Occidental Petroleum Corporation Bank of America Merrill Lynch 2012 Global Energy Conference Stephen I. Chazen President and Chief Executive Officer
First Nine Months 2012 Results Summary ( in millions, except EPS data) YTD 2012 YTD 2011 Income from continuing operations 4,271 5,187 EPS (diluted) from continuing operations 5.26 6.37 Net Income 4,262 5,137 Reported EPS…
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…
Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions q 5. Share Repurchase 4
Consistent Dividend Growth Our ability to pay dividends is indicated by our free cash flow generation. L Lastt February F b the th Board B d off Directors Di t increased i d the th companys dividend 17% to an annualized rate…
Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian UAE Basin Bahrain Oman Yemen Colombia Bolivia Focus Areas 7
Oxy Is Primarily a Domestic Oil Producer Oil & Gas Production YTD - 2012 (Million barrels of oil equivalent) 8
Key Performance Metrics Production Growth Total U.S. production was 469 mboe/d, up 7 mboe/d from 2Q12 and the 8th consecutive quarterly domestic volume record for Oxy. Year-over-year, production grew by 8%, or 33 mboe/d, of which 30…
Peer Company Income per Boe of Production 25.00 23.85 (Nine Months ended 9/30/12) Integrated O&G 20.43 Large Cap Independent E&P 20.00 19.14 S/Mid Cap Oil Focused E&P 17.99 oe) ome per bo 15.00 13.14 11.52 11.43…
Operating Cost Reductions & Improved Capital Efficiency We are embarking on an aggressive plan to improve our operational efficiency across all cost categories, including capital, with a view to achieve an appreciable reduction in…
Capital Spending This year, we expect to spend These expenditures include 25% of our total capital capital for: expenditures on future growth projects that will contribute to the Al Hosn Shah gas project our operations over the next…
4Q12 Outlook - Capital Program Our 4Q12 capital spending will slow from the 3Q12 level to a run rate that we believe will be in line with next year's total capital program. Our intention was to reduce capital meaningfully starting in…
Peer Company U.S. Capital Spending per Boe of Production 99.64 97.93 100.00 (Nine Months ended 9/30/12) ction) 90.00 Integrated O&G oe of Produc Large Cap Independent E&P 80.00 S/Mid Cap Oil Focused E&P 68.00 67.40…
4Q12 Outlook - Oil and Gas Production Over the past year, we have achieved our goal of increasing domestic production by 6 to 8 mboe/d quarter-over-quarter. We expect our 4Q12 oil production to grow by about this much. However,…
Oil & Gas Volume Growth Drivers Base 5 - 8% Compounded Average Annual Growth Current California risked prospects Non-CO Non CO2 & CO2 in the Permian Oman Upside p from Existing g Holdings g New California conventional and…
California Overview Largest acreage holder in CA with 1.7 mm acres, majority of which are net mineral interests 3Q12 production of 147 mboe/d Diverse geologic characteristics and numerous reservoir targets Sacramento Development…
California Conventional Exploration Major Producing World Class Province Basins 35+ Billion BOE discovered 5 of top 12 U U.S. S oil fields 2 Billion BOE Significant Remaining Potential Large undiscovered resources Sacramento…
California Unconventional Shale Program Rose Multi-year inventory of drill sites in CA, many of which are both outside of Elk Hills proper & the Kern County North Shafter Discovery Area Monument Junction 30-day initial production…
California Update Total CA production growth on a BOE basis is slower than we thought it would be, in part due to the Elk Hills decline, permitting issues and more recently low gas prices. On a positive note, overall performance of…
California Liquids Production In mid-2010, we shifted our development program to conventional and unconventional opportunities outside of the traditional and more mature Elk Hills areas. Liquids Production Volumes 106 101 102 96…
California Gas Processing Plant Elk Hills Cryogenic Gas Processing Plant Over the last several years we have spent p 370 mm on the new Elk Hills gas plant. The plant went into operation in early July and and, notwithstanding…
Permian Basin Overview 3Q12 production of 209 mboe/d Largest oil producer in Permian (15% net share of total) Largest operator in Permian (of 1,500+ operators) 64% 64% of Oxy Oxys s Permian oil production is from CO2 related…
Permian non-Co2 Business Acreage in Select Permian Plays Permian non-CO2 business is one (Thousands of Acres) of Oxys 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 horz. Central Eastern Shelf Basin Avalon Platform Delaware Basin Cline Shale Wolfcamp Diablo horz horz.…
Abu Dhabi Al Hosn Gas Project (Shah Field) Shah Gas Field one of the largest in the Middle East; Oxyy holds a 40% pparticipating p g interest under a 30-year contract; The project involves development of high-sulfur g content…
Abu Dhabi Al Hosn Gas Project (Shah Field) The Al Hosn gas project is 61% complete and progressing as planned; The project made up 11% of the total capital program for YTD 2012; 2012 While capital spending is running g higher…
Abu Dhabi Al Hosn Gas Project (Shah Field) Currently, the Al Hosn project is consuming sizeable amounts of capital during its development phase. p We expect to see a significant g shift in late 2014 when this project p j changes…
Summary of YTD 2012 Cash Flow Working capital reduced our nine-month cash flow from operations of 9.2 billion by 660 mm to 8.5 billion. 510 mm of working capital use occurred in 3Q12. Capex was 7.7 billion for the first nine months, of…
Peer Company Capital Spending / Cash Flow from Operations 250% 237% 225% (Nine Months ended 9/30/12) Integrated O&G of Cash Flow from Ops) 202% Large Cap Independent E&P 200% S/Mid Cap Oil Focused E&P 177% 1 2% 152%…
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 the Companys cost of capital Consistent, annual…
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