Occidental Petroleum Corporation p Third Quarter 2012 Earnings Conference Call October 25, 2012
Third Quarter 2012 Earnings Highlights Income from continuing operations 1.4 Billion in 3Q12 vs. vs 1.8 1 8 Billion in 3Q11 or 1 1.3 3 Billion in 2Q12 2Q12. EPS 1.70 (diluted) vs. 2.18 (diluted) in 3Q11 or 1.64 (diluted) in…
Third Quarter 2012 Earnings Oil & Gas Segment Variance Analysis 3Q12 vs. 2Q12 Core Results for 3Q12 of 2.0 B vs. 2.0 B in 2Q12 2,043 94 23 59 28 44 13 2,026 ( in i millions) illi ) 2Q12 Sales Price Sales Volume G&A…
Third Quarter 2012 Earnings Oil & Gas Production 3Q12 3Q11 Oil and Gas Production Volumes (mboe/d) 766 739 3Q12 production of 766 mboe/d increased 4% from 3Q11; Domestic production was 469 mboe/d, an increase of 7 mboe/d from 2Q12…
Third Quarter 2012 Earnings Oil & Gas Production Latin America volumes were 32 mboe/d; In the Middle East region, volumes were 265 mboe/d: Dolphins production was 13 mboe/d lower than 2Q12 resulting from the full cost recovery of…
Third Quarter 2012 Earnings Oil & Gas Segment Realized Prices 3Q12 realized prices were mixed for our products compared to 2Q12. Our worldwide crude oil realized price was 96.62 96 62 per bbl, bbl a decrease of about 3%; worldwide…
Third Quarter 2012 Earnings Oil & Gas Segment Realized Prices Realized oil prices for the quarter represented 105% of the average WTI and 88% of the average Brent price. Realized NGL prices were 44% of the average WTI and realized…
Third Quarter 2012 Earnings Oil & Gas Segment 3Q12 3Q11 Reported Segment Earnings (mm) 2,026 2,612 WTI Oil Price (/bbl) 92.22 89.76 Brent Oil Price (/bbl) 109.48 112.22 NYMEX Gas Price (/mcf) 2.76 4.28 Oxys y Realized Prices Worldwide…
Third Quarter 2012 Earnings Oil & Gas Segment Production Costs and Taxes Oil and gas cash production costs were 15.00 per boe for the first nine months of 2012, compared with 12.84 per boe for the full year 2011. The cost increase…
Third Quarter 2012 Earnings Chemical Segment Variance Analysis 3Q12 vs. 2Q12 Core Results for 3Q12 were 162 mm vs. 194 mm in 2Q12 The sequential quarterly and year-over-year decline were due to lower Asian market demand that drove…
Third Quarter 2012 Earnings Midstream Segment Variance Analysis 3Q12 vs. 2Q12 Core Results for 3Q12 were 156 mm vs. 77 mm in 2Q12 Increase in earnings was in the marketing and trading businesses and power generation, partially offset…
Third Quarter 2012 Earnings Taxes The worldwide effective tax rate was 38% for 3Q12 3Q12. The lower rate compared to our guidance was attributable to a shift in the mix of income toward domestic. Our 3Q12 US and foreign tax rates…
Third Quarter 2012 Earnings 2012 YTD Cash Flow Working capital reduced our nine-month cash flow from operations of 9.2 billion by 660 mm to 8.5 billion. 510 mm of working capital use occurred in 3Q12. Capex was 7.7 billion for the…
Third Quarter 2012 Earnings Shares Outstanding & Debt/Capital Shares Outstanding (mm) YTD12 9/30/12 Weighted Average Basic 810.1 810 1 Weighted Average Diluted 810.8 Basic Shares Outstanding 809.3 Diluted Shares Outstanding…
Third Quarter 2012 Earnings Key Performance Metrics Occidentals domestic oil and gas segment produced record volumes for the eighth consecutive quarter and continued to execute on our liquids production growth strategy. 3Q12 domestic…
Third Quarter 2012 Earnings Key Performance Metrics Compared to 3Q11, our domestic production grew by 8%, or 33 mboe/d, of which 30 mb/d was oil production growth. 500 462 469 449 455 436 72 73 74 70 oe per day 400 73…
Third Quarter 2012 Earnings Oxys Strategy Three Th main i objectives: bj ti Generate rates of return on invested capital significantly in excess of our cost of capital; Achieve moderate growth of the business; Deliver continued…
Third Quarter 2012 Earnings Oxys Strategy This year, we expect to spend These expenditures include 25% of our total capital capital for: expenditures on future growth projects that will contribute to the Al Hosn Shah gas project our…
Third Quarter 2012 Earnings Permian Domestically and internationally, we have a mix of both higher return assets and higher growth assets. Importantly, Importantly many of our higher growth assets are relatively early in their…
Third Quarter 2012 Earnings Permian Oxy Acreage in Select Permian Basin Plays (Thousands of Acres) Delaware Basin Gross Oxy Share As a result of the significant g Avalon 340 120 activity by us and our partners, Bone Spring 1 Sand 560…
Third Quarter 2012 Earnings California In CA, we have a very large acreage position with diverse geologic characteristics and numerous reservoir targets targets. Development opportunities range from conventional to steam floods,…
Third Quarter 2012 Earnings California Liquids Production Volumes In mid-2010, we shifted our development program to conventional and unconventional opportunities outside of the traditional and more mature Elk Hills areas. Liquids…
Third Quarter 2012 Earnings California Gas Production Volumes Recently, we further modified our programs to emphasize oil production in light of depressed gas and associated liquids prices. As a result, gas production in all of CA…
Third Quarter 2012 Earnings California Total CA production growth on a BOE basis is slower than we thought g it would be,, in part p due to the Elk Hills decline, permitting issues and more recently low gas prices. On a positive…
Third Quarter 2012 Earnings California Elk Hills Cryogenic Gas Processing Plant Over the last several years we have spent 370 mm on the new Elk Hills gas plant. The plant went into operation in early July and, notwithstanding i…
Third Quarter 2012 Earnings California We will continue our focus on higher return, low cost opportunities in CA, and this is a very diverse opportunity set. For example, Lost Hills a major steam flood project We expect p to…
Third Quarter 2012 Earnings Williston / Mid-Continent In the Williston basin in North Dakota, we currently have over 310,000 net acres with significant resource potential, which we estimate to be about 250 million net barrels. O…
Third Quarter 2012 Earnings International Internationally, our most significant businesses are in the Middle East region where our operations are characterized by limited duration contracts with high rates of return on invested…
Third Quarter 2012 Earnings International Al Hosn Gas Project The Al Hosn gas project is approximately 61% complete and is progressing as planned. This project made up 11% of our total capital program for the first nine months of…
Third Quarter 2012 Earnings International Currently, the Al Hosn project is consuming sizeable amounts of capital during its development phase. p We expect to see a significant g shift in late 2014 when this project p j changes…
Third Quarter 2012 Earnings Operating Costs & Capital We are focused on improving returns through a comprehensive effort to reduce operating expenses and improve capital efficiency. Our operating costs have been increasing for…
Third Quarter 2012 Earnings Operating Costs & Capital We are embarking on an aggressive plan to improve our operational efficiency across all cost categories, including capital, it l with ith a view i tto achieve hi an…
Third Quarter 2012 Earnings 4Q12 Outlook Capital Program Our 4Q12 capital spending will slow from the 3Q12 level to a run rate that we believe will be in line with next year's total capital it l program. Our intention was to reduce…
Third Quarter 2012 Earnings 4Q12 Outlook Oil and Gas Production Over the past year, we have achieved our goal of increasing domestic production by 6 to 8 mboe/d quarter-over-quarter. We expect our 4Q12 oil production to grow by…
Third Quarter 2012 Earnings 4Q12 Outlook Chemicals & Taxes The fourth quarter is typically the chemical segments weakest quarter. quarter We estimate 4Q12 earnings will be about 140 mm, or slightly lower than 3Q12. Along with…
Third Quarter 2012 Earnings Summary We believe we have a deep portfolio of development opportunities that will allow us to continue to deliver returns that are 5 to 6 percentage points above our cost of capital. Total return to our…
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