Occidental Petroleum Corporation Credit Suisse 2013 Energy Summit Stephen I. Chazen President and Chief Executive Officer February 6, 2013
Christopher G. Stavros Vice President and Treasurer 212-603-8184 chris_stavrosoxy.com Christopher M. Degner Senior Director - Investor Relations 212-603-8185 christopher_degneroxy.com Anthony J. Cottone Manager - Investor…
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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 operations 7.09 8.39 Reported Net Income 4,598 6,771 Reported…
2012 Oil & Gas Production Growth Oxy's total daily production reached a record 779 mboe/d in 4Q12 and 766 mboe/d for the full year 2012, resulting in a 5% increase for last year. Total Company Total Domestic Total Domestic Oil 800…
2012 U.S. Oil & Gas Production Growth Total U.S. production in 4Q12 was 475 mboe/d, up 6 mboe/d from 3Q12 our 9th consecutive quarterly domestic volume record. Year-over-year, production grew by 6%, or 26 mboe/d, of which 25 mb/d was…
Capital Efficiency & Operating Cost Reduction Program We have an aggressive plan to improve our operational efficiencies over all cost categories, including capital with a view toward achieving an appreciable reduction in our…
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. Many of the steps already taken during 4Q12, which are…
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Capital Efficiency & Operating Cost Reduction Program Improvements were realized across most business units, most notably in the Permian and Elk Hills. The reductions resulted from efficiencies achieved across most cost categories…
2012 Oil & Gas Reserves Preliminary estimates of our year-end 2012 reserve levels: We produced 280 mmboe in 2012. Our total company reserve replacement ratio from all categories, including revisions, was about 143%, or 400 mm boe.…
2012 Oil & Gas Reserves Our 2012 development program, excluding acquisitions and revisions, replaced 175% of our production with 490 mmboe of reserve additions. Our 2012 program, including acquisitions but excluding revisions of…
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 14
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Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 16
Consistent Dividend Growth Our ability to pay dividends is indicated by our free cash flow generation. We have increased our dividends at a compounded annual rate of 15.8% over the last 10 consecutive years through 11 dividend…
Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian Bahrain UAE Basin Oman Yemen Colombia Bolivia Focus Areas 20
Capital Spending 2012 Actual & 2013 Estimate 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 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…
2013 Capital Outlook Future Growth Projects We are currently in an investing phase Capital for future growth projects: in many of our businesses where a higher than normal portion of our The Al Hosn Gas Project. capital is spent on…
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 capital 500 million from 2012, which represents Exploration & Other, 9% ongoing well cost reductions and efficiencies, a modest…
2013 Capital Outlook Domestic Oil & Gas In the Midcontinent, we expect to reduce spending 400 million from 2012. We have reduced our activity in higher Exploration cost unconventional oil plays, specifically & Other, 9% in the…
2013 Capital Outlook International & Exploration Our total Al Hosn gas project capital will decline modestly from the 2012 levels, and will make up about 11% of our total capital program for the year. While Iraqs spending levels…
2013 Capital Outlook Chemical & Midstream The U.S. Midstream capital will increase by about 400 million due to the BridgeTex pipeline project. Chemical segment capital will be about 425 million, which includes the construction of…
Oil & Gas Production Volume Growth Drivers Base 5 - 8% Compounded Average Annual Growth Current California risked prospects Non-CO2 & CO2 in the Permian Al Hosn Gas Project Oman Upside from Existing Holdings New California…
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 gas and NGL production to decline somewhat. Planned…
California Overview Largest acreage holder in CA with 1.8 mm acres, majority of which are net mineral interests 2012 production of 148 mboe/d vs. 138 mboe/d in 2011 Sacramento 78% interest in the Elk Hills Field the largest…
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…
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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.…
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…
Abu Dhabi Al Hosn Gas Project (Shah Field) 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…
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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…
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Summary of 2012 Cash Flow In 2012, we generated 12.1 billion of cash flow from continuing operations before changes in working capital. Working capital changes reduced our full year cash flow from operations by 800 mm to 11.3…
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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