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Q2 Earnings Conference Call – Occidental Petroleum Corp

Occidental Petroleum Corp · Jul 30, 2013 · 40 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. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Second Quarter 2013 Earnings Conference Call July 30, 2013
  2. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 2
    Second Quarter 2013 Earnings Highlights Results Total Production (Boe/d) 772,000 Operating costs On track Capital program On track Core earnings 1 3 billion 1.3 Core diluted EPS 1.58 YTD CFFO before WC 6.4 billion Cash…
  3. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 3
    Second Quarter 2013 Earnings Highlights Quarter-over-Quarter Impacts Core Income ( in bln) Improved oil and gas results results. 1.359 1.332 + Increased oil volumes, primarily in 1.276 MENA. + Increased domestic realized oil…
  4. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 4
    Second Quarter 2013 Earnings Oil & Gas Segment Earnings 2Q13 vs. 1Q13 ( in millions) 246 (28) (32) (122) 2,100 116 1,920 Core Results C R lt 2Q13 2.1 B 1Q13 1.9 B 2Q12 20B 2.0 1Q13 Domestic D ti Sales S l Int'l I…
  5. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 5
    Second Quarter 2013 Earnings Oil and Gas Total Production Company-wide Oil & Gas Production (Mboe/d) 19 2 (7) (3) (2) 772 766 763 2Q13 IImpacts t (Mb (Mboe/d) /d) Permian weather & 3 gas plant turnarounds Colombia…
  6. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 6
    Second Quarter 2013 Earnings Oil and Gas Domestic Production Domestic Oil & Gas Production (Mboe/d) 478 (2) (1) (5) 470 462 2Q13 Impacts (Mboe/d) Permian weather - 2 oil impact Plant turnaround - 1 gas impact 2Q12…
  7. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 7
    Second Quarter 2013 Earnings Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 2Q13 97.91 38.78 3.82 94.22 103.35 4.00 Benchmark %…
  8. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 8
    Second Quarter 2013 Earnings Oil & Gas Production Costs Production Costs (/boe) FY12 1Q13 2Q13 YTD13 Domestic 17.43 14.06 14.28 14.17 Total 14 99 13 14.99 13.93 93 13 13.40 40 13 13.66 66 500 million annualized domestic cost…
  9. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 9
    Second Quarter 2013 Earnings Chemical Segment Core Earnings 2Q13 vs. 1Q13 Guidance ( in millions) 3Q13 expected t be to b 170 170 mm 6 (12) 159 (5) (4) 144 Core Results 2Q13 144 mm 1Q13 159 mm 2Q12 194 mm 1Q13…
  10. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 10
    Second Quarter 2013 Earnings Midstream Segment Earnings 2Q13 vs. 1Q13 ( in millions) 215 (172) Core Results 2Q13 48 mm 1Q13 215 mm 2Q12 77 mm (16) 5 48 16 1Q13 Marketing & Gas Processing Pipelines All Others 2Q13…
  11. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 11
    Second Quarter 2013 Earnings YTD 2013 Cash Flow YE2012 vs. YTD2013 ( in millions) 380 150 YTD13 7,600 4,200 Debt / Capital 15% Return on Equity 13% Return on Capital Employed* Employed 11% Cash Flow From Operations before…
  12. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 12
    Second Quarter 2013 Earnings Key Performance Metrics Domestic Production Occidentals domestic oil and gas segment continued to execute on our liquids production growth strategy. 2Q13 domestic production of 470 mboe/d, consisting of…
  13. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 13
    Second Quarter 2013 Earnings Capital Efficiency & Operating p g Cost Reduction Program g Focused drilling program in our core areas Reduced our domestic well costs by 21% and operating costs by 19% relative to 2012, ahead of…
  14. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 14
    Second Quarter 2013 Earnings California Oil & Gas 14
  15. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 15
    Second Quarter 2013 Earnings California Operations p Highlights g g Largest producer of natural gas and oil and gas on a gross operated BOE basis. Largest oil & gas mineral acreage holder, with more than 2.1 mm net acres.…
  16. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 16
    Second Quarter 2013 Earnings California Operations p 2013 Strategic g Objectives j 2013 Objectives Deliver p predictable outcome given g constraints of working g in California. Advance projects with solid returns, low execution…
  17. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 17
    Second Quarter 2013 Earnings California Operations p New Organizational g Structure Restructured business units to create teams organized around the unique characteristics of each asset group, resulting in a 5th b business i…
  18. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 18
    Second Quarter 2013 Earnings California Operations p Operating p g Efficiency y Significantly reduced operating costs as well as drilling costs in California, exceeding our targets. Expect to save at least 175 million this year in…
  19. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 19
    Second Quarter 2013 Earnings California Operations p Capital p Efficiency y Improved capital efficiency by 15% compared to 2012 Locked in drilling programs Revised well designs Optimized drilling equipment and fluids to reduce…
  20. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 20
    Second Quarter 2013 Earnings California Operations p Capital p Program g Adjusted strategy at start of year California 2013 Capital - 1.5 bn 2013 Capital Program allocates a higher % of the budget to lower decline projects such…
  21. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 21
    Second Quarter 2013 Earnings California Operations p Water Floods Los Angeles Basin Water floods are a core competency of Oxy. San Vicente Salt Lake Los Angeles Beverly Hills Sawtelle Montebello Several new projects in Cheviot…
  22. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 22
    Second Quarter 2013 Earnings California Operations p Water Floods Wilmington Field Water Flood Most water flood capital directed to optimize our most developed project, project the giant Wilmington Field. 135 new wells including 35…
  23. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 23
    Second Quarter 2013 Earnings California Operations p Water Floods Huntington Beach Field Redevelopment Adding g two new fit-for-purpose p p rigs, g one designed g for drilling g in urban areas. Expect to begin drilling towards…
  24. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 24
    Second Quarter 2013 Earnings California Operations p Steam Floods Steam flood activities have been a focus in 2013 Highly profitable, taking advantage of the gas versus oil price spread where cheap gas is used to generate steam,…
  25. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 25
    Second Quarter 2013 Earnings California Operations p Steam Floods Kern Front and Lost Hills Lost Hills 2 largest steam floods Kern Front 1 billi billion barrels b l off original i i l oil il in i place; 870 million barrels…
  26. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 26
    Second Quarter 2013 Earnings California Operations p Steam Floods Total steam flood spending will constitute 25% of total California capital in 2013. Expect to drill 1,500 steam flood wells over the next 5 years. With shift of…
  27. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 27
    Second Quarter 2013 Earnings California Operations p Unconventional In addition to shale plays, our unconventional opportunities include reservoirs that have low permeability, which require special recovery processes to flow.…
  28. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 28
    Second Quarter 2013 Earnings California Operations p Unconventional Rose Rose Drilled 1,300 unconventional wells in California since 1998. North Shafter 1,000 of these are in and around Elk Hills, including the Monterey Monument…
  29. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 29
    Second Quarter 2013 Earnings California Operations p Unconventional Rose Pursuit of Unconventional Opportunities outside Elk Hills includes the Rose Field Field. North North Shafter Acquired in late 2009, drilled 1 Monument…
  30. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 30
    Second Quarter 2013 Earnings California Operations p Elk Hills Have almost doubled proved Elk Hills Field reserves since acquisition in 1998. Goal is to reduce the underlying 25% base decline rate by as much as half. EOR…
  31. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 31
    Second Quarter 2013 Earnings California Operations p Exploration p 100 exploration wells drilled over past 5 years. Two thirds have found hydrocarbons and a large portion of these resulted in commercial production production. 3D…
  32. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 32
    Second Quarter 2013 Earnings California Operations p Conventional Gas Properties p Sacramento Basin Established sizeable conventional natural gas position in the S Sacramentot BBasin. i 318,000 net acres. 66 MMcf/d of dry gas…
  33. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 33
    Second Quarter 2013 Earnings California Operations p Summaryy Large inventory of diverse projects. Water floods Steam floods Additional EOR (CO2, polymer pol mer floods floods, etc.) etc ) Unconventional Si Similar il mix…
  34. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 34
    Second Quarter 2013 Earnings California Operations p Summaryy Progress toward 2013 Goals: 1.5 1 5 billion capital program and expect to generate free cash flow of over 1 billion. With continued improvements in permitting, should be…
  35. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 35
    Second Quarter 2013 Earnings 2013 Production Outlook Domestically, we continue to expect solid growth in our oil production for the year. Based the nature and timing of our drilling program, such as steam flood drilling in…
  36. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 36
    Second Quarter 2013 Earnings 2013 Production Outlook Internationally, we expect more cost pool depletions in our contracts in Qatar and Yemen, which will result in less cost recovery barrels from those locations. However However,…
  37. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 37
    Second Quarter 2013 Earnings 2013 Capital Outlook The first six months' capital spending was 4.2 billion, with 2.2 billion spent in the second quarter. We expect the second half of the year spending rate to be higher. Our annual…
  38. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 38
    Second Quarter 2013 Earnings With regard to our strategic business review, we presented various options to our Board of Directors. Our review of these options is not yet complete, so the Board will continue to evaluate the…
  39. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 39
    Second Quarter 2013 Earnings 2H13 Guidance Summary Oil & Gas Segment Domestic Production Oil 6,000 6 000 to 8 8,000 000 bopd growth NGLs modest decline Natural gas modest decline International Production volumes similar to…
  40. Q2 Earnings Conference Call – Occidental Petroleum Corp – slide 40
    Second Quarter 2013 Earnings Conference Call Q&A

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