• Cash flow from continuing operations of $0.8 billion and cash flow from continuing operations before working capital of $2.1 billion
• Maintained capital discipline with spending of $579 million, resulting in free cash flow excluding working capital of $1.6 billion
• Exceeded guidance midpoint by 17 Mboed with production of 1,117 Mboed from continuing operations
• Continued operational excellence through record drilling and completion efficiencies
• Closed $0.5 billion of asset sales, including non-core assets in the DJ Basin
• Exceeded pre-tax income guidance for both OxyChem and midstream and marketing segments
• Raised total year pre-tax guidance for OxyChem to $1.0 billion

Occidental has announced net loss attributable to common stockholders for the first quarter of 2021 of $346 million, or $0.36 per diluted share, and an adjusted loss attributable to common stockholders of $136 million, or $0.15 per diluted share, compared to 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 $610 million, or $0.65 per diluted share. First quarter after-tax items affecting comparability of $210 million included $445 million loss in discontinued operations related to Ecuador and Ghana and $106 million of charges for non-core expiring domestic onshore undeveloped oil and gas leases, partially offset by $293 million of net derivative gains and a $79 million gain on the sale of 11.5 million limited partner units in Western Midstream Partners, LP.

“Our first quarter results are a perfect example of how our ability to consistently deliver strong operational performance has strengthened our financial position. Our commitment to capital discipline contributed to first quarter free cash flow of $1.6 billion," said President and Chief Executive Officer Vicki Hollub. "Occidental is well positioned to continue to use excess cash flows, coupled with asset sales proceeds, to reduce debt and other financial obligations.”

QUARTERLY RESULTS

Oil and Gas

Oil and gas pre-tax loss on continuing operations for the first quarter of 2021 was $62 million, compared to a pre-tax loss of $1.1 billion for the fourth quarter of 2020. The first quarter results included pre-tax charges of $135 million associated with non-core expiring domestic onshore oil and gas undeveloped leases and $40 million of net derivative losses. Excluding items affecting comparability, first quarter of 2021 oil and gas results improved over the fourth quarter of 2020 due to higher commodity prices, partially offset by higher depreciation, depletion and amortization rates and lower volumes. For the first quarter of 2021, average WTI and Brent marker prices were $57.84 per barrel and $61.10 per barrel, respectively. Average worldwide realized crude oil prices increased by 37 percent from the prior quarter to $55.65 per barrel. Average worldwide realized natural gas liquids (NGL) prices increased by 57 percent from the prior quarter to $23.44 per barrel of oil equivalent (BOE). Average domestic realized gas prices increased by 65 percent from the prior quarter to $2.56 per Mcf.

Total average global production of 1,117 thousand of barrels of oil equivalent per day (Mboed) for the first quarter exceeded the midpoint of guidance by 17 Mboed. Rockies and Gulf of Mexico exceeded the high end of guidance with production of 296 Mboed and 151 Mboed, respectively. Permian production of 457 Mboed came in at the high end of guidance. International average daily production volumes were 213 Mboed.

OxyChem

Chemical pre-tax income of $251 million for the first quarter of 2021 exceeded guidance of $225 million. Compared to the fourth quarter of 2020 pre-tax income of $192 million, the increase in first quarter of 2021 income was driven primarily by improved pricing across most product lines, partially offset by the unfavorable impact of winter storm Uri in February 2021. The storm temporarily interrupted production and sales across multiple facilities, and increased the cost of raw materials, primarily ethylene and power.

Midstream and Marketing

Midstream and marketing pre-tax income for the first quarter of 2021 was $282 million, compared to a pre-tax loss of $90 million for the fourth quarter of 2020. First quarter income included a pre-tax gain of $102 million on the sale of 11.5 million limited partner units in WES and net derivative gains of $15 million. Excluding items affecting comparability, first quarter of 2021 midstream and marketing income improved compared to the fourth quarter of 2020, primarily due the timing impact of crude export sales in the marketing business. WES equity income, excluding the pre-tax gain on sale for the first quarter of 2021, was $91 million. Excluding WES equity income, midstream and marketing's outperformance compared to guidance in the first quarter of 2021 was primarily driven by the marketing business's ability to optimize long-haul gas transportation in the Rockies along with the timing impact of export crude sales.

KeyFacts Energy: Occidental US country profile