Derivatives (Tables)

3 Months Ended

Mar. 31, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 derivatives not designated as hedging instruments as of March 31, 2019, and December 31, 2018.

(in millions, except Long/(Short) volumes)	2019			2018
Unrealized gain (loss) on derivatives not designated as hedges
Crude Oil Commodity Contracts	$	(63	)	$	184
Natural Gas Commodity Contracts	$	3		$	5
Outstanding net volumes on derivatives not designated as hedges
Crude Oil Commodity Contracts
Volume (MMBL)	56			61
Natural Gas Commodity Contracts
Volume (Bcf)	(162		)	(142		)

Gross and net fair values of outstanding derivatives

The following tables present the gross and net fair values of Occidental’s outstanding derivatives:

As of March 31, 2019		Fair Value Measurements Using			Netting (b)		Total Fair Value
(in millions)	Balance Sheet Location	Level 1	Level 2	Level 3
Assets:
Derivatives not designated as hedges (a)
Commodity Contracts	Other current assets	1,077	48	—	(1,099	)	26
	Long-term receivables and other assets, net	19	8	—	(19	)	8
Liabilities:
Derivatives not designated as hedges (a)
Commodity Contracts	Accrued liabilities	1,136	54	—	(1,099	)	91
	Deferred credits and other liabilities - other	20	2	—	(19	)	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, 2019, no collateral received has been netted against derivative assets and collateral paid of $66 million has been netted against derivative liabilities. Occidental had $94 million of initial margin deposited with brokers as of March 31, 2019. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables.

As of December 31, 2018		Fair Value Measurements Using			Netting (b)		Total Fair Value
(in millions)	Balance Sheet Location	Level 1	Level 2	Level 3
Assets:
Derivatives not designated as hedges (a)
Commodity Contracts	Other current assets	2,531	110	—	(2,392	)	249
	Long-term receivables and other assets, net	5	9	—	(6	)	8
Liabilities:
Cash-flow hedges(a)
Commodity contracts	Accrued liabilities	—	2	—	—		2
Derivatives not designated as hedges (a)
Commodity contracts	Accrued liabilities	2,357	101	—	(2,392	)	66
	Deferred credits and other liabilities - other	6	2	—	(6	)	2

(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 December 31, 2018, $45 million collateral received has been netted against derivative assets and collateral paid of $1 million has been netted against derivative liabilities. Occidental had $178 million of initial margin deposited with brokers as of December 31, 2018. Initial margin is included in other current assets in the consolidated condensed balance sheets and has not been reflected in these derivative fair-value tables.