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BAML Global Energy Conference – Occidental Petroleum Corp

Occidental Petroleum Corp · Nov 17, 2016 · 34 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 BAML Global Energy Conference November 17, 2016
  2. BAML Global Energy Conference – Occidental Petroleum Corp – slide 2
    Key Messages & Strategy Overriding Goal is to Maximize Total Shareholder Return We believe this can be achieved through a combination of: Oil and gas production growth of 5% to 8% per year over the long-term; Executing on our…
  3. BAML Global Energy Conference – Occidental Petroleum Corp – slide 3
    Cash Flow Priorities Favor Dividends 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital Subject to Returns and 4. Acquisitions Market Conditions 5. Share Repurchases 4
  4. BAML Global Energy Conference – Occidental Petroleum Corp – slide 4
    Key Messages & Takeaways High quality oil and gas assets & other low capital intensity operations Improving free cash flow in other segments provides continued dividend support Significant exposure to a recovery in oil prices provides…
  5. BAML Global Energy Conference – Occidental Petroleum Corp – slide 5
    Unique Investment Proposition Large Integrated Majors Independent E&Ps Company Market Cap (B) Company Market Cap (B) XOM 358 COP 57 RDS 211 Oxy EOG 54 CVX 203 Uniquely APC 34 TOT 120 Positioned PXD 30 BP 105 DVN 23 ENI 51 APA 22…
  6. BAML Global Energy Conference – Occidental Petroleum Corp – slide 6
    A Focused Business with High Quality Assets 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 Al Hosn…
  7. BAML Global Energy Conference – Occidental Petroleum Corp – slide 7
    Total Spend per BOE Has Declined 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, especially in…
  8. BAML Global Energy Conference – Occidental Petroleum Corp – slide 8
    Production Growth Exceeding Expectations Expect to exceed the higher end of 2016 production guidance of 4% - 6% growth Record high production at Al Hosn and Oman Permian Resources 13% FY 2016 growth Anticipate production growth of…
  9. BAML Global Energy Conference – Occidental Petroleum Corp – slide 9
    Recent Debt Offering & Sources of Liquidity Cash balance of 3.2 billion at 9/30/2016 Recently issued 1.5 billion in bonds with 10-year coupon at 3.00% and 30-year coupon at 4.10% Single A credit ratings re-affirmed with stable…
  10. BAML Global Energy Conference – Occidental Petroleum Corp – slide 10
    Capital Flexibility to Pursue Growth Preliminary Capital Outlook Total sustaining and ( in bln) maintenance capital of 2.2 3.3 - 3.8…
  11. BAML Global Energy Conference – Occidental Petroleum Corp – slide 11
    Middle East Update Achieved record production YTD 2016 in Oman, Qatar and the UAE Core Countries 2017 Impact Oman: YTD record production of 95 Improved production and cost reductions at MBOED through multiple onshore Al Hosn and in…
  12. BAML Global Energy Conference – Occidental Petroleum Corp – slide 12
    Midstream Update Business Segments 2017 Impact Gas Plants: Natural gas and CO2 Free cash flow expected to improve 150 - gathering, compression and processing 200+ MM due to better marketing systems to control upstream costs economics…
  13. BAML Global Energy Conference – Occidental Petroleum Corp – slide 13
    Chemicals Update Integrated Value Chain 2017 Impact Chlorine: 60% Internal Use for VCM, Expect free cash flow to increase by 400 MM EDC, and Other Derivatives / 40% with lower capital expenditures, start up of External Merchant Sales…
  14. BAML Global Energy Conference – Occidental Petroleum Corp – slide 14
    Free Cash Flow Improvement Improved market conditions, project start-ups and lower capital should increase free cash flow generation in 2017 2017 vs 2016 FCF Improvement MENA 300 MM Midstream 150 - 200 MM Chemicals 400 MM…
  15. BAML Global Energy Conference – Occidental Petroleum Corp – slide 15
    Permian Basin Is The Core Domestic Asset EOR Business YTD 16 Production - 144 MBOEPD 1 million net acres 1.9 Billion BOE remaining in reserves and resources Resources (Unconventional) YTD 16 Production 125 MBOEPD 1.4 million net…
  16. BAML Global Energy Conference – Occidental Petroleum Corp – slide 16
    Growing the Greater Barilla Draw Area 26% Working Interest Unique opportunity to increase working BEFORE interests and operatorship in Red Bull properties Recent acquisition enhances Occidentals strong position in the Southern…
  17. BAML Global Energy Conference – Occidental Petroleum Corp – slide 17
    Multi-Bench Development Potential Recent Wells Barilla Draw Type Log Effective Lateral IP-30 Target Formation Well * Length (Feet) (Boepd) Avalon Potential 1st Bone Spring Evaluating Well 1 4,514 762 2nd Bone Spring Well 2…
  18. BAML Global Energy Conference – Occidental Petroleum Corp – slide 18
    Greater Barilla Draw Advantages Well Productivity Well Cost* Infrastructure Cost 12 7,500 ft Lateral 7,500 ft Lateral 180 Facilities % of Development Capex 30% 6 Month Cumulative MBOE 10 Total Well Cost (MM) 150…
  19. BAML Global Energy Conference – Occidental Petroleum Corp – slide 19
    Acquisition Influence on Greater Barilla Draw Net Production - BOEPD Oxys development capability adds significant value to the acquired assets 38,500 38,000 Previously owned a 26% WI in the acquisition 31,000 area Oxy operating…
  20. BAML Global Energy Conference – Occidental Petroleum Corp – slide 20
    Greater Barilla Draw Development Area Timeline Enter Appraise Improve Optimize Innovate Grow Systematic Subsurface Pad Drilling Extended lateral Acreage Unconstrained acquisition characterization inventory build improvements Growth…
  21. BAML Global Energy Conference – Occidental Petroleum Corp – slide 21
    Greater Barilla Draw Pecos, Reeves, Ward Counties, TX as of 12/31/2011 Collie Lockridge Acreage Map Legend Shallow Delaware Oxy Operated production at Collie 2012 - Enter Deep gas production at Lockridge 22
  22. BAML Global Energy Conference – Occidental Petroleum Corp – slide 22
    Greater Barilla Draw Jan 2012: Acquired Motorcycle Non-Operated Position Collie Lockridge Motorcycle Acreage Map Legend Acquired Acreage Shallow Delaware Oxy Operated production at Collie 2012 - Enter Deep gas Non-op…
  23. BAML Global Energy Conference – Occidental Petroleum Corp – slide 23
    Greater Barilla Draw Mar - Jun 2012: Acquired Barilla Draw Operated Position Collie Lockridge Barilla Draw Motorcycle Acreage Map Legend Acquired Acreage Outside Operated Shallow Delaware Oxy Operated production at…
  24. BAML Global Energy Conference – Occidental Petroleum Corp – slide 24
    Greater Barilla Draw Oct 2012: Acquired Barilla Draw Bolt-On Operated Positions Collie Lockridge Barilla Draw Motorcycle Acreage Map Legend Acquired Acreage Outside Operated Shallow Delaware Oxy Operated production at…
  25. BAML Global Energy Conference – Occidental Petroleum Corp – slide 25
    Greater Barilla Draw May 2013: Acquired Bolt-on Operated Position Collie Lockridge Barilla Draw Motorcycle Acreage Map Legend Acquired Acreage Outside Operated Oxy Operated 2012 - Enter 2013 - Appraise Operated…
  26. BAML Global Energy Conference – Occidental Petroleum Corp – slide 26
    Greater Barilla Draw Sept 2013: Acquired Non-Operated Position Collie Lockridge Barilla Draw Red Bull - North Red Bull - South Motorcycle Acreage Map Legend Acquired Acreage Outside Operated Oxy Operated 2012 - Enter…
  27. BAML Global Energy Conference – Occidental Petroleum Corp – slide 27
    Greater Barilla Draw 2014 - 2016: Organic Growth & Optimization Collie Lockridge Barilla Draw Red Bull - North Red Bull - South Motorcycle Acreage Map Legend Outside Operated Oxy Operated 2012 - Enter 1st WC C Hz…
  28. BAML Global Energy Conference – Occidental Petroleum Corp – slide 28
    Greater Barilla Draw 2014 - 2016: Organic Growth & Optimization Collie Lockridge Barilla Draw Red Bull - North Red Bull - South Motorcycle Acreage Map Legend Outside Operated Oxy Operated Stimulation Trials: 2012 -…
  29. BAML Global Energy Conference – Occidental Petroleum Corp – slide 29
    Greater Barilla Draw 2016: Enhanced Manufacturing Mode w/ Recent Acquisition Collie Lockridge Barilla Draw Red Bull - North Red Bull - South Motorcycle Acreage Map Legend Acquired Acreage Outside Operated Oxy Operated…
  30. BAML Global Energy Conference – Occidental Petroleum Corp – slide 30
    Greater Barilla Draw 2016: Enhanced Manufacturing Mode w/ Recent Acquisition Collie Lockridge Barilla Draw Red Bull - North Red Bull - South Motorcycle Acreage Map Legend Outside Operated Oxy Operated 2012 - Enter Red…
  31. BAML Global Energy Conference – Occidental Petroleum Corp – slide 31
    Greater Barilla Draw Timeline Collie Lockridge Barilla Draw Red Bull North (63%) Red Bull - South Motorcycle (25%) Existing Oxy 3D Seismic Surveys Proposed 2017 3D Seismic Acquisition Outside Operated Oxy Operated…
  32. BAML Global Energy Conference – Occidental Petroleum Corp – slide 32
    Permian Resources Drives Oxy Production Growth Total Permian Resources Oil NGL Gas MBOED production growth expected to be 13% in 2016 Increased activity expected in 4Q16 124 in preparation for 2017 growth 110 5 rigs drilling a…
  33. BAML Global Energy Conference – Occidental Petroleum Corp – slide 33
    Overall Permian Continues to Grow Expect to increase to 8 rigs in 4Q16 Oil NGL Gas MBOED Successfully enhancing completion methods across Permian Resources acreage position 270 255 Achieving better than expected results in both…
  34. BAML Global Energy Conference – Occidental Petroleum Corp – slide 34
    Access to Multiple Markets Through Midstream Investments Cushing Ample takeaway capacity to reach multiple Mid-Valley markets and 240 kb/d Colorado hubs to drive City improved price Midland Wink realizations Crane…

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