First Quarter Earnings Conference Call Occidental Petroleum Corporation May 6, 2020
First Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 3
First Quarter 2020 Highlights 1.4 50%+ 600 Mbod MMboed Capex Reduction Export Capacity 31 1.2 B 800 Mbod Mboed Midpoint of Cost Pipeline Capacity Guidance Beat Reductions to the Gulf Coast Strong Operational Additional Capex…
Quick and Decisive Action Taken Moderate 25% Base Decline Rapid Cost Reduction Base Management 1.2 B in additional operating and Reservoir management expertise corporate costs savings identified Well and lease profitability Lowering…
Enhancing Our Financial Resilience Cost Savings Moderate Activity Cash Generation Maximize Liquidity Long-Term Value Creation Reduced 2020 Capital Improving Cash Flow Available Liquidity Remains Intact Budget Over 50%3 Neutrality…
First Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 7
Debt Management Free Cash Flow Near-Term Debt Maturities ( B) Improving cash flow neutrality Paying Preferred in shares increases 6.4 Outstanding Debt FCF by 200 MM quarterly 4.7 3.9 3.4 Cash on Balance Sheet 1.0 B Cash and cash…
First Quarter 2020 Results Reported Adjusted EPS (0.52) 1Q20 Reported versus Guidance Midpoint Mboed Reconciliation Reported diluted EPS (2.49) Rockies: improved base performance, higher OBO +16 1Q20 CFFO before working capital 1.4…
Second Quarter 2020 Guidance Estimates Oil & Gas OxyChem Corporate Production1 80 MM pre-tax income Domestic tax rate: 22% Total Company: 1,340 - 1,400 Mboed International tax rate: 45% Permian Resources: 432 - 442 Mboed Marketing…
First Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 11
Core Differentiators Low Cost Carbon Reduction Operator Leadership Best in class operator with top wells Leader in carbon capture utilization and Safety performance leadership sequestration (CCUS) development Unmatched reservoir…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 13
2020 Capital Program by Asset 2020 Capital Budget Marketing & Midstream Protecting Asset 0.1 5.2 - 5.4 B 0.2 Exploration & Corporate OxyChem Integrity 0.3 Permian EOR GoM 0.4 International 0.5 Rockies Key Program Highlights…
Reduced Activity Domestic Unconventional Assets Permian Resources Rockies 2Q 4Q Activity 2Q 4Q Activity 0.3 B 2 Gross 2 Net 35 45 0.1 B 10 15 Capex Rigs Rigs Wells Online Appraisal Capex Wells Online 100% 100% Base Maint Powder…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 16
Overhead and Opex Cost Savings 1.1 B Synergy Target Achieved + 1.2 B of Additional Cost Savings in 2020 3.5 Overhead Savings 3.0 Employee/Contractor Savings 1,100 MM 0.9 B Asset Rationalization 165 MM 2.5 Real Estate and Other 235 MM…
Cash Conservation Quickly Responding to Lower Oil Prices Increasing re-use of equipment and materials Increasing operational efficiency understanding Optimizing testing specifications and procedures to every dollar spent and…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 19
2020 Oil Hedges Three-Way Costless Collar Enhances Monthly Cash Flow by 106 MM When Brent…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 21
Rapid Value Capture Silvertip TX Delaware Demonstrated Life of Field Value Creation Developing the best wells for lower cost Subsurface Drilling Completion Production Expect to recover 7% more oil per 23% reduction in downtime from…
Basin Leading Permian Resources Hz Unconventional Well Performance Improvement in 90 Day Cum Improvement 1st Year Cum Improvement Well Performance +299% from 2015 to 2020 +163% from 2015 to 2019 4D Frac Modeling 400 +20% from 2019 to…
Leading Delaware Basin Well Performance 6 Month Cumulative Oil Top 100 Wells1 12 Month Cumulative Oil Top 100 Wells2 Oxys subsurface expertise delivers Basin leading wells Oxy has 20% of the best wells, while drilling less than for…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 25
Largest U.S. Acreage Holder 14.4 MM Net Total U.S. Acres Rockies Permian 1.5 MM Acres 3.1 MM Acres Powder River Basin 0.4 MM Permian Unconventional 1.7 MM DJ Basin 0.9 MM Excludes acreage outside of active operating Permian…
U.S. Onshore Overview Rockies Land Grant Permian 1.5 MM Acres 7.0 MM Acres1 3.1 MM Acres 1Q20 Net Production Oil NGLs Gas Total (MBOED) (MBBLD) (MMCFD) Permian Resources 273 101 600 474 Permian EOR 115 30 33 151 DJ Basin 121…
Gulf of Mexico Overview Gulf of Mexico 1.0 MM Acres 1Q20 Net Production Total Oil (MBOED) 136 NGLs (MBBLD) 12 Gas (MMCFD) 90 Total 163 Note: Acreage amounts presented on this slide are net acres 28
International Overview U.A.E. Algeria 1.5 MM Acres 0.5 MM Acres Oman 6.0 MM Acres 1Q20 Net Production1 Oil NGLs Gas Total (MBOED) (MBBLD) (MMCFD) Colombia Latin America 33 - 8 34 2.0 MM Acres Al Hosn 13 25 234 77 Dolphin 6 8…
Algeria Overview Generates significant free cash flow at low prices BLOCK 404A Substantial remaining field life in world class Central Storage reservoirs: 2.5+ B bbls of liquids produced to date Strong 30+ year relationship with…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 31
Highly Skilled and Diverse Board Provides Strategic Oversight Focused on Creating Shareholder Value Six new directors added since 2019 Annual Meeting, Independence1 demonstrating the Boards commitment to refreshment Board-recommended…
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