Occidental Petroleum : Announces 3rd Quarter 2020 Results

• Exceeded $2.0 billion 2020 divestiture target
• Raised $5.0 billion in senior unsecured debt, retired $5.0 billion of near-term maturities and reduced outstanding debt by $1.3 billion year-to-date
• Exceeded global production guidance and continued to deliver operational excellence
• Production of 1,237 Mboed from continuing operations, exceeding midpoint of guidance by 12 Mboed despite a more active than expected offshore storm season
• Permian Resources exceeded high-end of guidance producing 420 Mboed
• Development activity increased with exceptional performance on cost, efficiency and productivity
• Continued to demonstrate low-cost leadership with overhead of $400 million and domestic operating expenses of $5.38 per BOE

HOUSTON - November 9, 2020 - Occidental (NYSE:OXY) today announced a net loss attributable to common stockholders for the third quarter of 2020 of $3.8 billion, or $4.07 per diluted share, and an adjusted loss attributable to common stockholders of $783 million, or $0.84 per diluted share. Third quarter after-tax items affecting comparability included a write-down of approximately $2.4 billion related to Occidental's equity investment in Western Midstream Partners, LP (WES) and $700 million of losses associated with the announced divestitures of onshore Colombia and mineral and surface acreage in Wyoming, Colorado and Utah.

'We delivered improved operating cash flow in the third quarter and achieved the highest quarterly free cash flow since 2011, driven by the strong performance of our businesses and our laser focus on margin preservation, reflecting our leadership as a low-cost operator,' said President and Chief Executive Officer Vicki Hollub. 'We continued to advance our divestiture program, exceeding our $2.0 billion plus target for 2020, with additional transactions anticipated as we continue our deleveraging progress.'

QUARTERLY RESULTS

Oil and Gas

Oil and gas pre-tax loss on continuing operations for the third quarter was $1.1 billion, compared to a pre-tax loss of $7.7 billion for the second quarter of 2020. The third quarter results included pre-tax losses of $795 million associated with the announced divestitures of onshore Colombia and mineral and surface acreage in Wyoming, Colorado and Utah. Excluding items affecting comparability, third quarter oil and gas results improved over the second quarter due to higher commodity prices, partially offset by lower volumes. For the third quarter of 2020, average WTI and Brent marker prices were $40.93 per barrel and $43.37 per barrel, respectively. Average worldwide realized crude oil prices increased by 67 percent from the prior quarter to $38.67 per barrel. Average worldwide realized NGL prices increased by 91 percent from the prior quarter to $14.85 per barrel of oil equivalent (BOE). Average domestic realized gas prices increased by 31 percent from the prior quarter to $1.18 per Mcf.

Despite a disruptive domestic Gulf of Mexico storm season, total average daily global production of 1,237 thousand of barrels of oil equivalent per day (Mboed) for the third quarter exceeded the midpoint of guidance by 12 Mboed. Permian Resources exceeded the high end of guidance by 3 percent with production of 420 Mboed. International average daily production volumes of 277 Mboed came in at the high end of guidance.

OxyChem

Chemical pre-tax income of $178 million for the third quarter exceeded guidance by 23 percent. Compared to prior quarter income of $108 million, the improvement in third quarter income resulted primarily from improved realized caustic soda and PVC prices, along with higher chlorovinyl sales volumes.

Midstream and Marketing

Midstream and marketing pre-tax loss for the third quarter was $2.8 billion, compared to a loss of $7 million for the second quarter of 2020. Excluding items affecting comparability, which included the write-down of Occidental's equity-method investment in WES, midstream and marketing pre-tax third quarter results did not materially change from the second quarter. Excluding WES equity income, midstream and marketing pre-tax loss for the third quarter was $143 million.

Supplemental Non-GAAP Measure

This press release refers to adjusted income (loss) and free cash flow, supplemental measures not calculated in accordance with generally accepted accounting principles in the United States (GAAP). Definitions of adjusted income (loss) and a reconciliation to net income (loss) along with free cash flow and a reconciliation to the comparable GAAP financial measures, are included in the financial schedules of this press release. Occidental's definition of adjusted income (loss) and free cash flow may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.

About Occidental

Occidental is an international energy company with operations in the United States, Middle East, Africa and Latin America. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon dioxide management to advance a lower-carbon world. Visit oxy.com for more information.

Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of the 'safe harbor' provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental's expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are 'forward-looking statements' for purposes of federal and state securities laws, and they include, but are not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations or business strategy; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Words such as 'estimate,' 'project,' 'predict,' 'will,' 'would,' 'should,' 'could,' 'may,' 'might,' 'anticipate,' 'plan,' 'intend,' 'believe,' 'expect,' 'aim,' 'goal,' 'target,' 'objective,' 'likely' or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.

Although Occidental believes that the expectations reflected in any of our forward-looking statements are reasonable, actual results may differ from anticipated results, sometimes materially. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: the scope and duration of the COVID-19 pandemic and actions taken by governmental authorities and other third parties in response to the pandemic; Occidental's indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental's ability to successfully monetize select assets, repay or refinance debt and the impact of changes to Occidental's credit ratings; assumptions about energy markets and fluctuations in global and local commodity and commodity-futures prices; supply and demand considerations for, and the prices of, Occidental's products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; unexpected changes in costs; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; uncertainties and liabilities associated with acquired and divested properties and businesses; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties about the estimated quantities of oil, natural gas and natural gas liquids reserves; lower-than-expected production from development projects or acquisitions; Occidental's ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental's competitiveness; exploration, drilling or other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental's oil and natural gas and other processing and transportation considerations; general economic conditions, including slowdowns, domestically or internationally, and volatility in the securities, capital or credit markets; uncertainty from the expected discontinuance of LIBOR and transition to any other interest rate benchmark; adverse tax consequences; governmental actions and political conditions and events; legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, deepwater and onshore drilling and permitting regulations, and environmental regulation (including regulations related to climate change); environmental risks and liability under international, provincial, federal, regional, state, tribal, local and foreign environmental laws and regulations (including remedial actions); asset impairments; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber-attacks or insurgent activity; the creditworthiness and performance of our counterparties; failure of risk management; Occidental's ability to hire and retain key personnel; reorganization or restructuring of Occidental's operations; changes in tax rates; and actions by third parties that are beyond Occidental's control.

Additional information concerning these and other factors can be found in Occidental's filings with the U.S. Securities and Exchange Commission, including Occidental's Annual Report on Form 10-K for the year ended December 31, 2019, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.