Occidental Petroleum Announces First Quarter Net Income

LOS ANGELES, April 23, 2009 (GLOBE NEWSWIRE) -- Occidental Petroleum Corporation (NYSE:OXY) announced that its net income for the first quarter of 2009 was $368 million ($0.45 per diluted share). Results for the quarter were impacted by certain non-core charges. Core results for the first quarter of 2009 were $407 million ($0.50 per diluted share).

In announcing the results, Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, "In the first quarter, Occidental achieved a nearly eight percent growth in year-over-year oil and gas production. In addition, we have made significant progress in our continuing cost reduction efforts and we will continue to invest in the long-term growth of the Company. I am pleased with our effectiveness in adjusting to the ongoing volatile market conditions."

Oil and Gas

Oil and gas segment earnings were $545 million for the first quarter of 2009. After excluding rig termination costs of $8 million, the first quarter 2009 core results were $553 million, compared with $2.9 billion for the same period in 2008. The $2.3 billion decrease in the first quarter 2009 results reflected lower crude oil and natural gas prices and higher DD&A rates.

For the first quarter of 2009, daily oil and gas sales volumes averaged 654,000 barrels of oil equivalent (BOE), compared with 607,000 BOE per day in the first quarter of 2008. Volume increases were 22,000 BOE per day in domestic operations, largely in the Rockies and California, 15,000 BOE per day in Oman, and 10,000 BOE per day in Argentina.

Oxy's realized price for worldwide crude oil was $39.29 per barrel for the first quarter of 2009, compared with $86.75 per barrel for the first quarter of 2008. Domestic realized gas prices decreased from $8.15 per thousand cubic feet (MCF) in the first quarter of 2008 to $3.54 per MCF for the first quarter of 2009.

Oil and gas cash production costs, including taxes - other than on income, declined from $14.75 per BOE for the total year 2008 to $12.19 per BOE for the first quarter of 2009.

Chemicals

Chemical segment earnings for the first quarter of 2009 were $169 million, compared with $179 million for the same period in 2008. The first quarter of 2009 results reflect higher caustic soda margins, offset by lower volumes in chlorine, caustic soda and polyvinyl chloride.

Midstream, Marketing and Other

Midstream segment earnings were $14 million for the first quarter of 2009, compared with $123 million for the first quarter of 2008. The earnings decline for the first quarter of 2009 reflects significantly lower NGL prices in the gas processing business and negative mark to market adjustments in crude oil marketing.

About Oxy

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.

Forward-Looking Statements

Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; exploration risks, such as drilling of unsuccessful wells; operational interruptions and changes in tax rates. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.

For further analysis of Occidental's quarterly performance, please visit the web site: www.oxy.com


 SUMMARY OF SEGMENT NET SALES AND EARNINGS

                                                First Quarter
 (In millions, except                        ----------------
  per-share amounts)                            2009     2008
 ==========================================  =======  =======
 SEGMENT NET SALES
  Oil and Gas                                $ 2,137  $ 4,518
  Chemical                                       792    1,267
  Midstream, Marketing and Other                 228      405
  Eliminations                                   (84)    (170)
                                             -------  -------
  Net sales                                  $ 3,073  $ 6,020
 ==========================================  =======  =======
 SEGMENT EARNINGS
  Oil and Gas (a),(b)                        $   545  $ 2,888
  Chemical                                       169      179
  Midstream, Marketing and Other                  14      123
                                             -------  -------
                                                 728    3,190
 Unallocated Corporate Items
  Interest expense, net                          (20)      --
  Income taxes                                  (241)  (1,294)
  Other (c)                                      (96)     (77)
                                             -------  -------

 Income from Continuing Operations (a)           371    1,819
  Discontinued operations, net                    (3)      27
                                             -------  -------
 NET INCOME (a)                              $   368  $ 1,846
                                             =======  =======
 BASIC EARNINGS PER COMMON SHARE
  Income from continuing operations          $  0.45  $  2.21
  Discontinued operations, net                    --     0.03
                                             -------  -------
                                             $  0.45  $  2.24
                                             =======  =======
 DILUTED EARNINGS PER COMMON SHARE (d)
  Income from continuing operations          $  0.45  $  2.19
  Discontinued operations, net                    --     0.03
                                             -------  -------
                                             $  0.45  $  2.22
                                             =======  =======
 AVERAGE BASIC COMMON SHARES OUTSTANDING (d)
  BASIC                                        811.8    825.5
  DILUTED                                      814.4    829.8
 ==========================================  =======  =======

 (a) Net Income - Net income and income from continuing operations
     represent amounts attributable to Common Stock, after deducting
     non-controlling interest of $9 million and $29 million for the
     first quarter 2009 and 2008, respectively.  Oil and gas segment
     earnings are also presented net of these non-controlling
     interest amounts.
 (b) Oil and Gas - The first quarter of 2009 includes an $8 million
     pretax charge for the terminations of rig contracts.
 (c) Unallocated Corporate Item - Other - The first quarter of
     2009 includes a pretax charge of $32 million of severance
     accruals and $15 million for railcar leases.
 (d) Earnings per Share - The 2008 earnings per share amounts reflect
     the adoption on January 1, 2009 of FSP No. EITF 03-06-1 dealing
     with participating securities.


 SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE

                                                First Quarter
                                             ----------------
 ($ millions)                                   2009     2008
 ==========================================  =======  =======
 CAPITAL EXPENDITURES                        $ 1,071  $   833
                                             =======  =======
 DEPRECIATION, DEPLETION AND
   AMORTIZATION OF ASSETS                    $   786  $   653
 ==========================================  =======  =======



 ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS

 Income/(Expense)                               First Quarter
                                             ----------------
 ($ millions)                                   2009     2008
 ==========================================  =======  =======
 FOREIGN EXCHANGE GAINS AND
  (LOSSES)*                                  $    37  $    (1)
 ==========================================  =======  =======
 *Amounts shown after tax.

 SUMMARY OF OPERATING STATISTICS

                                                First Quarter
                                             ----------------
                                                2009     2008
 ==========================================  =======  =======
 NET OIL, GAS AND LIQUIDS
   SALES VOLUMES PER DAY
 United States
  Crude Oil and Liquids (MBBL)
    California                                    97       87
    Permian                                      169      170
    Mid-Continent and Rockies                     10        4
                                             -------  -------
      Total                                      276      261
  Natural Gas (MMCF)
    California                                   216      245
    Permian                                      194      177
    Mid-Continent and Rockies                    210      158
                                             -------  -------
      Total                                      620      580
 Latin America
  Crude Oil (MBBL)
    Argentina                                     45       37
    Colombia                                      47       42
                                             -------  -------
      Total                                       92       79
 Natural Gas (MMCF)
    Argentina                                     33       22
    Bolivia                                       15       21
                                             -------  -------
      Total                                       48       43
 Middle East/North Africa
  Crude Oil and Liquids (MBBL)
    Oman                                          35       20
    Dolphin                                       20       22
    Qatar                                         47       46
    Yemen                                         31       25
    Libya                                          5       17
                                             -------  -------
      Total                                      138      130
  Natural Gas (MMCF)
    Oman                                          24       23
    Dolphin                                      205      200
                                             -------  -------
    Total                                        229      223
 Barrels of Oil Equivalent (MBOE)
  Subtotal consolidated subsidiaries             656      611
    Colombia non-controlled interest              (6)      (6)
    Yemen-Occidental net interest                  4        2
                                             -------  -------
 Total Worldwide Sales Volumes(MBOE)             654      607
 ==========================================  =======  =======

 SUMMARY OF OPERATING STATISTICS - PRODUCTION

                                                First Quarter
                                             ----------------
                                                2009     2008
 ==========================================  =======  =======
 NET OIL, GAS AND LIQUIDS
   PRODUCTION PER DAY
 United States
  Crude Oil and Liquids (MBBL)                   276      261
    Natural Gas (MMCF)                           620      580

 Latin America
  Crude Oil (MBBL)
    Argentina                                     39       36
    Colombia                                      48       42
                                             -------  -------
      Total                                       87       78
 Natural Gas (MMCF)                               48       43

 Middle East/North Africa
  Crude Oil and Liquids (MBBL)
    Oman                                          34       20
    Dolphin                                       21       22
    Qatar                                         51       46
    Yemen                                         28       25
    Libya                                          8       22
                                             -------  -------
      Total                                      142      135
  Natural Gas (MMCF)                             229      223

 Barrels of Oil Equivalent (MBOE)
  Subtotal consolidated subsidiaries             655      615
    Colombia non-controlled interest              (6)      (6)
    Yemen-Occidental net interest                  3        2
                                             -------  -------
 Total Worldwide Production - (MBOE)             652      611
 ==========================================  =======  =======

SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS

Occidental's results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called "core results," which excludes those items. This non-GAAP measure is not meant to disassociate those items from management's performance, but rather is meant to provide useful information to investors interested in comparing Occidental's earnings performance between periods. Reported earnings are considered representative of management's performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.



 SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)

                                                        First Quarter
                                   ----------------------------------
 ($ millions, except                        Diluted           Diluted
  per-share amounts)                  2009      EPS     2008      EPS
 ================================  =======  =======  =======  =======
 TOTAL REPORTED EARNINGS*          $   368  $  0.45  $ 1,846  $  2.22
                                   =======  =======  =======  =======
 Oil and Gas
  Segment Earnings*                $   545           $ 2,888
  Add:
    Rig terminations                     8                --
                                   -------           -------
  Segment Core Results                 553             2,888
                                   -------           -------
 Chemicals
  Segment Earnings                     169               179
  Add:
    No significant items affecting
      earnings                          --                --
                                   -------           -------
  Segment Core Results                 169               179
                                   -------           -------
 Midstream, marketing and other
  Segment Earnings                      14               123
  Add:
    No significant items affecting
      earnings                          --                --
                                   -------           -------
  Segment Core Results                  14               123
                                   -------           -------
 Total Segment Core Results            736             3,190
                                   -------           -------
 Corporate
  Corporate Results --
    Non Segment**                     (360)           (1,344)
  Add:
    Severance accrual                   32                --
    Railcar leases                      15                --
    Tax effect of pre-tax
      adjustments                      (19)               --
    Discontinued operations, net***      3               (27)
                                   -------           -------
  Corporate Core Results --
    Non Segment                       (329)           (1,371)
                                   -------           -------
 TOTAL CORE RESULTS                $   407  $  0.50  $ 1,819  $  2.19
 ===============================   =======  =======  =======  =======
   *Represents amounts attributable to common stock, after
    deducting non-controlling interest of $9 million and $29 million
    for the first quarter 2009 and 2008, respectively.
  **Interest expense, income taxes, G&A expense and other, and non-
    core items.
 ***Amounts shown after tax.
CONTACT:  Occidental Petroleum Corporation
          Media
          Richard S. Kline 
            310-443-6249
            richard_kline@oxy.com
          Investors
          Chris Stavros
            212-603-8184
            chris_stavros@oxy.com

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