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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 19, 2000
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 announced net income of $271 million ($.74
per share) for the first quarter of 2000, compared with a net loss of $70
million ($.21 per share) for the first quarter of 1999.
Earnings before special items were $264 million for the first quarter of
2000, compared with a loss before special items of $68 million for the first
quarter of 1999. Sales were $2.5 billion for the first quarter of 2000, compared
with $1.3 billion for the same period in 1999.
Oil and Gas
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Oil and gas divisional earnings were $394 million for the first quarter of
2000, compared with $65 million for the first quarter of 1999, primarily as a
result of higher worldwide crude oil and natural gas prices. Operating and
overhead costs were also lower in 2000. However, lower production volumes,
mainly resulting from the sale of our producing assets in Peru, partially offset
the overall improvement in earnings from the prior year.
Chemicals
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Chemical divisional earnings were $143 million for the first quarter of
2000, compared with $12 million for the first quarter of 1999, primarily due to
higher prices and higher sales volume for VCM, EDC, PVC resins and chlorine.
Partially offsetting these increases were higher raw material costs.
Other
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Interest expense, net for the first quarter 2000 was $99 million, compared
with $116 million for the first quarter of 1999, primarily due to the retirement
of approximately $1 billion in debt in the second half of 1999.
Corporate other included insurance dividends of $11 million and $18 million
for the first quarter of 2000 and 1999, respectively.
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SUMMARY OF DIVISIONAL NET SALES AND EARNINGS
(Millions, except per-share amounts)
<TABLE>
<CAPTION>
First Quarter
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Periods Ended March 31 2000 1999
=========================================== ======= =======
<S> <C> <C>
DIVISIONAL NET SALES
Oil and gas $ 1,527 $ 746
Chemical 981 598
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Net sales $ 2,508 $ 1,344
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DIVISIONAL EARNINGS
Oil and gas $ 394 $ 65
Chemical 143 12
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537 77
UNALLOCATED CORPORATE ITEMS
Interest expense, net (99) (116)
Income taxes (a) (150) 3
Trust preferred distributions & other (17) (14)
Other -- (7)
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INCOME (LOSS) BEFORE EFFECT OF
CHANGES IN ACCOUNTING PRINCIPLES 271 (57)
Cumulative effect of changes in accounting
principles, net (b) -- (13)
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NET INCOME (LOSS) 271 (70)
Effect of repurchase of Trust
Preferred Securities (c) 1 --
Preferred dividends -- (4)
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EARNINGS (LOSS) APPLICABLE TO COMMON STOCK $ 272 $ (74)
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BASIC AND DILUTED EARNINGS (LOSS) PER
COMMON SHARE
Income (loss) before effect of
changes in accounting principles $ .74 $ (.17)
Cumulative effect of changes in
accounting principles, net (b) -- (.04)
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$ .74 $ (.21)
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AVERAGE BASIC COMMON SHARES OUTSTANDING 368.1 347.8
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</TABLE>
(a) Includes an offset for credits in lieu of U.S. federal income taxes
allocated to the divisions. Divisional earnings have benefited from credits
allocated by $1 million and $4 million at oil and gas and chemical,
respectively, in the first quarter of 2000 and by $2 million and $4 million
at oil and gas and chemical, respectively, in the first quarter of 1999.
(b) In 1999, reflects the adoption of SOP 98-5 "Reporting on the Costs of
Start-Up Activities" and EITF 98-10 "Accounting for Contracts Involved in
Energy Trading and Risk Management Activities".
(c) The first quarter of 2000 includes a $1 million gain, net of tax, related
to the repurchase of 298,373 shares of 8.16 percent Trust Preferred
Securities.
2
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<TABLE>
<CAPTION>
SUMMARY OF OPERATING STATISTICS
First Quarter
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Periods Ended March 31 2000 1999
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<S> <C> <C>
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude oil and condensate (thousands of barrels) 61 66
Natural gas liquids (thousands of barrels) 9 9
Natural gas (millions of cubic feet) 630 647
Other Western Hemisphere
Crude oil and condensate (thousands of barrels) 52 102
Eastern Hemisphere
Crude oil and condensate (thousands of barrels) 117 144
Natural gas (millions of cubic feet) 50 53
CAPITAL EXPENDITURES (millions) $ 122 $ 132
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DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS (millions) $ 185 $ 197
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</TABLE>
3
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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 20, 2000 S. P. Dominick, Jr.
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S. P. Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)
