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Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp

Occidental Petroleum Corp · Jan 8, 2019 · 44 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. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 1
    Investor Presentation Occidental Petroleum Corporation January 2019
  2. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 2
    Occidental Petroleum Highlights and Cash Flow Priorities Financial Summary and Guidance Permian Update International Update Closing Remarks 3
  3. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 3
    Value Based Cash Flow Growth Production increase: 14% YoY ROCE: 13% Cash Opex + DDA (/Boe): -4% YoY CROCE: 26% Dividends 2.4 B Repurchases 0.9 B Total 3.3 B Net Debt to Cap: 23% Credit Rating: A/A3/A Stable 1Trailing 12…
  4. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 4
    Third Quarter 2018 Highlights 2.6 B cash flow from operations before working capital exceeded capital expenditures and dividends by 700 MM Highest quarterly EPS since 2014 Portfolio Optimization 1.5 B returned to shareholders…
  5. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 5
    Integrated Portfolio with High Value Investment Options Oil & Gas Chemical Midstream & Marketing Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing…
  6. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 6
    Cash Flow Priorities & 2019 Capital Scenarios Cash Flow Breakeven at Low Oil Prices Estimated Cash Flows ()1 40 WTI maintain dividend and production 50 WTI maintain dividend and CFFO grow long-term production 5 - 8+% 60+ WTI 2 B+…
  7. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 7
    Premium Integrated Assets Drive Long Term 9.0 - 9.5 B Cash Flow Growth 8.5 B CFFO at 5 - 8+% production 67.50 WTI growth 5.0 - 5.3 B Capital Annual Cash Flow Returns driven 60 WTI capital allocation 7.6 B Share repurchases…
  8. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 8
    Oxy Consistently Returns Capital to Shareholders Increasing cash Sustaining the flow for dividend Consistent Dividend & Opportunistic Share Repurchases at Higher Commodity Prices Dividend growth 5,000 Dividend Sustainable at 40 WTI…
  9. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 9
    Occidental Petroleum Highlights and Cash Flow Priorities Financial Summary and Guidance Permian Update International Update Closing Remarks 10
  10. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 10
    3Q18 Results Reported diluted EPS 2.44 Core diluted EPS 1.77 Core diluted EPS 3Q18 CFFO before working capital & other 2.6 B 3Q18 3Q17 YoY 3Q18 capital expenditures 1.3 B 1.77 0.18 883% Dividend payments 0.6 B CFFO before…
  11. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 11
    2018 Guidance Oil & Gas Segment Exploration Expense FY 2018E Production 70 MM in 4Q18E Total production of 655 659 Mboed 135 MM in FY 2018E Permian Resources production of 211 213 Mboed DD&A FY 2018E International production of 286…
  12. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 12
    Occidental Petroleum Highlights and Cash Flow Priorities Financial Summary and Guidance Permian Update International Update Closing Remarks 13
  13. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 13
    2018 YTD Permian Highlights Permian Resources Total Year Production + 10 Mboed from Initial Guidance Increased the Value of Advanced Technologies and Enhanced Our Portfolio our Assets Operations Permian Resources Permian Resources…
  14. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 14
    Increasing Shareholder Value in Permian Resources Returns Focused Investment Approach Permian Resources Production Results in High Margin Growth (Mboed) 30% - 35% CAGR 26 of top 50 wells in the Basin Best Wells over the last year1…
  15. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 15
    Occidental Petroleum Highlights and Cash Flow Priorities Financial Summary and Guidance Permian Update International Update Closing Remarks 16
  16. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 16
    International Highlights On track to generate 1.4 B of free cash flow in 2018 Improved Drilling efficiencies - 17% faster and 30% cheaper since 2014 Exploration success leading to growth in short cycle inventory World class HES…
  17. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 17
    Opportunities for Growth - Oman New Blocks: 51 and 65 in Oman North and Block 72 in Central Oman Increases Oman acreage from 2.3 to 6 MM gross acres Doubles potential well inventory UAE to 10,000 locations Saudi Arabia Sultanate…
  18. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 18
    Oman Value Creation Increased from 5 productive horizons to 17 producing and appraisal horizons ARUMA NATIH A Oxy Subsurface Characterization NATIH A NATIH B UNC Leveraged 2,600 square miles of recently NATIH C NATIH C…
  19. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 19
    Occidental Petroleum Highlights and Cash Flow Priorities Financial Summary and Guidance Permian Update International Update Closing Remarks 20
  20. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 20
    Oxys Sustainable Value Proposition Integrated Business Model Returns Focused Growth Industry Leading Base Decline Rate in Permian Resources is Driving High- Oil and Gas and Sustainable Cash Return Growth with the Best Wells in the…
  21. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 21
    Appendix
  22. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 22
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Permian Updates Chemical Updates 23
  23. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 23
    Cash Flow Sensitivities in 4Q18 Oil & Gas Annualized cash flow changes 120 MM per 1.00 / bbl change in oil prices 90 MM per 1.00 / bbl change in Midland prices 30 MM per 1.00 / bbl change in Brent prices Annualized cash flow changes…
  24. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 24
    All Segments Outperforming Cash Flow Expectations Midstream & Marketing Chemical Oil & Gas Permian EOR Market and operational improvements: Market improvements: Market and operational improvements: Mid to Gulf Coast Differentials…
  25. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 25
    YTD 2018 Cash Flow and Cash Balance Reconciliation B 2.7 (2.7) 6.2 (3.6) (1.3) 3.0 1.7 Beginning Cash CFFO Before Asset Sales Dividends & Share Capital Expenditures Other Ending Cash Balance 1/1/18 Working Capital…
  26. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 26
    Short-cycle Investments Provide Flexibility and Less Risk Capital Flexibility Capability to reduce capital from 5.0 B 2018 growth plan to sustaining capital level in six months Commodity Risk Payback for 2018 Development Capital at…
  27. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 27
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Permian Updates Chemical Updates 28
  28. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 28
    Leadership in Carbon Reduction Oil and Gas Climate Initiative (OGCI) Oxy Direct Emissions Reduction Plan Advancing technology and projects for a lower carbon future and Target Communicated in 2019 American Petroleum Institute…
  29. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 29
    Occidental Joins Oil and Gas Climate Initiative (OGCI) Collaborating with Industry Leaders to Lower the Carbon Footprint of Energy and Industrials Occidental joined group in September 2018 13 members of OGCI represent 30% of the…
  30. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 30
    Occidental Low Carbon Ventures Leveraging our unique Systematic direct emission reductions from operations position and leadership in Adapt equipment to lower energy use per the CO2 market to provide a produced volume Low-carbon…
  31. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 31
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Permian Updates Chemical Updates 32
  32. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 32
    Core Development Areas Delivering High Results Greater Sand Dunes Cumulative Production (Mboed) Subsurface Characterization is Driving Basin Greater Sand Dunes Bone Spring 10,000 wells 400 2017: 8 Wells Leading Results 9,900 300…
  33. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 33
    Core Development Areas Delivering High Results Barilla Draw Cumulative Production (Mboed) Scalable Performance Improvements Barilla Draw Wolfcamp A 10,000 wells 300 2017: 3 Wells Increasing Asset Value 10,000 2018 Old Design: 200 7…
  34. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 34
    Improving Returns Through Opex Reduction Permian Scale and Operating Capability Permian Resources Opex/BOE Reduces Costs Development planning focused on value maximization (life-cycle cost) 12.93 12 11.17 Lower Cost Water…
  35. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 35
    Results in Greater Sand Dunes Area Multi-Bench Development Recent Well Results Target Formation Lateral Peak 24 Hr Peak 30 Oil Barilla GreaterDraw Type Log Sand Dunes Well Name Length (ft) (boed) Day (boed) (%) Brushy Canyon…
  36. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 36
    Results in Greater Barilla Draw Area Multi-Bench Development Recent Well Results Target Formation Well N ame Lateral Peak 24 Hr Peak 30 Oil Barilla GreaterDraw BarillaType DrawLog Length (ft) (boed) Day (boed) (% ) Avalon…
  37. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 37
    Integrated Subsurface Characterization Optimizes Development for Value Pre-Seismic Section Development Plan Optimized Section Development Plan Upper Flow Unit Upper Flow Unit 1H 2H 3H 4H 5H 6H 1H 3H 5H Carbonate Barrier Lower…
  38. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 38
    Permian Resources Delivers Basin Leading Wells Oxy has 26 of the top 50 Wells in the Permian Basin Leading Wells with Less Proppant 4,250 10,000 8,000 3,250 Proppant /ft IP 24 BOPD 6,000 Competitor Average Proppant…
  39. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 39
    Aventine Strategic Relationships that Secure Supply and Lower Costs Over 520,000 tons of frac sand 3Q 2016 delivered representing near Design concept approved complete coverage of NM frac operations 2Q 2017 Acquired land 2018…
  40. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 40
    Permian Resources High Value Inventory Permian Resources Inventory 2Q18 12,000 Increased average length of total 11,207 10,8351 inventory from 7,600 ft to 10,574 7,800 ft Undeveloped Drilling Locations 10,000 Midland Basin…
  41. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 41
    Permian Resources Net Business Area Acreage Acres1 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…
  42. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 42
    Permian EOR Proven Leader in Maximizing Recovery Across the Permian Significant opportunity Permian EOR Net Resource Potential to grow inventory 2,000 Subsurface characterization Operating efficiency High-gradable Inventory…
  43. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 43
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Permian Updates Chemical Updates 44
  44. Goldman Sachs Global Energy Conference 2019 – Occidental Petroleum Corp – slide 44
    Chemical: Market Leading Position Chemical Segment at a Glance Earnings Highlights Major global exporter of all core products Positive cash flow generation throughout cycle Top tier global producer in every product produced…

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