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Q1 2015 EARNINGS CALL – Occidental Petroleum Corp

Occidental Petroleum Corp · May 6, 2015 · 37 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. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 1
    OCCIDENTAL PETROLEUM CORPORATION First Quarter 2015 Earnings Conference Call May 6, 2015
  2. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 2
    First Quarter 2015 Earnings Succession Plan Oxys board of directors has approved a CEO succession plan and promoted Vicki A. Hollub to Senior Executive Vice President of Occidental and President Oxy Oil and Gas, responsible for…
  3. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 3
    First Quarter 2015 Earnings Dividend Increase Dividend increase of 4% for 13th consecutive year We should be able to continue to grow our dividend for many years into the future. The new ethylene cracker which comes on in 2017 will…
  4. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 4
    First Quarter 2015 Earnings Delivering Consistent Dividend Growth (/share) 22.00 20.39 20.00 18.00 17.39 16.00 14.51 14.00 11.95 12.00 9.79 10.00 7.95 8.00 6.48 6.00 5.16 3.96 4.00 3.02 2.88 3.00 2.22 2.56 1.84…
  5. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 5
    First Quarter 2015 Earnings Objectives CASH FLOW GROWTH Permian Resources production growth Al Hosn project start-up Commodity price recovery Operating Cash Flow to cover dividend outlays and growth COST SAVINGS capital program…
  6. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 6
    First Quarter 2015 Earnings Oxys Permian Resources Drilling Inventory Horizontal well locations that will deliver returns in excess of cost of capital for various WTI price ranges* 100% (44 yrs) 81% Avalon ( 36 yrs) Delaware 61% Bone…
  7. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 7
    First Quarter 2015 Earnings 2015 Production Outlook U.S. oil production grew 14% year over year* Increased Permian Resources production guidance to 105 108 MBOED Al Hosn expected to average 25 MBOED in 2Q15 and 35 MBOED for FY 2015 In…
  8. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 8
    First Quarter 2015 Earnings 2015 Capital Program Evolution 2015 Capital Budget and Domestic Drilling Rigs As we capture price savings from suppliers and improve efficiencies, we 100% Capital are able to do more with less Budget…
  9. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 9
    First Quarter 2015 Earnings Cash Flow Priorities We have 69 million shares remaining under our current authorization. We will continue to repurchase shares subject to the stock price and market conditions and expect to ultimately…
  10. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 10
    First Quarter 2015 Earnings Highlights Results Domestic oil production (Bbl/d) 198,000 14% year / year growth* Total company production (BOED) 645,000 Core earnings** 31 million Core diluted EPS** 0.04 2015 CFFO from…
  11. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 11
    First Quarter 2015 Earnings Oil & Gas Segment Pre-Tax Core Earnings PRE-TAX 1Q15 vs. 4Q14 Core Results ( in millions) 1Q15 57 mm 4Q14 0.7 B 736 (934) 3Q14 1.6 B 52 (21) 57 123 101 Lower Operating Lower DD&A Lower 4Q14…
  12. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 12
    First Quarter 2015 Earnings Oil and Gas Total Company Production Total company oil and gas production volumes averaged 645,000 BOED, an increase of 29,000 BOE in daily production from 4Q 2014. Company-wide Oil & Gas Production (MBOED)…
  13. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 13
    First Quarter 2015 Earnings Oil and Gas Domestic Production Met our domestic oil production growth guidance with a year over year increase of 25,000 BOD or about 14% led by our Permian Resources assets. Domestic Oil & Gas Production…
  14. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 14
    First Quarter 2015 Earnings Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 1Q15 48.50 17.96 2.49 48.63 55.17 3.07 WTI % 100% 37% 81%*…
  15. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 15
    First Quarter 2015 Earnings Oil & Gas Operating Costs Production Costs ( / BOE) 1Q14 2Q14 3Q14 4Q14 FY 2014 1Q15 12.94 13.34 13.45 14.18 13.50 13.36 DD&A ( / BOE) 1Q14 2Q14 3Q14 4Q14 FY 2014 1Q15 16.12 16.64 16.90 18.09 16.97…
  16. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 16
    First Quarter 2015 Earnings Chemical Segment Core Earnings 1Q15 vs. 4Q14 PRE-TAX ( in millions) Guidance Core Results 2Q15 expected to be 185 mm. 1Q15 139 mm 160 (92) 4Q14 160 mm 3Q14 140 mm 8 139 89 (26) 4Q14 Sales…
  17. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 17
    First Quarter 2015 Earnings - Midstream, Marketing & Other Segment Core Earnings PRE-TAX 1Q15 vs. 4Q14 Guidance ( in millions) 2Q15 expected 168 (83) to be 100 mm. Core Results 1Q15 (5) mm 4Q14 168 mm (73) 3Q14 155 mm (14)…
  18. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 18
    First Quarter 2015 Earnings 1Q 2015 Cash Flow 1Q15 1Q 2015 Debt / Capital 17% ( in millions) ROE* 0% 1,100 (1,000) ROCE* 0% (1,700) 7,800 (550) (200) (50) 5,400 Restricted Cash Restricted Cash 4,000 3,265 Beginning…
  19. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 19
    First Quarter 2015 Earnings 1Q 2015 Cash Flow As we ramped down activity in the first quarter, our capital accruals declined and our net working capital declined. We used about 1.0 billion in 1Q15 for payments related to the higher…
  20. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 20
    First Quarter 2015 Earnings Capital Program Total company capital expenditures for the 2015 Capital Budget 1Q15 were 1.7 billion and we expect our quarterly expenditures to continue to ramp 1.7 bn down through the year. Oil and gas…
  21. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 21
    First Quarter 2015 Earnings As a reminder, we currently hold shares in the Plains GP and California Resources Corporation with an aggregate value of about 3 billion. With respect to CRC, we continue to own 71.5 million shares…
  22. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 22
    First Quarter 2015 Earnings 2Q15 Production Outlook 2Q15 US Production Outlook Oil production for 2Q15 to grow by 5,000 BOD with the increase coming from Permian Resources. Permian Resources is expected to grow its overall volumes…
  23. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 23
    First Quarter 2015 Earnings Full Year 2015 Production Outlook We have raised our FY 2015 guidance for production growth to a range of 60,000 to 80,000 BOED, an increase of 20,000 BOED versus our previous guidance FY15 US Production…
  24. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 24
    First Quarter 2015 Earnings 2Q15 & FY 2015 Guidance Summary Oil & Gas Segment Price Sensitivity Pre-tax Income Impact (Quarter) 2015 total production is expected to be Oil +/- 1/bbl = +/- 30 mm between 650,000 670,000 BOED*. NGL…
  25. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 25
    First Quarter 2015 Earnings Permian Resources Summary Achieved 17% increase in BOED and 22% increase in BOPD vs Q4 14 1Q 2015 WELL ACTIVITY 126 Wells Online Total Production 1Q 2015 (BOED) 98,000 120 Oil Production (BOPD) 62,000 vs.…
  26. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 26
    First Quarter 2015 Earnings Permian Resources Drilling Inventory Lowering economic hurdle point by improving well productivity, time to market and cost 100% Drilling Inventory (44 yrs) 1. Investing in characterization and Based on Q4…
  27. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 27
    First Quarter Earnings Permian Resources Manufacturing Mode: Drilling / Completions Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST DRILL DAYS Delaware WC-A 4,500 HZ Delaware WC-A 4,500 12.0 10.9 50 45 43…
  28. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 28
    First Quarter Earnings Permian Resources Manufacturing Mode: Drilling / Completions Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST WELL COST SCR Spraberry 10,000 HZ New Mexico Bone Spring HZ 10.0 9.7 8.0 7.9…
  29. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 29
    First Quarter 2015 Earnings Permian Resources Delaware Basin: Opportunities Delaware Basin OXY Acreage Benches Majority of Wolfcamp locations are Bell Canyon Cherry Canyon in our operated areas of Reeves Brushy Canyon County.…
  30. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 30
    First Quarter 2015 Earnings Permian Resources Delaware Basin: Activity ACTIVE RIGS WELL ACTIVITY 15 60 10 WELL COUNT RIG COUNT 40 35 33 HZ 27 27 HZ 5 HZ HZ 20 13 HZ 0 0 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14…
  31. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 31
    First Quarter 2015 Earnings Permian Resources Delaware Basin: Performance WELL PERFORMANCE WOLFCAMP A/B 1,800 BOED / 1000 1,600 313 Q1 15 232 1,400 323 Q4 14 234 1,200 325 Q3 14 251 1,000 BOED 323 Q1-Q2 14 800 230…
  32. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 32
    First Quarter 2015 Earnings Permian Resources Midland Basin: Opportunities OXY Acreage Midland Basin Benches Yates Grayburg Majority of Wolfcamp locations San Andres are in our operated areas of Clear Fork Upper Spraberry Martin,…
  33. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 33
    First Quarter 2015 Earnings Permian Resources Midland Basin: Activity ACTIVE RIGS WELL ACTIVITY 15 60 10 RIG COUNT Well Count 40 26 23 HZ 5 20 HZ 17 15 12 HZ HZ HZ 0 0 3Q14 4Q14 1Q15 1Q14 2Q14 3Q14 4Q14 1Q15…
  34. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 34
    First Quarter 2015 Earnings Permian EOR Hobbs: CO2 Flood and Expansion Areas North Hobbs North Hobbs: Phase 1 added 35 MMBOE (Injection Started in 2003) Phase 2A Project develop 13.7 MMBOE at 13.82 per BOE (Injection Starts in…
  35. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 35
    First Quarter 2015 Earnings Permian EOR Denver Unit: Battery 5 Development Waterflood Primary CO2 Battery 5 Redevelopment Project: Develops both Main Oil Column & Residual Oil Zone Requires deepening 150 wells Develops 21…
  36. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 36
    First Quarter Earnings Permian Resources Guidance Continue to execute focused development strategy for the remainder PRODUCTION of 2015 Permian Resources Operate average of 13 rigs (higher than planned) Expect to drill 150 wells…
  37. Q1 2015 EARNINGS CALL – Occidental Petroleum Corp – slide 37
    FIRST QUARTER 2015 EARNINGS CONFERENCE CALL Q&A

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