(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||
(Address of principal executive offices) (Zip Code) | ||||
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Class | Outstanding at September 30, 2019 | |||
Common stock $.20 par value | ||||
TABLE OF CONTENTS | PAGE | ||
Part I | Financial Information | ||
Item 1. | |||
Note 3—The Merger | |||
Note 4—Acquisitions, Dispositions and Other Transactions | |||
Note 7—Derivative Instruments | |||
Item 2. | |||
Item 3. | |||
Item 4. | |||
Part II | Other Information | ||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
Item 1. | Financial Statements (unaudited) |
millions | September 30, 2019 | December 31, 2018 | ||||||
ASSETS | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | $ | ||||||
Restricted cash and restricted cash equivalents | ||||||||
Trade receivables, net | ||||||||
Inventories | ||||||||
Assets held for sale | ||||||||
Other current assets | ||||||||
Total current assets | ||||||||
INVESTMENTS IN UNCONSOLIDATED ENTITIES ($2,261 related to WES) | ||||||||
PROPERTY, PLANT AND EQUIPMENT | ||||||||
Oil and Gas segment | ||||||||
Chemical segment | ||||||||
Marketing and Other Midstream segment | ||||||||
WES Midstream segment | ||||||||
Corporate | ||||||||
Accumulated depreciation, depletion, and amortization | ( | ) | ( | ) | ||||
OPERATING LEASE ASSETS | — | |||||||
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET | ||||||||
INTANGIBLES, NET ($2,380 related to WES) | ||||||||
GOODWILL - WES | ||||||||
TOTAL ASSETS | $ | $ | ||||||
Western Midstream Partners, LP (WES) is a Variable Interest Entity (VIE). See Note 1 - General. The related parenthetical references reflect amounts as of September 30, 2019. | ||||||||
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements. | ||||||||
millions, except share amounts | September 30, 2019 | December 31, 2018 | |||||||
LIABILITIES AND EQUITY | |||||||||
CURRENT LIABILITIES | |||||||||
Current maturities of long-term debt | $ | $ | |||||||
Current operating lease liabilities | — | ||||||||
Accounts payable | |||||||||
Accrued liabilities ($315 related to WES) | |||||||||
Accrued income taxes | |||||||||
Liabilities of assets held for sale | |||||||||
Total current liabilities | |||||||||
LONG-TERM DEBT, NET | |||||||||
Long-term debt, net - Occidental | |||||||||
Long-term debt, net - WES | |||||||||
DEFERRED CREDITS AND OTHER LIABILITIES | |||||||||
Deferred income taxes ($1,167 related to WES) | |||||||||
Asset retirement obligations ($319 related to WES) | |||||||||
Pension and postretirement obligations | |||||||||
Environmental remediation reserves | |||||||||
Operating lease liabilities | — | ||||||||
Other | |||||||||
EQUITY | |||||||||
Preferred stock, at $1.00 per share par value (100,000 shares at September 30, 2019) | |||||||||
Common stock, at $0.20 per share par value (1,043,640,621 shares at September 30, 2019, and 895,115,637 shares at December 31, 2018) | |||||||||
Treasury stock (150,323,151 shares at September 30, 2019, and 145,726,051 shares at December 31, 2018) | ( | ) | ( | ) | |||||
Additional paid-in capital | |||||||||
Retained earnings | |||||||||
Accumulated other comprehensive loss | ( | ) | ( | ) | |||||
Total stockholders' equity | |||||||||
Noncontrolling interests | |||||||||
Total equity | |||||||||
TOTAL LIABILITIES AND EQUITY | $ | $ | |||||||
Western Midstream Partners, LP (WES) is a Variable Interest Entity (VIE). See Note 1 - General. The related parenthetical references reflect amounts as of September 30, 2019. | |||||||||
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements. | |||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions, except per-share amounts | 2019 | 2018 | 2019 | 2018 | ||||||||||||
REVENUES AND OTHER INCOME | ||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
Interest, dividends, and other income | ||||||||||||||||
Gain on sale of assets, net | ||||||||||||||||
COSTS AND OTHER DEDUCTIONS | ||||||||||||||||
Oil and gas operating expense | ||||||||||||||||
Transportation expense | ||||||||||||||||
Chemical and midstream cost of sales | ||||||||||||||||
Purchased commodities | ||||||||||||||||
Selling, general and administrative | ||||||||||||||||
Other operating expense | ||||||||||||||||
Taxes other than on income | ||||||||||||||||
Depreciation, depletion, and amortization | ||||||||||||||||
Asset impairments and other items | ||||||||||||||||
Anadarko merger-related costs | ||||||||||||||||
Exploration expense | ||||||||||||||||
Interest and debt expense, net | ||||||||||||||||
Income (loss) before income taxes and other items | ( | ) | ||||||||||||||
OTHER ITEMS | ||||||||||||||||
Gains (losses) on interest rate swaps and warrants, net | ( | ) | ( | ) | ||||||||||||
Income from equity investments | ||||||||||||||||
Income (loss) from continuing operations before income taxes | ( | ) | ||||||||||||||
Income tax expense | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Income (loss) from continuing operations | ( | ) | ||||||||||||||
Discontinued operations, net of tax | ( | ) | ( | ) | ||||||||||||
NET INCOME (LOSS) | ( | ) | ||||||||||||||
Less: Net income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Less: Preferred stock dividends | ( | ) | ( | ) | ||||||||||||
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS | ( | ) | ||||||||||||||
PER COMMON SHARE | ||||||||||||||||
Income (loss) from continuing operations—basic | $ | ( | ) | $ | $ | $ | ||||||||||
Income (loss) from discontinued operations—basic | ( | ) | ( | ) | ||||||||||||
Net income (loss) attributable to common stockholders—basic | $ | ( | ) | $ | $ | $ | ||||||||||
Income (loss) from continuing operations—diluted | $ | ( | ) | $ | $ | $ | ||||||||||
Income (loss) from discontinued operations—diluted | ( | ) | ( | ) | ||||||||||||
Net income (loss) attributable to common stockholders—diluted | $ | ( | ) | $ | $ | $ | ||||||||||
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements. | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) | $ | ( | ) | $ | $ | $ | ||||||||||
Other comprehensive income (loss) items: | ||||||||||||||||
Losses on derivatives (a) | ( | ) | ( | ) | ( | ) | ( | ) | ||||||||
Pension and postretirement (losses) gains (b) | ( | ) | ( | ) | ||||||||||||
Reclassification of losses on derivatives (c) | ||||||||||||||||
Other comprehensive (loss) income, net of tax | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) | ( | ) | ||||||||||||||
Comprehensive income attributable to noncontrolling interests | ( | ) | ( | ) | ||||||||||||
Comprehensive income (loss) attributable to preferred and common stockholders | $ | ( | ) | $ | $ | $ | ||||||||||
(a) | Net of tax of $ |
(b) | Net of tax of $ |
(c) | Net of tax of $( |
Nine months ended September 30 | ||||||||
millions | 2019 | 2018 | ||||||
CASH FLOW FROM OPERATING ACTIVITIES | ||||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Discontinued operations, net | ||||||||
Depreciation, depletion and amortization of assets | ||||||||
Deferred income tax (benefit) provision | ( | ) | ||||||
Other noncash charges to income | ||||||||
Gain on sale of assets, net | ( | ) | ( | ) | ||||
Asset impairments and other items | ||||||||
Undistributed earnings from affiliates | ( | ) | ( | ) | ||||
Dry hole expenses | ||||||||
Changes in operating assets and liabilities, net | ( | ) | ||||||
Cash provided by operating activities - continuing operations | ||||||||
Cash used by operating activities - discontinued operations | ( | ) | ||||||
Net cash provided by operating activities | ||||||||
CASH FLOW FROM INVESTING ACTIVITIES | ||||||||
Capital expenditures | ( | ) | ( | ) | ||||
Change in capital accrual | ( | ) | ||||||
Proceeds from sale of assets and equity investments, net | ||||||||
Purchase of businesses and assets, net | ( | ) | ( | ) | ||||
Equity investments and other, net | ( | ) | ( | ) | ||||
Cash used by investing activities - continuing operations | ( | ) | ( | ) | ||||
Cash used by investing activities - discontinued operations | ( | ) | ||||||
Net cash used by investing activities | ( | ) | ( | ) | ||||
CASH FLOW FROM FINANCING ACTIVITIES | ||||||||
Proceeds from long-term debt, net | ||||||||
Payments of long-term debt | ( | ) | ( | ) | ||||
Proceeds from WES revolvers | ||||||||
Payment of revolvers - WES | ( | ) | ||||||
Proceeds from issuance of common and preferred stock | ||||||||
Purchases of treasury stock | ( | ) | ( | ) | ||||
Cash dividends paid to common stockholders | ( | ) | ( | ) | ||||
Distributions to noncontrolling interest | ( | ) | ||||||
Other financing, net | ( | ) | ||||||
Cash provided (used) by financing activities - continuing operations | ( | ) | ||||||
Cash used by financing activities - discontinued operations | ( | ) | ||||||
Net cash provided by (used) by financing activities | ( | ) | ||||||
Increase in cash, cash equivalents, restricted cash and restricted cash equivalents | ||||||||
Cash and cash equivalents — beginning of period | ||||||||
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period | $ | $ | ||||||
The accompanying notes are an integral part of these Consolidated Condensed Financial Statements. | ||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
millions | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at June 30, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Net income (loss) | — | — | — | — | ( | ) | — | ( | ) | |||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||||
Dividends on common stock, $0.79 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Dividends on preferred stock, $1,489 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Issuance of common stock and other, net | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance of preferred stock, net | — | — | — | — | — | — | ||||||||||||||||||||||||||
Fair value of noncontrolling interest acquired | — | — | — | — | — | — | ||||||||||||||||||||||||||
Noncontrolling interest contributions, net | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
millions | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at June 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||
Dividends on common stock, $0.78 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | |||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Reclassification of stranded tax effects | — | — | — | — | — | — | ||||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
millions | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Net income | — | — | — | — | — | |||||||||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | — | — | — | ( | ) | — | ( | ) | ||||||||||||||||||||||
Dividends on common stock, $2.35 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Dividends on preferred stock, $1,489 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | |||||||||||||||||||||||||||
Issuance of preferred stock | — | — | — | — | — | — | ||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Fair value of noncontrolling interest acquired | — | — | — | — | — | — | ||||||||||||||||||||||||||
Noncontrolling interest contributions, net | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at September 30, 2019 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Total Stockholders' Equity | ||||||||||||||||||||||||||||||||
millions | Common Stock | Preferred Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Non-controlling Interests | Total Equity | ||||||||||||||||||||||||
Balance at December 31, 2017 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||||||||
Other comprehensive income, net of tax | — | — | — | — | — | — | ||||||||||||||||||||||||||
Dividends on common stock, $2.32 per share | — | — | — | — | ( | ) | — | — | ( | ) | ||||||||||||||||||||||
Issuance of common stock, net | — | — | — | — | — | — | ||||||||||||||||||||||||||
Purchases of treasury stock | — | — | ( | ) | — | — | — | — | ( | ) | ||||||||||||||||||||||
Reclassification of stranded tax effects | — | — | — | — | ( | ) | — | — | ||||||||||||||||||||||||
Noncontrolling interest | — | — | — | — | — | — | ||||||||||||||||||||||||||
Balance at September 30, 2018 | $ | $ | $ | ( | ) | $ | $ | $ | ( | ) | $ | $ | ||||||||||||||||||||
millions | September 30, 2019 | |||
Cash and cash equivalents | $ | |||
Restricted cash and restricted cash equivalents | ||||
Cash and restricted cash included in assets held for sale | ||||
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | ||||
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents | $ | |||
millions, except per share amounts | ||||
Total shares of Anadarko common stock eligible for Merger consideration | ||||
Cash consideration (per share of common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration) | $ | |||
Cash portion of Merger consideration | $ | |||
Total shares of Anadarko common stock and shares underlying Anadarko stock-based awards eligible for Merger consideration | ||||
Exchange ratio (per share of Anadarko common stock) | ||||
Total shares of Occidental common stock issued to Anadarko stockholders | ||||
Average share price of Occidental common stock at August 8, 2019 | $ | |||
Stock portion of Merger consideration | $ | |||
Total Merger consideration | $ | |||
millions | As of August 8, 2019 | |||
Fair value of assets acquired: | ||||
Current assets | $ | |||
Anadarko's Africa Assets held for sale | ||||
Investments in unconsolidated entities | ||||
Property, plant and equipment, net - Anadarko | ||||
Property, plant and equipment, net - WES Midstream | ||||
Other assets | ||||
Intangible assets - WES Midstream | ||||
Amount attributable to assets acquired | $ | |||
Fair value of liabilities assumed: | ||||
Current liabilities | $ | |||
Liabilities of Anadarko's Africa Assets held for sale | ||||
Long-term debt - Anadarko | ||||
Long-term debt - WES Midstream | ||||
Deferred income taxes | ||||
Asset retirement obligations | ||||
Pension and post retirement obligations | ||||
Non-current derivative liabilities | ||||
Other long-term liabilities | ||||
Amount attributable to liabilities assumed | $ | |||
Net assets | $ | |||
Less: Fair value of noncontrolling interests in WES Midstream | ||||
Fair value of net assets acquired | ||||
Goodwill - WES Midstream | ||||
Total Merger consideration | $ | |||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions, except per-share amounts | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenues | $ | $ | $ | $ | ||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | ) | $ | $ | $ | ||||||||||
Net income (loss) attributable to common stockholders per share—basic | $ | ( | ) | $ | $ | $ | ||||||||||
Net income (loss) attributable to common stockholders per share—diluted | $ | ( | ) | $ | $ | $ | ||||||||||
millions | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||
Employee severance and related cost | $ | $ | ||||||
Licensing fees for critical seismic data | ||||||||
Bank, legal and consulting fees | ||||||||
Total | $ | $ | ||||||
millions | 2019 | |||
REVENUES AND OTHER INCOME | ||||
Net sales | $ | |||
COSTS AND OTHER DEDUCTIONS | ||||
Oil and gas operating expense | $ | |||
Transportation and marketing expense | ||||
Taxes other than on income | ||||
Fair value adjustment on assets held for sale | ||||
Selling, general and administrative | ||||
Other | ||||
$ | ||||
Income before income taxes | $ | |||
Income tax expense | ( | ) | ||
Discontinued operations, net of tax | $ | ( | ) | |
millions | September 30, 2019 | |||
Cash and cash equivalents | $ | |||
Inventories | ||||
Other current assets | ||||
Property, plant and equipment, net | ||||
Operating lease assets | ||||
Long-term receivables and other assets, net | ||||
Assets held for sale | $ | |||
Current maturities of debt - finance leases | ||||
Current operating lease liabilities | ||||
Accounts payable | ||||
Accrued liabilities | ||||
Long-term debt, net - finance leases | ||||
Deferred income taxes | ||||
Asset retirement obligations | ||||
Other | ||||
Liabilities of assets held for sale | $ | |||
Net assets held for sale | $ | |||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Revenue from customers | $ | $ | $ | $ | ||||||||||||
All other revenues (a) | ||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
(a) Includes net marketing derivatives, oil collars and calls, and chemical exchange contracts. | ||||||||||||||||
millions | United States | Middle East | Latin America | Other International | Eliminations | Total | ||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
NGL | ||||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
Other | ( | ) | ( | ) | ||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Chemical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Marketing and Other Midstream | ||||||||||||||||||||||||
Gas processing | ||||||||||||||||||||||||
Power and other | ||||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
WES Midstream | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Eliminations | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||
Consolidated | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
millions | United States | Middle East | Latin America | Other International | Eliminations | Total | ||||||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
NGL | ||||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
Other | ( | ) | ||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Chemical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Marketing and Other Midstream | ||||||||||||||||||||||||
Gas processing | ||||||||||||||||||||||||
Pipelines | ||||||||||||||||||||||||
Power and other | ||||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Eliminations | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||
Consolidated | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
millions | United States | Middle East | Latin America | Other International | Eliminations | Total | ||||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
NGL | ||||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
Other | ( | ) | ( | ) | ( | ) | ||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Chemical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Marketing and Other Midstream | ||||||||||||||||||||||||
Gas processing | ||||||||||||||||||||||||
Power and other | ||||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
WES Midstream | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Eliminations | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||
Consolidated | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
millions | United States | Middle East | Latin America | Other International | Eliminations | Total | ||||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||
Oil and Gas | ||||||||||||||||||||||||
Oil | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
NGL | ||||||||||||||||||||||||
Gas | ||||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Chemical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Marketing and Other Midstream | ||||||||||||||||||||||||
Gas processing | ||||||||||||||||||||||||
Pipelines | ||||||||||||||||||||||||
Power and other | ||||||||||||||||||||||||
Segment total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Eliminations | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||
Consolidated | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
millions | ||||
Balance at December 31, 2018 | $ | |||
Increase due to contract liabilities acquired with Anadarko | ||||
Increase due to cash received, excluding revenues recognized in the period | ||||
Decrease due to revenue recognized | ( | ) | ||
Balance at September 30, 2019 | $ | |||
millions | Oil and Gas | WES Midstream | Eliminations | Total | ||||||||||||
Remainder of 2019 | $ | $ | $ | ( | ) | $ | ||||||||||
2020 | ( | ) | ||||||||||||||
2021 | ( | ) | ||||||||||||||
2022 | ( | ) | ||||||||||||||
2023 | ( | ) | ||||||||||||||
Thereafter | ( | ) | ||||||||||||||
Total | $ | $ | $ | ( | ) | $ | ||||||||||
millions | September 30, 2019 | December 31, 2018 | ||||||
Raw materials | $ | $ | ||||||
Materials and supplies | ||||||||
Commodity inventory and finished goods | ||||||||
Revaluation to LIFO | ( | ) | ( | ) | ||||
Total | $ | $ | ||||||
Collars and Calls, not designated as hedges | |||||||
2019 Settlement | |||||||
Three-way collars (Oil MMBL) | |||||||
Average price per barrel (NYMEX/Brent oil pricing) | |||||||
Ceiling sold price (call) | $ | ||||||
Floor purchased price (put) | $ | ||||||
Floor sold price (put) | $ | ||||||
2020 Settlement | |||||||
Three-way collars (Oil MMBL) | |||||||
Average price per barrel (Brent oil pricing) | |||||||
Ceiling sold price (call) | $ | ||||||
Floor purchased price (put) | $ | ||||||
Floor sold price (put) | $ | ||||||
2021 Settlement | |||||||
Call Options sold (Oil MMBL) | |||||||
Average price per barrel (Brent oil pricing) | |||||||
Ceiling sold price (call) | $ | ||||||
millions except percentages | Mandatory | Weighted-Average | ||||||||
Notional Principal Amount | Reference Period | Termination Date | Interest Rate | |||||||
$ | September 2016 - 2046 | October 2019 | % | |||||||
$ | September 2016 - 2046 | September 2020 | % | |||||||
$ | September 2016 - 2046 | September 2022 | % | |||||||
$ | September 2017 - 2047 | September 2020 | % | |||||||
$ | September 2017 - 2047 | September 2021 | % | |||||||
$ | September 2017 - 2047 | September 2023 | % | |||||||
millions except percentages | Mandatory | Weighted-Average | ||||||||
Notional Principal Amount | Reference Period | Termination Date | Interest Rate | |||||||
$ | December 2019 - 2024 | December 2019 | % | |||||||
$ | December 2019 - 2029 | December 2019 | % | |||||||
$ | December 2019 - 2049 | December 2019 | % | |||||||
2019 | 2018 | |||||
Crude Oil Commodity Contracts | ||||||
Volume (MMBL) | ||||||
Natural Gas Commodity Contracts | ||||||
Volume (Bcf) | ( | ) | ( | ) | ||
Balance Sheet Classification | Fair-Value Measurements Using | Netting (a) | Total Fair Value | |||||||||||||||||
millions | Level 1 | Level 2 | Level 3 | |||||||||||||||||
September 30, 2019 | ||||||||||||||||||||
Oil Collars and Calls | ||||||||||||||||||||
Other current assets | $ | $ | $ | $ | ( | ) | $ | |||||||||||||
Accrued liabilities | ( | ) | ||||||||||||||||||
Deferred credits and other liabilities - other | ||||||||||||||||||||
Marketing Derivatives | ||||||||||||||||||||
Other current assets | ( | ) | ||||||||||||||||||
Long-term receivables and other assets, net | ( | ) | ||||||||||||||||||
Accrued liabilities | ( | ) | ||||||||||||||||||
Deferred credits and other liabilities - other | ( | ) | ||||||||||||||||||
Interest Rate Swaps (excluding WES) | ||||||||||||||||||||
Other current assets | ||||||||||||||||||||
Long-term receivables and other assets, net | ||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||
Deferred credits and other liabilities - other | ||||||||||||||||||||
WES Interest Rate Swaps | ||||||||||||||||||||
Accrued liabilities | ||||||||||||||||||||
Warrant | ||||||||||||||||||||
Deferred credits and other liabilities - other | ||||||||||||||||||||
December 31, 2018 | ||||||||||||||||||||
Marketing Derivatives | ||||||||||||||||||||
Other current assets | $ | $ | $ | $ | ( | ) | $ | |||||||||||||
Long-term receivables and other assets, net | ( | ) | ||||||||||||||||||
Accrued liabilities | ( | ) | ||||||||||||||||||
Deferred credits and other liabilities - other | ( | ) | ||||||||||||||||||
(a) |
Income Statement Classification | Three months ended September 30 | Nine months ended September 30 | ||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Oil Collars and Calls | ||||||||||||||||
Net sales | $ | $ | $ | $ | ||||||||||||
Marketing Derivatives | ||||||||||||||||
Net sales | ( | ) | ||||||||||||||
Interest Rate Swaps (Excluding WES) | ||||||||||||||||
Losses on interest rate swaps and warrants, net | ( | ) | ( | ) | ||||||||||||
Interest Rate Swaps (WES) | ||||||||||||||||
Losses on interest rate swaps and warrants, net | ( | ) | ( | ) | ||||||||||||
Warrants | ||||||||||||||||
Gains on interest rate swaps and warrants, net | ||||||||||||||||
millions | Fair-Value Measurements Using | |||||||||||||||||||||
Embedded derivatives | Level 1 | Level 2 | Level 3 | Netting and Collateral | Total Fair Value | |||||||||||||||||
As of September 30, 2019 | ||||||||||||||||||||||
Accrued liabilities | $ | $ | $ | $ | $ | |||||||||||||||||
Deferred credits and other liabilities - other | ||||||||||||||||||||||
As of December 31, 2018 | ||||||||||||||||||||||
Accrued liabilities | $ | $ | $ | $ | $ | |||||||||||||||||
Deferred credits and other liabilities - other | ||||||||||||||||||||||
millions | Balance at September 30, 2019 | |||
Occidental | ||||
4.850% senior notes due 2021 | $ | |||
2.600% senior notes due 2021 | ||||
4.100% senior notes due 2021 | ||||
Variable rate bonds due 2021 (3.137% as of September 30, 2019) | ||||
Variable rate bonds due 2021 (3.437% as of September 30, 2019) | ||||
2-year variable rate Term Loan due 2021 (3.417% as of September 30, 2019) | ||||
2.700% senior notes due 2022 | ||||
3.125% senior notes due 2022 | ||||
2.600% senior notes due 2022 | ||||
Variable rate bonds due 2022 (3.637% as of September 30, 2019) | ||||
2.700% senior notes due 2023 | ||||
8.750% medium-term notes due 2023 | ||||
2.900% senior notes due 2024 | ||||
6.950% senior notes due 2024 | ||||
3.450% senior notes due 2024 | ||||
3.500% senior notes due 2025 | ||||
5.550% senior notes due 2026 | ||||
3.200% senior notes due 2026 | ||||
3.400% senior notes due 2026 | ||||
7.500% debentures due 2026 | ||||
3.000% senior notes due 2027 | ||||
7.125% debentures due 2027 | ||||
7.000% debentures due 2027 | ||||
6.625% debentures due 2028 | ||||
7.150% debentures due 2028 | ||||
7.200% senior debentures due 2028 | ||||
7.200% debentures due 2029 | ||||
7.950% debentures due 2029 | ||||
8.450% senior debentures due 2029 | ||||
3.500 senior notes due 2029 | ||||
Variable rate bonds due 2030 (1.785% as of September 30, 2019) | ||||
7.500% senior notes due 2031 | ||||
7.875% senior notes due 2031 | ||||
6.450% senior notes due 2036 | ||||
Zero Coupon senior notes due 2036 | ||||
4.300% senior notes due 2039 | ||||
7.950% senior notes due 2039 | ||||
6.200% senior notes due 2040 | ||||
4.500% senior notes due 2044 | ||||
4.625% senior notes due 2045 | ||||
6.600% senior notes due 2046 | ||||
4.400% senior notes due 2046 | ||||
4.100% senior notes due 2047 | ||||
4.200% senior notes due 2048 | ||||
4.400% senior notes due 2049 | ||||
7.730% debentures due 2096 | ||||
7.500% debentures due 2096 | ||||
7.250% debentures due 2096 | ||||
Total borrowings at face value (a) | ||||
Adjustments to book value: | ||||
Unamortized premium, net | ||||
Debt issuance costs | ( | ) | ||
Long-term finance leases | ||||
Long-term Debt, net - Occidental | $ | |||
(a) Total borrowings at face value also includes a $310 thousand 7.25% senior note due 2025 | ||||
millions | Balance at September 30, 2019 | |||
WES | ||||
5.375% senior notes due 2021 | $ | |||
4.000% senior notes due 2022 | ||||
3.950% senior notes due 2025 | ||||
4.650% senior notes due 2026 | ||||
4.500% senior notes due 2028 | ||||
4.750% senior notes due 2028 | ||||
5.450% senior notes due 2044 | ||||
5.300% senior notes due 2048 | ||||
5.500% senior notes due 2048 | ||||
WES Term Loan Facility (3.420% as of September 30, 2019) | ||||
WES revolving credit facility (3.340% as of September 30,2019) | ||||
Total borrowings at face value | $ | |||
Adjustments to book value: | ||||
Unamortized discount net | ( | ) | ||
Debt issuance costs | ( | ) | ||
Long-term Debt, net - WES | $ | |||
Occidental Consolidated | ||||
Total borrowings at face value | $ | |||
Adjustments to book value: | ||||
Unamortized premium, net | ||||
Debt issuance costs | ( | ) | ||
Long-term finance leases | ||||
Total Occidental Consolidated Long-term Debt | $ | |||
millions | Balance at December 31, 2018 | |||
Occidental | ||||
9.250% senior debentures due 2019 | $ | |||
4.100% senior notes due 2021 | ||||
3.125% senior notes due 2022 | ||||
2.600% senior notes due 2022 | ||||
2.700% senior notes due 2023 | ||||
8.750% medium-term notes due 2023 | ||||
3.500% senior notes due 2025 | ||||
3.400% senior notes due 2026 | ||||
3.000% senior notes due 2027 | ||||
7.200% senior debentures due 2028 | ||||
8.450% senior debentures due 2029 | ||||
4.625% senior notes due 2045 | ||||
4.400% senior notes due 2046 | ||||
4.100% senior notes due 2047 | ||||
4.200% senior notes due 2048 | ||||
Variable rate bonds due 2030 (1.9% as of December 31, 2018) | ||||
Adjustments to book value: | ||||
Unamortized discount, net | ( | ) | ||
Debt issuance costs | ( | ) | ||
Current maturities | ( | ) | ||
Total Occidental Consolidated Long-term Debt | $ | |||
• | Leases that commenced before the effective date carried forward their historical lease classification. |
• | Existing or expired land easements as of December 31, 2018, were not reassessed to determine whether or not they contained a lease. |
• | Leases with a lease term of 12 months or less from lease commencement date are considered short-term leases and not recorded on the Consolidated Condensed Balance Sheet; however, the lease expenditures recognized are captured and reported as incurred. |
• | For asset classes, except long-term drilling rigs, Occidental elected to account for the lease and non-lease components as a single lease component as the non-lease portions were not significant to separate in determining the lease liability. For long-term drilling rig contracts, Occidental bifurcated the lease and non-lease components using relative fair value as a stand-alone selling price between the asset rental and the services obtained. |
millions | Operating Leases | Finance Leases | Total | |||||||||
Remainder of 2019 | $ | $ | $ | |||||||||
2020 | ||||||||||||
2021 | ||||||||||||
2022 | ||||||||||||
2023 | ||||||||||||
Thereafter | ||||||||||||
Total lease payments | ||||||||||||
Less: Interest | ( | ) | ( | ) | ( | ) | ||||||
Total lease liabilities | $ | $ | $ | |||||||||
millions | Balance sheet location | 2019 | ||||
Assets: | ||||||
Operating | Operating lease assets | $ | ||||
Finance | Property, plant and equipment | |||||
Total lease assets | $ | |||||
Liabilities: | ||||||
Current | ||||||
Operating | Current operating lease liabilities | $ | ||||
Finance | Current maturities of long-term debt | |||||
Non-current | ||||||
Operating | Deferred credits and other liabilities - Operating lease liabilities | |||||
Finance | Long-term debt, net - Occidental | |||||
Total lease liabilities | $ | |||||
Operating | Finance | |||||||||||
millions | Leases (a) | Leases (b) | Total | |||||||||
Remainder of 2019 | $ | $ | $ | |||||||||
2020 | ||||||||||||
2021 | ||||||||||||
2022 | ||||||||||||
2023 | ||||||||||||
Thereafter | ||||||||||||
Total lease payments | ||||||||||||
Less: Interest | ( | ) | ( | ) | ( | ) | ||||||
Total lease liabilities | $ | $ | $ | |||||||||
Operating | ||||
millions | Leases | |||
2019 | $ | |||
2020 | ||||
2021 | ||||
2022 | ||||
2023 | ||||
Thereafter | ||||
Total minimum lease payments(a) | $ | |||
Lease cost classification(a) | Three months ended September 30, 2019 | Nine months ended September 30, 2019 | ||||||
millions | ||||||||
Operating lease costs(b) | ||||||||
Property, plant and equipment, net | $ | $ | ||||||
Cost of sales | ||||||||
Selling, general and administrative expenses | ||||||||
Finance lease cost | ||||||||
Amortization of ROU assets | ||||||||
Interest on lease liabilities | ||||||||
$ | $ | |||||||
(a) Amounts reflected are gross before joint-interest recoveries. | ||||||||
(b) Includes short-term lease cost of $139 million and $295 million for the three and nine months ended September 30, 2019, respectively, and variable lease cost of $55 million and $115 million for the three and nine months ended September 30, 2019, respectively. | ||||||||
millions | Nine months ended September 30, 2019 | |||
Operating cash flows | $ | |||
Investing cash flows | ||||
Financing cash flows | ||||
Number of Sites | Reserve Balance (millions) | ||||||
NPL sites | $ | ||||||
Third-party sites | |||||||
Occidental-operated sites | |||||||
Closed or non-operated Occidental sites | |||||||
Environmental sites assumed from the Merger | |||||||
Total | $ | ||||||
shares in thousands | Common Stock | ||
Balance at December 31, 2018 | |||
Issued in the ordinary course | |||
Issued as part of the Merger (a) | |||
Balance at September 30, 2019 | |||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions except per-share amounts | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income (loss) attributable to common stockholders | $ | ( | ) | $ | $ | $ | ||||||||||
Less: Net income allocated to participating securities | ||||||||||||||||
Net income (loss), net of participating securities | $ | ( | ) | $ | $ | $ | ||||||||||
Weighted average number of basic shares | ||||||||||||||||
Net income (loss) attributable to common stockholders per share—basic | $ | ( | ) | $ | $ | $ | ||||||||||
Net income (loss), net of participating securities | $ | ( | ) | $ | $ | $ | ||||||||||
Weighted average number of basic shares | ||||||||||||||||
Dilutive securities | ||||||||||||||||
Total diluted weighted-average common shares | ||||||||||||||||
Net income (loss) attributable to common stockholders per share—diluted | $ | ( | ) | $ | $ | $ | ||||||||||
millions | Gains and (losses) on derivatives | Pension and postretirement benefit plans | Foreign currency translation adjustments | Total | ||||||||||||
Balance at December 31, 2018 | $ | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||||
Other comprehensive loss, before reclassifications | ( | ) | ( | ) | ( | ) | ||||||||||
Balance at September 30, 2019 | $ | ( | ) | $ | ( | ) | $ | ( | ) | $ | ( | ) | ||||
millions | Oil and Gas | Chemical | Marketing and Other Midstream | WES Midstream (a) | Corporate and Eliminations | Total | ||||||||||||||||||
Three months ended September 30, 2019 | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | $ | $ | $ | $ | ( | ) | (b) | $ | ( | ) | |||||||||||||
Income tax expense | ( | ) | ( | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | $ | ( | ) | $ | ( | ) | ||||||||||||||
Three months ended September 30, 2018 | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income tax expense | ( | ) | ( | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Nine months ended September 30, 2019 | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | $ | $ | $ | $ | ( | ) | (b) | $ | |||||||||||||||
Income tax expense | ( | ) | ( | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Nine months ended September 30, 2018 | ||||||||||||||||||||||||
Net sales | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income (loss) from continuing operations before income taxes | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Income tax expense | ( | ) | ( | ) | ||||||||||||||||||||
Income (loss) from continuing operations | $ | $ | $ | $ | $ | ( | ) | $ | ||||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales (a) | ||||||||||||||||
Oil and Gas | $ | 3,821 | $ | 2,889 | $ | 8,890 | $ | 7,874 | ||||||||
Chemical | 1,071 | 1,185 | 3,128 | 3,515 | ||||||||||||
Marketing and Other Midstream | 780 | 1,367 | 2,505 | 2,359 | ||||||||||||
WES Midstream (b) | 383 | — | 383 | — | ||||||||||||
Eliminations | (368 | ) | (225 | ) | (795 | ) | (686 | ) | ||||||||
$ | 5,687 | $ | 5,216 | $ | 14,111 | $ | 13,062 | |||||||||
Income from continuing operations | ||||||||||||||||
Oil and Gas | $ | 221 | $ | 767 | $ | 1,431 | $ | 2,297 | ||||||||
Chemical | 207 | 321 | 680 | 936 | ||||||||||||
Marketing and Other Midstream | 266 | 1,698 | 876 | 2,127 | ||||||||||||
WES Midstream (b) | 134 | — | 134 | — | ||||||||||||
$ | 828 | $ | 2,786 | $ | 3,121 | $ | 5,360 | |||||||||
Unallocated corporate items | ||||||||||||||||
Interest expense, net | (360 | ) | (92 | ) | (586 | ) | (275 | ) | ||||||||
Income tax expense | (116 | ) | (710 | ) | (647 | ) | (1,351 | ) | ||||||||
Other items, net (c) | (1,089 | ) | (115 | ) | (1,359 | ) | (309 | ) | ||||||||
Income (loss) from continuing operations | $ | (737 | ) | $ | 1,869 | $ | 529 | $ | 3,425 | |||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Oil and Gas | ||||||||||||||||
Asset impairments - domestic | $ | (285 | ) | $ | — | $ | (285 | ) | $ | — | ||||||
Asset impairments - international | (40 | ) | (196 | ) | (40 | ) | (196 | ) | ||||||||
Oil collars gains | 75 | — | 75 | — | ||||||||||||
Total oil and gas | $ | (250 | ) | $ | (196 | ) | $ | (250 | ) | $ | (196 | ) | ||||
Marketing and Other Midstream | ||||||||||||||||
Asset and equity investment sales gains | $ | 111 | $ | 902 | $ | 111 | $ | 902 | ||||||||
Corporate | ||||||||||||||||
Anadarko merger-related costs | $ | (924 | ) | $ | — | $ | (974 | ) | $ | — | ||||||
Bridge loan financing fees | (65 | ) | — | (122 | ) | — | ||||||||||
Merger-related pension and other termination benefits | 20 | — | 20 | — | ||||||||||||
Gains (losses) on interest rate swaps and warrants, net | (33 | ) | — | (33 | ) | — | ||||||||||
Total Corporate | $ | (1,002 | ) | $ | — | $ | (1,109 | ) | $ | — | ||||||
Tax effect of items affecting comparability | 151 | (197 | ) | 164 | (197 | ) | ||||||||||
Income from continuing operations | (990 | ) | 509 | (1,084 | ) | 509 | ||||||||||
Discontinued operations | (15 | ) | — | (15 | ) | — | ||||||||||
Total | $ | (1,005 | ) | $ | 509 | $ | (1,099 | ) | $ | 509 | ||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
millions, except percentages | 2019 | 2018 | 2019 | 2018 | ||||||||||||
Income (loss) from continuing operations before income taxes | $ | (621 | ) | $ | 2,579 | $ | 1,176 | $ | 4,776 | |||||||
Income tax (expense) benefit | ||||||||||||||||
Federal and state | 181 | (362 | ) | 69 | (533 | ) | ||||||||||
Foreign | (297 | ) | (348 | ) | (716 | ) | (818 | ) | ||||||||
Total income tax expense | (116 | ) | (710 | ) | (647 | ) | (1,351 | ) | ||||||||
Income (loss) from continuing operations | $ | (737 | ) | $ | 1,869 | $ | 529 | $ | 3,425 | |||||||
Worldwide effective tax rate | (19 | )% | 28 | % | 55 | % | 28 | % | ||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||
Sales Volumes per Day | ||||||||||||
Oil (MBBL) | ||||||||||||
United States | 486 | 256 | 351 | 241 | ||||||||
Middle East | 120 | 154 | 133 | 138 | ||||||||
Latin America | 35 | 31 | 33 | 31 | ||||||||
NGL (MBBL) | ||||||||||||
United States | 168 | 73 | 112 | 65 | ||||||||
Middle East | 33 | 34 | 33 | 30 | ||||||||
Natural Gas (MMCF) | ||||||||||||
United States | 1,085 | 332 | 633 | 315 | ||||||||
Middle East | 550 | 552 | 540 | 504 | ||||||||
Latin America | 8 | 6 | 7 | 6 | ||||||||
Total Continuing Operations Volumes (MBOE) (a) | 1,116 | 696 | 859 | 643 | ||||||||
Discontinued Operations - Africa | 41 | — | 14 | — | ||||||||
Total Sales Volumes (MBOE) (a) | 1,157 | 696 | 873 | 643 | ||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||||
2019 | 2018 | 2019 | 2018 | |||||||||||||
Average Realized Prices | ||||||||||||||||
Oil ($/BBL) | ||||||||||||||||
United States | $ | 54.90 | $ | 56.36 | $ | 53.27 | $ | 59.38 | ||||||||
Middle East | $ | 62.17 | $ | 71.71 | $ | 62.86 | $ | 66.80 | ||||||||
Latin America | $ | 54.98 | $ | 69.94 | $ | 58.00 | $ | 64.90 | ||||||||
Total Worldwide | $ | 56.26 | $ | 62.67 | $ | 56.02 | $ | 62.29 | ||||||||
NGL ($/BBL) | ||||||||||||||||
United States | $ | 13.91 | $ | 31.82 | $ | 15.20 | $ | 29.38 | ||||||||
Middle East | $ | 20.22 | $ | 24.66 | $ | 21.33 | $ | 23.50 | ||||||||
Total Worldwide | $ | 14.96 | $ | 29.55 | $ | 16.62 | $ | 27.54 | ||||||||
Natural Gas ($/MCF) | ||||||||||||||||
United States | $ | 1.25 | $ | 1.58 | $ | 1.05 | $ | 1.70 | ||||||||
Latin America | $ | 7.05 | $ | 6.74 | $ | 7.14 | $ | 6.16 | ||||||||
Total Worldwide | $ | 1.38 | $ | 1.62 | $ | 1.33 | $ | 1.67 | ||||||||
Average Index Prices | ||||||||||||||||
WTI oil ($/BBL) | $ | 56.45 | $ | 69.50 | $ | 57.06 | $ | 66.75 | ||||||||
Brent oil ($/BBL) | $ | 62.01 | $ | 75.97 | $ | 64.74 | $ | 72.68 | ||||||||
NYMEX gas ($/MCF) | $ | 2.27 | $ | 2.88 | $ | 2.72 | $ | 2.83 | ||||||||
Average Realized Prices as Percentage of Average Index Prices | ||||||||||||||||
Worldwide oil as a percentage of average WTI | 100 | % | 90 | % | 98 | % | 93 | % | ||||||||
Worldwide oil as a percentage of average Brent | 91 | % | 82 | % | 87 | % | 86 | % | ||||||||
Worldwide NGL as a percentage of average WTI | 27 | % | 43 | % | 29 | % | 41 | % | ||||||||
Domestic natural gas as a percentage of average NYMEX | 55 | % | 55 | % | 39 | % | 60 | % | ||||||||
millions (except for percentages) | ||||
Percent change in commodity prices | Resulting Net Fair Value position-asset (liability) | Change to Fair Value from September 30, 2019 position | ||
+ 5% | $(91) | $(186) | ||
- 5% | $261 | $166 | ||
+ 10% | $(300) | $(395) | ||
-10% | $410 | $315 | ||
Period | Total Number of Shares Purchased (a) | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs (b) | |||||||||
First Quarter 2019 | 2,690,000 | $ | 66.94 | 2,690,000 | |||||||||
Second Quarter 2019 | — | $ | — | — | |||||||||
Third Quarter 2019 | — | $ | — | — | |||||||||
Total | 2,690,000 | $ | 66.94 | 2,690,000 | 44,206,787 | ||||||||
(a) | There were no purchases from the trustee of Occidental's defined contribution savings plan in the third quarter. |
(b) | Represents the total number of shares remaining at September 30, 2019, under Occidental's share repurchase program of 185 million shares. The program was initially announced in 2005. The program does not obligate Occidental to acquire any specific number of shares and may be discontinued at any time. |
2.1 | |
3.1 | |
4.1 | |
4.2 | |
4.3 | |
4.4 | |
4.5 | |
4.6 | |
4.7 | |
4.8 | |
4.9 | |
4.10 | |
4.11 | |
4.12 | |
4.13 | |
4.14 | |
4.15 | |
4.16 | |
4.17 | |
4.18 | |
4.19 | |
4.20 | |
4.21 | |
4.22 | |
4.23 | |
4.24 | |
4.25 | |
4.26 | |
4.27 | |
4.28 | |
4.29 | |
4.30 | |
4.31 | |
4.32 | |
4.33 | |
4.34 | |
4.35 | |
4.36 | |
4.37 | |
4.38 | |
4.39 | |
4.40 | |
4.41 | |
4.42 | |
10.1 | |
10.2 | |
10.3# | |
10.4#* | |
10.5#* | |
10.6# | |
10.7#* | |
10.8#* | |
10.9#* | |
31.1* | |
31.2* | |
32.1** | |
101.INS* | Inline XBRL Instance Document. |
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. |
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. |
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. |
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. |
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
OCCIDENTAL PETROLEUM CORPORATION | ||
November 4, 2019 | /s/ Christopher O. Champion | |
Christopher O. Champion | ||
Vice President, Chief Accounting Officer and | ||
Controller | ||
“(5) | Any Employee of Anadarko Petroleum Corporation who is not a citizen or legal resident of the United States and is not regularly employed at a worksite of Employer within the United States shall not be eligible to participate in the Plan.” |
(a) | Any corporation other than the Company (i.e., either a subsidiary corporation or an affiliated or associated corporation of the Company), which together with the Company is a member of a “controlled group” of corporations; |
(b) | Any organization with which the Company is under “common control”; |
(c) | Any organization which together with the Company is an “affiliated service group”; |
(d) | A limited liability company wholly owned by the Company; or |
(e) | Any foreign affiliate of the Company which is covered by an agreement under Section 3121(1) of the Code; as those terms are used in Code Sections 414(b), 414(c), 414(m), and 406(a), respectively. |
(a) | Filing a Claim. A Participant or his authorized representative may file a claim for benefits under the Plan (hereafter, referred to as a “Claimant”). Any claim must be in writing and submitted to the Committee at such address as may be specified from time to time. Claimants will be notified in writing of approved claims, which will be processed as claimed. A claim is considered approved only if its approval is communicated in writing to the Claimant. |
(b) | Denial of Claim. In the case of the denial of a claim respecting benefits paid or payable with respect to a Participant, a written notice will be furnished to the Claimant within 90 days of the date on which the claim is received by the Committee. If special circumstances (such as for a hearing) require a longer period, the Claimant will be notified in writing, prior to the expiration of the 90-day period, of the reasons for an extension of time; provided, however, that no extensions will be permitted beyond 90 days after the expiration of the initial 90-day period. |
(c) | Reasons for Denial. A denial or partial denial of a claim will be dated and signed by the Committee and will clearly set forth: |
(1) | the specific reason or reasons for the denial; |
(2) | specific reference to pertinent Plan provisions on which the denial is based; |
(3) | a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of why such material or information is necessary; and |
(4) | an explanation of the procedure for review of the denied or partially denied claim set forth below, including the claimant’s right to bring a civil action under ERISA Section 502(a) following an adverse benefit determination on review. |
(d) | Review of Denial. Upon denial of a claim, in whole or in part, the Claimant or his duly authorized representative will have the right to submit a written request to the Committee for a full and fair review of the denied claim by filing a written notice of appeal with the Committee within 60 days of the receipt by the Claimant of written notice of the denial of the claim. A Claimant or the Claimant’s authorized representative will have, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other |
(e) | Decision Upon Review. The Committee will provide a prompt written decision on review to the Claimant. If the claim is denied on review, the decision shall set forth: |
(1) | the specific reason or reasons for the adverse determination; |
(2) | specific reference to pertinent Plan provisions on which the adverse determination is based; |
(3) | a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the Claimant’s claim for benefits; and |
(4) | a statement describing any voluntary appeal procedures offered by the Plan and the Claimant’s right to obtain the information about such procedures, as well as a statement of the Claimant’s right to bring an action under ERISA Section 502(a). |
(f) | Other Procedures. Notwithstanding the foregoing, the Committee, in its discretion, may adopt different procedures for different claims |
(g) | Finality of Determinations: Exhaustion of Remedies. To the extent permitted by law, decisions reached under the claims procedures set forth in this Section 7.08 shall be final and binding on all parties. No legal action for benefits under the Plan shall be brought unless and until the Claimant has exhausted his remedies under this Section. In any such legal action, the Claimant may only present evidence and theories which the Claimant presented during the claims procedure. Any claims which the Claimant does not in good faith pursue through the review stage of the procedure shall be treated as having been irrevocably waived. Judicial review of a Claimant’s denied claim shall be limited to a determination of whether the denial was an abuse of discretion based on the evidence and theories the Claimant presented during the claims procedure. Any suit or legal action initiated by a Claimant under the Plan must be brought by the Claimant no later than one year following a final decision on the claim for benefits by the Committee. The one-year limitation on suits for benefits will apply in any forum where a Claimant initiates such suit or legal action. |
(h) | Effect of Committee Action. The Plan shall be interpreted by the Committee in accordance with the terms of the Plan and their intended meanings. However, the Committee shall have the discretion to make any findings of fact needed in the administration of the Plan, and shall have the discretion to interpret or construe ambiguous, unclear or implied (but omitted) terms in any fashion they deem to be appropriate in their sole judgment. The validity of any such finding of fact, interpretation, construction or decision shall not be given de novo review if challenged in court, by arbitration or in any other forum, and shall be upheld unless clearly arbitrary or capricious. To the extent the Committee has been granted discretionary authority under the Plan, the Committee’s prior exercise of such authority shall not obligate it to exercise its authority in a like fashion thereafter. If, due to errors in drafting, any Plan provision does not accurately reflect its intended meaning, as demonstrated by consistent interpretations or other evidence of intent, or as determined by the Committee in its sole and exclusive judgment, the provision shall be considered ambiguous and shall be interpreted by the Committee in a fashion consistent with its intent, as determined by the Committee in its sole discretion. The Committee may amend the Plan retroactively to cure any such ambiguity. This Section 7.08(h) may not be invoked by any |
(a) | Missing Participant or Beneficiary. Payment of benefits to the person entitled thereto may be sent by first class mail, address correction requested, to the last known address on file with the Committee. If, within two months from the date of issuance of the payment, the payment letter cannot be delivered to the person entitled thereto or the payment has not been negotiated, the payment shall be treated as forfeited. However, if the person to whom the benefit became payable subsequently appears and identifies himself to the satisfaction of the Committee, the amount forfeited (without earnings thereon) shall be distributed to the person entitled thereto. The right of any person to restoration of a benefit which was forfeited pursuant to this Section shall cease upon termination of the Plan. |
(b) | Private Investigators. If the Committee retains a private investigator or other person or service to assist in locating a missing person, all costs incurred for such services shall be charged against the benefit to which the missing person was believed to be entitled and the benefit shall be reduced by the amount of the costs incurred, except as the Committee may otherwise direct. |
(c) | Delayed Payment. Payments to Participants or Beneficiaries may be postponed by the Committee until any anticipated taxes, expenses or amounts to be paid under a qualified domestic relations order have been paid in full or until it is determined that such charges will not be imposed. A payment to a Participant or Beneficiary may also be delayed in the event payment might defeat an adverse potential or asserted claim by some other person to the payment. The cost incurred by the Company in dealing with any such adverse claim shall be charged against the benefit to which the claim relates, except as the Committee otherwise directs. No delay may be made under this Section 8.05(c) if such delay would result in taxation to the Participant under Code Section 409A. |
(a) | General Rule. A Participant’s employment with the Company or its Affiliates shall terminate upon the first to occur of his resignation from or discharge by the Company or its Affiliates (except as provided in subsection (c) with respect to business dispositions) or his death or retirement. A Participant’s employment shall not terminate on account of an authorized leave of absence, disability leave, sick leave, vacation, on account of a military leave described in subsection (b), or transfers between the Company and its Affiliates. However, failure to return to work upon expiration of any leave of absence, sick leave, disability leave, or vacation shall be considered a resignation effective as of the expiration of such leave of absence, sick leave, disability leave, or vacation. |
(b) | Military Leaves. Any Participant who leaves the Company or its Affiliates directly to perform service in the Armed Forces of the United States or in the United States Public Health Service under conditions entitling the Participant to reemployment rights, as provided in the laws of the United States, shall be on military leave. A Participant’s military leave shall expire if the Participant voluntarily resigns from the Company or its Affiliates during the leave or if he fails to make application for reemployment within the period specified by such law for the preservation of reemployment rights. In such event, the individual’s employment shall be deemed to terminate by resignation on the date the military leave expired. |
(c) | Spinoffs. Except to the extent otherwise provided by Code Section 409A, if a Participant ceases to be employed by the Company or its Affiliates because of the disposition by the Company or its Affiliates of its interest in a subsidiary, plant, facility or other business unit or if an entity which employs a Participant ceases to be an Affiliate, such Participant’s employment shall be considered terminated for all Plan purposes. This Section 8.06(c) shall not apply to the extent it is overridden by any contrary or inconsistent provision in applicable sales documents or any related documents, whether adopted before or after the sale and any such contrary or inconsistent provision shall instead apply and is hereby incorporated in the Plan by this reference. |
(a) | Data Requests. Every person with an interest in the Plan or claiming benefits under the Plan shall furnish the Committee on a timely and accurate basis with such documents, evidence or information as it considers necessary or desirable for the purpose of administering the Plan. The Committee may postpone payment of benefits (without accrual of interest) until such information and such documents have been furnished. |
(b) | Addresses. Every person claiming a benefit under the Plan shall give written notice to the Committee of his post office address and each change of post office address. Any communication, statement or notice addressed to such a person at his latest post office address as filed with the Committee will, on deposit in the United States mail with postage prepaid, be as binding upon such person for all purposes of the Plan as if it had been received, whether actually received or not. If a person fails to give notice of his correct address, the Committee, the Company and its Affiliates and Plan fiduciaries shall not be obliged to search for, or to ascertain, his whereabouts. |
(c) | Failure to Comply. If benefits which are otherwise currently payable cannot be paid to the person entitled to the benefits because the individual has failed to comply with this Section or other Plan provisions relating to claims for benefits, any unpaid past due amount shall be forfeited on the individual’s death or presumed death. |
(1) | This First Supplement to the Kerr-McGee Corporation Benefits Restoration Plan (the “First Supplement”) forms a part of the Kerr-McGee Corporation Benefits Restoration Plan as in effect on and after May 1, 1999 (the “Plan”). The provisions of this First Supplement shall apply only to those Participants who were Participants in the Oryx Energy Company Pension Restoration Plan (the “Oryx Plan”) as of December 31, 1999 (“Former Oryx Participants”) who became Participants in the Plan effective January 1, 2000 (hereinafter referred to as “First Supplement Participants”). |
(2) | There shall be no duplication of benefits provided under the Plan and this First Supplement, and the actuarially equivalent benefits payable under one shall be inclusive of the actuarially equivalent benefits payable under the other unless specifically provided otherwise in the provisions of the Plan or this First Supplement. |
(3) | All terms used in this First Supplement shall have the meanings assigned to them in the provisions of the Plan, unless a different meaning is plainly required by the context. |
(1) | The Oryx Plan had previously been sponsored by Oryx Energy Company (“Oryx”). Oryx was merged with Kerr-McGee Corporation (“KMG”) effective February 26, 1999 (the “Merger”). Due to the Merger, KMG assumed the Oryx Plan and obligations thereunder including those to the Former Oryx Participants. |
(2) | KMG believed that it would be in the best interest of the Oryx Plan, the Plan and the Participants therein that the Oryx Plan be merged and continued in the Plan effective January 1, 2000. |
(3) | The effective date of the merger of the Oryx Plan into the Plan shall be January 1, 2000. |
(4) | Upon merger of the Oryx Plan into the Plan effective January 1, 2000, there shall be no further benefit accruals pursuant to the terms of the Oryx Plan, and benefits for all First Supplement Participants shall accrue thereafter in accordance with the terms of the Plan. Following the merger, all benefits earned under the Oryx Plan prior to January 1, 2000, and benefits earned pursuant to the Plan from and after |
(1) | The term “Defined Benefit Plan” as applicable for a First Supplement Participant means the Kerr-McGee Corporation Retirement Plan or its successor plan or the Oryx Energy Company Retirement Plan prior to its merger with the Kerr-McGee Corporation Retirement Plan on January 1, 2000. |
(2) | The Restored Defined Benefit Plan Benefit under the Plan accrued by a First Supplement Participant under Section 7 of the Oryx Plan as of January 1, 2000, immediately prior to the merger of the Oryx Plan with the Plan (hereinafter referred to as the “Oryx Plan Restored Benefit”) will be paid at the same time as the benefits under the Defined Benefit Plan and in the form of a lump sum, subject to offset pursuant to Section 9 of the Oryx Plan, if applicable, regardless of the form of payment of the benefit under the Defined Benefit Plan. The amount of such lump sum will be determined as the actuarial equivalent of the Oryx Plan Restored Benefit. Such actuarial equivalency will be determined in the same manner as and on the same basis as the actuarial assumptions provided in the Defined Benefit Plan. The provisions of Section 6.01 of the Plan are not applicable to the Oryx Plan Restored Benefit of a First Supplement Participant. |
(3) | Effective January 1, 2000, that portion, if any, of the Restored Defined Benefit Plan Benefit under the Plan payable to a First Supplement Participant that is in excess of the Participant’s Oryx Plan Restored Benefit will be payable in accordance with Section 6.01 of the Plan. |
(4) | Former Oryx Participants who were receiving or who were eligible to receive benefits from the Sun Company, Inc. Pension Restoration Plan and who were transferred to the Oryx Plan as of November 1, 1988, shall continue to receive or be eligible to receive their benefits under the Plan. |
1. | I have reviewed this quarterly report on Form 10-Q of Occidental Petroleum Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Vicki Hollub | ||
Vicki Hollub | ||
President and Chief Executive Officer | ||
1. | I have reviewed this quarterly report on Form 10-Q of Occidental Petroleum Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5. | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
/s/ Cedric W. Burgher | ||
Cedric W. Burgher | ||
Senior Vice President and Chief Financial Officer | ||
(1) | The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
/s/ Vicki Hollub | ||
Name: | Vicki Hollub | |
Title: | President and Chief Executive Officer | |
Date: | November 4, 2019 | |
/s/ Cedric W. Burgher | ||
Name: | Cedric W. Burgher | |
Title: | Senior Vice President and Chief Financial Officer | |
Date: | November 4, 2019 | |
Acquisitions, Dispositions, and Other Transactions (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Revenues, Costs and Assets Held for Sale of Discontinued Operations | The following table presents the amounts reported in discontinued operations, net of income taxes, related to the Africa Assets subsequent to the Merger closing date through September 30, 2019:
The following table presents the amounts reported in the Consolidated Condensed Balance Sheets as held for sale related to the Africa Assets and other corporate property.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lawsuits, Claims, Commitments and Contingencies |
9 Months Ended |
|---|---|
Sep. 30, 2019 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Lawsuits, Claims, Commitments and Contingencies | Lawsuits, Claims, Commitments and Contingencies Legal Matters Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries also are involved in proceedings under Comprehensive Environmental Response, Compensation and Liability Act (CERCLA) and similar federal, state, local and foreign environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief. Usually Occidental or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction. In accordance with applicable accounting guidance, Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. In Note 12 - Environmental Liabilities and Expenditures, Occidental has disclosed its reserve balances for environmental remediation matters that satisfy this criteria. Reserve balances for matters, other than environmental remediation, that satisfy this criteria as of September 30, 2019, and December 31, 2018, were not material to Occidental’s Consolidated Condensed Balance Sheets. In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental's Participation Contract for Block 15. The awarded amount represented a recovery of 60 percent of the value of Block 15. In 2017, Andes Petroleum Ecuador Ltd. (Andes) filed a demand for arbitration, claiming it is entitled to a 40 percent share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60 percent economic interest in the block. The merits hearing is scheduled for May 2020. Occidental intends to vigorously defend against this claim in arbitration. On May 30, 2019, a complaint was filed in the Court of Chancery of the State of Delaware by purported Occidental stockholders High River Limited Partnership, Icahn Partners Master Fund LP and Icahn Partners LP (the “Icahn Complainants”), captioned High River Ltd. P’ship v. Occidental Petroleum Corp., C.A. No. 2019-0403-JRS, seeking inspection of Occidental’s books and records pursuant to Section 220 of the Delaware General Corporation Law. In the complaint, the Icahn Complainants noted that they had accumulated over $1.6 billion of Occidental Common Stock. On June 14, 2019, Occidental filed an answer to the complaint in the Court of Chancery of the State of Delaware. A trial was held on September 20, 2019, and the parties are awaiting a ruling. The ultimate outcome and impact of outstanding lawsuits, claims and proceedings on Occidental cannot be predicted. Management believes that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on Occidental's Consolidated Condensed Balance Sheets. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. Occidental reassesses the probability and estimability of contingent losses as new information becomes available. Tax Matters During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and foreign tax jurisdictions. With the Merger, Occidental maintains two separate federal consolidated groups. For the legacy Occidental group, taxable years through 2016 for United States federal income tax purposes have been audited by the United States Internal Revenue Service (IRS) pursuant to its Compliance Assurance Program and subsequent taxable years are currently under review. Taxable years through 2009 have been audited for state income tax purposes. While a single foreign tax jurisdiction is open for 2002 and subsequent years, all other significant audit matters in foreign jurisdictions have been resolved through 2010. For Anadarko, taxable years through 2016 for United States federal and state income tax purposes have been audited by the IRS and respective state taxing authorities. While the local country audit of a single foreign tax jurisdiction is open for tax years 2011 through 2013, there are no outstanding significant audit matters in foreign jurisdictions. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated financial position or results of operations. The tax deduction for the Tronox Adversary Proceeding (Tronox) settlement payment contributed to a net operating loss reported on Anadarko’s 2015 federal income tax return that was subsequently carried back to previous years and resulted in a tentative cash refund of $881 million of prior taxes paid, which was received in 2016. While Occidental believes it is entitled to this refund, in accordance with ASC 740's guidance on the accounting for uncertain tax positions, as of September 30, 2019, Occidental has recorded no tax benefit on the tentative cash tax refund of prior federal taxes paid of $881 million. As a result, should Occidental not ultimately prevail on the issue, there would be no tax expense recorded for financial statement purposes other than future interest. However, in that event Occidental would be required to repay approximately $917 million ($898 million federal and $19 million in state taxes) plus accrued interest of approximately $171 million. Indemnities to Third Parties Occidental, its subsidiaries, or both, have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of September 30, 2019, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves. Purchase Obligations and Commitments Occidental, its subsidiaries, or both, have entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling rigs and services, electrical power, steam and certain chemical raw materials. Occidental has certain other commitments under contracts, guarantees and joint ventures, including purchase commitments for goods and services at market-related prices and certain other contingent liabilities. As of September 30, 2019, there were no material changes to Occidental's legacy purchase obligations since disclosure in the 2018 Form 10-K. In the Merger, Occidental assumed purchase obligations of approximately $5.2 billion, which included approximately $315 million, $1.0 billion, $907 million, $735 million, $589 million and $1.6 billion that will be paid for the remainder of 2019, 2020, 2021, 2022, 2023, and 2024 and thereafter, respectively. These amounts were discounted at 3.88%. These purchase obligations are related to long-term and work-related commitments for drilling wells, obtaining and processing seismic data, and fulfilling rig commitments, as well as various processing, transportation, storage, and purchase agreements to access markets and provide flexibility to sell its oil, natural gas, and NGL in certain areas.
|
Industry Segments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Industry Segments | Industry Segments Occidental conducts its operations through four segments: (1) Oil and Gas; (2) Chemical; (3) Marketing and Other Midstream; and (4) WES Midstream. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko merger-related costs and unallocated corporate expenses are included under Corporate and Eliminations. 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:
(a) The WES Midstream segment results represent the period from August 8, 2019, the Merger date, through September 30, 2019. (b) The three months ended September 30, 2019 includes merger-related costs of $924 million and amortized debt financing fees of $65 million. The nine months ended September 30, 2019 includes merger-related costs of $974 million and amortized debt financing fees of $122 million.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions, Dispositions, and Other Transactions - Summary of Revenues and Costs from Discontinued Operations (Details) - USD ($) $ in Millions |
2 Months Ended | 3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| COSTS AND OTHER DEDUCTIONS | |||||
| Discontinued operations, net of tax | $ (15) | $ 0 | $ (15) | $ 0 | |
| Anadarko's Africa Assets | Discontinued Operations, Disposed of by Sale | |||||
| REVENUES AND OTHER INCOME | |||||
| Net sales | $ 228 | ||||
| COSTS AND OTHER DEDUCTIONS | |||||
| Oil and gas operating expense | 32 | ||||
| Transportation and marketing expense | 4 | ||||
| Taxes other than on income | 46 | ||||
| Fair value adjustment on assets held for sale | 65 | ||||
| Selling, general and administrative | 8 | ||||
| Other | 4 | ||||
| Costs and other deductions, net | 159 | ||||
| Income before income taxes | 69 | ||||
| Income tax expense | (84) | ||||
| Discontinued operations, net of tax | $ (15) | ||||
Lease Commitments - Schedule of Future Minimum Lease Payments (Details) $ in Millions |
Dec. 31, 2018
USD ($)
|
|---|---|
| Leases [Abstract] | |
| 2019 | $ 186 |
| 2020 | 147 |
| 2021 | 96 |
| 2022 | 68 |
| 2023 | 49 |
| Thereafter | 158 |
| Total minimum lease payments(a) | $ 704 |
Revenue Recognition - Contract Liabilities (Details) $ in Millions |
9 Months Ended |
|---|---|
|
Sep. 30, 2019
USD ($)
| |
| Change in Contract with Customer Liability [Roll Forward] | |
| Balance at December 31, 2018 | $ 0 |
| Increase due to contract liabilities acquired with Anadarko | 154 |
| Increase due to cash received, excluding revenues recognized in the period | 9 |
| Decrease due to revenue recognized | (13) |
| Balance at September 30, 2019 | $ 150 |
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions |
Oct. 15, 2019 |
Aug. 08, 2019 |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|---|---|
| Class of Stock [Line Items] | ||||
| Preferred stock, authorized shares (in shares) | 50,000,000 | |||
| Preferred stock, par value (in dollars per share) | $ 1.00 | $ 1.00 | ||
| Preferred stock, issued (in shares) | 100,000 | |||
| Preferred stock, outstanding (in shares) | 100,000 | 0 | ||
| Series A Preferred Stock | Subsequent Event | ||||
| Class of Stock [Line Items] | ||||
| Payments of preferred stock dividends | $ 149 | |||
| Anadarko | Series A Preferred Stock | ||||
| Class of Stock [Line Items] | ||||
| Issued as part of the Merger (in shares) | 100,000 | |||
| Face value (in usd per share) | $ 100,000 | |||
| Preferred stock accrual rate per annum | 8.00% | |||
| Preferred stock accrual rate per annum on unpaid amounts | 9.00% |
The Merger |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Business Combinations [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Merger | The Merger On May 9, 2019, Occidental entered into the Merger Agreement with Anadarko. On August 8, 2019, Anadarko’s stockholders voted to approve the Merger and it was made effective the same day. The Merger added to Occidental's oil and gas portfolio, primarily in the Permian Basin, DJ Basin and Gulf of Mexico, and a controlling interest in WES. In exchange for each share of Anadarko common stock, Anadarko stockholders received $59.00 in cash and 0.2934 of a share of Occidental common stock, plus cash in lieu of any fractional share of Occidental common stock that otherwise would have been issued, based on the average price of $46.31 per share of Occidental common stock on the NYSE on August 8, 2019. In connection with the Merger, Occidental issued $13.0 billion of new senior unsecured notes, $8.8 billion of term loans (the Term Loans) and 100,000 shares of series A preferred stock (the Preferred Stock) with a warrant to purchase 80 million shares of Occidental common stock at an exercise price of $62.50 (the Warrant) for $10 billion. In addition, Occidental increased its existing $3.0 billion revolving credit facility by an additional $2.0 billion in commitments. See Note 9 - Long-term Debt and Note 14 - Stockholders' Equity for additional information. The Merger constitutes a business combination and was accounted for using the acquisition method of accounting. The following table presents the Merger consideration paid to Anadarko stockholders as a result of the Merger:
The following table sets forth the preliminary allocation of the Merger consideration. Certain data necessary to complete the purchase price allocation is not yet available, and includes, but is not limited to, final appraisals of assets acquired and liabilities assumed, valuation of pre-merger contingencies and final tax returns that provide underlying tax basis of assets acquired and liabilities assumed. Occidental will finalize the purchase price allocation during the 12-month period following the Merger date, during which time the value of the assets and liabilities may be revised as appropriate.
The aggregate purchase price noted above was allocated to the major categories of assets and liabilities acquired based upon their preliminary estimated fair values at the date of the Merger. The valuation of certain assets, including property and intangible assets, are based on preliminary appraisals. The majority of measurements of assets acquired and liabilities assumed, other than debt, are based on inputs that are not observable in the market and thus represent Level 3 inputs. The fair value of acquired properties and equipment is based on both available market data and a cost approach. Oil and natural gas properties were valued using either available market data based on the nature of the properties and the location or an income approach. Intangible assets primarily consist of third-party customer contracts, the fair value of which was determined using an income approach. Deferred income taxes represent the tax effects of differences in the tax basis and merger-date fair values of assets acquired and liabilities assumed. The measurement of debt instruments was based on unadjusted quoted prices in an active market and are primarily Level 1; approximately $6.1 billion of the assumed debt is considered Level 2. The value of derivative instruments was based on observable inputs, primarily forward commodity-price and interest-rate curves and is considered Level 2. The excess of the purchase price over the preliminary estimated fair value of the net tangible and identifiable intangible assets acquired totaled $6.1 billion in goodwill. Goodwill is attributable to the difference in the WES Midstream market capitalization value at the date of the Merger and the WES Midstream net assets acquired, and primarily represents the intrinsic value of the customer relationship between WES Midstream and Occidental. With the completion of the Merger, Occidental acquired proved and unproved properties of approximately $18.2 billion and $26.0 billion, respectively, primarily associated with the Permian Basin, DJ Basin, Gulf of Mexico and Powder River Basin. The remaining $5.0 billion is related to land, mineral interests and corporate properties. Other intangible assets of $2.4 billion primarily relate to customer contracts associated with the WES Midstream segment. These contracts are amortized over 25 years. The annual aggregate amortization expense for intangible assets is expected to be $108 million. From the date of the Merger through September 30, 2019, revenues and net loss attributable to common stockholders associated with Anadarko assets totaled $1.5 billion and $400 million, respectively. The following summarizes the unaudited pro forma condensed financial information of Occidental as if the Merger had occurred on January 1, 2018:
The unaudited pro forma information is presented for illustration purposes only and is not necessarily indicative of the operating results that would have occurred had the Merger been completed at January 1, 2018, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma information for 2019 and 2018 is a result of combining the three and nine months statements of operations of Occidental with the pre-merger results from January 1, 2019, and 2018 of Anadarko and includes adjustments for revenues and direct expenses. The pro forma results exclude results from the Africa Assets and the impact of any merger-related costs. The pro forma results include adjustments to DD&A (Depreciation, depletion and amortization) based on the purchase price allocated to property, plant, and equipment and intangibles and the estimated useful lives as well as adjustments to interest expense. The pro forma adjustments include estimates and assumptions based on currently available information. Management believes the estimates and assumptions are reasonable, and the relative effects of the Merger are properly reflected. The unaudited pro forma information does not reflect any cost savings anticipated as a result of the Merger or any merger-related costs. Anadarko Merger-Related Costs The following table summarizes the merger-related costs incurred:
Employee severance and related cost primarily relates to one-time severance costs and the accelerated vesting of certain Anadarko share-based awards for former Anadarko employees based on the terms of the Merger Agreement and existing change of control provisions within the former Anadarko employment agreements. In addition, employee severance and related cost includes expenses for a voluntary separation program for eligible employees. Occidental initiated this program to align the size and composition of its workforce with its expected future operating and capital plans. Employee notifications related to the voluntary separation program were ongoing at September 30, 2019, with additional expenses associated with the program expected to be incurred throughout the remainder of 2019 and through most of 2020. The seismic licensing fees relate to relicensing of critical seismic data related to the Gulf of Mexico, Permian Basin and DJ Basin that Anadarko had licensed from third-party vendors. The third-party vendors who own the seismic data require a transfer fee in order for Occidental to use the data. Occidental Stock-based Incentive Plans On the date of the Merger, Occidental issued restricted share awards covering 1.7 million shares of common stock in exchange for Anadarko stock-based incentive shares to the former Anadarko employees. These restricted shares vest in periods ranging from one month to 3.5 years and are conditioned solely on the employees' continued service, with a weighted-average grant-date fair value of $47.13 and a weighted-average remaining life of 1.3 years. Under the terms of the Merger Agreement, these restricted share awards would be subject to accelerated vesting based on a qualifying termination event.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments | Derivative Instruments Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity-price fluctuations and transportation commitments, to fix margins on the future sale of stored commodity volumes and interest rate risks. Occidental also enters into derivative financial instruments for trading purposes. Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies, such as to lock rates on forecasted debt issuances. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Derivatives Not Designated as Hedging Instruments As of September 30, 2019, Occidental's derivatives not designated as hedges consist of three-way oil collars and call options, interest rate swaps, marketing derivatives and the Warrant. Derivative instruments that are derivatives not designated as hedging instruments are required to be recorded on the statement of operations and balance sheet at fair value. Changes in fair value will impact Occidental's earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the realized or cash value of the instrument. Three-way Oil Collars and Call Options In July 2019, Occidental entered into three-way costless collar derivative instruments for 2020 and additional call options in 2021 to manage its near-term exposure to cash-flow variability from commodity-price risks. A three-way collar is a combination of three options: a sold call, a purchased put and a sold put. The sold call establishes the ceiling price that Occidental will receive for the contracted commodity volume for a defined period of time. The purchased put establishes the floor price that Occidental will receive for the contracted volumes unless the market price for the commodity falls below the sold put strike price, at which point the floor price equals the reference price plus the difference between the purchased put strike price and the sold put strike price for a defined period of time. Occidental entered into the 2021 call options to substantially improve the ceiling price that Occidental will receive for the contracted commodity volumes in 2020. In the Merger, Occidental also assumed three-way costless collars that expire throughout the rest of 2019. Net gains and losses associated with collars and calls are recognized currently in net sales. Hedge accounting was not elected for these contracts. Occidental had the following collars and calls outstanding at September 30, 2019:
Occidental Interest Rate Swaps (Excluding WES Midstream) Occidental acquired interest rate swap contracts in the Merger. The contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to three-month London Inter-Bank Offered Rate (LIBOR) throughout the reference period. Net gains and losses associated with interest rate derivative instruments not designated as hedging instruments are recognized currently in losses on interest rate swaps and warrants, net. Occidental had the following outstanding interest rate swaps at September 30, 2019:
Depending on market conditions, liability-management actions or other factors, Occidental may enter into offsetting interest rate swap positions or settle or amend certain or all of the currently outstanding interest rate swaps. Derivative settlements and collateralization are classified as cash flows from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified as cash flows from financing activities. As a result of prior extensions of reference-period start dates without settlement of the related interest rate derivative obligations, the interest rate derivatives in Occidental's portfolio contain an other-than-insignificant financing element, and therefore, any settlements, collateralization or cash payments for amendments related to these extended interest rate derivatives are classified as cash flows from financing activities. Net cash payments related to settlements and amendments of interest rate swap agreements were $43 million during the period from August 8, 2019, through September 30, 2019. Subsequent to September 30, 2019, Occidental settled interest rate swaps that had a mandatory termination date of October 11, 2019, and a notional value of $125 million. WES Interest Rate Swaps In the Merger, Occidental also acquired interest rate swap contracts held by WES. WES exchanged a floating interest rate indexed to the three-month LIBOR for a fixed interest rate. Net gains and losses associated with these interest rate derivative instruments are recognized currently in losses on interest rate swaps and warrants, net. The following interest rate swaps were outstanding at September 30, 2019:
Depending on market conditions, liability-management actions, or other factors, WES may settle or amend certain or all of the currently outstanding interest rate swaps. Marketing Derivatives Occidental's marketing derivative instruments not designated as hedges are physical and financial forward contracts which typically settle within three months. A substantial majority of Occidental's physically settled derivative contracts are index-based and carry no mark-to-market valuation in earnings. These instruments settle at a weighted-average contract price of $58.39 per barrel and $2.22 per thousand cubic feet (Mcf) for crude oil and natural gas, respectively, at September 30, 2019. The weighted-average contract price was $58.81 per barrel and $3.18 per Mcf for crude oil and natural gas, respectively, at December 31, 2018. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales. The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments as of September 30, 2019, and December 31, 2018.
The Warrant The Warrant issued with the Preferred Stock in connection with the Merger is exercisable at the holder's option, in whole or in part, until the first anniversary of the date on which no shares of Preferred Stock remain outstanding at which point the Warrant expires. The holder of the Warrant may require net cash settlement if certain shareholder and regulatory approvals to issue Occidental common stock are not obtained on a timely basis. The initial fair value of the Warrant, $188 million, was measured at the date of the Merger using the Black Scholes option model. The following inputs were used in the Black Scholes option model; the expected life is based on the estimated term of the Warrant, the volatility factor is based on historical volatilities of Occidental common stock, and the call option price for Occidental common stock at $62.50. The fair value of the Warrant is remeasured each reporting period based on changes in the inputs above. Derivatives Designated as Hedging Instruments Net gains and losses attributable to derivative instruments subject to cash flow hedge accounting reside in accumulated other comprehensive loss and are reclassified to earnings as the transactions to which the derivatives relate are recognized in earnings. Cash Flow Hedges Occidental’s marketing operations store natural gas purchased from third parties at Occidental’s leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes. As of September 30, 2019, Occidental had approximately 5 billion cubic feet (Bcf) of natural gas held in storage, and had cash flow hedges for the forecast sales, to be settled by physical delivery, of approximately 3 Bcf of stored natural gas. As of December 31, 2018, Occidental had approximately 5 Bcf of natural gas held in storage, and had cash flow hedges for the forecasted sales, to be settled by physical delivery, of approximately 4 Bcf of stored natural gas. The fair value of the cash flow hedges associated with stored natural gas was immaterial at September 30, 2019 and December 31, 2018. The ineffective portion recognized through earnings was immaterial for the nine months ended September 30, 2019, and the year ended December 31, 2018. In June 2019, in anticipation of issuing debt in the third quarter to partially finance the cash portion of the Merger consideration, Occidental entered into a series of U.S. treasury locks which were designated as cash flow hedges. In August 2019, the U.S. treasury locks were unwound with the issuance of the $13.0 billion new senior unsecured notes, and the resulting after-tax accumulated other comprehensive loss of $125 million will be amortized to interest expense over the life of the underlying senior notes. Fair Value of Derivatives The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets.
As of September 30, 2019, $359 million of collateral has been netted against derivative liabilities related to interest rate swaps. Occidental had $36 million of initial margin deposited with brokers as of September 30, 2019, related to marketing derivatives. As of December 31, 2018, $45 million collateral received has been netted against derivative assets, and collateral posted 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. Gains and Losses on Derivatives The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:
Credit Risk Occidental's counterparty credit risk related to the physical delivery of energy commodities results from its customers' potential inability to meet their settlement commitments. Occidental manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring collateral or other credit risk mitigants, as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. Occidental also enters into future contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk as a significant portion of these transactions settle on a daily margin basis. Certain over-the-counter derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each party would need to post. The aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed at September 30, 2019 was $1.6 billion (net of $0.3 billion collateral), primarily related to acquired interest-rate swaps, and $68 million (net of $1 million of collateral) existed at December 31, 2018.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Liabilities and Expenditures (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of current and non-current environmental remediation reserves by categories of sites | The following table presents Occidental’s current and non-current environmental remediation reserves as of September 30, 2019. The current portion, $149 million, is included in accrued liabilities and the non-current portion, $905 million, in deferred credits and other liabilities - environmental remediation reserves. The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency (EPA) on the CERCLA National Priorities List (NPL) sites and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. Occidental continues to evaluate environmental liabilities assumed through the Merger with an initial determination that it will participate in or monitor remedial activities or proceedings at 42 sites. The underlying reserve balance for the environmental sites assumed through the Merger will change as more site-specific information and clean-up measures becomes available.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of Derivative Instruments | The following interest rate swaps were outstanding at September 30, 2019:
Occidental had the following collars and calls outstanding at September 30, 2019:
Occidental had the following outstanding interest rate swaps at September 30, 2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Summary of net sales related to the outstanding commodity derivative instruments | The following table summarizes net long/(short) volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments as of September 30, 2019, and December 31, 2018.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Gross and net fair values of outstanding derivatives | The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets.
(a) These amounts do not include collateral.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Gains and Losses on Derivatives | Gains and Losses on Derivatives The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments - Credit Risk (Details) - Not designated as hedging instruments - USD ($) $ in Millions |
Sep. 30, 2019 |
Dec. 31, 2018 |
|---|---|---|
| Derivative [Line Items] | ||
| Aggregate fair value of derivative instruments with credit-risk-related contingent features for which a net liability position existed (net of collateral) | $ 1,600 | $ 68 |
| Amount of collateral posted related to derivative instruments with credit-risk-related contingent features | $ 300 | $ 1 |
Acquisitions, Dispositions, and Other Transactions |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Acquisitions, Dispositions, and Other Transactions | Acquisitions, Dispositions and Other Transactions On September 27, 2019, Occidental completed the sale of Anadarko’s Mozambique LNG assets to Total for $4.2 billion, with proceeds used to pay down a portion of the Term Loans. Occidental and Total continue to work toward completing the sales of the remaining Africa Assets. Occidental anticipates that the remaining sales will be completed before June 2020. The carrying amount of the remaining Africa Assets will be adjusted in future periods based on changes in fair value. The results of the Africa Assets are presented as discontinued operations in the Consolidated Condensed Statements of Operations and Cash Flows. The following table presents the amounts reported in discontinued operations, net of income taxes, related to the Africa Assets subsequent to the Merger closing date through September 30, 2019:
The following table presents the amounts reported in the Consolidated Condensed Balance Sheets as held for sale related to the Africa Assets and other corporate property.
Sale of Plains Investment On September 23, 2019, Occidental sold its remaining equity investment in Plains All American Pipeline, L.P. and Plains GP Holdings, L.P. (together, Plains) for net proceeds of $646 million, which resulted in a pre-tax gain of $111 million. The proceeds were used to pay down a portion of the Term Loans. Ecopetrol Joint Venture On July 31, 2019, Occidental and Ecopetrol entered into definitive agreements to form a joint venture to develop approximately 97,000 net acres of Occidental’s Midland Basin properties in the Permian Basin. Ecopetrol will pay $750 million in cash at closing and $750 million of carried capital in exchange for a 49-percent interest in the new venture. Occidental will own a 51-percent interest and operate the joint venture. During the carry period, Ecopetrol will pay 75-percent of Occidental’s share of capital expenditures, up to $750 million. The joint venture allows Occidental to accelerate its development plans in the Midland Basin, where it currently has minimal activity. Occidental will retain production and cash flow from its existing operations in the Midland Basin. This transaction is expected to close in the fourth quarter of 2019.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Fair Value Measurements | Fair-Value Measurements Occidental has categorized its assets and liabilities that are measured at fair value in a three-level fair-value hierarchy, based on the inputs to the valuation techniques: Level 1 — using quoted prices in active markets for the assets or liabilities; Level 2 — using observable inputs other than quoted prices for the assets or liabilities; and Level 3 — using unobservable inputs. Transfers between levels, if any, are recognized at the end of each reporting period. Fair Values — Recurring In January 2012, Occidental entered into a long-term contract to purchase CO2. This contract contains a price adjustment clause that is linked to changes in NYMEX crude oil prices. Occidental determined that the portion of this contract linked to NYMEX oil prices is not clearly and closely related to the host contract, and Occidental therefore bifurcated this embedded pricing feature from its host contract and accounts for it at fair value in the Consolidated Condensed Financial Statements. The following tables provide fair-value measurement information for embedded derivatives that are measured on a recurring basis:
Fair-Values — Nonrecurring During the nine months ended September 30, 2019, Occidental measured assets and liabilities at merger-date fair value on a nonrecurring basis related to the Merger. See Note 3 - The Merger for more detail. During the three and nine months ended September 30, 2019, Occidental's Oil and Gas segment recognized pre-tax impairment and related charges of $285 million related to domestic undeveloped leases that were set to expire in the near term, where Occidental had no plans to pursue exploration activities, and $40 million related to Occidental's mutually agreed early termination of its Qatar Idd El Shargi South Dome (ISSD) contract. During 2018, Occidental recognized pre-tax impairment and related charges of $416 million primarily related to Idd El Shargi North Dome (ISND) and ISSD proved properties and inventory. The fair value of the proved properties was measured based on the income approach, which incorporated a number of assumptions involving expectations of future cash flows. These assumptions included estimates of future product prices, which Occidental based on forward price curves, estimates of oil and gas reserves, estimates of future expected operating and capital costs and a risk-adjusted discount rate of 10 percent. These inputs are categorized as Level 3 in the fair-value hierarchy. Other Financial Instruments The carrying amounts of cash and cash equivalents and other on-balance-sheet financial instruments, other than long-term, fixed-rate debt, approximate fair value. The cost, if any, to terminate Occidental's off-balance-sheet financial instruments is not significant. Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Commitments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Operating Lease Maturities | The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date:
At September 30, 2019, Occidental's leases expire based on the following schedule:
(a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79%. (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92%. |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Finance Lease Maturities | At September 30, 2019, Occidental's leases expire based on the following schedule:
(a) The weighted-average remaining lease term is 5.3 years and the weighted-average discount rate is 2.79%. (b) The weighted-average remaining lease term is 6.4 years and the weighted-average discount rate is 4.92%. The following table reconciles the undiscounted cash flows related to the operating and finance lease liabilities assumed in the Merger and recorded on the Consolidated Condensed Balance Sheet at the Merger date:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Related Assets and Liabilities | The following table presents lease balances and their location on the Consolidated Condensed Balance Sheet at September 30, 2019:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Future Net Minimum Fixed Lease Payments | At December 31, 2018, future undiscounted net minimum fixed lease payments for non-cancellable operating leases, prepared in accordance with accounting standards prior to the adoption of ASC 842, were as follows:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of Lease Costs | The following tables present Occidental's total lease cost and classifications, as well as cash paid for amounts included in the measurement of operating and finance lease liabilities.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of inventories | Inventories consisted of the following:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Environmental Liabilities and Expenditures |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental Remediation Obligations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Environmental Liabilities and Expenditures | Environmental Liabilities and Expenditures Occidental’s operations are subject to stringent federal, state, local, and international laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including the CERCLA and similar federal, state, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. Occidental or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs. As of September 30, 2019, Occidental participated in or monitored remedial activities or proceedings at 185 sites. The following table presents Occidental’s current and non-current environmental remediation reserves as of September 30, 2019. The current portion, $149 million, is included in accrued liabilities and the non-current portion, $905 million, in deferred credits and other liabilities - environmental remediation reserves. The reserves are grouped as environmental remediation sites listed or proposed for listing by the United States Environmental Protection Agency (EPA) on the CERCLA National Priorities List (NPL) sites and three categories of non-NPL sites — third-party sites, Occidental-operated sites and closed or non-operated Occidental sites. Occidental continues to evaluate environmental liabilities assumed through the Merger with an initial determination that it will participate in or monitor remedial activities or proceedings at 42 sites. The underlying reserve balance for the environmental sites assumed through the Merger will change as more site-specific information and clean-up measures becomes available.
As of September 30, 2019, Occidental’s environmental reserves exceeded $10 million each at 19 of the 185 sites described above, and 112 of the sites had reserves from zero to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately 40 percent of the environmental reserves at the sites described above over the next three to four years and the remaining balance at these sites over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be up to $1.2 billion. Other than the sites assumed through the Merger, the status of Occidental's involvement with the sites and related significant assumptions, including those sites indemnified by Maxus Energy Corporation (Maxus), has not changed materially since December 31, 2018. Maxus Environmental Sites When Occidental acquired Diamond Shamrock Chemicals Company (DSCC) in 1986, Maxus, a subsidiary of YPF S.A. (YPF), agreed to indemnify Occidental for a number of environmental sites, including the Diamond Alkali Superfund Site (Site) along a portion of the Passaic River. On September 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in Federal District Court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with clean-up and other costs associated with the sites subject to the indemnity, including the Site. In March 2016, the EPA issued a Record of Decision (ROD) specifying remedial actions required for the lower 8.3 miles of the Lower Passaic River. The ROD does not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay. During the third quarter of 2016, and following Maxus’s bankruptcy filing, Occidental and the EPA entered into an Administrative Order on Consent (AOC) to complete the design of the proposed clean-up plan outlined in the ROD at an estimated cost of $165 million. The EPA announced that it will pursue similar agreements with other potentially responsible parties. Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and remediation called for in the AOC and the ROD, as well as for certain other Maxus-indemnified sites. Occidental's accrued estimated environmental reserve does not consider any recoveries for indemnified costs. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental's allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be incurred to comply with the AOC, the ROD, and to perform remediation at other Maxus-indemnified sites in light of the Maxus bankruptcy and the share of ultimate liability of other potentially responsible parties. In June 2018, Occidental filed a complaint under CERCLA in Federal District Court in the State of New Jersey against numerous potentially responsible parties for reimbursement of amounts incurred or to be incurred to comply with the AOC, the ROD, or to perform other remediation activities at the Site. |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
General (Policies) |
9 Months Ended |
|---|---|
Sep. 30, 2019 | |
| Accounting Policies [Abstract] | |
| Principles of Consolidation | Principles of Consolidation The unaudited consolidated financial statements have been prepared in conformity with United States Generally Accepted Accounting Principles (GAAP) and include the accounts of OPC, its subsidiaries, VIEs for which Occidental is the primary beneficiary, and its undivided interests in oil and gas exploration and production ventures. Occidental has made its disclosures in accordance with GAAP as they apply to interim reporting, and condensed or omitted, as permitted by the Securities and Exchange Commission's rules and regulations, certain information and disclosures normally included in consolidated financial statements and notes. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in Occidental's Annual Report on Form 10-K for the year ended December 31, 2018 (the 2018 Form 10-K). The Merger, including the addition of WES Midstream as a new reporting segment, introduced different revenue and expense streams to Occidental's legacy operations. As a result, changes were made to the structure of certain financial statements, notes and supplementary data to provide clarity and to conform to the current presentation. |
| Variable Interest Entities | Variable Interest Entities Occidental, through its ownership of the general partner interest in WES, has the power to direct the activities that significantly affect the economic performance of WES and the obligation to absorb losses or the right to receive benefits that could be significant to WES; therefore, Occidental is considered the primary beneficiary and consolidates WES and all of its consolidated subsidiaries. WES maintains its own capital structure that is separate from Occidental, consisting of its own debt instruments and publicly traded common units. All intercompany transactions have been eliminated. The assets of WES and its subsidiaries cannot be used by Occidental for general corporate purposes and are included in and disclosed parenthetically on Occidental's consolidated condensed balance sheets, if material. The carrying amount of liabilities related to WES for which the creditors do not have recourse to Occidental's assets are also included in and disclosed parenthetically on Occidental's Consolidated Condensed Balance Sheets, if material. All outstanding debt for WES at September 30, 2019, including any borrowings under the WES revolving credit facility (WES RCF) and WES Term Loan Facility, is recourse to the general partner of Western Midstream Operating, LP (WES Operating), which in turn has been indemnified in certain circumstances by certain indirect wholly owned subsidiaries of Occidental for such liabilities. See Note 9 - Long-Term Debt. WES's sources of liquidity include cash and cash equivalents, cash flows generated from operations, interest income from a note receivable from Anadarko, borrowings under the WES RCF, the issuance of additional partnership units, and debt offerings.
|
| Discontinued Operations | Discontinued Operations In connection with the Merger, Occidental agreed to sell to TOTAL S.A. (Total) all of the assets, liabilities, businesses, and operations of Anadarko's operations in Algeria, Ghana, Mozambique and South Africa (collectively, the Africa Assets) for $8.8 billion, subject to certain purchase price adjustments. In August 2019, a purchase and sale agreement was executed for these Africa Assets. This transaction is conditioned on the receipt of required regulatory approvals, as well as other customary closing conditions. On September 27, 2019, Occidental completed the sale of Anadarko’s Mozambique LNG assets to Total for $4.2 billion. The assets and liabilities for Algeria, Ghana and South Africa, are presented as held for sale at September 30, 2019. The results of operations of the Africa Assets are presented as discontinued operations, see Note 4 - Acquisitions, Dispositions, and Other. Unless otherwise indicated, information presented in the Notes to the Consolidated Condensed Financial Statements relates only to Occidental's continuing operations. Information related to discontinued operations is included in Note 4 - Acquisitions, Dispositions, and Other, and in some instances, where appropriate, is included as a separate disclosure within the individual Notes to the Consolidated Condensed Financial Statements. |
| Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill resulting from the Merger was assigned to WES Midstream and represents the excess of the purchase price over the estimated fair value of the assets acquired and liabilities assumed. Goodwill is subject to annual impairment testing. Changes in goodwill may result from, among other things, finalization of preliminary purchase price allocations, impairments, additional acquisitions, or divestitures. See Note 3 - The Merger. Other intangible assets represent contractual rights obtained in connection with the Merger that had favorable contractual terms relative to market terms as well as customer-related intangible assets, including customer relationships. Other intangible assets are amortized over their estimated useful lives and are assessed for impairment with the associated long-lived asset group whenever impairment indicators are present. See Note 3 - The Merger. |
| Accounting and Disclosure Changes | Accounting and Disclosure Changes |
Revenue Recognition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of reconciliation of revenue from customers to total net sales | The following table shows a reconciliation of revenue from customers to total net sales:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of revenue from customers by segment, product, and geographical area | Excluding net marketing revenue, Marketing and Other Midstream revenues are shown by the location of sale:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of contract with customer liabilities activity | The following table summarizes current period activity related to contract liabilities from contracts with customers:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Schedule of expected revenue recognition from satisfaction of performance obligations | As a result, the following table represents a small portion of Occidental's expected future consolidated revenues, as future revenue from the sale of most products and services is dependent on future production or variable customer volume and variable commodity prices for that volume:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition - Reconciliation (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Revenue from Contract with Customer [Abstract] | ||||
| Revenue from customers | $ 5,231 | $ 4,257 | $ 12,397 | $ 11,813 |
| All other revenue | 456 | 959 | 1,714 | 1,249 |
| Net sales | $ 5,687 | $ 5,216 | $ 14,111 | $ 13,062 |
CONSOLIDATED CONDENSED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
|
| Statement of Stockholders' Equity [Abstract] | ||||
| DIVIDENDS PER COMMON SHARE (in dollars per share) | $ 0.79 | $ 0.78 | $ 2.35 | $ 2.32 |
| DIVIDENDS PER PREFERRED SHARE (in dollars per share) | $ 1,489 | $ 1,489 | ||
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2018 |
Sep. 30, 2019 |
Sep. 30, 2018 |
||||||||
| Statement of Comprehensive Income [Abstract] | |||||||||||
| Net income (loss) | $ (752) | $ 1,869 | $ 514 | $ 3,425 | |||||||
| Other comprehensive income (loss) items: | |||||||||||
| Losses on derivatives | [1] | (114) | (1) | (130) | (5) | ||||||
| Pension and postretirement (losses) gains | [2] | (34) | 144 | (30) | 153 | ||||||
| Reclassification of losses on derivatives | [3] | 0 | 10 | 0 | 13 | ||||||
| Other comprehensive (loss) income, net of tax | (148) | 153 | (160) | 161 | |||||||
| Comprehensive income (loss) | (900) | 2,022 | 354 | 3,586 | |||||||
| Comprehensive income attributable to noncontrolling interests | (42) | 0 | (42) | 0 | |||||||
| Comprehensive income (loss) attributable to preferred and common stockholders | $ (942) | $ 2,022 | $ 312 | $ 3,586 | |||||||
| |||||||||||
Lease Commitments - Other Information (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended |
|---|---|---|
Sep. 30, 2019 |
Sep. 30, 2019 |
|
| Lessee, Lease, Description [Line Items] | ||
| Operating lease costs | $ 139 | $ 321 |
| Amortization of ROU assets | 5 | 11 |
| Interest on lease liabilities | 1 | 1 |
| Lease, Cost | 304 | 665 |
| Short-term lease cost | 139 | 295 |
| Variable lease cost | 55 | 115 |
| Operating cash flows | 162 | |
| Investing cash flows | 83 | |
| Financing cash flows | 11 | |
| Cost of sales | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease costs | 133 | 271 |
| Selling, general and administrative expenses | ||
| Lessee, Lease, Description [Line Items] | ||
| Operating lease costs | $ 26 | $ 61 |