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SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp

Occidental Petroleum Corp · Mar 24, 2015 · 34 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. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 1
    OCCIDENTAL PETROLEUM CORPORATION Stephen I. Chazen President & CEO Scotia Howard Weil Energy Conference March 24, 2015
  2. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 2
    Key Messages & Strategy Overriding Goal is to Maximize Total Shareholder Return We believe this can be achieved through a combination of: Oil and gas production growth of 5% to 8% per year over the long-term; Executing on our capital…
  3. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 3
    Why own Oxy Large Integrated Majors Independent E&Ps Company Market Cap (B) Company Market Cap (B) XOM 361 COP 78 CVX 200 Oxy EOG 50 RDS 192 Uniquely APC 42 BP 117 Positioned APA 23 TOT 116 PXD 23 ENI 60 MRO 18 Characteristics…
  4. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 4
    Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Share Repurchase 5. Acquisitions 5
  5. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 5
    Cash Flow Priorities We have increased the dividend for 12 consecutive years and are committed to annual increases. Given the uncertainty in product prices, the decision on the size of the increase will be made on the declaration of…
  6. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 6
    Oxy Runs A Focused Business Oil and Gas Focus Areas United States Leading position OxyChem in the Permian Basin. High FCF, moderate Permian Resources growth business. is a growth driver. Oxy Midstream Al Hosn Project, Integrated…
  7. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 7
    Oxy is Primarily an Oil Producer Oil & Gas Production Full Year 2014 (Million barrels of oil equivalent) By Geography By Commodity 22 10% 55 116 102 141 25% 53% 47% 65% U.S. International Oil NGLs Gas 8
  8. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 8
    Capital Efficiency Continues to Improve Organic F&D Costs* Through the success of our drilling ( / BOE) U.S. Total program and capital efficiency initiatives, we lowered our F&D costs over recent 21.90 20.48 20.24 years. 18.66 16.89…
  9. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 9
    Strong Overall Oil & Gas Reserve Replacement 2014 Organic Reserve (in millions of BOE) 2,900 Replacement Ratio of 181%** 72 2,819 2,800 265 (38) 2,738 (218) 2,700 76% liquids 71% liquids 71% 2,600 proved 70% developed…
  10. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 10
    Oil & Gas Reserves United States 2014 Organic Reserve 1,900 Replacement Ratio of (in millions of BOE) 286%** 265 (38) 1,800 1,781 1,700 1,670 (116) 84% liquids 1,600 80% liquids 65% proved 73% developed 1,500 proved…
  11. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 11
    2015 Capital Outlook Focus our capital spending on the core areas we Capital Budget ( bn) operate, principally in the Permian Basin. Two-thirds of the capital budget will be allocated 8.7 to maintenance capital and one-third allocated…
  12. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 12
    2015E Capital Budget 33% decline in 2015 capital budget Domestic O&G Domestic O&G Chemicals 42% Chemicals 43% U.S. 6% 10% Midstream Permian 9% Resources U.S. Permian Exploration 22% Midstream Resources 6% 10% 30% Exploration…
  13. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 13
    2015 Capital Program Evolution 2015 Capital Budget and Domestic Drilling Rigs 100% Capital program expected to decline sharply through 2015 75% in line with drilling program and expected cost 50% reductions 25% 4Q15E exit…
  14. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 14
    Capital Cost Reductions Capital Savings 2015 plan includes pricing concessions from our suppliers of 250 mm for key services. ( in millions) If commodity prices remain low, we expect to 500 mm+ see 500 mm of total price reductions…
  15. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 15
    2015 Production Outlook Company-wide Oil & Gas Production (MBOED) Despite a lower capital program, we expect to deliver 6% - 10% annual production growth in 2015, driven by the start-up of the Al Hosn gas project 50 (15 35) and the…
  16. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 16
    Permian Basin Operations Largest oil producer and operator in Permian Basin. Significant investments in infrastructure to support the upstream provide low operating costs, advantaged realized prices and competitive advantages. 60%…
  17. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 17
    Oxy is the Largest Permian Basin Producer Cumulative Total Operated Production, Thousand BOEPD % of total 2.3 million BOEPD Source: IHS Energy Feb and Mar 2014, 6 MCF/BOE excluding estimated CO2 production. 18
  18. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 18
    Oxys Permian Resources Drilling Inventory is Well Represented through the Basin Horizontal well locations that will deliver returns in excess of cost of capital for various WTI price ranges* 100% (45 yrs) Avalon 80% ( 36 yrs)…
  19. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 19
    Permian Resources Summary Shift to horizontal drilling is expected to accelerate production growth Production (MBOED) Average Rig Count Horizontal Vertical 4 4 7 5 25 25 17 19 2Q14 3Q14 4Q14 1Q15E Wells Drilled / Online…
  20. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 20
    Permian Resources 2015E Capital Program Capital Expenditures (B) 2014 2015E Development 1.9 1.7 Exploration 0.3 0.0* Program Well Count Well Count By Bench 80 300 60 Well Count Well Count 137 40 200 48 Vertical…
  21. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 21
    Delaware Basin Recent Performance Well Performance: Texas Delaware Wolfcamp A/B Focus Area: Ward Boepd / Barilla Draw 24-Hour Peak 30-Day IP 1000 Reeves 2,432 577 Peck St 258 6H 1,760 418 2,018 273 Buzzard St 9H 1,778 241…
  22. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 22
    Midland Basin Recent Performance Well Performance: Spraberry and Wolfcamp A/B St. Andrews OXY Acreage Boepd / 24-Hour Peak 30-Day IP 1000 Mabee Ranch Merchant 1,561 198 Guitar 1411 1,136 144 952 150 Q4 Avg. South Curtis 787…
  23. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 23
    Permian EOR 150,000 BOEPD of low cost CO2 Supply and Processing production Most active and largest EOR operator in the Permian Basin with 30 active floods Over 40 years of successful CO2 flooding experience High working interest…
  24. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 24
    Permian EOR is a Large, Highly Economic Resource Unrisked, gross resource potential of up to 1.9 billion barrels 2015 EOR CAPEX = 500MM Unrisked, Gross Reserves and Complete and begin CO2 injection at Resources South Hobbs Start…
  25. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 25
    Permian EOR Cost Structure Permian EOR can operate at cash costs as low as 22 per BOE 2015 Permian EOR Cost Structure 2015 Permian EOR Cost Structure 55 WTI, 3.00 NYMEX 35 WTI, 2.00 NYMEX 35 35 30 30 2.7 25 4.0 25 4.7 1.8 20…
  26. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 26
    Long-term Growth Investments Some of the longer lead time investments we have been making over the past couple of years will start contributing to our results this year. Continued preferential access and commitment to the BridgeTex…
  27. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 27
    Al Hosn Project We completed the Al Hosn gas project, on budget and on time It is currently producing 20,000 BOED (net to Oxy) and will ramp up as the 2nd train comes on-line later in 1Q15 FY 2015 volumes from Al Hosn should average…
  28. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 28
    Future Growth Chemicals OxyChem Ingleside Ethylene Cracker We have formed a 50/50 JV with Mexichem to build a world scale ethylene cracker at the OxyChem plant in Ingleside, TX. Construction on the Ingleside cracker project began…
  29. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 29
    Future Growth Ingleside Energy Center OxyChem Plant Terminals - LPG: 60-100 MB/d (2Q 2015) - Crude/Condensate: 200-300 MB/d (1H 2016) - Storage: 2 - 4 MM BBLS Future processing options Provides flexibility and avoids…
  30. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 30
    APPENDIX
  31. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 31
    Permian Resources Delaware Basin Delaware Basin OXY Acreage Acreage position of 4.2 mm gross Benches (1.5 mm net) acres with over 4,600 Bell Canyon drilling locations identified (92% Cherry Canyon horizontal). Brushy Canyon Majority…
  32. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 32
    Permian Resources Midland Basin OXY Acreage Midland Basin Benches Acreage position of 1.3mm Yates gross (455m net) acres with Grayburg San Andres over 2,500 drilling locations Clear Fork Upper Spraberry identified (92%…
  33. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 33
    Permian Resources Drilling Activity Delaware Average Rig Count Midland Average Rig Count Horizontal Vertical Horizontal Vertical 1 2 4 3 2 1 5 4 14 13 10 11 10 11 7 8 2Q14 3Q14 4Q14 1Q15E 2Q14 3Q14 4Q14 1Q15E Delaware…
  34. SOCTIA HOWARD WEIL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 34

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