Occidental Petroleum : Shareholder Document

2021

ANNUAL REPORT

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2021 ACHIEVEMENTS

FINANCIAL

• • Record free cash flow before working capital of $8.8 billion1

• • Retired $6.7 billion of debt

• • Large-scale divestiture program complete

OPERATIONAL

• • Proved reserves increased by ~600 MMboe to ~3,500 MMboe2

• • Multiple drilling and completion records set across the business

• • Record OxyChem earnings

HEALTH, SAFETY AND ENVIRONMENTAL

• • Workforce achieved one of the best OSHA injury and illness incidence rates in company history, despite COVID-19

• • Additional short-and medium-term greenhouse gas emissions-reduction targets announced

• • Sustainability-linked credit facilities established

• • Joined United Nations-led Oil and Gas Methane Partnership 2.0

  • 1 For a reconciliation to the most comparable GAAP financial measure of operating cash flow from continuing operations, see the inside back cover.

  • 2 Million barrels of oil equivalent.

ABOUT US

Oxy is an international energy company with assets primarily in the United States, the Middle East and North Africa. We are one of the largest oil producers in the U.S., including a leading producer in the Permian and DJ basins, and offshore Gulf of Mexico. Our midstream and marketing segment provides flow assurance and maximizes the value of our oil and gas. Our chemical subsidiary OxyChem manufactures the building blocks for life-enhancing products. Our Oxy Low Carbon Ventures (OLCV) subsidiary is advancing leading-edge technologies and business solutions that economically grow our business while reducing emissions. We are committed to using our global leadership in carbon management to advance a lower-carbon world.

LETTER FROM CEO

2021 was an outstanding year for Oxy, as operational improvements drove record free cash-flow generation and a return to profitability. Our global teams delivered some of their best results ever with an emphasis on safety, sustainability and social responsibility, positioning us to significantly enhance shareholder returns while advancing our low-carbon strategy.

As part of our commitment to returning capital to shareholders, the Board of Directors approved an increase to our common dividend in February 2022, as well as a share repurchase program. It is our goal to reward our shareholders with the triple benefit of a sustainable common dividend, a continuously strengthening financial position and an active share repurchase program.

Addressing climate change is important to us, and we are taking action to do our part. We are proud to be one of only a few oil and gas companies with net-zero goals that are aligned with the Paris Agreement's 1.5-degree Celsius pathway. In December, Oxy became the first U.S. upstream oil and gas company to enter into sustainability-linked credit facilities, which include absolute reductions in our CO2 equivalent emissions as the key performance indicator. We set additional short- and medium-term targets for emissions reduction and geologic storage or use of captured CO2. In 2021, Oxy endorsed the

Our robust performance stems from our teams' ingenuity and hard work. Throughout 2021, we capitalized on efficiency improvements by rapidly deploying new techniques across our operations, enabling us to accelerate time to market for our products while generating meaningful capital savings. We achieved record drilling cycle times in the Permian Basin, Rockies, Gulf of Mexico and in Oman, and set new efficiency benchmarks across our portfolio. Working with our partner ADNOC in the UAE, we are expanding the Al Hosn Gas facility to improve efficiency and capacity. Our OxyChem business had its highest earnings in over 30 years. OLCV, our low-carbon business, expanded its pursuit of carbon capture projects that position us to realize our net-zero goals and generate significant long-term opportunities. We are completing the engineering design of our direct air capture facility in the Permian and look forward to starting construction. This carbon removal technology has the potential to meaningfully reduce atmospheric carbon dioxide (CO2) concentrations and complement global emissions-reduction efforts.

Methane Guiding Principles and Oil and Gas Methane Partnership 2.0, a Climate and Clean Air Coalition initiative led by the United Nations Environment Programme, demonstrating our commitment to enhancing methane emissions reporting and reducing those emissions. OLCV is a founding partner in the CCS+ Initiative to advance carbon accounting with the goal of scaling up global decarbonization and carbon removal.

Safety is integral to our company, and we achieved another strong performance in 2021. Diversity and inclusion remain cornerstones of Oxy's culture and are critical to attracting and retaining talent, as well as a guiding principle in our commitment to the communities where we live and work. We were pleased to be ranked among Fortune's Most Admired Companies' Mining, Crude-Oil Production category in 2022. Oxy has made the list every reported year since 2008, including the No. 1 ranking 11 times.

I want to thank our Board of Directors for their leadership in promoting strong corporate governance and shareholder engagement.

In late 2021, Oxy launched our new Zero In™ brand, which highlights the bold steps we're taking for a low-carbon future by reducing emissions across our operations and helping others do the same. "Zero In" unites our talented workforce's capacity to advance every part of our business today and develop the answers we will need tomorrow as we strive to lead in carbon management-an extension of our core oil and gas and chemical businesses that I believe can significantly enhance our enterprise value.

BOARD OF DIRECTORS & MANAGEMENT

STEPHEN I. CHAZEN 4

Independent Chairman, Director since 2020 President, Chief Executive Officer and Chairman, Magnolia Oil & Gas Corporation

JACK B. MOORE 2, 3, 4

Independent Vice Chairman since 2019, Director since 2016, Former President and Chief Executive Officer, Cameron International

VICKI HOLLUB

Director since 2015

President and Chief Executive Officer, Oxy

ANDREW F. GOULD 1, 4, 5, 6

Director since 2020

Former Chairman and Chief Executive Officer, Schlumberger

VICKY A. BAILEY

Director since 2022

Former Assistant Secretary, Domestic Policy and International Affairs, U.S. Department of Energy President, Anderson Stratton International, LLC

COMMITTEES OF THE BOARD

• 1 Audit Committee: Avedick B. Poladian, Chair

  CARLOS M. GUTIERREZ 1, 2, 6

  Director since 2009

  Co-Founder, Executive Chairman and CEO, EmPath, Inc.

  AVEDICK B. POLADIAN 1, 2, 3

  Director since 2008

  Former Executive Vice President and Chief Operating Officer, Lowe Enterprises

• 2 Corporate Governance and Nominating Committee: Carlos M. Gutierrez, Chair

• 3 Executive Compensation Committee: Jack B. Moore, Chair

• 4 Advisory Committee: Stephen I. Chazen, Chair

• 5 Environmental, Health and Safety Committee: Andrew F. Gould, Chair

• 6 Sustainability and Shareholder Engagement Committee: Robert M. Shearer, Chair

WILLIAM R. KLESSE 3, 5

Director since 2013

Former Chief Executive Officer and Chairman of the Board, Valero Energy

ROBERT M. SHEARER 1, 5, 6

Director since 2019

Former Managing Director, BlackRock Advisors, LLC

MARGARITA PALÁU-HERNÁNDEZ 3, 5

Director since 2020

Chief Executive Officer, Hernandez Ventures LLC

PRESIDENT AND CHIEF EXECUTIVE OFFICER

Vicki Hollub

SENIOR VICE PRESIDENTS AND KEY DIVISIONAL EXECUTIVES

Marcia E. Backus | Senior Vice President, General Counsel and Chief Compliance Officer Robert L. Peterson | Senior Vice President and Chief Financial Officer

Richard A. Jackson | President, Operations, Onshore Resources and Carbon Management Kenneth Dillon | President, International Oil and Gas Operations

Peter J. Bennett | President, Development, Onshore Resources and Carbon Management Neil R. Ackerman | President, Occidental Chemical Corporation

Jeff F. Simmons | Senior Vice President, Technical and Operations Support & CPTO

Sunil Mathew | Vice President, Strategic Planning and Analysis and Business Development Frederick A. Forthuber | President, Oxy Energy Services

Charles F. Weiss | Senior Vice President, Environmental and Sustainability

VICE PRESIDENTS

Vincent A. Alspach | Vice President, Tax

Jeffrey T. Alvarez | Vice President, Investor Relations Jaime Casas | Vice President and Treasurer

Christopher O. Champion | Vice President, Chief Accounting Officer and Controller Ioannis A. (Yanni) Charalambous | Vice President and Chief Information Officer Nicole E. Clark | Vice President, Deputy General Counsel and Corporate Secretary Ian M. Davis | Vice President, Government Relations

Darin S. Moss | Vice President, Human Resources

Angela R. Johnson | Vice President, Diversity and Inclusion Eric P. Moses | Vice President, Corporate Affairs

Megan M. Wiesmann | Vice President, Internal Audit