Occidental Petroleum Corporation Barclays Capital 2010 CEO Energy/Power Conference Stephen I. Chazen President and Chief Operating Officer September 15, 2010
First Six Months 2010 Results Summary ( in millions, except EPS data) 1H 2010 1H 2009 Core Results 2,140 1,096 Core EPS (diluted) 2.63 1.34 Net Income 2,127 1,050 Reported EPS (diluted) 2.61 1.29 Oil and Gas sales volumes 737…
What Are Our Goals & Objectives Allocate and deploy capital with a focus on achieving strong financial returns. Pursue only those opportunities which meet our standards for ROCE and complement our existing assets. Return Targets*…
Business Risk Factors Level of Risk Acceptable to Occidental Risk Factor Low Middle High Exploratory 9 Commodity 9 Political 9 Engineering 9 Reinvestment 9 Financial 9 4
Oil & Gas Business Drivers Volume Growth Capital Expenditures Acquisitions Return Targets 5
Oil & Gas Volume Growth Drivers Base 5 8% Growth CO2 in Permian Current California risked prospects Rockies gas Bahrain Oman Iraq Upside from Existing Holdings New California conventional and unconventional prospects Permian…
Worldwide Oil & Gas Production Outlook Thousand BOE/Day (Assumes 75 WTI Price) 1200 1,118 9.4% Total 1,033 CAGR 1000 946 837 6.2% Base CAGR 756 800 714 600 400 200 0 2009 2010 2011 2012 2013 2014 Domestic Base…
International Oil & Gas Producing Areas Libya Iraq Qatar Bahrain UAE Oman Yemen Colombia Bolivia Argentina Focus Areas 8
International Oil & Gas Production Outlook Thousand BOE/Day (Assumes 75 WTI Price) 486 7.5% Total 500 476 CAGR 452 6.0% Base 420 CAGR 400 365 338 300 453 453 434 200 414 365 338 100 0 2009 2010 2011 2012 2013 2014 Base…
International Oil & Gas Summary 5 years Grow: Oman gross production from 190 to 240 Mboepd Bahrain gross oil production from 30 to 75 Mbopd Bahrain gross gas production from 1.1 to 1.6 Bcfd Argentina gross production from 50 to 85…
US Oil & Gas Production Outlook Thousand BOE/Day 700 632 10.9% Total CAGR 600 557 494 6.4% Base 500 417 CAGR 391 400 376 300 482 512 452 200 391 411 376 100 0 2009 2010 2011 2012 2013 2014 Base Variance California…
Major Potential Drivers of Production and Profitability US Oil & Gas Permian CO2 3 billion net barrels in resource from Oxy operated only Possibly more CO2 available over the 5-year period Probable better response by 2013-14 Rockies…
Major Potential Drivers of Production and Profitability US Oil & Gas California Conventional 50 prospect inventory and growing Low F&D Considerable success so far Only two or three moderate exploration successes built into…
Permian EOR Opportunities Permian properties 7.8 BBO Net Remaining initially had 11.9 BBO net in place 3P Reserves 4.1 BBO have been produced, 0.8 BBO leaving 7.8 BBO net EOR Likely remaining 1.4 BBO 4.6 BBO 1.0 BBO…
Permian Reserves and CO2 Requirements The next billion barrels Net Net CO2 Reserves* Required (MMBOE) (TCF) Developed 570 2.8 Undeveloped 430 2.2 TOTAL 1,000 5.0 * 3P Reserves 15
Typical Permian CO2 Project Cost Structure 80 70 13.00 60 4.30 9.80 50 5.70 40 75.00 3.80 / BOE 30 20 38.40 10 - lty t e l x n t ita os os u Ta gi a en ap C ar C…
California Development Kern County Discovery Currently have 24 wells capable of producing 45 MBOEPD Currently gas plant constrained 90 MMCFPD skid mounted facility has been brought online, and will be filled Planning to drill an…
Elk Hills Gas Plant Expansions Gas Plant Capacity MMCFD Current 420 (at capacity) Early 3Q 2010 Skid Plant 90 (will be at capacity) 1Q 2012 Cryo Plant 200 Total 710 200 MMCFD plantlargest that could be built in 20-24 months…
California Conventional Exploration Major Producing Basins World Class Province 35+ Billion BOE discovered 2 Billion BOE 5 of top 12 U.S. oil fields Significant Remaining Potential Sacramento Large undiscovered resources San 20…
Exploration Going Forward Major Producing 2011 - 14 Annual Program Basins Wells* Discovery Play 7 - 10 High Potential 5 - 10 Sacramento Bread & Butter 5-6 San Francisco Emerging 3-4 14 - 20 Wells Total per year 20 - 30…
California Field Sizes Discovery Play High Potential ution Bread & Butter tri b Dis Size ld…
California Conventional Exploration Summary Tremendous potential Attractive risk profile (Oxy 1 in 3 success rate) Dominant land position Kern County Discovery 175 - 250 MMBOE net discovered with significant upside Discovery…
Oxy California Unconventional Shale Play Shale drilling program really started in 1998 at Elk Hills Currently, over 1/4th of Oxys production in California comes from shales Have successfully tested concept in eight more fields…
Occidental Acreage Southern California Oxy has over Rose Rose 1.3 MM net acres North North Shafter Shafter in California Monument Monument Junction Junction Largest acreage Bakersfield position in the Elk Elk Hills Hills…
Side by Side Shale Play Comparison Play Depth Thickness Porosity Permeability TOC (ft) (ft) (%) (mD) (%) CA Shales 3,500 - 500 3,500 5…
Oxy California Shale Summary 870,000 acres are within most prospective shale plays Oxys average NRI 95% Multiple potentially productive shale zones in each well Oxys acreage encompasses favorable thermal regime Identified 15 areas…
Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 27
First Half 2010 Cash Flow - Free Cash Flow for 1H10 after capex and dividends but before acquisition activity and debt retirements was about 2.1 billion. 5,500 1,700 ( in millions) 760 540 Cash Flow 300 100 From 2,300…
Capital Spending Program California, 20% Permian, 13% California, 23% Permian, 10% % tin ent, 4 Chemicals & Con Midstream, 20% M id Mid Continent, 12% Chemicals & Latin America, 11% Midstream, 8% Latin America, 9% Middle…
Capital Spending Program Base Oil & Gas capital historically running at 2.5 billion As production increases, the base capital will grow ( in Billions) 2010 - 2014 Oil & Gas and Midstream Capital 2010 Cumulative Growth Capital 1.8…
Acquisition Strategy Companys core business is acquiring assets that can provide future growth through improved recovery Foreign contracts Domestic add-ons Small incremental additions to production in short term Generate returns of…
Oxy Investment Attributes 5 8% base annual production growth Opportunity for additional volume growth Annual increases in dividends Significant financial flexibility for opportunities in distressed periods Conservative financial…
Loading...
