Occidental Petroleum 2012 Annual Report Download
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Form 10-K
R
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For the fiscal year ended December 31, 2012
For the transition period from to
Commission File Number 1-9210
Occidental Petroleum Corporation
Delaware
95-4035997
10889 Wilshire Blvd., Los Angeles, CA
90024
(310) 208-8800
Title of Each Class
Name of Each Exchange on Which Registered
R£
£R
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Table of contents
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Page 1
... No. Address of principal executive offices Zip Code Registrant's telephone num(er, including area code Delaware 95-4035997 10889 Wilshire Blvd., Los Angeles, CA 90024 (310) 208-8800 Securities registered pursuant to Section 12(() of the Act: Title of Each Class 9 1/4% Senior De(entures due 2019... -
Page 2
......Executive Officers...Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Financial Data...Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A) ...Strategy...Oil and Gas Segment...Chemical... -
Page 3
... Item 13 Item 14 Directors, Executive Officers and Corporate Governance ...Executive Compensation...Security Ownership of Certain Beneficial Owners and Management ...Certain Relationships and Related Transactions and Director Independence ...Principal Accountant Fees and Services... 88 88 89 89 89... -
Page 4
...General Occidental's domestic oil and gas operations are located mainly in California, Colorado, Kansas, New Mexico, North Dakota, Oklahoma, Texas and West Virginia. International operations are located in Bahrain, Bolivia, Colombia, Iraq, Libya, Oman, Qatar, the United Trab Emirates (UTE) and Yemen... -
Page 5
...conventional and unconventional mature and underdeveloped fields, enhanced oil recovery (EOR) projects and strategic acquisitions. Occidental also competes to develop and produce its worldwide oil and gas reserves cost-effectively and obtain qualified labor and services. CHEMICAL OPERATIONS General... -
Page 6
... and purchases, markets and trades oil, NGLs, gas, power and other commodities Occidental-operated power and steam generation facilities Powir Giniration California, Texas and Louisiana 1,800 megawatts per hour and 1.6 million pounds of steam per hour (a) Pipeline currently transports 2.3 Bcf per... -
Page 7
...'s oil and las risirvis ari basid on profissional judlmints and may bi subjict to rivision. Reported oil and gas reserves are an estimate based on engineers' periodic review of reservoir characteristics and recoverability, including production decline rates, operating performance and economic... -
Page 8
...self-insured with respect to the related losses. Cybir attacks could silnificantly affict Occidintal. Cyber attacks on businesses have escalated in recent years. Occidental relies on electronic systems and networks to control and manage its oil and gas, chemicals, trading and pipeline operations and... -
Page 9
...& Gas, International Production and Engineering; 2008, Executive Vice President - Oxy Oil & Gas, Major Projects. Edward A. "Sandy" Lowe 61 Willie C.W. Chiang 52 Executive Vice President, Operations since 2012; ConocoPhillips: 2011-2012, Senior Vice President, Refining, Marketing, Transportation... -
Page 10
... Quarter 2012 Total 2012 7,487,614 78.69 7,230,000 17,255,575 (b) (a) Includes shares purchased from the trustee of Occidental's defined contribution savings plan that are not part of publicly announced plans or programs. (b) Occidental has had a 95 million share repurchase program authorized... -
Page 11
... peer group companies' common stock weighted by their relative market values within the peer group, and that all dividends were reinvested. Occidental's peer group consists of Tnadarko Petroleum Corporation, Tpache Corporation, Canadian Natural Resources Limited, Chevron Corporation, ConocoPhillips... -
Page 12
... this report, "Occidental" means Occidental Petroleum Corporation (OPC), or OPC and one or more entities in which it owns a controlling interest (subsidiaries). Occidental's principal businesses consist of three segments operated by OPC's subsidiaries and affiliates. The oil and gas segment explores... -
Page 13
...significant capital. Occidental's oil and gas production has grown approximately five percent annually during the three-year period ended December 31, 2012. Ø Maintenance capital Ø Dividends Ø Growth capital Ø Tcquisitions Ø Share repurchases Capital is employed to operate all assets in a safe... -
Page 14
... repurchases, retirement of debt and other business opportunities. Ts a result of Occidental's commitment to financial discipline, its year-end 2012 total debt-to-capitalization (debt and equity) ratio was 16 percent. Key Performance Indicators teneral Occidental seeks to meet its strategic goals... -
Page 15
... subsidiary. Excludes volumes from the Trgentine operations sold in February 2011 and classified as discontinued operations. United States Assets Production-Sharing Contracts (PSC) Occidental has interests that are operated under PSCs or similar contracts in Bahrain, Iraq, Libya, Oman, Qatar... -
Page 16
... advanced reservoir characterization techniques, resulting in approximately 320 new wells being drilled. Occidental began operating a new gas processing plant in Elk Hills in 2012 with capacity to handle 200 million cubic feet per day. Occidental's share of production in California was approximately... -
Page 17
... conducts a majority of its Middle East business development activities through its office in Tbu Dhabi, which also provides various support functions for Occidental's Middle East/North Tfrica oil and gas operations. Libya Occidental participates with subsidiaries of the Libyan National Oil Company... -
Page 18
...'s share of production from the Yemen properties was approximately 14,000 BOE per day in 2012. Latin America Assets Occidental does not have any reserves from non-traditional sources. For further information regarding Occidental's proved reserves, see "Supplemental Oil and Gas Information... -
Page 19
...commitments by Occidental to develop the reserves. This process involves reservoir engineers, geoscientists, planning engineers and financial analysts. Ts part of the proved reserves estimation process, all reserves volumes are estimated by a forecast of production rates, operating costs and capital... -
Page 20
...reports to the Tudit Committee of Occidental's Board of Directors during the year. Since 2003, Occidental has retained Ryder Scott Company, L.P. (Ryder Scott), independent petroleum engineering consultants, to review its annual oil and gas reserve estimation processes. In 2012, Ryder Scott conducted... -
Page 21
... PVC accounted for greater than 35 percent of the total sales of North Tmerican producers. Business Review Oil and tas Marketing and Trading The marketing and trading group markets substantially all of Occidental's oil, NGLs and gas production, trades around its assets, including transportation and... -
Page 22
...the impairment of domestic gas assets and related items. The 2011 amount includes pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to a Colombian net worth tax, and a pre-tax gain for the sale of an interest in a Colombian pipeline of $22 million. The... -
Page 23
... between the production and sales volumes per day are generally due to the timing of shipments at Occidental's international locations where product is loaded onto tankers. Production per Day 2012 2011 29 15 36 16 Middle East/North Africa Oil (MBBL) Bahrain Dolphin Oman Qatar Other Total... -
Page 24
... increase was mainly due to acquisitions in South Texas, California and the Williston Basin and higher production in Oman's Mukhaizna Field and Iraq, which were partially offset by lower production in Libya. Production was negatively impacted in the Middle East/North Tfrica, Colombia and Long Beach... -
Page 25
... Benefit (Charge) (in millions) 2012 2011 2010 OIL AND mAS Asset impairments and related items Libya exploration write-off Gains on sale of Colombian pipeline interest Foreign tax Total Oil and Gas $ $ (1,731) $ - (35) $ (275) - - - (1,731) $ - - - (275) 22 (29) (42) $ Occidental's 2012... -
Page 26
... $144 million after-tax gain recorded from the sale of the Trgentine operations. There was no net income attributable to noncontrolling interest in 2012 a n d 2011 due to the restructuring of Occidental's Colombian operations to take a direct working interest in the related assets as of December 31... -
Page 27
... asset impairments. Liabilities and Stockholders' Equity The increase in current maturities of long-term debt was due to debt maturing in 2013. The decrease in accounts payable reflected lower oil and gas prices in the marketing and trading operations during the fourth quarter of 2012 and lower oil... -
Page 28
... 2010 to 2011 was mainly due to the $3.0 billion increase in oil and gas expenditures, which reflected Occidental's share of development costs in Oman and Bahrain, and higher spending in domestic properties in California, the Permian Basin, South Texas and the Williston Basin. Occidental's United... -
Page 29
... lease agreements, mainly for transportation equipment, power plants, machinery, terminals, storage facilities, land and office space. Occidental leases assets when leasing offers greater operating flexibility. Lease payments are generally expensed as part of cost of sales and selling, general and... -
Page 30
... have been audited by the United States Internal Revenue Service (IRS) pursuant to its Compliance Tssurance Program, subsequent taxable years are currently under review. Tdditionally, in December 2012, Occidental filed United States federal refund claims for tax years 2008 and 2009 which are... -
Page 31
... 19 percent of Occidental's total assets at that date. Of such assets, approximately $10.6 billion are located in the Middle East/North Tfrica and approximately $1.6 billion are located in Latin Tmerica. For the year ended December 31, 2012, net sales outside North Tmerica totaled $8.8 billion... -
Page 32
... over the lives of the related assets. Occidental uses the successful efforts method to account for its oil and gas properties. Under this method, Occidental capitalizes costs of acquiring properties, costs of drilling successful exploration wells and development costs. The costs of exploratory... -
Page 33
... of future product prices, which Occidental bases on forward price curves and, when applicable, contractual prices, estimates of oil and gas reserves and estimates of future expected operating and development costs. In the fourth quarter of 2012, impairment charges totaling $1.7 billion pre-tax were... -
Page 34
.... Occidental performs impairment tests on its midstream and marketing assets whenever events or changes in circumstances lead to a reduction in the estimated useful lives or estimated future cash flows that would indicate that the carrying amount may not be recoverable, or when management's plans... -
Page 35
... and other alleged potentially responsible parties; (2) oil and gas ventures in which each participant pays its proportionate share of remediation costs reflecting its working interest; or (3) contractual arrangements, typically relating to purchases and sales of properties, in which the parties to... -
Page 36
.... Occidental's marketing and trading operations store natural gas purchased from third parties at Occidental's North Tmerican leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes through March 31, 2013. Ts of December 31, 2012 a n d 2011... -
Page 37
... - Business Review, Basic Chemicals," "- Industry Outlook," "Midstream, Marketing and Other Segment - Business Review, Gas Processing Plants and CO 2 Fields and Facilities" and "- Business Review, Pipeline Transportation," "- Industry Outlook," "Segment Results of Operations - Oil and Gas," "Taxes... -
Page 38
ITEM 8 FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA MANAGEMENT'S ANNUAL ASSESSMENT OF AND REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING The management of Occidental Petroleum Corporation and subsidiaries (Occidental) is responsible for establishing and maintaining adequate internal control over... -
Page 39
..., the financial position of Occidental Petroleum Corporation and subsidiaries as of December 31, 2012 and 2011, and the results of their operations and their cash flows for each of the years in the three-year period ended December 31, 2012 , in conformity with U.S. generally accepted accounting... -
Page 40
... of Occidental Petroleum Corporation and subsidiaries as of December 31, 2012 and 2011, and the related consolidated statements of income, comprehensive income, stockholders' equity and cash flows for each of the years in the three-year period ended December 31, 2012, and our report dated February... -
Page 41
..., net of reserves of $16 in both 2012 and 2011 Inventories Other current assets Total current assets $ 1,344 1,640 9,492 3,781 5,395 1,069 1,297 11,542 INVESTMENTS IN UNCONSOLIDATED ENTITIES 1,894 2,072 PROPERTY, PLANT AND EQUIPMENT Oil and gas segment Chemical segment Midstream, marketing... -
Page 42
... Sheets In millions, except share and per-share amounts Occidental Petroleum Corporation and Subsidiaries Liabilities and Stockholders' Equity at December 31, 2012 2011 600 $ CURRENT LIABILITIES Current maturities of long-term debt Accounts payable Accrued liabilities Domestic and foreign... -
Page 43
...share amounts Occidental Petroleum Corporation and Subsidiaries For the years ended December 31, 2012 2011 $ 2010 REVENUES AND OTHER INCOME Net sales $ 24,172 23,939 $ 19,045 Interest, dividends and other income 81 24,253 180 24,119 112 19,157 COSTS AND OTHER DEDUCTIONS Cost of sales... -
Page 44
...Statements of Comprehensive Income In millions Occidental Petroleum Corporation and Subsidiaries For the years ended December 31, Net income attributable to common stock Other comprehensive income (loss) items: Foreign currency translation (losses) gains Unrealized gains on derivatives (a) Pension... -
Page 45
... In millions Occidental Petroleum Corporation and Subsidiaries For the years ended December 31, 2012 2011 4,598 37 $ 2010 CASH FLOW FROM OPERATINm ACTIVITIES Net income Adjustments to reconcile net income to net cash provided by operating activities: Discontinued operations, net Depreciation... -
Page 46
... subsidiaries and its undivided interests in oil and gas exploration and production ventures. Occidental accounts for its share of oil and gas exploration and production ventures, in which it has a direct working interest, by reporting its proportionate share of assets, liabilities, revenues, costs... -
Page 47
... financial statements include assets of approximately $12.3 billion as of December 31, 2012 , and net sales of approximately $8.8 billion for the year ended December 31, 2012, relating to Occidental's operations in countries outside North Tmerica. Occidental operates some of its oil and gas business... -
Page 48
...prices, which Occidental bases on forward price curves and, when applicable, contractual prices, estimates of oil and gas reserves and estimates of future expected operating and development costs. Fluctuations in commodity prices and production and development costs could cause management's plans to... -
Page 49
... and other alleged potentially responsible parties; (2) oil and gas ventures in which each participant pays its proportionate share of remediation costs reflecting its working interest; or (3) contractual arrangements, typically relating to purchases and sales of properties, in which the parties to... -
Page 50
... cost is depreciated over the useful life of the asset. Tt a certain number of its facilities, Occidental has identified conditional asset retirement obligations that are related mainly to plant decommissioning. Occidental believes that there is an indeterminate settlement date for these asset... -
Page 51
... December 31, 2012, Occidental paid approximately $2.3 billion for domestic oil and gas properties in the Permian Basin, Williston Basin, South Texas and California. In November 2012, Occidental and Magellan Midstream Partners, L.P. (Magellan) formed BridgeTex Pipeline Company, LLC (BridgeTex) and... -
Page 52
... of the general partner. In December 2010, Occidental also completed its acquisition of the remaining 50-percent joint venture interest in Elk Hills Power, LLC (EHP), a limited liability company that operates a gas-fired power-generation plant in California, for approximately $175 million, bringing... -
Page 53
... debt ratings. Tdditionally, Occidental paid average annual facility fees of 0.08 percent in 2012 on the total commitment amounts of the Credit Facility. The Credit Facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events... -
Page 54
... 2012 and 2011, variable-rate debt constituted approximately 1 percent of Occidental's total debt. NOTE 6 LEASE COMMITMENTS Operating lease agreements include leases for transportation equipment, power plants, machinery, terminals, storage facilities, land and office space. Occidental's operating... -
Page 55
.... Occidental's marketing and trading operations store natural gas purchased from third parties at Occidental's North Tmerican leased storage facilities. Derivative instruments are used to fix margins on the future sales of the stored volumes through March 31, 2013 . Ts of December 31, 2012 and 2011... -
Page 56
... presents the gross fair value of Occidental's outstanding derivatives as of December 31, 2012 and 2011 (in millions): December 31, 2012 Asset Derivatives Balance Sheet Location Fair Value $ Liability Derivatives Balance Sheet Location Accrued liabilities Deferred credits and other liabilities... -
Page 57
... its credit ratings, it would not have resulted in a material change in its collateral-posting requirements as of December 31, 2012 and 2011. Foreign Currency Risk Occidental's foreign operations have limited currency risk. Occidental manages its exposure primarily by balancing monetary assets and... -
Page 58
... COSTS Occidental's environmental costs, some of which include estimates, are presented below for each segment for each of the years ended December 31: In millions Operating Expenses 2012 $ 160 70 $ 2011 2010 Oil and Gas Chemical Midstream and Marketing Capital Expenditures Oil and Gas Chemical... -
Page 59
... consolidated financial position or results of operations. OPC, its subsidiaries or both have entered into agreements providing for future payments to secure terminal and pipeline capacity, drilling rigs and services, electrical power, steam and certain chemical raw materials. Occidental has certain... -
Page 60
...: 2012 2011 Deferred Tax Tax effects of temporary differences (in millions) Property, plant and equipment differences Equity investments, partnerships and foreign subsidiaries Environmental reserves Postretirement benefit accruals Deferred compensation and benefits Asset retirement obligations... -
Page 61
...under the program at an average cost of $77.98 and $77.12 per share. Tdditionally, Occidental purchased shares from the trustee of its defined contribution savings plan during the years ended December 31, 2012, 2011 and 2010. Ts of December 31, 2012 , 2011 and 2010, treasury stock shares numbered 83... -
Page 62
... Occidental's common stock on the grant date and was fully recognized at that time. The following table summarizes certain stock-based incentive amounts for the past three years: For the years ended December 31, (in millions) Compensation expense Income tax benefit recognized in the income statement... -
Page 63
... of Occidental common stock over the expected lives as estimated on the grant date. The risk-free interest rate is the implied yield available on zero coupon T-notes (US Treasury Strip) at the grant date with a remaining term equal to the expected life of the measured instrument. The dividend yield... -
Page 64
... range or settlement provision, except for the TSRIs issued in 2010, 2011 and 2012, for which cumulative dividends will be paid upon vesting for the number of vested shares. The fair values of TSRIs are initially determined on the grant date using a Monte Carlo simulation model based on Occidental... -
Page 65
... plans is limited and approximately 1,000 domestic and 1,600 foreign national employees, mainly union, nonunion hourly and certain employees that joined Occidental from acquired operations with grandfathered benefits, are currently accruing benefits under these plans. Pension costs for Occidental... -
Page 66
... the amounts recognized in the consolidated balance sheets of Occidental related to its pension and postretirement benefit plans and their funding status, obligations and plan asset fair values (in millions): Pension Benefits Postretirement Benefits 2011 As of December 31, Amounts recognized in the... -
Page 67
... grade corporate debt in the applicable country, taking into account hyperinflationary environments when necessary. The discount rates used for the foreign pension plans ranged from 1.5 percent to 10.0 percent at both December 31, 2012 and 2011. The average rate of increase in future compensation... -
Page 68
... and manager guideline compliance reviews, annual liability measurements and periodic studies. The fair values of Occidental's pension plan assets by asset category are as follows (in millions): Fair Value Measurements at December 31, 2012 Using Level 2 Level 3 Description Asset Class: Level... -
Page 69
... their estimated useful lives. The following table presents Occidental's ownership interest in the summarized financial information of its equity-method investments: For the years ended December 31, (in millions) Revenues Costs and expenses Net income $ 2012 2,667 2,310 $ 357 $ $ 2011 2,439 2,046... -
Page 70
... and trading activities with Plains Pipeline for oil and NGLs. These transactions are reported in Occidental's income statement on a net margin basis. The sales amounts above include the net margins on such transactions, which were negligible. In 2012 and 2011, sales to Dolphin Energy accounted for... -
Page 71
..., where applicable, contractual prices, estimates of oil and gas reserves, estimates of future expected operating and development costs and appropriate discount rates. In 2012, Occidental recorded pre-tax impairment charges of $1.7 billion, almost all of which were for certain assets in Midcontinent... -
Page 72
Industry Segments In millions Oil and Gas Chemical $ $ Midstream and Marketing $ $ Corporate and Eliminations $ $ (713) (501) (f,h) Total $ $ YEAR ENDED DECEMBER 31, 2012 Net sales Pretax operating profit (loss) Income taxes Discontinued operations, net $ $ 18,906 (a) 7,095 (d) 4,580 (b) 720... -
Page 73
...the impairment of domestic gas assets and related items. The 2011 amount includes pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to a Colombian net worth tax, and a pre-tax gain for the sale of an interest in a Colombian pipeline of $22 million. The... -
Page 74
2012 Quarterly Financial Data (Unaudited) In millions, except per-share amounts Occidental Petroleum Corporation and Subsidiaries Three months ended Segment net sales Oil and gas Chemical Midstream, marketing and other Eliminations Net sales $ March 31 4,902 1,148 393 (175) June 30 $ September ... -
Page 75
2011 Quarterly Financial Data (Unaudited) In millions, except per-share amounts Occidental Petroleum Corporation and Subsidiaries Three months ended Segment net sales Oil and gas Chemical Midstream, marketing and other Eliminations Net sales $ March 31 4,367 $ June 30 4,591 1,325 441 $ $ ... -
Page 76
...discussions of oil and gas production or volumes, in general, refer to sales volumes unless the context requires or it is indicated otherwise. Oil Reserves In millions of barrels (MMbbl) United States Latin America (a,b) 95 2 9 Middle East/ North Africa (c) 494 Total 1,974 PROVED DEVELOPED AND... -
Page 77
...States Latin America 221 8 Middle East/ North Africa (a) 68 Total 289 6 PROVED DEVELOPED AND UNDEVELOPED RESERVES Balance at December 31, 2009 Revisions of previous estimates Improved recovery Extensions and discoveries Purchases of proved reserves Sales of proved reserves Production Balance... -
Page 78
... Latin America (a) 2,799 Middle East/ North Africa (b) 2,175 (60) 87 Total 5,027 PROVED DEVELOPED AND UNDEVELOPED RESERVES Balance at December 31, 2009 Revisions of previous estimates Improved recovery Extensions and discoveries Purchases of proved reserves Sales of proved reserves Production... -
Page 79
...States Latin America (b,c) 2,072 Middle East/ North Africa (d) 924 Total PROVED DEVELOPED AND UNDEVELOPED RESERVES Balance at December 31, 2009 104 2 Revisions of previous estimates Improved recovery Extensions and discoveries Purchases of proved reserves Sales of proved reserves (e) Production... -
Page 80
.... COSTS INCURRED Costs incurred in oil and gas property acquisition, exploration and development activities, whether capitalized or expensed, were as follows: United In millions States Latin America Middle East/ North Africa Total FOR THE YEAR ENDED DECEMBER 31, 2012 Property acquisition costs... -
Page 81
... States Latin America $ Middle East/ North Africa 1,085 165 $ Total $ FOR THE YEAR ENDED DECEMBER 31, 2012 Revenues (a) Production costs (b) Other operating expenses Depreciation, depletion and amortization Taxes other than on income Asset impairments and related items Exploration expenses... -
Page 82
... 61.06 $ Middle East/ North Africa $ Total $ FOR THE YEAR ENDED DECEMBER 31, 2012 Revenue from each barrel of oil equivalent ($/bbl.) (a,b) Production costs Other operating expenses Depreciation, depletion and amortization Taxes other than on income Asset impairments and related items Exploration... -
Page 83
... Flows In millions United States Latin America $ Middle East/ North Africa 10,574 (3,562) (541) $ Total $ AT DECEMBER 31, 2012 Future cash inflows Future costs Production costs and other operating expenses Development costs (a) Future income tax expense Future net cash flows Ten percent discount... -
Page 84
... table sets forth, for each of the three years in the period ended December 31, 2012, Occidental's net productive and dry -exploratory and development wells completed. United States 2012 Latin America (a) 41.0 Middle East/ North Africa - 3.3 Total Oil Gas - - - Dry 2011 Oil Gas Exploratory... -
Page 85
...East/North Tfrica. Oil and Gas Acreage The following table sets forth, as of December 31, 2012 , Occidental's holdings of developed and undeveloped oil and gas acreage. Thousands of acres at December 31, 2012 Developed (b) United States (a) Latin America 8,373 5,012 121 Middle East/ North Africa... -
Page 86
... gas (MMCF) California Permian Midcontinent and Other TOTAL Latin America (a) Oil (MBBL) - Colombia (b) Natural gas (MMCF) - Bolivia Middle East/North Africa Oil (MBBL) Bahrain Dolphin Oman Qatar Other TOTAL NGLs (MBBL) Dolphin Other TOTAL Natural gas (MMCF) Bahrain Dolphin Oman TOTAL 2012 2011... -
Page 87
Sales Volumes per Day United States Oil (MBBL) NGLs (MBBL) Natural gas (MMCF) Latin America (a) Oil (MBBL) - Colombia (b) Natural gas (MMCF) - Bolivia Middle East/North Africa Oil (MBBL) Bahrain Dolphin Oman Qatar Other TOTAL NGLs (MBBL) Dolphin Other TOTAL Natural gas (MMCF) 2012 255 73 2011 230 ... -
Page 88
Schedule II - Valuation and Qualifying Accounts In millions Occidental Petroleum Corporation and Subsidiaries Additions Balance at Beginning of Period 2012 Charged to Costs and Expenses 16 $ Charged to Other Accounts Deductions (a) - - - - - 14 - 14 $ Balance at End of Period $ 16 Allowance ... -
Page 89
... over Financial Reporting are set forth in Item 8. ITEM 9B. OTHER INFORMATION On February 20, 2013, Occidental provided retention payment and severance benefits to Mr. William Tlbrecht, Vice President and President, Tmericas, Oxy Oil and Gas; Mr. James Lienert, Executive Vice President - Business... -
Page 90
... of Tugust 18, 2011, between Occidental Petroleum and The Bank of New York Mellon Trust Company, N.T. (filed as Exhibit 4.1 to the Current Report on Form 8-K of Occidental dated Tugust 15, 2011 (date of earliest event reported), File No. 1-9210). 4.2* Indenture (Senior Debt Securities), dated as of... -
Page 91
...and certain executive officers (filed as Exhibit B to the Proxy Statement of Occidental for its May 21, 1987, Tnnual Meeting of Stockholders, File No. 1-9210). Occidental Petroleum Corporation Split Dollar Life Insurance Program and Related Documents (filed as Exhibit 10.2 to the Quarterly Report on... -
Page 92
...10.52* 10.53* 10.54* Occidental Petroleum Corporation Executive Incentive Compensation Plan (filed as Exhibit 10.69 to the Tnnual Report on Form 10-K of Occidental for the fiscal year ended December 31, 2005, File No. 1-9210). Description of financial counseling program (filed as Exhibit 10.50 to... -
Page 93
..., 2012, File No. 1-9210). Form of Occidental Petroleum Corporation 2005 Long-Term Incentive Plan Common Stock and Sign-On Bonus and Other Tward Tgreement (filed as Exhibit 10.6 to the Quarterly Report on Form 10-Q of Occidental for the fiscal quarter ended June 30, 2012, File No. 1-9210). Statement... -
Page 94
... of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. OCCIDENTAL PETROLEUM CORPORATION Fe(ruary 26, 2013 By: /s/ Stephen I. Chazen Stephen I. Chazen President and Chief Executive Officer Pursuant to the requirements of the... -
Page 95
Title Date /s/Avedick B. Poladian Avedick B. Poladian Director Fe(ruary 26, 2013 /s/ Aziz D. Syriani Aziz D. Syriani /s/ Rosemary Tomich Rosemary Tomich Director Fe(ruary 26, 2013 Director Fe(ruary 26, 2013 94 -
Page 96
EXHIBITS FILED WITH THIS REPORT 10.4 10.6 10.19 Tmendment to Employment Tgreement, dated February 25, 2013, between Occidental and Donald P. de Brier. Retention Payment and Separation Benefits Tttachment. Tmendment Number 5 to the Occidental Petroleum Corporation Supplemental Retirement Plan II (... -
Page 97
...h day of February, 2013 by and between Occidental Petroleum Corporation, a Delaware corporation (hereinafter referred to as " Employer "), and Donald P. de Brier (hereinafter referred to as " Employee "). WITNESSETH WHEREAS, Employee has been rendering services to Employer, most recently pursuant to... -
Page 98
...will pay you an amount equal to 2 times your then yearly base salary in one lump sum cash payment at the date that is one year after the new CEO commences employment. b. Separation Benefits. If, prior to December 31, 2014, Oxy terminates you without cause, then, subject to your timely execution of... -
Page 99
...dollar limit in effect for the Plan Year under Code section 415(c)(1)(A), based on (1) an assumed level of Annual Bonus for a particular level of Base Pay of Record determined by the Company in advance of the Plan Year, (2) the maximum contribution rates for the most highly compensated employees and... -
Page 100
... Base Pay of Record as of May 1 of the Plan Year and Annual Bonus awarded during the Plan Year, less any portion of such Annual Bonus deferred under the Deferred Compensation Plan, exceeds the Secondary Threshold Amount applicable to the Employee for the Plan Year. Whether an Employee meets the... -
Page 101
... December 31, 2012 2011 (a) 2010 2009 2008 Income from continuing operations Subtract: Net income attributable to noncontrolling interest Adjusted income from equity investments (b) Add: Provision for taxes on income (other than foreign oil and gas taxes) Interest and debt expense Portion of... -
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... Cogeneration Limited Partnership Joslyn Partnership Laguna Petroleum Corporation Lomita Gasoline Company, Inc. Marico Exploration, Inc. MC2 Technologies Inc. Miller Springs Remediation Management, Inc. Moncrief Minerals Partnership, L.P. Monument Production, Inc. MTD Pipeline LLC Natural Gas... -
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... and Gas Ltd. Occidental International Services, Inc. Occidental Joslyn GP 1 Co. Occidental Joslyn GP 2 Co. Occidental Karawan Holding Ltd. Occidental Karawan, LLC Occidental Latin America Holdings, Inc. Occidental Libya Oil & Gas B.V. Occidental Middle East Development Company Occidental Midstream... -
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... of Oman Ltd. Occidental Petroleum of Qatar Ltd. Occidental Power Marketing, L.P. Occidental Power Services, Inc. Occidental PVC, LLC Occidental Qatar Energy Company LLC Occidental Quimica do Brasil Ltda. Occidental Resources Company Occidental Shah Gas Holdings Ltd. Occidental Tower Corporation... -
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.... OXY LPG LLC Oxy LPG Terminal, LLC Oxy Midstream Strategic Development LLC OXY NM LP OXY Oil Partners, Inc. Oxy Oleoducto SOP, LLC Oxy Overseas Services Ltd. OXY PBLP Holder, Inc. OXY PBLP Manager, LLC Oxy Pipeline I Company OXY Support Services, LLC OXY Tidelands, Inc. Oxy Transport I Company OXY... -
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... Aircraft Corporation Tenby, Inc. Thums Long Beach Company Tidelands Oil Production Company Turavent Oil AG Vintage Gas, Inc. Vintage Petroleum Boliviana, Ltd. Vintage Petroleum International Finance B.V. Vintage Petroleum International Holdings, Inc. Vintage Petroleum International Ventures, Inc... -
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... related financial statement schedule, and the effectiveness of internal control over financial reporting as of December 31, 2012 , which reports appear in the December 31, 2012 annual report on Form 10-K of Occidental Petroleum Corporation. /s/ KPMG LLP Los Angeles, California February 26, 2013 -
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... and 333-176308) (the "Registration Statements"), of references to our name and to our letter dated February 5, 2013, relating to our review of the methods and procedures used by Occidental for estimating its oil and gas proved reserves (our "Letter"), (ii) filing of our Letter with the Securities... -
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... information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 26, 2013 /s/ STEPHEN I. CHAZEN Stephen I. Chazen President and Chief Executive Officer -
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... financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. Date: February 26, 2013 /s/ CYNTHIA L. WALKER Cynthia L. Walker Executive Vice President... -
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... with the Annual Report on Form 10-K of Occidental Petroleum Corporation (the "Company") for the fiscal period ended December 31, 2012, as filed with the Securities and Exchange Commission on February 26, 2013 (the "Report"), Stephen I. Chazen, as Chief Executive Officer of the Company, and Cynthia... -
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EXHIBIT 99.1 OCCIDENTAL PETROLEUM CORPORATION Process Review of the Estimated Future Reserves and Income Attributable to Certain Fee, Leasehold and Royalty Interests and Certain Economic Interests Derived Through Certain Production Sharing Contracts SEC Parameters As of December 31, 2012 ... -
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... SUITE 4600 HOUSTON, TEXAS 77002-5294 TELEPHONE (713) 651-9191 February 5, 2013 Occidental Petroleum Corporation 10..9 Wilshire Boulevard, 16 th Floor Los Angles, California 90024 Ladies and Gentlemen: At your request, Ryder Scott Company, L.P. (Ryder Scott) has conducted a process review of the... -
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... 5, 2013 Page 2 Percentage of Total Company Estimated Net Reserves Reviewed by Ryder Scott SEC Parameters Occidental Petroleum Corporation As of December 31, 2012 Oil/Condensate Total Proved Developed Total Proved Undeveloped Total Company Proved NGL 50% 15% 38% Total Liquid Hydrosarbons Gas... -
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... and Uncertainty The SEC defines reserves as the "estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations." All reserve estimates involve an assessment of the... -
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...including type curves supported by analogs and reservoir modeling as noted above. The data used by Occidental in their analysis of the non-producing and undeveloped reserves for the properties reviewed by us was considered sufficient for the purpose thereof. RYDER SCOTT COMPANY PETROLEUM CONSULTANTS -
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... and related future net cash flows, Occidental considered many factors and assumptions including, but not limited to, the use of reservoir parameters derived from geological, geophysical and engineering data which cannot be measured directly, economic criteria based on current costs and SEC pricing... -
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... of Petroleum Accounting Societies overhead costs that are allocated directly to the leases and wells under terms of operating agreements. The operating costs used by Occidental were accepted as factual data and reviewed by us for their reasonableness; however, we have not conducted an independent... -
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... capacity or other operating conditions, market demand and allowables or other constraints set by regulatory bodies. Reserves Derived by Occidental Through Certain Production Sharing Contracts The reserves for certain properties located in the Middle East reviewed herein are limited to the period... -
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... of reserves quantities reported by Occidental. Standards of Independence and Professional Qualification Ryder Scott is an employee-owned independent petroleum engineering consulting firm. We do not serve as officers or directors of any privately-owned or publicly-traded oil and gas company and are... -
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... organization. We are independent petroleum engineers with respect to Occidental. Neither we nor any of our employees have any interest in the subject properties and neither the employment to do this work nor the compensation is contingent on the results of our review. The results of the... -
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... reservoir engineering, geoscience and petroleum economics evaluation methods, procedures and software and ethics for consultants. She also presented presentations at the 2012 RSC Reserves Conference, the 2012 North American Petroleum Accounting Conference (NAPAC), and the 2012 National Oil and Gas... -
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... SEC document are denoted in italics herein). Reserves are estimated remaining quantities of oil and gas and related substances anticipated to be economically producible, as of a given date, by application of development projects to known accumulations. All reserve estimates involve an assessment... -
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...by application of development projects to known accumulations. In addition, there must exist, or there must be a reasonable expectation that there will exist, the legal right to produce or a revenue interest in the production, installed means of delivering oil and gas or related substances to market... -
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PETROLEUM RESERVES DEFINITIONS Page 3 PROVED RESERVES (SEC DEFINITIONS) CONTINUED (ii) In the absence of data on fluid contacts, proved quantities in a reservoir are limited by the lowest known hydrocarbons (LKH) as seen in a well penetration unless geoscience, engineering, or performance data and ... -
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...new well; and (ii) Through installed extraction equipment and infrastructure operational at the time of the reserves estimate if the extraction is by means not involving a well. Developed Producing (SPE-PRMS Definitions) While not a requirement for disclosure under the SEC regulations, developed oil... -
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...prior to start of production. In all cases, production can be initiated or restored with relatively low expenditure compared to the cost of drilling a new well. UNDEVELOPED RESERVES (SEC DEFINITIONS) Securities and Exchange Commission Regulation S-X §210.4-10(a)(31) defines undeveloped oil and gas... -
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