• Cash flow from continuing operations of $3.3 billion and cash flow from continuing operations before working capital of $2.7 billion
• Maintained capital discipline with spending of $698 million, resulting in free cash flow excluding working capital of $2.0 billion
• Executed debt tender offer and repaid over $3.0 billion of long-term debt in July
• Advanced divestiture progress with Permian Basin non-strategic acreage sale
• Exceeded production guidance midpoint by 48 Mboed, with production of 1,203 Mboed from continuing operations
• Exceeded pre-tax income guidance for both OxyChem and midstream and marketing segments
• OxyChem on track for record earnings with total year pre-tax guidance of $1.25 billion

Occidental announced a net loss attributable to common stockholders for the second quarter of 2021 of $97 million, or $0.10 per diluted share, and adjusted income attributable to common stockholders of $311 million, or $0.32 per diluted share, compared to a net loss attributable to common stockholders for the prior quarter 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. Second quarter after-tax items affecting comparability of $389 million included $426 million of net derivative mark-to-market losses, partially offset by a state tax rate revaluation of $55 million.

“Our strong second quarter operational performance continued to drive robust financial performance, resulting in our highest level of free cash flow in over a decade for the second consecutive quarter," said President and Chief Executive Officer Vicki Hollub. "The successful execution of the tender offer is part of our ongoing commitment to reduce debt and improve our balance sheet. The excess cash we have available to apply to early debt retirement is a direct result of the progress we continue to make with our divestiture program and the substantial free cash flow we are positioned to generate in the current oil price environment.”

QUARTERLY RESULTS

Oil and Gas

Oil and gas pre-tax income on continuing operations for the second quarter of 2021 was $631 million, compared to a pre-tax loss of $62 million in the prior quarter. The second quarter results included pre-tax charges of $161 million, primarily related to derivative mark-to-market losses. Excluding items affecting comparability, second quarter of 2021 oil and gas results improved over the prior quarter due to higher crude oil prices, higher sales volumes across all products and lower operating expenses, partially offset by higher exploration expense and transportation costs. For the second quarter of 2021, average WTI and Brent marker prices were $66.07 per barrel and $69.02 per barrel, respectively. Average worldwide realized crude oil prices increased by approximately 15 percent from the prior quarter to $64.18 per barrel. Average worldwide realized natural gas liquids prices increased by approximately 7 percent from the prior quarter to $25.06 per barrel of oil equivalent. Average domestic realized gas prices increased slightly by roughly 1 percent from the prior quarter to $2.59 per Mcf.

Total average global production from continuing operations of 1,203 thousand of barrels of oil equivalent per day (Mboed) for the second quarter exceeded the midpoint of guidance by 48 Mboed, with Permian, Rockies and Gulf of Mexico production of 504 Mboed, 308 Mboed and 149 Mboed, respectively. International average daily production volumes were 242 Mboed.

OxyChem

Chemical pre-tax income of $312 million for the second quarter of 2021 exceeded guidance by $12 million. Compared to prior quarter pre-tax income of $251 million, the increase in second quarter of 2021 income was driven primarily by improved pricing and sales volumes across most product lines, along with favorable ethylene and energy costs.

Midstream and Marketing

Midstream and marketing's second quarter pre-tax income, excluding WES equity income, exceeded guidance. WES equity income for the second quarter of 2021 was $115 million. Midstream and marketing pre-tax loss for the second quarter of 2021 was $30 million, compared to pre-tax income of $282 million in the prior quarter. Second quarter loss included net derivative mark-to-market losses of $180 million along with a $22 million settlement gain. Excluding items affecting comparability, second quarter of 2021 midstream and marketing income decreased compared to the prior quarter, primarily due to the timing impact of crude export sales in the marketing business and lower margins on waterborne sales as well as the marketing business's ability to optimize long-haul gas transportation in the Rockies in the first quarter of 2021, partially offset by higher Dolphin Pipeline income as planned maintenance was completed in the first quarter and higher sulfur prices at Al Hosn Gas.

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