-0-

 

Contacts:	Richard S. Kline (media)
	richard_kline@oxy.com
	310-443-6249
	Chris Stavros (investors)
	chris_stavros@oxy.com
	212-603-8184
	For further analysis of Occidental's quarterly performance, please visit the web site: www.oxy.com

 

 

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Attachment 1
SUMMARY OF SEGMENT NET SALES AND EARNINGS
		Fourth Quarter								Twelve Months
($ millions, except per-share amounts)		2010				2009				2010				2009
SEGMENT NET SALES
Oil and Gas		$	3,759			$	3,489			$	14,276			$	11,009
Chemical			996				780				4,016				3,225
Midstream, Marketing and Other			478				253				1,471				1,016
Eliminations			(170	)			(140	)			(718	)			(436	)
Net Sales		$	5,063			$	4,382			$	19,045			$	14,814
SEGMENT EARNINGS
Oil and Gas (a), (b)		$	1,666			$	1,869			$	7,151			$	5,097
Chemical			111				33				438				389
Midstream, Marketing and Other			202				81				472				235
			1,979				1,983				8,061				5,721
Unallocated Corporate Items
Interest expense, net			(20	)			(31	)			(93	)			(102	)
Income taxes (c)			(618	)			(743	)			(2,995	)			(2,063	)
Other (d)			(149	)			(107	)			(404	)			(405	)
Income from Continuing Operations (a)			1,192				1,102				4,569				3,151
Discontinued operations, net			20				(164	)			(39	)			(236	)
NET INCOME (a)		$	1,212			$	938			$	4,530			$	2,915
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations		$	1.47			$	1.35			$	5.62			$	3.88
Discontinued operations, net			0.02				(0.20	)			(0.05	)			(0.29	)
		$	1.49			$	1.15			$	5.57			$	3.59
DILUTED EARNINGS PER COMMON SHARE
Income from continuing operations		$	1.47			$	1.35			$	5.61			$	3.87
Discontinued operations, net			0.02				(0.20	)			(0.05	)			(0.29	)
		$	1.49			$	1.15			$	5.56			$	3.58
AVERAGE BASIC COMMON SHARES OUTSTANDING
BASIC			812.6				811.8				812.5				811.3
DILUTED			813.7				813.5				813.8				813.8
(a) Net Income - Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $14 million for the fourth quarter of 2010 and $16 million for the fourth quarter of 2009 and $72 million and $51 million for the twelve months of 2010 and 2009, respectively.  Oil and gas segment earnings are presented net of these non-controlling interest amounts.
(b) Oil and Gas - The fourth quarter and twelve months of 2010 include pre-tax charges for asset impairments for $275 million.  The twelve months of 2009 include a pretax charge of $8 million for rig contract terminations.
(c) Unallocated Corporate Items - Taxes - The fourth quarter and twelve months of 2010 include an $80 million benefit related to foreign tax credit carry-forwards.
(d) Unallocated Corporate Items - Other - The twelve months of 2009 includes pre-tax charges of $40 million for severance and  $15 million for railcar leases.

 

 

 

 

 

 

Attachment 2
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
		Fourth Quarter								Twelve Months
($ millions)		2010				2009				2010				2009
CAPITAL EXPENDITURES		$	1,360			$	840			$	3,940			$	3,245
DEPRECIATION, DEPLETION AND
AMORTIZATION OF ASSETS		$	799			$	703			$	3,153			$	2,687

 

 

 

 

 

Attachment 3
SUMMARY OF OPERATING STATISTICS - SALES
		Fourth Quarter						Twelve Months
		2010			2009			2010			2009
NET OIL, GAS AND LIQUIDS SALES PER DAY
United States
Crude Oil and Liquids (MBBL)
California		90			92			92			93
Permian		163			164			161			164
Midcontinent Gas		19			15			18			14
Total		272			271			271			271
Natural Gas (MMCF)
California		259			282			280			250
Permian		154			122			133			125
Midcontinent Gas		286			241			264			260
Total		699			645			677			635
Latin America
Crude Oil  (MBBL)
Colombia		31			36			32			39
Natural Gas (MMCF)
Bolivia		18			12			16			16
Middle East / North Africa
Crude Oil and Liquids (MBBL)
Bahrain		3			1			3			-
Dolphin		23			26			24			25
Libya		12			15			13			12
Oman		63			54			61			50
Qatar		74			80			76			79
Yemen		27			32			30			35
Total		202			208			207			201
Natural Gas (MMCF)
Bahrain		170			40			169			10
Dolphin		232			256			236			257
Oman		47			42			48			49
Total		449			338			453			316
Continuing operations
Barrels of Oil Equivalent (MBOE)		699			680			701			672
Discontinued operations
Crude Oil  (MBBL)		46			37			37			37
Natural Gas (MMCF)		36			30			34			30
Total  Sales - MBOE		751			722			744			714

 

 

 

 

 

Attachment 4
SUMMARY OF OPERATING STATISTICS - PRODUCTION
		Fourth Quarter						Twelve Months
		2010			2009			2010			2009
NET OIL, GAS AND LIQUIDS PRODUCTION
PER DAY
United States
Crude Oil and Liquids (MBBL)		272			271			271			271
Natural Gas (MMCF)		699			645			677			635
Latin America
Crude Oil (MBBL)
Colombia		30			36			32			39
Natural Gas (MMCF)		18			12			16			16
Middle East / North Africa
Crude Oil and Liquids (MBBL)
Bahrain		3			1			3			-
Dolphin		23			26			24			26
Iraq		11			-			3			-
Libya		12			11			13			11
Oman		67			56			62			50
Qatar		75			78			76			79
Yemen		27			31			31			34
Total		218			203			212			200
Natural Gas (MMCF)		449			338			453			316
Continuing operations
Barrels of Oil Equivalent (MBOE)		714			676			706			671
Discontinued operations
Crude Oil  (MBBL)		33			36			36			36
Natural Gas (MMCF)		36			30			34			30
Total Worldwide Production - MBOE		753			717			748			712

 

 

 

 

 

Attachment 5
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.
		Fourth Quarter
($ millions, except per-share amounts)		2010				Diluted EPS				2009				Diluted EPS
TOTAL REPORTED EARNINGS		$	1,212			$	1.49			$	938			$	1.15
Oil and Gas
Segment Earnings		$	1,666							$	1,869
Add:
Asset impairments			275								-
Segment Core Results			1,941								1,869
Chemicals
Segment Earnings			111								33
Add:
No significant items affecting earnings			-								-
Segment Core Results			111								33
Midstream, Marketing and Other
Segment Earnings			202								81
Add:
No significant items affecting earnings			-								-
Segment Core Results			202								81
Total Segment Core Results			2,254								1,983
Corporate
Corporate Results --
Non Segment *			(767	)							(1,045	)
Add:
Benefit from foreign tax credit carry-forwards			(80	)							-
Tax effect of pre-tax adjustments			(100	)							-
Discontinued operations, net **			(20	)							164
Corporate Core Results - Non Segment			(967	)							(881	)
TOTAL CORE RESULTS		$	1,287			$	1.58			$	1,102			$	1.35
*  Interest expense, income taxes, G&A expense and other.
** Amounts shown after tax.

 

 

 

 

 

Attachment 6
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS (continued)
		Twelve Months
($ millions, except per-share amounts)		2010				Diluted EPS				2009				Diluted EPS
TOTAL REPORTED EARNINGS		$	4,530			$	5.56			$	2,915			$	3.58
Oil and Gas
Segment Earnings		$	7,151							$	5,097
Add:
Asset impairments			275								-
Rig terminations			-								8
Segment Core Results			7,426								5,105
Chemicals
Segment Earnings			438								389
Add:
No significant items affecting earnings			-								-
Segment Core Results			438								389
Midstream, Marketing and Other
Segment Earnings			472								235
Add:
No significant items affecting earnings			-								-
Segment Core Results			472								235
Total Segment Core Results			8,336								5,729
Corporate
Corporate Results --
Non Segment *			(3,531	)							(2,806	)
Add:
Severance accruals			-								40
Railcar leases			-								15
Benefit from foreign tax credit carry-forwards			(80	)							-
Tax effect of pre-tax adjustments			(100	)							(22	)
Discontinued operations, net **			39								236
Corporate Core Results - Non Segment			(3,672	)							(2,537	)
TOTAL CORE RESULTS		$	4,664			$	5.72			$	3,192			$	3.92
*  Interest expense, income taxes, G&A expense and other
** Amounts shown after tax.

EXHIBIT 99.2

 

Occidental Petroleum Corporation

DR. RAY R. IRANI

Chairman and Chief Executive Officer

-Conference Call-

Fourth Quarter 2010 Earnings Announcement

January 26, 2011

Los Angeles, California

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

In a few minutes, Steve Chazen will provide details on our financial results for the fourth quarter and full year of 2010. But first, I want to mention some key developments of the last week and of the past quarter that we believe are significant to continuing Oxy’s success in 2011 and beyond.

Last week, we announced that the Government of Abu Dhabi selected Oxy to participate in the development of the Shah gas field, one of the largest natural gas fields in the Middle East. Oxy will hold a 40-percent participating interest in a 30-year contract with Abu Dhabi National Oil Company holding the remaining 60-percent.

We are honored that the Abu Dhabi government has chosen Oxy to participate with them in this major project. This is another important step in the implementation of our growth strategy in the Middle East and in our relationship with the Emirate of Abu Dhabi.

You will recall that in 2007 Oxy submitted a bid on the Shah project and was not selected. However, development of the field under the agreement in principle announced last week provides an exciting opportunity to create value for the people of Abu Dhabi and for Oxy stockholders. We

 

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expect it to provide similar returns to Oxy as our traditional Middle East properties.

Working in close partnership with ADNOC, we will apply our expertise in this technically challenging project to develop high-sulfur content reservoirs within the Shah field. The project is anticipated to produce approximately 500 million cubic feet per day of sales gas – providing net to Oxy in the range of 200 million cubic feet per day. In addition, the project is expected to produce approximately 50,000 barrels per day of condensate and natural gas liquids – which we expect to yield in the range of 20,000 barrels per day net to Oxy.

ADNOC is already in the process of developing the field and the majority of its engineering procurement and construction contracts have already been awarded. Production from the field is scheduled to begin in 2014.

Capital expenditures for the entire project are estimated to be in the range of $10 billion with Oxy’s share proportional to the ownership.

Another key development for Oxy – as we announced last month – was a strategic adjustment we have made to our asset base in order to improve the company’s performance and profitability.

We are selling our oil and gas operations in Argentina – which have not performed to our expectations – to a subsidiary of Sinopec and expect after-tax proceeds to be approximately $2.5 billion.

We have made acquisitions in new producing areas for Oxy – North Dakota and South Texas – which we believe have solid potential for growth.

We expect the combination of these transactions to immediately improve our earnings, ROCE and free cash flow. The North Dakota

 

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acquisition has already closed and we anticipate the Argentina and South Texas transactions to close by the end of this quarter.

Two years ago we went into North Dakota with a modest amount of acreage in the oil-rich Bakken and Three Forks formations of the Williston Basin. Now we have expanded our position in the area to over 200,000 acres by purchasing approximately 180,000 net contiguous acres from a private seller for about $1.4 billion.

We expect to grow our production in the Williston Basin from these properties to about 30,000 BOE per day over the next five years.

The South Texas acquisition from Shell – for about $1.8 billion – gives us properties which have over 320 billion cubic feet of gas equivalent in proven developed reserves and are liquid-rich with a solid inventory of drilling opportunities.

Oxy is already a major producer in Texas, and these South Texas assets further expand our footprint in the state.

We anticipate the new U.S. assets to immediately yield reasonable earnings and produce good free cash flow – even at current gas prices. As gas prices improve in the future and we optimize overall area opportunities, these properties will fit well with our overall presence, performance and continued growth in the U.S.

The U.S. acquisitions, together with those we made in the third quarter, will replace our production from Argentina with better profits, ROCE and free cash flow.

As evidence of our confidence in Oxy’s performance with the addition of our new U.S. assets, Oxy’s Board of Directors has announced its intention to increase our common share dividend rate by 21 percent, to an annual rate of $1.84, effective with the April 15th payment. This will mark Oxy’s 10th

 

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dividend increase since 2002, bringing the compounded annual growth rate over the period to 15.6 percent.

In 2011 we will maintain our focus on delivering value to our stockholders and partners as we continue improving our asset base, while growing production and reserves.

I’ll now turn the call over to Steve Chazen to report on Oxy’s financial performance during the past quarter and full year.

###

 

4

 

 

Occidental Petroleum Corporation

STEPHEN CHAZEN

President and Chief Operating Officer

– Conference Call –

Fourth Quarter 2010 Earnings Announcement

January 26, 2011

Los Angeles, California

Thank you Ray.

Core income was $1.3 billion or $1.58 per diluted share in the fourth quarter this year, compared to $1.1 billion or $1.35 per diluted share in the fourth quarter of last year.  Net income was $1.2 billion or $1.49 per diluted share in the fourth quarter of 2010, compared to $938 million or $1.15 per diluted share in the fourth quarter of 2009.  As required by accounting rules, Argentina has been classified as a discontinued operation.  Therefore, Argentina's results have been excluded from continuing operations, net of tax, for all periods.  Details of Argentina's operating results for years 2008, 2009 and by quarters in 2010 are included in the Investors Relations Supplemental Schedules.  Argentina has not been profitable for the last four years. 
60;The 2010 fourth quarter also included after-tax non-core charges of $175 million for impairments predominately of gas properties in the Rockies and an $80 million benefit related to  foreign tax credit carry-forwards.

 

 

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The fourth quarter 2010 core income included $110 million higher pre-tax expense compared to the third quarter ($70 million after-tax or $0.09 per diluted share) from equity and related compensation programs mostly due to the effect of the steep increase in the company's stock price during this period.

Here’s the segment breakdown for the fourth quarter.

Oil and gas segment earnings for the fourth quarter of 2010 were $1.7 billion.  Realized crude oil prices increased 11 ½ percent in 2010 but domestic natural gas prices declined 5 ½ percent from the fourth quarter of 2009.

	●	Production volumes for the fourth quarter of 2010 were 753,000 BOE per day, a 5 percent increase compared with 717,000 BOE per day for the fourth quarter of 2009.
	●	Fourth quarter production of 753,000 BOE per day was slightly higher than third quarter's production of 751,000 BOE per day.  Fourth quarter volumes, compared to the third quarter, were negatively impacted by 10,000 BOE per day from the effects of our production sharing contracts, 6,000 BOE per day due to strikes in Argentina and inclement weather in December, which impacted our California production.  In California, oil production was higher by 2,000 barrels per day in the fourth quarter compared to the third quarter, but was offset by 1,000 BOE per day resulting from higher oil prices affecting production sharing and similar contracts at our THUMS operation and by 3,000 barrels per day of lower natural gas liq uids volumes resulting from lower gas production.
	●	Excluding Argentina, worldwide oil and gas production for the fourth quarter of 2010 was 714,000 BOE per day.  Third quarter

 

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		2010 production would have been 706,000 BOE per day if Argentina were excluded.
	●	Fourth quarter sales volumes were 751,000 BOE per day.  Sales volumes differ from production volumes above due mainly to a fourth quarter lifting in Argentina, which slipped from the third quarter, partially offset by Iraq production, which will be sold in 2011 and a lifting in Colombia, which was sold in the first quarter of 2011.
	●	Exploration expense was $54 million in the quarter.

Chemical segment earnings for the fourth quarter of 2010 were $111 million and in line with our earlier guidance.

Midstream segment earnings for the fourth quarter of 2010 were $202 million, compared to $163 million in the third quarter of 2010 and $81 million in the fourth quarter of 2009.  The increase in earnings was mainly due to higher trading and marketing income.

The worldwide effective tax rate was 38 percent for the fourth quarter of 2010.

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

Core income was $4.7 billion or $5.72 per diluted share for the twelve months of this year, compared with $3.2 billion or $3.92 per diluted share for the full year of 2009.  Net income was $4.5 billion or $5.56 per diluted share for the twelve months of 2010, compared with $2.9 billion or $3.58 per diluted share for the same period of 2009.  Income for the twelve months of 2010 included $134 million of charges, net of tax and 2009 included $277 million of charges, net of tax, for the items noted on the schedule reconciling net income to core results.

 

 

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Oil and gas cash production costs, which exclude production and property taxes, were $10.19 a barrel for 2010, excluding Argentina.  Last year's twelve-month costs were $8.95 a barrel, on the same basis.  The year-over-year increase reflects $0.32 a barrel in 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.

Taxes – other than on income were $1.83 per barrel for 2010 compared to $1.67 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.

Capital spending for the fourth quarter of 2010 was about $1.4 billion and $3.9 billion for the twelve months, excluding Argentina.  Capital expenditures by segment were 80 percent in Oil and Gas, 13 percent in Midstream with the remainder in Chemicals.

Cash flow from operations for the twelve months of 2010 was $9.1 billion, excluding Argentina.  We used $3.9 billion of the company’s cash flow to fund capital expenditures, $4.7 billion on acquisitions and $225 million on foreign contracts.  These investing cash flow uses amounted to $8.8 billion.  We issued $2.6 billion of senior debt in the fourth quarter.  We also used $1.2 billion to pay dividends and $310 million to retire debt.  Argentina's net cash flow for the year was a negative $125 million, after spending $415 million for capital expenditures and contract extension payments.  These and other net cash flows increased our $1.2 billion cash balance at the end of last year by $1 .4 billion to $2.6 billion at December 31.  Free cash flow from continuing operations after capital spending and dividends but before acquisition activity and debt retirements was about $4.3 billion.

 

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Acquisitions

	●	Our acquisition costs in the fourth quarter were $3.1 billion, which included the previously announced purchases and oil and gas bolt-on properties, mainly in the Permian.  We expect to close the purchase of several additional properties and the sale of Argentina in the first quarter of 2011.
	●	During the year we spent $4.1 billion on Oil & Gas acquisitions, of which about 50 percent was on unproved properties.

On a preliminary basis, our 2010 reserve replacement ratio was about 150 percent.  Approximately one-third of the current year reserve adds came from acquisitions.  We will provide additional details regarding reserves as soon as the information is available.

The weighted-average basic shares outstanding for the twelve months of 2010 were 812.5 million and the weighted-average diluted shares outstanding were 813.8 million.

Our debt to capitalization ratio was 14 percent at the end of the year.  Oxy's 2010 return on equity was 14.7 percent, with return on capital employed of 13.2 percent.

As we look ahead in the current quarter:

	●	Our first quarter 2011 production will be impacted by the following factors:
		○	We will no longer report Argentina production.
		○	The timing of the completion of the new acquisitions.  While the acquisition of the oil and gas properties in North Dakota closed at yearend, the acquisition of the South Texas properties is yet to close.

 

 

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		○	Planned one month maintenance and production shut-downs at Elk Hills and Dolphin.  The impact of the Elk Hills shutdown, which will only impact natural gas and liquids production, will be about 8,000 BOE per day for the first quarter of 2011.  The impact of the Dolphin shutdown will be about 5,000 BOE per day for the quarter.
	●	We expect the first quarter oil and gas production volumes to be between 740,000 and 750,000 BOE/day at fourth quarter average oil prices of $85.00 WTI.  We expect sales volumes to be around 725,000 BOE per day.  A $5.00 increase in WTI would reduce our daily volumes by about 5,500 BOE per day.
	●	Once we know the first quarter's results and the timing and the initial production rates on transfer from the pending acquisitions, we can provide an accurate full year production guidance.  Production growth will resume in the second quarter.  We reasonably expect that by at least the second half of the year, production would be similar to the run rate we showed you in last May's investor presentation, adjusted for oil price changes.

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 $41 million.  The average fourth quarter WTI oil price was $85.17 per barrel.
	●	A swing of 50-cents per million BTUs in domestic gas prices has a $36 million impact on quarterly earnings before income taxes.  This is a significant increase in gas price sensitivities from what

 

 

10

 

 

 

we have given you in the past.  The current NYMEX gas price is around $4.50 per MCF.

Additionally -

	●	We expect exploration expense to be about $85 million for seismic and drilling for our exploration programs.
	●	The chemical segment is expected to provide earnings for the first quarter of about $125 million.  We expect margins and volumes to continue to improve as the economy strengthens.
	●	We expect our combined worldwide tax rate in the first quarter of 2011 to be about 40 percent.  Our fourth quarter U.S. and foreign tax rates are included in the “Investor Relations Supplemental Schedule.”

For all of 2011:

●

We expect capital spending for the total year to be about $6.1 billion compared to the total 2010 capital of $3.9 billion.  Both amounts exclude Argentina and the Shah Field Development Project.  Occidental's share of the Shah Field development capital will total about $4 billion over the next several years.  Our 2011 capital is close to our fourth quarter annualized run r ate of $5.5 billion and in line with the five-year capital plan we gave you in the May investor presentation plus the capital that was deferred from 2010.  The breakdown of the 2010 and 2011 capital by area and segment is included in the Investor Relations Supplemental Schedules.

 

 

11

 

 

	●	Our Oil and Gas DD&A expense for 2011 should be approximately $11.75 per BOE.  Depreciation for the other two segments should be approximately $500 million.
	●	California Update –
		●	We have about 520 geologically viable (so-called de-risked) shale drilling locations in California excluding traditional Elk Hills.  Of these locations, about 250 are both outside of Elk Hills proper and the Kern County Discovery Area.
		●	During 2011, based on a conservative view of the permitting process, we expect to drill a total of 107 shale wells outside Elk Hills proper.  As additional permits become available, the level of drilling activity would pick-up during the year.
		●	We will also drill about 28 exploration wells in California in 2011.  Approximately 50 percent of these wells will be for conventional exploration.  We expect that the exploration activity will, at a minimum, create more unconventional drilling locations.
	●	Copies of the press release announcing our fourth 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.

 

 

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Occidental Petroleum Corporation
Free Cash Flow
Reconciliation to Generally Accepted Accounting Principles (GAAP)
($ Millions)
	Twelve Months
	2010
Consolidated Statement of Cash Flows
Cash flow from operating activities	9,349
Cash flow from investing activities	(9,078	)
Cash flow from financing activities	1,083
Change in cash	1,354
Free Cash Flow
Cash flow from operating activities	9,345
Less:operating cash flow from discontinued operations	(210	)
Operating cash flow from continuing operations	9,135
Capital spending	(3,940	)
Cash dividends paid	(1,159	)
Equity method investment dividends	217
Free cash flow from continuing operations	4,253

 

 

 

 

 

 

Occidental Petroleum Corporation
Return on Capital Employed (ROCE)
Reconciliation to Generally Accepted Accounting Principles (GAAP)
		2009		2010
RETURN ON EQUITY (%)		10.3		14.7
RETURN ON CAPITAL EMPLOYED (%)		9.6		13.2
		2009		2010
GAAP measure - net income attributable		2,915		4,530
to common stock
Interest expense		109		93
Tax effect of interest expense		(38	)	(33	)
Earnings before tax-effected interest expense		2,986		4,590
GAAP stockholders' equity		29,159		32,484
Debt
GAAP debt
Debt, including current maturities		2,796		5,111
Non-GAAP debt
Capital lease obligation		25		-
Total debt		2,821		5,111
Total capital employed		31,980		37,595
ROCE		9.6		13.2
ROE		10.3		14.7

ROCE-ROE

 

EXHIBIT 99.3

Investor Relations Supplemental Schedules

 

 

Investor Relations Supplemental Schedules
Summary
($ Millions)
	4Q 2010				4Q 2009
Reported Net Income		$1,212				$938
EPS - Diluted		$1.49				$1.15
Core Results		$1,287				$1,102
EPS - Diluted		$1.58				$1.35
Total Worldwide Sales Volumes (mboe/day)		751				722
Total Worldwide Crude Oil Realizations ($/BBL)		$79.96				$71.74
Domestic Natural Gas Realizations ($/MCF)		$4.13				$4.37
Wtd. Average Basic Shares O/S (mm)		812.6				811.8
Wtd. Average Diluted Shares O/S (mm)		813.7				813.5
	YTD 2010				YTD 2009
Reported Net Income		$4,530				$2,915
EPS - Diluted		$5.56				$3.58
Core Results		$4,664				$3,192
EPS - Diluted		$5.72				$3.92
Total Worldwide Sales Volumes (mboe/day)		744				714
Total Worldwide Crude Oil Realizations ($/BBL)		$75.16				$57.31
Domestic Natural Gas Realizations ($/MCF)		$4.53				$3.46
Wtd. Average Basic Shares O/S (mm)		812.5				811.3
Wtd. Average Diluted Shares O/S (mm)		813.8				813.8
Shares Outstanding (mm)		812.8				811.9
Cash Flow from Operations	$	9,300			$	5,800

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Fourth Quarter
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	1,666			$	275			Asset Impairments			$	1,941
Chemical		111											111
Midstream, marketing and other		202											202
Corporate
Interest expense, net		(20	)										(20	)
Other		(149	)										(149	)
Taxes		(618	)			(100	)		Tax effect of adjustments				(798	)
						(80	)		Benefit from foreign tax
									credit carry-forwards
Income from continuing operations		1,192				95							1,287
Discontinued operations, net of tax		20				(20	)		Discontinued operations, net				-
Net Income	$	1,212			$	75						$	1,287
Basic Earnings Per Common Share
Income from continuing operations	$	1.47
Discontinued operations, net		0.02
Net Income	$	1.49										$	1.58
Diluted Earnings Per Common Share
Income from continuing operations	$	1.47
Discontinued operations, net		0.02
Net Income	$	1.49										$	1.58

 

 

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Investor Relations Supplemental Schedules

 

OCCIDENTAL PETROLEUM
2009 Fourth Quarter
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	1,869										$	1,869
Chemical		33											33
Midstream, marketing and other		81											81
Corporate
Interest expense, net		(31	)										(31	)
Other		(107	)										(107	)
Taxes		(743	)										(743	)
Income from continuing operations		1,102				-							1,102
Discontinued operations, net of tax		(164	)			164			Discontinued operations, net				-
Net Income	$	938			$	164						$	1,102
Basic Earnings Per Common Share
Income from continuing operations	$	1.35
Discontinued operations, net		(0.20	)
Net Income	$	1.15										$	1.36
Diluted Earnings Per Common Share
Income from continuing operations	$	1.35
Discontinued operations, net		(0.20	)
Net Income	$	1.15										$	1.35

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Twelve Months
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	7,151			$	275			Asset Impairments			$	7,426
Chemical		438											438
Midstream, marketing and other		472											472
Corporate
Interest expense, net		(93	)										(93	)
Other		(404	)										(404	)
Taxes		(2,995	)			(100	)		Tax effect of adjustments				(3,175	)
						(80	)		Benefit from foreign tax
									credit carry-forwards
Income from continuing operations		4,569				95							4,664
Discontinued operations, net of tax		(39	)			39			Discontinued operations, net				-
Net Income	$	4,530			$	134						$	4,664
Basic Earnings Per Common Share
Income from continuing operations	$	5.62
Discontinued operations, net		(0.05	)
Net Income	$	5.57										$	5.73
Diluted Earnings Per Common Share
Income from continuing operations	$	5.61
Discontinued operations, net		(0.05	)
Net Income	$	5.56										$	5.72

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2009 Twelve Months
Net Income (Loss)
($ millions)
	Reported											Core
	Income				Significant Items Affecting Income						Results
Oil & Gas	$	5,097			$	8			Rig contract terminations			$	5,105
Chemical		389											389
Midstream, marketing and other		235											235
Corporate
Interest expense, net		(102	)										(102	)
Other		(405	)			40			Severance				(350	)
						15			Railcar leases
Taxes		(2,063	)			(22	)		Tax effect of adjustments				(2,085	)
Income from continuing operations		3,151				41							3,192
Discontinued operations, net of tax		(236	)			236			Discontinued operations, net				-
Net Income	$	2,915			$	277						$	3,192
Basic Earnings Per Common Share
Income from continuing operations	$	3.88
Discontinued operations, net		(0.29	)
Net Income	$	3.59										$	3.93
Diluted Earnings Per Common Share
Income from continuing operations	$	3.87
Discontinued operations, net		(0.29	)
Net Income	$	3.58										$	3.92

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
	QUARTERLY									YEAR-TO-DATE
	2010			2010			2009			2010			2009
REPORTED INCOME	QTR 4			QTR 3			QTR 4			12 Months			12 Months
Oil & Gas	1,666			1,757			1,869			7,151			5,097
Chemicals	111			189			33			438			389
Midstream, marketing and other	202			163			81			472			235
Corporate & other	(169	)		(84	)		(138	)		(497	)		(507	)
Pre-tax income	1,810			2,025			1,845			7,564			5,214
Income tax expense
Federal and state	129			322			338			1,087			684
Foreign	489			500			405			1,908			1,379
Total	618			822			743			2,995			2,063
Income from continuing operations	1,192			1,203			1,102			4,569			3,151
Worldwide effective tax rate	34%			41%			40%			40%			40%
	2010			2010			2009			2010			2009
CORE RESULTS	QTR 4			QTR 3			QTR 4			12 Months			12 Months
Oil & Gas	1,941			1,757			1,869			7,426			5,105
Chemicals	111			189			33			438			389
Midstream, marketing and other	202			163			81			472			235
Corporate & other	(169	)		(84	)		(138	)		(497	)		(452	)
Pre-tax income	2,085			2,025			1,845			7,839			5,277
Income tax expense
Federal and state	309			322			338			1,267			706
Foreign	489			500			405			1,908			1,379
Total	798			822			743			3,175			2,085
Core results	1,287			1,203			1,102			4,664			3,192
Worldwide effective tax rate	38%			41%			40%			41%			40%

 

 

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Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Fourth Quarter Net Income (Loss)
Reported Income Comparison
		Fourth				Third
		Quarter				Quarter
		2010				2010				B / (W)
Oil & Gas		$	1,666			$	1,757			$	(91	)
Chemical			111				189				(78	)
Midstream, marketing and other			202				163				39
Corporate
Interest expense, net			(20	)			(18	)			(2	)
Other			(149	)			(66	)			(83	)
Taxes			(618	)			(822	)			204
Income from continuing operations			1,192				1,203				(11	)
Discontinued operations, net			20				(12	)			32
Net Income		$	1,212			$	1,191			$	21
Earnings Per Common Share
Basic		$	1.49			$	1.46			$	0.03
Diluted		$	1.49			$	1.46			$	0.03
Worldwide Effective Tax Rate			34%				41%				7%
OCCIDENTAL PETROLEUM
2010 Fourth Quarter Net Income (Loss)
Core Results Comparison
		Fourth				Third
		Quarter				Quarter
		2010				2010				B / (W)
Oil & Gas		$	1,941			$	1,757			$	184
Chemical			111				189				(78	)
Midstream, marketing and other			202				163				39
Corporate
Interest expense, net			(20	)			(18	)			(2	)
Other			(149	)			(66	)			(83	)
Taxes			(798	)			(822	)			24
Core Results		$	1,287			$	1,203			$	84
Core Results Per Common Share
Basic		$	1.58			$	1.48			$	0.10
Diluted		$	1.58			$	1.48			$	0.10
Worldwide Effective Tax Rate			38%				41%				3%

 

 

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Investor Relations Supplemental Schedules

 

 

 

 

8

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
2010 Fourth Quarter Net Income (Loss)
Reported Income Comparison
		Fourth				Fourth
		Quarter				Quarter
		2010				2009				B / (W)
Oil & Gas		$	1,666			$	1,869			$	(203	)
Chemical			111				33				78
Midstream, marketing and other			202				81				121
Corporate
Interest expense, net			(20	)			(31	)			11
Other			(149	)			(107	)			(42	)
Taxes			(618	)			(743	)			125
Income from continuing operations			1,192				1,102				90
Discontinued operations, net			20				(164	)			184
Net Income		$	1,212			$	938			$	274
Earnings Per Common Share
Basic		$	1.49			$	1.15			$	0.34
Diluted		$	1.49			$	1.15			$	0.34
Worldwide Effective Tax Rate			34%				40%				6%
OCCIDENTAL PETROLEUM
2010 Fourth Quarter Net Income (Loss)
Core Results Comparison
		Fourth				Fourth
		Quarter				Quarter
		2010				2009				B / (W)
Oil & Gas		$	1,941			$	1,869			$	72
Chemical			111				33				78
Midstream, marketing and other			202				81				121
Corporate
Interest expense, net			(20	)			(31	)			11
Other			(149	)			(107	)			(42	)
Taxes			(798	)			(743	)			(55	)
Core Results		$	1,287			$	1,102			$	185
Core Results Per Common Share
Basic		$	1.58			$	1.36			$	0.22
Diluted		$	1.58			$	1.35			$	0.23
Worldwide Effective Tax Rate			38%				40%				2%

 

 

9

 

 

Investor Relations Supplemental Schedules

 

 

 

 

10

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Fourth Quarter							Twelve Months
			2010			2009				2010			2009
NET SALES VOLUMES PER DAY:
United States
Crude Oil and Liquids (MBBL)
	California		90			92				92			93
	Permian		163			164				161			164
	Midcontinent Gas		19			15				18			14
	Total		272			271				271			271
Natural Gas (MMCF)
	California		259			282				280			250
	Permian		154			122				133			125
	Midcontinent Gas		286			241				264			260
	Total		699			645				677			635
Latin America
Crude Oil (MBBL)	Colombia		31			36				32			39
Natural Gas (MMCF)	Bolivia		18			12				16			16
Middle East / North Africa
Crude Oil and Liquids (MBBL)
	Bahrain		3			1				3			-
	Dolphin		23			26				24			25
	Libya		12			15				13			12
	Oman		63			54				61			50
	Qatar		74			80				76			79
	Yemen		27			32				30			35
	Total		202			208				207			201
Natural Gas (MMCF)
	Bahrain		170			40				169			10
	Dolphin		232			256				236			257
	Oman		47			42				48			49
	Total		449			338				453			316
Continuing operations
Barrels of Oil Equivalent (MBOE)			699			680				701			672
Discontinued operations
Crude Oil (MBBL)			46			37				37			37
Natural Gas (MMCF)			36			30				34			30
Total Sales - MBOE			751			722				744			714

 

 

11

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Fourth Quarter							Twelve Months
			2010			2009				2010			2009
NET PRODUCTION PER DAY:
United States
Crude Oil and Liquids (MBBL)			272			271				271			271
Natural Gas (MMCF)			699			645				677			635
Latin America
Crude Oil (MBBL)	Colombia		30			36				32			39
Natural Gas (MMCF)			18			12				16			16
Middle East / North Africa
Crude Oil and Liquids (MBBL)
	Bahrain		3			1				3			-
	Dolphin		23			26				24			26
	Iraq		11			-				3			-
	Libya		12			11				13			11
	Oman		67			56				62			50
	Qatar		75			78				76			79
	Yemen		27			31				31			34
	Total		218			203				212			200
Natural Gas (MMCF)			449			338				453			316
Continuing operations
Barrels of Oil Equivalent (MBOE)			714			676				706			671
Discontinued operations
Crude Oil (MBBL)			33			36				36			36
Natural Gas (MMCF)			36			30				34			30
Total Worldwide Production - MBOE			753			717				748			712

 

 

12

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
			Fourth Quarter								Twelve Months
			2010				2009				2010				2009
OIL & GAS:
PRICES
United States
Crude Oil ($/BBL)				79.20				70.90				73.79				56.74
Natural gas ($/MCF)				4.13				4.37				4.53				3.46
Latin America
Crude Oil ($/BBL)				81.05				71.69				75.29				55.89
Natural Gas ($/MCF)				7.76				5.73				7.73				5.70
Middle East / North Africa
Crude Oil ($/BBL)				80.65				73.11				76.67				58.75
Total Worldwide
Crude Oil ($/BBL)				79.96				71.74				75.16				57.31
Natural Gas ($/MCF)				2.91				3.42				3.11				2.83
			Fourth Quarter								Twelve Months
			2010				2009				2010				2009
Exploration Expense
United States			$	27			$	53			$	162			$	160
Latin America				6				12				7				14
Middle East / North Africa				21				33				93				80
TOTAL REPORTED			$	54			$	98			$	262			$	254

 

 

13

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
		Fourth Quarter								Twelve Months
Capital Expenditures ($MM)		2010				2009				2010				2009
Oil & Gas
California		$	297			$	152			$	841			$	554
Permian			212				85				502				413
Midcontinent Gas			131				41				269				118
Latin America			56				40				163				210
Middle East  / North Africa			344				253				1,199				1,021
Exploration			62				50				192				132
Chemicals			108				91				237				205
Midstream, marketing and other			144				124				501				554
Corporate			6				4				36				38
	TOTAL	$	1,360			$	840			$	3,940			$	3,245
Depreciation, Depletion &		Fourth Quarter								Twelve Months
Amortization of Assets ($MM)		2010				2009				2010				2009
Oil & Gas
Domestic		$	365			$	305			$	1,412			$	1,237
Latin America			31				48				122				198
Middle East  / North Africa			282				237				1,134				823
Chemicals			78				76				321				298
Midstream, marketing and other			38				31				142				110
Corporate			5				6				22				21
	TOTAL	$	799			$	703			$	3,153			$	2,687

 

 

14

 

 

Investor Relations Supplemental Schedules

 

 

OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
		31-Dec-10						31-Dec-09
CAPITALIZATION
Long-Term Debt (including current maturities)			$	5,111					$	2,796
Others				-						25
	Total Debt		$	5,111					$	2,821
EQUITY			$	32,484					$	29,159
Total Debt To Total Capitalization				14%						9%

 

 

15

 

 

Investor Relations Supplemental Schedules

 

 

Investor Relations Supplemental Schedules
Argentina Summary
($ Millions)
	2008			2009			2010
Net Production (MBOE/Day)	38			41			42
Results pre-tax	(591	)		(369	)		(33	)
Results after-tax	(344	)		(224	)		(18	)
Depreciation, Depletion & Amortization of Assets	314			430			350
Capital Expenditures	538			336			415		*
*Includes $105 million contract extension bonus.

 

 

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Investor Relations Supplemental Schedules

 

 

Investor Relations Supplemental Schedules
Argentina Summary
($ Millions)
	2010
	1st Q			2nd Q			3rd Q			4th Q			TY
Net Production (MBOE/Day)	42			42			45			39			42
Results pre-tax	(43	)		(17	)		(13	)		40			(33	)
Results after-tax	(26	)		(8	)		(7	)		23			(18	)

 

 

17

 

 

Investor Relations Supplemental Schedules

 

 

 

18

EXHIBIT 99.4

 

Occidental Petroleum Corporation

Fourth Quarter 2010 Earnings Conference Call

January 26, 2011

 

 

1

 

 

 

2

Fourth Quarter 2010 Earnings - Highlights

Fourth Quarter 2010 Earnings - Highlights

• Core Results - $1.3 Billion vs. $1.1 Billion in 4Q09

 – Core EPS $1.58 (diluted) vs. $1.35 in 4Q09.

• Net Income - $1.2 Billion vs. $938 Million in 4Q09

 – EPS $1.49 (diluted) vs. $1.15 in 4Q09.

 

 

2

 

 

 

 

3

Fourth Quarter 2010 Earnings - Highlights

Fourth Quarter 2010 Earnings - Highlights

• Argentina has been classified as a discontinued
 operation; therefore, its results have been excluded from
 continuing operations, net of tax, for all periods.

• Argentina has not been profitable for the last four years.

• 4Q10 also included after-tax non-core charges of $175
 mm for impairments predominately of gas properties in
 the Rockies and an $80 mm benefit related to foreign tax
 credit carry-forwards.

• 4Q10 core income included $110 mm higher pre-tax
 expense compared to 3Q10 ($70 mm after-tax or $0.09
 per diluted share) from equity and related compensation
 programs mostly due to the effect of the steep increase
 in the company's stock price during this period.

 

 

3

 

 

 

4

($ in millions)

• Core Results for 4Q10 of $1.941 B vs. $1.869 B in 4Q09

 – Realized crude oil prices increased 11½ percent in 2010 but domestic natural gas prices
 declined 5½ percent from the fourth quarter of 2009.

Fourth Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 4Q10 vs. 4Q09

 

 

 

4

 

 

 

5

Fourth Quarter 2010 Earnings - Oil & Gas Segment

         4Q10  4Q09

Oil and Gas Production Volumes (mboe/d)            753 717

 – Year-over-year increase of 5%.

• 4Q10 production of 753 mboe/d was slightly higher than 3Q10 of 751 mboe/d.

• 4Q10 volumes, compared to 3Q10, were negatively impacted by 10 mboe/d
 from the effects of our PSCs, 6 mboe/d due to strikes in Argentina, and
 inclement weather in December which impacted our California production.

• In California, oil production was higher by 2 mb/d in 4Q10 compared to 3Q10,
 but was offset by 1 mb/d resulting from higher oil prices affecting production
 sharing and similar contracts at our THUMS operation and by 3 mb/d of lower
 NGL volumes resulting from lower gas production.

• Excluding Argentina, worldwide oil and gas production for 4Q10 was 714
 mboe/d.

• 3Q10 production would have been 706 mboe/d if Argentina were excluded.

 

 

5

 

 

 

6

Fourth Quarter 2010 Earnings - Oil & Gas Segment

        4Q10  4Q09

Oil and Gas Sales Volumes (mboe/d)     751  722

• Sales volumes differ from production volumes above due mainly to a
 4Q10 lifting in Argentina, which slipped from 3Q10, partially offset by
 Iraq production, which will be sold in 2011 and a lifting in Colombia,
 which was sold in 1Q11.

• Exploration expense was $54 million in 4Q10.

 

 

6

 

 

 

7

      4Q10  4Q09

 Reported Segment Earnings ($ mm) $1,666 $1,869

 WTI Oil Price ($/bbl)   $85.17 $76.19
 

 NYMEX Gas Price ($/mcf)  $3.85  $4.29

 Oxy’s Realized Prices

  Worldwide Oil ($/bbl)  $79.96 $71.74

  US Natural Gas ($/mcf)   $4.13  $4.37

Fourth Quarter 2010 Earnings - Oil & Gas Segment

 

 

7

 

 

 

8

($ in millions)

*Higher feedstock costs

• Core Results for 4Q10 of $111 mm vs. $33 mm in 4Q09

 – Chemical segment earnings for 4Q10 were $111 million and in line with our earlier guidance.

Fourth Quarter 2010 Earnings - Chemical
Segment Variance Analysis - 4Q10 vs. 4Q09

 

 

8

 

 

 

9

($ in millions)

• Core Results for 4Q10 of $202 mm vs. $81 mm in 4Q09

 – Midstream segment earnings for 4Q10 increased compared to $163 mm in 3Q10 and $81 mm
 in 4Q09. The increase in earnings was mainly due to higher trading and marketing income.

Fourth Quarter 2010 Earnings - Midstream
Segment Variance Analysis - 4Q10 vs. 4Q09

 

 

9

 

 

 

10

Fourth Quarter 2010 Earnings -
Full Year 2010 Results & Capital Spending

Fourth Quarter 2010 Earnings -
Full Year 2010 Results & Capital Spending

      FY2010  FY2009

• Net Income ($mm)   $4,530  $2,915

• EPS (diluted)    $5.56  $3.58

• Core Income ($mm)   $4,664  $3,192

• EPS (diluted)    $5.72  $3.92

• Income for the twelve months of 2010 included $134 million of
 charges, net of tax and 2009 included $277 million of charges, net of
 tax, for the items noted on the schedule reconciling net income to
 core results.

• Capital spending for 4Q10 was about $1.4 billion and $3.9 billion for
 full year 2010, excluding Argentina.

 – Capital expenditures by segment were 80% in Oil and Gas, 13% in Midstream with
 the remainder in Chemicals.

 

 

10

 

 

 

11

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

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

• Oil and gas cash production costs, which exclude
 production and property taxes, were $10.19 per boe for
 2010, excluding Argentina.

 

 – Full-year 2009 costs were $8.95 a boe, on the same basis.

 – The year-over-year increase reflects $0.32 a barrel in 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.

• Taxes - other than on income were $1.83 per boe for 2010
 compared to $1.67 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.

 

 

11

 

 

 

12

Operating
Cash Flow
from
Continuing
Operations
$9,100

(excluding
Argentina)

Beginning
Cash $1,200
12/31/09

($ in millions)

– Free cash flow from continuing operations after capex and dividends
 but before acquisition activity and debt retirements was about $4.3
 billion.

Fourth Quarter 2010 Earnings -
Full Year 2010 Cash Flow

 

 

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Fourth Quarter 2010 Earnings -
Shares Outstanding, Debt and Returns

 Shares Outstanding (mm) 2010  12/31/10

 Weighted Average Basic  812.5

 Weighted Average Diluted  813.8

 

 Basic Shares Outstanding    812.5 

 Diluted Shares Outstanding   813.9

      2010 

 

 Debt/Capital   14%

 ROE     14.7%

 ROCE    13.2%

 

 

 

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Fourth Quarter 2010 Earnings -
Acquisitions & Reserve Replacement

Fourth Quarter 2010 Earnings -
Acquisitions & Reserve Replacement

• Our acquisition costs in 4Q10 were $3.1 billion, which
 included the previously announced purchases and oil and gas
 bolt-on properties, mainly in the Permian.

 – We expect to close the purchase of several additional properties and the
 sale of Argentina in 1Q11.

 – During the year we spent $4.1 billion on Oil & Gas acquisitions, of which
 about 50% was on unproved properties.

• On a preliminary basis, our 2010 reserve replacement ratio
 was about 150%.

 – Approximately one-third of the current year reserve adds came from
 acquisitions.

 – We will provide additional details regarding reserves as soon as the
 information is available.

 

 

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Fourth Quarter 2010 Earnings -
Oil and Gas Production - 1Q11 Outlook

• Our 1Q11 production will be impacted by the following
 factors:

 – We will no longer report Argentina production;

 – The timing of the completion of the new acquisitions;

 • While the acquisition of the oil and gas properties in North Dakota
 closed at year end, the acquisition of the South Texas properties is
 yet to close.

 – Planned one month maintenance and production shut-downs at
 Elk Hills and Dolphin;

 • The impact of the Elk Hills shutdown, which will only impact natural
 gas and liquids production, will be about 8 mboe/d for 1Q11.

 • The impact of the Dolphin shutdown will be about 5 mboe/d for
 1Q11.

 

 

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16

 

 

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Fourth Quarter 2010 Earnings -
Oil and Gas Production - 1Q11 Outlook

• We expect 1Q11 oil and gas production volumes to be
 between 740 and 750 mboe/d at 4Q10 average oil prices
 of $85 WTI.

• We expect sales volumes to be around 725 mboe/d.

 – A $5 increase in WTI would reduce our daily volumes by about
 5,500 boe/d.

• Once we know 1Q11 results and the timing and the
 initial production rates on transfer from the pending
 acquisitions, we can provide an accurate full year 2011
 production guidance.

 – Production growth will resume in 2Q11.

 – We reasonably expect that by at least the second half of the
 year, production would be similar to the run rate shown in last
 May's investor presentation, adjusted for oil price changes.

 

 

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Fourth Quarter 2010 Earnings - 1Q11 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 $41 mm;

 – The average 4Q10 WTI oil price was $85.17 per barrel;

 – A swing of $0.50 per mm BTU in domestic gas prices has a $36 mm
 impact on quarterly pretax income;

 – This is a significant increase in gas price sensitivities from what
 we have provided in the past;

 – The current NYMEX gas price is around $4.50 p/mcf.

• We expect 1Q11 exploration expense to be about $85 mm
 for seismic and drilling for our exploration programs.

 

 

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Fourth Quarter 2010 Earnings - 1Q11 Outlook

Fourth Quarter 2010 Earnings - 1Q11 Outlook

• The Chemical segment is expected to provide earnings
 for 1Q11 of about $125 million.

 – We expect margins and volumes to continue to improve as the
 economy strengthens.

• We expect our combined worldwide tax rate in 1Q11 to
 be about 40 percent.

 

 

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Fourth Quarter 2010 Earnings -
Capital Spending and DD&A - Full Year 2011 Outlook

• We expect capital spending for the total year 2011 to be
 about $6.1 billion compared to the total 2010 capital of
 $3.9 billion.

 – Both amounts exclude Argentina and the Shah Field
 Development Project.

 – Occidental's share of the Shah Field development capital will
 total about $4 billion over the next several years.

 – Our 2011 capital is close to our 4Q10 annualized run rate of $5.5
 billion and in line with the five-year capital plan we showed in the
 May investor presentation plus the capital that was deferred from
 2010.

 

• Our Oil and Gas DD&A expense for 2011 should be
 approximately $11.75 per boe.

 – Depreciation for the other two segments should be
 approximately $500 million.

 

 

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(excluding Argentina)

2011E Capital - $6.1 Billion

Fourth Quarter 2010 Earnings -
Capital Spending - 2010 Actual & 2011 Outlook

 

 

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Fourth Quarter 2010 Earnings - California Update

Fourth Quarter 2010 Earnings - California Update

• We have about 520 geologically viable (so-called de-risked)
 shale drilling locations in California excluding traditional Elk
 Hills.

 – Of these locations, about 250 are both outside of Elk Hills proper
 and the Kern County Discovery Area.

• During 2011, based on a conservative view of the permitting
 process, we expect to drill a total of 107 shale wells outside
 Elk Hills proper.

 – As additional permits become available, the level of drilling
 activity would pick-up during the year.

• We will also drill about 28 exploration wells in California in
 2011.

 – Approximately 50% of these wells will be for conventional
 exploration.

 – We expect that the exploration activity will, at a minimum, create
 more unconventional drilling locations.

 

 

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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 fr om existing and future oil and gas development projects or acquisitions; 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”, &# 8220;plan”, “intend”, “believe”, “expect” or similar 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.