Derivatives (Tables)

3 Months Ended

Mar. 31, 2017

Gross and net fair values of outstanding derivatives

The following table presents the gross and net fair values of Occidental’s outstanding derivatives as of March 31, 2017, and December 31, 2016 (in millions):

As of March 31, 2017		Fair Value Measurements Using					Total Fair
(in millions)	(Commodity Contracts)	Level 1	Level 2	Level 3	Netting (b)		Value
Assets:
Cash-flow hedges: (a)
Other current assets		—	—	—	—		—
Long-term receivables and other assets, net		—	—	—	—		—

Derivatives not designated as hedging instruments: (a)
Other current assets		285	46	—	(308	)	23
Long-term receivables and other assets, net		4	2	—	(3	)	3

Liabilities:
Cash-flow hedges: (a)
Accrued liabilities		—	—	—	—		—
Deferred credits and liabilities		—	—	—	—		—

Derivatives not designated as hedging instruments: (a)
Accrued liabilities		282	34	—	(308	)	8
Deferred credits and liabilities		3	6	—	(3	)	6

As of December 31, 2016		Fair Value Measurements Using					Total Fair
(in millions)	(Commodity Contracts)	Level 1	Level 2	Level 3	Netting (b)		Value
Assets:
Cash-flow hedges: (a)
Other current assets		—	1	—	—		1
Long-term receivables and other assets, net		—	—	—	—		—

Derivatives not designated as hedging instruments: (a)
Other current assets		166	57	—	(196	)	27
Long-term receivables and other assets, net		2	3	—	(2	)	3

Liabilities:
Cash-flow hedges (a)
Accrued liabilities		—	6	—	—		6
Deferred credits and liabilities		—	—	—	—		—

Derivatives not designated as hedging instruments: (a)
Accrued liabilities		172	51	—	(196	)	27
Deferred credits and liabilities		1	6	—	(2	)	5

(a)

Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements and presented on a net basis in the consolidated balance sheets.

(b)

These amounts do not include collateral. As of March 31, 2017, collateral received of $6 million has been netted against derivative assets and collateral paid of $1 million has been netted against derivative liabilities. As of December 31, 2016, collateral received of $4 million has been netted against derivative assets and collateral paid of $13 million has been netted against derivative liabilities. Collateral deposited by Occidental, mainly for initial margin, of $25 million as of March 31, 2017, and December 31, 2016, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated balance sheets.

Not designated as hedging instruments | Commodity contracts

Derivatives

Summary of net sales related to the outstanding commodity derivative instruments

As of March 31, (in millions, except Long/(Short) volumes)	2017			2016
Gain (loss) on derivatives not designated as hedges
Oil commodity contracts	$	9		$	(5	)
Natural gas commodity contracts	$	3		$	1

Outstanding net volumes on derivatives not designated as hedges
Oil Commodity Contracts
Volume (MMBL)	73			67
Price Per Bbl	$	50.66		$	53.86

Natural gas commodity contracts
Volume (Bcf)	(26		)	(12		)
Price Per MMBTU	$	2.86		$	3.19