UNITED STATES
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) July 23, 2009
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
1-9210 |
95-4035997 |
|
(State or other jurisdiction of incorporation) |
(Commission File Number) |
(I.R.S. Employer 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
Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the Registrant under any of the following provisions (see General Instruction A.2. below):
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Section 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition
On July 23, 2009, Occidental Petroleum Corporation released information regarding its results of operations for the three and six months ended June 30, 2009. The exhibits to this Form 8-K and the information set forth in this Item 2.02 are being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The full text of the press release is attached to this report as Exhibit 99.1. The full text of the speeches given by Dr. Ray R. Irani and Stephen I. Chazen are attached to this report as Exhibit 99.2. Investor Relations Supplemental Schedules are attached to this report as Exhibit 99.3. Earnings Conference Call Slides are attached to this report as Exhibit 99.4. Forward-Looking Statements Disclosure for Earnings Release Presentation Materials are attached to this report as Exhibit 99.5.
Section 9 – Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
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99.1 |
Press release dated July 23, 2009. |
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99.2 |
Full text of speeches given by Dr. Ray R. Irani and Stephen I. Chazen. |
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99.3 |
Investor Relations Supplemental Schedules. |
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99.4 |
Earnings Conference Call Slides. |
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99.5 |
Forward-Looking Statements Disclosure for Earnings Release Presentation Materials. |
1
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.
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OCCIDENTAL PETROLEUM CORPORATION |
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(Registrant) |
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DATE: July 23, 2009 |
/s/ ROY PINECI |
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Roy Pineci, Vice President, Controller and Principal Accounting Officer |
2
EXHIBIT INDEX
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99.1 |
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Press release dated July 23, 2009. |
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99.2 |
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Full text of speeches given by Dr. Ray R. Irani and Stephen I. Chazen. |
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99.3 |
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Investor Relations Supplemental Schedules. |
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99.4 |
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Earnings Conference Call Slides. |
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99.5 |
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Forward-Looking Statements Disclosure for Earnings Release Presentation Materials. |
EXHIBIT 99.1
For Immediate Release: July 23, 2009
Occidental Petroleum Announces Net Income for Second Quarter and First Six Months of 2009
LOS ANGELES, July 23, 2009 - -- Occidental Petroleum Corporation (NYSE: OXY) announced net income of $682 million ($0.84 per diluted share) for the second quarter of 2009, compared with $2.3 billion ($2.78 per diluted share) for the second quarter of 2008.
In announcing the results, Dr. Ray R. Irani, Chairman and Chief Executive Officer, said, "Occidental achieved year-over-year production growth of 10 percent in the second quarter and nearly nine percent in the six months of 2009. Our discovery in Kern County, California which was announced yesterday should also contribute to our future growth."
QUARTERLY RESULTS
Oil and Gas
Oil and gas segment earnings were $1.1 billion for the second quarter of 2009, compared with $3.8 billion for the same period in 2008. The decrease in the second quarter 2009 segment earnings reflected lower crude oil and natural gas prices and higher DD&A rates, partially offset by higher oil and gas sales volumes and lower operating expenses.
For the second quarter of 2009, daily oil and gas sales volumes averaged 649,000 barrels of oil equivalent (BOE), compared with 588,000 BOE sold in the second quarter of 2008. Volumes increased by approximately 3 percent domestically, mainly from California and Midcontinent/Rockies, by about 37 percent in Latin America mostly in Argentina, and by 16 percent in the Middle East/North Africa largely in Oman and Dolphin. California volumes included increases in Long Beach resulting from economic arrangements similar to a production sharing contract and production from new exploration wells in Elk Hills.
Oxy's realized price for worldwide crude oil was $52.97 per barrel for the second quarter of 2009, compared with $110.12 per barrel for the second quarter of 2008. Domestic realized gas prices decreased from $9.99 per MCF in the second quarter of 2008 to $2.87 per MCF for the second quarter of 2009.
Chemicals
Chemical segment earnings for the second quarter 2009 were $115 million, compared with $144 million for the same period in 2008. The second quarter of 2009 results reflect the continued weakness in the U.S. housing, automotive and durable goods sectors resulting in lower volumes for chlorine, caustic soda and polyvinyl chloride. The lower volumes were partially offset by lower feedstock and energy costs.
Midstream, Marketing and Other
Midstream segment earnings were $63 million for the second quarter of 2009, compared with $161 million for the second quarter of 2008. The second quarter of 2009 earnings reflect lower margins in the gas processing, marketing, and power generation businesses.
SIX MONTH RESULTS
Net income for the six months of 2009 was $1.1 billion ($1.29 per diluted share), compared with $4.1 billion ($5.00 per diluted share) for the six months of 2008.
Core results were $1.1 billion ($1.34 per diluted share) for the six months of 2009, compared with $4.1 billion ($4.97 per diluted share) for the six months of 2008.
Oil and Gas
Oil and gas segment earnings were $1.6 billion for the six months of 2009, compared with $6.7 billion for the same period of 2008. The decrease in segment earnings reflected lower crude oil and natural gas prices and higher DD&A rates, partially offset by increased sales volumes and lower operating and administrative costs.
Daily oil and gas sales volumes for the first six months was 651,000 BOE for 2009, compared with 598,000 BOE per day for the same 2008 period. Volumes increased by approximately 4 percent
2
domestically mainly from California and Midcontinent/Rockies, by about 26 percent in Latin America mostly in Argentina, and by 11 percent in the Middle East/North Africa largely due to Oman and Dolphin. Higher volumes in domestic assets included production from new exploration wells in California.
Oxy's worldwide crude oil realized price was $46.05 per barrel for the six months of 2009, compared with $98.16 per barrel for the six months of 2008. Domestic realized gas prices decreased from $9.09 per MCF in the six months of 2008 to $3.20 per MCF in the six months of 2009.
Chemicals
Chemical segment earnings for the six months of 2009 were $284 million, compared with $323 million for the same period of 2008. The 2009 six month results reflect lower volumes for chlorine, caustic soda and polyvinyl chloride due to the economic slowdown, partially offset by lower feedstock and energy costs.
Midstream, Marketing and Other
Midstream segment earnings were $77 million for the six months of 2009, compared with $284 million for the same period in 2008. The earnings decline in 2009 reflects lower margins in the gas processing, power generation, and marketing businesses.
About Oxy
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding high standards of social responsibility in all of the company's worldwide operations.
Forward-Looking Statements
Statements in this release that contain words such as "will," "should," "expect," or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results.
3
Factors that could cause actual results to differ materially include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; exploration risks, such as drilling of unsuccessful wells; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; operational interruptions and changes in tax rates. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
-0-
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Contacts: |
Richard S. Kline (media) |
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richard_kline@oxy.com |
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310-443-6249 |
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Chris Stavros (investors) |
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chris_stavros@oxy.com |
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212-603-8184 |
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For further analysis of Occidental's quarterly
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4
SUMMARY OF SEGMENT NET SALES AND EARNINGS
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(Millions, except |
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Second Quarter |
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Six Months |
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per-share amounts) |
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2009 |
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2008 |
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2009 |
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2008 |
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SEGMENT NET SALES |
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Oil and Gas |
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$ |
2,726 |
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$ |
5,501 |
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$ |
4,863 |
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$ |
10,019 |
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Chemical |
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|
811 |
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1,386 |
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1,603 |
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2,653 |
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Midstream, Marketing and Other |
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250 |
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|
418 |
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478 |
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823 |
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Eliminations |
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(100 |
) |
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(189 |
) |
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(184 |
) |
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(359 |
) |
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Net sales |
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$ |
3,687 |
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$ |
7,116 |
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$ |
6,760 |
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$ |
13,136 |
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SEGMENT EARNINGS |
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Oil and Gas (a), (b) |
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$ |
1,083 |
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$ |
3,806 |
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$ |
1,628 |
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$ |
6,694 |
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Chemical |
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115 |
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144 |
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284 |
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323 |
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Midstream, Marketing and Other |
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63 |
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161 |
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77 |
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284 |
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|
|
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1,261 |
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4,111 |
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1,989 |
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7,301 |
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Unallocated Corporate Items |
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Interest expense, net |
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(23 |
) |
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(7 |
) |
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(43 |
) |
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(7 |
) |
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Income taxes |
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(455 |
) |
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(1,671 |
) |
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(696 |
) |
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(2,965 |
) |
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Other (c) |
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(99 |
) |
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(133 |
) |
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(195 |
) |
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(210 |
) |
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Income from Continuing Operations (a) |
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684 |
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|
2,300 |
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1,055 |
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4,119 |
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Discontinued operations, net |
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(2 |
) |
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(3 |
) |
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(5 |
) |
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24 |
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NET INCOME (a) |
|
$ |
682 |
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$ |
2,297 |
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$ |
1,050 |
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$ |
4,143 |
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BASIC EARNINGS PER COMMON SHARE |
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Income from continuing operations |
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$ |
0.84 |
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$ |
2.79 |
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$ |
1.30 |
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$ |
5.00 |
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Discontinued operations, net |
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|
— |
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— |
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|
(0.01 |
) |
|
0.03 |
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|
|
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$ |
0.84 |
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$ |
2.79 |
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$ |
1.29 |
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$ |
5.03 |
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DILUTED EARNINGS PER COMMON SHARE (d) |
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|
|
|
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|
|
|
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|
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Income from continuing operations |
|
$ |
0.84 |
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$ |
2.78 |
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$ |
1.30 |
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$ |
4.97 |
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Discontinued operations, net |
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|
— |
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|
— |
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(0.01 |
) |
|
0.03 |
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|
|
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$ |
0.84 |
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$ |
2.78 |
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$ |
1.29 |
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$ |
5.00 |
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AVERAGE BASIC COMMON SHARES OUTSTANDING (d) |
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|
|
|
|
|
|
|
|
|
|
|
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BASIC |
|
|
811.0 |
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|
821.3 |
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810.8 |
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822.5 |
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DILUTED |
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814.0 |
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825.2 |
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813.7 |
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826.6 |
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See footnotes on following page.
5
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(a) |
Net Income - Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $12 million and $37 million for the second quarter and $21 million and $66 million for the six months ended June 30, 2009 and 2008, respectively. Oil and gas segment earnings are also presented net of these non-controlling interest amounts. |
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(b) |
Oil and Gas - The six months of 2009 includes an $8 million pre-tax charge for rig contract termination costs. |
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(c) |
Unallocated Corporate Items - Other - The second quarter of 2009 includes a pre-tax charge of $8 million related to severance. The first six months of 2009 includes additional pre-tax charges of $32 million for severance and $15 million for railcar leases. |
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(d) |
Earnings Per Share - The 2008 earnings per share amounts reflect the adoption on January 1, 2009 of FSP NO. EITF 03-06-1 dealing with participating securities. |
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
|
|
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Second Quarter |
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Six Months |
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($ millions) |
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2009 |
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2008 |
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|
2009 |
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|
2008 |
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|
CAPITAL EXPENDITURES |
|
$ |
831 |
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$ |
1,038 |
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$ |
1,902 |
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$ |
1,871 |
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DEPRECIATION, DEPLETION AND |
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AMORTIZATION OF ASSETS |
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$ |
742 |
|
$ |
621 |
|
$ |
1,528 |
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$ |
1,274 |
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|
|
|
|
|
|
|
|
|
|
|
|
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ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS
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Income/(Expense) |
|
Second Quarter |
|
Six Months |
| ||||||||
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($ millions) |
|
|
2009 |
|
|
2008 |
|
|
2009 |
|
|
2008 |
|
|
Foreign exchange gains and (losses)* |
|
$ |
(6 |
) |
$ |
(4 |
) |
$ |
31 |
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$ |
(5 |
) |
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|
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|
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|
|
|
|
|
|
|
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*Amounts shown after tax.
6
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
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Six Months |
| ||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
|
NET OIL, GAS AND LIQUIDS |
|
|
|
|
|
|
|
|
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SALES PER DAY |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
90 |
|
84 |
|
93 |
|
86 |
|
|
Permian |
|
167 |
|
169 |
|
168 |
|
170 |
|
|
Midcontinent/Rockies |
|
10 |
|
5 |
|
10 |
|
4 |
|
|
Total |
|
267 |
|
258 |
|
271 |
|
260 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
California |
|
232 |
|
238 |
|
224 |
|
241 |
|
|
Permian |
|
197 |
|
190 |
|
196 |
|
184 |
|
|
Midcontinent/Rockies |
|
192 |
|
174 |
|
201 |
|
166 |
|
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Total |
|
621 |
|
602 |
|
621 |
|
591 |
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|
Latin America |
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
37 |
|
22 |
|
41 |
|
29 |
|
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Colombia |
|
48 |
|
43 |
|
47 |
|
43 |
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|
Total |
|
85 |
|
65 |
|
88 |
|
72 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
30 |
|
14 |
|
32 |
|
18 |
|
|
Bolivia |
|
19 |
|
21 |
|
17 |
|
21 |
|
|
Total |
|
49 |
|
35 |
|
49 |
|
39 |
|
|
Middle East/North Africa |
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
|
|
|
|
|
|
|
|
|
Oman |
|
38 |
|
21 |
|
36 |
|
20 |
|
|
Dolphin |
|
25 |
|
19 |
|
23 |
|
20 |
|
|
Qatar |
|
50 |
|
45 |
|
49 |
|
46 |
|
|
Yemen |
|
23 |
|
20 |
|
27 |
|
23 |
|
|
Libya |
|
8 |
|
27 |
|
7 |
|
23 |
|
|
Total |
|
144 |
|
132 |
|
142 |
|
132 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Oman |
|
23 |
|
25 |
|
23 |
|
23 |
|
|
Dolphin |
|
242 |
|
163 |
|
224 |
|
182 |
|
|
Total |
|
265 |
|
188 |
|
247 |
|
205 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
652 |
|
593 |
|
654 |
|
603 |
|
|
Colombia-minority interest |
|
(6 |
) |
(7 |
) |
(6 |
) |
(7 |
) |
|
Yemen-Occidental net interest |
|
3 |
|
2 |
|
3 |
|
2 |
|
|
Total Worldwide Sales Volumes - MBOE |
|
649 |
|
588 |
|
651 |
|
598 |
|
|
|
|
|
|
|
|
|
|
|
|
7
SUMMARY OF OPERATING STATISTICS - PRODUCTION
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 |
|
|
NET OIL, GAS AND LIQUIDS |
|
|
|
|
|
|
|
|
|
|
PRODUCTION PER DAY |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
267 |
|
258 |
|
271 |
|
260 |
|
|
Natural Gas (MMCF) |
|
621 |
|
602 |
|
621 |
|
591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
38 |
|
24 |
|
38 |
|
30 |
|
|
Colombia |
|
47 |
|
43 |
|
47 |
|
42 |
|
|
Total |
|
85 |
|
67 |
|
85 |
|
72 |
|
|
Natural Gas (MMCF) |
|
49 |
|
35 |
|
49 |
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East/North Africa |
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
|
|
|
|
|
|
|
|
|
Oman |
|
38 |
|
21 |
|
36 |
|
20 |
|
|
Dolphin |
|
25 |
|
19 |
|
23 |
|
20 |
|
|
Qatar |
|
46 |
|
48 |
|
49 |
|
47 |
|
|
Yemen |
|
26 |
|
20 |
|
27 |
|
23 |
|
|
Libya |
|
7 |
|
20 |
|
8 |
|
21 |
|
|
Total |
|
142 |
|
128 |
|
143 |
|
131 |
|
|
Natural Gas (MMCF) |
|
265 |
|
188 |
|
247 |
|
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
650 |
|
590 |
|
652 |
|
602 |
|
|
Colombia-minority interest |
|
(6 |
) |
(6 |
) |
(6 |
) |
(6 |
) |
|
Yemen-Occidental net interest |
|
3 |
|
2 |
|
3 |
|
2 |
|
|
Total Worldwide Production Volumes - MBOE |
|
647 |
|
586 |
|
649 |
|
598 |
|
|
|
|
|
|
|
|
|
|
|
|
8
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
Occidental's results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called "core results," which excludes those items. This non-GAAP measure is not meant to disassociate those items from management's performance, but rather is meant to provide useful information to investors interested in comparing Occidental's earnings performance between periods. Reported earnings are considered representative of management's performance over the long term. Core results is not considered to be an alternative to operating income in accordance with generally accepted accounting principles.
9
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS
|
|
|
Second Quarter |
| ||||||||||
|
($ millions, except |
|
|
|
|
Diluted |
|
|
|
|
Diluted |
| ||
|
per-share amounts) |
|
|
2009 |
|
|
EPS |
|
|
2008 |
|
|
EPS |
|
|
TOTAL REPORTED EARNINGS* |
|
$ |
682 |
|
$ |
0.84 |
|
$ |
2,297 |
|
$ |
2.78 |
|
|
Oil and Gas* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
$ |
1,083 |
|
|
|
|
$ |
3,806 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No significant items affecting earnings |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
1,083 |
|
|
|
|
|
3,806 |
|
|
|
|
|
Chemicals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
|
115 |
|
|
|
|
|
144 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No significant items affecting earnings |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
115 |
|
|
|
|
|
144 |
|
|
|
|
|
Midstream, marketing and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
|
63 |
|
|
|
|
|
161 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No significant items affecting earnings |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
63 |
|
|
|
|
|
161 |
|
|
|
|
|
Total Segment Core Results |
|
|
1,261 |
|
|
|
|
|
4,111 |
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results — Non Segment** |
|
|
(579 |
) |
|
|
|
|
(1,814 |
) |
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance accrual |
|
|
8 |
|
|
|
|
|
— |
|
|
|
|
|
Tax effect of pre-tax adjustments |
|
|
(3 |
) |
|
|
|
|
— |
|
|
|
|
|
Discontinued operations, net*** |
|
|
2 |
|
|
|
|
|
3 |
|
|
|
|
|
Corporate Core Results — Non Segment |
|
|
(572 |
) |
|
|
|
|
(1,811 |
) |
|
|
|
|
TOTAL CORE RESULTS |
|
$ |
689 |
|
$ |
0.85 |
|
$ |
2,300 |
|
$ |
2.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents amounts attributable to common stock, after deducting non-controlling interest of $12 million and $37 million for the second quarter 2009 and 2008, respectively. |
|
** |
Net interest expense, income taxes, G&A expense and other. |
|
*** |
Amounts shown after tax. |
10
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
|
|
|
Six Months |
| ||||||||||
|
($ millions, except |
|
|
|
|
Diluted |
|
|
|
|
Diluted |
| ||
|
per-share amounts) |
|
|
2009 |
|
|
EPS |
|
|
2008 |
|
|
EPS |
|
|
TOTAL REPORTED EARNINGS* |
|
$ |
1,050 |
|
$ |
1.29 |
|
$ |
4,143 |
|
$ |
5.00 |
|
|
Oil and Gas* |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
$ |
1,628 |
|
|
|
|
$ |
6,694 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rig terminations |
|
|
8 |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
1,636 |
|
|
|
|
|
6,694 |
|
|
|
|
|
Chemicals |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
|
284 |
|
|
|
|
|
323 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No significant items affecting earnings |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
284 |
|
|
|
|
|
323 |
|
|
|
|
|
Midstream, marketing and other |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
|
77 |
|
|
|
|
|
284 |
|
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
No significant items affecting earnings |
|
|
— |
|
|
|
|
|
— |
|
|
|
|
|
Segment Core Results |
|
|
77 |
|
|
|
|
|
284 |
|
|
|
|
|
Total Segment Core Results |
|
|
1,997 |
|
|
|
|
|
7,301 |
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate Results — Non Segment** |
|
|
(939 |
) |
|
|
|
|
(3,158 |
) |
|
|
|
|
Add: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Severance accruals |
|
|
40 |
|
|
|
|
|
— |
|
|
|
|
|
Railcar leases |
|
|
15 |
|
|
|
|
|
— |
|
|
|
|
|
Tax effect of pre-tax adjustments |
|
|
(22 |
) |
|
|
|
|
— |
|
|
|
|
|
Discontinued operations, net*** |
|
|
5 |
|
|
|
|
|
(24 |
) |
|
|
|
|
Corporate Core Results — Non Segment |
|
|
(901 |
) |
|
|
|
|
(3,182 |
) |
|
|
|
|
TOTAL CORE RESULTS |
|
$ |
1,096 |
|
$ |
1.34 |
|
$ |
4,119 |
|
$ |
4.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* |
Represents amounts attributable to common stock, after deducting non-controlling interest of $21 million and $66 million for the six months 2009 and 2008, respectively. |
|
** |
Net interest expense, income taxes, G&A expense and other. |
|
*** |
Amounts shown after tax. |
11
EXHIBIT 99.2
Occidental Petroleum Corporation
DR. RAY R. IRANI
Chairman and Chief Executive Officer
– Conference Call –
Second Quarter 2009 Earnings Announcement
July 23, 2009
Los Angeles, California
Thank you, Chris, and good morning ladies and gentlemen. Thank you for joining us today.
After yesterday’s market close, we announced a significant discovery of oil and gas reserves in Kern County, California. We believe it to be the largest new oil and gas discovery made in the state in more than 35 years.
This new field discovery, within the outlined area of the six wells we have drilled to date, contains 150 million to 250 million gross barrels equivalent of oil and gas reserves. We believe it is probable that there are additional reserves outside the outlined area. Mr. Steve Chazen will give you more details about this exciting program later on.
It is also possible that there are similar accumulations elsewhere in Oxy’s 1.1 million-acre net leasehold and fee mineral holdings in California.
Let me share with you how we got to our current exciting and rewarding position.
Oxy has been a California oil and gas producer for more than 50 years. Our most significant expansion was in 1998, with our acquisition of the Elk Hills field from the U.S. government.
When Elk Hills was acquired by Oxy in 1998 it had approximately 425 million BOE of proved reserves. Since then, it has produced more than 364 million BOE. Yet – as a result of the technology applied by Oxy over the past
1
11 years –we have actually been able to increase its proved reserves to more than 491 million BOE today. The total production and proved reserves since Oxy acquired the Elk Hills field is approaching one billion BOE.
In the years immediately following the Elk Hills acquisition, we purchased THUMS, our operation in Long Beach Harbor, followed by our acquisition of a number of additional California properties. Those include oil and gas assets from Vintage Petroleum, Plains, Tidelands in Long Beach near THUMS, as well as other properties.
Oxy’s current combined California assets include more than 7,500 active wells located in 90 fields spanning 600 miles. They are currently producing approximately 130,000 BOE per day, 71 percent of which is oil, and at year-end 2008 had approximately 708 million BOE of proved reserves. California represents approximately 20 percent of Oxy’s worldwide production.
Oxy is currently the third-largest oil producer in California and the largest natural gas producer. We see additional potential in our California holdings by our applying current technologies and the newest thinking to exploration and production. We have invested in California exploration accordingly, and we expect this activity to continue for the next five to ten years.
Oxy’s California and U.S. exploration and production program is part of an overall effort to build a pipeline of growth projects in keeping with our long-term strategy for increasing stockholder value. In addition, we continue to grow in our other core regions.
Oxy’s presence and production in the Middle East – currently producing approximately 186,000 BOE per day or 29 percent of our total production – continues to expand.
In recent months we have signed new agreements in Bahrain, Abu Dhabi and Oman, where we have an agreement to develop four gas fields in a newly formed contract area. First production at those assets is expected in the near future.
2
Also in Oman, production at the Mukhaizna oil field, where we have a large-scale steam flood project, is meeting its targets and growing. We are on pace to achieve an exit rate of 80,000 barrels per day at the close of 2009.
I’ll now turn the call over to Steve Chazen to give you our second quarter financial results and other details.
###
3
Occidental Petroleum Corporation
STEPHEN CHAZEN
President and Chief Financial Officer
– Conference Call –
Second Quarter 2009 Earnings Announcement
July 23, 2009
Los Angeles, California
Thank you Ray.
Net income was $682 million in the second quarter of 2009, compared to $2.3 billion in the second quarter of 2008.
Here’s the segment breakdown for the second quarter.
Oil and gas second quarter 2009 segment earnings were $1.1 billion, compared to $3.8 billion for the second quarter of 2008.
|
|
• |
The $2.7 billion decrease in the second quarter of 2009 earnings was due to lower crude oil and natural gas prices and higher DD&A rates; partially offset by higher sales volumes and lower operating expenses. Occidental’s average realized crude oil price in the 2009 second quarter was $52.97 per barrel, a decrease of 52 percent from the $110.12 per barrel in the comparable period of 2008. Oxy’s domestic average realized gas price for the quarter was $2.87 per mcf, compared with $9.99 per mcf for the second quarter of 2008. |
4
|
|
• |
Worldwide oil and gas sales volumes for the second quarter of 2009 were 649,000 barrels of oil equivalent per day, an increase of 10 percent, compared with 588,000 BOE per day in the second quarter of last year. The increase includes 20,000 BOE per day from Dolphin, 18,000 BOE per day from Argentina, 17,000 BOE per day from Oman and 12,000 BOE per day from domestic operations; partially offset by 19,000 BOE per day from Libya. |
|
|
o |
The Argentina increase includes 8,000 BOE per day from new production coming on line and the effect of a 15,000 BOE per day production loss due to a strike in the second quarter of 2008, partially offset by a 5,000 BOE per day loss from a strike in June 2009. |
|
|
o |
Dolphin's increase reflects higher cost recovery volumes in the second quarter of 2009 resulting from a catch-up of unrecovered volumes from the first quarter of 2009. |
|
|
o |
Substantially all of the domestic volume increase in the Midcontinent/Rockies and Permian was attributable to 2008 acquisitions. California production increased as a result of new wells. Compared to the first quarter of 2009, Long Beach production decreased by 6,000 BOE per day due to its contract that is similar to a production sharing agreement. |
|
|
o |
The Middle East/North Africa included higher production in Oman and Dolphin and higher production sharing volumes compared to last year's second quarter. Compared to the first quarter of 2009, production sharing volumes decreased by 14,000 BOE per day. |
5
|
|
• |
Exploration expense was $54 million in the quarter, in line with our guidance of $60 million. |
Oil and gas cash production costs, excluding production and property taxes, were $10.32 a barrel for the first six months of 2009, a 15 percent decline from last year's twelve-month costs of $12.13 a barrel. In the second quarter of 2009, Oil & Gas cash production costs declined to $10.17 per BOE, compared to the first quarter of 2009 run rate of $10.48 per BOE. These declines are due to lower workover, maintenance and utilities costs and for the change from prior year, the effect of higher production sharing volumes. The lower costs reflect our continued cost reduction efforts.
Taxes – other than on income were $1.76 per barrel for the first six months of 2009 compared to $2.62 per barrel for all of 2008. These costs, which are sensitive to product prices, reflect lower crude oil and gas prices in the first half of 2009. In the second quarter of 2009 these taxes increased to $1.82 per BOE, compared to the first quarter of 2009 rate of $1.71 per BOE, due to higher crude oil prices.
Chemical segment earnings for the second quarter of 2009 were $115 million, compared to our guidance of $100 million. The higher earnings were attributable primarily to higher than expected chlorine pricing. Chemicals earned $144 million in last year's second quarter.
Midstream segment earnings for the second quarter of 2009 were $63 million, compared to $161 million in the second quarter of 2008. The decline in earnings was due to lower NGL realized prices in the gas processing business, lower earnings in crude oil marketing and reduced margins in the power generation business.
6
The worldwide effective tax rate was 40 percent for the second quarter of 2009, compared with our guidance of 43 percent. The decrease in rate reflects a higher proportion of expected total year domestic source pre-tax income.
Let me now turn to Occidental's performance during the first six months.
Net income was $1.1 billion for the first six months of 2009, compared with $4.1 billion for the first six months of 2008.
Capital spending for the second quarter of 2009 was $831 million and $1.9 billion for the first six months. We currently anticipate total year 2009 capital spending to be at $3.6 billion. The $100 million increase from our last estimate is mostly allocated to foreign Oil & Gas locations.
Cash flow from operations for the six months of 2009 was $2.2 billion. We used $2.4 billion of the company’s cash flow to fund capital expenditures, acquisitions and signing bonus payments in Libya and Oman and $520 million to pay dividends. In the second quarter we issued $750 million of 4.125% senior notes due in 2016, with net proceeds from the offering of $740 million. The cash balance at June 30 was $1.8 billion.
The weighted average basic shares outstanding for the six months were 810.8 million and the weighted average diluted shares outstanding were 813.7 million.
As we look ahead in the current quarter:
|
|
• |
We expect oil and gas sales volumes to be similar to second quarter levels, at about current oil prices. The third quarter production is expected to reflect decreases from Midcontinent/Rockies due to natural declines and Dolphin due to its production sharing contract, offset by increases in California, Argentina and Oman. |
With regard to prices - -
7
|
|
• |
At current market prices, a $1.00 per barrel change in oil prices impacts oil and gas quarterly earnings before income taxes by about $39 million. The average second quarter WTI oil price was $59.62. |
|
|
• |
A swing of 50-cents per million BTUs in domestic gas prices has a $20 million impact on quarterly earnings before income taxes. While current NYMEX gas price is around $3.70, prices in California are currently about $3.50, in the Permian about $3.30, and the Rockies gas is in the $3.00 range. |
Additionally -
|
|
• |
We expect exploration expense to be about $50 million for seismic and drilling for our exploration programs. |
|
|
• |
For the chemical segment, the second half of the year looks exceptionally weak. The weakness in caustic soda is not being offset by chlorine price increases, resulting in declines in margins. The fourth quarter is traditionally the weakest for this business and we currently expect it to be about break even. We expect the third quarter chemical earnings to fall at least 50 percent from the second quarter level. |
|
|
• |
We expect our combined worldwide tax rate in the third quarter of 2009 to be in the range of 40 to 42 percent depending on the split between domestic and foreign sourced income. Our second quarter U. S. and foreign tax rates are included in the “Investor Relations Supplemental Schedule.” |
|
|
• |
California Exploration – Excluding the Kern County discovery discussed in yesterday's press release, over the course of little over a year, we have drilled 34 exploration wells seeking non-traditional hydrocarbon bearing zones in California. Of these wells, 9 are |
8
commercial and 16 are currently being evaluated. We expect to drill an additional 8 exploration wells in 2009. Occidental holds 1.1 million acres of net fee minerals and leasehold in California, which have been acquired in the last few years to exploit these opportunities. Discoveries similar to the Kern County discovery are possible in this net acre position. Additionally, we continue to pursue shale production which is expected to produce oil on this acreage.
|
|
• |
As we announced yesterday, we made a significant conventional (i.e. non-shale-without stimulation) discovery in Kern County, California. We believe there are between 150 million and 250 million gross BOE reserves within the small producing area delineated by the six wells drilled to date. The discovery area's multiple producing zones, whose areal geological extent is still being defined, consists of both conventional oil and conventional gas bearing zones. It is probable that there are additional reserves outside the currently defined area as the field limits have not yet been seen. This is a classic oil and gas field with large pay zones with high permeabilities. It is most similar to a deep water discovery and bears no relationship at all to so called resource plays. |
|
|
• |
In the Kern County discovery area, we are currently producing from six wells approximately 74 million cubic feet of gas and 5,000 barrels of liquids per day, which is more than double the daily BOE production we disclosed last quarter. All of this production comes from conventional zones. While there will be oil production from shale zones in this area, the bulk of the future production will come from conventional wells. During 2009, we expect to drill an additional 17 wells. The wells in this area cost about $3.5 to $4.0 |
9
million to drill and complete and have payout periods of less than six months. The combined finding, development and lifting costs are expected to be significantly less than $10 per BOE. We will also need to expand our 400 million cubic feet per day gas processing plant in Elk Hills to accommodate the expected production from this Kern County discovery. Our overall working and revenue interest in this discovery is about 80%.
|
|
• |
No additional details will be provided at this time. We expect to update the production information next quarter. |
|
|
• |
Copies of the press release announcing our second quarter earnings and the Investor Relations Supplemental Schedules are available on our website at www.oxy.com or through the SEC’s EDGAR system. |
Now we’re ready to take your questions.
10
EXHIBIT 99.3
Investor Relations Supplemental Schedules
Investor Relations Supplemental Schedules
Summary
($ Millions)
|
|
|
2Q 2009 |
|
2Q 2008 |
|
|
|
|
|
|
|
|
|
Reported Net Income |
|
$682 |
|
$2,297 |
|
|
EPS - Diluted |
|
$0.84 |
|
$2.78 |
|
|
|
|
|
|
|
|
|
Core Results |
|
$689 |
|
$2,300 |
|
|
EPS - Diluted |
|
$0.85 |
|
$2.78 |
|
|
|
|
|
|
|
|
|
Total Worldwide Sales Volumes (mboe/day) |
|
649 |
|
588 |
|
|
|
|
|
|
|
|
|
Total Worldwide Crude Oil Realizations ($/BBL) |
|
$52.97 |
|
$110.12 |
|
|
Domestic Natural Gas Realizations ($/MCF) |
|
$2.87 |
|
$9.99 |
|
|
|
|
|
|
|
|
|
Wtd. Average Basic Shares O/S (mm) |
|
811.0 |
|
821.3 |
|
|
Wtd. Average Diluted Shares O/S (mm) |
|
814.0 |
|
825.2 |
|
|
|
|
|
|
|
|
|
Shares Outstanding (mm) |
|
810.8 |
|
817.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
YTD 2009 |
|
YTD 2008 |
|
|
|
|
|
|
|
|
|
Reported Net Income |
|
$1,050 |
|
$4,143 |
|
|
EPS - Diluted |
|
$1.29 |
|
$5.00 |
|
|
|
|
|
|
|
|
|
Core Results |
|
$1,096 |
|
$4,119 |
|
|
EPS - Diluted |
|
$1.34 |
|
$4.97 |
|
|
|
|
|
|
|
|
|
Total Worldwide Sales Volumes (mboe/day) |
|
651 |
|
598 |
|
|
|
|
|
|
|
|
|
Total Worldwide Crude Oil Realizations ($/BBL) |
|
$46.05 |
|
$98.16 |
|
|
Domestic Natural Gas Realizations ($/MCF) |
|
$3.20 |
|
$9.09 |
|
|
|
|
|
|
|
|
|
Wtd. Average Basic Shares O/S (mm) |
|
810.8 |
|
822.5 |
|
|
Wtd. Average Diluted Shares O/S (mm) |
|
813.7 |
|
826.6 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flow from Operations |
|
2,200 |
|
5,000 |
|
1
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2009 Second Quarter
Net Income (Loss)
($ millions)
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | ||||||||
|
Oil & Gas |
$ |
1,083 |
|
|
|
|
|
|
|
|
$ |
1,083 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
115 |
|
|
|
|
|
|
|
|
|
115 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
63 |
|
|
|
|
|
|
|
|
|
63 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(23 |
) |
|
|
|
|
|
|
|
|
(23 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(99 |
) |
|
|
8 |
|
|
Severance |
|
|
(91 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(455 |
) |
|
|
(3 |
) |
|
Tax effect of adjustments |
|
|
(458 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
684 |
|
|
|
5 |
|
|
|
|
|
689 |
|
|
Discontinued operations, net of tax |
|
(2 |
) |
|
|
2 |
|
|
Discontinued operations, net |
|
— |
| |
|
Net Income |
$ |
682 |
|
|
$ |
7 |
|
|
|
|
$ |
689 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
0.84 |
|
|
|
|
|
|
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
0.84 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
0.84 |
|
|
|
|
|
|
|
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2008 Second Quarter
Net Income (Loss)
($ millions)
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | ||||||||
|
Oil & Gas |
$ |
3,806 |
|
|
|
|
|
|
|
|
$ |
3,806 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
144 |
|
|
|
|
|
|
|
|
|
144 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
161 |
|
|
|
|
|
|
|
|
|
161 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(7 |
) |
|
|
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(133 |
) |
|
|
|
|
|
|
|
|
(133 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(1,671 |
) |
|
|
|
|
|
|
|
|
(1,671 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
2,300 |
|
|
|
— |
|
|
|
|
|
2,300 |
|
|
Discontinued operations, net of tax |
|
(3 |
) |
|
|
3 |
|
|
Discontinued operations, net |
|
— |
| |
|
Net Income |
$ |
2,297 |
|
|
$ |
3 |
|
|
|
|
$ |
2,300 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
2.79 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
2.79 |
|
|
|
|
|
|
|
|
$ |
2.80 |
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
2.78 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
2.78 |
|
|
|
|
|
|
|
|
$ |
2.78 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2009 First Six Months
Net Income (Loss)
($ millions)
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | ||||||||
|
Oil & Gas |
$ |
1,628 |
|
|
$ |
8 |
|
|
Rig terminations |
|
$ |
1,636 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
284 |
|
|
|
|
|
|
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
77 |
|
|
|
|
|
|
|
|
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(43 |
) |
|
|
|
|
|
|
|
|
(43 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(195 |
) |
|
|
40 |
|
|
Severance |
|
|
(140 |
) |
|
|
|
|
|
|
|
15 |
|
|
Railcar leases |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(696 |
) |
|
|
(22 |
) |
|
Tax effect of adjustments |
|
|
(718 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
1,055 |
|
|
|
41 |
|
|
|
|
|
1,096 |
|
|
Discontinued operations, net of tax |
|
(5 |
) |
|
|
5 |
|
|
Discontinued operations, net |
|
— |
| |
|
Net Income |
$ |
1,050 |
|
|
$ |
46 |
|
|
|
|
$ |
1,096 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
1.29 |
|
|
|
|
|
|
|
|
$ |
1.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
1.30 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
(0.01 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
1.29 |
|
|
|
|
|
|
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
4
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2008 First Six Months
Net Income (Loss)
($ millions)
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | ||||||||
|
Oil & Gas |
$ |
6,694 |
|
|
|
|
|
|
|
|
$ |
6,694 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
323 |
|
|
|
|
|
|
|
|
|
323 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
284 |
|
|
|
|
|
|
|
|
|
284 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(7 |
) |
|
|
|
|
|
|
|
|
(7 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(210 |
) |
|
|
|
|
|
|
|
|
(210 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(2,965 |
) |
|
|
|
|
|
|
|
|
(2,965 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
4,119 |
|
|
|
— |
|
|
|
|
|
4,119 |
|
|
Discontinued operations, net of tax |
|
24 |
|
|
|
(24 |
) |
|
Discontinued operations, net |
|
— |
| |
|
Net Income |
$ |
4,143 |
|
|
$ |
(24 |
) |
|
|
|
$ |
4,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
5.00 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
5.03 |
|
|
|
|
|
|
|
|
$ |
5.00 |
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
$ |
4.97 |
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
0.03 |
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
$ |
5.00 |
|
|
|
|
|
|
|
|
$ |
4.97 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Items Affecting Comparability of Core Results Between Periods
The item(s) below are included in core results and are shown in this table because they affect the comparability between periods.
|
Pre-tax |
|
|
|
|
|
|
|
|
|
|
|
|
Income / (Expense) |
Second Quarter |
|
Six Months | ||||||||
|
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
Foreign Exchange Gains & (Losses) |
(6 |
) |
|
(4 |
) |
|
31 |
|
|
(5 |
) |
6
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
|
|
QUARTERLY |
|
YEAR-TO-DATE | |||||||||||
|
|
2009 |
|
2009 |
|
2008 |
|
2009 |
|
2008 | |||||
|
REPORTED INCOME |
QTR 2 |
|
QTR 1 |
|
QTR 2 |
|
6 Months |
|
6 Months | |||||
|
Oil & Gas (a) |
1,083 |
|
|
545 |
|
|
3,806 |
|
|
1,628 |
|
|
6,694 |
|
|
Chemicals |
115 |
|
|
169 |
|
|
144 |
|
|
284 |
|
|
323 |
|
|
Midstream, marketing and other |
63 |
|
|
14 |
|
|
161 |
|
|
77 |
|
|
284 |
|
|
Corporate & other |
(122 |
) |
|
(116 |
) |
|
(140 |
) |
|
(238 |
) |
|
(217 |
) |
|
Pre-tax income |
1,139 |
|
|
612 |
|
|
3,971 |
|
|
1,751 |
|
|
7,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
148 |
|
|
12 |
|
|
801 |
|
|
160 |
|
|
1,407 |
|
|
Foreign (a) |
307 |
|
|
229 |
|
|
870 |
|
|
536 |
|
|
1,558 |
|
|
Total |
455 |
|
|
241 |
|
|
1,671 |
|
|
696 |
|
|
2,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
684 |
|
|
371 |
|
|
2,300 |
|
|
1,055 |
|
|
4,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
40% |
|
39% |
|
42% |
|
40% |
|
42% | |||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2009 |
|
2009 |
|
2008 |
|
2009 |
|
2008 | |||||
|
CORE RESULTS |
QTR 2 |
|
QTR 1 |
|
QTR 2 |
|
6 Months |
|
6 Months | |||||
|
Oil & Gas (a) |
1,083 |
|
|
553 |
|
|
3,806 |
|
|
1,636 |
|
|
6,694 |
|
|
Chemicals |
115 |
|
|
169 |
|
|
144 |
|
|
284 |
|
|
323 |
|
|
Midstream, marketing and other |
63 |
|
|
14 |
|
|
161 |
|
|
77 |
|
|
284 |
|
|
Corporate & other |
(114 |
) |
|
(69 |
) |
|
(140 |
) |
|
(183 |
) |
|
(217 |
) |
|
Pre-tax income |
1,147 |
|
|
667 |
|
|
3,971 |
|
|
1,814 |
|
|
7,084 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
151 |
|
|
31 |
|
|
801 |
|
|
182 |
|
|
1,407 |
|
|
Foreign (a) |
307 |
|
|
229 |
|
|
870 |
|
|
536 |
|
|
1,558 |
|
|
Total |
458 |
|
|
260 |
|
|
1,671 |
|
|
718 |
|
|
2,965 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core results |
689 |
|
|
407 |
|
|
2,300 |
|
|
1,096 |
|
|
4,119 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
40% |
|
39% |
|
42% |
|
40% |
|
42% | |||||
(a) Revenues and income tax expense include taxes owed by Occidental but paid by governmental entities on its behalf. Oil and gas pre-tax income includes the following revenue amounts by periods.
|
|
2009 |
|
2009 |
|
2008 |
|
2009 |
|
2008 | |||||
|
|
QTR 2 |
|
QTR 1 |
|
QTR 2 |
|
6 Months |
|
6 Months | |||||
|
|
287 |
|
|
202 |
|
|
582 |
|
|
489 |
|
|
1,070 |
|
7
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2009 Second Quarter Net Income (Loss)
Reported Income Comparison
|
|
Second |
|
First |
|
|
|
| ||||
|
|
Quarter |
|
Quarter |
|
|
|
| ||||
|
|
2009 |
|
2009 |
|
B / (W) | ||||||
|
Oil & Gas |
$ |
1,083 |
|
|
$ |
545 |
|
|
$ |
538 |
|
|
Chemical |
|
115 |
|
|
|
169 |
|
|
|
(54 |
) |
|
Midstream, marketing and other |
|
63 |
|
|
|
14 |
|
|
|
49 |
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(23 |
) |
|
|
(20 |
) |
|
|
(3 |
) |
|
Other |
|
(99 |
) |
|
|
(96 |
) |
|
|
(3 |
) |
|
Taxes |
|
(455 |
) |
|
|
(241 |
) |
|
|
(214 |
) |
|
Income from continuing operations |
|
684 |
|
|
|
371 |
|
|
|
313 |
|
|
Discontinued operations, net |
|
(2 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
Net Income |
$ |
682 |
|
|
$ |
368 |
|
|
$ |
314 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.84 |
|
|
$ |
0.45 |
|
|
$ |
0.39 |
|
|
Diluted |
$ |
0.84 |
|
|
$ |
0.45 |
|
|
$ |
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
40% |
|
|
39% |
|
|
-1% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
OCCIDENTAL PETROLEUM
2009 Second Quarter Net Income (Loss)
Core Results Comparison
|
|
Second |
|
First |
|
|
|
| ||||
|
|
Quarter |
|
Quarter |
|
|
|
| ||||
|
|
2009 |
|
2009 |
|
B / (W) | ||||||
|
Oil & Gas |
$ |
1,083 |
|
|
$ |
553 |
|
|
$ |
530 |
|
|
Chemical |
|
115 |
|
|
|
169 |
|
|
|
(54 |
) |
|
Midstream, marketing and other |
|
63 |
|
|
|
14 |
|
|
|
49 |
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(23 |
) |
|
|
(20 |
) |
|
|
(3 |
) |
|
Other |
|
(91 |
) |
|
|
(49 |
) |
|
|
(42 |
) |
|
Taxes |
|
(458 |
) |
|
|
(260 |
) |
|
|
(198 |
) |
|
Core Results |
$ |
689 |
|
|
$ |
407 |
|
|
$ |
282 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.85 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
|
Diluted |
$ |
0.85 |
|
|
$ |
0.50 |
|
|
$ |
0.35 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
40% |
|
|
39% |
|
|
-1% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
8
Investor Relations Supplemental Schedules
9
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2009 Second Quarter Net Income (Loss)
Reported Income Comparison
|
|
Second |
|
Second |
|
|
|
| ||||
|
|
Quarter |
|
Quarter |
|
|
|
| ||||
|
|
2009 |
|
2008 |
|
B / (W) | ||||||
|
Oil & Gas |
$ |
1,083 |
|
|
$ |
3,806 |
|
|
$ |
(2,723 |
) |
|
Chemical |
|
115 |
|
|
|
144 |
|
|
|
(29 |
) |
|
Midstream, marketing and other |
|
63 |
|
|
|
161 |
|
|
|
(98 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(23 |
) |
|
|
(7 |
) |
|
|
(16 |
) |
|
Other |
|
(99 |
) |
|
|
(133 |
) |
|
|
34 |
|
|
Taxes |
|
(455 |
) |
|
|
(1,671 |
) |
|
|
1,216 |
|
|
Income from continuing operations |
|
684 |
|
|
|
2,300 |
|
|
|
(1,616 |
) |
|
Discontinued operations, net |
|
(2 |
) |
|
|
(3 |
) |
|
|
1 |
|
|
Net Income |
$ |
682 |
|
|
$ |
2,297 |
|
|
$ |
(1,615 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.84 |
|
|
$ |
2.79 |
|
|
$ |
(1.95 |
) |
|
Diluted |
$ |
0.84 |
|
|
$ |
2.78 |
|
|
$ |
(1.94 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
40% |
|
|
42% |
|
|
2% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
OCCIDENTAL PETROLEUM
2009 Second Quarter Net Income (Loss)
Core Results Comparison
|
|
Second |
|
Second |
|
|
|
| ||||
|
|
Quarter |
|
Quarter |
|
|
|
| ||||
|
|
2009 |
|
2008 |
|
B / (W) | ||||||
|
Oil & Gas |
$ |
1,083 |
|
|
$ |
3,806 |
|
|
$ |
(2,723 |
) |
|
Chemical |
|
115 |
|
|
|
144 |
|
|
|
(29 |
) |
|
Midstream, marketing and other |
|
63 |
|
|
|
161 |
|
|
|
(98 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(23 |
) |
|
|
(7 |
) |
|
|
(16 |
) |
|
Other |
|
(91 |
) |
|
|
(133 |
) |
|
|
42 |
|
|
Taxes |
|
(458 |
) |
|
|
(1,671 |
) |
|
|
1,213 |
|
|
Core Results |
$ |
689 |
|
|
$ |
2,300 |
|
|
$ |
(1,611 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.85 |
|
|
$ |
2.80 |
|
|
$ |
(1.95 |
) |
|
Diluted |
$ |
0.85 |
|
|
$ |
2.78 |
|
|
$ |
(1.93 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
40% |
|
|
42% |
|
|
2% | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
10
Investor Relations Supplemental Schedules
11
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months | ||||||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||
|
NET SALES VOLUMES PER DAY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
90 |
|
|
84 |
|
|
93 |
|
|
86 |
|
|
Permian |
|
167 |
|
|
169 |
|
|
168 |
|
|
170 |
|
|
Midcontinent/Rockies |
|
10 |
|
|
5 |
|
|
10 |
|
|
4 |
|
|
Total |
|
267 |
|
|
258 |
|
|
271 |
|
|
260 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
232 |
|
|
238 |
|
|
224 |
|
|
241 |
|
|
Midcontinent/Rockies |
|
192 |
|
|
174 |
|
|
201 |
|
|
166 |
|
|
Permian |
|
197 |
|
|
190 |
|
|
196 |
|
|
184 |
|
|
Total |
|
621 |
|
|
602 |
|
|
621 |
|
|
591 |
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
37 |
|
|
22 |
|
|
41 |
|
|
29 |
|
|
Colombia |
|
48 |
|
|
43 |
|
|
47 |
|
|
43 |
|
|
Total |
|
85 |
|
|
65 |
|
|
88 |
|
|
72 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
30 |
|
|
14 |
|
|
32 |
|
|
18 |
|
|
Bolivia |
|
19 |
|
|
21 |
|
|
17 |
|
|
21 |
|
|
Total |
|
49 |
|
|
35 |
|
|
49 |
|
|
39 |
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oman |
|
38 |
|
|
21 |
|
|
36 |
|
|
20 |
|
|
Dolphin |
|
25 |
|
|
19 |
|
|
23 |
|
|
20 |
|
|
Qatar |
|
50 |
|
|
45 |
|
|
49 |
|
|
46 |
|
|
Yemen |
|
23 |
|
|
20 |
|
|
27 |
|
|
23 |
|
|
Libya |
|
8 |
|
|
27 |
|
|
7 |
|
|
23 |
|
|
Total |
|
144 |
|
|
132 |
|
|
142 |
|
|
132 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oman |
|
23 |
|
|
25 |
|
|
23 |
|
|
23 |
|
|
Dolphin |
|
242 |
|
|
163 |
|
|
224 |
|
|
182 |
|
|
Total |
|
265 |
|
|
188 |
|
|
247 |
|
|
205 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
652 |
|
|
593 |
|
|
654 |
|
|
603 |
|
|
Other interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
Colombia - minority interest |
|
(6 |
) |
|
(7 |
) |
|
(6 |
) |
|
(7 |
) |
|
Yemen - Occidental net interest |
|
3 |
|
|
2 |
|
|
3 |
|
|
2 |
|
|
Total worldwide sales volumes - MBOE |
|
649 |
|
|
588 |
|
|
651 |
|
|
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months | ||||||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||
|
NET PRODUCTION PER DAY: |
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBBL) |
|
267 |
|
|
258 |
|
|
271 |
|
|
260 |
|
|
Natural Gas (MMCF) |
|
621 |
|
|
602 |
|
|
621 |
|
|
591 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Argentina |
|
38 |
|
|
24 |
|
|
38 |
|
|
30 |
|
|
Colombia |
|
47 |
|
|
43 |
|
|
47 |
|
|
42 |
|
|
Total |
|
85 |
|
|
67 |
|
|
85 |
|
|
72 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
49 |
|
|
35 |
|
|
49 |
|
|
39 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Oman |
|
38 |
|
|
21 |
|
|
36 |
|
|
20 |
|
|
Dolphin |
|
25 |
|
|
19 |
|
|
23 |
|
|
20 |
|
|
Qatar |
|
46 |
|
|
48 |
|
|
49 |
|
|
47 |
|
|
Yemen |
|
26 |
|
|
20 |
|
|
27 |
|
|
23 |
|
|
Libya |
|
7 |
|
|
20 |
|
|
8 |
|
|
21 |
|
|
Total |
|
142 |
|
|
128 |
|
|
143 |
|
|
131 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
265 |
|
|
188 |
|
|
247 |
|
|
205 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
650 |
|
|
590 |
|
|
652 |
|
|
602 |
|
|
Other interests |
|
|
|
|
|
|
|
|
|
|
|
|
|
Colombia - minority interest |
|
(6 |
) |
|
(6 |
) |
|
(6 |
) |
|
(6 |
) |
|
Yemen - Occidental net interest |
|
3 |
|
|
2 |
|
|
3 |
|
|
2 |
|
|
Total worldwide production - MBOE |
|
647 |
|
|
586 |
|
|
649 |
|
|
598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
13
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months | ||||||||||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||||||
|
OIL & GAS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PRICES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
55.55 |
|
|
|
114.88 |
|
|
|
46.43 |
|
|
|
102.47 |
|
|
Natural gas ($/MCF) |
|
|
2.87 |
|
|
|
9.99 |
|
|
|
3.20 |
|
|
|
9.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
46.08 |
|
|
|
87.78 |
|
|
|
42.71 |
|
|
|
76.47 |
|
|
Natural Gas ($/MCF) |
|
|
2.75 |
|
|
|
4.50 |
|
|
|
3.11 |
|
|
|
4.11 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
53.43 |
|
|
|
113.64 |
|
|
|
47.60 |
|
|
|
103.47 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Worldwide |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
52.97 |
|
|
|
110.12 |
|
|
|
46.05 |
|
|
|
98.16 |
|
|
Natural Gas ($/MCF) |
|
|
2.34 |
|
|
|
7.71 |
|
|
|
2.61 |
|
|
|
6.87 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second Quarter |
|
Six Months | ||||||||||||
|
|
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||||||
|
Exploration Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ |
35 |
|
|
$ |
25 |
|
|
$ |
62 |
|
|
$ |
32 |
|
|
Latin America |
|
|
8 |
|
|
|
11 |
|
|
|
10 |
|
|
|
26 |
|
|
Middle East / North Africa |
|
|
10 |
|
|
|
36 |
|
|
|
38 |
|
|
|
76 |
|
|
Other Eastern Hemisphere |
|
|
1 |
|
|
|
(14 |
) |
|
|
2 |
|
|
|
(2 |
) |
|
TOTAL REPORTED |
|
$ |
54 |
|
|
$ |
58 |
|
|
$ |
112 |
|
|
$ |
132 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
14
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months | ||||||||
|
Capital Expenditures ($MM) |
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||
|
Oil & Gas |
|
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
$ |
128 |
|
$ |
197 |
|
$ |
284 |
|
$ |
357 |
|
Permian |
|
|
82 |
|
|
89 |
|
|
271 |
|
|
162 |
|
Midcontinent / Rockies |
|
|
12 |
|
|
85 |
|
|
68 |
|
|
131 |
|
Latin America |
|
|
118 |
|
|
181 |
|
|
308 |
|
|
338 |
|
Middle East / North Africa |
|
|
262 |
|
|
234 |
|
|
534 |
|
|
478 |
|
Exploration |
|
|
29 |
|
|
51 |
|
|
77 |
|
|
90 |
|
Chemicals |
|
|
40 |
|
|
47 |
|
|
71 |
|
|
97 |
|
Midstream, marketing and other |
|
|
143 |
|
|
94 |
|
|
265 |
|
|
155 |
|
Corporate |
|
|
17 |
|
|
60 |
|
|
24 |
|
|
63 |
|
TOTAL |
|
$ |
831 |
|
$ |
1,038 |
|
$ |
1,902 |
|
$ |
1,871 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Depletion & |
|
Second Quarter |
|
Six Months | ||||||||
|
Amortization of Assets ($MM) |
|
2009 |
|
2008 |
|
2009 |
|
2008 | ||||
|
Oil & Gas |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
$ |
304 |
|
$ |
248 |
|
$ |
615 |
|
$ |
503 |
|
Latin America |
|
|
155 |
|
|
83 |
|
|
323 |
|
|
188 |
|
Middle East / North Africa |
|
|
179 |
|
|
187 |
|
|
387 |
|
|
377 |
|
Chemicals |
|
|
73 |
|
|
82 |
|
|
144 |
|
|
164 |
|
Midstream, marketing and other |
|
|
26 |
|
|
16 |
|
|
49 |
|
|
33 |
|
Corporate |
|
|
5 |
|
|
5 |
|
|
10 |
|
|
9 |
|
TOTAL |
|
$ |
742 |
|
$ |
621 |
|
$ |
1,528 |
|
$ |
1,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
15
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
|
|
|
30-Jun-09 |
|
31-Dec-08 | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt (including current maturities) |
|
|
$ |
3,485 |
|
|
|
$ |
2,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes Payable |
|
|
|
— |
|
|
|
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Others |
|
|
|
25 |
|
|
|
|
25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt |
|
|
$ |
3,510 |
|
|
|
$ |
2,772 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EQUITY |
|
|
$ |
27,887 |
|
|
|
$ |
27,325 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt To Total Capitalization |
|
|
|
11% |
|
|
|
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
16
EXHIBIT 99.4
Second Quarter 2009
Earnings Conference Call
July 23, 2009
1
2
Second Quarter 2009 Earnings – Highlights
Core Results - $689 Million vs. $2.3 Billion in 2Q08
Core EPS $0.85 (diluted) vs. $2.78 in 2Q08.
Net Income - $682 Million vs. $2.3 Billion in 2Q08
EPS $0.84 (diluted) vs. $2.78 in 2Q08.
2
3
Second Quarter 2009 Earnings – Oil & Gas
Segment Variance Analysis – 2Q09 vs. 2Q08
Core Results for 2Q09 of $1.1 B vs. $3.8 B in 2Q08
Decrease due to lower crude oil and natural gas prices and higher DD&A rates,
partially offset by higher sales volume and lower operating expenses.
($ in millions)
$3,806
2Q 08
$2,873
Sales Price
$151
Sales
Volume
$4
Exploration
Expense
$5
All Others
$1,083
2Q 09
*All Others include: Lower operating expense and higher DD&A rates.
3
4
Second Quarter 2009 Earnings –
Oil & Gas Segment
2Q09
2Q08
Reported Segment Earnings ($ mm)
$1,083
$3,806
WTI Oil Price ($/bbl)
$59.62
$123.98
NYMEX Gas Price ($/mcf)
$3.83
$10.43
Oxy’s Realized Prices
Worldwide Oil ($/bbl)
$52.97
$110.12
US Natural Gas ($/mcf)
$2.87
$9.99
4
5
Second Quarter 2009 Earnings –
Oil & Gas Segment
2Q09
2Q08
Oil and Gas Sales Volumes (mboe/d)
649
588
+ 10.4% year-over-year
Year-over-year sales volume increase includes:
+ 20 mboe/d from Dolphin;
+ 18 mboe/d from Argentina;
+ 17 mboe/d from Oman, and;
+ 12 mboe/d from domestic operations, partially offset by;
- 19 mboe/d from Libya.
Exploration expense was $54 mm in 2Q09, in line with our
guidance of $60 mm.
5
6
Second Quarter 2009 Earnings –
Oil & Gas Segment
The Argentina increase includes:
+ 8 mboe/d from new production coming on line;
the effect of a 15 mboe/d production loss due to a strike in 2Q08, and;
partially offset by a 5 mboe/d loss from a strike in June 2009.
Dolphin’s increase reflects higher cost recovery volumes in 2Q09
resulting from a catch-up of unrecovered volumes from 1Q09.
Substantially all of the domestic volume increase in the
Midcontinent/Rockies and Permian was attributable to 2008 acquisitions;
California production increased as a result of new wells;
Long Beach production decreased 6 mboe/d from 1Q09 due to its contract
that is similar to a production sharing agreement.
The Middle East/North Africa included higher production in Oman and
Dolphin and higher production sharing volumes compared to 2Q08;
Compared to 1Q09, production sharing volumes decreased by 14 mboe/d.
6
7
Second Quarter 2009 Earnings – Oil & Gas
Segment – Cash Production Costs and Taxes
Oil and gas cash production costs, excluding production and
property taxes, were $10.32 per boe in 1H09.
This represents a 15% decline from 2008 full-year costs of $12.13 per boe.
Oil and gas cash production costs, excluding production and
property taxes, were $10.17 per boe in 2Q09 vs. $10.48 per
boe in 1Q09.
These declines are due to lower workover, maintenance and utilities costs
and, for the change from the prior year, the effect of higher production
sharing volumes.
The lower costs reflect our continued cost reduction efforts.
Taxes – other than on income were $1.76 per boe for 1H09
vs. $2.62 per boe for all of 2008.
These costs, which are sensitive to product prices, reflect lower crude oil and
natural gas prices during 1H09.
In 2Q09, these taxes increased to $1.82 per boe, compared to the 1Q09 rate
of $1.71 per boe, due to higher crude oil prices.
7
8
Second Quarter 2009 Earnings – Chemical
Segment Variance Analysis – 2Q09 vs. 2Q08
Core Results for 2Q09 of $115 mm vs. $144 mm in 2Q08
Better than our guidance of $100 mm due to higher than expected chlorine pricing.
($ in millions)
$144
2Q 08
$280
Operations/
Manufacturing*
$152
Sales Price
$155
Sales
Volume/Mix
$2
All Others
$115
2Q 09
*Lower energy and feedstock costs.
8
9
Second Quarter 2009 Earnings – Midstream
Segment Variance Analysis – 2Q09 vs. 2Q08
Core Results for 2Q09 of $63 mm vs. $161 mm in 2Q08
Decline due to lower NGL realized prices in the gas processing business, lower
earnings in crude oil marketing and reduced margins in the power generation
business.
($ in millions)
$161
2Q 08
$50
Gas Processing*
$30
Marketing
$19
Power
Generation
$1
All Others
$63
2Q 09
*Lower NGL Prices
9
10
Second Quarter 2009 Earnings –
Effective Tax Rate
Worldwide effective tax rate was 40% in 2Q09 vs. our
guidance of 43%;
Decrease in rate reflects a higher proportion of expected total year
domestic source pre-tax income.
10
11
Second Quarter 2009 Earnings –
Six Months Results
YTD2009
YTD2008
Net Income ($ mm)
$1,050
$4,143
EPS (diluted)
$1.29
$5.00
Oil and Gas Sales Volumes (mboe/d)
651
598
+9% year-over-year
Capital spending was $831 million in 2Q09 and $1.9 billion
during 1H09.
We currently anticipate full year 2009 spending to be $3.6 billion;
The $100 million increase from our last estimate is mostly allocated to foreign
Oil & Gas locations.
11
12
Second Quarter 2009 Earnings –
Cash Flow 2009 YTD
($ in millions)
$4,000
Cash
Flow From
Operations
$2,200
Beginning
Cash
$1,800
12/31/08
Available
Cash
$1,900
Capex
$500
Acquisitions
& Signing
Bonuses
$520
Dividends
$740
Debt
Issuance
$20
Other
$1,800
Ending Cash
Balance
6/30/09
12
13
Second Quarter 2009 Earnings –
Shares Outstanding
Shares Outstanding (mm)
YTD09
6/30/09
Weighted Average Basic
810.8
Weighted Average Diluted
813.7
Basic Shares Outstanding
811.1
Diluted Shares Outstanding
813.9
13
14
Second Quarter 2009 Earnings – 3Q09 Outlook
We expect 3Q09 oil and gas sales volumes to be similar to
2Q09, at about current oil prices.
This volume range reflects decreases from Midcontinent/Rockies due to
natural declines and Dolphin due to its production sharing contract, offset by
increases in California, Argentina and Oman.
Commodity Price Sensitivity – Earnings
At current market prices, a $1.00 per barrel change in oil prices impacts oil
and gas quarterly earnings before income taxes by about $39 mm;
A swing of $0.50 per mmBTU in domestic gas prices has a $20 mm impact
on quarterly earnings before income taxes;
While the current NYMEX gas price is around $3.70 per mmBTU, prices in
California are about $3.50, in the Permian about $3.30, and the Rockies gas
is in the $3.00 range.
We expect 3Q09 exploration expense to be about $50 mm
for seismic and drilling for our exploration programs.
14
15
Second Quarter 2009 Earnings – 3Q09 Outlook
For the Chemical segment, the second half of 2009 looks
exceptionally weak.
The weakness in caustic soda is not being offset by chlorine price
increases, resulting in declining margins;
The fourth quarter is traditionally the weakest for this business and we
currently expect it to be about break even;
We expect 3Q09 Chemical earnings to fall at least 50% from 2Q09 levels.
We expect our combined worldwide tax rate for 3Q09 to be
in the 40% to 42% range, depending on the split between
domestic and foreign sourced income.
15
16
Second Quarter 2009 Earnings –
California Exploration
Excluding the Kern County
discovery:
Over the course of little over a year,
we have drilled 34 exploration wells
seeking non-traditional hydrocarbon
bearing zones in California.
Of these wells, 9 are commercial
and 16 are currently being
evaluated;
We expect to drill an additional 8
exploration wells in 2009;
Oxy holds 1.1 mm acres of net fee
minerals and leasehold in CA, which
have been acquired in the last few
years to exploit these opportunities.
Discoveries similar to the Kern
County discovery are possible in
this net acre position.
16
17
Second Quarter 2009 Earnings –
California Exploration – Kern County Discovery
KERN COUNTY DISCOVERY AREA
Oxy believes there are between 150 mm and 250 mm gross
barrels of oil equivalent reserves within the outlined area
where we have drilled 6 wells to date.
Oxy’s interest in the discovery area is approximately 80%.
Approximately two-thirds of the discovery is believed to be
natural gas.
The discovery area's producing zones, whose areal
geological extent is still being defined, consists of
conventional oil and gas bearing formations.
It is probable that there are additional reserves outside the
defined area.
17
18
Second Quarter 2009 Earnings –
California Exploration – Kern County Discovery
KERN COUNTY DISCOVERY AREA
2Q09
1Q09
Gross Production*
– Natural Gas (mmcf/d)
74
28
– Liquids (mb/d)
5
3
– Total mboe/d
17.3
7.7
Number of producing wells
6
4
Conventional Primary Production
ü
ü
*Production as of each of the quarterly earnings disclosure dates.
18
19
Second Quarter 2009 Earnings –
California Exploration – Kern County Discovery
In the Kern County discovery
area:
We expect to drill an additional 17
wells during 2009;
The wells in this area cost about
$3.5 to $4.0 million to drill and
complete and have payout periods
of less than six months;
The combined finding, development,
and lifting costs are expected to be
significantly less than $10 per boe;
We will also need to expand our 400
mmcf/d gas processing plant in Elk
Hills to accommodate the expected
production from the Kern County
discovery;
There will be oil production from
shale zones in this area.
19
20
EXHIBIT 99.5
FORWARD-LOOKING STATEMENTS FOR EARNINGS RELEASE PRESENTATION MATERIALS
Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause actual results to differ materially include, but are not limited to: global commodity price fluctuations and supply/demand considerations for oil, gas and chemicals; exploration risks, such as drilling of unsuccessful wells; not successfully completing (or any material delay in) any expansions, field development, capital projects, acquisitions, or dispositions; higher-than-expected costs; political risk; operational interruptions; and changes in tax rates. You should not place undue reliance on these forward-looking statements which speak only as of the date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosures in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.