XML 23 R14.htm IDEA: XBRL DOCUMENT
v3.23.1

DERIVATIVES | 3 Months Ended
--- | ---
Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivatives |
NOTE 5 - DERIVATIVES
OBJECTIVE AND STRATEGY Occidental enters into derivative financial instruments for trading purposes. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. Occidental may occasionally use a variety of derivative financial instruments and physical contracts to manage its exposure to commodity price fluctuations, foreign currency fluctuations, interest rate risks and transportation commitments and to fix margins on the future sale of stored commodity volumes. 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 debt issuances. The value of cash flow hedges was insignificant for all periods presented. DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS As of March 31, 2023, Occidental’s derivatives not designated as hedges consisted of marketing derivatives. Occidental retired all remaining outstanding interest rate swaps in the twelve months ended December 31, 2022. 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. MARKETING DERIVATIVES Occidental's marketing derivative instruments not designated as hedges are short-duration physical and financial forward contracts. As of March 31, 2023, the weighted-average settlement price of these forward contracts was $77.70 per barrel and $2.12 per Mcf for crude oil and natural gas, respectively. The weighted-average settlement price was $81.37 per barrel and $7.89 per Mcf for crude oil and natural gas, respectively, as of December 31, 2022. 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:
long (short) | March 31, 2023 | December 31, 2022
Oil commodity contracts |  |
Volume (MMbbl) | (34) |  | (33) |
Natural gas commodity contracts |  |
Volume (Bcf) | (143) |  | (112) |
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 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
March 31, 2023 |  |  |  |  |
Marketing Derivatives |  |  |  |  |
Other current assets | $ | 1,025 |  | $ | 99 |  | $ | — |  | $ | (1,090) |  | $ | 34 |
Long-term receivables and other assets, net | 9 |  | 2 |  | — |  | (9) |  | 2 |
Accrued liabilities | (1,035) |  | (87) |  | — |  | 1,090 |  | (32) |
Deferred credits and other liabilities - other | (9) |  | — |  | — |  | 9 |  | — |
December 31, 2022 |  |  |  |  |
Marketing Derivatives |  |  |  |  |
Other current assets | $ | 920 |  | $ | 127 |  | $ | — |  | $ | (980) |  | $ | 67 |
Long-term receivables and other assets, net | 1 |  | 2 |  | — |  | (1) |  | 2 |
Accrued liabilities | (938) |  | (96) |  | — |  | 980 |  | (54) |
Deferred credits and other liabilities - other | (1) |  | (1) |  | — |  | 2 |  | — |
(a)These amounts do not include collateral. Occidental netted $3 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of March 31, 2023 and netted $15 million of collateral deposited with brokers against derivative liabilities related to marketing derivatives as of December 31, 2022. GAINS AND LOSSES ON DERIVATIVES The following table presents net gains related to Occidental's derivative instruments on the Consolidated Condensed Statements of Operations:
millions | Three months ended March 31, |
Income Statement Classification | 2023 | 2022 |  |  |
Interest Rate Swaps |  |  |  |  |
Gains on interest rate swaps, net (a) | $ | — |  | $ | 135 |  |  |  |
Marketing Derivatives |  |  |  |  |
Net sales (b) | $ | 107 |  | $ | 135 |  |  |  |
(a) Occidental retired all remaining outstanding interest rate swaps in the twelve months ended December 31, 2022. (b) Includes derivative and non-derivative marketing activity. CREDIT RISK 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-related contingent features for which a net liability position existed as of March 31, 2023 was $9 million. The aggregate fair value of derivative instruments with credit-risk-contingent features for which a net liability position existed as of December 31, 2022 was $18 million.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI https://asc.fasb.org/topic&trid=2229140 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 40 -Section 50 -Paragraph 5 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126731327&loc=d3e90205-114008 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration