Third Quarter Earnings Conference Call Occidental Petroleum Corporation November 10, 2020
Occidental Third Quarter Highlights Financial Results and Guidance 3
Third Quarter 2020 Highlights 1.24 MMboed 1.4 B 2.3 B Exceeded Free Cash Flow Announced Guidance Divestitures Strong Operational Maximizing Land Grant Excellence and Operational WES Exchange Record Well Results Efficiencies and…
Divestiture Progress Continues 12 11 7.9 B Divestitures since 10 closing Anadarko acquisition Cumulative Asset Sales ( B) 2-3 B 9 700 MM 8 260 MM 1.3 B 7 2.4 B 6 565 MM 90 MM 67 MM 750 MM 200 MM 5 3.3 B 4 2021 Target…
Exceptional Permian Resources Performance Development Activity Increasing with New Performance Exceeding Prior Levels 3Q20 Development Highlights New Oxy record - Silvertip O5H in TX Del. peak 24-hour 4Q20 Rig Allocation2 rate 9,000…
Occidental Third Quarter Highlights Financial Results and Guidance 7
Third Quarter 2020 Results Reported Adjusted EPS (0.84) 3Q20 Reported versus Guidance Midpoint Mboed Reconciliation Reported diluted EPS (4.07) Permian Resources: higher uptime and improved +20 new well performance 3Q20 CFFO…
Fourth Quarter 2020 Guidance Estimates Oil & Gas OxyChem Corporate 4Q20 Production1 4Q20 pre-tax income: 185 MM 4Q20 Domestic tax rate: 22% Total Company: 1,105 - 1,155 Mboed 4Q20 International tax rate: 45% Permian Resources: 360…
Runway to Deleveraging Extended 5.0 B of near-term debt maturities to 2025+ 2.0 B Debt tendered in July 2020 Successful Debt 2.1 B Debt tendered in August and September 2020 Management 0.9 B of 2021 debt repaid with remaining debt…
2020 Budget Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 11
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 Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 14
Debt Management Recent steps taken to address maturities Expected liquidity to address near-term maturities 3Q20 Refinancing extended maturities Proceeds from additional announced asset sales 4.6% Weighted average interest rate1 Organic…
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…
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…
Midstream & Marketing Guidance Reconciliation 100 3Q20 Guide 3Q20 Actual 4Q20 Guide Physical Midstream Business 3Q20 above guidance due to improved commodity pricing. 50 4Q20 guidance reflects seasonality 0 Quarterly Pre-Tax…
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 150 MM per…
2020 Oil Hedges Three-Way Costless Collar Enhances Monthly Cash Flow by 106 MM When Brent…
2021 Natural Gas Hedges Two-Way Costless Collar Secures Natural Gas Price Floor of Short Call 2.50 For 530 MMcfd 4.00 3.64 530 MMcfd Hedge Details 3.50 Long Put Summary 2021 2.50 2021 Settlement Realized Price (/Mcf) 3.00…
2020 Budget Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 22
Leading Delaware Basin Well Performance 6 Month Cumulative Oil Top 100 Wells 1 12 Month Cumulative Oil Top 100 Wells 2 Oxys subsurface expertise delivers Basin leading wells Oxy has 36% of the best wells, while drilling less than for…
2020 Budget Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 24
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…
One of the Largest U.S. Acreage Holders 9.6 MM Net Total U.S. Acres Rockies Permian 1.2 MM Acres 3.0 MM Acres Powder River Basin 0.5 MM Permian Unconventional 1.6 MM DJ Basin 0.7 MM Excludes acreage outside of active operating…
U.S. Onshore Overview Rockies Permian 1.2 MM Acres 3.0 MM Acres 3Q20 Net Production Oil NGLs Gas Total (MBOD) (MBBLD) (MMCFD) (MBOED) Permian Resources 222 99 593 420 Permian EOR 102 27 32 134 DJ Basin 81 76 716 276 Other…
Gulf of Mexico Overview Gulf of Mexico 0.8 MM Acres 3Q20 Net Production Total Oil (MBOD) 91 NGLs (MBBLD) 8 Gas (MMCFD) 57 Total (MBOED) 109 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 3Q20 Net Production1 Oil NGLs Gas Total (MBOD) (MBBLD) (MMCFD) (MBOED) Latin America 33 - 7 34 Algeria 38 3 - 41 Al Hosn 13 24 233 76 Dolphin…
2020 Budget Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 30
Producing a Lower Carbon Barrel of Oil First look at the worlds largest Direct Air Capture plant Oxy Low Carbon Ventures and the management team from Rusheen Capital formed development company 1PointFive 1PointFive licensed technology…
2019 CEO Target Direct Compensation Mix1 Executive Compensation Program Objectives 90% Variable, Align with shareholder Or At-Risk, Pay interests Preserve performance accountability Build long-term share ownership Provide…
2020 Budget Financial Information Appendix Well Performance Asset Overview Environmental, Social, and Governance WES 33
WES Operating as an Independent Company Changes at a Glance Effective Dec. 2019, WESs management team transferred from Oxy to WES; the remaining WES employees transferred in 2020 Oxy is providing limited administrative services to WES…
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