Occidental Petroleum : NON GAAP Reconciliation

Occidental Petroleum Corporation

Earnings Per Share

Reconciliation to Generally Accepted Accounting Principles (GAAP)

($/share)

			Three Months Ended December 31,	Twelve Months Ended December 31,
	Reconciliation - Diluted Earnings Per Share		2021		2020		2021		2020
	Reported Diluted Earnings (Loss) Per Share (GAAP)	$	1.37	$	(1.41)	$	1.58	$	(17.06)
	Less: After-TaxNon-Core Adjustments
	Oil & Gas
	Domestic	$	(0.08)	$	(0.76)	$	(0.43)	$	(5.21)
	Foreign		0.06		-		0.04		(1.70)
	Exploration		-		-		-		-
	Chemical		-		-		-		-
	Marketing and Other Midstream		(0.08)		(0.13)		(0.12)		(4.14)
	Corporate
	Interest		(0.02)		-		(0.09)		-
	Other		(0.06)		0.09		(0.03)		(0.55)
	Taxes		0.09		-		0.15		(0.04)
	Discontinued Operations		(0.02)		0.04		(0.49)		(1.41)
	Total After-TaxNon-Core Adjustments	$	(0.11)	$	(0.76)	$	(0.97)	$	(13.05)
	Core Diluted Earnings Per Share (Non-GAAP)	$	1.48	$	(0.65)	$	2.55	$	(4.01)
Average Diluted Shares Outstanding - Reported (millions)		972.7		933.0		958.8		918.7
Average Diluted Shares Outstanding - Adjusted (millions)		972.7		933.0		958.8		918.7

Occidental Petroleum Corporation

Adjusted Operating Cash Flow before Working Capital and Free Cash Flow

Reconciliation to Generally Accepted Accounting Principles (GAAP)

($/MM)

	Three Months Ended December 31,	Twelve Months Ended December 31,
	2021			2020		2021		2020
Free Cash Flow (Non-GAAP)
Operating cash flow from continuing operations (GAAP)	$	3,231	$	1,367	$	10,253	$	3,842
Plus: Working capital and other, net		636		38		1,426		1,278
Operating cash flow from continuing operations before working capital (Non-GAAP)		3,867		1,405		11,679		5,120
Less: Capital Expenditures (GAAP)		(937)		(614)		(2,870)		(2,535)
Free Cash Flow (Non-GAAP)	$	2,930	$	791	$	8,809	$	2,585

Occidental Petroleum Corporation

Reserves Replacement and Multi-Year Data - Worldwide

Year Ended December 31, 2021

WORLDWIDE			2021		5-Year Avg
Reserves Replacement (MMBOE)
Revisions
Infill			208		41
Other Revisions	(A)		621		26
Improved Recovery			20		200
Extensions and Discoveries			145		48
Total Organic	(B)		994		315
Organic Excluding Other Revisions	(C)=(B)-(A)		373		289
Purchases			44		321
Sales	(D)		(11)		(74)
Total Reserve Additions	(E)		1,027		562
Production	(F)		426		352
Costs Incurred ($ millions)
Property acquisition costs	(G)		430		10,111
Exploration costs			290		309
Development costs			2,115		3,237
Total Organic Costs	(H)		2,405		3,546
Total Costs Incurred	(I)=(G)+(H)		2,835		13,657
Finding & Development Cost per BOE ($/BOE) - Non-GAAP
Organic	(H)/(B)	$	2.42	$	11.26
Program Additions	(H)/(C)	$	6.45	$	12.27
All-In	(I)/[(E)-(D)]	$	2.73	$	21.47
Reserves Replacement Ratio - Non-GAAP
Organic	(B)/(F)		233%		89%
All-In	(E)/(F)		241%		160%

Non-GAAP Measures

Finding and development cost (F&D Cost) and reserves replacement ratio are non-GAAP measures that Occidental believes are widely used in our industry, as well as by analysts and investors, to measure and evaluate the cost

of replacing annual production and adding proved reserves. Occidental's definitions of these non-GAAP measures may differ from similarly titled measures provided by other companies and as a result may not be comparable. F&D Cost - All-In is calculated by dividing total costs incurred for the year as defined by GAAP by the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases of minerals in place for the year. F&D Cost - Organic is F&D Cost - All-In excluding both the property acquisition costs and purchases of minerals in place, and F&D - Program Additions further excludes other revisions that are not infills. Reserves Replacement - All-In is calculated by dividing the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases and sales of minerals in place for the year by current year production. Reserves Replacement - Organic is Reserves Replacement - All-In, excluding purchases and sales of minerals in place for the year.

Occidental Petroleum Corporation

Reserves Replacement and Multi-Year Data - United States

Year Ended December 31, 2021

UNITED STATES			2021		5-Year Avg
Reserves Replacement (MMBOE)
Revisions
Infill			206		41
Other Revisions	(A)		615		(2)
Improved Recovery			7		158
Extensions and Discoveries			144		44
Total Organic	(B)		972		241
Organic Excluding Other Revisions	(C)=(B)-(A)		357		243
Purchases			44		302
Sales	(D)		(11)		(48)
Total Reserve Additions	(E)		1,005		495
Production	(F)		341		246
Costs Incurred ($ millions)
Property acquisition costs	(G)		429		10,094
Exploration costs			147		186
Development costs			1,749		2,588
Total Organic Costs	(H)		1,896		2,774
Total Costs Incurred	(I)=(G)+(H)		2,325		12,868
Finding & Development Cost per BOE ($/BOE) - Non-GAAP
Organic	(H)/(B)	$	1.95	$	11.51
Program Additions	(H)/(C)	$	5.31	$	11.42
All-In	(I)/[(E)-(D)]	$	2.29	$	23.70
Reserves Replacement Ratio - Non-GAAP
Organic	(B)/(F)		285%		98%
All-In	(E)/(F)		295%		201%

Non-GAAP Measures

Finding and development cost (F&D Cost) and reserves replacement ratio are non-GAAP measures that Occidental believes are widely used in our industry, as well as by analysts and investors, to measure and evaluate the cost

of replacing annual production and adding proved reserves. Occidental's definitions of these non-GAAP measures may differ from similarly titled measures provided by other companies and as a result may not be comparable. F&D Cost - All-In is calculated by dividing total costs incurred for the year as defined by GAAP by the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases of minerals in place for the year. F&D Cost - Organic is F&D Cost - All-In excluding both the property acquisition costs and purchases of minerals in place, and F&D - Program Additions further excludes other revisions that are not infills. Reserves Replacement - All-In is calculated by dividing the sum of proved reserve revisions, improved recovery, extensions and discoveries and purchases and sales of minerals in place for the year by current year production. Reserves Replacement - Organic is Reserves Replacement - All-In, excluding purchases and sales of minerals in place for the year.