Skip to main content Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp Investor Presentation | Shale Experts
Loading...
Pm

Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp

Occidental Petroleum Corp · Mar 28, 2017 · 32 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 45th Annual Energy Conference – Occidental Petroleum Corp – slide 1
    Scotia Howard Weil 45th Annual Energy Conference Occidental Petroleum Corporation March 28, 2017 Vicki A. Hollub Chief Executive Officer
  2. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 2
    Occidental Petroleum Value Proposition Portfolio Optimization Path To Value Growth Differentiators 3
  3. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 3
    Value Proposition Overriding Goal is to Maximize Total Shareholder Return We believe this can be achieved through a combination of: Consistent, annual dividend growth Value growth through oil and gas development that meets the…
  4. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 4
    Cash Flow 1. Base/Maintenance Capital Priorities Favor Dividends 2. Dividends 3. Growth Capital Subject to Returns and 4. Acquisitions Market Conditions 5. Share Repurchases 5
  5. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 5
    Dividend Growth Far Above the S&P500s OXY Annual Dividend Paid (/Share) WTI /Bbl 14% CAGR vs 7% 2002 - Today 160 4.00 18% CAGR vs 6% 2004 - 2014 17% CAGR vs 9% 140 3.50 2009 - 2014 120 3.00 2% 3% 13% 2.50 100 19% 2.00 17%…
  6. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 6
    Occidental Petroleum Value Proposition Portfolio Optimization Path To Value Growth Differentiators 7
  7. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 7
    Portfolio 2013 Production 2013 Capital Optimization 5,000 500 468 400 4,000 3,719 Millions Divested assets with: Mboed 300 3,000 200 2,000 Low free cash flow 141 1,363 100 1,000 Limited future value 0 0 (2013 SMOG…
  8. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 8
    Portfolio Liquids Production (%) Operating Expense Optimization 100% 20 Improving cash 80% 77% 15 13.76 73% 11.06 /boe margin and income 10 60% 5 Higher liquid production 40% 0 Lower operating 2013 2016* 2013 2016* expense…
  9. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 9
    2016 Highlights Low-cost production growth exceeds target 7% 189% 9.65 Capital program under Production Growth Total Company Total Company All- 3 billion target Reserve Replacement Sources F&D FY 2016 Ratio Strong balance sheet and…
  10. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 10
    Portfolio 2016 ROCE* Optimization 10% Focus on value driven growth - Top OXY quartile returns 0% (10%) (20%) (30%) HES DVN CXO APC MRO APA EOG COP PXD OXY CVX XOM *Calculated based on public information and on a…
  11. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 11
    Portfolio Optimization Production (Mboed) Exited the low margin domestic & high risk international assets 763 (154) (1.4 Billion of capital in 2013 excluding California) 609 (62) 28 (17) 602 Invested in high margin 64 Permian Resources…
  12. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 12
    Production Growth 5 8% growth driven by 2016 2019 Production (Mboed) Permian Resources 5-8% Expect Permian Resources CAGR to be free cash flow generating in 2018 International growth from modest investment in high return projects…
  13. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 13
    Occidental Petroleum Permian Resources growth Value Proposition supported by low decline, cash Portfolio Optimization flow generating assets Path To Value Growth Differentiators 14
  14. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 14
    Permian Resources Net Business Area Acreage Acres* Resources Unconventional Areas 1.4 Significant acreage Enhanced Oil Recovery Areas 1.1 & growth potential Oxy Permian Total 2.5MM in all development areas Resources Basin Development…
  15. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 15
    Improved Horizontal Inventory from 4Q2015 Increased Total Horizontal Drilling Locations 37% Locations within 300,000 of 650,000 net acres in Basin Development Areas Added 1,250 locations BE < 50 12,000 11,650 11,650 Midland Added…
  16. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 16
    Permian Resources 2017 Focused Development Contiguous New Mexico NW Shelf Acreage Greater Sand Dunes 2,000+ Midland Basin Multi-bench NM Delaware Basin Capable Infrastructure TX Delaware Basin Central Basin Platform Valuable…
  17. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 17
    Problems Solved in the Permian Resources Development Costs Per BOE Permian Adding It All Up Subsurface Characterization Stimulation Design Development Planning Cost structure dramatically Infrastructure Customized Technology driven…
  18. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 18
    Growth Potential of 30+% from Focused Development Areas Multi-Year Permian Resources Growth Potential 300 18 Top-tier well performance Production (mboed) 15 250 14 16 14 Deep inventory for range of 30% CAGR activity Rig…
  19. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 19
    Permian EOR Proven Leader in Maximizing Recovery Across the Permian Significant inventory Permian EOR Net Resource Potential in 10-year plan MMBOE MMBOE 2,000 Geographically diverse High- gradable 1,500 Inventory 100 active CO2 +…
  20. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 20
    Focused Oil and Gas Core Areas Businesses OxyChem High FCF, United States moderate growth Leading position in the Permian business Permian Resources is a growth driver Midstream Integrated infrastructure Middle East Region and marketing…
  21. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 21
    Occidental High quality portfolio with assets that are Petroleum designed to support a strong dividend with moderate value growth Value Proposition Portfolio Optimization Permian Position (EOR and shale) Low decline, low capital…
  22. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 22
    Updated 1Q17 Oil & Gas Production / Sales and Earnings Guidance We currently estimate that our 1Q17 oil and gas production and sales volumes outside of the U.S. will be roughly 10 mboe/d below our earlier expectations. Total company…
  23. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 23
    1Q17 and FY 2017 Guidance Summary Oil & Gas Segment DD&A FY 2017E Oil & Gas: 15.00 / BOE FY 2017E Total Production Chemicals and Midstream: 685 mm 625,000 645,000 BOED Permian Resources production of 140,000 150,000 BOED Midstream…
  24. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 24
    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 International O&G 400 MM Midstream 150 - 200 MM Chemicals…
  25. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 25
    Cash Flow Improvements Expected in 2017 Improved product prices Annualized cash flow changes 100 million for a 1.00 / barrel change in oil prices Annualized cash flow changes 45 million for a 0.50 / Mmbtu change in natural gas…
  26. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 26
    Permian Resources Results and Guidance Total production grew 13% year-over-year to 124 MBOED Oil NGL Gas Increased activity in 4Q 2016 140 - 150 16 wells online in 4Q16 vs. 9 in 3Q16 124 127- 132 Added 7 top tier performing wells in…
  27. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 27
    SL2 Solving Permian Problems Now Single Location Sequenced Laterals - SL2 Single vertical well bore producing from multiple zones Reduce section development cost Initial studies and development began mid-2015 with pilot currently…
  28. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 28
    Middle East Record 2016 Production Achieved record production in 2016 in Oman and the UAE Core Countries 2017 Impact Oman: FY16 record production of 96 Improved production and cost reductions at Al MBOED through multiple onshore…
  29. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 29
    Midstream: Improving Cash Flows and Market Access 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 economics…
  30. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 30
    Chemicals Free Cash Flow to Significantly Increase Ingleside Ethylene Cracker September 2016 Ingleside Ethylene Cracker commercial operation in Q1 2017 All systems turned over for commissioning 50/50 JV with Mexichem in Corpus…
  31. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 31
    Basic Chemical Market Dynamics Are Shifting Spot Domestic Caustic Soda Price* North American Chlor-Alkali Capacity Share * Low end of price range as reported by IHS 450 400 Rest of 350 Industry Olin 23% 35% 300 250 Westlake 18% 200…
  32. Scotia Howard Weil 45th Annual Energy Conference – Occidental Petroleum Corp – slide 32
    Growing the Greater Barilla Draw Area Q4 Acquisition Highlights Increased working interest from 26% to 63% Increased acreage position to 100,000 net acres & 5,000+ horizontal locations Capability to deploy 3 rigs in 2017 and 5+…

From the store

Browse maps, data & reports in the Shale Experts store