OCCIDENTAL PETROLEUM CORP /DE/

The Company's financial results are significantly influenced by crude oil prices and, to a lesser extent, NGL and natural gas prices and commodity market differentials. Third-quarter 2026 average WTI and Brent prices were $85.79 and $91.62 per barrel, respectively, down from $92.79 and $97.06 per barrel in the second quarter. For the first nine months of 2026, average WTI and Brent prices were $83.50 and $88.87 per barrel, respectively, compared to $66.70 and $69.87 per barrel in the prior-year period.

Changes in commodity prices may affect the Company's capital allocation decisions, including the level and timing of investments, which could affect future production volumes.

Commodity prices are expected to remain volatile due to a variety of factors, including geopolitical developments, macroeconomic conditions and their impact on global energy demand, actions by OPEC and non-OPEC producing countries, and changes in U.S. trade policy. Commodity prices during the third quarter of 2026 were impacted in part by geopolitical risk premiums associated with conflicts and instability in the Middle East and the resulting uncertainty affecting global energy markets.

While geopolitical conditions fluctuated during the quarter, global energy supply, transportation and trade networks remain exposed to international developments that could affect the production, transportation and delivery of crude oil and other commodities. Ongoing uncertainty related to conflicts and tensions in the Middle East, including the potential for disruptions to global energy supply, transportation routes, export infrastructure and regional trade flows, as well as evolving governmental actions, sanctions measures and diplomatic efforts, could continue to influence commodity prices and contribute to market volatility. The duration, scope and ultimate outcome of such developments remain uncertain and could affect global economic conditions, energy markets and the prices realized for the Company's production.

U.S. trade policy actions and tariffs could affect the Company's operations and financial performance. While no material impact has occurred year to date, future trade policies may increase supplier costs and affect product demand, supply chain efficiency, and oil and gas commodity prices.

STRATEGIC PRIORITIES

The Company is focused on delivering a unique shareholder value proposition with its portfolio of oil and gas and midstream and marketing assets, as well as its ongoing development of carbon management and sequestration solutions and GHG emissions reduction efforts. The Company conducts its operations with an emphasis on technical expertise, HSE, sustainability and social responsibility, and is advancing integrated technologies in CO 2, power and midstream to enable differentiated resource recovery and value.

In order to maximize shareholder returns, the Company intends to:

■Maintain safe and responsible operations;

■Execute from a strong balance sheet;

■Deliver a sustainable and growing dividend; and

■Sustain base production.

OXYCHEM TRANSACTION

The Company completed the sale of OxyChem on January 2, 2026 in an all-cash transaction for an adjusted sales price of $9.5 billion, subject to additional post-closing adjustments. The transaction resulted in a gain of approximately $3.1 billion, net of taxes. OxyChem is reported as discontinued operations, with its assets and liabilities classified as held for sale as of December 31, 2025.

See Note 1 - General in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information regarding the OxyChem Transaction.

DEBT

As of September 30, 2026, the Company's debt was rated Baa3 by Moody's Investors Service, BBB by Fitch Ratings and BB+ by Standard and Poor's. Any downgrade in the Company's credit ratings could affect its ability to access capital markets and increase its cost of capital. In addition, Occidental or its subsidiaries may be requested, may elect to provide or in some cases may be required to provide collateral in the form of cash, letters of credit, surety bonds or other acceptable support as financial assurance of their performance and payment obligations under certain contractual arrangements, such as pipeline transportation contracts, oil and gas purchase contracts and certain derivative instruments; certain permits, including with respect to carbon capture, utilization and sequestration activities; and environmental remediation matters.

During the nine months ended September 30, 2026, the Company used approximately $7.9 billion of net after-tax proceeds from the OxyChem Transaction and cash from operations to repay approximately $10.4 billion of debt. For information on the Company's debt activity, see Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information.

As of September 30, 2026, substantially all of the Company's outstanding debt was fixed rate.