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Occidental Petrl. (OCP)

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Thursday 26 October, 2000

Occidental Petrl.

3rd Quarter & 9 Mths Results

Occidental Petroleum Corp
24 October 2000


Occidental Announces 2000 Third Quarter Results

LOS ANGELES -- Occidental Petroleum Corporation (NYSE: OXY) announced net income
of $402 million ($1.09 per share) for the third quarter of 2000, compared with
$126 million ($0.35 per share) for the corresponding period of 1999.

Earnings before special items for the quarter were $370 million ($1.00 per
share) compared with earnings before special items of $125 million ($0.35 per
share) for the third quarter of 1999.  Sales for the third quarter of 2000
increased to $3.8 billion from $2.1 billion in 1999.

In announcing the results, Dr. Ray R. Irani, chairman and chief executive
officer, emphasized Occidental's commitment to debt reduction.  'When we
announced our intention to purchase Altura Energy, we made a commitment to
reduce our total debt by $2 billion by the end of this year from the $9 billion
pro-forma level reached in April of this year as a result of purchasing Altura. 
The reduction is being made through a combination of asset sales and cash flow',
he said.  'Thanks to strong oil and gas prices and production from the Altura
properties, we have reached that goal three months ahead of schedule.  The total
debt at the end of the third quarter of $7.06 billion includes $2.08 billion of
the Altura non-recourse debt.  The ratio of debt to total capitalization, which
rose with the Altura financing, has declined dramatically and is now essentially
unchanged from the beginning of the year.  Debt reduction remains our highest
priority and we will continue to use our strong cash flow and the proceeds from
asset sales to achieve additional reductions in the fourth quarter.'

Results for the quarter included after-tax gains of $39 million from the
partial-interest sale of the subsidiary that owned Occidental's Gulf of Mexico
shelf assets; after-tax income of $41 million from the receipt of contingency
payments related to a prior year sale of an oil and gas subsidiary in the Dutch
North Sea; and a $1 million extraordinary gain resulting from the early
extinguishment of debt.  The results also included $49 million of after-tax
charges related to the write-down of various oil and gas assets, real estate and
investments.

Oil and Gas

The oil and gas division earned $690 million before special items, compared with
$279 million for the third quarter of 1999.  The improvement is primarily the
result of higher worldwide crude oil and natural gas prices combined with
increased domestic oil production volumes.  The net increase in domestic
production volumes, resulting from the acquisitions of Altura and THUMS in the
second quarter of 2000, more than offsets lower international production.  The
overall earnings improvement was partially offset by higher exploration expense.

Oil and gas earnings after special items were $696 million for the third quarter
of 2000, compared with $280 million for the third quarter of 1999.  The 2000
results included $80 million of net gains from the previously described asset
sale and the receipt of contingency payments, partially offset by charges of $74
million, on a pre-tax basis, to write down various oil and gas assets, real
estate and investments.

Chemicals

The chemical division earned $47 million for the third quarter of 2000, compared
with $44 million for the third quarter of 1999.  Since the second quarter of
2000, chemical earnings have declined primarily due to reduced sales prices and
volumes in EDC and PVC and higher energy and feedstock costs.

For the first nine months of 2000, Occidental's net income was $1.2 billion
($3.36 per share), compared with $65 million ($0.17 per share) for the first
nine months of 1999.  Net income for the nine months before special items was
$977 million ($2.65 per share), compared with net income of $61 million ($0.15
per share) for 1999.  Sales increased from $5.1 billion in the nine months of
1999 to $9.4 billion for the same period of 2000.

Contacts:  Howard Collins (media)
310-443-6523

Kenneth J. Huffman (investors)
212-603-8183

On the Web: www.oxy.com

A conference call regarding these financial results will be held today at 11:30
a.m. EDT and may be accessed by calling 1-800-275-3210.

 

Forward-looking statements and estimates regarding exploration and production
activities, oil, gas and commodity chemical prices, operating costs and their
related earnings effects in this release are based on assumptions concerning
market, competitive, regulatory, environmental, operational and other
conditions.  Actual results could differ materially as a result of factors
discussed in Occidental's Annual Report on Form 10-K.


SUMMARY OF DIVISIONAL NET SALES AND EARNINGS

(Millions, except per-share amounts)

                                      Third Quarter       Nine Months
Periods Ended September 30            2000     1999     2000     1999
DIVISIONAL NET SALES

   Oil and gas                     $ 2,965  $ 1,265  $ 6,614  $ 2,955
   Chemical                            840      848    2,827    2,149
   Net sales                       $ 3,805  $ 2,113  $ 9,441  $ 5,104


DIVISIONAL EARNINGS (LOSS)

  Oil and gas                      $   696  $   280  $ 1,647  $   511
  Chemical                              47       44      224       89
                                       743      324    1,871      600

Unallocated Corporate Items

  Interest expense, net (a)            (97)    (118)    (300)    (357)
  Income taxes (b)                    (169)     (41)    (668)     (65)
  Trust preferred distributions
    & other                            (17)     (16)     (50)     (45)
  Other (c)                            (59)     (23)     383      (52)

Income Before Extraordinary
  Items and Effect of Changes
  in Accounting Principles             401      126    1,236       81
  Extraordinary gain/(loss), net         1        -        1       (3)
  Cumulative effect of changes
    in accounting principles, 
    net                                  -        -        -      (13)
 
Net Income                             402      126    1,237       65

Effect of repurchase of Trust

  Preferred Securities                   -        -        1       -
Preferred dividends                      -        -        -       (7)

EARNINGS APPLICABLE TO COMMON

   STOCK                           $   402  $   126  $ 1,238  $    58

BASIC AND DILUTED EARNINGS
  PER COMMON SHARE
  Income before extraordinary
    items and effect of changes
    in accounting principles       $  1.09  $   .35  $  3.36  $   .22
  Extraordinary gain/(loss), net         -        -        -     (.01)
  Cumulative effect of changes
    in accounting principles,
    net                                  -        -        -     (.04)

                                   $  1.09  $   .35  $  3.36  $   .17


AVERAGE BASIC COMMON SHARES
  OUTSTANDING                        369.2    357.6    368.7    351.3


See footnotes on following page.

(a)       The third quarter and nine months year-to-date 2000 includes $38      
         million and $68 million, respectively, interest income on notes        
        receivable from Altura partners.

(b)       Includes an offset for charges and credits in lieu of U.S. federal    
         income taxes allocated to the divisions.  Oil and Gas divisional       
        earnings have been impacted by charges of $42 million and $1 million    
       in the third quarters of 2000 and 1999, respectively.  The Oil and       
      Gas third quarter of 2000 amount includes the tax effects from the        
     partial-interest sale of the subsidiary which owned the Gulf of            
    Mexico shelf assets and receipt of contingency payments related to a        
   prior year sale of a Dutch North Sea subsidiary.  Chemical divisional        
  earnings have been impacted by credits of $4 million in the third             
 quarters of 2000 and 1999, respectively.

(c)       The third quarter and nine months year-to-date 2000 includes          
         preferred distributions to the Occidental Permian partners of $38      
        million and $68 million, respectively.  This is offset by the           
       interest income discussed in (a) above.


SUMMARY OF OPERATING STATISTICS

                                      Third Quarter       Nine Months
Periods Ended September 30            2000     1999     2000     1999

NET OIL, GAS AND LIQUIDS
   PRODUCTION PER DAY

United States
  Liquids (MBBL)
    California                          74       50       68       52
    Permian                            136       14       89       14
    US Other                             -        7        2        7

      Total                            210       71      159       73

  Natural Gas (MMCF)
    California                         305      287      302      282
    Hugoton                            178      174      168      175
    Permian                            161       55      118       56
    US Other                            43      157       89      151

      Total                            687      673      677      664


Other Western Hemisphere
  Crude oil (MBBL)
    Colombia                            21       40       33       45
    Ecuador                             21       15       19       16
    Peru                                 -       40        -       41

      Total                             42       95       52      102

 
Eastern Hemisphere
  Crude oil (MBBL)
    Oman                                 8       15        9       15
    Pakistan                             8        5        6        6
    Qatar                               48       54       50       61
    Russia                              28       28       27       27
    Yemen                               32       26       32       32
  
      Total                            124      128      124      141

 
Natural Gas (MMCF)
    Bangladesh                           -        4        -       11
    Pakistan                            47       47       49       42

      Total                             47       51       49       53

 
Barrels of Oil Equivalent (MBOE)       499      414      456      436
 
CAPITAL EXPENDITURES (millions)    $   275  $   120  $   608  $   383 


DEPRECIATION, DEPLETION AND
 AMORTIZATION OF ASSETS (millions) $   268  $   198  $   687  $   598


                         OCCIDENTAL PETROLEUM 
                          2000 THIRD QUARTER
                        Net Income (Loss) ($Millions)

                          Reported      Adjustments          Earnings
                           Income                            Before
                                                             Special Items

Oil & Gas                  $  696     (39) Gulf of Mexico-VPP   $ 690
                                      (41) TransCanada buyout
                                       74  Asset writedowns
Chemical                       47                                47
Corporate
  Interest-Permian Non-
    Recourse debt             (44)                              (44)
  Interest - all others       (91)                              (91)
  Taxes                      (169)    (25) Tax effect of       (194)
                                           adjustments
  Trust Pfd Distributions
    & Other                   (17)                              (17)
  Other                       (21)                              (21)
Net Income                 $  401   $ (31)                   $  370
Extraordinary Items             1      (1) Early debt            -
                                           retirement
                           $  402   $ (32)                   $  370

Basic Earnings Per Share   $ 1.09                            $ 1.00

                                                                                
                                OCCIDENTAL PETROLEUM 
                                   1999 Third Quarter
                              Net Income (Loss) ($Millions)



                             Reported      Adjustments          Earnings
                             Income                             Before
                                                                Special Items
 
Oil & Gas                   $ 280        10  Relocation        $  279  
                                        (11) Contingency
                                             Pymt.                 
Chemical                       44                                  44
Corporate
 Interest                    (118)                               (118)
 Taxes                        (41)                                (41)
 Trust Pfd Distributions      (16)                                (16)
   & Other
 Other                        (23)                                (23)
Net Income                  $ 126    $  (1)                    $  125       

Basic Earnings Per Share    $0.35                               $0.35

                                OCCIDENTAL PETROLEUM                            
                              2000 First Nine Months
                              Net Income (Loss)($Millions)

                             Reported      Adjustments          Earnings
                             Income                             Before
                                                                Special Items

Oil & Gas                    1,647     (39) Gulf of Mexico-VPP    $ 1,641
                                       (41) TransCanada buyout     
                                        74  Asset writedowns
Chemical                       224     120  Specialty write-down      344
Corporate
 Interest-Permian non-         (80)                                   (80)
  recourse debt
 Interest - all others        (288)                                  (288)
 Taxes                        (668)     131 Tax effect of adjustments (537)
 Trust Pfd Distributions &     (50)                                   (50)
   Other
 Other                         451    (493) CanOxy gain               (53)
                                       (11) OIL dividend 
Income Before Extraordinary
Items                        1,236    (259)                           977
Extraordinary Items              1      (1) Early debt retirement      -
 Net Income                 $1,237   $(260)                         $ 977

Income Before Extraordinary
 Items                      $ 3.36                                  $2.65
Extraordinary Items            -                                      -
Basic Earnings Per Share    $ 3.36                                  $2.65


                               1999 First Nine Months
                           Net Income (Loss)($Millions)


                             Reported      Adjustments          Earnings
                             Income                             Before
                                                                Special Items
Oil & Gas                    $  511        10 Relocation        $  510
                                          (11)Contingency payment
Chemical                         89       (12)Equistar compounds
                                               gain                 77
Corporate
 Interest-all others           (357)                              (357)
 Taxes                          (65)       11 Tax effect of        (54)
                                              adjustments      
 Trust Pfd Distributions        (45)                               (45)
    & Other
 Other                          (52)      (18)OIL Insurance        (70)
                                              Dividend
Income Before Extraordinary  $   81     $ (20)                  $   61
  Items and Changes in 
  Accounting Principles
Extraordinary Items, net         (3)        3 Early debt retirement  -
Change in Acct. Principle       (13)       13 Change in Acct.        -
                                                  Principle
Net Income                   $   65     $  (4)                  $   61

Income Before Extraordinary
  Items and Changes in       $ 0.22                             $ 0.15
  Accounting Principles
Extraordinary Items, net      (0.01)                               -
Change in Acct. Principles,
    net                       (0.04)                               -
Basic Earnings Per Share     $ 0.17                             $ 0.15

                              
                         2000 Third Quarter Net Income (Loss)
                             Reported Income Comparison

                                        Third       Second       H/(L)
                                        Quarter     Quarter
                                        2000        2000

Oil & Gas                               $696        $557          $139
Chemical                                  47          34            13
Corporate
 Interest-Permian Non-recourse debt      (44)        (36)           (8)
 Interest - all others                   (91)        (98)            7
 Taxes                                  (169)       (349)          180
 Trust Pfd Distributions & Other         (17)        (16)           (1)
 Other                                   (21)        472          (493)
Income Before Extraordinary Items        401         564          (163)
Extraordinary Items                        1          -              1
  Net Income                            $402        $564         ($162)
Basic Earnings Per Share                $1.09       $1.53        ($0.44)
Effective Tax Rate                        34%         38%           (4%)

                       2000 Third Quarter Net Income (Loss)
                     Income Before Special Items Comparison

                                        Third     Second       H / (L)
                                        Quarter   Quarter
                                        2000      2000

Oil & Gas                               $690      $557          $133
Chemical                                  47       154          (107)
Corporate
 Interest-Permian non-recourse debt      (44)      (36)           (8)
 Interest - all others                   (91)      (98)            7
 Taxes                                  (194)     (197)            3
 Trust Pfd Distributions & Other         (17)      (16)           (1)
 Other                                   (21)      (21)            0
Net Income                              $370      $343           $27
Basic Earnings Per Share               $1.00     $0.93         $0.07
Effective Tax Rate                       39%       36%             3%

                                   
                                OIL & GAS
              Segment Earnings Before Special Items Variance Analysis
                              ($ millions)

2000 3rd Quarter                    $690
2000 2nd Quarter                     557
                                    $133

Price Variance                    $  180
Volume Variance                      (18)
Exploration Expense Variance         (29)

               TOTAL VARIANCE     $  133


                                   CHEMICAL
             Segment Earnings Before Special Items Variance Analysis
                                 ($ millions)

2000 3rd Quarter                    $47
2000 2nd Quarter                    154
                                  ($107)

Sales Price                        ($35)
Sales Volume/Mix                    (13)
Operations/Manufacturing            (25)*
All Other                           (34)
              TOTAL VARIANCE      ($107)

* Higher energy and feedstock costs.


                      2000 Third Quarter Net Income (Loss)
                     Income Before Special Items Comparison

                                    Third          Third          H / (L)
                                    Quarter        Quarter
                                    2000           1999

Oil & Gas                            $690           $279           $411
Chemical                               47             44              3
Corporate
 Interest-Permian non-recourse debt   (44)                          (44)
 Interest - all others                (91)          (118)            27
 Taxes                               (194)           (41)          (153)
 Trust Pfd Distribution & Other       (17)           (16)            (1)
 Other                                (21)           (23)             2
Net Income                           $370           $125           $245

Basic Earnings Per Share            $1.00          $0.35          $0.65
Effective Tax Rate                    39%            23%            16%



                                 OIL & GAS
              Segment Earnings Before Special Items Variance Analysis
                                ($ millions)

2000 3rd Quarter                                   $690
1999 3rd Quarter                                    279
                                                   $411

Price Variance *                                   $263

Volume Variance *                                   (61)

Altura & THUMS                                      237

Exploration Expense Variance                        (32)

All other variances                                   4

                              TOTAL VARIANCE       $411

*Excludes Altura & THUMS


                    SUMMARY OF OPERATING STATISTICS

                              Third Quarter               Nine Months
                              2000        1999          2000          1999
NET PRODUCTION PER DAY:
United States
 Liquids (MBL)
          California            74          50            68            52  
          Permian              136          14            89            14
          US Other               -           7             2             7
          Total                210          71           159            73

 Natural Gas (MMCF)
          California           305         287           302           282
          Hugoton              178         174           168           175
          Permian              161          55           118            56
          US Other              43         157            89           151
          Total                687         673           677           664

Other Western Hemisphere
 Crude oil (MBL)
           Columbia             21          40            33            45
           Ecuador              21          15            19            16
           Peru                  -          40             -            41
           Total                42          95            52           102

Eastern Hemisphere
 Crude oil (MBL)
           Oman                  8          15             9            15
           Pakistan              8           5             6             6
           Qatar                48          54            50            61
           Russia               28          28            27            27
           Yemen                32          26            32            32
           Total               124         128           124           141

Natural Gas (MMCF)
           Bangladesh            -           4             -            11
           Pakistan             47          47            49            42
           Total                47          51            49            53

Barrels of Oil Equivalent(MBOE)499         414           456           436

The increase in United States oil production is due to the THUMS (California)
and Altura (Permian) acquisitions.  The increase in Permian natural gas 
production is due to the Altura acquisition while the decrease in U.S. Other
natural gas production is a result of the sale of a partial interest in the Gulf
of Mexico properties to Apache Corporation effective July 1, 2000. 
The decrease in Other Western Hemisphere oil production is a result of reduced
Colombia production and the sale of Peru producing assets in the fourth quarter
of 1999.
                
                         SUMMARY OF OPERATING STATISTICS
                              Third Quarter               Nine Months
                             2000         1999          2000         1999

WTI                          31.58        21.73         29.65        17.48
NYMEX                         4.24         2.36          3.28         2.08

OIL & GAS
     PRICES
     United States
     Crude Oil ($/BBL)       28.10        17.67         26.19        14.17
     Natural gas ($/MCF)      4.18         2.12          3.23         1.94

     Other Western Hemisphere
     Crude oil ($/BBL)       26.18        15.73         26.13        11.62

     Eastern Hemisphere
     Crude oil ($/BBL)       26.39        18.42         24.76        13.92
     Natural Gas ($/MCF)      1.98         1.11          1.80         1.14


As a result of asset restructuring, Oxy oil price realization, as a percentage
of WTI, has increased substantially.  For the third quarter of 2000 United 
States oil realization was 89 percent of the average WTI price compared to 81
percent for the same period last year. 

United States natural gas price realization as a percentage of the average NYMEX
price also increased significantly.  The third quarter 2000 natural gas price
realization was 99 percent of NYMEX compared to 90 percent for the same period
of last year.

The realizations for Other Western Hemisphere oil increased for both the third
quarter of 2000 and for the nine months due to the sale of the producing assets
in Peru.  For the third quarter of 2000 price realization was 83 percent of WTI
compared to 72 percent of WTI for the same period last year.

                              Third Quarter           Nine Months
                           2000          1999        2000          1999

Exploration Expense      
 Domestic                $27               $9        $46          $44
 Other Western Hemisphere 13                1         15            2
 Eastern Hemisphere        4                1          4           17
               TOTAL     $44               $11       $65          $63           
 
          
                                ALTURA
                         As of September 30, 2000
                                                     9 Months*
                                                       2000
NET PRODUCTION PER DAY:
               Oil (MBO)                              106
               Gas (MMCF)                             106
               NGL's (MB)                              19
               BOE                                    143

* For the period April 19 to September 30.

NON RECOURSE DEBT ($ Millions)
     As of April 19, 2000               $2,400
     As of September 30, 2000            2,080
     Debt Reduction                     $  320          

Oxy committed to reduce the Altura non-recourse debt from $2.4 billion to $2.1
billion by the end of this year.  At the end of the third quarter the Altura 
non-recourse debt was $2.08 billion for a reduction of $320 million.  We expect
the Altura non-recourse debt to be below $2.0 billion by the end of this year.

                                   CHEMICALS
                                 Volume (M Tons)
                                   
                              Third Quarter          Nine Months
MAJOR PRODUCTS               2000          1999     2000          1999
 Chlorine                     690           819     2,294         2,347
 Caustic                      825           847     2,470         2,390
 Ethylene Dichloride          128           254       674           768
 PVC Resins                   413           505     1,350         1,444

                                   CHEMICALS
                                  Prices (Index)

                              Third Quarter          Nine Months
MAJOR PRODUCTS               2000        1999      2000          1999
 Chlorine                    1.72        0.85      1.60          0.73
 Caustic                     0.59        0.54      0.66          0.68
 Ethylene Dichloride         1.22        1.07      1.57          0.79
 PVC Resins                  0.99        0.73      0.99          0.64


             
CHLORINE                OxyChem                  Industry (Chlorine Institute) 
Operating Rate (U.S.)     86.0%                         89.5% 
  2000 year-to-date 
  (January-August)        95.0%                         93.7% 
                          
OxyChem Commentary 
* Chlorine price weakness to the vinyls segment began in the 3rd quarter
relative to 2nd quarter pricing and is likely to show continued relative
softness through the 4th quarter as well.  Year-to-date prices have improved
$77/ton over 1999. 

* For the quarter, OxyChem average external net prices improved $11/ton over 2nd
quarter 2000. 

Industry Commentary (CMAI) 
* Reduced demand into the vinyls industry introduced additional product into the
spot market. Spot prices dropped during the quarter while contract prices to the
vinyls industry remained largely unchanged. Downward pressure is expected to
continue in the 4th quarter. 

* Although some price reductions are forecast for the 4th quarter and 1st
quarter 2001, very little new chlorine capacity will be brought online during
the next 12 months. Therefore, chlorine prices should remain at fairly high
levels on average. 

* U.S. chlorine demand is expected to reflect 2.4% growth for 2000. Consumption
into the vinyls sector is forecast to pick up starting in the 2nd quarter, 2001.


Influencing Factors 
Demand into the vinyls sector is temporarily weakened. With limited available
production capacity, returning demand will drive long-term volume and upward
price pressures. 

CAUSTIC 

OxyChem  Commentary 
* OxyChem's 3rd quarter net average domestic prices declined $6/ton as contract
buyers received the remaining benefit of price weakness earlier in the 
year.  Announced price increases of $50/ton for July and $60/ton for August will
significantly improve 4th quarter and future realized net values. 

* Inventories declined through the 3rd quarter and are down significantly for
the year. Short supplies will continue through the remainder of the year. 

* Demand continues to demonstrate strength and stability. 

Industry Commentary (CMAI) 
* Spot prices reached a level of $200/DST with some buyers paying 'well above'
that amount for urgently needed product. While contract pricing is forecast 
to increase during the 4th quarter, there appears to be additional room for
future price increases. 

* U.S. demand rose 8.5%, in the 1st half 2000 compared to 1st half 1999. With
operating rates reduced during the 2nd half, 3% production growth is forecast
for the year. 

Influencing Factors 
Lower operating rates will continue to limit supply and allow price
improvements. Demand remains strong. 
                 
EDC 

OxyChem Commentary 
* Continued weakness into the PVC/VCM markets and expectations of ethylene price
declines are providing downward price pressure.  Price weakness is expected to
continue through the 4th quarter. 

Industry Commentary (CMAI) 
* Export prices declined further to 11.0-11.5c/lb (FOB) for September shipments.


* Demand remains weak with indications that inventories in Asia remain high. 

Influencing Factors 
Declining demand in vinyls has softened pricing from all-time 2nd quarter highs.


PVC/VCM                     OxyChem               Industry (Chem Data) 
Operating Rates (U.S.)        87%                         85%                   
  
OxyChem Commentary 
* Domestic PVC prices decreased 3.5c/lb since May, remaining up 1.5c/lb in 2000.


* Domestic demand weakness continued through the quarter with continued
inventory adjustments and an overall slow-down in the construction industry. 

* Export volume began increasing in June with Shintech moving product from the
U.S. to sell out their new plant. Export volume increased again in August as 
U.S. producers moved additional inventory into the market. 

* Asian export prices held during the third quarter at $670-680/MT CFR, but face
downward pressure as material from the U.S., Middle East, and Europe 
tries to find a home in China.  Latin America prices have steadily declined
since June and continue to face downward pressure with capacity additions at 
Shintech and Petco. Current prices are $585-650 CFR. 
                       
* Domestic VCM prices were 27c/lb for July, 26c/lb in August, and are expected
to settle at 25.5c/lb for September.  These decreases are attributable to 
lower PVC and ethylene prices. 

* For October shipments, the export VCM price decreased to $430-440/MT F.O.B.
U.S. Gulf Coast. 

Industry Commentary (CMAI) 
* PVC price remains under downward pressure due to weak demand in all regions.
 
* VCM demand has weakened for both domestic and export shipments. 
  
Influencing Factors 
Product prices remain under downward pressure from weak demand in all regions.
Long term, capacity limitations and demand strength will continue benefit
product prices and volumes. 
               
                    SUMMARY OF OPERATING STATISTICS
                              Third Quarter               Nine Months
                           2000        1999          2000          1999

Capital Expenditures ($MM)
 Oil & Gas
   California               $48         $26          $132           $65
   Permian                   51           1            88             3
   Other - U.S.              37          27            69            75
   Other Western Hemisphere  27           4            59            12
   Eastern Hemisphere        68          44           170           151
 Chemicals                   40          19            84            74
 Corporate                    4           -             6             3
               TOTAL       $275        $120          $608          $383

Depreciation, Depletion &
Amortization of Assets ($MM)
 Oil & Gas                 
  Domestic                 $154         $76          $340          $229  
  Other Western Hemisphere   10          16            30            47
  Eastern Hemisphere         47          49           141           160
 Chemicals                   47          49           145           137
 Corporate                   10           8            31            25
               TOTAL       $268        $198          $687          $598


                                 OCCIDENTAL PETROLEUM 
                                     Corporate
                                   ($ Millions)
CAPITALIZATION
                                        30-SEP-00          31-DEC-99
Oxy Long-Term Debt (including
 current maturities)                        4,017              4,372
Permian Non-Recourse Debt                   2,080                  -
Gas Sales Obligation (current
 and non-current)                             442                533
Trust Preferred Securities                    473                486
Others                                         47                 57
               TOTAL DEBT                   7,059              5,448

EQUITY                                      4,522              3,523


With the Altura acquisition in April of this year, on a pro-forma basis Oxy's
debt increased from $5.4 billion at year-end 1999 to $9.0 billion.  At that time
we committed to reduce total debt to $7 billion by the end of this year.  The $2
billion debt reduction target was to consist of $1.2 billion from asset sales
and $800 million from cash flow.  At the end of the third quarter, Oxy's total
debt is about $60 million over the $7 billion targeted debt level.  This is
three months ahead of our scheduled commitment.  Of the $2 billion 
debt reduction since April, approximately $1 billion is from asset sales and
approximately $1 billion is from cash flow.  In addition, Oxy's third quarter
balance sheet will reflect invested cash of $200 million-so net debt is actually
about $6.85 billion.  To reflect our fourth quarter intentions for this cash we
have characterized $200 million of debt as current maturities 
to be paid off in the quarter. 

The total debt of $7 billion at the end of the third quarter of this year
represents a ratio of 60 percent total debt to total capitalization.  This is
the essentially the same ratio that we had at the start of the year when debt
was $5.4 billion and before the $3.6 billion Altura acquisition. 

While we have reached our targeted debt level three months ahead of schedule we
will continue to make debt reduction the highest priority.  We will use our cash
 flow and any proceeds from asset sales to achieve additional reductions in the
fourth quarter. 

With this lower debt level we expect to see interest expense decline in the
fourth quarter of this year compared to the third quarter.
                
Portions of this presentation are forward-looking and involve risks and
uncertainties that could significantly affect expected results.  Factors that
could cause results to differ materially include, but are not limited to: 
global commodity pricing fluctuations; competitive pricing pressures; higher
than expected costs including feedstock; the supply/demand considerations for
Occidental's products; any general economic recession domestically or
internationally; and not successfully completing any expansion, capital 
expenditure or acquisition.



                                                                                
                                                            

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