Occidental Petroleum OXY · USD

NOTE 15 - INDUSTRY SEGMENTS AND GEOGRAPHIC AREAS The Company conducts its operations through two segments: oil and gas and midstream and marketing. Income taxes, interest income, interest expense, environmental remediation expenses and acquisition-related costs of the Company’s operating subsidiaries and unallocated corporate expenses are consolidated under corporate and eliminations. Intersegment sales eliminate upon consolidation and are made at prices that approximate market. Identifiable assets are those assets used in the operations of the segments. Corporate assets consist of cash and restricted cash, certain corporate receivables and PP&E.In October 2025, the Company announced entry into a purchase and sale agreement with Berkshire Hathaway to sell all of the issued and outstanding equity interests in OxyChem in an all-cash transaction for $9.7 billion. The sale was completed on January 2, 2026, with final proceeds subject to post-closing adjustments. The Company reassessed its operating segments. Accordingly, the chemical segment results are presented separately as discontinued operations and corporate costs directly attributable to the chemical segment are included under discontinued operations. See Note 4 - Acquisitions, Divestitures and Other Transactions for related disclosure.The Company’s President and CEO is ultimately responsible for allocating resources and assessing the performance of each operating segment and is the Company’s CODM. The CEO may be assisted in this function by other members of the Company’s executive management including, but not limited to, the Chief Financial Officer and Chief Operating Officer. While other executives are responsible for the performance of their individual areas, the CEO is solely responsible for allocating resources across the Company as a whole.For both reporting segments, the CODM utilizes segment income (loss) from continuing operations before income taxes to measure performance, as well as allocate resources (including financial or capital resources) for each segment, predominantly in the annual budget and forecasting process.

NOTE 2 - REVENUERevenue from customers is recognized when obligations under the terms of a contract are satisfied; this generally occurs with the delivery of oil, NGL, gas or services such as transportation. Revenue from customers is measured as the amount of consideration the Company expects to receive in exchange for the delivery of goods or services. Contracts may last from one month to one year or more and may have renewal terms that extend indefinitely at the option of either party. Price is typically based on market indexes. Volumes fluctuate due to production and, in certain cases, customer demand and transportation availability.The Company does not incur significant costs to obtain contracts. Incidental items that are immaterial in the context of the contract are recognized as expenses. The Company does not typically receive payment in advance of satisfying its obligations under the terms of its sales contracts with customers; therefore, liabilities related to such payment are immaterial to the Company. The Company does not disclose consideration for remaining performance obligations with an original expected duration of one year or less or for variable consideration related to unsatisfied performance obligations.OIL AND GAS SEGMENTRevenue from oil and gas production is recognized when production is delivered and control passes to the customer. Revenues from the production of oil and gas properties in which the Company has an interest with other producers are recognized on the basis of the Company’s net revenue interest.MIDSTREAM AND MARKETING SEGMENTRevenue from pipeline and gas processing is recognized upon the completion of the transportation or processing service. Revenue from power sales is recognized upon delivery. Net marketing revenue is recognized upon completion of contract terms that are a prerequisite to payment and upon title transfer for physical deliveries. Unless the normal purchases and sales exception has been elected, net marketing revenue is classified as a derivative, reported on a net basis and recorded at fair value. Changes in fair value are reflected in net sales and excluded from revenue from customers in the table below.

NOTE 6 - LEASE COMMITMENTSLease assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. Lease assets include the discounted value of future lease payments, upfront payments and costs incurred to execute the lease and are amortized on a straight-line basis over the lease term. The Company assesses the likelihood of exercising renewal, termination and purchase options to determine the lease term. The Company uses its incremental borrowing rate at commencement date to determine the present value of lease payments. The Company separates lease and non-lease components for drilling rigs and vessels. The Company does not separate lease and non-lease components for the remainder of asset classes as the non-lease portions are not significant.The Company has operating leases from continuing operations for drilling rigs of $273 million, office space of $251 million, vessels of $191 million, compressors of $130 million and $110 million of other assets. Operating leases related to discontinued operations of $211 million are included in liabilities held for sale.The Company’s finance leases from continuing operations include compressors of $428 million, assets related to DAC operations of $292 million, office space of $208 million and $71 million of other assets. Finance leases related to discontinued operations of $47 million are included in liabilities held for sale. Property, plant and equipment included $972 million of finance lease assets as of December 31, 2025.The following summarizes maturities of lease liabilities related to continuing operations as of December 31, 2025:millionsOperating Leases (a)Finance Leases (b)Total2026$387 $248 $635 2027289 226 515 2028190 188 378 202958 152 210 203044 136 180 Thereafter68 226 294 Total lease payments1,036 1,176 2,212 Less: Discount(81)(177)(258)Total lease liabilities$955 $999 $1,954 (a)The weighted-average remaining lease term is 3.5 years and the weighted-average discount rate is 4.94%.(b)The weighted-average remaining lease term is 5 years and the weighted-average discount rate is 5.07%.

NOTE 12 - LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIESLEGAL MATTERSThe Company is involved, in the normal course of business, in lawsuits, claims and other legal proceedings that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. The Company is also involved in proceedings under CERCLA and similar federal, regional, state, provincial, tribal, local and international environmental laws. These environmental proceedings seek funding or performance of remediation and, in some cases, compensation for alleged property damage, natural resource damages, punitive damages, civil penalties, injunctive relief and government oversight costs, as described in Note 11 - Environmental Liabilities and Expenditures. Usually the Company is among many companies in these environmental proceedings and has to date been successful in sharing remediation costs with other financially sound companies. Further, some lawsuits, claims and legal proceedings involve acquired or disposed assets with respect to which a third party or the Company retains liability or indemnifies the other party for conditions that existed prior to the transaction.In accordance with applicable accounting guidance, the Company accrues reserves for outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Other than reserves for the environmental remediation discussed above and tax matters discussed below, reserves for matters that satisfied these criteria as of December 31, 2025 and 2024 were not material to the Company’s Consolidated Balance Sheets.If unfavorable outcomes of these matters were to occur, future results of operations or cash flows for any particular quarterly or annual period could be materially adversely affected. The Company’s estimates are based on information known about the legal matters and its experience in contesting, litigating and settling similar matters. The Company will reassess the probability and estimability of contingent losses as new information becomes available.TAX MATTERS AND OTHER DISPUTESDuring the course of its operations, the Company is subject to audit by tax authorities for varying periods in various federal, state, local and international tax jurisdictions. Tax years through 2021 for U.S.

NOTE 5 - LONG-TERM DEBTAs of December 31, 2025 and 2024, the Company’s debt consisted of the following:millions202520245.875% senior notes due 2025— 536 5.500% senior notes due 2025— 465 5.550% senior notes due 2026— 870 3.400% senior notes due 2026— 284 Two-year term loan due 2026 (5.475% and 6.249% as of December 31, 2025 and 2024, respectively)1,280 2,700 3.200% senior notes due 2026182 182 7.500% debentures due 2026112 112 8.500% senior notes due 2027489 489 3.000% senior notes due 2027216 216 7.125% debentures due 2027150 150 7.000% debentures due 202748 48 5.000% senior notes due 2027600 600 6.625% debentures due 202814 14 7.150% debentures due 2028232 232 7.200% senior debentures due 202882 82 6.375% senior notes due 2028578 578 7.200% debentures due 2029135 135 7.950% debentures due 2029116 116 8.450% senior debentures due 2029116 116 3.500% senior notes due 2029286 286 5.200% senior notes due 20291,200 1,200 Variable rate bonds due 2030 (4.450% and 5.710% as of December 31, 2025 and 2024, respectively)68 68 8.875% senior notes due 20301,000 1,000 6.625% senior notes due 20301,449 1,449 6.125% senior notes due 20311,143 1,143 7.500% senior notes due 2031900 900 7.875% senior notes due 2031500 500 5.375% senior notes due 20321,000 1,000 5.550% senior notes due 20341,200 1,200 6.450% senior notes due 20361,727 1,727 Zero Coupon senior notes due 2036285 673 0.000% loan due 2039 (CAD denominated)17 18 4.300% senior notes due 2039247 247 7.950% senior notes due 2039325 325 6.200% senior notes due 2040737 737 4.500% senior notes due 2044191 191 4.625% senior notes due 2045296 296 6.600% senior notes due 20461,117 1,117 4.400% senior notes due 2046424 424 4.100% senior notes due 2047258 258 4.200% senior notes due 2048304 304 4.400% senior notes due 2049280 280 (continued on next page)millions (continued)202520246.050% senior notes due 20541,000 1,000 7.730% debentures due 209658 58 7.500% debentures due 209660 60 7.

NOTE 9 - INCOME TAXESRECENT TAX LEGISLATION The OBBBA was enacted on July 4, 2025 and introduced provisions expected to benefit the Company including accelerated depreciation for newly acquired and constructed assets, favorable adjustments to interest expense limitation, immediate deduction of research and development costs, and increased tax credit values for qualified CO2 projects. In accordance with ASC 740, the financial statement impact of the OBBBA was recognized beginning in the third quarter of 2025. These provisions are expected to significantly reduce the Company’s 2025 cash tax liability.The OECD Pillar Two initiative proposes to apply a 15% global minimum tax on multinational entities, applied on a jurisdiction-by-jurisdiction basis. Several countries, including European Union member states, Canada and Oman, have enacted or are in the process of enacting legislation aligned with all or portions of Pillar Two. The Company continues to monitor and assess the impact of new OECD Pillar Two administrative guidance and Pillar Two compliant legislation proposed or enacted in the jurisdictions in which the Company operates. Based on developments to date, the Company does not anticipate any significant impact on the Company’s results of operations or cash flows from the enactment of Pillar Two legislation.

NOTE 14 - STOCK-BASED INCENTIVE PLANSOccidental issues stock-based awards to employees in accordance with the terms of the Plans. An aggregate of 188 million shares of Occidental common stock were authorized for issuance and approximately 14.4 million shares had been reserved for issuance for employee awards through December 31, 2025. As of December 31, 2025, approximately 68.8 million shares were available for grants of future awards. The 2015 Long-Term Incentive Plan requires each share covered by an award (other than options) to be counted as if three shares were issued in determining the number of shares that are available for future awards. Accordingly, the number of shares available for future awards may be less than 68.8 million depending on the type of award granted, and shares available for future awards may increase by the number of shares that are forfeited, canceled, or correspond to the portion of any stock-based awards settled in cash, including awards that were issued under a previous plan that remain outstanding. Current outstanding awards include RSUs, stock options, CROCEI awards and TSRI awards.During 2025, non-employee directors were granted awards for 60,040 shares of common stock. Compensation expense for these awards was measured using the closing quoted market price of Occidental’s common stock on the grant date and was fully recognized at that time. The Company incurred expenses of $234 million, $213 million and $203 million related to stock-based incentive plans in the years ended December 31, 2025, 2024 and 2023, respectively. The income tax benefit associated with this expense was $49 million, $45 million and $43 million in the years ended December 31, 2025, 2024 and 2023, respectively.As of December 31, 2025, unrecognized compensation expense for all unvested stock-based incentive awards was $319 million. This expense is expected to be recognized over a weighted-average period of 1.8 years. The Company accounts for forfeitures as they occur.RESTRICTED STOCK UNITSCertain employees are awarded the right to receive RSUs, some of which have performance criteria, and are in the form of, or equivalent in value to, actual shares of Occidental common stock. Depending on their terms, RSUs may be settled in stock or may be cash settled liabilities. These awards vest from one to three years following the grant date. For certain RSUs, dividend equivalents are paid during the vesting period.

NOTE 4 - ACQUISITIONS, DIVESTITURES AND OTHER TRANSACTIONS ACQUISITIONS, DIVESTITURES AND OTHER TRANSACTIONS2025During 2025, the Company sold non-core assets for $2.3 billion which included working interests in the Permian Basin for proceeds of approximately $800 million, non-operated proved and unproved royalty and mineral interests in the DJ Basin for proceeds of approximately $840 million and certain gas gathering assets in the Permian Basin for approximately $580 million. The differences in the assets’ net book values and adjusted purchase prices were treated as a normal retirements, and as a result no gains or losses were recognized.2024In December 2023, the Company entered into an agreement to purchase CrownRock for total consideration of $12.4 billion, consisting of $9.4 billion of cash consideration (inclusive of certain working capital and other customary purchase price adjustments), 29.6 million shares of Occidental common stock, and the assumption of $1.2 billion of existing debt of CrownRock. The acquisition closed on August 1, 2024, adding to the Company’s oil and gas portfolio in the Permian Basin.The CrownRock Acquisition qualified as a business combination and was accounted for using the acquisition method of accounting. The following table summarizes the cash and common stock components of the purchase price:in millions of dollars and shares (except per-share price)TotalCash portion of purchase price$9,100 Closing AdjustmentsNet Working Capital and Other Purchase Price Adjustments 273 Pre-closing dividends declared by the Company13Total Cash Purchase Price$9,386Total shares of Occidental common stock issued29.6 Occidental common stock share price$59.38 Stock portion of purchase price$1,755 Total purchase price$11,141The following table sets forth the allocation of the acquisition consideration. The Company finalized the purchase price allocation during the 12-month period following the acquisition date. Measurement period adjustments recorded were immaterial and did not result in a material impact to the statements of operations.