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BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp

Occidental Petroleum Corp · Nov 11, 2010 · 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. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Bank of America Merrill Lynch 2010 Global Energy Conference Stephen I. Chazen President and Chief Operating Officer November 11, 2010
  2. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 2
    YTD 2010 Results Summary ( in millions, except EPS data) 9 Mos 2010 9 Mos 2009 Core Results 3,336 2,025 Core EPS (diluted) 4.09 2.48 Net Income 3,318 1,977 Reported EPS (diluted) 4.07 2.43 Oil and Gas sales volumes (mboe/d) 741…
  3. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 3
    Oil & Gas Business Drivers Volume Growth Capital Expenditures Acquisitions Return Targets 3
  4. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 4
    Worldwide Oil & Gas Producing Areas United States Libya Iraq California Qatar Permian Basin Bahrain UAE Oman Yemen Colombia Bolivia Argentina Focus Areas 4
  5. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 5
    Oil & Gas Volume Growth Drivers Base 5 8% Growth CO2 in Permian Current California risked prospects Bahrain Oman Iraq Upside from Existing Holdings New California conventional and unconventional prospects Permian exploration…
  6. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 6
    Worldwide Oil & Gas Production Outlook Thousand BOE/Day (Assumes 75 WTI Price) 1200 1,118 9.4% Total 1,033 CAGR 1000 946 837 6.2% Base CAGR 751 800 714 600 400 200 0 2009 2010 2011 2012 2013 2014 Domestic Base…
  7. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 7
    Capital Spending Program California, 20% Permian, 13% California, 23% Permian, 10% % tin ent, 4 Chemicals & Con Mid Continent, 12% Midstream, 20% M id Chemicals & Latin America, 11% Midstream, 8% Latin America, 9% Middle…
  8. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 8
    International Oil & Gas Summary 5 years Grow: Oman gross production from 190 to 240 Mboepd Bahrain gross oil production from 30 to 75 Mbopd Bahrain gross gas production from 1.1 to 1.6 Bcfd Argentina gross production from 50 to 85…
  9. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 9
    International Oil & Gas Production Outlook Thousand BOE/Day (Assumes 75 WTI Price) 486 7.5% Total 500 476 CAGR 452 6.0% Base 420 CAGR 400 365 338 300 453 453 434 200 414 365 338 100 0 2009 2010 2011 2012 2013 2014 Base…
  10. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 10
    International Oil & Gas Capital Spending International Capital 45% Middle East / North Latin Africa 35% America 9% California Latin 23% America 9% Middle East / North Africa Permian 35% 13% Mid Chemicals Continent &…
  11. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 11
    Major Potential Drivers of Production and Profitability US Oil & Gas Permian CO2 3 billion net barrels in resource from Oxy operated only Possibly more CO2 available over the 5-year period Probable better response by 2013-14…
  12. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 12
    US Oil & Gas Production Outlook Thousand BOE/Day 700 632 10.9% Total 557 CAGR 600 494 6.4% Base 417 500 CAGR 386 376 400 300 482 512 452 200 376 386 411 100 0 2009 2010 2011 2012 2013 2014 Base Variance California…
  13. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 13
    US Oil & Gas Capital Spending US Oil & Gas Capital Latin Permian 13% America 9% California California 23% 23% Mid Continent Middle East / North 12% Africa Permian 35% 13% Mid Chemicals Continent & Midstream 12% In the…
  14. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 14
    Permian & California Drilling Rig Activity 40 35 30 Number of Drilling Rigs 15 25 14 20 9 15 5 10 19 21 16 5 11 0 Beginning of Current Year end 2011 2010 2010 California Permian 14
  15. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 15
    Permian Basin Overview Acreage 3,600,000 gross 2,200,000 net 180,000 boe/d production Largest oil producer in Permian (20% of total) Largest operator in Permian (of 1,500+ operators) 60% of Oxys Permian oil production is from…
  16. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 16
    Permian EOR Opportunities Permian properties 7.8 BBO Net Remaining initially had 11.9 BBO net in place 3P Reserves 4.1 BBO have been produced, 0.8 BBO leaving 7.8 BBO net EOR Likely remaining 1.4 BBO 4.6 BBO 1.0 BBO…
  17. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 17
    Permian Reserves and CO2 Requirements The next billion barrels Net Net CO2 Reserves* Required (MMBOE) (TCF) Developed 570 2.8 Undeveloped 430 2.2 TOTAL 1,000 5.0 * 3P Reserves 17
  18. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 18
    Permian CO2 Growth Opportunities Short term CO2 purchase opportunities (1.1TCF) CO2 available for additional purchase Recently contracted for additional 100 MMCFD Oxy produced CO2 (1.6 TCF) Can add CO2 by drilling more wells…
  19. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 19
    Permian Century CO2 Plant Project The Century Plant has started operations and will provide additional CO2 to support growth in our Permian operations. We expect that the plant will yield about 180 mmcf/d of CO2 in 2011 to…
  20. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 20
    Permian Workover Rig Activity Workover rigs We are currently running 94 workover rigs in the Permian, compared with 57 rigs we had at the beginning of the year. We currently expect to be operating 110 rigs at the end of 2010. A…
  21. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 21
    Typical Permian CO2 Project Cost Structure 80 70 13.00 60 4.30 9.80 50 / BOE 5.70 40 75.00 3.80 30 20 38.40 10 - lty t e l x n t ita os os u Ta gi a en ap C ar C…
  22. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 22
    Elk Hills Update We continue to have difficulty with our gas processing and gathering infrastructure at Elk Hills. As a result, we expect our gas and related NGL production to be about flat in 4Q10 vs. 3Q10. We have ordered and…
  23. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 23
    California Conventional Exploration Major Producing World Class Province Basins 35+ Billion BOE discovered 5 of top 12 U.S. oil fields 2 Billion BOE Significant Remaining Potential Large undiscovered resources Sacramento Multiple…
  24. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 24
    California Exploration Going Forward Major Producing 2011 - 14 Annual Program Basins Wells* Discovery Play 7 - 10 High Potential 5 - 10 Sacramento Bread & Butter 5-6 San Francisco Emerging 3-4 14 - 20 Wells Total per year 20 -…
  25. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 25
    California Field Sizes Discovery Play High Potential ution Bread & Butter trib Dis Size ld…
  26. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 26
    California Conventional Exploration Summary Tremendous potential Attractive risk profile (Oxy 1 in 3 success rate) Dominant land position Kern County Discovery 175 - 250 MMBOE net discovered with significant upside Discovery Play 7…
  27. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 27
    Oxy California Unconventional Shale Play Shale drilling program really started in 1998 at Elk Hills Currently, over 1/4th of Oxys production in California comes from shales Have successfully tested concept in eight more fields…
  28. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 28
    Occidental Acreage Southern California Oxy has approximately Rose Rose 1.6 MM net acres in North North Shafter Shafter California Monument Monument Junction Junction Largest acreage Bakersfield position in the state Elk…
  29. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 29
    Side by Side Shale Play Comparison Play Depth Thickness Porosity Permeability TOC (ft) (ft) (%) (mD) (%) CA Shales 3,500 - 500 3,500 5…
  30. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 30
    Oxy California Shale Summary 870,000 acres are within most prospective shale plays Oxys average NRI 95% Multiple potentially productive shale zones in each well Oxys acreage encompasses favorable thermal regime Identified 15 areas…
  31. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 31
    Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Acquisitions 5. Share Repurchase 31
  32. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 32
    YTD 2010 Cash Flow 2010 YTD free cash flow after capex and dividends but before acquisition activity and debt retirements was about 3.1 billion. 7,800 2,820 ( in millions) 1,940 Cash Flow From 850 Operations 6,600 310 220…
  33. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 33
    Dividends 1.70 1.52 1.50 1.28 1.32 1.30 C AGR % 14.4 1.10 1.00 0.88 0.90 0.72 0.70 0.62 0.52 0.55 0.50 0.50 0.30 Prior Mar-03 Mar-04 Mar-05 Dec-05 Sep-06 Sep-07 Jun-08 Jun-09 Jun-10 33
  34. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 34
    Acquisition Strategy Companys core business is acquiring assets that can provide future growth through improved recovery. Foreign contracts Domestic add-ons Small incremental additions to production in short term Generate returns of…
  35. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 35
    Recent Acquisitions Our acquisition costs in 3Q10 were 1.1 billion and we spent about 300 million in the first part of 4Q10. We expect these to add about 10 mboe/d average production in 4Q10. These acquisitions have a run rate of…
  36. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 36
    Oxy Investment Attributes 5 - 8% base annual production growth Opportunity for additional volume growth Annual increases in dividends Significant financial flexibility for opportunities in distressed periods Conservative financial…
  37. BAML GLOBAL ENERGY CONFERENCE – Occidental Petroleum Corp – slide 37
    Occidental Petroleum Corporation

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