Divestitures and Other Transactions

9 Months Ended

Sep. 30, 2020

Discontinued Operations and Disposal Groups and Equity Method And Joint Ventures [Abstract]


NOTE 3 - DIVESTITURES AND OTHER TRANSACTIONS

DIVESTITURES

In August 2020, Occidental entered into an agreement to sell approximately 4.5 million mineral acres and 1 million fee surface acres located in Wyoming, Colorado, and Utah for approximately $1.33 billion. The transaction closed in October 2020 for net cash proceeds of approximately $1.0 billion, after satisfying $329 million of liabilities associated with the sale of future royalties. As of September 30, 2020, approximately $1.4 billion of assets, primarily property associated with mineral and fee surface acres, and $338 million of liabilities, assumed through the Acquisition, were classified as held for sale. Occidental recorded a loss on sale of $431 million. The loss has been presented within (losses) gains on sale of assets, net in the Consolidated Condensed Statement of Operations. The net proceeds were utilized to pay down a portion of the 2-year variable rate Term Loan due 2021 (Term Loan). See Note 8 - Long -Term Debt for further information.

In October 2020, Occidental entered into an agreement to sell its onshore oil and gas Colombia assets, which have been classified as held for sale within our Consolidated Condensed Balance Sheet as of September 30, 2020. The disposal group carrying value primarily includes approximately $587 million in property, plant and equipment. The transaction is expected to close in the fourth quarter 2020. In the third quarter 2020, Occidental recorded a loss of approximately $356 million associated with remeasuring the assets to their fair value, which was lower than their carrying amount. The loss has been presented within (losses) gains on sale of assets, net in the Consolidated Condensed Statement of Operations. The net proceeds will be used to pay down near-term maturities.

ALGERIA OPERATIONS - RECLASSIFICATION

The following table presents the amounts previously reported in discontinued operations, net of income taxes, which was reclassified to continuing operations, in the six months ended June 30, 2020, as a result of Occidental's decision to operate in Algeria.


millions	Six months ended June 30, 2020		Three and nine months ended September 30, 2019

Revenues and other income
Net sales	$	319	$	172

Costs and other deductions
Oil and gas lease operating expense	44		12
Transportation expense	14		4
Taxes other than on income	48		46
Depreciation, depletion and amortization	110		61
Impairment upon reclassification to held for use	931		—
Other	10		2
Total costs and other deductions	1,157		125

Income (losses) before income taxes	(838)		47
Income tax expense	(95)		(47)
Net income of Algeria operations, after taxes	$	(933)	$	—

The following table presents the amounts previously reported in the Consolidated Condensed Balance Sheets as held for sale related to Algeria that were subsequently reclassified as of December 31, 2019:


millions	December 31, 2019
Current assets	$	249
Property, plant and equipment, net	1,761
Long-term receivables and other assets, net	146
Total Assets	$	2,156

Current liabilities	$	188
Non-current liabilities	104
Total Liabilities	$	292

DISCONTINUED OPERATIONS

In January 2020, Occidental completed the sale of the South Africa assets to Total. The results of the South Africa and Ghana assets are presented as discontinued operations in the Consolidated Condensed Statements of Operations and Cash Flows. The amounts related to the Ghana assets are presented as held for sale on the Consolidated Condensed Balance Sheets as of September 30, 2020 and December 31, 2019, of which approximately $1.4 billion and $3.6 billion are related to property, plant and equipment, net, respectively. Approximately $750 million of the amounts presented in liabilities held for sale are primarily related to deferred income taxes, asset retirement obligations and a finance lease liability.

The amounts presented in discontinued operations, net of income taxes, for the nine months ended September 30, 2020, primarily relate to a second quarter after-tax impairment of $1.4 billion recorded to adjust the Ghana assets to their fair value as the sale to Total will no longer be consummated. The amounts presented in discontinued operations, net of taxes, for the three months ended September 30, 2020 primarily relate to oil and gas revenues which have been partially offset by oil and gas operating expenses and other-operating expenses.