Occidental Petroleum Announces 1st Quarter of 2013 Income

  Occidental Petroleum Announces 1st Quarter of 2013 Income

  *Q1 2013 domestic daily oil and gas production of 478,000 barrels of oil
    equivalent, a record for the tenth consecutive quarter
  *Q1 2013 total company oil and gas production of 763,000 barrels of oil
    equivalent per day
  *Q1 2013 income from continuing operations of $1.4 billion, or $1.69 per
    diluted share

Business Wire

LOS ANGELES -- April 25, 2013

Occidental Petroleum Corporation (NYSE:OXY) announced income from continuing
operations of $1.4 billion ($1.69 per diluted share) for the first quarter of
2013, compared with $1.6 billion ($1.92 per diluted share) for the first
quarter of 2012. Net income for the first quarter of 2013 was also $1.4
billion ($1.68 per diluted share).

In announcing the results, Stephen I. Chazen, President and Chief Executive
Officer, said, "Our first quarter domestic production of 478,000 barrels of
oil equivalent per day, of which 342,000 barrels per day were liquids, set a
record for the tenth consecutive quarter. Our total company production of
763,000 barrels of oil equivalent in the first quarter of 2013 was 8,000
barrels higher than production in first quarter of 2012.

"We executed well in the first quarter and to date are running ahead of our
full-year objectives in our program to improve domestic operational and
capital efficiencies. We have reduced both our domestic well and operating
costs by about 19 percent relative to 2012. Overall, we generated cash flow
from operations of $2.9 billion before changes in working capital for the
first quarter of 2013 and invested $2.1 billion in capital expenditures."

                                 Oil and Gas

Oil and gas segment earnings were $1.9 billion for the first quarter of 2013,
compared with $2.5 billion for the first quarter of 2012. The current quarter
results reflected higher domestic liquids volumes and lower operating costs,
which were offset by lower year-over-year oil and NGL prices, lower sales
volumes in the Middle East/North Africa and higher DD&A rates.

Operating costs dropped significantly during the first quarter of 2013,
especially domestically. The first quarter 2013 domestic operating costs were
$14.06 per barrel, compared to $16.44 in the first quarter 2012, $17.17 in the
fourth quarter 2012 and $17.43 for the full year 2012. For the entire company,
the first quarter 2013 costs were $13.93 per barrel, compared to $14.99 for
all of 2012. First quarter 2013 international operating costs were higher due
principally to planned maintenance turnarounds.

For the first quarter of 2013, daily oil and gas production volumes averaged
763,000 barrels of oil equivalent (BOE), compared with 755,000 BOE in the
first quarter of 2012. The first quarter 2013 production increase resulted
from higher volumes of 23,000 BOE per day from domestic operations while
international production was 15,000 BOE per day lower. The lower international
production volumes were due to the combined effect of maintenance turnarounds
in Qatar and the impact of full cost recovery in Oman and our Dolphin
operations. The turnarounds were executed successfully and production has
returned to normal levels.

Daily sales volumes increased slightly from 745,000 BOE in the first quarter
of 2012 to 746,000 BOE in the first quarter of 2013. Sales volumes were lower
than production volumes due to the timing of liftings in Middle East/North
Africa.

Oxy’s realized price for worldwide crude oil was $98.07 per barrel for the
first quarter of 2013, compared with $107.98 per barrel for the first quarter
of 2012. NGL prices were $40.27 per barrel in the first quarter of 2013,
compared with $52.51 per barrel in the first quarter of 2012. Domestic gas
prices were higher in the first quarter of 2013 at $3.08 per MCF, compared
with $2.84 in the first quarter of 2012.

First quarter 2013 realized prices were higher than fourth quarter 2012 prices
for worldwide oil, while NGLs prices were lower and domestic natural gas
prices were flat. On a sequential quarterly basis, prices increased 2 percent
for oil and decreased 11 percent for NGLs.

                                   Chemical

Chemical segment earnings for the first quarter of 2013 were $159 million,
compared with $184 million in the first quarter of 2012. The lower earnings
resulted from weaker chlorinated organics demand and pricing combined with
higher natural gas costs, partially offset by higher caustic soda exports.

                        Midstream, Marketing and Other

Midstream segment earnings were $215 million for the first quarter of 2013,
compared with $131 million for the first quarter of 2012. The increase mainly
reflected improved marketing and trading performance.

                                  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. Actual results may
differ from anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance. 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; higher-than-expected costs; the regulatory approval
environment; not successfully completing, or any material delay of, field
developments, expansion projects, capital expenditures, efficiency projects,
acquisitions or dispositions; lower-than-expected production from development
projects or acquisitions; exploration risks; general economic slowdowns
domestically or internationally; political conditions and events; inability to
attract trained engineers; environmental liability; 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; 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 prospective nature of 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 release. 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 2012 Form 10-K. Occidental posts or provides
links to important information on its website at www.oxy.com.

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

Attachment 1
                                                       
SUMMARY OF SEGMENT NET SALES AND EARNINGS
                                                          
                      First Quarter
($ millions,
except                 2013          2012   
per-share
amounts)
SEGMENT NET
SALES
Oil and Gas           $ 4,440         $ 4,902
Chemical                1,175           1,148
Midstream,
Marketing and           453             393
Other
Eliminations           (196  )        (175   )
                                                                        
Net Sales             $ 5,872        $ 6,268  
                                                                        
SEGMENT
EARNINGS
Oil and Gas           $ 1,920         $ 2,504
Chemical                159             184
Midstream,
Marketing and          215           131    
Other
                        2,294           2,819
                                                                        
Unallocated
Corporate
Items
Interest                (30   )         (28    )
expense, net
Income taxes            (844  )         (1,139 )
Other                  (61   )        (92    )
                                                                        
Income from
Continuing              1,359           1,560
Operations
Discontinued
operations,            (4    )        (1     )
net
                                                                        
NET INCOME            $ 1,355        $ 1,559  
                                                                        
BASIC
EARNINGS PER
COMMON SHARE
Income from
continuing            $ 1.69          $ 1.92
operations
Discontinued
operations,            (0.01 )        -      
net
                      $ 1.68         $ 1.92   
                                                                        
DILUTED
EARNINGS PER
COMMON SHARE
Income from
continuing            $ 1.69          $ 1.92
operations
Discontinued
operations,            (0.01 )        -      
net
                      $ 1.68         $ 1.92   
AVERAGE
COMMON SHARES
OUTSTANDING
BASIC                   804.7           810.5
DILUTED                805.2         811.3  
                                                                        
                                                                        
                                                                        
Attachment 2
                                                       
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
                                                                        
                      First Quarter
($ millions)           2013          2012   
CAPITAL               $ 2,070        $ 2,412  
EXPENDITURES
                                                                        
DEPRECIATION,
DEPLETION AND
AMORTIZATION          $ 1,259        $ 1,085  
OF 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 reported in accordance
with generally accepted accounting principles.
                                                                        
                      First Quarter
                                     Diluted                           Diluted
($ millions,
except                 2013         EPS               2012          EPS
per-share
amounts)
TOTAL
REPORTED              $ 1,355        $ 1.68          $ 1,559         $  1.92
EARNINGS
                                                                        
Oil and Gas
Segment               $ 1,920                          $ 2,504
Earnings
Add:
No
significant
items                  -                              -      
affecting
earnings
                                                                        
Segment Core           1,920                          2,504  
Results
                                                                        
Chemicals
Segment                 159                              184
Earnings
Add:
No
significant
items                  -                              -      
affecting
earnings
                                                                        
Segment Core           159                            184    
Results
                                                                        
Midstream,
Marketing and
Other
Segment                 215                              131
Earnings
Add:
No
significant
items                  -                              -      
affecting
earnings
                                                                        
Segment Core           215                            131    
Results
                                                                        
Total Segment          2,294                          2,819  
Core Results
                                                                        
Corporate
Corporate
Results --
Non Segment *           (939  )                          (1,260 )
Add:
Discontinued
operations,            4                              1      
net **
                                                                        
Corporate
Core Results           (935  )                         (1,259 )
- Non Segment
                                                                        
TOTAL CORE            $ 1,359        $ 1.69          $ 1,560         $  1.92
RESULTS
                                                                        
* Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.
                                                                        
                                                                        
Attachment 4
                                                       
SUMMARY OF OPERATING STATISTICS - PRODUCTION
                                                                        
                      First Quarter
                      2013          2012   
NET OIL, GAS
AND LIQUIDS
PRODUCTION
PER DAY
United States
Oil (MBBL)
California              88              86
Permian                 148             139
Midcontinent           28            19     
and Other
Total                   264             244
                                                                        
NGLs (MBBL)
California              20              15
Permian                 40              39
Midcontinent           18            18     
and Other
Total                   78              72
                                                                        
Natural Gas
(MMCF)
California              260             267
Permian                 174             155
Midcontinent           383           412    
and Other
Total                   817             834
                                                                        
Latin America
Oil (MBBL) -            29              24
Colombia
                                                                        
Natural Gas
(MMCF) -                13              14
Bolivia
                                                                        
Middle East /
North Africa
Oil (MBBL)
Bahrain                 3               4
Dolphin                 6               8
Oman                    65              64
Qatar                   59              72
Other                  42            42     
Total                   175             190
                                                                        
NGLs (MBBL)
Dolphin                 7               9
                                                                        
Natural Gas
(MMCF)
Bahrain                 244             219
Dolphin                 134             173
Oman                   54            57     
Total                   432             449
                                                                        
                                                                        
Barrels of
Oil                    763           755    
Equivalent
(MBOE)
                                                                        
                                                                        
Attachment 5
                                                       
SUMMARY OF OPERATING STATISTICS - SALES
                                                                        
                      First Quarter
                      2013          2012   
NET OIL, GAS
AND LIQUIDS
SALES PER DAY
                                                                        
United States
Oil (MBBL)              264             244
NGLs (MBBL)             78              72
Natural Gas             819             834
(MMCF)
                                                                        
Latin America
Oil (MBBL) -            30              24
Colombia
                                                                        
Natural Gas
(MMCF) -                13              14
Bolivia
                                                                        
Middle East /
North Africa
Oil (MBBL)
Bahrain                 3               4
Dolphin                 6               8
Oman                    72              64
Qatar                   51              70
Other                  24            34     
Total                   156             180
                                                                        
NGLs (MBBL)
Dolphin                 7               9
                                                                        
Natural Gas             432             449
(MMCF)
                                                                        
                                                                        
Barrels of
Oil                    746           745    
Equivalent
(MBOE)

Contact:

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