• Anadarko shareholder vote scheduled for August 8; acquisition anticipated to close promptly thereafter 
• Formed strategic partnership with Ecopetrol to develop Midland Basin acreage for proceeds of $750 million in cash plus $750 million of carried capital
• Hedged 2020 oil price risk with 300,000 barrels of oil per day of costless collars
• Announced dividend increase for the 17th consecutive year 
• Returned $600 million to shareholders, representing approximately one third of operating cash flow 
• Achieved pre-tax income guidance for both OxyChem and Midstream
• Oil and gas operating costs per BOE decreased 5 percent quarter-over-quarter
• Global production of 741,000 BOE per day exceeded the high end of guidance, with Permian Resources up 44 percent year-over-year

Occidental Petroleum Corporation has announced net and core income for the second quarter of 2019 of $635 million, or $0.84 per diluted share, and $729 million, or $0.97 per diluted share, respectively. Net and core income for the first quarter of 2019 were $631 million, or $0.84 per diluted share. Second quarter pre-tax non-core items of $107 million include Anadarko acquisition-related transaction and debt financing fees. 

“We are pleased to deliver another quarter of strong operational and financial results. The strength of our integrated business model and confidence in our future performance enabled us to increase our dividend for the 17th consecutive year,” said President and Chief Executive Officer Vicki Hollub. “As we move toward closing the acquisition of Anadarko and combining our two companies into an innovative and sustainable energy leader, we remain well positioned to drive profitable growth and return excess cash to our shareholders. Our strategic partnership with Ecopetrol is a further example of our commitment to enhancing our value proposition.” 

QUARTERLY RESULTS 

Oil and Gas 
Oil and gas pre-tax income for the second quarter of 2019 was $726 million, compared to $484 million for the prior quarter. The increase in second quarter core income reflected higher crude oil prices and sales volumes, partially offset by a negative non-cash mark-to-market adjustment on carbon dioxide purchase contracts along with lower domestic gas prices. 

Total average daily production volumes exceeded guidance at 741,000 barrels of oil equivalent (BOE) for the second quarter of 2019, compared to 719,000 BOE for the first quarter of 2019. Permian Resources average daily production volumes exceeded guidance at 289,000 BOE for the second quarter of 2019, an increase of 11 percent from the prior quarter due to improved well performance and development activity. Year-over-year, Permian Resources production for the second quarter of 2019 increased by 44 percent. International average daily production volumes also exceeded guidance at 295,000 BOE for the second quarter of 2019. Compared to 298,000 BOE for the first quarter of 2019, production in the second quarter of 2019 was lower due to production sharing impacts in Oman. 

Total cash operating costs per BOE for the second quarter of 2019 of $10.97 per BOE decreased by 5 percent, compared to the prior quarter. Compared to total year 2018, total cash operating costs per BOE decreased by over 8 percent due to improved efficiencies in downhole maintenance and lower energy costs. 

For the second quarter of 2019, average WTI and Brent marker prices were $59.82 per barrel and $68.32 per barrel, respectively. Average worldwide realized crude oil prices increased by 12 percent from the prior quarter to $58.91 per barrel in the second quarter of 2019. Average worldwide realized NGL prices decreased by 1 percent from the prior quarter to $18.00 per BOE in the second quarter of 2019. Average domestic realized gas prices decreased by 83 percent from the prior quarter to $0.23 per Mcf in the second quarter of 2019. 

Chemical 
Chemical pre-tax income for the second quarter of 2019 was $208 million, compared to $265 million for the first quarter of 2019. The decrease in income reflected lower realized caustic soda prices in the second quarter of 2019, along with fees received under a pipeline easement agreement in the first quarter of 2019, slightly offset by favorable feedstock costs. 

Midstream and Marketing  
Midstream and marketing pre-tax income for the second quarter of 2019 was $331 million, compared to $279 million for the first quarter of 2019. The increase in income in the second quarter of 2019 reflected higher marketing results as the first quarter had significant non-cash mark-to-market losses, as well as higher pipeline income from Dolphin Pipeline, which had completed its first quarter planned maintenance. The increase was partially offset by lower gas plant income due to planned maintenance at certain domestic gas plants.