OCCIDENTAL PETROLEUM CORP /DE/

SOURCES AND USES OF CASH

As of September 30, 2026, the Company's sources of liquidity included $3.9 billion of cash and cash equivalents and $4.2 billion of borrowing capacity under its RCF, which matures on June 30, 2028. There were no borrowings outstanding under the Company's RCF as of September 30, 2026.

Operating Cash Flows

Operating cash flow from continuing operations was $10.6 billion for the nine months ended September 30, 2026, compared to $7.2 billion for the nine months ended September 30, 2025. Operating cash flow from continuing operations for the nine months ended September 30, 2026 included $238 million in cash settlement payments related to crude oil collars. The increase, compared to the same period in 2025, was primarily due to higher net income in 2026 resulting from the significant increase in crude oil prices beginning in March 2026, higher natural gas margins from gas transportation capacity optimization in the marketing segment and higher sulfur prices at Al Hosn.

Operating cash flow used by discontinued operations was $1.4 billion for the nine months ended September 30, 2026, compared to operating cash flow from discontinued operations of $690 million for the nine months ended September 30, 2025. The change in operating cash flows from discontinued operations primarily reflected the January 2, 2026 divestiture of OxyChem and income tax payments made subsequent to the sale, compared to nine months of OxyChem operations in 2025.

Investing Cash Flows

The Company's net cash used by investing activities from continuing operations was $5.0 billion for the nine months ended September 30, 2026, compared to $3.2 billion for the nine months ended September 30, 2025. The year-over-year change was primarily due to $2.2 billion in proceeds from divestitures in the prior year.

Capital expenditures, the majority of which related to the oil and gas segment, were $4.5 billion for the nine months ended September 30, 2026, compared to $4.9 billion for the nine months ended September 30, 2025.

Cash flow provided by investing activities from discontinued operations was $9.4 billion for the nine months ended September 30, 2026, reflecting proceeds from the OxyChem Transaction.

Financing Cash Flows

The Company's net cash used by financing activities from continuing operations was $11.8 billion for the nine months ended September 30, 2026, which included $10.5 billion of payments of debt and $1.3 billion of payments of common and preferred cash dividends. See Note 3 - Long-Term Debt in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q.

Net cash used by financing activities for the nine months ended September 30, 2025 was $3.9 billion, which included $3.6 billion of payments on long-term debt and $1.2 billion of payments of common and preferred cash dividends, partially offset by proceeds of approximately $890 million from the exercise of common stock warrants.

During the first nine months of 2026, outstanding debt decreased from approximately $20.4 billion at December 31, 2025 to approximately $10.0 billion at September 30, 2026. The corresponding annualized interest on outstanding debt decreased from approximately $1.24 billion to approximately $655 million, which is expected to reduce the Company's cash interest requirements in future periods.

As of the date of this filing, the Company is in compliance with all covenants in its financing agreements, and has no debt maturities due in 2026, $48 million in 2027, $14 million in 2028, $352 million in 2029, and $9.6 billion thereafter. The Company expects cash on hand, operating cash flows and funds available from the RCF to be sufficient to meet its near-term debt maturities, operating expenditures, capital expenditures and other obligations for the next 12 months from the date of this filing. Subsequent to September 30, 2026, but before the date of this filing, Occidental used cash on hand to repay the remaining $33 million of Zero Coupon senior notes due 2036.

The Company has provided financial assurances through a combination of cash, letters of credit and surety bonds. As of September 30, 2026, the Company had no outstanding letters of credit under the RCF.

For additional information, see Risk Factors in Part I, Item 1A of the Company's 2025 Form 10-K.