Occidental Announces 3rd Quarter 2020 Results

• Exceeded $2.0B 2020 divestiture target
• Raised $5.0B in senior unsecured debt, retired $5.0B of near-term maturities and reduced outstanding debt by $1.3B 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 $400M and domestic operating expenses of $5.38 per BOE

Occidental today announced a net loss attributable to common stockholders for the third quarter of 2020 of $3.8B, or $4.07 per diluted share, and an adjusted loss attributable to common stockholders of $783M, or $0.84 per diluted share. Third quarter after-tax items affecting comparability included a write-down of approximately $2.4B related to Occidental's equity investment in Western Midstream Partners, LP (WES) and $700M 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 $2.0B 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 $1.1B, compared to a pre-tax loss of $7.7B for the second quarter of 2020. The third quarter results included pre-tax losses of $795M 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 $178M for the third quarter exceeded guidance by 23 percent. Compared to prior quarter income of $108M, 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 $2.8B, compared to a loss of $7M 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 $143M.

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. For more information, visit oxy.com.