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3Q 2022 Earnings Presentation – Occidental Petroleum Corp

Occidental Petroleum Corp · Nov 10, 2022 · 45 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 1
    11.09.22 Third Quarter Earnings Conference Call
  2. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 2
    3 OUTLINE Third Quarter Highlights Financials Closing Remarks
  3. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 3
    4 THIRD QUARTER 2022 Strong Operational Shareholder Low-Carbon Strategy Execution Driving Free Return Framework Progressing with Cash Flow Generation Rapidly Advancing Enhanced Policy Support Zero In On Value
  4. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 4
    COMPLETE 5 SHAREHOLDER RETURN Increased quarterly common dividend to Repaid 9.6 B of principal and reduced gross FRAMEWORK 0.13 per share…
  5. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 5
    HIGHLIGHTS 6 THIRD QUARTER 2022 PERFORMANCE 3.6 B 1.5 B1 1.8 B1 Free Cash Flow Balance Sheet Shares Generation Improvement Repurchased OIL & GAS OXYCHEM LCV Production of Pre-Tax Income Construction of 1,180 Mboed of 580 MM…
  6. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 6
    HIGHLIGHTS 7 OIL & GAS UPDATE Oxy record quarterly productivity for Delaware Basin; average 30-day IP 3,600 boed for the 46 wells online in 3Q22 Record Permian production from Python development in Loving County, TX Python 13H…
  7. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 7
    CCUS TECHNOLOGY AND MARKET ADVANCEMENT 8 ROADMAP TO COMMERCIAL DEVELOPMENTS VOLUNTARY & COMPLIANCE POLICY 2021 2024 2025 2030 DE-RISK & INNOVATE MANUFACTURING MODE CURRENT DIRECT AIR MAR 2022 CAPTURE & REVENUE SEQUESTRATION…
  8. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 8
    A HISTORIC AND MOMENTOUS CARBON CAPTURE PROJECT 9 UP TO 30 DAC MEGA HUB DEVELOPMENT SECURED Finalized agreement with King Ranch to secure acreage that enables potential 30 MTPA DAC mega-hub 106,000 acres / 166 sq. miles 3 billion…
  9. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 9
    10 OUTLINE Third Quarter Highlights Financials Closing Remarks
  10. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 10
    FINANCIALS 11 THIRD QUARTER 2022 RESULTS Reported Production versus Reported Mboed Guidance Midpoint Reconciliation Adjusted diluted EPS1 2.44 GULF OF MEXICO Less weather downtime than expected and +21 better performance from…
  11. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 11
    FINANCIALS 12 FOURTH QUARTER GUIDANCE OIL & GAS OXYCHEM CORPORATE 4Q22 4Q22 Production 4Q22 pre-tax income: 425 MM FY Domestic tax rate: 22% Total Company: 1,200 - 1,260 Mboed FY International tax rate: 45% Oil / Gas %: 54.0 / 24.0…
  12. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 12
    13 OUTLINE Third Quarter Highlights Financials Closing Remarks
  13. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 13
    14 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…
  14. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 14
    15 Appendix
  15. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 15
    16 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Update
  16. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 16
    17 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…
  17. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 17
    INITIAL CAPITAL ALLOCATION FEB 2022 18 2022 CAPITAL BUDGET 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 &…
  18. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 18
    FINANCIAL INFORMATION 19 BALANCE SHEET IMPROVEMENT DRIVES SHAREHOLDER VALUE 100 90 Enterprise Value ( B) PRIORITIZING DEBT REDUCTION 80 Market capitalization becomes 38% 38% 39% a larger percentage of 70 Enterprise Value as debt…
  19. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 19
    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…
  20. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 20
    21 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Update
  21. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 21
    OIL & GAS UPDATE 22 DOMESTIC ONSHORE ASSETS PERMIAN 2022 ACTIVITY ROCKIES 2022 ACTIVITY 1.9 B - 2.1 B 18 Gross 11 Net 310 - 330 0.4 B 2 Gross 2 Net 70 - 75 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% OBO EOR OBO…
  22. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 22
    TOP TIER WELL PERFORMANCE CONTINUES DELAWARE TO IMPROVE BASIN WELL 400 PRODUCTIVITY 350 Superior-quality inventory combined with 300 subsurface expertise Cumulative Mboe drives continuous 250 improvement and value 200 270 Day…
  23. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 23
    OIL & GAS UPDATE 24 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 32% above the 6-month basin average Oxy is 25% above the 12-month basin…
  24. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 24
    7,000 Domestic Onshore Operated Inventory 25 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…
  25. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 25
    26 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Update
  26. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 26
    OXYS COMBINED INTEGRATED PORTFOLIO 27 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…
  27. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 27
    OXYCHEM 2,500 Pre-Tax Earnings (EBIT)1 28 MARKET LEADING POSITION 2,000 23 owned facilities worldwide 1,500 MM Integrated assets capture benefits of favorable market conditions 1,000 Top tier global producer in every product…
  28. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 28
    OXYCHEM 29 29 BATTLEGROUND MEMBRANE CONVERSION Modernization and expansion of the Battleground plant expected to increase cash flow through improved margins and higher product volumes, while enhancing operational flexibility:…
  29. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 29
    MIDSTREAM & MARKETING 30 GUIDANCE RECONCILIATION PHYSICAL MIDSTREAM BUSINESS 3Q22 income slightly below guidance primarily 3Q22 Guide 3Q22 Actuals 4Q22 Guide driven by lower sulfur prices at Al Hosn. 4Q22 200 guidance lower than…
  30. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 30
    ONE OF THE LARGEST U.S. ACREAGE HOLDERS 31 9.4 MM Net Total U.S. Acres Rockies Permian 1.2 MM Acres 2.8 MM Acres Powder River Basin 0.4 MM Permian Unconventional 1.4 MM DJ Basin 0.8 MM Excludes acreage outside of active…
  31. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 31
    U.S. ONSHORE OVERVIEW 32 Rockies Permian 1.2 MM Acres 2.8 MM Acres 3Q22 Net Production Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 303 126 561 523 Rockies & Other Dmstc. 79 96 572 270 Total 382 222 1,133…
  32. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 32
    GULF OF MEXICO OVERVIEW 33 Gulf of Mexico 0.8 MM Acres MARLIN 3Q22 Net Production HORN MOUNTAIN Oil (Mbod) 126 NANSEN HOLSTEIN NGLs (Mbbld) 11 CONSTITUTION BOOMVANG MARCO POLO CAESAR/TONGA Gas (MMcfd) 84 GUNNISON…
  33. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 33
    INTERNATIONAL OVERVIEW 34 U.A.E. 2.5 MM Acres 3Q22 Net Production Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 44 5 15 52 Al Hosn 14 26 265 84 Dolphin 6 8 146 38 Oman 50 - 70 62 Total 114 39 496 236…
  34. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 34
    35 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Update
  35. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 35
    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…
  36. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 36
    BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 37 STRATEGIC INVESTMENT APPROACH Oxy is leveraging its carbon management expertise, experience and infrastructure to accelerate the global development and commercialization…
  37. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 37
    BUILDING A CCUS PLATFORM ACROSS THE CARBON CAPTURE VALUE CHAIN 38 OLCV TECHNOLOGY, PROJECTS, AND PLATFORMS ZERO-EMISSION CO2 CAPTURE & PIPELINES & CO2 CARBON TRACKING CARBON UTILIZATION & POWER REMOVAL GAS PROCESSING SEQUESTRATION…
  38. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 38
    HIGHLIGHTS DIRECT AIR CAPTURE DEPLOYING CARBON ENGINEERING TECHNOLOGY TO REMOVE CO2 FROM THE FIRST FACILITY EXPECTED TO REMOVE UP ATMOSPHERE AT SCALE TO 500,000 TONNES OF CO2 ANNUALLY FIRST COMMERCIAL DAC EXPECTED OPERATIONAL…
  39. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 39
    DIRECT AIR CAPTURE 40 PROGRESS TOWARD DAC 1 LICENSE TO BUILD Exclusive DAC and AIR TO FUELS license for U.S. deployment. OLCV has a worldwide agreement as the execution partner for all DAC and AIR TO FUELS deployments INNOVATION…
  40. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 40
    1POINTFIVE DAC DEVELOPMENT 41 IRA enables an updated DAC development base case of 100 plants by 2035 Global net-zero support scenario potential for 135 DAC plants with increase in global policy incentives and demand led by net-zero…
  41. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 41
    IRA IMPACT ON POINT-SOURCE CAPTURE 42 MARKET EXPANSION FOR CAPTURE PROJECTS The increase in 45Q enables a greater volume of CO2 to be economically captured through point-source projects Current 45Q 85/t Previous 45Q 50/t…
  42. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 42
    43 DAC & SEQUESTRATION HUB DEVELOPMENT KEY UPDATES ACREAGE POSITION BEYOND THE PERMIAN Acres / Sequestration Multiple land/pore space access Location Square Miles Capacity (Tonnes) agreements executed giving us access to 265,000…
  43. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 43
    DIRECT AIR CAPTURE 44 ILLUSTRATIVE DAC ECONOMIC MODELING TAM MODEL REVENUE MODEL COST MODEL Total Addressable Market (TAM) Carbon removal credit volumes DAC 1 LCOC expected to be in the range of 400 to Net carbon removal credit…
  44. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 44
    OXY TO UTILIZE CLEAN ENERGY GENERATED BY NET POWERS FIRST UTILITY SCALE PLANT Oxy expected to be the primary offtaker of clean energy generated by NET Power using a transformational technology that inherently captures nearly all…
  45. 3Q 2022 Earnings Presentation – Occidental Petroleum Corp – slide 45

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