Occidental completed the acquisition of CrownRock L.P. on August 1, 2024, for total consideration of approximately $12.4 billion, adding to Occidental's oil and gas portfolio in the Permian Basin. This acquisition is expected to be immediately cash flow accretive.

Occidental announced a divestiture program between $4.5 billion and $6.0 billion in connection with the CrownRock Acquisition, with the intention to use the proceeds to repay debt. As of the date of this filing, Occidental has closed or announced divestitures totaling $970 million in 2024.

Occidental's low-carbon ventures businesses seek to leverage Occidental's legacy of carbon management expertise to develop carbon capture, utilization and storage projects, and invest in other low-carbon technologies intended to reduce greenhouse gas emissions.

Occidental is working to manage inflation impacts by capitalizing on operational efficiencies, proactive contract management and working closely with vendors to secure the supply of critical materials.

Occidental intends to utilize future operating cash flows to deleverage until principal debt is below $15 billion and plans to repay at least $4.5 billion of debt within 12 months of closing the CrownRock Acquisition with proceeds from the divestiture program and excess cash flows.

Capital expenditures were approximately $3.6 billion for the six months ended June 30, 2024, compared to $3.1 billion for the same period in 2023. The increase in capital spending represented increased activities in the domestic oil and gas segment, the continued construction of STRATOS, and continued expansion and conversion activities of the chemical segment.

Occidental's operations, financial condition, cash flows and levels of expenditures are highly dependent on oil prices and, to a lesser extent, NGL and natural gas prices, the Midland-to-Gulf-Coast oil spreads, chemical product prices and inflationary pressures.

Occidental is subject to stringent environmental laws and regulations, and is also involved in various legal proceedings. The outcome of these matters could have a material adverse impact on Occidental.

Any downgrade in credit ratings could impact Occidental's ability to access capital markets and increase its cost of capital.

The CrownRock acquisition strengthens Occidental's position in the Permian Basin, a key oil and gas producing region. This acquisition is expected to be immediately cash flow accretive.

Occidental's low-carbon ventures businesses seek to leverage Occidental's legacy of carbon management expertise to develop carbon capture, utilization and storage projects, and invest in other low-carbon technologies intended to reduce greenhouse gas emissions.

The chemical segment experienced lower realized prices across most products and lower product demand, which impacted segment earnings.

Occidental is working to manage inflation impacts by capitalizing on operational efficiencies, proactive contract management and working closely with vendors to secure the supply of critical materials.

Occidental's capital and operational priorities for 2024 are intended to maximize cash flow through focused investments in short and medium-cycle projects to enhance current year and future cash flows.

Oil and gas segment results were impacted by higher domestic lease operating and transportation expenses.

Occidental is investing in low-carbon technologies intended to reduce greenhouse gas emissions from Occidental's operations and strategically partner with other industries to help reduce their emissions, including the commercialization of direct air capture technology.

Capital expenditures included the continued expansion and conversion activities of the chemical segment's Battleground chlor-alkali plant to membrane technology.

The filing does not provide specific details on R&D investments, other than the continued investment in low-carbon technologies.

Occidental intends to apply the proceeds from asset divestitures to deleveraging until principal debt is below $15 billion, and plans to repay at least $4.5 billion of debt within 12 months of closing the CrownRock Acquisition.

As of June 30, 2024, Occidental has approximately $1.2 billion remaining under its share repurchase program, which was authorized in 2023.

During the six months ended June 30, 2024, Occidental declared dividends to common shareholders of $398 million or $0.44 per share.

Occidental's low-carbon ventures businesses seek to leverage Occidental's legacy of carbon management expertise to develop carbon capture, utilization and storage projects, and invest in other low-carbon technologies intended to reduce greenhouse gas emissions.

The filing does not provide specific details on social responsibility initiatives, other than the focus on low-carbon ventures.

Occidental's environmental compliance costs have generally increased over time and are expected to rise in the future.

Occidental's operations, financial condition, cash flows and levels of expenditures are highly dependent on oil prices and, to a lesser extent, NGL and natural gas prices.

It is expected that the price of oil will be volatile for the foreseeable future given the current geopolitical risks, evolving macro-economic environment that impacts energy demand, future actions by OPEC and non-OPEC oil producing countries, the Russia-Ukraine war and the conflicts in the Middle East.

Inflationary pressures in the macro-economic environment are impacting Occidental's operations.