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LONG-TERM DEBT | 12 Months Ended
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Dec. 31, 2023
Debt Disclosure [Abstract] |
LONG-TERM DEBT |
NOTE 6 - LONG-TERM DEBT
As of December 31, 2023 and 2022, Occidental’s debt consisted of the following:
millions | 2023 | 2022 |  |  |  |
8.750% medium-term notes due 2023 | $ | — |  | $ | 22 |  |  |  |  |
2.900% senior notes due 2024 | 654 |  | 654 |  |  |  |  |
6.950% senior notes due 2024 | 291 |  | 291 |  |  |  |  |
3.450% senior notes due 2024 | 111 |  | 111 |  |  |  |  |
5.875% senior notes due 2025 | 606 |  | 606 |  |  |  |  |
3.500% senior notes due 2025 | 137 |  | 137 |  |  |  |  |
5.500% senior notes due 2025 | 465 |  | 465 |  |  |  |  |
5.550% senior notes due 2026 | 870 |  | 870 |  |  |  |  |
3.200% senior notes due 2026 | 182 |  | 182 |  |  |  |  |
3.400% senior notes due 2026 | 284 |  | 284 |  |  |  |  |
7.500% debentures due 2026 | 112 |  | 112 |  |  |  |  |
8.500% senior notes due 2027 | 489 |  | 489 |  |  |  |  |
3.000% senior notes due 2027 | 216 |  | 216 |  |  |  |  |
7.125% debentures due 2027 | 150 |  | 150 |  |  |  |  |
7.000% debentures due 2027 | 48 |  | 48 |  |  |  |  |
6.625% debentures due 2028 | 14 |  | 14 |  |  |  |  |
7.150% debentures due 2028 | 232 |  | 232 |  |  |  |  |
7.200% senior debentures due 2028 | 82 |  | 82 |  |  |  |  |
6.375% senior notes due 2028 | 578 |  | 578 |  |  |  |  |
7.200% debentures due 2029 | 135 |  | 135 |  |  |  |  |
7.950% debentures due 2029 | 116 |  | 116 |  |  |  |  |
8.450% senior debentures due 2029 | 116 |  | 116 |  |  |  |  |
3.500% senior notes due 2029 | 286 |  | 286 |  |  |  |  |
Variable rate bonds due 2030 (5.750% and 5.320% as of December 31, 2023 and 2022, respectively) | 68 |  | 68 |  |  |  |  |
8.875% senior notes due 2030 | 1,000 |  | 1,000 |  |  |  |  |
6.625% senior notes due 2030 | 1,449 |  | 1,449 |  |  |  |  |
6.125% senior notes due 2031 | 1,143 |  | 1,143 |  |  |  |  |
7.500% senior notes due 2031 | 900 |  | 900 |  |  |  |  |
7.875% senior notes due 2031 | 500 |  | 500 |  |  |  |  |
6.450% senior notes due 2036 | 1,727 |  | 1,727 |  |  |  |  |
Zero Coupon senior notes due 2036 | 673 |  | 673 |  |  |  |  |
0.000% loan due 2039 | 19 |  | — |  |  |  |  |
4.300% senior notes due 2039 | 247 |  | 247 |  |  |  |  |
7.950%senior notes due 2039 | 325 |  | 325 |  |  |  |  |
6.200% senior notes due 2040 | 737 |  | 737 |  |  |  |  |
4.500% senior notes due 2044 | 191 |  | 191 |  |  |  |  |
4.625% senior notes due 2045 | 296 |  | 296 |  |  |  |  |
6.600% senior notes due 2046 | 1,117 |  | 1,117 |  |  |  |  |
4.400% senior notes due 2046 | 424 |  | 424 |  |  |  |  |
4.100% senior notes due 2047 | 258 |  | 258 |  |  |  |  |
4.200% senior notes due 2048 | 304 |  | 304 |  |  |  |  |
4.400% senior notes due 2049 | 280 |  | 280 |  |  |  |  |
(continued on next page) |  |  |  |  |  |
millions (continued) | 2023 | 2022 |  |  |  |
7.730% debentures due 2096 | 58 |  | 58 |  |  |  |  |
7.500% debentures due 2096 | 60 |  | 60 |  |  |  |  |
7.250% debentures due 2096 | 5 |  | 5 |  |  |  |  |
Total borrowings at face value | $ | 17,955 |  | $ | 17,958 |  |  |  |  |
Adjustments to book value: |  |  |  |  |  |
Unamortized premium, net | 1,152 |  | 1,261 |  |  |  |  |
Debt issuance costs | (106) |  | (73) |  |  |  |  |
Net book value of debt | $ | 19,001 |  | $ | 19,146 |  |  |  |  |
Long-term finance leases | 591 |  | 546 |  |  |  |  |
Current finance leases | 146 |  | 143 |  |  |  |  |
Total debt and finance leases | $ | 19,738 |  | $ | 19,835 |  |  |  |  |
Less current maturities of finance leases | (146) |  | (143) |  |  |  |  |
Less current maturities of long-term debt | (1,056) |  | (22) |  |  |  |  |
Long-term debt, net | $ | 18,536 |  | $ | 19,670 |  |  |  |  |
DEBT MATURITIES As of December 31, 2023, future principal payments of debt were less than $18.0 billion, of which $1.1 billion is due in 2024, $1.2 billion in 2025, $1.4 billion in 2026, $0.9 billion in 2027, and $13.3 billion due in 2028 and thereafter. ZERO COUPONS The Zero Coupons have an aggregate principal amount due at the 2036 maturity of approximately $673 million. The Zero Coupons can be put to Occidental in October of each year, in whole or in part, for the then-accreted value of the outstanding Zero Coupons. The Zero Coupons can next be put to Occidental in October 2024, which, if put in whole, would be $362 million at such date. Occidental currently has the ability to meet this obligation and may use available capacity under the RCF to satisfy the put should it be exercised. FAIR VALUE OF DEBT Occidental estimates the fair value of fixed-rate debt based on the quoted market prices for those instruments or on quoted market yields for similarly rated debt instruments, taking into account such instruments’ maturities. The estimated fair values of Occidental’s debt as of December 31, 2023, and 2022, the majority of which were classified as Level 1, were approximately $18.1 billion and $17.6 billion, respectively. Occidental’s exposure to changes in interest rates relates primarily to its variable-rate, long-term debt obligations, and is not material. As of December 31, 2023, and 2022, variable-rate debt constituted approximately 0.4% of Occidental’s total debt. DEBT RATINGS As of December 31, 2023, Occidental’s long-term debt was rated Baa3 by Moody’s Investors Service, BBB- by Fitch Ratings and BB+ by Standard and Poor’s. Occidental's credit rating was upgraded to investment grade by Moody's Investors Service in March 2023 and by Fitch Ratings in May 2023. Any downgrade in credit ratings could impact Occidental's ability to access capital markets and increase its cost of capital. In addition, Occidental or its subsidiaries may be requested, elect to provide or in some cases be required to provide collateral in the form of cash, letters of credit, surety bonds or other acceptable support as financial assurance of their performance and payment obligations under certain contractual arrangements such as pipeline transportation contracts, environmental remediation obligations, oil and gas purchase contracts and certain derivative instruments. As of the date of this filing, Occidental had provided required financial assurances through a combination of cash, letters of credit and surety bonds and had not issued any letters of credit under the RCF or other committed facilities. For additional information, see Risk Factors in Part I, Item IA of this Form 10-K. DEBT ACTIVITY In 2022, Occidental repaid debt with a face value of more than $10.5 billion, reducing the face value of Occidental’s debt to less than $18.0 billion. The net book value of the full year repayments was $9.8 billion, which resulted in a gain of $149 million. The following table summarizes Occidental’s debt activity in 2022:
millions | Borrowings at face value
Total borrowings at face value as of December 31, 2021 | $ | 28,493 |
Repayments: |
2.600% senior notes due 2022 | $ | (101) |
2.700% senior notes due 2023 | (442) |
6.950% senior notes due 2024 | (359) |
3.450% senior notes due 2024 | (16) |
2.900% senior notes due 2024 | (295) |
3.500% senior notes due 2025 | (189) |
8.000% senior notes due 2025 | (500) |
5.875% senior notes due 2025 | (294) |
5.500% senior notes due 2025 | (285) |
5.550% senior notes due 2026 | (230) |
3.200% senior notes due 2026 | (615) |
3.400% senior notes due 2026 | (495) |
3.000% senior notes due 2027 | (418) |
8.500% senior notes due 2027 | (11) |
7.150% debentures due 2028 | (3) |
6.375% senior notes due 2028 | (22) |
3.500% senior notes due 2029 | (1,191) |
6.625% senior notes due 2030 | (51) |
6.125% senior notes due 2031 | (107) |
6.450% senior notes due 2036 | (23) |
Zero Coupon senior notes due 2036 | (1,596) |
4.300% senior notes due 2039 | (446) |
6.200% senior notes due 2040 | (13) |
4.500% senior notes due 2044 | (417) |
4.625% senior notes due 2045 | (338) |
6.600% senior notes due 2046 | (40) |
4.400% senior notes due 2046 | (552) |
4.100% senior notes due 2047 | (405) |
4.200% senior notes due 2048 | (657) |
4.400% senior notes due 2049 | (424) |
Total borrowings at face value as of December 31, 2022 | $ | 17,958 |
CROWNROCK ACQUISITION FINANCING In connection with the CrownRock Acquisition, Occidental has secured a fully-committed $5.3 billion bridge loan facility, a $2.0 billion 364-day term loan, and a $2.7 billion two-year term loan. No amounts were drawn as of December 31, 2023 under any acquisition financing. Proceeds from the loans must be used to fund all or a portion of the CrownRock Acquisition. REVOLVING CREDIT FACILITY In December 2021, Occidental entered into the Second Amended and Restated Credit Agreement in which the total committed borrowing capacity of $4.0 billion is based on a SOFR benchmark. The interest rate margin and the facility fee rates are subject to adjustments based on Occidental’s performance on specified sustainability target thresholds with respect to absolute reductions in GHG emissions from its worldwide operated assets. The RCF maturity date is June 30, 2025. In February 2024, Occidental entered into a Third Amended and Restated Credit Agreement with the same committed borrowing capacity as above, but extended the maturity date to June 30, 2028. No amounts were drawn under the facility as of December 31, 2023. Borrowings under the RCF bear interest at SOFR benchmark rates, plus a margin based on Occidental’s senior debt ratings. The facility has similar terms to other debt agreements and does not contain material adverse change clauses or debt ratings triggers that could restrict Occidental’s ability to borrow, or that would permit lenders to terminate their commitments or accelerate debt repayment. The facility provides for the termination of loan commitments and requires immediate repayment of any outstanding amounts if certain events of default occur. As of the date of this filing, Occidental had no drawn amounts under the RCF. In 2023, Occidental paid average annual facility fees of 0.22% on the total commitment amount. RECEIVABLES SECURITIZATION FACILITY In December 2021, Occidental amended and extended its existing receivables securitization facility to December 2024. In February 2023, Occidental amended the facility to expand its available borrowing capacity to $600 million. As of December 31, 2023, the facility had $600 million of available borrowing capacity and no drawn amounts. The amended facility includes adjustments based on the same specified sustainability target thresholds as contained in the RCF.

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