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) November 1, 2006
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 7 – Regulation FD
Item 7.01. Regulation FD Disclosure
Attached as Exhibit 99.1 is a presentation made on November 1, 2006, by Stephen I. Chazen, Occidental’s Senior Executive Vice President and Chief Financial Officer, at the Merrill Lynch Global Energy Conference 2006.
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.
|
OCCIDENTAL PETROLEUM CORPORATION |
||
|
(Registrant) |
||
|
DATE: November 1, 2006 |
/s/ Jim A. Leonard |
|
|
Jim A. Leonard, Vice President and Controller (Principal Accounting and Duly Authorized Officer) |
EXHIBIT INDEX
|
99.1 |
Presentation dated November 1, 2006 |
EXHIBIT 99.1
November 2006
Stephen I. Chazen
Senior Executive Vice President
and
Chief Financial Officer
Merrill Lynch
Global Energy Conference 2006
1
Nine Months Results
YTD2006
YTD2005
Core Income ($ mm)
$3,514
$2,616
Core EPS (diluted)
$4.07
$3.20
ROE
19%
34%
ROCE*
17%
27%
Oil and Gas Earnings ($ mm)
$5,740
$4,172
Oil and Gas production (mboe/day)
596
519
+ 53 mboe/day from Vintage
+ 18 mboe/day from Libya
WTI Oil Price ($/bbl)
$68.24
$55.40
Oxy’s Worldwide Realized Oil price
$58.41
$48.24
Capital Spending ($ mm)
$1,992
$1,583
*(see Appendix for GAAP reconciliation)
2
Cash Flow 2006 Year-To-Date
$7,200
$1,000
$2,400
$2,000
$1,300
$610
$460
$30
$1,400
Available
Cash
12/31/05
Asset Sale
Proceeds
Acquisitions
Capex
Share
Repurchase
Reduction
Dividends
Other
Ending Cash
Balance
9/30/06
Beginning
Cash
$2,400
Flow From
Cash
Operations
$4,800
Other
Other
($ in millions)
Debt
3
Occidental Petroleum - Profile
Oil & gas production growth
Large pipeline of projects
High quality assets with good
returns
Volume growth of 5-8 percent
per year
Disciplined capital program
Maintain top quartile financial
returns
Maintain “A” credit rating
4
Corporate Strategy
Focus on core areas
US - California & Permian Basin
Middle East-North Africa
Latin America
Maintain strong balance sheet
Maintain investment discipline
Create value
Acquire assets with upside potential
Capture EOR projects with large volumes of oil in place
Maximize free cash flow from chemicals
Continue to increase the dividend regularly
5
Competitive Advantages
Economies of scale
Infrastructure
Operating experience
Large technical data base
Strong regional relations
6
Worldwide Oil & Gas Operations
Long Beach
Permian Basin
Horn Mountain
Hugoton
Elk Hills
Colombia
Libya
Russia
Pakistan
Oman
U.A.E.
Yemen
Qatar
.
.
.
Argentina
Bolivia
7
Oil & Gas ROCE*
2005
2004
2003
2002
2001
International
Returns
(%)
56.56
41.40
31.03
26.08
25.97
WTI
($/Barrel)
36
33
29
37
24
Domestic
Returns
(%)
26
20
16
10
17
* Net income from continuing operations divided by average capital employed.
(see Appendix for GAAP reconciliation)
8
Reserves Replacement
2005
2004
2003
2002
2001
3-Year Average
5-Year Average
243
217
250
172
224
237
221
139
36
107
68
4
94
71
382
253
357
240
228
331
292
64
86
70
72
98
72
76
Organic
Growth
Acquisitions
Total
Organic
(% Total)
Million BOE
191
190
191
183
168
191
185
Worldwide
Production
(million boe)
(see Appendix for GAAP reconciliation)
9
Oxy – Permian Basin
Large resource base
Low decline rate & long-lived
properties
YTD Production (boepd)
2006: 200,000
2005: 184,000
Drilling rate: ~330 wells/yr.
CO2 projects on track
Significant cash generation
Natural area for
consolidation
Lubbock
Amarillo
Bravo Dome
Texas
New
Mexico
Oklahoma
Salt Creek
Sharon Ridge
Oxy Acreage
Cogdell
Indian
Basin
Area
Hobbs
Midland
Denver City Unit
10
California Production (boepd)
2006E: 127,000
2005: 116,000
Elk Hills Drilling rate: ~280 wells/yr.
Shallow oil zone
Shale development
EOR Opportunities
Nitrogen flood
CO2 pilots
Plains Operations October 1
Oxy – California Oil & Gas Operations
11
U.S. – Plains Properties Acquisition
Transaction closed on 9-29-06
Principal Properties
California (San Joaquin Basin)
West Texas (Permian Basin)
Purchase price of $859 million
Reserves & Production
Estimated Proved Reserves
56 million BOE
Current Production
8,900 BOE/Day
50-50 split between oil & gas
Light oil makes up 85% of oil reserves & production
Expect meaningful production growth – primarily in
California
12
Argentina – Growth
2005 production – 37 mboed
2006* production – 41 mboed
Inventory of 700 drilling locations
2006: 145 wells
2007: 200+ wells
Identified 28 waterflood projects
Additional technology driven
opportunities
Consolidation opportunities
Mature areas ripe for
consolidation
2 Exploration Blocks
Increase production to 70 mboed
by 2011
San Jorge
Basin
Cuyo
Basin
*Annualized
13
Argentina – San Jorge Basin
Comodoro Rivadavia
Argentina
Caleta Olivia
Koluel Kayke
Oxy Blocks
Oil
Gas
Pipelines
Proved Undeveloped
14
UAE / Qatar – Dolphin Project
$4 billion gross capital
Oxy’s share 24.5%
Project status
Export pipeline complete
Platforms, wells &
receiving facilities on or
ahead of schedule
Gas processing plant may
or may not be fully
operational at year-end
Substantial production
ramp up in 2007
Phase I
15
Oman – Mukhaizna Project
Project Overview
Gross Capital – $3.5 Billion
1800+ wells
Central processing facility
Water treatment plant
Steam generation facilities
Pipelines
2006 Work Program
$450 – $500 MM (Gross)
Drill 50 - 55 wells
Initial steam injection
16
Libya Update
2006 YTD Production
– 21 mboed
Expect to spud 1st
exploration well in 4Q
Seismic completed –
Blocks 106, 124, 163,
offshore
12 -16 exploration
wells planned in
2006/07
2006 Drilling Program
Current Seismic Activity
Completed Seismic Program
NC143
NC145
NC150
NC74
NC144
NC29
36
53
35
52
163
131
59
106
124
103
102
17
UAE Natural Gas Development Projects
Multi-Tcf Potential Fields
Bab Field
Shah Field
Expect to present
proposals by YE 2006
First Gas target 2010
Qatar
Saudi
Arabia
UAE
Oman
Arabian Gulf
Maqta
Abu Dhabi
Taweelah
Dubai
Fujairah
Al Ain
0
100
200 Km
Bab Field
Shah Field
18
Oil & Gas Capital (2006-2010)
Growth Capital
Exploration
Argentina
Dolphin
Mukhaizna
Total Growth Capital
Base Capital
Total Oil & Gas
300
100
255
175
830
1,970
2,800
300
150
90
210
750
1,850
2,600
300
100
160
175
735
1,680
2,415
300
75
315
50
740
1,395
2,135
300
75
210
50
635
1,515
2,150
2006
2007
2008
2009
2010
$ million
19
Worldwide Production Outlook
Does not depend on exploration success
Does not include future acquisitions
Does not include new EOR/development projects
Does not include swap/sale of mature non-
operated properties
Range reflects timing differences
20
Worldwide Production Outlook
Thousand Barrels/Day
526
640
660
662
615
680
715
722
750
2005
2006
2007
2008
2009
2010
Assumes $50 WTI Price
665
21
Oil Price Sensitivity
$40
$60
WTI Price
($/Barrel)
PSC
Production Impact
(Barrels/Day)
+ 10,000
- 8,000
22
Additional Growth Opportunities
Base Production (2010)…….…
New EOR/development projects
Middle East/North Africa ….
Latin America……………....
Exploration …………………….
Domestic acquisitions ………..
Mature non-operated …………
Total ……………………………
665 - 750
50 - 75
20 - 30
20 - 40
35 - 50
(20 - 30)
770 - 915
(Thousand BOE/Day)
5.3%-8.5%
9.3%-14.8%
Growth Rate
Production
23
Creating Shareholder Value
New projects must meet expectations for good
returns
Return Targets*
Domestic – 15+%
International – 20+%
Compare new projects & asset acquisitions with
share repurchases
Make decisions based on creating long-term
value for shareholders
*Assumes Moderate Product Prices
24
Gross Cash Flow Uses
43
19
—
26
12
100
2003
43
5
—
42
10
100
2004
Capital
Acquisitions
Share Repurchase
Debt Reduction & Cash
Dividends
2005
Percentage of Total
42
20
—
30
8
100
YTD2006
39
34
26
(8)
9
100
25
Share Repurchase Program
Spent $1.3 Billion to Repurchase 26.7 mm shares YTD
2006 at an average price of $48.22 a share
Repurchased 6.6 mm shares in 3Q06 at an average
price of $47.98 a share – 67% purchased during month
of September
14.4 mm shares remaining under current repurchase
authorization
Reduce outstanding post-split shares to 800 million
26
Conclusion - Focus on Key Metrics
Focus on key performance metrics that drive top
quartile financial returns
Continue to improve quality of assets
Grow reserves at a rate exceeding production
Keep finding & development costs low
Optimize profit/BOE
Optimize free cash flow/BOE
Maintain financial discipline
Maintain “A” credit rating
Achieve top quartile returns on equity & capital
employed
Generate top quartile total returns
27
Occidental Petroleum Corporation
Statements in this presentation 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 results to differ materially include, but are not limited
to:
exploration risks such as drilling of unsuccessful wells, global commodity pricing fluctuations and
supply/demand considerations
for oil, gas and chemicals; higher than expected costs; political risks;
changes in tax rates; unrealized acquisition benefits
or higher than expected integration costs; and not
successfully completing (or any material delay in) any expansion, capital
expenditure, acquisition or
disposition. You should not place undue reliance on these forward-looking statements which
speak
only as of the date of this presentation. 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. The United
States Securities and Exchange Commission (SEC) permits oil and natural gas
companies, in their filings with the SEC, to
disclose only proved reserves demonstrated by actual
production or conclusive formation tests to be economically producible under
existing economic and
operating conditions. We use certain terms in this presentation, such as probable, possible,
estimated
and recoverable reserves and oil in place, that the SEC's guidelines strictly prohibit us from using in
filings with
the SEC. Additionally, the SEC requires oil and natural gas companies, in their filings, to
disclose non-financial statistical
information about their consolidated entities separately from such
information about their equity holdings and not to show
combined totals. Certain information in this
presentation is shown on a combined basis; however, the information is disclosed
separately in the
Appendix. U.S investors are urged to consider carefully the disclosure in our Form 10-K, available
through
1-888-699-7383 or at
www.oxy.com.
You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
28
29
Appendix
30
OxyChem - 16.7
Chemical Companies Comparisons
OxyChem – 22.2
2.9
8.1
8.0
11.9
11.6
15.7
15.1
18.4
7.6
10.6
7.2
9.9
11.2
15.5
7.3
11.1
13.7
18.4
13.0
19.4
13.4
19.4
11.8
20.7
EBIT
Percent of Sales
EBITDA
Excludes special items.
(see Appendix for GAAP reconciliation)
31
Occidental Petroleum Corporation
Core Income
Reconciliation to Generally Accepted Accounting Principles (GAAP)
|
($ millions, except per-share amounts) |
Nine |
Diluted |
Nine |
Diluted | |||||||
|
Total Reported Earnings |
3,254 |
$ |
3.77 |
4,129 |
$ |
5.06 | |||||
|
Oil and Gas |
|||||||||||
|
Segment Earnings |
5,740 |
4,172 |
|||||||||
|
Less: |
|||||||||||
|
Contract settlement |
— |
(26 |
) |
||||||||
|
Hurricane insurance charge |
— |
(9 |
) |
||||||||
|
Segment core earnings |
5,740 |
4,207 |
|||||||||
|
Chemicals |
|||||||||||
|
Segment Earnings |
745 |
442 |
|||||||||
|
Less: |
|||||||||||
|
Write-off of plants |
— |
(159 |
) |
||||||||
|
Hurricane insurance charge |
— |
(5 |
) |
||||||||
|
Segment core earnings |
745 |
606 |
|||||||||
|
Total Segment Core Earnings |
6,485 |
4,813 |
|||||||||
|
Corporate |
|||||||||||
|
Corporate results - non segment * |
(3,231 |
) |
(485 |
) |
|||||||
|
Less: |
|||||||||||
|
Debt purchase expense |
— |
(41 |
) |
||||||||
|
Gain on sale of Lyondell shares |
— |
140 |
|||||||||
|
Gain on sale of Premcor-Valero shares |
— |
726 |
|||||||||
|
State tax issue charge |
— |
(10 |
) |
||||||||
|
Settlement of federal tax issue |
— |
619 |
|||||||||
|
Reversal of tax reserves |
— |
335 |
|||||||||
|
Equity investment impairment |
— |
(15 |
) |
||||||||
|
Equity investment hurricane insurance charge |
— |
(2 |
) |
||||||||
|
Hurricane insurance charge |
— |
(10 |
) |
||||||||
|
Tax effect of pre-tax adjustments |
— |
(225 |
) |
||||||||
|
Discontinued operations, net of tax |
(260 |
) |
192 |
||||||||
|
Cumulative effect of accounting changes, net of tax |
— |
3 |
|||||||||
|
Corporate core results - non segment |
(2,971 |
) |
(2,197 |
) |
|||||||
|
Total Core Earnings |
3,514 |
$ |
4.07 |
2,616 |
$ |
3.20 | |||||
* Interest expense, income taxes, G&A expense and other, and non-core items.
Occidental Petroleum Corporation
Return on Capital Employed (%)
($ Millions)
|
Reconciliation to Generally Accepted Accounting Principles (GAAP) |
2004 |
Nine |
2005 |
Nine | |||||||
|
GAAP measure - earnings applicable to common shareholders |
2,568 |
4,129 |
5,281 |
3,254 |
|||||||
|
Interest expense |
239 |
178 |
201 |
80 |
|||||||
|
Tax effect of interest expense |
(84 |
) |
(62 |
) |
(70 |
) |
(28 |
) | |||
|
Earnings before tax-effected interest expense |
2,723 |
4,245 |
5,412 |
3,306 |
|||||||
|
GAAP stockholders' equity |
10,550 |
13,909 |
15,032 |
18,858 |
|||||||
|
DEBT |
|||||||||||
|
GAAP debt |
|||||||||||
|
Debt, including current maturities |
3,804 |
2,917 |
2,919 |
2,893 |
|||||||
|
Non-GAAP debt |
|||||||||||
|
Capital lease obligation |
26 |
25 |
25 |
25 |
|||||||
|
Subsidiary preferred stock |
75 |
75 |
75 |
75 |
|||||||
|
Total debt |
3,905 |
3,017 |
3,019 |
2,993 |
|||||||
|
Total capital employed |
14,455 |
16,926 |
18,051 |
21,851 |
|||||||
|
Return on capital employed (%) |
27 |
17 |
|||||||||
Oil & Gas ROCE
Reconciliation to Generally Accepted Accounting Principles (GAAP)
($ Millions)
|
Consolidated Subsidiaries Capitalized Costs |
Consolidated Subsidiaries Results of Operations | |||||||||||
|
US |
Foreign |
Total |
US |
Foreign |
Total | |||||||
|
Operations including Ecuador |
||||||||||||
|
2000 |
8,531 |
1,462 |
9,993 |
|||||||||
|
2001 |
8,713 |
1,520 |
10,233 |
1,450 |
350 |
1,800 | ||||||
|
2002 |
8,713 |
1,981 |
10,694 |
832 |
618 |
1,450 | ||||||
|
2003 |
8,908 |
2,339 |
11,247 |
1,401 |
652 |
2,053 | ||||||
|
2004 |
8,884 |
2,960 |
11,844 |
1,797 |
984 |
2,781 | ||||||
|
2005 |
10,639 |
3,932 |
14,571 |
2,578 |
1,384 |
3,962 | ||||||
|
Less – Ecuador |
||||||||||||
|
2000 |
— |
85 |
85 |
|||||||||
|
2001 |
— |
109 |
109 |
— |
14 |
14 | ||||||
|
2002 |
— |
176 |
176 |
— |
18 |
18 | ||||||
|
2003 |
— |
223 |
223 |
— |
78 |
78 | ||||||
|
2004 |
— |
290 |
290 |
— |
184 |
184 | ||||||
|
2005 |
— |
363 |
363 |
— |
246 |
246 | ||||||
|
Continuing Operations |
||||||||||||
|
2000 |
8,531 |
1,377 |
9,908 |
|||||||||
|
2001 |
8,713 |
1,411 |
10,124 |
1,450 |
336 |
1,786 | ||||||
|
2002 |
8,713 |
1,805 |
10,518 |
832 |
600 |
1,432 | ||||||
|
2003 |
8,908 |
2,116 |
11,024 |
1,401 |
574 |
1,975 | ||||||
|
2004 |
8,884 |
2,670 |
11,554 |
1,797 |
800 |
2,597 | ||||||
|
2005 |
10,639 |
3,569 |
14,208 |
2,578 |
1,138 |
3,716 | ||||||
|
ROCE Returns |
||||||||||||
|
2001 |
17% |
24% |
||||||||||
|
2002 |
10% |
37% |
||||||||||
|
2003 |
16% |
29% |
||||||||||
|
2004 |
20% |
33% |
||||||||||
|
2005 |
26% |
36% |
||||||||||
Worldwide Production and Proved Reserve Additions
Million BOE
Reconciliation to Generally Accepted Accounting Principles (GAAP)
|
Consolidated Subsidiaries |
Other Interests |
Worldwide | |||||||||
|
OIL |
GAS |
BOE |
OIL |
GAS |
BOE |
OIL |
GAS |
BOE | |||
|
PRODUCTION |
|||||||||||
|
Operations including Ecuador |
|||||||||||
|
2001 |
124 |
241 |
164 |
9 |
— |
9 |
133 |
241 |
173 | ||
|
2002 |
142 |
229 |
180 |
8 |
— |
8 |
150 |
229 |
188 | ||
|
2003 |
153 |
221 |
190 |
10 |
— |
10 |
163 |
221 |
200 | ||
|
2004 |
159 |
233 |
198 |
9 |
— |
9 |
168 |
233 |
207 | ||
|
2005 |
158 |
246 |
199 |
7 |
6 |
8 |
165 |
252 |
207 | ||
|
Less – Ecuador |
|||||||||||
|
2001 |
5 |
— |
5 |
— |
— |
— |
5 |
— |
5 | ||
|
2002 |
5 |
— |
5 |
— |
— |
— |
5 |
— |
5 | ||
|
2003 |
9 |
— |
9 |
— |
— |
— |
9 |
— |
9 | ||
|
2004 |
17 |
— |
17 |
— |
— |
— |
17 |
— |
17 | ||
|
2005 |
16 |
— |
16 |
— |
— |
— |
16 |
— |
16 | ||
|
Continuing Operations |
|||||||||||
|
2001 |
119 |
241 |
159 |
9 |
— |
9 |
128 |
241 |
168 | ||
|
2002 |
137 |
229 |
175 |
8 |
— |
8 |
145 |
229 |
183 | ||
|
2003 |
144 |
221 |
181 |
10 |
— |
10 |
154 |
221 |
191 | ||
|
2004 |
142 |
233 |
181 |
9 |
— |
9 |
151 |
233 |
190 | ||
|
2005 |
142 |
246 |
183 |
7 |
6 |
8 |
149 |
252 |
191 | ||
|
Three-Year Average |
143 |
233 |
182 |
9 |
2 |
9 |
151 |
235 |
191 | ||
|
Five-Year Average |
137 |
234 |
176 |
9 |
1 |
9 |
145 |
235 |
185 | ||
Worldwide Production and Proved Reserve Additions
Million BOE
Reconciliation to Generally Accepted Accounting Principles (GAAP)
|
Consolidated Subsidiaries |
Other Interests |
Worldwide | ||||||||||||||||||
|
OIL |
GAS |
BOE |
OIL |
GAS |
BOE |
OIL |
GAS |
BOE | ||||||||||||
|
Proved Reserve Additions |
||||||||||||||||||||
|
2001 |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
21 |
(49 |
) |
13 |
8 |
— |
8 |
29 |
(49 |
) |
21 |
|||||||||
|
Improved Recovery |
139 |
23 |
143 |
— |
— |
— |
139 |
23 |
143 |
|||||||||||
|
Extensions and discoveries |
56 |
122 |
76 |
— |
— |
— |
56 |
122 |
76 |
|||||||||||
|
Purchases |
3 |
4 |
4 |
— |
— |
— |
3 |
4 |
4 |
|||||||||||
|
Operations including Ecuador |
219 |
100 |
236 |
8 |
— |
8 |
227 |
100 |
244 |
|||||||||||
|
Less: Ecuador |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
11 |
— |
11 |
— |
— |
— |
11 |
— |
11 |
|||||||||||
|
Extensions and discoveries |
5 |
— |
5 |
— |
— |
— |
5 |
— |
5 |
|||||||||||
|
16 |
— |
16 |
— |
— |
— |
16 |
— |
16 |
||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
10 |
(49 |
) |
2 |
8 |
— |
8 |
18 |
(49 |
) |
10 |
|||||||||
|
Improved Recovery |
139 |
23 |
143 |
— |
— |
— |
139 |
23 |
143 |
|||||||||||
|
Extensions and discoveries |
51 |
122 |
71 |
— |
— |
— |
51 |
122 |
71 |
|||||||||||
|
Purchases |
3 |
4 |
4 |
— |
— |
— |
3 |
4 |
4 |
|||||||||||
|
Continuing Operations |
203 |
100 |
220 |
8 |
— |
8 |
211 |
100 |
228 |
|||||||||||
|
2002 |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
13 |
(54 |
) |
4 |
(1 |
) |
— |
(1 |
) |
12 |
(54 |
) |
3 |
|||||||
|
Improved Recovery |
112 |
151 |
137 |
5 |
— |
5 |
117 |
151 |
142 |
|||||||||||
|
Extensions and discoveries |
40 |
60 |
50 |
— |
— |
— |
40 |
60 |
50 |
|||||||||||
|
Purchases |
56 |
59 |
66 |
2 |
— |
2 |
58 |
59 |
68 |
|||||||||||
|
Operations including Ecuador |
221 |
216 |
257 |
6 |
— |
6 |
227 |
216 |
263 |
|||||||||||
|
Less: Ecuador |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
12 |
— |
12 |
— |
— |
— |
12 |
— |
12 |
|||||||||||
|
Extensions and discoveries |
11 |
— |
11 |
— |
— |
— |
11 |
— |
11 |
|||||||||||
|
23 |
— |
23 |
— |
— |
— |
23 |
— |
23 |
||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
1 |
(54 |
) |
(8 |
) |
(1 |
) |
— |
(1 |
) |
— |
(54 |
) |
(9 |
) | |||||
|
Improved Recovery |
112 |
151 |
137 |
5 |
— |
5 |
117 |
151 |
142 |
|||||||||||
|
Extensions and discoveries |
29 |
60 |
39 |
— |
— |
— |
29 |
60 |
39 |
|||||||||||
|
Purchases |
56 |
59 |
66 |
2 |
— |
2 |
58 |
59 |
68 |
|||||||||||
|
Continuing Operations |
198 |
216 |
234 |
6 |
— |
6 |
204 |
216 |
240 |
|||||||||||
|
2003 |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(1 |
) |
44 |
6 |
6 |
— |
6 |
5 |
44 |
12 |
||||||||||
|
Improved Recovery |
85 |
70 |
97 |
4 |
9 |
6 |
89 |
79 |
102 |
|||||||||||
|
Extensions and discoveries |
41 |
597 |
141 |
6 |
— |
6 |
47 |
597 |
147 |
|||||||||||
|
Purchases |
98 |
55 |
107 |
— |
— |
— |
98 |
55 |
107 |
|||||||||||
|
Operations including Ecuador |
223 |
766 |
351 |
16 |
9 |
18 |
239 |
775 |
368 |
|||||||||||
|
Less: Ecuador |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Extensions and discoveries |
11 |
— |
11 |
— |
— |
— |
11 |
— |
11 |
|||||||||||
|
11 |
— |
11 |
— |
— |
— |
11 |
— |
11 |
||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(1 |
) |
44 |
6 |
6 |
— |
6 |
5 |
44 |
12 |
||||||||||
|
Improved Recovery |
85 |
70 |
97 |
4 |
9 |
6 |
89 |
79 |
102 |
|||||||||||
|
Extensions and discoveries |
30 |
597 |
130 |
6 |
— |
6 |
36 |
597 |
136 |
|||||||||||
|
Purchases |
98 |
55 |
107 |
— |
— |
— |
98 |
55 |
107 |
|||||||||||
|
Continuing Operations |
212 |
766 |
340 |
16 |
9 |
18 |
228 |
775 |
357 |
|||||||||||
Worldwide Production and Proved Reserve Additions
Million BOE
Reconciliation to Generally Accepted Accounting Principles (GAAP)
|
Consolidated Subsidiaries |
Other Interests |
Worldwide | ||||||||||||||||||
|
OIL |
GAS |
BOE |
OIL |
GAS |
BOE |
OIL |
GAS |
BOE | ||||||||||||
|
2004 |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
5 |
241 |
45 |
5 |
(9 |
) |
4 |
10 |
232 |
49 |
||||||||||
|
Improved Recovery |
88 |
185 |
119 |
1 |
— |
1 |
89 |
185 |
120 |
|||||||||||
|
Extensions and discoveries |
30 |
191 |
62 |
2 |
— |
2 |
32 |
191 |
64 |
|||||||||||
|
Purchases |
39 |
7 |
40 |
(4 |
) |
— |
(4 |
) |
35 |
7 |
36 |
|||||||||
|
Operations including Ecuador |
162 |
624 |
266 |
4 |
(9 |
) |
3 |
166 |
615 |
269 |
||||||||||
|
Less: Ecuador |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(3 |
) |
— |
(3 |
) |
— |
— |
— |
(3 |
) |
— |
(3 |
) | |||||||
|
Extensions and discoveries |
18 |
— |
18 |
— |
— |
— |
18 |
— |
18 |
|||||||||||
|
15 |
— |
15 |
— |
— |
— |
15 |
— |
15 |
||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
8 |
241 |
48 |
5 |
(9 |
) |
4 |
13 |
232 |
52 |
||||||||||
|
Improved Recovery |
88 |
185 |
119 |
1 |
— |
1 |
89 |
185 |
120 |
|||||||||||
|
Extensions and discoveries |
12 |
191 |
44 |
2 |
— |
2 |
14 |
191 |
46 |
|||||||||||
|
Purchases |
39 |
7 |
40 |
(4 |
) |
— |
(4 |
) |
35 |
7 |
36 |
|||||||||
|
Continuing Operations |
147 |
624 |
251 |
4 |
(9 |
) |
3 |
151 |
615 |
253 |
||||||||||
|
2005 |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(26 |
) |
30 |
(21 |
) |
8 |
6 |
9 |
(18 |
) |
36 |
(12 |
) | |||||||
|
Improved Recovery |
117 |
131 |
139 |
— |
— |
— |
117 |
131 |
139 |
|||||||||||
|
Extensions and discoveries |
52 |
427 |
123 |
1 |
— |
1 |
53 |
427 |
124 |
|||||||||||
|
Purchases |
112 |
164 |
139 |
— |
— |
— |
112 |
164 |
139 |
|||||||||||
|
Operations including Ecuador |
255 |
752 |
380 |
9 |
6 |
10 |
264 |
758 |
390 |
|||||||||||
|
Less: Ecuador |
||||||||||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(8 |
) |
— |
(8 |
) |
— |
— |
— |
(8 |
) |
— |
(8 |
) | |||||||
|
Improved Recovery |
10 |
— |
10 |
— |
— |
— |
10 |
— |
10 |
|||||||||||
|
Extensions and discoveries |
6 |
— |
6 |
— |
— |
— |
6 |
— |
6 |
|||||||||||
|
8 |
— |
8 |
— |
— |
— |
8 |
— |
8 |
||||||||||||
|
Organic |
||||||||||||||||||||
|
Revisions |
(18 |
) |
30 |
(13 |
) |
8 |
6 |
9 |
(10 |
) |
36 |
(4 |
) | |||||||
|
Improved Recovery |
107 |
131 |
129 |
— |
— |
— |
107 |
131 |
129 |
|||||||||||
|
Extensions and discoveries |
46 |
427 |
117 |
1 |
— |
1 |
47 |
427 |
118 |
|||||||||||
|
Purchases |
112 |
164 |
139 |
— |
— |
— |
112 |
164 |
139 |
|||||||||||
|
Continuing Operations |
247 |
752 |
372 |
9 |
6 |
10 |
256 |
758 |
382 |
|||||||||||
|
Averages |
3 Year |
% |
5 Year |
% |
||||||||||||||||
|
Organic |
237 |
72% |
221 |
76% |
||||||||||||||||
|
Purchases |
94 |
28% |
71 |
24% |
||||||||||||||||
|
Total |
331 |
292 |
||||||||||||||||||
Chemical - Percent of Sales
Reconciliation to Generally Accepted Accounting Principles (GAAP)
For the Year Ended December 31, 2005
|
Sales |
|||
|
Oil and Gas |
10,416 |
||
|
Chemical |
4,641 |
||
|
Other |
151 |
||
|
15,208 |
|||
|
Chemicals |
$ AMT |
% of Sales | |
|
Segment income |
607 |
||
|
Less: significant items affecting earnings |
|||
|
Hurricane insurance charges |
11 |
||
|
Write-off of plants |
159 |
||
|
Core earnings - EBIT |
777 |
16.7% | |
|
DD&A expense |
251 |
||
|
EBITDA |
1,028 |
22.2% |