Occidental Petroleum Announces 4th Quarter and 12 Months of 2012 Income

Occidental
Petroleum Corporation (NYSE:OXY) announced core income of $1.5
billion ($1.83 per diluted share) for the fourth quarter of 2012,
compared with $1.6 billion ($2.02 per diluted share) for the fourth
quarter of 2011. In the fourth quarter of 2012, we recorded after-tax
charges of $1.1 billion or $1.41 per diluted share, almost all of which
was related to the impairment of gas assets in the Midcontinent. Net
income for the fourth quarter of 2012 after this charge was $336 million
($0.42 per diluted share), compared with $1.6 billion ($2.01 per diluted
share) for the same period of 2011.

Core income was $5.8 billion ($7.09 per diluted share) for the year
2012, compared with $6.8 billion ($8.39 per diluted share) for 2011. Net
income for the twelve months of 2012 was $4.6 billion ($5.67 per diluted
share), compared with $6.8 billion ($8.32 per diluted share) for 2011.

In announcing the results, Stephen I. Chazen, President and Chief
Executive Officer, said, 'Our fourth quarter domestic production of
475,000 barrels of oil equivalent per day, of which 342,000 barrels per
day was liquids, set a record for the ninth consecutive quarter. Our
total company production for all of 2012 was 766,000 barrels of oil
equivalent per day, which was 5 percent higher than 2011. Our domestic
oil production grew by 11 percent for all of 2012 to 255,000 barrels per
day from 230,000 barrels in 2011.

'Fourth quarter core income was $1.5 billion or $1.83 per diluted share.
These results were $0.13 higher than the third quarter of 2012 as a
result of higher liquids volumes, higher realized NGL and domestic gas
prices and lower operating expenses. In the fourth quarter, our
production costs were $1.04 a barrel lower than the third quarter, with
improvements across most units. The reductions resulted from
efficiencies achieved across most cost categories including savings in
surface operations, reductions in the use of outside contractors,
curtailment of uneconomic down-hole maintenance and workover activity,
as well as related overhead. Our exit rate on a per barrel basis was
well below the total year 2012 and below the fourth quarter 2011 levels.
We generated cash flow from continuing operations before working capital
changes of $12.1 billion for the twelve months of 2012 and invested
$10.2 billion in capital expenditures.'

QUARTERLY RESULTS

Oil and Gas

Oil and gas core earnings were $2.3 billion for the fourth quarter of
2012, compared with $2.5 billion for the fourth quarter of 2011. Lower
2012 earnings resulted from lower year-over-year prices across all
products in the fourth quarter of 2012 and higher DD&A rates, partially
offset by higher liquids volumes. After including the fourth quarter
2012 charges, which will be discussed in more detail on the earnings
call, segment earnings were $522 million.

For the fourth quarter of 2012, daily oil and gas production volumes
averaged 779,000 barrels of oil equivalent (BOE), compared with 748,000
BOE in the fourth quarter of 2011.

The fourth quarter 2012 production increase resulted from higher volumes
of 26,000 BOE per day from domestic operations and 5,000 BOE per day
from international production. The international increase included
higher production in Iraq, Bahrain and Libya, partially offset by lower
volumes from Dolphin, resulting from the full cost recovery of
pre-startup capital, and in Yemen due to the Masila field contract
expiration.

Daily sales volumes increased from 749,000 BOE in the fourth quarter of
2011 to 784,000 BOE in the fourth quarter of 2012.

Oxy′s realized price for worldwide crude oil was $96.19 per barrel for
the fourth quarter of 2012, compared with $99.62 per barrel for the
fourth quarter of 2011. The fourth quarter of 2012 realized oil price
represents 109 percent of the average WTI and 87 percent of the average
Brent price. Worldwide NGL prices were $45.08 per barrel in the fourth
quarter of 2012, compared with $55.25 per barrel in the fourth quarter
of 2011. Domestic gas prices decreased 14 percent from $3.59 per MCF in
the fourth quarter of 2011 to $3.09 per MCF for the fourth quarter of
2012.

Fourth quarter 2012 realized prices were higher than third quarter 2012
prices for worldwide NGLs and domestic natural gas but were slightly
lower for worldwide crude oil. On a sequential quarterly basis, prices
increased 11 percent for NGLs and 25 percent for domestic natural gas
and decreased less than 1 percent for worldwide crude oil.

Chemical

Chemical segment earnings for the fourth quarter of 2012 were $180
million, compared with $144 million in the fourth quarter of 2011. The
increase was primarily the result of higher export volumes for caustic
soda and vinyl chloride monomer and lower ethylene costs.

Midstream, Marketing and Other

Midstream segment earnings were $75 million for the fourth quarter of
2012, compared with $70 million for the fourth quarter of 2011.

TWELVE-MONTH RESULTS

Oil and Gas

Oil and gas core earnings were $8.8 billion for the twelve months of
2012, compared with $10.3 billion for the same period of 2011. The
decrease in 2012 reflected lower NGL and natural gas prices, higher
operating costs, exploration expense and DD&A rates, partially offset by
higher oil prices and domestic volumes. Segment earnings, after
including the fourth quarter charges, were $7.1 billion for 2012,
compared with $10.2 billion for 2011.

Oil and gas production volumes for the twelve months were 766,000 BOE
per day for 2012, compared with 733,000 BOE per day for the same period
in 2011. Year-over-year, Oxy's domestic production increased by 9
percent, while total company production increased by 5 percent.
Dolphin's full cost recovery of pre-startup capital, which reduced
production, was the only operation where production sharing and similar
contracts had an appreciable effect.

The twelve-month 2012 production increase resulted from 37,000 BOE per
day in higher domestic volumes, partially offset by lower volumes in the
Middle East/North Africa and Latin America.

Daily sales volumes were 764,000 BOE in the twelve months of 2012,
compared with 731,000 BOE for the same period in 2011.

Oxy's realized prices improved for crude oil but declined for natural
gas and NGLs on a year-over-year basis. Worldwide crude oil prices were
$99.87 per barrel for the twelve months of 2012, compared with $97.92
per barrel for the twelve months of 2011. Worldwide NGL prices were
$45.18 per barrel for the year 2012, compared with $55.53 per barrel for
the year 2011. Domestic gas prices declined 35 percent, from $4.06 per
MCF in the twelve months of 2011 to $2.62 per MCF in the twelve months
of 2012.

Chemical

Chemical segment earnings were $720 million for the twelve months of
2012, compared with $861 million for the same period in 2011. The
reduction was primarily a result of lower margins due to weaker economic
conditions in Europe and Asia, and increased competitive activity from
these regions. The calcium chloride and potassium hydroxide businesses
were also negatively impacted by an extremely mild winter and drought
conditions in the United States.

Midstream, Marketing and Other

Midstream segment earnings were $439 million for the twelve months of
2012, compared with $448 million for the same period in 2011.

About Oxy

Occidental
Petroleum Corporation (OXY) 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 one of the
largest U.S. oil and gas companies, based on equity market
capitalization. Oxy's wholly owned subsidiary OxyChem manufactures and
markets chlor-alkali products and vinyls. Oxy 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; higher-than-expected costs;
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 or acquisitions;
exploration risks such as drilling unsuccessful wells; any changes in
general economic conditions domestically or internationally; the ability
to attract trained engineers; 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', 'aim',
'goal', 'target', 'objective', 'likely' 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 2011 Form 10-K.

For further analysis of Occidental's quarterly performance, please visit
the website: www.oxy.com

Occidental Petroleum Corporation

Melissa E. Schoeb (media)

310-443-6504

melissa_schoeb@oxy.com

or

Chris
Stavros (investors)

212-603-8184

chris_stavros@oxy.com