Occidental Petroleum Corporation Howard Weil 41st Annual Energy Conference Stephen I. Chazen President and Chief Executive Officer March 18 - 20, 2013
Key Messages Execute on our capital program with a focus on growing our U.S. oil production. Continue to drive our effort to further reduce our oil and gas operating costs, and improve our capital and drilling efficiency with the…
Full Year 2012 Results Summary ( in millions, except EPS data) FY 2012 FY 2011 *Core Income from continuing operations 5,750 6,828 *Core EPS (diluted) from continuing 7.09 8.39 operations Reported Net Income 4,598 6,771 Reported…
Updated 1Q13 Oil & Gas Sales and Earnings Guidance We currently estimate that our 1Q13 oil and gas production outside the U.S. will be roughly 18 mboe/d below the 4Q12 level, however, sales volumes should be approximately 40 mboe/d…
What Is Our Philosophy & Strategy Overriding Goal is to Maximize Total Shareholder Return We believe this can be achieved through a combination of: Growing our oil and gas production by 5% to 8% per year on average over the long…
Oxy Is Primarily a Domestic Oil Producer Oil & Gas Production Full Year 2012 (Million barrels of oil equivalent) 79 110 28% 171 170 39% 30 61% 61% 11% Oil NGLs Gas U.S. International 6
Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 7
Consistent Dividend Growth Our ability to pay dividends is indicated by our free cash flow generation. In mid-February, the Board announced a further 18.5% increase in our dividend to an annualized rate of 2.56 per share, bringing…
Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian Bahrain UAE Basin Oman Yemen Colombia Bolivia Focus Areas 10
Capital Efficiency & Operating Cost Reduction Program We expect our production costs per barrel to be under 14 in 2013, which is significantly lower than the 2012 average costs. Steps taken in 4Q12, along with added measures…
2013 Capital Outlook Our overall capital spending is expected to decline by 6% in 2013 to 9.6 billion from the 10.2 billion we spent in 2012. The reduction in capital will come entirely from the oil and gas business where the 4Q12…
Capital Spending 2013 Estimate vs. 2012 Actual Capital spending is expected to decline by 6% in 2013 to 9.6 billion from the 10.2 billion we spent in 2012. Exploration Exploration Al Hosn Al Hosn & Other & Other Gas Gas 10% 10%…
2013 Capital Outlook Domestic Oil & Gas In domestic oil and gas, development capital will be about 64 46% of our total capital program. We expect our average operated rig 60 Oxy Operated Domestic Average Rig Counts 55 count in…
2013 Capital Outlook Domestic Oil & Gas Permian capital should remain flat. We expect to reduce CA capex Exploration & Other, 9% 500 mm from 2012, as a result of ongoing well cost reductions and US California, Midstream, 24%…
U.S. Oil Production Should Continue to Grow in 2013 Total U.S. production grew by 6% in 2012, or 26 mboe/d, of which 25 mb/d was oil, as we continued to execute on our oil production growth strategy. We expect our U.S. oil production…
2013 Production Outlook Domestically, we expect oil production for all of 2013 to grow by about 8% to 10% from the 2012 average. With lower drilling on gas properties, we expect natural gas and NGL production to decline somewhat…
California Overview Largest acreage holder in CA with 2.1 mm acres, majority of which are net fee mineral interests; 2012 production of 148 mboe/d vs. 138 mboe/d in 2011; Sacramento 78% interest in the Elk Hills Field the…
California Update Total CA oil production volumes grew 10% in 2012 vs. 2011, and as we continued to execute on our oil production growth strategy. We have grown our production in CA despite declines seen at the mature Elk Hills…
Permian Basin Overview 2012 production of 207 mboe/d, vs. 198 mboe/d in 2011; Largest oil producer in Permian (16% net share of total) Largest operator in Permian (of 1,500+ operators); 60% of Oxys Permian oil production is from…
Permian non-Co2 Business Acreage in Select Permian Plays Oxys Permian non-CO2 business (Thousands of Acres) is one of our fastest growing assets; Delaware Basin Gross Oxy Share Since beginning delineation and Avalon 340 120 development…
Map of Select Permian Basin Plays Matador Arch Northwest Shelf Midland Basin Wolfberry Wolfcamp Bone Spring Central Eastern horz. Basin Shelf Avalon Platform Delaware Basin Cline Shale Wolfcamp Diablo horz.…
2013 Capital Outlook Future Growth Projects We are currently in an investing phase in many of our businesses where a Capital for future growth projects: higher than normal portion of our capital is spent on longer-term projects. The…
Future Contribution of Growth Projects Future growth projects: The Al Hosn Gas Project; Oxy Total Net PP&E - 52 Billion The BridgeTex Pipeline; Gas and CO2 processing plants and pipelines; A new chlor-alkali plant in the…
Future Growth Al Hosn Gas Project Shah Gas Field one of the largest in the Middle East; Oxy holds a 40% participating interest under a 30-year contract; The project involves development of high-sulfur content reservoirs within the…
Future Growth Al Hosn Gas Project The Project is 65% complete and progressing as planned; Spending on the Project was 12% (1.2 B) of our total capex for 2012; Capex for the Project is expected to decline modestly from 2012 levels,…
Future Growth The BridgeTex Pipeline Project Goal is to maximize our oil price Oxy spending 400 mm to develop the BridgeTex pipeline as a JV with realizations, particularly for the oil Magellan Midstream Partners; produced in our…
Oxy Investment Attributes 5 - 8% base annual production growth over the long term Opportunity for additional volume growth Returns on invested capital significantly in excess of the Companys cost of capital Consistent, annual…
2013 Summary Outlook Assuming similar realized oil and gas prices to 2012 and our expectation of comparable Chemical and Midstream segment earnings, we expect that our 2013 program will: Generate cash flow from operations of about…
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