8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) October 25, 2012

OCCIDENTAL PETROLEUM CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	1-9210	95-4035997
(State or other jurisdiction	(Commission	(I.R.S. Employer
of incorporation)	File Number)	Identification No.)

10889 Wilshire Boulevard
Los Angeles, California	90024
(Address of principal executive offices)	(ZIP code)

Registrant’s telephone number, including area code:

(310) 208-8800

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):

[   ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

[   ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

[   ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

[   ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 – Financial Information

Item 2.02. Results of Operations and Financial Condition

On October 25, 2012, Occidental Petroleum Corporation released information regarding its results of operations for the three and nine months ended September 30, 2012.  The exhibits to this Form 8-K and the information set forth in this Item 2.02 are being furnished pursuant to Item 2.02, Results of Operations and Financial Condition.  The full text of the press release is attached to this report as Exhibit 99.1.  The full text of the speeches given by Cynthia L. Walker and Stephen Chazen are attached to this report as Exhibit 99.2.  Investor Relations Supplemental Schedules are attached to this report as Exhibit 99.3.  Earnings Conference Call Slides are attached to this report as Exhibit 99.4.  Forward-Looking Statements Disclosure for Earnings Release Presentation Materials is attached to this report as Exhibit 99.5.  The information in this Item 2.02 and Exhibits 99.1 through 99.5, inclusive, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.

Section 8 – Other Events

Item 8.01.  Other Events

On October 25, 2012, Occidental Petroleum Corporation announced income from continuing operations of $1.4 billion ($1.70 per diluted share) for the third quarter of 2012, compared with the third quarter of 2011 income from continuing operations of $1.8 billion ($2.18 per diluted share).

Oil and Gas

Oil and gas segment earnings were $2.0 billion for the third quarter of 2012, compared with $2.6 billion for the third quarter of 2011.  Lower product prices and higher costs in the third quarter of 2012 were partially offset by higher oil volumes.

For the third quarter of 2012, daily oil and gas production volumes averaged 766,000 barrels of oil equivalent (BOE), compared with 739,000 BOE in the third quarter of 2011.

The third quarter 2012 production increase resulted from higher volumes of 33,000 BOE per day from domestic operations, partially offset by a decrease in international production.  The international decrease included lower volumes from Dolphin, resulting from the full cost recovery of pre-startup capital, and in Yemen due to the Masila field contract expiration, partially offset by higher volumes from other international operations.

Daily sales volumes increased from 743,000 BOE in the third quarter of 2011 to 765,000 BOE in the third quarter of 2012.

Oxy’s realized price for worldwide crude oil was $96.62 per barrel for the third quarter of 2012, compared with $97.24 per barrel for the third quarter of 2011. The third quarter of 2012 realized oil price represents 105 percent of the average WTI and 88 percent of the average Brent price for the quarter. Worldwide NGL prices were $40.65 per barrel in the third quarter of 2012, compared with $56.06 per barrel in the third quarter of 2011. Domestic gas prices decreased 41 percent from $4.23 per MCF in the third quarter of 2011 to $2.48 per MCF for the third quarter of 2012.

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Third quarter 2012 realized prices were lower than second quarter 2012 prices for worldwide oil and NGLs and were higher for domestic natural gas.  On a sequential quarterly basis, prices decreased 3 percent for worldwide crude oil and NGLs and increased 19 percent for domestic natural gas.

Chemicals

Chemical segment earnings for the third quarter of 2012 were $162 million, compared with $245 million in the third quarter of 2011.  The decrease was the result of lower prices across most product lines, particularly in polyvinyl chloride (PVC) and vinyl chloride monomer (VCM), partially offset by lower natural gas and ethylene costs.

Midstream, Marketing and Other

Midstream segment earnings were $156 million for the third quarter of 2012, compared with $77 million for the third quarter of 2011. The results reflect higher margins in the marketing and trading businesses, partially offset by lower income in the gas processing and pipeline businesses.

NINE-MONTH RESULTS

Core income for the first nine months of 2012 was $4.3 billion ($5.26 per diluted share), compared with $5.2 billion ($6.37 per diluted share) for the same period in 2011.  Cash flow from operations after working capital changes was $8.5 billion.

Oil and Gas

Oil and gas segment earnings were $6.6 billion for the first nine months of 2012, compared with $7.7 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.

Oil and gas production volumes for the nine months were 762,000 BOE per day for 2012, compared with 728,000 BOE per day for the same period in 2011.  Year-over-year, our domestic production increased by nearly 10 percent, while total company production increased by nearly 5 percent.  Dolphin's full cost recovery of pre-startup capital, which reduced our production, was the only operation where production sharing and similar contracts had an appreciable effect.

The nine-month 2012 production increase resulted from 41,000 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 757,000 BOE in the first nine months of 2012, compared with 726,000 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 $101.20 per barrel for the nine months of 2012, compared with $97.33 per barrel for the nine months of 2011.  Worldwide NGL prices were $45.21 per barrel for the nine months of 2012, compared with $55.63 per barrel in the nine months of 2011.  Domestic gas prices declined 42 percent, from $4.24 per MCF in the nine months of 2011 to $2.47 per MCF in the nine months of 2012.

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Chemicals

Chemical segment earnings were $540 million for the nine months of 2012, compared with $717 million for the same period in 2011.  The reduction was primarily a result of lower export volumes and prices due to the economic conditions in Europe and Asia, partially offset by lower energy and feedstock costs.

Midstream, Marketing and Other

Midstream segment earnings were $364 million for the nine months of 2012, compared with $378 million for the same period in 2011.

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.

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Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
	Third Quarter						Nine Months
($ millions, except per-share amounts)	2012			2011			2012			2011
SEGMENT NET SALES
Oil and Gas	$	4,635		$	4,677		$	14,032		$	13,635
Chemical		1,119			1,231			3,439			3,721
Midstream, Marketing and Other		389			256			1,044			1,109
Eliminations		(178	)		(158	)		(514	)		(560	)
Net Sales	$	5,965		$	6,006		$	18,001		$	17,905
SEGMENT EARNINGS
Oil and Gas  (a)	$	2,026		$	2,612		$	6,573		$	7,704
Chemical		162			245			540			717
Midstream, Marketing and Other		156			77			364			378
		2,344			2,934			7,477			8,799
Unallocated Corporate Items
Interest expense, net (b)		(34	)		(23	)		(87	)		(259	)
Income taxes (c)		(855	)		(1,087	)		(2,869	)		(3,252	)
Other		(76	)		(49	)		(250	)		(289	)
Income from Continuing Operations		1,379			1,775			4,271			4,999
Discontinued operations, net (d)		(4	)		(4	)		(9	)		138
NET INCOME	$	1,375		$	1,771		$	4,262		$	5,137
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.70		$	2.18		$	5.26		$	6.14
Discontinued operations, net		(0.01	)		(0.01	)		(0.01	)		0.17
	$	1.69		$	2.17		$	5.25		$	6.31
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.70		$	2.18		$	5.26		$	6.14
Discontinued operations, net		(0.01	)		(0.01	)		(0.01	)		0.17
	$	1.69		$	2.17		$	5.25		$	6.31
AVERAGE COMMON SHARES OUTSTANDING
BASIC		809.7			812.5			810.1			812.6
DILUTED		810.4			813.2			810.8			813.3
(a) Oil and Gas - The nine months of 2011 include pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to Colombia net worth tax.  Also, included in the nine months of 2011 results is a pre-tax gain for sale of an interest in a Colombia pipeline of $22 million.
(b) Unallocated Corporate Items - Interest Expense, net - The nine months of 2011 include a pre-tax charge of $163 million related to the premium on debt extinguishment.
(c) Unallocated Corporate Items - Taxes - The nine months of 2011 include a net $21 million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The nine months of 2011 include a $144 million after-tax gain from the sale of the Argentine operations.

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Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
	Third Quarter				Nine Months
($ millions)	2012		2011		2012		2011
CAPITAL EXPENDITURES	$	2,591	$	2,011	$	7,716	$	4,969
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	1,149	$	924	$	3,320	$	2,653

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Attachment 3
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Third Quarter				Nine Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil (MBBL)
California		88		80		87		78
Permian		144		133		140		132
Midcontinent and Other		28		17		24		16
Total		260		230		251		226
NGL (MBBL)
California		18		16		16		15
Permian		40		37		39		38
Midcontinent and Other		16		20		18		14
Total		74		73		73		67
Natural Gas (MMCF)
California		247		269		261		254
Permian		151		151		153		153
Midcontinent and Other		414		379		414		357
Total		812		799		828		764
Latin America
Crude Oil  (MBBL) - Colombia		30		27		28		29
Natural Gas (MMCF) - Bolivia		12		15		13		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		4		5		4
Dolphin		7		10		8		10
Oman		69		69		65		68
Qatar		69		73		71		72
Other		34		32		36		39
Total		183		188		185		193
NGL (MBBL)
Dolphin		7		11		9		11
Other		1		-		-		-
Total		8		11		9		11
Natural Gas (MMCF)
Bahrain		237		169		229		171
Dolphin		147		215		171		205
Oman		57		59		57		53
Total		441		443		457		429
Barrels of Oil Equivalent (MBOE)		766		739		762		728

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Attachment 4
SUMMARY OF OPERATING STATISTICS - SALES
	Third Quarter				Nine Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil (MBBL)		259		230		251		226
NGL (MBBL)		74		73		73		67
Natural Gas (MMCF)		807		799		825		764
Latin America
Crude Oil  (MBBL) - Colombia		30		24		28		29
Natural Gas (MMCF) - Bolivia		12		15		13		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		4		4		4
Dolphin		7		9		8		9
Oman		67		71		64		70
Qatar		68		76		70		73
Other		38		35		34		35
Total		184		195		180		191
NGL (MBBL)
Dolphin		8		11		9		11
Natural Gas (MMCF)		441		443		457		429
Barrels of Oil Equivalent (MBOE)		765		743		757		726

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Attachment 5
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
Occidental's results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called "core results," which excludes those items. This non-GAAP measure is not meant to disassociate those items from management's performance, but rather is meant to provide useful information to investors interested in comparing Occidental's earnings performance between periods. Reported earnings are considered representative of management's performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.
	Third Quarter
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	1,375		$	1.69	$	1,771		$	2.17
Oil and Gas
Segment Earnings	$	2,026				$	2,612
Add:
No significant items affecting earnings		-					-
Segment Core Results		2,026					2,612
Chemicals
Segment Earnings		162					245
Add:
No significant items affecting earnings		-					-
Segment Core Results		162					245
Midstream, Marketing and Other
Segment Earnings		156					77
Add:
No significant items affecting earnings		-					-
Segment Core Results		156					77
Total Segment Core Results		2,344					2,934
Corporate
Corporate Results --
Non Segment *		(969	)				(1,163	)
Add:
Discontinued operations, net **		4					4
Corporate Core Results - Non Segment		(965	)				(1,159	)
TOTAL CORE RESULTS	$	1,379		$	1.70	$	1,775		$	2.18
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

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Attachment 6
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
	Nine Months
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	4,262		$	5.25	$	5,137		$	6.31
Oil and Gas
Segment Earnings	$	6,573				$	7,704
Add:
Libya exploration write-off		-					35
Gain on sale of Colombia pipeline interest		-					(22	)
Foreign tax		-					29
Segment Core Results		6,573					7,746
Chemicals
Segment Earnings		540					717
Add:
No significant items affecting earnings		-					-
Segment Core Results		540					717
Midstream, Marketing and Other
Segment Earnings		364					378
Add:
No significant items affecting earnings		-					-
Segment Core Results		364					378
Total Segment Core Results		7,477					8,841
Corporate
Corporate Results --
Non Segment *		(3,215	)				(3,662	)
Add:
Premium on debt extinguishments		-					163
State income tax charge		-					33
Tax effect of pre-tax adjustments		-					(50	)
Discontinued operations, net **		9					(138	)
Corporate Core Results - Non Segment		(3,206	)				(3,654	)
TOTAL CORE RESULTS	$	4,271		$	5.26	$	5,187		$	6.37
*  Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.

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Section 9 - Financial Statements and Exhibits

Item 9.01.  Financial Statements and Exhibits

(d)	Exhibits
99.1	Press release dated October 25, 2012.
99.2	Full text of speeches given by Cynthia L. Walker and Stephen Chazen.
99.3	Investor Relations Supplemental Schedules.
99.4	Earnings Conference Call Slides.
99.5	Forward-Looking Statements Disclosure for Earnings Release Presentation Materials.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	OCCIDENTAL PETROLEUM CORPORATION
	(Registrant)
DATE:  October 25, 2012	/s/ ROY PINECI
	Roy Pineci, Vice President, Controller
	and Principal Accounting Officer

EXHIBIT INDEX

(d)	Exhibits
99.1	Press release dated October 25, 2012.
99.2	Full text of speeches given by Cynthia L. Walker and Stephen Chazen.
99.3	Investor Relations Supplemental Schedules.
99.4	Earnings Conference Call Slides.
99.5	Forward-Looking Statements Disclosure for Earnings Release Presentation Materials.

EX-99.1

EXHIBIT 99.1

For Immediate Release: October 25, 2012

Occidental Petroleum Announces Third Quarter of 2012 Income

● Q3 2012 income from continuing operations of $1.4 billion ($1.70 per diluted share)

● Q3 2012 domestic daily oil and gas production of 469,000 barrels of oil equivalent, a record for the eighth consecutive quarter

LOS ANGELES, October 25, 2012 -- Occidental Petroleum Corporation (NYSE:OXY) announced income from continuing operations of $1.4 billion ($1.70 per diluted share) for the third quarter of 2012, compared with the third quarter of 2011 income from continuing operations of $1.8 billion ($2.18 per diluted share).

In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, "Our third quarter 2012 total company production of 766,000 barrels of oil equivalent per day was 27,000 per day, or 4 percent higher than the third quarter of 2011 production.  Our domestic production of 469,000 barrels of oil equivalent was 8 percent higher than the third quarter of 2011 and was a record for the eighth consecutive quarter.  Our domestic liquids production of 334,000 barrels per day, which was also a record, was 10 percent higher than last year's third quarter.

"Income from continuing operations diluted earnings per share of $1.70 was $0.06 higher than the second quarter of 2012 as a result of higher oil and gas volumes and improved results in the marketing and trading businesses, partially offset by lower oil prices.  We generated cash flow from operations before working capital changes of $9.2 billion for the first nine months of 2012 and invested $7.7 billion in capital expenditures."

Oil and Gas

Oil and gas segment earnings were $2.0 billion for the third quarter of 2012, compared with $2.6 billion for the third quarter of 2011.  Lower product prices and higher costs in the third quarter of 2012 were partially offset by higher oil volumes.

For the third quarter of 2012, daily oil and gas production volumes averaged 766,000 barrels of oil equivalent (BOE), compared with 739,000 BOE in the third quarter of 2011.

The third quarter 2012 production increase resulted from higher volumes of 33,000 BOE per day from domestic operations, partially offset by a decrease in international production.  The international decrease included lower volumes from Dolphin, resulting from the full cost recovery of pre-startup capital, and in Yemen due to the Masila field contract expiration, partially offset by higher volumes from other international operations.

Daily sales volumes increased from 743,000 BOE in the third quarter of 2011 to 765,000 BOE in the third quarter of 2012.

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Oxy’s realized price for worldwide crude oil was $96.62 per barrel for the third quarter of 2012, compared with $97.24 per barrel for the third quarter of 2011. The third quarter of 2012 realized oil price represents 105 percent of the average WTI and 88 percent of the average Brent price for the quarter. Worldwide NGL prices were $40.65 per barrel in the third quarter of 2012, compared with $56.06 per barrel in the third quarter of 2011. Domestic gas prices decreased 41 percent from $4.23 per MCF in the third quarter of 2011 to $2.48 per MCF for the third quarter of 2012.

Third quarter 2012 realized prices were lower than second quarter 2012 prices for worldwide oil and NGLs and were higher for domestic natural gas.  On a sequential quarterly basis, prices decreased 3 percent for worldwide crude oil and NGLs and increased 19 percent for domestic natural gas.

Chemicals

Chemical segment earnings for the third quarter of 2012 were $162 million, compared with $245 million in the third quarter of 2011.  The decrease was the result of lower prices across most product lines, particularly in polyvinyl chloride (PVC) and vinyl chloride monomer (VCM), partially offset by lower natural gas and ethylene costs.

Midstream, Marketing and Other

Midstream segment earnings were $156 million for the third quarter of 2012, compared with $77 million for the third quarter of 2011. The results reflect higher margins in the marketing and trading businesses, partially offset by lower income in the gas processing and pipeline businesses.

NINE-MONTH RESULTS

Core income for the first nine months of 2012 was $4.3 billion ($5.26 per diluted share), compared with $5.2 billion ($6.37 per diluted share) for the same period in 2011.  Cash flow from operations after working capital changes was $8.5 billion.

Oil and Gas

Oil and gas segment earnings were $6.6 billion for the first nine months of 2012, compared with $7.7 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.

Oil and gas production volumes for the nine months were 762,000 BOE per day for 2012, compared with 728,000 BOE per day for the same period in 2011.  Year-over-year, our domestic production increased by nearly 10 percent, while total company production increased by nearly 5 percent.  Dolphin's full cost recovery of pre-startup capital, which reduced our production, was the only operation where production sharing and similar contracts had an appreciable effect.

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The nine-month 2012 production increase resulted from 41,000 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 757,000 BOE in the first nine months of 2012, compared with 726,000 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 $101.20 per barrel for the nine months of 2012, compared with $97.33 per barrel for the nine months of 2011.  Worldwide NGL prices were $45.21 per barrel for the nine months of 2012, compared with $55.63 per barrel in the nine months of 2011.  Domestic gas prices declined 42 percent, from $4.24 per MCF in the nine months of 2011 to $2.47 per MCF in the nine months of 2012.

Chemicals

Chemical segment earnings were $540 million for the nine months of 2012, compared with $717 million for the same period in 2011.  The reduction was primarily a result of lower export volumes and prices due to the economic conditions in Europe and Asia, partially offset by lower energy and feedstock costs.

Midstream, Marketing and Other

Midstream segment earnings were $364 million for the nine months of 2012, compared with $378 million for the same period in 2011.

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 politicaland regulatory approvalconditions; 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",

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"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.

-0-

Contacts:

Melissa E. Schoeb (media)

melissa_schoeb@oxy.com

310-443-6504

or

Chris Stavros (investors)

chris_stavros@oxy.com

212-603-8184

For further analysis of Occidental's quarterly performance, please visit the

website: www.oxy.com

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Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
	Third Quarter						Nine Months
($ millions, except per-share amounts)	2012			2011			2012			2011
SEGMENT NET SALES
Oil and Gas	$	4,635		$	4,677		$	14,032		$	13,635
Chemical		1,119			1,231			3,439			3,721
Midstream, Marketing and Other		389			256			1,044			1,109
Eliminations		(178	)		(158	)		(514	)		(560	)
Net Sales	$	5,965		$	6,006		$	18,001		$	17,905
SEGMENT EARNINGS
Oil and Gas  (a)	$	2,026		$	2,612		$	6,573		$	7,704
Chemical		162			245			540			717
Midstream, Marketing and Other		156			77			364			378
		2,344			2,934			7,477			8,799
Unallocated Corporate Items
Interest expense, net (b)		(34	)		(23	)		(87	)		(259	)
Income taxes (c)		(855	)		(1,087	)		(2,869	)		(3,252	)
Other		(76	)		(49	)		(250	)		(289	)
Income from Continuing Operations		1,379			1,775			4,271			4,999
Discontinued operations, net (d)		(4	)		(4	)		(9	)		138
NET INCOME	$	1,375		$	1,771		$	4,262		$	5,137
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.70		$	2.18		$	5.26		$	6.14
Discontinued operations, net		(0.01	)		(0.01	)		(0.01	)		0.17
	$	1.69		$	2.17		$	5.25		$	6.31
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations	$	1.70		$	2.18		$	5.26		$	6.14
Discontinued operations, net		(0.01	)		(0.01	)		(0.01	)		0.17
	$	1.69		$	2.17		$	5.25		$	6.31
AVERAGE COMMON SHARES OUTSTANDING
BASIC		809.7			812.5			810.1			812.6
DILUTED		810.4			813.2			810.8			813.3
(a) Oil and Gas - The nine months of 2011 include pre-tax charges of $35 million related to exploration write-offs in Libya and $29 million related to Colombia net worth tax.  Also, included in the nine months of 2011 results is a pre-tax gain for sale of an interest in a Colombia pipeline of $22 million.
(b) Unallocated Corporate Items - Interest Expense, net - The nine months of 2011 include a pre-tax charge of $163 million related to the premium on debt extinguishment.
(c) Unallocated Corporate Items - Taxes - The nine months of 2011 include a net $21 million charge for out-of-period state income taxes.
(d) Discontinued Operations, net - The nine months of 2011 include a $144 million after-tax gain from the sale of the Argentine operations.

Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
	Third Quarter				Nine Months
($ millions)	2012		2011		2012		2011
CAPITAL EXPENDITURES	$	2,591	$	2,011	$	7,716	$	4,969
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS	$	1,149	$	924	$	3,320	$	2,653

Attachment 3
SUMMARY OF OPERATING STATISTICS - PRODUCTION
	Third Quarter				Nine Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS PRODUCTION PER DAY
United States
Crude Oil (MBBL)
California		88		80		87		78
Permian		144		133		140		132
Midcontinent and Other		28		17		24		16
Total		260		230		251		226
NGL (MBBL)
California		18		16		16		15
Permian		40		37		39		38
Midcontinent and Other		16		20		18		14
Total		74		73		73		67
Natural Gas (MMCF)
California		247		269		261		254
Permian		151		151		153		153
Midcontinent and Other		414		379		414		357
Total		812		799		828		764
Latin America
Crude Oil  (MBBL) - Colombia		30		27		28		29
Natural Gas (MMCF) - Bolivia		12		15		13		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		4		5		4
Dolphin		7		10		8		10
Oman		69		69		65		68
Qatar		69		73		71		72
Other		34		32		36		39
Total		183		188		185		193
NGL (MBBL)
Dolphin		7		11		9		11
Other		1		-		-		-
Total		8		11		9		11
Natural Gas (MMCF)
Bahrain		237		169		229		171
Dolphin		147		215		171		205
Oman		57		59		57		53
Total		441		443		457		429
Barrels of Oil Equivalent (MBOE)		766		739		762		728

Attachment 4
SUMMARY OF OPERATING STATISTICS - SALES
	Third Quarter				Nine Months
	2012		2011		2012		2011
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil (MBBL)		259		230		251		226
NGL (MBBL)		74		73		73		67
Natural Gas (MMCF)		807		799		825		764
Latin America
Crude Oil  (MBBL) - Colombia		30		24		28		29
Natural Gas (MMCF) - Bolivia		12		15		13		16
Middle East / North Africa
Crude Oil (MBBL)
Bahrain		4		4		4		4
Dolphin		7		9		8		9
Oman		67		71		64		70
Qatar		68		76		70		73
Other		38		35		34		35
Total		184		195		180		191
NGL (MBBL)
Dolphin		8		11		9		11
Natural Gas (MMCF)		441		443		457		429
Barrels of Oil Equivalent (MBOE)		765		743		757		726

Attachment 5
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
Occidental's results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called "core results," which excludes those items. This non-GAAP measure is not meant to disassociate those items from management's performance, but rather is meant to provide useful information to investors interested in comparing Occidental's earnings performance between periods. Reported earnings are considered representative of management's performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.
	Third Quarter
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	1,375		$	1.69	$	1,771		$	2.17
Oil and Gas
Segment Earnings	$	2,026				$	2,612
Add:
No significant items affecting earnings		-					-
Segment Core Results		2,026					2,612
Chemicals
Segment Earnings		162					245
Add:
No significant items affecting earnings		-					-
Segment Core Results		162					245
Midstream, Marketing and Other
Segment Earnings		156					77
Add:
No significant items affecting earnings		-					-
Segment Core Results		156					77
Total Segment Core Results		2,344					2,934
Corporate
Corporate Results --
Non Segment *		(969	)				(1,163	)
Add:
Discontinued operations, net **		4					4
Corporate Core Results - Non Segment		(965	)				(1,159	)
TOTAL CORE RESULTS	$	1,379		$	1.70	$	1,775		$	2.18
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

Attachment 6
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
	Nine Months
($ millions, except per-share amounts)	2012			Diluted EPS		2011			Diluted EPS
TOTAL REPORTED EARNINGS	$	4,262		$	5.25	$	5,137		$	6.31
Oil and Gas
Segment Earnings	$	6,573				$	7,704
Add:
Libya exploration write-off		-					35
Gain on sale of Colombia pipeline interest		-					(22	)
Foreign tax		-					29
Segment Core Results		6,573					7,746
Chemicals
Segment Earnings		540					717
Add:
No significant items affecting earnings		-					-
Segment Core Results		540					717
Midstream, Marketing and Other
Segment Earnings		364					378
Add:
No significant items affecting earnings		-					-
Segment Core Results		364					378
Total Segment Core Results		7,477					8,841
Corporate
Corporate Results --
Non Segment *		(3,215	)				(3,662	)
Add:
Premium on debt extinguishments		-					163
State income tax charge		-					33
Tax effect of pre-tax adjustments		-					(50	)
Discontinued operations, net **		9					(138	)
Corporate Core Results - Non Segment		(3,206	)				(3,654	)
TOTAL CORE RESULTS	$	4,271		$	5.26	$	5,187		$	6.37
*  Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.

EX-99.2

EXHIBIT 99.2

Occidental Petroleum Corporation

CYNTHIA L. WALKER

Executive Vice President and Chief Financial Officer

– Conference Call –

Third Quarter 2012 Earnings Announcement

October 25, 2012

Los Angeles, California

Thank you Chris.

Income from continuing operations was $1.4 billion or $1.70 per diluted share in the third quarter of 2012, compared to $1.8 billion or $2.18 per diluted share in the third quarter of 2011 and $1.3 billion or $1.64 per diluted share in the second quarter of 2012.

The third quarter income from continuing operations improved $0.06 per diluted share from the second quarter of 2012.  The improvement reflected higher margins in the marketing and trading businesses, partially offset by lower earnings in the chemical segment.  In the oil and gas business, the effect of higher liquids production and domestic gas prices was partially offset by the impact of a 3 percent decline in realized worldwide crude oil prices.

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Here’s the segment breakdown for the third quarter.

Oil and gas segment earnings for the third quarter of 2012 were $2.0 billion, compared with $2.0 billion in the second quarter of 2012 and $2.6 billion in the third quarter of 2011.

The third quarter 2012 total daily production was 766,000 barrels, flat with the record set by the company in the second quarter of 2012, and up 4 percent from the third quarter of 2011.

● Our domestic production was 469,000 barrels per day, an increase of 7,000 barrels from the second quarter of 2012 and the eighth consecutive quarterly domestic volume record for the company.  Production was 8 percent higher than the third quarter of 2011.  Almost all of the sequential quarterly increase came from the Permian and Williston Basins.  California production was higher in liquids but flat on a BOE basis with the second quarter, mainly due to lower gas volumes associated with the initial start-up issues of the new gas plant.  These issues were resolved mid-quarter although the positive effect of the plant on overall third quarter production was limited. California's current production run rate is approximately 150,000 barrels per day.

● Latin America volumes were 32,000 barrels per day.

● In the Middle East region, volumes were 265,000 barrels per day.  I will note meaningful sequential changes in Qatar production.  Details regarding other country-specific production levels are available as usual in the Investor Relations Supplemental Schedules we provide.  Dolphin's production was 13,000 barrels per day lower than the second quarter resulting from the full cost recovery of pre-startup capital, as we noted last quarter.  Qatar's

2

	production was also impacted by a facility outage in August, which reduced production by 5,000 barrels per day.  The outage was subsequently resolved.  The rest of the Middle East partially offset these decreases in part due to higher spending levels.  Factors affecting production sharing and similar contracts, including oil prices, did not significantly impact this quarter’s production volumes compared to the third quarter of 2011 or the second quarter of 2012.
●	Third quarter 2012 realized prices were mixed for our products compared to the second quarter of the year.  Our worldwide crude oil realized price was $96.62 per barrel, a decrease of about 3 percent; worldwide NGLs were $40.65 per barrel, also a decrease of about 3 percent from the second quarter; while domestic natural gas prices were $2.48 per MCF, an improvement of 19 percent.  The change in worldwide crude oil realized price was primarily due to the mix of sales volumes in the third quarter.
●	Third quarter 2012 realized prices were lower than third quarter 2011 prices for all our products.  On a year-over-year basis, price decreases were one percent for worldwide crude oil, 27 percent for worldwide NGLs and 41 percent for domestic natural gas.
●	Realized oil prices for the quarter represented 105 percent of the average WTI and 88 percent of the average Brent price.  Realized NGL prices were 44 percent of the average WTI and realized domestic gas prices were 90 percent of the average NYMEX price.
●	Price changes at current global prices affect our quarterly earnings before income taxes by $36 million for a $1.00 per barrel change in oil prices and $8 million for a $1.00 per barrel change in NGL

3

	prices.  A swing of 50 cents per million BTUs in domestic gas prices affects quarterly pre-tax earnings by about $35 million.  These price change sensitivities include the impact of production-sharing and similar contract volume changes on income.
●	Oil and gas production costs were $15.00 per barrel for the first nine months of 2012, compared with $12.84 per barrel for the full year 2011.  The cost increase reflects higher well maintenance activity, in part reflecting our higher well count, higher workover activity and higher support and injection costs.
●	Taxes other than on income, which are generally related to product prices, were $2.43 per barrel for the first nine months of 2012, compared with $2.21 per barrel for the full year of 2011.
●	Third quarter exploration expense was $69 million.

Chemical segment earnings for the third quarter of 2012 were $162 million, compared to $194 million in the second quarter of 2012 and $245 million for the third quarter of 2011.  Both the sequential quarterly and year-over-year declines were due to lower Asian market demand that drove export prices lower, partially offset by lower ethylene costs.

Midstream segment earnings were $156 million for the third quarter of 2012, compared to $77 million in the second quarter of 2012 and in the third quarter of 2011.  The 2012 quarterly increase in earnings was in the marketing and trading businesses and power generation, partially offset by lower margins in the gas plants, reflecting lower NGL prices.

The worldwide effective tax rate was 38 percent for the third quarter of 2012.  The lower rate compared to our guidance was attributable to a shift in the mix of income toward domestic.  Our third quarter U.S. and foreign tax rates are included in the Investor Relations Supplemental Schedules.

4

In the first nine months of 2012, we generated $9.2 billion of cash flow from operations before working capital changes.  Working capital reduced our nine-month cash flow from operations by approximately $660 million to $8.5 billion.  Approximately $510 million of the working capital use occurred in the third quarter.  Capital expenditures for the first nine months of 2012 were $7.7 billion, of which $2.6 billion was spent in the third quarter.  Year-to-date capital expenditures by segment were 82 percent in oil and gas, 14 percent in midstream and the remainder in chemicals.  Acquisitions for the first nine months of 2012 were $1.2 billion, of which $100 million was spent in the third quarter.  Financial activities, which included dividends paid, stock buybacks and a $1.74 billion borrowing earlier this year, provided a net $300 million of cash flow.  These and other net cash flows resulted in a $3.8 billion cash balance at September 30.

The weighted-average basic shares outstanding for the first nine months of 2012 were 810.1 million and the weighted-average diluted shares outstanding were 810.8 million.  Diluted shares outstanding at the end of the quarter were approximately 810.1 million.

Our debt-to-capitalization ratio was 16 percent.

Copies of the press release announcing our third quarter earnings and the Investor Relations Supplemental Schedules are available on our website at www.oxy.com or through the SEC’s EDGAR system.

5

I will now turn the call over to Steve Chazen to discuss an update on our operations and strategy and provide guidance for the fourth quarter of the year.

____________________

Throughout this presentation, barrels may refer to barrels of oil, barrels of liquids or barrels of oil equivalents or BOE, which include natural gas, as the context requires.

6

Occidental Petroleum Corporation

STEPHEN CHAZEN

President and Chief Executive Officer

– Conference Call –

Third Quarter 2012 Earnings Guidance

October 25, 2012

Los Angeles, California

Thank you Cynthia.

Occidental’s domestic oil and gas segment produced record volumes for the eighth consecutive quarter and continued to execute on our liquids production growth strategy.  The third quarter domestic production of 469,000 barrel equivalents per day, consisting of 334,000 barrels of liquids and 812 million cubic feet per day of gas, was an increase of 7,000 barrel equivalents per day compared to the second quarter of 2012.  The increase in the domestic production over the second quarter 2012 was almost entirely in oil, which grew from 249,000 barrels a day to 260,000.  Gas production declined 28 million cubic feet per day on a sequential quarterly basis, mainly in California, some of which was due to the initial start-up issues of the new gas plant that Cynthia mentioned.  Compared to the third quarter of 2011, our domestic production grew by 8 percent, or 33,000 barrels a day, of which 30,000 was oil production growth.

Our annualized return on equity for the first nine months of 2012 was 15 percent and return on capital employed was 13 percent.

7

Strategy and Operations Review

As we near the end of 2012, I want to take this opportunity to reflect on our strategy, our progress and our future.

As a Company, we continue to have three main objectives:  generate rates of return on invested capital significantly in excess of our cost of capital, achieve moderate growth of the business and deliver continued dividend growth.  With regard to returns, we don't believe that a depleting or shrinking business can maintain high rates of return.  One can reduce spending to achieve short term higher returns, but these returns would not be sustainable as the Company would deplete.  Our business model is to balance the need for growth of the business while maintaining attractive returns.  We are currently in an investing phase in many of our businesses where higher than normal portion of our capital is spent on longer-term projects.  This year, we expect to spend approximately 25 percent of our total capital expenditures on future growth projects that will contribute to our operations over the next several years.  These expenditures include capital for the Al Hosn Shah gas project which is expected to start production in late 2014; capital for gas and CO2 processing plants and pipelines to maintain or expand the capacity of these facilities to handle future production increases; part of the capital for the chemical segment; and other items.

In our oil and gas business, we have built a portfolio of assets that allows us to execute this strategy.  Domestically and internationally, we have a mix of both higher return assets and higher growth assets.  Importantly, many of our higher growth assets are relatively early in their development, although we have already experienced meaningful success.  In the U.S., our Permian CO2 operation continues to be our most profitable business,

8

generating the highest free cash flow after capital among our entire portfolio of assets.  In contrast, our Permian non-CO2 business is one of the fastest growing assets in our entire portfolio.  Since we began significant delineation and development efforts in 2010, we have grown production by over 25 percent.  As a result of the significant activity by us and our partners, our Permian acreage where we believe resource development is likely, has grown from our estimate of about 3 million gross acres earlier in the year to about 4.8 million acres in October.  Oxy's net share of this acreage grew from about 1 million acres to about 1.7 million acres during the same period.  The attached Conference Call Presentation Slide shows our current acreage position in the Permian.

In California, we have a very large acreage position with diverse geologic characteristics and numerous reservoir targets.  As a result, development opportunities range from conventional to steam floods, water floods and shales.  The drilling costs and expected ultimate recoveries (EURs) also vary for each.

In mid-2010, we shifted our development program to conventional and unconventional opportunities outside of the traditional and more mature Elk Hills areas.  As a result, we have experienced strong production growth in these new areas although traditional Elk Hills has experienced some decline.  As you can see on the attached Conference Call Presentation Slide, traditional Elk Hills liquids production dropped from 41,000 barrels per day in the fourth quarter of 2010 to 37,000 in the third quarter of 2012.  Liquids production growth in the rest of California more than offset this decline during the same period, growing from 49,000 barrels per day to 69,000.  Traditional Elk Hills gas production declined from 22,000 equivalent barrels per day to 19,000 during the same period, which was mostly offset by an

9

increase in gas production in the rest of California from 21,000 equivalent barrels per day to 23,000.

Recently, we further modified our programs to emphasize oil production in light of depressed gas and associated liquids prices.  As a result, gas production in all of California declined in the third quarter of this year.  Total California production growth on a BOE basis is slower than we thought it would be, in part due to the Elk Hills decline, permitting issues and more recently low gas prices.  On a positive note, overall performance of the new resources has been consistent with expectations, including our unconventional opportunities for which well performance is similar to the type curves we showed you a couple of years ago.  I would also note that over the last several years we have spent $370 million on the new Elk Hills gas plant.  The plant went into operation in early July and, notwithstanding initial startup issues, is positively affecting our operational efficiency and production including higher liquids yields.  The plant operated optimally for about one month last quarter and has been operating as expected since.

We will continue our focus on higher return, low cost opportunities in California, and as I mentioned, this is a very diverse opportunity set.  For example, one of the projects we haven't talked about much in the past is a major steam flood project in Lost Hills, where we expect to achieve significant production growth to about 15,000 barrels per day in several years from the current 4,000 per day rate.  Total oil in place in Lost Hills is estimated to be about 500 million barrels.  Using reasonable assumptions, we expect to recover over 50 million barrels net to Oxy.  Our drilling costs in this area average in the low $200,000's per well and we expect to bring this average cost down over time.

10

In the Williston basin in North Dakota, we currently have over 310,000 net acres with significant resource potential, which we estimate to be about 250 million net barrels.  Our production in the basin has tripled since we entered the area over a year and a half ago.  We have recently slowed our drilling activity and significantly reduced our rig count in the basin as a result of cost pressures.  While well costs have subsequently declined modestly, we will only increase our rig count when costs come down enough to make returns competitive with the rest of our portfolio.  We believe over the long-term, the total resource base in the Williston basin represents a significant opportunity for the Company.

In the Mid-Continent, including our assets in South Texas, we have significantly reduced our gas directed drilling.  However, we could ramp up our gas production rapidly and meaningfully if prices for gas and associated liquids improved from their current levels on a sustained basis.

Internationally, our most significant businesses are in the Middle East region where our operations are characterized by limited duration contracts with high rates of return on invested capital during the contract term.  Our primary focus in the Middle East is the United Arab Emirates (UAE), Oman and Qatar, which includes Dolphin.   Most of our international capital is allocated to these countries and we derive a very substantial portion of our international earnings and free cash flow after capital from Qatar and Oman.  Going forward, the UAE, where we are developing the Al Hosn gas project, also is expected to make a significant contribution to earnings and free cash flow.

11

The Al Hosn gas project is approximately 61 percent complete and is progressing as planned. This project made up about 11 percent of our total capital program for the first nine months of 2012.  While capital spending is running higher for 2012 than our initially anticipated levels, total development capital for the project is expected to be in line with previous estimates.  Currently, the Al Hosn project is consuming sizeable amounts of capital during its development phase.  We expect to see a significant shift in late 2014 when this project changes from being a cash consumer to a cash generator.  Once the project becomes operational, early free cash flow should approximate $600 million annually at roughly current oil prices and conservative sulfur prices.  The project has the potential for additional production in later years which would significantly increase its cash flow.  We are going to spend approximately $1.2 billion on the Al Hosn project this year.  Once the project becomes operational, our free cash flow should increase by the difference between cash consumption and generation.  Based on our 2012 capital spend for the project, this would equate to a $1.8 billion increase in cash flow.

Lastly, we are focused on improving returns through a comprehensive effort to reduce operating expenses and improve capital efficiency.  As we have indicated in the past, our operating costs have been increasing for some time for a variety of reasons including industry inflation, our desire to take advantage of high product prices by accelerating production through workovers, which pay for themselves over a short period of time, and our rapid recent growth, which causes some short-term inefficiencies.  We are embarking on an aggressive plan to improve our operational efficiency across all cost categories, including capital, with a view to achieve an appreciable reduction in our operating expenses and drilling costs to at least

12

last year's levels.  We believe we will start seeing the benefit of this plan clearly in the first quarter of 2013 and achieve last year's cost levels by the end of next year on a run rate basis.  Several initiatives have already begun and we are seeing strong early results.  For example, during the third quarter, we reduced our drilling costs by over 15% in parts of Elk Hills.  Our goal next year is to reduce well costs by about this amount for the entire business.

Capital Program

I will now turn to guidance for the fourth quarter.

Our fourth quarter capital spending will slow from the third quarter level to a run rate that we believe will be in line with next year's total capital program.  Our intention was to reduce capital meaningfully starting in the third quarter.  However, this would have resulted in inefficiencies in areas where we have seen positive results, such as the Permian, parts of California and Oman.

As we discussed in prior quarters, we are sharply reducing our pure gas drilling and have more recently cut back our drilling in certain liquid rich gas areas as well.  We are also in the process of eliminating our less productive rigs to improve our returns.  Our focus on higher-return oil drilling will result in a decline in our gas and, to a lesser extent, associated NGL production in the future.

13

Production

Turning to production expectations in the fourth quarter:

● Over the past year, we have achieved our goal of increasing domestic production by 6,000 to 8,000 barrels equivalent per day quarter-over-quarter.  We expect our fourth quarter oil production to grow by about this much.  However, the expected decline in gas production resulting from the change in our capital program focus I discussed earlier may offset some of the increased oil production on an equivalent barrels basis.

● Internationally, at current prices we expect production to be approximately flat with the third quarter, while sales volumes increase slightly.

Additionally -

● We expect fourth quarter exploration expense to be about $100 million for seismic and drilling in our exploration programs.

● The fourth quarter is typically the chemical segment's weakest quarter.  We estimate fourth quarter earnings will be about $140 million, or slightly lower than the third quarter.  Along with seasonal factors, weak global demand from the European and Asian economies and rising natural gas costs will keep pressure on margins.

● We expect our combined worldwide tax rate in the fourth quarter of 2012 to increase to about 40 to 41 percent.

14

In closing, we believe we have a deep portfolio of development opportunities that will allow us to continue to deliver returns that are 5 to 6 percentage points above our cost of capital.  Total return to our shareholders is the combination of appreciation in stock price and dividends. We have long believed that the job of management is to convert earnings that are retained into stock market value.  For example, if we retain $1 billion we should be able to give the shareholders at least a $1 billion increase in the market value of the company.  Historically, we have generated closer to $1.50 in value for every dollar we kept.  This is a challenging proposition over time as the company continues to grow.  An old Wall Street maxim is that the market is a voting machine over the short term but a weighing machine over time.  We hope that this is true as we firmly believe that our program of investing on a longer than usual (for us) time frame will reap rewards for our shareholders.  If for some reason, our investment plans do not generate acceptable stock market results over a period of time, we will return more of our retained earnings to our shareholders.  

We have increased our dividends at a compounded annual rate of 15.8 percent over the last 10 years through 11 dividend increases.  We expect to increase our dividends again next year and in the future at a rate that would maximize returns to our stockholders.

Now we're ready to take your questions.

____________________

Throughout this presentation, barrels may refer to barrels of oil, barrels of liquids or barrels of oil equivalents or BOE, which includes natural gas, as the context requires.

15

Occidental Petroleum Corporation
Return on Capital Employed (ROCE)
Reconciliation to Generally Accepted Accounting Principles (GAAP)
	2012
RETURN ON CAPITAL EMPLOYED (%)	12.6
GAAP measure - net income	4,262
Interest expense	87
Tax effect of interest expense	(30	)
Earnings before tax-effected interest expense	4,319
GAAP stockholders' equity	40,474
Debt	7,622
Total capital employed	48,096
ROCE - Annualized for the nine months of September 30, 2012	12.6

ROCE-ROE

EX-99.3

EXHIBIT 99.3

Investor Relations Supplemental Schedules

Investor Relations Supplemental Schedules
Summary
($ Millions, except per share amounts)
	3Q 2012	3Q 2011
Core Results	$1,379	$1,775
EPS - Diluted	$1.70	$2.18
Reported Net Income	$1,375	$1,771
EPS - Diluted	$1.69	$2.17
Total Worldwide Sales Volumes (mboe/day)	765	743
Total Worldwide Production Volumes (mboe/day)	766	739
Total Worldwide Crude Oil Realizations ($/BBL)	$96.62	$97.24
Total Worldwide NGL Realizations ($/BBL)	$40.65	$56.06
Domestic Natural Gas Realizations ($/MCF)	$2.48	$4.23
Wtd. Average Basic Shares O/S (mm)	809.7	812.5
Wtd. Average Diluted Shares O/S (mm)	810.4	813.2
	YTD 2012	YTD 2011
Core Results	$4,271	$5,187
EPS - Diluted	$5.26	$6.37
Reported Net Income	$4,262	$5,137
EPS - Diluted	$5.25	$6.31
Total Worldwide Sales Volumes (mboe/day)	757	726
Total Worldwide Production Volumes (mboe/day)	762	728
Total Worldwide Crude Oil Realizations ($/BBL)	$101.20	$97.33
Total Worldwide NGL Realizations ($/BBL)	$45.21	$55.63
Domestic Natural Gas Realizations ($/MCF)	$2.47	$4.24
Wtd. Average Basic Shares O/S (mm)	810.1	812.6
Wtd. Average Diluted Shares O/S (mm)	810.8	813.3
Shares Outstanding (mm)	810.2	811.8
Cash Flow from Operations	$     8,500	$     8,600

1

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2012 Third Quarter
Net Income (Loss)
($ millions, except per share amounts)
	Reported						Core
	Income			Significant Items Affecting Income			Results
Oil & Gas	$	2,026					$	2,026
Chemical		162						162
Midstream, marketing and other		156						156
Corporate
Interest expense, net		(34	)					(34	)
Other		(76	)					(76	)
Taxes		(855	)					(855	)
Income from continuing operations		1,379			-			1,379
Discontinued operations, net of tax		(4	)		4	Discontinued operations, net		-
Net Income	$	1,375		$	4		$	1,379
Basic Earnings Per Common Share
Income from continuing operations	$	1.70
Discontinued operations, net		(0.01	)
Net Income	$	1.69					$	1.70
Diluted Earnings Per Common Share
Income from continuing operations	$	1.70
Discontinued operations, net		(0.01	)
Net Income	$	1.69					$	1.70

2

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2011 Third Quarter
Net Income (Loss)
($ millions, except per share amounts)
	Reported						Core
	Income			Significant Items Affecting Income			Results
Oil & Gas	$	2,612					$	2,612
Chemical		245						245
Midstream, marketing and other		77						77
Corporate
Interest expense, net		(23	)					(23	)
Other		(49	)					(49	)
Taxes		(1,087	)					(1,087	)
Income from continuing operations		1,775			-			1,775
Discontinued operations, net of tax		(4	)		4	Discontinued operations, net		-
Net Income	$	1,771		$	4		$	1,775
Basic Earnings Per Common Share
Income from continuing operations	$	2.18
Discontinued operations, net		(0.01	)
Net Income	$	2.17					$	2.18
Diluted Earnings Per Common Share
Income from continuing operations	$	2.18
Discontinued operations, net		(0.01	)
Net Income	$	2.17					$	2.18

3

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2012 Nine Months
Net Income (Loss)
($ millions, except per share amounts)
	Reported						Core
	Income			Significant Items Affecting Income			Results
Oil & Gas	$	6,573					$	6,573
Chemical		540						540
Midstream, marketing and other		364						364
Corporate
Interest expense, net		(87	)					(87	)
Other		(250	)					(250	)
Taxes		(2,869	)					(2,869	)
Income from continuing operations		4,271			-			4,271
Discontinued operations, net of tax		(9	)		9	Discontinued operations, net		-
Net Income	$	4,262		$	9		$	4,271
Basic Earnings Per Common Share
Income from continuing operations	$	5.26
Discontinued operations, net		(0.01	)
Net Income	$	5.25					$	5.26
Diluted Earnings Per Common Share
Income from continuing operations	$	5.26
Discontinued operations, net		(0.01	)
Net Income	$	5.25					$	5.26

4

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2011 Nine Months
Net Income (Loss)
($ millions, except per share amounts)
	Reported							Core
	Income			Significant Items Affecting Income				Results
Oil & Gas	$	7,704		$	35		Libya exploration write-off	$	7,746
					(22	)	Gain on sale of Colombia pipeline interest
					29		Foreign tax
Chemical		717							717
Midstream, marketing and other		378							378
Corporate
Interest expense, net		(259	)		163		Premium on debt extinguishments		(96	)
Other		(289	)						(289	)
Taxes		(3,252	)		(50	)	Tax effect of adjustments		(3,269	)
					33		State income tax charge
Income from continuing operations		4,999			188				5,187
Discontinued operations, net of tax		138			(138	)	Discontinued operations, net		-
Net Income	$	5,137		$	50			$	5,187
Basic Earnings Per Common Share
Income from continuing operations	$	6.14
Discontinued operations, net		0.17
Net Income	$	6.31						$	6.37
Diluted Earnings Per Common Share
Income from continuing operations	$	6.14
Discontinued operations, net		0.17
Net Income	$	6.31						$	6.37

5

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
	QUARTERLY						YEAR-TO-DATE
	2012		2012		2011		2012		2011
REPORTED INCOME	QTR 3		QTR 2		QTR 3		9 Months		9 Months
Oil & Gas	2,026		2,043		2,612		6,573		7,704
Chemical	162		194		245		540		717
Midstream, marketing and other	156		77		77		364		378
Corporate & other	(110	)	(107	)	(72	)	(337	)	(548	)
Pre-tax income	2,234		2,207		2,862		7,140		8,251
Income tax expense
Federal and state	286		254		433		986		1,360
Foreign	569		621		654		1,883		1,892
Total	855		875		1,087		2,869		3,252
Income from continuing operations	1,379		1,332		1,775		4,271		4,999
Worldwide effective tax rate	38%		40%		38%		40%		39%
	2012		2012		2011		2012		2011
CORE RESULTS	QTR 3		QTR 2		QTR 3		9 Months		9 Months
Oil & Gas	2,026		2,043		2,612		6,573		7,746
Chemical	162		194		245		540		717
Midstream, marketing and other	156		77		77		364		378
Corporate & other	(110	)	(107	)	(72	)	(337	)	(385	)
Pre-tax income	2,234		2,207		2,862		7,140		8,456
Income tax expense
Federal and state	286		254		433		986		1,390
Foreign	569		621		654		1,883		1,879
Total	855		875		1,087		2,869		3,269
Core results	1,379		1,332		1,775		4,271		5,187
Worldwide effective tax rate	38%		40%		38%		40%		39%

6

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2012 Third Quarter Net Income (Loss)
Reported Income Comparison
	Third			Second
	Quarter			Quarter
	2012			2012			B / (W)
Oil & Gas	$	2,026		$	2,043		$	(17	)
Chemical		162			194			(32	)
Midstream, marketing and other		156			77			79
Corporate
Interest expense, net		(34	)		(25	)		(9	)
Other		(76	)		(82	)		6
Taxes		(855	)		(875	)		20
Income from continuing operations		1,379			1,332			47
Discontinued operations, net		(4	)		(4	)		-
Net Income	$	1,375		$	1,328		$	47
Earnings Per Common Share
Basic	$	1.69		$	1.64		$	0.05
Diluted	$	1.69		$	1.64		$	0.05
Worldwide Effective Tax Rate		38%			40%			2%
OCCIDENTAL PETROLEUM
2012 Third Quarter Net Income (Loss)
Core Results Comparison
	Third			Second
	Quarter			Quarter
	2012			2012			B / (W)
Oil & Gas	$	2,026		$	2,043		$	(17	)
Chemical		162			194			(32	)
Midstream, marketing and other		156			77			79
Corporate
Interest expense, net		(34	)		(25	)		(9	)
Other		(76	)		(82	)		6
Taxes		(855	)		(875	)		20
Core Results	$	1,379		$	1,332		$	47
Core Results Per Common Share
Basic	$	1.70		$	1.64		$	0.06
Diluted	$	1.70		$	1.64		$	0.06
Worldwide Effective Tax Rate		38%			40%			2%

7

Investor Relations Supplemental Schedules

8

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
2012 Third Quarter Net Income (Loss)
Reported Income Comparison
	Third			Third
	Quarter			Quarter
	2012			2011			B / (W)
Oil & Gas	$	2,026		$	2,612		$	(586	)
Chemical		162			245			(83	)
Midstream, marketing and other		156			77			79
Corporate
Interest expense, net		(34	)		(23	)		(11	)
Other		(76	)		(49	)		(27	)
Taxes		(855	)		(1,087	)		232
Income from continuing operations		1,379			1,775			(396	)
Discontinued operations, net		(4	)		(4	)		-
Net Income	$	1,375		$	1,771		$	(396	)
Earnings Per Common Share
Basic	$	1.69		$	2.17		$	(0.48	)
Diluted	$	1.69		$	2.17		$	(0.48	)
Worldwide Effective Tax Rate		38%			38%			0%
OCCIDENTAL PETROLEUM
2012 Third Quarter Net Income (Loss)
Core Results Comparison
	Third			Third
	Quarter			Quarter
	2012			2011			B / (W)
Oil & Gas	$	2,026		$	2,612		$	(586	)
Chemical		162			245			(83	)
Midstream, marketing and other		156			77			79
Corporate
Interest expense, net		(34	)		(23	)		(11	)
Other		(76	)		(49	)		(27	)
Taxes		(855	)		(1,087	)		232
Core Results	$	1,379		$	1,775		$	(396	)
Core Results Per Common Share
Basic	$	1.70		$	2.18		$	(0.48	)
Diluted	$	1.70		$	2.18		$	(0.48	)
Worldwide Effective Tax Rate		38%			38%			0%

9

Investor Relations Supplemental Schedules

10

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
		Third Quarter		Nine Months
		2012	2011	2012	2011
NET PRODUCTION PER DAY:
United States
Crude Oil (MBBL)
California		88	80	87	78
Permian		144	133	140	132
Midcontinent and other		28	17	24	16
	Total	260	230	251	226
NGL (MBBL)
California		18	16	16	15
Permian		40	37	39	38
Midcontinent and other		16	20	18	14
	Total	74	73	73	67
Natural Gas (MMCF)
California		247	269	261	254
Permian		151	151	153	153
Midcontinent and other		414	379	414	357
	Total	812	799	828	764
Latin America
Crude Oil (MBBL)	Colombia	30	27	28	29
Natural Gas (MMCF)	Bolivia	12	15	13	16
Middle East / North Africa
Crude Oil (MBBL)
	Bahrain	4	4	5	4
	Dolphin	7	10	8	10
	Oman	69	69	65	68
	Qatar	69	73	71	72
	Other	34	32	36	39
	Total	183	188	185	193
NGL (MBBL)	Dolphin	7	11	9	11
	Other	1	-	-	-
	Total	8	11	9	11
Natural Gas (MMCF)
	Bahrain	237	169	229	171
	Dolphin	147	215	171	205
	Oman	57	59	57	53
	Total	441	443	457	429
Barrels of Oil Equivalent (MBOE)		766	739	762	728

11

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
		Third Quarter		Nine Months
		2012	2011	2012	2011
NET SALES VOLUMES PER DAY:
United States
Crude Oil (MBBL)		259	230	251	226
NGL (MBBL)		74	73	73	67
Natural Gas (MMCF)		807	799	825	764
Latin America
Crude Oil (MBBL)		30	24	28	29
Natural Gas (MMCF)		12	15	13	16
Middle East / North Africa
Crude Oil (MBBL)
	Bahrain	4	4	4	4
	Dolphin	7	9	8	9
	Oman	67	71	64	70
	Qatar	68	76	70	73
	Other	38	35	34	35
	Total	184	195	180	191
NGL (MBBL)	Dolphin	8	11	9	11
Natural Gas (MMCF)		441	443	457	429
Barrels of Oil Equivalent (MBOE)		765	743	757	726

12

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
	Third Quarter				Nine Months
	2012		2011		2012		2011
OIL & GAS:
PRICES
United States
Crude Oil ($/BBL)		91.97		89.78		95.83		92.19
NGL ($/BBL)		41.66		59.73		46.60		59.18
Natural gas ($/MCF)		2.48		4.23		2.47		4.24
Latin America
Crude Oil ($/BBL)		95.04		91.01		98.50		95.85
Natural Gas ($/MCF)		12.13		11.21		11.93		9.64
Middle East / North Africa
Crude Oil ($/BBL)		103.46		106.97		109.22		103.74
NGL ($/BBL)		30.89		31.60		33.61		32.98
Total Worldwide
Crude Oil ($/BBL)		96.62		97.24		101.20		97.33
NGL ($/BBL)		40.65		56.06		45.21		55.63
Natural Gas ($/MCF)		1.97		3.12		1.97		3.09
	Third Quarter				Nine Months
	2012		2011		2012		2011
Exploration Expense
United States	$	44	$	34	$	186	$	133
Latin America		-		1		1		1
Middle East / North Africa		25		4		76		51
TOTAL REPORTED	$	69	$	39	$	263	$	185
Less - non-core impairments		-		-		-		(35	)
TOTAL CORE	$	69	$	39	$	263	$	150

13

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
		Third Quarter				Nine Months
Capital Expenditures ($MM)		2012		2011		2012		2011
Oil & Gas
California		$	544	$	481	$	1,647	$	1,202
Permian			559		308		1,496		761
Midcontinent and other			278		311		1,120		725
Latin America			76		52		185		139
Middle East  / North Africa			520		338		1,378		993
Exploration			160		115		514		291
Chemical			75		59		192		118
Midstream, marketing and other			364		331		1,118		701
Corporate			15		16		66		39
	TOTAL	$	2,591	$	2,011	$	7,716	$	4,969
Depreciation, Depletion &		Third Quarter				Nine Months
Amortization of Assets ($MM)		2012		2011		2012		2011
Oil & Gas
Domestic		$	613	$	448	$	1,784	$	1,265
Latin America			31		18		86		67
Middle East  / North Africa			356		324		1,019		920
Chemical			87		82		257		249
Midstream, marketing and other			55		45		154		134
Corporate			7		7		20		18
	TOTAL	$	1,149	$	924	$	3,320	$	2,653

14

Investor Relations Supplemental Schedules

OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
	30-Sep-12			31-Dec-11
CAPITALIZATION
Long-Term Debt (including short-term borrowings)		$	7,622		$	5,871
EQUITY		$	40,474		$	37,620
Total Debt To Total Capitalization			16%			13%

15

EX-99.4

    ex99_4-20121025.htm
    
    
    

EX-99.5

    ex99_5-20121025.htm