CAUTIONARY STATEMENTS 2 Forward-looking statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, including but not limited…
3 OUTLINE Third Quarter Highlights DAC Development and Market Update Financials Closing Comments Marco Polo NOTE: DAC (DIRECT AIR CAPTURE)
HIGHLIGHTS 4 THIRD QUARTER 2023 PERFORMANCE 1.7 B OIL & GAS OXYCHEM Free Cash Flow 1,220 Mboed; Pre-Tax Income Generation Full Year Guidance of 373 MM Increased 11 Mboed DAC 600 MM 342 MM PARTNERSHIPS Common Shares Preferred…
HIGHLIGHTS 5 OIL & GAS UPDATE MULTI-BASIN LEADING WELL PERFORMANCE TX Delaware well (Meridian State) delivered a 30-day IP of 8,250 boed and 90-day cumulative production of 553 Mboe, an industry record for the Wolfcamp B DJ Basin…
6 OUTLINE Third Quarter Highlights DAC Development and Market Update Financials Closing Comments Artist Rendering of DAC
DAC DEVELOPMENT AND MARKET UPDATE 7 DAC DEVELOPMENT DRIVERS Carbon Engineering (CE) DAC technology offers revolutionary scalability Technology CE Innovation Centre identifying improvements for DAC 1+ Synergies across Carbon…
DAC DEVELOPMENT AND MARKET UPDATE 8 ADVANCEMENT OF DAC+S TECHNOLOGY, PARTNERSHIPS, AND MARKET Identified technology Early engineering showed Scalability and cost down potential Market demand and policy supports potential promise…
DAC DEVELOPMENT AND MARKET UPDATE INNOVATION AND PARTNERSHIPS 9 EXPECTED TO REDUCE COST OF CAPTURE Cost of Capture1 Illustrative DAC Cost Reduction (/t) Cost down innovation examples Key technology innovations, 500 manufacturing…
DAC DEVELOPMENT AND MARKET UPDATE 10 DAC CDR VOLUNTARY MARKET DEMAND SCENARIOS As DAC costs reduce, CDR market demand and partnership opportunities expected to increase DAC CDR demand (Mtpa) OXY OXY DAC CDR: 300/t OWNERSHIP %…
DAC DEVELOPMENT AND MARKET UPDATE 11 DAC CDRs EXPECTED TO BE ECONOMIC ALTERNATIVE TO SAF CO2 abatement using SAF costs 750/t2 Beginning in 2027, CORSIA DAC CDRs expected to cost less than abatement using SAF requires airlines to…
DAC 1 & 2 12 DEVELOPMENT UPDATE STRATOS (DAC 1) JV partner1 secured Project 30% complete Expected commercially operational mid-2025 Class VI well permit applications filed with U.S. EPA SOUTH TEXAS DAC HUB (DAC 2) Selected to…
DAC DEVELOPMENT AND MARKET UPDATE DAC INVESTMENT PRINCIPLES 13 Developing competitive-returns business with cash flow stability Returns Focused DAC 2+ to meet return threshold for FID Demand-Driven Market demand to drive…
14 OUTLINE Third Quarter Highlights DAC Development and Market Update Financials Closing Comments
FINANCIALS 15 THIRD QUARTER 2023 RESULTS Reported Production versus Mboed Reported Guidance Midpoint Reconciliation Adjusted diluted EPS1 1.18 ROCKIES Strong base and new well performance, +18 Reported diluted EPS1 1.20 higher…
FINANCIALS 16 FOURTH QUARTER 2023 GUIDANCE OIL & GAS 4Q23 MIDSTREAM2 4Q23 Total Company Production (Mboed) 1,206 - 1,246 Pre-tax Income (190) - (90) MM Permian Production (Mboed) 571 - 591 Midland - MEH Spread / bbl. 0.10 - 0.20…
DIFFERENTIATED PORTFOLIO 18 Oxys premier diversified assets and distinguished operational capabilities create a runway for sustainable shareholder value accretion OIL & GAS OXYCHEM Diversified portfolio with deep, improving…
19 Appendix
20 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Overview
SHAREHOLDER RETURN FRAMEWORK 21 Sustainable & Increased quarterly dividend to 0.18 per share in 2023 Growing Dividend Dividend sustainable at 40 WTI 3.0 B of share repurchases completed in 2022 Share v Refreshed 3.0 B share…
FINANCIAL INFORMATION 22 PREFERRED EQUITY REDEMPTION 2Q23 0.68 Year-To-Date 4/Share Shareholder Distributions 3Q23 1Q23 and Preferred Equity Redemption1 0.66 0.95 3.121 4Q22 1,661 MM excess distributions to common…
FINANCIAL INFORMATION 23 DILUTED SHARE COUNT EXAMPLE Basic Shares Outstanding + Incremental Diluted Shares = Total Diluted Outstanding Shares Incremental diluted shares include June 2020 warrants, Berkshire Hathaway warrants, and…
FINANCIAL INFORMATION 24 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…
25 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Overview
TECHNICAL AND OPERATIONAL EXCELLENCE 26 CREATING VALUE THROUGH OPERATING INGENUITY WORLD-CLASS RESERVOIR INNOVATIVE WELL DESIGNS AND CHARACTERIZATION AND DATA APPLICATION TECHNOLOGY-DRIVEN EXECUTION Oxy-developed proprietary workflows…
OIL & GAS UPDATE 27 DOMESTIC ONSHORE ASSETS PERMIAN 2023 ACTIVITY ROCKIES 2023 ACTIVITY 2.7 B 24 Gross 11 Net 380 - 410 0.8 B 3 Gross 2 Net 100 110 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% OBO OBO 100% EOR…
TOP-TIER WELL PERFORMANCE DELAWARE CONTINUES TO IMPROVE 28 BASIN WELL 450 PRODUCTIVITY 400 Superior-quality 350 inventory combined with subsurface expertise Cumulative Mboe 300 drives continuous improvement and value 250 200…
OIL & GAS UPDATE 29 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 31% above the 6-month basin average Oxy is 21% above the 12-month basin…
WELL DESIGN DRIVING MAJOR DJ BASIN WELL PRODUCTIVITY GAINS 30 PRODUCTIVITY 200 180 Data-driven well design and operational expertise 160 drive continuous 140 Cumulative Mboe improvement and value 120 1 Year Cumulative 100…
DJ BASIN WELL DESIGN CHANGES DRIVING CAPITAL EFFICIENCY 31 Subsurface Design Execution Performance Previous 18 WPS Driving Innovation and Efficiency Development Optimization Niobrara Oxys ingenuity in well design and execution Smaller…
DOMESTIC Domestic Onshore Operated Inventory Total Gross Operated Locations 8,000 32 INVENTORY & 6,885 INNOVATION 6,000 5,592 4,000 3,812 Depth of low-breakeven inventory demonstrates quality 2,000 1,321 and quantity of…
33 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Overview
OXYS COMBINED INTEGRATED PORTFOLIO 34 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…
OXYCHEM 2,500 Pre-Tax Earnings (EBIT)1 35 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…
MIDSTREAM & MARKETING 36 GUIDANCE RECONCILIATION 3Q23 Guide 3Q23 Actuals 4Q23 Guide PHYSICAL MIDSTREAM BUSINESS 200 3Q23 income below guidance due to Quarterly Pre-Tax Income ( MM) losses on equity investments; 4Q includes…
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 37 9.4 MM Net Total U.S. Acres ROCKIES 1.1 MM ACRES PERMIAN 2.8 MM ACRES POWDER RIVER UNCONVENTIONAL 0.3 MM POWDER RIVER 1.4 MM DJ BASIN CONVENTIONAL 0.8 MM 1.4 MM Excludes acreage…
U.S. ONSHORE OVERVIEW 38 3Q23 NET PRODUCTION ROCKIES Oil NGLs Gas Total 1.1 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 339 145 625 588 Rockies & Other Dmstc. 72 97 565 263 Total 411 242 1,190 851 OPTIMIZED ADVANCED…
GULF OF MEXICO OVERVIEW 39 ALABAMA GULF OF MEXICO MISSISSIPPI TOTAL ACREAGE 0.9 MM TEXAS LOUISIANA 3Q23 NET PRODUCTION MARLIN Oil (Mbod) 123 HORN MOUNTAIN NGLs (Mbbld) 10 HOLSTEIN NANSEN CONSTITUTION Gas (MMcfd)…
INTERNATIONAL OVERVIEW 40 U.A.E. 3Q23 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 25 2 15 30 Al Hosn 15 26 284 88 Dolphin 6 8 149 39 Oman 57 - 53 66 ALGERIA OMAN Total 103…
41 APPENDIX Financial Information Oil & Gas Update Asset Overview LCV Overview
DAC COMMERCIAL DEVELOPMENT ASSUMPTIONS 42 DAC 1 DAC 2 Nth Voluntary and Compliance REVENUE Policy CDR PRICE1 400 630/t 400 630/t Value Based IRA 45Q Enhancements DAC to EOR: 130/t 45Q CREDIT2 180/t 180/t Policy/Scope…
DIRECT AIR CAPTURE 43 ILLUSTRATIVE DAC ECONOMIC MODELING CASH FLOW PROFILE REVENUE COSTS DAC 1 capital cost1 estimated at 1.3 B for first Carbon removal credit volumes DAC 1 & 2 cost of capture expected to be in the range 500k tonne…
COST OF CO2 REDUCTION USING SAF 44 DAC CDRs expected to be more economic than SAF Value Units Calculation Sources / Notes Assumption: January 2022 through September 2023 SAF price premium over conventional jet fuel 2,300 / tonne A…
45 OXY TO UTILIZE CLEAN ENERGY GENERATED BY NET POWERS FIRST UTILITY SCALE PLANT Oxy has 42% equity ownership in NET Power Inc. (NYSE: NPWR) Expected to be the primary offtaker of clean energy generated by NET Power's first…
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