SEGMENTS

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segments

NOTE 10 - 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 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, 2023
Net sales	$	4,941	$	1,375	$	616	$	(230)	$	6,702
Income (loss) before income taxes	$	1,059	$	436	$	(30)	$	(138)	$	1,327
Income tax expense	—		—		—		(467)		(467)
Net income (loss)	$	1,059	$	436	$	(30)	$	(605)	$	860
Three months ended June 30, 2022
Net sales	$	7,696	$	1,909	$	1,474	$	(403)	$	10,676
Income (loss) before income taxes	$	4,094	$	800	$	264	$	(172)	$	4,986
Income tax expense	—		—		—		(1,231)		(1,231)
Net income (loss)	$	4,094	$	800	$	264	$	(1,403)	$	3,755
millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Six months ended June 30, 2023
Net sales	$	10,266	$	2,780	$	1,367	$	(486)	$	13,927
Income (loss) before income taxes	$	2,699	$	908	$	(28)	$	(518)	$	3,061
Income tax expense	—		—		—		(938)		(938)
Net income (loss)	$	2,699	$	908	$	(28)	$	(1,456)	$	2,123
Six months ended June 30, 2022
Net sales	$	13,771	$	3,593	$	2,356	$	(695)	$	19,025
Income (loss) before income taxes	$	6,992	$	1,471	$	214	$	(608)	$	8,069
Income tax benefit	—		—		—		562		562
Net income (loss)	$	6,992	$	1,471	$	214	$	(46)	$	8,631

(a)    The three and six months ended June 30, 2023 included a $180 million impairment related to undeveloped acreage in the northern non-core area of the Powder River Basin and $29 million impairment related to an equity method investment in the Black Butte Coal Company. The six months ended June 30, 2023 also included a $26 million litigation settlement gain. 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.

(b)    The three and six months ended June 30, 2023 included $48 million and $40 million of net derivative mark-to-market gains, respectively. 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.

(c)    The three and six months ended June 30, 2023 included a $68 million deferred tax charge related to the Algeria contract renewal and a $260 million gain related to a Maxus environmental reserve adjustment, see Note 8 - Lawsuits, Claims, Commitments and Contingencies for further information. 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 early debt extinguishment.