LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

LEASE COMMITMENTS

NOTE 7 - LEASE COMMITMENTS

Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. Occidental assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. Occidental uses its incremental borrowing rate at commencement date to determine the present value of lease payments. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions are not significant.

Occidental has operating leases for office space of $309 million, drilling rigs of $252 million, compressors of $214 million, railcars of $101 million, and $112 million of other assets.

Occidental’s finance leases include compressors of $467 million, office space of $231 million, and $95 million of other assets. Property, plant and equipment included $777 million of finance lease assets as of December 31, 2024.

The following summarizes maturities of lease liabilities as of December 31, 2024:

millions	Operating Leases (a)		Finance Leases (b)		Total
2025	$	410	$	172	$	582
2026	264		161		425
2027	136		145		281
2028	76		115		191
2029	58		82		140
Thereafter	137		265		402
Total lease payments	1,081		940		2,021
Less: Discount	(93)		(147)		(240)
Total lease liabilities	$	988	$	793	$	1,781

(a)The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 4.77%.

(b)The weighted-average remaining lease term is 5.7 years and the weighted-average discount rate is 4.80%.

The following tables present Occidental’s total lease cost and other information for operating and finance lease liabilities for the years ended December 31:

millions	2024		2023
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	152	$	126
Interest on lease liabilities	36		27
Operating lease cost	518		398
Short-term lease cost	367		460
Total lease cost	$	1,073	$	1,011
millions	2024		2023
Cash payments related to leases
Operating cash flows from finance leases	$	34	$	27
Operating cash flows from operating leases	$	298	$	198
Investing cash flows from operating leases	$	209	$	183
Financing cash flows from finance leases	$	137	$	105
Changes in Right-of-Use assets
Right-of-use assets obtained in exchange for new finance lease liabilities	$	195	$	226
Right-of-use assets obtained in exchange for new operating lease liabilities	$	316	$	630

LEASE COMMITMENTS

NOTE 7 - LEASE COMMITMENTS

Lease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. Occidental assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. Occidental uses its incremental borrowing rate at commencement date to determine the present value of lease payments. For assets except drilling rigs, Occidental does not separate lease and non-lease components as the non-lease portions are not significant.

Occidental has operating leases for office space of $309 million, drilling rigs of $252 million, compressors of $214 million, railcars of $101 million, and $112 million of other assets.

Occidental’s finance leases include compressors of $467 million, office space of $231 million, and $95 million of other assets. Property, plant and equipment included $777 million of finance lease assets as of December 31, 2024.

The following summarizes maturities of lease liabilities as of December 31, 2024:

millions	Operating Leases (a)		Finance Leases (b)		Total
2025	$	410	$	172	$	582
2026	264		161		425
2027	136		145		281
2028	76		115		191
2029	58		82		140
Thereafter	137		265		402
Total lease payments	1,081		940		2,021
Less: Discount	(93)		(147)		(240)
Total lease liabilities	$	988	$	793	$	1,781

(a)The weighted-average remaining lease term is 4.0 years and the weighted-average discount rate is 4.77%.

(b)The weighted-average remaining lease term is 5.7 years and the weighted-average discount rate is 4.80%.

The following tables present Occidental’s total lease cost and other information for operating and finance lease liabilities for the years ended December 31:

millions	2024		2023
Lease Cost
Finance lease cost:
Amortization of right-of-use assets	$	152	$	126
Interest on lease liabilities	36		27
Operating lease cost	518		398
Short-term lease cost	367		460
Total lease cost	$	1,073	$	1,011
millions	2024		2023
Cash payments related to leases
Operating cash flows from finance leases	$	34	$	27
Operating cash flows from operating leases	$	298	$	198
Investing cash flows from operating leases	$	209	$	183
Financing cash flows from finance leases	$	137	$	105
Changes in Right-of-Use assets
Right-of-use assets obtained in exchange for new finance lease liabilities	$	195	$	226
Right-of-use assets obtained in exchange for new operating lease liabilities	$	316	$	630