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Q4 2012 Earnings Conference Call – Occidental Petroleum Corp

Occidental Petroleum Corp · Jan 31, 2013 · 36 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Fourth Quarter 2012 Earnings Conference Call January 31, 2013
  2. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 2
    Fourth Quarter 2012 Earnings Highlights Core Income - 1.5 billion in 4Q12 vs. 1.6 billion in 4Q11 or 1.4 billion in 3Q12. EPS 1.83 (diluted) vs. 2.02 (diluted) in 4Q11 or 1.70 in 3Q12. The improvement from 3Q12 reflected the effect…
  3. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 3
    Fourth Quarter 2012 Earnings Highlights Pre-tax charges of 1.8 billion (contd): While the performance of the properties was generally as expected, natural gas prices have declined by 50% since the acquisitions. Natural gas and NGL…
  4. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 4
    Fourth Quarter 2012 Earnings Oil & Gas Segment Variance Analysis 4Q12 vs. 3Q12 Core Results for 4Q12 of 2.3 B vs. 2.0 B in 3Q12 or 2.5 B in 4Q11 We delivered a quarter-over-quarter improvement, despite the decline in WTI prices, as a…
  5. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 5
    Fourth Quarter 2012 Earnings Oil & Gas Segment Production Costs 4Q12 production costs were 14.95 per barrel, which was 1.04 per barrel lower than 3Q12. These reductions occurred during the course of the quarter and our year-end exit…
  6. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 6
    Fourth Quarter 2012 Earnings Oil & Gas Segment Production Volumes 4Q12 4Q11 3Q12 Oil and Gas Production (mboe/d) 779 748 766 4Q12 production of 779 mboe/d increased 4% from 4Q11, and a new company record; 6 mboe/d, or almost half…
  7. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 7
    Fourth Quarter 2012 Earnings Oil & Gas Segment Production Volumes Latin America volumes were 32 mboe/d, which was flat compared to 3Q12 and the same period in 2011. In the Middle East, volumes were 272 mboe/d, an increase of 7…
  8. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 8
    Fourth Quarter 2012 Earnings Oil & Gas Segment 4Q12 4Q11 Reported Segment Income (mm) 522 2,537 WTI Oil Price (/bbl) 88.18 94.06 Brent Oil Price (/bbl) 110.08 109.07 NYMEX Gas Price (/mcf) 3.37 3.68 Oxys Realized Prices Worldwide…
  9. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 9
    Fourth Quarter 2012 Earnings Oil & Gas Segment Realized Prices Realized oil prices for 4Q12 represented 109% of the average WTI price and 87% of the average Brent price. Realized NGL prices were 51% of the average WTI price and…
  10. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 10
    Fourth Quarter 2012 Earnings Oil & Gas Segment Taxes, Exploration Expense and DD&A Taxes other than on income, which are generally related to product prices, were 2.39 per boe for the full year of 2012, compared with 2.21 per boe for…
  11. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 11
    Fourth Quarter 2012 Earnings Chemical Segment Variance Analysis 4Q12 vs. 3Q12 Core Results in 4Q12 of 180 mm vs. 162 mm in 3Q12 and 144 mm in 4Q11 The sequential quarterly improvement reflected higher caustic soda and PVC prices,…
  12. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 12
    Fourth Quarter 2012 Earnings Chemical Segment Chemical segment 1Q13 earnings are expected to be 150 mm. Typical weak seasonal demand, particularly in the construction and agricultural market segments combined with the recent…
  13. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 13
    Fourth Quarter 2012 Earnings Midstream Segment Variance Analysis 4Q12 vs. 3Q12 Core Results for 4Q12 were 75 mm vs. 156 mm in 3Q12 and 70 mm in 4Q11 The 2012 sequential quarterly decrease in earnings was caused by lower marketing and…
  14. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 14
    Fourth Quarter 2012 Earnings Income Taxes The worldwide effective tax rate on core income was 37% for the 4Q12. The rate was lower than the prior quarter and our guidance, largely due to a higher proportion of domestic income in…
  15. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 15
    Fourth Quarter 2012 Earnings 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…
  16. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 16
    Fourth Quarter 2012 Earnings 2012 Cash Flow Capital expenditures for 2012 were 10.2 billion, of which 2.5 billion was spent in 4Q12. 4Q12 capital spend was 100 million lower than 3Q12 driven by an 12% reduction in oil and gas…
  17. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 17
    Fourth Quarter 2012 Earnings Shares Outstanding, Debt/Capital, ROE & ROCE During the year, we bought 7.5 million of our own shares at a cost of about 580 million. Approximately 5 million of the shares were purchased in 4Q12 at an…
  18. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 18
    Fourth Quarter 2012 Earnings Key Performance Metrics Production Occidentals domestic oil and gas segment produced record volumes for the ninth consecutive quarter and continued to execute on our oil production growth strategy. 4Q12…
  19. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 19
    Fourth Quarter 2012 Earnings Key Performance Metrics Production Total Company Total Domestic Total Domestic Oil 800 500 275 766 465 255 750 733 450 250 Thousand boe per day Thousand bbl per day Thousand boe per day…
  20. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 20
    Fourth Quarter 2012 Earnings Capital Efficiency & Operating Cost Reduction Program We have embarked on an aggressive plan to improve our operational efficiencies over all cost categories, including capital with a view toward achieving…
  21. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 21
    Fourth Quarter 2012 Earnings Capital Efficiency & Operating Cost Reduction Program In 4Q12, total company production costs were 1.04 p/bbl lower than 3Q12. Improvements were realized across most business units, most notably in the…
  22. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 22
    Fourth Quarter 2012 Earnings Capital Efficiency & Operating Cost Reduction Program We are seeing strong early results from our efforts toward improving drilling efficiency and cutting our well costs through the simplification of our…
  23. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 23
    Fourth Quarter 2012 Earnings Dividends We have increased our dividends at a compounded annual rate of 15.8% over the last 10 years through 11 dividend increases. We expect to announce a further dividend increase after the meeting…
  24. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 24
    Fourth Quarter 2012 Earnings Oil & Gas Reserves Based on our 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…
  25. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 25
    Fourth Quarter 2012 Earnings 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…
  26. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 26
    Fourth Quarter 2012 Earnings 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…
  27. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 27
    Fourth Quarter 2012 Earnings 2013 Capital Outlook 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…
  28. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 28
    Fourth Quarter Earnings 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 &…
  29. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 29
    Fourth Quarter 2012 Earnings 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…
  30. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 30
    Fourth Quarter 2012 Earnings 2013 Capital Outlook Domestic Oil & Gas In domestic oil and gas, 64 development capital will be about 60 46% of our total capital program. Oxy Operated Domestic Average Rig Counts 55 We expect our…
  31. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 31
    Fourth Quarter 2012 Earnings 2013 Capital Outlook Domestic Oil & Gas Permian capital should remain flat. We expect to reduce California capital about 500 million from 2012, which represents ongoing well cost reductions and…
  32. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 32
    Fourth Quarter 2012 Earnings 2013 Capital Outlook Domestic Oil & Gas In the Midcontinent, we expect to reduce spending about 400 million from 2012. We have reduced our activity in higher cost unconventional oil plays, specifically in…
  33. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 33
    Fourth Quarter 2012 Earnings 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.…
  34. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 34
    Fourth Quarter 2012 Earnings 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…
  35. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 35
    Fourth Quarter 2012 Earnings Summary 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…
  36. Q4 2012 Earnings Conference Call – Occidental Petroleum Corp – slide 36
    Fourth Quarter 2012 Earnings Conference Call Q&A

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