UNITED
STATES SECURITIES AND EXCHANGE COMMISSION
|
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Washington,
D.C. 20549
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|||
Form 10-K
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R Annual Report
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of
1934
|
£
Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
|
||
For
the fiscal year ended December 31, 2009
|
For
the transition period
from to
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||
Commission
File Number 1-9210
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Occidental Petroleum Corporation
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(Exact
name of registrant as specified in its charter)
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State
or other jurisdiction of incorporation or organization
|
Delaware
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||
I.R.S.
Employer Identification No.
|
95-4035997
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||
Address
of principal executive offices
|
10889
Wilshire Blvd., Los Angeles, CA
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||
Zip
Code
|
90024
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||
Registrant's
telephone number, including area code
|
(310)
208-8800
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||
Securities
registered pursuant to Section 12(b) of the Act:
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Title
of Each Class
|
Name
of Each Exchange on Which Registered
|
||
9
1/4% Senior Debentures due 2019
|
New
York Stock Exchange
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||
Common
Stock
|
New
York Stock Exchange
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||
Securities
registered pursuant to Section 12(g) of the Act: None
|
|||
Indicate by check
mark if the registrant is a well-known seasoned issuer, as defined in Rule
405 of the Securities Act. R YES £ NO
Indicate by check
mark if the registrant is not required to file reports pursuant to Section
13 or Section 15(d) of the Act: (Note: Checking the box will not relieve
any registrant required to file reports pursuant to Section 13 or 15(d) of
the Exchange Act from their obligations under those
Sections).
£ YES
R NO
Indicate by check
mark whether the registrant (1) has filed all reports required to be filed
by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past
90 days. R YES £ NO
Indicate by check
mark whether the registrant has submitted electronically and posted on its
corporate web site, if any, every Interactive Date File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the
preceding 12 months (or such shorter period as the registrant was required
to submit and post
files). R YES £ NO
|
Indicate by check
mark if disclosure of delinquent filers pursuant to Item 405 of Regulation
S-K is not contained herein, and will not be contained, to the best of
registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K.
R
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer or a smaller reporting
company. (See definition of "large accelerated filer,"
"accelerated filer" and "smaller reporting company" in Rule 12b-2 of the
Exchange Act).
Large Accelerated
Filer R Accelerated
Filer £
Non-Accelerated
Filer £ Smaller Reporting
Company £
Indicate by check
mark whether the registrant is a shell company (as defined in Exchange Act
Rule 12b-2). £ YES
R NO The
aggregate market value of the voting common stock held by nonaffiliates of
the registrant was approximately $52.73 billion, computed by reference to
the closing price on the New York Stock Exchange composite tape of $65.81
per share of Common Stock on June 30, 2009. Shares of Common
Stock held by each executive officer and director have been excluded from
this computation in that such persons may be deemed to be
affiliates. This determination of potential affiliate status is
not a conclusive determination for other purposes.
|
||
At
January 31, 2010, there were 811,955,959 shares of Common Stock
outstanding.
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DOCUMENTS
INCORPORATED BY REFERENCE
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Portions
of the registrant’s definitive Proxy Statement, filed in connection with
its May 7, 2010, Annual Meeting of Stockholders, are incorporated by
reference into Part III.
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TABLE
OF CONTENTS
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Page
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Part
I
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||
Items
1 and 2
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Business
and Properties
|
3
|
General
|
3
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|
Oil
and Gas Operations
|
3
|
|
Chemical
Operations
|
4
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|
Midstream,
Marketing and Other Operations
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5
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|
Capital
Expenditures
|
5
|
|
Employees
|
5
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|
Environmental
Regulation
|
5
|
|
Available
Information
|
5
|
|
Item
1A
|
Risk
Factors
|
6
|
Item
1B
|
Unresolved
Staff Comments
|
7
|
Item
3
|
Legal
Proceedings
|
7
|
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
7
|
Executive
Officers
|
7
|
|
Part
II
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||
Item
5
|
Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
8
|
Item
6
|
Selected
Financial Data
|
10
|
Item
7 and 7A
|
Management’s
Discussion and Analysis of Financial Condition and Results of Operations
(MD&A)
|
10
|
Strategy
|
10
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|
Oil
and Gas Segment
|
13
|
|
Chemical
Segment
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18
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|
Midstream,
Marketing and Other Segment
|
18
|
|
Segment
Results of Operations
|
19
|
|
Significant
Items Affecting Earnings
|
21
|
|
Taxes
|
21
|
|
Consolidated
Results of Operations
|
22
|
|
Consolidated
Analysis of Financial Position
|
23
|
|
Liquidity
and Capital Resources
|
23
|
|
Off-Balance-Sheet
Arrangements
|
25
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|
Contractual
Obligations
|
25
|
|
Lawsuits,
Claims, Commitments, Contingencies and Related Matters
|
25
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|
Environmental
Liabilities and Expenditures
|
26
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|
Foreign
Investments
|
27
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|
Critical
Accounting Policies and Estimates
|
28
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|
Significant
Accounting and Disclosure Changes
|
31
|
|
Derivative
Activities and Market Risk
|
31
|
|
Safe
Harbor Discussion Regarding Outlook and Other Forward-Looking Data
|
33
|
|
Item
8
|
Financial
Statements and Supplementary Data
|
34
|
Management's
Annual Assessment of and Report on Internal Control Over Financial
Reporting
|
34
|
|
Report
of Independent Registered Public Accounting Firm on Consolidated Financial
Statements
|
35
|
|
Report
of Independent Registered Public Accounting Firm on Internal Control Over
Financial Reporting
|
36
|
|
Consolidated
Statements of Income
|
37
|
|
Consolidated
Balance Sheets
|
38
|
|
Consolidated
Statements of Stockholders’ Equity
|
40
|
|
Consolidated
Statements of Comprehensive Income
|
40
|
|
Consolidated
Statements of Cash Flows
|
41
|
|
Notes
to Consolidated Financial Statements
|
42
|
|
Quarterly
Financial Data (Unaudited)
|
69
|
|
Supplemental
Oil and Gas Information (Unaudited)
|
71
|
|
Financial
Statement Schedule:
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||
Schedule
II – Valuation and Qualifying Accounts
|
84
|
|
Item
9
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
85
|
Item
9A
|
Controls
and Procedures
|
85
|
Disclosure
Controls and Procedures
|
85
|
|
Part
III
|
||
Item
10
|
Directors,
Executive Officers and Corporate Governance
|
85
|
Item
11
|
Executive
Compensation
|
85
|
Item
12
|
Security
Ownership of Certain Beneficial Owners and Management
|
85
|
Item
13
|
Certain
Relationships and Related Transactions and Director Independence
|
85
|
Item
14
|
Principal
Accountant Fees and Services
|
85
|
Part
IV
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||
Item
15
|
Exhibits
and Financial Statement Schedules
|
86
|
Comparative Oil and Gas Proved Reserves and Sales
Volumes
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|||||||||||||||||||
Oil
in millions of barrels; natural gas in billions of cubic feet; barrels of
oil equivalent (BOE) in millions of barrels of oil
equivalent
|
|||||||||||||||||||
2009
|
2008
|
2007
|
|||||||||||||||||
Proved
Reserves
|
Oil
|
(a)
|
Gas
|
BOE
|
(b)
|
Oil
|
(a)
|
Gas
|
BOE
|
(b)
|
Oil
|
(a)
|
Gas
|
BOE
|
(b)
|
||||
United
States
|
1,606
|
2,799
|
2,072
|
1,547
|
3,153
|
2,073
|
1,707
|
2,672
|
2,152
|
||||||||||
International
|
760
|
2,358
|
1,153
|
663
|
1,448
|
904
|
517
|
1,171
|
712
|
||||||||||
Total
|
2,366
|
5,157
|
3,225
|
(c)
|
2,210
|
4,601
|
2,977
|
(c)
|
2,224
|
3,843
|
2,864
|
(c)
|
|||||||
Sales Volumes
|
|||||||||||||||||||
United
States
|
99
|
232
|
137
|
96
|
215
|
132
|
95
|
216
|
131
|
||||||||||
International
|
80
|
106
|
98
|
73
|
92
|
88
|
69
|
45
|
77
|
||||||||||
Total
|
179
|
338
|
235
|
169
|
307
|
220
|
164
|
261
|
208
|
(a)
|
Includes
NGLs and condensate.
|
|
(b)
|
Natural
gas volumes have been converted to BOE based on energy content of six
thousand cubic feet (Mcf) of gas to one barrel of oil.
|
|
(c)
|
Stated
on a net basis after applicable royalties. Includes proved
reserves related to production-sharing contracts (PSCs) and other similar
economic arrangements of 1.1 billion BOE in 2009, 825 million BOE (MMBOE)
in 2008 and 601 MMBOE in 2007.
|
Principal
Products
|
Major
Uses
|
Annual
Capacity
|
Basic
Chemicals
|
||
Chlorine
|
Chlorovinyl
chain and water treatment
|
4.0
million tons (a)
|
Caustic
Soda
|
Pulp,
paper and aluminum production
|
4.2
million tons (a)
|
Chlorinated
organics
|
Silicones,
paint stripping, pharmaceuticals and refrigerants
|
0.9
billion pounds
|
Potassium
chemicals
|
Glass,
fertilizers, cleaning products and rubber
|
0.4
million tons
|
Ethylene
dichloride (EDC)
|
Raw
material for vinyl chloride monomer (VCM)
|
2.4
billion pounds (a)
|
Vinyls
|
||
VCM
|
Precursor
for polyvinyl chloride (PVC)
|
6.2
billion pounds
|
PVC
|
Piping,
medical, building materials and automotive products
|
3.7
billion pounds
|
Other
Chemicals
|
||
Chlorinated
isocyanurates
|
Swimming
pool sanitation and disinfecting products
|
131
million pounds
|
Resorcinol
|
Tire
manufacture, wood adhesives and flame retardant synergist
|
50
million pounds
|
Sodium
silicates
|
Soaps,
detergents and paint pigments
|
0.6
million tons
|
Calcium
chloride
|
Ice
melting, dust control, road stabilization and oil field
services
|
0.7
million tons
|
(a)
|
Includes
gross capacity of a joint venture in Brazil, owned 50 percent by
Occidental.
|
Location
|
Description
|
Capacity
|
Gas
Plants
|
||
California,
Colorado and Permian Basin
|
Occidental-operated
and third-party-operated gas gathering, treating, compression and
processing systems, and CO2
processing
|
1.958
billion cubic feet per day
|
Pipelines
|
||
Permian
Basin and Oklahoma
|
Common
carrier oil pipeline and storage system
|
365,000
barrels of oil per day
5.8
million barrels of oil storage
2,760
miles of pipeline
|
Colorado,
New Mexico and Texas - CO2 fields
and pipelines
|
CO2
fields and pipeline systems transporting CO2 to
oil and gas producing locations
|
1.625
billion cubic feet per day
|
Qatar
- Dolphin Pipeline
|
24.5%
equity investment in a natural gas pipeline
|
3.2
billion cubic feet of natural gas per day
(a)
|
Western
and Southern United States and Canada
|
Minority
investment in entity involved in pipeline transportation, storage and
marketing of oil, gas and related petroleum products
|
16,000
miles of pipeline and gathering systems (b)
85
million barrels of liquid storage (b)
|
Marketing
and Trading
|
||
Texas,
Connecticut, United Kingdom, Singapore and other
|
Trades
around its assets and purchases, markets and trades oil, gas, power, other
commodities and securities
|
Not
applicable
|
Power
Generation
|
||
California,
Texas and Louisiana
|
Occidental-operated
power and steam generation facilities and 50% equity investment in a power
generation facility
|
1,800
megawatts per hour (c) and
1.6 million pounds of steam per hour (c)
|
(a)
|
Capacity
requires additional gas compression and customer
contracts.
|
(b)
|
Amounts
are gross, including interests held by third parties.
|
(c)
|
Includes
gross capacity of a joint venture in California, owned 50 percent by
Occidental.
|
Ø
|
Forms
10-K, 10-Q, 8-K and amendments to these forms as soon as reasonably
practicable after they are electronically filed with, or furnished to, the
Securities and Exchange Commission
(SEC);
|
Ø
|
Other
SEC filings, including Forms 3, 4 and 5; and
|
|
Ø
|
Corporate
governance information, including its corporate governance guidelines,
board-committee charters and Code of Business Conduct. (See
Part III Item 10 of this report for further
information.)
|
Item 1A | Risk Factors |
Ø
|
new
or amended laws and regulations, including those related to taxes, royalty
rates, profit repatriation, permitted production rates, import, export and
use of equipment, safety, security and environmental protection, all of
which may increase costs or reduce the demand for Occidental's
products;
|
|
Ø
|
reduction
of entitlements to produce oil and gas; and
|
|
Ø
|
refusal
or delay in the extension or grant of exploration, production or
development contracts.
|
Item 1B | Unresolved Staff Comments |
Item 3 | Legal Proceedings |
Item 4 | Submission of Matters to a Vote of Security Holders |
Name
|
Age
at
February
25, 2010
|
Positions
with Occidental and Subsidiaries and Five-Year Employment
History
|
||
Dr.
Ray R. Irani
|
75
|
Chairman
and Chief Executive Officer since 1990; Director since 1984; Member of
Executive Committee and Dividend Committee; 2005-2007,
President.
|
||
Stephen
I. Chazen
|
63
|
President
since 2007; Chief Financial Officer since 1999; 2005-2007, Senior
Executive Vice President; 1994-2004, Executive Vice President, Corporate
Development.
|
||
Donald
P. de Brier
|
69
|
Executive
Vice President, General Counsel and Secretary since
1993.
|
||
James
M. Lienert
|
57
|
Executive
Vice President — Finance and Planning since 2006; 2004-2006, Vice
President; Occidental Chemical Corporation: 2004-2006, President;
2000-2002, Senior Vice President, Basic Chemicals; OxyVinyls:
2002-2004, Senior Vice President.
|
||
Martin
A. Cozyn
|
49
|
Executive
Vice President, Human Resources since 2008; Nortel Networks Corp.:
2005-2008, Vice President, Global Human Resources; 2002-2004, Vice
President, Global Operations HR & Talent Strategy.
|
||
William
E. Albrecht
|
58
|
Vice
President since 2008; Occidental Oil and Gas Corporation (OOGC): President
— Oxy Oil & Gas, USA since 2008; 2007-2008, Vice President, California
Operations; Noble Royalties, Inc.: 2006-2007, President of Acquisitions
and Divestitures; EOG Resources, Inc.: 1998-2006, Vice President of
Acquisitions and Engineering.
|
||
Edward
A. "Sandy" Lowe
|
58
|
Vice
President since 2009; OOGC: President — Oxy Oil & Gas, International
Production since 2009; 2008-2009, Executive Vice President — Oxy Oil &
Gas, International Production and Engineering; 2008, Executive Vice
President — Oxy Oil & Gas, Major Projects; Dolphin Energy Ltd.:
2002-2007, Executive Vice President and General
Manager.
|
||
Roy
Pineci
|
47
|
Vice
President, Controller and Principal Accounting Officer since 2008;
2007-2008, Senior Vice President, Finance — Oil and Gas; 2005-2007, Vice
President — Internal Audit; KPMG LLP: 2002-2005,
Partner.
|
||
Robert
J. Williams
|
50
|
Vice
President and Treasurer since 2009; Washington Mutual: 2005-2009, Senior
Vice President and Corporate Treasurer; Sun Trust Bank: 1985-2005, Senior
Vice President.
|
||
B.
Chuck Anderson
|
50
|
President
of Occidental Chemical Corporation since 2006; 2004-2006, Executive Vice
President — Chlorovinyls; 2002-2004, Senior Vice President — Basic
Chemicals; 2000-2002, President —
OxyVinyls.
|
Item 5 |
Market for
Registrant’s Common Equity, Related Stockholder
Matters and Issuer Purchases of Equity
Securities
|
a)
|
Number
of securities to be issued upon exercise of outstanding options, warrants
and rights
|
b)
|
Weighted-average
exercise price of outstanding options, warrants and rights
|
c)
|
Number
of securities remaining available for future issuance under equity
compensation plans (excluding securities in column (a))
|
||
2,412,576
|
$30.40
|
54,208,930
*
|
|||||
* Includes,
with respect to:
|
|
Ÿ
|
the
1995 Incentive Stock Plan, 5,602 shares reserved for issuance pursuant to
deferred stock unit awards;
|
Ÿ
|
the
2001 Incentive Compensation Plan, 11,931 shares reserved for issuance
pursuant to deferred stock unit awards and 1,197 shares reserved for
issuance as dividend equivalents on deferred stock unit awards;
and
|
Ÿ
|
the
2005 Long-Term Incentive Plan, 636,034 shares at maximum payout level
(318,017 at target level) reserved for issuance pursuant to outstanding
performance stock awards, 61,405 shares reserved for issuance pursuant to
restricted stock unit awards and 2,952,779 shares at maximum payout level
(1,700,390 at target level) reserved for issuance pursuant to total
stockholder return incentive awards.
|
Of
the 50,533,604 shares that are not reserved for issuance under the 2005
Long-Term Incentive Plan, approximately 43.2 million shares are available
for issuance after giving effect to the provision of the plan that each
award, other than options and stock appreciation rights, must be counted
against the number of shares available for issuance as three shares for
every one share covered by the award. Subject to this share
count requirement, not more than the approximate 43.2 million shares may
be issued or reserved for issuance for options, rights, warrants and other
forms of stock compensation.
|
Period
|
Total
Number
of
Shares
Purchased
(a)
|
Average
Price
Paid
per
Share
|
Total
Number of Shares Purchased as Part of Publicly Announced
Plans
or Programs
|
Maximum
Number of Shares that May Yet be Purchased Under the Plans or
Programs
|
|||||
First
Quarter 2009
|
142,625
|
$62.16
|
—
|
||||||
Second
Quarter 2009
|
—
|
—
|
—
|
||||||
Third
Quarter 2009
|
273,508
|
$74.47
|
—
|
||||||
October
1 - 31, 2009
|
129,501
|
$84.00
|
—
|
||||||
November
1 - 30, 2009
|
—
|
—
|
—
|
||||||
December
1 - 31, 2009
|
—
|
—
|
—
|
||||||
Fourth
Quarter 2009
|
129,501
|
$84.00
|
—
|
||||||
Total
2009
|
545,634
|
$73.51
|
—
|
27,155,575
|
(b)
|
(a)
|
Purchased
from the trustee of Occidental's defined contribution savings
plan.
|
(b)
|
Occidental
has had a 95 million share authorization in place since 2008 for its share
repurchase program; however, the program does not obligate Occidental to
acquire any specific number of shares and may be discontinued at any
time.
|
12/31/04
|
12/31/05
|
12/31/06
|
12/31/07
|
12/31/08
|
12/31/09
|
||
$100
|
$139
|
$173
|
$277
|
$220
|
$304
|
||
100
|
116
|
144
|
181
|
137
|
148
|
||
100
|
105
|
121
|
128
|
81
|
102
|
||
The
information provided in this Performance Graph shall not be deemed
"soliciting material" or "filed" with the Securities and Exchange
Commission or subject to Regulation 14A or 14C under the Securities
Exchange Act of 1934 (Exchange Act), other than as provided in Item 201 to
Regulation S-K under the Exchange Act, or subject to the liabilities of
Section 18 of the Exchange Act and shall not be deemed incorporated by
reference into any filing under the Securities Act of 1933 or the Exchange
Act except to the extent Occidental specifically requests that it be
treated as soliciting material or specifically incorporates it by
reference.
|
Item 6 | Selected Financial Data |
Five-Year Summary of Selected Financial Data
|
||||||||||||||||
Dollar
amounts in millions, except per-share amounts
|
||||||||||||||||
As
of and for the years ended December 31,
|
2009
|
2008
|
2007
|
2006
|
2005
|
|||||||||||
results
of operations (a)
|
||||||||||||||||
Net
sales
|
$
|
15,403
|
$
|
24,217
|
$
|
18,784
|
$
|
17,175
|
$
|
14,153
|
||||||
Income
from continuing operations (b)
|
$
|
2,927
|
$
|
6,839
|
$
|
5,078
|
$
|
4,202
|
$
|
4,838
|
||||||
Net
income attributable to common stock
|
$
|
2,915
|
$
|
6,857
|
$
|
5,400
|
$
|
4,191
|
$
|
5,293
|
||||||
Basic
earnings per common share from
|
||||||||||||||||
continuing
operations (c)
|
$
|
3.60
|
$
|
8.35
|
$
|
6.06
|
$
|
4.91
|
(d)
|
$
|
5.97
|
(d)
|
||||
Basic
earnings per common share (c)
|
$
|
3.59
|
$
|
8.37
|
$
|
6.45
|
$
|
4.90
|
(d)
|
$
|
6.53
|
(d)
|
||||
Diluted
earnings per common share (c)
|
$
|
3.58
|
$
|
8.34
|
$
|
6.42
|
$
|
4.86
|
(d)
|
$
|
6.45
|
(d)
|
||||
financial
position (a)
|
||||||||||||||||
Total
assets
|
$
|
44,229
|
$
|
41,537
|
$
|
36,519
|
$
|
32,431
|
$
|
26,170
|
||||||
Long-term
debt, net
|
$
|
2,557
|
$
|
2,049
|
$
|
1,741
|
$
|
2,619
|
$
|
2,873
|
||||||
Stockholders’
equity
|
$
|
29,159
|
$
|
27,325
|
$
|
22,858
|
$
|
19,604
|
$
|
15,442
|
||||||
market
capitalization (e)
|
$
|
66,050
|
$
|
48,607
|
$
|
63,573
|
$
|
41,013
|
$
|
32,121
|
||||||
cash
flow
|
||||||||||||||||
Cash
provided by operating activities
|
$
|
5,813
|
$
|
10,652
|
$
|
6,798
|
$
|
6,353
|
$
|
5,337
|
||||||
Capital
expenditures
|
$
|
(3,581
|
)
|
$
|
(4,664
|
)
|
$
|
(3,360
|
)
|
$
|
(2,857
|
)
|
$
|
(2,200
|
)
|
|
Cash
(used) provided by all other investing activities, net
|
$
|
(1,746
|
)
|
$
|
(4,665
|
)
|
$
|
285
|
$
|
(1,433
|
)
|
$
|
(906
|
)
|
||
Cash
dividends paid
|
$
|
(1,063
|
)
|
$
|
(940
|
)
|
$
|
(765
|
)
|
$
|
(646
|
)
|
$
|
(483
|
)
|
|
Cash
(used) provided by all other financing activities, net
|
$
|
30
|
$
|
(570
|
)
|
$
|
(2,333
|
)
|
$
|
(2,266
|
)
|
$
|
(759
|
)
|
||
dividends
per common share
|
$
|
1.31
|
$
|
1.21
|
$
|
0.94
|
$
|
0.80
|
(d)
|
$
|
0.645
|
(d)
|
||||
weighted
average basic shares outstanding
(thousands)
|
811,305
|
817,635
|
834,932
|
852,550
|
(d)
|
806,600
|
(d)
|
(a)
|
See
the MD&A section of this report and the Notes to Consolidated
Financial Statements for information regarding acquisitions and
dispositions, discontinued operations and other items affecting
comparability.
|
|
(b)
|
Represent
amounts attributable to common stock after deducting noncontrolling
interest amounts of $51 million in 2009, $116 million in 2008, $75 million
in 2007, $111 million in 2006 and $74 million in 2005.
|
|
(c)
|
Represent
amounts attributable to common stock after deducting noncontrolling
interest amounts.
|
|
(d)
|
Amounts
have been adjusted to reflect a two-for-one stock split in the form of a
stock dividend to stockholders on August 1, 2006.
|
|
(e)
|
Market
capitalization is calculated by multiplying the year-end total shares of
common stock outstanding, net of shares held as treasury stock, by the
year-end closing
stock price.
|
Ø
|
Focus
on large, long-lived oil and gas
assets with long-term growth potential;
|
Ø
|
Maintain
financial discipline and a strong
balance sheet;
|
Ø
|
Manage
the chemical segment to provide cash
in excess of normal capital expenditures;
and
|
Ø
|
Manage
the midstream and marketing segment
to generate returns in excess of Occidental's cost of
capital.
|
Ø
|
Adding
commercial reserves through a combination of focused exploration and
development programs conducted in Occidental's core areas, which are the
United States, the Middle East/North Africa and Latin
America;
|
Ø
|
Pursuing
commercial opportunities in core areas to enhance the development
of mature fields with large volumes of remaining oil by applying
appropriate technology and advanced reservoir-management practices;
and
|
Ø
|
Maintaining
a disciplined approach to acquisitions and divestitures with an emphasis
on transactions at attractive
prices.
|
Ø
|
Total return to
stockholders;
|
Ø
|
Return
on equity (ROE);
|
Ø
|
Return
on capital employed (ROCE); and
|
Ø
|
Other
segment-specific measures such as per-unit profit, production cost, cash
flow, and finding and development cost, reserves replacement percentage
and others.
|
Annual
2009 (a)
|
Three-Year
Annual
Average
2007 - 2009 (b)
|
|||
ROE
|
10.3%
|
20.4%
|
||
ROCE
|
9.6%
|
18.8%
|
(a)
|
The
ROE and ROCE for 2009 were calculated by dividing Occidental's 2009 net
income attributable to common stock (taking into account cost of capital
for ROCE) by its average equity and capital employed, respectively, during
2009.
|
(b)
|
The
three-year average ROE and ROCE were calculated by dividing Occidental's
average net income attributable to common stock (taking into account cost
of capital for ROCE) over the three-year period 2007-2009 by its average
equity and capital employed, respectively, over the same
period.
|
Latin
America
1. Argentina
2. Bolivia
3. Colombia
|
In
millions of BOE
|
||||
Revisions
of previous estimates
|
58
|
|||
Improved
recovery
|
173
|
|||
Extensions
and discoveries
|
92
|
|||
Purchases
|
160
|
|||
Total
additions
|
483
|
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
net
sales (a)
|
||||||||||
Oil
and Gas
|
$
|
11,598
|
$
|
18,187
|
$
|
13,304
|
||||
Chemical
|
3,225
|
5,112
|
4,664
|
|||||||
Midstream,
Marketing and Other
|
1,016
|
1,598
|
1,388
|
|||||||
Eliminations
(a)
|
(436
|
)
|
(680
|
)
|
(572
|
)
|
||||
$
|
15,403
|
$
|
24,217
|
$
|
18,784
|
|||||
earnings
(loss)
|
||||||||||
Oil
and Gas (b,c)
|
$
|
4,735
|
$
|
10,651
|
$
|
7,957
|
||||
Chemical
(d)
|
389
|
669
|
601
|
|||||||
Midstream,
Marketing and Other
|
235
|
520
|
367
|
|||||||
5,359
|
11,840
|
8,925
|
||||||||
Unallocated
corporate items
|
||||||||||
Interest
expense, net (e)
|
(109
|
)
|
(26
|
)
|
(199
|
)
|
||||
Income
taxes (f)
|
(1,918
|
)
|
(4,629
|
)
|
(3,507
|
)
|
||||
Other
(g)
|
(405
|
)
|
(346
|
)
|
(141
|
)
|
||||
Income
from continuing operations (b)
|
2,927
|
6,839
|
5,078
|
|||||||
Discontinued
operations, net (h)
|
(12
|
)
|
18
|
322
|
||||||
Net
Income (b)
|
$
|
2,915
|
$
|
6,857
|
$
|
5,400
|
||||
Basic
Earnings per Common Share
|
$
|
3.59
|
$
|
8.37
|
$
|
6.45
|
(a)
|
Intersegment
sales are generally made at prices approximately equal to those that the
selling entity is able to obtain in third-party transactions and eliminate
upon consolidation.
|
|
(b)
|
Oil
and gas segment earnings, income from continuing operations and net income
represent amounts attributable to common stock after deducting
noncontrolling interest amounts of $51 million, $116 million and $75
million for 2009, 2008 and 2007, respectively.
|
|
(c)
|
The
2009 amount includes a $170 million fourth quarter pre-tax charge for
asset impairments of certain Argentine producing properties and an $8
million pre-tax charge for the termination of rig
contracts. The 2008 amount includes a $599 million pre-tax
charge for asset impairments, including undeveloped acreage in Argentina
and Yemen and domestic producing properties, and a $58 million pre-tax
charge for the termination of rig contracts. The 2007 amount
includes an after-tax gain of $412 million from the sale of Occidental's
interest in a Russian joint venture, an after-tax gain of $112 million
from certain litigation settlements, a pre-tax gain of $103 million from
the sale of exploration properties, a pre-tax gain of $35 million from the
sale of miscellaneous domestic oil and gas interests and a $74 million
pre-tax charge for exploration impairments.
|
|
(d)
|
The
2008 amount includes a pre-tax charge of $90 million for plant closure and
impairments.
|
|
(e)
|
The
2007 amount includes $167 million of interest charges to redeem or
purchase and retire various debt issues.
|
|
(f)
|
The
2009 and 2008 amount includes tax benefits of $87 million and $148 million
resulting from relinquishment of exploration properties,
respectively.
|
|
(g)
|
The
2009 amount includes a $40 million pre-tax charge related to severance and
a $15 million pre-tax charge for railcar leases. The 2007
amount includes a $326 million pre-tax gain from the sale of Occidental’s
remaining investment in Lyondell Chemical Company (Lyondell), a $47
million pre-tax charge for a plant closure and related environmental
remediation reserve and a $25 million pre-tax severance
charge.
|
|
(h)
|
In
June 2007, Occidental completed an exchange of oil and gas interests in
Horn Mountain with BP p.l.c. (BP) for oil and gas interests in the Permian
Basin and a gas processing plant in Texas. Occidental also sold
its oil and gas interests in Pakistan to BP. The 2007 amount
includes after-tax income of $326 million related to these transactions
and their operating results.
|
Dollars
in millions, except as indicated
|
||||||||||
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
Segment
Sales
|
$
|
11,598
|
$
|
18,187
|
$
|
13,304
|
||||
Segment
Earnings
|
$
|
4,735
|
$
|
10,651
|
$
|
7,957
|
Sales
Volumes per Day
|
2009
|
2008
|
2007
|
|||||||
United
States
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
California
|
93
|
89
|
89
|
|||||||
Permian
|
168
|
168
|
167
|
|||||||
Midcontinent
Gas
|
10
|
6
|
4
|
|||||||
Total
|
271
|
263
|
260
|
|||||||
Natural
gas (MMCF)
|
||||||||||
California
|
250
|
235
|
254
|
|||||||
Permian
|
199
|
181
|
186
|
|||||||
Midcontinent
Gas
|
186
|
171
|
153
|
|||||||
Total
|
635
|
587
|
593
|
|||||||
Latin
America
|
||||||||||
Crude
oil (MBBL)
|
||||||||||
Argentina
|
37
|
32
|
32
|
|||||||
Colombia
(a)
|
39
|
37
|
37
|
|||||||
Total
|
76
|
69
|
69
|
|||||||
Natural
gas (MMCF)
|
||||||||||
Argentina
|
30
|
21
|
22
|
|||||||
Bolivia
|
16
|
21
|
18
|
|||||||
Total
|
46
|
42
|
40
|
|||||||
Middle
East/North Africa
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
Oman
|
39
|
23
|
20
|
|||||||
Dolphin
|
21
|
21
|
4
|
|||||||
Qatar
|
48
|
47
|
48
|
|||||||
Yemen
|
29
|
23
|
27
|
|||||||
Libya
|
7
|
15
|
22
|
|||||||
Total
|
144
|
129
|
121
|
|||||||
Natural
gas (MMCF)
|
||||||||||
Oman
|
22
|
24
|
30
|
|||||||
Dolphin
|
213
|
184
|
51
|
|||||||
Bahrain
|
10
|
―
|
―
|
|||||||
Total
|
245
|
208
|
81
|
|||||||
Total
Sales Volumes (MBOE) (b)
|
645
|
601
|
570
|
Production
per Day
|
2009
|
2008
|
2007
|
|||||||
United
States
|
||||||||||
Oil
and liquids (MBBL)
|
271
|
263
|
260
|
|||||||
Natural
gas (MMCF)
|
635
|
587
|
593
|
|||||||
Latin
America
|
||||||||||
Crude
oil (MBBL)
|
||||||||||
Argentina
|
36
|
34
|
33
|
|||||||
Colombia
(a)
|
39
|
38
|
36
|
|||||||
Total
|
75
|
72
|
69
|
|||||||
Natural
gas (MMCF)
|
46
|
42
|
40
|
|||||||
Middle
East/North Africa
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
Oman
|
39
|
23
|
19
|
|||||||
Dolphin
|
22
|
20
|
5
|
|||||||
Qatar
|
48
|
47
|
47
|
|||||||
Yemen
|
28
|
23
|
27
|
|||||||
Libya
|
6
|
15
|
21
|
|||||||
Total
|
143
|
128
|
119
|
|||||||
Natural
gas (MMCF)
|
245
|
208
|
81
|
|||||||
Total
Production (MBOE) (b)
|
643
|
603
|
567
|
2009
|
2008
|
2007
|
||||||||
Average
Sales Prices
|
||||||||||
Crude Oil
Prices ($ per
bbl)
|
||||||||||
United
States
|
$
|
56.74
|
$
|
91.16
|
$
|
65.67
|
||||
Latin
America
|
$
|
49.43
|
$
|
70.53
|
$
|
56.66
|
||||
Middle
East/North Africa
|
$
|
58.75
|
$
|
94.70
|
$
|
69.24
|
||||
Total
worldwide
|
$
|
55.97
|
$
|
88.26
|
$
|
64.77
|
||||
Gas
Prices ($ per
Mcf)
|
||||||||||
United
States
|
$
|
3.46
|
$
|
8.03
|
$
|
6.53
|
||||
Latin
America
|
$
|
3.01
|
$
|
4.43
|
$
|
2.66
|
||||
Total
worldwide
|
$
|
2.79
|
$
|
6.10
|
$
|
5.68
|
||||
Expensed
Exploration (c)
|
$
|
267
|
$
|
327
|
$
|
364
|
||||
Capital
Expenditures
|
||||||||||
Development
|
$
|
2,586
|
$
|
3,563
|
$
|
2,676
|
||||
Exploration
|
$
|
153
|
$
|
258
|
$
|
156
|
||||
Other
|
$
|
45
|
$
|
24
|
$
|
33
|
(a)
|
Excludes
sales and production volumes related to the noncontrolling interest in a
Colombian subsidiary.
|
|
(b)
|
Natural
gas volumes have been converted to BOE based on energy content of
six Mcf of gas to one barrel of oil.
|
|
(c)
|
Includes
dry hole write-offs and lease impairments of $212 million in 2009, $325
million in 2008 and $247 million in 2007.
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Segment
Sales
|
$
|
3,225
|
$
|
5,112
|
$
|
4,664
|
||||
Segment
Earnings
|
$
|
389
|
$
|
669
|
$
|
601
|
||||
Capital
Expenditures
|
$
|
205
|
$
|
240
|
$
|
245
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Segment
Sales
|
$
|
1,016
|
$
|
1,598
|
$
|
1,388
|
||||
Segment
Earnings
|
$
|
235
|
$
|
520
|
$
|
367
|
||||
Capital
Expenditures
|
$
|
554
|
$
|
492
|
$
|
243
|
Benefit
(Charge) (in
millions)
|
2009
|
2008
|
2007
|
|||||||
oil
and gas
|
||||||||||
Asset
impairments
|
$
|
(170
|
)
|
$
|
(599
|
)
|
$
|
(74
|
)
|
|
Rig
contract terminations
|
(8
|
)
|
(58
|
)
|
—
|
|||||
Gain
on sale of a Russian joint venture (a)
|
—
|
—
|
412
|
|||||||
Legal
settlements (a)
|
—
|
—
|
112
|
|||||||
Gain
on sale of exploration properties
|
—
|
—
|
103
|
|||||||
Gain
on sale of oil and gas interests
|
—
|
—
|
35
|
|||||||
Total
Oil and Gas
|
$
|
(178
|
)
|
$
|
(657
|
)
|
$
|
588
|
||
chemical
|
||||||||||
Plant
closure and impairments
|
$
|
—
|
$
|
(90
|
)
|
$
|
—
|
|||
Total
Chemical
|
$
|
—
|
$
|
(90
|
)
|
$
|
—
|
|||
midstream,
marketing and other
|
||||||||||
No
significant items affecting earnings
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
Total
Midstream, Marketing and Other
|
$
|
—
|
$
|
—
|
$
|
—
|
||||
corporate
|
||||||||||
Gain
on sale of Lyondell shares
|
$
|
—
|
$
|
—
|
$
|
326
|
||||
Debt
purchase expense
|
—
|
—
|
(167
|
)
|
||||||
Facility
closure
|
—
|
—
|
(47
|
)
|
||||||
Severance
charge
|
(40
|
)
|
—
|
(25
|
)
|
|||||
Railcar
leases
|
(15
|
)
|
—
|
—
|
||||||
Tax
effect of pre-tax adjustments
|
77
|
238
|
(2
|
)
|
||||||
Discontinued
operations, net of tax
|
(12
|
)
|
18
|
322
|
||||||
Total
Corporate
|
$
|
10
|
$
|
256
|
$
|
407
|
(a)
|
Amounts
shown after tax.
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
EARNINGS
|
||||||||||
Oil
and Gas
|
$
|
4,735
|
$
|
10,651
|
$
|
7,957
|
||||
Chemical
|
389
|
669
|
601
|
|||||||
Midstream,
Marketing and Other
|
235
|
520
|
367
|
|||||||
Unallocated
Corporate Items
|
(514
|
)
|
(372
|
)
|
(340
|
)
|
||||
Pre-tax
income
|
4,845
|
11,468
|
8,585
|
|||||||
Income
tax expense
|
||||||||||
Federal
and State
|
686
|
2,188
|
1,558
|
|||||||
Foreign
|
1,232
|
2,441
|
1,949
|
|||||||
Total
|
1,918
|
4,629
|
3,507
|
|||||||
Income
from continuing operations
|
$
|
2,927
|
$
|
6,839
|
$
|
5,078
|
||||
Worldwide
effective tax rate
|
40%
|
40%
|
41%
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Net
sales
|
$
|
15,403
|
$
|
24,217
|
$
|
18,784
|
||||
Interest,
dividends and other income
|
$
|
118
|
$
|
236
|
$
|
355
|
||||
Gains
on disposition of assets, net
|
$
|
10
|
$
|
27
|
$
|
874
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Cost
of sales (a)
|
$
|
5,360
|
$
|
7,423
|
$
|
6,454
|
||||
Selling,
general and administrative and other operating expenses
|
$
|
1,350
|
$
|
1,257
|
$
|
1,320
|
||||
Depreciation,
depletion and amortization
|
$
|
3,117
|
$
|
2,710
|
$
|
2,379
|
||||
Taxes
other than on income
|
$
|
433
|
$
|
588
|
$
|
414
|
||||
Exploration
expense
|
$
|
267
|
$
|
327
|
$
|
364
|
||||
Charges
for impairments
|
$
|
170
|
$
|
647
|
$
|
58
|
||||
Interest
and debt expense, net
|
$
|
140
|
$
|
129
|
$
|
339
|
(a)
|
Excludes
DD&A of $3,067 million in 2009, $2,664 million in 2008 and
$2,338
million in 2007.
|
(Income)/expense (in
millions)
|
2009
|
2008
|
2007
|
|||||||
Provision
for income taxes
|
$
|
1,918
|
$
|
4,629
|
$
|
3,507
|
||||
Income
from equity investments
|
$
|
(227
|
)
|
$
|
(213
|
)
|
$
|
(82
|
)
|
|
Discontinued
operations, net
|
$
|
(12
|
)
|
$
|
18
|
$
|
322
|
|||
Net
income attributable to noncontrolling interest
|
$
|
(51
|
)
|
$
|
(116
|
)
|
$
|
(75
|
)
|
In
millions
|
2009
|
2008
|
|||||
CURRENT
ASSETS
|
|||||||
Cash
and cash equivalents
|
$
|
1,230
|
$
|
1,777
|
|||
Trade
receivables, net
|
4,142
|
3,117
|
|||||
Marketing
and trading assets and other
|
1,203
|
1,012
|
|||||
Inventories
|
1,081
|
958
|
|||||
Prepaid
expenses and other
|
430
|
308
|
|||||
Total
current assets
|
$
|
8,086
|
$
|
7,172
|
|||
Investments
in unconsolidated entities
|
$
|
1,732
|
$
|
1,263
|
|||
Property,
plant and equipment, net
|
$
|
33,645
|
$
|
32,266
|
|||
Long-term
receivables and other assets, net
|
$
|
766
|
$
|
836
|
|||
CURRENT
LIABILITIES
|
|||||||
Current
maturities of long-term debt
|
$
|
239
|
$
|
698
|
|||
Accounts
payable
|
3,379
|
3,306
|
|||||
Accrued
liabilities
|
2,341
|
1,861
|
|||||
Domestic
and foreign income taxes
|
28
|
158
|
|||||
Liabilities
of discontinued operations
|
105
|
111
|
|||||
Total
current liabilities
|
$
|
6,092
|
$
|
6,134
|
|||
Long-term
debt, net
|
$
|
2,557
|
$
|
2,049
|
|||
Deferred
credits and other liabilities-income taxes
|
$
|
3,125
|
$
|
2,660
|
|||
Deferred
credits and other liabilities-other
|
$
|
3,160
|
$
|
3,217
|
|||
Long-term
liabilities of discontinued operations
|
$
|
136
|
$
|
152
|
|||
Stockholders’
equity
|
$
|
29,159
|
$
|
27,325
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Capital
expenditures
|
||||||||||
Oil
and Gas
|
$
|
(2,784
|
)
|
$
|
(3,845
|
)
|
$
|
(2,865
|
)
|
|
Chemical
|
(205
|
)
|
(240
|
)
|
(245
|
)
|
||||
Midstream
and Marketing
|
(554
|
)
|
(492
|
)
|
(243
|
)
|
||||
Corporate
|
(38
|
)
|
(87
|
)
|
(7
|
)
|
||||
Total
|
(3,581
|
)
|
(4,664
|
)
|
(3,360
|
)
|
||||
Other
investing activities, net
|
(1,746
|
)
|
(4,665
|
)
|
285
|
|||||
Net
cash used by investing activities
|
$
|
(5,327
|
)
|
$
|
(9,329
|
)
|
$
|
(3,075
|
)
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Net
cash used by financing activities
|
$
|
(1,033
|
)
|
$
|
(1,510
|
)
|
$
|
(3,098
|
)
|
Payments
Due by Year
|
||||||||||||||||
Contractual
Obligations (in
millions)
|
Total
|
2010
|
2011
and
2012
|
2013
and
2014
|
2015
and
thereafter
|
|||||||||||
Consolidated
Balance Sheet
|
||||||||||||||||
Long-term
debt (Note 5) (a)
|
$
|
2,808
|
$
|
239
|
$
|
436
|
$
|
1,000
|
$
|
1,133
|
||||||
Capital
leases (Note 6)
|
26
|
—
|
—
|
—
|
26
|
|||||||||||
Other
long-term liabilities (b)
|
1,835
|
119
|
547
|
263
|
906
|
|||||||||||
Other
Obligations
|
||||||||||||||||
Operating
leases (Note 6) (c)
|
1,132
|
157
|
213
|
132
|
630
|
|||||||||||
Purchase
obligations (d,
e)
|
3,830
|
708
|
1,191
|
565
|
1,366
|
|||||||||||
Total
|
$
|
9,631
|
$
|
1,223
|
$
|
2,387
|
$
|
1,960
|
$
|
4,061
|
(a)
|
Excludes
unamortized debt discount and interest expense on the debt. As
of December 31, 2009, interest on long-term debt totaling $944 million is
payable in the following years (in millions): 2010 - $157, 2011 and 2012 -
$285, 2013 and 2014 - $177, 2015 and thereafter - $325.
|
|
(b)
|
Includes
certain accrued liabilities and obligations under postretirement benefit
and deferred compensation plans.
|
|
(c)
|
Amounts
have not been reduced for sublease rental income.
|
|
(d)
|
Amounts
represent long-term agreements to purchase goods and services used in the
normal course of business that are enforceable and legally
binding. Some of these arrangements involve take-or-pay
commitments but they do not represent debt
obligations. Long-term purchase contracts are discounted at a
5.9-percent discount rate.
|
|
(e)
|
Amounts
exclude certain oil purchase obligations related to the marketing and
trading activities for which there are no minimum amounts.
|
$ amounts in
millions
|
2009
|
2008
|
2007
|
|||||||||||||
#
of
Sites
|
Reserve
Balance
|
# of
Sites
|
Reserve
Balance
|
# of
Sites
|
Reserve
Balance
|
|||||||||||
NPL
sites
|
39
|
$
|
57
|
40
|
$
|
60
|
39
|
$
|
81
|
|||||||
Third-party
sites
|
81
|
104
|
76
|
117
|
79
|
124
|
||||||||||
Occidental-operated
sites
|
19
|
126
|
19
|
127
|
18
|
121
|
||||||||||
Closed
or non-operated Occidental sites
|
29
|
116
|
31
|
135
|
27
|
131
|
||||||||||
Total
|
168
|
$
|
403
|
166
|
$
|
439
|
163
|
$
|
457
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Balance
- Beginning of Year
|
$
|
439
|
$
|
457
|
$
|
412
|
||||
Remediation
expenses and interest accretion
|
26
|
29
|
108
|
|||||||
Changes
from acquisitions/dispositions
|
4
|
25
|
5
|
|||||||
Payments
|
(66
|
)
|
(72
|
)
|
(68
|
)
|
||||
Balance
- End of Year
|
$
|
403
|
$
|
439
|
$
|
457
|
2009
|
2008
|
2007
|
||||||||
Operating
Expenses
|
||||||||||
Oil
and Gas
|
$
|
123
|
$
|
127
|
$
|
99
|
||||
Chemical
|
67
|
85
|
80
|
|||||||
Midstream
and Marketing
|
14
|
20
|
9
|
|||||||
$
|
204
|
$
|
232
|
$
|
188
|
|||||
Capital
Expenditures
|
||||||||||
Oil
and Gas
|
$
|
83
|
$
|
104
|
$
|
55
|
||||
Chemical
|
15
|
18
|
14
|
|||||||
Midstream
and Marketing
|
4
|
6
|
4
|
|||||||
$
|
102
|
$
|
128
|
$
|
73
|
|||||
Remediation
Expenses
|
||||||||||
Corporate
|
$
|
25
|
$
|
28
|
$
|
107
|
Assets/(liabilities) (in
millions)
|
2009
|
2008
|
|||||
Fair
value of contracts outstanding at beginning of year
|
$
|
(139
|
)
|
$
|
(576
|
)
|
|
(Gains)
losses on contracts realized or otherwise settled during the
year
|
(46
|
)
|
101
|
||||
Gains
(losses) or other changes in fair value (a)
|
(144
|
)
|
336
|
||||
Fair
value of Phibro contracts acquired on December 31, 2009
|
(10
|
)
|
—
|
||||
Fair
value of contracts outstanding at end of year
|
$
|
(339
|
)
|
$
|
(139
|
)
|
(a)
|
Primarily
relates to price changes on existing cash-flow hedges.
|
Maturity
Periods
|
||||||||||||||||
Source
of Fair Value
Assets/(liabilities)
(in
millions)
|
2010
|
2011
and
2012
|
2013
and
2014
|
2015
and
thereafter
|
Total
|
|||||||||||
Prices
actively quoted
|
$
|
(25
|
)
|
$
|
11
|
$
|
(15
|
)
|
$
|
(4
|
)
|
$
|
(33
|
)
|
||
Prices
provided by other external sources
|
(138
|
)
|
(171
|
)
|
2
|
1
|
(306
|
)
|
||||||||
Total
|
$
|
(163
|
)
|
$
|
(160
|
)
|
$
|
(13
|
)
|
$
|
(3
|
)
|
$
|
(339
|
)
|
Crude
Oil – Collars
|
|||||||
Daily
Volume (barrels)
|
Average
Floor
|
Average
Cap
|
|||||
2010
|
12,000
|
$33.00
|
$46.35
|
||||
2011
|
12,000
|
$32.92
|
$46.27
|
Natural
Gas - Swaps
|
|||||
Daily
Volume
|
Average
Strike Price
|
||||
January
2010 ―
December 2010
|
40
million cubic feet
|
$5.03
|
|||
December 2010
― March
2012
|
50
million cubic feet
|
$6.07
|
Year
of Maturity
(in
millions of U.S. dollars, except rates)
|
U.S.
Dollar
Fixed-Rate
Debt
|
U.S.
Dollar
Variable-Rate
Debt
|
Grand
Total (a)
|
|||||||
2010
|
$
|
239
|
$
|
—
|
$
|
239
|
||||
2011
|
—
|
68
|
68
|
|||||||
2012
|
368
|
—
|
368
|
|||||||
2013
|
1,000
|
—
|
1,000
|
|||||||
2014
|
—
|
—
|
—
|
|||||||
Thereafter
|
1,086
|
47
|
1,133
|
|||||||
Total
|
$
|
2,693
|
$
|
115
|
$
|
2,808
|
||||
Average
interest rate
|
6.13%
|
0.29%
|
5.89%
|
|||||||
Fair
Value
|
$
|
2,978
|
$
|
115
|
$
|
3,093
|
(a)
|
Excludes
unamortized net discounts of $12 million.
|
Item 8
|
Financial Statements and Supplementary
Data
|
Consolidated Statements of Income
|
Occidental
Petroleum Corporation
|
|
In
millions, except per-share amounts
|
and
Subsidiaries
|
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
revenues
and other income
|
||||||||||
Net
sales
|
$
|
15,403
|
$
|
24,217
|
$
|
18,784
|
||||
Interest,
dividends and other income
|
118
|
236
|
355
|
|||||||
Gains
on disposition of assets, net
|
10
|
27
|
874
|
|||||||
15,531
|
24,480
|
20,013
|
||||||||
costs
and other deductions
|
||||||||||
Cost
of sales (excludes depreciation, depletion and amortization
of
|
||||||||||
$3,067
in 2009, $2,664 in 2008 and $2,338 in 2007)
|
5,360
|
7,423
|
6,454
|
|||||||
Selling,
general and administrative and other operating expenses
|
1,350
|
1,257
|
1,320
|
|||||||
Depreciation,
depletion and amortization
|
3,117
|
2,710
|
2,379
|
|||||||
Taxes
other than on income
|
433
|
588
|
414
|
|||||||
Environmental
remediation
|
25
|
28
|
107
|
|||||||
Exploration
expense
|
267
|
327
|
364
|
|||||||
Charges
for impairments
|
170
|
647
|
58
|
|||||||
Interest
and debt expense, net
|
140
|
129
|
339
|
|||||||
10,862
|
13,109
|
11,435
|
||||||||
income
before income taxes and other items
|
4,669
|
11,371
|
8,578
|
|||||||
Provision
for domestic and foreign income taxes
|
1,918
|
4,629
|
3,507
|
|||||||
Income
from equity investments
|
(227
|
)
|
(213
|
)
|
(82
|
)
|
||||
income
from continuing operations
|
2,978
|
6,955
|
5,153
|
|||||||
Discontinued
operations, net
|
(12
|
)
|
18
|
322
|
||||||
net
income
|
2,966
|
6,973
|
5,475
|
|||||||
Less:
Net income attributable to noncontrolling interest
|
(51
|
)
|
(116
|
)
|
(75
|
)
|
||||
net
income attributable to common stock
|
$
|
2,915
|
$
|
6,857
|
$
|
5,400
|
||||
basic
earnings per common share (attributable to common
stock)
|
||||||||||
Income
from continuing operations
|
$
|
3.60
|
$
|
8.35
|
$
|
6.06
|
||||
Discontinued
operations, net
|
(0.01
|
)
|
0.02
|
0.39
|
||||||
basic
earnings per common share
|
$
|
3.59
|
$
|
8.37
|
$
|
6.45
|
||||
diluted
earnings per common share (attributable to common
stock)
|
||||||||||
Income
from continuing operations
|
$
|
3.59
|
$
|
8.32
|
$
|
6.03
|
||||
Discontinued
operations, net
|
(0.01
|
)
|
0.02
|
0.39
|
||||||
diluted
earnings per common share
|
$
|
3.58
|
$
|
8.34
|
$
|
6.42
|
||||
dividends
per common share
|
$
|
1.31
|
$
|
1.21
|
$
|
0.94
|
||||
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Consolidated Balance Sheets
|
Occidental
Petroleum Corporation
|
|
In
millions
|
and
Subsidiaries
|
Assets
at December 31,
|
2009
|
2008
|
|||||
current
assets
|
|||||||
Cash
and cash equivalents
|
$
|
1,230
|
$
|
1,777
|
|||
Trade
receivables, net of reserves of $30 in 2009 and $45 in
2008
|
4,142
|
3,117
|
|||||
Marketing
and trading assets and other
|
1,203
|
1,012
|
|||||
Inventories
|
1,081
|
958
|
|||||
Prepaid
expenses and other
|
430
|
308
|
|||||
Total
current assets
|
8,086
|
7,172
|
|||||
investments
in unconsolidated entities
|
1,732
|
1,263
|
|||||
property,
plant and equipment
|
|||||||
Oil
and gas segment
|
43,692
|
40,091
|
|||||
Chemical
segment
|
5,298
|
5,090
|
|||||
Midstream,
marketing and other segment
|
3,056
|
2,445
|
|||||
Corporate
|
1,085
|
1,102
|
|||||
53,131
|
48,728
|
||||||
Accumulated
depreciation, depletion and amortization
|
(19,486
|
)
|
(16,462
|
)
|
|||
33,645
|
32,266
|
||||||
long-term
receivables and other assets, net
|
766
|
836
|
|||||
TOTAL
ASSETS
|
$
|
44,229
|
$
|
41,537
|
Consolidated Balance Sheets
|
Occidental
Petroleum Corporation
|
|
In
millions, except share and per-share amounts
|
and
Subsidiaries
|
Liabilities
and Stockholders’ Equity at December 31,
|
2009
|
2008
|
|||||
current
liabilities
|
|||||||
Current
maturities of long-term debt
|
$
|
239
|
$
|
698
|
|||
Accounts
payable
|
3,379
|
3,306
|
|||||
Accrued
liabilities
|
2,341
|
1,861
|
|||||
Domestic
and foreign income taxes
|
28
|
158
|
|||||
Liabilities
of discontinued operations
|
105
|
111
|
|||||
Total
current liabilities
|
6,092
|
6,134
|
|||||
long-term
debt, net
|
2,557
|
2,049
|
|||||
deferred
credits and other liabilities
|
|||||||
Deferred
and other domestic and foreign income taxes
|
3,125
|
2,660
|
|||||
Long-term
liabilities of discontinued operations
|
136
|
152
|
|||||
Other
|
3,160
|
3,217
|
|||||
6,421
|
6,029
|
||||||
contingent
liabilities and commitments
|
|||||||
stockholders’
equity
|
|||||||
Common
stock, $0.20 par value, authorized 1.1 billion shares, outstanding
shares:
|
177
|
176
|
|||||
2009
— 883,642,957 and 2008 — 881,423,225
|
|||||||
Treasury
stock: 2009 — 71,721,221 shares and 2008 — 71,176,487
shares
|
(4,161
|
)
|
(4,121
|
)
|
|||
Additional
paid-in capital
|
7,127
|
7,113
|
|||||
Retained
earnings
|
26,534
|
24,684
|
|||||
Accumulated
other comprehensive loss
|
(596
|
)
|
(552
|
)
|
|||
Noncontrolling
interest
|
78
|
25
|
|||||
29,159
|
27,325
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
|
$
|
44,229
|
$
|
41,537
|
Consolidated Statements of Stockholders'
Equity
|
Occidental
Petroleum Corporation
|
|
In
millions
|
and
Subsidiaries
|
Accumulated
|
|||||||||||||||||||
Additional
|
Other
|
||||||||||||||||||
Common
|
Treasury
|
Paid-in
|
Retained
|
Comprehensive
|
Noncontrolling
|
||||||||||||||
Stock
|
Stock
|
Capital
|
Earnings
|
Income
(Loss)
|
Interest
|
||||||||||||||
Balance,
December 31, 2006
|
$
|
174
|
$
|
(1,481
|
)
|
$
|
6,905
|
$
|
13,987
|
$
|
(333
|
)
|
$
|
352
|
|||||
Net
income
|
—
|
—
|
—
|
5,400
|
(a)
|
—
|
75
|
||||||||||||
Uncertain
tax positions adjustment
|
—
|
—
|
—
|
219
|
—
|
—
|
|||||||||||||
Other
comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
(299
|
)
|
—
|
||||||||||||
Dividends
on common stock
|
—
|
—
|
—
|
(787
|
)
|
—
|
(59
|
)
|
|||||||||||
Issuance
of common stock and other, net
|
1
|
—
|
166
|
—
|
—
|
—
|
|||||||||||||
Purchases
of noncontrolling interest
|
—
|
—
|
—
|
—
|
—
|
(333
|
)
|
||||||||||||
Purchases
of treasury stock
|
—
|
(1,129
|
)
|
—
|
—
|
—
|
—
|
||||||||||||
Balance,
December 31, 2007
|
$
|
175
|
$
|
(2,610
|
)
|
$
|
7,071
|
$
|
18,819
|
$
|
(632
|
)
|
$
|
35
|
|||||
Net
income
|
—
|
—
|
—
|
6,857
|
(a)
|
—
|
116
|
||||||||||||
Other
comprehensive income, net of tax
|
—
|
—
|
—
|
—
|
80
|
—
|
|||||||||||||
Dividends
on common stock
|
—
|
—
|
—
|
(992
|
)
|
—
|
(126
|
)
|
|||||||||||
Issuance
of common stock and other, net
|
1
|
—
|
42
|
—
|
—
|
—
|
|||||||||||||
Purchases
of treasury stock
|
—
|
(1,511
|
)
|
—
|
—
|
—
|
—
|
||||||||||||
Balance,
December 31, 2008
|
$
|
176
|
$
|
(4,121
|
)
|
$
|
7,113
|
$
|
24,684
|
$
|
(552
|
)
|
$
|
25
|
|||||
Net
income
|
—
|
—
|
—
|
2,915
|
(a)
|
—
|
51
|
||||||||||||
Other
comprehensive loss, net of tax
|
—
|
—
|
—
|
—
|
(44
|
)
|
—
|
||||||||||||
Dividends
on common stock
|
—
|
—
|
—
|
(1,065
|
)
|
—
|
(16
|
)
|
|||||||||||
Issuance
of common stock and other, net
|
1
|
—
|
14
|
—
|
—
|
18
|
|||||||||||||
Purchases
of treasury stock
|
—
|
(40
|
)
|
—
|
—
|
—
|
—
|
||||||||||||
Balance,
December 31, 2009
|
$
|
177
|
$
|
(4,161
|
)
|
$
|
7,127
|
$
|
26,534
|
$
|
(596
|
)
|
$
|
78
|
(a)
|
Represent
amounts attributable to common stock after deducting noncontrolling
interest amounts.
|
Consolidated Statements of Comprehensive
Income
|
|
In
millions
|
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
Net
income attributable to common stock
|
$
|
2,915
|
$
|
6,857
|
$
|
5,400
|
||||
Other
comprehensive income (loss) items:
|
||||||||||
Foreign
currency translation adjustments (a)
|
32
|
(24
|
)
|
14
|
||||||
Unrealized
gains (losses) on derivatives (b)
|
(93
|
)
|
207
|
(243
|
)
|
|||||
Pension
and postretirement adjustments (c)
|
1
|
(184
|
)
|
(13
|
)
|
|||||
Reclassification
of realized losses (gains) on derivatives and securities (d)
|
13
|
68
|
(156
|
)
|
||||||
Unrealized
gains on securities (e)
|
3
|
13
|
99
|
|||||||
Other
comprehensive income (loss), net of tax (f)
|
(44
|
)
|
80
|
(299
|
)
|
|||||
Comprehensive
income attributable to common stock
|
$
|
2,871
|
$
|
6,937
|
$
|
5,101
|
(a)
|
Net
of tax of $0 in all three years.
|
|
(b)
|
Net
of tax of $53, ($118) and $139 in 2009, 2008 and 2007,
respectively.
|
|
(c)
|
Net
of tax of $0, $110 and $8 in 2009, 2008 and 2007,
respectively.
|
|
(d)
|
Net
of tax of ($7), ($39) and $89 in 2009, 2008 and 2007,
respectively. 2007 amount represents the recognition of the
gain on the sale of the remaining Lyondell Chemical Company (Lyondell)
shares.
|
|
(e)
|
Net
of tax of ($1), ($7) and ($56) in 2009, 2008 and 2007,
respectively.
|
|
(f)
|
There
were no other comprehensive income (loss) items related to noncontrolling
interests in 2009, 2008 and 2007.
|
|
The
accompanying notes are an integral part of these consolidated financial
statements.
|
Consolidated Statements of Cash Flows
|
Occidental
Petroleum Corporation
|
|
In
millions
|
and
Subsidiaries
|
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
cash
flow from operating activities
|
||||||||||
Net
income
|
$
|
2,966
|
$
|
6,973
|
$
|
5,475
|
||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||
Discontinued
operations, net
|
12
|
(18
|
)
|
(322
|
)
|
|||||
Depreciation,
depletion and amortization of assets
|
3,117
|
2,710
|
2,379
|
|||||||
Deferred
income tax provision
|
507
|
268
|
35
|
|||||||
Other
noncash charges to income
|
638
|
1,071
|
870
|
|||||||
Gains
on disposition of assets, net
|
(10
|
)
|
(27
|
)
|
(874
|
)
|
||||
Income
from equity investments
|
(227
|
)
|
(213
|
)
|
(82
|
)
|
||||
Dry
hole and impairment expense
|
212
|
244
|
189
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
Decrease
(increase) in receivables
|
(602
|
)
|
1,518
|
(2,219
|
)
|
|||||
Increase
in inventories
|
(107
|
)
|
(64
|
)
|
(71
|
)
|
||||
Decrease
(increase) in prepaid expenses and other assets
|
(77
|
)
|
6
|
(96
|
)
|
|||||
(Decrease)
increase in accounts payable and accrued liabilities
|
(403
|
)
|
(1,342
|
)
|
1,807
|
|||||
Increase
(decrease) in current domestic and foreign income taxes
|
12
|
(222
|
)
|
(73
|
)
|
|||||
Other
operating, net
|
(182
|
)
|
(275
|
)
|
(358
|
)
|
||||
Operating
cash flow from continuing operations
|
5,856
|
10,629
|
6,660
|
|||||||
Operating
cash flow from discontinued operations, net of taxes
|
(43
|
)
|
23
|
138
|
||||||
Net
cash provided by operating activities
|
5,813
|
10,652
|
6,798
|
|||||||
cash
flow from investing activities
|
||||||||||
Capital
expenditures
|
(3,581
|
)
|
(4,664
|
)
|
(3,360
|
)
|
||||
Sales
of assets, net
|
51
|
27
|
509
|
|||||||
Purchases
of assets, net
|
(1,782
|
)
|
(4,701
|
)
|
(1,522
|
)
|
||||
Purchases
of short-term investments
|
—
|
—
|
(10
|
)
|
||||||
Sales
of short-term investments
|
—
|
—
|
250
|
|||||||
Sales
of equity investments and available-for-sale investments
|
—
|
51
|
1,157
|
|||||||
Equity
investments and other, net
|
(15
|
)
|
(42
|
)
|
(88
|
)
|
||||
Investing
cash flow from continuing operations
|
(5,327
|
)
|
(9,329
|
)
|
(3,064
|
)
|
||||
Investing
cash flow from discontinued operations
|
—
|
—
|
(11
|
)
|
||||||
Net
cash used by investing activities
|
(5,327
|
)
|
(9,329
|
)
|
(3,075
|
)
|
||||
cash
flow from financing activities
|
||||||||||
Proceeds
from long-term debt
|
740
|
1,043
|
127
|
|||||||
Payments
of long-term debt
|
(699
|
)
|
(96
|
)
|
(1,291
|
)
|
||||
Proceeds
from issuance of common stock
|
18
|
32
|
17
|
|||||||
Purchases
of treasury stock
|
(40
|
)
|
(1,511
|
)
|
(1,129
|
)
|
||||
Redemption
of preferred stock
|
—
|
—
|
(75
|
)
|
||||||
Cash
dividends paid
|
(1,063
|
)
|
(940
|
)
|
(765
|
)
|
||||
Excess
share-based tax benefits and other
|
27
|
90
|
71
|
|||||||
Distributions
to noncontrolling interest
|
(16
|
)
|
(128
|
)
|
(53
|
)
|
||||
Net
cash used by financing activities
|
(1,033
|
)
|
(1,510
|
)
|
(3,098
|
)
|
||||
(Decrease)
increase in cash and cash equivalents
|
(547
|
)
|
(187
|
)
|
625
|
|||||
Cash
and cash equivalents — beginning of year
|
1,777
|
1,964
|
1,339
|
|||||||
Cash
and cash equivalents — end of year
|
$
|
1,230
|
$
|
1,777
|
$
|
1,964
|
Notes to Consolidated Financial Statements
|
Occidental
Petroleum Corporation
|
and
Subsidiaries
|
Note 1
|
Summary of Significant Accounting
Policies
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Balance
— Beginning of
Year
|
$
|
68
|
$
|
17
|
$
|
46
|
||||
Additions
to capitalized exploratory well costs pending the determination of proved
reserves
|
42
|
69
|
18
|
|||||||
Reclassifications
to property, plant and equipment based on the determination of proved
reserves
|
(11
|
)
|
(3
|
)
|
(5
|
)
|
||||
Capitalized
exploratory well costs charged to expense
|
(57
|
)
|
(15
|
)
|
(42
|
)
|
||||
Balance
— End of Year
|
$
|
42
|
$
|
68
|
$
|
17
|
For
the years ended December 31, (in millions)
|
2009
|
2008
|
|||||
Beginning
balance
|
$
|
521
|
$
|
471
|
|||
Liabilities
incurred
|
84
|
38
|
|||||
Liabilities
settled
|
(28
|
)
|
(30
|
)
|
|||
Accretion
expense
|
36
|
30
|
|||||
Acquisitions
and other
|
8
|
45
|
|||||
Revisions
to estimated cash flows
|
101
|
(33
|
)
|
||||
Ending
balance
|
$
|
722
|
$
|
521
|
Note 2
|
Acquisitions and
Dispositions
|
Note 3
|
Accounting and Disclosure
Changes
|
Note 4
|
Inventories
|
Balance
at December 31, (in millions)
|
2009
|
2008
|
|||||
Raw
materials
|
$
|
63
|
$
|
123
|
|||
Materials
and supplies
|
515
|
412
|
|||||
Finished
goods
|
584
|
494
|
|||||
1,162
|
1,029
|
||||||
LIFO
reserve
|
(81
|
)
|
(71
|
)
|
|||
Total
|
$
|
1,081
|
$
|
958
|
Note 5
|
Long-term Debt
|
Balance
at December 31, (in millions)
|
2009
|
2008
|
|||||
Occidental
Petroleum Corporation
|
|||||||
7.0%
senior notes due 2013
|
$
|
1,000
|
$
|
1,000
|
|||
4.125%
senior notes due 2016
|
750
|
—
|
|||||
6.75%
senior notes due 2012
|
368
|
368
|
|||||
4.25%
medium-term senior notes due 2010
|
227
|
227
|
|||||
8.45%
senior notes due 2029
|
116
|
116
|
|||||
9.25%
senior debentures due 2019
|
116
|
116
|
|||||
10.125%
senior debentures due 2009
|
―
|
91
|
|||||
7.2%
senior debentures due 2028
|
82
|
82
|
|||||
8.75%
medium-term notes due 2023
|
22
|
22
|
|||||
11.125%
senior notes due 2010
|
12
|
12
|
|||||
2,693
|
2,034
|
||||||
Subsidiary
Debt
|
|||||||
Dolphin
Energy Limited (Dolphin Energy) loans due 2009 (3.915%
as of December 31, 2008)
|
―
|
600
|
|||||
0.19%
to 0.35% unsecured notes due 2011 through 2018
|
115
|
115
|
|||||
2,808
|
2,749
|
||||||
Less:
|
|||||||
Unamortized
discount, net
|
(12
|
)
|
(9
|
)
|
|||
Current
maturities
|
(239
|
)
|
(691
|
)
|
|||
Total
|
$
|
2,557
|
$
|
2,049
|
Note 6
|
Lease Commitments
|
In
millions
|
Capital
|
Operating
|
(a)
|
||||
2010
|
$
|
—
|
$
|
153
|
|||
2011
|
—
|
118
|
|||||
2012
|
—
|
87
|
|||||
2013
|
—
|
70
|
|||||
2014
|
—
|
59
|
|||||
Thereafter
|
26
|
630
|
|||||
Total
minimum lease payments
|
26
|
$
|
1,117
|
||||
Less:
|
|||||||
Imputed
interest
|
1
|
||||||
Present
value of minimum capital lease payments
|
$
|
25
|
(a)
|
At
December 31, 2009, these operating lease payments are net of sublease
rental amounts of $15 million, which are to be received as follows (in
millions): 2010—$4, 2011—$4, 2012—$4, 2013—$2 and
2014—$1.
|
|
Note 7
|
Derivative Activities
|
Crude
Oil
Collars
|
||||||
Daily
Volume (barrels)
|
Average
Floor
|
Average
Cap
|
||||
2010
|
12,000
|
$33.00
|
$46.35
|
|||
2011
|
12,000
|
$32.92
|
$46.27
|
Natural
Gas
Swaps
|
||||
Daily
Volume
|
Average
Strike Price
|
|||
January
2010 - December 2010
|
40
million cubic feet
|
$5.03
|
||
December
2010 - March 2012
|
50
million cubic feet
|
$6.07
|
Cash-Flow
Hedges
(in
millions)
|
Gains
(Losses) Recognized
in
AOCI –
Effective
Portion
|
Amount
of (Gains) Losses Reclassified from AOCI into Income –
Effective
Portion
|
Gains
Recognized
in
Income –
Ineffective
Portion
|
||||||||||
Commodity
contracts
|
|||||||||||||
Occidental’s
crude oil production
|
$
|
(162
|
)
|
$
|
74
|
$
|
10
|
||||||
Occidental’s
natural gas production
|
(2
|
)
|
—
|
—
|
|||||||||
Commodity
contracts
|
|||||||||||||
Natural
gas storage
|
19
|
(50
|
)
|
—
|
|||||||||
Total
|
$
|
(145
|
)
|
$
|
24
|
$
|
10
|
In
millions
|
2009
|
2008
|
|||||
Beginning
Balance
|
$
|
(150
|
)
|
$
|
(441
|
)
|
|
Gains
(losses) from changes in cash-flow hedges
|
(93
|
)
|
207
|
||||
Losses
reclassified to income
|
16
|
84
|
|||||
Ending
Balance
|
$
|
(227
|
)
|
$
|
(150
|
)
|
Commodity
|
Volumes
|
||
Occidental’s
production sales contracts
|
|||
Crude
oil
|
9
million barrels
|
||
Third-party
marketing and trading activities
|
|||
Purchase
contracts
|
|||
Crude
oil
|
161
million barrels
|
||
Natural
gas
|
1,386
billion cubic feet
|
||
Electricity
|
408,000
megawatt hours
|
||
Sales
contracts
|
|||
Crude
oil
|
182
million barrels
|
||
Natural
gas
|
1,556
billion cubic feet
|
||
Electricity
|
408,000
megawatt hours
|
Asset
Derivatives
|
Fair
|
Liability
Derivatives
|
Fair
|
||||||||
(in
millions)
|
Balance
Sheet Location
|
Value
|
Balance
Sheet Location
|
Value
|
|||||||
Cash-flow
hedges (a)
|
|||||||||||
Marketing
and trading assets and other
|
$
|
2
|
Accrued
liabilities
|
$
|
(168
|
)
|
|||||
Commodity
contracts
|
Long-term
receivables and other assets, net
|
5
|
Deferred
credits and other liabilities
|
(174
|
)
|
||||||
$
|
7
|
$
|
(342
|
)
|
|||||||
Derivatives
not designated as hedging instruments (a)
|
|||||||||||
Marketing
and trading assets and other
|
$
|
776
|
Accrued
liabilities
|
$
|
(789
|
)
|
|||||
Commodity
contracts
|
Long-term
receivables and other assets, net
|
72
|
Deferred
credits and other liabilities
|
(69
|
)
|
||||||
848
|
(858
|
)
|
|||||||||
Total
gross fair value of derivatives
|
855
|
(1,200
|
)
|
||||||||
Less:
counterparty netting and cash collateral
|
(642
|
)
|
648
|
||||||||
Total
net fair value of derivatives
|
$
|
213
|
$
|
(552
|
)
|
(a)
|
The
above fair values are presented at gross amounts, including when the
derivatives are subject to master netting arrangements and qualify for net
presentation in the consolidated balance sheet.
|
Note 8
|
Environmental Liabilities and
Expenditures
|
$
amounts in millions
|
2009
|
2008
|
2007
|
||||||||||||||||||||||
Number
of Sites
|
Reserve
Balance
|
Number
of Sites
|
Reserve
Balance
|
Number
of Sites
|
Reserve
Balance
|
||||||||||||||||||||
NPL
sites
|
39
|
$
|
57
|
40
|
$
|
60
|
39
|
$
|
81
|
||||||||||||||||
Third-party
sites
|
81
|
104
|
76
|
117
|
79
|
124
|
|||||||||||||||||||
Occidental-operated
sites
|
19
|
126
|
19
|
127
|
18
|
121
|
|||||||||||||||||||
Closed
or non-operated Occidental sites
|
29
|
116
|
31
|
135
|
27
|
131
|
|||||||||||||||||||
Total
|
168
|
$
|
403
|
166
|
$
|
439
|
163
|
$
|
457
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Balance
— Beginning of
Year
|
$
|
439
|
$
|
457
|
$
|
412
|
||||
Remediation
expenses and interest accretion
|
26
|
29
|
108
|
|||||||
Changes
from acquisitions/dispositions
|
4
|
25
|
5
|
|||||||
Payments
|
(66
|
)
|
(72
|
)
|
(68
|
)
|
||||
Balance
— End of Year
|
$
|
403
|
$
|
439
|
$
|
457
|
In
millions
|
2009
|
2008
|
2007
|
|||||||
Operating
Expenses
|
||||||||||
Oil
and Gas
|
$
|
123
|
$
|
127
|
$
|
99
|
||||
Chemical
|
67
|
85
|
80
|
|||||||
Midstream
and Marketing
|
14
|
20
|
9
|
|||||||
$
|
204
|
$
|
232
|
$
|
188
|
|||||
Capital
Expenditures
|
||||||||||
Oil
and Gas
|
$
|
83
|
$
|
104
|
$
|
55
|
||||
Chemical
|
15
|
18
|
14
|
|||||||
Midstream
and Marketing
|
4
|
6
|
4
|
|||||||
$
|
102
|
$
|
128
|
$
|
73
|
|||||
Remediation
Expenses
|
||||||||||
Corporate
|
$
|
25
|
$
|
28
|
$
|
107
|
Note 9
|
Lawsuits, Claims, Commitments, Contingencies and Related
Matters
|
Note 10
|
Domestic and Foreign Income
Taxes
|
For
the years ended December 31, (in millions)
|
Domestic
|
Foreign
|
Total
|
|||||||
2009
|
$
|
2,091
|
$
|
2,754
|
$
|
4,845
|
||||
2008
|
$
|
5,923
|
$
|
5,545
|
$
|
11,468
|
||||
2007
|
$
|
4,604
|
$
|
3,981
|
$
|
8,585
|
For
the years ended December 31, (in millions)
|
U.S.
Federal
|
State
and
Local
|
Foreign
|
Total
|
|||||||||
2009
|
|||||||||||||
Current
|
$
|
16
|
$
|
27
|
$
|
1,368
|
$
|
1,411
|
|||||
Deferred
|
606
|
37
|
(136
|
)
|
507
|
||||||||
$
|
622
|
$
|
64
|
$
|
1,232
|
$
|
1,918
|
||||||
2008
|
|||||||||||||
Current
|
$
|
1,558
|
$
|
166
|
$
|
2,637
|
$
|
4,361
|
|||||
Deferred
|
435
|
29
|
(196
|
)
|
268
|
||||||||
$
|
1,993
|
$
|
195
|
$
|
2,441
|
$
|
4,629
|
||||||
2007
|
|||||||||||||
Current
|
$
|
1,371
|
$
|
125
|
$
|
1,976
|
$
|
3,472
|
|||||
Deferred
|
48
|
14
|
(27
|
)
|
35
|
||||||||
$
|
1,419
|
$
|
139
|
$
|
1,949
|
$
|
3,507
|
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
United
States federal statutory tax rate
|
35
|
%
|
35
|
%
|
35
|
%
|
||||
Operations
outside the United States
|
5
|
6
|
6
|
|||||||
State
taxes, net of federal benefit
|
1
|
1
|
1
|
|||||||
Other
|
(1
|
)
|
(2
|
)
|
(1
|
)
|
||||
Tax
rate provided by Occidental
|
40
|
%
|
40
|
%
|
41
|
%
|
2009
|
2008
|
||||||||||||
Tax
effects of temporary differences (in millions)
|
Deferred Tax
Assets |
Deferred Tax
Liabilities |
Deferred Tax
Assets |
Deferred Tax
Liabilities |
|||||||||
Property,
plant and equipment differences
|
$
|
15
|
$
|
4,230
|
$
|
16
|
$
|
3,646
|
|||||
Environmental
reserves
|
144
|
—
|
177
|
—
|
|||||||||
Postretirement
benefit accruals
|
331
|
—
|
296
|
—
|
|||||||||
Deferred
compensation and benefits
|
262
|
—
|
240
|
—
|
|||||||||
Asset
retirement obligations
|
209
|
—
|
159
|
—
|
|||||||||
Derivatives
|
132
|
—
|
64
|
—
|
|||||||||
Foreign
tax credit carryforward
|
426
|
—
|
423
|
—
|
|||||||||
State
income taxes
|
77
|
—
|
85
|
—
|
|||||||||
All
other
|
433
|
153
|
409
|
205
|
|||||||||
Subtotal
|
2,029
|
4,383
|
1,869
|
3,851
|
|||||||||
Valuation
allowance
|
(491
|
)
|
—
|
(478
|
)
|
—
|
|||||||
Total
deferred taxes
|
$
|
1,538
|
$
|
4,383
|
$
|
1,391
|
$
|
3,851
|
For
the years ended December 31, (in millions)
|
2009
|
2008
|
||||||
Balance
at January 1,
|
$
|
62
|
$
|
83
|
||||
Additions
based on tax positions related to the current year
|
2
|
57
|
||||||
Reductions
based on tax positions related to prior years and
settlements
|
(12
|
)
|
(78
|
)
|
||||
Balance
at December 31,
|
$
|
52
|
$
|
62
|
Note 11
|
Stockholders’ Equity
|
(shares
in thousands)
|
Common
Stock
|
||
Balance,
December 31, 2006
|
870,679
|
||
Issued
|
2,643
|
||
Options
exercised and other, net
|
3,802
|
||
Balance,
December 31, 2007
|
877,124
|
||
Issued
|
1,532
|
||
Options
exercised and other, net
|
2,767
|
||
Balance,
December 31, 2008
|
881,423
|
||
Issued
|
1,697
|
||
Options
exercised and other, net
|
523
|
||
Balance,
December 31, 2009
|
883,643
|
Years
Ended December 31
|
||||||||||
In
millions, except per-share amounts
|
2009
|
2008
|
2007
|
|||||||
Basic
EPS
|
||||||||||
Income
from continuing operations
|
$
|
2,978
|
$
|
6,955
|
$
|
5,153
|
||||
Less:
Income from continuing operations attributable to noncontrolling
interest
|
(51
|
)
|
(116
|
)
|
(75
|
)
|
||||
Income
from continuing operations attributable to common stock
|
2,927
|
6,839
|
5,078
|
|||||||
Discontinued
operations
|
(12
|
)
|
18
|
322
|
||||||
Net
income attributable to common stock
|
2,915
|
6,857
|
5,400
|
|||||||
Less:
Net income allocated to participating securities
|
(4
|
)
|
(13
|
)
|
(18
|
)
|
||||
Net
income attributable to common stock, net of participating
securities
|
$
|
2,911
|
$
|
6,844
|
$
|
5,382
|
||||
Weighted
average number of basic shares
|
811.3
|
817.6
|
834.9
|
|||||||
Basic
EPS
|
$
|
3.59
|
$
|
8.37
|
$
|
6.45
|
||||
Diluted
EPS
|
||||||||||
Net
income attributable to common stock, net of participating
securities
|
$
|
2,911
|
$
|
6,844
|
$
|
5,382
|
||||
Weighted
average number of basic shares
|
811.3
|
817.6
|
834.9
|
|||||||
Dilutive
effect of potentially dilutive securities
|
2.5
|
2.9
|
3.8
|
|||||||
Total
diluted weighted average common shares
|
813.8
|
820.5
|
838.7
|
|||||||
Diluted
EPS
|
$
|
3.58
|
$
|
8.34
|
$
|
6.42
|
Balance
at December 31, (in millions)
|
2009
|
2008
|
|||||
Foreign
currency translation adjustments
|
$
|
(2
|
)
|
$
|
(34
|
)
|
|
Unrealized
losses on derivatives
|
(227
|
)
|
(150
|
)
|
|||
Pension
and post-retirement adjustments (a)
|
(363
|
)
|
(365
|
)
|
|||
Unrealized
losses on securities
|
(4
|
)
|
(3
|
)
|
|||
Total
|
$
|
(596
|
)
|
$
|
(552
|
)
|
(a)
|
See
Note 13 for further information.
|
Note 12
|
Stock-Based Incentive
Plans
|
For
the years ended December 31, (in millions)
|
2009
|
2008
|
2007
|
|||||||
Compensation
expense
|
$
|
151
|
$
|
139
|
$
|
290
|
||||
Income
tax benefit recognized in the income statement
|
$
|
55
|
$
|
51
|
$
|
105
|
||||
Intrinsic
value of options and stock-settled SAR exercises
|
$
|
58
|
$
|
291
|
$
|
110
|
||||
Cash
paid (a)
|
$
|
50
|
$
|
177
|
$
|
95
|
||||
Fair
value of RSUs and PSAs vested during the year (b)
|
$
|
142
|
$
|
112
|
$
|
128
|
(a)
|
Includes
cash paid under the cash-settled SARs and the cash-settled portion of the
PSAs and RSUs.
|
(b)
|
As
measured on the vesting date for the stock-settled portion of the RSUs and
PSAs.
|
Cash-Settled
|
Stock-Settled
|
||||||||||||||
Weighted-Average
|
Weighted-Average
|
||||||||||||||
RSUs
|
Grant-Date
|
RSUs
|
Grant-Date
|
||||||||||||
(000's)
|
Fair
Value
|
(000's)
|
Fair
Value
|
||||||||||||
Unvested
at January 1
|
1,335
|
$
|
71.97
|
433
|
$
|
46.27
|
|||||||||
Granted
|
585
|
$
|
66.43
|
—
|
$
|
—
|
|||||||||
Vested
|
(367
|
)
|
$
|
69.25
|
(370
|
)
|
$
|
46.17
|
|||||||
Forfeitures
|
(107
|
)
|
$
|
72.01
|
(2
|
)
|
$
|
50.45
|
|||||||
Unvested
at December 31
|
1,446
|
$
|
70.40
|
61
|
$
|
46.79
|
Stock-Settled
|
Cash-Settled
|
||||||||||||||||||||||||||||
Weighted-
|
Weighted-
|
||||||||||||||||||||||||||||
Weighted-
|
Average
|
Aggregate
|
Weighted-
|
Average
|
Aggregate
|
||||||||||||||||||||||||
SARs
&
|
Average
|
Remaining
|
Intrinsic
|
Average
|
Remaining
|
Intrinsic
|
|||||||||||||||||||||||
Options
|
Exercise
|
Contractual
|
Value
|
SARs
|
Exercise
|
Contractual
|
Value
|
||||||||||||||||||||||
(000's)
|
Price
|
Term
(yrs)
|
(000’s)
|
(000's)
|
Price
|
Term
(yrs)
|
(000’s)
|
||||||||||||||||||||||
Beginning
balance, January 1,
|
3,978
|
$
|
34.94
|
1,318
|
$
|
24.66
|
|||||||||||||||||||||||
Exercised
|
(1,565
|
)
|
$
|
41.94
|
(233
|
)
|
$
|
24.66
|
|||||||||||||||||||||
Ending
balance, December 31,
|
2,413
|
$
|
30.40
|
4.6
|
$
|
122,909
|
1,085
|
$
|
24.66
|
4.5
|
$
|
61,518
|
|||||||||||||||||
Exercisable
at December 31,
|
2,413
|
$
|
30.40
|
4.6
|
$
|
122,909
|
1,085
|
$
|
24.66
|
4.5
|
$
|
61,518
|
PSAs
|
TSRIs
|
||||||||||||||||
Year
Granted
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||
Assumptions
used:
|
|||||||||||||||||
Risk-free
interest rate
|
4.1%
|
2.1%
|
3.0%
|
4.4%
|
|||||||||||||
Dividend
yield
|
1.9%
|
2.0%
|
1.7%
|
1.7%
|
|||||||||||||
Volatility
factor
|
25%
|
28%
|
31%
|
26%
|
|||||||||||||
Expected
life (years)
|
4
|
4
|
4
|
4
|
|||||||||||||
Grant-date
fair value of underlying Occidental common stock
|
$
|
48.83
|
$
|
66.74
|
$
|
77.00
|
$
|
61.93
|
PSAs
|
TSRIs
|
||||||||||||||
Weighted-Average
|
Weighted-Average
|
||||||||||||||
Awards
(000’s)
|
Grant
Date Fair Value
of
Occidental Stock
|
Awards
(000’s)
|
Grant
Date Fair Value
of
Occidental Stock
|
||||||||||||
Unvested
at January 1 (a)
|
583
|
$
|
37.83
|
934
|
$
|
68.66
|
|||||||||
Granted
(a)
|
—
|
$
|
—
|
804
|
$
|
66.74
|
|||||||||
Vested
(b)
|
(246
|
)
|
$
|
29.26
|
—
|
$
|
—
|
||||||||
Forfeitures
|
(19
|
)
|
$
|
45.28
|
(38
|
)
|
$
|
67.78
|
|||||||
Unvested
at December 31 (a)
|
318
|
$
|
43.99
|
1,700
|
$
|
66.77
|
(a)
|
Unvested
awards and award grants are presented at the target
payouts.
|
(b)
|
The
weighted-average payout at vesting was 200 percent of the
target.
|
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||||||||
Unfunded
Plans
|
Funded
Plans
|
||||||||||||||||||
For
the years ended December 31, (in
millions)
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Changes
in benefit obligation:
|
|||||||||||||||||||
Benefit
obligation — beginning of year
|
$
|
542
|
$
|
527
|
$
|
768
|
$
|
662
|
$
|
39
|
$
|
33
|
|||||||
Service
cost — benefits earned during the period
|
15
|
14
|
16
|
13
|
1
|
—
|
|||||||||||||
Interest
cost on projected benefit obligation
|
28
|
30
|
39
|
36
|
2
|
2
|
|||||||||||||
Actuarial
loss
|
28
|
23
|
74
|
112
|
2
|
5
|
|||||||||||||
Foreign
currency exchange rate loss (gain)
|
15
|
(16
|
)
|
—
|
—
|
—
|
—
|
||||||||||||
Benefits
paid
|
(46
|
)
|
(45
|
)
|
(55
|
)
|
(55
|
)
|
(1
|
)
|
(1
|
)
|
|||||||
Business
acquisitions
|
—
|
—
|
6
|
—
|
—
|
―
|
|||||||||||||
Plan
amendments and other
|
1
|
9
|
—
|
—
|
—
|
—
|
|||||||||||||
Benefit
obligation — end of year
|
$
|
583
|
$
|
542
|
$
|
848
|
$
|
768
|
$
|
43
|
$
|
39
|
|||||||
Changes
in plan assets:
|
|||||||||||||||||||
Fair
value of plan assets — beginning of year
|
$
|
400
|
$
|
567
|
$
|
—
|
$
|
—
|
$
|
3
|
$
|
4
|
|||||||
Actual
return on plan assets
|
91
|
(136
|
)
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||
Foreign
currency exchange rate gain (loss)
|
6
|
(5
|
)
|
—
|
—
|
—
|
—
|
||||||||||||
Employer
contributions
|
31
|
19
|
—
|
—
|
—
|
1
|
|||||||||||||
Benefits
paid
|
(46
|
)
|
(45
|
)
|
—
|
—
|
(1
|
)
|
(1
|
)
|
|||||||||
Fair
value of plan assets — end of year
|
$
|
482
|
$
|
400
|
$
|
—
|
$
|
—
|
$
|
2
|
$
|
3
|
|||||||
Unfunded
status:
|
$
|
(101
|
)
|
$
|
(142
|
)
|
$
|
(848
|
)
|
$
|
(768
|
)
|
$
|
(41
|
)
|
$
|
(36
|
)
|
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||||||||
Unfunded
Plans
|
Funded
Plans
|
||||||||||||||||||
As
of December 31, (in millions)
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Other
assets
|
$
|
52
|
$
|
21
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
—
|
|||||||
Accrued
liabilities
|
(10
|
)
|
(10
|
)
|
(56
|
)
|
(51
|
)
|
—
|
—
|
|||||||||
Deferred
credits and other liabilities – other
|
(143
|
)
|
(153
|
)
|
(792
|
)
|
(717
|
)
|
(41
|
)
|
(36
|
)
|
|||||||
$
|
(101
|
)
|
$
|
(142
|
)
|
$
|
(848
|
)
|
$
|
(768
|
)
|
$
|
(41
|
)
|
$
|
(36
|
)
|
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||||||||
Unfunded
Plans
|
Funded
Plans
|
||||||||||||||||||
As
of December 31, (in millions)
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Net
loss
|
$
|
103
|
$
|
139
|
$
|
243
|
$
|
208
|
$
|
12
|
$
|
11
|
|||||||
Prior
service cost
|
2
|
3
|
3
|
4
|
—
|
—
|
|||||||||||||
$
|
105
|
$
|
142
|
$
|
246
|
$
|
212
|
$
|
12
|
$
|
11
|
Pension
Benefits
|
Postretirement
Benefits
|
|||||||||||||||||||||||||||
Unfunded
Plans
|
Funded
Plans
|
|||||||||||||||||||||||||||
For
the years ended December 31, (in millions)
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||||||||
Net
periodic benefit costs:
|
||||||||||||||||||||||||||||
Service
cost — benefits earned during the period
|
$
|
15
|
$
|
14
|
$
|
9
|
$
|
16
|
$
|
13
|
$
|
12
|
$
|
1
|
$
|
—
|
$
|
1
|
||||||||||
Interest
cost on benefit obligation
|
28
|
30
|
27
|
39
|
36
|
34
|
2
|
2
|
2
|
|||||||||||||||||||
Expected
return on plan assets
|
(25
|
)
|
(39
|
)
|
(38
|
)
|
—
|
—
|
—
|
—
|
—
|
(1
|
)
|
|||||||||||||||
Amortization
of prior service cost
|
1
|
—
|
1
|
1
|
1
|
1
|
—
|
—
|
—
|
|||||||||||||||||||
Recognized
actuarial loss
|
20
|
6
|
3
|
20
|
15
|
14
|
1
|
1
|
1
|
|||||||||||||||||||
Settlement
and special termination benefits cost (a)
|
—
|
—
|
3
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||||||
Currency
adjustments
|
11
|
(12
|
)
|
10
|
—
|
—
|
—
|
—
|
—
|
—
|
||||||||||||||||||
Net
periodic benefit cost
|
$
|
50
|
$
|
(1
|
)
|
$
|
15
|
$
|
76
|
$
|
65
|
$
|
61
|
$
|
4
|
$
|
3
|
$
|
3
|
(a)
|
Settlement
cost relates to benefit distributions made in 2007.
|
Pension
Benefits
|
Postretirement
Benefits
|
||||||||||||||||||
Unfunded
Plans
|
Funded
Plans
|
||||||||||||||||||
For
the years ended December 31,
|
2009
|
2008
|
2009
|
2008
|
2009
|
2008
|
|||||||||||||
Benefit
Obligation Assumptions:
|
|||||||||||||||||||
Discount
rate
|
5.12
|
%
|
5.25
|
%
|
5.12
|
%
|
5.25
|
%
|
5.12
|
%
|
5.25
|
%
|
|||||||
Rate
of compensation increase
|
4.00
|
%
|
4.00
|
%
|
—
|
—
|
—
|
—
|
|||||||||||
Net
Periodic Benefit Cost Assumptions:
|
|||||||||||||||||||
Discount
rate
|
5.25
|
%
|
5.68
|
%
|
5.25
|
%
|
5.68
|
%
|
5.25
|
%
|
5.68
|
%
|
|||||||
Assumed
long term rate of return on assets
|
6.50
|
%
|
7.00
|
%
|
—
|
—
|
6.50
|
%
|
7.00
|
%
|
|||||||||
Rate
of compensation increase
|
4.00
|
%
|
4.00
|
%
|
—
|
—
|
—
|
—
|
Using
Fair Value Measurements at December 31, 2009
|
|||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Total
|
|||||||||||||||||
Asset
Category:
|
|||||||||||||||||||||
Cash
and cash equivalents
|
$
|
1
|
$
|
—
|
$
|
—
|
$
|
1
|
|||||||||||||
Collateral
received for securities loaned
|
—
|
11
|
—
|
11
|
|||||||||||||||||
U.S.
government securities
|
17
|
23
|
—
|
40
|
|||||||||||||||||
Corporate
bonds (a)
|
—
|
55
|
—
|
55
|
|||||||||||||||||
Common/collective
trusts and mutual funds (b)
|
144
|
47
|
—
|
191
|
|||||||||||||||||
Common
and preferred stocks (c)
|
187
|
—
|
—
|
187
|
|||||||||||||||||
Other
|
—
|
—
|
18
|
18
|
|||||||||||||||||
Total
pension plan assets (d)
|
$
|
349
|
$
|
136
|
$
|
18
|
$
|
503
|
(a)
|
This
category represents investment grade bonds of U.S. and non-U.S. issuers
from diverse industries.
|
|
(b)
|
This
category includes investment funds that primarily invest in U.S. and
non-U.S. common stocks and fixed income securities.
|
|
(c)
|
This
category represents investment in U.S. and non-U.S. common and preferred
stocks from diverse industries.
|
|
(d)
|
Amount
excludes net payables of $21 million as of December 31,
2009.
|
For
the years ended December 31, (in millions)
|
Pension
Benefits
|
Postretirement
Benefits
|
|||||||||
2010
|
$
|
45
|
$
|
59
|
|||||||
2011
|
$
|
48
|
$
|
60
|
|||||||
2012
|
$
|
49
|
$
|
59
|
|||||||
2013
|
$
|
51
|
$
|
58
|
|||||||
2014
|
$
|
54
|
$
|
57
|
|||||||
2015
— 2019
|
$
|
281
|
$
|
276
|
For
the years ended December 31, (in millions)
|
2009
|
2008
|
2007
|
|||||||
Revenues
|
$
|
1,080
|
$
|
860
|
$
|
463
|
||||
Costs
and expenses
|
847
|
647
|
381
|
|||||||
Net
income
|
$
|
233
|
$
|
213
|
$
|
82
|
||||
As
of December 31, (in millions)
|
2009
|
2008
|
||||||||
Current
assets
|
$
|
1,422
|
$
|
411
|
||||||
Non-current
assets
|
$
|
2,904
|
$
|
1,655
|
||||||
Current
liabilities
|
$
|
713
|
$
|
387
|
||||||
Long-term
debt
|
$
|
1,951
|
$
|
726
|
||||||
Other
non-current liabilities
|
$
|
138
|
$
|
116
|
||||||
Stockholders’
equity
|
$
|
1,524
|
$
|
837
|
December
31, (in millions)
|
2009
|
2008
|
2007
|
|||||||
Purchases
(a)
|
$
|
174
|
$
|
315
|
$
|
236
|
||||
Sales
|
$
|
222
|
$
|
433
|
$
|
351
|
||||
Services
|
$
|
2
|
$
|
1
|
$
|
1
|
||||
Advances
and amounts due from
|
$
|
123
|
$
|
8
|
$
|
184
|
||||
Amounts
due to
|
$
|
112
|
$
|
—
|
$
|
—
|
In
2009, 2008 and 2007, purchases from EHP accounted for 73 percent, 97
percent and 98 percent, respectively.
|
Note
15
|
Fair
Value Measurements
|
Fair
Value Measurements at December 31, 2009 Using
|
|||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Netting
and Collateral
|
(a)
|
Total
Fair
Value
|
|||||||||||||||
Assets:
|
|||||||||||||||||||||
Trading
securities
|
|||||||||||||||||||||
Marketing
and trading assets and other, net
|
$
|
230
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
230
|
|||||||||||
Derivative
financial instruments
|
|||||||||||||||||||||
Marketing
and trading assets and other, net
|
373
|
405
|
—
|
(600
|
)
|
178
|
|||||||||||||||
Long-term
receivables, net
|
—
|
77
|
—
|
(42
|
)
|
35
|
|||||||||||||||
Total
assets
|
$
|
603
|
$
|
482
|
$
|
—
|
$
|
(642
|
)
|
$
|
443
|
||||||||||
Liabilities:
|
|||||||||||||||||||||
Derivative
financial instruments
|
|||||||||||||||||||||
Accrued
liabilities
|
$
|
412
|
$
|
545
|
$
|
—
|
$
|
(606
|
)
|
$
|
351
|
||||||||||
Deferred
credits and other liabilities-other
|
—
|
243
|
—
|
(42
|
)
|
201
|
|||||||||||||||
Total
liabilities
|
$
|
412
|
$
|
788
|
$
|
—
|
$
|
(648
|
)
|
$
|
552
|
Fair
Value Measurements at December 31, 2008 Using
|
|||||||||||||||||||||
Description
|
Level
1
|
Level
2
|
Level
3
|
Netting
and Collateral
|
(a)
|
Total
Fair
Value
|
|||||||||||||||
Assets:
|
|||||||||||||||||||||
Derivative
financial instruments
|
|||||||||||||||||||||
Marketing
and trading assets and other, net
|
$
|
611
|
$
|
785
|
$
|
—
|
$
|
(1,150
|
)
|
$
|
246
|
||||||||||
Long-term
receivables, net
|
3
|
85
|
—
|
(29
|
)
|
59
|
|||||||||||||||
Total
assets
|
$
|
614
|
$
|
870
|
$
|
—
|
$
|
(1,179
|
)
|
$
|
305
|
||||||||||
Liabilities:
|
|||||||||||||||||||||
Derivative
financial instruments
|
|||||||||||||||||||||
Accrued
liabilities
|
$
|
698
|
$
|
652
|
$
|
—
|
$
|
(1,150
|
)
|
$
|
200
|
||||||||||
Deferred
credits and other liabilities-other
|
—
|
273
|
—
|
(29
|
)
|
244
|
|||||||||||||||
Total
liabilities
|
$
|
698
|
$
|
925
|
$
|
—
|
$
|
(1,179
|
)
|
$
|
444
|
(a)
|
Represents
the impact of netting assets, liabilities and collateral when a legal
right of offset exists.
|
Note
16
|
Industry
Segments and Geographic Areas
|
Industry
Segments
|
||||||||||||||||
In
millions
|
||||||||||||||||
Oil
and Gas
|
Chemical
|
Midstream,
Marketing and Other
|
Corporate
and Eliminations
|
Total
|
||||||||||||
YEAR ENDED DECEMBER 31, 2009
|
||||||||||||||||
Net
sales
|
$
|
11,598
|
(a)
|
$
|
3,225
|
(b)
|
$
|
1,016
|
(c)
|
$
|
(436
|
)
|
$
|
15,403
|
||
Pretax
operating profit (loss)
|
$
|
4,735
|
(d,e)
|
$
|
389
|
$
|
235
|
$
|
(514
|
)
(f)
|
$
|
4,845
|
(d)
|
|||
Income
taxes
|
—
|
—
|
—
|
(1,918
|
)
|
(1,918
|
)
|
|||||||||
Discontinued
operations, net
|
—
|
—
|
—
|
(12
|
)
|
(12
|
)
|
|||||||||
Net
income (loss)
|
$
|
4,735
|
(d,e)
|
$
|
389
|
$
|
235
|
$
|
(2,444
|
)
(g)
|
$
|
2,915
|
(d)
|
|||
Investments
in unconsolidated entities
|
$
|
118
|
$
|
131
|
$
|
1,473
|
$
|
10
|
$
|
1,732
|
||||||
Property,
plant and equipment additions, net (h)
|
$
|
2,907
|
$
|
213
|
$
|
583
|
$
|
39
|
$
|
3,742
|
||||||
Depreciation,
depletion and amortization
|
$
|
2,688
|
$
|
298
|
$
|
110
|
$
|
21
|
$
|
3,117
|
||||||
Total
assets
|
$
|
29,646
|
$
|
3,608
|
$
|
8,773
|
$
|
2,202
|
$
|
44,229
|
||||||
YEAR
ENDED DECEMBER 31, 2008
|
||||||||||||||||
Net
sales
|
$
|
18,187
|
(a)
|
$
|
5,112
|
(b)
|
$
|
1,598
|
(c)
|
$
|
(680
|
)
|
$
|
24,217
|
||
Pretax
operating profit (loss)
|
$
|
10,651
|
(d,e)
|
$
|
669
|
(i)
|
$
|
520
|
$
|
(372
|
)(f)
|
$
|
11,468
|
(d)
|
||
Income
taxes
|
—
|
—
|
—
|
(4,629
|
)
|
(4,629
|
)
|
|||||||||
Discontinued
operations, net
|
—
|
—
|
—
|
18
|
18
|
|||||||||||
Net
income (loss)
|
$
|
10,651
|
(d,e)
|
$
|
669
|
(i)
|
$
|
520
|
$
|
(4,983
|
)(g)
|
$
|
6,857
|
(d)
|
||
Investments
in unconsolidated entities
|
$
|
84
|
$
|
82
|
$
|
1,087
|
$
|
10
|
$
|
1,263
|
||||||
Property,
plant and equipment additions, net (h)
|
$
|
3,973
|
$
|
245
|
$
|
507
|
$
|
101
|
$
|
4,826
|
||||||
Depreciation,
depletion and amortization
|
$
|
2,307
|
$
|
311
|
$
|
73
|
$
|
19
|
$
|
2,710
|
||||||
Total
assets
|
$
|
28,522
|
$
|
3,457
|
$
|
6,424
|
$
|
3,134
|
$
|
41,537
|
||||||
YEAR
ENDED DECEMBER 31, 2007
|
||||||||||||||||
Net
sales
|
$
|
13,304
|
(a)
|
$
|
4,664
|
(b)
|
$
|
1,388
|
(c)
|
$
|
(572
|
)
|
$
|
18,784
|
||
Pretax
operating profit (loss)
|
$
|
7,957
|
(d,e)
|
$
|
601
|
$
|
367
|
$
|
(340
|
)(f)
|
$
|
8,585
|
(d)
|
|||
Income
taxes
|
—
|
—
|
—
|
(3,507
|
)
|
(3,507
|
)
|
|||||||||
Discontinued
operations, net
|
—
|
—
|
—
|
322
|
322
|
|||||||||||
Net
income (loss)
|
$
|
7,957
|
(d,e)
|
$
|
601
|
$
|
367
|
$
|
(3,525
|
)(g)
|
$
|
5,400
|
(d)
|
|||
Investments
in unconsolidated entities
|
$
|
81
|
$
|
118
|
$
|
584
|
$
|
—
|
$
|
783
|
||||||
Property,
plant and equipment additions, net (h)
|
$
|
2,994
|
$
|
251
|
$
|
244
|
$
|
8
|
$
|
3,497
|
||||||
Depreciation,
depletion and amortization
|
$
|
1,992
|
$
|
304
|
$
|
67
|
$
|
16
|
$
|
2,379
|
||||||
Total
assets
|
$
|
23,421
|
$
|
3,814
|
$
|
6,589
|
$
|
2,695
|
$
|
36,519
|
||||||
(See
footnotes on next page)
|
(a)
|
Crude
oil sales represented approximately 87 percent, 87 percent and 85 percent
of the oil and gas segment net sales for the years ended December 31,
2009, 2008 and 2007, respectively.
|
|
(b)
|
Total
product sales for the chemical segment were as follows:
|
Basic
Chemicals
|
Vinyls
|
Other
Chemicals
|
|||||||||
Year ended December 31, 2009
|
61
|
%
|
34
|
%
|
5
|
%
|
|||||
Year
ended December 31, 2008
|
58
|
%
|
39
|
%
|
3
|
%
|
|||||
Year
ended December 31, 2007
|
52
|
%
|
45
|
%
|
3
|
%
|
(c)
|
Total
sales for the midstream and marketing segment were as
follows:
|
Gas
Plants
|
Cogeneration
|
Marketing,
Trading,
Transportation
and other
|
|||||||||
Year ended December 31, 2009
|
56
|
%
|
26
|
%
|
18
|
%
|
|||||
Year
ended December 31, 2008
|
60
|
%
|
30
|
%
|
10
|
%
|
|||||
Year
ended December 31, 2007
|
53
|
%
|
26
|
%
|
21
|
%
|
(d)
|
Represents
amount attributable to common stock after deducting noncontrolling
interest amounts of $51 million, $116 million and $75 million for 2009,
2008 and 2007, respectively.
|
|
(e)
|
The
2009 amount includes a $170 million fourth quarter pre-tax charge for the
impairment of certain Argentine producing properties and an $8 million
pre-tax charge for the termination of rig contracts. The 2008
amount includes a pre-tax charge of $599 million for asset impairments,
including undeveloped acreage in Argentina and Yemen and domestic
producing properties, and a pre-tax charge of $58 million for termination
of rig contracts. The 2007 amount includes an after-tax gain of
$412 million from the sale of Occidental’s interest in a Russian joint
venture, an after-tax gain of $112 million from certain litigation
settlements, a pre-tax gain of $103 million from the sale of exploration
properties, a pre-tax gain of $35 million from the sale of miscellaneous
domestic oil and gas interests and a $74 million pre-tax loss from the
exploration impairments.
|
|
(f)
|
Includes
unallocated net interest expense, administration expense, environmental
remediation and other pre-tax items noted in footnote (g)
below.
|
|
(g)
|
Includes
the following significant items affecting earnings for the years ended
December 31:
|
Benefit
(Charge) (In
millions)
|
2009
|
2008
|
2007
|
||||||||
corporate
|
|||||||||||
Pre-tax
operating profit (loss)
|
|||||||||||
Railcar
leases
|
$
|
(15
|
)
|
$
|
—
|
$
|
—
|
||||
Severance
charge
|
(40
|
)
|
—
|
(25
|
)
|
||||||
Gain
on sale of Lyondell shares
|
—
|
—
|
326
|
||||||||
Debt
purchase expense
|
—
|
—
|
(167
|
)
|
|||||||
Facility
closure
|
—
|
—
|
(47
|
)
|
|||||||
$
|
(55
|
)
|
$
|
—
|
$
|
87
|
|||||
Income
taxes
|
|||||||||||
Tax
effect of pre-tax adjustments *
|
$
|
77
|
$
|
238
|
$
|
(2
|
)
|
||||
$
|
77
|
$
|
238
|
$
|
(2
|
)
|
|||||
Discontinued
operations, net of tax
|
$
|
(12
|
)
|
$
|
18
|
$
|
322
|
||||
* Amounts
represent the tax effect of all pre-tax adjustments listed, as well as
those in footnote (e).
|
(h)
|
Includes
capital expenditures, capitalized interest and capitalized CO2, and
excludes purchases of assets, net. Also includes amounts
attributable to the noncontrolling interest in a Colombian
subsidiary.
|
|
(i)
|
Includes
a pre-tax charge of $90 million for plant closure and
impairments.
|
|
Net
sales (a)
|
Property,
plant and equipment, net
|
|||||||||||||||||
For
the years ended December 31,
|
2009
|
2008
|
2007
|
2009
|
2008
|
2007
|
|||||||||||||
United
States
|
$
|
9,448
|
$
|
15,258
|
$
|
12,300
|
$
|
23,440
|
$
|
22,164
|
$
|
17,838
|
|||||||
Foreign
|
|||||||||||||||||||
Qatar
|
2,201
|
3,298
|
2,145
|
2,842
|
2,896
|
2,964
|
|||||||||||||
Colombia
|
922
|
1,721
|
1,271
|
688
|
661
|
402
|
|||||||||||||
Oman
|
1,038
|
1,207
|
741
|
1,885
|
1,625
|
1,215
|
|||||||||||||
Yemen
|
667
|
1,016
|
861
|
398
|
386
|
494
|
|||||||||||||
Argentina
|
588
|
504
|
461
|
2,508
|
2,766
|
3,031
|
|||||||||||||
Libya
|
243
|
748
|
625
|
968
|
979
|
222
|
|||||||||||||
Other
Foreign
|
296
|
465
|
380
|
916
|
789
|
112
|
|||||||||||||
Total
Foreign
|
5,955
|
8,959
|
6,484
|
10,205
|
10,102
|
8,440
|
|||||||||||||
Total
|
$
|
15,403
|
$
|
24,217
|
$
|
18,784
|
$
|
33,645
|
$
|
32,266
|
$
|
26,278
|
(a)
|
Sales
are shown by individual country based on the location of the entity making
the sale.
|
2009 Quarterly Financial Data
(Unaudited)
|
Occidental
Petroleum Corporation
|
|
In
millions, except per-share amounts
|
and
Subsidiaries
|
Three
months ended
|
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||
Segment
net sales
|
|||||||||||||
Oil and
gas
|
$
|
2,137
|
$
|
2,726
|
$
|
3,089
|
$
|
3,646
|
|||||
Chemical
|
792
|
811
|
842
|
780
|
|||||||||
Midstream,
marketing and other
|
228
|
250
|
285
|
253
|
|||||||||
Eliminations
|
(84
|
)
|
(100
|
)
|
(112
|
)
|
(140
|
)
|
|||||
Net
sales
|
$
|
3,073
|
$
|
3,687
|
$
|
4,104
|
$
|
4,539
|
|||||
Gross
profit
|
$
|
904
|
$
|
1,518
|
$
|
1,869
|
$
|
2,252
|
|||||
Segment
earnings
|
|||||||||||||
Oil
and gas (b)
|
$
|
545
|
$
|
1,083
|
$
|
1,464
|
$
|
1,643
|
(a)
|
||||
Chemical
|
169
|
115
|
72
|
33
|
|||||||||
Midstream,
marketing and other
|
14
|
63
|
77
|
81
|
|||||||||
728
|
1,261
|
1,613
|
1,757
|
||||||||||
Unallocated
corporate items
|
|||||||||||||
Interest
expense, net
|
(20
|
)
|
(23
|
)
|
(33
|
)
|
(33
|
)
|
|||||
Income
taxes
|
(241
|
)
|
(455
|
)
|
(549
|
)
|
(673
|
)
|
|||||
Other
|
(96
|
)
|
(99
|
)
|
(102
|
)
|
(108
|
)
|
|||||
Income
from continuing operations (b)
|
371
|
684
|
929
|
943
|
|||||||||
Discontinued
operations, net
|
(3
|
)
|
(2
|
)
|
(2
|
)
|
(5
|
)
|
|||||
Net
income attributable to common stock
|
$
|
368
|
$
|
682
|
$
|
927
|
$
|
938
|
|||||
Basic
earnings per common share (b)
|
|||||||||||||
Income
from continuing operations
|
$
|
0.45
|
$
|
0.84
|
$
|
1.14
|
$
|
1.16
|
|||||
Discontinued
operations, net
|
—
|
—
|
—
|
(0.01
|
)
|
||||||||
Basic
earnings per common share
|
$
|
0.45
|
$
|
0.84
|
$
|
1.14
|
$
|
1.15
|
|||||
Diluted
earnings per common share (b)
|
|||||||||||||
Income
from continuing operations
|
$
|
0.45
|
$
|
0.84
|
$
|
1.14
|
$
|
1.16
|
|||||
Discontinued
operations, net
|
—
|
—
|
—
|
(0.01
|
)
|
||||||||
Diluted
earnings per common share
|
$
|
0.45
|
$
|
0.84
|
$
|
1.14
|
$
|
1.15
|
|||||
Dividends
per common share
|
$
|
0.32
|
$
|
0.33
|
$
|
0.33
|
$
|
0.33
|
|||||
Market
price per common share
|
|||||||||||||
High
|
$
|
64.00
|
$
|
71.59
|
$
|
79.58
|
$
|
85.20
|
|||||
Low
|
$
|
47.50
|
$
|
51.52
|
$
|
58.67
|
$
|
73.74
|
(a)
|
Includes
a fourth quarter pre-tax charge of $170 million for asset impairments
related to certain Argentine producing properties.
|
|
(b)
|
Represent
amounts attributable to common stock after deducting noncontrolling
interest amounts.
|
2008 Quarterly Financial Data
(Unaudited)
|
Occidental
Petroleum Corporation
|
|
In
millions, except per-share amounts
|
and
Subsidiaries
|
Three
months ended
|
March
31
|
June
30
|
September
30
|
December
31
|
|||||||||
Segment
net sales
|
|||||||||||||
Oil
and gas
|
$
|
4,518
|
$
|
5,501
|
$
|
5,422
|
$
|
2,746
|
|||||
Chemical
|
1,267
|
1,386
|
1,454
|
1,005
|
|||||||||
Midstream,
marketing and other
|
405
|
418
|
381
|
394
|
|||||||||
Eliminations
|
(170
|
)
|
(189
|
)
|
(197
|
)
|
(124
|
)
|
|||||
Net
sales
|
$
|
6,020
|
$
|
7,116
|
$
|
7,060
|
$
|
4,021
|
|||||
Gross
profit
|
$
|
3,478
|
$
|
4,334
|
$
|
4,118
|
$
|
1,612
|
|||||
Segment
earnings
|
|||||||||||||
Oil
and gas (c)
|
$
|
2,888
|
$
|
3,806
|
$
|
3,618
|
$
|
339
|
(a)
|
||||
Chemical
|
179
|
144
|
219
|
127
|
(b)
|
||||||||
Midstream,
marketing and other
|
123
|
161
|
66
|
170
|
|||||||||
3,190
|
4,111
|
3,903
|
636
|
||||||||||
Unallocated
corporate items
|
|||||||||||||
Interest
expense, net
|
—
|
(7
|
)
|
(3
|
)
|
(16
|
)
|
||||||
Income
taxes
|
(1,294
|
)
|
(1,671
|
)
|
(1,546
|
)
|
(118
|
)
|
|||||
Other
|
(77
|
)
|
(133
|
)
|
(82
|
)
|
(54
|
)
|
|||||
Income
from continuing operations (c)
|
1,819
|
2,300
|
2,272
|
448
|
|||||||||
Discontinued
operations, net
|
27
|
(3
|
)
|
(1
|
)
|
(5
|
)
|
||||||
Net
income attributable to common stock
|
$
|
1,846
|
$
|
2,297
|
$
|
2,271
|
$
|
443
|
|||||
Basic
earnings per common share (c)
|
|||||||||||||
Income
from continuing operations
|
$
|
2.21
|
$
|
2.79
|
$
|
2.78
|
$
|
0.55
|
|||||
Discontinued
operations, net
|
0.03
|
—
|
—
|
—
|
|||||||||
Basic
earnings per common share
|
$
|
2.24
|
$
|
2.79
|
$
|
2.78
|
$
|
0.55
|
|||||
Diluted
earnings per common share (c)
|
|||||||||||||
Income
from continuing operations
|
$
|
2.19
|
$
|
2.78
|
$
|
2.77
|
$
|
0.55
|
|||||
Discontinued
operations, net
|
0.03
|
—
|
—
|
—
|
|||||||||
Diluted
earnings per common share
|
$
|
2.22
|
$
|
2.78
|
$
|
2.77
|
$
|
0.55
|
|||||
Dividends
per common share
|
$
|
0.25
|
$
|
0.32
|
$
|
0.32
|
$
|
0.32
|
|||||
Market
price per common share
|
|||||||||||||
High
|
$
|
80.83
|
$
|
100.04
|
$
|
92.49
|
$
|
70.11
|
|||||
Low
|
$
|
60.70
|
$
|
72.23
|
$
|
63.96
|
$
|
39.93
|
(a)
|
Includes
a fourth quarter pre-tax charge of $599 million for asset impairments,
including undeveloped acreage in Argentina and Yemen and domestic
producing properties (included in depreciation, depletion and amortization
expense), and a fourth quarter pre-tax charge of $58 million for rig
contract terminations.
|
|
(b)
|
Includes
a fourth quarter pre-tax charge of $90 million for plant closure and
impairments.
|
|
(c)
|
Represent
amounts attributable to common stock after deducting noncontrolling
interest amounts.
|
Ø
|
additional
disclosures were provided regarding proved undeveloped reserves, including
investments and progress made to convert proved undeveloped reserves to
proved developed reserves and reasons why any material amounts of proved
undeveloped reserves remain undeveloped for five or more years;
and
|
|
Ø
|
general
disclosures were incorporated regarding recording of new reserves,
material additions to reserve estimates and, as appropriate, reasonable
technologies used to establish reserves estimates and
categories;
|
|
Ø
|
proved
oil and gas reserves were calculated using the unweighted arithmetic
average of the first-day-of-the-month price for each month within the year
instead of the year-end spot price; and
|
|
Ø
|
the
standard for reasonable certainty in determination of reserves was applied
using its newly defined meaning of "a high degree of
confidence."
|
Oil Reserves
|
|||||||||
In
millions of barrels
|
|||||||||
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
|||||
proved developed and
undeveloped reserves
|
|||||||||
Balance
at December 31, 2006
|
1,660
|
220
|
330
|
2,210
|
(c)
|
||||
Revisions
of previous estimates
|
(20
|
)
|
(17
|
)
|
(43
|
)
|
(80
|
)
|
|
Improved
recovery
|
114
|
17
|
53
|
184
|
|||||
Extensions
and discoveries
|
1
|
14
|
2
|
17
|
|||||
Purchases
of proved reserves
|
47
|
—
|
10
|
57
|
|||||
Sales
of proved reserves
|
—
|
—
|
—
|
—
|
|||||
Production
|
(95
|
)
|
(25
|
)
|
(44
|
)
|
(164
|
)
|
|
Balance
at December 31, 2007
|
1,707
|
209
|
308
|
2,224
|
|||||
Revisions
of previous estimates
|
(243
|
)
|
(8
|
)
|
137
|
(114
|
)
|
||
Improved
recovery
|
99
|
44
|
46
|
189
|
|||||
Extensions
and discoveries
|
11
|
—
|
—
|
11
|
|||||
Purchases
of proved reserves
|
71
|
—
|
—
|
71
|
|||||
Sales
of proved reserves
|
(2
|
)
|
—
|
—
|
(2
|
)
|
|||
Production
|
(96
|
)
|
(26
|
)
|
(47
|
)
|
(169
|
)
|
|
Balance
at December 31, 2008
|
1,547
|
219
|
444
|
(b)
|
2,210
|
||||
Revisions
of previous estimates
|
58
|
(32
|
)
|
108
|
134
|
||||
Improved
recovery
|
56
|
37
|
51
|
144
|
|||||
Extensions
and discoveries
|
29
|
2
|
—
|
31
|
|||||
Purchases
of proved reserves
|
15
|
—
|
11
|
26
|
|||||
Sales
of proved reserves
|
—
|
—
|
—
|
—
|
|||||
Production
|
(99
|
)
|
(28
|
)
|
(52
|
)
|
(179
|
)
|
|
Balance
at December 31, 2009
|
1,606
|
198
|
562
|
(b)
|
2,366
|
||||
proved
developed reserves
|
|||||||||
December
31, 2006
|
1,382
|
135
|
251
|
1,768
|
|||||
December
31, 2007
|
1,406
|
115
|
265
|
1,786
|
|||||
December
31, 2008
|
1,209
|
119
|
345
|
1,673
|
|||||
December
31, 2009 (d)
|
1,286
|
125
|
446
|
1,857
|
|||||
proved
undeveloped reserves
|
|||||||||
December
31, 2006
|
278
|
85
|
79
|
442
|
|||||
December
31, 2007
|
301
|
94
|
43
|
438
|
|||||
December
31, 2008
|
338
|
100
|
99
|
537
|
|||||
December
31, 2009 (e)
|
320
|
73
|
116
|
509
|
(a)
|
Excludes
proved oil reserves related to the noncontrolling interest of a Colombian
subsidiary.
|
|
(b)
|
Proved
reserve amounts relate to PSCs.
|
|
(c)
|
Excludes
proved oil reserves of 30 million barrels as of December 31, 2006, related
to Occidental's joint venture interest in Russia, which was sold in
2007.
|
|
(d)
|
Approximately
five percent of the proved developed reserves at December 31, 2009 are
nonproducing, the majority of which are located in the United
States.
|
|
(e)
|
The
amount of Occidental's proved undeveloped reserves that have not been
developed for over five years was not material.
|
Gas Reserves
|
|||||||||
In
billions of cubic feet
|
|||||||||
United
States
|
Latin
America
|
Middle
East/
North
Africa
|
(a)
|
Total
|
|||||
proved
developed and undeveloped reserves
|
|||||||||
Balance
at December 31, 2006
|
2,424
|
194
|
1,106
|
3,724
|
|||||
Revisions
of previous estimates
|
35
|
5
|
(130
|
)
|
(90
|
)
|
|||
Improved
recovery
|
406
|
5
|
6
|
417
|
|||||
Extensions
and discoveries
|
5
|
19
|
11
|
35
|
|||||
Purchases
of proved reserves
|
18
|
—
|
—
|
18
|
|||||
Sales
of proved reserves
|
—
|
—
|
—
|
—
|
|||||
Production
|
(216
|
)
|
(15
|
)
|
(30
|
)
|
(261
|
)
|
|
Balance
at December 31, 2007
|
2,672
|
208
|
963
|
3,843
|
|||||
Revisions
of previous estimates
|
(490
|
)
|
(26
|
)
|
328
|
(188
|
)
|
||
Improved
recovery
|
281
|
46
|
21
|
348
|
|||||
Extensions
and discoveries
|
76
|
—
|
—
|
76
|
|||||
Purchases
of proved reserves
|
832
|
—
|
—
|
832
|
|||||
Sales
of proved reserves
|
(3
|
)
|
—
|
—
|
(3
|
)
|
|||
Production
|
(215
|
)
|
(16
|
)
|
(76
|
)
|
(307
|
)
|
|
Balance
at December 31, 2008
|
3,153
|
212
|
1,236
|
4,601
|
|||||
Revisions
of previous estimates
|
(688
|
)
|
(40
|
)
|
281
|
(447
|
)
|
||
Improved
recovery
|
137
|
26
|
11
|
174
|
|||||
Extensions
and discoveries
|
362
|
2
|
—
|
364
|
|||||
Purchases
of proved reserves
|
67
|
—
|
736
|
803
|
|||||
Sales
of proved reserves
|
—
|
—
|
—
|
—
|
|||||
Production
|
(232
|
)
|
(17
|
)
|
(89
|
)
|
(338
|
)
|
|
Balance
at December 31, 2009
|
2,799
|
183
|
2,175
|
5,157
|
|||||
proved
developed reserves
|
|||||||||
December
31, 2006
|
1,940
|
137
|
560
|
2,637
|
|||||
December
31, 2007
|
1,997
|
140
|
932
|
3,069
|
|||||
December
31, 2008
|
1,866
|
142
|
1,206
|
3,214
|
|||||
December
31, 2009 (b)
|
1,931
|
125
|
1,759
|
3,815
|
|||||
proved
undeveloped reserves
|
|||||||||
December
31, 2006
|
484
|
57
|
546
|
1,087
|
|||||
December
31, 2007
|
675
|
68
|
31
|
774
|
|||||
December
31, 2008
|
1,287
|
70
|
30
|
1,387
|
|||||
December
31, 2009 (c)
|
868
|
58
|
416
|
1,342
|
(a)
|
Proved
reserve amounts relate to PSCs.
|
|
(b)
|
Approximately
two percent of the proved developed reserves at December 31, 2009 are
nonproducing, the majority of which are located in the United
States.
|
|
(c)
|
The
amount of Occidental's proved undeveloped reserves that have not been
developed for over five years was not material.
|
In
millions
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
||||||||
december 31, 2009
|
|||||||||||||
Proved
properties
|
$
|
24,488
|
$
|
5,743
|
$
|
10,909
|
$
|
41,140
|
|||||
Unproved
properties (b)
|
1,709
|
—
|
158
|
1,867
|
|||||||||
Total capitalized costs
(c)
|
26,197
|
5,743
|
11,067
|
43,007
|
|||||||||
Accumulated
depreciation, depletion and amortization
|
(7,956
|
)
|
(2,490
|
)
|
(4,826
|
)
|
(15,272
|
)
|
|||||
Net
capitalized costs
|
$
|
18,241
|
$
|
3,253
|
$
|
6,241
|
$
|
27,735
|
|||||
december
31, 2008
|
|||||||||||||
Proved
properties
|
$
|
22,425
|
$
|
5,177
|
$
|
9,490
|
$
|
37,092
|
|||||
Unproved
properties (b)
|
1,855
|
—
|
417
|
2,272
|
|||||||||
Total capitalized costs
(c)
|
24,280
|
5,177
|
9,907
|
39,364
|
|||||||||
Accumulated
depreciation, depletion and amortization
|
(6,669
|
)
|
(1,693
|
)
|
(4,021
|
)
|
(12,383
|
)
|
|||||
Net
capitalized costs
|
$
|
17,611
|
$
|
3,484
|
$
|
5,886
|
$
|
26,981
|
|||||
december
31, 2007
|
|||||||||||||
Proved
properties
|
$
|
18,872
|
$
|
4,204
|
$
|
7,935
|
$
|
31,011
|
|||||
Unproved
properties (b)
|
689
|
527
|
228
|
1,444
|
|||||||||
Total capitalized costs
(c)
|
19,561
|
4,731
|
8,163
|
32,455
|
|||||||||
Accumulated
depreciation, depletion and amortization
|
(5,779
|
)
|
(1,241
|
)
|
(3,268
|
)
|
(10,288
|
)
|
|||||
Net
capitalized costs
|
$
|
13,782
|
$
|
3,490
|
$
|
4,895
|
$
|
22,167
|
(a)
|
Includes
net capitalized cost of $31 million, $45 million and $36 million in 2009,
2008 and 2007, respectively, related to the noncontrolling interest in a
Colombian subsidiary.
|
|
(b)
|
The
2009 and 2008 amounts primarily consist of Midcontinent Gas, Permian,
California and Libya. The 2007 amount primarily consists of
California, Argentina and Libya.
|
|
(c)
|
Includes
costs related to leases, exploration costs, lease and well equipment,
other equipment, capitalized interest, asset retirement obligations and
other costs.
|
In
millions
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
||||||||
for the year ended december 31, 2009
|
|||||||||||||
Property
acquisition costs
|
|||||||||||||
Proved
properties
|
$
|
569
|
$
|
—
|
$
|
158
|
$
|
727
|
|||||
Unproved
properties
|
100
|
—
|
3
|
103
|
|||||||||
Exploration
costs
|
131
|
26
|
50
|
207
|
|||||||||
Development
costs
|
1,223
|
560
|
996
|
2,779
|
|||||||||
Costs
incurred
|
$
|
2,023
|
$
|
586
|
$
|
1,207
|
$
|
3,816
|
|||||
for
the year ended december 31, 2008
|
|||||||||||||
Property
acquisition costs
|
|||||||||||||
Proved
properties
|
$
|
1,819
|
$
|
8
|
$
|
4
|
$
|
1,831
|
|||||
Unproved
properties
|
1,362
|
—
|
348
|
1,710
|
|||||||||
Exploration
costs
|
130
|
96
|
115
|
341
|
|||||||||
Development
costs
|
1,740
|
864
|
1,496
|
4,100
|
|||||||||
Costs
incurred
|
$
|
5,051
|
$
|
968
|
$
|
1,963
|
$
|
7,982
|
|||||
for
the year ended december 31, 2007
|
|||||||||||||
Property
acquisition costs
|
|||||||||||||
Proved
properties
|
$
|
626
|
$
|
—
|
$
|
300
|
$
|
926
|
|||||
Unproved
properties
|
167
|
(58
|
)
|
10
|
119
|
||||||||
Exploration
costs
|
39
|
79
|
213
|
331
|
|||||||||
Development
costs
|
1,268
|
524
|
1,032
|
2,824
|
|||||||||
Costs
incurred
|
$
|
2,100
|
$
|
545
|
$
|
1,555
|
$
|
4,200
|
(a)
|
Includes
exploration and development costs of $0 and $13 million, $7 million and
$21 million, and $4 million and $19 million in 2009, 2008 and 2007,
respectively, related to the noncontrolling interest in a Colombian
subsidiary.
|
In
millions
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
||||||||
for the year ended december 31, 2009
|
|||||||||||||
Revenues
(b)
|
$
|
5,832
|
$
|
1,538
|
$
|
4,195
|
$
|
11,565
|
|||||
Production
costs
|
1,452
|
409
|
601
|
2,462
|
|||||||||
Other
operating expenses
|
389
|
116
|
208
|
713
|
|||||||||
Depreciation,
depletion and amortization
|
1,237
|
628
|
823
|
2,688
|
|||||||||
Taxes
other than on income
|
399
|
22
|
—
|
421
|
|||||||||
Charges
for impairments
|
—
|
170
|
—
|
170
|
|||||||||
Exploration
expenses
|
156
|
28
|
83
|
267
|
|||||||||
Pretax
income
|
2,199
|
165
|
2,480
|
4,844
|
|||||||||
Income
tax expense(c)
|
594
|
6
|
1,227
|
1,827
|
|||||||||
Results
of operations
|
$
|
1,605
|
$
|
159
|
$
|
1,253
|
$
|
3,017
|
|||||
for
the year ended december 31, 2008
|
|||||||||||||
Revenues
(b)
|
$
|
9,581
|
$
|
2,009
|
$
|
6,287
|
$
|
17,877
|
|||||
Production
costs
|
1,666
|
429
|
589
|
2,684
|
|||||||||
Other
operating expenses
|
350
|
44
|
159
|
553
|
|||||||||
Depreciation,
depletion and amortization
|
1,094
|
453
|
760
|
2,307
|
|||||||||
Taxes
other than on income
|
544
|
36
|
—
|
580
|
|||||||||
Charges
for impairments
|
—
|
476
|
81
|
557
|
|||||||||
Exploration
expenses
|
92
|
54
|
181
|
327
|
|||||||||
Pretax
income
|
5,835
|
517
|
4,517
|
10,869
|
|||||||||
Income
tax expense(c)
|
1,857
|
37
|
2,284
|
4,178
|
|||||||||
Results
of operations
|
$
|
3,978
|
$
|
480
|
$
|
2,233
|
$
|
6,691
|
|||||
for
the year ended december 31, 2007
|
|||||||||||||
Revenues
(b)
|
$
|
7,115
|
$
|
1,559
|
$
|
4,365
|
$
|
13,039
|
|||||
Production
costs
|
1,440
|
297
|
430
|
2,167
|
|||||||||
Other
operating expenses
|
265
|
117
|
185
|
567
|
|||||||||
Depreciation,
depletion and amortization
|
1,039
|
356
|
597
|
1,992
|
|||||||||
Taxes
other than on income
|
388
|
23
|
—
|
411
|
|||||||||
Charges
for impairment
|
58
|
—
|
—
|
58
|
|||||||||
Exploration
expenses
|
54
|
56
|
254
|
364
|
|||||||||
Pretax
income
|
3,871
|
710
|
2,899
|
7,480
|
|||||||||
Income
tax expense(c)
|
1,161
|
241
|
1,717
|
3,119
|
|||||||||
Results
of operations
|
$
|
2,710
|
$
|
469
|
$
|
1,182
|
$
|
4,361
|
(a)
|
Includes
revenues of $118 million, $209 million and $144 million, production costs
of $17 million, $21 million and $17 million, and results of operations of
$49 million, $116 million and $69 million in 2009, 2008 and 2007,
respectively, related to the noncontrolling interest in a Colombian
subsidiary.
|
|
(b)
|
Revenues
from net production exclude royalty payments and other
adjustments.
|
|
(c)
|
United
States federal income taxes reflect certain expenses related to oil and
gas activities allocated for United States income tax purposes only,
including allocated interest and corporate overhead.
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
|||||||||
for the year ended december 31, 2009
|
|||||||||||||
Revenues
from net production barrel of oil equivalent ($/bbl.)(b,c)
|
$
|
42.47
|
$
|
46.76
|
$
|
44.11
|
$
|
43.53
|
|||||
Production
costs
|
10.57
|
12.43
|
8.93
|
10.37
|
|||||||||
Other
operating expenses
|
2.83
|
3.53
|
3.09
|
3.00
|
|||||||||
Depreciation,
depletion and amortization
|
9.01
|
19.09
|
12.23
|
11.32
|
|||||||||
Taxes
other than on income
|
2.91
|
0.67
|
—
|
1.77
|
|||||||||
Charges
for impairments
|
—
|
5.17
|
—
|
0.72
|
|||||||||
Exploration
expenses
|
1.14
|
0.85
|
1.23
|
1.12
|
|||||||||
Pretax
income
|
16.01
|
5.02
|
18.63
|
15.23
|
|||||||||
Income
tax expense (d)
|
4.33
|
0.18
|
—
|
2.53
|
|||||||||
Results
of operations
|
$
|
11.68
|
$
|
4.84
|
$
|
18.63
|
$
|
12.70
|
|||||
for
the year ended december 31, 2008
|
|||||||||||||
Revenues
from net production barrel of oil equivalent ($/bbl.)(b,c)
|
$
|
72.51
|
$
|
66.79
|
$
|
71.16
|
$
|
71.37
|
|||||
Production
costs
|
12.61
|
14.26
|
9.98
|
12.13
|
|||||||||
Other
operating expenses
|
2.65
|
1.46
|
2.68
|
2.50
|
|||||||||
Depreciation,
depletion and amortization
|
8.28
|
15.06
|
12.87
|
10.43
|
|||||||||
Taxes
other than on income
|
4.12
|
1.20
|
—
|
2.62
|
|||||||||
Charges
for impairments
|
—
|
15.82
|
1.37
|
2.52
|
|||||||||
Exploration
expenses
|
0.70
|
1.80
|
3.12
|
1.48
|
|||||||||
Pretax
income
|
44.15
|
17.19
|
41.14
|
39.69
|
|||||||||
Income
tax expense (d)
|
14.05
|
1.23
|
3.95
|
9.61
|
|||||||||
Results
of operations
|
$
|
30.10
|
$
|
15.96
|
$
|
37.19
|
$
|
30.08
|
|||||
for
the year ended december 31, 2007
|
|||||||||||||
Revenues
from net production barrel of oil equivalent ($/bbl.)(b,c)
|
$
|
54.31
|
$
|
52.33
|
$
|
62.49
|
$
|
55.91
|
|||||
Production
costs
|
10.99
|
9.97
|
8.91
|
10.37
|
|||||||||
Other
operating expenses
|
2.02
|
3.93
|
3.81
|
2.71
|
|||||||||
Depreciation,
depletion and amortization
|
7.93
|
11.95
|
12.37
|
9.53
|
|||||||||
Taxes
other than on income
|
2.96
|
0.77
|
—
|
1.97
|
|||||||||
Charges
for impairments
|
0.44
|
—
|
—
|
0.28
|
|||||||||
Exploration
expenses
|
0.41
|
1.88
|
4.64
|
1.74
|
|||||||||
Pretax
income
|
29.56
|
23.83
|
32.76
|
29.31
|
|||||||||
Income
tax expense (d)
|
8.86
|
8.09
|
8.13
|
8.58
|
|||||||||
Results
of operations
|
$
|
20.70
|
$
|
15.74
|
$
|
24.63
|
$
|
20.73
|
(a)
|
Includes
the noncontrolling interest in a Colombian subsidiary.
|
|
(b)
|
Natural
gas volumes have been converted to barrels of oil equivalent (BOE) based
on energy content of six thousand cubic feet (Mcf) of gas to one barrel of
oil.
|
|
(c)
|
Revenues
from net production exclude royalty payments and other
adjustments.
|
|
(d)
|
United
States federal income taxes reflect certain expenses related to oil and
gas activities allocated for United States income tax purposes only,
including allocated interest and corporate overhead.
|
Standardized Measure of Discounted Future Net Cash
Flows
|
|||||||||||||
In
millions
|
|||||||||||||
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
|||||||||
at december 31, 2009
|
|||||||||||||
Future
cash inflows
|
$
|
96,997
|
$
|
9,892
|
$
|
32,344
|
$
|
139,233
|
|||||
Future
costs
|
|||||||||||||
Production
costs and other operating expenses
|
(42,352
|
)
|
(3,664
|
)
|
(7,605
|
)
|
(53,621
|
)
|
|||||
Development
costs (b)
|
(7,895
|
)
|
(1,456
|
)
|
(3,305
|
)
|
(12,656
|
)
|
|||||
Future
income tax expense
|
(13,386
|
)
|
(959
|
)
|
(10,010
|
)
|
(24,355
|
)
|
|||||
Future
net cash flows
|
33,364
|
3,813
|
11,424
|
48,601
|
|||||||||
Ten
percent discount factor
|
(18,348
|
)
|
(1,281
|
)
|
(4,009
|
)
|
(23,638
|
)
|
|||||
Standardized
measure of discounted future
|
|||||||||||||
net
cash flows
|
$
|
15,016
|
$
|
2,532
|
$
|
7,415
|
$
|
24,963
|
|||||
at
december 31, 2008
|
|||||||||||||
Future
cash inflows
|
$
|
75,267
|
$
|
9,667
|
$
|
17,053
|
$
|
101,987
|
|||||
Future
costs
|
|||||||||||||
Production
costs and other operating expenses
|
(38,315
|
)
|
(4,312
|
)
|
(6,960
|
)
|
(49,587
|
)
|
|||||
Development
costs (b)
|
(7,376
|
)
|
(1,698
|
)
|
(2,446
|
)
|
(11,520
|
)
|
|||||
Future
income tax expense
|
(6,867
|
)
|
(819
|
)
|
—
|
(7,686
|
)
|
||||||
Future
net cash flows
|
22,709
|
2,838
|
7,647
|
33,194
|
|||||||||
Ten
percent discount factor
|
(12,344
|
)
|
(1,025
|
)
|
(3,129
|
)
|
(16,498
|
)
|
|||||
Standardized
measure of discounted future
|
|||||||||||||
net
cash flows
|
$
|
10,365
|
$
|
1,813
|
$
|
4,518
|
$
|
16,696
|
|||||
at
december 31, 2007
|
|||||||||||||
Future
cash inflows
|
$
|
166,082
|
$
|
10,975
|
$
|
25,466
|
$
|
202,523
|
|||||
Future
costs
|
|||||||||||||
Production
costs and other operating expenses
|
(57,618
|
)
|
(3,315
|
)
|
(4,992
|
)
|
(65,925
|
)
|
|||||
Development
costs (b)
|
(5,797
|
)
|
(1,391
|
)
|
(1,967
|
)
|
(9,155
|
)
|
|||||
Future
income tax expense
|
(34,375
|
)
|
(2,059
|
)
|
(1,164
|
)
|
(37,598
|
)
|
|||||
Future
net cash flows
|
68,292
|
4,210
|
17,343
|
89,845
|
|||||||||
Ten
percent discount factor
|
(39,476
|
)
|
(1,347
|
)
|
(6,180
|
)
|
(47,003
|
)
|
|||||
Standardized
measure of discounted future
|
|||||||||||||
net
cash flows
|
$
|
28,816
|
$
|
2,863
|
$
|
11,163
|
$
|
42,842
|
(a)
|
Excludes
discounted future net cash flows of $89 million, $19 million and $172
million as of December 31, 2009, 2008 and 2007, respectively, related to
the noncontrolling interest in a Colombian subsidiary.
|
|
(b)
|
Includes
asset retirement costs.
|
Changes
in the Standardized Measure of Discounted Future
|
||||||||||
Net
Cash Flows From Proved Reserve Quantities
|
||||||||||
In
millions
|
||||||||||
For
the years ended December 31,
|
2009
|
2008
|
2007
|
|||||||
Beginning
of year
|
$
|
16,696
|
$
|
42,842
|
$
|
24,723
|
||||
Sales
and transfers of oil and gas produced, net of production costs and other
operating expenses
|
(7,869
|
)
|
(12,689
|
)
|
(9,203
|
)
|
||||
Net
change in prices received per barrel, net of production costs and other
operating expenses
|
16,473
|
(37,335
|
)
|
28,349
|
||||||
Extensions,
discoveries and improved recovery, net of future production and
development costs
|
3,743
|
2,271
|
6,636
|
|||||||
Change
in estimated future development costs
|
(1,353
|
)
|
(3,603
|
)
|
(3,008
|
)
|
||||
Revisions
of quantity estimates
|
3,214
|
(1,451
|
)
|
(2,214
|
)
|
|||||
Development
costs incurred during the period
|
2,814
|
4,107
|
2,900
|
|||||||
Accretion
of discount
|
1,950
|
5,383
|
3,097
|
|||||||
Net
change in income taxes
|
(9,396
|
)
|
13,418
|
(8,339
|
)
|
|||||
Purchases
and sales of reserves in place, net
|
325
|
854
|
1,801
|
|||||||
Changes
in production rates and other
|
(1,634
|
)
|
2,899
|
(1,900
|
)
|
|||||
Net
change
|
8,267
|
(26,146
|
)
|
18,119
|
||||||
End
of year
|
$
|
24,963
|
$
|
16,696
|
$
|
42,842
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
||||||||||
2009
|
||||||||||||||
Oil
|
–
Average sales price ($/bbl.)
|
$
|
56.74
|
$
|
49.43
|
$
|
58.75
|
(b)
|
$
|
55.97
|
||||
Gas
|
–
Average sales price ($/bbl.)
|
$
|
3.46
|
$
|
3.01
|
$
|
1.00
|
$
|
2.79
|
|||||
Average
oil and gas production cost ($/bbl.) (c)
|
$
|
10.57
|
$
|
12.43
|
$
|
8.93
|
$
|
10.37
|
(d)
|
|||||
2008
|
||||||||||||||
Oil
|
–
Average sales price ($/bbl.)
|
$
|
91.16
|
$
|
70.53
|
$
|
94.70
|
(b)
|
$
|
88.26
|
||||
Gas
|
–
Average sales price ($/bbl.)
|
$
|
8.03
|
$
|
4.43
|
$
|
1.01
|
$
|
6.10
|
|||||
Average
oil and gas production cost ($/bbl.) (c)
|
$
|
12.61
|
$
|
14.26
|
$
|
9.98
|
$
|
12.13
|
(d)
|
|||||
2007
|
||||||||||||||
Oil
|
–
Average sales price ($/bbl.)
|
$
|
65.67
|
$
|
56.66
|
$
|
69.24
|
(b)
|
$
|
64.77
|
||||
Gas
|
–
Average sales price ($/bbl.)
|
$
|
6.53
|
$
|
2.66
|
$
|
0.99
|
$
|
5.68
|
|||||
Average
oil and gas production cost ($/bbl.) (c)
|
$
|
10.99
|
$
|
9.97
|
$
|
8.91
|
$
|
10.37
|
(d)
|
(a)
|
Sales
prices include royalties with respect to certain of Occidental’s
interests.
|
|
(b)
|
Excludes
income taxes owed by Occidental but paid by governmental entities on its
behalf.
|
|
(c)
|
Natural
gas volumes have been converted to BOE based on energy content of six Mcf
of gas to one barrel of oil.
|
|
(d)
|
Excludes
taxes other than on income of $1.77, $2.62 and $1.97 for the years ended
December 31, 2009, 2008 and 2007, respectively.
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
||||||||||
2009
|
||||||||||||||
Oil –
|
Exploratory
|
5.5
|
7.0
|
0.7
|
13.2
|
|||||||||
Development
|
224.3
|
159.1
|
105.3
|
488.7
|
||||||||||
Gas
–
|
Exploratory
|
—
|
—
|
—
|
—
|
|||||||||
Development
|
14.5
|
—
|
2.0
|
16.5
|
||||||||||
Dry –
|
Exploratory
|
13.7
|
3.4
|
2.9
|
20.0
|
|||||||||
Development
|
1.8
|
0.7
|
0.7
|
3.2
|
||||||||||
2008
|
||||||||||||||
Oil –
|
Exploratory
|
6.6
|
16.6
|
2.0
|
25.2
|
|||||||||
Development
|
527.9
|
215.9
|
137.0
|
880.8
|
||||||||||
Gas
–
|
Exploratory
|
—
|
—
|
—
|
—
|
|||||||||
Development
|
223.5
|
—
|
1.3
|
224.8
|
||||||||||
Dry –
|
Exploratory
|
3.5
|
10.6
|
13.0
|
27.1
|
|||||||||
Development
|
10.9
|
5.7
|
—
|
16.6
|
||||||||||
2007
|
||||||||||||||
Oil –
|
Exploratory
|
2.5
|
9.0
|
—
|
11.5
|
|||||||||
Development
|
383.1
|
335.0
|
114.8
|
832.9
|
||||||||||
Gas
–
|
Exploratory
|
—
|
—
|
—
|
—
|
|||||||||
Development
|
84.7
|
—
|
8.5
|
93.2
|
||||||||||
Dry –
|
Exploratory
|
4.5
|
0.5
|
1.7
|
6.7
|
|||||||||
Development
|
1.4
|
0.8
|
2.4
|
4.6
|
(a)
|
Includes
exploratory and development wells completed by the noncontrolling interest
in a Colombian subsidiary.
|
Wells
at
December
31, 2009
|
United
States
|
(a)
|
Latin
America
|
(a,b)
|
Middle
East/
North
Africa
|
(a)
|
Total
|
|||||||||||
Oil –
|
Gross
(c)
|
25,875
|
(963
|
)
|
3,799
|
(2,622
|
)
|
2,399
|
(58
|
)
|
32,073
|
(3,643
|
)
|
|||||
Net
(d)
|
18,987
|
(704
|
)
|
2,970
|
(2,390
|
)
|
1,267
|
(34
|
)
|
23,224
|
(3,128
|
)
|
||||||
Gas
–
|
Gross
(c)
|
5,485
|
(284
|
)
|
161
|
(132
|
)
|
114
|
(1
|
)
|
5,760
|
(417
|
)
|
|||||
Net
(d)
|
4,550
|
(223
|
)
|
159
|
(132
|
)
|
59
|
(1
|
)
|
4,768
|
(356
|
)
|
(a)
|
The
numbers in parentheses indicate the number of wells with multiple
completions.
|
|
(b)
|
Includes
productive wells related to the noncontrolling interest in a Colombian
subsidiary.
|
|
(c)
|
The
total number of wells in which interests are owned.
|
|
(d)
|
The
sum of fractional interests.
|
Wells
at
December
31, 2009
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
|||||
Exploratory
and development wells
|
||||||||||
–
|
Gross
|
22
|
8
|
17
|
47
|
|||||
–
|
Net
|
16
|
7
|
9
|
32
|
(a)
|
Includes
the noncontrolling interest in a Colombian subsidiary.
|
Thousands
of acres at
December
31, 2009
|
United
States
|
Latin
America
|
(a)
|
Middle
East/
North
Africa
|
Total
|
|||||||||
Developed
(b)
|
||||||||||||||
–
|
Gross
(c)
|
5,628
|
572
|
1,480
|
7,680
|
|||||||||
–
|
Net
(d)
|
3,627
|
497
|
654
|
4,778
|
|||||||||
Undeveloped
(e)
|
||||||||||||||
–
|
Gross
(c)
|
2,885
|
2,403
|
17,934
|
23,222
|
|||||||||
–
|
Net
(d)
|
1,693
|
1,743
|
16,407
|
19,843
|
(a)
|
Includes
acreage related to the noncontrolling interest of a Colombian
subsidiary.
|
|
(b)
|
Acres
spaced or assigned to productive wells.
|
|
(c)
|
Total
acres in which interests are held.
|
|
(d)
|
Sum
of the fractional interests owned based on working interests, or interests
under PSCs and other economic arrangements.
|
|
(e)
|
Acres
on which wells have not been drilled or completed to a point that would
permit the production of commercial quantities of oil and gas, regardless
of whether the acreage contains proved reserves.
|
Sales
Volumes per Day
|
2009
|
2008
|
2007
|
|||||||
United
States
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
California
|
93
|
89
|
89
|
|||||||
Permian
|
168
|
168
|
167
|
|||||||
Midcontinent
Gas
|
10
|
6
|
4
|
|||||||
TOTAL
|
271
|
263
|
260
|
|||||||
Natural
gas (MMCF)
|
||||||||||
California
|
250
|
235
|
254
|
|||||||
Permian
|
199
|
181
|
186
|
|||||||
Midcontinent
Gas
|
186
|
171
|
153
|
|||||||
TOTAL
|
635
|
587
|
593
|
|||||||
Latin
America
|
||||||||||
Crude
oil (MBBL)
|
||||||||||
Argentina
|
37
|
32
|
32
|
|||||||
Colombia
(a)
|
39
|
37
|
37
|
|||||||
TOTAL
|
76
|
69
|
69
|
|||||||
Natural
gas (MMCF)
|
||||||||||
Argentina
|
30
|
21
|
22
|
|||||||
Bolivia
|
16
|
21
|
18
|
|||||||
TOTAL
|
46
|
42
|
40
|
|||||||
Middle
East/North Africa
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
Oman
|
39
|
23
|
20
|
|||||||
Dolphin
|
21
|
21
|
4
|
|||||||
Qatar
|
48
|
47
|
48
|
|||||||
Yemen
|
29
|
23
|
27
|
|||||||
Libya
|
7
|
15
|
22
|
|||||||
TOTAL
|
144
|
129
|
121
|
|||||||
Natural
gas (MMCF)
|
||||||||||
Oman
|
22
|
24
|
30
|
|||||||
Dolphin
|
213
|
184
|
51
|
|||||||
Bahrain
|
10
|
—
|
—
|
|||||||
TOTAL
|
245
|
208
|
81
|
|||||||
Total
Sales Volumes (MBOE) (b)
|
645
|
601
|
570
|
Production
per Day
|
2009
|
2008
|
2007
|
|||||||
United
States
|
||||||||||
Oil
and liquids (MBBL)
|
271
|
263
|
260
|
|||||||
Natural
gas (MMCF)
|
635
|
587
|
593
|
|||||||
Latin
America
|
||||||||||
Crude
oil (MBBL)
|
||||||||||
Argentina
|
36
|
34
|
33
|
|||||||
Colombia
(a)
|
39
|
38
|
36
|
|||||||
TOTAL
|
75
|
72
|
69
|
|||||||
Natural
gas (MMCF)
|
46
|
42
|
40
|
|||||||
Middle
East/North Africa
|
||||||||||
Oil
and liquids (MBBL)
|
||||||||||
Oman
|
39
|
23
|
19
|
|||||||
Dolphin
|
22
|
20
|
5
|
|||||||
Qatar
|
48
|
47
|
47
|
|||||||
Yemen
|
28
|
23
|
27
|
|||||||
Libya
|
6
|
15
|
21
|
|||||||
TOTAL
|
143
|
128
|
119
|
|||||||
Natural
gas (MMCF)
|
245
|
208
|
81
|
|||||||
Total
Production (MBOE) (b)
|
643
|
603
|
567
|
(a)
|
Excludes
sales and production volumes related to the noncontrolling interest in a
Colombian subsidiary.
|
|
(b)
|
Natural
gas volumes have been converted to BOE based on energy content of six Mcf
of gas to one barrel of oil.
|
Schedule II – Valuation and Qualifying
Accounts
|
Occidental
Petroleum Corporation
|
|
In
millions
|
and
Subsidiaries
|
Additions
|
||||||||||||||||
Balance
at
Beginning
of Period
|
Charged
to
Costs
and
Expenses
|
Charged
to
Other
Accounts
|
Deductions
|
(a)
|
Balance
at
End
of
Period
|
|||||||||||
2009
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
45
|
$
|
(7
|
)
|
$
|
—
|
|
$
|
(8
|
)
|
$
|
30
|
|||
Environmental
|
$
|
439
|
$
|
26
|
$
|
4
|
$
|
(66
|
)
|
$
|
403
|
|||||
Litigation,
tax and other reserves
|
225
|
2
|
(9
|
)
|
(55
|
)
|
163
|
|||||||||
$
|
664
|
$
|
28
|
$
|
(5
|
)
|
$
|
(121
|
)
|
$
|
566
|
(b)
|
||||
2008
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
35
|
$
|
11
|
$
|
—
|
$
|
(1
|
)
|
$
|
45
|
|||||
Environmental
|
$
|
457
|
$
|
29
|
$
|
25
|
$
|
(72
|
)
|
$
|
439
|
|||||
Litigation,
tax and other reserves
|
241
|
67
|
(9
|
)
|
(74
|
)
|
225
|
|||||||||
$
|
698
|
$
|
96
|
$
|
16
|
$
|
(146
|
)
|
$
|
664
|
(b)
|
|||||
2007
|
||||||||||||||||
Allowance
for doubtful accounts
|
$
|
15
|
$
|
7
|
$
|
13
|
$
|
—
|
$
|
35
|
||||||
Environmental
|
$
|
412
|
$
|
108
|
$
|
5
|
|
$
|
(68
|
)
|
$
|
457
|
||||
Litigation,
tax and other reserves
|
243
|
24
|
(5
|
)
|
(21
|
)
|
241
|
|||||||||
$
|
655
|
$
|
132
|
$
|
—
|
$
|
(89
|
)
|
$
|
698
|
(b)
|
(a)
|
Primarily
represents payments.
|
|
(b)
|
Of
these amounts, $119 million, $130 million and $139 million in 2009, 2008
and 2007, respectively, are classified as current.
|
Item 9
|
Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure
|
Item 9a
|
Controls and
Procedures
|
Item 10
|
Directors, Executive Officers and Corporate
Governance
|
Item 11
|
Executive
Compensation
|
Item 12
|
Security Ownership of Certain Beneficial Owners and
Management
|
Item 13
|
Certain Relationships and Related Transactions and Director
Independence
|
Item 14
|
Principal Accountant Fees and
Services
|
Item 15
|
Exhibits and Financial Statement
Schedules
|
Ÿ
|
should
not be treated as categorical statements of fact, but rather as a way of
allocating the risk among the parties if those statements prove to be
inaccurate;
|
Ÿ
|
have
been qualified by disclosures that were made to the other party in
connection with the negotiation of the applicable agreement, which
disclosures are not necessarily reflected in the
agreement;
|
Ÿ
|
may
apply standards of materiality in a way that is different from the way
investors may view materiality; and
|
Ÿ
|
were
made only as of the date of the applicable agreement or such other date or
dates as may be specified in the agreement and are subject to more recent
developments.
|
2.1*
|
Agreement
and Plan of Merger among Occidental Petroleum Corporation, Occidental
Transaction 1, LLC and Vintage Petroleum, Inc., dated as of October 13,
2005. (Disclosure schedules to this agreement have been omitted pursuant
to Item 601(b)(2) of Regulation S-K) (filed as Exhibit 2.1 to the Current
Report on Form 8-K of Occidental dated October 13, 2005 (filed October 17,
2005), File No. 1-9210).
|
||
3.(i)*
|
Restated
Certificate of Incorporation of Occidental, dated November 12, 1999 (filed
as Exhibit 3.(i) to the Annual Report on Form 10-K of Occidental for the
fiscal year ended December 31, 1999, File No. 1-9210).
|
||
3.(i)(a)*
|
Certificate
of Change of Location of Registered Office and of Registered Agent, dated
July 6, 2001 (filed as Exhibit 3.1(i) to the Registration Statement on
Form S-3 of Occidental, File No. 333-82246).
|
||
3.(i)(b)*
|
Certificate
of Amendment of Restated Certificate of Incorporation of Occidental
Petroleum Corporation, dated May 5, 2006 (filed as Exhibit 3.(i)(b) to the
Annual Report on Form 10-K of Occidental for the fiscal year ended
December 31, 2006, File No.1-9210).
|
||
3.(i)(c)*
|
Certificate
of Amendment of Restated Certificate of Incorporation of Occidental
Petroleum Corporation, dated May 1, 2009 (filed as Exhibit 3.(i)(c) to the
Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended
June 30, 2009, File No. 1-9210).
|
||
3.(ii)*
|
Bylaws
of Occidental, as amended through May 1, 2009 (filed as Exhibit 3.(ii) to
the Current Report on Form 8-K of Occidental dated May 1, 2009 (date of
earliest event reported), File No. 1-9210).
|
||
4.1*
|
Occidental
Petroleum Corporation Amended and Restated Five-Year Credit Agreement,
dated as of September 27, 2006, among Occidental; J.P. Morgan Securities
Inc. and Citigroup Global Markets Inc., as Co-Arrangers and Joint
Bookrunners; JPMorgan Chase Bank, N.A. and Citibank, N.A., as
Co-Syndication Agents, BNP Paribas, Bank of America, N.A., Barclays Bank
PLC and The Royal Bank of Scotland plc, as Co-Documentation Agents, The
Bank of Nova Scotia, as Administrative Agent (filed as Exhibit 4.1 to the
Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended
September 30, 2006, File No. 1-9210).
|
||
4.2*
|
Indenture
(Senior Debt Securities), dated as of April 1, 1998, between Occidental
and The Bank of New York, as Trustee (filed as Exhibit 4 to the
Registration Statement on Form S-3 of Occidental, File No.
333-52053).
|
||
4.3*
|
Specimen
certificate for shares of Common Stock (filed as Exhibit 4.9 to the
Registration Statement on Form S-3 of Occidental, File No.
333-82246).
|
||
4.4*
|
Form
of Officers’ Certificate, dated October 21, 2008, establishing the terms
and form of the 7% Notes due 2013 (filed as Exhibit 4.1 to the Current
Report on Form 8-K of Occidental dated October 16, 2008 (date of earliest
event reported), File No. 1-9210).
|
||
4.5*
|
Form
of 7% Note due 2013 (filed as Exhibit 4.2 to the Current Report on Form
8-K of Occidental dated October 16, 2008 (date of earliest event
reported), File No. 1-9210).
|
||
4.6*
|
Form
of Officers’ Certificate, dated May 15, 2009, establishing the terms and
form of the 4.125% Notes due 2016 (filed as Exhibit 4.1 to the Current
Report on Form 8-K of Occidental dated May 12, 2009 (date of earliest
event reported), File No. 1-9210).
|
||
4.7*
|
Form
of 4.125% Note due 2016 (filed as Exhibit 4.2 to the Current Report on
Form 8-K of Occidental dated May 12, 2009 (date of earliest event
reported), File No. 1-9210).
|
||
4.8
|
Instruments
defining the rights of holders of other long-term debt of Occidental and
its subsidiaries are not being filed since the total amount of securities
authorized under each of such instruments does not exceed 10 percent of
the total assets of Occidental and its subsidiaries on a consolidated
basis. Occidental agrees to furnish a copy of any such instrument to the
Commission upon request.
|
||
All
of the Exhibits numbered 10.1 to 10.62 are management contracts and
compensatory plans required to be identified specifically as responsive to
Item 601(b)(10)(iii)(A) of Regulation S-K pursuant to Item 15(b) of Form
10-K.
|
|||
10.1*
|
Amended
and Restated Employment Agreement, dated as of October 9, 2008, between
Occidental and Dr. Ray R. Irani (filed as Exhibit 10.1 to the Quarterly
Report on Form 10-Q of Occidental for the quarterly period ended September
30, 2008, File No. 1-9210).
|
10.2*
|
Employment
Agreement, dated January 28, 2010, between Occidental and Stephen I.
Chazen (filed as Exhibit 10.1 to the Current Report on Form 8-K of
Occidental dated January 28, 2010, File No. 1-9210).
|
|
10.3*
|
Amended
and Restated Employment Agreement, dated October 9, 2008, between
Occidental and Donald P. de Brier (filed as Exhibit 10.3 to the Quarterly
Report on Form 10-Q of Occidental for the quarterly period ended September
30, 2008, File No. 1-9210).
|
|
10.4*
|
Form
of Indemnification Agreement between Occidental and each of its directors
and certain executive officers (filed as Exhibit B to the Proxy Statement
of Occidental for its May 21, 1987, Annual Meeting of Stockholders, File
No. 1-9210).
|
|
10.5*
|
Occidental
Petroleum Corporation Split Dollar Life Insurance Program and Related
Documents (filed as Exhibit 10.2 to the Quarterly Report on Form 10-Q of
Occidental for the quarterly period ended September
30, 1994, File No. 1-9210).
|
|
10.6*
|
Split
Dollar Life Insurance Agreement, dated January 24, 2002, by and between
Occidental and Donald P. de Brier (filed as Exhibit 10.1 to the
Quarterly Report on Form 10-Q of Occidental for the quarterly period ended
March 31, 2002, File No. 1-9210).
|
|
10.7*
|
Occidental
Petroleum Insured Medical Plan, as amended and restated effective April
29, 1994, amending and restating the Occidental Petroleum Corporation
Executive Medical Plan (as amended and restated effective April 1, 1993)
(filed as Exhibit 10 to the Quarterly Report on Form 10-Q of Occidental
for the quarterly period ending March 31, 1994, File No.
1-9210).
|
|
10.8*
|
Form
of Occidental Petroleum Corporation Modified Deferred Compensation Plan
(Effective December 31, 2006, Amended and Restated Effective November 1,
2008) (filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of
Occidental for the quarterly period ended September 30, 2008, File No.
1-9210).
|
|
10.9*
|
Form
of Occidental Petroleum Corporation Amendment to Senior Executive
Supplemental Life Insurance Plan (Effective as of January 1, 1986, Amended
and Restated Effective as of January 1, 1996) (filed as Exhibit 10.5 to
the Quarterly Report on Form 10-Q of Occidental for the quarterly period
ended September 30, 2008, File No. 1-9210).
|
|
10.10*
|
Form
of Occidental Petroleum Corporation Amendment to Senior Executive Survivor
Benefit Plan (Effective as of January 1, 1986, Amended and Restated
Effective as of January 1, 1996) (filed as Exhibit 10.6 to the Quarterly
Report on Form 10-Q of Occidental for the quarterly period ended September
30, 2008, File No. 1-9210).
|
|
10.11*
|
Occidental
Petroleum Corporation 1996 Restricted Stock Plan for Non-Employee
Directors, amended October 11, 2007 (filed as Exhibit 10.1 to the
Quarterly Report on Form 10-Q of Occidental for the quarterly period ended
September 30, 2007, File No. 1-9210).
|
|
10.12*
|
Form
of Restricted Stock Option Assignment under Occidental Petroleum
Corporation 1996 Restricted Stock Plan for Non-Employee Directors (filed
as Exhibit 99.2 to the Registration Statement on Form S-8 of Occidental,
File No. 333-02901).
|
|
10.13*
|
Form
of Restricted Stock Agreement under Occidental Petroleum Corporation 1996
Restricted Stock Plan for Non-Employee Directors (filed as Exhibit 10.3 to
the Quarterly Report on Form 10-Q of Occidental for the quarterly period
ended March 31, 2003, File No. 1-9210).
|
|
10.14*
|
Amendment
to Form of Restricted Stock Agreement under Occidental Petroleum
Corporation 1996 Restricted Stock Plan for Non-Employee Directors (filed
as Exhibit 10.2 to the Quarterly Report on Form 10-Q of Occidental for the
quarterly period ended September 30, 2007, File No.
1-9210).
|
|
10.15*
|
Form
of Occidental Petroleum Corporation Supplemental Retirement Plan II
(Effective as of January 1, 2005, Amended and Restated as of November 1,
2008) (filed as Exhibit 10.7 to the Quarterly Report on Form 10-Q of
Occidental for the quarterly period ended September 30, 2008, File No.
1-9210).
|
|
10.16
|
Amendment
Number 1 to the Occidental Petroleum Corporation Supplemental Retirement
Plan II (Effective as of January 1, 2005, Amended and Restated as of
November 1, 2008).
|
|
10.17
|
Amendment
Number 2 to the Occidental Petroleum Corporation Supplemental Retirement
Plan II (Effective as of January 1, 2005, Amended and Restated as of
November 1, 2008).
|
|
10.18*
|
Occidental
Petroleum Corporation 2001 Incentive Compensation Plan (as amended through
September 12, 2002) (filed as Exhibit 10.2 to the Quarterly Report on Form
10-Q of Occidental for the quarterly period ended September 30, 2002, File
No. 1-9210).
|
|
10.19*
|
Form
of Incentive Stock Option Agreement under Occidental Petroleum Corporation
2001 Incentive Compensation Plan (filed as Exhibit 10.1 to the Quarterly
Report on Form 10-Q of Occidental for the quarterly period ended September
30, 2001, File No. 1-9210).
|
|
10.20*
|
Form
of Nonqualified Stock Option Agreement under Occidental Petroleum
Corporation 2001 Incentive Compensation Plan (filed as Exhibit 10.2 to the
Quarterly Report on Form 10-Q of Occidental for the quarterly period ended
September 30, 2001, File No. 1-9210).
|
|
10.21*
|
Form
of Incentive Stock Option Agreement under Occidental Petroleum Corporation
2001 Incentive Compensation Plan (July 2002 version) (filed as Exhibit
10.4 to the Quarterly Report on Form 10-Q of Occidental for the quarterly
period ended September 30, 2002, File No. 1-9210).
|
|
10.22*
|
Form
of Nonqualified Stock Option Agreement under Occidental Petroleum
Corporation 2001 Incentive Compensation Plan (July 2002 version) (filed as
Exhibit 10.5 to the Quarterly Report on Form 10-Q of Occidental for the
quarterly period ended September 30, 2002, File No.
1-9210).
|
|
10.23*
|
Terms
and Conditions for Incentive Stock Option Award under Occidental Petroleum
Corporation 2001 Incentive Compensation Plan (July 2003 version) (filed as
Exhibit 10.3 to the Quarterly Report on Form 10-Q of Occidental for the
quarterly period ended June 30, 2003, File No.
1-9210).
|
10.24*
|
Terms
and Conditions for Nonqualified Stock Option Award under Occidental
Petroleum Corporation 2001 Incentive Compensation Plan (July 2003 version)
(filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental
for the quarterly period ended June 30, 2003, File No.
1-9210).
|
|
10.25*
|
Terms
and Conditions of Stock Appreciation Rights Award under Occidental
Petroleum Corporation 2001 Incentive Compensation Plan (filed as Exhibit
10.3 to the Quarterly Report on Form 10-Q of Occidental for the fiscal
quarter ended June 30, 2004, File No. 1-9210).
|
|
10.26*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit 99.1
to the Registration Statement on Form S-8 of Occidental, File No.
333-124732).
|
|
10.27*
|
Terms
and Conditions of Stock Appreciation Rights Award under Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit
10.12 to the Quarterly Report on Form 10-Q of Occidental for the quarterly
period ended June 30, 2005, File No. 1-9210).
|
|
10.28*
|
Agreement
to Amend Outstanding Option Awards, dated October 26, 2005 (filed as
Exhibit 10.2 to the Quarterly Report on Form 10-Q of Occidental for the
quarterly period ended September 30, 2005, File No.
1-9210).
|
|
10.29*
|
Terms
and Conditions of Restricted Share Unit Award (mandatory deferred issuance
of shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
Plan (December 2005 version) (filed as Exhibit 10.62 to the Annual Report
on Form 10-K of Occidental for the fiscal year ended December 31, 2005,
File No. 1-9210).
|
|
10.30*
|
Global
Restricted Stock Unit Amendment to the 2005 Terms and Conditions (filed as
Exhibit 10.5 to the Current Report on Form 8-K of Occidental dated October
12, 2006 (date of earliest event reported), File No.
1-9210).
|
|
10.31*
|
Terms
and Conditions of Performance-Based Stock Award (deferred issuance of
shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
Plan (January 2006 version – Corporate) (filed as Exhibit 10.63 to the
Annual Report on Form 10-K of Occidental for the fiscal year ended
December 31, 2005, File No. 1-9210).
|
|
10.32*
|
Terms
and Conditions of Performance-Based Stock Award (deferred issuance of
shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
Plan (January 2006 version – Oil and Gas) (filed as Exhibit 10.64 to the
Annual Report on Form 10-K of Occidental for the fiscal year ended
December 31, 2005, File No. 1-9210).
|
|
10.33*
|
Terms
and Conditions of Performance-Based Stock Award (deferred issuance of
shares) under Occidental Petroleum Corporation 2005 Long-Term Incentive
Plan (January 2006 version – Chemicals) (filed as Exhibit 10.65 to the
Annual Report on Form 10-K of Occidental for the fiscal year ended
December 31, 2005, File No. 1-9210).
|
|
10.34*
|
Terms
and Conditions of Stock Appreciation Rights (SARs) under Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan (July 2006 version)
(filed as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental
for the quarterly period ended June 30, 2006, File No.
1-9210).
|
|
10.35*
|
Form
of Occidental Petroleum Corporation 2005 Deferred Stock Program
(Restatement Effective as of November 1, 2008) (filed as Exhibit 10.8 to
the Quarterly Report on Form 10-Q of Occidental for the quarterly period
ended September 30, 2008, File No. 1-9210).
|
|
10.36*
|
Occidental
Petroleum Corporation Executive Incentive Compensation Plan (filed as
Exhibit 10.69 to the Annual Report on Form 10-K of Occidental for the
fiscal year ended December 31, 2005, File No. 1-9210).
|
|
10.37*
|
Description
of financial counseling program (filed as Exhibit 10.50 to the Annual
Report on Form 10-K of Occidental for the fiscal year ended December 31,
2003, File No. 1-9210).
|
|
10.38*
|
Description
of group excess liability insurance program (filed as Exhibit 10.51 to the
Annual Report on Form 10-K of Occidental for the fiscal year ended
December 31, 2003, File No. 1-9210).
|
|
10.39*
|
Executive
Stock Ownership Guidelines (filed as Exhibit 10.1 to the Quarterly Report
on Form 10-Q of Occidental for the quarterly period ended March 31, 2005,
File No. 1-9210).
|
|
10.40*
|
Form
of Restricted Stock Award for Non-Employee Directors under Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan (filed as Exhibit 10.1
to the Current Report on Form 8-K of Occidental dated February 16, 2006
(date of earliest event reported), filed February 22, 2006, File No.
1-9210).
|
|
10.41*
|
Amendment
to Form of Restricted Stock Award for Non-Employee Directors under
Occidental Petroleum Corporation 2005 Long-Term Incentive Plan (filed as
Exhibit 10.3 to the Quarterly Report on Form 10-Q of Occidental for the
fiscal quarter ended September 30, 2007, File No.
1-9210).
|
|
10.42*
|
Form
of Restricted Stock Award for Non-Employee Directors under Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan (2007 version) (filed
as Exhibit 10.4 to the Quarterly Report on Form 10-Q of Occidental for the
fiscal quarter ended September 30, 2007, File No.
1-9210).
|
|
10.43*
|
Director
Retainer and Attendance Fees (filed as Exhibit 10.2 to the Current Report
on Form 8-K of Occidental dated February 16, 2006 (date of earliest event
reported), filed February 22, 2006, File No. 1-9210).
|
|
10.44*
|
Terms
and Conditions of Performance-Based Stock Award under Occidental Petroleum
Corporation 2005 Long-Term Incentive Plan (January 2007 version –
Corporate) (filed as Exhibit 10.68 to the Annual Report on Form 10-K of
Occidental for the fiscal year ended December 31, 2006, File No.
1-9210).
|
|
10.45*
|
Terms
and Conditions of Performance-Based Stock Award under Occidental Petroleum
Corporation 2005 Long-Term Incentive Plan (January 2007 version – Oil and
Gas) (filed as Exhibit 10.69 to the Annual Report on Form 10-K of
Occidental for the fiscal year ended December 31, 2006, File No.
1-9210).
|
|
10.46*
|
Terms
and Conditions of Performance-Based Stock Award under Occidental Petroleum
Corporation 2005 Long-Term Incentive Plan (January 2007 version –
Chemicals) (filed as Exhibit 10.70 to the Annual Report on Form 10-K of
Occidental for the fiscal year ended December 31, 2006, File No.
1-9210).
|
|
10.47*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Return On Equity
Incentive Award (Cash-based, Cash-settled Award) (filed as Exhibit 10.1 to
the Current Report on Form 8-K of Occidental dated July 18, 2007 (date of
earliest event reported), File No.
1-9210).
|
10.48*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Total Shareholder
Return Incentive Award Agreement (Equity-based, Equity and Cash-Settled
Award) (filed as Exhibit 10.2 to the Current Report on Form 8-K of
Occidental dated July 18, 2007 (date of earliest event reported), File No.
1-9210).
|
|
10.49*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Long-Term Incentive
Award Agreement (Equity-based, Cash-Settled Award) (filed as Exhibit 10.3
to the Current Report on Form 8-K of Occidental dated July 18, 2007 (date
of earliest event reported), File No. 1-9210).
|
|
10.50*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Oil And Gas
Corporation Return On Assets Incentive Award Agreement (Cash-Based,
Cash-Settled Award) (filed as Exhibit 10.5 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2007, File No.
1-9210).
|
|
10.51*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Chemical
Corporation Return On Assets Incentive Award Agreement (Cash-Based,
Cash-Settled Award) (filed as Exhibit 10.6 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2007, File No.
1-9210).
|
|
10.52*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Return on Equity
Incentive Award (Cash-based, Cash-settled Award) (filed as Exhibit 10.1 to
the Current Report On Form 8-K of Occidental dated July 16, 2008 (date of
earliest event reported), File No. 1-9210).
|
|
10.53*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Total Shareholder
Return Incentive Award Agreement (Equity-based, Equity and Cash-settled
Award) (filed as Exhibit 10.2 to the Current Report On Form 8-K of
Occidental dated July 16, 2008 (date of earliest event reported), File No.
1-9210).
|
|
10.54*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Long-Term Incentive
Award Agreement (Equity-based, Cash-settled Award) (filed as Exhibit 10.4
to the Quarterly Report on Form 10-Q of Occidental for the fiscal quarter
ended June 30, 2008, File No. 1-9210).
|
|
10.55*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Oil and Gas
Corporation Return on Assets Incentive Award Agreement (Cash-based,
Cash-settled Award) (filed as Exhibit 10.5 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2008, File No.
1-9210).
|
|
10.56*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Chemical
Corporation Return on Assets Incentive Award Agreement (Cash-based,
Cash-settled Award) (filed as Exhibit 10.6 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2008, File No.
1-9210).
|
|
10.57*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Return on Equity
Incentive Award Agreement (Cash-based, Cash-settled Award) (filed as
Exhibit 10.1 to the Current Report on Form 8-K of Occidental dated July
15, 2009 (Date of Earliest Event Reported), File No.
1-9120).
|
|
10.58*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Total Shareholder
Return Incentive Award Agreement (Equity-based, Equity and Cash-settled
Award) (filed as Exhibit 10.2 to the Current Report on Form 8-K of
Occidental dated July 15, 2009 (Date of Earliest Event Reported), File No.
1-9210).
|
|
10.59*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Chemical
Corporation Return on Assets Incentive Award Agreement (Cash-based,
Cash-settled Award) (filed as Exhibit 10.3 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2009, File No.
1-9210).
|
|
10.60*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Occidental Oil and Gas
Corporation Return on Assets Incentive Award Agreement (Cash-based,
Cash-settled Award) (filed as Exhibit 10.4 to the Quarterly Report on Form
10-Q of Occidental for the fiscal quarter ended June 30, 2009, File No.
1-9210).
|
|
10.61*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Long-Term Incentive
Award Terms and Conditions (Equity-based, Cash-settled Award) (filed as
Exhibit 10.5 to the Quarterly Report on Form 10-Q of Occidental for the
fiscal quarter ended June 30, 2009, File No. 1-9210).
|
|
10.62*
|
Occidental
Petroleum Corporation 2005 Long-Term Incentive Plan Long-Term Incentive
Award Terms and Conditions (Equity-based, Cash-settled Award) (alternate –
CV) (filed as Exhibit 10.6 to the Quarterly Report on Form 10-Q of
Occidental for the fiscal quarter ended June 30, 2009, File No.
1-9210).
|
|
12
|
Statement
regarding computation of total enterprise ratios of earnings to fixed
charges for each of the five years in the period ended December 31,
2009.
|
|
21
|
List
of subsidiaries of Occidental at December 31, 2009.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
23.2
|
Consent
of Independent Petroleum Engineers.
|
|
31.1
|
Certification
of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
Certification
of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certifications
of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
99.1
|
Ryder
Scott Company Report on Reserves Procedures and
Methodologies.
|
|
101.INS |
XBRL
Instance Document.
|
|
101.SCH |
XBRL
Taxonomy Extension Schema Document.
|
|
101.CAL |
XBRL
Taxonomy Extension Calculation Linkbase Document.
|
|
101.LAB |
XBRL
Taxonomy Extension Label Linkbase Document.
|
|
101.PRE |
XBRL
Taxonomy Extension Presentation Linkbase Document.
|
|
101.DEF |
XBRL
Taxonomy Extension Definition Linkbase
Document.
|
OCCIDENTAL
PETROLEUM CORPORATION
|
||
February
25, 2010
|
By:
|
/s/ Ray
R. Irani
|
Ray
R. Irani
|
||
Chairman
of the Board of Directors
|
||
and
Chief Executive Officer
|
Title
|
Date
|
|
/s/ Ray
R. Irani
|
||
Ray
R. Irani
|
Chairman
of the Board of Directors
|
February
25, 2010
|
and
Chief Executive
Officer
|
||
/s/ Stephen
I. Chazen
|
||
Stephen
I. Chazen
|
President
and Chief Financial Officer
|
February
25, 2010
|
/s/ Roy
Pineci
|
||
Roy
Pineci
|
Vice
President, Controller and
|
February
25, 2010
|
Principal
Accounting Officer
|
||
/s/ Spencer
Abraham
|
||
Spencer
Abraham
|
Director
|
February
25, 2010
|
/s/ Ronald
W. Burkle
|
||
Ronald
W. Burkle
|
Director
|
February
25, 2010
|
/s/ John
S. Chalsty
|
||
John
S. Chalsty
|
Director
|
February
25, 2010
|
/s/ Edward
P. Djerejian
|
||
Edward
P. Djerejian
|
Director
|
February
25, 2010
|
/s/ John
E. Feick
|
||
John
E. Feick
|
Director
|
February
25, 2010
|
/s/ Carlos
M. Gutierrez
|
||
Carlos
M. Gutierrez
|
Director
|
February
25, 2010
|
Title
|
Date
|
|
/s/ Irvin
W. Maloney
|
||
Irvin
W. Maloney
|
Director
|
February
25, 2010
|
/s/Avedick
B. Poladian
|
||
Avedick
B. Poladian
|
Director
|
February
25, 2010
|
/s/ Rodolfo
Segovia
|
||
Rodolfo
Segovia
|
Director
|
February
25, 2010
|
/s/ Aziz
D. Syriani
|
||
Aziz
D. Syriani
|
Director
|
February
25, 2010
|
/s/ Rosemary
Tomich
|
||
Rosemary
Tomich
|
Director
|
February
25, 2010
|
/s/ Walter
L. Weisman
|
||
Walter
L. Weisman
|
Director
|
February
25, 2010
|
10.16
|
Amendment
Number 1 to the Occidental Petroleum Corporation Supplemental Retirement
Plan II (Effective as of January 1, 2005, Amended and Restated as of
November 1, 2008).
|
|
10.17 |
Amendment
Number 2 to the Occidental Petroleum Corporation Supplemental Retirement
Plan II (Effective as of January 1, 2005, Amended and Restated as of
November 1, 2008).
|
|
12
|
Statement
regarding computation of total enterprise ratios of earnings to fixed
charges for each of the five years in the period ended December 31,
2009.
|
|
21
|
List
of subsidiaries of Occidental at December 31, 2009.
|
|
23.1
|
Consent
of Independent Registered Public Accounting Firm.
|
|
23.2
|
Consent
of Independent Petroleum Engineers.
|
|
31.1
|
Certification
of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
Certification
of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certifications
of CEO and CFO Pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
99.1
|
Ryder
Scott Company Report on Reserves Procedures and
Methodologies.
|
|
101.INS |
XBRL
Instance Document.
|
|
101.SCH |
XBRL
Taxonomy Extension Schema Document.
|
|
101.CAL |
XBRL
Taxonomy Extension Calculation Linkbase Document.
|
|
101.LAB |
XBRL
Taxonomy Extension Label Linkbase Document.
|
|
101.PRE |
XBRL
Taxonomy Extension Presentation Linkbase Document.
|
|
101.DEF |
XBRL
Taxonomy Extension Definition Linkbase
Document.
|