Second Quarter Earnings Conference Call Occidental Petroleum Corporation August 11, 2020
Second Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 3
Second Quarter 2020 Highlights 1.4 Divestiture MMboed 1.2 B Program of Additional Cost Continues 36 Reductions Greater Natural Buttes Mboed Midpoint Achieved Asset Divested Guidance Beat Strong Operational Capex Reductions…
Base Management & Opex Efficiency Base decline mitigation 2Q20 Uptime Records GoM Lucius platform 98% 4.69 2Q20 Domestic Opex/boe New Mexico 96% Enhance margin even with limited wedge DJ Basin 95% From the Subsurface From the…
Pathway to 2021 2021 Sustaining Sustaining Capital Capital Sustaining Capital Annual capital spend 2.9 B necessary to maintain production Building Annual capital required to sustain production in from 4Q 2020 base Momentum 40 WTI…
Cash Flow Maintain Production Base Current Focus Priorities Debt Reduction Near term excess cash flow and divestiture Sustainable Dividend Medium proceeds to be Term allocated to debt reduction Growth Capital Dividend…
Second Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 8
Second Quarter 2020 Results Reported Adjusted EPS (1.76) 2Q20 Reported versus Guidance Midpoint Mboed Reconciliation Reported diluted EPS (9.12) Permian Resources: higher uptime, improved new well performance, faster time to…
Third Quarter and Full-Year 2020 Guidance Estimates Oil & Gas OxyChem Corporate 3Q20 Production1,2 3Q20 pre-tax income: 145 MM FY20 Domestic tax rate: 22% Total Company: 1,200 - 1,250 Mboed FY20 pre-tax income: 550 - 600 MM FY20…
Debt Management Steps taken to address near-term maturities Expected liquidity to address near-term maturities July refinancing extended maturities 1. 2+ B Asset sales 4.2% weighted average interest rate1 2. Free Cash Flow generation in…
Second Quarter Highlights Occidental Financial Results and Guidance Closing Remarks 12
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 14
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…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 17
Overhead and Opex Cost Savings 1.1 B Synergy Target + 1.2 B of Additional Cost Savings Achieved 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…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 19
Third & Fourth Quarter 2020 Production Guidance Third Quarter 2020 Permian Resources Example 3Q20 production of 1,225 Mboed expected to be 3Q20 25 Mboed Wedge Decrease 13% below 2Q20 Company-wide base decline of 25% Total Net…
Midstream & Marketing Guidance Reconciliation 100 2Q20 Guide 2Q20 Actual 3Q20 Guide Crude Exports 2Q20 loss less than 50 guidance primarily attributable to extracting value from the high volatility 0 of crude and basis spreads…
Cash Flow Sensitivities Oil & Gas Annualized cash flow changes 210 MM per 1.00 / bbl change in oil prices 180 MM per 1.00 / bbl change in WTI prices 30 MM per 1.00 / bbl change in Brent prices Annualized cash flow changes 160 MM per…
Warrant Issuance Distribution of warrants on August 3, 2020 to common shareholders of record as of July 6, 2020 Distribution on common stock to provide value to existing shareholders Granted 1/8th warrant per common share owned No…
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 25
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 25% of the best wells, while drilling less than for…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 27
Oxys Combined Integrated Portfolio Oil & Gas OxyChem Oxy Midstream and WES Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing provides access to…
Largest U.S. Acreage Holder 14 MM Net Total U.S. Acres Rockies Permian 1.3 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 1.3 MM Acres 7.0 MM Acres1 3.1 MM Acres 2Q20 Net Production Oil NGLs Gas Total (MBOD) (MBBLD) (MMCFD) Permian Resources 258 108 596 465 Permian EOR 105 27 51 141 DJ Basin 107…
Gulf of Mexico Overview Gulf of Mexico 0.9 MM Acres 2Q20 Net Production Total Oil (MBOD) 118 NGLs (MBBLD) 10 Gas (MMCFD) 83 Total 142 Note: Acreage amounts presented on this slide are net acres 31
International Overview U.A.E. Algeria 1.5 MM Acres 0.5 MM Acres Oman 6.0 MM Acres 2Q20 Net Production1 Oil NGLs Gas Total (MBOD) (MBBLD) (MMCFD) Colombia Latin America 33 - 7 34 2.0 MM Acres Al Hosn 14 25 244 80 Dolphin 8…
2020 Budget Synergy Capture Update Appendix Financial Information Well Performance Asset Overview Governance 33
Highly Skilled and Diverse Board Provides Strategic Oversight Focused on Creating Shareholder Value Independence Six directors added since 2019 Annual Meeting, demonstrating the Boards commitment to refreshment Progressive shareholder…
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