OCCIDENTAL PETROLEUM CORP /DE/

OVERVIEW OF SEGMENT RESULTS

The Company's principal businesses consist of two reporting segments: oil and gas and midstream and marketing. The oil and gas segment explores for, develops and produces oil and condensate, NGL and natural gas. The midstream and marketing segment purchases, markets, gathers, processes, transports and stores oil (including condensate), NGL, natural gas, CO 2 and power; optimizes its transportation and storage capacity; and invests in entities that conduct similar activities, including WES. The midstream and marketing segment also includes the Company's low-carbon ventures businesses.

OIL AND GAS SEGMENT

The following table sets forth average daily sales volumes for oil and NGL in Mbbl and for natural gas in MMcf:

(a)Natural gas volumes have been converted to Boe based on energy content of six Mcf of gas to one barrel of oil. Conversion to Boe does not necessarily result in price equivalency.

Q3 2026 compared with Q2 2026

Average daily sales volumes were lower for the three months ended September 30, 2026, compared with the three months ended June 30, 2026, resulting from lower domestic volumes due to planned and unplanned maintenance at certain Gulf of America facilities and a third-party gas pipeline constraint.

Average daily sales volumes increased for the nine months ended September 30, 2026, compared with the same period in 2025, primarily due to development activity and new wells coming online in the Permian. These increases were partially offset by lower international sales volumes associated with disruptions resulting from conflicts in the Middle East and the impact of higher prices on production sharing contracts.

The following table presents the Company's average realized prices and average index prices for the periods presented:

The following table analyzes the impacts of changes in average realized prices and sales volumes on the Company's domestic and international oil, NGL and natural gas revenues:

(a)Includes the impact of international production sharing contracts.

(b)Excludes "other" oil and gas revenue. See Note 2 - Revenue in the Notes to Consolidated Condensed Financial Statements in Part I, Item 1 of this Form 10-Q for additional information regarding other revenue.

Q3 2026 compared with Q2 2026

Oil and gas segment earnings were $2.6 billion for the three months ended September 30, 2026, compared with $2.8 billion for the three months ended June 30, 2026. Excluding the impact of items affecting comparability, the decrease was primarily driven by lower realized crude oil prices, partially offset by higher realized domestic natural gas prices.

Oil and gas segment earnings were $6.4 billion for the nine months ended September 30, 2026, compared with $3.9 billion for the same period in 2025. Excluding the impact of items affecting comparability, the increase was primarily driven by higher realized crude oil prices, partially offset by lower realized domestic natural gas prices.

MIDSTREAM AND MARKETING SEGMENT

Midstream and marketing segment earnings for the three months ended September 30, 2026 were $55 million, compared to segment earnings of $1.3 billion for the three months ended June 30, 2026. Excluding the impact of items affecting comparability, third quarter results decreased due to lower gas margins due to the narrowing of the Waha-to-Gulf-Coast gas spreads in the third quarter and lower crude margins related to the timing impact of crude sales, partially offset by higher sulfur volumes and prices at Al Hosn.

Midstream and marketing segment earnings for the nine months ended September 30, 2026 were $1.3 billion, compared to segment earnings of $48 million for the same period in 2025. Excluding the impact of items affecting comparability, the increase reflected higher crude margins driven by the timing impact of crude sales and lower crude marketing transportation costs, higher gas margins from transportation capacity optimizations in the Permian, and higher sulfur prices at Al Hosn.

DISCONTINUED OPERATIONS, NET

Discontinued operations, net includes the results of OxyChem for all periods presented and the gain recognized upon closing the OxyChem Transaction on January 2, 2026. See Note 1 - General.

Select results for discontinued operations are reflected in the following table:

Income from discontinued operations, net of taxes of $3.1 billion increased for the nine months ended September 30, 2026, compared to $381 million for the same period in 2025. The increase was primarily due to the $3.1 billion gain recognized upon closing the OxyChem Transaction.