Item 1. Financial Statements (unaudited)

Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries

millions						September 30, 2021						December 31, 2020
ASSETS
CURRENT ASSETS
Cash and cash equivalents						$	2,059					$	2,008
Restricted cash and restricted cash equivalents						220						170
Trade receivables, net						3,477						2,115
Inventories						1,773						1,898
Other current assets						1,272						1,195
Assets held for sale						1,098						1,433
Total current assets						9,899						8,819
INVESTMENTS IN UNCONSOLIDATED ENTITIES						3,266						3,250
PROPERTY, PLANT AND EQUIPMENT
Oil and gas segment						100,483						102,454
Chemical segment						7,468						7,356
Midstream and marketing segment						8,304						8,232
Corporate						937						922
Gross property, plant and equipment						117,192						118,964
Accumulated depreciation, depletion and amortization						(56,548)						(53,075)
Net property, plant and equipment						60,644						65,889
OPERATING LEASE ASSETS						804						1,062
LONG-TERM RECEIVABLES AND OTHER ASSETS, NET						1,145						1,044
TOTAL ASSETS						$	75,758					$	80,064
The accompanying notes are an integral part of these consolidated condensed financial statements.

Consolidated Condensed Balance Sheets			Occidental Petroleum Corporation and Subsidiaries

millions, except share and per-share amounts						September 30, 2021						December 31, 2020
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Current maturities of long-term debt						$	780					$	440
Current operating lease liabilities						265						473
Accounts payable						3,713						2,987
Accrued liabilities						3,654						3,570
Liabilities of assets held for sale						714						753
Total current liabilities						9,126						8,223
LONG-TERM DEBT, NET
Long-term debt, net						30,915						35,745
DEFERRED CREDITS AND OTHER LIABILITIES
Deferred income taxes, net						6,825						7,113
Asset retirement obligations						3,942						3,977
Pension and postretirement obligations						1,595						1,763
Environmental remediation liabilities						1,000						1,028
Operating lease liabilities						593						641
Other						2,889						3,001
Total deferred credits and other liabilities						16,844						17,523
STOCKHOLDERS' EQUITY
Preferred stock at par value, 100,000 shares at September 30, 2021 and December 31, 2020						9,762						9,762
Common stock at par value, 1,083,180,911 shares at September 30, 2021 and 1,080,564,947 shares at December 31, 2020						217						216
Treasury stock, 149,199,930 shares at September 30, 2021 and 149,051,634 shares at December 31, 2020						(10,668)						(10,665)
Additional paid-in capital						16,692						16,552
Retained earnings						3,152						2,996
Accumulated other comprehensive loss						(282)						(288)
Total stockholders' equity						18,873						18,573
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	75,758					$	80,064
The accompanying notes are an integral part of these consolidated condensed financial statements.

Consolidated Condensed Statements of Operations			Occidental Petroleum Corporation and Subsidiaries

						Three months ended September 30,												Nine months ended September 30,
millions, except per-share amounts						2021						2020						2021						2020
REVENUES AND OTHER INCOME
Net sales						$	6,792					$	4,108					$	18,043					$	13,649
Interest, dividends and other income						18						21						142						88
Gains (losses) on sales of equity investments and other assets, net						5						(846)						119						(824)
Total						6,815						3,283						18,304						12,913
COSTS AND OTHER DEDUCTIONS
Oil and gas operating expense						829						656						2,317						2,356
Transportation and gathering expense						360						343						1,053						1,275
Chemical and midstream cost of sales						731						618						2,001						1,807
Purchased commodities						588						333						1,633						940
Selling, general and administrative expense						240						166						583						655
Other operating and non-operating expense						256						231						762						542
Taxes other than on income						289						180						743						473
Depreciation, depletion and amortization						1,916						1,915						6,481						6,343
Asset impairments and other charges						17						2,723						173						10,996
Anadarko acquisition-related costs						29						5						122						302
Exploration expense						31						29						145						99
Interest and debt expense, net						449						353						1,229						1,015
Total						5,735						7,552						17,242						26,803
Income (loss) before income taxes and other items						1,080						(4,269)						1,062						(13,890)
OTHER ITEMS
Gains (losses) on interest rate swaps and warrants, net						(26)						88						150						(573)
Income from equity investments						163						123						463						183
Total						137						211						613						(390)
Income (loss) from continuing operations before income taxes						1,217						(4,058)						1,675						(14,280)
Income tax benefit (expense)						(387)						403						(446)						1,896
Income (loss) from continuing operations						830						(3,655)						1,229						(12,384)
Income (loss) from discontinued operations, net of tax						(2)						80						(444)						(1,335)
NET INCOME (LOSS)						828						(3,575)						785						(13,719)
Less: Preferred stock dividends						(200)						(203)						(600)						(644)
NET INCOME (LOSS) ATTRIBUTABLE TO COMMON STOCKHOLDERS						$	628					$	(3,778)					$	185					$	(14,363)
PER COMMON SHARE
Income (loss) from continuing operations—basic						$	0.67					$	(4.16)					$	0.67					$	(14.26)
Income (loss) from discontinued operations—basic						—						0.09						(0.47)						(1.46)
Net income (loss) attributable to common stockholders—basic						$	0.67					$	(4.07)					$	0.20					$	(15.72)
Income (loss) from continuing operations—diluted						$	0.65					$	(4.16)					$	0.65					$	(14.26)
Income (loss) from discontinued operations—diluted						—						0.09						(0.46)						(1.46)
Net income (loss) attributable to common stockholders—diluted						$	0.65					$	(4.07)					$	0.19					$	(15.72)
The accompanying notes are an integral part of these consolidated condensed financial statements.

Consolidated Condensed Statements of Comprehensive Income (Loss)			Occidental Petroleum Corporation and Subsidiaries

						Three months ended September 30,												Nine months ended September 30,
millions						2021						2020						2021						2020
Net income (loss)						$	828					$	(3,575)					$	785					$	(13,719)
Other comprehensive income (loss) items:
Pension and postretirement gains (losses) (a)						(45)						28						4						(63)
Gains (losses) on derivatives						2						(1)						3						2
Other						(1)						2						(1)						(1)
Other comprehensive income (loss), net of tax						(44)						29						6						(62)
Comprehensive income (loss) attributable to preferred and common stockholders						$	784					$	(3,546)					$	791					$	(13,781)
The accompanying notes are an integral part of these consolidated condensed financial statements.

(a) Net of tax benefit (expense) of zero and $(8) million for the three months ended September 30, 2021 and 2020, respectively, and $(13) million and $18 million for the nine months ended September 30, 2021 and 2020, respectively.

Consolidated Condensed Statements of Cash Flows			Occidental Petroleum Corporation and Subsidiaries

						Nine months ended September 30,
millions						2021						2020
CASH FLOW FROM OPERATING ACTIVITIES
Net income (loss)						$	785					$	(13,719)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Discontinued operations, net						444						1,335
Depreciation, depletion and amortization of assets						6,481						6,343
Deferred income tax benefit						(192)						(2,117)
Asset impairments and other charges						173						10,915
(Gains) losses on sales of equity investments and other assets, net						(119)						824
Other noncash reconciling items						240						134
Changes in operating assets and liabilities:
(Increase) decrease in receivables						(1,366)						4,248
(Increase) decrease in inventory						92						(242)
(Increase) decrease in other current assets						(172)						293
Increase (decrease) in accounts payable and accrued liabilities						593						(5,609)
Increase in current domestic and international income taxes						63						70
Operating cash flow from continuing operations						7,022						2,475
Operating cash flow from discontinued operations, net of taxes						320						76
Net cash provided by operating activities						7,342						2,551
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures						(1,933)						(1,921)
Change in capital accrual						(83)						(725)
Purchases of businesses and assets, net						(122)						(102)
Proceeds from sales of other assets and equity investments, net						1,005						193
Equity investments and other, net						(21)						188
Investing cash flow from continuing operations						(1,154)						(2,367)
Investing cash flow from discontinued operations						(48)						(31)
Net cash used by investing activities						(1,202)						(2,398)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from long-term debt, net of issuance costs						—						4,956
Payments of long-term debt						(4,555)						(4,615)
Proceeds from issuance of common stock						24						126
Cash dividends paid on common and preferred stock						(630)						(1,634)
Financing portion of net cash paid for derivative instruments						(824)						(377)
Other financing, net						(48)						(103)
Financing cash flow from continuing operations						(6,033)						(1,647)
Financing cash flow from discontinued operations						(7)						(6)
Net cash used by financing activities						(6,040)						(1,653)
Increase (decrease) in cash, cash equivalents, restricted cash and restricted cash equivalents						100						(1,500)
Cash, cash equivalents, restricted cash and restricted cash equivalents — beginning of period						2,194						3,574
Cash, cash equivalents, restricted cash and restricted cash equivalents — end of period						$	2,294					$	2,074
The accompanying notes are an integral part of these consolidated condensed financial statements.

Consolidated Condensed Statements of Equity			Occidental Petroleum Corporation and Subsidiaries

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Equity
Balance at June 30, 2020						$	9,762					$	213					$	(10,657)					$	16,235					$	8,105					$	(312)					$	23,346
Net loss						—						—						—						—						(3,575)						—						(3,575)
Other comprehensive income, net of tax						—						—						—						—						—						29						29
Dividends on common stock, $0.01 per share						—						—						—						—						(10)						—						(10)
Dividends on preferred stock, $2,000 per share						—						3						—						219						(203)						—						19
Issuance of common stock and other, net						—						—						—						51						—						—						51
Balance at September 30, 2020						$	9,762					$	216					$	(10,657)					$	16,505					$	4,317					$	(283)					$	19,860

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Equity
Balance at June 30, 2021						$	9,762					$	217					$	(10,668)					$	16,638					$	2,533					$	(238)					$	18,244
Net income						—						—						—						—						828						—						828
Other comprehensive loss, net of tax						—						—						—						—						—						(44)						(44)
Dividends on common stock, $0.01 per share						—						—						—						—						(9)						—						(9)
Dividends on preferred stock, $2,000 per share						—						—						—						—						(200)						—						(200)
Issuance of common stock and other, net						—						—						—						54						—						—						54
Balance at September 30, 2021						$	9,762					$	217					$	(10,668)					$	16,692					$	3,152					$	(282)					$	18,873

The accompanying notes are an integral part of these consolidated condensed financial statements.

Consolidated Condensed Statements of Equity			Occidental Petroleum Corporation and Subsidiaries

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Equity
Balance at December 31, 2019						$	9,762					$	209					$	(10,653)					$	14,955					$	20,180					$	(221)					$	34,232
Net loss						—						—						—						—						(13,719)						—						(13,719)
Other comprehensive loss, net of tax						—						—						—						—						—						(62)						(62)
Dividends on common stock, $0.81 per share						—						—						—						—						(737)						—						(737)
Dividends on preferred stock, $6,444 per share						—						6						—						438						(644)						—						(200)
Stock warrants issued						—						—						—						870						(763)						—						107
Issuance of common stock and other, net						—						1						—						242						—						—						243
Purchases of treasury stock						—						—						(4)						—						—						—						(4)
Balance at September 30, 2020						$	9,762					$	216					$	(10,657)					$	16,505					$	4,317					$	(283)					$	19,860

												Equity Attributable to Common Stock
millions, except per-share amounts						Preferred Stock						Common Stock						Treasury Stock						Additional Paid-in Capital						Retained Earnings						Accumulated Other Comprehensive Loss						Total Equity
Balance at December 31, 2020						$	9,762					$	216					$	(10,665)					$	16,552					$	2,996					$	(288)					$	18,573
Net income						—						—						—						—						785						—						785
Other comprehensive income, net of tax						—						—						—						—						—						6						6
Dividends on common stock, $0.03 per share						—						—						—						—						(29)						—						(29)
Dividends on preferred stock, $6,000 per share						—						—						—						—						(600)						—						(600)
Issuance of common stock and other, net						—						1						—						140						—						—						141
Purchases of treasury stock						—						—						(3)						—						—						—						(3)
Balance at September 30, 2021						$	9,762					$	217					$	(10,668)					$	16,692					$	3,152					$	(282)					$	18,873

The accompanying notes are an integral part of these consolidated condensed financial statements.

Notes to Consolidated Condensed Financial Statements			Occidental Petroleum Corporation and Subsidiaries

NOTE 1 - GENERAL

NATURE OF OPERATIONS

In this report, "Occidental" means Occidental Petroleum Corporation, a Delaware corporation, and one or more entities in which it owns a controlling interest (subsidiaries). Occidental conducts its operations through various subsidiaries and affiliates. Occidental has made its disclosures in accordance with United States generally accepted accounting principles as they apply to interim reporting, and condensed or omitted, as permitted by the U.S. Securities and Exchange Commission’s rules and regulations, certain information and disclosures normally included in consolidated financial statements and the notes thereto. These unaudited consolidated condensed financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto in Occidental’s Annual Report on Form 10-K for the year ended December 31, 2020 (the 2020 Form 10-K).

In the opinion of Occidental’s management, the accompanying unaudited consolidated condensed financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present Occidental’s consolidated condensed balance sheets as of September 30, 2021 and December 31, 2020, and the consolidated condensed statements of operations, comprehensive income (loss), cash flows and equity for the three and nine months ended September 30, 2021 and 2020. Certain data in the financial statements and notes for prior periods have been reclassified to conform to the current presentation. The income and cash flows for the periods ended September 30, 2021 and 2020 are not necessarily indicative of the income or cash flows to be expected for the full year.

CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

Occidental considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents or restricted cash equivalents. The cash equivalents and restricted cash equivalents balances at September 30, 2021 and 2020 included investments in government money market funds in which the carrying value approximates fair value.

The following table provides a reconciliation of cash, cash equivalents, restricted cash and restricted cash equivalents as reported at the end of the period in the consolidated condensed statements of cash flows for the nine months ended September 30, 2021 and 2020, respectively.

millions						2021						2020
Cash and cash equivalents						$	2,059					$	1,896
Restricted cash and restricted cash equivalents						220						51
Cash and restricted cash included in assets held for sale						—						113
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net						15						14
Cash, cash equivalents, restricted cash and restricted cash equivalents						$	2,294					$	2,074

Total restricted cash and restricted cash equivalents were primarily associated with international joint ventures, a benefits trust and a judicially controlled account related to a Brazilian tax dispute. Cash and restricted cash included in assets held for sale at September 30, 2020 included restricted cash for the payments of future hard-minerals royalties conveyed, of which the related assets were sold in October 2020.

SUPPLEMENTAL CASH FLOW INFORMATION

The following table represents U.S. federal, domestic state and international income taxes paid, tax refunds received and interest paid related to continuing operations during the nine months ended September 30, 2021 and 2020, respectively.

millions						2021						2020
Income tax payments						$	(502)					$	(375)
Income tax refunds received						$	70					$	223
Interest paid (a)						$	(1,432)					$	(1,253)

(a) Net of capitalized interest of $46 million and $64 million for the nine months ended September 30, 2021 and 2020, respectively.

WES INVESTMENT

In March 2021, Occidental sold 11.5 million limited partner units of Western Midstream Partners, LP (WES) for proceeds of approximately $200 million, resulting in a gain of $102 million. As of September 30, 2021, Occidental owned all of the 2% non-voting general partner interest and 49.6% of the limited partner units in WES. On a combined basis, with its 2.0% non-voting limited partner interest in WES Operating, a WES subsidiary, Occidental's total effective economic interest in WES and its subsidiaries was 51.7%.

The following table presents the related-party transactions between Occidental and WES for the nine months ended September 30, 2021 and 2020.

millions															2021						2020
Sales															$	111					$	165
Purchases															$	17					$	474
Transportation, gathering and other fees paid															$	717					$	804

At the end of the third quarter 2020, Occidental recorded an other-than-temporary impairment of $2.7 billion, as the fair value of Occidental’s investment in WES had remained significantly lower than its book value for the majority of the nine months ended September 30, 2020. Occidental concluded that the difference between the fair value and book value of WES was not temporary, primarily given both the magnitude and the duration that the fair value was below its book value. This other-than-temporary impairment was calculated based on the closing market price of WES as of September 30, 2020. The market value of WES’s publicly traded common units is considered a Level 1 input. Occidental's equity method investment in WES was $1.9 billion as of September 30, 2020.

DISCONTINUED OPERATIONS

In October 2021, Occidental closed the sale of its Ghana assets for $750 million and net proceeds of $555 million, after closing adjustments to reflect an April 1, 2021 effective date. In addition, Occidental settled certain tax claims related to historical operations in Ghana for $170 million. As of September 30, 2021, the results of operations in Ghana, after-tax income of $3 million for the three months ended September 30, 2021 and after-tax losses of $32 million for the nine months ended September 30, 2021, continue to be presented as discontinued operations. The amounts related to the Ghana assets, of which approximately $1.0 billion and $1.4 billion are related to property, plant and equipment, net, as of September 30, 2021 and December 31, 2020, respectively, and the amounts related to Ghana liabilities, of which approximately $550 million and $670 million are related to deferred income taxes, asset retirement obligations and a finance lease liability as of September 30, 2021 and December 31, 2020, respectively, are presented as assets and liabilities held for sale.

During the first quarter of 2021, Occidental recorded a $403 million after-tax loss contingency in discontinued operations associated with its former operations in Ecuador, see Note 8 - Lawsuits, Claims, Commitments and Contingencies.

NOTE 2 - DIVESTITURES AND OTHER TRANSACTIONS

DIVESTITURES

In October 2021, Occidental closed the sale of its Ghana assets. See Note 1 - General for additional information. This divestiture completes Occidental's large-scale asset divestiture program.

In June 2021, Occidental entered into an agreement to sell certain non-strategic assets in the Permian Basin. The transaction closed in July 2021 for net cash proceeds of approximately $475 million. The difference in the assets' net book value and adjusted purchase price was treated as a recovery of cost and normal retirement, which resulted in no gain or loss being recognized.

In March 2021, Occidental completed the sale of certain non-operated assets in the DJ Basin for net cash proceeds of approximately $280 million. The difference in the assets' net book value and adjusted purchase price was treated as a recovery of cost and normal retirement, which resulted in no gain or loss being recognized.

NOTE 3 - REVENUE

Revenue from customers is recognized when obligations under the terms of a contract with our customers are satisfied, which generally occurs with the delivery of oil, natural gas liquids (NGL), gas, chemicals or services, such as transportation. As of September 30, 2021, trade receivables, net, of $3.5 billion represented rights to payment, for which

Occidental has satisfied its obligations under a contract and its right to payment is conditioned only on the passage of time.

The following table presents a reconciliation of revenue from customers to total net sales for the three and nine months ended September 30, 2021 and 2020:

						Three months ended September 30,												Nine months ended September 30,
millions						2021						2020						2021						2020
Revenue from customers						$	6,880					$	4,018					$	18,166					$	12,576
All other revenues (a)						(88)						90						(123)						1,073
Net sales						$	6,792					$	4,108					$	18,043					$	13,649

(a) Includes net marketing derivatives, natural gas collars, oil collars and call options 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 and midstream and marketing segment revenues are shown by geographic area based on the location of the sale.

millions						United States						International						Eliminations						Total
Three months ended September 30, 2021
Oil and gas
Oil						$	3,056					$	766					$	—					$	3,822
NGL						642						90						—						732
Gas						399						76						—						475
Other						26						1						—						27
Segment total						$	4,123					$	933					$	—					$	5,056
Chemical						$	1,329					$	66					$	—					$	1,395
Midstream and marketing						$	543					$	147					$	—					$	690
Eliminations						$	—					$	—					$	(261)					$	(261)
Consolidated						$	5,995					$	1,146					$	(261)					$	6,880

millions						United States						International						Eliminations						Total
Three months ended September 30, 2020
Oil and gas
Oil						$	1,784					$	535					$	—					$	2,319
NGL						252						53						—						305
Gas						155						80						—						235
Other						23						—						—						23
Segment total						$	2,214					$	668					$	—					$	2,882
Chemical						$	888					$	51					$	—					$	939
Midstream and marketing						$	244					$	135					$	—					$	379
Eliminations						$	—					$	—					$	(182)					$	(182)
Consolidated						$	3,346					$	854					$	(182)					$	4,018

millions						United States						International						Eliminations						Total
Nine months ended September 30, 2021
Oil and gas
Oil						$	8,548					$	1,998					$	—					$	10,546
NGL						1,498						220						—						1,718
Gas						963						216						—						1,179
Other						18						2						—						20
Segment total						$	11,027					$	2,436					$	—					$	13,463
Chemical						$	3,494					$	175					$	—					$	3,669
Midstream and marketing						$	1,362					$	430					$	—					$	1,792
Eliminations						$	—					$	—					$	(758)					$	(758)
Consolidated						$	15,883					$	3,041					$	(758)					$	18,166

millions						United States						International						Eliminations						Total
Nine months ended September 30, 2020
Oil and gas
Oil						$	5,705					$	1,779					$	—					$	7,484
NGL						592						158						—						750
Gas						476						251						—						727
Other						54						1						—						55
Segment total						$	6,827					$	2,189					$	—					$	9,016
Chemical						$	2,591					$	148					$	—					$	2,739
Midstream and marketing						$	986					$	378					$	—					$	1,364
Eliminations						$	—					$	—					$	(543)					$	(543)
Consolidated						$	10,404					$	2,715					$	(543)					$	12,576

NOTE 4 - INVENTORIES

Finished goods primarily represent oil, which is carried at the lower of weighted-average cost or net realizable value, and caustic soda and chlorine, which are valued under the last in first out (LIFO) method. Inventories consisted of the following:

millions						September 30, 2021						December 31, 2020
Raw materials						$	75					$	70
Materials and supplies						843						848
Commodity inventory and finished goods						884						1,009
						1,802						1,927
Revaluation to LIFO						(29)						(29)
Total						$	1,773					$	1,898

During the nine months ended September 30, 2020, Occidental recognized an impairment of $54 million due to obsolete material and supplies inventory, and an impairment of $76 million due to lower-than-cost or net-realizable value adjustments primarily related to commodity inventories.

NOTE 5 - DERIVATIVES

OBJECTIVE AND STRATEGY

Occidental uses a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes. Occidental also enters into derivative financial instruments for trading purposes.

Occidental may elect normal purchases and normal sales exclusions when physically delivered commodities are purchased or sold to a customer. Occidental occasionally applies cash flow hedge accounting treatment to derivative financial instruments to lock in margins on the forecasted sales of its natural gas storage volumes, and at times for other strategies, such as to lock in rates on future debt issuances. The value of cash flow hedges was insignificant at September 30, 2021 and December 31, 2020. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty.

DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

As of September 30, 2021, Occidental’s derivatives not designated as hedging instruments consisted of oil call options, natural gas collars, interest rate swaps and marketing derivatives.

Derivative instruments that are not designated as hedging instruments are required to be recorded on the balance sheet at fair value. Changes in fair value will impact Occidental’s earnings through mark-to-market adjustments until the physical commodity is delivered or the financial instrument is settled. The fair value does not reflect the ultimate realized cash value of the instrument at settlement.

COLLARS AND OIL CALL OPTIONS

Occidental's Brent-priced call options were entered into in conjunction with three-way collars that expired in 2020. Net gains and losses associated with collars and call options are recognized in net sales.

Occidental's natural gas two-way collar derivative instruments settle in 2021 and were entered into to manage its near-term exposure to cash flow variability from natural gas price risk.

Occidental had the following collars and call options outstanding at September 30, 2021:

Collars and Call Options, not designated as hedges
2021 Settlement - oil
Call options sold (MMbbl)									32.2
			Average price per barrel (Brent oil pricing)
						Ceiling sold price (call)			$	74.16
2021 Settlement - natural gas
Natural gas collars (millions of MMbtu)									38.4
			Volume weighted-average price per MMbtu (NYMEX)
						Ceiling sold price (call)			$	3.61
						Floor purchased price (put)			$	2.50

INTEREST RATE SWAPS

Occidental's interest rate swap contracts lock in a fixed interest rate in exchange for a floating interest rate indexed to the three-month London InterBank Offered Rate (LIBOR) throughout the reference period. Net gains and losses associated with interest rate swaps are recognized currently in gains (losses) on interest rate swaps and warrants, net.

Occidental had the following interest rate swaps outstanding at September 30, 2021:

millions, except percentages															Mandatory						Weighted-Average
Notional Principal Amount									Reference Period						Termination Date						Interest Rate
$	275								September 2016 - 2046						September 2022						6.709		%
$	450								September 2017 - 2047						September 2023						6.445		%

Depending on market conditions, liability management actions or other factors, Occidental may enter into offsetting interest rate swap positions as well as amend or settle certain or all of the currently outstanding interest rate swaps.

Derivative settlements and collateralization are classified as cash flow from operating activities unless the derivatives contain an other-than-insignificant financing element, in which case the settlements and collateralization are classified

as cash flows from financing activities. Net cash payments related to settlements of interest rate swap agreements in advance of their mandatory termination dates were $885 million for the nine months ended September 30, 2021, which included $815 million paid to settle interest rate swaps with notional principal amounts of $400 million and $350 million and weighted average interest rates of 6.348% and 6.662%, respectively. For the nine months ended September 30, 2021, $61 million of collateral was returned. As of September 30, 2021 and December 31, 2020, $313 million and $374 million of collateral related to interest rate swaps had been netted against derivative liabilities, respectively.

MARKETING DERIVATIVES

Occidental's marketing derivative instruments not designated as hedges are short-duration physical and financial forward contracts. Marketing derivative instruments do not include the collars and call options discussed above. A substantial majority of Occidental's physically settled derivative contracts are index-based and carry no mark-to-market valuation in earnings. As of September 30, 2021, the weighted-average settlement price of these forward contracts was $69.26 per barrel (Bbl) and $5.63 per thousand cubic feet (Mcf) for crude oil and natural gas, respectively. The weighted-average settlement price was $46.05 per Bbl and $2.58 per Mcf for crude oil and natural gas, respectively, at December 31, 2020. Net gains and losses associated with marketing derivative instruments not designated as hedging instruments are recognized currently in net sales.

The following table summarizes net short volumes associated with the outstanding marketing commodity derivatives not designated as hedging instruments.

						September 30, 2021						December 31, 2020
Oil commodity contracts
Volume (MMbbl)						(29)						(31)
Natural gas commodity contracts
Volume (Bcf)						(120)						(117)

FAIR VALUE OF DERIVATIVES

The following tables present the fair values of Occidental’s outstanding derivatives. Fair values are presented at gross amounts below, including when the derivatives are subject to master netting arrangements, and are presented on a net basis in the consolidated condensed balance sheets.

millions			Fair Value Measurements Using																		Netting (a)						Total Fair Value
Balance Sheet Classifications			Level 1						Level 2						Level 3
September 30, 2021
Collars and Call Options
Accrued liabilities			$	—					$	(264)					$	—					$	—					$	(264)
Marketing Derivatives
Other current assets			1,732						101						—						(1,800)						33
Long-term receivables and other assets, net			147						1						—						(147)						1
Accrued liabilities			(1,781)						(78)						—						1,800						(59)
Deferred credits and other liabilities - other			(148)						—						—						147						(1)
Interest Rate Swaps
Accrued liabilities			—						(312)						—						—						(312)
Deferred credits and other liabilities - other			—						(412)						—						—						(412)
December 31, 2020
Collars and Call Options
Other current assets			$	—					$	25					$	—					$	—					$	25
Accrued liabilities			—						(42)						—						—						(42)
Marketing Derivatives
Other current assets			1,155						80						—						(1,204)						31
Long-term receivables and other assets, net			7						2						—						(7)						2
Accrued liabilities			(1,252)						(81)						—						1,204						(129)
Deferred credits and other liabilities - other			(7)						—						—						7						—
Interest Rate Swaps
Accrued liabilities			—						(936)						—						—						(936)
Deferred credits and other liabilities - other			—						(822)						—						—						(822)

(a)These amounts do not include collateral. As of September 30, 2021 and December 31, 2020, $313 million and $374 million of collateral related to interest rate swaps had been netted against derivative liabilities, respectively. Occidental netted $48 million and $85 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of September 30, 2021 and December 31, 2020, respectively.

GAINS AND LOSSES ON DERIVATIVES

The following table presents the effect of Occidental's derivative instruments on the consolidated condensed statements of operations:

millions						Three months ended September 30,												Nine months ended September 30,
Income Statement Classification						2021						2020						2021						2020
Collars and Call Options
Net sales						$	(101)					$	110					$	(339)					$	1,067
Marketing Derivatives
Net sales (a)						12						(18)						214						—
Interest Rate Swaps
Gains (losses) on interest rate swaps and warrants, net						(26)						88						150						(577)

(a) Includes derivative and non-derivative marketing activity.

CREDIT RISK

The majority of Occidental's counterparty credit risk is related to the physical delivery of energy commodities to its customers and their inability to meet their settlement commitments. Occidental manages credit risk by selecting counterparties that it believes to be financially strong, by entering into netting arrangements with counterparties and by requiring collateral or other credit risk mitigants, as appropriate. Occidental actively evaluates the creditworthiness of its counterparties, assigns appropriate credit limits and monitors credit exposures against those assigned limits. Occidental also enters into future contracts through regulated exchanges with select clearinghouses and brokers, which are subject to minimal credit risk as a significant portion of these transactions settle on a daily margin basis.

Certain of Occidental's over-the-counter derivative instruments contain credit-risk-contingent features, primarily tied to credit ratings for Occidental or its counterparties, which may affect the amount of collateral that each party would need to post. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed at September 30, 2021 was $34 million (net of $313 million of collateral), which was primarily related to interest rate swaps. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed at December 31, 2020 was $104 million (net of $374 million of collateral), which was primarily related to interest rate swaps.

NOTE 6 - FAIR VALUE MEASUREMENTS

FAIR VALUES - NONRECURRING

2021:

For the three and nine months ended September 30, 2021, Occidental recorded pre-tax impairments of $17 million and $173 million, respectively, related to non-core onshore domestic undeveloped leases that either expired or were set to expire in the near-term, where Occidental had no plans to pursue exploration activities.

2020:

As a result of the expected prolonged period of lower commodity prices brought on by the COVID-19 pandemic’s impact on oil demand, Occidental tested substantially all of its oil and gas assets for impairment during the second quarter of 2020. Occidental recognized total pre-tax impairments to its oil and gas proved and unproved properties of $8.6 billion, of which $6.4 billion was included in oil and gas segment results and $2.2 billion ($1.4 billion net of tax) related to Ghana was included in discontinued operations for the three months ended June 30, 2020.

For the three months ended June 30, 2020, Occidental recorded proved property pre-tax impairments of $1.2 billion primarily related to certain assets for its domestic onshore and Gulf of Mexico assets and $0.9 billion to remeasure the Algeria oil and gas proved properties to their fair value. The fair value of the proved properties was measured based on the income approach.

Also during the three months ended June 30, 2020, $4.3 billion of unproved property pre-tax impairments were recorded primarily related to domestic onshore unproved acreage. The fair value of this acreage was measured based on a market approach using an implied acreage valuation derived from domestic onshore market participants excluding the fair value assigned to proved properties.

Income approaches are considered Level 3 fair value estimates and include significant assumptions of future production and timing of production, commodity price assumptions, and operating and capital cost estimates,

discounted using a 10% weighted average cost of capital. Taxes were based on current statutory rates. Future production and timing of production were based on internal reserves estimates and internal economic models for a specific oil and gas asset. Internal reserve estimates consisted of proved reserves and risk adjusted unproved reserves based on reserve category. Price assumptions were based on a combination of market information and published industry resources adjusted for historical differentials. Price assumptions ranged from approximately $40 per Bbl of oil in 2020 increasing to approximately $70 per Bbl of oil in 2034, with an unweighted arithmetic average price of $59.17 and $62.42 for WTI and Brent indexed assets for the 15-year period, respectively. Natural gas prices ranged from approximately $2.00 per Mcf in 2020 to approximately $3.60 per Mcf in 2034, with an unweighted arithmetic average price of $3.13 for NYMEX based assets for the 15-year period. Both oil and natural gas commodity prices were held flat after 2034 and were adjusted for location and quality differentials. Operating and capital cost estimates were based on current observable costs and were further escalated 1% in every period where commodity prices exceeded $50 per Bbl and 2% in every period where commodity prices exceeded $60 per Bbl. The weighted average cost of capital was calculated based on industry peers and approximated the cost of capital an external market participant would expect to obtain.

In the first quarter of 2020, Occidental's oil and gas segment recognized pre-tax impairment and related charges of $581 million primarily related to both proved and unproved oil and gas properties and a lower of cost or net realizable value adjustment for crude inventory. Occidental recorded proved property impairments of $293 million related to certain international assets and the Gulf of Mexico. Occidental recorded unproved property impairments of $241 million primarily related to domestic onshore undeveloped leases and offshore Gulf of Mexico where Occidental no longer intends to pursue exploration, appraisal or development activities primarily due to the reduction in near-term capital plans.

NOTE 7 - LONG-TERM DEBT

The following table summarizes Occidental's outstanding debt, including finance lease liabilities:

millions						September 30, 2021						December 31, 2020
Total borrowings at face value						$	30,760					$	35,235
Adjustments to book value:
Unamortized premium, net						688						748
Debt issuance costs						(135)						(156)
Net book value of debt						$	31,313					$	35,827
Long-term finance leases						330						316
Current finance leases						52						42
Total debt and finance leases						$	31,695					$	36,185
Less current maturities of financing leases						(52)						(42)
Less current maturities of long-term debt						(728)						(398)
Long-term debt, net						$	30,915					$	35,745

DEBT ACTIVITY

In the third quarter of 2021, Occidental completed a cash tender for outstanding senior notes with a face value of $3.0 billion and maturities ranging from 2022 through 2026, paid $224 million of senior notes upon maturity and fully retired $1.1 billion of floating interest rate notes due August 2022. As a result, the face value of total borrowings was reduced by $4.3 billion.

In the first quarter of 2021, Occidental repaid $174 million of debt upon maturity. No debt matured or was otherwise paid during the second quarter of 2021.

The following table summarizes debt repayments for the nine months ended September 30, 2021:

millions						Face Value

First quarter repayments:
4.850% senior notes due 2021						$	(147)
Variable rate bonds due 2021						(27)
Third quarter repayments:
2.700% senior notes due 2022						$	(278)
2.700% senior notes due 2023						(484)
3.450% senior notes due 2024						(81)
2.900% senior notes due 2024						(1,620)
3.500% senior notes due 2025						(229)
3.400% senior notes due 2026						(224)
3.200% senior notes due 2026						(110)
2.600% senior notes due 2021						(224)
Floating interest rate notes due August 2022						(1,051)
Total						$	(4,475)

FAIR VALUE OF DEBT

The estimated fair value of Occidental’s debt as of September 30, 2021 and December 31, 2020, substantially all of which was classified as Level 1, was approximately $33.0 billion and $33.8 billion, respectively.

NOTE 8 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES

LEGAL MATTERS

Occidental or certain of its subsidiaries are involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. Occidental or certain of its subsidiaries also are involved in proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA) and similar federal, regional, state, provincial, tribal, local and international environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties and injunctive relief. Usually Occidental or such subsidiaries are among many companies in these environmental proceedings and have to date been successful in sharing response costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or Occidental retains liability or indemnifies the other party for conditions that existed prior to the transaction.

In accordance with applicable accounting guidance, Occidental accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated.

In 2016, Occidental received payments from the Republic of Ecuador of approximately $1.0 billion pursuant to a November 2015 arbitration award for Ecuador’s 2006 expropriation of Occidental’s Participation Contract for Block 15. The awarded amount represented a recovery of 60% of the value of Block 15. In 2017, Andes Petroleum Ecuador Ltd. (Andes) filed a demand for arbitration, claiming it is entitled to a 40% share of the judgment amount obtained by Occidental. Occidental contends that Andes is not entitled to any of the amounts paid under the 2015 arbitration award because Occidental’s recovery was limited to Occidental’s own 60% economic interest in the block. On March 26, 2021, the arbitration tribunal issued an award in favor of Andes and against Occidental Exploration and Production Company (OEPC) in the amount of approximately $391 million plus interest. In June 2021, OEPC filed a motion to vacate the award due to concerns regarding the validity of the award. In addition, OEPC has made a demand for significant additional claims not addressed by the arbitration tribunal that OEPC has against Andes relating to Andes' 40% share of costs, liabilities, losses and expenses due under the farmout agreement and joint operating agreement to which Andes and OEPC are parties.

In August 2019, Sanchez Energy Corporation and certain of its affiliates (Sanchez) filed voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code. Sanchez is a party to agreements with Anadarko Petroleum Corporation and certain of its affiliates (Anadarko) as a result of its 2017 purchase of Anadarko's Eagle Ford Shale assets. Sanchez is attempting to reject some of the agreements related to the purchase of Anadarko’s Eagle Ford Shale assets (the Bankruptcy Litigation). If Sanchez was permitted to reject certain of those agreements, then Anadarko may owe deficiency payments to various third parties. Subsequent to the end of the third quarter of 2021, Occidental and certain of its affiliates reached an agreement in principle to resolve the Bankruptcy Litigation. Occidental expects the settlement, certain aspects of which will require court approval and the satisfaction of certain other conditions, to be finalized by the end of the fourth quarter of 2021. Occidental recorded a contingency reserve at September 30, 2021 associated with this expected settlement.

The ultimate outcome and impact of outstanding lawsuits, claims and proceedings on Occidental cannot be predicted. Management believes that the resolution of these matters will not, individually or in the aggregate, have a material adverse effect on Occidental’s consolidated condensed balance sheets. If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. Occidental’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. Occidental reassesses the probability and estimability of contingent losses as new information becomes available.

TAX MATTERS

During the course of its operations, Occidental is subject to audit by tax authorities for varying periods in various federal, state, local and international tax jurisdictions. Tax years through 2017 for U.S. federal income tax purposes have been audited by the IRS pursuant to its Compliance Assurance Program and subsequent tax years are currently under review. Tax years through 2012 have been audited for state income tax purposes. Significant audit matters in international jurisdictions have been resolved through 2010. During the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Occidental believes that the resolution of outstanding tax matters would not have a material adverse effect on its consolidated condensed balance sheets or consolidated condensed statements of operations.

For Anadarko, tax years through 2014 and tax year 2016 for U.S. federal tax purposes have been audited by the IRS. Tax years through 2008 have been audited for state income tax purposes. There are outstanding significant audit matters in one international jurisdiction. As stated above, during the course of tax audits, disputes have arisen and other disputes may arise as to facts and matters of law. Other than the matter discussed below, Occidental believes that the

resolution of these outstanding tax matters would not have a material adverse effect on its consolidated condensed balance sheets or consolidated condensed statements of operations.

Anadarko received an $881 million tentative refund in 2016 related to its $5.2 billion Tronox Adversary Proceeding settlement payment in 2015. In September 2018, Anadarko received a statutory notice of deficiency from the IRS disallowing the net operating loss carryback and rejecting Anadarko’s refund claim. As a result, Anadarko filed a petition with the U.S. Tax Court to dispute the disallowances in November 2018. The case was in the IRS appeals process until the second quarter of 2020. The case has since been returned to the U.S. Tax Court, where a trial date has been set for July 2022 and Occidental expects to continue pursuing resolution.

In accordance with ASC 740’s guidance on the accounting for uncertain tax positions, Occidental has recorded no tax benefit on the tentative cash tax refund of $881 million. As a result, should Occidental not ultimately prevail on the issue, there would be no additional tax expense recorded relative to this position for financial statement purposes other than future interest. However, in that event, Occidental would be required to repay approximately $1 billion ($996 million in federal taxes and $27 million in state taxes) plus accrued interest of approximately $300 million. A liability for this amount, with the accrued interest, is included in deferred credits and other liabilities-other.

INDEMNITIES TO THIRD PARTIES

Occidental, its subsidiaries, or both, have indemnified various parties against specified liabilities those parties might incur in the future in connection with purchases and other transactions that they have entered into with Occidental. These indemnities usually are contingent upon the other party incurring liabilities that reach specified thresholds. As of September 30, 2021, Occidental is not aware of circumstances that it believes would reasonably be expected to lead to indemnity claims that would result in payments materially in excess of reserves.

NOTE 9 - ENVIRONMENTAL LIABILITIES AND EXPENDITURES

Occidental’s operations are subject to stringent federal, regional, state, provincial, tribal, local and international laws and regulations related to improving or maintaining environmental quality. The laws that require or address environmental remediation, including CERCLA and similar federal, regional, state, provincial, tribal, local and international laws, may apply retroactively and regardless of fault, the legality of the original activities or the current ownership or control of sites. Occidental or certain of its subsidiaries participate in or actively monitor a range of remedial activities and government or private proceedings under these laws with respect to alleged past practices at operating, closed and third-party sites. Remedial activities may include one or more of the following: investigation involving sampling, modeling, risk assessment or monitoring; cleanup measures including removal, treatment or disposal; or operation and maintenance of remedial systems. The environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, punitive damages, civil penalties, injunctive relief and government oversight costs.

ENVIRONMENTAL REMEDIATION

As of September 30, 2021, Occidental participated in or monitored remedial activities or proceedings at 165 sites. The following table presents Occidental’s current and non-current environmental remediation liabilities as of September 30, 2021. The current portion, $123 million, is included in accrued liabilities and the non-current portion, $1.0 billion, in deferred credits and other liabilities - environmental remediation liabilities.

Occidental’s environmental remediation sites are grouped into four categories: sites listed or proposed for listing by the U.S. Environmental Protection Agency (EPA) on the CERCLA National Priorities List (NPL) and three categories of non-NPL sites—third-party sites, Occidental-operated sites and closed or non-operated Occidental sites.

millions, except number of sites						Number of Sites						Remediation Balance
NPL sites						30						$	427
Third-party sites						69						298
Occidental-operated sites						16						131
Closed or non-operated Occidental sites						50						267
Total						165						$	1,123

As of September 30, 2021, Occidental’s environmental remediation liabilities exceeded $10 million each at 18 of the 165 sites described above, and 95 of the sites had liabilities from zero to $1 million each. Based on current estimates, Occidental expects to expend funds corresponding to approximately 40% of the period-end remediation balance at the

sites described above over the next three to four years and the remaining balance at these sites over the subsequent 10 or more years. Occidental believes its range of reasonably possible additional losses beyond those liabilities recorded for environmental remediation at these sites could be up to $1.1 billion. The status of Occidental's involvement with the sites and related significant assumptions, including those sites indemnified by Maxus Energy Corporation (Maxus), has not changed materially since December 31, 2020.

MAXUS ENVIRONMENTAL SITES

When Occidental acquired Diamond Shamrock Chemicals Company in 1986, Maxus, a subsidiary of YPF S.A., agreed to indemnify Occidental for a number of environmental sites, including the Diamond Alkali Superfund Site (Site) along a portion of the Passaic River. On June 17, 2016, Maxus and several affiliated companies filed for Chapter 11 bankruptcy in federal district court in the State of Delaware. Prior to filing for bankruptcy, Maxus defended and indemnified Occidental in connection with clean-up and other costs associated with the sites subject to the indemnity, including the Site.

In March 2016, the EPA issued a Record of Decision (ROD) specifying remedial actions required for the lower 8.3 miles of the Lower Passaic River. The ROD does not address any potential remedial action for the upper nine miles of the Lower Passaic River or Newark Bay. During the third quarter of 2016, and following Maxus’ bankruptcy filing, Occidental and the EPA entered into an Administrative Order on Consent (AOC) to complete the design of the proposed clean-up plan outlined in the ROD at an estimated cost of $165 million. The EPA announced that it will pursue similar agreements with other potentially responsible parties.

Occidental has accrued a reserve relating to its estimated allocable share of the costs to perform the design and remediation called for in the AOC and the ROD as well as for certain other Maxus-indemnified sites. Occidental's accrued estimated environmental reserve does not consider any recoveries for indemnified costs. Occidental’s ultimate share of this liability may be higher or lower than the reserved amount, and is subject to final design plans and the resolution of Occidental's allocable share with other potentially responsible parties. Occidental continues to evaluate the costs to be incurred to comply with the AOC and the ROD and to perform remediation at other Maxus-indemnified sites in light of the Maxus bankruptcy and the share of ultimate liability of other potentially responsible parties. In June 2018, Occidental filed a complaint under CERCLA in federal district court in the State of New Jersey against numerous potentially responsible parties for reimbursement of amounts incurred or to be incurred to comply with the AOC and the ROD, or to perform other remediation activities at the Site.

In September 2021, the EPA issued a ROD for an interim remedy plan for the upper nine miles of Lower Passaic River. At this time Occidental’s potential role or responsibilities under this ROD, if any, have not yet been agreed to with the EPA. Occidental will continue to evaluate the ROD issued for the upper nine miles of the Lower Passaic River.

In June 2017, the court overseeing the Maxus bankruptcy approved a Plan of Liquidation (Plan) to liquidate Maxus and create a trust to pursue claims against current and former parents YPF and each of its respective subsidiaries and affiliates (YPF) and Repsol, S.A. and each of its respective subsidiaries and affiliates (Repsol), as well as others to satisfy claims by Occidental and other creditors for past and future cleanup and other costs. In July 2017, the court-approved Plan became final and the trust became effective. The trust is pursuing claims against YPF, Repsol and others and is expected to distribute assets to Maxus' creditors in accordance with the trust agreement and Plan. In June 2018, the trust filed its complaint against YPF and Repsol in Delaware bankruptcy court asserting claims based upon, among other things, fraudulent transfer and alter ego. During 2019, the bankruptcy court denied Repsol's and YPF's motions to dismiss the complaint as well as their motions to move the case away from the bankruptcy court. Discovery remains ongoing at the time of this report.

NOTE 10 - RETIREMENT AND POSTRETIREMENT BENEFIT PLANS

Occidental has various defined contribution and defined benefit plans for its salaried, domestic union and non-union hourly and certain foreign national employees. In addition, Occidental also provides medical and other benefits for certain active, retired and disabled employees and their eligible dependents.

The following table contains a summary of Occidental's retirement and postretirement benefits plan costs for the three and nine months ended September 30, 2021 and 2020:

						Three months ended September 30,												Nine months ended September 30,
millions						2021						2020						2021						2020
Net gains related to pension settlement and curtailment (a)						1						$	8					11						$	142
Net periodic benefit costs related to pension special termination benefits (a)						—						$	3					—						$	21
Net periodic benefit costs (gains) related to pension benefits excluding settlement, curtailment and special termination benefits						(4)						$	(2)					(12)						$	22
Net periodic benefit costs related to postretirement benefits						23						$	18					61						$	56
Contributions to qualified and supplemental pension plans						5						$	30					157						$	132

(a) Net gains related to pension settlement and curtailment and costs of special termination benefits for the three and nine months ended September 30, 2021 and 2020 primarily related to a separation program and the freezing of benefit accruals for Anadarko employees.

The increase in 2021 contributions was primarily due to distributions related to the separation program and freezing of benefit accruals described above and for contributions which were previously deferred in 2020 under the Coronavirus Aid, Relief, and Economic Security Act.

NOTE 11 - EARNINGS PER SHARE AND STOCKHOLDERS' EQUITY

The following table presents the calculation of basic and diluted net income (loss) attributable to common stockholders per share:

						Three months ended September 30,												Nine months ended September 30,
millions except share and per-share amounts						2021						2020						2021						2020
Net income (loss) from continuing operations						$	830					$	(3,655)					$	1,229					$	(12,384)
Income (loss) from discontinued operations						(2)						80						(444)						(1,335)
Net income (loss)						828						(3,575)						785						(13,719)
Less: Preferred stock dividends						(200)						(203)						(600)						(644)
Net income (loss) attributable to common stockholders						$	628					$	(3,778)					$	185					$	(14,363)
Less: Net income allocated to participating securities						(5)						—						(1)						—
Net income (loss), net of participating securities						623						(3,778)						184						(14,363)
Weighted-average number of basic shares						935.4						929.3						934.4						913.9
Basic income (loss) per common share						$	0.67					$	(4.07)					$	0.20					$	(15.72)
Net income (loss), net of participating securities						$	623					$	(3,778)					$	184					$	(14,363)
Weighted-average number of basic shares						935.4						929.3						934.4						913.9
Dilutive securities						22.3						—						19.8						—
Dilutive effect of potentially dilutive securities						957.7						929.3						954.2						913.9
Diluted income (loss) per common share						$	0.65					$	(4.07)					$	0.19					$	(15.72)

As of September 30, 2021, warrants and options covering approximately 87 million shares of Occidental common stock were excluded from the diluted shares as their effect would have been anti-dilutive. As of September 30, 2020, warrants and options covering approximately 200 million shares of Occidental common stock were excluded from the diluted shares as their effect would have been anti-dilutive.

NOTE 12 - SEGMENTS

Occidental conducts its operations through three segments: (1) oil and gas (2) chemical and (3) midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses, Anadarko acquisition-related costs and unallocated corporate expenses are included under corporate and eliminations. Intersegment sales eliminate upon consolidation and are generally made at prices approximating those that the selling entity would be able to obtain in third-party transactions. The following table presents Occidental’s industry segments:

millions						Oil and gas (a)						Chemical						Midstream and marketing (b)						Corporate and eliminations (c)						Total
Three months ended September 30, 2021
Net sales						$	4,955					$	1,396					$	702					$	(261)					$	6,792
Income (loss) from continuing operations before income taxes						$	1,467					$	407					$	20					$	(677)					$	1,217
Income tax expense						—						—						—						(387)						(387)
Income (loss) from continuing operations						$	1,467					$	407					$	20					$	(1,064)					$	830
Three months ended September 30, 2020
Net sales						$	2,989					$	937					$	364					$	(182)					$	4,108
Income (loss) from continuing operations before income taxes						$	(1,072)					$	178					$	(2,791)					$	(373)					$	(4,058)
Income tax benefit						—						—						—						403						403
Income (loss) from continuing operations						$	(1,072)					$	178					$	(2,791)					$	30					$	(3,655)
millions						Oil and gas (a)						Chemical						Midstream and marketing (b)						Corporate and eliminations (c)						Total
Nine months ended September 30, 2021
Net sales						$	13,124					$	3,671					$	2,006					$	(758)					$	18,043
Income (loss) from continuing operations before income taxes						$	2,036					$	970					$	272					$	(1,603)					$	1,675
Income tax expense						—						—						—						(446)						(446)
Income (loss) from continuing operations						$	2,036					$	970					$	272					$	(2,049)					$	1,229
Nine months ended September 30, 2020
Net sales						$	10,089					$	2,745					$	1,358					$	(543)					$	13,649
Income (loss) from continuing operations before income taxes						$	(8,570)					$	472					$	(4,085)					$	(2,097)					$	(14,280)
Income tax benefit						—						—						—						1,896						1,896
Income (loss) from continuing operations						$	(8,570)					$	472					$	(4,085)					$	(201)					$	(12,384)

(a) The three months ended September 30, 2021 included $97 million of net oil, gas, and CO2 derivative losses and $17 million in asset impairments. The nine months ended September 30, 2021 included $277 million of net oil, gas, and CO2 derivative losses and $173 million of asset impairments. The three and nine months ended September 30, 2020 included $795 million in net asset sale losses. Additionally, the nine months ended September 30, 2020 included $7.0 billion related to asset impairments and other charges partially offset by a $1.1 billion gain on the oil collars and call options.

(b) The three months ended September 30, 2021 included $11 million of net derivative mark-to-market losses. The nine months ended September 30, 2021 included $124 million of gains on sales, primarily from the sale of 11.5 million limited partner units in WES, and $176 million in derivative mark-to-market losses. The three and nine months ended September 30, 2020 included $2.7 billion of the other-than-temporary impairment of WES, an equity investment. Additionally, the nine months ended September 30, 2020 included $1.4 billion of impairments related to the write-off of goodwill and a loss from an equity investment related to WES's write-off of its goodwill.

(c) The three months ended September 30, 2021 included $88 million of losses on debt tenders, $26 million of net derivative mark-to-market losses on interest rate swaps and $29 million of Anadarko acquisition-related costs. The nine months ended September 30, 2021 included $88 million of losses on debt tenders, $150 million net derivative mark-to-market gains on interest rate swaps and $122 million of Anadarko acquisition-related costs. The nine months ended September 30, 2020 included $302 million of Anadarko acquisition-related costs and a $577 million loss on interest rate swaps.