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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 16, 2004
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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Attached as Exhibit 99.1 is the presentation made on June 16, 2004 by Tom
Menges of Occidental Permian Ltd.
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 16, 2004 S. P. Dominick, Jr.
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S. P. Dominick, Jr., Vice President and Controller
(Chief Accounting and Duly Authorized Officer)
EXHIBIT INDEX
99.1 Presentation made by Tom Menges
EXHIBIT 99.1
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OCCIDENTAL PETROLEUM CORPORATION
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Oxy Permian
Past Performance & Future Outlook
[OXY LOGO] June 16, 2004
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1
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LOOKING BACK - THE ALTURA PURCHASE
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o Altura acquired - April 2000
o Financial analysts express skepticism
o What Oxy said when the purchase
was announced in March 2000
o Why Altura?
o What does the deal do for Oxy?
o Altura - Production Plan
o Altura - Oxy's Production Plan
[OXY LOGO] June 16, 2004
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2
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WHY ALTURA?
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o Altura fits with Oxy's strategy of focusing on
large, long lived assets that have a
competitive advantage
o The acquisition is additive to earnings &
cash flow both immediately & in the long
term
o Creative non-recourse project financing
o Credit support from Shell & BP Amoco
o No need to issue equity
o No need to issue new public debt
o Maintains investment grade credit ratings
[OXY LOGO] June 16, 2004
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WHAT DOES THE DEAL DO FOR OXY?
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o Fits with core strategy of focusing on
long-lived assets with a competitive
advantage
o Significantly increases the size & <-- Reserves Increase
strength of Oil & Gas asset base ^ Proved
| 63%
o Fits with Oxy's existing Permian Basin
operations
o Gives Oxy a third large core U.S.
operation (Elk Hills and Hugoton)
o Immediately improves earnings &
cash flow per share
o Balance sheet remains strong
o Creative financing structure does not
require issuing new public debt or stock
o Low cost of capital
o Maintains investment grade credit ratings
[OXY LOGO] June 16, 2004
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4
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ALTURA'S PRODUCTION PLAN
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o Capital was focused almost exclusively on <-- Continue to build
oil production from CO2 floods on the strength of
current CO2
o Oil production from non-CO2 flood areas flooding
was not funded in the capital program operations
o Significant natural gas opportunities have
been overlooked <-- Focus on enhancing
production from
o Production decline will be halted by using non-CO2 floods
the same methods Oxy is now using in its
Permian properties
o Focus on 50 recently identified exploitation
opportunities
o Includes total reserves of 200 million barrels
of proved undeveloped & 280 million barrels
of probable & possible
[OXY LOGO] June 16, 2004
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5
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ALTURA - OXY'S PRODUCTION PLAN
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o Halt Altura's 5% production decline
o Apply same techniques to Altura properties that
have increased Oxy's Permian production
o 3-D seismic, enhanced drilling technology & creative
geological/engineering processing
o Lean staff that combines global with regional
experience
o Consolidate in key areas within the Permian Basin
that have long term potential for earnings & cash
flow growth - through sales, swaps and farmouts
o Improve historical results by $50 million/year
through cost reduction & margin
improvement
[OXY LOGO] June 16, 2004
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6
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PERFORMANCE REVIEW
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[map]
OXY PERMIAN
BUSINESS UNIT
REVIEW
[OXY LOGO] June 16, 2004
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7
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OXY PERMIAN
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o Large resource base
o Low decline rate
o Significant cash generation
o Natural consolidator
o EOR experience
[OXY LOGO] June 16, 2004
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PERMIAN OVERVIEW
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o Acquired Altura in 2000 for $3.6 billion &
combined with Oxy's existing Permian
operations
o Year-end 2003 proved reserves of 1.1 billion
BOE
o 31% of Oxy's 2003 worldwide production
[OXY LOGO] June 16, 2004
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9
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PERFORMANCE FROM ALTURA ACQUISITION
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Pre-Tax Cash Flow ($ Billions)
Altura Purchase Price $3.6
Cum. Cash Flow Thru March 2004 $2.7
Permian Reserves
F&D Costs
Mmboe per Barrel
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Existing Oxy (1/1/00) 89
Altura Purchase 855 $ 4.21
Cumulative Production (224)
Reserve Additions 374 $ 3.11
Divestitures (16)
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Ending Reserves (12/31/03) 1,078
[OXY LOGO] June 16, 2004
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10
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TOTAL PRODUCTION TREND
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Thousand BOE/Day
[the following is a tabular representation of graphical materials]
Month 3-Month Average Total Production
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Apr-00 163.4
May-00 163.8
Jun-00 163.6
Jul-00 162.5
Aug-00 162.3
Sep-00 161.3
Oct-00 162.6
Nov-00 163.2
Dec-00 163.3
Jan-01 161.7
Feb-01 159.6
Mar-01 159.2
Apr-01 159.5
May-01 159.5
Jun-01 161.5
Jul-01 161.9
Aug-01 162.5
Sep-01 161.0
Oct-01 161.7
Nov-01 162.9
Dec-01 162.6
Jan-02 162.7
Feb-02 161.3
Mar-02 161.8
Apr-02 161.6
May-02 162.3
Jun-02 162.9
Jul-02 163.7
Aug-02 163.8
Sep-02 164.2
Oct-02 163.2
Nov-02 164.2
Dec-02 164.7
Jan-03 164.9
Feb-03 164.3
Mar-03 163.3
Apr-03 165.2
May-03 168.2
Jun-03 172.1
Jul-03 173.8
Aug-03 174.0
Sep-03 173.7
Oct-03 173.8
Nov-03 173.6
Dec-03 174.9
Jan-04 176.1
Feb-04 176.4
Mar-04 176.3
[OXY LOGO] June 16, 2004
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RESERVES & PRODUCTION HISTORY
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Million BOE
[the following is a tabular representation of graphical materials]
1999 2000 2001 2002 2003
------ ------ ------ ------ ------
Proved Reserves 89 968 955 1,013 1,078
Altura Acquisition 855
Cumulative Production Since 1/1/00 43 102 162 224
[OXY LOGO] June 16, 2004
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OXY PERMIAN MAJOR FIELD LOCATIONS
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[map]
[OXY LOGO] June 16, 2004
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TOP PERMIAN OIL FIELDS
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2002 Production
(Million Barrels)
[the following is a tabular representation of graphical materials]
Field Production
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Wasson (1) 25.5
Spraberry Trend Area 24.0
Slaughter (1) 15.3
Levelland (1) 9.6
Seminole (2) 9.0
Vacuum (2) 8.1
Cowden North (1) 7.3
Yates (2) 6.9
Anton Irish (1) 5.8
McElroy 5.2
Salt Creek (2) 5.2
Fullerton (2) 5.1
Kelly-Snyder 4.8
Goldsmith (1) 4.1
Robertson North (1) 3.9
Dollarhide (1) 3.0
Hobbs (1) 2.7
Foster (1) 2.6
Cedar Lake (1) 2.5
Watson 72 1.6
Eunice Monument (2) 1.1
(1) Significant OXY Operated Presence
(2) OXY Non-Operated Holdings
Source: Energy Information Administration 2002 Annual Report
[OXY LOGO] June 16, 2004
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TOP 10 PERMIAN OIL PRODUCERS
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2003 Gross Operated Production
(Thousand Barrels/Day)
[the following is a tabular representation of graphical materials]
Stock Symbol Gross Operated Production
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OXY 177
CVX 67
XOM 53
KMI 39
AHC 30
PXD 23
APA 20
COP 19
UCL 19
DVN 17
Oxy Permian
CO2 Flood 50%
Waterflood 40%
Primary 10%
Production Sources: RRC of Texas, New Mexico OCD
[OXY LOGO] June 16, 2004
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MAJOR FIELDS
2003 Proven Reserves in Mmboe
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Proved
Existing Oil Fields Mmboe % / Total
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Top 10 Fields 794 74%
Next 10 Fields 154 14%
All Others 130 12%
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Total 1,078 100%
5 Largest Fields: Cowden, Hobbs, Levelland, Slaughter & Wasson
[OXY LOGO] June 16, 2004
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OXY PERMIAN FORMATIONS
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DEPTH FORMATION LITHOLOGY RECOVERY THICKNESS POROSITY PERM % OF
(FT) TECHNIQUE GROSS/NET (%) (MD) OP RESERVES
- ------ ----------- --------- --------- ---------- -------- ---- -----------
4,400 Grayburg Dolo/Silt WF 330 / 110 13 7 9
4,700 San Andres Dolomite CO2 & WF 215 / 110 12 7 65
6,000 Clearfork Dolomite WF & CO2 1200 / 120 7 3 16
7,500 Canyon Limestone WF 170 / 85 13 6 4
8,500 Devonian Limestone CO2 & WF 300 / 60 17 3 3
& Chert
11,000 Ellenburger Limestone Primary 1500 / 250 7 4 3
[OXY LOGO] June 16, 2004
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OXY PERMIAN OPERATIONS
[photo]
Wells
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~8,600 Producers
~6,400 Injectors
Concentrated in Major Properties
Utilize 80-100 workover units
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[photo]
Drilling
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1,000+ Wells drilled 2000-2003
Drilled 251 in 2003
Utilize both Horizontal & Vertical
Technology
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[photo] [photo]
Oil / Gas / Water Production Facilities
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237,000 gross boepd &
2.7 MM bwpd (92% water cut)
1000+ Facilities, ~10,000 miles of flow lines
[photo] [photo]
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[photo]
Gas Processing Operations
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6 Gas Processing / CO2 Removal Plants
Provide Critical Infrastructure
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COST MANAGEMENT
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o Active pursuit of low coast power:
- Size provides advantage
- Unit cost advantaged to most producers
o Focus on reliability to reduce repairs:
- 30% fewer failures of beam wells
over last five years
- Run life of submersible pumps >4.5 years
o Active supply chain management effort
[OXY LOGO] June 16, 2004
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POSITION AS CONSOLIDATOR
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$MM Cost $ / BOE
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Acquisitions
2001 11 2.71
2002 73 1.36
2003 317 3.08
[OXY LOGO] June 16, 2004
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CO2 - BRAVO DOME
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o Acquired late 2000 in trade
with BP
o Allows Oxy to reduce CO2
costs and develop supply [graphic]
o 210 MMCF per day
o Recent investments to
reduce decline
[OXY LOGO] June 16, 2004
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OXY PERMIAN PIPELINE
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o Purchased early 2004
o Transports 3rd party &
[map] equity volumes
o Maintain reasonable
transportation cost
o Flexible market access
[OXY LOGO] June 16, 2004
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2004 PROJECTS
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o Capital spending in the
$200 MM range
o Four CO2 Floods [map]
o 225 wells
o Plant projects at Mallet
& Wasson
[OXY LOGO] June 16, 2004
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EXAMPLE PROJECT: HOBBS CO2 FLOOD
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[photo]
[OXY LOGO] June 16, 2004
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NORTH HOBBS UNIT
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Construction Scope
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50 MMCFD Gas Reinjection Facility
340,000 BWPD Water Reinjection Facility
3 Tank Batteries [graphic]
280,000 feet of Piping
Phase I Project Costs thru 2003
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Surface Facility - $55 mm gross
Develop 20 Patterns - $23 mm gross
[OXY LOGO] June 16, 2004
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2004 EXPLOITATION/EXPLORATION PROGRAMS
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[map]
[OXY LOGO] June 16, 2004
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FUTURE FOCUS
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o Continue development & exploitation drilling
o Implement CO2 project inventory
o Utilize critical mass for cost efficiency
o Leverage technology for recovery enhancement
o Selective property acquisitions & consolidation
[OXY LOGO] June 16, 2004
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SUMMARY
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o Altura acquisition successful - Approaching
payout and continue to grow Permian reserve
base
o Assets produce stady stream of production &
cash
o Size & scope gives Oxy advantage
o To date successful in attracting consolidation &
acquisition opportunities
[OXY LOGO] June 16, 2004
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OCCIDENTAL PETROLEUM CORPORATION
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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.
[OXY LOGO] June 16, 2004
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