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2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp

Occidental Petroleum Corp · Jul 31, 2014 · 38 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Second Quarter 2014 Earnings Conference Call July 31, 2014
  2. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 2
    Second Quarter 2014 Earnings Highlights Results Domestic oil production (Bbl/d) 278,000 Total company production (boe/d) 742,000 Core earnings* 1.4 billion Core diluted EPS* 1.79 1H14 CFFO before WC 5.7 billion Cash balance…
  3. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 3
    Second Quarter 2014 Earnings Oil & Gas Segment Pre-Tax Earnings PRE-TAX 2Q14 vs. 1Q14 ( in millions) 75 (42) (27) 2,104 8 2,118 Core Results 2Q14 2.1 B 1Q14 2.1 B 2Q13 2.1 B 1Q14 Sales Price Sales Volumes Higher…
  4. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 4
    Second Quarter Earnings Domestic versus International Operations For the six months year-over-year comparison, domestic operations after-tax income was 1.4 billion an increase of 13%. In the same six-month period, international…
  5. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 5
    Second Quarter 2014 Earnings Oil and Gas Total Company Production Company-wide Oil & Gas Production (mboe/d) 4 (10) 11 736 4 727 1Q14 Permian Other Domestic Colombia Other MENA 2Q14 Outages growth Note: Excludes Hugoton…
  6. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 6
    Second Quarter 2014 Earnings Oil and Gas Domestic Production Domestic oil production grew 3% on a sequential quarter-over-quarter basis Domestic Oil & Gas Production (mboe/d) 8 (0) 464 456 451 2Q13 1Q14 Oil Natural Gas &…
  7. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 7
    Second Quarter 2014 Earnings Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 2Q14 100.38 42.82 4.28 102.99 109.77 4.55 WTI % 97% 42%…
  8. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 8
    Second Quarter 2013 Earnings Oil & Gas Production Costs Production Costs (/boe) FY13 1Q14 2Q14 YTD14 13.76 14.33 14.68 14.51 Taxes other than Income (/boe) FY13 1Q14 2Q14 YTD14 2.57 2.94 2.83 2.88 2Q14 Exploration expense was…
  9. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 9
    Second Quarter 2014 Earnings Chemical Segment Core Earnings PRE-TAX 2Q14 vs. 1Q14 Guidance ( in millions) 3Q14 expected to be 150 mm. (2) (17) 24 136 (8) 133 Core Results 2Q14 133 mm 1Q14 136 mm 2Q13 144 mm 1Q14…
  10. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 10
    Second Quarter 2014 Earnings Midstream, Marketing & Other Segment Earnings PRE-TAX 2Q14 vs. 1Q14 ( in millions) 17 (2) 219 43 (9) 170 Core Results 2Q14 219 mm 1Q14 170 mm 2Q13 48 mm 1Q14 Marketing & Gas Processing…
  11. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 11
    Second Quarter 2014 Earnings 1H 2014 Cash Flow During 1H14, CFFO declined by 650 million compared to 1H13. 1H14 included a tax payment related to the gain on the sale of PAGP units and 1H13 included the collection of a tax…
  12. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 12
    Second Quarter 2014 Earnings 3Q14 & FY 2014 Guidance Summary Oil & Gas Segment * Domestic 3Q 2014 Production* Pre-tax Income Price Sensitivity Impact Oil 6,000 - 8,000 bbls/d growth. (Quarter) NGLs modest increase. Oil +/- 1/bbl =…
  13. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 13
    Second Quarter 2014 Earnings California Resources Spin-Off Update Recently announced new executive Major management team for California Resources Producing Corporation (CRC). Basins Executive Chairman Bill Albrecht President & CEO…
  14. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 14
    Second Quarter 2014 Earnings California Resources Update Oil Production (Mbo/d) 10% oil production growth 97 Generated 1.2 billion of cash flow 88 from operations in 1H 2014 Expect the CRC management team to present more…
  15. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 15
    Second Quarter 2014 Earnings Oxy Executive Leadership Team President and Chief Executive Officer Stephen I. Chazen Vicki Hollub Willie Chiang Sandy Lowe Chris Stavros Cynthia Walker Glenn Vangolen Marcia Backus President -…
  16. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 16
    Second Quarter 2014 Earnings Remaining Occidental Business Oil and Gas Focus Areas OxyChem United States Leading position High FCF, moderate in the Permian Basin. growth business. Permian Resources is a growth driver. Oxy…
  17. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 17
    Second Quarter 2014 Earnings Permian Permian Resources Expect improved margins through 7% production growth in 2Q14 drilling efficiencies, reduced well Expect well over 20% annual oil costs and enhanced oil price production growth…
  18. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 18
    Second Quarter 2014 Earnings Earnings from Production Growth and Projects Domestic production growth and start-up of the BridgeTex and Al Hosn projects are expected to offset earnings from the California separation. After-tax…
  19. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 19
    Second Quarter 2014 Earnings Strategic Initiative Update Strategic Initiatives We will continue to focus on raising cash from our lower growth and lower margin assets. Hugoton Sale In the Middle East, we continue to make progress…
  20. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 20
    Second Quarter 2014 Earnings Capitalization We have repurchased more than 26 mm shares since the announcement of our strategic initiatives in 4Q13. 20.5 million remaining shares remain available under the current repurchase…
  21. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 21
    Second Quarter 2014 Earnings Share Repurchases Expect to further reduce our share count by 60 mm through the cash dividend from the California separation and by 25 mm shares from the monetization of our remaining interest in PAGP.…
  22. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 22
    Second Quarter 2014 Earnings Improving ROCE Return on Capital Employed Improved capital efficiency and operating cost structure 15% Long-lead-time project start-ups: Al Hosn Sour Gas 12% BridgeTex Pipeline Separation of our…
  23. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 23
    Second Quarter 2014 Earnings Permian Resources Summary Growing production and increasing efficiency Total Production (boe/d) 72,000 Horizontal Wells 60 Oil Production (bbls/d) 40,000 54 54 vs. 1Q-2014 8% Increase 50 vs. 1Q-2013 21%…
  24. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 24
    Second Quarter 2014 Earnings Permian Resources Optimizing Designs to Unlock Primary Reserves Tremendous potential with 2 million acres and 7,000 drilling locations identified Wolfcamp Section Deep understanding of key geologic BVW Sw…
  25. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 25
    Second Quarter 2014 Earnings Permian Resources Optimizing Designs to Unlock Primary Reserves Rapidly progressing characterization and initiating accelerated development at Barilla Draw. Wolfbone Microseismic & FMI Log Conducting…
  26. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 26
    Second Quarter 2014 Earnings Permian Resources Efficiently Accelerating Development Secured core resources required to execute accelerated development Ordered long lead time equipment. Drilling Rig Exit Rate Secured favorable…
  27. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 27
    Second Quarter 2014 Earnings Permian Resources Batch Drilling Achieved 24% reduction in drilling cost at South Curtis Ranch Phase 1: Vertical Rig Efficient vertical drilling (0 to 9000ft) Rig move 1 Drills first 2 hole sections…
  28. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 28
    Second Quarter 2014 Earnings Permian Resources Infrastructure Expanding infrastructure to support acceleration and reduce costs New Ponds Barilla Draw Water Distribution System Trunk Line New ponds - 6 produced and 3 fresh water ponds…
  29. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 29
    Second Quarter 2014 Earnings Permian Resources Texas Delaware Completed 7 Wolfcamp A/B wells that achieved average peak production of 1,160 boe/d in Q2 Wolfcamp A / B Peak Rate 1,175 (boe/d) 1,622 Delaware Basin Dewey Lake Rustler…
  30. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 30
    Second Quarter 2014 Earnings Permian Resources Midland Basin SCR 2818 Achieved Peak Rate of 1,102 boepd Peak Rate 752 (boe/d) 1,102 Midland Basin Dewey Lake 500 Rustler 30-Day Rate Salado (boe/d) 531 Tansill Yates…
  31. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 31
    Second Quarter 2014 Earnings Permian Resources Guidance Raising 2014 growth expectation to 15% to 18% Strong 2014 performance Production (Mboe/d) Increasing capital by 200MM to 1.9MM Similar well count with higher percentage of…
  32. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 32
    Second Quarter 2014 Earnings Midstream Focus and Advantage Oxy has a unique competitive advantage and scale in the Permian Basin to drive key strategies Largest producer Significant midstream/infrastructure owner and operator Large…
  33. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 33
    Second Quarter 2014 Earnings Oxy Domestic Midstream Assets Upstream Midstream Downstream Gas Production 718 MMCF/d Processing 3.1 BCF/d Power Generation Gas plants 1,800 MW CO2 plants NGL Production 72 MB/d OIEC LPG Terminal…
  34. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 34
    Second Quarter 2014 Earnings Key Oxy Permian Gathering and Takeaway Cushing Southeast New Central/ Mexico / Midland Basins Delaware Basins Slaughter Colorado City Midland- South Houston Owned 3rd Party Corpus…
  35. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 35
    Second Quarter 2014 Earnings Takeaway Capacity Impact on Price Adequate Constrained Midland/LLS Diffs YTD2014 (10.30) 2H2013 (5.84) Sun Bridge Tex 300 mbpd / 3Q14 60 mbpd / 2Q12 Longhorn Cactus 275 mbpd / 2Q13 200 mbpd /…
  36. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 36
    Second Quarter 2014 Earnings Oxy Ingleside Energy Center OxyChem Plant Terminaling - LPG: 60-100 MB/d (2Q 2015) - Crude/Condensate: 200-300 MB/d (1H 2016) - Storage: 24 MMB Future processing options Provides…
  37. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 37
    Second Quarter 2014 Earnings Permian Crude Logistics & Marketing Value 2+/BBL Advantaged Take- 4.00 away Capacity 3.50 3.00 2.50 /BBL 2.00 1.50/bbl avg premium 1.50 1.00 0.50 - 2012 2013 2014 (Est) 2015+…
  38. 2Q 2014 EARNINGS CONFERENCE – Occidental Petroleum Corp – slide 38
    Second Quarter 2014 Earnings Conference Call Q&A

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