Skip to main content 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp Investor Presentation | Shale Experts
Loading...
Pm

4Q 2017 Earnings Conference Call – Occidental Petroleum Corp

Occidental Petroleum Corp · Feb 14, 2018 · 63 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. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 1
    Fourth Quarter 2017 Earnings Conference Call Occidental Petroleum Corporation February 14, 2018
  2. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 2
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 3
  3. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 3
    Improved our Cash Flow in 2017 to Accelerate Breakeven Plan Increased the Value of Advanced Technologies Enhanced Our Portfolio our Assets and Operations Asset Optimization Well Productivity Improvement CO2-EOR Advancement Sold South…
  4. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 4
    Improved our Cash Flow in 2017 to Accelerate Breakeven Plan Increased the Value of Advanced Technologies Enhanced Our Portfolio our Assets and Operations 6.0 Bn 17.96 5.8 Bn Permian Resources 17.22 F&D Costs per BOE (All-in)2…
  5. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 5
    Disciplined Cash Flow Priorities Following Breakeven Plan Achievement Estimated Cash Flows ( Bn)1 8.0 60+ WTI: Opportunistic Long-term Sustainability of our Value Proposition Growth and Share Buybacks 7.0 CFFO 50+ WTI:…
  6. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 6
    2018 Capital Will Deliver Breakeven Plan & 8% to 12% Production Growth 2018 Capital Program by Asset 2018 Capital Program by Type ( Bn) Exploration 3% 0.3 0.3 0.1 Chemicals Total Growth Company Sustaining1 0.8 Midstream 39%…
  7. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 7
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 8
  8. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 8
    Pathway to Cash Flow Breakeven at Low Oil Prices Cash Flow Breakeven at 50: 6.0 Dividend + 5% 8% Production Growth 5.7 5.7 Growth 5.0 Cash Flow Neutral at 40: Capital Operating Cash Flow ( Bn) 1.0 Dividend with Flat Production…
  9. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 9
    Achieving Goals to Cash Flow Breakeven Annualized Cash Flow From Operations Improvements ( Bn) at 50 WTI Achieved since 1Q17 Breakeven Plan 4CPe Plant operations started in December 2017, on-time and 1.0 on-budget. Manufacturing ramp-…
  10. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 10
    Current Cash Balance Will Fund Plan to Breakeven Estimated Cash Flows Through End of 2018 at 50 WTI1 assuming 50 WTI in 2018 6.0 Cash flow outspend through the completion 5.0 of our plan is covered by our cash balance but total liquidity…
  11. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 11
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 12
  12. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 12
    4Q17 Results Total reported production (Boed) 621,000 4Q17 Actual versus Boed Total Permian Resources production (Boed) 159,000 Guidance Reconciliation PSC Impact 5,000 Reported diluted EPS 0.65 Permian Third-Party 4,000 Core…
  13. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 13
    2017 Cash Flow and Cash Balance Reconciliation ( in Bn) 4.7 (0.3) (2.3) (3.6) 2.2 1.4 (1.1) 0.8 1.7 Beginning Cash CFFO Before Change in Dividends Capital Asset Sales Acquisitions/ Tax Refund Ending Cash Balance 1/1/17…
  14. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 14
    2018 Guidance Oil & Gas Segment Exploration Expense FY 2018E Production 20 MM in 1Q18E Total production of 640,000 665,000 boed 150 MM in 2018E Permian Resources production of 195,000 209,000 boed DD&A FY 2018E International…
  15. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 15
    Cash Flow Sensitivities in 2018 Oil & Gas Annualized cash flow changes 110 million per 1.00 / barrel change in oil prices 80 million per 1.00 / barrel change in WTI prices 30 million per 1.00 / barrel change in Brent prices…
  16. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 16
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 17
  17. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 17
    Improved our Cash Flow in 2017 to Accelerate Breakeven Plan Increased the Value of Advanced Technologies Enhanced Our Portfolio our Assets and Operations Permian Resources Permian Resources Permian Resources Sold 600 MM of assets beyond…
  18. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 18
    Added 750 Horizontal Locations in 2017…
  19. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 19
    Excellent Results Sustainable Step Change in Well Results De-risks Breakeven Plan in Greater Sand 2H17 Wells2 Peak 30D Production Rates1 2nd Bone Spring Performance2 Dunes Oil (Bod) NGL (Boed) Gas (Boed) 350 300 2H17 - 12 Wells 4,000…
  20. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 20
    Breakeven Plan Milestone Permian Resources Value-based Production Growth Achieved in 3Q18 Permian Resources Production (Mboed) Dec-2017 Exit at 172 Mboed 45% Production Growth 220 - 244 4Q17 Production Impacts 206 - 220 3 Mboed: 3rd…
  21. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 21
    Permian Resources 2018 Focused Development Appraise 6 new benches Permian Resources 2018 Program Additional Unconventional CO2-EOR pilots 2018 Capital by Type Turkey Track 0.5 rigs Logistics hub in New Mexico D&C 70% Facilities…
  22. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 22
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 23
  23. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 23
    2017 International Highlights and 2018 Plan 2017 production of 298 Mboed generated over 1 Bn of free cash flow at 55 Brent Pipeline of potential short and long-cycle projects Best international HES performance in Oxy history Oman…
  24. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 24
    Al Hosn Gas Project Execution and Operational Excellence World-class, state-of-the-art sour-gas project delivered on-time and on-budget Production and throughput continues to improve with operational excellence Modifications will occur…
  25. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 25
    Complex, Recent Major Projects Delivered On-time and On-budget Major Project Capability Domestic Projects Industry-leading execution Ingleside, TX Ethylene Cracker Ingleside, TX Oil Terminal performance Geismar, LA 4CPe Plant Compared…
  26. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 26
    Occidental Petroleum 2017 Highlights and Beyond Pathway to Breakeven Progress Financial Summary and Guidance Permian Resources Update International Update Closing Remarks 27
  27. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 27
    Short and Long-term Executive Compensation Changes Expanded use of returns-based metrics for incentive compensation Short-term Incentives Long-term Incentives 15% of CEO annual bonus1 is 25% of CEO long-term incentive determined by…
  28. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 28
    Appendix
  29. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 29
    Shareholder 9% Average Shareholder Average Shareholder Distributions Over Distribution Yield (%)1 66% Payout Ratio (%)1 the Last Three Years 56% 56% 6% (2016 2014) 5% 5% 5% 5% 44% 4% 30% 27% Strong history and 22% commitment to…
  30. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 30
    Strong Balance Sheet - Oxy Credit Ratings Vs. Peers Company S&P S&P Moodys Moodys Ratings Outlook Ratings Outlook XOM AA+ Negative Aaa Stable CVX AA- Negative Aa2 Stable OXY A Stable A3 Stable EOG BBB+ Stable Baa1 Stable COP A-…
  31. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 31
    Appendix Contents Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals and Midstream Updates 32
  32. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 32
    Occidentals Stockholder Proposal First Climate Produce a report assessing portfolio impacts of plausible scenarios that address climate change, including the International Energy Agencys 450 Report will be Scenario Released in Report…
  33. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 33
    Oxy Safety Culture and Strong Performance Committed to the highest standards of Global Employee Injury and Illness Incidence Rate ethical conduct Incidents and Cases per 100 Workers Enabling a culture of safety excellence and…
  34. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 34
    Water Infrastructure Drives Value & Delaware Basin Frac Water Usage Environmental Benefits 2017 Actuals 2018 Plan 11% 10% 32% Fresh Water Increasing Recycled Water Usage Brackish Water from 30% to 50% in 2018 Recycled Water 50%…
  35. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 35
    C02 EOR Process Makeup CO2 Gas Plant Makeup CO2 Gas & NGL Supplied from Supplied from Pipeline Sales Anthropogenic Sources CO2 Recycled from Gas Plant Produced Gas Producer wellbore CO2 Production Emissions Reducing…
  36. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 36
    How does CO2 Oil (Red) EOR Work Physics of Miscible CO2 EOR at Pore Scale Water Injection Water injection (blue) recovers oil in large pores; leaving trapped oil (red) in small pores CO2 (yellow) dissolves and displaces trapped…
  37. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 37
    Appendix Contents Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals and Midstream Updates 38
  38. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 38
    2017 Reserve Additions Through Program Execution 200 MMBOE Reserve Additions prior to price revisions Total Company 357 55 2,598 Reserve 2,406 (220) Replacement 74% Proved 2017 Developed 187% 75% All In Liquids 162% Organic…
  39. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 39
    Successful Drilling and A&D Programs Leading to Lower F&D Costs F&D Costs (All Sources)* 17.96 17.22 Program Execution Highlights 8.53 Positive total-company performance revisions Improved productivity and lower well costs in…
  40. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 40
    2017 Total Company Reserve Replacement MMBOE 2016 YE Proved Reserves 2,406 Production (220) Revisions of Previous Estimates 151 Improved Recovery 201 Extensions & Discoveries 5 Total Organic 356 Purchases & Sales 55 2017 YE…
  41. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 41
    2017 U.S. Reserve Replacement MMBOE 2016 YE Proved Reserves 1,353 Production (111) Revisions of Previous Estimates 109 Improved Recovery 149 Extensions & Discoveries 0 Total Organic 258 Purchase & Sales 55 2017 YE Proved Reserves…
  42. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 42
    Appendix Contents Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals and Midstream Updates 43
  43. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 43
    Creating Value at the Seminole San Andres Unit Increased Production 3,600 Boed or 16% Reduced Redrill Capital Costs by 36% Greater than 5/boe Opex Reduction Increased plant inlet volume 32% Savings utilizing Permian scale Optimized…
  44. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 44
    New Mexico Modular Turkey Track - New Modular Development Area Development Area Southeast New Mexico Innovative Development Provides Scale Leveraging Permian Scale to Realize Advantages to Regional Areas Value in Smaller Development…
  45. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 45
    Greater Barilla Draw 2017 Barilla Draw proper Wolfcamp A Optimized Landing Point Results Operating Excellence & Strong Results 250 Strong results across multiple fields 200 Average of 2017 Average of 2017 Cum MBOE 10,000 ft wells…
  46. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 46
    Midland Basin - Merchant Multi-bench program and operating efficiency create play-leading opex Merchant Opex / BOE Successful Development Planning Operating…
  47. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 47
    Outstanding Results in Greater Sand Dunes Area Multi-Bench Development Recent Well Results Target Formation Lateral Peak 24 Hr Peak 30 Day Well Name Oil (%) Greater Sand Dunes Length (ft) (boed) (boed) Brushy Canyon Federal 23 13H…
  48. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 48
    Improving Results in Greater Barilla Draw Area Multi-Bench Development Recent Well Results Target Formation Peak 24 Hr Peak 30 Day Oil Well Name Lateral Length (ft) Greater Barilla Draw (boed) (boed) (%) Avalon Evaluating 1st BS…
  49. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 49
    Permian Resources Wells Continue to Improve New Mexico Bone Spring Texas Delaware Wolfcamp 250 160 140 200 Cumulative Production Cumulative Production 120 6 Month BOE 150 100 6 Month BOE 80 100 60 50 40 20 0…
  50. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 50
    Optimized Record Well Results Provide Near-term Visibility to Development Achieving 80 Mboed Production Increase Milestone Plans Permian Resources Horizontal Wells Online Operational resources Actual Outlook secured and on-board New…
  51. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 51
    Project Aventine Strategic Partnerships Reduce Costs in Value Chain Project Aventine 240 acres in Eddy County, NM within 20 miles of Greater Sand Dunes and other future development areas 30,000 tons of sand storage + transload…
  52. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 52
    New Mexico Well Cost Breakeven Plan Sustainability Enhanced by Improvements Operating Efficiency and Logistics Savings Well design: fluid optimization New Mexico 2nd Bone Spring 10,000 Well Cost and produced water recycling 12…
  53. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 53
    Operating Capability Reduces Costs Permian Resources Opex/BOE 12.93 12.00 11.17 Water-handling reducing surface costs Lift optimization reducing 8.43 8.00 downhole failure costs 8.00 7.63 4.00 - 2014 2015 2016 2017…
  54. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 54
    Added 30 Rig Years of Activity…
  55. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 55
    Permian EOR Proven Leader in Maximizing Recovery Across the Permian Seminole San Andres Unit Permian EOR adds low F&D inventory Net Resource Potential 100 MMboe at < 6.00 2,000 future development cost High-gradable Inventory…
  56. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 56
    Permian Resources Net Business Area Acreage Acres* Resources Unconventional Areas 1.4 Enhanced Oil Recovery Areas 1.1 Significant growth potential Oxy Permian Total 2.5MM in all development areas 650,000 net acres within Net…
  57. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 57
    Appendix Contents Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals and Midstream Updates 58
  58. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 58
    Chemicals Cash Annualized Chemicals Cash Flow From Operations ( MM) Flow Improvement Achieved 1,600 Drivers 1,475 50 1,400 150 JV Ethylene Cracker startup complete 1,200 1,125 150 4CPe Plant startup in 1,000 4Q17 with ramp through…
  59. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 59
    Chemicals Free Cash to Significantly Increase with Lower Capital Spending 4CPe Plant complete on-time and on-budget Chemicals Capital Spend Plant started up in 4Q17 700 4CPe Plant manufactures the feedstock for a climate- 600…
  60. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 60
    Market Overview Chemicals Pre-Tax Earnings (EBIT)1 300 Update 250 200 Millions Major industry 150 consolidation 100 complete 50 0 Caustic soda supply- 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14…
  61. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 61
    Midstream Cash Annualized Midstream Cash Flow From Operations ( MM) Flow Improvement 500 Achieved Drivers 450 450 50 Al Hosn plant continued 400 50 optimization: 1Q 2018 350 300 Oil terminal capacity upgrade: 2H18 2019 250 200 200…
  62. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 62
    Near-term Outlook Midland to Magellan East Houston Spread (/bbl) for Midland to Gulf 7.00 Coast Spreads Actual Outlook 6.00 Accelerating global economic growth drives New strong demand 5.00 Harvey Impact on Pipeline Spread Capacity…
  63. 4Q 2017 Earnings Conference Call – Occidental Petroleum Corp – slide 63
    Leadership in Gulf Coast Crude Exports Increasing Ingleside export capacity to 750,000 bopd Suezmax Expanding Ingleside Terminal VLCC loading capability 4Q18 2H18 - 2019 Capacity increase 2H19 Leading Permian Crude Marketer…

From the store

Browse maps, data & reports in the Shale Experts store