Occidental Petroleum Corporation Bank of America Merrill Lynch 2014 Global Energy Conference Stephen I. Chazen President and Chief Executive Officer November 13 - 14, 2014
Key Messages Generate shareholder value by employing our current strategy: Stronger financial returns Continued improvement in our capital and drilling efficiency with the goal of generating higher earnings from our oil and gas…
Why own Oxy Large Integrated Majors Independent E&Ps Company Market Cap (B) Company Market Cap (B) XOM 412 COP 89 RDS 228 Oxy EOG 52 CVX 228 Uniquely APC 46 TOT 136 Positioned APA 30 BP 133 PXD 27 ENI 77 MRO 24 Characteristics…
What Is Our Philosophy & Strategy Overriding Goal is to Maximize Total Shareholder Return We W believe b li this thi can be b achieved hi d through th h a combination bi ti of: f Growing our oil and gas production by 5% to…
Cash Flow Priorities 1. Base/Maintenance ase/ a te a ce Cap Capital ta 2. Dividends 3. Growth Capital 4. Share Repurchase 5. Acquisitions q 5
Oxy Runs A Focused 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 Midstream Integrated pipeline and MENA…
Oxy Is Primarily an Oil Producer Oil & Gas Production 9 Months YTD 2014 (Million ( o barrels ba e s of o oil o equivalent) equ a e t) By Geography (Liquids) By Commodity 40 26% 55 63 47% 53% 102 16 10% 64% U.S.…
Historical F&D Costs All-In, 6:1 ( / boe) 45.00 With California 39.58 40.00 Without California 35.00 30 00 30.00 25.63 26.60 25.00 20.36 20.00 16 58 16.58 15.00 28.37 10.00 21.45 22.28 17.98 15.81 5.00 0.00 5-Year 3-Year 2011…
Strategic Initiative Update Strategic Initiatives In the Williston and Piceance basins, we plan to operate these assets with less capital in order to Hugoton g Sale generate free cash and shift our investment toward our higher…
BridgeTex and PAGP Monetization On November 6, Oxy announced the sale of its interest in the BridgeTex pipeline to PAA and Magellan for 1.15 billion. The sale allows us to monetize the tariff revenue stream on this important…
Cash Balance To Exceed Total Debt We expect our cash balance at year end 2014 to exceed our 6.8 billion of long term debt. ( in millions) Cash Beginning cash at 9/30/2014 2,900 Commercial Paper repayment (1,600) Strategic…
Use of Proceeds from Strategic Initiatives We expect the bulk of the proceeds will be used for share repurchases. We also expect to reinvest in the business through attractive bolt on property acquisitions in our core area of the…
2015 Capital Outlook Most of the long-term investment for BridgeTex and the Al Hosn Gas project Capital Breakdown Excluding is behind us. California Expect our overall capital program to decline in 2015. Expect pect a s…
2015 Production Outlook Expect Permian Resources to deliver production growth of at least 20% in 2015, primarily from oil. Expect the Permian Resources business to exit 2014 at over 80 80,000 000 BOE per day and to exit 2015 at…
Permian Basin Operations Largest oil producer and operator in Permian Basin. Significant g investments in infrastructure to support the upstream provide low operating costs, advantaged realized prices and competitive advantages.…
Oxy is the Largest Permian Basin Producer Cum % of BOEPD total 2.3 million BOEPD Thousand B Production, T Totall Operated P Source: IHS Energy Feb and Mar 2014, 6 MCF/BOE excluding estimated CO2 production. 17
Permian Production Growth Permian Resources 24% production growth (year / year) in 3Q14 80,000+ boe/d exit rate in 2014E 100,000+ boe/d exit rate in 2015E P d ti Production Permian EOR Permian Resources 216 226 207 211 212 198…
Permian Resources Vast Acreage Position Acreage in Select Permian Plays (Thousands of Acres) Delaware Basin Gross Net Believe we have one of the most p promisingg and Avalon 365 130 under-exploited unconventional portfolio in the…
Permian Resources Overview 3Q14 production of 77 mboed vs. 3Q13 production of 62 mboed represents a +20% growth rate. Expect to drill and complete 350 Midland wells in 2014 and to exit the year with Basin 34 drilling rigs. Central…
Permian Resources Delaware Basin Delaware Basin OXY Acreage Acreage position of 4.2mm gross Benches (1.5mm net) acres with over 4,600 Bell Canyon drilling locations identified (92% Cherry Canyon horizontal). Brushy Canyon Majority of…
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% horizontal).…
Permian Resources Growth Outlook Permian Resources production is expected to accelerate from recent years and is expected to double 2013 production by 2016. The drilling Th d illi activity, ti it which hi h is i split lit approximately…
Permian Infrastructure Value Drivers 20 18 16 14 12 0-10+/Bbl /Bbl 10 8 6 4 1-3/Bbl 2 1-3/Bbl 0 Pi Pipeline Pili li Owner Pipeline OO Owner Shi Shipper Shi Shipper P Producer/Shipper Pd d /Shi /Shi…
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 year. Continued preferential access and commitment to the…
Future Growth Al Hosn Gas Project Al Hosn Gas Project The plant is expected to produce 450 MMCFD of sales gas, 28 MBOED of condensates 46 MBOED of NGLs, condensates, NGLs and 8,700 tons per day of sulfur. Gross production of gas…
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…
Future Growth Ingleside Energy Center OxyChem Plant Terminaling - LPG: 60-100 MB/d (2Q 2015) - Crude/Condensate: 200-300 MB/d (1H 2016) - Storage: 2 - 4 MM BBLS Future p processing g options p Provides flexibility…
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