Occidental Petroleum : Announces 4th Quarter and Full-Year 2020 Results

• Confirmed $2.9 billion capital budget to sustain 2021 production in line with the fourth quarter of 2020, while lowering base decline to 22 percent
• Used net proceeds from asset sales and cash on hand to repay $2.3 billion of debt in the fourth quarter
• Raised $2.0 billion in senior unsecured debt and extended $2.0 billion of near-term maturities in the fourth quarter
• Exceeded global production guidance and continued to deliver operational excellence in the fourth quarter
• Production of 1,143 Mboed from continuing operations, exceeding midpoint of guidance by 13 Mboed
• Permian Resources exceeded high-end of guidance, producing 382 Mboed
• Continued to lower costs and achieved capital synergies for well cost savings in the Texas Delaware and DJ Basins

HOUSTON - February 22, 2021 - Occidental (NYSE:OXY) today announced a net loss attributable to common stockholders for the fourth quarter of 2020 of $1.3 billion, or $1.41 per diluted share, and an adjusted loss attributable to common stockholders of $731 million, or $0.78 per diluted share. Fourth quarter after-tax items affecting comparability of $581 million included a loss of $820 million related to the sale of non-core assets in the Permian Basin.

'We remain committed to strengthening our balance sheet and transitioned into 2021 with an improved financial position by achieving our 2020 divestiture target, reducing debt and successfully extending debt maturities,' said President and Chief Executive Officer Vicki Hollub. 'In the fourth quarter, our businesses again outperformed as our teams continue to leverage our technical expertise to mitigate production decline while relentlessly lowering costs.'We continue to make progress on our debt structure and have significantly exceeded our cost savings targets while delivering operational excellence across our business,' said President and Chief Executive Officer Vicki Hollub. 'These decisive financial and operational actions reflect our leadership as a low-cost operator, positioning us for success when market conditions improve.'

QUARTERLY RESULTS

Oil and Gas

Oil and gas pre-tax loss on continuing operations for the fourth quarter was $1.1 billion, compared to a pre-tax loss of $1.1 billion for the third quarter of 2020. The fourth quarter results included a pre-tax loss of $820 million related to the sale of non-core assets in the Permian Basin. Excluding items affecting comparability, fourth quarter oil and gas results improved over the third quarter due to higher commodity prices. For the fourth quarter of 2020, average WTI and Brent marker prices were $42.66 per barrel and $45.24 per barrel, respectively. Average worldwide realized crude oil prices increased by approximately 5 percent from the prior quarter to $40.77 per barrel. Average worldwide realized NGL prices increased by approximately 1 percent from the prior quarter to $14.95 per barrel of oil equivalent (BOE). Average domestic realized gas prices increased by approximately 31 percent from the prior quarter to $1.55 per Mcf.

Excluding Colombia, which was sold in December, total average daily production for the fourth quarter was 1,143 thousand of barrels of oil equivalent per day (Mboed), which exceeded the midpoint of guidance by 13 Mboed. Permian Resources exceeded the high end of guidance with production of 382 Mboed and all other domestic operations came in near the high end of guidance with production of 518 Mboed. International average daily production volumes were 243 Mboed.

OxyChem

Chemical pre-tax income of $192 million for the fourth quarter exceeded guidance. Compared to prior quarter income of $178 million, the improvement in fourth quarter income resulted primarily from higher vinyl margins, partially offset by lower realized caustic soda prices.

Midstream and Marketing

Midstream and marketing pre-tax loss for the fourth quarter was $90 million, compared to a loss of $2.8 billion for the third quarter of 2020. Excluding items affecting comparability, midstream and marketing pre-tax fourth quarter results reflected higher non-cash mark-to-market losses in the marketing business. Excluding WES equity income, midstream and marketing pre-tax loss for the fourth quarter was $234 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 assets 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 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 in Occidental's credit ratings; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations, such as the sharp decline in crude oil prices that occurred in the first half of 2020; 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; future impairments of our proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental's ability to timely obtain or maintain permits or other governmental approvals, including those necessary for drilling and/or development projects; Occidental's ability to successfully complete or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; 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 and liabilities associated with acquired and divested properties and businesses; 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 and 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; 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); potential liability resulting from pending or future 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 Occidental's counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental's ability to retain and hire key personnel; reorganization or restructuring of Occidental's operations; changes in state, federal or foreign 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, 2020, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.