SEGMENTS

9 Months Ended

Sep. 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 September 30, 2023
Net sales	$	5,594	$	1,309	$	552	$	(297)	$	7,158
Income (loss) before income taxes	$	1,969	$	373	$	(130)	$	(403)	$	1,809
Income tax expense	—		—		—		(434)		(434)
Net income (loss)	$	1,969	$	373	$	(130)	$	(837)	$	1,375
Three months ended September 30, 2022
Net sales	$	7,098	$	1,691	$	1,005	$	(404)	$	9,390
Income (loss) before income taxes	$	3,345	$	580	$	104	$	(381)	$	3,648
Income tax expense	—		—		—		(902)		(902)
Net income (loss)	$	3,345	$	580	$	104	$	(1,283)	$	2,746
millions	Oil and gas (a)		Chemical		Midstream and marketing (b)		Corporate and eliminations (c)		Total
Nine months ended September 30, 2023
Net sales	$	15,860	$	4,089	$	1,919	$	(783)	$	21,085
Income (loss) before income taxes	$	4,668	$	1,281	$	(158)	$	(921)	$	4,870
Income tax expense	—		—		—		(1,372)		(1,372)
Net income (loss)	$	4,668	$	1,281	$	(158)	$	(2,293)	$	3,498
Nine months ended September 30, 2022
Net sales	$	20,869	$	5,284	$	3,361	$	(1,099)	$	28,415
Income (loss) before income taxes	$	10,337	$	2,051	$	318	$	(989)	$	11,717
Income tax expense	—		—		—		(340)		(340)
Net income (loss)	$	10,337	$	2,051	$	318	$	(1,329)	$	11,377

(a)    The three and nine months ended September 30, 2023 included the sale of certain non-core proved and unproved properties in the Permian Basin for a net gain of $142 million. The nine months ended September 30, 2023 also included a $180 million impairment related to undeveloped acreage in the northern non-core area of the Powder River Basin, a $29 million impairment related to an equity method investment in the Black Butte Coal Company and a $26 million litigation settlement gain. The nine months ended September 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 nine months ended September 30, 2023 included $81 million and $41 million of net derivative mark-to-market losses, $34 million and $60 million of asset impairments and other charges, respectively and a $51 million gain on the sale of 5.1 million limited partner units in WES. The three and nine months ended September 30, 2022 included $84 million and $186 million of net derivative mark-to-market losses, respectively and a $62 million gain on the sale of 10 million limited partner units in WES.

(c)    The three months ended September 30, 2023 included a $3 million deferred benefit and the nine months ended September 30, 2023 included a $65 million deferred tax charge related to the Algeria contract renewal. The nine months ended September 30, 2023 included 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 September 30, 2022 included a $70 million gain on interest rate swaps. The nine months ended September 30, 2022 included a tax benefit of $2.6 billion in connection with Occidental's legal entity reorganization, which is further discussed in Note 6 - Income Taxes, as well as a $332 million gain on interest rate swaps and a $143 million gain on early debt extinguishment.