Derivatives (Tables)

9 Months Ended

Sep. 30, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments

Occidental had the following collars and calls outstanding at September 30, 2020:

Collars and Calls, not designated as hedges
2020 Settlement - oil
Three-way collars (Oil MMBBL)			32.2
	Volume weighted average price per barrel (Brent oil pricing)
		Ceiling sold price (call)	$	74.16
		Floor purchased price (put)	$	55.00
		Floor sold price (put)	$	45.00
2021 Settlement - oil
Call options sold (Oil MMBBL)			127.8
	Average price per barrel (Brent oil pricing)
		Ceiling sold price (call)	$	74.16
2021 Settlement - natural gas
Natural Gas Collars (millions of MMBTU)			182.5
	Volume weighted average price per MMBTU (NYMEX)
		Ceiling sold price (call)	$	3.61
		Floor purchased price (put)	$	2.50

Occidental had the following outstanding interest rate swaps at September 30, 2020:

millions, except percentages			Mandatory	Weighted-Average
Notional Principal Amount		Reference Period	Termination Date	Interest Rate
$	400	September 2016 - 2046	September 2021	6.348	%
$	350	September 2017 - 2047	September 2021	6.662	%
$	275	September 2016 - 2046	September 2022	6.709	%
$	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.

	September 30, 2020	December 31, 2019
Crude Oil Commodity Contracts
Volume (MMBBL)	(5)	55
Natural Gas Commodity Contracts
Volume (Bcf)	(111)	(128)

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 below, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the Consolidated Condensed Balance Sheets.

millions	Fair Value Measurements Using						Netting (a)		Total Fair Value
Balance Sheet Classifications	Level 1		Level 2		Level 3
September 30, 2020
Collars and Call Options
Other current assets	$	—	$	269	$	—	$	—	$	269
Deferred credits and other liabilities - other	—		(18)		—		—		(18)
Marketing Derivatives
Other current assets	1,162		37		—		(1,194)		5
Long-term receivables and other assets, net	77		2		—		(77)		2
Accrued liabilities	(1,180)		(49)		—		1,194		(35)
Deferred credits and other liabilities - other	(77)		—		—		77		—
Interest Rate Swaps
Accrued liabilities	—		(1,011)		—		—		(1,011)
Deferred credits and other liabilities - other	—		(894)		—		—		(894)
December 31, 2019
Collars and Call Options
Other current assets	$	—	$	92	$	—	$	—	$	92
Deferred credits and other liabilities - other	—		(160)		—		—		(160)
Marketing Derivatives
Other current assets	945		79		—		(973)		51
Long-term receivables and other assets, net	4		12		—		(4)		12
Accrued liabilities	(1,008)		(44)		—		973		(79)
Deferred credits and other liabilities - other	(4)		(1)		—		4		(1)
Interest Rate Swaps
Other current assets	—		5		—		—		5
Long-term receivables and other assets, net	—		5		—		—		5
Accrued liabilities	—		(657)		—		—		(657)
Deferred credits and other liabilities - other	—		(776)		—		—		(776)
Berkshire Warrants (b)
Deferred credits and other liabilities - other	—		(107)		—		—		(107)

(a)These amounts do not include collateral.

(b)Berkshire Warrants were reclassified to equity on May 29, 2020.

Schedule of Gains and Losses on Derivatives

The following table presents the effect of Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:

millions	Three months ended September 30,				Nine months ended September 30,
Income Statement Classification	2020		2019		2020		2019
Collars and Calls
Net sales	$	110	$	75	$	1,067	$	75
Marketing Derivatives
Net sales (a)	(18)		91		—		(119)
Interest Rate Swaps
Gains (losses) on interest rate swaps and warrants, net	88		(53)		(577)		(53)
Berkshire Warrants
Gains on interest rate swaps and warrants, net (b)	$	—	$	20	$	5	$	20

(a) Includes derivative and non-derivative marketing activity.

(b) Includes losses and gains on Berkshire Warrants prior to the May 29, 2020 reclassification to equity.