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4Q 2018 Earnings Conference Call – Occidental Petroleum Corp

Occidental Petroleum Corp · Feb 13, 2019 · 41 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 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 1
    Fourth Quarter 2018 Earnings Conference Call Occidental Petroleum Corporation February 13, 2019
  2. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 2
    Occidental Petroleum 2018 & Fourth Quarter Highlights Financial Summary and Guidance Permian Update International Update Closing Remarks 3
  3. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 3
    2018 Highlights Delivering on Our Value Proposition Focused on Returns Cash Flow Generation Operational Excellence Integrated Business Sector leading returns, CFFO before working cap. Permian achieved lowest 164% all-in reserve…
  4. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 4
    Value Based Cash Flow Growth Value Based Returns Cash Distributions 2002 - 2016 2017 2018 2.4 B Dividends in 2018 ROCE: 11% Avg 5% 14% Cash Flow Growth 1.3 B Shares Repurchased CROCE: 21% Avg 18% 27% in 2018 2017 to 2018 Growth…
  5. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 5
    2019 Capital Flexibility with Short-cycle Investments 2019 Capital Program 2019 Capital Program by Type Exploration 4.5 B Capital Program 3% Facilities 9 - 11% Production Growth D&C 24% 0.3 Chemicals 61% 0.1 Total Base 0.2 Oil &…
  6. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 6
    Road Map to 2022 Cash Flow Growth 2019 2020 2021 2022 9.0 B Harvest Existing High-Return Unconventional Inventory and Lower Full-Cycle Costs Expand Unconventional 2022 Cash Flow From Operations1 Unconventional EOR Scalable…
  7. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 7
    Oxy Consistently Returns Capital to Shareholders 5,000 3.50 Dividend Sustainable at 40 WTI 4,500 Consecutive Dividend Growth Since 2002 - 12% CAGR 3.00 4,000 33 B of Total Capital Returned Since 2002 MM Returned to…
  8. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 8
    Occidental Petroleum 2018 & Fourth Quarter Highlights Financial Summary and Guidance Permian Update International Update Closing Remarks 9
  9. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 9
    4Q18 Results Reported diluted EPS 0.93 4Q18 Actual versus Guidance Boed Midpoint Reconciliation Core diluted EPS 1.22 Permian Resources execution +5,000 4Q18 CFFO before working capital & other 1.9 B and well productivity PSC…
  10. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 10
    2019 Guidance Oil & Gas Segment Exploration Expense FY 2019E Production 40 MM in 1Q19E Total production of 715 - 730 Mboed 130 MM in FY 2019E Permian Resources production of 278 - 288 Mboed DD&A FY 2019E International production of…
  11. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 11
    Occidental Petroleum 2018 & Fourth Quarter Highlights Financial Summary and Guidance Permian Update International Update Closing Remarks 12
  12. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 12
    2018 Permian Highlights Permian Resources 52% annual average production growth 216% Permian Reserves Replacement Ratio1 25% improvement in 6 month cumulative well productivity 10% reduction in opex/boe 300% reserves replacement…
  13. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 13
    Permian Resources 2019 Disciplined Investment Plan 2019 Capital Program Focused development in High Returns proven, high-return areas 2.6 B 1.2 B 13 14 180 - 190 Capex Sustaining Rigs Wells Online Ability to ramp-down to sustaining…
  14. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 14
    Occidental Petroleum 2018 & Fourth Quarter Highlights Financial Summary and Guidance Permian Update International Update Closing Remarks 15
  15. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 15
    Abu Dhabi Block ON-3 1.5 million gross acres 35-year concession with 30-year development rights High potential location Prolific fields nearby Adjacent to Oxys Al Hosn Field Key targets already identified Leverage Oxys regional…
  16. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 16
    Occidental Petroleum 2018 & Fourth Quarter Highlights Financial Summary and Guidance Permian Update International Update Closing Remarks 17
  17. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 17
    Oxys Sustainable Value Proposition Integrated Business Model Returns Focused Growth Industry Leading Base Decline Rate in Oil Permian Resources is Driving High- and Gas, Sustainable Cash Generation Return Growth with the Best Wells in…
  18. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 18
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Oil and Gas Updates 2018 Reserves OxyChem Update 19
  19. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 19
    Cash Flow Sensitivities in 1Q19 Oil & Gas Annualized cash flow changes 130 MM per 1.00 / bbl change in oil prices 100 MM per 1.00 / bbl change in WTI prices 30 MM per 1.00 / bbl change in Brent prices Annualized cash flow changes 35…
  20. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 20
    Cash Flow Priorities Cash Flow Breakeven at Low Oil Prices Estimated Cash Flows ()1 40 WTI maintain dividend and production 50 WTI grow dividend and grow CFFO long-term production by 5 - 8+% 60+ WTI 2 B+ Share Repurchase CFFO…
  21. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 21
    2018 Cash Flow and Cash Balance Reconciliation B 2.8 (3.6) 8.1 (5.0) (1.0) 3.0 1.7 Beginning Cash CFFO Before Asset Sales Dividends & Share Capital Expenditures Other Ending Cash Balance 1/1/18 Working Capital Repurchases…
  22. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 22
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Oil and Gas Updates 2018 Reserves OxyChem Update 23
  23. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 23
    Commitment to Safety and the Environment Safety Remains Safety remains our top priority Advantaged in Low Water Conservation and Top Priority Carbon Scenarios Recycle Leadership Safety commitment extends to CO2 EOR leader…
  24. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 24
    Water Infrastructure Drives Value & Investment in New Mexico Water Infrastructure Environmental Benefits 4X Increase 160 New water recycling technology New Mexico Water Recycle Capacity (MBWPD) implemented in New Mexico 120 80…
  25. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 25
    Permian Emissions Low Emission Intensity with Leading Basin Production Low Emission Intensity with More Operated Wells Permian Greenhouse Gas Intensity1 (mt CO2e per Mboe) 50 Permian Greenhouse Gas Intensity1 (mt CO2e per…
  26. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 26
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Oil and Gas Updates 2018 Reserves OxyChem Update 27
  27. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 27
    Continuous Improvement in Permian Resources Hz Unconventional Well Performance Permian Resources Well Performance 250 147% Improvement since 2015 Subsurface 25% Improvement from 2017 to 2018 200 2018 Characterization Cumulative…
  28. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 28
    Core Development Areas Delivering Impressive Results Greater Sand Dunes Cumulative Production (Mboe) Subsurface Characterization is Driving Basin Greater Sand Dunes Bone Spring - 10K wells 400 Leading Results 350 2018 300 52 Wells…
  29. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 29
    Core Development Areas Delivering Impressive Results Barilla Draw Cumulative Production (Mboe) Scalable Performance Improvements Increasing 250 Barilla Draw Wolfcamp A & Hoban - 10K wells Asset Value 2018 New Well Design 2018 200 14…
  30. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 30
    Permian Resources Delivers Basin Leading Wells Oxy has the most top 50 wells of any operator in the Permian Oxy has 20 of the top 50 Wells in the Permian Basin Leading Wells with Less Proppant 4,250 10,000 8,000 3,250 IP 24 Hour…
  31. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 31
    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…
  32. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 32
    Results in Greater Barilla Draw Area Multi-Bench Development Recent Well Results Target Formation Lateral Peak 24 Hr Peak 30 Oil Barilla GreaterDraw BarillaType DrawLog Well Name Length (ft) (boed) Day (boed) (%) Avalon…
  33. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 33
    Permian Scale Permian Resources Total Opex/boe and Operating 12.93 2019 Not even at 4Q18 goal Capability 12.00 Reduces Costs 11.17 Total Opex incl. OBO Oxy Operated Opex/boe Full life-cycle wellbore December 2018 = 6.04 planning…
  34. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 34
    Permian Resources High Value Inventory Permian Resources Inventory 4Q18 12,000 Increased average length of 10,453 total inventory from Undeveloped Drilling Locations1 10,000 Midland Basin 7,750 ft to 7,850 ft Texas Continue to…
  35. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 35
    Permian Resources Net Business Area Acreage Acres1 Resources Unconventional Areas 1.35 Enhanced Oil Recovery Areas 1.35 Significant growth potential in Oxy Permian Total 2.7 MM all development areas 640,000 net unconventional…
  36. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 36
    Growth Opportunities Barranquilla Venezuela Colombia Acquired 6 New Prospective Blocks: LLA-39 & LLA-52 in Llanos Basin Put-9, Mecaya, Terecay & Tacacho in Putumayo Basin Medellin Increases Colombia acreage from 0.3 to 2 million…
  37. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 37
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Oil and Gas Updates 2018 Reserves OxyChem Update 38
  38. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 38
    2018 Reserve Additions Through Program Execution Total Company 96% or 379 MMBOE Reserve Additions prior to price revision Reserve 357 37 2,752 Replacement 2,598 (240) Organic 2018 Reserve Replacements 73% Proved Developed 164%…
  39. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 39
    Successful Drilling and A&D Programs F&D Costs (All Sources)1 17.04 Program Execution Highlights 12.29 Positive total-company performance revisions 300% Permian Resources reserve 5 Year Average 2018 replacement in 2018 Improved…
  40. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 40
    Appendix Contents Financial Information Social Responsibility, Environment and Governance Oil and Gas Updates 2018 Reserves OxyChem Update 41
  41. 4Q 2018 Earnings Conference Call – Occidental Petroleum Corp – slide 41
    OxyChem: Market Leading Position OxyChem 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 Integrated assets…

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