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Q2 2015 RESULTS – Occidental Petroleum Corp

Occidental Petroleum Corp · Jul 30, 2015 · 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. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 1
    OCCIDENTAL PETROLEUM CORPORATION Second Quarter 2015 Earnings Conference Call July 30, 2015
  2. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 2
    Second Quarter 2015 Earnings 2015 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…
  3. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 3
    Second Quarter 2015 Earnings Production Growth Oil production growth driven Total Oil Production by (MBOD) 433 Focused development 426 program in Permian Resources 401 Strong production in Oman and Colombia 382 372…
  4. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 4
    Second Quarter 2015 Earnings Permian Resources Production Growth Oil NGL Gas Total production grew 51% year- over-year to 109 MBOED. Oil production grew 78% 117 year-over-year to 71 MBOD. 109 98 Total production expected to…
  5. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 5
    Second Quarter 2015 Earnings Al Hosn Update Al Hosn is a large, world-scale project and the first of its kind. We expected to undergo some growing pains as it ramped up to full production. In 2Q15, Al Hosn produced 18,000 BOED and…
  6. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 6
    Second Quarter 2015 Earnings 2015 Production Growth U.S. oil production grew 15% year over year* Increased Permian Resources production guidance to 117 MBOED in 2H 2015 Al Hosn expected to average 35 MBOED in 3Q15 and 30 MBOED for FY…
  7. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 7
    Second Quarter 2015 Earnings Ethylene Cracker Update Construction on the Ingleside ethylene cracker is ahead of schedule and on budget 1,300 workers on site 86% of equipment on site 32% of total construction is complete Expect…
  8. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 8
    Second 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 are able to do more with less spending. 100% Capital…
  9. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 9
    Second Quarter 2015 Earnings Cash Flow Priorities and Share Repurchases We have 64 million shares remaining under our current authorization. At current levels, we would view the stock as attractive for repurchases. Shares…
  10. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 10
    Second Quarter 2015 Earnings Highlights Results Domestic oil production (Bbl/d) 205,000 15% year / year growth* Total company production (BOED) 658,000 Core earnings** 165 million Core diluted EPS** 0.21 2015 CFFO from…
  11. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 11
    Second Quarter 2015 Earnings Oil & Gas Segment Pre-Tax Core Earnings PRE-TAX 2Q15 vs. 1Q15 Core Results ( in millions) 2Q15 324 mm 1Q15 57 mm 2Q14 1.7 B 30 (8) 324 28 217 57 1Q15 Sales Price Sales Volumes Lower Operating…
  12. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 12
    Second Quarter 2015 Earnings Oil and Gas Total Company Production Total company oil and gas production volumes averaged 658,000 BOED, an increase of 13,000 BOE in daily production from 1Q 2015. Company-wide Oil & Gas Production…
  13. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 13
    Second Quarter 2015 Earnings Oil and Gas Domestic Production Exceeded our domestic oil production growth guidance with a year over year increase of 26,000 BOD or about 15% led by our Permian Resources assets. Domestic Oil & Gas…
  14. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 14
    Second Quarter 2015 Earnings Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 2Q15 54.55 18.06 2.09 57.94 63.50 2.73 WTI % 94% 31% 77%*…
  15. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 15
    Second Quarter 2015 Earnings Oil & Gas Operating Costs Production Costs ( / BOE) 1Q14 2Q14 3Q14 4Q14 FY 2014 1Q15 2Q15 Total 12.94 13.34 13.45 14.18 13.50 13.36 12.10 U.S. 13.67 14.63 14.89 14.94 14.54 14.46 13.04 DD&A ( / BOE)…
  16. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 16
    Second Quarter 2015 Earnings Chemical Segment Core Earnings 2Q15 vs. 1Q15 PRE-TAX ( in millions) Guidance 3Q15 expected Core Results to be 140 mm. 2Q15 136 mm 1Q15 139 mm 2Q14 133 mm 16 (20) 139 2 (1) 136 1Q15 Sales…
  17. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 17
    Second Quarter 2015 Earnings- Midstream & Marketing Segment Core Earnings PRE-TAX 2Q15 vs. 1Q15 ( in millions) Core Results 2Q15 84 mm 1Q15 (5) mm 59 1 84 2Q14 130 mm 29 (5) 1Q15 Pipelines Marketing Gas Plants 2Q15…
  18. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 18
    Second Quarter 2015 Earnings 1H 2015 Cash Flow 1H15 1H 2015 LT Debt / Capital 17% ( in millions) 2,600 (1,900) (3,200) 7,800 (1,100) 1,500 5,100 (500) (100) Restricted Cash Restricted 4,000 Cash 2,400 Beginning CFFO…
  19. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 19
    Second Quarter 2015 Earnings Capital Program Total company capital expenditures for the 2015 Capital Budget 2Q15 were 1.5 billion and we expect our quarterly expenditures to continue to ramp 1.7 bn down through the year. 1.5 bn…
  20. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 20
    Second Quarter 2015 Earnings 3Q15 Production Outlook 3Q15 US Production Outlook Expect production from our Permian Resources operations to grow by 5% sequentially on a BOE basis, including 5,000 barrels a day of oil growth Growth…
  21. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 21
    Second Quarter 2015 Earnings 3Q15 & 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 660,000 670,000 BOED. NGL…
  22. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 22
    Second Quarter 2015 Earnings Permian Resources Production Growth Oil NGL Gas Total production grew 51% year- over-year to 109 MBOED. Oil production grew 78% 117 year-over-year to 71 MBOD. 109 98 Total production expected to…
  23. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 23
    Second Quarter 2015 Earnings Permian Resources Activity Summary Completed transition to horizontal development program and worked through our inventory of wells awaiting completion. Expect to complete 100 horizontal wells in 2H…
  24. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 24
    Second Quarter 2015 Earnings Permian Resources Drilling Inventory Lowering economic hurdle points through reservoir characterization and optimization, improved productivity and faster time to market 100% Drilling Inventory (44 yrs)…
  25. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 25
    Second Quarter 2015 Earnings Permian Resources Improved Time to Market Faster drilling Less idle time More frac stages per day ( of Days) Integrated planning Infrastructure investments in water handling, storage,…
  26. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 26
    Second Quarter 2015 Earnings Permian Resources Drilling Efficiency 0 Delaware Basin Wolfcamp A January average = 44.3 days well drilling time reduced by 2,000 June average = 22.4 days 50% and costs by 40% 4,000 Improvement = 21.9…
  27. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 27
    Second Quarter Earnings 2015 Permian Resources Well Cost Reductions Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST DRILL DAYS Delaware Wolfcamp A, 4,500 HZ Delaware Wolfcamp A, 4,500 HZ 12.0 50 10.9 45 43…
  28. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 28
    Second Quarter 2015 Earnings Permian Resources Delaware Basin Delaware Basin Benches Majority of Wolfcamp locations are in our operated areas of Reeves Bell Canyon Cherry Canyon County. Brushy Canyon Avalon Delaware Basin…
  29. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 29
    Second Quarter Earnings 2015 Permian Resources Delaware Basin Well Performance: Texas Delaware Wolfcamp A Boepd / 1000 510 70% Oil 378 514 71% Oil 319 305 222 289 225 274 210 OXY Focus Acreage Horizontal wells…
  30. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 30
    Second Quarter Earnings 2015 Permian Resources Well Cost Reductions Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST DRILL DAYS East Midland East Midland Wolfcamp A 7,500 HZ Wolfcamp A 7,500 HZ 10.0 50 9.2 46…
  31. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 31
    Second Quarter 2015 Earnings Permian Resources Midland Basin Midland Basin Benches Yates Grayburg Majority of Wolfcamp locations Midland Basin San Andres are in our operated areas of Clear Fork Upper Spraberry Martin, Midland,…
  32. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 32
    Second Quarter Earnings 2015 Permian Resources East Midland Basin Well Performance: Wolfcamp A Boepd / 1000 244 86% Oil 167 175 143 154 127 OXY Focus Acreage Multiple fields in East Midland with highly economic…
  33. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 33
    Second Quarter 2015 Earnings Permian EOR CO2 Supply & Processing Stable and low-decline base production at an advantaged cost Permian EOR business remains profitable in the current downturn EOR business is expected to generate…
  34. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 34
    Second Quarter 2015 Earnings Permian EOR Operating Efficiency Continue to drive capital and operating cost lower by enhancing operability and productivity San Andres New Drill Downhole Maintenance Average Gross Cost, MM Average…
  35. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 35
    Second Quarter 2015 Earnings Permian Investment in Human Capital New Midland Training Center Finished construction on new training center in Midland and will open in September Given current low product prices, have deployed…
  36. Q2 2015 RESULTS – Occidental Petroleum Corp – slide 36
    Second Quarter Earnings 2015 Permian Summary Continue to execute focused EOR Resources development strategy in Permian Resources 262 254 Operate average of 12 rigs in 243 2H 2015 222 211 Expect to drill 100 horizontal wells in…

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