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)

 

 

 

 

EXHIBIT 99.2

 

Occidental Petroleum Corporation

DR. RAY R. IRANI

Chairman and Chief Executive Officer

-Conference Call-

Third Quarter 2010 Earnings Announcement

October 19, 2010

Los Angeles, California

Thank you, Chris. Good morning, ladies and gentlemen.

I am very enthusiastic about the new management structure we announced last week, both for myself and for Oxy. The new structure will assure Oxy of continuity of a winning team, both in terms of our experienced and effective management, and in terms of our emphasis on a highly successful business strategy.

To recap the new structure, I informed our Board of Directors of my desire to relinquish the position of Chief Executive Officer, effective at the May 2011 Annual Meeting of Stockholders, and to continue as full-time Executive Chairman. I recommended to the Board that Steve Chazen replace me as CEO. The Board agreed with this new structure. Steve is a proven leader. He has been an integral member of our senior management team for many years. Steve joined Occidental in 1994 as Executive Vice President – Corporate Development, became Chief Financial Officer in 1999, President in 2007, and Chief Operating Officer earlier this year. He was also elected to the Board of Directors in 2010. He has made and will continue to make significant contributions to Occidental’s ongoing success and development. This is a carefully developed and long anticipated senior management transition.

 

 

 

 

Steve and I have had an extraordinarily productive partnership for many years. Clearly, maintaining this partnership is in the best interests of Oxy and its stockholders, and I look forward to continuing this partnership in future years.

During the 20 years that I have been CEO, our management team has transformed Oxy from a conglomerate of unrelated business entities with a market capitalization of $5 billion, into the fourth-largest oil and gas company in the United States with a market capitalization of almost $70 billion.  Oxy has led its proxy peer group in total stockholder return – with cumulative returns of 76 percent over the past three years, 204 percent over the past five years and 870 percent over the past 10 years. I am very proud of these accomplishments.

Our management team is strong and cohesive, and will be ready, willing and able under this new structure to take Oxy to new heights in performance and excellence.

I’ll now turn the call over to Steve Chazen for the details on our third quarter performance.

###

 

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Occidental Petroleum Corporation

STEPHEN CHAZEN

President and Chief Operating Officer

– Conference Call –

Third Quarter 2010 Earnings Announcement

October 19, 2010

Los Angeles, California

Thank you Ray.

Net income was $1.2 billion or $1.46 per diluted share in the third quarter of 2010, compared to $927 million or $1.14 per diluted share in the third quarter of 2009.  Income from continuing operations was $1.47 per diluted share in the third quarter this year, compared to $1.14 per diluted share in the third quarter of last year.

Here’s the segment breakdown for the third quarter.

Oil and gas third quarter 2010 segment earnings were $1.7 billion, compared to $1.5 billion for the third quarter of 2009.  The improvement in 2010 was driven mostly by higher commodity prices with additional contributions from higher volumes.  Realized crude oil prices increased 13 percent in 2010 and domestic natural gas prices improved 38 percent from the third quarter of 2009.  Partially offsetting these gains were higher DD&A rates and higher operating expenses, partly resulting from fully expensing CO2 costs in 2010.

 

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	●	Production volumes for the third quarter of 2010 were 751,000 BOE per day, a 6 ½ percent increase compared with 705,000 BOE per day for the third quarter of 2009.  Most of the year-over-year production increases came from the Middle East / North Africa region, with smaller increases in Argentina and the United States.
	●	Worldwide oil and gas sales volumes for the third quarter of 2010 were 749,000 barrels of oil equivalent per day, an increase of over 6 ½ percent, compared with 702,000 BOE per day in the third quarter of last year.  Sales volume differs from the production volumes above due mainly to the timing of a lifting in Argentina.
	●	Exploration expense was $83 million in the quarter.
	●	Oil and gas cash production costs, excluding production and property taxes, were $10.25 a barrel for the first nine months of 2010.  Last year's twelve-month costs were $9.37 a barrel.  The nine-month increase reflects $0.35 a barrel higher CO2 costs, due to our decision to expense 100% of injected CO2 beginning in 2010, and higher field support operations, workovers and maintenance costs.  The higher domestic workover activity is mostly in the Permian.
	●	Taxes – other than on income were $1.76 per barrel for the nine months of 2010 compared to $1.60 per barrel for all of 2009.  These costs, which are sensitive to product prices, reflect the effect of higher crude oil and gas prices in 2010.

Chemical segment earnings for the third quarter of 2010 were $189 million, compared with $108 million in the second quarter of 2010. The third quarter results reflect improvement from the second quarter 2010 in

 

4

 

 

both volumes and margins across most product lines.  Export markets have improved more rapidly than domestic markets due in part to the favorable feedstock costs in North America versus Europe and Asia.

Midstream segment earnings for the third quarter of 2010 were $163 million, compared to $77 million in the third quarter of 2009.  The increase in earnings was mainly due to trading and marketing income and higher margins in the pipeline businesses.

The worldwide effective tax rate was 41 percent for the third quarter of 2010.

Let me now turn to Occidental's performance during the first nine months.

Net income was $3.3 billion or $4.07 per diluted share for the first nine months of 2010, compared with $2.0 billion or $2.43 per diluted share for the first nine months of 2009.  Core income was $3.3 billion or $4.09 per diluted share for the first nine months of this year, compared with $2.0 billion or $2.48 per diluted share for the year to date 2009 period.

The weighted-average basic shares outstanding for the nine months of 2010 were 812.4 million and the weighted-average diluted shares outstanding were 813.8 million.

Our debt to capitalization ratio was 7 percent at the end of the third quarter.

Capital spending for the third quarter of 2010 was about $1.1 billion and $2.8 billion for the first nine months.  Year to-date capital expenditures by segment were 82 percent in Oil and Gas, 13 percent in Midstream with the remainder in Chemicals.

Cash flow from operations for the nine months of 2010 was $6.6 billion.  We used $2.8 billion of the company’s cash flow to fund capital

 

5

 

 

expenditures, $1.6 billion on acquisitions and $340 million on foreign contracts.  These investing cash flow uses amounted to $4.7 billion.  We also used $850 million to pay dividends and $310 million to retire debt.  These and other net cash flows increased our $1.2 billion cash balance at the end of last year by $0.9 billion to $2.1 billion at September 30.  The first nine months' free cash flow after capital spending and dividends but before acquisition activity and debt retirements was about $3.1 billion.

Acquisitions

	●	Our acquisition costs in the third quarter were $1.1 billion and we expect to spend about $300 million in the first part of the fourth quarter.  Through these acquisitions we expect to add about 10,000 BOE per day average production in the fourth quarter.  These acquisitions have a run rate of about 12,000 BOE per day.  Of this production about a third will be liquids and the balance will be natural gas.  Over the medium-term, we expect these acquisitions to add at least 25,000 BOE per day of production.  This increase will come largely from oil production.
	●	In addition to these acquisitions, we expect to add an additional 380,000 acres to our California acreage position and interests in 100,000 acres in other producing areas.  Our California acreage will now reach approximately 1.6 million acres, an overwhelming portion of which consists of mineral interests.
	●	We don't contemplate any more sizeable acquisitions of acreage in California.

 

6

 

 

Our total year capital spending is expected to be about $4.4 billion.  The capital spending rate will increase in the fourth quarter of the year largely in our domestic operations and in Iraq.

Drilling rigs – At the beginning of the year we were running 11 development rigs in California and 5 rigs in the Permian.  We are currently running 16 drilling rigs in California and 9 in the Permian and expect our year-end exit rate rig count to reach 19 rigs in California and 14 in the Permian.  Next year, we anticipate working 21 rigs in California and 15 rigs in the Permian.  In the current environment, we are cautious about natural gas drilling and may reevaluate our 2011 U.S. natural gas drilling program.

Workover rigs – In the Permian, we are currently running 94 workover rigs, compared with the 57 rigs we had at the beginning of the year.  We currently expect to be operating 110 rigs at the end of 2010.  A portion of workover expenditures are expensed as opposed to being capitalized depending on their nature.  Our operating costs have recently increased due to higher workover activity to $10.94 per barrel in the third quarter of 2010 and further increases are expected in the fourth quarter.

As we look ahead in the current quarter:

●

We expect oil and gas production and sales volumes to be in the range of 760,000 to 770,000 BOE/day at third quarter average oil prices.  Volume increases in the fourth quarter are expected to come from California, Oman's Mukhaizna field and the acquisitions.  An increase in oil prices of $5.00 per barrel from the third quarter 2010 levels would result in about 4,000 BOE per day

 

7

 

 

		lower production due to the impact of higher prices affecting our production sharing and similar contracts.
	●	Based on the development plan at the Zubair field in Iraq, we believe we should have a small amount of production in the fourth quarter.  We do not expect to report any sales from Iraq until the first quarter of 2011.  The field development plan is on track for us to meet next year's production targets.

With regard to prices -

	●	At current market prices, a $1.00 per barrel change in oil prices impacts quarterly earnings before income taxes by about $39 million.  The average third quarter WTI oil price was $76.20 per barrel.
	●	A swing of 50-cents per million BTUs in domestic gas prices has a $27 million impact on quarterly earnings before income taxes.  The current NYMEX gas price is around $3.90 per MCF.

Additionally -

	●	We expect exploration expense to be about $110 million for seismic and drilling for our exploration programs.
	●	The chemical segment is expected to provide earnings for the fourth quarter of $100 to $120 million.  The fourth quarter is usually the weakest quarter for the business.  We expect that continued margin improvements will be offset by the typical seasonal slowdown in the housing, construction, bleach and fertilizer markets.
	●	We expect our combined worldwide tax rate in the fourth quarter of 2010 to be about 41 percent.  Our third quarter U.S. and foreign

 

8

 

 

tax rates are included in the “Investor Relations Supplemental Schedule.”

Century Plant

The Century Plant has just started operations and will be providing additional CO2 to support growth in our Permian operations.  We expect that the plant will yield about 180 million cubic feet per day of CO2 next year to support our Permian EOR operations.  We are in the process of contracting additional CO2 from other sources and will use penalty payments due from the operator for under production to support these activities.  We expect to have sufficient CO2 to meet the needs of our previousl y disclosed expansion of flooding activities.

California Update –

	●	During the first nine months of the year, we drilled 7 conventional exploration and extension wells in California.  Of these, 5 were outside of the Kern County Discovery area.  Two of these wells are currently being tested.  We also drilled 12 unconventional exploration wells in the first nine months of the year, of which 3 were successful and 5 are being tested.
	●	In the fourth quarter, we expect to drill 10 exploration wells of which 2 will be conventional and the remaining 8 wells will be non-conventional.  In the fourth quarter, our exploration program will target smaller prospects until permits are obtained for larger ones.
	●	We have also drilled 13 conventional exploitation wells in the Kern County Discovery area and 15 unconventional exploitation wells in California in the first nine months.

 

9

 

 

	●	Due to delays in permitting, we've reduced our exploitation plans for the second half of the year by about 10 wells.
	●	We are continuing to have problems with our gas processing and gathering infrastructure at Elk Hills.  As a result, we expect our gas and related NGL production to be about flat in the fourth quarter.  We have ordered and commenced construction of the first new processing plant and will order the second plant shortly.  Once complete, the new processing plants will increase productive capacity, improve yields, enhance netbacks and lower operating costs.  We are also actively working to optimize and debottleneck our existing facilities to improve performance.  In addition, we are shifting our drilling to oil wells, which we expect will result in higher oil production in the fourth quarter.
	●	Copies of the press release announcing our third 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

 

 

 

Occidental Petroleum Corporation
Free Cash Flow
Reconciliation to Generally Accepted Accounting Principles (GAAP)
($ Millions)
	Nine Months
	2010
Consolidated Statement of Cash Flows
Cash flow from operating activities	6,607
Cash flow from investing activities	(4,574	)
Cash flow from financing activities	(1,154	)
Change in cash	879
Free Cash Flow
Cash flow from operating activities	6,607
Capital spending	(2,814	)
Cash dividends paid	(848	)
Equity method investment dividends	133
Free cash flow	3,078

 

 

EXHIBIT 99.3

Investor Relations Supplemental Schedules

 

 

Investor Relations Supplemental Schedules
Summary
($ Millions)
	3Q 2010				3Q 2009
Reported Net Income		$1,191				$927
EPS - Diluted		$1.46				$1.14
Core Results		$1,196				$929
EPS - Diluted		$1.47				$1.14
Total Worldwide Sales Volumes (mboe/day)		749				702
Total Worldwide Crude Oil Realizations ($/BBL)		$70.71				$62.79
Domestic Natural Gas Realizations ($/MCF)		$4.20				$3.04
Wtd. Average Basic Shares O/S (mm)		812.7				811.8
Wtd. Average Diluted Shares O/S (mm)		813.9				814.4
	YTD 2010				YTD 2009
Reported Net Income		$3,318				$1,977
EPS - Diluted		$4.07				$2.43
Core Results		$3,336				$2,025
EPS - Diluted		$4.09				$2.48
Total Worldwide Sales Volumes (mboe/day)		741				711
Total Worldwide Crude Oil Realizations ($/BBL)		$71.57				$51.44
Domestic Natural Gas Realizations ($/MCF)		$4.67				$3.15
Wtd. Average Basic Shares O/S (mm)		812.4				811.1
Wtd. Average Diluted Shares O/S (mm)		813.8				813.9
Shares Outstanding (mm)		812.6				811.7
Cash Flow from Operations	$	6,600			$	3,800

 

 

1

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Third Quarter
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	1,745										$	1,745
Chemical		189											189
Midstream, marketing and other		163											163
Corporate
Interest expense, net		(19	)										(19	)
Other		(66	)										(66	)
Taxes		(816	)										(816	)
Income from continuing operations		1,196				-							1,196
Discontinued operations, net of tax		(5	)			5			Discontinued operations, net				-
Net Income	$	1,191			$	5						$	1,196
Basic Earnings Per Common Share
Income from continuing operations	$	1.47
Discontinued operations, net		(0.01	)
Net Income	$	1.46										$	1.47
Diluted Earnings Per Common Share
Income from continuing operations	$	1.47
Discontinued operations, net		(0.01	)
Net Income	$	1.46										$	1.47

 

 

2

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2009 Third Quarter
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	1,464										$	1,464
Chemical		72											72
Midstream, marketing and other		77											77
Corporate
Interest expense, net		(33	)										(33	)
Other		(102	)										(102	)
Taxes		(549	)										(549	)
Income from continuing operations		929				-							929
Discontinued operations, net of tax		(2	)			2			Discontinued operations, net				-
Net Income	$	927			$	2						$	929
Basic Earnings Per Common Share
Income from continuing operations	$	1.14
Discontinued operations, net		-
Net Income	$	1.14										$	1.14
Diluted Earnings Per Common Share
Income from continuing operations	$	1.14
Discontinued operations, net		-
Net Income	$	1.14										$	1.14

 

 

3

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 First Nine Months
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	5,417										$	5,417
Chemical		327											327
Midstream, marketing and other		270											270
Corporate
Interest expense, net		(77	)										(77	)
Other		(256	)										(256	)
Taxes		(2,345	)										(2,345	)
Income from continuing operations		3,336				-							3,336
Discontinued operations, net of tax		(18	)			18			Discontinued operations, net				-
Net Income	$	3,318			$	18						$	3,336
Basic Earnings Per Common Share
Income from continuing operations	$	4.10
Discontinued operations, net		(0.02	)
Net Income	$	4.08										$	4.10
Diluted Earnings Per Common Share
Income from continuing operations	$	4.09
Discontinued operations, net		(0.02	)
Net Income	$	4.07										$	4.09

 

 

4

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2009 First Nine Months
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	3,092			$	8			Rig contract terminations			$	3,100
Chemical		356											356
Midstream, marketing and other		154											154
Corporate
Interest expense, net		(76	)										(76	)
Other		(297	)			40			Severance				(242	)
						15			Railcar leases
Taxes		(1,245	)			(22	)		Tax effect of adjustments				(1,267	)
Income from continuing operations		1,984				41							2,025
Discontinued operations, net of tax		(7	)			7			Discontinued operations, net				-
Net Income	$	1,977			$	48						$	2,025
Basic Earnings Per Common Share
Income from continuing operations	$	2.44
Discontinued operations, net		(0.01	)
Net Income	$	2.43										$	2.49
Diluted Earnings Per Common Share
Income from continuing operations	$	2.44
Discontinued operations, net		(0.01	)
Net Income	$	2.43										$	2.48

 

 

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)	Third Quarter						Nine Months
	2010			2009			2010			2009
Foreign Exchange Gains & (Losses) *	2			(3	)		1			28
*Amounts shown after-tax

 

 

6

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
		QUARTERLY									YEAR-TO-DATE
		2010			2010			2009			2010			2009
REPORTED INCOME		QTR 3			QTR 2			QTR 3			9 Months			9 Months
Oil & Gas		1,745			1,853			1,464			5,417			3,092
Chemicals		189			108			72			327			356
Midstream, marketing and other		163			13			77			270			154
Corporate & other		(85	)		(105	)		(135	)		(333	)		(373	)
Pre-tax income		2,012			1,869			1,478			5,681			3,229
Income tax expense
Federal and state		322			329			189			958			349
Foreign		494			471			360			1,387			896
Total		816			800			549			2,345			1,245
Income from continuing operations		1,196			1,069			929			3,336			1,984
Worldwide effective tax rate		41%			43%			37%			41%			39%
		2010			2010			2009			2010			2009
CORE RESULTS		QTR 3			QTR 2			QTR 3			9 Months			9 Months
Oil & Gas		1,745			1,853			1,464			5,417			3,100
Chemicals		189			108			72			327			356
Midstream, marketing and other		163			13			77			270			154
Corporate & other		(85	)		(105	)		(135	)		(333	)		(318	)
Pre-tax income		2,012			1,869			1,478			5,681			3,292
Income tax expense
Federal and state		322			329			189			958			371
Foreign		494			471			360			1,387			896
Total		816			800			549			2,345			1,267
Core results		1,196			1,069			929			3,336			2,025
Worldwide effective tax rate		41%			43%			37%			41%			38%

 

 

7

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Third Quarter Net Income (Loss)
Reported Income Comparison
		Third				Second
		Quarter				Quarter
		2010				2010				B / (W)
Oil & Gas		$	1,745			$	1,853			$	(108	)
Chemical			189				108				81
Midstream, marketing and other			163				13				150
Corporate
Interest expense, net			(19	)			(22	)			3
Other			(66	)			(83	)			17
Taxes			(816	)			(800	)			(16	)
Income from continuing operations			1,196				1,069				127
Discontinued operations, net			(5	)			(6	)			1
Net Income		$	1,191			$	1,063			$	128
Earnings Per Common Share
Basic		$	1.46			$	1.31			$	0.15
Diluted		$	1.46			$	1.31			$	0.15
Worldwide Effective Tax Rate			41%				43%				2%
OCCIDENTAL PETROLEUM
2010 Third Quarter Net Income (Loss)
Core Results Comparison
		Third				Second
		Quarter				Quarter
		2010				2010				B / (W)
Oil & Gas		$	1,745			$	1,853			$	(108	)
Chemical			189				108				81
Midstream, marketing and other			163				13				150
Corporate
Interest expense, net			(19	)			(22	)			3
Other			(66	)			(83	)			17
Taxes			(816	)			(800	)			(16	)
Core Results		$	1,196			$	1,069			$	127
Core Results Per Common Share
Basic		$	1.47			$	1.31			$	0.16
Diluted		$	1.47			$	1.31			$	0.16
Worldwide Effective Tax Rate			41%				43%				2%

 

 

8

 

 

Investor Relations Supplemental Schedules

 

 

 

 

9

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Third Quarter Net Income (Loss)
Reported Income Comparison
		Third				Third
		Quarter				Quarter
		2010				2009				B / (W)
Oil & Gas		$	1,745			$	1,464			$	281
Chemical			189				72				117
Midstream, marketing and other			163				77				86
Corporate
Interest expense, net			(19	)			(33	)			14
Other			(66	)			(102	)			36
Taxes			(816	)			(549	)			(267	)
Income from continuing operations			1,196				929				267
Discontinued operations, net			(5	)			(2	)			(3	)
Net Income		$	1,191			$	927			$	264
Earnings Per Common Share
Basic		$	1.46			$	1.14			$	0.32
Diluted		$	1.46			$	1.14			$	0.32
Worldwide Effective Tax Rate			41%				37%				-4%
OCCIDENTAL PETROLEUM
2010 Third Quarter Net Income (Loss)
Core Results Comparison
		Third				Third
		Quarter				Quarter
		2010				2009				B / (W)
Oil & Gas		$	1,745			$	1,464			$	281
Chemical			189				72				117
Midstream, marketing and other			163				77				86
Corporate
Interest expense, net			(19	)			(33	)			14
Other			(66	)			(102	)			36
Taxes			(816	)			(549	)			(267	)
Core Results		$	1,196			$	929			$	267
Core Results Per Common Share
Basic		$	1.47			$	1.14			$	0.33
Diluted		$	1.47			$	1.14			$	0.33
Worldwide Effective Tax Rate			41%				37%				-4%

 

 

10

 

 

Investor Relations Supplemental Schedules

 

 

 

 

 

11

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Third Quarter							Nine Months
			2010			2009				2010			2009
NET SALES VOLUMES PER DAY:
United States
Crude Oil and Liquids (MBBL)
	California		92			92				92			93
	Permian		160			162				160			164
	Midcontinent Gas		18			15				18			14
	Total		270			269				270			271
Natural Gas (MMCF)
	California		276			269				288			240
	Permian		122			133				126			127
	Midcontinent Gas		258			251				257			265
	Total		656			653				671			632
Latin America
Crude Oil (MBBL)
	Argentina		30			30				34			37
	Colombia		36			39				32			40
	Total		66			69				66			77
Natural Gas (MMCF)
	Argentina		35			27				33			30
	Bolivia		19			18				15			17
	Total		54			45				48			47
Middle East / North Africa
Crude Oil and Liquids (MBBL)
	Bahrain		3			-				3			-
	Dolphin		25			26				24			26
	Libya		12			9				13			10
	Oman		66			50				60			48
	Qatar		79			77				77			78
	Yemen		30			34				32			36
	Total		215			196				209			198
Natural Gas (MMCF)
	Bahrain		181			-				169			-
	Dolphin		250			258				238			258
	Oman		47			48				49			50
	Total		478			306				456			308
Barrels of Oil Equivalent (MBOE)			749			702				741			711

 

 

12

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Third Quarter							Nine Months
			2010			2009				2010			2009
NET PRODUCTION PER DAY:
United States
Crude Oil and Liquids (MBBL)			270			269				270			271
Natural Gas (MMCF)			656			653				671			632
Latin America
Crude Oil (MBBL)
	Argentina		39			31				37			36
	Colombia		33			38				33			40
	Total		72			69				70			76
Natural Gas (MMCF)			54			45				48			47
Middle East / North Africa
Crude Oil and Liquids (MBBL)
	Bahrain		3			-				3			-
	Dolphin		25			26				24			26
	Libya		12			10				14			11
	Oman		63			51				60			48
	Qatar		78			79				77			79
	Yemen		30			34				32			36
	Total		211			200				210			200
Natural Gas (MMCF)			478			306				456			308
Barrels of Oil Equivalent (MBOE)			751			705				746			711

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Third Quarter								Nine Months
			2010				2009				2010				2009
OIL & GAS:
PRICES
United States
Crude Oil ($/BBL)				71.14				63.37				71.96				52.04
Natural gas ($/MCF)				4.20				3.04				4.67				3.15
Latin America
Crude Oil ($/BBL)				61.01				55.40				59.91				46.51
Natural Gas ($/MCF)				3.83				2.87				3.71				3.04
Middle East / North Africa
Crude Oil ($/BBL)				73.66				66.04				75.39				53.55
Total Worldwide
Crude Oil ($/BBL)				70.71				62.79				71.57				51.44
Natural Gas ($/MCF)				2.82				2.53				3.13				2.59
			Third Quarter								Nine Months
			2010				2009				2010				2009
Exploration Expense
United States			$	63			$	45			$	135			$	107
Latin America				-				4				5				14
Middle East / North Africa				20				7				72				47
TOTAL REPORTED			$	83			$	56			$	212			$	168

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
		Third Quarter								Nine Months
Capital Expenditures ($MM)		2010				2009				2010				2009
Oil & Gas
California		$	215			$	118			$	544			$	402
Permian			136				57				290				328
Midcontinent Gas			52				9				138				77
Latin America			120				93				335				401
Middle East  / North Africa			340				234				855				768
Exploration			46				18				138				95
Chemicals			50				43				129				114
Midstream, marketing and other			128				165				357				430
Corporate			13				9				30				34
	TOTAL	$	1,100			$	746			$	2,816			$	2,649
Depreciation, Depletion &		Third Quarter								Nine Months
Amortization of Assets ($MM)		2010				2009				2010				2009
Oil & Gas
Domestic		$	346			$	317			$	1,046			$	932
Latin America			99				140				346				463
Middle East  / North Africa			294				199				853				586
Chemicals			81				78				242				222
Midstream, marketing and other			32				30				105				79
Corporate			6				5				16				15
	TOTAL	$	858			$	769			$	2,608			$	2,297

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
		30-Sep-10						31-Dec-09
CAPITALIZATION
Long-Term Debt (including current maturities)			$	2,512					$	2,796
Others				-						25
	Total Debt		$	2,512					$	2,821
EQUITY			$	31,844					$	29,159
Total Debt To Total Capitalization				7%						9%

 

16

EXHIBIT 99.4

Occidental Petroleum Corporation

Third Quarter 2010 Earnings Conference Call

October 19, 2010

 

 

1

 

 

 

2

Third Quarter 2010 Earnings - Highlights

Third Quarter 2010 Earnings - Highlights

• Core Results - $1.2 Billion vs. $929 Million in 3Q09

 – Core EPS $1.47 (diluted) vs. $1.14 in 3Q09.

• Net Income - $1.2 Billion vs. $927 Million in 3Q09

 – EPS $1.46 (diluted) vs. $1.14 in 3Q09.

 

 

2

 

 

 

3

($ in millions)

• Core Results for 3Q10 of $1.745 B vs. $1.464 B in 3Q09

 – Improvement in 2010 driven mostly by higher commodity prices with additional contributions
 from higher volumes. Partially offsetting these gains were higher DD&A rates and higher
 operating expenses, partly resulting from fully expensing CO2 costs in 2010.

Third Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 3Q10 vs. 3Q09

 

 

3

 

 

 

4

      3Q10  3Q09

 Reported Segment Earnings ($ mm) $1,745 $1,464

 WTI Oil Price ($/bbl)   $76.20 $68.30
 

 NYMEX Gas Price ($/mcf)  $4.53  $3.60

 Oxy’s Realized Prices

  Worldwide Oil ($/bbl)  $70.71 $62.79

  US Natural Gas ($/mcf)   $4.20  $3.04

Third Quarter 2010 Earnings - Oil & Gas Segment

 

 

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5

Third Quarter 2010 Earnings - Oil & Gas Segment

        3Q10  3Q09

Oil and Gas Production Volumes (mboe/d)  751  705

Oil and Gas Sales Volumes (mboe/d)    749  702

 – Year-over-year increases of over 6.5%.

• Most of the year-over-year production increases came from the
 Middle East / North Africa region, with smaller increases in Argentina
 and the US.

• Sales volume differs from the production volumes above due mainly
 to the timing of a lifting in Argentina.

• Exploration expense was $83 million in 3Q10.

 

 

5

 

 

 

6

Third Quarter 2010 Earnings - Oil & Gas
Segment - Cash Production Costs and Taxes

Third Quarter 2010 Earnings - Oil & Gas
Segment - Cash Production Costs and Taxes

• Oil and gas cash production costs, excluding production
 and property taxes, were $10.25 per boe for YTD 2010.

 

 – Full-year 2009 costs were $9.37 a boe.

 – The nine-month increase reflects $0.35 a barrel higher CO2 costs,
 due to our decision to expense 100% of injected CO2 beginning
 in 2010, and higher field support operations, workovers and
 maintenance costs.

 – The higher domestic workover activity is mostly in the Permian.

• Taxes - other than on income were $1.76 per boe for the
 first nine months of 2010 compared to $1.60 per boe for
 all of 2009. These costs, which are sensitive to product
 prices, reflect the effect of higher crude oil and gas prices
 in 2010.

 

 

6

 

 

 

7

($ in millions)

*Lower feedstock costs

• Core Results for 3Q10 of $189 mm vs. $108 mm in 2Q10

 – Results reflect improvement from 2Q10 in both volumes and margins across most product
 lines. Export markets have improved more rapidly than domestic markets due in part to the
 favorable feedstock costs in North America versus Europe and Asia.

Third Quarter 2010 Earnings - Chemical
Segment Variance Analysis - 3Q10 vs. 2Q10

 

 

7

 

 

 

8

($ in millions)

• Core Results for 3Q10 of $163 mm vs. $77 mm in 3Q09

 – The increase in earnings was mainly due to trading and marketing income and higher
 margins in the pipeline businesses.

Third Quarter 2010 Earnings - Midstream
Segment Variance Analysis - 3Q10 vs. 3Q09

 

 

8

 

 

 

9

Third Quarter 2010 Earnings -
Nine Months Results & Capital Spending

Third Quarter 2010 Earnings -
Nine Months Results & Capital Spending

      YTD2010 YTD2009

• Net Income ($ mm)   $3,318  $1,977

• EPS (diluted)    $4.07  $2.43

• Core Income ($ mm)  $3,336  $2,025

• EPS (diluted)    $4.09  $2.48

• Capital spending for 3Q10 was about $1.1 billion and $2.8 billion for
 YTD 2010.

 – Year to-date capital expenditures by segment were 82% in Oil and Gas, 13% in
 Midstream with the remainder in Chemicals.

 – Our total year capital is expected to be about $4.4 billion.

 – The capital spending rate will increase in 4Q10 largely in our domestic operations
 and in Iraq.

 

 

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10

Third Quarter 2010 Earnings -
Shares Outstanding and Debt

 Shares Outstanding (mm) YTD10 9/30/10

 Weighted Average Basic  812.4

 Weighted Average Diluted  813.8

 

 Basic Shares Outstanding    812.6 

 Diluted Shares Outstanding   814.0

      9/30/10 12/31/09 

 

 Debt/Capital   7%  9% 

 

 

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11

Cash Flow
From
Operations
$6,600

Beginning
Cash $1,200
12/31/09

($ in millions)

– 2010 YTD free cash flow after capex and dividends but before
 acquisition activity and debt retirements was about $3.1 billion.

Third Quarter 2010 Earnings - Cash Flow 2010 YTD

 

 

11

 

 

 

12

Third Quarter 2010 Earnings - Acquisitions

Third Quarter 2010 Earnings - Acquisitions

• Our acquisition costs in 3Q10 were $1.1 billion and we expect to
 spend about $300 million in the first part of 4Q10.

 – Through these acquisitions we expect to add about 10 mboe/d average
 production in 4Q10.

 – These acquisitions have a run rate of about 12 mboe/d.

 – Of this production about a third will be liquids and the balance will be gas.

 – Over the medium-term, we expect these acquisitions to add at least 25
 mboe/d of production.

 – This increase will come largely from oil production.

• In addition to these acquisitions, we expect to add an additional
 380,000 acres to our California acreage position and interests in
 100,000 acres in other producing areas.

 – Our California acreage will now reach approximately 1.6 million acres, an
 overwhelming portion of which consists of mineral interests.

• We don't contemplate any more sizeable acquisitions of acreage
 in California.

 

 

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13

Third Quarter 2010 Earnings - Rig Activity

Third Quarter 2010 Earnings - Rig Activity

• Drilling rigs

 – At the beginning of 2010 we were running 11 development rigs in
 California and 5 rigs in the Permian.

 – We are currently running 16 drilling rigs in California and 9 in the
 Permian and expect our year-end exit rate rig count to reach 19 rigs in
 California and 14 in the Permian.

 – Next year, we anticipate working 21 rigs in California and 15 rigs in the
 Permian.

 – In the current environment, we are cautious about natural gas drilling
 and may reevaluate our 2011 US natural gas drilling program.

 

 

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14

Third Quarter 2010 Earnings - Rig Activity

Third Quarter 2010 Earnings - Rig Activity

• Workover rigs

 – In the Permian, we are currently running 94 workover rigs, compared
 with the 57 rigs we had at the beginning of the year.

 – We currently expect to be operating 110 rigs at the end of 2010.

 – A portion of workover expenditures are expensed as opposed to being
 capitalized depending on their nature.

 – Our operating costs have recently increased due to higher workover
 activity to $10.94 per boe in 3Q10 and further increases are expected in
 4Q10.

 

 

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15

Third Quarter 2010 Earnings -
Oil and Gas Production - 4Q10 Outlook

• We expect oil and gas production and sales volumes to be
 in the range of 760 to 770 mboe/d at 3Q10 average oil
 prices.

 – Volume increases in 4Q10 are expected to come from California,
 Oman's Mukhaizna field and the acquisitions.

 – An increase in oil prices of $5.00 per barrel from 3Q10 levels would
 result in about 4 mb/d lower production due to the impact of higher
 prices affecting our production sharing and similar contracts.

• Based on the development plan at the Zubair field in Iraq,
 we believe we should have a small amount of production
 in 4Q10.

 – We do not expect to report any sales from Iraq until 1Q11.

 – The field development plan is on track for us to meet next year's
 production targets.

 

 

15

 

 

 

16

Third Quarter 2010 Earnings - 4Q10 Outlook

• 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 mm BTU in domestic gas prices has a $27 mm impact
 on quarterly pretax income; the current NYMEX gas price is around $3.90
 p/mcf.

• We expect 4Q10 exploration expense to be about $110 mm
 for seismic and drilling for our exploration programs.

 

 

16

 

 

 

17

Third Quarter 2010 Earnings - 4Q10 Outlook

Third Quarter 2010 Earnings - 4Q10 Outlook

• The Chemical segment is expected to provide earnings
 for 4Q10 of $100 to $120 million.

 – The fourth quarter is usually the weakest quarter for the
 business.

 – We expect that continued margin improvements will be offset by
 the typical seasonal slowdown in the housing, construction,
 bleach and fertilizer markets.

• We expect our combined worldwide tax rate in 4Q10 to
 be about 41 percent.

 

 

17

 

 

 

18

Third Quarter 2010 Earnings - Century Plant

Third Quarter 2010 Earnings - Century Plant

• The Century Plant has just started operations and will be
 providing additional CO2 to support growth in our
 Permian operations.

 – We expect that the plant will yield about 180 mmcf/d of CO2 next
 year to support our Permian EOR operations.

 – We are in the process of contracting additional CO2 from other
 sources and will use penalty payments due from the operator for
 under production to support these activities.

 – We expect to have sufficient CO2 to meet the needs of our
 previously disclosed expansion of flooding activities.

 

 

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19

Third Quarter 2010 Earnings - California Update

Third Quarter 2010 Earnings - California Update

• Exploration Activity:

 – During the first nine months of 2010, we drilled 7 conventional
 exploration and extension wells in California.

 – Of these, 5 were outside of the Kern County Discovery area.

 – Two of these wells are currently being tested.

 – We also drilled 12 unconventional exploration wells in the first nine
 months of 2010, of which 3 were successful and 5 are being tested.

 – In 4Q10, we expect to drill 10 exploration wells of which 2 will be
 conventional and the remaining 8 wells will be non-conventional.

 – Our 4Q10 exploration program will target smaller prospects until permits
 are obtained for larger ones.

• Exploitation Activity:

 – We have drilled 13 conventional exploitation wells in the Kern County
 Discovery area and 15 unconventional exploitation wells in California in
 the first nine months.

 – Due to delays in permitting, we've reduced our exploitation plans for the
 second half of the year by about 10 wells.

 

 

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20

Third Quarter 2010 Earnings - California Update

Third Quarter 2010 Earnings - California Update

• We are continuing to have problems with our gas processing
 and gathering infrastructure at Elk Hills.

• As a result, we expect our gas and related NGL production to
 be about flat in 4Q10.

 

• We have ordered and commenced construction of the first
 new processing plant and will order the second plant shortly.

 

• Once complete, the new processing plants will increase
 productive capacity, improve yields, enhance netbacks and
 lower operating costs.

• We are also actively working to optimize and debottleneck our
 existing facilities to improve performance.

• In addition, we are shifting our drilling to oil wells, which we
 expect will result in higher oil production in 4Q10.

 

 

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21

 

21

EXHIBIT 99.5

Forward-Looking Statements

Portions of this report contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects.  Factors that could cause results to differ materially include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; not successfully completing, or any material delay of, any development of new fields, expansion, capital expenditure, efficiency-improvement project, acquisition or disposition; potential failure to achieve expected production from existing and future oil and gas development projects; exploration risks such as drilling unsuccessful wells; any general economic recession or slowdown domestically or internationally; higher-than-expected costs; potential liability for remedial actions under existing or future environmental regulations and litigation; potential liability resulting from pending or future litigation; general domestic and international political conditions; potential disruption or interruption of Occidental’s production or manufacturing or damage to facilities due to accidents, chemical releases, labor unrest, weather, natural disasters, political events or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates.  Words such as “estimate”, “project”, “predict”, “will”, “would”, “should”, “could”, “may”, “might”, “anticipate”, “plan”, “intend”, “believe”, “expect” or sim ilar expressions that convey the uncertainty of future events or outcomes generally indicate forward-looking statements.  You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report.  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.  Material risks that may affect Occidental’s results of operations and financial position appear in Part 1, Item 1A “Risk Factors” of the 2009 Form 10-K.