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3Q 2013 Earnings Conference – Occidental Petroleum Corp

Occidental Petroleum Corp · Oct 29, 2013 · 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 2013 Earnings Conference – Occidental Petroleum Corp – slide 1
    Occidental Petroleum Corporation Third Quarter 2013 Earnings Conference Call October 29, 2013
  2. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 2
    Third Quarter 2013 Earnings Highlights Results Total production (Boe/d) 767,000 Domestic oil production (Bbl/d) 267,000 Operating costs Better Capital program Better Core earnings 1.6 billion Core diluted EPS 1.97 YTD CFFO…
  3. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 3
    Third Quarter 2013 Earnings Highlights Quarter-over-Quarter Impacts Core Income* ( in bln) Improved oil and gas results 1.6 + Higher realized oil prices 1.4 + Higher domestic oil sales volumes 1.3 Lower MENA oil sales volumes…
  4. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 4
    Third Quarter 2013 Earnings Oil & Gas Segment Earnings 3Q13 vs. 2Q13 ( in millions) 28 10 10 (25) 240 2,363 2,100 Core Results 3Q13 2.4 B 2Q13 2.1 B 3Q12 2.0 B 2Q13 Sales Price Sales Volumes Lower All Others Higher…
  5. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 5
    Third Quarter 2013 Earnings Oil and Gas Total Production Company-wide Oil & Gas Production (Mboe/d) 4 2 2 (7) 772 (6) 766 767 3Q13 Impacts (Mboe/d) Libya labor issues (4) Qatar maintenance (5) Colombia activity (2)…
  6. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 6
    Third Quarter 2013 Earnings Oil and Gas Domestic Production Domestic Oil & Gas Production (Mboe/d) 2 (2) 6 476 469 470 3Q12 2Q13 Oil NGLs Natural Gas 3Q13 6
  7. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 7
    Third Quarter 2013 Earnings Oil & Gas Realized Prices Realized Prices Benchmark Prices Worldwide Worldwide Domestic Nat. Oil (/bbl) NGLs (/bbl) Gas (/mmbtu) WTI Brent NYMEX 3Q13 103.95 40.53 3.27 105.83 109.71 3.62 Benchmark %…
  8. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 8
    Third Quarter 2013 Earnings Oil & Gas Production Costs Production Costs (/boe) FY12 1Q13 2Q13 3Q13 YTD13 Domestic 17.43 14.06 14.28 14.65 14.33 Total 14.99 13.93 13.40 13.60 13.64 500 million annualized domestic cost savings…
  9. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 9
    Third Quarter 2013 Earnings Chemical Segment Core Earnings 3Q13 vs. 2Q13 Guidance ( in millions) 4Q13 expected to be 100 mm 31 (3) 181 13 144 (4) Core Results 3Q13 181 mm 2Q13 144 mm 3Q12 162 mm 2Q13 Sales Price…
  10. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 10
    Third Quarter 2013 Earnings Midstream Segment Earnings Core Results 3Q13 vs. 2Q13 3Q13 212 mm ( in millions) 2Q13 48 mm 3Q12 156 mm 18 212 33 113 48 2Q13 Marketing & Pipelines Power Generation 3Q13 Trading 10
  11. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 11
    Third Quarter 2013 Earnings YTD 2013 Cash Flow YE2012 vs. YTD2013 ( in millions) 400 6,400 11,000 YTD13 Debt / Capital 15% Return on Equity 14% Return on Capital Employed* 12% Cash Flow From Operations before Working…
  12. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 12
    Third Quarter 2013 Earnings 2013 Production Outlook Domestically, we are on track to achieve our second half oil growth average of 6,000 to 8,000 barrels per day increase over the first half average. Natural gas and NGL volumes…
  13. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 13
    Third Quarter 2013 Earnings 2013 Capital Outlook Our annual capital is expected to be about 9 billion, about 600 million lower than the 9.6 billion program we have previously discussed. Of this reduction, approximately 200…
  14. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 14
    Third Quarter 2013 Earnings 4Q13 Guidance Summary Oil & Gas Segment Domestic Production Oil 6,000 8,000 bopd growth for 2H13 over 1H13 NGLs modest decline Natural gas modest decline International Production volumes similar to…
  15. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 15
    Third Quarter 2013 Earnings MENA Overview Over 20 bln free cash flow in last 15 years. Currently generating 1.6 bln free Iraq Qatar cash flow (excluding Al Hosn Gas). Libya UAE Bahrain Expect to generate over 2.0 bln annual free…
  16. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 16
    Third Quarter 2013 Earnings MENA Overview Drilled several types of wells Expect MENA net production of throughout region. 260 mboe/d in 2013 Onshore oil wells (Oman) Al Hosn start-up should add net Shallow water offshore oil wells…
  17. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 17
    Third Quarter 2013 Earnings MENA Overview Strategic Goals Continue to be a growing, profitable and vibrant business in the Middle East Region. Continue to be a preferred strategic partner with the host countries where we operate.…
  18. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 18
    Third Quarter 2013 Earnings MENA Overview Iraq Qatar Libya UAE Bahrain Oman, Qatar & United Arab Emirates Oman 70% of MENA Production 85% of Income from Operations Yemen 75% of Capital Nearly all free cash flow Focus…
  19. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 19
    Third Quarter 2013 Earnings Oman Present in Oman for 34 years. UAE Gulf of Oman Operate Blocks 9, 27, 62 (Northern Safah Oman) and 53 (Mukhaizna). Largest independent oil producer with 9 Block 62 highly skilled and loyal national…
  20. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 20
    Third Quarter 2013 Earnings Oman Oman Gross Production Oxy Operated since 1994 250 230 212 217 192 200 Thousand Boe per Day 154 150 115 97 100 100 64 previous operators 70 50 45 46 50 42 44 35 36 40 39 41 26 27 31…
  21. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 21
    Third Quarter 2013 Earnings Northern Oman Northern Oman Blocks 9 & 27 Development wells, exploration success and water flood technology. Increase in gross production from 92 to 106 mboe/d since 2010. Large pipeline hub and gas plant…
  22. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 22
    Third Quarter 2013 Earnings Northern Oman Block 9 Over next 5 years, plans include 400 development and water injection wells, 50 exploration wells and expanding the waterfloods over a greater area. Expect annual drilling capital…
  23. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 23
    Third Quarter 2013 Earnings Northern Oman Highly Successful Exploration Discoveries this year have average production of 3 mboe/d with 70% oil. Nearing completion of new, 2,000 square mile 3D seismic program. Should yield many…
  24. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 24
    Third Quarter 2013 Earnings Mukhaizna Mukhaizna One of worlds largest steamflood projects, ranked 3rd in the world and larger than any US steamflood. Assumed operation in 2005 and have increased gross production from 8 to 125…
  25. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 25
    Third Quarter 2013 Earnings Mukhaizna Production Processing Expect to drill 340 wells in 2013. Recent production rates have been as high as 830 bopd with an average for 2013 of around 330 bopd. Plan to drill 300 wells in 2014. 6…
  26. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 26
    Third Quarter 2013 Earnings Qatar Idd El Shargi North Dome (ISND), Bahrain Idd El Shargi South Dome (ISSD), Al Rayyan Al Rayyan, Dolphin project. Expect returns well in excess of 20%. Dolphin Gas Project In nearly 20 years, have…
  27. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 27
    Third Quarter 2013 Earnings Qatar Qatar Gross Production 140 Oxy operated since 1994 thousands of barrels of oil per day 120 100 80 60 previous operators 40 20 0 27
  28. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 28
    Third Quarter 2013 Earnings Qatar Will drill 17 wells at ISND in 2013 from jack-up rigs in water depth of 130 feet. Bahrain Al Rayyan Have drilled 268 horizontal producing wells since 1994, and over 100 horizontal water injectors.…
  29. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 29
    Third Quarter 2013 Earnings Dolphin Flagship project in the region. Iran Block 12 Two offshore platforms in the North Field Al Rayyan of Qatar bringing gas to the onshore plant in Ras Laffan. Dolphin Process wet gas into…
  30. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 30
    Third Quarter 2013 Earnings United Arab Emirates Iran Presence in UAE since 2000 with regional Block 12 hub based in Abu Dhabi supporting Al Rayyan MENA assets with Engineering, Geoscience, Business Development, Dolphin Operations…
  31. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 31
    Third Quarter 2013 Earnings Al Hosn Al Hosn Gas Project Plant will be able to process 1 Bcfd of gas from the field and separate it into sales gas, condensate, NGLs and sulfur. Oxys net production expected to be 200+ MMSCFD of sales…
  32. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 32
    Third Quarter 2013 Earnings MENA Summary Currently looking to sell a minority interest in our MENA operations. Believe this will give us an exciting opportunity to possibly partner with key regional players. This sale will reduce…
  33. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 33
    Third Quarter 2013 Earnings MENA Summary We are well positioned to meet each of our strategic goals in the region: We have a highly profitable, vibrant and growing business; Developed strong and lasting relationships with host…
  34. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 34
    Third Quarter 2013 Earnings Strategic Review Recently announced the initial phase of the Companys strategic review to streamline and focus our operations in order to better execute the Companys long-term strategy and enhance value for…
  35. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 35
    Third Quarter 2013 Earnings Strategic Review These are the first formal steps in our effort to streamline the business, concentrate in areas where we have depth and scale and improve overall profitability. Our goal is to become a…
  36. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 36
    Third Quarter 2013 Earnings Capital Efficiency & Operating Cost Reduction Program Embarked on aggressive plan to improve our operational efficiency across all cost categories; continue to run ahead of full-year objectives. Reduced…
  37. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 37
    Third Quarter 2013 Earnings California Operating Costs / boe Large and diverse portfolio of opportunities with more than 2.1 million net acres. 23.20 Reduced overall operating expenses by more than 4.00/boe. < 19.00 Improvement in…
  38. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 38
    Third Quarter 2013 Earnings Permian Non-CO2 Permian Basin Primary Plays Accumulated more than 1.7 million net Matador Arch acres covering both relatively established Northwest and emerging plays, anchored by our core, Shelf…
  39. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 39
    Third Quarter 2013 Earnings Permian Non-CO2 Acreage in Select Permian Plays As a result of these efforts, we can now shift (Thousands of Acres) our development strategy and expect to spend an additional 500 million of capital Delaware…
  40. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 40
    Third Quarter 2013 Earnings Colombia Our 30+ year history of operating in Colombia has provided us with unique insight around heavy oil production and mature oil field development opportunities. Historically this has been among Oxys…
  41. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 41
    Third Quarter 2013 Earnings MENA In our Middle East/North Africa business, the majority of the value in terms of our production, income and cash flow is derived from three key countries Oman, Qatar and the U.A.E. The majority of our…
  42. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 42
    Third Quarter 2013 Earnings Chemicals OxyChem Ingleside Ethylene Cracker We plan to pursue a 50/50 joint venture with Mexichem to build a world scale ethylene cracker at the OxyChem plant in Ingleside, TX. Construction on the…
  43. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 43
    Third Quarter 2013 Earnings Chemicals OxyChems Operations Significant benefit: Increased integration from As part of a long-term the well head to VCM strategic supply Market production and sales relationship with Propane/Butane…
  44. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 44
    Third Quarter 2013 Earnings Midstream Bridge Tex Pipeline The BridgeTex pipeline continues on track for scheduled start-up in mid-2014. The roughly 450-mile-long pipeline will be capable of transporting approximately 300,000…
  45. 3Q 2013 Earnings Conference – Occidental Petroleum Corp – slide 45
    Third Quarter 2013 Earnings Conference Call Q&A

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