Asset Acquisitions, Dispositions and Other

9 Months Ended

Sep. 30, 2014

Asset Acquisitions, Dispositions and Other

Asset Acquisitions, Dispositions and Other

2. Asset Acquisitions, Dispositions and Other

In September 2014, Occidental borrowed $1.6 billion in commercial paper for short-term cash needs.

In August 2014, Occidental entered into a new five-year, $2.0 billion bank credit facility (2014 Credit Facility) which replaced its previous $2.0 billion bank credit facility (2011 Credit Facility), which was scheduled to expire in October 2016. The 2014 Credit Facility has similar terms to the 2011 Credit Facility and does not contain material adverse change clauses or debt ratings triggers that could restrict Occidental’s ability to borrow under this facility.  Occidental did not draw down any amounts under the 2014 Credit Facility or the 2011 Credit Facility during 2014 and no amounts were outstanding as of September 30, 2014.

In February 2014, Occidental entered into an agreement to sell its Hugoton Field operations in Kansas, Oklahoma and Colorado for $1.4 billion.  The transaction was completed in April 2014 and, after taking into account purchase price adjustments, it resulted in pre-tax proceeds of $1.3 billion.  Occidental recorded a pre-tax gain on the sale of $532 million or $339 million after tax.

In February 2014, Occidental announced the approval by the Board of Directors to pursue the spin-off of its California oil and gas business, into a standalone, publicly traded corporation tax-free. On October 2, 2014, the Board of Directors approved the spin-off of California Resources Corporation (CRC), a wholly owned Occidental subsidiary, to be executed in accordance with the Separation and Distribution Agreement. The Separation and Distribution Agreement and related ancillary agreements will govern the spin-off of the California oil and gas business, the transfer of assets and other matters related to the spin-off.  For further discussion regarding the spin-off of CRC refer to Note 14.