Industry Segments

3 Months Ended

Mar. 31, 2019

Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, NGL and natural gas. The chemical segment mainly manufactures and markets basic chemicals and vinyls. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil, condensate, NGL, natural gas, carbon dioxide (CO₂) and power. It also trades around its assets, including transportation and storage capacity. Additionally, the midstream and marketing segment invests in entities that conduct similar activities.

Results of industry segments generally exclude income taxes, interest income, interest expense, environmental remediation expenses, unallocated corporate expenses and discontinued operations, but include gains and losses from dispositions of segment assets and income from the segments' equity investments. Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions. The following tables present Occidental’s industry segments (in millions):



	Oil				Midstream		Corporate
	and				and		and
	Gas		Chemical		Marketing		Eliminations				Total
Three months ended March 31, 2019
Net sales	$	2,351	$	1,059	$	816	$	(222	)		$	4,004
Pre-tax operating profit (loss)	$	484	$	265	$	279	$	(172	)	^(a)	$	856
Income taxes	—		—		—		(225		)	^(b)	(225		)
Net income (loss)	$	484	$	265	$	279	$	(397	)		$	631

Three months ended March 31, 2018
Net sales	$	2,454	$	1,154	$	389	$	(234	)		$	3,763
Pre-tax operating profit (loss)	$	750	$	298	$	179	$	(180	)	^(a)	$	1,047
Income taxes	—		—		—		(339		)	^(b)	(339		)
Net income (loss)	$	750	$	298	$	179	$	(519	)		$	708

(a) Includes unallocated net interest expense, administration expense, environmental remediation and other items.

(b) Includes all foreign and domestic income taxes.