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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
DATE OF REPORT (DATE OF EARLIEST EVENT REPORTED) JUNE 18, 2002
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-9210 95-4035997
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
10889 WILSHIRE BOULEVARD
LOS ANGELES, CALIFORNIA 90024
(Address of principal executive offices) (ZIP code)
Registrant's telephone number, including area code:
(310) 208-8800
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Item 9. Regulation FD Disclosure
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Speech by Stephen I. Chazen, Chief Financial Officer and
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Executive Vice President - Corporate Development
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June 18, 2002
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The following is the presentation made by Stephen I. Chazen, Chief
Financial Officer and Executive Vice President - Corporate Development of
Occidental Petroleum Corporation, at the Bank of America Securities Energy &
Power Conference on June 18, 2002, in New York, New York.
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OCCIDENTAL PETROLEUM CORPORATION
Stephen Chazen
Chief Financial Officer
&
Executive Vice President Business Development
BANK OF AMERICA SECURITIES
ENERGY & POWER CONFERENCE
New York
June 18, 2002
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OVERVIEW
PROFITABILITY
o Oil & Gas Industry Leader (1999-2001)
- Profits per BOE
o Top Quartile (1999-2001)
- Return on Capital Employed
- Return on Equity
CASH FLOW
o Oil & Gas Industry Leader (1999-2001)
- Free cash flow per BOE
o Chemical Business (2001)
- $185 million despite worst market in 20 years
BALANCE SHEET
o Strongest balance sheet in 20 years
OIL & GAS PRODUCTION GROWTH
o 5% annual growth (2002-2006)
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NET INCOME BEFORE SPECIAL ITEMS*
First Quarter 2002
($ Millions)
[the following is a tabular representation of graphical materials]
OXY AHC APC APA DVN COC BR UCL MRO KMG P
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
129 113 89 81 75 55 48 43 27 5 (7)
WTI oil price averaged $21.64/BBL
NYMEX gas price averaged $2.57/MCF
* Special Items as reported by company
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RETURN ON CAPITAL EMPLOYED
1999-2001 Average
(Percentage)
[the following is a tabular representation of graphical materials]
XOM COC OXY AHC CVX BP KMG P UCL APA BR MRO DVN APC
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
0.182 0.148 0.135 0.125 0.124 0.115 0.112 0.111 0.107 0.105 0.081 0.068 0.033 0.032
Total 1999-2001 income before interest expense divided by total capital employed
[debt + equity]; interest is added back after-tax [using a 35% statutory rate,
not effective rate] - per SEC filings.
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FREE CASH FLOW*
1999-2001 Average Annual
(Percentage)
[the following is a tabular representation of graphical materials]
OXY BP AHC XOM MRO COC APA BR CVX P UCL KMG DVN APC
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
9.37 5.93 5.24 5.15 5.00 4.86 4.78 4.46 4.28 4.05 4.00 3.96 3.51 (0.78)
* Exploration and production income (SEC filings) after taxes & before
interest expense, plus DD&A, plus exploration expense, minus capital -
divided by BOE sales
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PRODUCTION REPLACEMENT
1999-2001 Weighted Average
Excludes Purchases
(Percentage)
[the following is a tabular representation of graphical materials]
APC KMG BP APA CHV OXY P UCL BR XOM DVN COC AHC MRO
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
199% 190% 160% 127% 116% 115% 109% 109% 108% 105% 97% 94% 79% (4%)
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FINDING & DEVELOPMENT COSTS
1999-2001 Average
Excludes Purchases
($/BOE)
[the following is a tabular representation of graphical materials]
BP OXY XOM CHV KMG P BR UCL APA APC COC DVN AHC
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
3.39 3.85 4.12 4.59 4.80 4.83 5.42 6.68 6.69 6.79 7.03 8.04 9.50
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PROVEN RESERVES
Million BOE
[the following is a tabular representation of graphical materials]
US Qatar Ecuador Yemen Colombia Oman Russia Pakistan
- -------- -------- -------- -------- -------- -------- -------- --------
1,698 200 85 63 58 57 52 27
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DEBT, RESERVES & PRODUCTION
1997 2001
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Total Debt ($ Millions) $ 6,326 $ 4,890
Production (Thousand BOE/Day) 395 476
Proven Reserves (Million BOE) 1,310 2,241
Reserves/Production Ratio (Years) 9.1 12.9
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TOTAL DEBT/CAPITALIZATION RATIO*
March 31, 2002
(Percentage)
[the following is a tabular representation of graphical materials]
APA P OXY MRO APC UCL AHC BR KMG COC DVN
- ----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
39 45 46 50 53 54 59 63 64 73 89
* Total Debt = Debt + Redeemable Preferred Stock; ratio excludes Goodwill
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MIDDLE EAST - OXY INTERESTS
[map of Middle East]
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ABU DHABI - DOLPHIN PROJECT
o 25-year/$3.5 billion
project to:
- Develop 2 Bcf/day
of gas in Qatar's
North Field
- Construct 260-mile
[map of Dolphin project] pipeline to deliver
the gas to U.A.E.
markets
o Dolphin Partners
- U.A.E Offsets Group
(51%)
- Occidental (24.5%)
- TotalElfFina (24.5%)
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OIL & GAS PRODUCTION FORECAST
[the following is a tabular representation of graphical materials]
2001 2002E 2003E 2004E 2005E 2006E
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United States 315 320 327 330 332 331
Middle East 88 98 107 120 130 162
Latin America 31 36 44 65 69 70
Other 42 46 47 50 49 47
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Total 476 500 525 565 580 610
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OCCIDENTAL'S OUTLOOK
o Attractive investment opportunity
- Profitable growth
- Competitive dividend
- Strong balance sheet
- Concentrated core assets
o Large, stable U.S. assets
o Strong growth in Middle East
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OCCIDENTAL PETROLEUM CORPORATION
[OXY LOGO]
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OCCIDENTAL PETROLEUM CORPORATION
Statements in this presentation that contain words such as "will" or
"expect", or otherwise relate to the future, are forward-looking and
involve risks and uncertainties that could significantly affect
expected results. Factors that could cause results to differ
materially include, but are not limited to: global commodity pricing
fluctuations, and supply/demand considerations, for oil, gas and
chemicals; higher-than-expected costs; and not successfully completing
(or any material delay in) any expansion, capital expenditure,
acquisition, or disposition. Occidental disclaims any obligation to
update any forward-looking statements.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
OCCIDENTAL PETROLEUM CORPORATION
(Registrant)
DATE: June 18, 2002 S. P. Dominick, Jr.
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S. P. Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)s