 |
Anadarko acquisition-related costs | 1,647 | 0 | 0 |
Exploration expense | 246 | 110 | 82 |
Interest and debt expense, net | 1,066 | 389 | 345 |
Total | 21,652 | 13,657 | 12,303 |
Income (loss) before income taxes and other items | (420) | 5,277 | 971 |
OTHER ITEMS | |||
Gains on interest rate swaps and warrants, net | 233 | 0 | 0 |
Income from equity investments | 373 | 331 | 357 |
Total | 606 | 331 | 357 |
Income from continuing operations before income taxes | 186 | 5,608 | 1,328 |
Income tax expense | (693) | (1,477) | (17) |
Income (loss) from continuing operations | (507) | 4,131 | 1,311 |
Loss from discontinued operations, net of tax | (15) | 0 | 0 |
NET INCOME (LOSS) | (522) | 4,131 | 1,311 |
Less: Net income attributable to noncontrolling interest | (145) | 0 | 0 |
Less: Preferred stock dividends | (318) | 0 | 0 |
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | $ (985) | $ 4,131 | $ 1,311 |
PER COMMON SHARE, BASIC | |||
Income (loss) from continuing operations—basic (in dollars per share) | $ (1.20) | $ 5.40 | $ 1.71 |
(Loss) from discontinued operations—basic (in dollars per share) | (0.02) | 0 | 0 |
Net income (loss) attributable to common stockholders—basic (in dollars per share) | (1.22) | 5.40 | 1.71 |
PER COMMON SHARE, DILUTED | |||
Income (loss) from continuing operations—diluted (in dollars per share) | (1.20) | 5.39 | 1.70 |
(Loss) from discontinued operations—diluted (in dollars per share) | (0.02) | 0 | 0 |
Net income (loss) attributable to common stockholders—diluted (in dollars per share) | (1.22) | 5.39 | 1.70 |
DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 3.14 | $ 3.10 | $ 3.06 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | ||
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (522) | $ 4,131 | $ 1,311 | |
Other comprehensive income (loss) items: | ||||
Foreign currency translation gains | 0 | 0 | 3 | |
Unrealized gains (losses) on derivatives | [1] | (129) | (6) | 13 |
Pension and postretirement gains (losses) | [2] | 78 | 137 | (7) |
Reclassification of realized losses (gains) on derivatives | [3] | 2 | 13 | (1) |
Other comprehensive income (loss), net of tax | (49) | 144 | 8 | |
Comprehensive income (loss) | (571) | 4,275 | 1,319 | |
Less: Comprehensive income attributable to noncontrolling interests | (145) | 0 | 0 | |
Comprehensive income (loss) attributable to preferred and common stockholders | $ (716) | $ 4,275 | $ 1,319 | |
[1] | Net of tax of $36 , $2 and $(7) in 2019 , 2018 and 2017 , respectively. | |||
[2] | Net of tax of $(25) , $(38) and $4 in 2019 , 2018 and 2017 , respectively. See Note 15 - Retirement and Postretirement Benefit Plans in the Notes to Consolidated Financial Statements for additional information. | |||
[3] | Net of tax of $0 , $(4) and $0 in 2019 , 2018 and 2017 , respectively. |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Unrealized losses on derivatives, tax | $ 36 | $ 2 | $ (7) |
Pension and postretirement gains, tax | (25) | (38) | 4 |
Reclassification to income of realized (gains)/losses on derivatives, net | $ 0 | $ (4) | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests |
Balance at Dec. 31, 2016 | $ 21,497 | $ 0 | $ 178 | $ (9,143) | $ 7,747 | $ 22,981 | $ (266) | $ 0 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 1,311 | 1,311 | ||||||
Other comprehensive income (loss), net of tax | 8 | 8 | ||||||
Dividends on common stock | (2,357) | (2,357) | ||||||
Issuance of common stock and other, net | 138 | 1 | 137 | |||||
Purchases of treasury stock | (25) | (25) | ||||||
Balance at Dec. 31, 2017 | 20,572 | 0 | 179 | (9,168) | 7,884 | 21,935 | (258) | 0 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | 4,131 | 4,131 | ||||||
Other comprehensive income (loss), net of tax | 144 | 144 | ||||||
Dividends on common stock | (2,374) | (2,374) | ||||||
Issuance of common stock and other, net | 162 | 162 | ||||||
Purchases of treasury stock | (1,305) | (1,305) | ||||||
Reclassification of stranded tax effects | 58 | (58) | ||||||
Balance at Dec. 31, 2018 | 21,330 | 0 | 179 | (10,473) | 8,046 | 23,750 | (172) | 0 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income (loss) | (522) | (667) | 145 | |||||
Other comprehensive income (loss), net of tax | (49) | (49) | ||||||
Dividends on common stock | (2,585) | (2,585) | ||||||
Dividends on preferred stock | (318) | (318) | ||||||
Issuance of common stock and other, net | 6,939 | 30 | 6,909 | |||||
Issuance of preferred stock | 9,762 | 9,762 | ||||||
Purchases of treasury stock | (180) | (180) | ||||||
Fair value of noncontrolling interest acquired | 4,895 | 4,895 | ||||||
Noncontrolling interest distributions, net | (131) | (131) | ||||||
Change in control WES | (4,909) | (4,909) | ||||||
Balance at Dec. 31, 2019 | $ 34,232 | $ 9,762 | $ 209 | $ (10,653) | $ 14,955 | $ 20,180 | $ (221) | $ 0 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Dividends on common stock (in dollars per share) | $ 3.14 |
Dividends on preferred stock (in dollars per share) | $ 3,489 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES | |||
Net income (loss) | $ (522) | $ 4,131 | $ 1,311 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Discontinued operations, net | 15 | 0 | 0 |
Depreciation, depletion and amortization of assets | 5,981 | 3,977 | 4,002 |
Deferred income tax (benefit) provision | (1,027) | 371 | (719) |
Other noncash charges to income | 940 | 34 | 219 |
Asset impairments and other charges | 1,328 | 561 | 545 |
Gain on sales of equity investments and other assets, net | (622) | (974) | (667) |
Undistributed earnings from affiliates | (50) | (43) | (68) |
Dry hole expense | 89 | 56 | 51 |
Increase in receivables | |||
Increase in receivables | (44) | (740) | (158) |
Decrease (increase) in inventories | 77 | (108) | (349) |
Decrease in other current assets | 186 | 94 | 39 |
(Decrease) increase in accounts payable and accrued liabilities | 793 | 195 | (89) |
Increase in current domestic and foreign income taxes | 59 | 38 | 64 |
Other operating, net | 0 | 77 | 680 |
Operating cash flow from continuing operations | 7,203 | 7,669 | 4,861 |
Operating cash flow from discontinued operations, net of taxes | 172 | 0 | 0 |
Net cash provided by operating activities | 7,375 | 7,669 | 4,861 |
Capital expenditures | |||
Capital expenditures | (6,355) | (4,975) | (3,599) |
Change in capital accrual | (282) | 55 | 122 |
Purchase of businesses and assets, net | (28,088) | (928) | (1,064) |
Proceeds from sale of assets and equity investments, net | 6,143 | 2,824 | 1,403 |
Equity investments and other, net | (291) | (182) | 59 |
Investing cash flow from continuing operations | (28,873) | (3,206) | (3,079) |
Investing cash flow from discontinued operations | (154) | 0 | 0 |
Net cash used by investing activities | (29,027) | (3,206) | (3,079) |
Proceeds from long-term debt, net - Occidental | |||
Proceeds from long-term debt, net | 21,557 | 978 | 0 |
Proceeds from issuance of common and preferred stock | 10,028 | 33 | 28 |
Purchases of treasury stock | (237) | (1,248) | (25) |
Cash dividends paid | (2,624) | (2,374) | (2,346) |
Distributions to noncontrolling interest | (257) | 0 | 0 |
Other financing, net | 229 | 9 | 0 |
Financing cash flow from continuing operations | 22,196 | (3,102) | (2,343) |
Financing cash flow from discontinued operations | (3) | 0 | 0 |
Net cash provided (used) by financing activities | 22,193 | (3,102) | (2,343) |
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents | 541 | 1,361 | (561) |
Cash and cash equivalents — beginning of year | 3,033 | 1,672 | 2,233 |
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of year | 3,574 | 3,033 | 1,672 |
WES | |||
Proceeds from long-term debt, net - Occidental | |||
Proceeds from long-term debt, net | 1,459 | 0 | 0 |
Payments of long-term debt, net | (1,000) | 0 | 0 |
Occidental | |||
Proceeds from long-term debt, net - Occidental | |||
Payments of long-term debt, net | $ (6,959) | $ (500) | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 Acquisition), with Anadarko continuing as the surviving entity and as an indirect, wholly owned subsidiary of Occidental. See Note 3 - The Acquisition . Occidental’s principal businesses consist of three reporting segments: oil and gas, chemical and marketing and midstream. 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 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. Included in the marketing and midstream segment is Occidental’s equity method investment in Western Midstream Partners, L.P. (WES). WES owns gathering systems, plants and pipelines and earns revenue from fee-based and service-based contracts with Occidental and third parties. Also within the marketing and 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 CO 2 and promote innovative technologies that drive cost efficiencies and economically grow Occidental’s business while reducing emissions. PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles (GAAP) and include the accounts of OPC, its subsidiaries, variable interest entities (VIE) for which Occidental is the primary beneficiary, and its undivided interests in oil and gas exploration and production ventures. Occidental accounts for its share of oil and gas exploration and production ventures, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets, statements of operations and statements of cash flows. The Acquisition 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. WES INVESTMENT 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 owns the entire non-economic general partner interest and a 98% limited partner interest in Western Midstream Operating, LP (WES Operating), a Delaware limited partnership formed by Anadarko in 2007 to acquire, own, develop and operate midstream assets. WES maintains its own capital structure that is separate from Occidental, consisting of its own debt instruments and publicly traded common units. From the Acquisition date through December 31, 2019, WES was determined to be a VIE, and Occidental, through its ownership of the general partner interest in WES, had the power to direct the activities that significantly affected the economic performance of WES and the obligation to absorb losses or the right to receive benefits that could be significant to WES. As such, Occidental was considered the primary beneficiary and consolidated WES and its consolidated subsidiaries from the date of the Acquisition to December 31, 2019. All intercompany transactions were eliminated during the consolidated period. Revenues of $1.1 billion , cost of sales of $500 million and operating cash flows of $498 million from the date of the Acquisition to December 31, 2019 are attributable to WES and are included in Occidental’s consolidated financial statements. Net income from noncontrolling interest for the same period relates to the 44.6% limited partner interest of WES owned by the public. On December 31, 2019, Occidental and WES executed several agreements to allow WES to operate as an independent midstream company to support its ongoing pursuit of third-party growth opportunities. The executed agreements include amendments to the partnership agreement that significantly expand the unaffiliated limited partner unitholders’ rights. The significant amendments to the partnership agreement included: Ø Providing for a simple majority of the unaffiliated unitholders to remove and elect a new general partner; Ø Allowing for 20% of the unaffiliated unitholders to call a special meeting to vote to remove the general partner; Ø Eliminating ownership thresholds that could have prevented unaffiliated unitholders from voting; Ø Limiting Occidental’s voting percentage to 45% for certain unitholder matters until Occidental owns less than 40% of the limited partner units for twelve consecutive months; and Ø Transferring 2% of Occidental’s limited partner interest to the general partner to provide a 2% economic interest to the general partner. In addition to the partnership agreement amendments, in December 2019, the WES management team’s employment was transferred from Occidental to WES, and WES-dedicated personnel were seconded to WES from Occidental. The seconded employees’ employment is contractually obligated to be transferred to WES during 2020 once employee benefit plans are established. Additionally, as of December 31, 2019, Occidental employees no longer comprise a majority of the board of directors of WES’s general partner. As a result of the partnership agreement amendments and other related agreements, WES no longer met the criteria to be considered a VIE. Accordingly, Occidental evaluated WES under the voting interest model and determined, because Occidental did not control the power to appoint or remove a successor general partner, it should no longer consolidate WES. As a result of the loss of control, Occidental derecognized all assets, liabilities, and noncontrolling interest that were previously consolidated. Occidental recognized, at fair value, an equity method investment of $5.1 billion based on the closing market price of WES as of December 31, 2019 and recognized a loss of approximately $1 billion that is included in asset impairments and other charges on the Statement of Operations. In future periods, Occidental will recognize equity method earnings and dividends received for its economic interest in WES. As of December 31, 2019, Occidental has a 55.4% unit ownership in WES, which consists of a 2% non-voting general partner unit interest and 54.5% of limited partner unit interest. In addition, Occidental has a 2% non-voting limited partner interest in WES Operating, which brings Occidental’s total effective economic interest in WES and its subsidiaries to 56.3% . During 2020, Occidental intends to reduce its limited partner ownership interest in WES to below 50%. Occidental’s historical pro rata interest in the net assets of WES was $1.9 billion , resulting in a basis difference of $3.2 billion primarily associated with WES’s equity method investments, PP&E, equity method goodwill and intangible assets - customer relationships and subject to amortization over their estimated average useful life. INVESTMENTS IN UNCONSOLIDATED ENTITIES Occidental’s percentage interest in the underlying net assets of affiliates for which it exercises significant influence without having a controlling interest (excluding oil and gas ventures in which Occidental holds an undivided interest) are accounted for under the equity method. Occidental reviews equity-method investments for impairment whenever events or changes in circumstances indicate that an other-than-temporary decline in value may have occurred. The amount of impairment, if any, is based on quoted market prices, when available, or other valuation techniques, including discounted cash flows. DISCONTINUED OPERATIONS In connection with the Acquisition, 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. In September 2019, Occidental completed the sale of 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 December 31, 2019. The results of operations of the Africa Assets are presented as discontinued operations, see Note 4 - Acquisitions, Dispositions and Other Transactions . In January 2020, Occidental completed the sale of South Africa assets to Total. Unless otherwise indicated, information presented in the Notes to the Consolidated Financial Statements relates only to Occidental’s continuing operations. Information related to discontinued operations is included in Note 4 - Acquisitions, Dispositions and Other Transactions , and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Financial Statements. RISKS AND UNCERTAINTIES The process of preparing consolidated financial statements in conformity with GAAP requires Occidental’s management to make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Such estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements and judgments on expected outcomes as well as the materiality of transactions and balances. Changes in facts and circumstances or discovery of new information relating to such transactions and events may result in revised estimates and judgments and actual results may differ from estimates upon settlement. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of Occidental’s financial statements. Occidental establishes a valuation allowance against net operating losses and other deferred tax assets to the extent it believes the future benefit from these assets will not be realized in the statutory carryforward periods. Realization of deferred tax assets is dependent upon Occidental generating sufficient future taxable income and reversal of temporary differences in jurisdictions where such assets originate. The accompanying consolidated financial statements include assets of approximately $14.9 billion as of December 31, 2019 , and net sales of approximately $4.6 billion for the year ended December 31, 2019 , relating to Occidental’s operations in countries outside North America. Occidental operates some of its oil and gas business in countries that have experienced political instability, nationalizations, corruption, armed conflict, terrorism, insurgency, civil unrest, security problems, labor unrest, OPEC production restrictions, equipment import restrictions and sanctions, all of which increase Occidental’s risk of loss, delayed or restricted production or may result in other adverse consequences. Occidental attempts to conduct its affairs so as to mitigate its exposure to such risks and would seek compensation in the event of nationalization. Because Occidental’s major products are commodities, significant changes in the prices of oil and gas and chemical products may have a significant impact on Occidental’s results of operations. Also, see “Property, Plant and Equipment” below. 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 December 31, 2019, included 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 Statements of Cash Flows for the twelve months ended December 31, 2019 to the line items within the Consolidated Balance Sheet at December 31, 2019. There was no restricted cash or restricted cash equivalents at December 31, 2018. millions December 31, 2019 Cash and cash equivalents $ 3,032 Restricted cash and restricted cash equivalents 480 Cash and restricted cash included in assets held for sale 8 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 54 Cash, cash equivalents, restricted cash, and restricted cash equivalents $ 3,574 Total restricted cash and restricted cash equivalents are primarily associated with a benefits trust for former Anadarko employees, payments of future hard-minerals royalties conveyed, and a judicially-controlled account related to a Brazilian tax dispute. RECEIVABLES AND OTHER CURRENT ASSETS Trade receivables, net, of $6.4 billion and $4.9 billion at December 31, 2019 , and 2018 , respectively, represent rights to payment for which Occidental has satisfied its obligations under a contract with a customer and its right to payment is conditioned only on the passage of time. Other current assets included amounts receivable from working interest partners in Occidental’s oil and gas operations, derivative assets, and taxes receivable. INVENTORIES Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Oil, NGL and natural gas inventories are valued at the lower of cost or market. For the chemical segment, Occidental’s finished goods inventories are valued at the lower of cost or market. For most of its domestic inventories, other than materials and supplies, the chemical segment uses the last-in, first-out (LIFO) method as it better matches current costs and current revenue. For other countries, Occidental uses the first-in, first-out method (if the costs of goods are specifically identifiable) or the average-cost method (if the costs of goods are not specifically identifiable). PROPERTY, PLANT AND EQUIPMENT OIL AND GAS The carrying value of Occidental’s property, plant and equipment (PP&E) represents the cost incurred to acquire or develop the asset, including any asset retirement obligations and capitalized interest, net of accumulated depreciation, depletion and amortization (DD&A) and any impairment charges. For assets acquired, PP&E cost is based on fair values at the acquisition date. Asset retirement obligations and interest costs incurred in connection with qualifying capital expenditures are capitalized and amortized over the lives of the related assets. Occidental uses the successful efforts method to account for its oil and gas properties. Under this method, Occidental capitalizes costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. If proved reserves have been found, the costs of exploratory wells remain capitalized. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory drilling costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. At the end of each quarter, management reviews the status of all suspended exploratory drilling costs in light of ongoing exploration activities, in particular, whether Occidental is making sufficient progress in its ongoing exploration and appraisal efforts or, in the case of discoveries requiring government sanctioning, analyzing whether development negotiations are underway and proceeding as planned. If management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. The following table summarizes the activity of capitalized exploratory well costs for continuing operations for the years ended December 31: millions 2019 2018 2017 Balance — beginning of year $ 112 $ 108 $ 56 Exploratory well costs acquired through the Acquisition 231 — — Additions to capitalized exploratory well costs pending the determination of proved reserves 383 220 201 Reclassifications to property, plant and equipment based on the determination of proved reserves (230 ) (198 ) (128 ) Capitalized exploratory well costs charged to expense (72 ) (18 ) (21 ) Balance — end of year $ 424 $ 112 $ 108 Occidental expenses annual lease rentals, the costs of injectants used in production and geological, geophysical and seismic costs as incurred. Occidental determines depreciation and depletion of oil and gas producing properties by the unit-of-production method. It amortizes leasehold costs over total proved reserves, and capitalized development and successful exploration costs over proved developed reserves. Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations-prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Occidental performs impairment tests with respect to its proved properties whenever events or circumstances indicate that the carrying value of property may not be recoverable. If there is an indication the carrying amount of the asset may not be recovered due to prolonged declines in current and forward prices, significant changes in reserve estimates, changes in management’s plans, or other significant events, management will evaluate the property for impairment. Under the successful efforts method, if the sum of the undiscounted cash flows is less than the carrying value of the proved property, the carrying value is reduced to estimated fair value and reported as an impairment charge in the period. Individual proved properties are grouped for impairment purposes at the lowest level for which there are identifiable cash flows. The fair value of impaired assets is typically determined based on the present value of expected future cash flows using discount rates believed to be consistent with those used by market participants. The impairment test incorporates a number of assumptions involving expectations of future cash flows which can change significantly over time. These assumptions include future production and timing of production, estimates of future product prices, contractual prices, estimates of risk-adjusted oil and gas reserves and estimates of future operating and development costs. See Note 17 - Fair Value Measurements and below for further discussion of asset impairments. A portion of the carrying value of Occidental’s oil and gas properties is attributable to unproved properties. Net capitalized costs attributable to unproved properties were $29.5 billion at December 31, 2019 and $1.0 billion December 31, 2018. The unproved amounts are not subject to DD&A until they are classified as proved properties. Individually insignificant unproved properties are combined and amortized on a group basis based on factors such as lease terms, success rates, and other factors. If the exploration efforts are unsuccessful, or management decides not to pursue development of these properties as a result of lower commodity prices, higher development and operating costs, contractual conditions or other factors, the capitalized costs of the related properties would be expensed. The timing of any writedowns of these unproved properties, if warranted, depends upon management’s plans, the nature, timing and extent of future exploration and development activities and their results. Occidental periodically reviews unproved properties for impairments; numerous factors are considered, including but not limited to, current exploration plans, favorable or unfavorable exploration activity on the property or the adjacent property, geologists’ evaluation of the property and the remaining lease term for the property. Management’s assessment of the availability of funds for future activities and the current and projected political and regulatory climate in areas in which Occidental operates also impacts the timing of any impairment. CHEMICAL Occidental’s chemical assets are depreciated using either the unit-of-production or the straight-line method, based upon the estimated useful lives of the facilities. The estimated useful lives of Occidental’s chemical assets, which range from three years to 50 years , are also used for impairment tests. The estimated useful lives for the chemical facilities are based on the assumption that Occidental will provide an appropriate level of annual expenditures to ensure productive capacity is sustained. Such expenditures consist of ongoing routine repairs and maintenance, as well as planned major maintenance activities (PMMA). Ongoing routine repairs and maintenance expenditures are expensed as incurred. PMMA costs are capitalized and amortized over the period until the next planned overhaul. Additionally, Occidental incurs capital expenditures that extend the remaining useful lives of existing assets, increase their capacity or operating efficiency beyond the original specification or add value through modification for a different use. These capital expenditures are not considered in the initial determination of the useful lives of these assets at the time they are placed into service. The resulting revision, if any, of the asset’s estimated useful life is measured and accounted for prospectively. Without these continued expenditures, the useful lives of these assets could decrease significantly. Other factors that could change the estimated useful lives of Occidental’s chemical assets include sustained higher or lower product prices, which are affected by domestic and international competition, demand, feedstock costs, energy prices, environmental regulations and technological changes. Occidental performs impairment tests on its chemical assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value. MARKETING AND MIDSTREAM Occidental’s marketing and midstream PP&E is depreciated over the estimated useful lives of the assets, using either the unit-of-production or straight-line method. Occidental performs impairment tests on its marketing and midstream assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value. GOODWILL Occidental recognized goodwill of $5.8 billion associated with the Acquisition. The goodwill was based on WES’s publicly traded units and was primarily associated with the relationship between Occidental and WES as well as Occidental’s tax basis in WES. Upon loss of control and application of the equity method of accounting, $4.6 billion of goodwill was derecognized. The remaining $1.2 billion in goodwill is assigned to the marketing and midstream segment and is attributable to the deferred tax liability associated with the investment in WES. Goodwill is subject to annual impairment testing every October. Occidental’s goodwill impairment test first assesses qualitative factors to determine whether goodwill is likely impaired. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill, Occidental will then perform a quantitative goodwill impairment test. Changes in goodwill may result from, among other things, impairments, future acquisitions, or future divestitures. IMPAIRMENTS AND OTHER CHARGES During 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 $39 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 related to Qatar 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%. These inputs are categorized as Level 3 in the fair-value hierarchy. Also in 2018, the marketing and midstream segment incurred approximately $100 million of charges primarily for lower of cost or market adjustments on its crude inventory and line fill. In 2017, Occidental recorded net impairment and related charges of $397 million related to proved and unproved non-core Permian acreage and $120 million related to idled marketing and midstream facilities. It is reasonably possible that prolonged declines in commodity prices, reduced capital spending in response to lower prices or increases in operating costs could result in additional impairments. 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 reported at the end of each reporting period. FAIR VALUES - RECURRING Occidental primarily applies the market approach for recurring fair value measurements, maximizes its use of observable inputs and minimizes its use of unobservable inputs. Occidental utilizes the mid-point between bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, Occidental makes assumptions in valuing its assets and liabilities, including assumptions about the risks inherent in the inputs to the valuation technique. For assets and liabilities carried at fair value, Occidental measures fair value using the following methods: Ø Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. These derivatives are classified as Level 1. Ø Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, interest rate swaps, warrants, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. Ø Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace or are observable but have been adjusted based upon various assumptions and the fair value is designated as Level 3 within the valuation hierarchy. Ø Occidental values debt using market-observable information for debt instruments that are traded on secondary markets. For debt instruments that are not traded, the fair value is determined by interpolating the value based on debt with similar terms and credit risk. NON-FINANCIAL ASSETS Occidental uses market-observable prices for assets when comparable transactions can be identified that are similar to the asset being valued. When Occidental is required to measure fair value and there is not a market-observable price for the asset or for a similar asset then the cost or income approach is used depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach is based on management’s best assumptions regarding expectations of future net cash flows, and the expected cash flows are discounted using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment, and the results are based on expected future events or conditions such as sales prices, estimates of future oil and gas production or throughput, development and operating costs and the timing thereof, economic and regulatory climates, and other factors, most of which are often outside of management’s control. However, assumptions used reflect a market participant’s view of long-term prices, costs, and other factors and are consistent with assumptions used in the Company’s business plans and investment decisions. ACCRUED LIABILITIES - CURRENT Accrued liabilities - current included accrued payroll, commissions and related expenses of $1.2 billion and $428 million at December 31, 2019 , and 2018 , respectively. Dividends payable, also included in accrued liabilities - current, were $884 million and $600 million at December 31, 2019 , and 2018 , respectively. Derivate financial instruments, also included in accrued liabilities - current, were $641 million and $134 million at December 31, 2019, and 2018, respectively. ENVIRONMENTAL LIABILITIES AND EXPENDITURES Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Occidental records environmental liabilities and related charges and expenses for estimated remediation costs that relate to existing conditions from past operations when environmental remediation efforts are probable and the costs can be reasonably estimated. In determining the environmental remediation liability and the range of reasonably possible additional losses, Occidental refers to currently available information, including relevant past experience, remedial objectives, available technologies, applicable laws and regulations and cost-sharing arrangements. Occidental bases its environmental remediation liabilities on management’s estimate of the most likely cost to be incurred, using the most |
ACCOUNTING AND DISCLOSURE CHANG
ACCOUNTING AND DISCLOSURE CHANGES | 12 Months Ended |
Dec. 31, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
ACCOUNTING AND DISCLOSURE CHANGES | NOTE 2 - ACCOUNTING AND DISCLOSURE CHANGES RECENTLY ADOPTED 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 (ROU) asset 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 8 - Lease Commitments . In February 2018, the Financial Accounting Standards Board (FASB) released standards that allow the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from changes to U.S. federal tax law from the 2017 Tax Cuts and Jobs Act (Tax Reform) enacted in December 2017. Occidental early adopted this standard in the first quarter of 2018, resulting in the reclassification of $58 million in stranded tax effects from accumulated other comprehensive income (AOCI) to retained earnings. In January 2018, Occidental adopted the new revenue recognition standard Topic 606 - Revenue from Contracts with Customers and related updates (ASC 606). The new standard requires more detailed disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Occidental adopted the standard using the modified retrospective method. The cumulative-effect adjustment to retained earnings upon adoption was not material. See Note 5 - Revenue . In January 2017, FASB issued new guidance clarifying the definition of a business under the topic Business Combinations. The rules became effective in the first quarter of 2018, and did not have a material impact to Occidental’s financial statements upon adoption. |
THE ACQUISITION
THE ACQUISITION | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
THE ACQUISITION | NOTE 3 - THE ACQUISITION On May 9, 2019, Occidental entered into the Acquisition Agreement with Anadarko. On August 8, 2019, Anadarko’s stockholders voted to approve the Acquisition and it was made effective the same day. The Acquisition 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 Acquisition, 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 7 - Long-term Debt and Note 13 - Stockholders’ Equity for additional information. The Acquisition constitutes a business combination and was accounted for using the acquisition method of accounting. The following table presents the Acquisition consideration paid to Anadarko stockholders as a result of the Acquisition: millions except per-share amounts As of August 8, 2019 Total shares of Anadarko common stock eligible for Acquisition consideration 491.6 Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Acquisition consideration) $ 59.00 Cash portion of Acquisition consideration $ 29,002 Total shares of Anadarko common stock eligible for Acquisition consideration 491.6 Exchange ratio (per share of Anadarko common stock) 0.2934 Total shares of Occidental common stock issued to Anadarko stockholders 144 Average share price of Occidental common stock at August 8, 2019 $ 46.31 Stock portion of Acquisition consideration $ 6,679 Acquisition consideration attributable to Anadarko stock-based awards $ 23 Total Acquisition consideration $ 35,704 The following table sets forth the preliminary allocation of the Acquisition consideration. Certain data necessary to complete the purchase price allocation is not yet available, including, but not limited to, final appraisals of certain assets acquired and liabilities assumed, valuation of pre-Acquisition 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 Acquisition 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 $ 3,596 Africa Assets held for sale 10,616 Investments in unconsolidated entities 194 Property, plant and equipment 49,074 Other assets 836 Amount attributable to assets acquired $ 64,316 Fair value of liabilities assumed: Current liabilities $ 3,410 Liabilities of Africa Assets held for sale 2,200 Long-term debt 13,240 Deferred income taxes 8,607 Asset retirement obligations 2,724 Pension and post-retirement obligations 1,072 Non-current derivative liabilities 1,280 Other long-term liabilities 2,323 Amount attributable to liabilities assumed $ 34,856 Net assets $ 29,460 Fair value of WES net assets acquired less noncontrolling interests (a) $ 6,244 Total Acquisition consideration $ 35,704 (a) See Note 1 - Summary of Significant Accounting Policies for a discussion of the WES investment. The following table summarizes the fair value of the major categories of WES assets acquired and liabilities assumed at the Acquisition date as well as the noncontrolling interest, which primarily consists of the 44.6% limited partner interest in WES owned by the public. The fair value of Occidental’s controlling interest in WES is calculated based on the market capitalization value at the Acquisition date. millions As of August 8, 2019 Fair value of WES assets acquired: Current assets $ 499 Investments in unconsolidated entities 2,425 Property, plant and equipment 10,160 Intangible assets - customer relationships 1,800 Goodwill 5,772 Other assets 342 Amount attributable to assets acquired $ 20,998 Fair value of WES liabilities assumed: Current liabilities $ 815 Long-term debt 7,407 Deferred income taxes 1,174 Asset retirement obligations 321 Other long-term liabilities 142 Amount attributable to liabilities assumed $ 9,859 Net assets $ 11,139 Less: Fair value of noncontrolling interests in WES $ 4,895 Fair value of WES net assets acquired less noncontrolling interests $ 6,244 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 Acquisition. 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. Onshore undeveloped oil and gas properties were valued primarily using a market approach based on comparable transactions for similar properties while the income approach was utilized for developed oil and gas properties based on underlying reserve projections at the Acquisition date. For the acquired Gulf of Mexico offshore properties, an income approach was used as the primary valuation method based on underlying reserve projections. Income approaches are considered level 3 fair value estimates and include significant assumptions of future production, commodity prices, and operating and capital cost estimates, discounted using weighted average cost of capital for industry peers, and risk adjustment factors based on reserve category. Price assumptions were based on a combination of market information and published industry resources adjusted for historical differentials. Cost estimates were based on current observable costs inflated based on historical and expected future inflation. Taxes were based on current statutory rates. The fair value of WES investments in unconsolidated entities were valued using an income approach for each investment, with significant inputs being forecasted distributions, an anticipated growth rate and an estimated discount rate. Acquired WES property, plant and equipment primarily consisted of gathering systems and processing and treating facilities and were primarily valued using a replacement cost approach. Intangible assets primarily consist of relationships with third-party customers, the fair value of which was determined using an income approach, including significant assumptions related to estimated cash flows from third-party customers less a contributory asset charge, a customer retention rate and an estimated discount rate. Customer relationships are amortized over 30 years . Goodwill is attributable to the difference in WES market capitalization value and the net assets acquired and primarily relates to the relationship between Occidental and WES that is not recognized as a separate asset, due to Occidental consolidating WES as of the Acquisition date. Deferred income taxes represent the tax effects of differences in the tax basis and acquisition-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 $2.5 billion of the assumed Anadarko debt is considered Level 2, while approximately $730 million of the WES 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. With the completion of the Acquisition, Occidental acquired proved and unproved properties of approximately $19.1 billion and $27.4 billion , respectively, primarily associated with the Permian Basin, DJ Basin, Gulf of Mexico and Powder River Basin. The remaining $2.5 billion in PP&E which consists of non-oil and gas mineral interests and other real estate assets. From the date of the Acquisition through December 31, 2019, revenues and the net loss attributable to common stockholders associated with the operations acquired through the Acquisition totaled $4.2 billion and $1.7 billion , respectively, which includes a charge as a result of recording Occidental’s investment in WES at fair value as of December 31, 2019 upon the loss of control. The following table summarizes the unaudited pro forma condensed financial information of Occidental as if the Acquisition had occurred on January 1, 2018: Year ended December 31, millions except per-share amounts 2019 2018 Revenues $ 28,723 $ 31,206 Net income (loss) attributable to common stockholders (a) $ (769 ) $ 2,965 Net income (loss) attributable to common stockholders per share—basic $ (0.95 ) $ 3.26 Net income (loss) attributable to common stockholders per share—diluted $ (0.95 ) $ 3.25 (a) Excluding the pro-forma results of WES, net income (loss) attributable to common stockholders would be $(1.1) billion and $2.8 billion for the years ended December 31, 2019 and 2018, respectively. 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 Acquisition 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 statements of operations of Occidental with the pre-Acquisition results from January 1, 2019, and 2018 of Anadarko and included adjustments for revenues and direct expenses. The pro forma results exclude results from the Africa Assets, any cost savings anticipated as a result of the Acquisition and the impact of any Acquisition-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 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 Acquisition are properly reflected. ANADARKO ACQUISITION-RELATED COSTS The following table summarizes the Acquisition-related costs incurred for the year ended December 31: millions 2019 Employee severance and related employee cost $ 1,033 Licensing fees for critical seismic data 401 Bank, legal, consulting and other 213 Total $ 1,647 Employee severance and related employee 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 Acquisition Agreement and existing change of control provisions within the former Anadarko employment agreements. In addition, employee severance and related employee cost included 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 December 31, 2019, with additional expenses associated with the program expected to be incurred through most of 2020. Employees may revoke their participation in the voluntary severance program up to their separation date. |
ACQUISITIONS, DISPOSITIONS AND
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | NOTE 4 - ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS AFRICA ASSETS - DISCONTINUED OPERATIONS In September 2019, Occidental completed the sale of Mozambique LNG assets to Total for approximately $4.2 billion , with proceeds used to pay down a portion of the Term Loans. In January 2020, Occidental completed the sale of South Africa assets to Total. Occidental and Total continue to work toward completing the sales of the remaining Africa Assets. 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 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 Acquisition closing date through December 31, 2019: millions 2019 Revenues and other income Net sales $ 739 Costs and other deductions Oil and gas lease operating expense $ 81 Transportation expense 14 Taxes other than on income 133 Fair value adjustment on assets held for sale 244 Other 53 Total costs and other deductions $ 525 Income before income taxes $ 214 Income tax expense (229 ) Discontinued operations, net of tax $ (15 ) The following table presents amounts related to the Africa Assets reported as held for sale in the Consolidated Balance Sheet as of December 31, 2019: millions 2019 Current assets $ 289 Property, plant and equipment, net 5,481 Long-term receivables and other assets, net 256 Assets held for sale (a) $ 6,026 Current liabilities $ 452 Long-term debt, net - finance leases 185 Deferred income taxes 1,112 Asset retirement obligations 181 Other 80 Liabilities of assets held for sale (a) $ 2,010 Net assets held for sale $ 4,016 (a) Assets and liabilities held for sale at December 31, 2019 included South Africa assets which were sold to Total in January 2020. OTHER TRANSACTIONS 2019 In December 2019, Occidental disposed of real estate assets for $565 million . Occidental utilized net proceeds to pay down a portion of the Term Loans. Concurrent with the sale, Occidental entered a thirteen -year lease for part of the real estate assets. Based on the terms of the lease, Occidental treated this as a failed sale-leaseback, retained the related book value in property, plant and equipment and recognized a finance lease of approximately $300 million based on the discounted future minimum lease payments. In November 2019, Occidental and Ecopetrol closed on the joint venture to develop approximately 97,000 net acres of Occidental’s Midland Basin unproved properties in the Permian Basin. Ecopetrol paid $750 million in cash at closing and up to $750 million of carried capital in exchange for a 49% interest in the new venture. Occidental recognized a gain of $563 million on the sale. Following the close, Occidental owned a 51% interest and operates the joint venture. During the carry period, Ecopetrol will pay 75% of Occidental’s share of capital expenditures, up to $750 million . The joint venture allows Occidental to accelerate its development plans in the Midland Basin, where it currently has minimal activity. Occidental will retain production and cash flow from its existing operations in the Midland Basin. The proceeds were used to pay down a portion of the Term Loans. In September 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 $114 million . The proceeds were used to pay down a portion of the Term Loans. 2018 In September 2018, Occidental divested non-core domestic midstream assets for total consideration of $2.6 billion , of which approximately $2.4 billion was received at closing, resulting in a pre-tax net gain of $907 million . These assets include the Centurion common carrier oil pipeline and storage system, Southeast New Mexico oil gathering system, and Ingleside Crude Terminal. Following the transactions, Occidental retained its long-term flow assurance, pipeline takeaway and export capacity through its retained marketing business. In July 2018, Occidental acquired a previously leased power and steam cogeneration facility for $443 million . In March 2018, Occidental divested non-core midstream assets for approximately $150 million , resulting in a pre-tax gain of $43 million . 2017 In the third quarter of 2017, Occidental closed on two divestitures of non-core acreage in the Permian Basin for proceeds of approximately $0.6 billion , resulting in a pre-tax gain of approximately $81 million . Concurrently, Occidental purchased additional ownership interests and assumed operatorship in CO 2 enhanced oil recovery (EOR) properties located in the Seminole-San Andres Unit for approximately $0.6 billion , which was primarily allocated to proved property. In the fourth quarter of 2017, Occidental sold other non-core proved and unproved acreage in the Permian Basin for approximately $90 million , resulting in a pre-tax gain of approximately $55 million . Occidental also classified approximately $0.5 billion in non-core proved and unproved Permian acreage to assets held for sale at December 31, 2017. In April 2017, Occidental completed the sale of its South Texas operations for net proceeds of $0.5 billion resulting in pre-tax gain of $0.5 billion |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | NOTE 5 - REVENUE Revenue from customers is recognized when obligations under the terms of a contract are satisfied; this generally occurs with the delivery of oil, gas, NGL, chemicals or services such as transportation. Revenue from customers is measured as the amount of consideration Occidental expects to receive in exchange for the delivery of goods or services. Contracts may last from one month to one year or more, and may have renewal terms that extend indefinitely at the option of either party. Price is typically based on market indexes. Volumes fluctuate due to production and, in certain cases, customer demand and transportation availability. Occidental records revenue net of certain taxes, such as sales taxes, that are assessed by governmental authorities on Occidental’s customers. Occidental does not incur significant costs to obtain contracts. Incidental items that are immaterial in the context of the contract are recognized as expenses. Sales of hydrocarbons and chemicals to customers are invoiced and settled on a monthly basis. Occidental is not usually subject to obligations for warranties, rebates, returns or refunds except in the case of customer incentive payments as discussed for the chemical segment below. Occidental does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to Occidental. OIL AND GAS SEGMENT Revenue from oil and gas production is recognized when production is delivered and control passes to the customer. Revenues from the production of oil and gas properties in which Occidental has an interest with other producers are recognized on the basis of Occidental’s net revenue interest. CHEMICALS SEGMENT Revenue from chemical product sales is recognized when control passes to the customer. Certain incentive programs may provide for payments or credits to be made to customers based on the volume of product purchased over a defined period. Customer incentives are estimated and recorded as a reduction to revenue ratably over the contract period. Such estimates are evaluated and revised as warranted. Revenue from exchange contracts is excluded from revenue from customers. MARKETING AND MIDSTREAM SEGMENT Revenue from pipeline and gas processing is recognized upon the completion of the transportation or processing service. Revenue from power sales is recognized upon delivery. Net marketing revenue is included in net sales, but excluded from revenue from customers in the table below. Net marketing revenue is recognized upon completion of contract terms that are a prerequisite to payment and upon title transfer for physical deliveries. Unless the normal purchases and sales exception has been elected, net marketing revenue is classified as a derivative, reported on a net basis, recorded at fair value and changes in fair value are reflected in net sales. The following table reconciles revenue from customers to total net sales for the years ended December 31: millions 2019 2018 Revenue from customers $ 18,674 $ 15,560 All other revenues (a) 1,719 2,264 Net sales $ 20,393 $ 17,824 (a) Included net marketing derivatives, oil collars and calls and chemical exchange contracts. 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. Chemical revenues are shown by geographic area based on the location of the sale. Marketing and midstream revenues are shown by the location of sale. millions United States Middle East Latin America Other International Eliminations Total Year ended December 31, 2019 Oil and Gas Oil $ 8,411 $ 2,758 $ 683 $ — $ — $ 11,852 NGL 658 263 — — — 921 Gas 424 319 20 — — 763 Other (1 ) (5 ) — — — (6 ) Segment total $ 9,492 $ 3,335 $ 703 $ — $ — $ 13,530 Chemical $ 3,858 $ — $ 155 $ 67 $ — $ 4,080 Marketing and Midstream (a) Gas processing $ 395 $ 351 $ — $ — $ — $ 746 WES - Gas processing and pipeline 1,110 — — — — 1,110 Power and other 472 — — — — 472 Segment total $ 1,977 $ 351 $ — $ — $ — $ 2,328 Eliminations $ — $ — $ — $ — $ (1,264 ) $ (1,264 ) Consolidated $ 15,327 $ 3,686 $ 858 $ 67 $ (1,264 ) $ 18,674 Year ended December 31, 2018 Oil and Gas Oil $ 5,125 $ 3,405 $ 715 $ — $ — $ 9,245 NGL 430 261 — — — 691 Gas 185 294 16 — — 495 Other 7 3 — — — 10 Segment total $ 5,747 $ 3,963 $ 731 $ — $ — $ 10,441 Chemical $ 4,363 $ — $ 205 $ 80 $ — $ 4,648 Marketing and Midstream Gas processing $ 557 $ 425 $ — $ — $ — $ 982 Pipelines 311 — — — — 311 Power and other 108 — — — — 108 Segment total $ 976 $ 425 $ — $ — $ — $ 1,401 Eliminations $ — $ — $ — $ — $ (930 ) $ (930 ) Consolidated $ 11,086 $ 4,388 $ 936 $ 80 $ (930 ) $ 15,560 (a) The marketing and midstream segment included revenues from customers from WES from the date of the Acquisition to December 31, 2019. See Note 1 - Summary of Significant Accounting Policies . TRANSACTION PRICE ALLOCATED TO REMAINING PERFORMANCE OBLIGATIONS Revenue expected to be recognized from certain performance obligations that are unsatisfied as of December 31, 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 Total 2020 $ 103 2021 103 2022 7 2023 7 2024 7 Thereafter 53 Total $ 280 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | NOTE 6 - INVENTORIES Finished goods primarily represents oil, which is carried at the lower of weighted-average cost or net realizable value, and caustic soda and chlorine, which are valued under the LIFO method. Net carrying values of inventories valued under the LIFO method were $168 million and $169 million at December 31, 2019 and 2018 , respectively. Inventories consisted of the following at December 31: millions 2019 2018 Raw materials $ 75 $ 74 Materials and supplies 879 445 Commodity inventory and finished goods 533 788 1,487 1,307 Revaluation to LIFO (40 ) (47 ) Total $ 1,447 $ 1,260 |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | NOTE 7 - LONG-TERM DEBT Long-term debt consisted of the following: millions December 31, 2019 4.850% senior notes due 2021 $ 677 2.600% senior notes due 2021 1,500 4.100% senior notes due 2021 1,249 Variable rate bonds due 2021 (2.854% as of December 31, 2019) 500 Variable rate bonds due 2021 (3.151% as of December 31, 2019) 500 2-year variable rate Term Loan due 2021 (3.111% as of December 31, 2019) 1,956 2.700% senior notes due 2022 2,000 3.125% senior notes due 2022 814 2.600% senior notes due 2022 400 Variable rate bonds due 2022 (3.360% as of December 31, 2019) 1,500 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 2.900% senior notes due 2024 3,000 6.950% senior notes due 2024 650 3.450% senior notes due 2024 248 3.500% senior notes due 2025 750 5.550% senior notes due 2026 1,100 3.200% senior notes due 2026 1,000 3.400% senior notes due 2026 1,150 7.500% debentures due 2026 112 3.000% senior notes due 2027 750 7.125% debentures due 2027 150 7.000% debentures due 2027 48 6.625% debentures due 2028 14 7.150% debentures due 2028 235 7.200% senior debentures due 2028 82 7.200% debentures due 2029 135 7.950% debentures due 2029 116 8.450% senior debentures due 2029 116 3.500% senior notes due 2029 1,500 Variable rate bonds due 2030 (1.705% as of December 31, 2019) 68 7.500% senior notes due 2031 900 7.875% senior notes due 2031 500 6.450% senior notes due 2036 1,750 Zero Coupon senior notes due 2036 2,271 6.500% note payable to WES due 2038 260 4.300% senior notes due 2039 750 7.950% senior notes due 2039 325 6.200% senior notes due 2040 750 4.500% senior notes due 2044 625 4.625% senior notes due 2045 750 6.600% senior notes due 2046 1,100 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 4.400% senior notes due 2049 750 7.730% debentures due 2096 60 7.500% debentures due 2096 78 7.250% debentures due 2096 49 Total borrowings at face value (a) 37,401 Adjustments to book value: Unamortized premium, net 914 Debt issuance costs (125 ) Long-term finance leases 347 Long-term Debt, net $ 38,537 (a) Total borrowings at face value included a $310 thousand 7.25% senior note due 2025. millions December 31, 2018 Occidental 9.250% senior debentures due 2019 $ 116 4.100% senior notes due 2021 1,249 3.125% senior notes due 2022 813 2.600% senior notes due 2022 400 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 3.500% senior notes due 2025 750 3.400% senior notes due 2026 1,150 3.000% senior notes due 2027 750 7.200% senior debentures due 2028 82 8.450% senior debentures due 2029 116 4.625% senior notes due 2045 750 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 Variable rate bonds due 2030 (1.9% as of December 31, 2018) 68 Total borrowings at face value 10,407 Adjustments to book value: Unamortized discount, net (36 ) Debt issuance costs (54 ) Current maturities (116 ) Long-term Debt, net $ 10,201 DEBT ISSUED AND ASSUMED 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 Acquisition. In the Acquisition, Occidental assumed Anadarko debt with an outstanding principal balance of $11.9 billion . In September 2019, Occidental completed its offers to exchange the Anadarko senior notes and debentures assumed as part of the Acquisition 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% , 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 2019, Occidental paid approximately $7.0 billion of long-term debt including a majority of the Term Loans using proceeds from assets sales and available cash. 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 Acquisition. 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. In 2019, Occidental paid average annual facility fees of 0.11% on the total commitment amount. 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. 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. DEBT GUARANTEES As of December 31, 2019 , and 2018, Occidental had provided limited recourse guarantees on approximately $242 million and $244 million , respectively, of Dolphin Energy’s debt, which are limited to certain political and other events. FAIR VALUE OF DEBT 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 values of Occidental’s debt at December 31, 2019 , and 2018 , substantially all of which were classified as Level 1, were approximately $38.8 billion and $10.3 billion , respectively. Occidental’s exposure to changes in interest rates relates primarily to its variable-rate, long-term debt obligations, and is not material. As of December 31, 2019 , and 2018 , variable-rate debt constituted approximately 12% and 1% of Occidental’s total debt, respectively. DEBT MATURITIES At December 31, 2019 , future principal payments on long-term debt aggregated approximately $37.4 billion , of which, $6.4 billion is due in 2021, $4.7 billion is due in 2022, $1.2 billion is due in 2023, and $25.1 billion is due in 2024 and thereafter. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASE COMMITMENTS | NOTE 8 - 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: Ø Leases that commenced before the effective date carried forward their historical lease classification. Ø Existing or expired land easements as of December 31, 2018, were not reassessed to determine whether or not they contained a lease. Ø Leases with a lease term of 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Balance Sheet; however, the lease expenditures recognized are captured and reported as incurred. Ø For asset classes, except long-term drilling rigs, Occidental elected to account for the lease and non-lease components as a single lease component as the non-lease portions were not significant to separate in determining the lease liability. For long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. 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. ACQUISITION IMPACT ASC 805 Business Combinations requires lease-related assets and liabilities acquired to be measured as if the lease were new at the acquisition date. Occidental measured the Anadarko lease agreements using Occidental’s incremental borrowing rates. This resulted in Anadarko assets and lease liabilities of $503 million and $574 million , respectively, excluding the Africa Assets at the Acquisition date, being evaluated and adjusted, as necessary, for above- or below -market impacts. For the leases acquired through the Acquisition, Occidental will retain the previous lease classification. The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Acquisition and recorded on the Consolidated Balance Sheet at the Acquisition date: millions Operating Leases Finance Leases Total 2019 $ 90 $ 7 $ 97 2020 172 17 189 2021 64 16 80 2022 42 13 55 2023 28 8 36 Thereafter 136 43 179 Total lease payments $ 532 $ 104 $ 636 Less: Interest (44 ) (18 ) (62 ) Total lease liabilities (a) $ 488 $ 86 $ 574 (a) Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million , respectively. Additionally, Occidental has elected short-term lease treatment for those acquired lease contracts which, at the Acquisition date, had a remaining lease term of 12 months or less. 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 $217 million , compressors of $162 million and other field equipment of $389 million , which are recorded gross on the Consolidated Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from 2 to 9 years . Further, actual expenditures are netted against joint-interest recoveries on the statement of operations through the normal joint-interest billing process. Occidental’s leases also include pipelines, rail cars, storage facilities, easements and real estate of $659 million , which typically are not associated with joint-interest recoveries. Real estate leases have contract expiration terms ranging from 1 to 14 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 $398 million . The following table presents lease balances and their location on the Consolidated Balance Sheet at December 31, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,385 Finance Property, plant and equipment 397 Total lease assets $ 1,782 Liabilities: Current Operating Current operating lease liabilities $ 569 Finance Current maturities of long-term debt 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 854 Finance Long-term debt, net 347 Total lease liabilities $ 1,821 At December 31, 2019, Occidental’s leases expire based on the following schedule: millions Operating Leases (a) Finance Leases (b) Total 2020 $ 555 $ 53 $ 608 2021 408 45 453 2022 136 41 177 2023 99 37 136 2024 81 34 115 Thereafter 254 275 529 Total lease payments 1,533 485 2,018 Less: Interest (110 ) (87 ) (197 ) Total lease liabilities $ 1,423 $ 398 $ 1,821 (a) The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53% . (b) The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74% . 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: millions Operating Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Acquisition. 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: millions Year ended December 31, 2019 Lease cost classification (a) Operating lease costs (b) Property, plant and equipment, net $ 449 Operating expense and cost of sales 391 Selling, general and administrative expenses 92 Finance lease cost Amortization of ROU assets 19 Interest on lease liabilities 2 Total lease cost $ 953 (a) Amounts reflected are gross before joint-interest recoveries. (b) Included short-term lease cost of $404 million for the twelve months ended December 31, 2019, and variable lease cost of $162 million for the twelve months ended December 31, 2019. millions Year ended December 31, 2019 Operating cash flows $ 262 Investing cash flows $ 112 Financing cash flows (a) $ 19 (a) Excludes cash received of approximately $300 million associated with the failed sale-leaseback, see Note 4 - Acquisitions, Dispositions and Other |
LEASE COMMITMENTS | NOTE 8 - 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: Ø Leases that commenced before the effective date carried forward their historical lease classification. Ø Existing or expired land easements as of December 31, 2018, were not reassessed to determine whether or not they contained a lease. Ø Leases with a lease term of 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Balance Sheet; however, the lease expenditures recognized are captured and reported as incurred. Ø For asset classes, except long-term drilling rigs, Occidental elected to account for the lease and non-lease components as a single lease component as the non-lease portions were not significant to separate in determining the lease liability. For long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. 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. ACQUISITION IMPACT ASC 805 Business Combinations requires lease-related assets and liabilities acquired to be measured as if the lease were new at the acquisition date. Occidental measured the Anadarko lease agreements using Occidental’s incremental borrowing rates. This resulted in Anadarko assets and lease liabilities of $503 million and $574 million , respectively, excluding the Africa Assets at the Acquisition date, being evaluated and adjusted, as necessary, for above- or below -market impacts. For the leases acquired through the Acquisition, Occidental will retain the previous lease classification. The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Acquisition and recorded on the Consolidated Balance Sheet at the Acquisition date: millions Operating Leases Finance Leases Total 2019 $ 90 $ 7 $ 97 2020 172 17 189 2021 64 16 80 2022 42 13 55 2023 28 8 36 Thereafter 136 43 179 Total lease payments $ 532 $ 104 $ 636 Less: Interest (44 ) (18 ) (62 ) Total lease liabilities (a) $ 488 $ 86 $ 574 (a) Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million , respectively. Additionally, Occidental has elected short-term lease treatment for those acquired lease contracts which, at the Acquisition date, had a remaining lease term of 12 months or less. 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 $217 million , compressors of $162 million and other field equipment of $389 million , which are recorded gross on the Consolidated Balance Sheet and in the lease cost disclosures below. Contract expiration terms generally range from 2 to 9 years . Further, actual expenditures are netted against joint-interest recoveries on the statement of operations through the normal joint-interest billing process. Occidental’s leases also include pipelines, rail cars, storage facilities, easements and real estate of $659 million , which typically are not associated with joint-interest recoveries. Real estate leases have contract expiration terms ranging from 1 to 14 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 $398 million . The following table presents lease balances and their location on the Consolidated Balance Sheet at December 31, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,385 Finance Property, plant and equipment 397 Total lease assets $ 1,782 Liabilities: Current Operating Current operating lease liabilities $ 569 Finance Current maturities of long-term debt 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 854 Finance Long-term debt, net 347 Total lease liabilities $ 1,821 At December 31, 2019, Occidental’s leases expire based on the following schedule: millions Operating Leases (a) Finance Leases (b) Total 2020 $ 555 $ 53 $ 608 2021 408 45 453 2022 136 41 177 2023 99 37 136 2024 81 34 115 Thereafter 254 275 529 Total lease payments 1,533 485 2,018 Less: Interest (110 ) (87 ) (197 ) Total lease liabilities $ 1,423 $ 398 $ 1,821 (a) The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53% . (b) The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74% . 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: millions Operating Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Acquisition. 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: millions Year ended December 31, 2019 Lease cost classification (a) Operating lease costs (b) Property, plant and equipment, net $ 449 Operating expense and cost of sales 391 Selling, general and administrative expenses 92 Finance lease cost Amortization of ROU assets 19 Interest on lease liabilities 2 Total lease cost $ 953 (a) Amounts reflected are gross before joint-interest recoveries. (b) Included short-term lease cost of $404 million for the twelve months ended December 31, 2019, and variable lease cost of $162 million for the twelve months ended December 31, 2019. millions Year ended December 31, 2019 Operating cash flows $ 262 Investing cash flows $ 112 Financing cash flows (a) $ 19 (a) Excludes cash received of approximately $300 million associated with the failed sale-leaseback, see Note 4 - Acquisitions, Dispositions and Other |
DERIVATIVES
DERIVATIVES | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | NOTE 9 - DERIVATIVES OBJECTIVE AND STRATEGY Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity-price fluctuations, interest rate risks, transportation commitments, and to fix margins on the future sale of stored commodity volumes. 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. See Note 1 - Summary of Significant Accounting Policies for Occidental’s accounting policy on derivatives. DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS As of December 31, 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 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 2019, Occidental entered into three-way costless collar derivative instruments for 2020 along with 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 terms for the ceiling price that Occidental will receive for the contracted commodity volumes in 2020. Net gains and losses associated with collars and calls are recognized currently in net sales. Occidental had the following collars and calls outstanding at December 31, 2019 : Collars and Calls, not designated as hedges 2020 Settlement Three-way collars (oil MMBBL) 128.1 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement Call options sold (oil MMBBL) 127.8 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 INTEREST RATE SWAPS Occidental acquired interest rate swap contracts in the Acquisition. 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. Occidental also acquired interest rate swap contracts held by WES, which were settled as of December 31, 2019. Net gains and losses associated with interest rate derivative instruments not designated as hedging instruments are recognized currently in gains (losses) on interest rate swaps and warrants, net. Occidental had the following outstanding interest rate swaps at December 31, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 550 September 2016 - 2046 September 2020 6.418 % $ 125 September 2016 - 2046 September 2022 6.835 % $ 100 September 2017 - 2047 September 2020 6.891 % $ 250 September 2017 - 2047 September 2021 6.570 % $ 450 September 2017 - 2047 September 2023 6.445 % 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. Occidental settled interest rate swaps with a notional value of $125 million in October 2019. In January and February 2020, Occidental extended September 2020 mandatory termination dates to September 2021 and September 2022 for swaps with a notional value of $500 million and $150 million , respectively. 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. Due to the liability position of the interest rate derivatives at the date of the Acquisition, the interest rate derivatives in Occidental’s portfolio contain an other-than-insignificant financing element, and therefore, any settlements, collateralization or cash payments related to interest rate derivatives are classified as cash flow from financing activities. Net cash receipts related to settlements, and collateralization of interest rate swap agreements were $120 million during the period from August 8, 2019 through December 31, 2019. 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 $60.60 per barrel and $2.17 per thousand cubic feet (Mcf) for oil and natural gas, respectively, at December 31, 2019. The weighted-average contract price was $58.81 per barrel and $3.18 per Mcf for 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 December 31, 2019, and 2018: 2019 2018 Oil Commodity Contracts Volume (MMBBL) 55 61 Natural gas commodity contracts Volume (Bcf) (128 ) (142 ) THE WARRANT The Warrant issued with the Preferred Stock in connection with the Acquisition 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 Acquisition 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. Occidental occasionally elects cash flow hedge accounting for derivative instruments which are used to fix margins on the future sales of the stored volumes. The amount of cash flow hedges related to stored gas, including the ineffective portion, was immaterial for the years ended December 31, 2019, and 2018. In June 2019, in anticipation of issuing debt in the third quarter to partially finance the cash portion of the Acquisition 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 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 reported at the end of each reporting period. The following table presents the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when derivatives are subject to netting arrangements, and are presented on a net basis in the Consolidated Balance Sheets. millions Fair Value Measurements Using Total Fair Value Balance Sheet Classification Level 1 Level 2 Level 3 Netting (a) December 31, 2019 Oil Collars and Calls Other current assets $ — $ 92 $ — $ — $ 92 Deferred credits and other liabilities - other — (160 ) — — (160 ) Marketing Derivatives Other current assets 945 79 — (973 ) 51 Long-term receivables and other assets, net 4 12 — (4 ) 12 Accrued liabilities (1,008 ) (44 ) — 973 (79 ) Deferred credits and other liabilities - other (4 ) (1 ) — 4 (1 ) Interest Rate Swaps Other current assets — 5 — — 5 Long-term receivables and other assets, net — 5 — — 5 Accrued liabilities — (657 ) — — (657 ) Deferred credits and other liabilities - other — (776 ) — — (776 ) Warrant Deferred credits and other liabilities - other — (107 ) — — (107 ) December 31, 2018 Marketing Derivatives Other current assets $ 2,531 $ 110 $ — $ (2,392 ) $ 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Accrued liabilities (2,357 ) (101 ) — 2,392 (66 ) Deferred credits and other liabilities - other (6 ) (2 ) — 6 (2 ) (a) These amounts do not include collateral. As of December 31, 2019, $104 million of collateral has been netted against derivative liabilities related to interest rate swaps. Occidental had $65 million and $54 million of initial margin deposited with brokers as of December 31, 2019 and 2018, respectively, related to marketing derivatives. GAINS AND LOSSES ON DERIVATIVES The following table presents gains and (losses) related to Occidental’s derivative instruments on the Consolidated Statements of Operations: millions December 31, Income Statement Classification 2019 2018 2017 Oil Collars and Calls Net sales $ (107 ) $ — $ — Marketing Derivatives Net sales (a) 1,804 2,254 (138 ) Interest Rate Swaps (Excluding WES) Gain on interest rate swaps and warrants, net 122 — — Interest Rate Swaps (WES) Gain on interest rate swaps and warrants, net 30 — — Warrant Gain on interest rate swaps and warrants, net 81 — — (a) Included derivative and non-derivative marketing activity. CREDIT RISK The majority of Occidental’s counterparty credit risk is related to the physical delivery of energy commodities to its customers and their inability to meet their settlement commitments. Occidental manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring collateral or other credit risk mitigants, as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits, and monitors credit exposures against those assigned limits. Occidental also enters into future contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk as a significant portion of these transactions settle on a daily margin basis. Certain of Occidental’s OTC derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each party would need to post. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed at December 31, 2019 was $787 million (net of $169 million collateral), primarily related to acquired interest-rate swaps, and $68 million (net of $1 million of collateral) existed at December 31, 2018. |
ENVIRONMENTAL LIABILITIES AND E
ENVIRONMENTAL LIABILITIES AND EXPENDITURES | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
ENVIRONMENTAL LIABILITIES AND EXPENDITURES | NOTE 10 - 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 CERCLA and similar federal, state, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. OPC or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. ENVIRONMENTAL REMEDIATION As of December 31, 2019 , Occidental participated in or monitored remedial activities or proceedings at 177 sites, which included 36 sites assumed through the Acquisition. The following table presents Occidental’s current and non-current environmental remediation liabilities as of December 31, 2019 and 2018 , the current portion of which is included in accrued liabilities ( $162 million in 2019 and $120 million in 2018) and the remainder in deferred credits and other liabilities - environmental remediation liabilities ( $1.04 billion in 2019 and $762 million in 2018). Occidental continues to evaluate the remediation obligations assumed through the Acquisition. Occidental’s environmental remediation sites are grouped into four categories: NPL sites listed or proposed for listing by the EPA on the CERCLA NPL and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. 2019 2018 millions, except number of sites Number of Sites Remediation Balance Number of Sites Remediation Balance NPL sites 36 $ 463 34 $ 458 Third-party sites 74 311 68 168 Occidental-operated sites 17 154 14 115 Closed or non-operated Occidental sites 50 269 29 141 Total 177 $ 1,197 145 $ 882 As of December 31, 2019 , Occidental’s environmental liabilities exceeded $10 million each at 20 of the 177 sites described above, and 101 of the sites had liabilities from $0 to $1 million each. As of December 31, 2019 , three sites — the Diamond Alkali Superfund Site and a former chemical plant in Ohio (both of which are indemnified by Maxus Energy Corporation, as discussed further below), and a landfill in Western New York — accounted for 94 percent of its liabilities associated with NPL sites. Seventeen of the 36 NPL sites are indemnified by Maxus. Six of the 74 third-party sites — a Maxus-indemnified chrome site in New Jersey, a former copper mining and smelting operation in Tennessee, a former oil field, a landfill and a chemical plant in California, and an active refinery in Louisiana where Occidental reimburses the current owner for certain remediation activities — accounted for 75 percent of Occidental’s liabilities associated with these sites. Nine of the 74 third-party sites are indemnified by Maxus. Five sites — oil and gas operations in Colorado and chemical plants in Kansas, Louisiana, New York and Texas — accounted for 67 percent of the liabilities associated with the Occidental-operated sites. Six other sites — a landfill in Western New York, a former refinery in Oklahoma, former chemical plants in California, Tennessee and Washington, and a closed coal mine in Pennsylvania — accounted for 64 percent of the liabilities associated with closed or non-operated Occidental sites. Environmental remediation liabilities vary over time depending on factors such as acquisitions or dispositions, identification of additional sites and remedy selection and implementation. Occidental recorded environmental remediation expenses of $112 million , $47 million and $39 million for the years ended December 31, 2019, 2018 and 2017, respectively. Environmental remediation expenses primarily relate to changes to existing conditions from past operations. Based on current estimates, Occidental expects to expend funds corresponding to approximately 40 percent of the year-end remediation balance over the next three to four years with the remainder over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those amounts currently recorded for environmental remediation for all of its environmental sites could be up to $1.1 billion . 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 June 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in Federal District Court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with 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 remediation liability relating to its estimated allocable share of the costs to perform the design and the remediation called for in the AOC and the ROD, as well as for certain other Maxus-indemnified sites. Occidental’s accrued estimated environmental remediation liability does not consider any recoveries for indemnified costs. Occidental’s ultimate share of the estimated costs may be higher or lower than its accrued remediation liability, and is subject to final design plans and the resolution 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. |
LAWSUITS, CLAIMS, COMMITMENTS A
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES | NOTE 11 - 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. Reserves for matters, other than for environmental remediation, that satisfy this criteria as of December 31, 2019, and December 31, 2018, were not material to Occidental’s Consolidated Balance Sheets. 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 court dismissed the Icahn Complaint. The Icahn Complainants appealed and oral arguments occurred in February 2020. In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental’s Participation Contract for Block 15. The awarded amount represented a recovery of 60 percent of the value of Block 15. In 2017, Andes Petroleum Ecuador Ltd. (Andes) filed a demand for arbitration, claiming it is entitled to a 40 percent share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60 percent economic interest in the block. The merits hearing is scheduled for May 2020. Occidental intends to vigorously defend against this claim in arbitration. The ultimate outcome and impact of outstanding lawsuits, claims and proceedings on Occidental cannot be predicted. Management believes that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on Occidental’s Consolidated Balance 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. Taxable years through 2016 for U.S. federal income tax purposes have been audited by the U.S. 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, all other significant audit matters in foreign jurisdictions have been resolved through 2010. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. For Anadarko, its taxable years through 2016 for U.S. federal and state income tax purposes have been audited by the IRS and respective state taxing authorities. There are outstanding significant audit matters in one foreign jurisdiction. During the course of the tax audit, disputes have arisen and other disputes may arise as to facts and matters of law. Other than the matter discussed below, Occidental believes that the resolution of these outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. Anadarko received an $881 million tentative refund in 2016 related to its $5.2 billion Tronox settlement payment in 2015. In September 2018, Anadarko received a statutory notice of deficiency from the IRS disallowing the net operating loss carryback and rejecting Anadarko’s refund claim. As a result, Anadarko filed a petition with the U.S. Tax Court to dispute the disallowances in November 2018. The case is currently in the IRS appeals process. If the matter is not resolved in the IRS appeals process, Occidental expects to continue pursuing resolution in the U.S. Tax Court. 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 December 31, 2019, Occidental has recorded no tax benefit on the tentative cash tax refund of $881 million . As a result, should Occidental not ultimately prevail on the issue, there would be no additional tax expense recorded for financial statement purposes other than future interest. However, in that event Occidental would be required to repay approximately $925 million ( $898 million federal and $27 million in state taxes) plus accrued interest of approximately $189 million . As a result, a liability for this amount has been recorded in deferred credits and other liabilities - other at December 31, 2019. 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 December 31, 2019, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves. 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. At December 31, 2019 , total purchase obligations were $20.7 billion , which included approximately $3.3 billion in 2020, $5.7 billion in 2021 and 2022, $4.7 billion in 2023 and 2024, and $7.1 billion in 2025 and thereafter. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12 - INCOME TAXES The following summarizes domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes for the years ended December 31: millions 2019 2018 2017 Domestic $ (1,632 ) $ 3,431 $ (609 ) Foreign 1,818 2,177 1,937 Total $ 186 $ 5,608 $ 1,328 The following summarizes components of income tax expense (benefit) on continuing operations for the years ended December 31: millions 2019 2018 2017 Current Federal $ 33 $ (23 ) $ (81 ) State and Local 46 52 11 Foreign 1,641 1,077 806 Total current tax expense $ 1,720 $ 1,106 $ 736 Deferred Federal (130 ) 422 (856 ) State and Local 17 12 23 Foreign (914 ) (63 ) 114 Total deferred tax expense (benefit) $ (1,027 ) $ 371 $ (719 ) Total income tax expense $ 693 $ 1,477 $ 17 The following reconciliation of the U.S federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations for the years ended December 31 is stated as a percentage of income (loss) from continuing operations before income taxes: 2019 2018 2017 U.S. federal statutory tax rate 21 % 21 % 35 % Enhanced oil recovery credit and other general business credits (4 ) (3 ) (9 ) Change in federal income tax rate — — (44 ) Tax (benefit) expense due to reversal of indefinite reinvestment assertion — (2 ) 7 Tax impact from foreign operations 187 11 12 State income taxes, net of federal benefit 28 1 2 Uncertain tax positions 13 — — Transaction costs 19 — — Non-controlling interest (16 ) — — Executive compensation limitation 24 — — Stock warrants (9 ) — — WES loss of control 113 — — Other (3 ) (2 ) (2 ) Worldwide effective tax rate 373 % 26 % 1 % In 2019, Occidental’s worldwide effective tax rate was 373% , which was largely a result of Acquisition-related costs and charges associated with the loss of control of WES for which Occidental received no tax benefit. The tax effects of temporary differences resulting in deferred income taxes at December 31, 2019 , and 2018 were as follows: millions 2019 2018 Deferred tax liabilities Property, plant and equipment differences $ (12,375 ) $ (2,089 ) Equity investments, partnerships and foreign subsidiaries (989 ) (161 ) Gross long-term deferred tax liabilities (13,364 ) (2,250 ) Deferred tax assets Environmental reserves 261 195 Postretirement benefit accruals 441 176 Deferred compensation and benefits 266 170 Asset retirement obligations 906 280 Foreign tax credit carryforwards 4,379 2,356 General business credit carryforwards 443 429 Net operating loss carryforward 692 29 Interest expense carryforward 492 — All other 782 111 Gross long-term deferred tax assets 8,662 3,746 Valuation allowance (4,959 ) (2,403 ) Net long-term deferred tax assets $ 3,703 $ 1,343 Less: Foreign deferred tax asset in long-term receivables and other assets, net $ (56 ) $ — Total deferred income taxes, net $ (9,717 ) $ (907 ) Total deferred tax assets, after valuation allowances, were $3.7 billion and $1.3 billion as of December 31, 2019 , and 2018 , respectively. Occidental expects to realize the recorded deferred tax assets, net of any allowances, through future operating income and reversal of temporary differences. The total deferred tax liabilities were $13.4 billion and $2.3 billion as of December 31, 2019 and 2018, respectively. The increase in net deferred tax liability in 2019 over 2018 is primarily due to the acquisition of Anadarko offset by the generation of interest expense and operating loss carryforwards in 2019. As of December 31, 2019 , Occidental had foreign tax credit carryforwards of $4.4 billion , federal general business credits carryforwards of $404 million , tax-effected foreign net operating loss carryforwards of $209 million , tax-effected state operating loss carryforwards of $292 million and state tax credit carryforwards of $39 million . These carryforward balances have varying carryforward periods through 2039. Occidental has recorded a valuation allowance for all of the foreign tax credit carryforwards, $240 million of the tax-effected state net operating loss carryforwards $32 million of the state tax credit carryforwards and all of the tax-effected foreign net operating loss carryforwards. A deferred tax liability has not been recognized for temporary differences related to unremitted earnings of certain consolidated international subsidiaries aggregating approximately $889 million at December 31, 2019, as it is Occidental’s intention to reinvest such earnings indefinitely. If the earnings of these international subsidiaries were not indefinitely reinvested, an additional deferred tax liability of approximately $206 million would be required. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: millions 2019 2018 2017 Balance at January 1 $ — $ 22 $ 22 Increase related to Anadarko Acquisition 2,143 — — Increases related to current-year positions 30 — — Settlements — (22 ) — Balance at December 31 $ 2,173 $ — $ 22 The December 31, 2019 balance of unrecognized tax benefits of $2.2 billion included potential benefits of $2.0 billion of which, if recognized, $1.7 billion would affect the effective tax rate on income. Also included are benefits of $131 million related to tax positions for which the ultimate deductibility is highly certain, but the timing of such deductibility is uncertain. Occidental records estimated potential interest and penalties related to liabilities for unrecognized tax benefits in the provisions for domestic and foreign income taxes. The Company accrued approximately $199 million of interest related to liabilities for unrecognized tax benefits as of December 31, 2019. During 2019, Occidental recorded interest related to liabilities for unrecognized tax benefits of $30 million . There were no interest and penalties associated with liabilities for unrecognized tax benefits recorded for the years ended December 31, 2018 and 2017. Over the next 12 months , it is reasonably possible that the total amount of unrecognized tax benefits could decrease by $100 million to $110 million due to settlements with taxing authorities or lapse in statutes of limitation. Occidental has recognized $86 million and $68 million in federal and state income tax receivables at December 31, 2019, and 2018, respectively, which was recorded in other current assets. In addition, Occidental has recognized $36 million and $68 million in federal alternative minimum tax non-current receivables at December 31, 2019, and 2018, respectively, which was recorded in long-term receivables and other assets, net. Occidental is subject to audit by various tax authorities in varying periods. See Note 11 - Lawsuits, Claims, Commitments and Contingencies for a discussion of these matters. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | NOTE 13 - STOCKHOLDERS’ EQUITY The following is a summary of common stock issuances: Shares in thousands Common Stock Balance, December 31, 2016 892,215 Issued 1,252 Options exercised and other, net 2 Balance, December 31, 2017 893,469 Issued 1,628 Options exercised and other, net 19 Balance, December 31, 2018 895,116 Issued in the ordinary course 3,188 Issued as part of the Acquisition (a) 146,131 Balance, December 31, 2019 1,044,435 (a) Included approximately 2 million shares of common stock issued to a benefits trust for former Anadarko employees treated as treasury stock at December 31, 2019. TREASURY STOCK The total number of shares authorized for Occidental’s share repurchase program is 185 million shares of which 44.2 million may yet be purchased under the repurchase program. However, the program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time. In 2019, 2.7 million shares were purchased at an average price of $66.94 under the program and in 2018, 16.9 million shares were purchased at an average price of $74.92 . No shares were purchased under the program in 2017. Additionally, Occidental purchased shares from the trustee of its defined contribution savings plan during each year. As of December 31, 2019 , 2018 and 2017 , treasury stock shares numbered 150.3 million, 145.7 million , and 128.4 million , respectiv ely. PREFERRED STOCK 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 Acquisition, Occidental issued 100,000 shares of series A preferred stock (the Preferred Stock), having a face value of $100,000 per share and a liquidation preference of $105,000 per share plus unpaid accrued dividends. In connection with the preferred stock issuance, Occidental also issued the Warrant. The holder of the Warrant and the Preferred Stock may redeem the Preferred Stock as payment for the exercise price of the Warrant in lieu of cash payment upon exercise. The Preferred Stock is redeemable at Occidental’s option after the 10th anniversary of issuance. 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. In January 2020, Occidental paid $200 million in Preferred Stock dividends. At December 31, 2019 , Occidental had 100,000 shares of preferred stock issued and outstanding, and none were outstanding in 2018 and 2017 . EARNINGS PER SHARE The following table presents the calculation of basic and diluted earnings per share for the years ended December 31: millions except per share amounts 2019 2018 2017 Income (loss) from continuing operations $ (507 ) $ 4,131 $ 1,311 Loss from discontinued operations (15 ) — — Net income (loss) $ (522 ) $ 4,131 $ 1,311 Less: Net income attributable to noncontrolling interest (145 ) — — Less: Preferred stock dividends (318 ) — — Net income (loss) attributable to common stock $ (985 ) $ 4,131 $ 1,311 Less: Net income allocated to participating securities — (17 ) (6 ) Net income (loss), net of participating securities $ (985 ) $ 4,114 $ 1,305 Weighted-average number of basic shares 809.5 761.7 765.1 Basic earnings (loss) per common share $ (1.22 ) $ 5.40 $ 1.71 Net income (loss), net of participating securities $ (985 ) $ 4,114 $ 1,305 Weighted-average number of basic shares 809.5 761.7 765.1 Dilutive securities — 1.6 0.8 Total diluted weighted-average common shares 809.5 763.3 765.9 Diluted earnings (loss) per common share $ (1.22 ) $ 5.39 $ 1.70 ACCUMULATED OTHER COMPREHENSIVE LOSS Accumulated other comprehensive loss consisted of the following after-tax amounts at December 31: millions 2019 2018 Foreign currency translation adjustments $ (7 ) $ (7 ) Unrealized gains (losses) on derivatives (122 ) 5 Pension and postretirement adjustments (a) (92 ) (170 ) Total $ (221 ) $ (172 ) (a) See Note 15 - Retirement and Postretirement Benefit Plans for further information. |
STOCK-BASED INCENTIVE PLANS
STOCK-BASED INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED INCENTIVE PLANS | NOTE 14 - STOCK-BASED INCENTIVE PLANS Occidental issues stock-based awards to employees in accordance with the terms of the shareholder approved 2015 Long-Term Incentive Plan (2015 LTIP). An aggregate of 80 million shares of Occidental common stock were authorized for issuance and approximately 6.6 million shares had been allocated to employee awards through December 31, 2019 . As of December 31, 2019 , approximately 52.5 million shares were available for grants of future awards. The plan requires each share covered by an award (other than options) to be counted as if three shares were issued in determining the number of shares that are available for future awards. Accordingly, the number of shares available for future awards may be less than 52.5 million depending on the type of award granted, and shares available for future awards may increase by the number of shares that are forfeited, canceled, or correspond to the portion of any stock-based awards settled in cash, including awards that were issued under a previous plan that remain outstanding. Current outstanding awards include RSUs, stock options, CROCEIs, and TSRIs. During 2019 , non-employee directors were granted awards for 41,752 shares of common stock. Compensation expense for these awards was measured using the closing quoted market price of Occidental’s common stock on the grant date and was fully recognized at that time. For the year ended December 31, 2019, Occidental incurred expenses of $208 million related to stock-based incentive plans, of which $31 million was related to the Acquisition. For the years ended December 31, 2018, and 2017, expense related to stock-based incentive plans was $180 million , and $150 million , respectively. The income tax benefit associated with this expense was $43 million , $47 million , and $32 million in the years ended December 31, 2019, 2018, and 2017, respectively. As of December 31, 2019 , unrecognized compensation expense for all unvested stock-based incentive awards was $354.1 million . This expense is expected to be recognized over a weighted-average period of 1.9 years . Occidental accounts for forfeitures as they occur. RSUs Certain employees are awarded the right to receive RSUs, some of which have performance criteria, and are in the form of, or equivalent in value to, actual shares of Occidental common stock. Depending on their terms, RSUs may be settled in stock or may be cash settled liabilities. These awards vest from one to 4 years following the grant date, however, certain of the RSUs are forfeitable if performance objectives are not satisfied by the seven th anniversary of the grant date. For certain RSUs, dividend equivalents are paid during the vesting period. CASH-SETTLED LIABILITY AWARDS The weighted-average, grant-date fair values of cash-settled RSUs granted in 2019 , 2018 and 2017 were $42.62 , $75.86 , and $66.62 per share, respectively. Cash-Settled RSUs resulted in payments of $4 million , $18 million , and $23 million , during the years ended December 31, 2019 , 2018 and 2017 , respectively. STOCK-SETTLED EQUITY AWARDS The weighted-average, grant-date fair values of the stock-settled RSUs granted in 2019 , 2018 , and 2017 were $58.73 , $69.87 , and $67.21 , respectively. The fair value of RSUs settled in shares during the years ended December 31, 2019 , 2018 and 2017 was $148 million , $109 million , and $64 million , respectively. A summary of changes in Occidental’s unvested cash- and stock-settled RSUs during the year ended December 31, 2019 , is presented below: Cash-Settled Stock-Settled thousands, except fair values RSUs Weighted-Average RSUs Weighted-Average Unvested at January 1 186 $ 73.93 3,971 $ 73.19 Granted (a) 4,267 $ 42.62 3,543 $ 58.73 Vested (67 ) $ 72.26 (2,743 ) $ 67.04 Forfeitures (39 ) $ 47.60 (376 ) $ 67.25 Unvested at December 31 4,347 $ 43.46 4,395 $ 65.88 (a) Included 1.5 million shares issued in exchange for Anadarko stock-based incentive shares. TSRIs Certain executives are awarded TSRIs that vest at the end of a three -year period following the grant date. Payout is based upon Occidental’s absolute total shareholder return and performance relative to its peers. TSRIs have payouts that range from 0% to 200% of the target award and settle in stock once certified. Dividend equivalents for TSRIs are accumulated and paid upon certification of the award. The fair value of TSRIs settled in shares during the years ended December 31, 2019 , 2018 and 2017 was $4 million , $12 million , and $5 million , respectively. The fair values of TSRIs are initially determined on the grant date using a Monte Carlo simulation model based on Occidental’s assumptions, noted in the following table, and the volatility from corresponding peer group companies. The expected life is based on the vesting period (Term). The risk-free interest rate is the implied yield available on zero coupon T-notes (U.S. Treasury Strip) at the time of grant with a remaining term equal to the Term. The dividend yield is the expected annual dividend yield over the Term, expressed as a percentage of the stock price on the grant date. Estimates of fair value may not accurately predict the value ultimately realized by the employees who receive the awards, and the ultimate value may not be indicative of the reasonableness of the original estimates of fair value made by Occidental. The grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs were as follows: TSRIs 2019 2018 2017 Assumptions used: Risk-free interest rate 2.5 % 2.3 % 1.5 % Volatility factor 22 % 24 % 25 % Expected life (years) 3 3 3 Grant-date fair value of underlying Occidental common stock $ 67.19 $ 69.87 $ 67.21 A summary of Occidental’s unvested TSRIs as of December 31, 2019 and changes during the year ended December 31, 2019 is presented below: TSRIs thousands, except fair values Awards Weighted-Average Unvested at January 1 1,444 $ 70.97 Granted 578 $ 67.19 Vested (a) (442 ) $ 76.83 Forfeitures (43 ) $ 76.83 Unvested at December 31 1,537 $ 67.70 (a) Presented at the target payouts. The weighted-average payout at vesting was 19% of the target, resulting in the issuance of approximately 83,000 shares of Occidental common stock. STOCK OPTIONS Certain employees have been granted options that are settled in stock. Exercise prices of the options were equal to the quoted market value of Occidental’s stock on the grant date. No options were granted, vested or forfeited in 2019. The intrinsic value of options exercised during the years ended December 31, 2019 , 2018, and 2017 was insignificant . As of December 31, 2019 , there were 530,000 fully vested options outstanding with an exercise price of $79.98 per share and a remaining life of 2.1 years . CROCEI, ROCEI and ROAI Certain executives are awarded CROCEI, ROCEI or ROAI awards that vest at the end of a three -year period if performance targets based on cash return on capital employed, return on capital employed, or return on assets are certified as being met. These awards are settled in stock upon certification of the performance target, with payouts that range from 0% to 200% of the target award. Dividend equivalents are accumulated and paid upon certification of the award. CROCEI, ROCEI, and ROAI thousands, except fair values Awards Weighted-Average Unvested at January 1 210 $ 71.60 Granted 81 $ 67.19 Vested (a) (137 ) $ 72.54 Forfeited — — Unvested at December 31 154 $ 68.44 (a) Presented at the target payouts. The weighted-average payout at vesting was 86% of the target resulting in the issuance of approximately 118,000 |
RETIREMENT AND POSTRETIREMENT B
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | NOTE 15 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS Occidental has various benefit plans for its salaried, domestic union and nonunion hourly, and certain foreign national employees. In conjunction with the Acquisition, 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 Acquisition date. The remeasurement resulted in an increase to the benefit obligation of $193 million . The disclosures below exclude the plans related to the Africa Assets classified as held for sale as of December 31, 2019. During the third quarter of 2018, Occidental adopted a postretirement benefit plan design change, which replaced the previous self-insured benefit with a Medicare Advantage PPA plan for Medicare-eligible retirees. As a result of this change, the postretirement benefit obligation was remeasured as of August 31, 2018. The remeasurement resulted in a decrease to the benefit obligation of $178 million with a corresponding offset to accumulated other comprehensive income. DEFINED CONTRIBUTION PLANS All domestic employees and certain foreign national employees are eligible to participate in one or more of the defined contribution retirement or savings plans that provide for periodic contributions by Occidental based on plan-specific criteria, such as base pay, level and employee contributions. Certain salaried employees participate in a supplemental retirement plan that restores benefits lost due to governmental limitations on qualified retirement benefits. The accrued liabilities for the supplemental retirement plan were $279 million and $201 million as of December 31, 2019 , and 2018 , respectively, and Occidental expensed $211 million in 2019 , $152 million in 2018 and $130 million in 2017 under the provisions of these defined contribution and supplemental retirement plans. DEFINED BENEFIT PLANS Participation in defined benefit plans is limited. Approximately 4,000 domestic and 600 foreign national employees, mainly union, nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently accruing benefits under these plans. Pension costs for Occidental’s defined benefit pension plans, determined by independent actuarial valuations, are generally funded by payments to trust funds, which are administered by independent trustees. POSTRETIREMENT AND OTHER BENEFIT PLANS Occidental provides medical and dental benefits and life insurance coverage for certain active, retired and disabled employees and their eligible dependents. Occidental generally funds the benefits as they are paid during the year. These benefit costs, including the postretirement costs, were approximately $220 million in 2019 , $182 million in 2018 and $181 million in 2017 . OBLIGATIONS AND FUNDED STATUS The following tables show the amounts recognized in Occidental’s consolidated balance sheets at December 31, 2019 and 2018, related to its pension and postretirement benefit plans: Pension Benefits Postretirement Benefits millions 2019 2018 2019 2018 Amounts recognized in the consolidated balance sheet: Long-term receivables and other assets, net $ 85 $ 60 $ — $ — Accrued liabilities (96 ) (25 ) (72 ) (45 ) Deferred credits and other liabilities — pension and postretirement obligations (704 ) (46 ) (1,103 ) (763 ) $ (715 ) $ (11 ) $ (1,175 ) $ (808 ) Accumulated other comprehensive loss included the following after-tax balances: Net (gain) loss $ (25 ) $ 91 $ 184 $ 151 Prior service credit — — (67 ) (72 ) $ (25 ) $ 91 $ 117 $ 79 The following tables show the funding status, obligations and plan asset fair values of Occidental related to its pension and postretirement benefit plans for the years ended December 31: Pension Benefits Postretirement Benefits millions 2019 2018 2019 2018 Changes in the benefit obligation: Benefit obligation — beginning of year $ 349 $ 391 $ 808 $ 999 Service cost — benefits earned during the period 45 5 24 23 Interest cost on projected benefit obligation 39 15 36 34 Actuarial (gain) loss (33 ) (19 ) 45 (90 ) Foreign currency exchange rate gain — (3 ) — — Curtailment (gain) loss (136 ) — 10 — Special termination benefits 49 — — — Benefits paid (95 ) (40 ) (51 ) (57 ) Participant contributions — — 2 — Plan amendments — — — (101 ) Additions due to the Acquisition 2,136 — 301 — Benefit obligation — end of year $ 2,354 $ 349 $ 1,175 $ 808 Changes in plan assets: Fair value of plan assets — beginning of year $ 338 $ 403 $ — $ — Actual return on plan assets 122 (33 ) — — Participant contributions — — 2 — Employer contributions 41 8 49 — Benefits paid (95 ) (40 ) (51 ) — Additions due to the Acquisition 1,233 — — — Fair value of plan assets — end of year $ 1,639 $ 338 $ — $ — Unfunded status: $ (715 ) $ (11 ) $ (1,175 ) $ (808 ) The following table sets forth details of the obligations and assets of Occidental’s defined benefit pension plans for the years December 31: Accumulated Benefit Obligation in Excess of Plan Assets Plan Assets in Excess of Accumulated Benefit Obligation millions 2019 2018 2019 2018 Projected benefit obligation $ 2,175 $ 173 $ 179 $ 176 Accumulated benefit obligation $ 1,918 $ 169 $ 179 $ 176 Fair value of plan assets $ 1,375 $ 98 $ 264 $ 240 COMPONENTS OF NET PERIODIC BENEFIT COST The following table sets forth the components of net periodic benefit costs for the years ended December 31: Pension Benefits Postretirement Benefits millions 2019 2018 2017 2019 2018 2017 Net periodic benefit costs: Service cost — benefits earned during the period $ 45 $ 5 $ 6 $ 24 $ 23 $ 21 Interest cost on projected benefit obligation 39 15 17 36 34 38 Expected return on plan assets (50 ) (25 ) (24 ) — — — Recognized actuarial loss 9 7 10 8 14 14 Recognized prior service credit — — — (8 ) — — Liability (gain) loss due to curtailment (91 ) — — 6 — — Special termination benefits 49 — — — — — Other costs and adjustments (2 ) 1 3 — (2 ) 1 Net periodic benefit cost $ (1 ) $ 3 $ 12 $ 66 $ 69 $ 74 The service cost component of net periodic benefit cost is included in selling, general and administrative, oil and gas operating expense, chemical and midstream costs, and exploration expense on Occidental’s Consolidated Statements of Operations. All other components of net periodic benefit cost are included in other operating and non-operating expense. The estimated net loss and prior service cost for the defined benefit pension plans that will be amortized from Accumulated Other Comprehensive Income (AOCI) into net periodic benefit cost over the next fiscal year are $3 million and zero , respectively. The estimated net loss and prior service credit for the defined benefit postretirement plans that will be amortized from AOCI into net periodic benefit cost over the next fiscal year are $12 million and $(8) million , respectively. ADDITIONAL INFORMATION The following table sets forth the weighted-average assumptions used to determine Occidental’s benefit obligation and net periodic benefit cost for domestic plans for the years ended December 31: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Benefit Obligation Assumptions: Discount rate 3.10 % 4.09 % 3.26 % 4.29 % Net Periodic Benefit Cost Assumptions: Discount rate for January 1 - August 31 expense 3.21 % 3.45 % 3.41 % 3.61 % Discount rate for September 1 - December 31 expense 3.21 % 3.45 % 3.41 % 4.14 % Assumed long-term rate of return on assets 6.50 % 6.50 % — — Rates of increase in compensation levels 5.44 % — — — For domestic pension plans and postretirement benefit plans, Occidental based the discount rate on AA-AAA Universe yield curve in 2019 and 2018. The assumed long-term rate of return on assets is estimated with regard to current market factors but within the context of historical returns for the asset mix that exists at year end. Assumed rates of compensation increases for active participants in certain plans and vary by age group. In 2019, Occidental adopted the Society of Actuaries 2019 Pri-2012 Private Retirement Plans Mortality Tables with Mortality Improvement Scale, which updated the mortality assumptions that private defined-benefit plans in the United States use in the actuarial valuations that determine a plan sponsor’s pension obligations. The new mortality assumption reflects additional data that the Social Security Administration has released since the previous mortality tables and improvement scales were released. This additional data shows a lower degree of mortality improvement than previously reflected. The changes in the mortality assumption results in a decrease of $15 million and $9 million in the pension and postretirement benefit obligation, respectively, at December 31, 2019. For pension plans outside the United States, Occidental based its discount rate on rates indicative of government or investment grade corporate debt in the applicable country, taking into account hyperinflationary environments when necessary. The discount rates used for the foreign pension plans ranged from 1.0% to 8.8% at December 31, 2019 and from 1.0% to 8.9% at December 31, 2018. The average rate of increase in future compensation levels ranged from 1.0% to 8.0% in 2019, depending on local economic conditions. The postretirement benefit obligation was determined by application of the terms of medical and dental benefits and life insurance coverage, including the effect of established maximums on covered costs, together with relevant actuarial assumptions and health care cost trend rates. Health care cost trend rates for Medicare advantaged prescription drug (MAPD) plans of 4.3% to 21.5% in 2019, between (7.7)% and (6.2)% in 2020, 9.6% in 2021, then grading down to 4.5% in 2028 and beyond. The negative trend rates for the MAPD plans reflect the repeal of the Health Insurer Fee effective in 2021. Health care cost trend rates used for non-MAPD plans are 6.7% to 7.5% in 2019, then grading down to 4.5% in 2028 and beyond. A 1% increase or a 1% decrease in these assumed health care cost trend rates would result in an increase of $131 million or a reduction of $103 million , respectively, in the postretirement benefit obligation and increase of $13 million or a reduction of $9 million in the annual service and interest costs as of December 31, 2019. The actuarial assumptions used could change in the near term as a result of changes in expected future trends and other factors that, depending on the nature of the changes, could cause increases or decreases in the plan assets and liabilities. FAIR VALUE OF PENSION PLAN ASSETS Pension plan assets are monitored by Occidental’s Pension and Retirement Trust and Investment Committee or by the Investment Subcommittee of the Anadarko Petroleum Corporation Administrative & Investment Committee (collectively, the Investment Committees), in their roles as fiduciaries. The Investment Committees select and employ various external professional investment management firms to manage specific investments across the spectrum of asset classes. The Investment Committees employ a total return investment approach that uses a diversified blend of investments across several categories (equity securities, fixed-income securities, real estate, hedge funds, and private equity) to optimize the long-term return of plan assets at a prudent level of risk. Equity investments are diversified across U.S. and non-U.S. stocks, as well as differing styles and market capitalizations. Investment performance is measured and monitored on an ongoing basis through quarterly investment portfolio and manager guideline compliance reviews, annual liability measurements and periodic studies. The fair values of Occidental’s pension plan assets by asset category were as follows: millions Level 1 Level 2 Level 3 Total December 31, 2019 Asset Class: U.S. government securities $ 13 $ — $ — $ 13 Corporate bonds (a) — 60 — 60 Mutual funds: Bond funds 46 — — 46 International funds 68 — — 68 Common and preferred stocks (b) 173 — — 173 Other — 29 — 29 Investments measured at fair value $ 300 $ 89 $ — $ 389 Investments measured at net asset value (c) — — — 1,253 Total pension plan assets (d) $ 300 $ 89 $ — $ 1,642 December 31, 2018 Asset Class: U.S. government securities $ 17 $ — $ — $ 17 Corporate bonds (a) — 66 — 66 Common/collective trusts (e) — 9 — 9 Mutual funds: Bond funds 31 — — 31 Blend funds 48 — — 48 Common and preferred stocks (b) 141 — — 141 Other — 31 — 31 Total pension plan assets (d) $ 237 $ 106 $ — $ 343 (a) This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries. (b) This category included investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities. (c) This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries. (d) Certain investments measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. (e) Amounts exclude net payables of approximately $3 million and $5 million as of December 31, 2019 and 2018 , respectively. Occidental expects to contribute $179 million in cash to its defined benefit pension plans during 2020 . Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows for the years ended December 31: millions Pension Benefits Postretirement Benefits 2020 $ 810 $ 73 2021 $ 113 $ 72 2022 $ 125 $ 71 2023 $ 128 $ 70 2024 $ 124 $ 68 2025 - 2029 $ 625 $ 321 |
INVESTMENTS AND RELATED-PARTY T
INVESTMENTS AND RELATED-PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2019 | |
Investments And Related Party Transactions Disclosure [Abstract] | |
INVESTMENTS AND RELATED-PARTY TRANSACTIONS | NOTE 16 - INVESTMENTS AND RELATED-PARTY TRANSACTIONS EQUITY INVESTMENTS As of December 31, 2019 , and 2018 , investments in unconsolidated entities were $6.4 billion and $1.7 billion , respectively. As of December 31, 2019 , Occidental’s significant equity investments primarily consisted of the following: millions % Interest Carrying amount WES 56.3 % $ 5,128 OxyChem Ingleside Facility 50.0 % 679 Dolphin Energy Limited 24.5 % 240 Other various 342 Total $ 6,389 As of December 31, 2018, Occidental’s significant equity investments consisted of investments in Plains, OxyChem Ingleside Facility and Dolphin Energy Limited. In September 2019, Occidental sold its equity investment in Plains, which consisted of an 11 percent interest in the general partner that owned approximately 40 percent in Plains Pipeline. See Note 4 - Acquisitions, Dispositions, and Other Transactions for additional information. As part of the Acquisition, Occidental acquired equity investments in certain oil and gas properties and gathering and processing assets and assumed an associated notes payable which Occidental has the legal right of setoff and intends to net settle with its ownership interest in the equity investments. The notes payable can be net settled starting in 2022. The carrying value of the investment and note payable was $2.8 billion and $2.8 billion at December 31, 2019, respectively. Accordingly, the equity investments and the related notes payable are presented net on the Consolidated Balance Sheets. Dividends received from equity investments were $422 million , $329 million , and $297 million to Occidental in 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , cumulative undistributed earnings of equity-method investees since they were acquired was immaterial. As of December 31, 2019 , Occidental’s investments in equity investees exceeded the underlying equity in net assets by approximately $3.6 billion , of which $1.5 billion represented goodwill and the remainder comprised intangibles amortized over their estimated useful lives. The following table presents the summarized financial information of its equity-method investments combined for the years ended and as of December 31: millions 2019 2018 2017 Summarized Results of Operations (a) Revenues and other income $ 26,520 $ 28,091 $ 13,843 Costs and expenses 24,084 25,029 12,230 Net income $ 2,436 $ 3,062 $ 1,613 Summarized Balance Sheet (b) Current assets $ 1,130 $ 5,587 $ 5,754 Non-current assets $ 21,158 $ 25,871 $ 25,108 Current liabilities $ 785 $ 4,879 $ 4,479 Long-term debt $ 8,673 $ 12,505 $ 14,091 Other non-current liabilities $ 859 $ 95 $ 414 Stockholders’ equity $ 11,971 $ 13,979 $ 11,878 (a) The 2019 Summarized Results of Operations include results of Plains for the period beginning January 1, 2019 through the date Occidental ’ s interest was sold in September 2019. (b) The 2019 Summarized Balance Sheet included the balance of WES due to the loss of control on December 30, 2019 and excluded the balances of Plains as the interest was sold in September 2019. RELATED-PARTY TRANSACTIONS From time to time, Occidental purchases oil, NGL, power, steam and chemicals from and sells oil, NGL, natural gas, chemicals and power to certain of its equity investees and other related parties. During 2019 , 2018 and 2017 , Occidental entered into the following related-party transactions and had the following amounts due from or to its related parties for the years ended December 31: millions 2019 2018 2017 Sales (a,c) $ 691 $ 805 $ 636 Purchases (b,c) $ 463 $ 502 $ 387 Services $ 28 $ 52 $ 38 Advances and amounts due from related parties $ 133 $ 63 $ 63 Amounts due to related parties (d) $ 463 $ 46 $ 45 (a) In 2019 , 2018 and 2017 , sales of Occidental-produced oil and NGL to Plains Pipeline affiliates accounted for 87 percent , 89 percent and 86 percent of these totals, respectively. In September 2019, Occidental sold its remaining interest in Plains Pipeline. (b) In 2019 and 2018 , purchases of ethylene from the Ingleside ethylene cracker accounted for 98 percent of related-party purchases, respectively. (c) Excluded sales to and purchases from WES as it was a consolidated subsidiary from the date of the Acquisition through December 31, 2019. (d) Amounts due to related parties at December 31, 2019 primarily consists of a 6.5% note payable to WES due 2038. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 17 - FAIR VALUE MEASUREMENTS 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 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 financial statements. The following tables provide fair value measurement information for assets and liabilities that are measured on a recurring basis: millions Fair Value Measurements Using Total Fair Value Balance Sheet Classification Level 1 Level 2 Level 3 Netting December 31, 2019 Embedded Derivatives Accrued liabilities $ — $ 40 $ — $ — $ 40 Deferred credits and other liabilities - other $ — $ 49 $ — $ — $ 49 December 31, 2018 Embedded Derivatives Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other $ — $ 116 $ — $ — $ 116 FAIR VALUES – NONRECURRING During 2019, Occidental measured assets and liabilities at acquisition-date fair value on a nonrecurring basis related to the Acquisition. See Note 3 - The Acquisition for more detail. In 2019, Occidental recorded a $1 billion charge as a result of recording Occidental’s equity investment in WES at fair value upon loss of control, see Note 1 - Summary of Significant Accounting Policies . Additionally, 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 $39 million related to Occidental’s mutually agreed early termination of its Qatar ISSD contract. During 2018, Occidental recognized pre-tax impairment and related charges of $416 million primarily related to Qatar 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. During 2017, Occidental recognized pre-tax impairment charges of $397 million primarily related to held for sale non-core proved and unproved Permian acreage. Assumptions for proved and unproved properties classified as held for sale include estimated third-party prices to be received based on recent transactions of similar acreage. FINANCIAL INSTRUMENTS FAIR VALUE The carrying amounts of cash, cash equivalents, restricted cash and restricted cash equivalents and other on-balance sheet financial instruments, other than fixed-rate debt, approximate fair value. See Note 7 - Long-term Debt for the fair value of Long-term debt. |
INDUSTRY SEGMENTS AND GEOGRAPHI
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS | NOTE 18 - INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) marketing and midstream. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-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. Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash and restricted cash, certain corporate receivables and PP&E. millions Oil and Gas Chemical Marketing and Midstream Corporate and Eliminations Total Year ended December 31, 2019 Net sales $ 13,423 $ 4,102 $ 4,132 $ (1,264 ) $ 20,393 Income (loss) from continuing operations before income taxes $ 2,352 (a) $ 799 $ 241 (b) $ (3,206 ) (c) $ 186 Income tax expense — — — (693 ) (d) (693 ) Income (loss) from continuing operations $ 2,352 $ 799 $ 241 $ (3,899 ) $ (507 ) Investments in unconsolidated entities $ 181 $ 689 $ 5,519 $ — $ 6,389 Property, plant and equipment additions (e) $ 5,559 $ 272 $ 475 $ 135 $ 6,441 Depreciation, depletion and amortization $ 4,994 $ 368 $ 563 $ 56 $ 5,981 Total assets $ 77,936 $ 4,361 $ 17,055 $ 9,978 $ 109,330 Year ended December 31, 2018 Net sales $ 10,441 $ 4,657 $ 3,656 $ (930 ) $ 17,824 Income (loss) from continuing operations before income taxes $ 2,442 (a) $ 1,159 $ 2,802 (b) $ (795 ) (c) $ 5,608 Income tax expense — — — (1,477 ) (d) (1,477 ) Income (loss) from continuing operations $ 2,442 $ 1,159 $ 2,802 $ (2,272 ) $ 4,131 Investments in unconsolidated entities $ — $ 733 $ 947 $ — $ 1,680 Property, plant and equipment additions (e) $ 4,443 $ 277 $ 221 $ 79 $ 5,020 Depreciation, depletion and amortization $ 3,254 $ 354 $ 331 $ 38 $ 3,977 Total assets $ 24,874 $ 4,359 $ 11,087 $ 3,534 $ 43,854 Year ended December 31, 2017 Net sales $ 7,870 $ 4,355 $ 1,157 $ (874 ) $ 12,508 Income (loss) from continuing operations before income taxes $ 1,111 (a) $ 822 $ 85 (b) $ (690 ) (c) $ 1,328 Income tax expense — — — (17 ) (d) (17 ) Income (loss) from continuing operations $ 1,111 $ 822 $ 85 $ (707 ) $ 1,311 Investments in unconsolidated entities $ — $ 771 $ 739 $ 5 $ 1,515 Property, plant and equipment additions (e) $ 2,968 $ 323 $ 296 $ 64 $ 3,651 Depreciation, depletion and amortization $ 3,269 $ 352 $ 340 $ 41 $ 4,002 Total assets $ 23,595 $ 4,364 $ 11,775 $ 2,292 $ 42,026 (a) The 2019 amount included a net gain on sale of $475 million related to Occidental’s joint venture with Ecopetrol in the Midland Basin and sale of real estate assets, a $285 million impairment charge associated with domestic undeveloped leases that were set to expire in the near term, where Occidental had no plans to pursue exploration activities, and a $39 million charge related to Occidental’s mutually agreed early termination of its Qatar ISSD contract. The 2018 amount included $416 million for the impairment of proved oil properties and inventory in Qatar ISND and ISSD due to the decline in oil prices. The 2017 amount included pre-tax asset sale gains of $655 million primarily related to South Texas and non-core acreage in the Permian basin and $397 million for the impairment of non-core proved and unproved Permian acreage. (b) The 2019 amount included a $1 billion charge as a result of recording Occidental’s investment in WES at fair value as of December 31, 2019 upon the loss of control, a $114 million gain on the sale of an equity investment in Plains and a $30 million mark-to-market gain on an interest rate swap for WES. The 2018 amount included pre-tax asset sale gains of $907 million on the sale of non-core domestic midstream assets. The 2017 amount included pre-tax charges of $120 million related to asset impairments of idled facilities. (c) The 2019 amount included corporate transactions related to the Acquisition including charges of $1.0 billion related to employee severance and related costs, $401 million related to crucial seismic data and $213 million for bank, legal and consulting fees. There were no significant corporate transactions and events affecting 2018 and 2017 results. The tax effect of these pre-tax adjustments was a $245 million benefit in 2019, and $198 million expense and $392 million expense in 2018 and 2017, respectively. (d) Included all foreign and domestic income taxes from continuing operations. (e) Included capital expenditures and capitalized interest, but excluded acquisition and disposition of assets. GEOGRAPHIC AREAS Property, plant and equipment, net millions 2019 2018 2017 United States $ 72,808 $ 23,594 $ 22,863 International United Arab Emirates 3,887 4,051 4,241 Oman 2,115 2,048 1,962 Colombia 1,010 927 807 Qatar 562 741 1,236 Other International 87 76 65 Total International 7,661 7,843 8,311 Total $ 80,469 $ 31,437 $ 31,174 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts Occidental Petroleum Corporation and Subsidiaries Additions millions Balance at Beginning of Period Charged to Costs and Expenses Charged to Other Accounts Deductions (a) Balance at End of Period 2019 Allowance for doubtful accounts $ 668 $ 126 $ (6 ) $ — $ 788 (b) Environmental, litigation and other reserves $ 994 $ 182 $ 1,408 $ (173 ) $ 2,411 (c) 2018 Allowance for doubtful accounts $ 594 $ 77 $ (3 ) $ — $ 668 (b) Environmental, litigation, tax and other reserves $ 935 $ 140 $ 85 $ (166 ) $ 994 (c) 2017 Allowance for doubtful accounts $ 558 $ 37 $ (2 ) $ 1 $ 594 (b) Environmental, litigation, tax and other reserves $ 997 $ 45 $ 53 $ (160 ) $ 935 (c) Note: The amounts presented represent continuing operations. (a) Primarily represents payments. (b) Of these amounts, $22 million , $24 million and $18 million in 2019, 2018, and 2017, respectively, are classified as current. (c) Of these amounts, $188 million , $146 million and $163 million in 2019, 2018, and 2017, respectively, are classified as current. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles (GAAP) and include the accounts of OPC, its subsidiaries, variable interest entities (VIE) for which Occidental is the primary beneficiary, and its undivided interests in oil and gas exploration and production ventures. Occidental accounts for its share of oil and gas exploration and production ventures, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs and cash flows within the relevant lines on the balance sheets, statements of operations and statements of cash flows. |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | INVESTMENTS IN UNCONSOLIDATED ENTITIES |
RISKS AND UNCERTAINTIES | RISKS AND UNCERTAINTIES The process of preparing consolidated financial statements in conformity with GAAP requires Occidental’s management to make informed estimates and judgments regarding certain types of financial statement balances and disclosures. Such estimates primarily relate to unsettled transactions and events as of the date of the consolidated financial statements and judgments on expected outcomes as well as the materiality of transactions and balances. Changes in facts and circumstances or discovery of new information relating to such transactions and events may result in revised estimates and judgments and actual results may differ from estimates upon settlement. Management believes that these estimates and judgments provide a reasonable basis for the fair presentation of Occidental’s financial statements. Occidental establishes a valuation allowance against net operating losses and other deferred tax assets to the extent it believes the future benefit from these assets will not be realized in the statutory carryforward periods. Realization of deferred tax assets is dependent upon Occidental generating sufficient future taxable income and reversal of temporary differences in jurisdictions where such assets originate. The accompanying consolidated financial statements include assets of approximately $14.9 billion as of December 31, 2019 , and net sales of approximately $4.6 billion for the year ended December 31, 2019 , relating to Occidental’s operations in countries outside North America. Occidental operates some of its oil and gas business in countries that have experienced political instability, nationalizations, corruption, armed conflict, terrorism, insurgency, civil unrest, security problems, labor unrest, OPEC production restrictions, equipment import restrictions and sanctions, all of which increase Occidental’s risk of loss, delayed or restricted production or may result in other adverse consequences. Occidental attempts to conduct its affairs so as to mitigate its exposure to such risks and would seek compensation in the event of nationalization. |
CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | Total restricted cash and restricted cash equivalents are primarily associated with a benefits trust for former Anadarko employees, payments of future hard-minerals royalties conveyed, and a judicially-controlled account related to a Brazilian tax dispute. 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 December 31, 2019, included investments in government money market funds in which the carrying value approximates fair value. |
INVENTORIES | INVENTORIES Materials and supplies are valued at weighted-average cost and are reviewed periodically for obsolescence. Oil, NGL and natural gas inventories are valued at the lower of cost or market. For the chemical segment, Occidental’s finished goods inventories are valued at the lower of cost or market. For most of its domestic inventories, other than materials and supplies, the chemical segment uses the last-in, first-out (LIFO) method as it better matches current costs and current revenue. For other countries, Occidental uses the first-in, first-out method (if the costs of goods are specifically identifiable) or the average-cost method (if the costs of goods are not specifically identifiable). |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT OIL AND GAS The carrying value of Occidental’s property, plant and equipment (PP&E) represents the cost incurred to acquire or develop the asset, including any asset retirement obligations and capitalized interest, net of accumulated depreciation, depletion and amortization (DD&A) and any impairment charges. For assets acquired, PP&E cost is based on fair values at the acquisition date. Asset retirement obligations and interest costs incurred in connection with qualifying capital expenditures are capitalized and amortized over the lives of the related assets. Occidental uses the successful efforts method to account for its oil and gas properties. Under this method, Occidental capitalizes costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory wells are initially capitalized pending a determination of whether proved reserves have been found. If proved reserves have been found, the costs of exploratory wells remain capitalized. For exploratory wells that find reserves that cannot be classified as proved when drilling is completed, costs continue to be capitalized as suspended exploratory drilling costs if there have been sufficient reserves found to justify completion as a producing well and sufficient progress is being made in assessing the reserves and the economic and operating viability of the project. At the end of each quarter, management reviews the status of all suspended exploratory drilling costs in light of ongoing exploration activities, in particular, whether Occidental is making sufficient progress in its ongoing exploration and appraisal efforts or, in the case of discoveries requiring government sanctioning, analyzing whether development negotiations are underway and proceeding as planned. If management determines that future appraisal drilling or development activities are unlikely to occur, associated suspended exploratory well costs are expensed. Occidental expenses annual lease rentals, the costs of injectants used in production and geological, geophysical and seismic costs as incurred. Occidental determines depreciation and depletion of oil and gas producing properties by the unit-of-production method. It amortizes leasehold costs over total proved reserves, and capitalized development and successful exploration costs over proved developed reserves. Proved oil and gas reserves are those quantities of oil and gas which, by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be economically producible-from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations-prior to the time at which contracts providing the right to operate expire, unless evidence indicates that renewal is reasonably certain, regardless of whether deterministic or probabilistic methods are used for the estimation. Occidental performs impairment tests with respect to its proved properties whenever events or circumstances indicate that the carrying value of property may not be recoverable. If there is an indication the carrying amount of the asset may not be recovered due to prolonged declines in current and forward prices, significant changes in reserve estimates, changes in management’s plans, or other significant events, management will evaluate the property for impairment. Under the successful efforts method, if the sum of the undiscounted cash flows is less than the carrying value of the proved property, the carrying value is reduced to estimated fair value and reported as an impairment charge in the period. Individual proved properties are grouped for impairment purposes at the lowest level for which there are identifiable cash flows. The fair value of impaired assets is typically determined based on the present value of expected future cash flows using discount rates believed to be consistent with those used by market participants. The impairment test incorporates a number of assumptions involving expectations of future cash flows which can change significantly over time. These assumptions include future production and timing of production, estimates of future product prices, contractual prices, estimates of risk-adjusted oil and gas reserves and estimates of future operating and development costs. See Note 17 - Fair Value Measurements and below for further discussion of asset impairments. CHEMICAL Occidental’s chemical assets are depreciated using either the unit-of-production or the straight-line method, based upon the estimated useful lives of the facilities. The estimated useful lives of Occidental’s chemical assets, which range from three years to 50 years , are also used for impairment tests. The estimated useful lives for the chemical facilities are based on the assumption that Occidental will provide an appropriate level of annual expenditures to ensure productive capacity is sustained. Such expenditures consist of ongoing routine repairs and maintenance, as well as planned major maintenance activities (PMMA). Ongoing routine repairs and maintenance expenditures are expensed as incurred. PMMA costs are capitalized and amortized over the period until the next planned overhaul. Additionally, Occidental incurs capital expenditures that extend the remaining useful lives of existing assets, increase their capacity or operating efficiency beyond the original specification or add value through modification for a different use. These capital expenditures are not considered in the initial determination of the useful lives of these assets at the time they are placed into service. The resulting revision, if any, of the asset’s estimated useful life is measured and accounted for prospectively. Without these continued expenditures, the useful lives of these assets could decrease significantly. Other factors that could change the estimated useful lives of Occidental’s chemical assets include sustained higher or lower product prices, which are affected by domestic and international competition, demand, feedstock costs, energy prices, environmental regulations and technological changes. Occidental performs impairment tests on its chemical assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value. MARKETING AND MIDSTREAM Occidental’s marketing and midstream PP&E is depreciated over the estimated useful lives of the assets, using either the unit-of-production or straight-line method. Occidental performs impairment tests on its marketing and midstream assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management’s plans change with respect to those assets. Any impairment loss would be calculated as the excess of the asset’s net book value over its estimated fair value. |
GOODWILL | GOODWILL Occidental recognized goodwill of $5.8 billion associated with the Acquisition. The goodwill was based on WES’s publicly traded units and was primarily associated with the relationship between Occidental and WES as well as Occidental’s tax basis in WES. Upon loss of control and application of the equity method of accounting, $4.6 billion of goodwill was derecognized. The remaining $1.2 billion in goodwill is assigned to the marketing and midstream segment and is attributable to the deferred tax liability associated with the investment in WES. Goodwill is subject to annual impairment testing every October. Occidental’s goodwill impairment test first assesses qualitative factors to determine whether goodwill is likely impaired. If the qualitative assessment indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount including goodwill, Occidental will then perform a quantitative goodwill impairment test. Changes in goodwill may result from, among other things, impairments, future acquisitions, or future divestitures. |
IMPAIRMENTS AND OTHER CHARGES | IMPAIRMENTS AND OTHER CHARGES During 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 $39 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 related to Qatar 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%. These inputs are categorized as Level 3 in the fair-value hierarchy. Also in 2018, the marketing and midstream segment incurred approximately $100 million of charges primarily for lower of cost or market adjustments on its crude inventory and line fill. In 2017, Occidental recorded net impairment and related charges of $397 million related to proved and unproved non-core Permian acreage and $120 million related to idled marketing and midstream facilities. |
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 reported at the end of each reporting period. FAIR VALUES - RECURRING Occidental primarily applies the market approach for recurring fair value measurements, maximizes its use of observable inputs and minimizes its use of unobservable inputs. Occidental utilizes the mid-point between bid and ask prices for valuing the majority of its assets and liabilities measured and reported at fair value. In addition to using market data, Occidental makes assumptions in valuing its assets and liabilities, including assumptions about the risks inherent in the inputs to the valuation technique. For assets and liabilities carried at fair value, Occidental measures fair value using the following methods: Ø Occidental values exchange-cleared commodity derivatives using closing prices provided by the exchange as of the balance sheet date. These derivatives are classified as Level 1. Ø Over-the-Counter (OTC) bilateral financial commodity contracts, foreign exchange contracts, interest rate swaps, warrants, options and physical commodity forward purchase and sale contracts are generally classified as Level 2 and are generally valued using quotations provided by brokers or industry-standard models that consider various inputs, including quoted forward prices for commodities, time value, volatility factors, credit risk and current market and contractual prices for the underlying instruments, as well as other relevant economic measures. Substantially all of these inputs are observable in the marketplace throughout the full term of the instrument, and can be derived from observable data or are supported by observable prices at which transactions are executed in the marketplace. Ø Occidental values commodity derivatives based on a market approach that considers various assumptions, including quoted forward commodity prices and market yield curves. The assumptions used include inputs that are generally unobservable in the marketplace or are observable but have been adjusted based upon various assumptions and the fair value is designated as Level 3 within the valuation hierarchy. Ø Occidental values debt using market-observable information for debt instruments that are traded on secondary markets. For debt instruments that are not traded, the fair value is determined by interpolating the value based on debt with similar terms and credit risk. NON-FINANCIAL ASSETS Occidental uses market-observable prices for assets when comparable transactions can be identified that are similar to the asset being valued. When Occidental is required to measure fair value and there is not a market-observable price for the asset or for a similar asset then the cost or income approach is used depending on the quality of information available to support management’s assumptions. The cost approach is based on management’s best estimate of the current asset replacement cost. The income approach is based on management’s best assumptions regarding expectations of future net cash flows, and the expected cash flows are discounted using a commensurate risk-adjusted discount rate. Such evaluations involve significant judgment, and the results are based on expected future events or conditions such as sales prices, estimates of future oil and gas production or throughput, development and operating costs and the timing thereof, economic and regulatory climates, and other factors, most of which are often outside of management’s control. However, assumptions used reflect a market participant’s view of long-term prices, costs, and other factors and are consistent with assumptions used in the Company’s business plans and investment decisions. |
ACCRUED LIABILITIES-CURRENT | ACCRUED LIABILITIES - CURRENT Accrued liabilities - current included accrued payroll, commissions and related expenses of $1.2 billion and $428 million at December 31, 2019 , and 2018 , respectively. Dividends payable, also included in accrued liabilities - current, were $884 million and $600 million at December 31, 2019 , and 2018 |
ENVIRONMENTAL LIABILITIES AND EXPENDITURES | ENVIRONMENTAL LIABILITIES AND EXPENDITURES Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Occidental records environmental liabilities and related charges and expenses for estimated remediation costs that relate to existing conditions from past operations when environmental remediation efforts are probable and the costs can be reasonably estimated. In determining the environmental remediation liability and the range of reasonably possible additional losses, Occidental refers to currently available information, including relevant past experience, remedial objectives, available technologies, applicable laws and regulations and cost-sharing arrangements. Occidental bases its environmental remediation liabilities on management’s estimate of the most likely cost to be incurred, using the most cost-effective technology reasonably expected to achieve the remedial objective. Occidental periodically reviews its environmental remediation liabilities and adjusts them as new information becomes available. Occidental records environmental remediation liabilities on a discounted basis when it deems the aggregate amount and timing of cash payments to be reliably determinable at the time the reserves are established. The reserve methodology with respect to discounting for a specific site is not modified once it is established. Presently none of its environmental remediation liabilities are recorded on a discounted basis. Occidental generally records reimbursements or recoveries of environmental remediation costs in income when received, or when receipt of recovery is highly probable. Many factors could affect Occidental’s future remediation costs and result in adjustments to its environmental remediation liabilities and the range of reasonably possible additional losses. The most significant are: (1) cost estimates for remedial activities may vary from the initial estimate; (2) the length of time, type or amount of remediation necessary to achieve the remedial objective may change due to factors such as site conditions, the ability to identify and control contaminant sources or the discovery of additional contamination; (3) a regulatory agency may ultimately reject or modify Occidental’s proposed remedial plan; (4) improved or alternative remediation technologies may change remediation costs; (5) laws and regulations may change remediation requirements or affect cost sharing or allocation of liability; and (6) changes in allocation or cost-sharing arrangements may occur. Certain sites involve multiple parties with various cost-sharing arrangements, which fall into the following three categories: (1) environmental proceedings that result in a negotiated or prescribed allocation of remediation costs among Occidental and other alleged potentially responsible parties; (2) oil and gas ventures in which each participant pays its proportionate share of remediation costs reflecting its working interest; or (3) contractual arrangements, typically relating to purchases and sales of properties, in which the parties to the transaction agree to methods of allocating remediation costs. In these circumstances, Occidental evaluates the financial viability of other parties with whom it is alleged to be jointly liable, the degree of their commitment to participate and the consequences to Occidental of their failure to participate when estimating Occidental’s ultimate share of liability. Occidental records its environmental remediation liabilities at its expected net cost of remedial activities and, based on these factors, believes that it will not be required to assume a share of liability of such other potentially responsible parties in an amount materially above amounts reserved. In addition to the costs of investigations and cleanup measures, which often take in excess of 10 |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS Occidental recognizes the fair value of asset retirement obligations in the period in which a determination is made that a legal obligation exists to dismantle an asset and reclaim or remediate the property at the end of its useful life and the cost of the obligation can be reasonably estimated. The liability amounts are based on future retirement cost estimates and incorporate many assumptions such as time to abandonment, future inflation rates and the risk-adjusted discount rate. When the liability is initially recorded, Occidental capitalizes the cost by increasing the related PP&E balances. If the estimated future cost of the asset retirement obligations changes, Occidental records an adjustment to both the asset retirement obligations and PP&E. Over time, the liability is increased and expense is recognized for accretion, and the capitalized cost is depreciated over the useful life of the asset. The majority of Occidental’s asset retirement obligations relate to the plugging of wells and the related abandonment of oil and gas properties. Revisions in estimated liabilities during the period primarily relate to liabilities acquired in the Acquisition and include, but are not limited to, changes in estimates of asset retirement costs, revisions of estimated inflation rates, changes in property lives, and the expected timing of settlements. At a certain number of its facilities, Occidental has identified conditional asset retirement obligations that are related mainly to plant decommissioning. Occidental does not know or cannot estimate when it may settle these obligations. Therefore, Occidental cannot reasonably estimate the fair value of these liabilities. Occidental will recognize these conditional asset retirement obligations in the periods in which sufficient information becomes available to reasonably estimate their fair values. |
DERIVATIVE INSTRUMENTS | DERIVATIVE INSTRUMENTS Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental applies hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, any fair value gains or losses are recognized in earnings in the current period. For cash-flow hedges, the gain or loss on the effective portion of the derivative is reported as a component of other comprehensive income (OCI) with an offsetting adjustment to the carrying value of the item being hedged. Realized gains or losses from cash-flow hedges, and any ineffective portion, are recorded as a component of net sales in the consolidated statements of operations. Ineffectiveness is primarily created by a lack of correlation between the hedged item and the hedging instrument due to location, quality, grade or changes in the expected quantity of the hedged item. Gains and losses from derivative instruments are reported net in the consolidated statements of operations. There were no fair value hedges as of and during the years ended December 31, 2019 , 2018 and 2017 . A hedge is regarded as highly effective such that it qualifies for hedge accounting if, at inception and throughout its life, it is expected that changes in the fair value or cash flows of the hedged item will be offset by 80% to 125% of the changes in the fair value or cash flows, respectively, of the hedging instrument. In the case of hedging a forecast transaction, the transaction must be probable and must present an exposure to variations in cash flows that could ultimately affect reported net income or loss. Occidental discontinues hedge accounting when it determines that a derivative has ceased to be highly effective as a hedge; when the hedged item matures or is sold or repaid; or when a forecast transaction is no longer deemed probable. |
STOCK-BASED INCENTIVE PLANS | STOCK-BASED INCENTIVE PLANS Occidental has established several stockholder-approved stock-based incentive plans for certain employees and directors (Plans) that are more fully described in Note 14 - Stock-Based Incentive Plans . A summary of Occidental’s accounting policy for awards issued under the Plans is as follows. For cash- and stock-settled restricted stock units or incentive award shares (RSU), cash return on capital employed incentive awards (CROCEI), return on capital employed incentive awards (ROCEI) and return on assets incentive awards (ROAI), compensation value is initially measured on the grant date using the quoted market price of Occidental’s common stock and the estimated payout at the grant date. For total shareholder return incentive awards (TSRI), compensation value is initially measured on the grant date using estimated payout levels derived from a Monte Carlo valuation model. Compensation expense for RSUs, CROCEIs, ROCEIs, ROAIs and TSRIs is recognized on a straight-line basis over the requisite service periods, which is generally over the awards’ respective vesting or performance periods. Dividends accrued on unvested awards are adjusted quarterly for any changes in the number of share equivalents expected to be paid based on the relevant performance and market criteria, if applicable. All such performance or stock-price-related changes are recognized in periodic compensation expense. The stock-settled portion of these awards is expensed using the initially measured compensation value. The liability resulting from the cash settled portion of these awards and accrued dividends are remeasured at each reporting period. |
EARNINGS PER SHARE | EARNINGS PER SHARE Occidental’s instruments containing rights to nonforfeitable dividends granted in stock-based awards are considered participating securities prior to vesting and, therefore, have been deducted from earnings in computing basic and diluted EPS under the two-class method. Basic EPS was computed by dividing net income attributable to common stock, net of income allocated to participating securities, by the weighted-average number of common shares outstanding during each period, including vested but unissued shares and share units. The computation of diluted EPS reflects the additional dilutive effect of stock options and unvested stock awards. |
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS | RETIREMENT AND POSTRETIREMENT BENEFIT PLANS Occidental recognizes the overfunded or underfunded amounts of its defined benefit pension and postretirement plans, which are more fully described in Note 15 - Retirement and Postretirement Benefit Plans , in its financial statements using a December 31 measurement date. Occidental’s defined benefit pension and postretirement benefit plan obligations are actuarially determined based on various assumptions and discount rates. The discount rate assumptions used are meant to reflect the interest rate at which the obligations could effectively be settled on the measurement date. Occidental estimates the rate of return on assets with regard to current market factors but within the context of historical returns. Occidental funds and expenses negotiated pension increases for domestic union employees over the terms of the applicable collective bargaining agreements. Pension and any postretirement plan assets are measured at fair value. Common stock, preferred stock, publicly registered mutual funds, U.S. government securities and corporate bonds are valued using quoted market prices in active markets when available. When quoted market prices are not available, these investments are valued using pricing models with observable inputs from both active and non-active markets. Common and collective trusts are valued at the fund units’ net asset value (NAV) provided by the issuer, which represents the quoted price in a non-active market. Short-term investment funds are valued at the fund units’ NAV provided by the issuer. |
FOREIGN CURRENCY TRANSACTIONS | FOREIGN CURRENCY TRANSACTIONS The functional currency applicable to all of Occidental’s international oil and gas operations is the U.S. dollar since cash flows are denominated principally in U.S. dollars. In Occidental’s other operations, Occidental’s use of non-United States dollar functional currencies was not material for all years presented. The effect of exchange rates on transactions in foreign currencies is included in periodic income. Occidental reports the exchange rate differences arising from translating foreign-currency-denominated balance sheet accounts to the United States dollar as of the reporting date in other comprehensive income. Exchange-rate gains and losses for continuing operations were not material for all years presented. |
INCOME TAXES | INCOME TAXES |
OTHER LOSS CONTINGENCIES | OTHER LOSS CONTINGENCIES Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries also are involved in proceedings under CERCLA and similar federal, state, local and international 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. |
RECENTLY ADOPTED ACCOUNTING AND DISCLOSURE CHANGES | RECENTLY ADOPTED 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 (ROU) asset 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 8 - Lease Commitments . In February 2018, the Financial Accounting Standards Board (FASB) released standards that allow the reclassification from accumulated other comprehensive income to retained earnings of stranded tax effects resulting from changes to U.S. federal tax law from the 2017 Tax Cuts and Jobs Act (Tax Reform) enacted in December 2017. Occidental early adopted this standard in the first quarter of 2018, resulting in the reclassification of $58 million in stranded tax effects from accumulated other comprehensive income (AOCI) to retained earnings. In January 2018, Occidental adopted the new revenue recognition standard Topic 606 - Revenue from Contracts with Customers and related updates (ASC 606). The new standard requires more detailed disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. Occidental adopted the standard using the modified retrospective method. The cumulative-effect adjustment to retained earnings upon adoption was not material. See Note 5 - Revenue . In January 2017, FASB issued new guidance clarifying the definition of a business under the topic Business Combinations. The rules became effective in the first quarter of 2018, and did not have a material impact to Occidental’s financial statements upon adoption. |
REVENUE RECOGNITION | Revenue from customers is recognized when obligations under the terms of a contract are satisfied; this generally occurs with the delivery of oil, gas, NGL, chemicals or services such as transportation. Revenue from customers is measured as the amount of consideration Occidental expects to receive in exchange for the delivery of goods or services. Contracts may last from one month to one year or more, and may have renewal terms that extend indefinitely at the option of either party. Price is typically based on market indexes. Volumes fluctuate due to production and, in certain cases, customer demand and transportation availability. Occidental records revenue net of certain taxes, such as sales taxes, that are assessed by governmental authorities on Occidental’s customers. Occidental does not incur significant costs to obtain contracts. Incidental items that are immaterial in the context of the contract are recognized as expenses. Sales of hydrocarbons and chemicals to customers are invoiced and settled on a monthly basis. Occidental is not usually subject to obligations for warranties, rebates, returns or refunds except in the case of customer incentive payments as discussed for the chemical segment below. Occidental does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to Occidental. OIL AND GAS SEGMENT Revenue from oil and gas production is recognized when production is delivered and control passes to the customer. Revenues from the production of oil and gas properties in which Occidental has an interest with other producers are recognized on the basis of Occidental’s net revenue interest. CHEMICALS SEGMENT Revenue from chemical product sales is recognized when control passes to the customer. Certain incentive programs may provide for payments or credits to be made to customers based on the volume of product purchased over a defined period. Customer incentives are estimated and recorded as a reduction to revenue ratably over the contract period. Such estimates are evaluated and revised as warranted. Revenue from exchange contracts is excluded from revenue from customers. MARKETING AND MIDSTREAM SEGMENT |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of cash equivalents and restricted 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 Statements of Cash Flows for the twelve months ended December 31, 2019 to the line items within the Consolidated Balance Sheet at December 31, 2019. There was no restricted cash or restricted cash equivalents at December 31, 2018. millions December 31, 2019 Cash and cash equivalents $ 3,032 Restricted cash and restricted cash equivalents 480 Cash and restricted cash included in assets held for sale 8 Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net 54 Cash, cash equivalents, restricted cash, and restricted cash equivalents $ 3,574 |
Summary of the activity of capitalized exploratory well costs for continuing operations | The following table summarizes the activity of capitalized exploratory well costs for continuing operations for the years ended December 31: millions 2019 2018 2017 Balance — beginning of year $ 112 $ 108 $ 56 Exploratory well costs acquired through the Acquisition 231 — — Additions to capitalized exploratory well costs pending the determination of proved reserves 383 220 201 Reclassifications to property, plant and equipment based on the determination of proved reserves (230 ) (198 ) (128 ) Capitalized exploratory well costs charged to expense (72 ) (18 ) (21 ) Balance — end of year $ 424 $ 112 $ 108 |
Summary of the activity of the asset retirement obligation | The following table summarizes the activity of asset retirement obligations for the years ended December 31,: millions 2019 2018 Beginning balance $ 1,499 $ 1,312 Liabilities assumed in the Acquisition 3,344 — Liabilities incurred – capitalized to PP&E 131 31 Liabilities settled and paid (200 ) (40 ) Accretion expense 71 67 Acquisitions, dispositions and other — (18 ) WES loss of control (359 ) — Revisions to previous estimates 147 147 Ending balance (a) $ 4,633 $ 1,499 (a) The ending balance included $248 million and $75 million related to the current balance of AROs that are included in Accrued Liabilities on the Consolidated Balance Sheets at December 31, 2019 and 2018, respectively. |
THE ACQUISITION (Tables)
THE ACQUISITION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Purchase Consideration | The following table presents the Acquisition consideration paid to Anadarko stockholders as a result of the Acquisition: millions except per-share amounts As of August 8, 2019 Total shares of Anadarko common stock eligible for Acquisition consideration 491.6 Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Acquisition consideration) $ 59.00 Cash portion of Acquisition consideration $ 29,002 Total shares of Anadarko common stock eligible for Acquisition consideration 491.6 Exchange ratio (per share of Anadarko common stock) 0.2934 Total shares of Occidental common stock issued to Anadarko stockholders 144 Average share price of Occidental common stock at August 8, 2019 $ 46.31 Stock portion of Acquisition consideration $ 6,679 Acquisition consideration attributable to Anadarko stock-based awards $ 23 Total Acquisition consideration $ 35,704 |
Schedule of Preliminary Purchase Price Allocation | The following table sets forth the preliminary allocation of the Acquisition consideration. Certain data necessary to complete the purchase price allocation is not yet available, including, but not limited to, final appraisals of certain assets acquired and liabilities assumed, valuation of pre-Acquisition 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 Acquisition 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 $ 3,596 Africa Assets held for sale 10,616 Investments in unconsolidated entities 194 Property, plant and equipment 49,074 Other assets 836 Amount attributable to assets acquired $ 64,316 Fair value of liabilities assumed: Current liabilities $ 3,410 Liabilities of Africa Assets held for sale 2,200 Long-term debt 13,240 Deferred income taxes 8,607 Asset retirement obligations 2,724 Pension and post-retirement obligations 1,072 Non-current derivative liabilities 1,280 Other long-term liabilities 2,323 Amount attributable to liabilities assumed $ 34,856 Net assets $ 29,460 Fair value of WES net assets acquired less noncontrolling interests (a) $ 6,244 Total Acquisition consideration $ 35,704 (a) See Note 1 - Summary of Significant Accounting Policies for a discussion of the WES investment. The following table summarizes the fair value of the major categories of WES assets acquired and liabilities assumed at the Acquisition date as well as the noncontrolling interest, which primarily consists of the 44.6% limited partner interest in WES owned by the public. The fair value of Occidental’s controlling interest in WES is calculated based on the market capitalization value at the Acquisition date. millions As of August 8, 2019 Fair value of WES assets acquired: Current assets $ 499 Investments in unconsolidated entities 2,425 Property, plant and equipment 10,160 Intangible assets - customer relationships 1,800 Goodwill 5,772 Other assets 342 Amount attributable to assets acquired $ 20,998 Fair value of WES liabilities assumed: Current liabilities $ 815 Long-term debt 7,407 Deferred income taxes 1,174 Asset retirement obligations 321 Other long-term liabilities 142 Amount attributable to liabilities assumed $ 9,859 Net assets $ 11,139 Less: Fair value of noncontrolling interests in WES $ 4,895 Fair value of WES net assets acquired less noncontrolling interests $ 6,244 |
Pro Forma Information | The following table summarizes the unaudited pro forma condensed financial information of Occidental as if the Acquisition had occurred on January 1, 2018: Year ended December 31, millions except per-share amounts 2019 2018 Revenues $ 28,723 $ 31,206 Net income (loss) attributable to common stockholders (a) $ (769 ) $ 2,965 Net income (loss) attributable to common stockholders per share—basic $ (0.95 ) $ 3.26 Net income (loss) attributable to common stockholders per share—diluted $ (0.95 ) $ 3.25 (a) Excluding the pro-forma results of WES, net income (loss) attributable to common stockholders would be $(1.1) billion and $2.8 billion |
Schedule of Merger-Related Costs | The following table summarizes the Acquisition-related costs incurred for the year ended December 31: millions 2019 Employee severance and related employee cost $ 1,033 Licensing fees for critical seismic data 401 Bank, legal, consulting and other 213 Total $ 1,647 |
ACQUISITIONS, DISPOSITIONS AN_2
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [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 Acquisition closing date through December 31, 2019: millions 2019 Revenues and other income Net sales $ 739 Costs and other deductions Oil and gas lease operating expense $ 81 Transportation expense 14 Taxes other than on income 133 Fair value adjustment on assets held for sale 244 Other 53 Total costs and other deductions $ 525 Income before income taxes $ 214 Income tax expense (229 ) Discontinued operations, net of tax $ (15 ) The following table presents amounts related to the Africa Assets reported as held for sale in the Consolidated Balance Sheet as of December 31, 2019: millions 2019 Current assets $ 289 Property, plant and equipment, net 5,481 Long-term receivables and other assets, net 256 Assets held for sale (a) $ 6,026 Current liabilities $ 452 Long-term debt, net - finance leases 185 Deferred income taxes 1,112 Asset retirement obligations 181 Other 80 Liabilities of assets held for sale (a) $ 2,010 Net assets held for sale $ 4,016 (a) Assets and liabilities held for sale at December 31, 2019 included South Africa assets which were sold to Total in January 2020. |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of reconciliation of revenue from customers to total net sales | The following table reconciles revenue from customers to total net sales for the years ended December 31: millions 2019 2018 Revenue from customers $ 18,674 $ 15,560 All other revenues (a) 1,719 2,264 Net sales $ 20,393 $ 17,824 (a) Included net marketing derivatives, oil collars and calls and chemical exchange contracts. |
Schedule of revenue from customers by segment, product, and geographical area | The following table presents Occidental’s revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, gas and NGL at the lease or concession area. Chemical revenues are shown by geographic area based on the location of the sale. Marketing and midstream revenues are shown by the location of sale. millions United States Middle East Latin America Other International Eliminations Total Year ended December 31, 2019 Oil and Gas Oil $ 8,411 $ 2,758 $ 683 $ — $ — $ 11,852 NGL 658 263 — — — 921 Gas 424 319 20 — — 763 Other (1 ) (5 ) — — — (6 ) Segment total $ 9,492 $ 3,335 $ 703 $ — $ — $ 13,530 Chemical $ 3,858 $ — $ 155 $ 67 $ — $ 4,080 Marketing and Midstream (a) Gas processing $ 395 $ 351 $ — $ — $ — $ 746 WES - Gas processing and pipeline 1,110 — — — — 1,110 Power and other 472 — — — — 472 Segment total $ 1,977 $ 351 $ — $ — $ — $ 2,328 Eliminations $ — $ — $ — $ — $ (1,264 ) $ (1,264 ) Consolidated $ 15,327 $ 3,686 $ 858 $ 67 $ (1,264 ) $ 18,674 Year ended December 31, 2018 Oil and Gas Oil $ 5,125 $ 3,405 $ 715 $ — $ — $ 9,245 NGL 430 261 — — — 691 Gas 185 294 16 — — 495 Other 7 3 — — — 10 Segment total $ 5,747 $ 3,963 $ 731 $ — $ — $ 10,441 Chemical $ 4,363 $ — $ 205 $ 80 $ — $ 4,648 Marketing and Midstream Gas processing $ 557 $ 425 $ — $ — $ — $ 982 Pipelines 311 — — — — 311 Power and other 108 — — — — 108 Segment total $ 976 $ 425 $ — $ — $ — $ 1,401 Eliminations $ — $ — $ — $ — $ (930 ) $ (930 ) Consolidated $ 11,086 $ 4,388 $ 936 $ 80 $ (930 ) $ 15,560 (a) The marketing and midstream segment included revenues from customers from WES from the date of the Acquisition to December 31, 2019. See Note 1 - Summary of Significant Accounting Policies |
Transaction price allocated to remaining performance obligations | Revenue expected to be recognized from certain performance obligations that are unsatisfied as of December 31, 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 Total 2020 $ 103 2021 103 2022 7 2023 7 2024 7 Thereafter 53 Total $ 280 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of inventories | Inventories consisted of the following at December 31: millions 2019 2018 Raw materials $ 75 $ 74 Materials and supplies 879 445 Commodity inventory and finished goods 533 788 1,487 1,307 Revaluation to LIFO (40 ) (47 ) Total $ 1,447 $ 1,260 |
LONG-TERM DEBT (Tables)
LONG-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consisted of the following: millions December 31, 2019 4.850% senior notes due 2021 $ 677 2.600% senior notes due 2021 1,500 4.100% senior notes due 2021 1,249 Variable rate bonds due 2021 (2.854% as of December 31, 2019) 500 Variable rate bonds due 2021 (3.151% as of December 31, 2019) 500 2-year variable rate Term Loan due 2021 (3.111% as of December 31, 2019) 1,956 2.700% senior notes due 2022 2,000 3.125% senior notes due 2022 814 2.600% senior notes due 2022 400 Variable rate bonds due 2022 (3.360% as of December 31, 2019) 1,500 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 2.900% senior notes due 2024 3,000 6.950% senior notes due 2024 650 3.450% senior notes due 2024 248 3.500% senior notes due 2025 750 5.550% senior notes due 2026 1,100 3.200% senior notes due 2026 1,000 3.400% senior notes due 2026 1,150 7.500% debentures due 2026 112 3.000% senior notes due 2027 750 7.125% debentures due 2027 150 7.000% debentures due 2027 48 6.625% debentures due 2028 14 7.150% debentures due 2028 235 7.200% senior debentures due 2028 82 7.200% debentures due 2029 135 7.950% debentures due 2029 116 8.450% senior debentures due 2029 116 3.500% senior notes due 2029 1,500 Variable rate bonds due 2030 (1.705% as of December 31, 2019) 68 7.500% senior notes due 2031 900 7.875% senior notes due 2031 500 6.450% senior notes due 2036 1,750 Zero Coupon senior notes due 2036 2,271 6.500% note payable to WES due 2038 260 4.300% senior notes due 2039 750 7.950% senior notes due 2039 325 6.200% senior notes due 2040 750 4.500% senior notes due 2044 625 4.625% senior notes due 2045 750 6.600% senior notes due 2046 1,100 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 4.400% senior notes due 2049 750 7.730% debentures due 2096 60 7.500% debentures due 2096 78 7.250% debentures due 2096 49 Total borrowings at face value (a) 37,401 Adjustments to book value: Unamortized premium, net 914 Debt issuance costs (125 ) Long-term finance leases 347 Long-term Debt, net $ 38,537 (a) Total borrowings at face value included a $310 thousand 7.25% senior note due 2025. millions December 31, 2018 Occidental 9.250% senior debentures due 2019 $ 116 4.100% senior notes due 2021 1,249 3.125% senior notes due 2022 813 2.600% senior notes due 2022 400 2.700% senior notes due 2023 1,191 8.750% medium-term notes due 2023 22 3.500% senior notes due 2025 750 3.400% senior notes due 2026 1,150 3.000% senior notes due 2027 750 7.200% senior debentures due 2028 82 8.450% senior debentures due 2029 116 4.625% senior notes due 2045 750 4.400% senior notes due 2046 1,200 4.100% senior notes due 2047 750 4.200% senior notes due 2048 1,000 Variable rate bonds due 2030 (1.9% as of December 31, 2018) 68 Total borrowings at face value 10,407 Adjustments to book value: Unamortized discount, net (36 ) Debt issuance costs (54 ) Current maturities (116 ) Long-term Debt, net $ 10,201 |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of operating lease maturities | At December 31, 2019, Occidental’s leases expire based on the following schedule: millions Operating Leases (a) Finance Leases (b) Total 2020 $ 555 $ 53 $ 608 2021 408 45 453 2022 136 41 177 2023 99 37 136 2024 81 34 115 Thereafter 254 275 529 Total lease payments 1,533 485 2,018 Less: Interest (110 ) (87 ) (197 ) Total lease liabilities $ 1,423 $ 398 $ 1,821 (a) The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53% . (b) The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74% The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Acquisition and recorded on the Consolidated Balance Sheet at the Acquisition date: millions Operating Leases Finance Leases Total 2019 $ 90 $ 7 $ 97 2020 172 17 189 2021 64 16 80 2022 42 13 55 2023 28 8 36 Thereafter 136 43 179 Total lease payments $ 532 $ 104 $ 636 Less: Interest (44 ) (18 ) (62 ) Total lease liabilities (a) $ 488 $ 86 $ 574 (a) Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million |
Schedule of finance lease maturities | At December 31, 2019, Occidental’s leases expire based on the following schedule: millions Operating Leases (a) Finance Leases (b) Total 2020 $ 555 $ 53 $ 608 2021 408 45 453 2022 136 41 177 2023 99 37 136 2024 81 34 115 Thereafter 254 275 529 Total lease payments 1,533 485 2,018 Less: Interest (110 ) (87 ) (197 ) Total lease liabilities $ 1,423 $ 398 $ 1,821 (a) The weighted-average remaining lease term is 4.6 years and the weighted-average discount rate is 2.53% . (b) The weighted-average remaining lease term is 11.6 years and the weighted-average discount rate is 3.74% The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Acquisition and recorded on the Consolidated Balance Sheet at the Acquisition date: millions Operating Leases Finance Leases Total 2019 $ 90 $ 7 $ 97 2020 172 17 189 2021 64 16 80 2022 42 13 55 2023 28 8 36 Thereafter 136 43 179 Total lease payments $ 532 $ 104 $ 636 Less: Interest (44 ) (18 ) (62 ) Total lease liabilities (a) $ 488 $ 86 $ 574 (a) Excluded operating and finance leases associated with the Africa Assets of $74 million and $201 million |
Schedule of lease related assets and liabilities | The following table presents lease balances and their location on the Consolidated Balance Sheet at December 31, 2019: millions Balance sheet location 2019 Assets: Operating Operating lease assets $ 1,385 Finance Property, plant and equipment 397 Total lease assets $ 1,782 Liabilities: Current Operating Current operating lease liabilities $ 569 Finance Current maturities of long-term debt 51 Non-current Operating Deferred credits and other liabilities - Operating lease liabilities 854 Finance Long-term debt, net 347 Total lease liabilities $ 1,821 |
Schedule of future net minimum lease payments for noncancelable operating leases | 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: millions Operating Leases 2019 $ 186 2020 147 2021 96 2022 68 2023 49 Thereafter 158 Total minimum lease payments (a) $ 704 (a) The amount represents the future undiscounted cash flows at December 31, 2018, excluding any amount associated with the Acquisition. |
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: millions Year ended December 31, 2019 Lease cost classification (a) Operating lease costs (b) Property, plant and equipment, net $ 449 Operating expense and cost of sales 391 Selling, general and administrative expenses 92 Finance lease cost Amortization of ROU assets 19 Interest on lease liabilities 2 Total lease cost $ 953 (a) Amounts reflected are gross before joint-interest recoveries. (b) Included short-term lease cost of $404 million for the twelve months ended December 31, 2019, and variable lease cost of $162 million for the twelve months ended December 31, 2019. millions Year ended December 31, 2019 Operating cash flows $ 262 Investing cash flows $ 112 Financing cash flows (a) $ 19 (a) Excludes cash received of approximately $300 million associated with the failed sale-leaseback, see Note 4 - Acquisitions, Dispositions and Other |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of derivative instruments | Occidental had the following collars and calls outstanding at December 31, 2019 : Collars and Calls, not designated as hedges 2020 Settlement Three-way collars (oil MMBBL) 128.1 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 Floor purchased price (put) $ 55.00 Floor sold price (put) $ 45.00 2021 Settlement Call options sold (oil MMBBL) 127.8 Volume weighted average price per barrel (Brent oil pricing) Ceiling sold price (call) $ 74.16 Occidental had the following outstanding interest rate swaps at December 31, 2019 : millions except percentages Mandatory Weighted-Average Notional Principal Amount Reference Period Termination Date Interest Rate $ 550 September 2016 - 2046 September 2020 6.418 % $ 125 September 2016 - 2046 September 2022 6.835 % $ 100 September 2017 - 2047 September 2020 6.891 % $ 250 September 2017 - 2047 September 2021 6.570 % $ 450 September 2017 - 2047 September 2023 6.445 % |
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 December 31, 2019, and 2018: 2019 2018 Oil Commodity Contracts Volume (MMBBL) 55 61 Natural gas commodity contracts Volume (Bcf) (128 ) (142 ) |
Gross and net fair values of outstanding derivatives | The following table presents the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when derivatives are subject to netting arrangements, and are presented on a net basis in the Consolidated Balance Sheets. millions Fair Value Measurements Using Total Fair Value Balance Sheet Classification Level 1 Level 2 Level 3 Netting (a) December 31, 2019 Oil Collars and Calls Other current assets $ — $ 92 $ — $ — $ 92 Deferred credits and other liabilities - other — (160 ) — — (160 ) Marketing Derivatives Other current assets 945 79 — (973 ) 51 Long-term receivables and other assets, net 4 12 — (4 ) 12 Accrued liabilities (1,008 ) (44 ) — 973 (79 ) Deferred credits and other liabilities - other (4 ) (1 ) — 4 (1 ) Interest Rate Swaps Other current assets — 5 — — 5 Long-term receivables and other assets, net — 5 — — 5 Accrued liabilities — (657 ) — — (657 ) Deferred credits and other liabilities - other — (776 ) — — (776 ) Warrant Deferred credits and other liabilities - other — (107 ) — — (107 ) December 31, 2018 Marketing Derivatives Other current assets $ 2,531 $ 110 $ — $ (2,392 ) $ 249 Long-term receivables and other assets, net 5 9 — (6 ) 8 Accrued liabilities (2,357 ) (101 ) — 2,392 (66 ) Deferred credits and other liabilities - other (6 ) (2 ) — 6 (2 ) (a) These amounts do not include collateral. As of December 31, 2019, $104 million of collateral has been netted against derivative liabilities related to interest rate swaps. Occidental had $65 million and $54 million of initial margin deposited with brokers as of December 31, 2019 and 2018, respectively, related to marketing derivatives. |
Schedule of gains and losses on derivatives | The following table presents gains and (losses) related to Occidental’s derivative instruments on the Consolidated Statements of Operations: millions December 31, Income Statement Classification 2019 2018 2017 Oil Collars and Calls Net sales $ (107 ) $ — $ — Marketing Derivatives Net sales (a) 1,804 2,254 (138 ) Interest Rate Swaps (Excluding WES) Gain on interest rate swaps and warrants, net 122 — — Interest Rate Swaps (WES) Gain on interest rate swaps and warrants, net 30 — — Warrant Gain on interest rate swaps and warrants, net 81 — — (a) |
ENVIRONMENTAL LIABILITIES AND_2
ENVIRONMENTAL LIABILITIES AND EXPENDITURES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Environmental Remediation Obligations [Abstract] | |
Schedule of current and non-current environmental remediation reserves by categories of sites | 2019 2018 millions, except number of sites Number of Sites Remediation Balance Number of Sites Remediation Balance NPL sites 36 $ 463 34 $ 458 Third-party sites 74 311 68 168 Occidental-operated sites 17 154 14 115 Closed or non-operated Occidental sites 50 269 29 141 Total 177 $ 1,197 145 $ 882 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes | The following summarizes domestic and foreign components of income (loss) from continuing operations before domestic and foreign income taxes for the years ended December 31: millions 2019 2018 2017 Domestic $ (1,632 ) $ 3,431 $ (609 ) Foreign 1,818 2,177 1,937 Total $ 186 $ 5,608 $ 1,328 |
Schedule of provisions (credits) for domestic and foreign income taxes on continuing operations | The following summarizes components of income tax expense (benefit) on continuing operations for the years ended December 31: millions 2019 2018 2017 Current Federal $ 33 $ (23 ) $ (81 ) State and Local 46 52 11 Foreign 1,641 1,077 806 Total current tax expense $ 1,720 $ 1,106 $ 736 Deferred Federal (130 ) 422 (856 ) State and Local 17 12 23 Foreign (914 ) (63 ) 114 Total deferred tax expense (benefit) $ (1,027 ) $ 371 $ (719 ) Total income tax expense $ 693 $ 1,477 $ 17 |
Schedule of reconciliation of the United States federal statutory income tax rate to Occidental's worldwide effective tax rate on income from continuing operations stated as a percentage of pre-tax income | The following reconciliation of the U.S federal statutory income tax rate to Occidental’s worldwide effective tax rate on income from continuing operations for the years ended December 31 is stated as a percentage of income (loss) from continuing operations before income taxes: 2019 2018 2017 U.S. federal statutory tax rate 21 % 21 % 35 % Enhanced oil recovery credit and other general business credits (4 ) (3 ) (9 ) Change in federal income tax rate — — (44 ) Tax (benefit) expense due to reversal of indefinite reinvestment assertion — (2 ) 7 Tax impact from foreign operations 187 11 12 State income taxes, net of federal benefit 28 1 2 Uncertain tax positions 13 — — Transaction costs 19 — — Non-controlling interest (16 ) — — Executive compensation limitation 24 — — Stock warrants (9 ) — — WES loss of control 113 — — Other (3 ) (2 ) (2 ) Worldwide effective tax rate 373 % 26 % 1 % |
Schedule of tax effects of temporary differences resulting in deferred income taxes | The tax effects of temporary differences resulting in deferred income taxes at December 31, 2019 , and 2018 were as follows: millions 2019 2018 Deferred tax liabilities Property, plant and equipment differences $ (12,375 ) $ (2,089 ) Equity investments, partnerships and foreign subsidiaries (989 ) (161 ) Gross long-term deferred tax liabilities (13,364 ) (2,250 ) Deferred tax assets Environmental reserves 261 195 Postretirement benefit accruals 441 176 Deferred compensation and benefits 266 170 Asset retirement obligations 906 280 Foreign tax credit carryforwards 4,379 2,356 General business credit carryforwards 443 429 Net operating loss carryforward 692 29 Interest expense carryforward 492 — All other 782 111 Gross long-term deferred tax assets 8,662 3,746 Valuation allowance (4,959 ) (2,403 ) Net long-term deferred tax assets $ 3,703 $ 1,343 Less: Foreign deferred tax asset in long-term receivables and other assets, net $ (56 ) $ — Total deferred income taxes, net $ (9,717 ) $ (907 ) |
Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: millions 2019 2018 2017 Balance at January 1 $ — $ 22 $ 22 Increase related to Anadarko Acquisition 2,143 — — Increases related to current-year positions 30 — — Settlements — (22 ) — Balance at December 31 $ 2,173 $ — $ 22 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Summary of common stock issuances | The following is a summary of common stock issuances: Shares in thousands Common Stock Balance, December 31, 2016 892,215 Issued 1,252 Options exercised and other, net 2 Balance, December 31, 2017 893,469 Issued 1,628 Options exercised and other, net 19 Balance, December 31, 2018 895,116 Issued in the ordinary course 3,188 Issued as part of the Acquisition (a) 146,131 Balance, December 31, 2019 1,044,435 (a) Included approximately 2 million shares of common stock issued to a benefits trust for former Anadarko employees treated as treasury stock at December 31, 2019. |
Calculation of basic and diluted EPS | The following table presents the calculation of basic and diluted earnings per share for the years ended December 31: millions except per share amounts 2019 2018 2017 Income (loss) from continuing operations $ (507 ) $ 4,131 $ 1,311 Loss from discontinued operations (15 ) — — Net income (loss) $ (522 ) $ 4,131 $ 1,311 Less: Net income attributable to noncontrolling interest (145 ) — — Less: Preferred stock dividends (318 ) — — Net income (loss) attributable to common stock $ (985 ) $ 4,131 $ 1,311 Less: Net income allocated to participating securities — (17 ) (6 ) Net income (loss), net of participating securities $ (985 ) $ 4,114 $ 1,305 Weighted-average number of basic shares 809.5 761.7 765.1 Basic earnings (loss) per common share $ (1.22 ) $ 5.40 $ 1.71 Net income (loss), net of participating securities $ (985 ) $ 4,114 $ 1,305 Weighted-average number of basic shares 809.5 761.7 765.1 Dilutive securities — 1.6 0.8 Total diluted weighted-average common shares 809.5 763.3 765.9 Diluted earnings (loss) per common share $ (1.22 ) $ 5.39 $ 1.70 |
Components of accumulated other comprehensive loss | Accumulated other comprehensive loss consisted of the following after-tax amounts at December 31: millions 2019 2018 Foreign currency translation adjustments $ (7 ) $ (7 ) Unrealized gains (losses) on derivatives (122 ) 5 Pension and postretirement adjustments (a) (92 ) (170 ) Total $ (221 ) $ (172 ) (a) See Note 15 - Retirement and Postretirement Benefit Plans for further information. |
STOCK-BASED INCENTIVE PLANS (Ta
STOCK-BASED INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of changes in Occidental's unvested cash- and stock- settled RSUs | A summary of changes in Occidental’s unvested cash- and stock-settled RSUs during the year ended December 31, 2019 , is presented below: Cash-Settled Stock-Settled thousands, except fair values RSUs Weighted-Average RSUs Weighted-Average Unvested at January 1 186 $ 73.93 3,971 $ 73.19 Granted (a) 4,267 $ 42.62 3,543 $ 58.73 Vested (67 ) $ 72.26 (2,743 ) $ 67.04 Forfeitures (39 ) $ 47.60 (376 ) $ 67.25 Unvested at December 31 4,347 $ 43.46 4,395 $ 65.88 (a) Included 1.5 million |
Grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs | The grant-date assumptions used in the Monte Carlo simulation models for the estimated payout level of TSRIs were as follows: TSRIs 2019 2018 2017 Assumptions used: Risk-free interest rate 2.5 % 2.3 % 1.5 % Volatility factor 22 % 24 % 25 % Expected life (years) 3 3 3 Grant-date fair value of underlying Occidental common stock $ 67.19 $ 69.87 $ 67.21 |
Summary of the changes of awards | CROCEI, ROCEI, and ROAI thousands, except fair values Awards Weighted-Average Unvested at January 1 210 $ 71.60 Granted 81 $ 67.19 Vested (a) (137 ) $ 72.54 Forfeited — — Unvested at December 31 154 $ 68.44 (a) Presented at the target payouts. The weighted-average payout at vesting was 86% of the target resulting in the issuance of approximately 118,000 A summary of Occidental’s unvested TSRIs as of December 31, 2019 and changes during the year ended December 31, 2019 is presented below: TSRIs thousands, except fair values Awards Weighted-Average Unvested at January 1 1,444 $ 70.97 Granted 578 $ 67.19 Vested (a) (442 ) $ 76.83 Forfeitures (43 ) $ 76.83 Unvested at December 31 1,537 $ 67.70 (a) Presented at the target payouts. The weighted-average payout at vesting was 19% of the target, resulting in the issuance of approximately 83,000 shares of Occidental common stock. |
RETIREMENT AND POSTRETIREMENT_2
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Components of amounts recognized in the consolidated balance sheets | The following tables show the amounts recognized in Occidental’s consolidated balance sheets at December 31, 2019 and 2018, related to its pension and postretirement benefit plans: Pension Benefits Postretirement Benefits millions 2019 2018 2019 2018 Amounts recognized in the consolidated balance sheet: Long-term receivables and other assets, net $ 85 $ 60 $ — $ — Accrued liabilities (96 ) (25 ) (72 ) (45 ) Deferred credits and other liabilities — pension and postretirement obligations (704 ) (46 ) (1,103 ) (763 ) $ (715 ) $ (11 ) $ (1,175 ) $ (808 ) Accumulated other comprehensive loss included the following after-tax balances: Net (gain) loss $ (25 ) $ 91 $ 184 $ 151 Prior service credit — — (67 ) (72 ) $ (25 ) $ 91 $ 117 $ 79 |
Funding status of Occidental's plans | The following tables show the funding status, obligations and plan asset fair values of Occidental related to its pension and postretirement benefit plans for the years ended December 31: Pension Benefits Postretirement Benefits millions 2019 2018 2019 2018 Changes in the benefit obligation: Benefit obligation — beginning of year $ 349 $ 391 $ 808 $ 999 Service cost — benefits earned during the period 45 5 24 23 Interest cost on projected benefit obligation 39 15 36 34 Actuarial (gain) loss (33 ) (19 ) 45 (90 ) Foreign currency exchange rate gain — (3 ) — — Curtailment (gain) loss (136 ) — 10 — Special termination benefits 49 — — — Benefits paid (95 ) (40 ) (51 ) (57 ) Participant contributions — — 2 — Plan amendments — — — (101 ) Additions due to the Acquisition 2,136 — 301 — Benefit obligation — end of year $ 2,354 $ 349 $ 1,175 $ 808 Changes in plan assets: Fair value of plan assets — beginning of year $ 338 $ 403 $ — $ — Actual return on plan assets 122 (33 ) — — Participant contributions — — 2 — Employer contributions 41 8 49 — Benefits paid (95 ) (40 ) (51 ) — Additions due to the Acquisition 1,233 — — — Fair value of plan assets — end of year $ 1,639 $ 338 $ — $ — Unfunded status: $ (715 ) $ (11 ) $ (1,175 ) $ (808 ) |
Schedule of projected benefit obligation, accumulated benefit obligation and fair value of plan assets for defined benefit pension plans with an accumulated benefit obligation in excess of plan assets and plan assets in excess of the accumulated benefit obligation | The following table sets forth details of the obligations and assets of Occidental’s defined benefit pension plans for the years December 31: Accumulated Benefit Obligation in Excess of Plan Assets Plan Assets in Excess of Accumulated Benefit Obligation millions 2019 2018 2019 2018 Projected benefit obligation $ 2,175 $ 173 $ 179 $ 176 Accumulated benefit obligation $ 1,918 $ 169 $ 179 $ 176 Fair value of plan assets $ 1,375 $ 98 $ 264 $ 240 |
Components of the net periodic benefit costs | The following table sets forth the components of net periodic benefit costs for the years ended December 31: Pension Benefits Postretirement Benefits millions 2019 2018 2017 2019 2018 2017 Net periodic benefit costs: Service cost — benefits earned during the period $ 45 $ 5 $ 6 $ 24 $ 23 $ 21 Interest cost on projected benefit obligation 39 15 17 36 34 38 Expected return on plan assets (50 ) (25 ) (24 ) — — — Recognized actuarial loss 9 7 10 8 14 14 Recognized prior service credit — — — (8 ) — — Liability (gain) loss due to curtailment (91 ) — — 6 — — Special termination benefits 49 — — — — — Other costs and adjustments (2 ) 1 3 — (2 ) 1 Net periodic benefit cost $ (1 ) $ 3 $ 12 $ 66 $ 69 $ 74 |
Weighted-average assumptions used to determine Occidental's benefit obligation and net periodic benefit cost for domestic plans | The following table sets forth the weighted-average assumptions used to determine Occidental’s benefit obligation and net periodic benefit cost for domestic plans for the years ended December 31: Pension Benefits Postretirement Benefits 2019 2018 2019 2018 Benefit Obligation Assumptions: Discount rate 3.10 % 4.09 % 3.26 % 4.29 % Net Periodic Benefit Cost Assumptions: Discount rate for January 1 - August 31 expense 3.21 % 3.45 % 3.41 % 3.61 % Discount rate for September 1 - December 31 expense 3.21 % 3.45 % 3.41 % 4.14 % Assumed long-term rate of return on assets 6.50 % 6.50 % — — Rates of increase in compensation levels 5.44 % — — — |
Fair values of Occidental's pension plan assets by asset category | The fair values of Occidental’s pension plan assets by asset category were as follows: millions Level 1 Level 2 Level 3 Total December 31, 2019 Asset Class: U.S. government securities $ 13 $ — $ — $ 13 Corporate bonds (a) — 60 — 60 Mutual funds: Bond funds 46 — — 46 International funds 68 — — 68 Common and preferred stocks (b) 173 — — 173 Other — 29 — 29 Investments measured at fair value $ 300 $ 89 $ — $ 389 Investments measured at net asset value (c) — — — 1,253 Total pension plan assets (d) $ 300 $ 89 $ — $ 1,642 December 31, 2018 Asset Class: U.S. government securities $ 17 $ — $ — $ 17 Corporate bonds (a) — 66 — 66 Common/collective trusts (e) — 9 — 9 Mutual funds: Bond funds 31 — — 31 Blend funds 48 — — 48 Common and preferred stocks (b) 141 — — 141 Other — 31 — 31 Total pension plan assets (d) $ 237 $ 106 $ — $ 343 (a) This category represents investment grade bonds of U.S. and non-U.S. issuers from diverse industries. (b) This category included investment funds that primarily invest in U.S. and non-U.S. common stocks and fixed-income securities. (c) This category represents direct investments in common and preferred stocks from diverse U.S. and non-U.S. industries. (d) Certain investments measured at fair value using the net asset value per share (or its equivalent) have not been categorized in the fair value hierarchy. Amounts presented in this table are intended to reconcile the fair value hierarchy to the pension plan assets. (e) Amounts exclude net payables of approximately $3 million and $5 million as of December 31, 2019 and 2018 , respectively. |
Estimated future benefit payments, which reflect expected future service, as appropriate | Estimated future benefit payments, which reflect expected future service, as appropriate, are as follows for the years ended December 31: millions Pension Benefits Postretirement Benefits 2020 $ 810 $ 73 2021 $ 113 $ 72 2022 $ 125 $ 71 2023 $ 128 $ 70 2024 $ 124 $ 68 2025 - 2029 $ 625 $ 321 |
INVESTMENTS AND RELATED-PARTY_2
INVESTMENTS AND RELATED-PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments And Related Party Transactions Disclosure [Abstract] | |
Schedule of significant equity investments | As of December 31, 2019 , Occidental’s significant equity investments primarily consisted of the following: millions % Interest Carrying amount WES 56.3 % $ 5,128 OxyChem Ingleside Facility 50.0 % 679 Dolphin Energy Limited 24.5 % 240 Other various 342 Total $ 6,389 |
Summarized financial information of equity-method investments | The following table presents the summarized financial information of its equity-method investments combined for the years ended and as of December 31: millions 2019 2018 2017 Summarized Results of Operations (a) Revenues and other income $ 26,520 $ 28,091 $ 13,843 Costs and expenses 24,084 25,029 12,230 Net income $ 2,436 $ 3,062 $ 1,613 Summarized Balance Sheet (b) Current assets $ 1,130 $ 5,587 $ 5,754 Non-current assets $ 21,158 $ 25,871 $ 25,108 Current liabilities $ 785 $ 4,879 $ 4,479 Long-term debt $ 8,673 $ 12,505 $ 14,091 Other non-current liabilities $ 859 $ 95 $ 414 Stockholders’ equity $ 11,971 $ 13,979 $ 11,878 (a) The 2019 Summarized Results of Operations include results of Plains for the period beginning January 1, 2019 through the date Occidental ’ s interest was sold in September 2019. (b) |
Summary of related-party transactions | During 2019 , 2018 and 2017 , Occidental entered into the following related-party transactions and had the following amounts due from or to its related parties for the years ended December 31: millions 2019 2018 2017 Sales (a,c) $ 691 $ 805 $ 636 Purchases (b,c) $ 463 $ 502 $ 387 Services $ 28 $ 52 $ 38 Advances and amounts due from related parties $ 133 $ 63 $ 63 Amounts due to related parties (d) $ 463 $ 46 $ 45 (a) In 2019 , 2018 and 2017 , sales of Occidental-produced oil and NGL to Plains Pipeline affiliates accounted for 87 percent , 89 percent and 86 percent of these totals, respectively. In September 2019, Occidental sold its remaining interest in Plains Pipeline. (b) In 2019 and 2018 , purchases of ethylene from the Ingleside ethylene cracker accounted for 98 percent of related-party purchases, respectively. (c) Excluded sales to and purchases from WES as it was a consolidated subsidiary from the date of the Acquisition through December 31, 2019. (d) Amounts due to related parties at December 31, 2019 primarily consists of a 6.5% note payable to WES due 2038. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on a recurring basis | The following tables provide fair value measurement information for assets and liabilities that are measured on a recurring basis: millions Fair Value Measurements Using Total Fair Value Balance Sheet Classification Level 1 Level 2 Level 3 Netting December 31, 2019 Embedded Derivatives Accrued liabilities $ — $ 40 $ — $ — $ 40 Deferred credits and other liabilities - other $ — $ 49 $ — $ — $ 49 December 31, 2018 Embedded Derivatives Accrued liabilities $ — $ 66 $ — $ — $ 66 Deferred credits and other liabilities - other $ — $ 116 $ — $ — $ 116 |
INDUSTRY SEGMENTS AND GEOGRAP_2
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of industry segments | millions Oil and Gas Chemical Marketing and Midstream Corporate and Eliminations Total Year ended December 31, 2019 Net sales $ 13,423 $ 4,102 $ 4,132 $ (1,264 ) $ 20,393 Income (loss) from continuing operations before income taxes $ 2,352 (a) $ 799 $ 241 (b) $ (3,206 ) (c) $ 186 Income tax expense — — — (693 ) (d) (693 ) Income (loss) from continuing operations $ 2,352 $ 799 $ 241 $ (3,899 ) $ (507 ) Investments in unconsolidated entities $ 181 $ 689 $ 5,519 $ — $ 6,389 Property, plant and equipment additions (e) $ 5,559 $ 272 $ 475 $ 135 $ 6,441 Depreciation, depletion and amortization $ 4,994 $ 368 $ 563 $ 56 $ 5,981 Total assets $ 77,936 $ 4,361 $ 17,055 $ 9,978 $ 109,330 Year ended December 31, 2018 Net sales $ 10,441 $ 4,657 $ 3,656 $ (930 ) $ 17,824 Income (loss) from continuing operations before income taxes $ 2,442 (a) $ 1,159 $ 2,802 (b) $ (795 ) (c) $ 5,608 Income tax expense — — — (1,477 ) (d) (1,477 ) Income (loss) from continuing operations $ 2,442 $ 1,159 $ 2,802 $ (2,272 ) $ 4,131 Investments in unconsolidated entities $ — $ 733 $ 947 $ — $ 1,680 Property, plant and equipment additions (e) $ 4,443 $ 277 $ 221 $ 79 $ 5,020 Depreciation, depletion and amortization $ 3,254 $ 354 $ 331 $ 38 $ 3,977 Total assets $ 24,874 $ 4,359 $ 11,087 $ 3,534 $ 43,854 Year ended December 31, 2017 Net sales $ 7,870 $ 4,355 $ 1,157 $ (874 ) $ 12,508 Income (loss) from continuing operations before income taxes $ 1,111 (a) $ 822 $ 85 (b) $ (690 ) (c) $ 1,328 Income tax expense — — — (17 ) (d) (17 ) Income (loss) from continuing operations $ 1,111 $ 822 $ 85 $ (707 ) $ 1,311 Investments in unconsolidated entities $ — $ 771 $ 739 $ 5 $ 1,515 Property, plant and equipment additions (e) $ 2,968 $ 323 $ 296 $ 64 $ 3,651 Depreciation, depletion and amortization $ 3,269 $ 352 $ 340 $ 41 $ 4,002 Total assets $ 23,595 $ 4,364 $ 11,775 $ 2,292 $ 42,026 (a) The 2019 amount included a net gain on sale of $475 million related to Occidental’s joint venture with Ecopetrol in the Midland Basin and sale of real estate assets, a $285 million impairment charge associated with domestic undeveloped leases that were set to expire in the near term, where Occidental had no plans to pursue exploration activities, and a $39 million charge related to Occidental’s mutually agreed early termination of its Qatar ISSD contract. The 2018 amount included $416 million for the impairment of proved oil properties and inventory in Qatar ISND and ISSD due to the decline in oil prices. The 2017 amount included pre-tax asset sale gains of $655 million primarily related to South Texas and non-core acreage in the Permian basin and $397 million for the impairment of non-core proved and unproved Permian acreage. (b) The 2019 amount included a $1 billion charge as a result of recording Occidental’s investment in WES at fair value as of December 31, 2019 upon the loss of control, a $114 million gain on the sale of an equity investment in Plains and a $30 million mark-to-market gain on an interest rate swap for WES. The 2018 amount included pre-tax asset sale gains of $907 million on the sale of non-core domestic midstream assets. The 2017 amount included pre-tax charges of $120 million related to asset impairments of idled facilities. (c) The 2019 amount included corporate transactions related to the Acquisition including charges of $1.0 billion related to employee severance and related costs, $401 million related to crucial seismic data and $213 million for bank, legal and consulting fees. There were no significant corporate transactions and events affecting 2018 and 2017 results. The tax effect of these pre-tax adjustments was a $245 million benefit in 2019, and $198 million expense and $392 million expense in 2018 and 2017, respectively. (d) Included all foreign and domestic income taxes from continuing operations. (e) Included capital expenditures and capitalized interest, but excluded acquisition and disposition of assets. |
Net sales and property, plant and equipment, net by geographic areas | Property, plant and equipment, net millions 2019 2018 2017 United States $ 72,808 $ 23,594 $ 22,863 International United Arab Emirates 3,887 4,051 4,241 Oman 2,115 2,048 1,962 Colombia 1,010 927 807 Qatar 562 741 1,236 Other International 87 76 65 Total International 7,661 7,843 8,311 Total $ 80,469 $ 31,437 $ 31,174 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - NATURE OF OPERATIONS, WES INVESTMENT AND DISCONTINUED OPERATIONS (Details) $ in Millions | Aug. 08, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($)segment | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
NATURE OF OPERATIONS | ||||||
Number of reportable segments | segment | 3 | |||||
Summary of significant accounting policies | ||||||
Equity method investment amounts | $ 6,389 | $ 6,389 | $ 1,680 | $ 1,515 | ||
Mozambique LNG Assets | Disposed of by sale | ||||||
Summary of significant accounting policies | ||||||
Sale consideration | $ 4,200 | |||||
WES | ||||||
Summary of significant accounting policies | ||||||
Equity method investment amounts | 5,128 | 5,128 | ||||
Charge recorded as a result of loss of control | 1,000 | |||||
Anadarko Petroleum Corporation | ||||||
Summary of significant accounting policies | ||||||
Revenues from date of the Acquisition | 4,200 | |||||
Equity method investment amounts | 2,800 | $ 2,800 | ||||
Anadarko Petroleum Corporation | Africa Assets | Assets held for sale | ||||||
Summary of significant accounting policies | ||||||
Sale consideration | $ 8,800 | |||||
WES | Anadarko Petroleum Corporation | ||||||
Summary of significant accounting policies | ||||||
Revenues from date of the Acquisition | 1,100 | |||||
Expenses from date of the Acquisition | 500 | |||||
Operating cash flows from date of the Acquisition | 498 | |||||
WES Operating | ||||||
Summary of significant accounting policies | ||||||
Non-voting general partner unit interest | 2.00% | |||||
WES | ||||||
Summary of significant accounting policies | ||||||
Limited partner interest | 55.40% | |||||
Non-voting general partner unit interest | 2.00% | |||||
Limited partner unit interest | 54.50% | |||||
Total effective economic interest in WES | 56.30% | |||||
Pro rata share of net assets | 1,900 | $ 1,900 | ||||
Tax basis difference | $ 3,200 | $ 3,200 | ||||
WES | ||||||
Summary of significant accounting policies | ||||||
Percentage of unaffiliated unitholders | 20.00% | |||||
WES | Occidental | ||||||
Summary of significant accounting policies | ||||||
Voting percentage for certain unitholder matters, limit | 45.00% | |||||
Limited partner units percentage | 40.00% | |||||
Transfer of limited partner interest, percentage | 2.00% | |||||
Economic interest to general partner, percentage | 2.00% | |||||
WES | WES Operating | ||||||
Summary of significant accounting policies | ||||||
Limited partner interest | 98.00% | |||||
Public Ownership | WES | WES | ||||||
Summary of significant accounting policies | ||||||
Limited partner interest | 44.60% |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - RISKS AND UNCERTAINTIES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
RISKS AND UNCERTAINTIES | |||
Assets | $ 109,330 | $ 43,854 | $ 42,026 |
Net sales | 18,674 | $ 15,560 | |
Outside North America | |||
RISKS AND UNCERTAINTIES | |||
Assets | 14,900 | ||
Net sales | $ 4,600 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 3,032 | $ 3,033 | ||
Restricted cash and restricted cash equivalents | 480 | 0 | ||
Cash and restricted cash included in assets held for sale | 8 | |||
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | 54 | |||
Cash, cash equivalents, restricted cash, and restricted cash equivalents | $ 3,574 | $ 3,033 | $ 1,672 | $ 2,233 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CASH (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounting Policies [Abstract] | ||
Trade receivables, net | $ 6,373 | $ 4,893 |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - PROPERTY, PLANT AND EQUIPMENT AND GOODWILL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized exploratory well costs for continuing operations | |||
Balance — beginning of year | $ 112 | $ 108 | $ 56 |
Exploratory well costs acquired through the Acquisition | 231 | 0 | 0 |
Additions to capitalized exploratory well costs pending the determination of proved reserves | 383 | 220 | 201 |
Reclassifications to property, plant and equipment based on the determination of proved reserves | (230) | (198) | (128) |
Capitalized exploratory well costs charged to expense | (72) | (18) | (21) |
Balance — end of year | 424 | 112 | $ 108 |
Net capitalized costs attributable to unproved properties | 29,500 | $ 1,000 | |
Goodwill derecognized | 4,600 | ||
Anadarko Petroleum Corporation | |||
Capitalized exploratory well costs for continuing operations | |||
Goodwill recognized associated with the Acquisition | $ 5,800 | ||
Chemical | Low end of range | |||
Capitalized exploratory well costs for continuing operations | |||
The estimated useful lives of Occidental's chemical assets | 3 years | ||
Chemical | High end of range | |||
Capitalized exploratory well costs for continuing operations | |||
The estimated useful lives of Occidental's chemical assets | 50 years | ||
Marketing and Midstream | |||
Capitalized exploratory well costs for continuing operations | |||
Goodwill | $ 1,200 |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSET IMPAIRMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Summary of significant accounting policies | |||
Impairments of assets | $ 285 | ||
Qatar ISSD | |||
Summary of significant accounting policies | |||
Impairments of assets | $ 39 | ||
Qatar ISND and ISSD | |||
Summary of significant accounting policies | |||
Impairments of assets | $ 416 | ||
Proved and unproved non-core Permian | |||
Summary of significant accounting policies | |||
Impairments of assets | $ 397 | ||
Marketing and Midstream | |||
Summary of significant accounting policies | |||
Impairments of assets | $ 100 | ||
Other asset impairment related charges | $ 120 |
SUMMARY OF SIGNIFICANT ACCOU_10
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ACCRUED LIABILITIES-CURRENT (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
ACCRUED LIABILITIES-CURRENT | ||
Accrued liabilities for accrued payroll, commissions and related expenses | $ 1,200 | $ 428 |
Dividends payable | 884 | 600 |
Derivative financial instruments, included in accrued liabilities - current | $ 641 | $ 134 |
SUMMARY OF SIGNIFICANT ACCOU_11
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ENVIRONMENTAL LIABILITIES AND EXPENDITURES (Details) | 12 Months Ended |
Dec. 31, 2019 | |
ENVIRONMENTAL LIABILITIES AND EXPENDITURES | |
Minimum period of investigations and cleanup for Comprehensive Environmental Response, Compensation and Liability Act National Priorities List sites | 10 years |
SUMMARY OF SIGNIFICANT ACCOU_12
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASSET RETIREMENT OBLIGATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Asset retirement obligation | ||
Beginning balance | $ 1,499 | $ 1,312 |
Liabilities assumed in the Acquisition | 3,344 | 0 |
Liabilities incurred – capitalized to PP&E | 131 | 31 |
Liabilities settled and paid | (200) | (40) |
Accretion expense | 71 | 67 |
Acquisitions, dispositions and other | 0 | (18) |
WES loss of control | (359) | 0 |
Revisions to previous estimates | 147 | 147 |
Ending balance | 4,633 | 1,499 |
Asset retirement obligations, current balance included in Accrued Liabilities | $ 248 | $ 75 |
SUMMARY OF SIGNIFICANT ACCOU_13
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - DERIVATIVE INSTRUMENTS (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Low end of range | |
DERIVATIVE INSTRUMENTS | |
Range used to determine if derivative instrument is effective | 80.00% |
High end of range | |
DERIVATIVE INSTRUMENTS | |
Range used to determine if derivative instrument is effective | 125.00% |
SUMMARY OF SIGNIFICANT ACCOU_14
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Interest paid | $ 911 | $ 383 | $ 351 |
Capitalized interest | 85 | 46 | 52 |
Continuing operations | |||
SUPPLEMENTAL CASH FLOW INFORMATION | |||
Foreign, state and federal income taxes paid for continuing operations | 1,700 | 1,100 | 800 |
Tax refund | 79 | 82 | 768 |
Production, property and other taxes paid | $ 725 | $ 505 | $ 375 |
ACCOUNTING AND DISCLOSURE CHA_2
ACCOUNTING AND DISCLOSURE CHANGES - NARRATIVE (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounting Standards Update 2018-02 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Reclassification of stranded tax effects | $ 58 |
THE ACQUISITION - NARRATIVE (De
THE ACQUISITION - NARRATIVE (Details) - USD ($) | Aug. 08, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Aug. 07, 2019 |
WES | ||||
Business Acquisition [Line Items] | ||||
Limited partner interest | 55.40% | |||
WES | WES | Public Ownership | ||||
Business Acquisition [Line Items] | ||||
Limited partner interest | 44.60% | |||
Revolving Credit Facility | ||||
Business Acquisition [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 3,000,000,000 | |||
Anadarko Petroleum Corporation | ||||
Business Acquisition [Line Items] | ||||
Cash of acquirer in exchange for acquiree (usd per share) | $ 59 | |||
Exchange ratio (per share of Anadarko common stock) | 0.2934 | |||
Closing price per share, common stock (usd per share) | $ 46.31 | |||
Debt instrument issued | $ 21,800,000,000 | |||
Amount from exercise of warrants | 10,000,000,000 | |||
Assumed debt | 13,240,000,000 | |||
Property, plant and equipment | 49,074,000,000 | |||
Revenues from date of merger | $ 4,200,000,000 | |||
Net loss attributable to common shareholders from date of merger | 1,700,000,000 | |||
Anadarko Petroleum Corporation | Proved gas and oil properties | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 19,100,000,000 | |||
Anadarko Petroleum Corporation | Unproved Properties | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | 27,400,000,000 | |||
Anadarko Petroleum Corporation | Land, Mineral Interests And Corporate Properties | ||||
Business Acquisition [Line Items] | ||||
Property, plant and equipment | $ 2,500,000,000 | |||
Anadarko Petroleum Corporation | Customer Relationships | ||||
Business Acquisition [Line Items] | ||||
Amortization period | 30 years | |||
Anadarko Petroleum Corporation | Level 2 | ||||
Business Acquisition [Line Items] | ||||
Assumed debt | $ 2,500,000,000 | |||
Anadarko Petroleum Corporation | WES | ||||
Business Acquisition [Line Items] | ||||
Assumed debt | 7,407,000,000 | |||
Property, plant and equipment | 10,160,000,000 | |||
Anadarko Petroleum Corporation | WES | Level 2 | ||||
Business Acquisition [Line Items] | ||||
Assumed debt | 730,000,000 | |||
Anadarko Petroleum Corporation | WES | ||||
Business Acquisition [Line Items] | ||||
Revenues from date of merger | $ 1,100,000,000 | |||
Anadarko Petroleum Corporation | Revolving Credit Facility | ||||
Business Acquisition [Line Items] | ||||
Revolving credit facility, additional commitment | $ 2,000,000,000 | |||
Anadarko Petroleum Corporation | Series A Preferred Stock | ||||
Business Acquisition [Line Items] | ||||
Shares issued (in shares) | 100,000 | |||
Anadarko Petroleum Corporation | Common Stock | ||||
Business Acquisition [Line Items] | ||||
Closing price per share, common stock (usd per share) | $ 46.31 | |||
Shares issued (in shares) | 144,000,000 | |||
Number of securities called by warrant (in shares) | 80,000,000 | |||
Exercise price of warrant (usd per share) | $ 62.50 | |||
Anadarko Petroleum Corporation | Senior notes | ||||
Business Acquisition [Line Items] | ||||
Debt instrument issued | $ 13,000,000,000 | |||
Anadarko Petroleum Corporation | Secured Debt | ||||
Business Acquisition [Line Items] | ||||
Debt instrument issued | $ 8,800,000,000 |
THE ACQUISITION - SCHEDULE OF P
THE ACQUISITION - SCHEDULE OF PURCHASE CONSIDERATION PAID (Details) - Anadarko Petroleum Corporation $ / shares in Units, $ in Millions | Aug. 08, 2019USD ($)$ / sharesshares |
Business Acquisition [Line Items] | |
Total shares of Anadarko common stock eligible for Merger consideration (in shares) | 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 Acquisition consideration | $ | $ 29,002 |
Total shares of Anadarko common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration (in shares) | shares | 491,600,000 |
Exchange ratio (per share of Anadarko common stock) | shares | 0.2934 |
Average share price of Occidental common stock at August 8, 2019 (usd per share) | $ / shares | $ 46.31 |
Stock portion of Acquisition consideration | $ | $ 23 |
Total Acquisition consideration | $ | $ 35,704 |
Common Stock | |
Business Acquisition [Line Items] | |
Total shares of Occidental common stock issued to Anadarko stockholders (in shares) | shares | 144,000,000 |
Average share price of Occidental common stock at August 8, 2019 (usd per share) | $ / shares | $ 46.31 |
Stock portion of Acquisition consideration | $ | $ 6,679 |
THE ACQUISITION - PRELIMINARY P
THE ACQUISITION - PRELIMINARY PURCHASE PRICE ALLOCATION (Details) - Anadarko Petroleum Corporation $ in Millions | Aug. 08, 2019USD ($) |
Fair value of assets acquired: | |
Current assets | $ 3,596 |
Africa Assets held for sale | 10,616 |
Investments in unconsolidated entities | 194 |
Property, plant and equipment | 49,074 |
Other assets | 836 |
Amount attributable to assets acquired | 64,316 |
Fair value of liabilities assumed: | |
Current liabilities | 3,410 |
Liabilities of Africa Assets held for sale | 2,200 |
Long-term debt | 13,240 |
Deferred income taxes | 8,607 |
Asset retirement obligations | 2,724 |
Pension and post-retirement obligations | 1,072 |
Non-current derivative liabilities | 1,280 |
Other long-term liabilities | 2,323 |
Amount attributable to liabilities assumed | 34,856 |
Net assets | 29,460 |
Fair value of noncontrolling interests | 6,244 |
Total Acquisition consideration | 35,704 |
WES | |
Fair value of assets acquired: | |
Current assets | 499 |
Investments in unconsolidated entities | 2,425 |
Property, plant and equipment | 10,160 |
Intangible assets - customer relationships | 1,800 |
Goodwill | 5,772 |
Other assets | 342 |
Amount attributable to assets acquired | 20,998 |
Fair value of liabilities assumed: | |
Current liabilities | 815 |
Long-term debt | 7,407 |
Deferred income taxes | 1,174 |
Asset retirement obligations | 321 |
Other long-term liabilities | 142 |
Amount attributable to liabilities assumed | 9,859 |
Net assets | 11,139 |
Fair value of noncontrolling interests | 4,895 |
Total Acquisition consideration | $ 6,244 |
THE ACQUISITION - PRO FORMA INF
THE ACQUISITION - PRO FORMA INFORMATION (Details) - Anadarko Petroleum Corporation - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenues | $ 28,723 | $ 31,206 |
Net income (loss) attributable to common stockholders | $ (769) | $ 2,965 |
Net income (loss) attributable to common stockholders per share—basic (usd per share) | $ (0.95) | $ 3.26 |
Net income (loss) attributable to common stockholders per share—diluted (usd per share) | $ (0.95) | $ 3.25 |
Net income (loss) attributable to common stockholders excluding pro-forma results of WES | $ (1,100) | $ 2,800 |
THE ACQUISITION - MERGER-RELATE
THE ACQUISITION - MERGER-RELATED COSTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | |||
Total | $ 1,647 | $ 0 | $ 0 |
Anadarko Petroleum Corporation | |||
Business Acquisition [Line Items] | |||
Employee severance and related employee cost | 1,033 | ||
Licensing fees for critical seismic data | 401 | ||
Bank, legal, consulting and other | 213 | ||
Total | $ 1,647 |
ACQUISITIONS, DISPOSITIONS AN_3
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS - NARRATIVE (Details) ft² in Thousands, $ in Millions | Sep. 23, 2019USD ($) | Dec. 31, 2019USD ($) | Nov. 30, 2019USD ($)ft² | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jul. 31, 2018USD ($) | Mar. 31, 2018USD ($) | Apr. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($)divestiture | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Aug. 08, 2019USD ($) |
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Proceeds from real estate assets disposed | $ 565 | |||||||||||||
Finance lease | $ 398 | $ 398 | $ 86 | |||||||||||
Acquisition cost | $ 6,441 | $ 5,020 | $ 3,651 | |||||||||||
Seminole-San Andres EOR | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Cost of acquired business assets | $ 600 | |||||||||||||
Previously Leased Power And Steam Cogeneration Facility | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Acquisition cost | $ 443 | |||||||||||||
Ecopetrol Joint Venture | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Area of development in joint venture | ft² | 97 | |||||||||||||
Ownership percentage in joint venture | 51.00% | |||||||||||||
Plains All American Pipeline, LP | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Net proceeds from sale of equity investment | $ 646 | |||||||||||||
Pre-tax gain on sale of equity investment | $ 114 | |||||||||||||
Ecopetrol | Ecopetrol Joint Venture | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Amount due at closing | $ 750 | |||||||||||||
Carried capital | $ 750 | |||||||||||||
Minority interest in new venture | 49.00% | |||||||||||||
Gain on sale | $ 563 | |||||||||||||
Percentage share of capital expenditures | 75.00% | |||||||||||||
Share of capital expenditures (up to) | $ 750 | |||||||||||||
Failed Sale-Leaseback | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Lease term | 13 years | 13 years | ||||||||||||
Finance lease | $ 300 | $ 300 | ||||||||||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Non Core Midstream Assets | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 2,600 | $ 150 | ||||||||||||
Proceeds received for divested assets | 2,400 | |||||||||||||
Pre-tax net gain from divestiture | $ 907 | $ 43 | ||||||||||||
Disposed of by sale | Mozambique LNG Assets | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 4,200 | |||||||||||||
Disposed of by sale | Non-strategic acreage in Permian Basin Counties | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 600 | |||||||||||||
Number of divestitures of non-strategic acreage | divestiture | 2 | |||||||||||||
Pre-tax gain on disposal | $ 81 | |||||||||||||
Disposed of by sale | Non-core Permian acreage | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 90 | 90 | ||||||||||||
Pre-tax gain on disposal | 55 | |||||||||||||
Disposed of by sale | South Texas operations | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 500 | |||||||||||||
Pre-tax gain on disposal | $ 500 | |||||||||||||
Assets held for sale | Non-core Permian acreage | ||||||||||||||
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS | ||||||||||||||
Sale consideration | $ 500 | $ 500 |
ACQUISITIONS, DISPOSITIONS AN_4
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS - SUMMARY OF REVENUE AND COSTS FROM DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Costs and other deductions | ||||
Discontinued operations, net of tax | $ (15) | $ 0 | $ 0 | |
Anadarko's Africa Assets | Disposed of by sale | ||||
Revenues and other income | ||||
Net sales | $ 739 | |||
Costs and other deductions | ||||
Oil and gas lease operating expense | 81 | |||
Transportation expense | 14 | |||
Taxes other than on income | 133 | |||
Fair value adjustment on assets held for sale | 244 | |||
Other | 53 | |||
Total costs and other deductions | 525 | |||
Income before income taxes | 214 | |||
Income tax expense | (229) | |||
Discontinued operations, net of tax | $ (15) |
ACQUISITIONS, DISPOSITIONS AN_5
ACQUISITIONS, DISPOSITIONS AND OTHER TRANSACTIONS - SUMMARY OF ASSETS HELD FOR SALE (Details) - Anadarko's Africa Assets - Disposed of by sale $ in Millions | Dec. 31, 2019USD ($) |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Current assets | $ 289 |
Property, plant and equipment, net | 5,481 |
Long-term receivables and other assets, net | 256 |
Assets held for sale | 6,026 |
Current liabilities | 452 |
Long-term debt, net - finance leases | 185 |
Deferred income taxes | 1,112 |
Asset retirement obligations | 181 |
Other | 80 |
Liabilities of assets held for sale | 2,010 |
Net assets held for sale | $ 4,016 |
REVENUE - IMPACT OF ADOPTION (D
REVENUE - IMPACT OF ADOPTION (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Low end of range | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract term | 1 month |
High end of range | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Contract term | 1 year |
REVENUE - RECONCILIATION (Detai
REVENUE - RECONCILIATION (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Revenue from customers | $ 18,674 | $ 15,560 | |
All other revenue | 1,719 | 2,264 | |
Net sales | $ 20,393 | $ 17,824 | $ 12,508 |
REVENUE - DISAGGREGATION OF REV
REVENUE - DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | $ 18,674 | $ 15,560 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 15,327 | 11,086 |
Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 3,686 | 4,388 |
Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 858 | 936 |
Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 67 | 80 |
Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | (1,264) | (930) |
Intersegment Eliminations | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Intersegment Eliminations | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Intersegment Eliminations | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Intersegment Eliminations | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 13,530 | 10,441 |
Oil and Gas Segment | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 11,852 | 9,245 |
Oil and Gas Segment | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 921 | 691 |
Oil and Gas Segment | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 763 | 495 |
Oil and Gas Segment | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | (6) | 10 |
Oil and Gas Segment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 9,492 | 5,747 |
Oil and Gas Segment | United States | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 8,411 | 5,125 |
Oil and Gas Segment | United States | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 658 | 430 |
Oil and Gas Segment | United States | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 424 | 185 |
Oil and Gas Segment | United States | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | (1) | 7 |
Oil and Gas Segment | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 3,335 | 3,963 |
Oil and Gas Segment | Middle East | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 2,758 | 3,405 |
Oil and Gas Segment | Middle East | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 263 | 261 |
Oil and Gas Segment | Middle East | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 319 | 294 |
Oil and Gas Segment | Middle East | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | (5) | 3 |
Oil and Gas Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 703 | 731 |
Oil and Gas Segment | Latin America | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 683 | 715 |
Oil and Gas Segment | Latin America | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Latin America | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 20 | 16 |
Oil and Gas Segment | Latin America | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Other International | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Intersegment Eliminations | Oil | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Intersegment Eliminations | NGL | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Intersegment Eliminations | Gas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Oil and Gas Segment | Intersegment Eliminations | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Chemical Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 4,080 | 4,648 |
Chemical Segment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 3,858 | 4,363 |
Chemical Segment | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Chemical Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 155 | 205 |
Chemical Segment | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 67 | 80 |
Chemical Segment | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 2,328 | 1,401 |
Midstream Segment | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 746 | 982 |
Midstream Segment | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 1,110 | |
Midstream Segment | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 311 | |
Midstream Segment | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 472 | 108 |
Midstream Segment | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 1,977 | 976 |
Midstream Segment | United States | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 395 | 557 |
Midstream Segment | United States | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 1,110 | |
Midstream Segment | United States | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 311 | |
Midstream Segment | United States | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 472 | 108 |
Midstream Segment | Middle East | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 351 | 425 |
Midstream Segment | Middle East | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 351 | 425 |
Midstream Segment | Middle East | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Middle East | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Middle East | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Latin America | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Latin America | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Latin America | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Other International | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Other International | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Other International | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Intersegment Eliminations | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Intersegment Eliminations | Gas Processing | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | 0 |
Midstream Segment | Intersegment Eliminations | Gas Processing | WES | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Intersegment Eliminations | Pipelines | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | 0 | |
Midstream Segment | Intersegment Eliminations | Power and Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue from customers | $ 0 | $ 0 |
REVENUE - SCHEDULE OF EXPECTED
REVENUE - SCHEDULE OF EXPECTED FUTURE REVENUE (Details) $ in Millions | Dec. 31, 2019USD ($) |
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 | $ 103 |
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 | $ 103 |
Remaining performance obligation, period | 1 year |
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 | $ 7 |
Remaining performance obligation, period | 1 year |
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 | $ 7 |
Remaining performance obligation, period | 1 year |
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 | $ 7 |
Remaining performance obligation, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Performance obligation expected to be satisfied | $ 280 |
Remaining performance obligation, period |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Net carrying value of inventories valued under the LIFO method | $ 168 | $ 169 |
Raw materials | 75 | 74 |
Materials and supplies | 879 | 445 |
Commodity inventory and finished goods | 533 | 788 |
Inventories | 1,487 | 1,307 |
Revaluation to LIFO | (40) | (47) |
Total | $ 1,447 | $ 1,260 |
LONG-TERM DEBT - SCHEDULE (Deta
LONG-TERM DEBT - SCHEDULE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 37,400,000,000 | $ 10,407,000,000 |
Unamortized discount, net | (36,000,000) | |
Debt issuance costs | (54,000,000) | |
Long-term finance leases | 347,000,000 | |
Current maturities | (51,000,000) | (116,000,000) |
Total | 38,537,000,000 | $ 10,201,000,000 |
Occidental | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 37,401,000,000 | |
Unamortized discount, net | 914,000,000 | |
Debt issuance costs | (125,000,000) | |
Long-term finance leases | 347,000,000 | |
Long-term debt | $ 38,537,000,000 | |
4.850% senior notes due 2021 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.85% | |
Long-term debt, gross | $ 677,000,000 | |
2.600% senior notes due 2021 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.60% | |
Long-term debt, gross | $ 1,500,000,000 | |
4.100% senior notes due 2021 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.10% | |
Long-term debt, gross | $ 1,249,000,000 | |
4.100% senior notes due 2021 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.10% | |
Long-term debt, gross | $ 1,249,000,000 | |
Variable rate bonds due 2021, 2.854% | Variable rate bonds | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 2.854% | |
Long-term debt, gross | $ 500,000,000 | |
Variable rate bonds due 2021, 3.151% | Variable rate bonds | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 3.151% | |
Long-term debt, gross | $ 500,000,000 | |
2-year variable rate Term Loan due 2021, 3.111% | Secured Debt | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 3.111% | |
Debt instrument, term | 2 years | |
Long-term debt, gross | $ 1,956,000,000 | |
2.700% senior notes due 2022 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.70% | |
Long-term debt, gross | $ 2,000,000,000 | |
3.125% senior notes due 2022 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.125% | |
Long-term debt, gross | $ 813,000,000 | |
3.125% senior notes due 2022 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.125% | |
Long-term debt, gross | $ 814,000,000 | |
2.600% senior notes due 2022 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.60% | |
Long-term debt, gross | $ 400,000,000 | |
2.600% senior notes due 2022 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.60% | |
Long-term debt, gross | $ 400,000,000 | |
Variable rate bonds due 2022, 3.360% | Variable rate bonds | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 3.36% | |
Long-term debt, gross | $ 1,500,000,000 | |
2.700% senior notes due 2023 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.70% | |
Long-term debt, gross | $ 1,191,000,000 | |
2.700% senior notes due 2023 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.70% | |
Long-term debt, gross | $ 1,191,000,000 | |
8.750% medium-term notes due 2023 | Medium-term notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 8.75% | |
Long-term debt, gross | $ 22,000,000 | |
8.750% medium-term notes due 2023 | Medium-term notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 8.75% | |
Long-term debt, gross | $ 22,000,000 | |
2.900% senior notes due 2024 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 2.90% | |
Long-term debt, gross | $ 3,000,000,000 | |
6.950% senior notes due 2024 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.95% | |
Long-term debt, gross | $ 650,000,000 | |
3.450% senior notes due 2024 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.45% | |
Long-term debt, gross | $ 248,000,000 | |
3.500% senior notes due 2025 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.50% | |
Long-term debt, gross | $ 750,000,000 | |
3.500% senior notes due 2025 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.50% | |
Long-term debt, gross | $ 750,000,000 | |
5.550% senior notes due 2026 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 5.50% | |
Long-term debt, gross | $ 1,100,000,000 | |
3.200% senior notes due 2026 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.20% | |
Long-term debt, gross | $ 1,000,000,000 | |
3.400% senior notes due 2026 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.40% | |
Long-term debt, gross | $ 1,150,000,000 | |
3.400% senior notes due 2026 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.40% | |
Long-term debt, gross | $ 1,150,000,000 | |
7.500% debentures due 2026 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.50% | |
Long-term debt, gross | $ 112,000,000 | |
3.000% senior notes due 2027 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.00% | |
Long-term debt, gross | $ 750,000,000 | |
3.000% senior notes due 2027 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.00% | |
Long-term debt, gross | $ 750,000,000 | |
7.125% debentures due 2027 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.125% | |
Long-term debt, gross | $ 150,000,000 | |
7.000% debentures due 2027 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.00% | |
Long-term debt, gross | $ 48,000,000 | |
6.625% debentures due 2028 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.625% | |
Long-term debt, gross | $ 14,000,000 | |
7.150% debentures due 2028 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.15% | |
Long-term debt, gross | $ 235,000,000 | |
7.200% senior debentures due 2028 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.20% | |
Long-term debt, gross | $ 82,000,000 | |
7.200% senior debentures due 2028 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.20% | |
Long-term debt, gross | $ 82,000,000 | |
7.200% debentures due 2029 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.20% | |
Long-term debt, gross | $ 135,000,000 | |
7.950% debentures due 2029 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.95% | |
Long-term debt, gross | $ 116,000,000 | |
8.450% senior debentures due 2029 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 8.45% | |
Long-term debt, gross | $ 116,000,000 | |
8.450% senior debentures due 2029 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 8.45% | |
Long-term debt, gross | $ 116,000,000 | |
3.500% senior notes due 2029 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 3.50% | |
Long-term debt, gross | $ 1,500,000,000 | |
Variable rate bonds due 2030, 1.705% | Variable rate bonds | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.705% | |
Long-term debt, gross | $ 68,000,000 | |
7.500% senior notes due 2031 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.50% | |
Long-term debt, gross | $ 900,000,000 | |
7.875% senior notes due 2031 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.875% | |
Long-term debt, gross | $ 500,000,000 | |
6.450% senior notes due 2036 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.45% | |
Long-term debt, gross | $ 1,750,000,000 | |
Zero Coupon senior notes due 2036 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 5.24% | |
Face value | $ 2,300,000,000 | |
Zero Coupon senior notes due 2036 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,271,000,000 | |
6.500% note payable to WES due 2038 | Note payable | WES | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.50% | |
Long-term debt, gross | $ 260,000,000 | |
4.300% senior notes due 2039 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.30% | |
Long-term debt, gross | $ 750,000,000 | |
7.950% senior notes due 2039 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.95% | |
Long-term debt, gross | $ 325,000,000 | |
6.200% senior notes due 2040 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.20% | |
Long-term debt, gross | $ 750,000,000 | |
4.500% senior notes due 2044 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.50% | |
Long-term debt, gross | $ 625,000,000 | |
4.625% senior notes due 2045 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.625% | |
Long-term debt, gross | $ 750,000,000 | |
4.625% senior notes due 2045 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.625% | |
Long-term debt, gross | $ 750,000,000 | |
6.600% senior notes due 2046 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 6.60% | |
Long-term debt, gross | $ 1,100,000,000 | |
4.400% senior notes due 2046 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.40% | |
Long-term debt, gross | $ 1,200,000,000 | |
4.400% senior notes due 2046 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.40% | |
Long-term debt, gross | $ 1,200,000,000 | |
4.100% senior notes due 2047 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.10% | |
Long-term debt, gross | $ 750,000,000 | |
4.100% senior notes due 2047 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.10% | |
Long-term debt, gross | $ 750,000,000 | |
4.200% senior notes due 2048 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.20% | |
Long-term debt, gross | $ 1,000,000,000 | |
4.200% senior notes due 2048 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.20% | |
Long-term debt, gross | $ 1,000,000,000 | |
4.400% senior notes due 2049 | Senior notes | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 4.40% | |
Long-term debt, gross | $ 750,000,000 | |
7.730% debentures due 2096 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.73% | |
Long-term debt, gross | $ 60,000,000 | |
7.500% debentures due 2096 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.50% | |
Long-term debt, gross | $ 78,000,000 | |
7.250% debentures due 2096 | Debentures | Occidental | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.25% | |
Long-term debt, gross | $ 49,000,000 | |
9.250% senior debentures due 2019 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 9.25% | |
Long-term debt, gross | $ 116,000,000 | |
Variable rate bonds due 2030, 1.9% | Variable rate bonds | ||
Debt Instrument [Line Items] | ||
Debt instrument, variable rate | 1.90% | |
Long-term debt, gross | $ 68,000,000 | |
Senior Notes due 2025 | Senior notes | ||
Debt Instrument [Line Items] | ||
Debt instrument interest rate stated percentage | 7.25% | |
Face value | $ 310,000 |
LONG-TERM DEBT - NARRATIVE (Det
LONG-TERM DEBT - NARRATIVE (Details) - USD ($) | Aug. 08, 2019 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Aug. 07, 2019 | Jun. 04, 2019 | Jun. 03, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||||||||
Variable-rate debt as a percentage of total debt | 12.00% | 12.00% | 1.00% | |||||
Anadarko Petroleum Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | $ 21,800,000,000 | |||||||
Long-term debt | 11,900,000,000 | |||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 3,000,000,000 | |||||||
Dolphin Energy Limited | ||||||||
Debt Instrument [Line Items] | ||||||||
Limited recourse guarantees | $ 242,000,000 | $ 242,000,000 | $ 244,000,000 | |||||
Level 1 | Fair Value | ||||||||
Debt Instrument [Line Items] | ||||||||
Estimated fair value of debt | 38,800,000,000 | 38,800,000,000 | $ 10,300,000,000 | |||||
Senior notes | Anadarko Petroleum Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | 13,000,000,000 | |||||||
Long-term debt | 11,900,000,000 | |||||||
Amount tendered and accepted in exchange offers, percentage | 97.00% | |||||||
Amount tendered and accepted in exchange offers, | $ 11,500,000,000 | |||||||
Portion not exchanged | $ 400,000,000 | |||||||
Senior notes | Zero Coupon senior notes due 2036 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | $ 2,300,000,000 | $ 2,300,000,000 | ||||||
Debt instrument interest rate stated percentage | 5.24% | 5.24% | ||||||
Put in whole, amount | $ 992,000,000 | $ 992,000,000 | ||||||
Line of Credit | Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility, maximum borrowing capacity | $ 5,000,000,000 | $ 3,000,000,000 | ||||||
Average annual facility fees | 0.11% | |||||||
Line of Credit | Senior Unsecured Term Loan Facility, 364-Day | Anadarko Petroleum Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | $ 4,400,000,000 | |||||||
Debt instrument, term | 364 days | |||||||
Line of Credit | Term Loan Facility | Anadarko Petroleum Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | $ 4,400,000,000 | |||||||
Debt instrument, term | 2 years | |||||||
Secured Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayments of term loans | $ 7,000,000,000 | |||||||
Secured Debt | Anadarko Petroleum Corporation | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument issued | $ 8,800,000,000 |
LONG-TERM DEBT - DEBT MATURITIE
LONG-TERM DEBT - DEBT MATURITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Principal payments on long-term debt | ||
Aggregate future principal payments and carrying value | $ 37,400 | $ 10,407 |
Due in 2021 | 6,400 | |
Due in 2022 | 4,700 | |
Due in 2023 | 1,200 | |
Due in 2024 and thereafter | $ 25,100 |
LEASE COMMITMENTS - NARRATIVE (
LEASE COMMITMENTS - NARRATIVE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Aug. 08, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 1,385 | ||
Lease liability | 1,423 | $ 488 | |
Finance lease | 398 | 86 | |
Offshore And Onshore Drilling Rigs | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 217 | ||
Compressors | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 162 | ||
Other Field Equipment | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 389 | ||
Oil And Gas Exploration And Development Equipment | Low end of range | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 2 years | ||
Oil And Gas Exploration And Development Equipment | High end of range | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 9 years | ||
Pipelines, Rail Cars, Storage Facilities, Easements And Real Estate | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 659 | ||
Real Estate Leases | Low end of range | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 1 year | ||
Real Estate Leases | High end of range | |||
Lessee, Lease, Description [Line Items] | |||
Contract expiration term | 14 years | ||
Oil And Gas Exploration And Development Equipment, Restate Offices, Compressors, And Field Equipment [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Finance lease | $ 398 | ||
Anadarko Petroleum Corporation | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | 503 | ||
Lease liability | $ 574 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets | $ 772 |
LEASE COMMITMENTS - SCHEDULE OF
LEASE COMMITMENTS - SCHEDULE OF OPERATING AND FINANCE LEASE MATURITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Aug. 08, 2019 |
Operating Leases | ||
2019 | $ 90 | |
2020 | $ 555 | 172 |
2021 | 408 | 64 |
2022 | 136 | 42 |
2023 | 99 | 28 |
2024 | 81 | |
Thereafter | 136 | |
Thereafter | 254 | |
Total lease payments | 1,533 | 532 |
Less: Interest | (110) | (44) |
Total lease liabilities | 1,423 | 488 |
Finance Leases | ||
2019 | 7 | |
2020 | 53 | 17 |
2021 | 45 | 16 |
2022 | 41 | 13 |
2023 | 37 | 8 |
2024 | 34 | |
Thereafter | 43 | |
Thereafter | 275 | |
Total lease payments | 485 | 104 |
Less: Interest | (87) | (18) |
Total lease liabilities | 398 | 86 |
Total | ||
2019 | 97 | |
2020 | 608 | 189 |
2021 | 453 | 80 |
2022 | 177 | 55 |
2023 | 136 | 36 |
2024 | 115 | |
Thereafter | 179 | |
Thereafter | 529 | |
Total lease payments | 2,018 | 636 |
Less: Interest | (197) | (62) |
Total lease liabilities | 1,821 | 574 |
Lease liability | 1,423 | 488 |
Finance lease | $ 398 | $ 86 |
Weighted average lease term, operating lease | 4 years 7 months 6 days | |
Weighted average discount rate, operating lease | 2.53% | |
Weighted average lease term, finance lease | 11 years 7 months 6 days | |
Weighted average discount rate, finance lease | 3.74% | |
Anadarko's Africa Assets | Disposed of by sale | ||
Operating Leases | ||
Total lease liabilities | $ 74 | |
Finance Leases | ||
Total lease liabilities | 201 | |
Total | ||
Lease liability | 74 | |
Finance lease | $ 201 |
LEASE COMMITMENTS - LEASE ASSET
LEASE COMMITMENTS - LEASE ASSETS AND LIABILITIES (Details) $ in Millions | Dec. 31, 2019USD ($) |
Assets: | |
Operating lease assets | $ 1,385 |
Finance lease assets | 397 |
Total lease assets | 1,782 |
Assets and Liabilities, Lessee [Abstract] | |
Current operating lease liabilities | 569 |
Current finance lease liabilities | 51 |
Non-current operating lease liabilities | 854 |
Non-current finance lease liabilities | 347 |
Total lease liabilities | $ 1,821 |
LEASE COMMITMENTS - FUTURE UNDI
LEASE COMMITMENTS - FUTURE UNDISCOUNTED MINIMUM PAYMENTS UNDER ASC 840 (Details) $ in Millions | Dec. 31, 2018USD ($) |
Future net minimum operating lease payments | |
2019 | $ 186 |
2020 | 147 |
2021 | 96 |
2022 | 68 |
2023 | 49 |
Thereafter | 158 |
Total minimum lease payments | $ 704 |
LEASE COMMITMENTS - OTHER INFOR
LEASE COMMITMENTS - OTHER INFORMATION (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Aug. 08, 2019 | |
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 449 | |
Amortization of ROU assets | 19 | |
Interest on lease liabilities | 2 | |
Total lease cost | 953 | |
Short-term lease cost | 404 | |
Variable lease cost | 162 | |
Operating cash flows | 262 | |
Investing cash flows | 112 | |
Financing cash flows (a) | 19 | |
Finance lease | 398 | $ 86 |
Failed Sale-Leaseback | ||
Lessee, Lease, Description [Line Items] | ||
Finance lease | 300 | |
Operating expense and cost of sales | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | 391 | |
Selling, general and administrative expenses | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease costs | $ 92 |
DERIVATIVES - SUMMARY OF DERIVA
DERIVATIVES - SUMMARY OF DERIVATIVE INSTRUMENTS (Details) - Oil | Dec. 31, 2019ThousandBarrels / d$ / Barrel |
2020 Settlement | |
Derivative [Line Items] | |
Derivative instruments (mmbls/day) | ThousandBarrels / d | 128,100 |
2020 Settlement | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.16 |
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 | 127,800 |
2021 Settlement | Short position | |
Derivative [Line Items] | |
Ceiling sold price (dollars per barrel) | 74.16 |
DERIVATIVES - INTEREST-RATE DER
DERIVATIVES - INTEREST-RATE DERIVATIVES (Details) - USD ($) | Dec. 31, 2019 | Oct. 31, 2019 |
Interest Rate Swap, 6.418% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 550,000,000 | |
Weighted-Average Interest Rate | 6.418% | |
Interest Rate Swap, 6.835% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 125,000,000 | $ 125,000,000 |
Weighted-Average Interest Rate | 6.835% | |
Interest Rate Swap, 6.891% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 100,000,000 | |
Weighted-Average Interest Rate | 6.891% | |
Interest Rate Swap, 6.570% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 250,000,000 | |
Weighted-Average Interest Rate | 6.57% | |
Interest Rate Swap, 6.445% | ||
Derivative [Line Items] | ||
Notional Principal Amount | $ 450,000,000 | |
Weighted-Average Interest Rate | 6.445% |
DERIVATIVES - MARKETING DERIVAT
DERIVATIVES - MARKETING DERIVATIVES (Details) | 12 Months Ended | ||||||||
Dec. 31, 2019 | Dec. 31, 2019Bcf | Dec. 31, 2019MMBbls | Dec. 31, 2019$ / MillionCubicFeet | Dec. 31, 2019$ / Barrel | Dec. 31, 2018Bcf | Dec. 31, 2018MMBbls | Dec. 31, 2018$ / MillionCubicFeet | Dec. 31, 2018$ / Barrel | |
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 (in dollars per share) | 2.17 | 60.60 | 3.18 | 58.81 | |||||
Crude Oil & NGLs | Long position | |||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||
Commodity contracts Volume (MMBOE OR Bcf) | MMBbls | 55 | 61 | |||||||
Natural gas (in cubic feet) | Short position | |||||||||
Outstanding commodity derivatives contracts not designated as hedging instruments | |||||||||
Commodity contracts Volume (MMBOE OR Bcf) | Bcf | 128 | 142 |
DERIVATIVES - ADDITIONAL INFORM
DERIVATIVES - ADDITIONAL INFORMATION (Details) - USD ($) | 1 Months Ended | 5 Months Ended | 12 Months Ended | |||||||
Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 27, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Aug. 08, 2019 | ||
Derivative [Line Items] | ||||||||||
Unrealized gains (losses) on derivatives | [1] | $ (129,000,000) | $ (6,000,000) | $ 13,000,000 | ||||||
Not designated as hedging instruments | ||||||||||
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) | $ 787,000,000 | 787,000,000 | 68,000,000 | |||||||
Amount of collateral posted related to derivative instruments with credit-risk-related contingent features | 169,000,000 | 169,000,000 | $ 1,000,000 | |||||||
Anadarko Petroleum Corporation | ||||||||||
Derivative [Line Items] | ||||||||||
Debt instrument issued | $ 21,800,000,000 | |||||||||
Anadarko Petroleum Corporation | Senior notes | ||||||||||
Derivative [Line Items] | ||||||||||
Debt instrument issued | $ 13,000,000,000 | |||||||||
Anadarko Petroleum Corporation | Common Stock | ||||||||||
Derivative [Line Items] | ||||||||||
Exercise price of warrant (usd per share) | $ 62.50 | |||||||||
Interest Rate Swap, 6.835% | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Principal Amount | 125,000,000 | 125,000,000 | $ 125,000,000 | |||||||
Interest Rate Swap, 6.835% | Subsequent Event | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Principal Amount | $ 150,000,000 | |||||||||
Interest Rate Swap, 6.570% | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Principal Amount | 250,000,000 | $ 250,000,000 | ||||||||
Interest Rate Swap, 6.570% | Subsequent Event | ||||||||||
Derivative [Line Items] | ||||||||||
Notional Principal Amount | $ 500,000,000 | |||||||||
Warrant | ||||||||||
Derivative [Line Items] | ||||||||||
Initial fair value of warrant | $ 188,000,000 | |||||||||
Interest Rate Contract | ||||||||||
Derivative [Line Items] | ||||||||||
Net cash receipts related to settlements | $ 120,000,000 | |||||||||
Unrealized gains (losses) on derivatives | $ (125,000,000) | |||||||||
Interest Rate Contract | Senior notes | ||||||||||
Derivative [Line Items] | ||||||||||
Debt instrument issued | $ 13,000,000,000 | |||||||||
[1] | Net of tax of $36 , $2 and $(7) in 2019 , 2018 and 2017 , respectively. |
DERIVATIVES - FAIR VALUE (Detai
DERIVATIVES - FAIR VALUE (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Gross and net fair values of outstanding derivatives (in millions) | ||
Collateral paid netted against derivative liabilities | $ 104 | |
Collateral deposited with clearinghouses and brokers | 65 | $ 54 |
Oil Collars and Calls | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 92 | |
Oil Collars and Calls | Other current assets | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Oil Collars and Calls | Other current assets | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 92 | |
Oil Collars and Calls | Other current assets | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Oil Collars and Calls | Deferred credits and other liabilities - other | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | (160) | |
Oil Collars and Calls | Deferred credits and other liabilities - other | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Oil Collars and Calls | Deferred credits and other liabilities - other | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (160) | |
Oil Collars and Calls | Deferred credits and other liabilities - other | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Marketing Derivatives | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (973) | (2,392) |
Total net fair value, asset | 51 | 249 |
Marketing Derivatives | Other current assets | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 945 | 2,531 |
Marketing Derivatives | Other current assets | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 79 | 110 |
Marketing Derivatives | Other current assets | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Marketing Derivatives | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | (4) | (6) |
Total net fair value, asset | 12 | 8 |
Marketing Derivatives | Long-term receivables and other assets, net | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 4 | 5 |
Marketing Derivatives | Long-term receivables and other assets, net | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 12 | 9 |
Marketing Derivatives | Long-term receivables and other assets, net | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | 0 |
Marketing Derivatives | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 973 | 2,392 |
Total net fair value, liability | (79) | (66) |
Marketing Derivatives | Accrued liabilities | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (1,008) | (2,357) |
Marketing Derivatives | Accrued liabilities | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (44) | (101) |
Marketing Derivatives | Accrued liabilities | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | 0 |
Marketing Derivatives | Deferred credits and other liabilities - other | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 4 | 6 |
Total net fair value, liability | (1) | (2) |
Marketing Derivatives | Deferred credits and other liabilities - other | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (4) | (6) |
Marketing Derivatives | Deferred credits and other liabilities - other | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (1) | (2) |
Marketing Derivatives | Deferred credits and other liabilities - other | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | $ 0 |
Interest Rate Swaps | Other current assets | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 5 | |
Interest Rate Swaps | Other current assets | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Interest Rate Swaps | Other current assets | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 5 | |
Interest Rate Swaps | Other current assets | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Interest Rate Swaps | Long-term receivables and other assets, net | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting, asset | 0 | |
Total net fair value, asset | 5 | |
Interest Rate Swaps | Long-term receivables and other assets, net | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Interest Rate Swaps | Long-term receivables and other assets, net | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 5 | |
Interest Rate Swaps | Long-term receivables and other assets, net | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative asset, gross | 0 | |
Interest Rate Swaps | Accrued liabilities | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | (657) | |
Interest Rate Swaps | Accrued liabilities | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Interest Rate Swaps | Accrued liabilities | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (657) | |
Interest Rate Swaps | Accrued liabilities | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Interest Rate Swaps | Deferred credits and other liabilities - other | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | (776) | |
Interest Rate Swaps | Deferred credits and other liabilities - other | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Interest Rate Swaps | Deferred credits and other liabilities - other | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (776) | |
Interest Rate Swaps | Deferred credits and other liabilities - other | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Warrant | Deferred credits and other liabilities - other | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Netting and collateral, liability | 0 | |
Total net fair value, liability | (107) | |
Warrant | Deferred credits and other liabilities - other | Level 1 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | 0 | |
Warrant | Deferred credits and other liabilities - other | Level 2 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | (107) | |
Warrant | Deferred credits and other liabilities - other | Level 3 | ||
Gross and net fair values of outstanding derivatives (in millions) | ||
Commodity contract derivative liability, gross | $ 0 |
DERIVATIVES - GAINS AND LOSSES
DERIVATIVES - GAINS AND LOSSES ON DERIVATIVES (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | $ 233 | $ 0 | $ 0 |
Oil Collars and Calls | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | (107) | 0 | 0 |
Marketing Derivatives | Net sales | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | 1,804 | 2,254 | (138) |
Interest Rate Swaps | Gain (Loss) on Interest Rate Swaps and Warrants, Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | 122 | 0 | 0 |
Interest Rate Swaps | Gain (Loss) on Interest Rate Swaps and Warrants, Net | WES | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | 30 | 0 | 0 |
Warrant | Gain (Loss) on Interest Rate Swaps and Warrants, Net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on derivative instruments | $ 81 | $ 0 | $ 0 |
ENVIRONMENTAL LIABILITIES AND_3
ENVIRONMENTAL LIABILITIES AND EXPENDITURES (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016mi | Sep. 30, 2016USD ($) | Dec. 31, 2019USD ($)site | Dec. 31, 2018USD ($)site | Dec. 31, 2017USD ($) | |
Environmental remediation reserves | |||||
Number of Sites | 177 | 145 | |||
Environmental remediation reserves, current, included in accrued liabilities | $ | $ 162,000,000 | $ 120,000,000 | |||
Environmental remediation reserves, noncurrent, included in deferred credits and other liabilities - other | $ | 1,035,000,000 | 762,000,000 | |||
Remediation balance | $ | 1,197,000,000 | 882,000,000 | |||
Environmental reserves, exceeding $ ten million, threshold value | $ | $ 10,000,000 | ||||
Environmental reserves, exceeding $ ten million, number of sites | 20 | ||||
Environmental reserves, range between zero to $ one million site category, number of sites | 101 | ||||
Remediation Expenses | $ | $ 112,000,000 | $ 47,000,000 | $ 39,000,000 | ||
Percent of reserve to be funded over the next three to four years | 40.00% | ||||
Minimum period of expending second half of environmental reserves | 10 years | ||||
Environmental remediation additional loss range | $ | $ 1,100,000,000 | ||||
Low end of range | |||||
Environmental remediation reserves | |||||
Environmental reserves, range between zero to $ one million site category | $ | $ 0 | ||||
Period of expending 40 percent of environmental reserves | 3 years | ||||
High end of range | |||||
Environmental remediation reserves | |||||
Environmental reserves, range between zero to $ one million site category | $ | $ 1,000,000 | ||||
Period of expending 40 percent of environmental reserves | 4 years | ||||
NPL sites | |||||
Environmental remediation reserves | |||||
Number of Sites | 36 | 34 | |||
Remediation balance | $ | $ 463,000,000 | $ 458,000,000 | |||
Number of sites with significant environmental remediation reserves | 5 | ||||
Percentage of environmental reserves accounted for by associated sites | 94.00% | ||||
Number of sites indemnified by third party | 17 | ||||
Third-party sites | |||||
Environmental remediation reserves | |||||
Number of Sites | 74 | 68 | |||
Remediation balance | $ | $ 311,000,000 | $ 168,000,000 | |||
Number of sites with significant environmental remediation reserves | 6 | ||||
Percentage of environmental reserves accounted for by associated sites | 75.00% | ||||
Number of sites indemnified by third party | 74 | ||||
Number of sites not indemnified by third party | 74 | ||||
Occidental-operated sites | |||||
Environmental remediation reserves | |||||
Number of Sites | 17 | 14 | |||
Remediation balance | $ | $ 154,000,000 | $ 115,000,000 | |||
Number of sites with significant environmental remediation reserves | 3 | ||||
Percentage of environmental reserves accounted for by associated sites | 67.00% | ||||
Closed or non-operated Occidental sites | |||||
Environmental remediation reserves | |||||
Number of Sites | 50 | 29 | |||
Remediation balance | $ | $ 269,000,000 | $ 141,000,000 | |||
Number of sites with significant environmental remediation reserves | 6 | ||||
Percentage of environmental reserves accounted for by associated sites | 64.00% | ||||
Maxus | |||||
Environmental remediation reserves | |||||
Number of sites indemnified by third party | 9 | ||||
Passaic River | |||||
Environmental remediation reserves | |||||
Stretch of Lower Passaic river requiring remedial actions | mi | 8.3 | ||||
River stretch which may require remedial actions | mi | 9 | ||||
Clean-up estimated cost | $ | $ 165,000,000 | ||||
Anadarko Petroleum Corporation | |||||
Environmental remediation reserves | |||||
Number of Sites | 36 |
LAWSUITS, CLAIMS, COMMITMENTS_2
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES - LEGAL MATTERS (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | May 30, 2019 | |
Long-term Purchase Commitment [Line Items] | |||||
Stock accumulated | $ 1,600 | ||||
Potential income tax expense | $ 925 | ||||
Federal | |||||
Long-term Purchase Commitment [Line Items] | |||||
Potential income tax expense | 898 | ||||
State | |||||
Long-term Purchase Commitment [Line Items] | |||||
Potential income tax expense | 27 | ||||
Anadarko Petroleum Corporation | |||||
Long-term Purchase Commitment [Line Items] | |||||
Tax refund | 881 | $ 881 | |||
Accrued interest on potential income tax expense | $ 189 | ||||
Arbitration Demand Filed By Andes Petroleum Ecuador Ltd | |||||
Long-term Purchase Commitment [Line Items] | |||||
Proceeds from settlement | $ 1,000 | ||||
Recovery of amount awarded in settlement amount (as a percent) | 60.00% | ||||
Claim to a settlement amount (as a percent) | 40.00% | ||||
Own economic interest (as a percent) | 60.00% | ||||
Tronox Settlement | |||||
Long-term Purchase Commitment [Line Items] | |||||
Payments for settlement | $ 5,200 |
LAWSUITS, CLAIMS, COMMITMENTS_3
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES - PURCHASE OBLIGATIONS (Details) $ in Billions | Dec. 31, 2019USD ($) |
Purchase obligations | |
Total purchase obligations | $ 20.7 |
2020 | 3.3 |
2021 and 2022 | 5.7 |
2023 and 2024 | 4.7 |
2025 and thereafter | $ 7.1 |
INCOME TAXES - DOMESTIC AND FOR
INCOME TAXES - DOMESTIC AND FOREIGN COMPONENTS OF INCOME (LOSS) FROM CONTINUING OPERATIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (1,632) | $ 3,431 | $ (609) |
Foreign | 1,818 | 2,177 | 1,937 |
Income from continuing operations before income taxes | $ 186 | $ 5,608 | $ 1,328 |
INCOME TAXES - COMPONENTS OF IN
INCOME TAXES - COMPONENTS OF INCOME TAX EXPENSE (BENEFIT) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current | |||
Federal | $ 33 | $ (23) | $ (81) |
State and Local | 46 | 52 | 11 |
Foreign | 1,641 | 1,077 | 806 |
Total current tax expense | 1,720 | 1,106 | 736 |
Deferred | |||
Federal | (130) | 422 | (856) |
State and Local | 17 | 12 | 23 |
Foreign | (914) | (63) | 114 |
Total deferred tax expense (benefit) | (1,027) | 371 | (719) |
Total income tax expense | $ 693 | $ 1,477 | $ 17 |
INCOME TAXES - EFFECTIVE TAX RA
INCOME TAXES - EFFECTIVE TAX RATE RECONCILIATION (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
U.S. federal statutory tax rate | 21.00% | 21.00% | 35.00% |
Enhanced oil recovery credit and other general business credits | (4.00%) | (3.00%) | (9.00%) |
Change in federal income tax rate | 0.00% | 0.00% | (44.00%) |
Tax (benefit) expense due to reversal of indefinite reinvestment assertion | 0.00% | (2.00%) | 7.00% |
Tax impact from foreign operations | 187.00% | 11.00% | 12.00% |
State income taxes, net of federal benefit | 28.00% | 1.00% | 2.00% |
Uncertain tax positions | 13.00% | 0.00% | 0.00% |
Transaction costs | 19.00% | 0.00% | 0.00% |
Non-controlling interest | (16.00%) | 0.00% | 0.00% |
Executive compensation limitation | 24.00% | 0.00% | 0.00% |
Stock warrants | (9.00%) | 0.00% | 0.00% |
WES loss of control | 113.00% | 0.00% | 0.00% |
Other | (3.00%) | (2.00%) | (2.00%) |
Worldwide effective tax rate | 373.00% | 26.00% | 1.00% |
INCOME TAXES - COMPONENTS OF DE
INCOME TAXES - COMPONENTS OF DEFERRED TAX ASSETS AND LIABILITIES (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax liabilities | ||
Property, plant and equipment differences | $ (12,375) | $ (2,089) |
Equity investments, partnerships and foreign subsidiaries | (989) | (161) |
Gross long-term deferred tax liabilities | (13,364) | (2,250) |
Deferred tax assets | ||
Environmental reserves | 261 | 195 |
Postretirement benefit accruals | 441 | 176 |
Deferred compensation and benefits | 266 | 170 |
Asset retirement obligations | 906 | 280 |
Foreign tax credit carryforwards | 4,379 | 2,356 |
General business credit carryforwards | 443 | 429 |
Net operating loss carryforward | 692 | 29 |
Interest expense carryforward | 492 | 0 |
All other | 782 | 111 |
Gross long-term deferred tax assets | 8,662 | 3,746 |
Valuation allowance | (4,959) | (2,403) |
Net long-term deferred tax assets | 3,703 | 1,343 |
Less: Foreign deferred tax asset in long-term receivables and other assets, net | (56) | 0 |
Total deferred income taxes, net | $ (9,717) | $ (907) |
INCOME TAXES - NARRATIVE (Detai
INCOME TAXES - NARRATIVE (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Contingency [Line Items] | ||||
Worldwide effective tax rate | 373.00% | 26.00% | 1.00% | |
Total deferred tax assets, after valuation allowances | $ 3,703,000,000 | $ 1,343,000,000 | ||
Total deferred tax liabilities | 13,364,000,000 | 2,250,000,000 | ||
Deferred foreign tax liability due to reversal of indefinite re-investment assertion | 889,000,000 | |||
Additional deferred tax liability amount required | 206,000,000 | |||
Unrecognized tax benefits | 2,173,000,000 | 0 | $ 22,000,000 | $ 22,000,000 |
Potential benefit | 2,000,000,000 | |||
Potential benefit, if recognized, would affect the effective tax rate on income | 1,700,000,000 | |||
Benefits related to tax positions which ultimate deductibility is highly certain | 131,000,000 | |||
Interest accrued related to liabilities for unrecognized tax benefits | 199,000,000 | |||
Interest related to liabilities for unrecognized tax benefits | 30,000,000 | |||
Interest and penalties associated with liabilities for unrecognized tax benefits | 0 | $ 0 | ||
Low end of range | ||||
Income Tax Contingency [Line Items] | ||||
Possible decrease to unrecognized tax benefit due to settlements with taxing authorities | 100,000,000 | |||
High end of range | ||||
Income Tax Contingency [Line Items] | ||||
Possible decrease to unrecognized tax benefit due to settlements with taxing authorities | 110,000,000 | |||
Other current assets | ||||
Income Tax Contingency [Line Items] | ||||
Income tax receivables | 86,000,000 | 68,000,000 | ||
Long-term receivables and other assets, net | ||||
Income Tax Contingency [Line Items] | ||||
Federal alternative minimum tax non-current receivables | 36,000,000 | $ 68,000,000 | ||
Foreign | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 4,400,000,000 | |||
Operating loss carryforwards | 209,000,000 | |||
State | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | 39,000,000 | |||
Operating loss carryforwards | 292,000,000 | |||
Operating loss carryforward, valuation allowance | 240,000,000 | |||
Tax credit carryforward, valuation allowance | 32,000,000 | |||
General business credits | ||||
Income Tax Contingency [Line Items] | ||||
Tax credit carryforwards | $ 404,000,000 |
INCOME TAXES - RECONCILIATION O
INCOME TAXES - RECONCILIATION OF UNRECOGNIZED TAX BENEFITS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance, at beginning of period | $ 0 | $ 22 | $ 22 |
Increase related to Anadarko Acquisition | 2,143 | 0 | 0 |
Increases related to current-year positions | 30 | 0 | 0 |
Settlements | 0 | (22) | 0 |
Balance, at end of period | $ 2,173 | $ 0 | $ 22 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 08, 2019 | Jan. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Common stock issuances | ||||||
Balance at the beginning of the year (in shares) | 1,044,435,000 | 895,116,000 | 893,469,000 | 892,215,000 | ||
Issued (in shares) | 3,188,000 | 1,628,000 | 1,252,000 | |||
Options exercised and other, net (in shares) | 19,000 | 2,000 | ||||
Issued as part of the Acquisition (in shares) | 146,131,000 | |||||
Balance at the end of the year (in shares) | 1,044,435,000 | 895,116,000 | 893,469,000 | |||
TREASURY STOCK | ||||||
Share repurchase program, authorized shares | 185,000,000 | |||||
Share repurchase program, shares yet to be repurchased | 44,200,000 | |||||
Shares purchased under share repurchase program | 2,700,000 | 16,900,000 | 0 | |||
Share repurchase program, average cost per share of shares repurchased during period (in dollars per share) | $ 66.94 | $ 74.92 | ||||
Treasury stock, shares (in shares) | 150,323,151 | 145,726,051 | 128,400,000 | |||
NONREDEEMABLE PREFERRED STOCK | ||||||
Preferred stock, authorized shares (in shares) | 50,000,000 | |||||
Preferred stock, par value (in dollars per share) | $ 1 | |||||
Issued as part of the Acquisition (in shares) | 146,131,000 | |||||
Preferred stock, shares outstanding (in shares) | 100,000 | 0 | 0 | |||
Preferred stock issued (in shares) | 100,000 | |||||
Basic earnings per common share | ||||||
Income (loss) from continuing operations | $ (507) | $ 4,131 | $ 1,311 | |||
Loss from discontinued operations, net of tax | (15) | 0 | 0 | |||
NET INCOME (LOSS) | (522) | 4,131 | 1,311 | |||
Less: Net income attributable to noncontrolling interest | (145) | 0 | 0 | |||
Less: Preferred stock dividends | (318) | 0 | 0 | |||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | (985) | 4,131 | 1,311 | |||
Less: Net income allocated to participating securities | 0 | (17) | (6) | |||
Net income (loss), net of participating securities | $ (985) | $ 4,114 | $ 1,305 | |||
Weighted average number of basic shares (in shares) | 809,500,000 | 761,700,000 | 765,100,000 | |||
Basic earnings (loss) per common share (in dollars per share) | $ (1.22) | $ 5.40 | $ 1.71 | |||
Diluted EPS | ||||||
Net income (loss), net of participating securities | $ (985) | $ 4,114 | $ 1,305 | |||
Weighted average number of basic shares (in shares) | 809,500,000 | 761,700,000 | 765,100,000 | |||
Dilutive securities (in shares) | 0 | 1,600,000 | 800,000 | |||
Total diluted weighted average common shares (in shares) | 809,500,000 | 763,300,000 | 765,900,000 | |||
Diluted earnings (loss) per common share (in dollars per share) | $ (1.22) | $ 5.39 | $ 1.70 | |||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | $ 34,232 | $ 21,330 | $ 20,572 | $ 21,497 | ||
Subsequent Event | ||||||
NONREDEEMABLE PREFERRED STOCK | ||||||
Payments of Ordinary Dividends, Preferred Stock and Preference Stock | $ 200 | |||||
Anadarko Petroleum Corporation | Series A Preferred Stock | ||||||
Common stock issuances | ||||||
Issued as part of the Acquisition (in shares) | 100,000 | |||||
NONREDEEMABLE PREFERRED STOCK | ||||||
Issued as part of the Acquisition (in shares) | 100,000 | |||||
Liquidation preference (in dollars per share) | $ 105,000 | |||||
Dividend rate | 8.00% | |||||
Dividend rate for unpaid amounts | 9.00% | |||||
Common Stock | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | $ 209 | 179 | 179 | 178 | ||
Common Stock | Anadarko Petroleum Corporation | ||||||
Common stock issuances | ||||||
Issued as part of the Acquisition (in shares) | 2,000,000 | |||||
NONREDEEMABLE PREFERRED STOCK | ||||||
Issued as part of the Acquisition (in shares) | 2,000,000 | |||||
Foreign currency translation adjustments | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | $ (7) | (7) | ||||
Unrealized gains (losses) on derivatives | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | (122) | 5 | ||||
Pension and postretirement adjustments | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | (92) | (170) | ||||
Accumulated Other Comprehensive Loss | ||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ||||||
Accumulated other comprehensive loss | $ (221) | $ (172) | $ (258) | $ (266) |
STOCK-BASED INCENTIVE PLANS (De
STOCK-BASED INCENTIVE PLANS (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-Based Payment Award | |||
Aggregate number of shares authorized for issuance (in shares) | 80,000,000 | ||
Number of shares awarded to date (in shares) | 6,600,000 | ||
Number of shares counted for each share covered by an award in determining the number of shares that are available for future awards | 3 | ||
Certain stock-based incentive amounts | |||
Compensation expense | $ 208 | $ 180 | $ 150 |
Income tax benefit recognized in the income statement | 43 | $ 47 | $ 32 |
Unrecognized compensation expense | $ 354.1 | ||
Weighted-average period over which unrecognized compensation expense is expected to be recognized | 1 year 10 months 24 days | ||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Issued (in shares) | 3,188,000 | 1,628,000 | 1,252,000 |
Anadarko Petroleum Corporation | |||
Certain stock-based incentive amounts | |||
Compensation expense | $ 31 | ||
High end of range | |||
Share-based Compensation Arrangement by Share-Based Payment Award | |||
Maximum shares available for future issuance (in shares) | 52,500,000 | ||
Common Stock | Non-employee directors | |||
Share-based Compensation Arrangement by Share-Based Payment Award | |||
Restricted stock granted to non-employee directors (in shares) | 41,752 | ||
RSUs | |||
Stock-Based Awards | |||
Forfeiture of RSUs | 7 years | ||
RSUs | Low end of range | |||
Certain stock-based incentive amounts | |||
Award vesting period | 1 year | ||
RSUs | High end of range | |||
Certain stock-based incentive amounts | |||
Award vesting period | 4 years | ||
Cash-Settled RSUs | |||
Certain stock-based incentive amounts | |||
Cash paid | $ 4 | $ 18 | $ 23 |
Roll-forward of stock awards other than options and SARS. | |||
Unvested, beginning of period (in shares) | 186,000 | ||
Granted (in shares) | 4,267,000 | ||
Vested (in shares) | (67,000) | ||
Forfeitures (in shares) | (39,000) | ||
Unvested, end of period (in shares) | 4,347,000 | 186,000 | |
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Unvested, beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 73.93 | ||
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 42.62 | $ 75.86 | $ 66.62 |
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 72.26 | ||
Forfeitures, Weighted-Average Grant-Date Fair Value (in dollars per share) | 47.60 | ||
Unvested, end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 43.46 | $ 73.93 | |
Shares issued in exchange for Anadarko stock based incentive shares (in shares) | 1,500,000 | ||
Vested (in shares) | 67,000 | ||
Stock-Settled RSUs | |||
Certain stock-based incentive amounts | |||
Fair value of shares vested during the year | $ 148 | $ 109 | $ 64 |
Roll-forward of stock awards other than options and SARS. | |||
Unvested, beginning of period (in shares) | 3,971,000 | ||
Granted (in shares) | 3,543,000 | ||
Vested (in shares) | (2,743,000) | ||
Forfeitures (in shares) | (376,000) | ||
Unvested, end of period (in shares) | 4,395,000 | 3,971,000 | |
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Unvested, beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 73.19 | ||
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 58.73 | $ 69.87 | $ 67.21 |
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 67.04 | ||
Forfeitures, Weighted-Average Grant-Date Fair Value (in dollars per share) | 67.25 | ||
Unvested, end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 65.88 | $ 73.19 | |
Vested (in shares) | 2,743,000 | ||
TSRIs | |||
Certain stock-based incentive amounts | |||
Award vesting period | 3 years | ||
Fair value of shares vested during the year | $ 4 | $ 12 | $ 5 |
Grant-date assumptions used in the Monte Carlo simulation models | |||
Risk-free interest rate (as a percent) | 2.50% | 2.30% | 1.50% |
Volatility factor (as a percent) | 22.00% | 24.00% | 25.00% |
Expected life (years) | 3 years | 3 years | 3 years |
Grant-date fair value of underlying Occidental common stock (in dollars per share) | $ 67.19 | $ 69.87 | $ 67.21 |
Roll-forward of stock awards other than options and SARS. | |||
Unvested, beginning of period (in shares) | 1,444,000 | ||
Granted (in shares) | 578,000 | ||
Vested (in shares) | (442,000) | ||
Forfeitures (in shares) | (43,000) | ||
Unvested, end of period (in shares) | 1,537,000 | 1,444,000 | |
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Unvested, beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 70.97 | ||
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 67.19 | ||
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 76.83 | ||
Forfeitures, Weighted-Average Grant-Date Fair Value (in dollars per share) | 76.83 | ||
Unvested, end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 67.70 | $ 70.97 | |
Payouts for performance-based awards granted (as a percent) | 19.00% | ||
Issued (in shares) | 83,000 | ||
Vested (in shares) | 442,000 | ||
TSRIs | Low end of range | |||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Payouts for performance-based awards granted (as a percent) | 0.00% | ||
TSRIs | High end of range | |||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Payouts for performance-based awards granted (as a percent) | 200.00% | ||
Options | |||
Stock-Based Awards | |||
Awards granted (in shares) | 0 | ||
Awards vested (in shares) | 0 | ||
Awards forfeited (in shares) | 0 | ||
Option and SAR transactions | |||
Option and SAR transactions | |||
Fully vested options (in shares) | 530,000 | ||
Exercise price (in dollars per share) | $ 79.98 | ||
Remaining life of options | 2 years 1 month 6 days | ||
ROCEI/ROAI | |||
Certain stock-based incentive amounts | |||
Award vesting period | 3 years | ||
Roll-forward of stock awards other than options and SARS. | |||
Unvested, beginning of period (in shares) | 210,000 | ||
Granted (in shares) | 81,000 | ||
Vested (in shares) | (137,000) | ||
Forfeitures (in shares) | 0 | ||
Unvested, end of period (in shares) | 154,000 | 210,000 | |
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Unvested, beginning of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 71.60 | ||
Granted, Weighted-Average Grant-Date Fair Value (in dollars per share) | 67.19 | ||
Vested, Weighted-Average Grant-Date Fair Value (in dollars per share) | 72.54 | ||
Forfeitures, Weighted-Average Grant-Date Fair Value (in dollars per share) | 0 | ||
Unvested, end of period, Weighted-Average Grant-Date Fair Value (in dollars per share) | $ 68.44 | $ 71.60 | |
Vested (in shares) | 137,000 | ||
ROCEI/ROAI | 52% of the target | |||
Roll-forward of stock awards other than options and SARS. | |||
Vested (in shares) | (118,000) | ||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Payout at vesting percentage | 86.00% | ||
Vested (in shares) | 118,000 | ||
ROCEI/ROAI | Low end of range | |||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Payouts for performance-based awards granted (as a percent) | 0.00% | ||
ROCEI/ROAI | High end of range | |||
Stock awards other than options and SARs, Weighted-Average Grant-Date Fair Value (in dollars per share) | |||
Payouts for performance-based awards granted (as a percent) | 200.00% |
RETIREMENT AND POSTRETIREMENT_3
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - NARRATIVE (Details) $ in Millions | Aug. 08, 2019USD ($) | Aug. 31, 2018USD ($) | Dec. 31, 2019USD ($)employee | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Defined Benefit Plan Disclosure | |||||
Decrease to benefit obligation | $ 178 | ||||
Accrued liabilities for the supplemental retirement plan | $ 279 | $ 201 | |||
Expenses under provisions of defined contribution and supplemental retirement plans | 211 | 152 | $ 130 | ||
Total benefit costs, including postretirement costs | $ 220 | 182 | $ 181 | ||
United States | |||||
Defined Benefit Plan Disclosure | |||||
Number of employees accruing benefits under defined benefit plans | employee | 4,000 | ||||
Foreign | |||||
Defined Benefit Plan Disclosure | |||||
Number of employees accruing benefits under defined benefit plans | employee | 600 | ||||
Pension Benefits | |||||
Defined Benefit Plan Disclosure | |||||
Additions due to the Acquisition | $ 193 | $ 2,136 | 0 | ||
Decrease to benefit obligation | $ 0 | $ 0 |
RETIREMENT AND POSTRETIREMENT_4
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - OBLIGATIONS AND FUNDED STATUS (Details) - USD ($) $ in Millions | Aug. 08, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Amounts recognized in the consolidated balance sheet: | |||||
Deferred credits and other liabilities — pension and postretirement obligations | $ (1,807) | $ (809) | |||
Changes in the benefit obligation: | |||||
Plan amendments | $ (178) | ||||
Pension Benefits | |||||
Amounts recognized in the consolidated balance sheet: | |||||
Long-term receivables and other assets, net | 85 | 60 | |||
Accrued liabilities | (96) | (25) | |||
Deferred credits and other liabilities — pension and postretirement obligations | (704) | (46) | |||
Total amount recognized in consolidated balance sheet | (715) | (11) | |||
Accumulated other comprehensive loss included the following after-tax balances: | |||||
Net loss | (25) | 91 | |||
Prior service cost | 0 | 0 | |||
AOCI after-tax balances | (25) | 91 | |||
Changes in the benefit obligation: | |||||
Benefit obligation — beginning of year | 349 | 391 | |||
Service cost — benefits earned during the period | 45 | 5 | $ 6 | ||
Interest cost on projected benefit obligation | 39 | 15 | 17 | ||
Actuarial (gain) loss | (33) | (19) | |||
Foreign currency exchange rate gain | 0 | (3) | |||
Curtailment (gain) loss | (136) | 0 | |||
Special termination benefits | 49 | 0 | |||
Benefits paid | (95) | (40) | |||
Participant contributions | 0 | 0 | |||
Plan amendments | 0 | 0 | |||
Additions due to the Acquisition | $ 193 | 2,136 | 0 | ||
Benefit obligation — end of year | 2,354 | 349 | 391 | ||
Changes in plan assets: | |||||
Fair value of plan assets — beginning of year | 338 | 403 | |||
Actual return on plan assets | 122 | (33) | |||
Participant contributions | 0 | 0 | |||
Employer contributions | 41 | 8 | |||
Benefits paid | (95) | (40) | |||
Additions due to the Acquisition | 1,233 | 0 | |||
Fair value of plan assets — end of year | 1,639 | 338 | 403 | ||
Unfunded status: | (715) | (11) | |||
Accumulated Benefit Obligation in Excess of Plan Assets | |||||
Projected benefit obligation | 2,175 | 173 | |||
Accumulated benefit obligation | 1,918 | 169 | |||
Fair value of plan assets | 1,375 | 98 | |||
Plan Assets in Excess of Accumulated Benefit Obligation | |||||
Projected benefit obligation | 179 | 176 | |||
Accumulated benefit obligation | 179 | 176 | |||
Fair value of plan assets | 264 | 240 | |||
Postretirement Benefits | |||||
Amounts recognized in the consolidated balance sheet: | |||||
Long-term receivables and other assets, net | 0 | 0 | |||
Accrued liabilities | (72) | (45) | |||
Deferred credits and other liabilities — pension and postretirement obligations | (1,103) | (763) | |||
Total amount recognized in consolidated balance sheet | (1,175) | (808) | |||
Accumulated other comprehensive loss included the following after-tax balances: | |||||
Net loss | 184 | 151 | |||
Prior service cost | (67) | (72) | |||
AOCI after-tax balances | 117 | 79 | |||
Changes in the benefit obligation: | |||||
Benefit obligation — beginning of year | 808 | 999 | |||
Service cost — benefits earned during the period | 24 | 23 | 21 | ||
Interest cost on projected benefit obligation | 36 | 34 | 38 | ||
Actuarial (gain) loss | 45 | (90) | |||
Foreign currency exchange rate gain | 0 | 0 | |||
Curtailment (gain) loss | 10 | 0 | |||
Special termination benefits | 0 | 0 | |||
Benefits paid | (51) | (57) | |||
Participant contributions | 2 | 0 | |||
Plan amendments | 0 | (101) | |||
Additions due to the Acquisition | 301 | 0 | |||
Benefit obligation — end of year | 1,175 | 808 | 999 | ||
Changes in plan assets: | |||||
Fair value of plan assets — beginning of year | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Participant contributions | 2 | 0 | |||
Employer contributions | 49 | 0 | |||
Benefits paid | (51) | 0 | |||
Additions due to the Acquisition | 0 | 0 | |||
Fair value of plan assets — end of year | 0 | 0 | $ 0 | ||
Unfunded status: | $ (1,175) | $ (808) |
RETIREMENT AND POSTRETIREMENT_5
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - COMPONENTS OF NET PERIODIC BENEFIT COST (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Net periodic benefit costs: | |||
Service cost — benefits earned during the period | $ 45 | $ 5 | $ 6 |
Interest cost on projected benefit obligation | 39 | 15 | 17 |
Expected return on plan assets | (50) | (25) | (24) |
Recognized actuarial loss | 9 | 7 | 10 |
Recognized prior service credit | 0 | 0 | 0 |
Liability (gain) loss due to curtailment | (91) | 0 | 0 |
Special termination benefits | 49 | 0 | 0 |
Other costs and adjustments | (2) | 1 | 3 |
Net periodic benefit cost | (1) | 3 | 12 |
Amounts that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | |||
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | 3 | ||
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | 0 | ||
Postretirement Benefits | |||
Net periodic benefit costs: | |||
Service cost — benefits earned during the period | 24 | 23 | 21 |
Interest cost on projected benefit obligation | 36 | 34 | 38 |
Expected return on plan assets | 0 | 0 | 0 |
Recognized actuarial loss | 8 | 14 | 14 |
Recognized prior service credit | (8) | 0 | 0 |
Liability (gain) loss due to curtailment | 6 | 0 | 0 |
Special termination benefits | 0 | 0 | 0 |
Other costs and adjustments | 0 | (2) | 1 |
Net periodic benefit cost | 66 | $ 69 | $ 74 |
Amounts that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | |||
Estimated net loss that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | 12 | ||
Estimated prior service cost that will be amortized from AOCI into net periodic benefit cost over the next fiscal year | $ (8) |
RETIREMENT AND POSTRETIREMENT_6
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - ASSUMPTIONS (Details) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Aug. 31, 2019 | Aug. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Pension Benefits | ||||||
Benefit Obligation Assumptions: | ||||||
Discount rate | 3.10% | 4.09% | 3.10% | 4.09% | ||
Net Periodic Benefit Cost Assumptions: | ||||||
Discount rate | 3.21% | 3.45% | 3.21% | 3.45% | ||
Assumed long-term rate of return on assets | 6.50% | 6.50% | ||||
Average rate of increase in compensation levels (as a percent) | 5.44% | 0.00% | ||||
Net decrease in pension plan obligations | $ 15 | |||||
Postretirement Benefits | ||||||
Benefit Obligation Assumptions: | ||||||
Discount rate | 3.26% | 4.29% | 3.26% | 4.29% | ||
Net Periodic Benefit Cost Assumptions: | ||||||
Discount rate | 3.41% | 4.14% | 3.41% | 3.61% | ||
Assumed long-term rate of return on assets | 0.00% | 0.00% | ||||
Average rate of increase in compensation levels (as a percent) | 0.00% | 0.00% | ||||
Net decrease in postretirement plan obligations | $ 9 | |||||
Effect of 1-percent increase or a 1-percent decrease in these assumed healthcare cost trend rates | ||||||
Effect of 1-percent increase in assumed healthcare cost trend rates on postretirement benefit obligation | 131 | |||||
Effect of 1-percent decrease in assumed healthcare cost trend rates on postretirement benefit obligation | 103 | |||||
Effect of 1-percent increase in assumed healthcare cost trend rate on annual service and interest costs | 13 | |||||
Effect of 1-percent decrease in assumed healthcare cost trend rate on annual service and interest costs | $ 9 | |||||
Postretirement Benefits | MAPD | ||||||
Assumed healthcare cost trend rates | ||||||
Projected annual rates of healthcare cost trend rates, year two (as a percent) | 9.60% | 9.60% | ||||
Projected annual rates of healthcare cost trend rates, year nine and beyond (as a percent) | 4.50% | 4.50% | ||||
Postretirement Benefits | MAPD | Low end of range | ||||||
Assumed healthcare cost trend rates | ||||||
Health care cost trend rates for current year (as a percent) | 4.30% | 4.30% | ||||
Projected annual rates of healthcare cost trend rates, next fiscal year (as a percent) | (7.70%) | (7.70%) | ||||
Postretirement Benefits | MAPD | High end of range | ||||||
Assumed healthcare cost trend rates | ||||||
Health care cost trend rates for current year (as a percent) | 21.50% | 21.50% | ||||
Projected annual rates of healthcare cost trend rates, next fiscal year (as a percent) | (6.20%) | (6.20%) | ||||
Postretirement Benefits | Non-MAPD | ||||||
Assumed healthcare cost trend rates | ||||||
Projected annual rates of healthcare cost trend rates, year nine and beyond (as a percent) | 4.50% | 4.50% | ||||
Postretirement Benefits | Non-MAPD | Low end of range | ||||||
Assumed healthcare cost trend rates | ||||||
Health care cost trend rates for current year (as a percent) | 6.70% | 6.70% | ||||
Postretirement Benefits | Non-MAPD | High end of range | ||||||
Assumed healthcare cost trend rates | ||||||
Health care cost trend rates for current year (as a percent) | 7.50% | 7.50% | ||||
Foreign | Low end of range | ||||||
Net Periodic Benefit Cost Assumptions: | ||||||
Discount rate | 1.00% | 1.00% | ||||
Average rate of increase in compensation levels (as a percent) | 1.00% | |||||
Foreign | High end of range | ||||||
Net Periodic Benefit Cost Assumptions: | ||||||
Discount rate | 8.80% | 8.90% | ||||
Average rate of increase in compensation levels (as a percent) | 8.00% |
RETIREMENT AND POSTRETIREMENT_7
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - FAIR VALUE OF PENSION PLAN ASSETS (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 1,639 | $ 338 | $ 403 |
U.S. government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 13 | 17 | |
Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 60 | 66 | |
Common/collective trusts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 9 | ||
Bond funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 46 | 31 | |
Blend funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 48 | ||
International funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 68 | ||
Common and preferred stocks | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 173 | 141 | |
Other | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 29 | 31 | |
Net Payables | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 3 | 5 | |
Total pensions plan assets | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 1,642 | 343 | |
Fair Value, Inputs, Level 1, 2 and 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 389 | ||
Level 1 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 300 | ||
Level 1 | U.S. government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 13 | 17 | |
Level 1 | Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Common/collective trusts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 1 | Bond funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 46 | 31 | |
Level 1 | Blend funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 48 | ||
Level 1 | International funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 68 | ||
Level 1 | Common and preferred stocks | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 173 | 141 | |
Level 1 | Other | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 1 | Total pensions plan assets | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 300 | 237 | |
Level 2 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 89 | ||
Level 2 | U.S. government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 60 | 66 | |
Level 2 | Common/collective trusts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 9 | ||
Level 2 | Bond funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Blend funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 2 | International funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 2 | Common and preferred stocks | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 2 | Other | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 29 | 31 | |
Level 2 | Total pensions plan assets | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 89 | 106 | |
Level 3 | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 3 | U.S. government securities | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Corporate bonds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Common/collective trusts | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 3 | Bond funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Blend funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 3 | International funds | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | ||
Level 3 | Common and preferred stocks | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Other | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | 0 | |
Level 3 | Total pensions plan assets | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | 0 | $ 0 | |
Investments measured at net asset value | |||
Defined Benefit Plan Disclosure | |||
Fair value of plan assets | $ 1,253 |
RETIREMENT AND POSTRETIREMENT_8
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS - FUTURE BENEFIT PAYMENTS (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure | |
Expected contribution to defined benefit pension plans in next fiscal year | $ 179 |
Estimated future benefit payments | |
2020 | 810 |
2021 | 113 |
2022 | 125 |
2023 | 128 |
2024 | 124 |
2025 - 2029 | 625 |
Postretirement Benefits | |
Estimated future benefit payments | |
2020 | 73 |
2021 | 72 |
2022 | 71 |
2023 | 70 |
2024 | 68 |
2025 - 2029 | $ 321 |
INVESTMENTS AND RELATED-PARTY_3
INVESTMENTS AND RELATED-PARTY TRANSACTIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity Method Investments | |||
Equity method investment amounts | $ 6,389 | $ 1,680 | $ 1,515 |
Equity investments dividends paid | 422 | 329 | 297 |
Excess of investments in equity investees over the underlying equity in net assets | 3,600 | ||
Excess of investments in equity investees over the underlying equity in net assets, which represents goodwill | 1,500 | ||
Equity-method investments financial information summarized by Income Statement line item | |||
Revenues and other income | 26,520 | 28,091 | 13,843 |
Costs and expenses | 24,084 | 25,029 | 12,230 |
Net income | 2,436 | 3,062 | 1,613 |
Equity-method investments financial information summarized by Balance Sheet line item | |||
Current assets | 1,130 | 5,587 | 5,754 |
Non-current assets | 21,158 | 25,871 | 25,108 |
Current liabilities | 785 | 4,879 | 4,479 |
Long-term debt | 8,673 | 12,505 | 14,091 |
Other non-current liabilities | 859 | 95 | 414 |
Stockholders’ equity | 11,971 | 13,979 | 11,878 |
RELATED-PARTY TRANSACTIONS | |||
Sales | 691 | 805 | 636 |
Purchases | 463 | 502 | 387 |
Services | 28 | 52 | 38 |
Advances and amounts due from related parties | 133 | 63 | 63 |
Amounts due to related parties | $ 463 | $ 46 | $ 45 |
Note payable | WES | |||
RELATED-PARTY TRANSACTIONS | |||
Debt instrument interest rate stated percentage | 6.50% | ||
Anadarko Petroleum Corporation | |||
Equity Method Investments | |||
Equity method investment amounts | $ 2,800 | ||
Note payable | 2,800 | ||
WES | |||
Equity Method Investments | |||
Equity method investment amounts | $ 5,128 | ||
Equity method investment ownership percentage | 56.30% | ||
OxyChem Ingleside Facility | |||
Equity Method Investments | |||
Equity method investment amounts | $ 679 | ||
Equity method investment ownership percentage | 50.00% | ||
Dolphin Energy Limited | |||
Equity Method Investments | |||
Equity method investment amounts | $ 240 | ||
Equity method investment ownership percentage | 24.50% | ||
Other | |||
Equity Method Investments | |||
Equity method investment amounts | $ 342 | ||
General Partner of Plains All American Pipeline, L.P | |||
Equity Method Investments | |||
Ownership interest (as a percent) | 11.00% | ||
RELATED-PARTY TRANSACTIONS | |||
Sales to related party (as a percent) | 87.00% | 89.00% | 86.00% |
Plains All American Pipeline, LP | |||
Equity Method Investments | |||
Ownership interest (as a percent) | 40.00% | ||
Ingleside Ethylene LLC | |||
RELATED-PARTY TRANSACTIONS | |||
Purchases from related party (as a percent) | 98.00% | 98.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Values - Nonrecurring | |||
Pre-tax impairment and related charges on domestic undeveloped leases | $ 285 | ||
Impairments of assets | 285 | ||
Qatar ISSD | |||
Fair Values - Nonrecurring | |||
Pre-tax impairment charges | 39 | ||
Impairments of assets | 39 | ||
Qatar ISND and ISSD | |||
Fair Values - Nonrecurring | |||
Impairments of assets | $ 416 | ||
Proved and unproved non-core Permian acreages | |||
Fair Values - Nonrecurring | |||
Pre-tax impairment charges | $ 397 | ||
WES | |||
Fair Values - Nonrecurring | |||
Charge recorded as a result of loss of control | 1,000 | ||
Recurring | Accrued liabilities | |||
Liabilities: | |||
Netting and Collateral | 0 | 0 | |
Recurring | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Netting and Collateral | 0 | 0 | |
Recurring | Level 1 | Accrued liabilities | |||
Liabilities: | |||
Embedded derivative | 0 | 0 | |
Recurring | Level 1 | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Embedded derivative | 0 | 0 | |
Recurring | Level 2 | Accrued liabilities | |||
Liabilities: | |||
Embedded derivative | 40 | 66 | |
Recurring | Level 2 | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Embedded derivative | 49 | 116 | |
Recurring | Level 3 | Accrued liabilities | |||
Liabilities: | |||
Embedded derivative | 0 | 0 | |
Recurring | Level 3 | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Embedded derivative | 0 | $ 0 | |
Non recurring | Risk-Adjusted Discount Rate | |||
Fair Values - Nonrecurring | |||
Measurement input | 10.00% | ||
Fair Value | Recurring | Accrued liabilities | |||
Liabilities: | |||
Embedded derivative | 40 | $ 66 | |
Fair Value | Recurring | Deferred credits and other liabilities - other | |||
Liabilities: | |||
Embedded derivative | $ 49 | $ 116 |
INDUSTRY SEGMENTS AND GEOGRAP_3
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS - RESULTS OF OPERATIONS (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | segment | 3 | ||
Segment Information | |||
Net sales | $ 20,393 | $ 17,824 | $ 12,508 |
Income (loss) from continuing operations before income taxes | 186 | 5,608 | 1,328 |
Income tax expense | (693) | (1,477) | (17) |
Income (loss) from continuing operations | (507) | 4,131 | 1,311 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 6,389 | 1,680 | 1,515 |
Property, plant and equipment additions | 6,441 | 5,020 | 3,651 |
Depreciation, depletion and amortization | 5,981 | 3,977 | 4,002 |
Total assets | 109,330 | 43,854 | 42,026 |
Pre-tax impairment and related charges on domestic undeveloped leases | 285 | ||
Impairments of assets | 285 | ||
Employee severance and related costs | 1,000 | ||
Crucial seismic data | 401 | ||
Bank, legal and consulting fees | 213 | ||
Tax effect of pre-tax adjustments | (245) | 198 | (392) |
Qatar ISND and ISSD | |||
Segment Information | |||
Impairments of assets | 416 | ||
Marketing and Midstream | |||
Segment Information | |||
Impairments of assets | 100 | ||
Marketing and Midstream | Non Core Midstream Assets | |||
Segment Information | |||
Pre-tax net gain from divestiture | 907 | ||
Operating segments | Oil and Gas | |||
Segment Information | |||
Net sales | 13,423 | 10,441 | 7,870 |
Income (loss) from continuing operations before income taxes | 2,352 | 2,442 | 1,111 |
Income tax expense | 0 | 0 | 0 |
Income (loss) from continuing operations | 2,352 | 2,442 | 1,111 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 181 | 0 | 0 |
Property, plant and equipment additions | 5,559 | 4,443 | 2,968 |
Depreciation, depletion and amortization | 4,994 | 3,254 | 3,269 |
Total assets | 77,936 | 24,874 | 23,595 |
Gain on sale | 475 | ||
Impairment charges | 285 | ||
Pre-tax impairment and related charges on domestic undeveloped leases | 39 | ||
Operating segments | Oil and Gas | South Texas and non-core acreage in the Permian basin | |||
Segment Information | |||
Pre-tax gain on sale of properties | 655 | ||
Operating segments | Oil and Gas | Non-core Permian acreage | |||
Segment Information | |||
Impairment charges | 397 | ||
Operating segments | Chemical | |||
Segment Information | |||
Net sales | 4,102 | 4,657 | 4,355 |
Income (loss) from continuing operations before income taxes | 799 | 1,159 | 822 |
Income tax expense | 0 | 0 | 0 |
Income (loss) from continuing operations | 799 | 1,159 | 822 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 689 | 733 | 771 |
Property, plant and equipment additions | 272 | 277 | 323 |
Depreciation, depletion and amortization | 368 | 354 | 352 |
Total assets | 4,361 | 4,359 | 4,364 |
Operating segments | Marketing and Midstream | |||
Segment Information | |||
Net sales | 4,132 | 3,656 | 1,157 |
Income (loss) from continuing operations before income taxes | 241 | 2,802 | 85 |
Income tax expense | 0 | 0 | 0 |
Income (loss) from continuing operations | 241 | 2,802 | 85 |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 5,519 | 947 | 739 |
Property, plant and equipment additions | 475 | 221 | 296 |
Depreciation, depletion and amortization | 563 | 331 | 340 |
Total assets | 17,055 | 11,087 | 11,775 |
Charge upon loss of control | 1,000 | ||
Gain on sale of equity investment | 114 | ||
Impairment charges | 120 | ||
Operating segments | Marketing and Midstream | Interest Rate Swaps | |||
Segment Information | |||
Mark to market gain on interest rate swap | 30 | ||
Corporate and Eliminations | |||
Segment Information | |||
Net sales | (1,264) | (930) | (874) |
Income (loss) from continuing operations before income taxes | (3,206) | (795) | (690) |
Income tax expense | (693) | (1,477) | (17) |
Income (loss) from continuing operations | (3,899) | (2,272) | (707) |
INVESTMENTS IN UNCONSOLIDATED ENTITIES | 0 | 0 | 5 |
Property, plant and equipment additions | 135 | 79 | 64 |
Depreciation, depletion and amortization | 56 | 38 | 41 |
Total assets | $ 9,978 | $ 3,534 | $ 2,292 |
INDUSTRY SEGMENTS AND GEOGRAP_4
INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS - CORPORATE AND GEOGRAPHIC AREAS (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Information | |||
Property, plant and equipment, net | $ 80,469 | $ 31,437 | $ 31,174 |
United States | |||
Segment Information | |||
Property, plant and equipment, net | 72,808 | 23,594 | 22,863 |
Total Foreign | |||
Segment Information | |||
Property, plant and equipment, net | 7,661 | 7,843 | 8,311 |
United Arab Emirates | |||
Segment Information | |||
Property, plant and equipment, net | 3,887 | 4,051 | 4,241 |
Oman | |||
Segment Information | |||
Property, plant and equipment, net | 2,115 | 2,048 | 1,962 |
Colombia | |||
Segment Information | |||
Property, plant and equipment, net | 1,010 | 927 | 807 |
Qatar | |||
Segment Information | |||
Property, plant and equipment, net | 562 | 741 | 1,236 |
Other International | |||
Segment Information | |||
Property, plant and equipment, net | $ 87 | $ 76 | $ 65 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Period | $ 668 | $ 594 | $ 558 |
Charged to Costs and Expenses | 126 | 77 | 37 |
Charged to Other Accounts | (6) | (3) | (2) |
Deductions | 0 | 0 | 1 |
Balance at End of Period | 788 | 668 | 594 |
Valuation allowance and reserves, current | 22 | 24 | 18 |
Environmental, litigation and other reserves | |||
Valuation and qualifying accounts | |||
Balance at Beginning of Period | 994 | 935 | 997 |
Charged to Costs and Expenses | 182 | 140 | 45 |
Charged to Other Accounts | 1,408 | 85 | 53 |
Deductions | (173) | (166) | (160) |
Balance at End of Period | 2,411 | 994 | 935 |
Valuation allowance and reserves, current | $ 188 | $ 146 | $ 163 |