SEGMENTS (Tables)

9 Months Ended

Sep. 30, 2023

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.