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GENERAL | 9 Months Ended
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Sep. 30, 2023
Accounting Policies [Abstract] |
General |
NOTE 1 - GENERAL
NATURE OF OPERATIONS 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 the 2022 Form 10-K. In the opinion of Occidental’s management, the accompanying unaudited Consolidated Condensed Financial Statements in this report reflect all adjustments (consisting of normal recurring adjustments) that are necessary to fairly present Occidental’s results of operations and cash flows for the nine months ended September 30, 2023 and 2022 and Occidental’s financial position as of September 30, 2023 and December 31, 2022. The income and cash flows for the periods ended September 30, 2023 and 2022 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 for the periods presented include 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 in the Consolidated Condensed Statements of Cash Flows as of September 30, 2023 and 2022:
millions | 2023 | 2022
Cash and cash equivalents | $ | 611 |  | $ | 1,233 |
Restricted cash and restricted cash equivalents included in other current assets | 22 |  | 31 |
Restricted cash and restricted cash equivalents included in long-term receivables and other assets, net | 16 |  | 15 |
Cash, cash equivalents, restricted cash and restricted cash equivalents | $ | 649 |  | $ | 1,279 |
SUPPLEMENTAL CASH FLOW INFORMATION The following table represents U.S. federal, domestic, state and international income taxes paid, tax refunds received and interest paid during the nine months ended September 30, 2023 and 2022, respectively:
millions | 2023 | 2022
Income tax payments | $ | 806 |  | $ | 1,885 |
Income tax refunds received | $ | 12 |  | $ | 89 |
Interest paid (a) | $ | 906 |  | $ | 1,236 |
(a) Net of capitalized interest of $69 million and $50 million for the nine months ended September 30, 2023 and 2022, respectively. WES INVESTMENT As of September 30, 2023, Occidental owned all of the 2.3% non-voting general partner interest and 48.8% of the limited partner units in WES. On a combined basis, with its 2% non-voting limited partner interest in WES Operating, Occidental's total effective economic interest in WES and its subsidiaries was 51.0%. In September 2023, WES purchased 5.1 million of its limited partner units from Occidental at a price of $25.00 per unit, resulting in a gain on sale of $51 million for Occidental. IMPAIRMENT Occidental did not record any impairments for the three months ended September 30, 2023. For the nine months ended September 30, 2023, Occidental recorded a pre-tax impairment of $180 million related to undeveloped acreage in the northern non-core area of the Powder River Basin where Occidental has decided not to pursue future exploration and appraisal activities. Impairment expense for the nine months ended September 30, 2023 also included a $29 million impairment related to an equity method investment in Black Butte Coal Company. ACQUISITIONS AND DIVESTITURES In September 2023, Occidental sold certain non-core proved and unproved properties in the Permian Basin for $202 million and recorded a gain on sale of assets of $142 million. SUBSEQUENT EVENTS In November 2023, Occidental entered into a joint venture agreement with BlackRock, through a fund managed by its Diversified Infrastructure business, for the development of Occidental’s first large-scale Direct Air Capture plant in Ector County, Texas. The agreement provides $550 million of committed investment from BlackRock's fund. In August 2023, Occidental entered into an agreement with Carbon Engineering Ltd., its equity method investee, to purchase the remaining 67.83% interest not already owned by Occidental or its affiliates for total cash consideration of approximately $1.1 billion, resulting in Carbon Engineering becoming a wholly owned subsidiary of Occidental. The purchase price will be made in three approximately equal annual payments, with the first payment to be made at closing. This transaction closed on November 3, 2023, and Occidental made the first payment of $355 million. The remaining two payments will be paid on the first and second anniversaries of closing. With this purchase Occidental intends to accelerate technological innovation and cost reductions in Carbon Engineering's direct-air-capture technology. The transaction qualifies as a business combination and will be accounted for using the acquisition method of accounting. Occidental's purchase price allocation is currently in process and as such was incomplete as of the issuance of these unaudited Consolidated Condensed Financial Statements.

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