Segments

6 Months Ended

Jun. 30, 2022

Segment Reporting [Abstract]

Segments

NOTE 12 - SEGMENTS

Occidental conducts its operations through three segments: (1) oil and gas; (2) chemical; and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-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 table presents Occidental’s industry segments:

millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Three months ended June 30, 2022
Net sales	$	7,696	$	1,909	$	1,474	$	(403)	$	10,676
Income (loss) from continuing operations before income taxes	$	4,094	$	800	$	264	$	(172)	$	4,986
Income tax expense	—		—		—		(1,231)		(1,231)
Income (loss) from continuing operations	$	4,094	$	800	$	264	$	(1,403)	$	3,755
Three months ended June 30, 2021
Net sales	$	4,505	$	1,187	$	497	$	(231)	$	5,958
Income (loss) from continuing operations before income taxes	$	631	$	312	$	(30)	$	(770)	$	143
Income tax expense	—		—		—		(43)		(43)
Income (loss) from continuing operations	$	631	$	312	$	(30)	$	(813)	$	100
millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Six months ended June 30, 2022
Net sales	$	13,771	$	3,593	$	2,356	$	(695)	$	19,025
Income (loss) from continuing operations before income taxes	$	6,992	$	1,471	$	214	$	(608)	$	8,069
Income tax benefit	—		—		—		562		562
Income (loss) from continuing operations	$	6,992	$	1,471	$	214	$	(46)	$	8,631
Six months ended June 30, 2021
Net sales	$	8,169	$	2,275	$	1,304	$	(497)	$	11,251
Income (loss) from continuing operations before income taxes	$	569	$	563	$	252	$	(926)	$	458
Income tax expense	—		—		—		(59)		(59)
Income (loss) from continuing operations	$	569	$	563	$	252	$	(985)	$	399

(a)    The six months ended June 30, 2022 included $147 million of gains, primarily related to the sale of certain non-strategic assets in the Permian Basin. The three months ended June 30, 2021 included $140 million of net oil, gas and CO2 derivative losses. The six months ended June 30, 2021 included $156 million of asset impairments and $180 million of net oil, gas and CO2 derivative losses.

(b)    The three and six months ended June 30, 2022 included $96 million and $102 million of net derivative mark-to-market gains and losses, respectively. The three months ended June 30, 2021 included $180 million of net derivative mark-to-market losses. The six months ended June 30, 2021 included a $124 million of gains on sales, primarily from the sale of 11.5 million limited partner units in WES, and $165 million in derivative mark-to-market losses.

(c)    The three months ended June 30, 2022 included a $179 million gain on early debt extinguishment and a $127 million gain on interest rate swaps. The six months ended June 30, 2022 included a non-cash tax benefit of $2.6 billion in connection with Occidental's legal entity reorganization, which is further discussed in the Income Taxes section of the Management’s Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of this Form 10-Q, as well as a $262 million gain on interest rate swaps and a $161 million gain on debt tenders. The three months ended June 30, 2021 included $223 million of net derivative mark-to-market losses on interest rate swaps. The six months ended June 30, 2021 included $176 million of net derivative mark-to-market gains on interest rate swaps.