NOTE 14

INVESTMENTS AND RELATED-PARTY TRANSACTIONS

As of December 31, 2013 and 2012, investments in unconsolidated entities comprised $1.5 billion and $1.9 billion of equity-method investments, respectively.

EQUITY INVESTMENTS

As of December 31, 2013, Occidental’s equity investments consisted mainly of an approximate 25-percent interest in Plains Pipeline, a 24.5-percent interest in the stock of Dolphin Energy, and various other partnerships and joint ventures. Equity investments paid dividends of $447 million, $526 million and $349 million to Occidental in 2013, 2012 and 2011, respectively. As of December 31, 2013, cumulative undistributed earnings of equity-method investees since their respective acquisitions totaled approximately $65 million. As of December 31, 2013, Occidental’s investments in equity investees exceeded the underlying equity in net assets by approximately $900 million, of which almost $750 million represented goodwill and the remainder comprised intangibles amortized over their estimated useful lives.

The following table presents Occidental’s interest in the summarized financial information of its equity-method investments:

For the years ended December 31, (in millions)	2013		2012		2011
Revenues	$	3,373	$	2,667	$	2,439
Costs and expenses	2,987		2,310		2,046
Net income	$	386	$	357	$	393

As of December 31, (in millions)	2013		2012
Current assets	$	1,813	$	2,242
Non-current assets	$	4,412	$	5,449
Current liabilities	$	1,308	$	1,799
Long-term debt	$	2,506	$	2,833
Other non-current liabilities	$	163	$	248
Stockholders’ equity	$	2,248	$	2,811

Occidental’s investment in Dolphin, which was acquired in 2002, consists of two separate economic interests through which Occidental owns (i) a 24.5-percent undivided interest in the upstream operations under an agreement which is proportionately consolidated in the financial statements; and (ii) a 24.5-percent interest in the stock of Dolphin Energy, which operates a pipeline and is accounted for as an equity investment.

In October 2013, Occidental sold a portion of its equity interest in Plains Pipeline for approximately $1.4 billion, resulting in a pre-tax gain of approximately $1.0 billion.

RELATED-PARTY TRANSACTIONS

From time to time, Occidental purchases oil, NGLs, power, steam and chemicals from and sells oil, NGLs, gas, chemicals and power to certain of its equity investees and other related parties at market-related prices. During 2013, 2012 and 2011, Occidental entered into the following related-party transactions and had the following amounts due from or to its related parties:

December 31, (in millions)	2013		2012		2011
Sales (a)	$	663	$	419	$	392
Purchases	$	—	$	8	$	10
Services	$	30	$	17	$	10
Advances and amounts due from	$	67	$	25	$	32
Amounts due to	$	3	$	129	$	21

(a) In 2013, 2012 and 2011, sales of Occidental-produced oil and NGLs to Plains Pipeline accounted for 72 percent, 80 percent and 76 percent of these totals, respectively. Additionally, Occidental conducts marketing and trading activities with Plains Pipeline for oil and NGLs. These transactions are reported in Occidental’s income statement on a net margin basis. The sales amounts above include the net margins on such transactions, which were negligible.