Derivatives (Tables)

3 Months Ended

Mar. 31, 2018

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, 2018, and December 31, 2017 (in millions):


As of March 31, 2018		Fair Value Measurements Using								Total
(in millions)	Balance Sheet Location	Level 1		Level 2		Level 3		Netting (b)		Fair Value
Assets:
Derivatives not designated as hedging instruments (a)
	Other current assets		581		181		—		(613)		149
Commodity contracts	Long-term receivables and other assets, net		7		2		—		(7)		2
Liabilities:
Derivatives not designated as hedging instruments (a)
	Accrued liabilities		613		168		—		(613)		168
Commodity contracts	Deferred credits and liabilities		6		3		—		(7)		2


As of December 31, 2017		Fair Value Measurements Using								Total Fair
(in millions)	Balance Sheet Location	Level 1		Level 2		Level 3		Netting (b)		Value
Assets:
Cash-flow hedges (a)
Commodity contracts	Other current assets		—		3		—		—		3
Derivatives not designated as hedging instruments (a)
	Other current assets		485		227		—		(517)		195
Commodity contracts	Long-term receivables and other assets, net		1		2		—		(1)		2
Liabilities:
Derivatives not designated as hedging instruments (a)
	Accrued liabilities		535		222		—		(517)		240
Commodity contracts	Deferred credits and liabilities		1		3		—		(1)		3

(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 condensed balance sheets.

(b)

These amounts do not include collateral. As of March 31, 2018, no collateral received has been netted against derivative assets and collateral paid of $32 million has been netted against derivative liabilities. As of December 31, 2017, no collateral received has been netted against derivative assets and collateral paid of $54 million has been netted against derivative liabilities. Select clearinghouse and brokers require Occidental to post an initial margin deposit. Collateral deposited by Occidental, mainly for initial margin, of $71 million and $53 million as of March 31, 2018 and December 31, 2017, respectively, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated condensed balance sheets.

Not designated as hedging instruments | Commodity Contracts

Derivatives

Summary of net sales related to the outstanding commodity derivative instruments

The following table summarizes the amounts reported in net sales related to the outstanding commodity derivative instruments not designated as hedging instruments as of March 31, 2018, and December 31, 2017:


(in millions, except Long/(Short) volumes)	2018		2017
Unrealized gain (loss) on derivatives not designated as hedges
Oil Commodity Contracts	$	(18)	$	(47)
Natural Gas Commodity Contracts	$	(1)	$	1

Outstanding net volumes on derivatives not designated as hedges
Oil Commodity Contracts
Volume (MMBL)		57		61
Price Per Bbl	$	58.64	$	57.38

Natural Gas Commodity Contracts
Volume (Bcf)		(63)		(47)
Price Per MMBTU	$	2.35	$	2.73