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) April 24, 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 2 – Financial Information
Item 2.02. Results of Operations and Financial Condition
On April 24, 2007, Occidental Petroleum Corporation released information regarding its results of operations for the three months ended March 31, 2007. The exhibits to this Form 8-K and the information set forth in this Item 2.02 are being furnished pursuant to Item 2.02, Results of Operations and Financial Condition. The full text of the press release is attached to this report as Exhibit 99.1. The full text of the speeches given by Dr. Ray R. Irani and Stephen I. Chazen is attached to this report as Exhibit 99.2. Investor Relations Supplemental Schedules are attached to this report as Exhibit 99.3. Earnings Conference Call Slides are attached to this report as Exhibit 99.4.
Section 8 – Other Events
Item 8.01. Other Events
On April 24, 2007, Occidental Petroleum Corporation announced net income for the first quarter 2007 was $1.212 billion ($1.43 per diluted share), compared with $1.231 billion ($1.43 per diluted share) for the first quarter 2006. Core results for the first quarter 2007 were $831 million ($0.98 per diluted share), compared with $1.153 billion ($1.34 per diluted share) for the same period in 2006. See the attached schedule for a reconciliation of net income to core results.
Oil and Gas
Oil and gas segment earnings were $2.070 billion for the first quarter 2007, compared with $1.910 billion for the same period in 2006. Oil and gas earnings were $1.549 billion for the first quarter 2007, after excluding gains from the sale of Oxy's investment in the Russian Vanyoganneft joint venture and litigation settlements, compared with $1.910 billion for the first quarter 2006. See the attached schedule for a reconciliation of segment earnings to core results. The decline in the first quarter 2007 reflected $233 million of decreases from lower crude oil and natural gas prices, increased DD&A rates and higher operating expenses, partially offset by higher crude oil production.
The average price for West Texas Intermediate crude oil in the first quarter 2007 was $58.24 per barrel compared to $63.48 per barrel in the first quarter 2006. Oxy's realized price for worldwide crude oil was $51.78 per barrel for the first quarter 2007, compared with $55.38 per barrel for the first quarter 2006. The average price for NYMEX gas in the first quarter 2007 was $7.17 per MCF, compared with $11.42 per MCF in the first quarter 2006. Domestic realized gas prices decreased from $8.36 per MCF in the first quarter 2006 to $6.38 per MCF for the first quarter 2007.
Production
For the first quarter 2007, daily oil and gas production from continuing operations averaged 587,000 barrels of oil equivalent (BOE), a 24,000 BOE increase over the 563,000 equivalent barrels per day produced in the first quarter 2006. The improvement was a result of the Vintage and Plains acquisitions and higher Middle East production in the first quarter, partially offset by an incident at Elk Hills involving the natural gas gathering lines. The Elk Hills incident negatively impacted Oxy's net production for the quarter by 14,000 barrels per day.
Chemicals
Chemical first quarter 2007 segment earnings were $137 million, compared with first quarter 2006 segment earnings of $250 million. The first quarter 2007 results reflect lower margins for caustic soda and polyvinyl chloride.
Items Affecting Net Income
The first quarter 2007 core results of $831 million excludes, net of tax: a $109 million gain for litigation settlements, a $412 million gain resulting from the sale of Oxy's 50-percent investment in the Russian Vanyoganneft joint venture, a $110 million charge for the completion of a cash tender offer for various debt issues, and a $30 million provision for a plant closure and related environmental remediation reserve.
Forward-Looking Statements
Statements in this release that contain words such as "will," "expect" or "estimate," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause 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 risk; changes in tax rates 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 release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
2
SUMMARY OF SEGMENT NET SALES AND EARNINGS
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
(In millions, except per-share amounts) |
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
SEGMENT NET SALES |
|
|
|
|
|
|
Oil and Gas |
|
$ 3,009 |
|
$ 3,125 |
|
|
Chemical |
|
1,060 |
|
1,241 |
|
|
Other |
|
39 |
|
30 |
|
|
|
|
------- |
|
------- |
|
|
Net sales |
|
$ 4,108 |
|
$ 4,396 |
|
|
========================================== |
|
======= |
|
======= |
|
|
SEGMENT EARNINGS |
|
|
|
|
|
|
Oil and Gas (a) |
|
$ 2,070 |
|
$ 1,910 |
|
|
Chemical |
|
137 |
|
250 |
|
|
|
|
------- |
|
------- |
|
|
|
|
2,207 |
|
2,160 |
|
|
Unallocated Corporate Items |
|
|
|
|
|
|
Interest expense, net (b) |
|
(181 |
) |
(29 |
) |
|
Income taxes |
|
(703 |
) |
(907 |
) |
|
Other (c) |
|
(111 |
) |
(71 |
) |
|
|
|
------- |
|
------- |
|
|
Income from Continuing Operations |
|
1,212 |
|
1,153 |
|
|
Discontinued operations, net |
|
-- |
|
78 |
|
|
|
|
------- |
|
------- |
|
|
NET INCOME |
|
$ 1,212 |
|
$ 1,231 |
|
|
|
|
======= |
|
======= |
|
|
BASIC EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.44 |
|
$ 1.36 |
|
|
Discontinued operations, net |
|
-- |
|
0.09 |
|
|
|
|
------- |
|
------- |
|
|
|
|
$ 1.44 |
|
$ 1.45 |
|
|
|
|
======= |
|
======= |
|
|
DILUTED EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.43 |
|
$ 1.34 |
|
|
Discontinued operations, net |
|
-- |
|
0.09 |
|
|
|
|
------- |
|
------- |
|
|
|
|
$ 1.43 |
|
$ 1.43 |
|
|
|
|
======= |
|
======= |
|
|
AVERAGE BASIC COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
BASIC |
|
841.0 |
|
848.5 |
|
|
DILUTED |
|
846.5 |
|
860.9 |
|
|
========================================== |
|
======= |
|
======= |
|
See footnotes on following page.
3
|
(a) |
In January 2007, Occidental sold its 50-percent interest in the Russian Vanyoganneft joint venture to TNK-BP for approximately $485 million and recorded an after-tax gain of $412 million. Also in the first quarter 2007, Occidental resolved certain legal disputes that resulted in an after-tax gain of $109 million. |
|
(b) |
The first quarter 2007 includes a $172 million pre-tax interest charge for the cash tender offer of $659 million principal of various debt issues. |
|
(c) |
The first quarter 2007 includes a $47 million pre-tax charge for a plant closure and related environmental remediation reserve. |
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
($ millions) |
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
CAPITAL EXPENDITURES |
|
$ 784 |
|
$ 596 |
|
|
|
|
======= |
|
======= |
|
|
DEPRECIATION,
DEPLETION AND
|
|
$ 588 |
|
$ 463 |
|
|
========================================== |
|
======= |
|
======= |
|
4
SUMMARY OF OPERATING STATISTICS
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
|
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
NET
OIL, GAS AND LIQUIDS
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
Crude oil and liquids (MBBL) |
|
|
|
|
|
|
California |
|
85 |
|
82 |
|
|
Permian |
|
165 |
|
166 |
|
|
Horn Mountain |
|
10 |
|
15 |
|
|
Hugoton and other |
|
4 |
|
3 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
264 |
|
266 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
California |
|
232 |
|
250 |
|
|
Hugoton and other |
|
150 |
|
133 |
|
|
Permian |
|
198 |
|
189 |
|
|
Horn Mountain |
|
5 |
|
10 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
585 |
|
582 |
|
|
Latin America |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Argentina |
|
33 |
|
24 |
|
|
Colombia |
|
42 |
|
39 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
75 |
|
63 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Argentina |
|
21 |
|
13 |
|
|
Bolivia |
|
14 |
|
13 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
35 |
|
26 |
|
|
Middle East/North Africa |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Oman |
|
22 |
|
17 |
|
|
Qatar |
|
46 |
|
44 |
|
|
Yemen |
|
32 |
|
32 |
|
|
Libya |
|
26 |
|
22 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
126 |
|
115 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Oman |
|
26 |
|
25 |
|
|
Other Eastern Hemisphere |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Pakistan |
|
4 |
|
4 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Pakistan |
|
73 |
|
75 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
589 |
|
566 |
|
|
Colombia-minority interest |
|
(5 |
) |
(5 |
) |
|
Yemen-Occidental net interest |
|
3 |
|
2 |
|
|
|
|
------- |
|
------- |
|
|
Total Worldwide Production (MBOE) (a) |
|
587 |
|
563 |
|
|
========================================== |
|
======= |
|
======= |
|
|
(a) |
Occidental sold its interest in the Russian Vanyoganneft joint venture in January 2007. Russian production has been excluded from both periods for comparability. |
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.
|
|
|
First Quarter |
| ||||||
|
|
|
---------------------------------- |
| ||||||
|
($
millions, except
|
|
2007 |
|
Diluted EPS |
|
2006 |
|
Diluted EPS |
|
|
===================================== |
|
======= |
|
======= |
|
======= |
|
======= |
|
|
TOTAL REPORTED EARNINGS |
|
$ 1,212 |
|
$ 1.43 |
|
$ 1,231 |
|
$ 1.43 |
|
|
|
|
======= |
|
======= |
|
======= |
|
======= |
|
|
Oil and Gas |
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
$ 2,070 |
|
|
|
$ 1,910 |
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Russia-Vanyoganneft sale** |
|
412 |
|
|
|
-- |
|
|
|
|
Legal settlements** |
|
109 |
|
|
|
-- |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Segment Core Results |
|
1,549 |
|
|
|
1,910 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Chemicals |
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
137 |
|
|
|
250 |
|
|
|
|
No significant items affecting earnings |
|
-- |
|
|
|
-- |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Segment Core Results |
|
137 |
|
|
|
250 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Total Segment Core Results |
|
1,686 |
|
|
|
2,160 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
Corporate
Results --
|
|
(995 |
) |
|
|
(929 |
) |
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Debt purchase expense |
|
(172 |
) |
|
|
-- |
|
|
|
|
Facility closure |
|
(47 |
) |
|
|
-- |
|
|
|
|
Tax
effect of pre-tax
|
|
79 |
|
|
|
-- |
|
|
|
|
Discontinued operations, net** |
|
-- |
|
|
|
78 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Corporate
Core Results --
|
|
(855 |
) |
|
|
(1,007 |
) |
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
TOTAL CORE RESULTS |
|
$ 831 |
|
$ 0.98 |
|
$ 1,153 |
|
$ 1.34 |
|
|
===================================== |
|
======= |
|
======= |
|
======= |
|
======= |
|
|
* |
Interest expense, income taxes, G&A expense and other, and non-core items. |
|
** |
Amounts shown after tax. |
6
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: April 24, 2007 |
/s/ Jim A. Leonard |
|
|
|
Jim A.
Leonard, Vice President and Controller
|
|
EXHIBIT INDEX
|
99.1 |
Press release dated April 24, 2007. |
|
99.2 |
Full text of speeches given by Dr. Ray R. Irani and Stephen I. Chazen. |
|
99.3 |
Investor Relations Supplemental Schedules. |
|
99.4 |
Earnings Conference Call Slides. |
EXHIBIT 99.1
For Immediate Release: Tuesday, April 24, 2007
Occidental Petroleum Announces First Quarter Earnings
LOS ANGELES -- Occidental Petroleum Corporation (NYSE: OXY) announced net income for the first quarter 2007 was $1.212 billion ($1.43 per diluted share), compared with $1.231 billion ($1.43 per diluted share) for the first quarter 2006. Core results for the first quarter 2007 were $831 million ($0.98 per diluted share), compared with $1.153 billion ($1.34 per diluted share) for the same period in 2006. See the attached schedule for a reconciliation of net income to core results.
Oil and Gas
Oil and gas segment earnings were $2.070 billion for the first quarter 2007, compared with $1.910 billion for the same period in 2006. Oil and gas earnings were $1.549 billion for the first quarter 2007, after excluding gains from the sale of Oxy's investment in the Russian Vanyoganneft joint venture and litigation settlements, compared with $1.910 billion for the first quarter 2006. See the attached schedule for a reconciliation of segment earnings to core results. The decline in the first quarter 2007 reflected $233 million of decreases from lower crude oil and natural gas prices, increased DD&A rates and higher operating expenses, partially offset by higher crude oil production.
The average price for West Texas Intermediate crude oil in the first quarter 2007 was $58.24 per barrel compared to $63.48 per barrel in the first quarter 2006. Oxy's realized price for worldwide crude oil was $51.78 per barrel for the first quarter 2007, compared with $55.38 per barrel for the first quarter 2006. The average price for NYMEX gas in the first quarter 2007 was $7.17 per MCF, compared with $11.42 per MCF in the first quarter 2006. Domestic realized gas prices decreased from $8.36 per MCF in the first quarter 2006 to $6.38 per MCF for the first quarter 2007.
Production
For the first quarter 2007, daily oil and gas production from continuing operations averaged 587,000 barrels of oil equivalent (BOE), a 24,000 BOE increase over the 563,000 equivalent barrels per day produced in the first quarter 2006. The improvement was a result of the Vintage and Plains acquisitions and higher Middle East production in the first quarter, partially offset by an incident at Elk Hills involving the natural gas gathering lines. The Elk Hills incident negatively impacted Oxy's net production for the quarter by 14,000 barrels per day.
Chemicals
Chemical first quarter 2007 segment earnings were $137 million, compared with first quarter 2006 segment earnings of $250 million. The first quarter 2007 results reflect lower margins for caustic soda and polyvinyl chloride.
Items Affecting Net Income
The first quarter 2007 core results of $831 million excludes, net of tax: a $109 million gain for litigation settlements, a $412 million gain resulting from the sale of Oxy's 50-percent investment in the Russian Vanyoganneft joint venture, a $110 million charge for the completion of a cash tender offer for various debt issues, and a $30 million provision for a plant closure and related environmental remediation reserve.
About Oxy
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Oxy is the fourth largest U.S. oil and gas company, based on equity market capitalization. Oxy's wholly owned subsidiary, OxyChem, manufactures and markets chlor-alkali products and vinyls. Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and
2
upholding high standards of social responsibility in all of the company's worldwide operations.
Forward-Looking Statements
Statements in this release that contain words such as "will," "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 risk; changes in tax rates 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 release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
-0-
|
Contacts: |
Richard S. Kline (media) |
|
|
310-443-6249 |
|
|
Christopher G. Stavros (investors) |
|
|
212-603-8184 |
|
|
For further analysis of Occidental's quarterly performance, please visit the web site: www.oxy.com |
3
SUMMARY OF SEGMENT NET SALES AND EARNINGS
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
(In millions, except per-share amounts) |
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
SEGMENT NET SALES |
|
|
|
|
|
|
Oil and Gas |
|
$ 3,009 |
|
$ 3,125 |
|
|
Chemical |
|
1,060 |
|
1,241 |
|
|
Other |
|
39 |
|
30 |
|
|
|
|
------- |
|
------- |
|
|
Net sales |
|
$ 4,108 |
|
$ 4,396 |
|
|
========================================== |
|
======= |
|
======= |
|
|
SEGMENT EARNINGS |
|
|
|
|
|
|
Oil and Gas (a) |
|
$ 2,070 |
|
$ 1,910 |
|
|
Chemical |
|
137 |
|
250 |
|
|
|
|
------- |
|
------- |
|
|
|
|
2,207 |
|
2,160 |
|
|
Unallocated Corporate Items |
|
|
|
|
|
|
Interest expense, net (b) |
|
(181 |
) |
(29 |
) |
|
Income taxes |
|
(703 |
) |
(907 |
) |
|
Other (c) |
|
(111 |
) |
(71 |
) |
|
|
|
------- |
|
------- |
|
|
Income from Continuing Operations |
|
1,212 |
|
1,153 |
|
|
Discontinued operations, net |
|
-- |
|
78 |
|
|
|
|
------- |
|
------- |
|
|
NET INCOME |
|
$ 1,212 |
|
$ 1,231 |
|
|
|
|
======= |
|
======= |
|
|
BASIC EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.44 |
|
$ 1.36 |
|
|
Discontinued operations, net |
|
-- |
|
0.09 |
|
|
|
|
------- |
|
------- |
|
|
|
|
$ 1.44 |
|
$ 1.45 |
|
|
|
|
======= |
|
======= |
|
|
DILUTED EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.43 |
|
$ 1.34 |
|
|
Discontinued operations, net |
|
-- |
|
0.09 |
|
|
|
|
------- |
|
------- |
|
|
|
|
$ 1.43 |
|
$ 1.43 |
|
|
|
|
======= |
|
======= |
|
|
AVERAGE BASIC COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
BASIC |
|
841.0 |
|
848.5 |
|
|
DILUTED |
|
846.5 |
|
860.9 |
|
|
========================================== |
|
======= |
|
======= |
|
See footnotes on following page.
4
|
(a) |
In January 2007, Occidental sold its 50-percent interest in the Russian Vanyoganneft joint venture to TNK-BP for approximately $485 million and recorded an after-tax gain of $412 million. Also in the first quarter 2007, Occidental resolved certain legal disputes that resulted in an after-tax gain of $109 million. |
|
(b) |
The first quarter 2007 includes a $172 million pre-tax interest charge for the cash tender offer of $659 million principal of various debt issues. |
|
(c) |
The first quarter 2007 includes a $47 million pre-tax charge for a plant closure and related environmental remediation reserve. |
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
($ millions) |
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
CAPITAL EXPENDITURES |
|
$ 784 |
|
$ 596 |
|
|
|
|
======= |
|
======= |
|
|
DEPRECIATION,
DEPLETION AND
|
|
$ 588 |
|
$ 463 |
|
|
========================================== |
|
======= |
|
======= |
|
5
SUMMARY OF OPERATING STATISTICS
|
|
|
First Quarter |
| ||
|
|
|
---------------- |
| ||
|
|
|
2007 |
|
2006 |
|
|
========================================== |
|
======= |
|
======= |
|
|
NET
OIL, GAS AND LIQUIDS
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
Crude oil and liquids (MBBL) |
|
|
|
|
|
|
California |
|
85 |
|
82 |
|
|
Permian |
|
165 |
|
166 |
|
|
Horn Mountain |
|
10 |
|
15 |
|
|
Hugoton and other |
|
4 |
|
3 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
264 |
|
266 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
California |
|
232 |
|
250 |
|
|
Hugoton and other |
|
150 |
|
133 |
|
|
Permian |
|
198 |
|
189 |
|
|
Horn Mountain |
|
5 |
|
10 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
585 |
|
582 |
|
|
Latin America |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Argentina |
|
33 |
|
24 |
|
|
Colombia |
|
42 |
|
39 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
75 |
|
63 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Argentina |
|
21 |
|
13 |
|
|
Bolivia |
|
14 |
|
13 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
35 |
|
26 |
|
|
Middle East/North Africa |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Oman |
|
22 |
|
17 |
|
|
Qatar |
|
46 |
|
44 |
|
|
Yemen |
|
32 |
|
32 |
|
|
Libya |
|
26 |
|
22 |
|
|
|
|
------- |
|
------- |
|
|
Total |
|
126 |
|
115 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Oman |
|
26 |
|
25 |
|
|
Other Eastern Hemisphere |
|
|
|
|
|
|
Crude Oil (MBBL) |
|
|
|
|
|
|
Pakistan |
|
4 |
|
4 |
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
Pakistan |
|
73 |
|
75 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
589 |
|
566 |
|
|
Colombia-minority interest |
|
(5 |
) |
(5 |
) |
|
Yemen-Occidental net interest |
|
3 |
|
2 |
|
|
|
|
------- |
|
------- |
|
|
Total Worldwide Production (MBOE) (a) |
|
587 |
|
563 |
|
|
========================================== |
|
======= |
|
======= |
|
|
(a) |
Occidental sold its interest in the Russian Vanyoganneft joint venture in January 2007. Russian production has been excluded from both periods for comparability. |
6
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.
|
|
|
First Quarter |
| ||||||
|
|
|
---------------------------------- |
| ||||||
|
($
millions, except
|
|
2007 |
|
Diluted EPS |
|
2006 |
|
Diluted EPS |
|
|
===================================== |
|
======= |
|
======= |
|
======= |
|
======= |
|
|
TOTAL REPORTED EARNINGS |
|
$ 1,212 |
|
$ 1.43 |
|
$ 1,231 |
|
$ 1.43 |
|
|
|
|
======= |
|
======= |
|
======= |
|
======= |
|
|
Oil and Gas |
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
$ 2,070 |
|
|
|
$ 1,910 |
|
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Russia-Vanyoganneft sale** |
|
412 |
|
|
|
-- |
|
|
|
|
Legal settlements** |
|
109 |
|
|
|
-- |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Segment Core Results |
|
1,549 |
|
|
|
1,910 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Chemicals |
|
|
|
|
|
|
|
|
|
|
Segment Earnings |
|
137 |
|
|
|
250 |
|
|
|
|
No significant items affecting earnings |
|
-- |
|
|
|
-- |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Segment Core Results |
|
137 |
|
|
|
250 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Total Segment Core Results |
|
1,686 |
|
|
|
2,160 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
Corporate
Results --
|
|
(995 |
) |
|
|
(929 |
) |
|
|
|
Less: |
|
|
|
|
|
|
|
|
|
|
Debt purchase expense |
|
(172 |
) |
|
|
-- |
|
|
|
|
Facility closure |
|
(47 |
) |
|
|
-- |
|
|
|
|
Tax
effect of pre-tax
|
|
79 |
|
|
|
-- |
|
|
|
|
Discontinued operations, net** |
|
-- |
|
|
|
78 |
|
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
Corporate
Core Results --
|
|
(855 |
) |
|
|
(1,007 |
) |
|
|
|
|
|
------- |
|
|
|
------- |
|
|
|
|
TOTAL CORE RESULTS |
|
$ 831 |
|
$ 0.98 |
|
$ 1,153 |
|
$ 1.34 |
|
|
===================================== |
|
======= |
|
======= |
|
======= |
|
======= |
|
|
* |
Interest expense, income taxes, G&A expense and other, and non-core items. |
|
** |
Amounts shown after tax. |
7
EXHIBIT 99.2
Occidental Petroleum Corporation
DR. RAY R. IRANI
Chairman, President and Chief Executive Officer
– Conference Call –
First Quarter 2007 Earnings Announcement
April 24, 2007
Los Angeles, California
Good morning and thank you for joining us.
Consistent with our strategy of focusing on our core areas, we just announced two separate transactions with BP. First, Oxy will acquire for cash BP’s West Texas pipeline system in the Permian Basin. Second, BP will acquire for cash Oxy’s interests in Pakistan.
When this transaction closes in the third quarter, it will further strengthen Oxy’s industry-leading position in the Permian. It will add to our current Permian pipeline assets and will give us a total of 3,844 miles of pipelines in the region with a capacity to transport approximately 190,000 barrels per day from the Permian basin to the market hub at Cushing, Oklahoma.
The exiting of Pakistan, which follows our departure from Russia in January, will further focus our efforts into our major core areas.
1
As you may have read in the press, we have recently submitted proposals for the development of two major sour gas fields to ADNOC officials in the United Arab Emirates. Abu Dhabi has the fifth largest gas reserves in the world. This project has been reported to require an estimated total future capital investment of $10 billion with production estimated at well over a billion cubic feet per day for 25 to 30 years.
In addition, we are in the advanced stages of negotiations on other large oil and gas development projects in our core Middle East/North Africa region.
Before I turn the call over to Steve Chazen, I would like to update you on the Dolphin Project in which we have a 24.5 percent interest. The 230-mile-long natural gas pipeline has been fully tested. Currently, about 300 million cubic feet per day of gas supplied by a third-party is moving through the pipeline system to markets in Dubai. We expect Dolphin gas to begin flowing to the market in July with full-scale production building to an initial two billion cubic feet per day around year-end. I would like to remind everyone that this project was structured to generate a steady stream of cash and earnings for the next 25 years.
I’ll now turn the call over to Steve.
2
Occidental Petroleum Corporation
STEPHEN CHAZEN
Senior Executive Vice President and Chief Financial Officer
– Conference Call –
First Quarter 2007 Earnings Announcement
April 24, 2007
Los Angeles, California
Thank you, Ray.
Net income for the quarter was $1.212 billion, or $1.43 per diluted share, compared to $1.231 billion, or $1.43 per diluted share in the first quarter of 2006. First quarter 2007 core results were $831 million, or $0.98 per diluted share, compared to $1.153 billion, or $1.34 per diluted share in the first quarter of 2006. The 2007 first quarter core results exclude, net of tax: a $412 million gain from the sale of our interest in Russia, a $109 million gain from litigation settlements, a $110 million charge for the completion of a cash tender offer for various debt issues and a $30 million provision for a plant closure.
On a segment basis, oil and gas first quarter 2007 core results, which exclude the gains from the Russian sale and the litigation settlements, were $1.549 billion, compared to $1.910 billion for the first quarter of 2006. The following factors accounted for the change in oil and gas earnings between these quarters:
|
|
• |
Lower worldwide oil and gas price realizations resulted in a decrease of $233 million of earnings over the comparable period in 2006, of which $96 million was from gas price reductions. |
3
|
|
• |
The average price of West Texas Intermediate crude oil for the first quarter 2007 was $58.24 per barrel which was $5.24 per barrel lower than the first quarter 2006 price of $63.48. Occidental’s average realized price in the 2007 first quarter was $3.60 lower than in the comparable period in 2006. |
|
|
• |
The NYMEX gas price for the quarter was $7.17, compared to $11.42 for the first quarter 2006. Oxy’s domestic average realized gas price for the quarter was $6.38, down from $8.36 for the first quarter 2006. |
|
|
• |
Worldwide oil and gas production for the quarter averaged 587,000 barrels of oil equivalent per day – an increase of 4 percent compared with 563,000 BOE production in the first quarter of last year. The production for both quarters excludes volumes of the Russian non-operated asset sold on January 18, 2007. |
|
|
• |
The production improvement was a result of the Vintage and Plains acquisitions and higher Middle East production in the first quarter. An incident at Elk Hills involving the natural gas gathering lines reduced our net production for the quarter by 14,000 BOE per day. |
|
|
• |
Our guidance for the first quarter was in the range of 590,000 to 600,000 BOE per day. We were slightly under this range due to the February incident at Elk Hills. |
|
|
• |
Exploration expense of $102 million in the quarter was in line with our previous guidance. The first quarter 2007 expense was $31 million higher than the first quarter of 2006, with the increase coming from Colombia and the Middle East / North Africa. |
4
Oil and gas operating costs were $11.71 a barrel compared to last year’s $11.23 a barrel, and increased about 2% from the fourth quarter.
Chemical segment earnings for the first quarter 2007 of $137 million was lower than our fourth quarter conference call guidance. January was a strong month; however, industry demand weakened through February and March leading to lower margins. Chemicals earned $250 million in last year’s first quarter. The primary factor that accounted for the quarter-to-quarter difference was lower margins for chlor-alkali and PVC.
Net interest expense, excluding debt retirement charges, was $9 million during the first quarter 2007, compared to $29 million in the 2006 first quarter.
Cash flow from operations for the quarter was approximately $1.6 billion. We received total proceeds of $485 million from the sale of our interest in the Russian joint venture. We used $785 million of the company’s cash flow to fund capital expenditures, $815 million to repurchase debt and $185 million to pay dividends. In addition, we spent $320 million to repurchase 7.0 million common shares at an average price of $45.89 per share. These net cash outlays reduced our $1.6 billion cash balance at the end of last year by $100 million to $1.5 billion at March 31. Debt was $2.24 billion at the end of the quarter, with non-current debt of $1.7 billion.
The weighted average basic shares outstanding for the first quarter were 841.0 million and the weighted average diluted shares outstanding were 846.5 million. At March 31, there were 838.1 million basic shares outstanding and the fully dilutive share amount was approximately 843.6 million.
5
Oxy’s annualized return on equity was 25 percent, with an annualized return on capital employed of 24 percent, despite having increased shareholder equity to $20.2 billion, compared to $18 billion a year ago.
As we look ahead in the current quarter:
|
|
• |
We expect oil and gas production to be in the range of 585,000 to 600,000 BOE per day during the second quarter. The second quarter is expected to include some reduction from PSCs and one less lifting compared to the first quarter production. The previously announced BP transactions will not affect production until their expected closing in the third quarter. We expect this rate to continue until Dolphin comes on stream in the third quarter. |
|
|
• |
A $1.00 per barrel change in oil prices impacts oil and gas quarterly earnings by about $40 million before the impact of income taxes. |
|
|
• |
A swing of 50-cents per million BTUs in gas prices has a $24 million impact on quarterly earnings before income taxes. The NYMEX gas price for the first quarter was $7.17 per thousand cubic feet. |
|
|
• |
We expect exploration expense to be about $110 million for seismic and drilling for our Libya and South American exploration programs. |
|
|
• |
We expect chemical segment earnings to be in the range of $150 to $160 million, compared to the $137 million in the first quarter. Chlorine demand, particularly into vinyls, was weaker in the first quarter, however this has led to a tightening market for its co- |
6
|
|
|
product, caustic soda. We expect caustic soda prices and margins to increase in the second quarter. |
|
|
• |
We expect interest expense to be about $10 million in the second quarter. |
|
|
• |
We will redeem all of the outstanding $276 million of the 8.25% Vintage Petroleum, LLC senior notes on May 1, 2007. |
|
|
• |
We expect our combined worldwide tax rate in the second quarter to remain about 49 percent. Our first quarter U. S. and foreign tax rates are included in the “Investor Relations Supplemental Schedule”. |
7
Copies of the press release announcing our first quarter earnings and the Investor Relations Supplemental Schedules are available on our website www.oxy.com or through the SEC’s EDGAR system.
Now we’re ready to take your questions.
See the investor relations supplemental schedules for the reconciliation of non-GAAP items. Statements in this presentation that contain words such as "will", "expect" or "estimate", or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to differ materially include, but are not limited to: exploration risks such as drilling of unsuccessful wells; global commodity pricing fluctuations and supply/demand considerations for oil, gas and chemicals; higher-than-expected costs; political risk; changes in tax rates; and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition, or disposition. You should not place undue reliance on these forward-looking statements which speak only as of the date of this presentation. Unless legally required, Occidental does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
8
|
Occidental Petroleum Corporation |
|
|
|
|
|
|
|
|
Return on Capital Employed (%) |
|
|
|
|
|
|
|
|
($ Millions) |
|
|
|
Three |
|
| |
|
|
|
|
|
Months |
|
Annualized | |
|
Reconciliation to Generally Accepted Accounting Principles (GAAP) |
|
2006 |
2007 |
|
2007 | ||
|
GAAP measure - earnings applicable to common shareholders |
|
4,191 |
|
1,212 |
|
|
|
|
Interest expense |
|
131 |
|
181 |
|
|
|
|
Tax effect of interest expense |
|
(46 |
) |
(63 |
) |
|
|
|
Earnings before tax-effected interest expense |
|
4,276 |
|
1,330 |
|
|
|
|
GAAP stockholders' equity |
|
19,252 |
|
20,217 |
|
|
|
|
DEBT |
|
|
|
|
|
|
|
|
GAAP debt |
|
|
|
|
|
|
|
|
Debt, including current maturities |
|
2,790 |
|
2,140 |
|
|
|
|
Non-GAAP debt |
|
|
|
|
|
|
|
|
Capital lease obligation |
|
25 |
|
25 |
|
|
|
|
Subsidiary preferred stock |
|
75 |
|
75 |
|
|
|
|
Total debt |
|
2,890 |
|
2,240 |
|
|
|
|
Total capital employed |
|
22,142 |
|
22,457 |
|
|
|
|
Return on Capital Employed (%) |
|
21.2 |
|
6.0 |
|
|
23.9 |
EXHIBIT 99.3
Investor Relations Supplemental Schedules
Investor Relations Supplemental Schedules
2007 First Quarter
Summary
($ Millions)
|
|
|
1Q 2007 |
|
1Q 2006 |
|
Reported Net Income |
|
$1,212 |
|
$1,231 |
|
EPS - Diluted |
|
$1.43 |
|
$1.43 |
|
Core Results |
|
$831 |
|
$1,153 |
|
EPS - Diluted |
|
$0.98 |
|
$1.34 |
|
Total Worldwide Production (mboe/day) |
|
587 |
|
563 |
|
Total Worldwide Crude Oil Realizations ($/BBL) |
|
$51.78 |
|
$55.38 |
|
Domestic Natural Gas Realizations ($/MCF) |
|
$6.38 |
|
$8.36 |
|
Wtd. Average Basic Shares O/S (mm) |
|
841.0 |
|
848.5 |
|
Wtd. Average Diluted Shares O/S (mm) |
|
846.5 |
|
860.9 |
|
Shares Outstanding (mm) |
|
833.8 |
|
856.5 |
|
Cash Flow from Operations |
|
$1,600 |
|
$2,000 |
1
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2007 First Quarter
Net Income (Loss)
($ millions)
|
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | |||||||||||
|
Oil & Gas |
|
|
$ |
2,070 |
|
|
|
$ |
(412 |
) |
|
Sale of Russia - Vanyoganneft |
|
|
$ |
1,549 |
|
|
|
|
|
|
|
|
|
|
|
(109 |
) |
|
Litigation settlements |
|
|
|
|
|
|
Chemical |
|
|
|
137 |
|
|
|
|
|
|
|
|
|
|
|
137 |
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(181 |
) |
|
|
|
172 |
|
|
Debt tender offer |
|
|
|
(9 |
) |
|
Other |
|
|
|
(111 |
) |
|
|
|
47 |
|
|
Plant closure |
|
|
|
(64 |
) |
|
Taxes |
|
|
|
(703 |
) |
|
|
|
(79 |
) |
|
Tax effect of adjustments |
|
|
|
(782 |
) |
|
|
|
|
|
|
|
|
|
|
- |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
|
1,212 |
|
|
|
|
(381 |
) |
|
|
|
|
|
831 |
|
|
Discontinued operations, net of tax |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
- |
|
|
Net Income |
|
|
$ |
1,212 |
|
|
|
$ |
(381 |
) |
|
|
|
|
$ |
831 |
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
1.44 |
|
|
|
|
|
|
|
|
|
|
$ |
0.99 |
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
$ |
0.98 |
|
2
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2006 First Quarter
Net Income (Loss)
($ millions)
|
|
|
Reported Income |
|
Significant Items Affecting Income |
|
Core Results | |||||||||||
|
Oil & Gas |
|
|
$ |
1,910 |
|
|
|
|
|
|
|
|
|
|
$ |
1,910 |
|
|
Chemical |
|
|
|
250 |
|
|
|
|
|
|
|
|
|
|
|
250 |
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(29 |
) |
|
|
|
|
|
|
|
|
|
|
(29 |
) |
|
Other |
|
|
|
(71 |
) |
|
|
|
|
|
|
|
|
|
|
(71 |
) |
|
Taxes |
|
|
|
(907 |
) |
|
|
|
|
|
|
|
|
|
|
(907 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
|
1,153 |
|
|
|
|
- |
|
|
|
|
|
|
1,153 |
|
|
Discontinued operations, net of tax |
|
|
|
78 |
|
|
|
|
(78 |
) |
|
Discontinued operations, net |
|
|
|
- |
|
|
Net Income |
|
|
$ |
1,231 |
|
|
|
$ |
(78 |
) |
|
|
|
|
$ |
1,153 |
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
$ |
1.36 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of tax |
|
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
1.45 |
|
|
|
|
|
|
|
|
|
|
$ |
1.36 |
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
|
$ |
1.34 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Discontinued operations, net of tax |
|
|
|
0.09 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income |
|
|
$ |
1.43 |
|
|
|
|
|
|
|
|
|
|
$ |
1.34 |
|
3
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Items Affecting Comparability of Core Earnings Between Periods
The item(s) below are included in core earnings but are shown in this table
because they affect the comparability of core earnings between periods.
|
|
Pre-tax |
|
|
|
|
|
|
|
Income / (Expense) |
First Quarter | ||||
|
|
|
2007 |
|
2006 | ||
|
|
Corporate |
|
|
|
|
|
|
|
Environmental remediation |
(8 |
) |
|
(7 |
) |
4
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
|
|
|
|
QUARTERLY | |||||||
|
|
REPORTED INCOME |
|
2007 QTR 1 |
|
2006 QTR 4 |
|
2006 QTR 1 | |||
|
|
Oil & Gas (a) |
|
2,070 |
|
|
1,499 |
|
|
1,910 |
|
|
|
Chemicals |
|
137 |
|
|
157 |
|
|
250 |
|
|
|
Corporate & other |
|
(292 |
) |
|
62 |
|
|
(100 |
) |
|
|
Pre-tax income |
|
1,915 |
|
|
1,718 |
|
|
2,060 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
|
281 |
|
|
393 |
|
|
461 |
|
|
|
Foreign (a) |
|
422 |
|
|
402 |
|
|
446 |
|
|
|
Total |
|
703 |
|
|
795 |
|
|
907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
1,212 |
|
|
923 |
|
|
1,153 |
|
|
|
Worldwide effective tax rate |
|
37% |
|
46% |
|
44% | |||
|
|
CORE RESULTS |
|
2007 QTR 1 |
|
2006 QTR 4 |
|
2006 QTR 1 | |||
|
|
Oil & Gas (a) |
|
1,549 |
|
|
1,499 |
|
|
1,910 |
|
|
|
Chemicals |
|
137 |
|
|
157 |
|
|
250 |
|
|
|
Corporate & other |
|
(73 |
) |
|
(105 |
) |
|
(100 |
) |
|
|
Pre-tax income |
|
1,613 |
|
|
1,551 |
|
|
2,060 |
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
|
360 |
|
|
312 |
|
|
461 |
|
|
|
Foreign (a) |
|
422 |
|
|
402 |
|
|
446 |
|
|
|
Total |
|
782 |
|
|
714 |
|
|
907 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core results |
|
831 |
|
|
837 |
|
|
1,153 |
|
|
|
Worldwide effective tax rate |
|
48% |
|
46% |
|
44% | |||
(a) Revenues and income tax expense include taxes owed by Occidental but paid by governmental entities on its behalf. Oil and Gas pre-tax income includes the following revenue amounts by periods.
|
|
|
|
2007 QTR 1 |
|
2006 QTR 4 |
|
2006 QTR 1 | |||
|
|
|
|
288 |
|
|
252 |
|
|
290 |
|
5
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2007 First Quarter Net Income (Loss)
Reported Income Comparison
|
|
|
First Quarter 2007 |
|
Fourth Quarter 2006 |
|
B / (W) | |||||||||
|
Oil & Gas |
|
|
$ |
2,070 |
|
|
|
$ |
1,499 |
|
|
|
$ |
571 |
|
|
Chemical |
|
|
|
137 |
|
|
|
|
157 |
|
|
|
|
(20 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(181 |
) |
|
|
|
(51 |
) |
|
|
|
(130 |
) |
|
Other |
|
|
|
(111 |
) |
|
|
|
113 |
|
|
|
|
(224 |
) |
|
Taxes |
|
|
|
(703 |
) |
|
|
|
(795 |
) |
|
|
|
92 |
|
|
Income from continuing operations |
|
|
|
1,212 |
|
|
|
|
923 |
|
|
|
|
289 |
|
|
Discontinued operations, net |
|
|
|
- |
|
|
|
|
7 |
|
|
|
|
(7 |
) |
|
Net Income |
|
|
$ |
1,212 |
|
|
|
$ |
930 |
|
|
|
$ |
282 |
|
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
1.44 |
|
|
|
$ |
1.10 |
|
|
|
$ |
0.34 |
|
|
Diluted |
|
|
$ |
1.43 |
|
|
|
$ |
1.09 |
|
|
|
$ |
0.34 |
|
|
Worldwide Effective Tax Rate |
|
|
|
37% |
|
|
|
46% |
|
|
|
9% | |||
OCCIDENTAL PETROLEUM
2007 First Quarter Net Income (Loss)
Core Results Comparison
|
|
|
First Quarter 2007 |
|
Fourth Quarter 2006 |
|
B / (W) | |||||||||
|
Oil & Gas |
|
|
$ |
1,549 |
|
|
|
$ |
1,499 |
|
|
|
$ |
50 |
|
|
Chemical |
|
|
|
137 |
|
|
|
|
157 |
|
|
|
|
(20 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(9 |
) |
|
|
|
(20 |
) |
|
|
|
11 |
|
|
Other |
|
|
|
(64 |
) |
|
|
|
(85 |
) |
|
|
|
21 |
|
|
Taxes |
|
|
|
(782 |
) |
|
|
|
(714 |
) |
|
|
|
(68 |
) |
|
Core Results |
|
|
$ |
831 |
|
|
|
$ |
837 |
|
|
|
$ |
(6 |
) |
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.99 |
|
|
|
$ |
0.99 |
|
|
|
$ |
- |
|
|
Diluted |
|
|
$ |
0.98 |
|
|
|
$ |
0.98 |
|
|
|
$ |
- |
|
|
Worldwide Effective Tax Rate |
|
|
|
48% |
|
|
|
46% |
|
|
|
-2% | |||
6
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Oil & Gas
Core Results Variance Analysis 1Q07 vs. 4Q06
($ millions)
OCCIDENTAL PETROLEUM
Chemical
Core Results Variance Analysis 1Q07 vs. 4Q06
($ millions)
7
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2007 First Quarter Net Income (Loss)
Reported Income Comparison
|
|
|
First Quarter 2007 |
|
First Quarter 2006 |
|
B / (W) | |||||||||
|
Oil & Gas |
|
|
$ |
2,070 |
|
|
|
$ |
1,910 |
|
|
|
$ |
160 |
|
|
Chemical |
|
|
|
137 |
|
|
|
|
250 |
|
|
|
|
(113 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(181 |
) |
|
|
|
(29 |
) |
|
|
|
(152 |
) |
|
Other |
|
|
|
(111 |
) |
|
|
|
(71 |
) |
|
|
|
(40 |
) |
|
Taxes |
|
|
|
(703 |
) |
|
|
|
(907 |
) |
|
|
|
204 |
|
|
Income from continuing operations |
|
|
|
1,212 |
|
|
|
|
1,153 |
|
|
|
|
59 |
|
|
Discontinued operations, net |
|
|
|
- |
|
|
|
|
78 |
|
|
|
|
(78 |
) |
|
Net Income |
|
|
$ |
1,212 |
|
|
|
$ |
1,231 |
|
|
|
$ |
(19 |
) |
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
1.44 |
|
|
|
$ |
1.45 |
|
|
|
$ |
(0.01 |
) |
|
Diluted |
|
|
$ |
1.43 |
|
|
|
$ |
1.43 |
|
|
|
$ |
- |
|
|
Worldwide Effective Tax Rate |
|
|
|
37% |
|
|
|
44% |
|
|
|
7% | |||
OCCIDENTAL PETROLEUM
2007 First Quarter Net Income (Loss)
Core Results Comparison
|
|
|
First Quarter 2007 |
|
First Quarter 2006 |
|
B / (W) | |||||||||
|
Oil & Gas |
|
|
$ |
1,549 |
|
|
|
$ |
1,910 |
|
|
|
$ |
(361 |
) |
|
Chemical |
|
|
|
137 |
|
|
|
|
250 |
|
|
|
|
(113 |
) |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
|
|
(9 |
) |
|
|
|
(29 |
) |
|
|
|
20 |
|
|
Other |
|
|
|
(64 |
) |
|
|
|
(71 |
) |
|
|
|
7 |
|
|
Taxes |
|
|
|
(782 |
) |
|
|
|
(907 |
) |
|
|
|
125 |
|
|
Core Results |
|
|
$ |
831 |
|
|
|
$ |
1,153 |
|
|
|
$ |
(322 |
) |
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
$ |
0.99 |
|
|
|
$ |
1.36 |
|
|
|
$ |
(0.37 |
) |
|
Diluted |
|
|
$ |
0.98 |
|
|
|
$ |
1.34 |
|
|
|
$ |
(0.36 |
) |
|
Worldwide Effective Tax Rate |
|
|
|
48% |
|
|
|
44% |
|
|
|
-4% | |||
8
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Oil & Gas
Core Results Variance Analysis 1Q07 vs. 1Q06
($ millions)
OCCIDENTAL PETROLEUM
Chemical
Core Results Variance Analysis 1Q07 vs. 1Q06
($ millions)
9
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
|
First Quarter | ||||||
|
|
|
|
2007 |
|
2006 | ||||
|
|
NET PRODUCTION PER DAY: |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Crude Oil and Liquids (MBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
|
85 |
|
|
|
82 |
|
|
|
Permian |
|
|
165 |
|
|
|
166 |
|
|
|
Horn Mountain |
|
|
10 |
|
|
|
15 |
|
|
|
Hugoton and other |
|
|
4 |
|
|
|
3 |
|
|
|
Total |
|
|
264 |
|
|
|
266 |
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
California |
|
|
232 |
|
|
|
250 |
|
|
|
Hugoton and other |
|
|
150 |
|
|
|
133 |
|
|
|
Permian |
|
|
198 |
|
|
|
189 |
|
|
|
Horn Mountain |
|
|
5 |
|
|
|
10 |
|
|
|
Total |
|
|
585 |
|
|
|
582 |
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBL) |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
|
33 |
|
|
|
24 |
|
|
|
Colombia |
|
|
42 |
|
|
|
39 |
|
|
|
Total |
|
|
75 |
|
|
|
63 |
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Argentina |
|
|
21 |
|
|
|
13 |
|
|
|
Bolivia |
|
|
14 |
|
|
|
13 |
|
|
|
|
|
|
35 |
|
|
|
26 |
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBL) |
|
|
|
|
|
|
|
|
|
|
Oman |
|
|
22 |
|
|
|
17 |
|
|
|
Qatar |
|
|
46 |
|
|
|
44 |
|
|
|
Yemen |
|
|
32 |
|
|
|
32 |
|
|
|
Libya |
|
|
26 |
|
|
|
22 |
|
|
|
Total |
|
|
126 |
|
|
|
115 |
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Oman |
|
|
26 |
|
|
|
25 |
|
|
|
Other Eastern Hemisphere |
|
|
|
|
|
|
|
|
|
|
Crude Oil (MBL) |
|
|
|
|
|
|
|
|
|
|
Pakistan |
|
|
4 |
|
|
|
4 |
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Pakistan |
|
|
73 |
|
|
|
75 |
|
|
|
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
|
|
|
Subtotal consolidated subsidiaries |
|
|
589 |
|
|
|
566 |
|
|
|
Other interests |
|
|
|
|
|
|
|
|
|
|
Colombia – minority interest |
|
|
(5 |
) |
|
|
(5 |
) |
|
|
Yemen – Occidental net interest |
|
|
3 |
|
|
|
2 |
|
|
|
Total worldwide production (MBOE) (a) |
|
|
587 |
|
|
|
563 |
|
(a) Occidental sold its interest in the Russian Vanyoganneft joint venture in January 2007. Russian production has been excluded for comparability.
10
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
|
First Quarter | ||||||
|
|
|
|
2007 |
|
2006 | ||||
|
|
OIL & GAS: |
|
|
|
|
|
|
|
|
|
|
PRICES |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
52.17 |
|
|
|
55.25 |
|
|
|
Natural gas ($/MCF) |
|
|
6.38 |
|
|
|
8.36 |
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
45.71 |
|
|
|
51.82 |
|
|
|
Natural Gas ($/MCF) |
|
|
1.94 |
|
|
|
1.76 |
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
55.31 |
|
|
|
57.94 |
|
|
|
Natural Gas ($/MCF) |
|
|
0.97 |
|
|
|
0.97 |
|
|
|
Other Eastern Hemisphere |
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
49.67 |
|
|
|
50.63 |
|
|
|
Natural Gas ($/MCF) |
|
|
2.95 |
|
|
|
2.85 |
|
|
|
Total Worldwide (a) |
|
|
|
|
|
|
|
|
|
|
Crude Oil ($/BBL) |
|
|
51.78 |
|
|
|
55.38 |
|
|
|
Natural Gas ($/MCF) |
|
|
5.59 |
|
|
|
7.20 |
|
|
|
|
|
First Quarter | ||||||||
|
|
|
|
2007 |
|
2006 | ||||||
|
|
Exploration Expense |
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
$ |
18 |
|
|
|
$ |
32 |
|
|
|
Latin America |
|
|
|
23 |
|
|
|
|
3 |
|
|
|
Middle East / North Africa |
|
|
|
53 |
|
|
|
|
23 |
|
|
|
Other Eastern Hemisphere |
|
|
|
8 |
|
|
|
|
13 |
|
|
|
TOTAL |
|
|
$ |
102 |
|
|
|
$ |
71 |
|
(a) Occidental sold its interest in the Russian Vanyoganneft joint venture in January 2007. Russian production has been excluded for comparability.
11
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
|
First Quarter | ||||||||
|
|
Capital Expenditures ($MM) |
|
2007 |
|
2006 | ||||||
|
|
Oil & Gas |
|
|
|
|
|
|
|
|
|
|
|
|
California |
|
|
$ |
132 |
|
|
|
$ |
103 |
|
|
|
Permian |
|
|
|
164 |
|
|
|
|
127 |
|
|
|
Other – U.S. |
|
|
|
44 |
|
|
|
|
67 |
|
|
|
Latin America |
|
|
|
114 |
|
|
|
|
47 |
|
|
|
Middle East / North Africa |
|
|
|
293 |
|
|
|
|
209 |
|
|
|
Other Eastern Hemisphere |
|
|
|
4 |
|
|
|
|
6 |
|
|
|
Chemicals |
|
|
|
27 |
|
|
|
|
33 |
|
|
|
Corporate |
|
|
|
6 |
|
|
|
|
4 |
|
|
|
TOTAL |
|
|
$ |
784 |
|
|
|
$ |
596 |
|
|
|
Depreciation, Depletion & |
|
First Quarter | ||||||||
|
|
Amortization of Assets ($MM) |
|
2007 |
|
2006 | ||||||
|
|
Oil & Gas |
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
|
|
$ |
251 |
|
|
|
$ |
205 |
|
|
|
Latin America |
|
|
|
90 |
|
|
|
|
49 |
|
|
|
Middle East / North Africa |
|
|
|
153 |
|
|
|
|
129 |
|
|
|
Other Eastern Hemisphere |
|
|
|
9 |
|
|
|
|
9 |
|
|
|
Chemicals |
|
|
|
73 |
|
|
|
|
66 |
|
|
|
Corporate |
|
|
|
12 |
|
|
|
|
5 |
|
|
|
TOTAL |
|
|
$ |
588 |
|
|
|
$ |
463 |
|
12
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
|
|
31-Mar-07 |
|
31-Dec-06 | ||||||||||
|
CAPITALIZATION |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-Term Debt (including current maturities) |
|
|
$ |
2,140 |
|
|
|
|
|
$ |
2,790 |
|
|
|
Subsidiary Preferred Stock |
|
|
|
75 |
|
|
|
|
|
|
75 |
|
|
|
Others |
|
|
|
25 |
|
|
|
|
|
|
25 |
|
|
|
Total Debt |
|
|
$ |
2,240 |
|
|
|
|
|
$ |
2,890 |
|
|
|
EQUITY |
|
|
$ |
20,217 |
|
|
|
|
|
$ |
19,252 |
|
|
|
Total Debt To Total Capitalization |
|
|
|
10% |
|
|
|
|
|
13% |
| ||
13
Investor Relations Supplemental Schedules
See the investor relations supplemental schedules for the reconciliation of non-GAAP items. 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 materially 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 risk; 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 filing. Unless legally required, Occidental disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
14
EXHIBIT 99.4
First Quarter 2007
Earnings Conference Call
April 24, 2007
1
First Quarter 2007 Earnings - Highlights
Reported Net Income - $1.212 Billion
Reported EPS $1.43 (diluted)
Core Results - $831 Million
Core Results EPS $0.98 (diluted)
Excludes:
$412 mm A-T gain from the sale of our interest in Russia.
$109 mm A-T gain from litigation settlements.
$110
mm charge for the completion of a cash tender
offer for various debt issues.
$30 mm provision for a plant closure.
2
First
Quarter 2007 Earnings - Oil & Gas Segment
Variance Analysis - 1Q07 vs. 1Q06
Core Results for 1Q07 of $1.549 Billion
-19% year-over-year
($ in millions)
$1,910
1Q 06
$233
Sales Price
$64
Sales
Volume/Mix
$31
Exploration
Expense
$161
All Others
$1,549
1Q 07
3
First
Quarter 2007 Earnings - Oil & Gas
Segment
1Q07
1Q06
Reported Segment Earnings ($ mm)
$2,070
$1,910
WTI Oil Price ($/bbl)
$58.24
$63.48
NYMEX Gas Price ($/mcf)
$7.17
$11.42
Oxy’s Realized Prices
Worldwide Oil ($/bbl)
$51.78
$55.38
US Natural Gas ($/mcf)
$6.38
$8.36
4
First
Quarter 2007 Earnings - Oil & Gas
Segment
1Q07
1Q06
Oil and Gas Production (mboe/day)
587
563
+4% year-over-year
Production for both quarters excludes volumes
of Russian non-operated asset sold 1/18/07.
Production increase due to:
Acquisition of Vintage Petroleum and Plains.
Higher Middle East production.
An incident at Elk Hills in February reduced
net production in 1Q07 by 14 mboe/day, causing
worldwide production to be slightly below our
earlier guidance.
5
First
Quarter 2007 Earnings - Oil & Gas
Segment
1Q07
1Q06
Exploration Expense ($ mm)
$102
$71
Increase due to Colombia and
Middle East/North Africa
Oil
and Gas operating costs were $11.71 per boe in 1Q07
vs. $11.23 per boe for full-year 2006.
These costs increased about 2% from 4Q06.
6
First
Quarter 2007 Earnings – Chemicals Segment
Variance Analysis - 1Q07 vs. 1Q06
Core Results for 1Q07 of $137 Million
-45% year-over-year, and lower than previous guidance.
Primary
factor accounting for quarter-to-quarter difference was
lower margins for chlor-alkali and PVC.
($ in millions)
$250
1Q 06
$148
Sales Price
$22
Sales
Volume/Mix
$56
Operations/
Manufacturing
$1
All Others
$137
1Q 07
7
First Quarter 2007 Earnings – Cash Flow
($ in millions)
$3,200
Cash
Flow From
Operations
$1,600
Beginning
Cash
$1,600
Available
Cash
$485
Asset Sale
Proceeds
$785
Capex
Acquisitions
$815
Debt
Reduction
$185
Dividends
$320
Share
Repurchase
$80
Other
$1,500
Ending Cash
Balance
8
First Quarter 2007 Earnings - Share Repurchase
Spent
$320 million to repurchase 7.0 million shares in
1Q07 at an average price of $45.89 a share.
18.7
million shares remain under the current 55 million
share repurchase authorization.
Shares Outstanding (mm)
1Q07
3/31/07
Weighted Average Basic
841.0
Weighted Average Diluted
846.5
Basic Shares Outstanding
838.1
Diluted Shares Outstanding
843.6
9
First Quarter 2007 Earnings - 2Q07 Outlook
We
expect Oil and Gas production in the range of 585 to
600 mboe/day in 2Q07.
2Q07
is expected to include some reduction from PSCs and one
less lifting compared to the 1Q07 production.
Previously
announced BP transactions will not affect production
until their expected closing in 3Q07.
Expect
2Q07 production rate to continue until the Dolphin Project
comes on stream.
Commodity Price Sensitivity
A
$1.00 per barrel change in oil prices impacts oil and gas quarterly
earnings by about $40 million (pre-tax).
A
change of 50-cents per million BTUs in gas prices has a $24
million impact on quarterly earnings (pre-tax). The NYMEX gas
price for 1Q07 was $7.17 per mcf.
Exploration
expense of about $110 million for seismic
and drilling for our Libya and South American programs.
10
First Quarter 2007 Earnings - 2Q07 Outlook
Expect
2Q07 Chemical Earnings to be in the range of
$150 to $160 million compared to $137 million in 1Q07.
Chlorine
demand, particularly into vinyls, was weaker in 1Q07,
however this has led to a tightening market for its co-product,
caustic soda.
We expect caustic soda prices and margins to increase in 2Q07.
Expect Interest Expense to be about $10 million in 2Q07.
We
will redeem all of the outstanding $276 million of the 8.25%
Vintage Petroleum, LLC senior notes on May 1, 2007.
Expect
our combined worldwide tax rate in 2Q07 to
remain about 49 percent.
11
First Quarter 2007 Earnings
See
the investor relations supplemental schedules for the reconciliation of non-
GAAP items. Statements in this presentation that contain words such as "will",
"expect" or "estimate", or otherwise relate to the future, are forward-looking and
involve risks and uncertainties that could materially affect expected
results. Factors that could cause results to differ materially include, but are not
limited to: exploration risks, such as drilling of unsuccessful wells; global
commodity pricing fluctuations and supply/demand considerations for oil, gas
and chemicals; higher-than-expected costs; political risk; and not successfully
completing (or any material delay in) any expansion, capital expenditure,
acquisition, or disposition. You should not place undue reliance on these
forward-looking statements which speak only as of the date of this presentation.
Unless legally required, Occidental disclaims any obligation to update any
forward-looking statements as a result of new information, future events or
otherwise. U.S. investors are urged to consider carefully the disclosure in our
Form 10-K, available through the following toll-free telephone number, 1-888-
OXYPETE (1-888-699-7383) or on the Internet
at http://www.oxy.com. You
also
can obtain a copy from the SEC by calling 1-800-SEC-0330.
12
|
Occidental Petroleum Corporation |
|
|
|
|
|
|
Cash and Cash Equivalents |
|
|
|
|
|
|
($ Millions) |
|
|
|
|
|
|
Reconciliation to Generally Accepted Accounting Principles (GAAP) |
|
|
|
|
|
|
|
|
31-Dec-06 |
31-Mar-07 | ||
|
Cash and cash equivalents |
|
1,339 |
|
1,292 |
|
|
Short-term investments |
|
240 |
|
213 |
|
|
|
|
1,579 |
|
1,505 |
|
|
Roundings for presentation |
|
21 |
|
(5 |
) |
|
|
|
1,600 |
|
1,500 |
|