Occidental Petroleum Corporation 2012 UBS Global Oil & Gas Conference May 23, 2012 Stephen I. Chazen President and Chief Executive Officer
First Quarter 2012 Results Summary ( in millions, except EPS data) 1Q2012 1Q2011 Core Results 1,560 1,593 Core EPS (diluted) 1.92 1.96 Net Income 1,559 1,549 Reported EPS (diluted) 1.92 1.90 Oil and Gas production volumes 755…
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…
Key Performance Metrics 1Q12 Our total US production of 455 mboe/d, consisted of 316 mb/d of liquids and 834 mmcf/d of gas, an increase of 6 mboe/d from 4Q11. Our total US production was about 13% higher than 1Q11, with liquids…
Key Performance Metrics 1Q12 Focusing on total return to our shareholders, in February, we increased our annual dividends by 0.32, or by 17%, to 2.16 per share. Our annualized ROE for 1Q12 was 16% and ROCE was 14%. During 1Q12,…
Consistent Dividend Growth Our ability to pay dividends is indicated by our free cash flow generation. Free cash flow after interest, taxes and capital spending, but before dividends, acquisitions and debt activity for 2011 was…
Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian UAE Basin Bahrain Oman Yemen Colombia Bolivia Focus Areas 8
Oxy Is Primarily a Domestic Oil Producer Oil & Gas Production 1Q - 12 (Million barrels of oil equivalent) 20 27 28% 42 40% 42 61% 7 60% 11% Oil NGLs Gas U.S. International 9
Capital Spending 2012E vs. 2011 Actual We have ample legitimate opportunities in our domestic oil and gas business where we could deploy capital. We continue to have substantial inventory of high return projects going forward to…
Oil & Gas Volume Growth Drivers Base 5 8% Compounded Average Annual Growth Current California risked prospects Non-CO2 & CO2 in the Permian Williston Basin Oman Upside from Existing Holdings New California conventional and…
US Oil & Gas Production 2Q12 Outlook US oil and gas production We expect our domestic production to grow by 3 to 4 mboe/d each month from the current quarterly average of 455 mboe/d, which would correspond to a 6 to 8 mboe/d…
US Oil & Gas Capital and Production 1,400 490 1,200 470 1,100 462 455 449 Domestic Capital (mm) 1,000 450 Thousand boe per day 884 436 800 424 704 430 640 600 403 410 389 403 400 390 310 259 200 370 0 350…
US Oil & Gas Capital and Production 10.0% 475 462 455 449 CapEx / Capital Employed (%) 8.0% 450 Thousand boe per day 436 424 6.0% 425 403 4.0% 4.0% 3.3% 400 389 3.0% 2.8% 1.7% 2.1% 2.0% 1.4% 375 0.0% 350 4Q10…
California Overview Largest acreage holder in CA with 1.7 mm acres, majority of which are net mineral interests. 1Q12 production of 145 mboe/d. 78% interest in the Elk Hills Field the largest producer of Sacramento gas and NGLs in…
California Unconventional Shale Program Multi-year inventory of drill sites in CA, many of which are both outside of Elk Hills proper & the Kern County Discovery Area Expect to drill 80+ shale wells outside Elk Hills proper, and 140…
California Conventional Exploration Major Producing World Class Province Basins 35+ Billion BOE discovered 5 of top 12 U.S. oil fields 2 Billion BOE Significant Remaining Potential Large undiscovered resources Sacramento Multiple…
California Capital & Update We currently expect the rig count to remain at 31 in 1H12, roughly the same In CA, we expect to spend about as what we were running at YE2011; 21% of our total capital program. We are seeing improvement…
California Production Update Starting in early 2011, we shifted our development program focusing on conventional and non-conventional opportunities outside the traditional Elk Hills area. Our traditional Elk Hills production on a BOE…
California Total Production Volumes Our traditional Elk Hills production on a BOE basis has declined 14% since we shifted our development program focusing on opportunities outside traditional Elk Hills. While the remainder of our…
California Liquids Production Volumes Essentially all of the production increase outside traditional Elk Hills came from liquids. Excluding the traditional Elk Hills, liquids production was up about 35%, or about 17 mb/d. As we…
Permian Basin Overview 1Q12 production of 204 mboe/d Largest oil producer in Permian (15% net share of total) Largest operator in Permian (of 1,500+ operators) Drilled 409 wells on operated properties in 2011 64% of Oxys Permian…
Permian Basin Capital Program Our rig count at the end of 1Q12 was In the Permian operations, we 26, up from 23 at YE2011; expect to spend about 20% of our total capital. We expect our rig count to remain at about this level during…
Permian Basin Update We have significant acreage positions in a number of plays in the Permian basin that will give us ample future growth opportunities. Our total acreage position in these plays, as broadly defined, is…
Map of Select Permian Basin Plays Matador Arch Northwest Shelf Midland Basin Wolfberry Wolfcamp Bone Spring horz. Central Eastern Shelf Basin Avalon Platform Delaware Basin Cline Shale Wolfcamp Diablo horz. Platform…
Oxy Acreage in Select Permian Basin Plays Acreage in Select Permian Basin Plays Thousands of Acres Oxy Acreage in Likely Oxy Acreage Limits Net Working Net Working Play Gross Interest Gross Interest Delaware Basin Bone Spring 560…
International Development and, Exploration Capital Program The Al Hosn gas project is approx. Total international development 38% complete and is progressing as capital will be about 30% of the planned. total company capital…
Abu Dhabi Al Hosn Gas Project (Shah Field) 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…
Oxy Oman Mukhaizna Project World Class Steam flood project; UAE Gulf of Oman 2 B bo ROIP; Safah Discovered in 1975 in South Central Oman; 9 Block 62 27 Muscat Oxy assumed operation 62 September 1, 2005 at 8,500 b/d; Saudi…
Oxy Oman Gross Production Growth Mboepd 31
Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 32
Peer Company Capital Spending / Cash Flow from Operations 180% 161% (Year ended 12/31/11) 160% 156% 150% Integrated O&G (Capex as a % of Cash Flow from Ops) Independent E&P 140% 121% 120% 102% 100% 92% 84% 80% 75% 71%…
Summary of YTD 2012 Cash Flow Cash flow from operations for 1Q12 was 2.8 billion, representing a 600 million increase from 1Q11. We also used about 300 million of cash for working capital during the quarter. 6,600 2,400 ( in…
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 over the long term Opportunity for additional volume growth Returns on invested capital significantly in excess of Companys cost of capital Consistent, annual increases…
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