REVENUE

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

REVENUE

NOTE 5 - REVENUE

Revenue from customers is recognized when obligations under the terms of a contract are satisfied; this generally occurs with the delivery of oil, NGL, gas, chemicals or services such as transportation. Revenue from customers is measured as the amount of consideration Occidental expects to receive in exchange for the delivery of goods or services. Contracts may last from one month to one year or more and may have renewal terms that extend indefinitely at the option of either party. Price is typically based on market indexes. Volumes fluctuate due to production and, in certain cases, customer demand and transportation availability. Occidental records revenue net of certain taxes, such as sales taxes, that are assessed by governmental authorities on Occidental’s customers.

Occidental does not incur significant costs to obtain contracts. Incidental items that are immaterial in the context of the contract are recognized as expenses. Sales of hydrocarbons and chemicals to customers are invoiced and settled on a monthly basis. Occidental is not usually subject to obligations for warranties, rebates, returns or refunds except in the case of customer incentive payments as discussed for the chemical segment below. Occidental does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to Occidental. Occidental does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied

performance obligations. Revenue expected to be recognized from unsatisfied performance obligations as of December 31, 2020, was $103 million in 2021 and $59 million thereafter with the majority being recognized between 2022 and 2033.

OIL AND GAS SEGMENT

Revenue from oil and gas production is recognized when production is delivered and control passes to the customer. Revenues from the production of oil and gas properties in which Occidental has an interest with other producers are recognized on the basis of Occidental’s net revenue interest.

CHEMICALS SEGMENT

Revenue from chemical product sales is recognized when control passes to the customer. Certain incentive programs may provide for payments or credits to be made to customers based on the volume of product purchased over a defined period. Customer incentives are estimated and recorded as a reduction to revenue ratably over the contract period. Such estimates are evaluated and revised as warranted. Revenue from exchange contracts is excluded from revenue from customers.

MIDSTREAM AND MARKETING SEGMENT

Revenue from pipeline and gas processing is recognized upon the completion of the transportation or processing service. Revenue from power sales is recognized upon delivery. Net marketing revenue is recognized upon completion of contract terms that are a prerequisite to payment and upon title transfer for physical deliveries. Unless the normal purchases and sales exception has been elected, net marketing revenue is classified as a derivative, reported on a net basis, recorded at fair value and changes in fair value are reflected in net sales, and excluded from revenue from customers in the table below.

The following table reconciles revenue from customers to total net sales for the years ended December 31:

millions	2020		2019
Revenue from customers	$	17,130	$	19,192
All other revenues (a)	679		1,719
Net sales	$	17,809	$	20,911

(a)Included net marketing derivatives, oil collars and calls and chemical exchange contracts.

DISAGGREGATION OF REVENUE FROM CONTRACTS WITH CUSTOMERS

The table below presents Occidental's revenue from customers by segment, product and geographical area. The oil and gas segment typically sells its oil, NGL and gas at the lease or concession area. Chemical segment revenues are shown by geographic area based on the location of the sale. Excluding net marketing revenue, midstream and marketing segment revenues are shown by the location of sale.

millions	United States		Middle East		Latin America		Other International		Eliminations		Total
Year ended December 31, 2020
Oil and gas
Oil	$	7,485	$	1,949	$	454	$	—	$	—	$	9,888
NGL	838		217		—		—		—		1,055
Gas	660		313		13		—		—		986
Other	65		1		—		—		—		66
Segment total	$	9,048	$	2,480	$	467	$	—	$	—	$	11,995
Chemical	$	3,524	$	—	$	137	$	65	$	—	$	3,726
Midstream and marketing
Gas processing	$	350	$	294	$	—	$	—	$	—	$	644
Marketing	1,144		—		—		278		—		1,422
Power and other	101		—		—		—		—		101
Segment total	$	1,595	$	294	$	—	$	278	$	—	$	2,167
Eliminations	$	—	$	—	$	—	$	—	$	(758)	$	(758)
Consolidated	$	14,167	$	2,774	$	604	$	343	$	(758)	$	17,130
Year ended December 31, 2019
Oil and gas
Oil	$	8,411	$	3,256	$	683	$	—	$	—	$	12,350
NGL	658		283		—		—		—		941
Gas	424		319		20		—		—		763
Other	(1)		(5)		—		—		—		(6)
Segment total	$	9,492	$	3,853	$	703	$	—	$	—	$	14,048
Chemical	$	3,858	$	—	$	155	$	67	$	—	$	4,080
Midstream and marketing (a)
Gas processing and CO2	$	395	$	351	$	—	$	—	$	—	$	746
Marketing	436		—		—		—		—		436
WES - Gas processing	1,110		—		—		—		—		1,110
Power and other	36		—		—		—		—		36
Segment total	$	1,977	$	351	$	—	$	—	$	—	$	2,328
Eliminations	$	—	$	—	$	—	$	—	$	(1,264)	$	(1,264)
Consolidated	$	15,327	$	4,204	$	858	$	67	$	(1,264)	$	19,192

(a)The midstream and marketing segment included revenues from customers from WES from the date of the Acquisition to December 31, 2019. See Note 1 - Summary of Significant Accounting Policies for more information.