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:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	375	December 2019 - 2024	December 2019	2.662	%
$	375	December 2019 - 2029	December 2019	2.802	%
$	375	December 2019 - 2049	December 2019	2.885	%

Occidental had the following collars and calls outstanding at September 30, 2019:

Collars and Calls, not designated as hedges
2019 Settlement
Three-way collars (Oil MMBL)			8.0
	Average price per barrel (NYMEX/Brent oil pricing)
		Ceiling sold price (call)	$	72.98
		Floor purchased price (put)	$	56.72
		Floor sold price (put)	$	46.72
2020 Settlement
Three-way collars (Oil MMBL)			109.8
	Average price per barrel (Brent oil pricing)
		Ceiling sold price (call)	$	74.09
		Floor purchased price (put)	$	55.00
		Floor sold price (put)	$	45.00
2021 Settlement
Call Options sold (Oil MMBL)			109.5
	Average price per barrel (Brent oil pricing)
		Ceiling sold price (call)	$	74.09

Occidental had the following outstanding interest rate swaps at September 30, 2019:

millions except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	125	September 2016 - 2046	October 2019	6.782	%
$	550	September 2016 - 2046	September 2020	6.418	%
$	125	September 2016 - 2046	September 2022	6.835	%
$	100	September 2017 - 2047	September 2020	6.891	%
$	250	September 2017 - 2047	September 2021	6.570	%
$	450	September 2017 - 2047	September 2023	6.445	%

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.

	2019		2018
Crude Oil Commodity Contracts
Volume (MMBL)	36		61
Natural Gas Commodity Contracts
Volume (Bcf)	(128	)	(142	)

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.

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	$	—	$	217	$	—	$	(4	)	$	213
Accrued liabilities	—		3		—		(3		)	—
Deferred credits and other liabilities - other	—		97		—		—			97
Marketing Derivatives
Other current assets	838		97		—		(861		)	74
Long-term receivables and other assets, net	70		12		—		(70		)	12
Accrued liabilities	827		45		—		(861		)	11
Deferred credits and other liabilities - other	71		1		—		(70		)	2
Interest Rate Swaps (excluding WES)
Other current assets	—		14		—		—			14
Long-term receivables and other assets, net	—		13		—		—			13
Accrued liabilities	—		882		—		—			882
Deferred credits and other liabilities - other	—		879		—		—			879
WES Interest Rate Swaps
Accrued liabilities	—		171		—		—			171
Warrant
Deferred credits and other liabilities - other	—		168		—		—			168
December 31, 2018
Marketing Derivatives
Other current assets	$	2,531	$	110	$	—	$	(2,392	)	$	249
Long-term receivables and other assets, net	5		9		—		(6		)	8
Accrued liabilities	2,357		101		—		(2,392		)	66
Deferred credits and other liabilities - other	6		2		—		(6		)	2

(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:

Income Statement Classification	Three months ended September 30					Nine months ended September 30
millions	2019			2018		2019			2018
Oil Collars and Calls
Net sales	$	75		$	—	$	75		$	—
Marketing Derivatives
Net sales	91			36		(119		)	8
Interest Rate Swaps (Excluding WES)
Losses on interest rate swaps and warrants, net	(45		)	—		(45		)	—
Interest Rate Swaps (WES)
Losses on interest rate swaps and warrants, net	(8		)	—		(8		)	—
Warrants
Gains on interest rate swaps and warrants, net	20			—		20			—