3 OUTLINE 2023 and Fourth Quarter Highlights Cash Flow and Shareholder Return Priorities 2024 Capital Plan Financials Closing Comments Marco Polo
HIGHLIGHTS 4 2023 ACHIEVEMENTS Delivering on a differentiated long-term shareholder value strategy through superior assets and operations while leading in the emerging lower carbon world Operational Excellence Record program well…
HIGHLIGHTS 5 FOURTH QUARTER 2023 PERFORMANCE Oil & Gas OxyChem 1,234 Mboed Production 250 MM Highest Quarterly Production Pre-Tax Income in over Three Years Financial Strategic 1.1 B Closed Acquisition of Free Cash Flow…
FOURTH QUARTER HIGHLIGHTS 6 OIL & GAS UPDATE NEW WELLS DELIVERING RECORD PERFORMANCE, UNLOCKING INVENTORY New Mexico well (Top Spot) delivered industry-wide New Mexico record 6-month cumulative production of 770 Mboe Delaware Basin…
TOP 10 HORIZONTAL WELLS 7 IN DELAWARE BASIN CONTINUING TO RAISE THE BAR WITH INDUSTRY-LEADING WELLS First 6-Month Cumulative Production, Mboe 0 250 500 750 1,000 1 2 3 4 5 6 7 8 9 10 SOURCE: ENVERUS PRISM…
8 OUTLINE 2023 and Fourth Quarter Highlights Cash Flow and Shareholder Return Priorities 2024 Capital Plan Financials Closing Comments Ingleside Marco Polo
CROWNROCK DAWSON BORDEN 99 UPDATE MARTIN HOWARD Transaction Summary NM TX Purchase Price: 12.0 B1 2024E Production: 170 Mboed2 Undeveloped Locations: 1,700 STERLING MIDLAND Effective Date: January 1, 2024 GLASSCOCK…
2024 ONGOING FOCUS 10 CASH FLOW Maintain Production Base Preserve asset base integrity PRIORITIES and longevity Sustainable & Growing Dividend Through-the-cycle sustainability Apply technical and with long-term growth potential…
SHAREHOLDER RETURN PRIORITIES 11 Divestiture proceeds1 and ECF after Retire debt Sustainable and common dividend allocated to debt opportunistically growing dividend reduction until principal…
12 OUTLINE 2023 and Fourth Quarter Highlights Cash Flow and Shareholder Return Priorities 2024 Capital Plan Financials Closing Comments Marco Polo
2024 CAPITAL PLAN 13 ENERGY AND CHEMICALS BUSINESSES 6.0 B 6.0 5.75 B 5.8 B 5.0 4.0 3.0 2.0 Short-cycle and Exploration Mid-cycle Investments 1.0 320 MM Decrease 480 MM Increase - 2023 Onshore Exploration Permian EOR,…
2024 CAPITAL PLAN 14 EMERGING LOW-CARBON BUSINESSES COMMERCIALIZING CCUS AND DAC Artist Rendering of DECARBONIZATION SOLUTIONS STRATOS, the first industrial-scale Direct Air Capture facility Expected Net Capital Expenditures1 600 MM…
15 OUTLINE 2023 and Fourth Quarter Highlights Cash Flow and Shareholder Return Priorities 2024 Capital Plan Financials Closing Comments Marco Polo
FINANCIALS 16 FOURTH QUARTER 2023 RESULTS Reported Production versus Mboed Reported Guidance Midpoint Reconciliation Adjusted diluted EPS1 0.74 ROCKIES Strong base and new well performance, +19 Reported diluted EPS1 1.08 higher…
FINANCIALS 17 FIRST QUARTER AND FULL-YEAR 2024 GUIDANCE (EXCLUDES ANY CROWNROCK COMPONENTS) OIL & GAS 1Q24 FY 2024 MIDSTREAM2 1Q24 FY 2024 Total Company Production (Mboed) 1,155 - 1,195 1,220 - 1,280 Pre-tax Income (210) - (110) MM…
FINANCIALS 18 SHAREHOLDER VALUE ENHANCEMENTS Near-Term Baseline Mid-Cycle Investments Ongoing Financial Improvements Drive Sustainability Strengthening OxyChem Battleground modernization Low decline conventional Oil and Gas Balance…
19 OUTLINE 2023 and Fourth Quarter Highlights Cash Flow and Shareholder Return Priorities 2024 Capital Plan Financials Closing Comments Marco Polo
DIFFERENTIATED PORTFOLIO 20 Oxys premier diversified assets and distinguished operational capabilities create a runway for sustainable shareholder value accretion OIL & GAS OXYCHEM Diversified portfolio with deep, improving…
21 Appendix
22 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
FINANCIAL INFORMATION 23 CASH FLOW SENSITIVITIES OIL & GAS MIDSTREAM & MARKETING Annualized cash flow changes 230 MM per 1.00 / Annualized cash flow changes 65 MM per 0.25 / bbl bbl change in oil prices change in Midland to MEH…
FINANCIAL INFORMATION 24 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 Capital B 2023 Actuals 2024 Plan 25 2024 CAPITAL PLAN Oil & Gas Chemicals 5.0 0.5 4.8 5.0 0.7 Sustaining Capital1 Midstream & Corporate 0.3 0.3 400 MM change from 2023: Energy and Chemicals Subtotal 5.8 5.8…
26 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
OIL & GAS UPDATE 27 DOMESTIC ONSHORE ASSETS PERMIAN 2024 ACTIVITY ROCKIES 2024 ACTIVITY 2.6 B 21 Gross 10 Net 380 - 420 0.9 B 2 Gross 2 Net 160 180 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 500 PRODUCTIVITY 450 Superior-quality 400 inventory combined with subsurface expertise 350 Cumulative Mboe drives continuous 300 improvement and value 250…
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 64% above the 6-month basin average Oxy is 49% above the 12-month basin…
WELL DESIGN DRIVING MAJOR DJ BASIN WELL PRODUCTIVITY GAINS 30 PRODUCTIVITY 250 Data-driven well design and operational expertise 200 drive continuous Cumulative Mboe improvement and value 150 1 Year Cumulative Improvement 100…
TECHNICAL EXCELLENCE DRIVING MIDLAND WELL STEP-CHANGE IN PERFORMANCE 31 PRODUCTIVITY 250 Subsurface characterization, 200 operational focus, and Cumulative Mboe optimized DSU design catalysts for elevated 150 performance 100…
HIGH-GRADED U.S. Onshore Unconventional Gross Operated Inventory 32 U.S. ONSHORE 12,000 CrownRock 10,800 PORTFOLIO 10,000 Oxy Permian Unconventional 7,600 8,000 Rockies Acquisition of CrownRock 6,000 6,000 will increase Oxys sub-…
OIL & GAS UPDATE 33 2023 RESERVES 700 MMboe Reserves Additions Excluding Price Revisions 183% 3-Year Average Reserves Replacement Ratio 5.72 3-Year Average F&D Cost per BOE 3,817 153 29 3,982 429 (446) Organic All-In 69% Proved…
34 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
OXYS COMBINED INTEGRATED PORTFOLIO 35 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 36 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…
OXYCHEM PROJECTS UPDATE 37 BATTLEGROUND MODERNIZATION & EXPANSION PROJECT Modernization and expansion of the Battleground plant expected to increase cash flow through improved margins and higher product volumes, while enhancing…
MIDSTREAM & MARKETING 38 GUIDANCE RECONCILIATION 4Q23 Guide 4Q23 Actuals 1Q24 Guide PHYSICAL MIDSTREAM BUSINESS 200 4Q23 income below guidance primarily Quarterly Pre-Tax Income ( MM) due to losses on equity investments;…
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 39 9.3 MM Net Total U.S. Acres ROCKIES 1.0 MM ACRES PERMIAN 2.8 MM ACRES POWDER RIVER UNCONVENTIONAL 0.3 MM POWDER RIVER 1.4 MM DJ BASIN CONVENTIONAL 0.7 MM 1.4 MM Excludes acreage…
U.S. ONSHORE OVERVIEW 40 4Q23 NET PRODUCTION ROCKIES Oil NGLs Gas Total 1.0 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 338 138 674 588 Rockies & Other Dmstc. 87 98 600 285 Total 425 236 1,274 873 OPTIMIZED ADVANCED…
GULF OF MEXICO OVERVIEW 41 ALABAMA GULF OF MEXICO MISSISSIPPI TOTAL ACREAGE 0.9 MM TEXAS LOUISIANA 4Q23 NET PRODUCTION MARLIN Oil (Mbod) 105 HORN MOUNTAIN NGLs (Mbbld) 10 HOLSTEIN CONSTITUTION Gas (MMcfd) 72…
INTERNATIONAL OVERVIEW 42 U.A.E.1 4Q23 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 32 3 15 38 Al Hosn 16 27 295 92 Dolphin 6 8 156 40 Oman 54 - 60 64 ALGERIA OMAN Total…
43 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
DAC DEVELOPMENT SUMMARY 44 DAC DEVELOPMENT DRIVERS Carbon Engineering (CE) DAC technology offers revolutionary scalability Technology CE Innovation Centre identifying improvements for DAC 1+ Synergies across Carbon Engineering, Oxy…
DAC DEVELOPMENT SUMMARY INNOVATION AND PARTNERSHIPS 45 EXPECTED TO REDUCE COST OF CAPTURE Cost of Capture1 Illustrative DAC Cost Reduction (/t) Cost down innovation examples Key technology innovations, 500 manufacturing and…
DAC DEVELOPMENT SUMMARY 46 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 % RETURNS…
DAC DEVELOPMENT SUMMARY 47 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 offset their…
DAC DEVELOPMENT SUMMARY DAC INVESTMENT PRINCIPLES 48 Developing competitive-returns business with cash flow stability Returns Focused DAC 2+ to meet return threshold for FID Demand-Driven Market demand to drive development…
DAC COMMERCIAL DEVELOPMENT ASSUMPTIONS 49 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…
50 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
51 OXYS NET-ZERO STRATEGY AND GOALS In 2020, Oxy adopted the following goals to achieve Net Zero across our total emissions inventory in accordance with the goals of the Paris Agreement1: Net-zero emissions in our operations and…
SUSTAINABILITY 52 RECENT EMISSIONS REDUCTION PROGRESS Reduced routine flaring by 67%2 in our global oil and gas operated assets since joining the World Banks Zero Routine Flaring initiative in 2020 1 Achieved Zero Routine Flaring…
53 SUSTAINABILITY STRATEGY SUSTAINABILITY INVESTMENTS RECOGNITIONS WATER STEWARDSHIP The Board approved the Companys Recognized by Fortune in both 2022 and In 2022, 95% of the total water withdrawn updated Health, Safety,…
South Curtis Ranch produced water recycling facility in Midland County, Texas WATER 54 STEWARDSHIP ACHIEVEMENTS Reduce water withdrawn from freshwater sources 95% of the total water withdrawn by Oxys U.S. oil and gas operations…
55 APPENDIX Financial Information Oil & Gas Update Asset Overview DAC Development Summary Sustainability Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS 56 Abbreviations B Billion EBITDA Earnings Before Interest, Tax, Depreciation, MBOE Thousand Barrel Oil Equivalent BE Breakeven and Amortization MBOED Thousand Barrel Oil Equivalent per Day BO Barrel of Oil…
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