SELECTED HISTORICAL FINANCIAL DATA
The following selected historical financial information is being provided to assist you in your analysis of the financial aspects of the transaction.
The Occidental annual historical information is derived from the audited consolidated financial statements of Occidental as of and for each of the years in the five-year period ended December 31, 2018. The Occidental data as of and for the three months ended March 31, 2019 and 2018 has been derived from the unaudited interim financial statements of Occidental and, in the opinion of Occidental’s management, includes all normal and recurring adjustments that are considered necessary for the fair presentation of the results for those interim periods.
The Anadarko annual historical information is derived from the audited consolidated financial statements of Anadarko as of and for each of the years in the five-year period ended December 31, 2018. The Anadarko data as of and for the three months ended March 31, 2019 and 2018 has been derived from the unaudited interim financial statements of Anadarko and, in the opinion of Anadarko’s management, includes all normal and recurring adjustments that are considered necessary for the fair presentation of the results for those interim periods.
The information is only a summary and should be read in conjunction with each company’s historical consolidated financial statements and related notes contained in Occidental’s and Anadarko’s respective Annual Reports on Form 10-K for the year ended December 31, 2018 and Quarterly Reports on Form 10-Q for the quarter ended March 31, 2019, which are incorporated by reference into this proxy statement/prospectus, as well as other information that has been filed with the SEC, including the Form 8-K which Anadarko filed on May 15, 2019 in order to recast the segment information included in Anadarko’s Annual Report on Form 10-K for the year ended December 31, 2018, following a change in its reportable segments during the quarter ended March 31, 2019. For information on where you can obtain copies of this information, see “Where You Can Find More Information” beginning on page . The historical results included below and elsewhere in this proxy statement/prospectus or incorporated by reference herein are not necessarily indicative of the future performance of Occidental, Anadarko or the combined company after the transaction.
Occidental Petroleum Corporation(1)
Three Months Ended March 31, |
Year Ended December 31, |
||||||||||||||||||||
(in millions, except per-share amounts) |
2019 |
2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
||||||||||||||
(unaudited) |
|||||||||||||||||||||
Results of Operations(2) |
|||||||||||||||||||||
Net sales |
$ | 4,004 | $ | 3,763 | $ | 17,824 | $ | 12,508 | $ | 10,090 | $ | 12,480 | $ | 19,312 | |||||||
Income (loss) from continuing operations |
$ | 631 | $ | 708 | $ | 4,131 | $ | 1,311 | $ | (1,002 | ) |
$ | (8,146 | ) |
$ | (130 | ) |
||||
Net income (loss) attributable to common stock |
$ | 631 | $ | 708 | $ | 4,131 | $ | 1,311 | $ | (574 | ) |
$ | (7,829 | ) |
$ | 616 | |||||
Basic earnings (loss) per common share from continuing operations |
$ | 0.84 | $ | 0.92 | $ | 5.40 | $ | 1.71 | $ | (1.31 | ) |
$ | (10.64 | ) |
$ | (0.18 | ) |
||||
Basic earnings (loss) per common share |
$ | 0.84 | $ | 0.92 | $ | 5.40 | $ | 1.71 | $ | (0.75 | ) |
$ | (10.23 | ) |
$ | 0.79 | |||||
Diluted earnings (loss) per common share |
$ | 0.84 | $ | 0.92 | $ | 5.39 | $ | 1.70 | $ | (0.75 | ) |
$ | (10.23 | ) |
$ | 0.79 | |||||
Dividends Per Common Share |
$ | 0.78 | $ | 0.77 | $ | 3.10 | $ | 3.06 | $ | 3.02 | $ | 2.97 | $ | 2.88 | |||||||
Weighted Average Basic Shares Outstanding (millions) |
749 | 766 | 762 | 765 | 764 | 766 | 781 | ||||||||||||||
As of March 31, |
As of December 31, |
||||||||||||||||||||
2019 |
2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
|||||||||||||||
Financial Position(2) |
|||||||||||||||||||||
Total assets |
$ | 44,380 | $ | 42,808 | $ | 43,854 | $ | 42,026 | $ | 43,109 | $ | 43,409 | $ | 56,237 | |||||||
Long-term debt, net |
$ | 10,203 | $ | 10,309 | $ | 10,201 | $ | 9,328 | $ | 9,819 | $ | 6,855 | $ | 6,816 | |||||||
Stockholders’ equity |
$ | 21,236 | $ | 20,722 | $ | 21,330 | $ | 20,572 | $ | 21,497 | $ | 24,350 | $ | 34,959 | |||||||
Market Capitalization(3) |
$ | 49,509 | $ | 49,745 | $ | 45,998 | $ | 56,357 | $ | 54,437 | $ | 51,632 | $ | 62,119 | |||||||
Cash Flow from Continuing Operations |
|||||||||||||||||||||
Operating: |
|||||||||||||||||||||
Cash flow from continuing operations |
$ | 948 | $ | 1,009 | $ | 7,669 | $ | 4,861 | $ | 2,520 | $ | 3,251 | $ | 8,879 | |||||||
Investing: |
|||||||||||||||||||||
Capital expenditures |
$ | (1,259 | ) |
$ | (1,032 | ) |
$ | (4,975 | ) |
$ | (3,599 | ) |
$ | (2,717 | ) |
$ | (5,272 | ) |
$ | (8,930 | ) |
Cash provided (used) by all other investing activities, net |
$ | (156 | ) |
$ | 61 | $ | 1,769 | $ | 520 | $ | (2,026 | ) |
$ | (148 | ) |
$ | 2,678 | ||||
Financing: |
|||||||||||||||||||||
Cash dividends paid |
$ | (591 | ) |
$ | (592 | ) |
$ | (2,374 | ) |
$ | (2,346 | ) |
$ | (2,309 | ) |
$ | (2,264 | ) |
$ | (2,210 | ) |
Purchases of treasury stock |
$ | (237 | ) |
$ | — | $ | (1,248 | ) |
$ | (25 | ) |
$ | (22 | ) |
$ | (593 | ) |
$ | (2,500 | ) |
|
Cash provided by all other financing activities, net |
$ | 14 | $ | 488 | $ | 520 | $ | 28 | $ | 1,529 | $ | 1,515 | $ | 6,403 | |||||||
| (1) | Consolidated for Occidental and its subsidiaries. The statements of income and cash flows related to California Resources have been treated as discontinued operations for all periods presented. The assets and liabilities of California Resources were removed from Occidental’s consolidated balance sheet as of November 30, 2014. |
| (2) | See the MD&A of Occidental’s Annual Report on Form 10-K for the year ended December 31, 2018 and the Notes to the Consolidated Financial Statements contained therein for information regarding acquisitions and dispositions, discontinued operations and other items affecting comparability. |
| (3) | Market capitalization is calculated by multiplying the year-end total shares of common stock outstanding, net of shares held as treasury stock, by the year-end closing stock price. |
Anadarko Petroleum Corporation(1)
Three Months Ended March 31, |
Year Ended December 31, |
||||||||||||||||||||
(in millions, except share amounts) |
2019 |
2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
||||||||||||||
(unaudited) |
|||||||||||||||||||||
Sales Revenues(2): |
$ | 3,126 | $ | 3,026 | $ | 13,070 | $ | 10,969 | $ | 8,447 | $ | 9,486 | $ | 16,375 | |||||||
Gains (Losses) on Divestitures and Other, net |
$ | 92 | $ | 19 | $ | 312 | $ | 939 | $ | (578 | ) |
$ | (788 | ) |
$ | 2,095 | |||||
Total Revenues and Other |
$ | 3,218 | $ | 3,045 | $ | 13,382 | $ | 11,908 | $ | 7,869 | $ | 8,698 | $ | 18,470 | |||||||
Operating Income (Loss) |
$ | 834 | $ | 551 | $ | 2,619 | $ | (565 | ) |
$ | (2,372 | ) |
$ | (8,743 | ) |
$ | 5,438 | ||||
Net Income (Loss)(3) |
$ | 96 | $ | 174 | $ | 752 | $ | (211 | ) |
$ | (2,808 | ) |
$ | (6,812 | ) |
$ | (1,563 | ) |
|||
Net Income (Loss) Attributable to Common Stockholders |
$ | (15 | ) |
$ | 121 | $ | 615 | $ | (456 | ) |
$ | (3,071 | ) |
$ | (6,692 | ) |
$ | (1,750 | ) |
||
Per Common Share (amounts attributable to common stockholders) |
|||||||||||||||||||||
Net Income (Loss)—Basic |
$ | (0.03 | ) |
$ | 0.23 | $ | 1.20 | $ | (0.85 | ) |
$ | (5.90 | ) |
$ | (13.18 | ) |
$ | (3.47 | ) |
||
Net Income (Loss)—Diluted |
$ | (0.03 | ) |
$ | 0.22 | $ | 1.20 | $ | (0.85 | ) |
$ | (5.90 | ) |
$ | (13.18 | ) |
$ | (3.47 | ) |
||
Dividends |
$ | 0.30 | $ | 0.25 | $ | 1.05 | $ | 0.20 | $ | 0.20 | $ | 1.08 | $ | 0.99 | |||||||
Average Number of Common Shares Outstanding—Basic |
$ | 490 | $ | 518 | $ | 504 | $ | 548 | $ | 522 | $ | 508 | $ | 506 | |||||||
Average Number of Common Shares Outstanding—Diluted |
$ | 490 | $ | 519 | $ | 504 | $ | 548 | $ | 522 | $ | 508 | $ | 506 | |||||||
Three Months Ended March 31, |
Year Ended December 31, |
||||||||||||||||||||
(in millions, except share amounts) |
2019 |
2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
||||||||||||||
(unaudited) |
|||||||||||||||||||||
Net Cash Provided by (Used in) Operating Activities(4) |
$ | 1,129 | $ | 1,430 | $ | 5,929 | $ | 4,009 | $ | 3,000 | $ | (1,877 | ) |
$ | 8,466 | ||||||
Net Cash Provided by (Used in) Investing Activities |
$ | (1,528 | ) |
$ | (1,113 | ) |
$ | (5,982 | ) |
$ | (1,030 | ) |
$ | (2,742 | ) |
$ | (4,771 | ) |
$ | (6,472 | ) |
Net Cash Provided by (Used in) Financing Activities |
$ | 1,129 | $ | (1,507 | ) |
$ | (3,177 | ) |
$ | (1,613 | ) |
$ | 2,008 | $ | 220 | $ | 1,675 | ||||
Capital Expenditures |
$ | 1,296 | $ | 1,704 | $ | 6,185 | $ | 5,300 | $ | 3,314 | $ | 5,888 | $ | 9,256 | |||||||
As of March 31, |
As of December 31, |
||||||||||||||||||||
2019 |
2018 |
2018 |
2017 |
2016 |
2015 |
2014 |
|||||||||||||||
Long-term debt—Anadarko(5) |
$ | 10,695 | $ | 11,467 | $ | 10,683 | $ | 12,054 | $ | 12,162 | $ | 12,945 | $ | 12,595 | |||||||
Long-term debt—Western Midstream Partners, LP and Western Midstream Operating, LP |
$ | 5,208 | $ | 4,176 | $ | 4,787 | $ | 3,493 | $ | 3,119 | $ | 2,691 | $ | 2,409 | |||||||
Total Stockholders’ Equity |
$ | 8,928 | $ | 8,741 | $ | 8,496 | $ | 10,696 | $ | 12,212 | $ | 12,819 | $ | 19,725 | |||||||
Total Assets |
$ | 41,993 | $ | 41,076 | $ | 40,376 | $ | 42,086 | $ | 45,564 | $ | 46,331 | $ | 60,879 | |||||||
| (1) | Consolidated for Anadarko and its subsidiaries. Certain amounts for prior years have been reclassified to conform to the current presentation. |
| (2) | 2018 includes impact of adopting ASU 2014-09. |
| (3) | Includes a $1.2 billion one-time deferred tax benefit in 2017 related to Tax Reform Legislation and a $4.4 billion Tronox Incorporated-related contingent loss in 2014. |
| (4) | Includes Tronox Incorporated settlement payment of $5.2 billion in 2015. |
| (5) | Excludes Western Midstream Partners, LP and Western Midstream Operating, LP. |
