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Scotia Howard Weil Conference – Occidental Petroleum Corp

Occidental Petroleum Corp · Mar 22, 2016 · 23 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. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 1
    OCCIDENTAL PETROLEUM CORPORATION Stephen I. Chazen Chief Executive Officer Howard Weil March 22, 2016
  2. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 2
    Why own Oxy Large Integrated Majors Independent E&Ps Company Market Cap (B) Company Market Cap (B) XOM 350 COP 53 CVX 182 Oxy EOG 42 RDS 160 Uniquely APC 25 TOT 111 Positioned PXD 23 BP 97 APA 19 ENI 49 MRO 8 Characteristics…
  3. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 3
    Keys to Success Balance Sheet Strength Diverse Portfolio Ended 2015 with 4.4 Billion Long life cash flow assets cash Significant growth potential Debt of 8.3 Billion (25% 5% 8 % long-term debt to capitalization ratio) Flexibility to…
  4. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 4
    History Of Returning Cash To Shareholders ( in Billions) Share Period ending 2015 Cash Dividends Repurchases Combined 3 years 6.0 4.0 10.1 5 years 9.6 4.9 14.5 10 years 14.2 9.1 23.3 Additionally, over the 10 years ending…
  5. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 5
    2016E Sources & Uses of Cash 2016 Illustrative Sources and Uses of Cash 9.2 bn S&P Rating affirmed at single A with stable outlook. Moodys lowered only one notch (A2 to A3) Financial flexibility to invest through the cycle and…
  6. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 6
    Oxy Runs A Focused Business Oil and Gas Focus Areas United States Leading position OxyChem in the Permian Basin High FCF, moderate Permian Resources growth business. is a growth driver Oxy Midstream MENA Al Hosn Project,…
  7. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 7
    Permian Basin Is The Core Domestic Asset EOR Business 2015 Production - 145 MBOEPD 1 million net acres 1.9 Billion BOE remaining in reserves and resources Resources (Unconventional) 2015 Production 110 BMOEPD 1.5 million net…
  8. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 8
    2016 Permian Strategy Given the current oil price environment, we will focus on investment to achieve four core goals: Accelerate geoscience, characterization and modeling programs to enhance recovery, productivity and field economic…
  9. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 9
    Permian Summary EOR Resources 2016 activity focused on core locations with minimal infrastructure investments 261 266 255 Analyze appraisal data to support future development and initiate 222 211 seed projects for long term…
  10. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 10
    Oxy is the Largest Permian Basin Producer 10% 50% 75% 350 NET MBOEPD OPERATED PRODUCTION Cumulative Gas Liquids Average % of total 300 3.1 million BOEPD 250 200 150 100 50 - Source: Wood Mackenzie,…
  11. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 11
    Permian EOR Strategy CO2 Supply & Processing 1.0 million net acres Shift more capital to longer-cycle EOR to take advantage of lower cost of materials and services Inventory includes projects that have F&D costs of 3-12/BOE…
  12. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 12
    World Leader in CO2 Enhanced Oil Recovery U.S. CO2 EOR Projects Size of bubble = CO2 EOR Production Volume 3,500 Number of Injection Wells 3,000 Occidental 2,500 2,000 Inject 1.9 billion cubic feet a day 1,500 Kinder…
  13. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 13
    Permian EOR ROZ Projects development cost South Hobbs ranges from 3 - 7 per BOE Residual Oil Zone (ROZ) Potential: Four pattern to begin in 2016. Full ROZ expansion: 50 patterns; 80 MMBOE Stranded Oil in the Residual Oil Zone…
  14. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 14
    Permian EOR Cost Structure Permian EOR can operate at cash costs as low as 22 per BOE 2015 Permian EOR Cost Structure 2015 Permian EOR Cost Structure 55 WTI, 3.00 NYMEX 35 WTI, 2.00 NYMEX 35 35 30 2.7 30 25 4.0 25 4.7 1.8…
  15. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 15
    Permian Resources Summary 1.5 million net acre position 2016 Focus Areas Shorter cycle faster growth Significant improvements in capital execution efficiency and reduction in operating expenses Will run 2-4 drilling rigs in…
  16. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 16
    Permian Resources Drilling Inventory Continuing to lower economic hurdle points through reservoir characterization and optimization, improved productivity, reduced well costs, and faster time to market 100% Total of 8,500 locations in…
  17. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 17
    Permian Resources Production Growth Oil NGL Gas Total production grew 40% year-over-year to 118 MBOED. 118 123 Oil production grew 49% 110 year-over-year to 76 MBOD Oil production is expected to continue to grow at rates 75…
  18. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 18
    Permian Resources Cost Reduction Permian Resources Operating Costs / BOE 15.00 13.20 13.03 Focus on reducing field 11.39 10.87 operating costs during 2015 10.00 9.73 Downhole expense (/boe) reduced 34% from 4Q14 Company operated…
  19. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 19
    Permian Resources Manufacturing Mode Delaware Wolfcamp A 4,500 HZ East Midland Wolfcamp A 7,500 HZ 10.9 Drilling Drilling Completions Completions WELL COST MM WELL COST MM 9.2 5.6 6.2 5.5 6.0 5.5 5.3 3.2 3.7 2.8 3.4 5.3…
  20. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 20
    2016 Capital Outlook 2016 Capital Budget Carefully reduce activity levels without ( in bln) harming the strong progress on growth prospects 5.6 Fund only those opportunities that exceed hurdle rates of return 2016 plan approximates…
  21. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 21
    Committed Project Capital Declining Committed Project Capital Multiple long-term investments to ( in millions) drive cash flow and earnings growth 1,300 Al Hosn Ethylene cracker JV 800 Ingleside terminal Gas processing 500…
  22. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 22
    Improved Cost Structure Domestic Production Costs Overhead (SG&A) (/boe) ( millions) Expect continued improvement in cost structure 1,503 15.64 Strategic Initiatives 13.73 1,270 13.00 Lower workovers 1,150 Lower downhole…
  23. Scotia Howard Weil Conference – Occidental Petroleum Corp – slide 23
    Summary Key to Success / Strengths A key to long term success is to take advantage of this downturn to improve our future: Major cost structure changes Data Analytics Further advances in improved recovery Technology (new or…

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