Occidental Petroleum distributed warrants to current shareholders allowing warrant holders to purchase OXY stock at a set price for a specified period of time. The structure of the warrant distribution was as a taxable dividend. Each current shareholder was entitled to receive .125 warrants for each OXY share owned. Fractional warrants were sold and shareholders received cash for the fractional warrants. OXY estimated the Fair Market Value of the warrants at $4.95. This is based on the average of the high and low price of the warrants on the distribution date.

The SEC filing for this distribution was in a form 8-K filed July 27, 2020. An FAQ page with information on the distribution can be found at https://www.oxy.com/investors/Services/Pages/June2020Warrants.aspx .

Resolution:

This action will need at least two entries in the accounting software. The information below is based on the information available from OXY. These instructions assume the full distribution will be considered a dividend. If this assumption is incorrect you will need to adjust the nature of the distribution at a later date.

The Dividend Entry

Go to Accounting > Securities > Cash Distribution. Here is the information you need to complete the dividend entry.

• Date: 8/3/2020
• Select Transaction Type: Dividend or Distribution
• Amount: [4.95 x .125 x (# of OXY shares owned)
  • # of OXY.WS shares received = .125 x (# of OXY shares owned)
  • 4.95 = average of high and low prices of OXY.WS on distribution date
  • For example, if you owned 100 shares of OXY your amount would be 4.95 x .125 x 100 = 61.88 (rounded)
• Ex-Dividend date: 8/3/2020
• Type : Dividend
• Select Security: Occidental Petroleum (OXY)

Save the transaction and the dividend has been entered.

The Buy Entry

Go to Accounting > Securities > Buy .

Here is the information you need to complete the buy.

• Date: 8/3/2020
• Select Security: Occidental Petroleum Warrants (OXY.WS)
• Number of Shares Bought : .125 x (# of OXY shares owned).
• Net Total of Purchase: Use the same value as the Amount from the dividend entry above. For example, for 100 OXY shares buying 12.5 OXY.WS this amount would be 61.88.
• Be sure to use the same cash account for the Dividend entry and the Buy entry.
• If your buy transaction included fractional OXY.WS shares, continue to the next step. If not, you are done with this spinoff

The Sell Entry

Go to Accounting > Securities > Sell .

Here is the information you need to complete the sell.

• Date: 8/4/2020
• Select Security: Occidental Petroleum Warrants (OXY.WS)
• Number of Shares Sold : The fractional part of the shares bought in the Buy Transaction.
• Net Proceeds: Use the cash-in-lieu amount from your broker statement.

When saved you are finally done with all transactions related to this spinoff.

IMPORTANT NOTES: Occidental registered the warrants with the ticker symbol OXY.WS. However, this symbol is not recognized by the price database used by ICLUBcentral for price downloads. While you own the warrants, the price for OXY.WS must be hand-entered for your valuations. Quotes can be found on Yahoo Finance using OXY-WT and on BigCharts.com using the symbol OXY.WT. These alternate symbols also are not recognized by the ICLUBcentral price database.

Your broker may use a different price for OXY.WS so your cost basis may differ from your broker. You may match your broker, if you wish, but it is NOT required.