Skip to main content 1Q 2018 Earnings Presentation – Occidental Petroleum Corp | Shale Experts
Loading...
Database
Slide Database

1Q 2018 Earnings Presentation – Occidental Petroleum Corp

Occidental Petroleum Corp · May 10, 2018 · 66 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. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 1
    First Quarter 2018 Earnings Conference Call Occidental Petroleum Corporation May 9, 2018
  2. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 2
    Occidental Petroleum 1Q18 Highlights Breakeven Plan Progress Financial Summary and Guidance Permian Resources Update Closing Remarks 3
  3. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 3
    First Quarter 2018 Key Takeaways Breakeven Plan Strong FCF Raised 2018 Guidance Ahead of schedule International + 2 Mboed Total Production Added 18 Mboed in Permian EOR + 100 MM EBIT Chemicals Permian Resources Chemicals + 750 MM EBIT…
  4. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 4
    First Quarter 2018 Highlights Enhanced Our Portfolio Increased the Value of Advanced Technologies our Assets and Operations Asset Optimization Well Productivity Improvement Capital Efficiency Sold non-strategic interest Sustained…
  5. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 5
    Oxys Unique Value Proposition Returns Focused Growth Consistent Dividend Growth ROCE Leadership Growing dividend with an attractive yield Value protection in down cycle Promotes capital allocation discipline Growth within Cash…
  6. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 6
    Shaping Oxys Competitive Advantage Permian Execution Excellence Subsurface Technical Basin-leading Enhanced Recovery Excellence Wells Operational New Mexico D&C Efficiency & Speed Outperformance Product Transport Logistics &…
  7. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 7
    Exceeding Cash Flow Expectations Midstream Chemicals Permian EOR Market and operational improvements: Market improvements: Market and operational improvements: Mid to Gulf Coast Differentials Improved Caustic Soda pricing Production…
  8. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 8
    Occidental Petroleum 1Q18 Highlights Breakeven Plan Progress Financial Summary and Guidance Permian Resources Update Closing Remarks 9
  9. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 9
    Cash Flow Breakeven at Low Oil Prices Achieved in 3Q18 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) Dividend with Flat…
  10. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 10
    Achieving Goals to Cash Flow Annualized Cash Flow From Operations Improvements ( Bn) Breakeven at 50 Achieved since 1Q17 Breakeven Plan Seasonality/Downtime 4CPe Plant contributed to cash SSAU Synergies and 32 Mboed flow during 1Q18 and…
  11. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 11
    Occidental Petroleum 1Q18 Highlights Breakeven Plan Progress Financial Summary and Guidance Permian Resources Update Closing Remarks 12
  12. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 12
    1Q18 Results Total reported production (Boed) 609,000 1Q18 Actual versus Guidance Boed Midpoint Reconciliation Total Permian Resources production (Boed) 177,000 Permian Resources execution +6,000 and well productivity Reported…
  13. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 13
    YTD 2018 Cash Flow and Cash Balance Reconciliation ( in Bn) 1.7 (0.7) (0.6) (1.0) 1.7 0.5 1.6 0.1 Beginning Cash CFFO Before Change in Dividends Capital A&D/Other Debt/Other Ending Cash Balance 1/1/18 Working Capital…
  14. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 14
    2018 Guidance Oil & Gas Segment Exploration Expense FY 2018E Production 25 MM in 2Q18E Total production of 645 665 Mboed 150 MM in FY 2018E Permian Resources production of 198 210 Mboed DD&A FY 2018E International production of 289…
  15. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 15
    Cash Flow Sensitivities in 2Q18 Oil & Gas Annualized cash flow changes 110 million per 1.00 / bbl change in oil prices 80 million per 1.00 / bbl change in WTI prices 30 million per 1.00 / bbl change in Brent prices Annualized cash…
  16. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 16
    Occidental Petroleum 1Q18 Highlights Breakeven Plan Progress Financial Summary and Guidance Permian Resources Update Closing Remarks 17
  17. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 17
    Subsurface Technical Excellence Basin-leading Wells Sustainable Step Change in Well Results from 2H17 into 1Q18 Productivity 2H17 & 1Q18 Wells Peak 30D Production Rates1 1Q18 & 2H17 Peak 30D 3,100 Boed1 Wolfcamp XY 5 Wells 7,100'…
  18. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 18
    Breakeven Plan Milestone Achieved Increased Total Year Production Guidance 2 MBoed in 3Q18 Permian Resources Production (MBoed) Q1 production exceeded guidance 47% Production Growth 220 - 246 New Mexico 208 - 220 Greater Sand Dunes…
  19. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 19
    Aventine Strategic Relationships that Secure Supply and Lower Costs 3Q 2016 14 unit trains of frac sand delivered Design concept approved 2018 Operating Highlights 1,400 tons of pipe delivered Sandstorm logistics system 2Q 2017…
  20. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 20
    Logistics & Strategic Relationships Aventine Logistics Hub Secure Supply 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 capacity 2 unit…
  21. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 21
    Operational Efficiency & Speed D&C Outperformance New Mexico Feet Drilled per Day Operational Highlights 23% Increase Drilled Lower Spraberry 10,000 ft lateral well in 922 Midland Basin in under 10 days* 839 Drilled 2nd Bone Spring…
  22. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 22
    Production Transport & Realizations Ample Takeaway Committed Oil & Gas Takeaway Ensures Products are Realized in Multiple Markets Multi-year firm oil commitments New Mexico on four, third-party pipelines Total capacity 470 Mbod to…
  23. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 23
    Occidental Petroleum 1Q18 Highlights Breakeven Plan Progress Financial Summary and Guidance Permian Resources Update Closing Remarks 24
  24. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 24
    Appendix
  25. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 25
    Appendix Contents Peer Metrics Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals, Midstream and International Updates 26
  26. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 26
    Shareholder Average Shareholder Average Shareholder Distributions Over 4.3% Distribution Yield (%)1 Payout Ratio (%)1 64% 3.8% the Last Three Years 3.6% 3.4% 52% (2015 2017) 49% 48% 38% 2.1% 2.1% 2.0% 34% Strong history and…
  27. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 27
    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-…
  28. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 28
    Short and Long-term Executive Compensation Changes Expanded use of returns-based metrics for incentive compensation Short-term Incentives Long-term Incentives 25% of CEO long-term incentive 15% of CEO annual bonus1 is compensation…
  29. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 29
    Appendix Contents Peer Metrics Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals, Midstream and International Updates 30
  30. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 30
    Occidental Stated Goals Climate Report In addition to our ongoing efforts to conserve resources and reduce issued in emissions, we have made new commitments to: March 2018 Regularly evaluate our strategy with Board oversight under…
  31. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 31
    Oxy Safety Culture and Strong Performance Committed to the highest standards of conduct Global Employee Injury and Illness Incidence Rate Incidents and Cases per 100 Workers Fostering a culture of safety excellence and continuous…
  32. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 32
    Water Infrastructure Drives Value & Delaware Basin Frac Water Usage Environmental Benefits 2017 Actuals 2018 Plan 11% 10% Increasing Recycled Water Usage 32% Fresh Water Brackish Water from 30% to 50% in 2018 Recycled Water 50%…
  33. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 33
    CO2 EOR Process 34 34
  34. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 34
    How does CO2 EOR Work Physics of Miscible CO2 EOR at Pore Scale Water injection (blue) recovers oil in large pores; leaving trapped oil (red) in small pores CO2 (yellow) dissolves and displaces trapped oil; leaving only heavy ends…
  35. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 35
    Appendix Contents Peer Metrics Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals, Midstream and International Updates 36
  36. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 36
    2017 Reserve Additions Through Program Execution 200 MMBoe Reserve Additions prior to price revisions Total Company Reserve 357 55 2,598 Replacement 2,406 (220) 2017 74% Proved Developed 187% 75% Liquids All In 162% Organic…
  37. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 37
    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 5 Year 3…
  38. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 38
    Appendix Contents Peer Metrics Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals, Midstream and International Updates 39
  39. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 39
    Permian Resources 2018 Focused Development Appraise 6 new benches Permian Resources 2018 Program Additional Unconventional CO2-EOR pilots 2018 Capital by Type Logistics hub in New Mexico D&C Turkey Track 0.5 rigs 70% online…
  40. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 40
    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…
  41. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 41
    Turkey Track - New Modular Development Area New Mexico Modular Development Area Southeast New Mexico Innovative Development Provides Scale Advantages to Regional Areas Leveraging Permian Scale to Realize Multi-bench potential Value in…
  42. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 42
    Greater Barilla Draw 2017 Barilla Draw proper Wolfcamp A & Hoban Optimized Landing Point Results Operating Excellence 350 2017 Average 300 8 wells 6,700 Excellent results across multiple fields 250 Cum MBoe 2018 Average Barilla…
  43. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 43
    Multi-bench program and operating efficiency create play-leading opex Midland Basin - Merchant Merchant Opex / Boe Successful Development Planning from Inception Leads to Greenfield Operating…
  44. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 44
    Permian EOR Growing Production at the West Seminole San Andres Unit Oxy Operated Grass Roots CO2 8,000 Flood and Current Development Area Phased Development Approach 6,000 Daily Production, Bopd Oxys CO2 EOR Capability Can Grow…
  45. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 45
    Enhanced From Appraisal to Permian Leading Well Performance Subsurface Characterization Regional Basin Overview - Geologic Understanding Flow Unit Characterize 3D flow Geochemistry of Source Rocks through Rock Samples Appraisal…
  46. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 46
    Multiple 3D Flow Unit Development Optimized Sequenced Development (OSD) Accelerates Production Efficiently Maximize margin, EUR and capital efficiencies Development Sequence Cross section view Optimized Sequence vs Simultaneous…
  47. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 47
    Results in Greater Sand Dunes Area Multi-Bench Development Recent Well Results Target Formation Greater Sand Dunes Lateral Peak 24 Hr Peak 30 Day Oil Barilla GreaterDraw Type Log Sand Dunes Well Name Length (ft) (Boed) (Boed) (%)…
  48. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 48
    Results in Greater Barilla Draw Area Multi-Bench Development Recent Well Results Target Formation Peak 24 Hr Peak 30 Day Oil Greater Barilla Draw Well Name Lateral Length (ft) (Boed) (Boed) (%) Avalon Evaluating st 1 BS Evaluating…
  49. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 49
    Permian Resources Delivers Basin Leading Wells for Less Cost Oxy has 21 of top 50 Permian Wells in Prior 12 Months Basin Leading Wells with Less Proppant 6,000 4,000 Competitor Average 5,000 3,000 Proppant /ft Proppant /ft…
  50. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 50
    Permian Resources Wells Continue to Improve New Mexico Bone Spring Texas Delaware Wolfcamp 250 160 140 Cumulative Production 200 Cumulative Production 120 6 Month Boe 100 6 Month Boe 150 80 100 60 40 50…
  51. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 51
    New Mexico Well Breakeven Plan Sustainability Enhanced by Cost Improvements Operating Efficiency and Logistics Savings Logistics: Project Aventine New Mexico 2nd Bone Spring 10,000 Well Cost Well design: Fluid 0.6 (0.8) 9.9 (0.8)…
  52. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 52
    Operating Permian Resources Opex/Boe Capability Reduces Costs 38% Improvement 12.93 Full-field development 12.00 11.17 for life-cycle value Water-handling 8.43 reducing surface costs 8.00…
  53. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 53
    Added 750 Horizontal Locations in 2017…
  54. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 54
    Added 30 Rig Years of Activity…
  55. 1Q 2018 Earnings Presentation – 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 1,000 MMBoe at 2,000 < 6.00 future development cost High-gradable Inventory…
  56. 1Q 2018 Earnings Presentation – 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 in Oxy Permian Total 2.5MM all development areas 650,000 net acres within Net…
  57. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 57
    Appendix Contents Peer Metrics Social Responsibility, Environment, and Governance 2017 Reserves Permian Updates Chemicals, Midstream and International Updates 58
  58. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 58
    Chemicals Cash Annualized Chemicals Cash Flow From Operations ( MM) Flow Improvement 1,800 Achieved Drivers 1,600 1,600 JV Ethylene Cracker 1,475 50 startup complete 1,400 150 4CPe Plant startup in 1,200 1,125 150 4Q17 with ramp-up…
  59. 1Q 2018 Earnings Presentation – 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 700 600 4CPe Plant manufactures the feedstock for a climate- 500…
  60. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 60
    Market Overview Chemicals Pre-Tax Earnings (EBIT)1 350 Update 300 250 Millions Major industry 200 consolidation 150 complete 100 50 Caustic soda supply- 0 2Q18E 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14…
  61. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 61
    Midstream Cash Annualized Midstream Cash Flow From Operations ( MM) Flow Improvement Achieved Drivers 900 800 800 Al Hosn plant debottlenecking: 1Q18 700 Market and operational improvements: with ramp-up through Mid to Gulf Coast…
  62. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 62
    Outlook for Midland to Magellan East Houston Spread (/Bbl) Midland to Gulf Actual Outlook Coast Spreads 12.00 Truck Transportation Cost to Gulf Coast Possible pipeline capacity constraints (late 2018/ 10.00 early 2019 pending new…
  63. 1Q 2018 Earnings Presentation – 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…
  64. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 64
    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…
  65. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 65
    Complex, Major Recent Major Projects Delivered On-time and On-budget Project Capability Domestic Projects Industry-leading execution Ingleside, TX Ethylene Cracker Ingleside, TX Oil Terminal performance Geismar, LA 4CPe Plant Compared…
  66. 1Q 2018 Earnings Presentation – Occidental Petroleum Corp – slide 66
    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…

From the store

Browse maps, data & reports in the Shale Experts store