Derivatives (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Derivative Instruments

Occidental had the following collars and calls outstanding at June 30, 2021:

Collars and Calls, not designated as hedges
2021 Settlement - oil
Call options sold (MMbbl)			64.4
	Average price per barrel (Brent oil pricing)
		Ceiling sold price (call)	$	74.16
2021 Settlement - natural gas
Natural gas collars (millions of MMbtu)			96.4
	Volume weighted-average price per MMbtu (NYMEX)
		Ceiling sold price (call)	$	3.61
		Floor purchased price (put)	$	2.50

Occidental had the following interest rate swaps outstanding at June 30, 2021:

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 short volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments.

	June 30, 2021	December 31, 2020
Oil Commodity Contracts
Volume (MMbbl)	(24)	(31)
Natural gas commodity contracts
Volume (Bcf)	(121)	(117)

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
June 30, 2021
Collars and Call Options
Accrued liabilities	$	—	$	(249)	$	—	$	—	$	(249)
Marketing Derivatives
Other current assets	1,584		112		—		(1,679)		17
Long-term receivables and other assets, net	100		2		—		(100)		2
Accrued liabilities	(1,696)		(113)		—		1,679		(130)
Deferred credits and other liabilities - other	(101)		—		—		100		(1)
Interest Rate Swaps
Accrued liabilities	—		(823)		—		—		(823)
Deferred credits and other liabilities - other	—		(710)		—		—		(710)
December 31, 2020
Collars and Call Options
Other current assets	$	—	$	25	$	—	$	—	$	25
Accrued liabilities	—		(42)		—		—		(42)
Marketing Derivatives
Other current assets	1,155		80		—		(1,204)		31
Long-term receivables and other assets, net	7		2		—		(7)		2
Accrued liabilities	(1,252)		(81)		—		1,204		(129)
Deferred credits and other liabilities - other	(7)		—		—		7		—
Interest Rate Swaps
Accrued liabilities	—		(936)		—		—		(936)
Deferred credits and other liabilities - other	—		(822)		—		—		(822)

(a)These amounts do not include collateral. As of June 30, 2021 and December 31, 2020, $326 million and $374 million of collateral related to interest rate swaps had been netted against derivative liabilities, respectively. Occidental netted $78 million and $85 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of June 30, 2021 and December 31, 2020, respectively.

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 June 30,				Six months ended June 30,
Income Statement Classification	2021		2020		2021		2020
Collars and Calls
Net sales	$	(166)	$	5	$	(238)	$	957
Marketing Derivatives
Net sales (a)	22		(392)		202		18
Interest Rate Swaps
Gains (losses) on interest rate swaps and warrants, net	(223)		4		176		(665)
Other
Gains (losses) on interest rate swaps and warrants, net (b)	$	—	$	(79)	$	—	$	5

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

(b) Includes gains on warrants which were reclassified to equity on May 29, 2020.