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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) JULY 20, 1995
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-9210 95-4035997
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
10889 WILSHIRE BOULEVARD, LOS ANGELES, CALIFORNIA 90024
(Address of principal executive offices) (ZIP code)
Registrant's telephone number, including area code:
(310) 208-8800
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Item 5. Other Events
Occidental Petroleum Corporation reported on July
20, 1995 net income of $187 million ($.51 per share) for the
second quarter of 1995, compared with a net loss of $19
million ($.12 per share) for the second quarter of 1994.
The 1995 income was negatively impacted by pretax charges of
$109 million for settlement of litigation. Sales were $2.7
billion for the second quarter of 1995, compared with $2.2
billion for the same period in 1994.
Oil and gas divisional earnings before special
items were $79 million for the second quarter of 1995,
compared with $25 million for 1994. The 1995 results, after
the previously mentioned charges of $109 million for
litigation, were a loss of $30 million. The increase in
1995 operating earnings primarily resulted from higher
worldwide crude oil production and prices, partially offset
by lower domestic natural gas prices.
Natural gas transmission divisional earnings for
the second quarter of 1995 were $62 million, compared with
earnings before special items of $45 million in 1994. The
1994 earnings, after a benefit of $9 million from a
reduction of LIFO inventory, were $54 million. The
improvement in 1995 operating earnings resulted primarily
from higher transport margins.
Chemical divisional earnings for the second
quarter of 1995 were $354 million, compared with $65 million
for 1994. The increase in 1995 earnings resulted primarily
from higher profit margins for PVC, caustic soda and
petrochemicals. Included in the 1995 results is a $40
million pretax gain related to the sale of the polyvinyl
chloride facility at Addis, Louisiana.
Unallocated income taxes were $73 million in 1995,
compared with $14 million in 1994. The $59 million increase
in 1995 resulted primarily from the higher divisional
earnings. Unallocated corporate other items were income of
$7 million in the second quarter of 1995, compared with
expense of $7 million in 1994. The improvement in these
items in 1995 primarily reflected higher equity earnings
from chemical and oil and gas investments.
For the first six months of 1995, Occidental's net
income totaled $365 million or $1.00 per share, compared
with a net loss of $59 million for the first six months of
1994. Sales were $5.4 billion for the first six months of
1995, compared with $4.3 billion for the same period in
1994.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
<TABLE>
<CAPTION>
Second Quarter Six Months
----------------- -----------------
Periods Ended June 30 1995 1994 1995 1994
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<S> <C> <C> <C> <C>
DIVISIONAL NET SALES
Oil and gas $ 756 $ 561 $ 1,461 $ 1,045
Natural gas transmission 468 479 1,006 1,113
Chemical 1,456 1,122 2,928 2,111
Other (1) - (2) (1)
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Net sales $ 2,679 $ 2,162 $ 5,393 $ 4,268
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DIVISIONAL EARNINGS
Oil and gas $ (30) $ 25 $ 30 $ 29
Natural gas transmission 62 54 137 130
Chemical 354 65 661 87
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386 144 828 246
UNALLOCATED CORPORATE ITEMS
Interest expense, net (133) (142) (277) (285)
Income taxes (a) (73) (14) (198) (5)
Other 7 (7) 12 (15)
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NET INCOME(LOSS) 187 (19) 365 (59)
Preferred dividends (23) (19) (46) (36)
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Earnings(loss) applicable to
common stock $ 164 $ (38) $ 319 $ (95)
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EARNINGS(LOSS) PER COMMON SHARE
Primary $ .51 $ (.12) $ 1.00 $ (.31)
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Fully diluted $ .49 $ (.12) $ .96 $ (.31)
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AVERAGE COMMON SHARES OUTSTANDING 318.2 311.9 317.8 309.0
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(a) Includes an adjustment to corporate taxes, as quarterly consolidated taxes
are computed in accordance with APB Opinion No. 28 and hence are based on
projections of total-year income and taxes. Also, includes an offset for
charges and credits in lieu of U.S. federal income taxes allocated to the
divisions. Divisional earnings in the second quarter of 1995 have
benefited from credits allocated by $4 million, $12 million and $7 million
at oil and gas, natural gas transmission and chemical, respectively.
Divisional earnings in the second quarter of 1994 have benefited from
credits allocated by $4 million, $12 million and $8 million at oil and
gas, natural gas transmission and chemical, respectively.
</TABLE>
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SUMMARY OF OPERATING STATISTICS
<TABLE>
<CAPTION>
Second Quarter Six Months
----------------- -----------------
Periods Ended June 30 1995 1994 1995 1994
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<S> <C> <C> <C> <C>
NET OIL, GAS AND LIQUIDS
PRODUCTION PER DAY
United States
Crude oil and condensate
(thousands of barrels) 66 60 66 59
Natural gas liquids
(thousands of barrels) 12 5 11 5
Natural gas
(millions of cubic feet) 632 657 638 629
Other Western Hemisphere
Crude oil and condensate
(thousands of barrels) 130 115 126 119
Eastern Hemisphere and other
Crude oil and condensate
(thousands of barrels) 89 53 87 54
Natural gas
(millions of cubic feet) 118 58 113 58
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 134 127 308 299
Transportation
(billions of cubic feet) 353 352 768 813
CAPITAL EXPENDITURES (millions) $ 220 $ 177 $ 380 $ 513
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 235 $ 224 $ 473 $ 431
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</TABLE>
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
OCCIDENTAL PETROLEUM CORPORATION
(Registrant)
DATE: July 20, 1995 S. P. Dominick, Jr.
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S. P. Dominick, Jr., Vice
President and Controller
(Chief Accounting and Duly
Authorized Officer)
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