Oxy Boasts Record 12 Month Income of $5.4B

Occidental Petroleum Corporation announced record net income of $5.400 billion ($6.44 per diluted share) for the twelve months of 2007, compared with $4.191 billion ($4.87 per diluted share) for the twelve months of 2006.

Net income for the fourth quarter of 2007 was $1.452 billion ($1.74 per diluted share), compared with $930 million ($1.09 per diluted share) for the fourth quarter of 2006.

In announcing the results, Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, "Oxy achieved the highest full year net income in our history and another record quarter core results. Driven largely by record oil and gas earnings, this achievement reflects the continued success of our strategy to focus on profitable, long-lived oil and gas assets, a disciplined investment philosophy and maintaining a strong balance sheet. We are pleased with the 25.7% return on equity for the full year of 2007.

"In 2007, Occidental's consolidated subsidiaries preliminary proved reserve additions from all sources totaled 242 million barrels of oil equivalent (BOE) compared to production of 209 million BOE, for a production replacement rate of 116 percent.

"While high commodity prices clearly have boosted earnings throughout the industry, Oxy has consistently produced top-quartile results in capturing the value from higher prices on an equivalent barrel basis and delivering it to the bottom line."

Oil and gas segment earnings were $2.599 billion for the fourth quarter of 2007, compared with $1.422 billion for the same period in 2006. The $1.2 billion increase in the fourth quarter 2007 segment earnings reflected $1.3 billion of increases from record crude oil and higher natural gas prices and volumes from the Dolphin project in the UAE coming on line in 2007, partially offset by increased DD&A rates and higher operating expenses.

The average price for West Texas Intermediate crude oil in the fourth quarter of 2007 was $90.68 per barrel, compared to $60.20 per barrel in the fourth quarter of 2006. Oxy's realized price for worldwide crude oil was $80.30 per barrel for the fourth quarter of 2007, compared with $52.55 per barrel for the fourth quarter of 2006. The average price for NYMEX gas in the fourth quarter of 2007 was $7.06 per MCF, compared with $6.27 per MCF in the fourth quarter of 2006. Domestic realized gas prices increased from $5.63 per MCF in the fourth quarter of 2006 to $6.77 per MCF for the fourth quarter of 2007. For the fourth quarter of 2007, daily oil and gas production averaged 590,000 barrels of oil equivalent (BOE), compared with 561,000 BOE per day produced in the fourth quarter of 2006.

Net income for the twelve months of 2007 was a record $5.400 billion ($6.44 per diluted share), compared with $4.191 billion ($4.87 per diluted share) for the twelve months of 2006.

Core results were also a record $4.405 billion ($5.25 per diluted share) for the twelve months of 2007, compared with $4.116 billion ($4.78 per diluted share) for the twelve months of 2006. See the attached schedule for a reconciliation of net income to core results.

Oil and gas segment earnings were $8.318 billion for the twelve months of 2007, compared with $6.880 billion for the same period of 2006. Oil and gas core results were $7.730 billion for the twelve months of 2007 after excluding gains from the sale of Oxy's joint venture in Russia, sales of exploration properties, net of asset impairments, sales of domestic oil and gas interests, and litigation settlements. The increase of $850 million in the twelve months of 2007 core results from $6.880 billion in 2006 reflected $1.3 billion from higher crude oil and natural gas prices, and increased production, including Dolphin coming on line in the third quarter of 2007, partially offset by higher DD&A rates, exploration and operating expenses.

The average price for West Texas Intermediate crude oil in the twelve months of 2007 was $72.32 per barrel compared to $66.23 per barrel in the twelve months of 2006. Oxy's realized price for worldwide crude oil was $64.77 per barrel for the twelve months of 2007, compared with $57.81 per barrel for the twelve months of 2006. The average price for NYMEX gas in the twelve months of 2007 was $7.12 per MCF, compared with $7.82 per MCF in the twelve months of 2006. Domestic realized gas prices increased slightly from $6.49 per MCF in the twelve months of 2006 to $6.53 per MCF for the same period of 2007.

For the twelve months of 2007, daily oil and gas production averaged 570,000 BOE, compared with 545,000 BOE per day produced from continuing operations in the twelve months of 2006.

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