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Q3 2016 Conference Call – Occidental Petroleum Corp

Occidental Petroleum Corp · Nov 1, 2016 · 33 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. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 1
    OCCIDENTAL PETROLEUM CORPORATION Third Quarter 2016 Conference Call November 1, 2016
  2. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 2
    Third Quarter 2016 Key Messages Cost reductions continue Total Spend per BOE declined to 27.50 / boe Year to Date Operational excellence On track to exceed high end of 4% - 6% production growth guidance Optimal capital…
  3. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 3
    Third Quarter 2016 Total Spend per BOE Continued Decline Capital Spending* + G&A + All Operating Costs Total Spend per BOE = Global Oil & Gas Sales Volumes Internal performance metric to focus on 62.00 operational efficiency,…
  4. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 4
    Third Quarter 2016 Core Production Growth & Reduced Production Costs Total Company Production* Production Costs* (MBOED) (/boe) 11.76 605 578 10.81 3Q 2015 3Q 2016 3Q 2015 3Q 2016 * Ongoing operations; excludes Williston…
  5. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 5
    Third Quarter 2016 Production Outlook The increases in production from Al Hosn and Omans Block 62, along with strong year over year production growth from Permian Resources will help us exceed the higher end of our production…
  6. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 6
    Third Quarter 2016 Capital Program 2016 Capital Budget ( in millions) On track to meet 3 billion capital budget* 687 657 642 Increased activity in Permian Permian Permian Resources Permian Resources Resources Resources…
  7. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 7
    Third Quarter 2016 Ingleside Ethylene Cracker Ingleside Ethylene Cracker September 2016 Ingleside Ethylene LLC 50% / 50% JV with Mexichem 1.5 Billion for a 1.2 Billion lb/yr cracker, pipeline to Markham and storage 20-year supply…
  8. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 8
    Third Quarter 2016 Ingleside Oil Terminal Terminal will have total oil storage capacity of 2 million barrels and throughput capacity of 300 thousand barrels per day Three loadings of crude oil have shipped since commissioning…
  9. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 9
    Third Quarter 2016 Committed Project Capital Declining Committed Project Capital Multiple long-term investments to ( in millions) drive cash flow and earnings 1,300 growth Al Hosn Ethylene cracker JV Ingleside terminal 800 Gas…
  10. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 10
    Third Quarter 2016 Permian Resources Acquisitions 35,000 net acres in Reeves and Pecos counties, Texas, in the Southern Delaware Basin 7,000 BOED of net production (72% oil) from 68 horizontal wells Including this transaction,…
  11. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 11
    Third Quarter 2016 Permian Resources Acquisitions Proximity to other key development areas, such as Permian Resources Drilling Inventory Year End 2015* Barilla Draw, allows for Based on Q4 2015 Costs 100% infrastructure…
  12. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 12
    Third Quarter 2016 Permian EOR Acquisitions Acquired Working Interests Acquired working interests in producing oil and gas CO2 floods and related EOR infrastructure, increasing Occidentals ownership in several properties where it…
  13. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 13
    Third Quarter 2016 Core Results Results Total oil production (Bbl/d) 371,000 (3%) YoY* Total production (BOED) 605,000 Core results** (112) million Core diluted EPS** (0.15) 3Q16 CFFO before Working Capital & Other 614…
  14. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 14
    Third Quarter 2016 Oil and Gas Total Company Production Ongoing Operations In 3Q 2016, total company oil and gas production volumes averaged 605,000 BOED, a decrease of 4,000 BOE in daily production from 2Q 2016. Company-wide Oil &…
  15. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 15
    Third Quarter 2016 Oil and Gas Domestic Production Domestic Oil & Gas Production* (MBOED) 302 (9) 300 3 (2) 294 3Q15 2Q16 Oil NGLs Natural Gas 3Q16 *Excludes Williston and Piceance production volumes 16
  16. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 16
    Third Quarter 2016 Oil and Gas International Production International production was up 4,000 BOED in 3Q 2016 with Al Hosn running at full capacity and the Block 62 in Oman ramp-up, offset by Colombia. International Oil & Gas…
  17. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 17
    Third Quarter 2016 Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 3Q16 41.49 14.99 2.30 44.94 46.98 2.70 WTI % 92% 33% 85%* Brent %…
  18. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 18
    Third Quarter 2016 YTD (as of 9/30/2016) Cash Flow ( in millions) 2,375 (775) 3Q16 (1,980) Debt / Capital 27% 4,400 (1,720) 870 3,180 10 Beginning Cash CFFO Before Change in Capital Dividends Debt Asset Sale Ending…
  19. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 19
    Third Quarter 2016 FY and 4Q 2016 Production Outlook FY 2016 Total Production Outlook Core Assets (Excludes Iraq, Bahrain & Piceance) Total volumes of 600,000 605,000 BOED 4Q16 Total Production Outlook Core Assets Total…
  20. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 20
    Third Quarter 2016 4Q16 & FY 2016 Guidance Summary Oil & Gas Segment DD&A FY 2016E FY 2016E Total Production Core Assets Oil & Gas: 15.50 / BOE 600,000 605,000 BOED Chemicals and Midstream: 655 mm 4Q16E Production Core Assets…
  21. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 21
    Third Quarter 2016 Permian Resources Production Total production grew 4% year-over- year to 121 MBOED Oil NGL Gas MBOED 3Q 2016 activity was down compared to 2Q 2016 128 126 124 9 wells online in 3Q vs 14 in 2Q 121 120 110…
  22. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 22
    Third Quarter 2016 Permian Resources Manufacturing Mode: Drilling / Completions Move to Manufacturing Mode Significantly Reduced Well Cost Permian Resources Permian Resources Cost (MM) / 1,000' of Perforated Lateral 1,000' of…
  23. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 23
    Third Quarter 2016 Permian Resources Southeast New Mexico Recent Performance Optimization efforts have significantly increased value Cedar Canyon Area 2nd Bone Spring 4,500' 3rd Quarter New frac design includes increasing 250…
  24. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 24
    Third Quarter 2016 Permian Resources Texas Delaware Basin Recent Performance Increasing value through subsurface characterization and well design optimization Optimizing completion design and lateral length Testing various proppant…
  25. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 25
    Third Quarter 2016 Permian Resources East Midland Basin Recent Performance Adapting Operational Efficiencies to Stacked Pay Transfer Drilling Dynamics and Improved Completions Designs to multiple bench development Record drilling…
  26. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 26
    Third Quarter Earnings 2016 Permian Resources Continued Opex Reduction Continued focus on reducing field operating costs during 2016 Surface expense /boe reduced 50% from Q2 2015 Company operated operating expense down 28% (/boe)…
  27. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 27
    Third Quarter 2016 Permian Resources Production Optimization Permian Resources Production Focused on maximizing production Optimization (MBOEPD) 8 from existing wells. 7.0 Cumulative Net MBOEPD 7 High return, quick payback…
  28. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 28
    Third Quarter 2016 Permian Resources Increasing Activity Expect to drive double digit production growth in Permian Permian Resources Drilling Activity Resources 35 Actively trading and 30 + swapping acreage to core up position…
  29. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 29
    Third Quarter 2016 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 expected to generate free cash…
  30. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 30
    Third Quarter 2016 World Leader in Enhanced Oil Recovery U.S. CO2 EOR Projects 3,500 Size of bubble = CO2 EOR 3,000 Production Volume Number of Injection Wells Oxy 2,500 2,000 All of Oxys CO2 operations 1,500 Kinder Morgan…
  31. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 31
    Third Quarter 2016 South Hobbs: CO2 Flood and Expansion Areas Main Oil Column CO2 Flood: Residual Oil Zone (ROZ) Potential: Started CO2 injection into Phase 1 in September Four pattern initial development to begin in 2016 2015 (ahead…
  32. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 32
    Third Quarter 2016 Residual Oil Zone Development The ROZ development is a vertical expansion of the CO2 flooded interval. The ROZ underlies most of our major EOR properties with current projects in South Hobbs and West Seminole and can…
  33. Q3 2016 Conference Call – Occidental Petroleum Corp – slide 33
    Third Quarter 2016 Permian Summary Expect to increase to 8 rigs in 4Q16 Oil NGL Gas MBOED Successfully enhancing completion methods across Permian Resources 273 270 255 264 260 265 acreage position 222 Achieving better than…

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