• Confirmed $2.9 billion capital budget to sustain 2021 production in line with the fourth quarter of 2020, while lowering base decline to 22 percent
• Used net proceeds from asset sales and cash on hand to repay $2.3 billion of debt in the fourth quarter
• Raised $2.0 billion in senior unsecured debt and extended $2.0 billion of near-term maturities in the fourth quarter
• Exceeded global production guidance and continued to deliver operational excellence in the fourth quarter
• Production of 1,143 Mboed from continuing operations, exceeding midpoint of guidance by 13 Mboed
• Permian Resources exceeded high-end of guidance, producing 382 Mboed
• Continued to lower costs and achieved capital synergies for well cost savings in the Texas Delaware and DJ Basins

Occidental today announced a net loss attributable to common stockholders for the fourth quarter of 2020 of $1.3 billion, or $1.41 per diluted share, and an adjusted loss attributable to common stockholders of $731 million, or $0.78 per diluted share. Fourth quarter after-tax items affecting comparability of $581 million included a loss of $820 million related to the sale of non-core assets in the Permian Basin.

“We remain committed to strengthening our balance sheet and transitioned into 2021 with an improved financial position by achieving our 2020 divestiture target, reducing debt and successfully extending debt maturities,” said President and Chief Executive Officer Vicki Hollub. “In the fourth quarter, our businesses again outperformed as our teams continue to leverage our technical expertise to mitigate production decline while relentlessly lowering costs. 

”We continue to make progress on our debt structure and have significantly exceeded our cost savings targets while delivering operational excellence across our business," said President and Chief Executive Officer Vicki Hollub. "These decisive financial and operational actions reflect our leadership as a low-cost operator, positioning us for success when market conditions improve."

QUARTERLY RESULTS

Oil and Gas
Oil and gas pre-tax loss on continuing operations for the fourth quarter was $1.1 billion, compared to a pre-tax loss of $1.1 billion for the third quarter of 2020. The fourth quarter results included a pre-tax loss of $820 million related to the sale of non-core assets in the Permian Basin. Excluding items affecting comparability, fourth quarter oil and gas results improved over the third quarter due to higher commodity prices. For the fourth quarter of 2020, average WTI and Brent marker prices were $42.66 per barrel and $45.24 per barrel, respectively. Average worldwide realized crude oil prices increased by approximately 5 percent from the prior quarter to $40.77 per barrel. Average worldwide realized NGL prices increased by approximately 1 percent from the prior quarter to $14.95 per barrel of oil equivalent (BOE). Average domestic realized gas prices increased by approximately 31 percent from the prior quarter to $1.55 per Mcf.

Excluding Colombia, which was sold in December, total average daily production for the fourth quarter was 1,143 thousand of barrels of oil equivalent per day (Mboed), which exceeded the midpoint of guidance by 13 Mboed. Permian Resources exceeded the high end of guidance with production of 382 Mboed and all other domestic operations came in near the high end of guidance with production of 518 Mboed. International average daily production volumes were 243 Mboed.

OxyChem
Chemical pre-tax income of $192 million for the fourth quarter exceeded guidance. Compared to prior quarter income of $178 million, the improvement in fourth quarter income resulted primarily from higher vinyl margins, partially offset by lower realized caustic soda prices.

Midstream and Marketing
Midstream and marketing pre-tax loss for the fourth quarter was $90 million, compared to a loss of $2.8 billion for the third quarter of 2020. Excluding items affecting comparability, midstream and marketing pre-tax fourth quarter results reflected higher non-cash mark-to-market losses in the marketing business. Excluding WES equity income, midstream and marketing pre-tax loss for the fourth quarter was $234 million.

KeyFacts Energy: Occidental US country profile