•Strong operational performance drove cash flow from operations of $3.1 billion and cash flow from operations before working capital of $2.7 billion

•Capital spending of $1.6 billion, resulting in quarterly free cash flow before working capital of $1.0 billion

•Production of 1,218 Mboed exceeded the mid-point of guidance by 42 Mboed; full-year production guidance raised to 1,210 Mboed

•Repurchased $425 million of common stock, with year-to-date purchases accounting for nearly 40% of the $3.0 billion repurchase program

•Triggered the redemption of $522 million of preferred stock, bringing year-to-date redemptions to nearly $1.2 billion or 12% of preferred equity

•Regained investment grade status with Fitch upgrade

•OxyChem exceeded guidance with pre-tax income of $436 million

•Earnings per diluted share of $0.63 and adjusted earnings per diluted share of $0.68

HOUSTON — August 2, 2023 — Occidental (NYSE: OXY) today announced net income attributable to common stockholders for the second quarter of 2023 of $605 million, or $0.63 per diluted share, and adjusted income attributable to common stockholders of $661 million, or $0.68 per diluted share.

"Strong operational performance across our businesses in the second quarter drove continued financial success and enabled us to deliver additional substantive progress on our shareholder return framework," said President and Chief Executive Officer Vicki Hollub. "Our team's technical achievements have positioned us for a strong second half of 2023, giving us confidence to raise full-year oil and gas production guidance."

Second quarter after-tax items affecting comparability of $56 million was primarily comprised of an after-tax remeasurement of the valuation allowance related to the Maxus Liquidating Trust of $204 million, partially offset by after-tax domestic oil and gas asset impairments of $164 million, mainly related to undeveloped acreage in the northern non-core area of the Powder River Basin, where Occidental has determined not to pursue future exploration and appraisal activities.

Oil and gas pre-tax income for the second quarter of 2023 was $1.1 billion, compared to pre-tax income of $1.6 billion for the first quarter of 2023. Second quarter income included pre-tax domestic oil and gas asset impairments of $209 million, mainly related to undeveloped acreage in the northern non-core area of the Powder River Basin, where Occidental has determined not to pursue future exploration and appraisal activities. Excluding items affecting comparability, second quarter oil and gas income declined from the prior quarter due to lower domestic natural gas and natural gas liquids (NGL) prices as well as lower domestic crude oil volumes. For the second quarter of 2023, average WTI and Brent marker prices were $73.83 per barrel and $78.02 per barrel, respectively. Average worldwide realized crude oil prices decreased by approximately 1% from the prior quarter to $73.59 per barrel.

Average worldwide realized NGL prices decreased by approximately 22% from the prior quarter to $19.08 per barrel. Average domestic realized gas prices decreased by approximately 55% from the prior quarter to $1.36 per thousand cubic feet (Mcf).

Total average global production of 1,218 thousand barrels of oil equivalent per day (Mboed) for the second quarter exceeded the midpoint of guidance by 42 Mboed. Permian, Rockies & Other Domestic and Gulf of Mexico daily production volumes all exceeded guidance at 582 Mboed, 273 Mboed and 135 Mboed, respectively. International volumes came in just below guidance at 228 Mboed.

OxyChem pre-tax income of $436 million for the second quarter of 2023 exceeded guidance. Compared to first quarter of 2023 income of $472 million, the decrease in second quarter income was driven primarily by lower realized caustic soda and polyvinyl chloride (PVC) prices, partially offset by favorable energy and ethylene costs.

Midstream and marketing pre-tax results for the second quarter of 2023 reflected a loss of $30 million, compared to income of $2 million for the first quarter of 2023. The second quarter results included $48 million of pre-tax derivative gains. WES adjusted equity method investment income for the second quarter was $133 million. Excluding items affecting comparability, the decrease in midstream and marketing pre-tax second quarter results, compared to the first quarter, reflected the favorable gas margins due to winter weather impacts in the first quarter, and the timing impact of crude oil sales.

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, including, but 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 or business strategy; 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 an earlier date is specified. 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.

Actual outcomes or results may differ from anticipated results, sometimes materially. Forward-looking and other statements regarding Occidental's sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or require disclosure in Occidental's filings with the U.S. Securities and Exchange Commission (SEC). 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, including future rulemaking.

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 or future increases in interest rates; 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; the scope and duration of global or regional health pandemics or epidemics, including COVID-19, and actions taken by governmental authorities and other third parties in connection therewith; 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, including capital market disruptions and instability of financial institutions; governmental actions, war (including the Russia-Ukraine war) and political conditions and events; health, safety and environmental (HSE) risks, costs and liability under existing or future federal, regional, state, provincial, tribal, local and international HSE laws, regulations and litigation (including related to climate change or remedial actions or assessments); legislative or regulatory changes, including changes relating to hydraulic fracturing or other oil and natural gas operations, retroactive royalty or production tax regimes, and deep-water and onshore drilling and permitting regulations; 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, government investigations and other proceedings; 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 SEC, including Occidental’s 2022 Form 10-K, 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)