Occidental Petroleum Corporation 2011 UBS Global Oil & Gas Conference May 25, 2011 Stephen I. Chazen President and Chief Executive Officer
Christopher G. Stavros Vice President Investor Relations 212-603-8184 chris_stavrosoxy.com Christopher M. Degner Director Investor Relations 212-603-8185 christopher_degneroxy.com
First Quarter 2011 Results Summary ( in millions, except EPS data) 1Q2011 1Q2010 Core Results 1,593 1,097 Core EPS (diluted) 1.96 1.35 Net Income 1,549 1,064 Reported EPS (diluted) 1.90 1.31 Oil and Gas production volumes 730…
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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…
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 6
Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian Basin Bahrain UAE Oman Yemen Colombia Bolivia Focus Areas 7
Standard Measure of Discounted Future Net Cash Flows (SEC PV-10) (Percentage of Oxy total company value) Iraq Qatar Libya Bahrain United States 68% MENA Oman 28% Yemen California 34%* Libya/Yemen/Bahrain…
Oil and Gas Production & Sales 2Q11 Outlook At 1Q11 average oil prices of about 95 WTI, we expect 2Q11 oil and gas production volumes expected to be as follows: Domestic volumes increase 425 mboe/d vs. 404 mboe/d in 1Q11; Latin…
Oil and Gas Production & Sales 2Q11 Outlook With regard to 2Q11 production from the Middle East region (contd): In Yemen, almost all of our production comes from concessions operated by others. In addition, the Masila Field…
Capital Spending 2011 Outlook We expect capital spending for the total year 2011 to be about 6.8 billion, compared to the total 2010 capital of 3.9 billion; We increased our total year capital program to 6.8 billion from 6.1 billion…
Capital Spending 2011E vs. 2010 Actual Last year we provided a 2010 14 capital budget of 27.5 billion, with average spending of 5.5 billion per year Excluding capital for Shah project, estimated capital for 2010 11 of 10.2 billion is…
Oil & Gas Volume Growth Drivers Base 5 8% Growth CO2 in Permian Current California risked prospects Recent domestic properties acquisitions (Williston Basin, South TX gas) Oman Iraq Upside from Existing Holdings New California…
Permian & California Drilling Rig Activity 45 40 35 Number of Drilling Rigs 14 30 25 20 15 5 26 10 5 11 0 1Q10 Current California Permian 14
Permian Basin Overview Approximately 1.2 billion BOE of proved reserves at year end 2010 2010 production of 197,000 boe/d Largest oil producer in Permian (16% share of total) Largest operator in Permian (of 1,500+ operators) 66%…
Permian 2011 Program Summary 2011 Capital program 850 mm Plan to drill 300+ wells this year Current 14-rig drilling program expected to ramp through 2011 Drilling program is front-end loaded to exploit quick production first 130+…
Typical CO2 Project Cost Structure 100 90 17.33 80 3.80 11.60 70 6.93 60 4.30 / BOE 100.00 50 40 30 56.04 20 10 - Revenue Royalty Lifting Cost CO2 & OH / Amortized Net Cash Operating Production Capital…
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California Overview Largest acreage holder in CA with 1.6 mm acres, majority of which are net mineral interests. 768 mm BOE of proved reserves at year end 2010, of which 73% are oil. Sacramento 2010 production of 139 mboe/d. San…
California 2011 Program Summary San Joaquin Basin 2011 Capital program 1.5 billion, up 70% vs. 2010. Plan to drill 500+ new Elk Hills development wells. Bakersfield Shifting our drilling to oil wells Buena Vista which we expect to…
California Unconventional Shale Program Rose We have a multi-year inventory of drill sites in California, many of which are both outside of Elk North Shafter Hills proper and the Kern Monument Junction County Discovery Area.…
California Shale Summary and Play Comparison 870,000 acres are within most prospective shale plays; We have de-risked approx. 200,000 acres as viable for shale; Oxys average NRI 95%; Identified 15 areas to appraise (5 - 10% of total…
California Update We are continuing the program as discussed earlier this year, which is progressing with satisfactory results. Permitting is still an issue but we have recently obtained some permits that make us optimistic about…
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Summary & Impact of Recent Material Transactions (announced 12/10/10) Divestment of Oxys Argentine oil and gas operations to Sinopec for after-tax proceeds of approximately 2.6 billion; Oxy purchased oil and gas properties in South…
Oxy Shell South Texas Assets Transaction Houston 100k gross, 92.8k net acres TEXAS Production 200 mmcfe/d of Galveston gas equivalent 360+ Bcfe proven developed Lyda Lyda reserves Rosita 12 840 Bcfe of identified addl La La…
Oxy North Dakota Assets Transaction Purchased 174,000 contiguous net acres in ND within the southern extents of the Bakken and Three Forks Formations. Operated working interests avg. 63% with avg. NRI of 83%. Net risked reserve…
Oxy North Dakota Williston Basin MONTANA NORTH DAKOTA MT ND Burke Sheridan Bottineau Divide South Coteau SD Williams Nesson Renville Anticline Roosevelt Mountrail McHenry Richland Parshall- Sanish Ward Fields Elm…
Summary of YTD 2011 Cash Flow Free cash flow from continuing operations after capex and dividends but before acquisition and debt activity was about 500 million. 1,000 1,300 ( in millions) 4,800 3,000 2,700 1,500 Cash Flow…
Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 30
Finding & Development Costs per Barrel F&D Costs Actual as a % of 6:1 * Prices ** WTI Price 2010 20.25 24.18 30% 3-Year Average 16.38 20.25 25% (2008 2010) 5-Year Average 16.66 19.52 26% (2006 2010) 10-Year Average 12.22 13.48…
Return on Assets (2006 2010) Net Income Return on Assets 5 Year Average U.S. 16% International 35% Total E&P 21% Cash Flow* Return on Assets 5 Year Average U.S. 24% International 53% Total E&P 31% * Net Income + DD&A See…
Dividend Growth Annual dividend increased to 1.84 per share or 21% effective with the 4/15/11 payment 2.00 1.84 1.80 1.60 1.52 R C AG 1.28 1.32 1.40 15% 1.20 1.00 1.00 0.88 0.72 0.80 0.55 0.62 0.60 0.50 0.52 0.40 0.20 0.00 Prior…
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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…
First Quarter 2011 Acquisitions Our acquisition expenditures in 1Q11 were 3 billion. The acquisitions included the previously announced South Texas purchase and properties in California and the Permian. Excluding the South Texas…
Oxy Investment Attributes 5 - 8% base annual production growth Opportunity for additional volume growth Returns on invested capital significantly in excess of Companys cost of capital Annual increases in dividends Significant…
Creating Shareholder Value Oxys Shareholder Equity versus Equity Market Value A History of Generating Shareholder Value Change in Equity Market Value Market Value per of Equity Retained ( in millions) Change in Shareholder Equity…
Occidental Petroleum Corporation
Appendix 41
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Full Year 2010 Results Summary ( in millions, except EPS data) FY2010 FY2009 Core Results 4,664 3,192 Core EPS (diluted) 5.72 3.92 Net Income 4,530 2,915 Reported EPS (diluted) 5.56 3.58 Oil and Gas production volumes 706 671…
Summary of Full Year 2010 Cash Flow Free cash flow from continuing operations after capex and dividends but before acquisition activity and debt retirements was 4.3 billion. 2,600 3,900 ( in millions) 10,300 4,925 Operating…
Midstream Overview Midstream 3-Year Average EBIT 3-Year Average EBIT 2008 - 2010 was 409 Million 2010 EBIT was 472 1% Million 35% 39% 4.9 Billion net PP&E and investments Significant and growing 25% fee income Gas…
Chemicals Overview 5-Year Average EBIT was 619 Million 438 Million EBIT in 2010 2.6 Billion Net PP&E Focus on Chlorovinyls Major Factor in its Industry Earnings are Volatile 48
Midstream & Chemicals 5-Year Outlook Midstream EBIT Growth to 1 Billion Annually by 2014 Increased pipeline fees Addition of Phibro Increased gas and CO2 plant capacity Bolt-on acquisitions likely Chemicals Expect average annual…
Oxy Land Position 1998 - 2010 Elk Hills Acquisition in 1998 Learn, build, explore close-in Dominant player, expand 1998 Fee Holdings Kern Front Field 1999 - 2005 Lease/Fee Additions 2005 - 2010 Lease/Fee Additions Elk Hills…
Oxy California Play Focus 47 Plays Identified 10 Plays Selected L.A. Focus Sac. Plays Valley San Joaquin Emerging Ventura All Others Targeting Oil Prone Plays and Areas Integrate Well, Seismic, Outcrop and Analog Data…
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 Field Sizes Discovery Play High Potential ution Bread & Butter trib Dis Size ld…
California Shales Target Zones BASIN: SACRAMENTO SAN JOAQUIN VENTURA LOS ANGELES AGE FORMATION MEMBER / ZONE MEMBER / ZONE MEMBER / ZONE MEMBER / ZONE myBP PLEISTOCENE TULARE PICO PICO 2 ETCHEGOIN SISQUOC PLIOCENE RANGER 5 REEF…
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