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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) APRIL 17, 1997
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
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Occidental Petroleum Corporation reported on April
17, 1997 net income of $179 million ($.47 per share) for the
first quarter of 1997, compared with net income of $134
million ($.35 per share) for the first quarter of 1996. The
first quarter of 1996 included an after-tax $30 million
extraordinary loss resulting from the early retirement of high-
coupon debt. Sales were $2.8 billion for the first quarter of
1997, compared with $2.5 billion for the same period in 1996.
Oil and gas divisional earnings were $228 million
for the first quarter of 1997, compared with $161 million for
1996. The increase in 1997 earnings resulted primarily from
higher worldwide crude oil and natural gas prices and cost
benefits from the reorganization, partially offset by higher
taxes, depreciation and exploration expense.
Natural gas transmission divisional earnings for the
first quarter of 1997 were $91 million, compared with $121
million for 1996. The decline in 1997 earnings resulted
primarily from lower margins on sales and transportation,
partially offset by reduced costs.
Chemical divisional earnings for the first quarter
of 1997 were $92 million, compared with $118 million for 1996.
The decline in 1997 earnings resulted primarily from lower
margins, resulting from higher feedstock and raw material
costs and the unfavorable impact due to an outage at the
Bayport, Texas facility.
Interest expense in the first quarter of 1997 was
$101 million, compared with $130 million for the first quarter
of 1996. The decline in interest expense is primarily
attributable both to lower average debt levels as a result of
early debt retirements in 1996 and to lower average interest
rates.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
First Quarter
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Periods Ended March 31 1997 1996
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DIVISIONAL NET SALES
Oil and gas $ 842 $ 754
Natural gas transmission 854 702
Chemical 1,075 1,068
Other (10) (2)
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$ 2,761 $ 2,522
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DIVISIONAL EARNINGS
Oil and gas $ 228 $ 161
Natural gas transmission 91 121
Chemical 92 118
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411 400
UNALLOCATED CORPORATE ITEMS
Interest expense, net (101) (130)
Income taxes (a) (125) (99)
Other (6) (7)
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INCOME BEFORE EXTRAORDINARY ITEMS 179 164
Extraordinary gain(loss), net - (30)
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NET INCOME 179 134
Preferred dividends (23) (23)
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EARNINGS APPLICABLE TO COMMON STOCK $ 156 $ 111
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PRIMARY EARNINGS PER COMMON SHARE
Income before extraordinary items $ .47 $ .44
Extraordinary gain(loss), net - (.09)
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PRIMARY EARNINGS(LOSS) PER COMMON SHARE $ .47 $ .35
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FULLY DILUTED EARNINGS PER COMMON SHARE
Income before extraordinary items $ .46 $ .43
Extraordinary gain(loss), net - (.09)
_______ _______
FULLY DILUTED EARNINGS(LOSS) PER COMMON SHARE $ .46 $ .34
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AVERAGE COMMON SHARES OUTSTANDING 330.1 319.4
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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 credits in lieu of U.S. federal income taxes allocated to
the divisions. Divisional earnings in the first quarter of 1997 and
1996 have benefited from credits allocated by $4 million, $12 million
and $6 million at oil and gas, natural gas transmission and chemical,
respectively.
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SUMMARY OF OPERATING STATISTICS
First Quarter
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Periods Ended March 31 1997 1996
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NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude oil and condensate (thousands of barrels) 58 58
Natural gas liquids (thousands of barrels) 12 11
Natural gas (millions of cubic feet) 593 615
Other Western Hemisphere
Crude oil and condensate (thousands of barrels) 122 128
Eastern Hemisphere
Crude oil and condensate (thousands of barrels) 94 103
Natural gas (millions of cubic feet) 126 135
NATURAL GAS TRANSMISSION DELIVERIES
Sales (billions of cubic feet) 210 193
Transportation (billions of cubic feet) 442 519
CAPITAL EXPENDITURES (millions) $ 276 $ 233
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 242 $ 224
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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: April 18, 1997 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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