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) May 30, 2007
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
|
Delaware |
1-9210 |
95-4035997 |
|
(State or
other jurisdiction
|
(Commission
|
(I.R.S.
Employer
|
|
10889
Wilshire Boulevard
|
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 by Occidental management in connection with the May 31, 2007, Sanford C. Bernstein Co., Inc. 23rd Annual Strategic Decisions Conference 2007.
Section 9 – Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
|
99.1 |
Presentation dated May 31, 2007 |
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: May 30, 2007 |
/s/ JIM A. LEONARD |
|
|
Jim A.
Leonard, Vice President and Controller
|
EXHIBIT INDEX
|
99.1 |
Presentation dated May 31, 2007 |
EXHIBIT 99.1
Occidental Petroleum Corporation
Sanford C. Bernstein Co., Inc.
23rd Annual Strategic Decisions Conference 2007
1
Dr. Ray R. Irani
Chairman, President and Chief Executive Officer
2
3
4
1999 - - 2006 Profitability
8-Year Average
($/Barrel
of Oil
Equivalent)
12.11
OXY
10.25
APA
9.31
APC
9.28
ECA
9.00
COP
8.58
CVX
8.06
XOM
7.98
MRO
7.90
BP
7.78
DVN
4.98
HES
For GAAP Reconciliation – see www.oxy.com
5
1999 - - 2006 Free Cash Flow
8-Year Average
($/Barrel
of Oil
Equivalent)
11.17
OXY
7.17
MRO
7.01
COP
6.60
CVX
6.48
XOM
5.89
BP
4.61
APA
4.36
DVN
4.35
HES
2.56
APC
0.05
ECA
For GAAP Reconciliation – see www.oxy.com
6
Cash From Operations
$ Millions
2,100
2002
3,074
2003
3,878
2004
5,337
2005
6,353
2006
7
Debt-to-Capitalization Ratio
Percentage
43
2002
37
2003
27
2004
17
2005
13
2006
10
3/2007
For GAAP Reconciliation – see www.oxy.com
8
Chemicals Profit Margins
2006 Operating Profits
as Percent of Sales
OxyChem 18.7
4.7
7.8
9.6
12.6
4.9
6.4
9.0
7.1
11.5
14.0
13.4
13.0
For GAAP Reconciliation – see www.oxy.com
9
Recent Transactions
BP
and Anadarko transactions strengthen
Oxy’s industry-leading Permian position and
core position in Qatar
Oxy exits non-core, non-operated properties
Sale
of remaining Lyondell shares completes
Oxy’s exit from petrochemicals
10
Worldwide Oil and Gas
California
Kansas/Oklahoma
Texas/New Mexico
Colombia
Argentina
Libya
Qatar
UAE
Oman
Yemen
Oxy Areas
11
2007 Production Outlook
Latin
America
13%
Permian
34%
Middle East/
North Africa
24%
California
24%
Other
U.S.
5%
U.S. Production 63%
12
U.S. Operations
California
Colorado
Kansas
New
Mexico
Oklahoma
Texas
2007 net production outlook
370,000 equivalent barrels/day
63% of worldwide total
Oxy Blocks
13
California Operations
Elk Hills
Los Angeles
THUMS
2007
net production
outlook
140,000
equivalent
barrels/day
24% of worldwide total
14
Texas and New Mexico Operations
New
Mexico
Oklahoma
Texas
Permian
Basin
2007 net production outlook
200,000 equivalent barrels/day
34% of worldwide total
Oxy Blocks
15
Argentina Operations
Brazil
Cuyo Basin
Uruguay
Neuquen Basin
Argentina
San Jorge Basin
Oxy Blocks
2007 net production outlook
40,000
equivalent
barrels/day
Identified 700 drilling sites
Drill 190 new wells in 2007
2011 net production target
70,000 barrels/day
16
Middle East and North Africa Operations
Libya
Qatar
UAE
2007 net production outlook
140,000 equivalent barrels/day
24% of worldwide total
17
UAE / Qatar – Dolphin Project
Oxy’s interest is 24.5%
Project Status
300
mmcf/d of third-party
supplied gas currently moving
through pipeline to markets in
Dubai.
We
expect first Dolphin gas to
the plant in June with gas
flowing to UAE markets in July.
Ramp
up production toward 2
bcf/day by year-end
At
full-scale production in 2008,
Oxy’s net share expected to
average 60,000 BOE/day.
18
Oman – Mukhaizna Project
Project Overview
Gross Capital – $3.8 Billion
1800+ wells
Central processing facility
Water treatment plant
Steam generation facilities
Pipelines
Increase
gross production
to150,000 barrels/day
2007 Work Program
$400 – $450 MM (net to Oxy)
Drill approximately 120 wells
Steam injection continues
Arabian Gulf
Gulf
of
Oman
Muscat
Block 9
Block 27
Saudi Arabia
Oman
Mukhaizna
Field
Block 54
Yemen
Salalah
Arabian Sea
Oxy Blocks
19
Libya Update 2007
Mediterranean Sea
Tunisia
Tripoli
Benghazi
Egypt
Libya
Algeria
Niger
Chad
Sudan
Oxy Blocks
Oxy acreage position
30 million acres
2007 net production
20,000
equivalent
barrels/day
2007 exploration
Drill 14-16 wells
10-12 onshore
4 offshore
20
Five Year Production Growth (Through 2010)
Base production growth (7% - 9%)
After asset sale adjustments
Current projects
Dolphin
Mukhaizna
Argentina
Additional production growth
New EOR / development projects
21
Looking Ahead
Oxy
has attractive growth opportunities in
addition to our production outlook
Oxy
has high-quality legacy assets in Texas,
California and the Middle East
Oxy generates top quartile returns on capital
Oxy generates significant cash flow
22
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 estimated proved reserves, probable,
possible and recoverable reserves and oil in place, that the SEC's
guidelines strictly prohibit us from using in filings with the SEC. 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.
23
Oil & Gas: Profitability
Reconciliation to Generally Accepted Accounting Principles (GAAP)
( Millions, except $/BOE)
Average For the Eight Years Ended December 31, 1999 - 2006
|
|
|
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
|
8-Year Average | |||||||||
|
Revenues |
|
$ |
2,503 |
|
3,990 |
|
5,019 |
|
4,461 |
|
5,875 |
|
7,500 |
|
10,355 |
$ |
12,479 |
|
$ |
6,523 |
|
Production costs |
|
|
452 |
|
785 |
|
1,031 |
|
1,064 |
|
1,225 |
|
1,497 |
|
1,927 |
|
2,514 |
|
|
1,312 |
|
Exploration expenses |
|
|
75 |
|
94 |
|
184 |
|
176 |
|
138 |
|
215 |
|
335 |
|
296 |
|
|
189 |
|
Other operating expenses |
|
|
170 |
|
215 |
|
215 |
|
222 |
|
344 |
|
398 |
|
502 |
|
608 |
|
|
334 |
|
DD&A |
|
|
598 |
|
661 |
|
739 |
|
819 |
|
971 |
|
1,052 |
|
1,224 |
|
1,771 |
|
|
979 |
|
Pre-tax income |
|
|
1,208 |
|
2,235 |
|
2,850 |
|
2,180 |
|
3,197 |
|
4,338 |
|
6,367 |
|
7,290 |
|
|
3,708 |
|
Income tax expense |
|
|
366 |
|
1,051 |
|
1,006 |
|
718 |
|
1,129 |
|
1,507 |
|
2,341 |
|
2,922 |
|
|
1,380 |
|
Results of operations |
|
$ |
842 |
$ |
1,184 |
$ |
1,844 |
$ |
1,462 |
$ |
2,068 |
$ |
2,831 |
$ |
4,026 |
$ |
4,368 |
|
$ |
2,328 |
|
BOE Sales |
|
|
156 |
|
174 |
|
181 |
|
192 |
|
202 |
|
207 |
|
207 |
|
219 |
|
|
192 |
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
33.94 |
|
Production costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
6.83 |
|
Exploration expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
0.98 |
|
Other operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1.74 |
|
DD&A |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5.10 |
|
Pre-tax income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
19.29 |
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
7.18 |
|
Results of operations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
12.11 |
Oil & Gas: Cash Flow
Reconciliation to Generally Accepted Accounting Principles (GAAP)
( Millions, except $/BOE)
Average For the Eight Years Ended December 31, 1999 - 2006
|
|
|
1999 |
2000 |
2001 |
2002 |
2003 |
2004 |
2005 |
2006 |
|
8-Year Average | ||||||||||||||||||
|
Occidental Petroleum Consolidated Statement of Cash Flows |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operating activities |
|
|
1,004 |
|
|
2,348 |
|
|
2,566 |
|
|
2,100 |
|
|
3,074 |
|
|
3,878 |
|
|
5,337 |
|
|
6,353 |
|
|
|
|
|
|
Cash flow from investing activities |
|
|
1,632 |
|
|
(3,044 |
) |
|
(651 |
) |
|
(1,696 |
) |
|
(2,131 |
) |
|
(2,428 |
) |
|
(3,161 |
) |
|
(4,383 |
) |
|
|
|
|
|
Cash flow from financing activities |
|
|
(2,517 |
) |
|
579 |
|
|
(1,814 |
) |
|
(461 |
) |
|
(513 |
) |
|
(821 |
) |
|
(1,187 |
) |
|
(2,819 |
) |
|
|
|
|
|
Change in cash |
|
$ |
119 |
|
$ |
(117 |
) |
$ |
101 |
|
$ |
(57 |
) |
$ |
430 |
|
$ |
629 |
|
$ |
989 |
|
$ |
(849 |
) |
|
|
|
|
|
FAS 69 GAAP Oil & Gas results of operations |
|
$ |
842 |
|
$ |
1,184 |
|
$ |
1,844 |
|
$ |
1,462 |
|
$ |
2,068 |
|
$ |
2,831 |
|
$ |
4,026 |
|
$ |
4,368 |
|
|
$ |
2,328 |
|
|
Depreciation, depletion & amortization |
|
|
598 |
|
|
661 |
|
|
739 |
|
|
819 |
|
|
971 |
|
|
1,052 |
|
|
1,224 |
|
|
1,771 |
|
|
|
979 |
|
|
Exploration expense |
|
|
75 |
|
|
94 |
|
|
184 |
|
|
176 |
|
|
138 |
|
|
215 |
|
|
335 |
|
|
296 |
|
|
|
189 |
|
|
Capital expenditures (excluding acquisitions) |
|
|
(405 |
) |
|
(713 |
) |
|
(1,089 |
) |
|
(930 |
) |
|
(1,127 |
) |
|
(1,607 |
) |
|
(2,190 |
) |
|
(2,742 |
) |
|
|
(1,350 |
) |
|
Cash flow from operations |
|
$ |
1,110 |
|
$ |
1,226 |
|
$ |
1,678 |
|
$ |
1,527 |
|
$ |
2,050 |
|
$ |
2,491 |
|
$ |
3,395 |
|
$ |
3,693 |
|
|
$ |
2,146 |
|
|
BOE Sales |
|
|
156 |
|
|
174 |
|
|
181 |
|
|
192 |
|
|
202 |
|
|
207 |
|
|
207 |
|
|
219 |
|
|
|
192 |
|
|
Cash flow per BOE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
11.17 |
|
The computation of cash flow per BOE included in the denominator 2.1 mmboe, 4.2 mmboe, 7.8 mmboe and 5.7 mmboe produced by Occidental that were subject to volumetric production payments for the years 2003, 2002, 2001 and 2000, respectively.
Occidental Petroleum Corporation
Reconciliation to Generally Accepted Accounting Principles (GAAP)
Debt / Capitalization Ratio
Expressed in $ Millions except Ratios
|
Current Maturities |
|
31-Dec-02 |
|
31-Dec-03 |
|
31-Dec-04 |
|
31-Dec-05 |
|
31-Dec-06 |
|
31-Mar-07 | ||||||
|
Long-term debt |
|
206 |
|
|
23 |
|
|
459 |
|
|
46 |
|
|
171 |
|
|
449 |
|
|
Trust preferred securities |
|
- |
|
|
453 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
|
|
206 |
|
|
476 |
|
|
459 |
|
|
46 |
|
|
171 |
|
|
449 |
|
|
Non-current Debt |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt |
|
4,005 |
|
|
4,000 |
|
|
3,351 |
|
|
2,877 |
|
|
2,621 |
|
|
1,692 |
|
|
Unamortized debt discount |
|
(8 |
) |
|
(7 |
) |
|
(6 |
) |
|
(4 |
) |
|
(2 |
) |
|
(1 |
) |
|
|
|
3,997 |
|
|
3,993 |
|
|
3,345 |
|
|
2,873 |
|
|
2,619 |
|
|
1,691 |
|
|
Capital lease obligations |
|
26 |
|
|
26 |
|
|
26 |
|
|
25 |
|
|
25 |
|
|
25 |
|
|
Subsidiary preferred stock |
|
75 |
|
|
75 |
|
|
75 |
|
|
75 |
|
|
75 |
|
|
75 |
|
|
Trust preferred securities |
|
455 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
|
|
DEBT |
|
4,759 |
|
|
4,570 |
|
|
3,905 |
|
|
3,019 |
|
|
2,890 |
|
|
2,240 |
|
|
Capitalization |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt (above) |
|
4,759 |
|
|
4,570 |
|
|
3,905 |
|
|
3,019 |
|
|
2,890 |
|
|
2,240 |
|
|
Equity |
|
6,318 |
|
|
7,970 |
|
|
10,597 |
|
|
15,091 |
|
|
19,252 |
|
|
20,217 |
|
|
CAPITALIZATION |
|
11,077 |
|
|
12,540 |
|
|
14,502 |
|
|
18,110 |
|
|
22,142 |
|
|
22,457 |
|
|
RATIO |
|
43% |
|
37% |
|
27% |
|
17% |
|
13% |
|
10% | ||||||
Chemical - Percent of Sales
Reconciliation to Generally Accepted Accounting Principles (GAAP)
For the Year Ended December 31, 2006
Amounts in $ Millions Except % of Sales
|
Sales |
|
|
|
|
|
Oil and Gas |
|
12,676 |
|
|
|
Chemical |
|
4,815 |
|
|
|
Other |
|
170 |
|
|
|
|
|
17,661 |
|
|
|
Chemicals |
|
$ AMT |
|
% of Sales |
|
Segment income |
|
901 |
|
|
|
Less: significant items affecting earnings |
|
|
|
|
|
None |
|
- |
|
|
|
Core results |
|
901 |
|
18.7% |