•Strong operational performance drove cash flow from operations of $2.9 billion and cash flow from operations before working capital of $3.2 billion

•Capital spending of $1.5 billion, resulting in quarterly free cash flow before working capital of $1.7 billion

•Production of 1,220 Mboed exceeded the mid-point of guidance by 40 Mboed; full-year production guidance raised to 1,195 Mboed

•Repurchased $752 million of common stock, accounting for over 25% of the $3.0 billion repurchase program

•Triggered the redemption of $647 million of preferred stock, initiating the next phase of shareholder return framework

•OxyChem approximated guidance with pre-tax income of $472 million; full-year guidance raised to $1.5 billion

•Earnings per diluted share of $1.00 and adjusted earnings per diluted share of $1.09

HOUSTON — May 9, 2023 — Occidental (NYSE: OXY) today announced net income attributable to common stockholders for the first quarter of 2023 of $983 million, or $1.00 per diluted share, and adjusted income attributable to common stockholders of $1.1 billion, or $1.09 per diluted share.

"In the first quarter of 2023, our shareholder return framework reached a significant milestone as we began redeeming the preferred equity, further advancing the transfer of enterprise value to our common shareholders,” said President and Chief Executive Officer Vicki Hollub. "Our teams continue to deliver outstanding operational performance, which drives our financial success. We are well-positioned to build on the successful first quarter and have raised full-year guidance for Oil & Gas production, as well as OxyChem pre-tax earnings."

Oil and gas pre-tax income for the first quarter of 2023 was $1.6 billion, compared to pre-tax income of $2.5 billion for the fourth quarter of 2022. The first quarter results included a $26 million gain from a litigation settlement. Excluding items affecting comparability, first quarter oil and gas income declined due to lower worldwide crude oil, natural gas liquids (NGL) and domestic natural gas prices and lower crude oil volumes. For the first quarter of 2023, average WTI and Brent marker prices were $76.13 per barrel and $82.20 per barrel, respectively. Average worldwide realized crude oil prices decreased by approximately 11% from the prior quarter to $74.22 per barrel. Average worldwide realized NGL prices decreased by approximately 7% from the prior quarter to $24.41 per barrel. Average domestic realized gas prices decreased by approximately 32% from the prior quarter to $3.01 per Mcf.

Total average global production of 1,220 thousand barrels of oil equivalent per day (Mboed) for the first quarter exceeded the midpoint of guidance by 40 Mboed. Permian, Rockies & Other Domestic, Gulf of Mexico and International average daily production volumes all exceeded guidance at 579 Mboed, 264 Mboed, 171 Mboed and 206 Mboed, respectively.

OxyChem pre-tax income of $472 million for the first quarter of 2023 approximated guidance. Compared to fourth quarter of 2022 income of $457 million, first quarter results reflected lower costs for raw material ethylene and energy, partially offset by lower realized caustic soda and PVC pricing.

Midstream and marketing pre-tax income for the first quarter of 2023 was $2 million, compared to a loss of $45 million for the fourth quarter of 2022. The first quarter results included $8 million of derivative losses and $26 million of asset impairments included in equity method investment income. WES adjusted equity method investment income for the first quarter was $118 million. Excluding items affecting comparability, the increase in midstream and marketing pre-tax first quarter results reflected the timing impact of crude oil sales and favorable gas margins due to transportation capacity optimization in the marketing business, partially offset by lower equity method investment income from WES.

This press release refers to adjusted income (loss), cash flow from continuing operations before working capital and free cash flow, which are supplemental measures not calculated in accordance with generally accepted accounting principles in the United States (GAAP). These Non-GAAP financial measures have limitations as analytical tools and should not be considered in isolation or as an alternative to the comparable GAAP financial measures. Definitions of adjusted income (loss) and a reconciliation to net income (loss), along with cash flow from continuing operations before working capital and free cash flow and a reconciliation to the comparable GAAP financial measures, are included in the financial schedules of this press release. Occidental’s definition of adjusted income (loss), cash flow from continuing operations before working capital and free cash flow may differ from similarly titled measures provided by other companies in our industry and as a result may not be comparable.

Occidental is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world. Visit oxy.com for more information.

This press release contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental’s expectations, beliefs, plans or forecasts. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, and they include, but are not limited to: any projections of earnings, revenue or other financial items or future financial position or sources of financing; any statements of the plans, strategies and objectives of management for future operations, business strategy or financial position; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing.

Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” "commit," "advance," “likely” or similar expressions that convey the prospective nature of events or outcomes are generally indicative of forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Unless legally required, Occidental does not undertake any obligation to update, modify or withdraw any forward-looking statements as a result of new information, future events or otherwise.

Although Occidental believes that the expectations reflected in any of its forward-looking statements are reasonable, actual results may differ from anticipated results, sometimes materially. In addition, historical, current and forward-looking sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve and assumptions that are subject to change in the future. Factors that could cause results to differ from those projected or assumed in any forward-looking statement include, but are not limited to: general economic conditions, including slowdowns and recessions, domestically or internationally; Occidental’s indebtedness and other payment obligations, including the need to generate sufficient cash flows to fund operations; Occidental’s ability to successfully monetize select assets and repay or refinance debt and the impact of changes in Occidental’s credit ratings; the scope and duration of the global or regional health pandemics or epidemics, including the COVID-19 pandemic and ongoing actions taken by governmental authorities and other third parties in response to the pandemic; assumptions about energy markets; global and local commodity and commodity-futures pricing fluctuations and volatility; supply and demand considerations for, and the prices of, Occidental’s products and services; actions by the Organization of the Petroleum Exporting Countries (OPEC) and non-OPEC oil producing countries; results from operations and competitive conditions; future impairments of Occidental's proved and unproved oil and gas properties or equity investments, or write-downs of productive assets, causing charges to earnings; unexpected changes in costs; inflation, its impact on markets and economic activity and related monetary policy actions by governments in response to inflation; availability of capital resources, levels of capital expenditures and contractual obligations; the regulatory approval environment, including Occidental's ability to timely obtain or maintain permits or other governmental approvals, including those necessary for drilling and/or development projects; Occidental's ability to successfully complete, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; risks associated with acquisitions, mergers and joint ventures, such as difficulties integrating businesses, uncertainty associated with financial projections, projected synergies, restructuring, increased costs and adverse tax consequences; uncertainties and liabilities associated with acquired and divested properties and businesses; uncertainties about the estimated quantities of oil, NGL and natural gas reserves; lower-than-expected production from development projects or acquisitions; Occidental’s ability to realize the anticipated benefits from prior or future streamlining actions to reduce fixed costs, simplify or improve processes and improve Occidental’s competitiveness; exploration, drilling and other operational risks; disruptions to, capacity constraints in, or other limitations on the pipeline systems that deliver Occidental’s oil and natural gas and other processing and transportation considerations; volatility in the securities, capital or credit markets; governmental actions, war (including the Russia-Ukraine war) and political conditions and events; environmental risks and liability under federal, regional, state, provincial, tribal, local and international environmental laws, regulations and litigation (including the potential liability for remedial actions or assessments under existing or future laws, regulations and litigation); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, deep-water and onshore drilling and permitting regulations and environmental regulations (including regulations related to climate change); Occidental's ability to recognize intended benefits from its business strategies and initiatives, such as Occidental's low carbon ventures businesses or announced greenhouse gas emissions reduction targets or net-zero goals; potential liability resulting from pending or future litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, power outages, natural disasters, cyber-attacks, terrorist acts or insurgent activity; the creditworthiness and performance of Occidental's counterparties, including financial institutions, operating partners and other parties; failure of risk management; Occidental’s ability to retain and hire key personnel; supply, transportation, and labor constraints; reorganization or restructuring of Occidental’s operations; changes in state, federal or international tax rates; and actions by third parties that are beyond Occidental's control.

Additional information concerning these and other factors that may cause Occidental's results of operations and financial position to differ from expectations can be found in Occidental’s other filings with the U.S. Securities and Exchange Commission, including Occidental’s Annual Report on Form 10-K for the year ended December 31, 2022, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Schedule # and Description

•Before Tax Allocations

•After Tax Allocations    

•Reported Results

•Items Affecting Comparability

•Adjusted Results (non-GAAP)

•Reported Results

•Items Affecting Comparability

•Adjusted Results (non-GAAP)

•Reconciliation - Diluted EPS

•Detail of Capital Expenditures and Depreciation, Depletion and Amortization

•Free Cash Flow (non-GAAP)

•MBOE/D

•By Commodity

•MBOE/D

•Realized Prices and Related Index Prices

Segment Results Before Tax Allocations

(amounts in millions, except per share and effective tax rate amounts)

(a) Non-GAAP Measure. Adjusted income is a non-GAAP measure. Occidental defines adjusted income as net income excluding the effects of significant transactions and events that affect earnings but vary widely and unpredictably in nature, timing and amount. These events may recur, even across successive reporting periods. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported net income is considered representative of management’s performance over the long term, and adjusted income is not considered to be an alternative to net income reported in accordance with GAAP.

Segment Results After Tax Allocations

(Amounts in millions, except per share and effective tax rate amounts)

(amounts in millions, except per-share amounts)