• Cash flow from continuing operations of $2.9 billion and cash flow from continuing operations before working capital of $3.0 billion
• Efficient deployment of capital spending of $656 million, resulting in free cash flow excluding working capital of over $2.3 billion
• Completed large-scale divestiture program with the sale of Ghana in October
• Repaid $4.3 billion of long-term debt and retired $750 million of interest rate swaps
• Earnings per share of $0.65 per diluted share and adjusted earnings per share of $0.87 per diluted share
• OxyChem generated record earnings and increased total year pre-tax guidance to $1.45 billion
• Exceeded production guidance midpoint by 15 Mboed, despite impact of Hurricane Ida, with production of 1,160 Mboed from continuing operations

Occidental has announced net income attributable to common stockholders for the third quarter of 2021 of $628 million, or $0.65 per diluted share, and adjusted income attributable to common stockholders of $836 million, or $0.87 per diluted share, compared to a net loss attributable to common stockholders for the prior quarter 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. Third quarter after-tax items affecting comparability of $208 million included $102 million of net derivative mark-to-market losses and $69 million of debt tender premiums.

"Our strong operational and financial performance continued in the third quarter," said President and Chief Executive Officer Vicki Hollub. "Our teams' focus on efficiency has generated record free cash flow before working capital in each quarter this year, allowing us to reduce debt and strengthen our balance sheet."

QUARTERLY RESULTS

Oil and Gas
Oil and gas pre-tax income on continuing operations for the third quarter of 2021 was $1.5 billion, compared to pre-tax income of $631 million in the prior quarter. The third quarter results included pre-tax charges of $112 million, primarily related to derivative mark-to-market losses. Excluding items affecting comparability, third quarter 2021 oil and gas income improved over the prior quarter due to higher crude oil, natural gas liquids (NGL) and gas prices and lower depreciation, depletion and amortization (DD&A) rates, which were partially offset by lower crude sales volumes and higher operating expenses. For the third quarter of 2021, average WTI and Brent marker prices were $70.56 per barrel and $73.23 per barrel, respectively. Average worldwide realized crude oil prices increased by approximately 7 percent from the prior quarter to $68.74 per barrel. Average worldwide realized NGL prices increased by approximately 36 percent from the prior quarter to $34.01 per barrel of oil equivalent. Average domestic realized gas prices increased by approximately 29 percent from the prior quarter to $3.35 per Mcf.

Total average global production from continuing operations of 1,160 thousand of barrels of oil equivalent per day (Mboed) for the third quarter exceeded the midpoint of guidance by 15 Mboed, with Permian and Rockies exceeding guidance with production of 499 Mboed and 292 Mboed, respectively. International average daily production volumes came within guidance at 242 Mboed.

OxyChem
Chemical pre-tax income of $407 million for the third quarter of 2021 exceeded guidance by $17 million. Compared to prior quarter pre-tax income of $312 million, the increase in the third quarter of 2021 income was driven primarily by stronger realized pricing across most product lines along with improved vinyl sales volumes as planned vinyl plant maintenance restricted second quarter production rates. Higher prices for raw materials partially offset the improved income.

Midstream and Marketing
Midstream and marketing's third quarter pre-tax income, excluding WES equity income, exceeded guidance. WES equity income for the third quarter of 2021 was $120 million. Midstream and marketing pre-tax income for the third quarter of 2021 was $20 million, compared to a pre-tax loss of $30 million in the prior quarter. Third quarter income included pre-tax net derivative mark-to-market losses of $11 million. Excluding items affecting comparability, third quarter of 2021 midstream and marketing income decreased compared to the prior quarter, primarily due to lower margins on waterborne sales in marketing, partially offset by higher NGL prices in domestic gas processing, higher sulfur sales volumes and prices at Al Hosn Gas, and higher production and fewer planned outages in power generation.

KeyFacts Energy: Occidental US country profile

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