Derivatives (Tables)

9 Months Ended

Sep. 30, 2017

Derivatives

Gross and net fair values of outstanding derivatives

The following tables presents the gross and net fair values of Occidental’s outstanding derivatives as of September 30, 2017, and December 31, 2016 (in millions):

As of September 30, 2017		Fair Value Measurements Using						Netting (b)			Total Fair Value
(in millions)	(Commodity Contracts)	Level 1		Level 2		Level 3
Assets:
Cash-flow hedges: (a)
Other current assets		$	—	$	1	$	—	$	—		$	1
Long-term receivables and other assets, net		$	—	$	—	$	—	$	—		$	—
Derivatives not designated as hedging instruments: (a)
Other current assets		$	345	$	61	$	—	$	(387	)	$	19
Long-term receivables and other assets, net		$	29	$	2	$	—	$	(29	)	$	2
Liabilities:
Cash-flow hedges: (a)
Accrued liabilities		$	—	$	—	$	—	$	—		$	—
Deferred credits and liabilities		$	—	$	—	$	—	$	—		$	—
Derivatives not designated as hedging instruments: (a)
Accrued liabilities		$	371	$	63	$	—	$	(387	)	$	47
Deferred credits and liabilities		$	27	$	5	$	—	$	(29	)	$	3
As of December 31, 2016		Fair Value Measurements Using						Netting (b)			Total Fair Value
(in millions)	(Commodity Contracts)	Level 1		Level 2		Level 3
Assets:
Cash-flow hedges: (a)
Other current assets		$	—	$	1	$	—	$	—		$	1
Long-term receivables and other assets, net		$	—	$	—	$	—	$	—		$	—
Derivatives not designated as hedging instruments: (a)
Other current assets		$	166	$	57	$	—	$	(196	)	$	27
Long-term receivables and other assets, net		$	2	$	3	$	—	$	(2	)	$	3
Liabilities:
Cash-flow hedges (a)
Accrued liabilities		$	—	$	6	$	—	$	—		$	6
Deferred credits and liabilities		$	—	$	—	$	—	$	—		$	—
Derivatives not designated as hedging instruments: (a)
Accrued liabilities		$	172	$	51	$	—	$	(196	)	$	27
Deferred credits and liabilities		$	1	$	6	$	—	$	(2	)	$	5

(a) Fair values are presented at gross amounts, including when the derivatives are subject to netting arrangements and presented on a net basis in the consolidated condensed balance sheets.

(b) These amounts do not include collateral. As of September 30, 2017, collateral received of $2 million has been netted against derivative assets and collateral paid of $31 million has been netted against derivative liabilities. As of December 31, 2016, collateral received of $4 million has been netted against derivative assets and collateral paid of $13 million has been netted against derivative liabilities. Collateral deposited by Occidental, mainly for initial margin, of $33 million and $25 million as of September 30, 2017, and December 31, 2016, respectively, has not been reflected in these derivative fair value tables. This collateral is included in other current assets in the consolidated condensed balance sheets.

Not designated as hedging instruments | Commodity contracts

Derivatives

Summary of net sales related to the outstanding commodity derivative instruments

The following table summarizes the amounts reported in net sales related to the outstanding commodity derivative instruments not designated as hedging instruments as of September 30, 2017, and December 31, 2016:

(in millions, except Long/(Short) volumes)	2017			2016
Unrealized gain (loss) on derivatives not designated as hedges
Oil commodity contracts	$	(30	)	$	(5	)
Natural gas commodity contracts	$	1		$	1
Outstanding net volumes on derivatives not designated as hedges
Oil Commodity Contracts
Volume (MMBL)	65			67
Price Per Bbl	$	50.11		$	53.86
Natural gas commodity contracts
Volume (Bcf)	(43		)	(12		)
Price Per MMBTU	$	2.65		$	3.19