NOTE 14

INVESTMENTS AND RELATED-PARTY TRANSACTIONS

EQUITY INVESTMENTS

As of December 31, 2015 and 2014, investments in unconsolidated entities comprised $1.3 billion and $1.2 billion of equity-method investments, respectively.

As of December 31, 2015, Occidental’s equity investments consisted mainly of a 13-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 $438 million, $396 million, and $447 million to Occidental in 2015, 2014 and 2013, respectively. As of December 31, 2015, cumulative undistributed earnings of equity-method investees since they were acquired was immaterial. As of December 31, 2015, Occidental’s investments in equity investees exceeded the underlying equity in net assets by approximately $625 million, of which almost $542 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)	2015		2014		2013

Revenues	$	1,050	$	3,090	$	3,373
Costs and expenses	827		2,774		2,987

Net income	$	223	$	316	$	386

As of December 31, (in millions)	2015		2014

Current assets	$	896	$	1,127
Non-current assets	$	3,589	$	2,925
Current liabilities	$	536	$	771
Long-term debt	$	2,141	$	1,701
Other non-current liabilities	$	148	$	83
Stockholders’ equity	$	1,659	$	1,498

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 November 2014 and October 2013, Occidental sold a portion of its equity interest in Plains Pipeline for approximately $1.7 billion and $1.4 billion, resulting in pre-tax gains of approximately $1.4 billion and $1.0 billion, respectively.

AVAILABLE FOR SALE INVESTMENT IN CALIFORNIA RESOURCES STOCK

As part of Occidental’s spin-off of its California oil and gas operations and related assets, Occidental retained 71.5 million shares of, or approximately 18.7 percent interest in, California Resources stock, which is recorded as an available for sale investment. In February 2016, Occidental declared a special stock dividend for all of its 71.5 million shares of common stock of California Resources to stockholders of record as of February 29, 2016, to be distributed on March 24, 2016.

Occidental recorded an other-than-temporary loss of $227 million for this available for sale investment as of December 31, 2015. At December 31, 2015 and 2014, Occidental’s available for sale investment in California Resources was $167 million and $394 million, respectively.

RELATED-PARTY TRANSACTIONS

From time to time, Occidental purchases oil, NGLs, power, steam and chemicals from and sells oil, NGLs, natural gas, chemicals and power to certain of its equity investees and other related parties at market-related prices. During 2015, 2014 and 2013, Occidental entered into the following related-party transactions and had the following amounts due from or to its related parties:

For the years ended December 31, (in millions)	2015		2014		2013

Sales (a)	$	555	$	835	$	663
Purchases	$	26	$	6	$	—
Services	$	32	$	27	$	30
Advances and amounts due from	$	60	$	26	$	67
Amounts due to	$	5	$	15	$	3

(a)

In 2015, 2014 and 2013, sales of Occidental-produced oil and NGLs to Plains Pipeline accounted for 87 percent, 46 percent and 72 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.