Occidental Petroleum Announces Third Quarter and Nine Months of 2011 Income

Occidental
Petroleum Corporation (NYSE:OXY) announced earnings from continuing
operations of $1.8 billion ($2.18 per diluted share) for the third
quarter of 2011, compared with $1.2 billion ($1.48 per diluted share)
for the third quarter of 2010. Net income was $1.8 billion ($2.17 per
diluted share) for the third quarter of 2011, compared with the $1.2
billion ($1.46 per diluted share) for the third quarter of 2010.

In announcing the results, Stephen I. Chazen, President and Chief
Executive Officer, said, 'The third quarter 2011 income of $1.8 billion
was 48 percent higher than the same period of 2010. The third quarter
2011 domestic production was 436,000 BOE per day, the highest in
Occidental′s history, and total sales were 743,000 BOE per day.

'We continue to generate strong financial results with cash flow from
operations of $8.6 billion for the first nine months of 2011 and
annualized ROE of 20 percent.?

QUARTERLY RESULTS

Oil and Gas

Oil and gas segment earnings were $2.6 billion for the third quarter of
2011, compared with $1.8 billion for the same period in 2010. The
increase in the third quarter of 2011 earnings was due to higher volumes
and liquids prices.

For the third quarter of 2011, daily oil and gas production volumes
averaged 739,000 barrels of oil equivalent (BOE), compared with 706,000
BOE in the third quarter of 2010. As a result of higher year-over-year
average oil prices and other factors affecting production sharing and
similar contracts, production was reduced in the Middle East/North
Africa and Colombia by 13,000 BOE per day, with another 1,000 BOE per
day reduction at THUMS in Long Beach.

The third quarter 2011 production volume increase was a result of 56,000
BOE per day higher domestic volumes, partially offset by lower volumes
in the Middle East/North Africa and Colombia. The domestic increase was
from Midcontinent and Other, including the new acquisitions in South
Texas and the North Dakota Williston Basin, and California. The Middle
East/North Africa was lower primarily due to the lack of production in
Libya and price impacts on production sharing contracts, partially
offset by higher production from our traditional areas in Oman and
Mukhaizna and Iraq production that came on line in 2011. Colombia
production was lower due to pipeline interruptions caused by insurgent
activity.

Daily sales volumes increased from 713,000 BOE per day in the third
quarter of 2010 to 743,000 BOE per day in the third quarter of 2011. The
2011 sales volumes were higher than the production volumes due to the
timing of liftings.

Oxy′s realized price for worldwide crude oil was $97.24 per barrel for
the third quarter of 2011, compared with $72.31 per barrel for the third
quarter of 2010. The third quarter of 2011 realized oil price represents
108 percent of the average WTI and 87 percent of the average Brent price
for the quarter. About 60 percent of Oxy′s oil production tracks world
oil prices and 40 percent is indexed to WTI. Worldwide NGL prices were
$56.06 per barrel in the third quarter of 2011, compared with $39.70 per
barrel in the third quarter of 2010. Domestic gas prices increased
slightly from $4.20 per MCF in the third quarter of 2010 to $4.23 per
MCF for the third quarter of 2011.

Chemicals

Chemical segment earnings for the third quarter of 2011 were $245
million, compared to $189 million in the third quarter of 2010. The
improvement in third quarter results on a year-over-year basis reflects
higher pricing across most product lines, which more than offset higher
feedstock costs.

Midstream, Marketing and Other

Midstream segment earnings were $77 million for the third quarter of
2011, compared with $163 million for the third quarter of 2010. The
decline in earnings for the third quarter of 2011 was primarily due to
lower trading results, partially offset by higher income from our
pipeline and power generation businesses.

NINE-MONTH RESULTS

Year-to-date 2011 core income was over $5.2 billion ($6.37 per diluted
share), compared with $3.4 billion ($4.14 per diluted share) for the
same period in 2010. Net income for the first nine months of 2011 was
$5.1 billion ($6.31 per diluted share), compared with $3.3 billion
($4.07 per diluted share) for the same period in 2010.

Oil and Gas

Oil and gas segment earnings were $7.7 billion for the nine months of
2011, compared with $5.5 billion for the same period of 2010. The $2.2
billion increase in the 2011 results reflected higher crude oil and NGL
prices and sales volumes, partially offset by higher operating costs and
DD&A rates.

Oil and gas production volumes for the nine months were 728,000 BOE per
day for 2011, compared with 703,000 BOE per day for the 2010 period.
Higher year-over-year average oil prices and other factors affecting our
production sharing and similar contracts lowered our Middle East/North
Africa, Long Beach and Colombia production by 14,000 BOE per day.

Domestic volumes increased primarily due to new operations in South
Texas and the Williston Basin. Middle East/North Africa production
declined due to impacts of price and other factors on production sharing
contracts and lower production in Libya, partially offset by new
production in Iraq and higher production in Oman′s Mukhaizna field.

Daily sales volumes were 726,000 BOE in the first nine months of 2011,
compared with 701,000 BOE for 2010.

Oxy's realized prices improved for crude oil and NGLs but declined for
natural gas on a year-over-year basis. Worldwide crude oil prices were
$97.33 per barrel for the nine months of 2011, compared with $73.58 per
barrel for the nine months of 2010. Worldwide NGL prices were $55.63 per
barrel for the nine months of 2011, compared with $43.66 per barrel in
the nine months of 2010. Domestic gas prices declined from $4.67 per MCF
in the nine months of 2010 to $4.24 per MCF in the nine months of 2011.

Chemicals

Chemical segment earnings were $717 million for the nine months of 2011,
compared with $327 million for the same period in 2010. The 2011 nine
month results reflect strong export sales and higher margins resulting
from higher demand across most products.

Midstream, Marketing and Other

Midstream segment earnings were $378 million for the nine months of
2011, compared with $270 million for the same period in 2010. The 2011
results reflect higher pipeline income and increased margins in our
power generation business.

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

Portions of this press release contain forward-looking statements and
involve risks and uncertainties that could materially affect expected
results of operations, liquidity, cash flows and business prospects.
Factors that could cause results to differ materially include, but are
not limited to: global commodity pricing fluctuations; supply and demand
considerations for Occidental′s products; general domestic political and
regulatory approval conditions; international political conditions; not
successfully completing, or any material delay of, any development of
new fields, expansion projects, capital expenditures,
efficiency-improvement projects, acquisitions or dispositions; potential
failure to achieve expected production from existing and future oil and
gas development projects; exploration risks such as drilling
unsuccessful wells; any general economic recession or slowdown
domestically or internationally; higher-than-expected costs; potential
liability for remedial actions under existing or future environmental
regulations and litigation; potential liability resulting from pending
or future litigation; potential disruption or interruption of
Occidental′s production or manufacturing or damage to facilities due to
accidents, chemical releases, labor unrest, weather, natural disasters,
political events or insurgent activity; failure of risk management;
changes in law or regulations; or changes in tax rates. Words such as
'estimate?, 'project?, 'predict?, 'will?, 'would?, 'should?, 'could?,
'may?, 'might?, 'anticipate?, 'plan?, 'intend?, 'believe?, 'expect? or
similar expressions that convey the uncertainty of future events or
outcomes generally indicate forward-looking statements. You should not
place undue reliance on these forward-looking statements, which speak
only as of the date of this report. 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.
Material risks that may affect Occidental′s results of operations and
financial position appear in Part 1, Item 1A 'Risk Factors? of the 2010
Form 10-K.