Skip to main content HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp Investor Presentation | Shale Experts
Loading...
Pm

HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp

Occidental Petroleum Corp · Mar 24, 2014 · 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. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Howard Weil 42nd Annual Energy Conference Stephen I. Chazen President and Chief Executive Officer March 24 - 26, 2014
  2. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 2
    Key Messages Generate shareholder value by employing our current strategy: Stronger financial returns Continued improvement in our capital and drilling efficiency with the goal of generating higher earnings from our oil and gas…
  3. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 3
    Full Year 2013 Results Summary ( in millions, except EPS data) FY 2013 FY 2012 *Core Income from continuing operations 5,602 5,750 *Core EPS (diluted) from continuing 6.95 7.09 operations Reported Net Income 5,903 4,598 Reported…
  4. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 4
    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…
  5. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 5
    Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Share Repurchase 5. Acquisitions 5
  6. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 6
    Why own Oxy Large Integrated Majors Independent E&Ps Company Market Cap (B) Company Market Cap (B) XOM 408 COP 83 RDS 232 Oxy EOG 52 CVX 221 Uniquely APC 42 TOT 155 Positioned APA 32 BP 143 PXD 26 ENI 90 MRO 23 Characteristics…
  7. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 7
    Delivering Consistent Dividend Growth (/share) 17.39 18.00 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 2.56 2.88 2.16 2.22 1.84 1.57 1.47 2.00 1.21 1.31 1.02 0.80 0.94…
  8. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 8
    Oxy Is Primarily A Domestic Oil Producer Oil & Gas Production Full Year 2013 (Million barrels of oil equivalent) 75 27% 106 38% 173 173 31 62% 62% 11% Oil NGLs Gas Domestic International 8
  9. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 9
    Improvement in Capital Efficiency & Operating Costs Domestic Operating Costs Improved capital efficiency in the U.S. by 24% last year vs. 2012, saving 900 mm of capital. 17.43 Permian 50% of improvement 14.43 (/boe) California…
  10. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 10
    Strong 2013 Oil & Gas Reserves Replacement Very successful year in growing the Companys reserve base, by adding substantially more reserves than we produced, over 90% of which was added through our organic development program. Ended…
  11. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 11
    2013 Oil & Gas Reserves 2013 Overall Reserve (in millions of BOE) 142 3,483 Replacement Ratio of 169% 32 3,296 (278) 291 FY12 Reserves 2013 Production U.S. Organic U.S. Acquisitions International Organic FY13 Reserves…
  12. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 12
    2013 Oil & Gas Reserves Success of our organic reserve additions and the efficiencies we have achieved in our operations demonstrates the significant progress we have made in turning the Company into a competitive domestic producer.…
  13. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 13
    Improving ROCE Our focus in 2013 was to enhance Return on Capital Employed * shareholder value through our results. Heavily focused on growing domestic oil production, improving our capital efficiency and F&D costs and lowering…
  14. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 14
    Capital Spending Program 2014 Capital Program expected to be 10.2 billion* Capital increase includes 400 mm Capital Investment ( bn) allocated to each of our CA and Permian operations largely for additional drilling 10.2 to…
  15. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 15
    Capital Spending Program Long-term investment 25% + Long-term investment 20% + Exploration Exploration 5% 6% Chemicals & Permian Chemicals & Permian U.S. Midstream 20% U.S. Midstream 22% 12% 13% Americas Oil &Gas Americas Oil…
  16. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 16
    2014 Production Outlook Total Company* We expect our 2014 total company 780 - 790 production volumes to grow to 763 780 - 790 mboe/d vs. 763 mboe/d in Mboe/d 2013, with a 4Q14 exit rate of over 800 mboe/d, excluding the…
  17. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 17
    Permian Basin Overview 2013 production of 212 mboe/d, vs. 207 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…
  18. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 18
    Permian Basin Capital Spending Permian Basin Capital Two business units: ( in mm) Permian EOR: CO2 and water 2,190 floods. Permian Resources: growth 1,722 oriented unconventional. 1,530 The entire 450 mm increase in 1,107 capital…
  19. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 19
    Permian Basin Production 222 212 We expect the Permian EOR business to offset its decline in 2014 and grow 1.4%. The Permian Resources business is mboe/d expected to grow oil production faster, by 20% - 25% and total production…
  20. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 20
    Permian Resources Permian Basin Plays We see the largest near-term growth in the Midland Basin, which represents 2/3 of Matador Arch our currently assessed resource potential. Northwest Shelf Our Delaware Basin prospective acreage…
  21. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 21
    Permian Resources Acreage in Select Permian Plays (Thousands of Acres) Believe we have one of the most promising and Delaware Basin Gross Net under-exploited unconventional portfolio in the Avalon 365 130 basin. Bone Spring 1 Sand 540…
  22. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 22
    Permian Resources Shift to Horizontal Drilling Drilled 49 horizontal wells in 2013. Improvements in our well costs, Development Wells our own results as well as those of neighboring operators have Horizontal 345 given us the…
  23. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 23
    Permian EOR Permian EOR SLAUGHTER (CVX) IRISH Business unit is a combination of COCHRANIGOE SMITH HOCKLEY LEVELLAND LUBBOCK CROSBY DICKE LUBBOCK water and CO2 floods. NM HT BOYD SLAUGHTER FRAZIER SALT C PRENTICE…
  24. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 24
    Permian Summary Growth Outlook Significant free cash flow from Permian EOR to fuel growth. Plan to double drilling rigs over next 3 years to accelerate growth in Permian Resources. Production Permian EOR Permian Resources 207…
  25. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 25
    Permian Summary Significant Position with Key Competitive Advantages Large and diverse portfolio creates a variety of growth options. More than 2.5 billion BOE in reserves and potential resources with 15+ years of development and…
  26. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 26
    California Overview Largest producer of natural gas and oil and gas on a gross operated BOE basis. Largest oil & gas mineral acreage holder, with 2.3 mm net acres. 2013 production of 154 mboe/d vs. 148 mboe/d in 2012. 78% interest…
  27. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 27
    California Capital Program Focus on low-decline projects. California 2014E Capital - 1.9 bn 2014 Goals Accelerate production growth. Maintain low cost structure. Steam Floods 20% Advance several low-risk, high- Unconventional…
  28. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 28
    California Production Production Outlook Capital shift to lower decline and lower risk steam and water flood projects. We believe we can grow production from 154 mboe/d to 190 mboe/d in 190 2016, a 7.5% CAGR. Water & steam floods…
  29. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 29
    Middle East / North Africa Overview Oman, Qatar & United Arab Emirates 70% of MENA Production 85% of Income from Operations 75% of Capital Nearly all free cash flow 29
  30. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 30
    Middle East / North Africa Overview Over 20 bn free cash flow in last 15 years. Expect to generate over 2.0 bn annual free cash flow after Al Hosn Gas Project start-up. Invested 9 bn of capital since 2010, 75% in Oman, Abu Dhabi…
  31. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 31
    Long-term Growth Investments Some of the longer lead time investments we have been making over the past couple of years will start contributing to our results this year. Specifically: The Al Hosn Gas Project is expected to start…
  32. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 32
    Future Growth Al Hosn Gas Project Al Hosn Gas Project Plant will be able to process 1 Bcfd of field gas and separate it into sales gas, condensate, NGLs and sulfur. Oxys net production expected to be 200+ MMSCFD of sales gas and 20+…
  33. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 33
    Future Growth The BridgeTex Pipeline Project Goal is to maximize our oil price Oxy spending 400 mm to develop the BridgeTex pipeline as a JV with realizations, particularly for the oil Magellan Midstream Partners; produced in our…
  34. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 34
    Future Growth Chemicals OxyChem Ingleside Ethylene Cracker We have formed a 50/50 JV with Mexichem to build a world scale ethylene cracker at the OxyChem plant in Ingleside, TX. Construction on the Ingleside cracker project is…
  35. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 35
    Oxy Summary Q: What does Oxy look like after the separation of our California assets into an independent and separately traded company A: Very similar to the current Oxy, although somewhat smaller. Higher financial returns…
  36. HOWARD WEIL ANNUAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 36
    37

From the store

Browse maps, data & reports in the Shale Experts store