Occidental Petroleum Announces 4th Quarter and 12 Months of 2012 Income

  Occidental Petroleum Announces 4th Quarter and 12 Months of 2012 Income

  *Q4 2012 record total company oil and gas production of 779,000 barrels of
    oil equivalent per day
  *Q4 2012 domestic daily oil and gas production of 475,000 barrels of oil
    equivalent, a record for the ninth consecutive quarter
  *Q4 2012 core earnings of $1.5 billion, or $1.83 per diluted share

Business Wire

LOS ANGELES -- January 31, 2013

Occidental Petroleum Corporation (NYSE:OXY) announced core income of $1.5
billion ($1.83 per diluted share) for the fourth quarter of 2012, compared
with $1.6 billion ($2.02 per diluted share) for the fourth quarter of 2011. In
the fourth quarter of 2012, we recorded after-tax charges of $1.1 billion or
$1.41 per diluted share, almost all of which was related to the impairment of
gas assets in the Midcontinent. Net income for the fourth quarter of 2012
after this charge was $336 million ($0.42 per diluted share), compared with
$1.6 billion ($2.01 per diluted share) for the same period of 2011.

Core income was $5.8 billion ($7.09 per diluted share) for the year 2012,
compared with $6.8 billion ($8.39 per diluted share) for 2011. Net income for
the twelve months of 2012 was $4.6 billion ($5.67 per diluted share), compared
with $6.8 billion ($8.32 per diluted share) for 2011.

In announcing the results, Stephen I. Chazen, President and Chief Executive
Officer, said, "Our fourth quarter domestic production of 475,000 barrels of
oil equivalent per day, of which 342,000 barrels per day was liquids, set a
record for the ninth consecutive quarter. Our total company production for all
of 2012 was 766,000 barrels of oil equivalent per day, which was 5 percent
higher than 2011. Our domestic oil production grew by 11 percent for all of
2012 to 255,000 barrels per day from 230,000 barrels in 2011.

"Fourth quarter core income was $1.5 billion or $1.83 per diluted share. These
results were $0.13 higher than the third quarter of 2012 as a result of higher
liquids volumes, higher realized NGL and domestic gas prices and lower
operating expenses. In the fourth quarter, our production costs were $1.04 a
barrel lower than the third quarter, with improvements across most units. The
reductions resulted from efficiencies achieved across most cost categories
including savings in surface operations, reductions in the use of outside
contractors, curtailment of uneconomic down-hole maintenance and workover
activity, as well as related overhead. Our exit rate on a per barrel basis was
well below the total year 2012 and below the fourth quarter 2011 levels. We
generated cash flow from continuing operations before working capital changes
of $12.1 billion for the twelve months of 2012 and invested $10.2 billion in
capital expenditures."

                              QUARTERLY RESULTS

                                 Oil and Gas

Oil and gas core earnings were $2.3 billion for the fourth quarter of 2012,
compared with $2.5 billion for the fourth quarter of 2011. Lower 2012 earnings
resulted from lower year-over-year prices across all products in the fourth
quarter of 2012 and higher DD&A rates, partially offset by higher liquids
volumes. After including the fourth quarter 2012 charges, which will be
discussed in more detail on the earnings call, segment earnings were $522
million.

For the fourth quarter of 2012, daily oil and gas production volumes averaged
779,000 barrels of oil equivalent (BOE), compared with 748,000 BOE in the
fourth quarter of 2011.

The fourth quarter 2012 production increase resulted from higher volumes of
26,000 BOE per day from domestic operations and 5,000 BOE per day from
international production. The international increase included higher
production in Iraq, Bahrain and Libya, partially offset by lower volumes from
Dolphin, resulting from the full cost recovery of pre-startup capital, and in
Yemen due to the Masila field contract expiration.

Daily sales volumes increased from 749,000 BOE in the fourth quarter of 2011
to 784,000 BOE in the fourth quarter of 2012.

Oxy’s realized price for worldwide crude oil was $96.19 per barrel for the
fourth quarter of 2012, compared with $99.62 per barrel for the fourth quarter
of 2011. The fourth quarter of 2012 realized oil price represents 109 percent
of the average WTI and 87 percent of the average Brent price. Worldwide NGL
prices were $45.08 per barrel in the fourth quarter of 2012, compared with
$55.25 per barrel in the fourth quarter of 2011. Domestic gas prices decreased
14 percent from $3.59 per MCF in the fourth quarter of 2011 to $3.09 per MCF
for the fourth quarter of 2012.

Fourth quarter 2012 realized prices were higher than third quarter 2012 prices
for worldwide NGLs and domestic natural gas but were slightly lower for
worldwide crude oil. On a sequential quarterly basis, prices increased 11
percent for NGLs and 25 percent for domestic natural gas and decreased less
than 1 percent for worldwide crude oil.

                                   Chemical

Chemical segment earnings for the fourth quarter of 2012 were $180 million,
compared with $144 million in the fourth quarter of 2011. The increase was
primarily the result of higher export volumes for caustic soda and vinyl
chloride monomer and lower ethylene costs.

                        Midstream, Marketing and Other

Midstream segment earnings were $75 million for the fourth quarter of 2012,
compared with $70 million for the fourth quarter of 2011.

                             TWELVE-MONTH RESULTS

                                 Oil and Gas

Oil and gas core earnings were $8.8 billion for the twelve months of 2012,
compared with $10.3 billion for the same period of 2011. The decrease in 2012
reflected lower NGL and natural gas prices, higher operating costs,
exploration expense and DD&A rates, partially offset by higher oil prices and
domestic volumes. Segment earnings, after including the fourth quarter
charges, were $7.1 billion for 2012, compared with $10.2 billion for 2011.

Oil and gas production volumes for the twelve months were 766,000 BOE per day
for 2012, compared with 733,000 BOE per day for the same period in 2011.
Year-over-year, Oxy's domestic production increased by 9 percent, while total
company production increased by 5 percent. Dolphin's full cost recovery of
pre-startup capital, which reduced production, was the only operation where
production sharing and similar contracts had an appreciable effect.

The twelve-month 2012 production increase resulted from 37,000 BOE per day in
higher domestic volumes, partially offset by lower volumes in the Middle
East/North Africa and Latin America.

Daily sales volumes were 764,000 BOE in the twelve months of 2012, compared
with 731,000 BOE for the same period in 2011.

Oxy's realized prices improved for crude oil but declined for natural gas and
NGLs on a year-over-year basis. Worldwide crude oil prices were $99.87 per
barrel for the twelve months of 2012, compared with $97.92 per barrel for the
twelve months of 2011. Worldwide NGL prices were $45.18 per barrel for the
year 2012, compared with $55.53 per barrel for the year 2011. Domestic gas
prices declined 35 percent, from $4.06 per MCF in the twelve months of 2011 to
$2.62 per MCF in the twelve months of 2012.

                                   Chemical

Chemical segment earnings were $720 million for the twelve months of 2012,
compared with $861 million for the same period in 2011. The reduction was
primarily a result of lower margins due to weaker economic conditions in
Europe and Asia, and increased competitive activity from these regions. The
calcium chloride and potassium hydroxide businesses were also negatively
impacted by an extremely mild winter and drought conditions in the United
States.

                        Midstream, Marketing and Other

Midstream segment earnings were $439 million for the twelve months of 2012,
compared with $448 million for the same period in 2011.

                                  About Oxy

Occidental Petroleum Corporation (OXY) is an international oil and gas
exploration and production company with operations in the United States,
Middle East/North Africa and Latin America regions. Oxy is one of the largest
U.S. oil and gas companies, based on equity market capitalization. Oxy's
wholly owned subsidiary OxyChem manufactures and markets chlor-alkali products
and vinyls. Oxy is committed to safeguarding the environment, protecting the
safety and health of employees and neighboring communities and upholding high
standards of social responsibility in all of the company's worldwide
operations.

                          Forward-Looking Statements

Portions of this press release contain forward-looking statements and involve
risks and uncertainties that could materially affect expected results of
operations, liquidity, cash flows and business prospects. Factors that could
cause results to differ materially include, but are not limited to: global
commodity pricing fluctuations; supply and demand considerations for
Occidental’s products; general domestic political and regulatory approval
conditions; higher-than-expected costs; international political conditions;
not successfully completing, or any material delay of, any development of new
fields, expansion projects, capital expenditures, efficiency-improvement
projects, acquisitions or dispositions; potential failure to achieve expected
production from existing and future oil and gas development projects or
acquisitions; exploration risks such as drilling unsuccessful wells; any
changes in general economic conditions domestically or internationally; the
ability to attract trained engineers; potential liability for remedial actions
under existing or future environmental regulations and litigation; potential
liability resulting from pending or future litigation; potential disruption or
interruption of Occidental’s production or manufacturing or damage to
facilities due to accidents, chemical releases, labor unrest, weather, natural
disasters, political events or insurgent activity; failure of risk management;
changes in law or regulations; or changes in tax rates. 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
uncertainty of future events or outcomes generally indicate forward-looking
statements. You should not place undue reliance on these forward-looking
statements, which speak only as of the date of this report. Unless legally
required, Occidental does not undertake any obligation to update any
forward-looking statements, as a result of new information, future events or
otherwise. Material risks that may affect Occidental’s results of operations
and financial position appear in Part 1, Item 1A "Risk Factors" of the 2011
Form 10-K.

For further analysis of Occidental's quarterly performance, please visit the
website: www.oxy.com

Attachment 1
                                                          
SUMMARY OF SEGMENT NET SALES AND EARNINGS
                                                             
                        Fourth Quarter                     Twelve Months
($ millions,
except                   2012           2011            2012           2011   
per-share
amounts)
SEGMENT NET
SALES
Oil and Gas             $ 4,874          $ 4,784           $ 18,906         $ 18,419
Chemical                  1,141            1,094             4,580            4,815
Midstream,
Marketing and             355              338               1,399            1,447
Other
Eliminations             (199   )        (182  )          (713   )        (742   )
                                                                            
Net Sales               $ 6,171         $ 6,034          $ 24,172        $ 23,939 
                                                                            
SEGMENT
EARNINGS
Oil and Gas (a)         $ 522            $ 2,537           $ 7,095          $ 10,241
Chemical                  180              144               720              861
Midstream,
Marketing and            75             70              439            448    
Other
                          777              2,751             8,254            11,550
                                                                            
Unallocated
Corporate Items
Interest
expense, net              (30    )         (25   )           (117   )         (284   )
(b)
Income taxes              (249   )         (949  )           (3,118 )         (4,201 )
(c)
Other                    (134   )        (136  )          (384   )        (425   )
                                                                            
Income from
Continuing                364              1,641             4,635            6,640
Operations
Discontinued
operations, net          (28    )        (7    )          (37    )        131    
(d)
                                                                            
NET INCOME              $ 336           $ 1,634          $ 4,598         $ 6,771  
                                                                            
BASIC EARNINGS
PER COMMON
SHARE
Income from
continuing              $ 0.45           $ 2.02            $ 5.72           $ 8.16
operations
Discontinued             (0.03  )        (0.01 )          (0.05  )        0.16   
operations, net
                        $ 0.42          $ 2.01           $ 5.67          $ 8.32   
                                                                            
DILUTED
EARNINGS PER
COMMON SHARE
Income from
continuing              $ 0.45           $ 2.02            $ 5.71           $ 8.16
operations
Discontinued             (0.03  )        (0.01 )          (0.04  )        0.16   
operations, net
                        $ 0.42          $ 2.01           $ 5.67          $ 8.32   
AVERAGE COMMON
SHARES
OUTSTANDING
BASIC                     807.1            810.7             809.3            812.1
DILUTED                  807.7          811.5           810.0          812.9  
                                                                            
(a) Oil and Gas - The fourth quarter and twelve months of 2012 include pre-tax charges
of $1.7 billion related to the impairment of domestic gas assets and related items.
The twelve months of 2011 include pre-tax charges of $35 million related to
exploration write-offs in Libya and $29 million related to Colombia net worth tax.
Also, included in the twelve months of 2011 results is a pre-tax gain for sale of an
interest in a Colombia pipeline of $22 million.
(b) Unallocated Corporate Items - Interest Expense, net - The twelve months of 2011
include a pre-tax charge of $163 million related to the premium on debt
extinguishment.
(c) Unallocated Corporate Items - Taxes - The twelve months of 2011 include a net $21
million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The twelve months of 2011 include a $144 million
after-tax gain from the sale of the Argentine operations.
                                                                            
Attachment 2
                                                          
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
                                                                            
                        Fourth Quarter                     Twelve Months
($ millions)             2012           2011            2012           2011   
CAPITAL                 $ 2,510         $ 2,549          $ 10,226        $ 7,518  
EXPENDITURES
                                                                            
DEPRECIATION,
DEPLETION AND
AMORTIZATION OF         $ 1,191         $ 938            $ 4,511         $ 3,591  
ASSETS
                                                                            
                                                                            
                                                                            
                                                                            
Attachment 3
                                                          
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
                                                                            
Occidental's results of operations often include the effects of significant
transactions and events affecting earnings that vary widely and unpredictably in
nature, timing and amount. Therefore, management uses a measure called "core results,"
which excludes those items. This non-GAAP measure is not meant to disassociate those
items from management's performance, but rather is meant to provide useful information
to investors interested in comparing Occidental's earnings performance between
periods. Reported earnings are considered representative of management's performance
over the long term. Core results is not considered to be an alternative to operating
income in accordance with generally accepted accounting principles.
                                                                            
                        Fourth Quarter
                                        Diluted                            Diluted
($ millions,
except                   2012          EPS                2011          EPS
per-share
amounts)
TOTAL REPORTED          $ 336           $ 0.42           $ 1,634         $ 2.01   
EARNINGS
                                                                            
Oil and Gas
Segment                 $ 522                              $ 2,537
Earnings
Add:
Asset
impairments and          1,731                            -      
related items
                                                                            
Segment Core             2,253                            2,537  
Results
                                                                            
Chemicals
Segment                   180                                144
Earnings
Add:
No significant
items affecting          -                                -      
earnings
                                                                            
Segment Core             180                              144    
Results
                                                                            
Midstream,
Marketing and
Other
Segment                   75                                 70
Earnings
Add:
No significant
items affecting          -                                -      
earnings
                                                                            
Segment Core             75                               70     
Results
                                                                            
Total Segment            2,508                            2,751  
Core Results
                                                                            
Corporate
Corporate
Results --
Non Segment *             (441   )                           (1,117 )
Add:
Litigation                20                                 -
reserves
Tax effect of
pre-tax                   (636   )                           -
adjustments
Discontinued
operations, net          28                               7      
**
                                                                            
Corporate Core
Results - Non            (1,029 )                          (1,110 )
Segment
                                                                            
TOTAL CORE              $ 1,479         $ 1.83           $ 1,641         $ 2.02   
RESULTS
                                                                            
* Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.
                                                                            
                                                                            
Attachment 4
                                                          
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
                                                                            
                        Twelve Months
                                        Diluted                            Diluted
($ millions,
except                  2012             EPS               2011             EPS
per-share
amounts)
TOTAL REPORTED          $ 4,598         $ 5.67           $ 6,771         $ 8.32   
EARNINGS
                                                                            
Oil and Gas
Segment                 $ 7,095                            $ 10,241
Earnings
Add:
Asset
impairments and           1,731                              -
related items
Libya
exploration               -                                  35
write-off
Gain on sale of
Colombia                  -                                  (22    )
pipeline
interest
Foreign tax              -                                29     
                                                                            
Segment Core             8,826                            10,283 
Results
                                                                            
Chemicals
Segment                   720                                861
Earnings
Add:
No significant
items affecting          -                                -      
earnings
                                                                            
Segment Core             720                              861    
Results
                                                                            
Midstream,
Marketing and
Other
Segment                   439                                448
Earnings
Add:
No significant
items affecting          -                                -      
earnings
                                                                            
Segment Core             439                              448    
Results
                                                                            
Total Segment            9,985                            11,592 
Core Results
                                                                            
Corporate
Corporate
Results --
Non Segment *             (3,656 )                           (4,779 )
Add:
Litigation                20                                 -
reserves
Premium on debt           -                                  163
extinguishments
State income              -                                  33
tax charge
Tax effect of
pre-tax                   (636   )                           (50    )
adjustments
Discontinued
operations, net          37                               (131   )
**
                                                                            
Corporate Core
Results - Non            (4,235 )                          (4,764 )
Segment
                                                                            
TOTAL CORE              $ 5,750         $ 7.09           $ 6,828         $ 8.39   
RESULTS
                                                                            
* Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.
                                                                            
                                                                            
                                                                            
Attachment 5

SUMMARY OF OPERATING STATISTICS - PRODUCTION
                                                                            
                        Fourth Quarter                     Twelve Months
                        2012           2011            2012           2011   
NET OIL, GAS
AND LIQUIDS
PRODUCTION PER
DAY
United States
Crude Oil
(MBBL)
California                92               84                88               80
Permian                   146              137               142              134
Midcontinent             27             19              25             16     
and Other
Total                     265              240               255              230
                                                                            
NGL (MBBL)
California                21               15                17               15
Permian                   40               37                39               38
Midcontinent             16             18              17             16     
and Other
Total                     77               70                73               69
                                                                            
Natural Gas
(MMCF)
California                242              276               256              260
Permian                   162              167               155              157
Midcontinent             396            390             410            365    
and Other
Total                     800              833               821              782
                                                                            
Latin America
Crude Oil
(MBBL) -                  30               28                29               29
Colombia
                                                                            
Natural Gas
(MMCF) -                  12               14                13               15
Bolivia
                                                                            
Middle East /
North Africa
Crude Oil
(MBBL)
Bahrain                   4                5                 4                4
Dolphin                   7                9                 8                9
Oman                      74               67                67               67
Qatar                     71               76                71               73
Other                    36             33              36             38     
Total                     192              190               186              191
                                                                            
NGL (MBBL)
Dolphin                   7                9                 8                10
Other                    -              -               1              -      
Total                     7                9                 9                10
                                                                            
Natural Gas
(MMCF)
Bahrain                   242              180               232              173
Dolphin                   138              181               163              199
Oman                     56             58              57             54     
Total                     436              419               452              426
                                                                            
                                                                            
Barrels of Oil
Equivalent               779            748             766            733    
(MBOE)
                                                                            
                                                                            
Attachment 6
                                                          
SUMMARY OF OPERATING STATISTICS - SALES
                                                                            
                        Fourth Quarter                     Twelve Months
                        2012           2011            2012           2011   
NET OIL, GAS
AND LIQUIDS
SALES PER DAY
                                                                            
United States
Crude Oil                 265              240               255              230
(MBBL)
NGL (MBBL)                77               70                73               69
Natural Gas               800              833               819              782
(MMCF)
                                                                            
Latin America
Crude Oil
(MBBL) -                  30               32                28               29
Colombia
                                                                            
Natural Gas
(MMCF) -                  12               14                13               15
Bolivia
                                                                            
Middle East /
North Africa
Crude Oil
(MBBL)
Bahrain                   4                5                 4                4
Dolphin                   7                9                 8                9
Oman                      70               66                66               69
Qatar                     75               75                71               73
Other                    39             31              36             34     
Total                     195              186               185              189
                                                                            
NGL (MBBL)
Dolphin                   7                10                8                10
Other                    2              -               1              -      
Total                     9                10                9                10
                                                                            
Natural Gas               436              419               452              426
(MMCF)
                                                                            
                                                                            
Barrels of Oil
Equivalent               784            749             764            731    
(MBOE)

Contact:

Occidental Petroleum Corporation
Melissa E. Schoeb (media)
310-443-6504
melissa_schoeb@oxy.com
or
Chris Stavros (investors)
212-603-8184
chris_stavros@oxy.com
 
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