May 2019 Investor Presentation Occidental Petroleum Corporation
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Oxys Existing Integrated Portfolio Oil & Gas OxyChem Midstream Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing provides access to maximizing recovery…
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…
World Class Global Asset Portfolio With Focus Q4 2018A Production (Mboed) 7 Oman 8 Qatar 9 UAE 10 Colombia 30 year production 2nd Largest Oil Producer 30 Year Joint Venture Llanos Norte Basin and history in Oman in Offshore Qatar…
2018 Return On Capital and Return Of Capital 20% Returned 3.6 B to shareholders in 2018, including 1.3 B of share repurchases 15% OXY Since 2002, returned 34 B of Total Capital through 1Q19 Sector leading returns, achieved 14%…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Transaction Merits Highly accretive to CFPS and Free CFPS after dividends 3.5 B free cash flow improvements through synergies and capital reduction 10 - 15 B of planned portfolio optimization and free cash flow support rapid…
Substantial Scale Industry-Leading Returns Disciplined Growth Oxy & Anadarko: 100 B 20%+ 2021 PF 3.12/share Growing Dividend and CROCE Enterprise Value 1 Creating A High Attractive mix of U.S. unconventional, global Strong mix of…
Premier, Complementary Global Asset Portfolio 1 Producer in the Permian Largest Private Surface and Mineral Acreage Owner in Wyoming 1 in CO2 EOR Projects Top 3 Producer of PVC, Chlorine, and 1 Producer in the DJ Basin Caustic…
Significant Identified Synergies with Potential Upside Expected Pre-Tax Annual Synergies and Capital Reduction ( B) 1.5 3.5 Capital Synergies: 0.9 B 0.9 Opex/G&A Synergies: 1.1 B 0.6 Capital Reduction: 1.5 B 0.5 Permian…
Delivering Value Pro Forma Per Common Share Accretion1 Continued commitment 2020 +40% 2021 +30% to return of capital through growing the dividend and share repurchases over time 10X 4X Debt reduction via portfolio optimization…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Continuous Improvement in Permian Resources Hz Unconventional Well Performance Permian Resources 250 Well Performance 147% Improvement since 2015 25% Improvement from 2017 to 2018 Subsurface 200 2018 Characterization Cumulative…
Oxys Play Leading Delaware Basin Performance Average 6 Month Cumulative Oil by Operator Oxys Subsurface Knowledge, Data 160 Analytics and Execution Drive Basin 140 Leading Results 120 Top Delaware Basin Operator 100 74% better…
Delaware Basin Synergistic Assets Oxy is competitively advantaged with experience in Delaware Basin geology and regional supply logistics Oxy Aventine - Maintenance and Logistics Hub APCs acreage is located in the middle of Oxys core…
Top 100 Permian Basin Wells 6 Month Cumulative Oil Top 100 Wells Basin Leading Wells with Less Proppant Oxy has 23% of the Best Wells, While Only Competitors use 27% more Proppant: 500 M Drilling 4% of Total Permian Wells Incurring…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Transaction Details Oxy formally enters agreement to acquire Anadarko on May 9, 2019 59.00 cash and 0.2934 Oxy shares per Anadarko share Equity purchase price of 38 B Structure Total transaction value of 57 B (including Western…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Anticipated Timeline May 9, 2019: Oxy formally Distribute 2H 2019 enters Receive SEC proxy Acquisition is agreement to comments statement/ complete acquire prospectus Anadarko Prepare and Prepare and Proxy file HSR, Form…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Oxy and Anadarko Integration Integration Approach Progress Develop comprehensive Designed integration understanding of current architecture Today operating models and plan integration Deployed top talent to lead integration teams,…
Integration Objectives Deliver Execute a Build a World Class Value Flawless Day-1 Occidental + Leverage opportunities broadly Focus on continuing operations Create a combined operating across functions, geography, and protecting…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
Cash Flow Maintain low cost production Maintenance Capital Priorities for base Combined Maintain and grow current Company Sustainable Dividend dividend per share at a sustainable level Reduce combined capital spend Growth Capital to…
Portfolio Optimization 10 15 B Planned divestitures of non-core assets 10 15 B Within 12 24 months Expected to fast-track synergy achievement, integration, and deleveraging Total to purchase Africa assets: Algeria, Ghana,…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
1Q19 Highlights Focused on Returns & Cash Flow Generation Returned 800 MM (45% of CFFO before working capital) to shareholders through dividends and share repurchases Continued to deliver sector leading returns; CROCE1 of 21% and…
1Q19 Permian Highlights Permian Execution Excellence Permian Resources Subsurface Technical Basin-leading Well productivity outperforming peer average by over 45% across the Delaware Basin Excellence Wells Implementing new facility…
Occidental Petroleum Investor Information OXY & APC: Positioned for Success Sustainable Value Creation Delivering Through Superior Execution Transaction Overview Anticipated Timeline: Closing 2H19 Pathway to Integration Disciplined…
1Q19 Results Reported diluted EPS 0.84 Core diluted EPS 0.84 1Q19 Actual versus Guidance Boed Midpoint Reconciliation 1Q19 CFFO before working capital 1.8 B Permian Resources execution +2,500 and well productivity 1Q19 capital…
2019 Guidance Oil & Gas Segment Exploration Expense FY 2019E Production 30 MM in 2Q19E 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…
Appendix Contents Financial Information Executive Compensation Oil and Gas Updates Additional Information 35
Cash Flow Sensitivities in 2Q19 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…
2019 Cash Flow and Cash Balance Reconciliation B 1.8 (0.6) (0.2) (1.3) 3.0 (0.9) 1.8 Beginning Cash CFFO Before Dividends Share Repurchases Capital Expenditures Working Capital / Ending Cash Balance 01/01/19 Working Capital…
Appendix Contents Financial Information Executive Compensation Oil and Gas Updates Additional Information 38
Executive Compensation Program Objectives Align with shareholder interests Preserve performance accountability Build long-term share ownership Provide consistent retention incentive Straightforward and transparent 1 Match…
Appendix Contents Financial Information Executive Compensation Oil and Gas Updates Additional Information 40
Core Development Areas Delivering Impressive Results Greater Sand Dunes Cumulative Production (Mboe) Subsurface Characterization is Driving Basin Greater Sand Dunes Bone Spring - 10K wells Leading Results 2018 52 Wells 9,950…
Core Development Areas Delivering Impressive Results Barilla Draw Cumulative Production (Mboe) Scalable Performance Improvements Increasing Barilla Draw Wolfcamp A & Hoban - 10K wells Asset Value 2018 21 Wells 10,100 New well design…
Appendix Contents Financial Information Executive Compensation Oil and Gas Updates Additional Information 43
Berkshire Hathaway Financing Commitment Flexible, balance sheet friendly acquisition financing Financial support from, and affiliation with, the worlds most renowned Rationale investor Enhances competitive ability to pursue attractive…
Investor Relations Contacts Jeff Alvarez Vice President - Investor Relations 713.215.7864 jeff_alvarezoxy.com Neil Backhouse Director - Investor Relations 713.366.5604 neil_backhouseoxy.com
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