3 OUTLINE First Quarter Highlights Financials Closing Remarks
DELIVERING CASH FLOW PRIORITIES 4 Deleverage De-risk Continuing Return of Capital Complete In Progress Maintain production Near-term: repay 5 B of debt Quarterly common and reduce net debt to 20 B dividend of 0.13 per…
HIGHLIGHTS 5 FIRST QUARTER 2022 PERFORMANCE 3.3 B 3.3 B 2.121 Free Cash Flow Debt Adjusted Generation Retired EPS OIL & GAS OXYCHEM LCV Strong Operational Highest Earnings in Agreements for Net Zero Performance with Over 30…
HIGHLIGHTS 6 FIRST QUARTER OIL & GAS OPERATIONAL EXCELLENCE Drilled Oxys longest DJ Basin lateral at over 15,000 and longest Oman lateral at over 12,000 Averaged 8 drill days per well for six XXL laterals (14,000) on recent DJ…
7 OUTLINE First Quarter Highlights Financials Closing Remarks
FINANCIALS 8 FIRST QUARTER 2022 RESULTS Reported Production versus Guidance Reported Mboed Midpoint Reconciliation Adjusted diluted EPS1 2.12 ROCKIES Stronger than expected new well +4 Reported diluted EPS1 4.65 performance and…
FINANCIALS 9 SECOND QUARTER AND FULL-YEAR 2022 GUIDANCE OIL & GAS OXYCHEM CORPORATE FY 2022 2Q22 Production 2Q22 pre-tax income: 775 MM Domestic tax rate: 22% Total Company: 1,130 - 1,160 Mboed FY 2022 pre-tax income: 2.1 - 2.4 B…
10 OUTLINE First Quarter Highlights Financials Closing Remarks
11 ZERO IN ON VALUE COMPLEMENTARY SHAREHOLDER STRENGTHENING PATHWAY TO BUSINESSES RETURNS FINANCIAL PROFILE NET ZERO Oil & Gas Sustainable Common Dividend Prioritizing Debt Reduction Direct Air Capture OxyChem Share Repurchase…
12 Appendix
13 APPENDIX Financial Information Oil & Gas Update Asset Overview Environment, Social & Governance
14 Maintain Production Base CONTINUED 2022 Preserve asset base integrity FOCUS and longevity CASH FLOW Debt Reduction PRIORITIES Lower expenses and enhance balance sheet flexibility Excess cash flow continues to be…
SHAREHOLDER RETURN FRAMEWORK 15 Continued Prioritize retirement of additional 5 B of debt 1 Debt Reduction Near-term: repay 5 B of debt and reduce net debt to 20 B Medium-term: reduce gross debt to high-teens with objective of…
FINANCIALS 16 2022 CAPITAL PLAN Capital B 2021 Actuals Sustaining1 2022 Plan Oil & Gas 2.4 2.8 3.2 - 3.4 Chemicals 0.3 0.3 0.3 Midstream & Corporate 0.1 0.1 0.2 Net-Zero Pathway2 0.1 0.0 0.2 - 0.4 Total Oxy Capital 2.9 3.2 3.9…
FINANCIAL INFORMATION 17 2022 CAPITAL PLAN 4.5 4.3 B 4.0 3.9 B 3.5 3.2 B 3.0 2.9 B 2.5 2.0 1.5 1.0 0.5 - 2021 GoM & EOR Fewer Efficiency & Exploration Sustaining Inflation Multi-Year Net-Zero 2022 Capital 2022 Activity…
FINANCIAL INFORMATION 18 2022 CAPITAL PLAN 3.9 B - 4.3 B CAPITAL PROGRAM BY ASSET CAPITAL PROGRAM BY TYPE Facilities 20% 0.2 Exploration & Corporate 0.3 - 0.5 D,C&E 58% Oil & Gas Base Maintenance 7% Midstream & Marketing 0.3…
FINANCIAL INFORMATION 19 BALANCE SHEET IMPROVEMENT DRIVES SHAREHOLDER VALUE 90 Enterprise Value ( B) PRIORITIZING DEBT REDUCTION 80 Market capitalization becomes a 38% larger percentage of Enterprise 70 Value as debt is reduced 18%…
FINANCIAL INFORMATION 20 CASH FLOW SENSITIVITIES OIL & GAS MIDSTREAM & MARKETING Annualized cash flow changes 225 MM per 1.00 / Annualized cash flow changes 65 MM per 0.25 / bbl bbl change in oil prices change in Midland to MEH…
21 APPENDIX Financial Information Oil & Gas Update Asset Overview Environment, Social & Governance
OIL & GAS UPDATE 22 DOMESTIC ONSHORE ASSETS PERMIAN 2022 ACTIVITY ROCKIES 2022 ACTIVITY 1.7 B - 1.9 B 16 Gross 10 Net 305 - 335 0.4 B 2 Gross 1 Net 75 - 85 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% EOR 100%…
OIL & GAS UPDATE 23 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 34% above the 6-month basin Oxy is 33% above the 12-month basin 160…
7,000 Domestic Onshore Operated Inventory 24 DOMESTIC Total Gross Operated Locations 6,079 6,000 INVENTORY 5,000 4,399 AND WELL 4,000 COSTS 3,000 2,000 1,599 1,000 Depth of low-breakeven - inventory demonstrates…
Al Hosn Gas Project Execution and Operational Excellence 26 World-class, state-of-the-art sour-gas project Plant capacity increased twice between 2016 and 2018 with minimal capital investment 2021: Expansion project commenced;…
27 APPENDIX Financial Information Oil & Gas Update Asset Overview Environment, Social & Governance
OXYS COMBINED INTEGRATED PORTFOLIO 28 Oil & Gas OxyChem Oxy Midstream Focused in world class Leading manufacturer of basic Integrated infrastructure and basins with a history of chemicals and significant cash marketing provide…
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 29 9.5 MM Net Total U.S. Acres Rockies Permian 1.2 MM Acres 2.9 MM Acres Powder River Basin 0.4 MM Permian Unconventional 1.5 MM DJ Basin 0.8 MM Excludes acreage outside of active…
U.S. ONSHORE OVERVIEW 30 Rockies Permian 1.2 MM Acres 2.9 MM Acres 1Q22 Net Production Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 280 108 504 472 Rockies & Other Dmstc. 89 92 632 286 Total 369 200 1,136…
GULF OF MEXICO OVERVIEW 31 Gulf of Mexico 0.7 MM Acres MARLIN 1Q22 Net Production HORN MOUNTAIN Oil (Mbod) 114 NANSEN HOLSTEIN NGLs (Mbbld) 10 CONSTITUTION BOOMVANG MARCO POLO CAESAR/TONGA Gas (MMcfd) 83 GUNNISON…
INTERNATIONAL OVERVIEW 32 U.A.E. 2.5 MM Acres 1Q22 Net Production Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 33 1 10 36 Al Hosn 8 14 139 45 Dolphin 5 7 130 34 Oman 57 - 69 68 Total 103 22 348 183…
OXYCHEM 2,400 Pre-Tax Earnings (EBIT)1 33 MARKET LEADING POSITION 2,000 23 owned facilities worldwide 1,600 MM Integrated assets capture benefits 1,200 of favorable market conditions 800 Top tier global producer in every…
MIDSTREAM & MARKETING 34 GUIDANCE RECONCILIATION PHYSICAL MIDSTREAM BUSINESS 1Q22 income above guidance primarily driven 1Q22 Guide 1Q22 Actuals 2Q22 Guide by improved sulfur and NGL prices. 2Q22 150 guidance higher than 1Q22 due…
35 APPENDIX Financial Information Oil & Gas Update Asset Overview Environment, Social & Governance
PATHWAY TO NET ZERO 36 Oxy has set the following goals, among others, to achieve net zero across our total emissions inventory in accordance with the Paris Agreement1: 2024 2032 2040 2050 BEYOND Reduce total operational…
ADVANCING NET ZERO 37 SHORT-TERM GHG GOALS (2021-25) GHG SCOPE TARGET DATE TYPE METRIC Scope 1+2 2021 Annual Milestones in Emission Reduction Efforts established annually by the Board of Directors Scope 3 2021 Annual Milestones in…
ADVANCING NET ZERO 38 MEDIUM- AND LONG-TERM GHG GOALS GHG SCOPE TARGET DATE TYPE METRIC MEDIUM-TERM (2026-2035) Scope 1 2030 Absolute Eliminate all routine flaring by 2030 Facilitate 25 million metric tons per year of geologic…
DIRECT AIR CAPTURE & AIR TO FUELS CO2-TO-PRODUCT ZERO-EMISSION POWER SOLUTIONS MANUFACTURING 39 KOH & PVC FROM OXYCHEM TO DAC POINT-SOURCE CAPTURE LOW-CARBON DIESEL AND JET FUELS MADE FROM ATMOSPHERIC CO2…
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 40 STRATEGIC INVESTMENT APPROACH Oxy is leveraging its carbon management expertise, experience and infrastructure to accelerate the global development and commercialization…
1POINTFIVE 41 CAPITAL FUNDING CONSIDERATIONS Funding Principles 2021 2024 2025 2030 Beyond DE-RISK & INNOVATE MANUFACTURING MODE COMMODITY DEVELOPMENT Capital will be allocated based on strong and growing market demand capable of…
DEVELOPMENT AT SCALE 42 1POINTFIVE OVERVIEW A wholly-owned Oxy subsidiary, 1PointFive is a durable, integrated CCUS platform with a mission to curb global temperature rise to 1.5C by delivering carbon capture, sequestration,…
BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 43 OLCV TECHNOLOGY, PROJECTS, AND PLATFORMS ZERO-EMISSION CO2 CAPTURE & PIPELINES & CO2 CARBON TRACKING CARBON UTILIZATION & POWER REMOVAL GAS PROCESSING SEQUESTRATION…
DIRECT AIR CAPTURE 44 TECHNOLOGY ENGINEERING & CONSTRUCTION DAC FIRST-MOVERS AND EARLY ADOPTERS ARTIST RENDERING
HIGHLIGHTS DIRECT AIR CAPTURE TEAMED UP WITH CARBON ENGINEERING TO DEPLOY TECHNOLOGY TO REMOVE CO2 FROM THE FIRST FACILITY EXPECTED TO REMOVE UP ATMOSPHERE AT SCALE TO 1 MILLION TONNES OF CO2 ANNUALLY FIRST COMMERCIAL DAC…
DAC DEVELOPMENT SCENARIOS 46 Current support scenario assumes todays policy, voluntary and compliance markets Net-zero support scenario assumes increase in global policy incentives and demand in voluntary and compliance markets led by…
CO2 STORAGE 47 HUB DEVELOPMENT CURRENT SUPPORT SCENARIO 3 DEDICATED SEQUESTRATION HUBS Project Tundra EXPECTED TO BE ONLINE BY 2025 Multiple land/pore space access agreements executed with expectation of more than 100,000 net…
48 2021 CEO Target Direct Compensation Mix1 90% Variable/At Risk EXECUTIVE COMPENSATION PROGRAM POLICIES AND PRACTICES Pay for performance Act on shareholder feedback Emphasize stock ownership Use relative and absolute…
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