Strong 2009 Performance Highlighted at Occidental Petroleum Corporation Annual Stockholders’ Meeting

LOS ANGELES--(BUSINESS WIRE)--Occidental Petroleum Corporation (NYSE:OXY) Chairman and Chief Executive Officer Dr. Ray R. Irani reported on the company’s 2009 financial and operational achievements at Oxy’s annual stockholders’ meeting today in Santa Monica, California.

“We are gratified by Oxy’s strong financial performance in 2009, a year that tested strategic and execution capabilities throughout the worldwide oil and gas industry. Amid a challenging business environment, we increased our worldwide production to the highest volume in Oxy’s history, and we achieved significant oil and gas reserve replacement of over 200 percent. We were able to achieve this growth while reducing production costs, maintaining our low debt-to-capitalization ratio and achieving exemplary safety and environmental performance,” Dr. Irani said.

Oxy increased worldwide production by 7 percent in 2009 to a company-record 645,000 barrels of oil equivalent (BOE) per day while leading its industry peers in operating income per BOE for the 11^th consecutive year. In addition, Oxy replaced 206 percent of its production in 2009, adding a total of 483 million BOE in proved reserves.

Oxy ended 2009 with net income of $2.9 billion ($3.58 per diluted share), net debt after cash of less than $1.6 billion, and a debt-to-capitalization ratio of 9 percent — among the lowest of the major oil and gas companies.

Oxy’s year-end closing stock price of $81.35 per share was the highest year-end stock price in the company’s history and 36 percent higher than the closing price at year-end 2008. Total stockholder return in 2009, based on stock price appreciation plus dividend reinvestment, was 38 percent.

Dr. Irani announced that yesterday Oxy’s Board of Directors declared a 15-percent increase in the company’s annual dividend to stockholders to an annual rate of $1.52 per share of common stock. Oxy has raised the dividend every year since 2002. With this increase, Oxy’s compounded annual dividend growth rate is 14.4 percent over the period. “The Board of Directors believes that dividend growth is an important part of delivering strong returns to Oxy’s stockholders,” Dr. Irani said.

Stockholders also received updates on significant 2009 activities in Oxy’s three core oil and gas producing regions. During the year, 58 percent of Oxy’s worldwide production was generated in the United States, 29 percent in the Middle East/North Africa and 13 percent in Latin America.

In the United States, Oxy’s 2009 growth was most evident in California, where the company’s exploration team made a significant discovery in Kern County. Announced in July, the discovery is estimated to contain between 150 million and 250 million gross BOE of oil and natural gas reserves. It is believed to be the state’s largest in 35 years and is one of the largest in Oxy’s 90-year history. Oxy also strengthened its U.S. holdings during 2009 with numerous acquisitions of properties adjacent to key operations in Texas, where Oxy is the No. 1 oil producer, and California, where it is the No. 1 natural gas producer and No. 2 oil producer.

Oxy engaged in several transactions in 2009 with its partners in the Middle East, a key growth region for the company. In Bahrain, Oxy is partnering with Mubadala of Abu Dhabi on a project to redevelop the Bahrain field, site of the first oilfield discovery in an Arab Gulf state. Field operations began on December 1, 2009. In addition, partnering with a consortium led by Eni in the fourth quarter of 2009, Oxy was awarded a license for development of the giant Zubair oilfield in southern Iraq. The signing of the contract with the Iraqi government, in January 2010, made Oxy the first of only two U.S. companies on the ground floor of the new investment opportunities in Iraq.

Dr. Irani also reported to stockholders that OxyChem, the company’s efficient chemical segment, achieved earnings of $389 million in 2009. For every product it makes, OxyChem’s market position is No. 1, 2 or 3 in the world. In 2009, OxyChem acquired the operations of the world’s largest producer of calcium chloride, a premium salt with a variety of beneficial applications, including snow and ice control for safer roads. OxyChem’s new product line has an approximately 65-percent share of the North American calcium chloride market.

Based on the preliminary tabulation of the vote announced at the Annual Meeting, all of the Oxy Directors received a majority of the votes cast, the selection of KPMG LLP as independent auditors was approved and the material terms of performance goals for Section 162(m) Awards under the 2005 Long-Term Incentive Plan to permit tax deduction was approved. Management’s proposal to approve Occidental’s executive compensation philosophy, objectives and policies was not approved. Three stockholder proposals were presented at the meeting – none of them were approved. The final vote tally will be available by May 13, 2010 in the report of inspector of election as well as in a Current Report on Form 8-K , both of which will be available at www.oxy.com.

Looking ahead, Dr. Irani said, “We plan to maintain a low-risk, low-leverage profile and a consistent focus on building stockholder value. Our strong financial performance in the past year confirms that Oxy is well positioned to continue to deliver strong results and long-term value.”

About Oxy

Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Oxy is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.

Forward-Looking Statements

Statements in this release that contain words such as “will,” “expect” or “plan,” or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; operational interruptions; changes in tax rates; exploration risks, such as drilling of unsuccessful wells; and commodity trading risks. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. Our calculation methodology for our reserves replacement ratio and related information are available in our 2009 Form 10-K and Form 8-K filed February 3, 2010. Income per barrel of oil equivalent performance comparisons exclude impairments. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.