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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) July 31, 2014
OCCIDENTAL PETROLEUM CORPORATION
(Exact name of registrant as specified in its charter)
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Delaware |
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1-9210 |
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95-4035997 |
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(State or other jurisdiction |
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(Commission |
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(I.R.S. Employer |
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of incorporation) |
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File Number) |
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Identification No.) |
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5 Greenway Plaza, Suite 110 |
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Houston, Texas |
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77046 |
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(Address of principal executive offices) |
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(ZIP code) |
Registrant’s telephone number, including area code: (713) 215-7000
Not Applicable
(Former name or former address, if changed since last report)
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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):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o 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 July 31, 2014, Occidental Petroleum Corporation released information regarding its results of operations for the three months ended June 30, 2014. 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 presentations of Chris Stavros, Stephen Chazen, Vicki Hollub and Willie Chiang are 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. Forward-Looking Statements Disclosure for Earnings Release Presentation Materials is attached to this report as Exhibit 99.5. The information in this Item 2.02 and Exhibits 99.1 through 99.5, inclusive, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing.
Section 8 - Other Events
Item 8.01. Other Events
On July 31, 2014, Occidental Petroleum Corporation announced net income for the second quarter of 2014 of $1.4 billion ($1.82 per diluted share), compared with $1.3 billion ($1.64 per diluted share) for the second quarter of 2013. Core income was $1.4 billion ($1.79 per diluted share) for the second quarter of 2014, compared with $1.3 billion ($1.58 per diluted share) for the second quarter of 2013.
QUARTERLY RESULTS
Oil and Gas
Domestic core earnings were $1.1 billion pre-tax or $679 million after-tax for the second quarter of 2014, compared to $1.0 billion pre-tax or $635 million after-tax for the second quarter of 2013. The current quarter domestic results reflected higher realized prices across all products and higher oil volumes, partially offset by higher operating costs and higher DD&A. The increase in operating costs was due to increased maintenance activities and higher costs for CO2, steam and power, which are influenced by crude oil and natural gas prices. International core earnings were $1.1 billion pre-tax or $576 million after-tax for the second quarter of 2014, compared to $1.2 billion pre-tax or $641 million after-tax for the second quarter of 2013. The current quarter international results reflected lower oil volumes, partially offset by higher oil prices and lower operating costs.
For the second quarter of 2014, total company average daily oil and gas production volumes, excluding the Hugoton production, averaged 736,000 barrels of oil equivalent (BOE), compared with 753,000 BOE in the second quarter of 2013. The sale of Hugoton assets closed on April 30, 2014. Hugoton production averaged 6,000 BOE per day and 19,000 BOE per day for the second quarter of 2014 and 2013, respectively. Domestic average daily production increased by 13,000 BOE to 464,000 BOE in the second quarter of 2014 compared to 451,000 BOE in the second quarter of 2013. Domestic average oil production increased by 21,000 barrels per day, primarily from California and Permian Resources. International average daily production decreased to 272,000 BOE in the second quarter of 2014 from 302,000 BOE in second quarter of 2013. The decrease primarily resulted from insurgent activities in Colombia, continued field and port strikes in Libya and lower cost recovery barrels in Iraq. Total company average daily sales volumes decreased to 735,000 BOE in the second quarter of 2014 from 745,000 BOE in the second quarter of 2013, mainly due to the timing of liftings.
Worldwide realized crude oil prices increased by 3 percent to $100.38 per barrel for the second quarter of 2014 compared with $97.91 per barrel for the second quarter of 2013 and improved slightly compared to the first quarter of 2014. Worldwide NGL prices increased by 10 percent to $42.82 per barrel in the second quarter of 2014, compared with $38.78 per barrel in the second quarter of 2013, but decreased by 7 percent compared with $46.05 in the first quarter of 2014. Domestic natural gas prices increased 12 percent in the second quarter of 2014 to $4.28 per MCF, compared with $3.82 in the second quarter of 2013, and fell by 6 percent compared with the first quarter of 2014.
Chemical
Chemical core earnings for the second quarter of 2014 were $133 million, compared to $144 million in the second quarter of 2013, excluding the $131 million gain on the sale of our investment in Carbocloro. The decrease in second quarter of 2014 earnings reflected lower caustic soda prices driven by new chlor-alkali capacity in the industry and higher natural gas costs, partially offset by higher vinyl margins resulting from improvement in the U.S. construction markets.
Midstream, Marketing and Other
Midstream core earnings were $219 million for the second quarter of 2014, compared with $48 million for the second quarter of 2013. The increase in earnings reflected improved marketing and trading performance.
Non-Core Items
The second quarter of 2014 included a net non-core income benefit of $27 million, which included a $341 million after-tax gain from the sale of Hugoton oil and gas assets, a $300 million after-tax charge for the impairment of certain non-producing domestic oil and gas acreage and on-going costs related to the California spin-off. The non-core items in the second quarter of 2013 provided a net income benefit of $46 million.
SIX-MONTH RESULTS
Net income for the first six months of 2014 was $2.8 billion ($3.58 per diluted share), compared with $2.7 billion ($3.32 per diluted share) for the same period in 2013. Core income for the first six months of 2014 was $2.8 billion ($3.54 per diluted share), compared with $2.6 billion ($3.27 per diluted share) for the same period in 2013.
Oil and Gas
Domestic core earnings were $2.1 billion pre-tax or $1.4 billion after-tax for the first six months of 2014, compared to $1.9 billion pre-tax or $1.2 billion after-tax for the first six months of 2013. The increase in domestic core earnings reflected higher realized prices across all products and higher oil volumes, partially offset by higher costs for CO2, steam and power and higher DD&A. International core earnings were $2.2 billion pre-tax or $1.1 billion after-tax for the first six months of 2014, compared to $2.2 billion pre-tax or $1.2 billion after-tax for the first six months of 2013. International core earnings reflected lower Middle East/North Africa volumes, partially offset by lower operating costs.
Oil and gas production volumes, excluding Hugoton production, for the first six months of 2014 averaged 731,000 BOE per day, compared with 749,000 BOE per day for the first six months of 2013. Domestic daily production averaged 460,000 BOE and 455,000 BOE for the first six months of 2014 and 2013, respectively. Average domestic oil production increased by 15,000 barrels per day in the first six months of 2014, compared to the first six months of 2013. Average international daily production volumes decreased to 271,000 BOE for the first six months of 2014 from 294,000 BOE for the first six months of 2013. The decrease was primarily due to insurgent activities in Colombia, continued field and port strikes in Libya and lower cost recovery barrels in Iraq. Total Company daily sales volumes averaged 726,000 BOE in the first six months of 2014, compared with 736,000 BOE for 2013. Sales volumes were lower than production volumes due to the timing of liftings in Middle East/North Africa.
Worldwide realized crude oil prices rose by 2 percent to $99.70 per barrel for the first six months of 2014, compared with $97.99 per barrel for the first six months of 2013. Worldwide NGL prices increased by 12 percent to $44.43 per barrel for the first six months of 2014, compared with $39.52 per barrel for the first six months of 2013. Domestic gas prices increased by 29 percent to $4.43 per MCF for the first six months of 2014, compared to $3.44 per MCF for the first six months of 2013.
Chemical
Chemical core earnings were $269 million for the first six months of 2014, compared with $303 million for the same period of 2013, excluding the $131 million gain on the sale of our investment in Carbocloro. The lower earnings reflected lower caustic soda prices, driven by new chlor-alkali capacity in the industry and higher natural gas costs, partially offset by higher vinyl margins and volume improvements across most products.
Midstream, Marketing and Other
Midstream core earnings were $389 million for the first six months of 2014, compared with $263 million for the same period of 2013. The increase in earnings reflected improved marketing and trading performance.
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. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations, including any delay of, or other negative developments affecting, the spin-off of California Resources Corporation; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor
unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of 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 I, Item 1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.
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Attachment 1
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SUMMARY OF SEGMENT NET SALES AND AFTER-TAX EARNINGS |
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Second Quarter |
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Six Months |
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($ millions, except per-share amounts) |
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2014 |
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2013 |
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2014 |
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2013 |
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SEGMENT NET SALES |
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|
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Oil and Gas |
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$ |
4,807 |
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$ |
4,721 |
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$ |
9,483 |
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$ |
9,161 |
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Chemical |
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1,242 |
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1,187 |
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2,462 |
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2,362 |
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Midstream, Marketing and Other |
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530 |
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269 |
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965 |
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722 |
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Eliminations |
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(304) |
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(215) |
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(547) |
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(411 |
) | ||||
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|
|
|
|
|
|
|
|
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Net Sales |
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$ |
6,275 |
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$ |
5,962 |
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$ |
12,363 |
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$ |
11,834 |
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|
|
|
|
|
|
|
|
|
|
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SEGMENT EARNINGS - AFTER-TAX |
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|
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|
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Oil and Gas |
|
|
|
|
|
|
|
|
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Domestic |
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$ |
720 |
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$ |
635 |
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$ |
1,394 |
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$ |
1,201 |
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Foreign |
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576 |
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641 |
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1,128 |
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1,177 |
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|
Exploration |
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(36) |
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(56) |
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(68) |
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(29 |
) | ||||
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|
|
1,260 |
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1,220 |
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2,454 |
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2,349 |
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Chemical |
|
84 |
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172 |
|
170 |
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271 |
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Midstream, Marketing and Other (a) |
|
160 |
|
46 |
|
278 |
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192 |
| ||||
|
|
|
1,504 |
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1,438 |
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2,902 |
|
2,812 |
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|
|
|
|
|
|
|
|
|
|
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Unallocated Corporate Items |
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|
|
|
|
|
|
|
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Interest expense, net |
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(15) |
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(29) |
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(34) |
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(59 |
) | ||||
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Income taxes |
|
73 |
|
84 |
|
153 |
|
160 |
| ||||
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Other |
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(130) |
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(166) |
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(202) |
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(227 |
) | ||||
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|
|
|
|
|
|
|
|
|
| ||||
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Income from Continuing Operations (a) |
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1,432 |
|
1,327 |
|
2,819 |
|
2,686 |
| ||||
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Discontinued operations, net |
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(1) |
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(5) |
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2 |
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(9 |
) | ||||
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|
|
|
|
|
|
|
|
|
| ||||
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NET INCOME (a) |
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$ |
1,431 |
|
$ |
1,322 |
|
$ |
2,821 |
|
$ |
2,677 |
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|
|
|
|
|
|
|
|
|
|
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BASIC EARNINGS PER COMMON SHARE |
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|
|
|
|
|
|
|
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Income from continuing operations |
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$ |
1.83 |
|
$ |
1.65 |
|
$ |
3.58 |
|
$ |
3.33 |
|
|
Discontinued operations, net |
|
- |
|
(0.01) |
|
- |
|
(0.01 |
) | ||||
|
|
|
$ |
1.83 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.32 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
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DILUTED EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
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Income from continuing operations |
|
$ |
1.82 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.33 |
|
|
Discontinued operations, net |
|
- |
|
- |
|
- |
|
(0.01 |
) | ||||
|
|
|
$ |
1.82 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.32 |
|
|
AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
782.6 |
|
804.9 |
|
786.9 |
|
804.8 |
| ||||
|
DILUTED |
|
782.9 |
|
805.4 |
|
787.3 |
|
805.3 |
| ||||
(a) Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $3 million and $5 million for the second quarter and first six months of 2014, respectively. Midstream segment earnings are presented net of these non-controlling interest amounts.
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Attachment 2 |
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SUMMARY OF SEGMENT PRE-TAX EARNINGS |
|
|
|
Second Quarter |
|
Six Months | ||||
|
($ millions) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
SEGMENT EARNINGS - PRE-TAX |
|
|
|
|
|
|
|
|
|
Oil and Gas |
|
|
|
|
|
|
|
|
|
Domestic |
|
$ 1,132 |
|
$ 997 |
|
$ 2,190 |
|
$ 1,886 |
|
Foreign |
|
1,096 |
|
1,173 |
|
2,188 |
|
2,246 |
|
Exploration |
|
(46) |
|
(70) |
|
(92) |
|
(112) |
|
|
|
2,182 |
|
2,100 |
|
4,286 |
|
4,020 |
|
Chemical |
|
133 |
|
275 |
|
269 |
|
434 |
|
Midstream, Marketing and Other (a) |
|
219 |
|
48 |
|
389 |
|
263 |
|
|
|
2,534 |
|
2,423 |
|
4,944 |
|
4,717 |
|
|
|
|
|
|
|
|
|
|
|
Unallocated Corporate Items |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(15) |
|
(29) |
|
(34) |
|
(59) |
|
Income taxes |
|
(957) |
|
(901) |
|
(1,889) |
|
(1,745) |
|
Other |
|
(130) |
|
(166) |
|
(202) |
|
(227) |
|
|
|
|
|
|
|
|
|
|
|
Income from Continuing Operations (a) |
|
1,432 |
|
1,327 |
|
2,819 |
|
2,686 |
|
Discontinued operations, net |
|
(1) |
|
(5) |
|
2 |
|
(9) |
|
|
|
|
|
|
|
|
|
|
|
NET INCOME (a) |
|
$ 1,431 |
|
$ 1,322 |
|
$ 2,821 |
|
$ 2,677 |
(a) Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting non-controlling interest of $3 million and $5 million for the second quarter and first six months of 2014, respectively. Midstream segment earnings are presented net of these non-controlling interest amounts.
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Attachment 3 |
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SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
Occidental’s results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called “core results,” which excludes those items. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported earnings are considered representative of management’s performance over the long term. Core results is not considered to be an alternative to operating income reported in accordance with generally accepted accounting principles.
|
Second Quarter 2014 |
|
|
|
|
|
| |
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
Core |
|
Oil and Gas |
|
|
|
|
|
| |
|
Domestic |
|
$ 1,132 |
|
$ (535) |
(a) |
$ 1,068 | |
|
|
|
|
|
471 |
(b) |
| |
|
Foreign |
|
1,096 |
|
|
|
1,096 | |
|
Exploration |
|
(46) |
|
|
|
(46) | |
|
|
|
2,182 |
|
|
|
2,118 | |
|
|
|
|
|
|
|
| |
|
Chemical |
|
133 |
|
|
|
133 | |
|
|
|
|
|
|
|
| |
|
Midstream, Marketing and Other |
|
219 |
|
|
|
219 | |
|
|
|
|
|
|
|
| |
|
Corporate |
|
|
|
|
|
| |
|
Interest expense |
|
(15) |
|
|
|
(15) | |
|
Other |
|
(130) |
|
17 |
(c) |
(113) | |
|
Taxes |
|
(957) |
|
19 |
|
(938) | |
|
|
|
|
|
|
|
| |
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
1,404 | |
|
Discontinued operations, net |
|
(1) |
|
1 |
|
- | |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
$ 1,404 | |
|
Second Quarter 2014 |
|
|
|
|
|
| |
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
Core |
|
Oil and Gas |
|
|
|
|
|
| |
|
Domestic |
|
$ 720 |
|
$ (341) |
(a) |
$ 679 | |
|
|
|
|
|
300 |
(b) |
| |
|
Foreign |
|
576 |
|
|
|
576 | |
|
Exploration |
|
(36) |
|
|
|
(36) | |
|
|
|
1,260 |
|
|
|
1,219 | |
|
|
|
|
|
|
|
| |
|
Chemical |
|
84 |
|
|
|
84 | |
|
|
|
|
|
|
|
| |
|
Midstream, Marketing and Other |
|
160 |
|
|
|
160 | |
|
|
|
|
|
|
|
| |
|
Corporate |
|
|
|
|
|
| |
|
Interest expense |
|
(15) |
|
|
|
(15) | |
|
Other |
|
(130) |
|
13 |
(c) |
(117) | |
|
Unallocated taxes |
|
73 |
|
|
|
73 | |
|
|
|
|
|
|
|
| |
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
1,404 | |
|
Discontinued operations, net |
|
(1) |
|
1 |
|
- | |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
$ 1,404 | |
|
|
|
|
|
|
|
| |
|
Diluted Earnings Per Common Share |
|
$ 1.82 |
|
|
|
$ 1.79 | |
|
|
|
|
|
|
|
| |
|
(a) Hugoton sale gain. |
|
|
|
|
|
| |
|
(b) Asset impairments. |
|
|
|
|
|
| |
|
(c) Spin-off and other costs. |
|
|
|
|
|
| |
|
Attachment 4 | |
|
| |
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
|
Second Quarter 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
997 |
|
|
|
|
$ |
997 |
| ||
|
Foreign |
|
1,173 |
|
|
|
|
1,173 |
| ||||
|
Exploration |
|
(70) |
|
|
|
|
(70 |
) | ||||
|
|
|
2,100 |
|
|
|
|
2,100 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
275 |
|
$ |
(131) |
(a) |
|
144 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
48 |
|
|
|
|
48 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(29) |
|
|
|
|
(29 |
) | ||||
|
Other |
|
(166) |
|
55 |
(b) |
|
(111 |
) | ||||
|
Taxes |
|
(901) |
|
25 |
|
|
(876 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
|
1,276 |
| |||
|
Discontinued operations, net |
|
(5) |
|
5 |
|
|
- |
| ||||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
$ |
1,276 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Second Quarter 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
635 |
|
|
|
|
$ |
635 |
| ||
|
Foreign |
|
641 |
|
|
|
|
641 |
| ||||
|
Exploration |
|
(56) |
|
|
|
|
(56 |
) | ||||
|
|
|
1,220 |
|
|
|
|
1,220 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
172 |
|
$ |
(85) |
(a) |
|
87 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
46 |
|
|
|
|
46 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(29) |
|
|
|
|
(29 |
) | ||||
|
Other |
|
(166) |
|
34 |
(b) |
|
(132 |
) | ||||
|
Unallocated taxes |
|
84 |
|
|
|
|
84 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
1,276 |
| ||||
|
Discontinued operations, net |
|
(5) |
|
5 |
|
|
- |
| ||||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
$ |
1,276 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted Earnings Per Common Share |
|
$ |
1.64 |
|
|
|
|
$ |
1.58 |
| ||
|
| ||||||||||||
|
(a) Carbocloro sale gain. | ||||||||||||
|
(b) Employment charges related to post-employment benefits for the Company’s former Chairman and termination of certain other employees and consulting arrangements. | ||||||||||||
|
Attachment 5 | |
|
| |
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
|
Six Months 2014 |
|
|
|
|
|
|
|
| ||||||||
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||||||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||||||
|
Domestic |
|
$ |
2,190 |
|
$ |
(535) |
(a) |
|
$ |
2,126 |
| |||||
|
|
|
|
|
471 |
(b) |
|
|
| ||||||||
|
Foreign |
|
2,188 |
|
|
|
|
2,188 |
| ||||||||
|
Exploration |
|
(92) |
|
|
|
|
(92 |
) | ||||||||
|
|
|
4,286 |
|
|
|
|
4,222 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Chemical |
|
269 |
|
|
|
|
|
269 |
| |||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Midstream, Marketing and Other |
|
389 |
|
|
|
|
389 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Corporate |
|
|
|
|
|
|
|
| ||||||||
|
Interest expense |
|
(34) |
|
|
|
|
(34 |
) | ||||||||
|
Other |
|
(202) |
|
17 |
(c) |
|
(185 |
) | ||||||||
|
Taxes |
|
(1,889) |
|
19 |
|
|
(1,870 |
) | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
|
2,791 |
| |||||||
|
Discontinued operations, net |
|
2 |
|
(2) |
|
|
- |
| ||||||||
|
Net Income |
|
$ |
2,821 |
|
$ |
(30) |
|
|
$ |
2,791 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Six Months 2014 |
|
|
|
|
|
|
|
| ||||||||
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||||||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||||||
|
Domestic |
|
$ |
1,394 |
|
$ |
(341) |
(a) |
|
$ |
1,353 |
| |||||
|
|
|
|
|
|
300 |
(b) |
|
|
|
| ||||||
|
Foreign |
|
1,128 |
|
|
|
|
1,128 |
| ||||||||
|
Exploration |
|
(68) |
|
|
|
|
(68 |
) | ||||||||
|
|
|
2,454 |
|
|
|
|
2,413 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Chemical |
|
170 |
|
|
|
|
|
170 |
| |||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Midstream, Marketing and Other |
|
278 |
|
|
|
|
278 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Corporate |
|
|
|
|
|
|
|
| ||||||||
|
Interest expense |
|
(34) |
|
|
|
|
(34 |
) | ||||||||
|
Other |
|
(202) |
|
13 |
(c) |
|
(189 |
) | ||||||||
|
Unallocated taxes |
|
153 |
|
|
|
|
153 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
2,791 |
| ||||||||
|
Discontinued operations, net |
|
2 |
|
(2) |
|
|
- |
| ||||||||
|
Net Income |
|
$ |
2,821 |
|
$ |
(30) |
|
|
$ |
2,791 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Diluted Earnings Per Common Share |
|
$ |
3.58 |
|
|
|
|
$ |
3.54 |
| ||||||
|
(a) Hugoton sale gain. |
|
|
|
|
|
|
|
|
|
(b) Asset impairments. |
|
|
|
|
|
|
|
|
|
(c) Spin-off and other costs. |
|
|
|
|
|
|
|
|
|
Attachment 6
|
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
Six Months 2013 |
|
|
|
|
|
|
|
| |||
|
($ millions) PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| |||
|
Domestic |
|
$ |
1,886 |
|
|
|
|
$ |
1,886 |
| |
|
Foreign |
|
2,246 |
|
|
|
|
2,246 |
| |||
|
Exploration |
|
(112) |
|
|
|
|
(112 |
) | |||
|
|
|
4,020 |
|
|
|
|
4,020 |
| |||
|
|
|
|
|
|
|
|
|
| |||
|
Chemical |
|
434 |
|
$ |
(131) |
(a) |
|
303 |
| ||
|
|
|
|
|
|
|
|
|
| |||
|
Midstream, Marketing and Other |
|
263 |
|
|
|
|
263 |
| |||
|
|
|
|
|
|
|
|
|
| |||
|
Corporate |
|
|
|
|
|
|
|
| |||
|
Interest expense |
|
(59) |
|
|
|
|
(59 |
) | |||
|
Other |
|
(227) |
|
55 |
(b) |
|
(172 |
) | |||
|
Taxes |
|
(1,745) |
|
25 |
|
|
(1,720 |
) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
$ |
2,635 |
| ||
|
Discontinued operations, net |
|
(9) |
|
9 |
|
|
- |
| |||
|
Net Income |
|
$ |
2,677 |
|
$ |
(42) |
|
|
$ |
2,635 |
|
|
|
|
|
|
|
|
|
|
| |||
|
Six Months 2013 |
|
|
|
|
|
|
|
| |||
|
($ millions) AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| |||
|
Domestic |
|
$ |
1,201 |
|
|
|
|
$ |
1,201 |
| |
|
Foreign |
|
1,177 |
|
|
|
|
1,177 |
| |||
|
Exploration |
|
(29) |
|
|
|
|
(29 |
) | |||
|
|
|
2,349 |
|
|
|
|
2,349 |
| |||
|
|
|
|
|
|
|
|
|
| |||
|
Chemical |
|
271 |
|
$ |
(85) |
(a) |
|
186 |
| ||
|
|
|
|
|
|
|
|
|
| |||
|
Midstream, Marketing and Other |
|
192 |
|
|
|
|
192 |
| |||
|
|
|
|
|
|
|
|
|
| |||
|
Corporate |
|
|
|
|
|
|
|
| |||
|
Interest expense |
|
(59) |
|
|
|
|
(59 |
) | |||
|
Other |
|
(227) |
|
34 |
(b) |
|
(193 |
) | |||
|
Unallocated taxes |
|
160 |
|
|
|
|
160 |
| |||
|
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
2,635 |
| |||
|
Discontinued operations, net |
|
(9) |
|
9 |
|
|
- |
| |||
|
Net Income |
|
$ |
2,677 |
|
$ |
(42) |
|
|
$ |
2,635 |
|
|
|
|
|
|
|
|
|
|
| |||
|
Diluted Earnings Per Common Share |
|
$ |
3.32 |
|
|
|
|
$ |
3.27 |
| |
(a) Carbocloro sale gain.
(b) Employment charges related to post-employment benefits for the Company’s former Chairman and termination of certain other employees and consulting arrangements.
|
Attachment 7
|
|
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE |
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
($ millions) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
CAPITAL EXPENDITURES (a) |
|
$ |
2,658 |
|
$ |
2,210 |
|
$ |
4,927 |
|
$ |
4,280 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
DEPRECIATION, DEPLETION AND |
|
|
|
|
|
|
|
|
| ||||
|
AMORTIZATION OF ASSETS |
|
$ |
1,317 |
|
$ |
1,303 |
|
$ |
2,583 |
|
$ |
2,562 |
|
(a) Includes 100 percent of the capital for BridgeTex Pipeline, which is being consolidated in Oxy’s financial statements. Our partner contributes its share of the capital. The Company’s net capital expenditures after these reimbursements and inclusion of our contributions for the Chemical joint venture cracker were $2.5 billion and $2.2 billion for the second quarter of 2014 and 2013, respectively, and $4.7 billion and $4.2 billion for the six months ended June 30, 2014 and 2013, respectively.
Attachment 8
|
|
|
SUMMARY OF OPERATING STATISTICS - PRODUCTION |
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
NET OIL, LIQUIDS AND GAS PRODUCTION PER DAY |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
97 |
|
88 |
|
96 |
|
88 |
|
|
Permian Resources |
|
40 |
|
33 |
|
38 |
|
34 |
|
|
Permian EOR |
|
110 |
|
112 |
|
110 |
|
112 |
|
|
Midcontinent and Other |
|
29 |
|
22 |
|
27 |
|
22 |
|
|
Total excluding Hugoton |
|
276 |
|
255 |
|
271 |
|
256 |
|
|
Hugoton |
|
2 |
|
6 |
|
4 |
|
6 |
|
|
Total |
|
278 |
|
261 |
|
275 |
|
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
18 |
|
21 |
|
18 |
|
20 |
|
|
Permian Resources |
|
12 |
|
11 |
|
11 |
|
10 |
|
|
Permian EOR |
|
29 |
|
28 |
|
29 |
|
29 |
|
|
Midcontinent and Other |
|
12 |
|
14 |
|
14 |
|
15 |
|
|
Total excluding Hugoton |
|
71 |
|
74 |
|
72 |
|
74 |
|
|
Hugoton |
|
1 |
|
3 |
|
2 |
|
3 |
|
|
Total |
|
72 |
|
77 |
|
74 |
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
California |
|
243 |
|
260 |
|
243 |
|
262 |
|
|
Permian Resources |
|
120 |
|
121 |
|
117 |
|
126 |
|
|
Permian EOR |
|
34 |
|
39 |
|
37 |
|
42 |
|
|
Midcontinent and Other |
|
305 |
|
312 |
|
305 |
|
318 |
|
|
Total excluding Hugoton |
|
702 |
|
732 |
|
702 |
|
748 |
|
|
Hugoton |
|
16 |
|
60 |
|
35 |
|
60 |
|
|
Total |
|
718 |
|
792 |
|
737 |
|
808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) - Colombia |
|
19 |
|
28 |
|
24 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) - Bolivia |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
|
|
Oman |
|
70 |
|
67 |
|
68 |
|
66 |
|
|
Qatar |
|
69 |
|
75 |
|
68 |
|
67 |
|
|
Other |
|
28 |
|
44 |
|
27 |
|
45 |
|
|
Total |
|
174 |
|
193 |
|
169 |
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
144 |
|
145 |
|
138 |
|
139 |
|
|
Oman |
|
40 |
|
56 |
|
40 |
|
56 |
|
|
Other |
|
236 |
|
232 |
|
234 |
|
238 |
|
|
Total |
|
420 |
|
433 |
|
412 |
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent excluding |
|
|
|
|
|
|
|
|
|
|
Hugoton (MBOE) |
|
736 |
|
753 |
|
731 |
|
749 |
|
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
742 |
|
772 |
|
743 |
|
768 |
|
|
Attachment 9
|
|
SUMMARY OF OPERATING STATISTICS - SALES |
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
NET OIL, LIQUIDS AND GAS SALES PER DAY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
278 |
|
261 |
|
275 |
|
262 |
|
|
NGLs (MBBL) |
|
72 |
|
77 |
|
74 |
|
77 |
|
|
Natural Gas (MMCF) |
|
720 |
|
795 |
|
738 |
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) - Colombia |
|
24 |
|
26 |
|
28 |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) - Bolivia |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
|
|
Oman |
|
71 |
|
63 |
|
68 |
|
68 |
|
|
Qatar |
|
66 |
|
80 |
|
69 |
|
66 |
|
|
Other |
|
24 |
|
36 |
|
17 |
|
32 |
|
|
Total |
|
168 |
|
186 |
|
160 |
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
420 |
|
433 |
|
412 |
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent excluding |
|
|
|
|
|
|
|
|
|
|
Hugoton (MBOE) |
|
735 |
|
745 |
|
726 |
|
736 |
|
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
741 |
|
764 |
|
738 |
|
755 |
|
Section 9 - Financial Statements and Exhibits
Item 9.01. Financial Statements and Exhibits
|
(d) |
|
Exhibits |
|
|
|
|
|
99.1 |
|
Press release dated July 31, 2014. |
|
|
|
|
|
99.2 |
|
Full text of presentations of Chris Stavros, Stephen Chazen, Vicki Hollub and Willie Chiang. |
|
|
|
|
|
99.3 |
|
Investor Relations Supplemental Schedules. |
|
|
|
|
|
99.4 |
|
Earnings Conference Call Slides. |
|
|
|
|
|
99.5 |
|
Forward-Looking Statements Disclosure for Earnings Release Presentation Materials. |
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: July 31, 2014 |
/s/ Jennifer Kirk |
|
|
|
Jennifer Kirk, Vice President, Controller |
|
|
|
and Principal Accounting Officer |
|
EXHIBIT INDEX
|
Exhibit Number |
|
Description |
|
|
|
|
|
99.1 |
|
Press release dated July 31, 2014. |
|
|
|
|
|
99.2 |
|
Full text of presentations of Chris Stavros, Stephen Chazen, Vicki Hollub and Willie |
|
|
|
Chiang. |
|
|
|
|
|
99.3 |
|
Investor Relations Supplemental Schedules. |
|
|
|
|
|
99.4 |
|
Earnings Conference Call Slides. |
|
|
|
|
|
99.5 |
|
Forward-Looking Statements Disclosure for Earnings Release Presentation Materials. |
Exhibit 99.1
For Immediate Release: July 31, 2014
Occidental Petroleum Announces 2nd Quarter and Six Months 2014 Financial Results
· Q2 2014 net income of $1.4 billion, or $1.82 per diluted share
· Q2 2014 core income of $1.4 billion, or $1.79 per diluted share
· Q2 2014 record domestic oil production of 278,000 barrels per day
HOUSTON – July 31, 2014 -- Occidental Petroleum Corporation (NYSE: OXY) announced net income for the second quarter of 2014 of $1.4 billion ($1.82 per diluted share), compared with $1.3 billion ($1.64 per diluted share) for the second quarter of 2013. Core income was $1.4 billion ($1.79 per diluted share) for the second quarter of 2014, compared with $1.3 billion ($1.58 per diluted share) for the second quarter of 2013.
In announcing the results, Stephen I. Chazen, President and Chief Executive Officer, said, “For the fourth consecutive quarter, we have delivered strong domestic oil production growth, with increases coming from both our Permian and California assets. Domestic oil production was 278,000 barrels per day for the second quarter of 2014. Excluding the effect from the Hugoton sale, domestic oil production increased 21,000 barrels per day from the second quarter of 2013 with our Permian Resources business growing its oil production by over 21 percent. For the first half of 2014, our cash flow from operations was $5.6 billion. Capital expenditures, net of contributions from partners, were $4.7 billion and we purchased approximately 16.6 million shares of our stock.”
QUARTERLY RESULTS
Oil and Gas
Domestic core earnings were $1.1 billion pre-tax or $679 million after-tax for the second quarter of 2014, compared to $1.0 billion pre-tax or $635 million after-tax for the second quarter of 2013. The current quarter domestic results reflected higher realized prices across all products and higher oil volumes, partially offset by higher operating costs and higher DD&A. The increase in operating costs was due to increased maintenance activities and higher costs for CO2, steam and power, which are influenced by crude oil and natural gas prices. International core earnings were $1.1 billion pre-tax or $576 million after-tax for the second quarter of 2014, compared to $1.2 billion pre-tax or $641 million after-tax for the second quarter of 2013. The current quarter international results reflected lower oil volumes, partially offset by higher oil prices and lower operating costs.
For the second quarter of 2014, total company average daily oil and gas production volumes, excluding the Hugoton production, averaged 736,000 barrels of oil equivalent (BOE), compared with 753,000 BOE in the second quarter of 2013. The sale of Hugoton assets closed on April 30, 2014. Hugoton production averaged 6,000 BOE per day and 19,000 BOE per day for the second quarter of 2014 and 2013, respectively. Domestic average daily production increased by 13,000 BOE to 464,000 BOE in the second quarter of 2014 compared to 451,000 BOE in the second quarter of 2013. Domestic average oil production increased by 21,000 barrels per day, primarily from California and Permian Resources. International average daily production decreased to 272,000 BOE in the second quarter of 2014 from 302,000 BOE in second quarter of 2013. The decrease primarily resulted from insurgent activities in Colombia, continued field and port strikes in Libya and lower cost recovery barrels in Iraq. Total company average daily sales volumes decreased to 735,000 BOE in the second quarter of 2014 from 745,000 BOE in the second quarter of 2013, mainly due to the timing of liftings.
Worldwide realized crude oil prices increased by 3 percent to $100.38 per barrel for the second quarter of 2014 compared with $97.91 per barrel for the second quarter of 2013 and improved slightly compared to the first quarter of 2014. Worldwide NGL prices increased by 10 percent to $42.82 per barrel in the second quarter of 2014, compared with $38.78 per barrel in the second quarter of 2013, but decreased by 7 percent compared with $46.05 in the first quarter of 2014. Domestic natural gas prices increased 12 percent in the second quarter of 2014 to $4.28 per MCF, compared with $3.82 in the second quarter of 2013, and fell by 6 percent compared with the first quarter of 2014.
Chemical
Chemical core earnings for the second quarter of 2014 were $133 million, compared to $144 million in the second quarter of 2013, excluding the $131 million gain on the sale of our investment in Carbocloro. The decrease in second quarter of 2014 earnings reflected lower caustic soda prices driven by new chlor-alkali capacity in the industry and higher natural gas costs, partially offset by higher vinyl margins resulting from improvement in the U.S. construction markets.
Midstream, Marketing and Other
Midstream core earnings were $219 million for the second quarter of 2014, compared with $48 million for the second quarter of 2013. The increase in earnings reflected improved marketing and trading performance.
Non-Core Items
The second quarter of 2014 included a net non-core income benefit of $27 million, which included a $341 million after-tax gain from the sale of Hugoton oil and gas assets, a $300 million after-tax charge for the impairment of certain non-producing domestic oil and gas acreage and on-going costs related to the California spin-off. The non-core items in the second quarter of 2013 provided a net income benefit of $46 million.
SIX-MONTH RESULTS
Net income for the first six months of 2014 was $2.8 billion ($3.58 per diluted share), compared with $2.7 billion ($3.32 per diluted share) for the same period in 2013. Core income for the first six months of 2014 was $2.8 billion ($3.54 per diluted share), compared with $2.6 billion ($3.27 per diluted share) for the same period in 2013.
Oil and Gas
Domestic core earnings were $2.1 billion pre-tax or $1.4 billion after-tax for the first six months of 2014, compared to $1.9 billion pre-tax or $1.2 billion after-tax for the first six months of 2013. The increase in domestic core earnings reflected higher realized prices across all products and higher oil volumes, partially offset by higher costs for CO2, steam and power and higher DD&A. International core earnings were $2.2 billion pre-tax or $1.1 billion after-tax for the first six months of 2014, compared to $2.2 billion pre-tax or $1.2 billion after-tax for the first six months of 2013. International core earnings reflected lower Middle East/North Africa volumes, partially offset by lower operating costs.
Oil and gas production volumes, excluding Hugoton production, for the first six months of 2014 averaged 731,000 BOE per day, compared with 749,000 BOE per day for the first six months of 2013. Domestic daily production averaged 460,000 BOE and 455,000 BOE for the first six months of 2014 and 2013, respectively. Average domestic oil production increased by 15,000 barrels per day in the first six months of 2014, compared to the first six months of 2013. Average international daily production volumes decreased to 271,000 BOE for the first six months of 2014 from 294,000 BOE for the first six months of 2013. The decrease was primarily due to insurgent activities in Colombia, continued field and port strikes in Libya and lower cost recovery barrels in Iraq. Total company daily sales volumes averaged 726,000 BOE in the first six months of 2014, compared with 736,000 BOE for 2013. Sales volumes were lower than production volumes due to the timing of liftings in Middle East/North Africa.
Worldwide realized crude oil prices rose by 2 percent to $99.70 per barrel for the first six months of 2014, compared with $97.99 per barrel for the first six months of 2013. Worldwide NGL prices increased by 12 percent to $44.43 per barrel for the first six months of 2014, compared with $39.52 per barrel for the first six months of 2013. Domestic gas prices increased by 29 percent to $4.43 per MCF for the first six months of 2014, compared to $3.44 per MCF for the first six months of 2013.
Chemical
Chemical core earnings were $269 million for the first six months of 2014, compared with $303 million for the same period of 2013, excluding the $131 million gain on the sale of our investment in Carbocloro. The lower earnings reflected lower caustic soda prices, driven by new chlor-alkali capacity in the industry and higher natural gas costs, partially offset by higher vinyl margins and volume improvements across most products.
Midstream, Marketing and Other
Midstream core earnings were $389 million for the first six months of 2014, compared with $263 million for the same period of 2013. The increase in earnings reflected improved marketing and trading performance.
About Occidental Petroleum
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. Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. Occidental’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 upholding high standards of social responsibility in all of the company’s worldwide operations.
Forward-Looking Statements
Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations, including any delay of, or other negative developments affecting, the spin-off of California Resources Corporation; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected
production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of 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 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. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.
-0-
Contacts:
Melissa E. Schoeb (media)
melissa_schoeb@oxy.com
713-366-5615
or
Christopher M. Degner (investors)
christopher_degner@oxy.com
212-603-8185
For further analysis of Occidental’s quarterly performance, please visit the website: www.oxy.com
Attachment 1
SUMMARY OF SEGMENT NET SALES AND AFTER-TAX EARNINGS
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
($ millions, except per-share amounts) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
SEGMENT NET SALES |
|
|
|
|
|
|
|
|
| ||||
|
Oil and Gas |
|
$ |
4,807 |
|
$ |
4,721 |
|
$ |
9,483 |
|
$ |
9,161 |
|
|
Chemical |
|
1,242 |
|
1,187 |
|
2,462 |
|
2,362 |
| ||||
|
Midstream, Marketing and Other |
|
530 |
|
269 |
|
965 |
|
722 |
| ||||
|
Eliminations |
|
(304) |
|
(215) |
|
(547) |
|
(411) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Net Sales |
|
$ |
6,275 |
|
$ |
5,962 |
|
$ |
12,363 |
|
$ |
11,834 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
SEGMENT EARNINGS - AFTER-TAX |
|
|
|
|
|
|
|
|
| ||||
|
Oil and Gas |
|
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
720 |
|
$ |
635 |
|
$ |
1,394 |
|
$ |
1,201 |
|
|
Foreign |
|
576 |
|
641 |
|
1,128 |
|
1,177 |
| ||||
|
Exploration |
|
(36) |
|
(56) |
|
(68) |
|
(29) |
| ||||
|
|
|
1,260 |
|
1,220 |
|
2,454 |
|
2,349 |
| ||||
|
Chemical |
|
84 |
|
172 |
|
170 |
|
271 |
| ||||
|
Midstream, Marketing and Other (a) |
|
160 |
|
46 |
|
278 |
|
192 |
| ||||
|
|
|
1,504 |
|
1,438 |
|
2,902 |
|
2,812 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Unallocated Corporate Items |
|
|
|
|
|
|
|
|
| ||||
|
Interest expense, net |
|
(15) |
|
(29) |
|
(34) |
|
(59) |
| ||||
|
Income taxes |
|
73 |
|
84 |
|
153 |
|
160 |
| ||||
|
Other |
|
(130) |
|
(166) |
|
(202) |
|
(227) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from Continuing Operations (a) |
|
1,432 |
|
1,327 |
|
2,819 |
|
2,686 |
| ||||
|
Discontinued operations, net |
|
(1) |
|
(5) |
|
2 |
|
(9) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
NET INCOME (a) |
|
$ |
1,431 |
|
$ |
1,322 |
|
$ |
2,821 |
|
$ |
2,677 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
BASIC EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
$ |
1.83 |
|
$ |
1.65 |
|
$ |
3.58 |
|
$ |
3.33 |
|
|
Discontinued operations, net |
|
- |
|
(0.01) |
|
- |
|
(0.01) |
| ||||
|
|
|
$ |
1.83 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.32 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
DILUTED EARNINGS PER COMMON SHARE |
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
$ |
1.82 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.33 |
|
|
Discontinued operations, net |
|
- |
|
- |
|
- |
|
(0.01) |
| ||||
|
|
|
$ |
1.82 |
|
$ |
1.64 |
|
$ |
3.58 |
|
$ |
3.32 |
|
|
AVERAGE COMMON SHARES OUTSTANDING |
|
|
|
|
|
|
|
|
| ||||
|
BASIC |
|
782.6 |
|
804.9 |
|
786.9 |
|
804.8 |
| ||||
|
DILUTED |
|
782.9 |
|
805.4 |
|
787.3 |
|
805.3 |
| ||||
(a) Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting
non-controlling interest of $3 million and $5 million for the second quarter and first six months of 2014, respectively.
Midstream segment earnings are presented net of these non-controlling interest amounts.
Attachment 2
SUMMARY OF SEGMENT PRE-TAX EARNINGS
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
($ millions) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
SEGMENT EARNINGS - PRE-TAX |
|
|
|
|
|
|
|
|
| ||||
|
Oil and Gas |
|
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
1,132 |
|
$ |
997 |
|
$ |
2,190 |
|
$ |
1,886 |
|
|
Foreign |
|
1,096 |
|
1,173 |
|
2,188 |
|
2,246 |
| ||||
|
Exploration |
|
(46) |
|
(70) |
|
(92) |
|
(112) |
| ||||
|
|
|
2,182 |
|
2,100 |
|
4,286 |
|
4,020 |
| ||||
|
Chemical |
|
133 |
|
275 |
|
269 |
|
434 |
| ||||
|
Midstream, Marketing and Other (a) |
|
219 |
|
48 |
|
389 |
|
263 |
| ||||
|
|
|
2,534 |
|
2,423 |
|
4,944 |
|
4,717 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Unallocated Corporate Items |
|
|
|
|
|
|
|
|
| ||||
|
Interest expense, net |
|
(15) |
|
(29) |
|
(34) |
|
(59) |
| ||||
|
Income taxes |
|
(957) |
|
(901) |
|
(1,889) |
|
(1,745) |
| ||||
|
Other |
|
(130) |
|
(166) |
|
(202) |
|
(227) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Income from Continuing Operations (a) |
|
1,432 |
|
1,327 |
|
2,819 |
|
2,686 |
| ||||
|
Discontinued operations, net |
|
(1) |
|
(5) |
|
2 |
|
(9) |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
NET INCOME (a) |
|
$ |
1,431 |
|
$ |
1,322 |
|
$ |
2,821 |
|
$ |
2,677 |
|
(a) Net income and income from continuing operations represent amounts attributable to Common Stock, after deducting
non-controlling interest of $3 million and $5 million for the second quarter and first six months of 2014, respectively.
Midstream segment earnings are presented net of these non-controlling interest amounts.
|
Attachment 3 |
|
|
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
Occidental’s results of operations often include the effects of significant transactions and events affecting earnings that vary widely and unpredictably in nature, timing and amount. Therefore, management uses a measure called “core results,” which excludes those items. This non-GAAP measure is not meant to disassociate those items from management’s performance, but rather is meant to provide useful information to investors interested in comparing Occidental’s earnings performance between periods. Reported earnings are considered representative of management’s performance over the long term. Core results is not considered to be an alternative to operating income reported in accordance with generally accepted accounting principles.
|
Second Quarter 2014 |
|
|
|
|
|
| |
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
Core |
|
Oil and Gas |
|
|
|
|
|
| |
|
Domestic |
|
$ 1,132 |
|
$ (535) |
(a) |
$ 1,068 | |
|
|
|
|
|
471 |
(b) |
| |
|
Foreign |
|
1,096 |
|
|
|
1,096 | |
|
Exploration |
|
(46) |
|
|
|
(46) | |
|
|
|
2,182 |
|
|
|
2,118 | |
|
|
|
|
|
|
|
| |
|
Chemical |
|
133 |
|
|
|
133 | |
|
|
|
|
|
|
|
| |
|
Midstream, Marketing and Other |
|
219 |
|
|
|
219 | |
|
|
|
|
|
|
|
| |
|
Corporate |
|
|
|
|
|
| |
|
Interest expense |
|
(15) |
|
|
|
(15) | |
|
Other |
|
(130) |
|
17 |
(c) |
(113) | |
|
Taxes |
|
(957) |
|
19 |
|
(938) | |
|
|
|
|
|
|
|
| |
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
1,404 | |
|
Discontinued operations, net |
|
(1) |
|
1 |
|
- | |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
$ 1,404 | |
|
Second Quarter 2014 |
|
|
|
|
|
| |
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
Core |
|
Oil and Gas |
|
|
|
|
|
| |
|
Domestic |
|
$ 720 |
|
$ (341) |
(a) |
$ 679 | |
|
|
|
|
|
300 |
(b) |
| |
|
Foreign |
|
576 |
|
|
|
576 | |
|
Exploration |
|
(36) |
|
|
|
(36) | |
|
|
|
1,260 |
|
|
|
1,219 | |
|
|
|
|
|
|
|
| |
|
Chemical |
|
84 |
|
|
|
84 | |
|
|
|
|
|
|
|
| |
|
Midstream, Marketing and Other |
|
160 |
|
|
|
160 | |
|
|
|
|
|
|
|
| |
|
Corporate |
|
|
|
|
|
| |
|
Interest expense |
|
(15) |
|
|
|
(15) | |
|
Other |
|
(130) |
|
13 |
(c) |
(117) | |
|
Unallocated taxes |
|
73 |
|
|
|
73 | |
|
|
|
|
|
|
|
| |
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
1,404 | |
|
Discontinued operations, net |
|
(1) |
|
1 |
|
- | |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
$ 1,404 | |
|
|
|
|
|
|
|
| |
|
Diluted Earnings Per Common Share |
|
$ 1.82 |
|
|
|
$ 1.79 | |
|
|
|
|
|
|
|
| |
|
(a) Hugoton sale gain. |
|
|
|
|
|
| |
|
(b) Asset impairments. |
|
|
|
|
|
| |
|
(c) Spin-off and other costs. |
|
|
|
|
|
| |
|
Attachment 4 | |
|
| |
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
|
Second Quarter 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
997 |
|
|
|
|
$ |
997 |
| ||
|
Foreign |
|
1,173 |
|
|
|
|
1,173 |
| ||||
|
Exploration |
|
(70) |
|
|
|
|
(70 |
) | ||||
|
|
|
2,100 |
|
|
|
|
2,100 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
275 |
|
$ |
(131) |
(a) |
|
144 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
48 |
|
|
|
|
48 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(29) |
|
|
|
|
(29 |
) | ||||
|
Other |
|
(166) |
|
55 |
(b) |
|
(111 |
) | ||||
|
Taxes |
|
(901) |
|
25 |
|
|
(876 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
|
1,276 |
| |||
|
Discontinued operations, net |
|
(5) |
|
5 |
|
|
- |
| ||||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
$ |
1,276 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Second Quarter 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
635 |
|
|
|
|
$ |
635 |
| ||
|
Foreign |
|
641 |
|
|
|
|
641 |
| ||||
|
Exploration |
|
(56) |
|
|
|
|
(56 |
) | ||||
|
|
|
1,220 |
|
|
|
|
1,220 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
172 |
|
$ |
(85) |
(a) |
|
87 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
46 |
|
|
|
|
46 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(29) |
|
|
|
|
(29 |
) | ||||
|
Other |
|
(166) |
|
34 |
(b) |
|
(132 |
) | ||||
|
Unallocated taxes |
|
84 |
|
|
|
|
84 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
1,276 |
| ||||
|
Discontinued operations, net |
|
(5) |
|
5 |
|
|
- |
| ||||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
$ |
1,276 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted Earnings Per Common Share |
|
$ |
1.64 |
|
|
|
|
$ |
1.58 |
| ||
|
| ||||||||||||
|
(a) Carbocloro sale gain. | ||||||||||||
|
(b) Employment charges related to post-employment benefits for the Company’s former Chairman and termination of certain other employees and consulting arrangements. | ||||||||||||
|
Attachment 5 | |
|
| |
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
|
Six Months 2014 |
|
|
|
|
|
|
|
| ||||||||
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||||||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||||||
|
Domestic |
|
$ |
2,190 |
|
$ |
(535) |
(a) |
|
$ |
2,126 |
| |||||
|
|
|
|
|
471 |
(b) |
|
|
| ||||||||
|
Foreign |
|
2,188 |
|
|
|
|
2,188 |
| ||||||||
|
Exploration |
|
(92) |
|
|
|
|
(92 |
) | ||||||||
|
|
|
4,286 |
|
|
|
|
4,222 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Chemical |
|
269 |
|
|
|
|
|
269 |
| |||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Midstream, Marketing and Other |
|
389 |
|
|
|
|
389 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Corporate |
|
|
|
|
|
|
|
| ||||||||
|
Interest expense |
|
(34) |
|
|
|
|
(34 |
) | ||||||||
|
Other |
|
(202) |
|
17 |
(c) |
|
(185 |
) | ||||||||
|
Taxes |
|
(1,889) |
|
19 |
|
|
(1,870 |
) | ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
|
2,791 |
| |||||||
|
Discontinued operations, net |
|
2 |
|
(2) |
|
|
- |
| ||||||||
|
Net Income |
|
$ |
2,821 |
|
$ |
(30) |
|
|
$ |
2,791 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Six Months 2014 |
|
|
|
|
|
|
|
| ||||||||
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||||||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||||||
|
Domestic |
|
$ |
1,394 |
|
$ |
(341) |
(a) |
|
$ |
1,353 |
| |||||
|
|
|
|
|
|
300 |
(b) |
|
|
|
| ||||||
|
Foreign |
|
1,128 |
|
|
|
|
1,128 |
| ||||||||
|
Exploration |
|
(68) |
|
|
|
|
(68 |
) | ||||||||
|
|
|
2,454 |
|
|
|
|
2,413 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Chemical |
|
170 |
|
|
|
|
|
170 |
| |||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Midstream, Marketing and Other |
|
278 |
|
|
|
|
278 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Corporate |
|
|
|
|
|
|
|
| ||||||||
|
Interest expense |
|
(34) |
|
|
|
|
(34 |
) | ||||||||
|
Other |
|
(202) |
|
13 |
(c) |
|
(189 |
) | ||||||||
|
Unallocated taxes |
|
153 |
|
|
|
|
153 |
| ||||||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
2,791 |
| ||||||||
|
Discontinued operations, net |
|
2 |
|
(2) |
|
|
- |
| ||||||||
|
Net Income |
|
$ |
2,821 |
|
$ |
(30) |
|
|
$ |
2,791 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||||
|
Diluted Earnings Per Common Share |
|
$ |
3.58 |
|
|
|
|
$ |
3.54 |
| ||||||
|
(a) Hugoton sale gain. |
|
|
|
|
|
|
|
|
|
(b) Asset impairments. |
|
|
|
|
|
|
|
|
|
(c) Spin-off and other costs. |
|
|
|
|
|
|
|
|
|
Attachment 6
|
|
SIGNIFICANT TRANSACTIONS AND EVENTS AFFECTING EARNINGS |
|
Six Months 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
PRE-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
1,886 |
|
|
|
|
$ |
1,886 |
| ||
|
Foreign |
|
2,246 |
|
|
|
|
2,246 |
| ||||
|
Exploration |
|
(112) |
|
|
|
|
(112 |
) | ||||
|
|
|
4,020 |
|
|
|
|
4,020 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
434 |
|
$ |
(131) |
(a) |
|
303 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
263 |
|
|
|
|
263 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(59) |
|
|
|
|
(59 |
) | ||||
|
Other |
|
(227) |
|
55 |
(b) |
|
(172 |
) | ||||
|
Taxes |
|
(1,745) |
|
25 |
|
|
(1,720 |
) | ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
$ |
2,635 |
| |||
|
Discontinued operations, net |
|
(9) |
|
9 |
|
|
- |
| ||||
|
Net Income |
|
$ |
2,677 |
|
$ |
(42) |
|
|
$ |
2,635 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Six Months 2013 |
|
|
|
|
|
|
|
| ||||
|
($ millions) |
AFTER-TAX |
|
Reported |
|
Significant |
|
|
Core |
| |||
|
Oil and Gas |
|
|
|
|
|
|
|
| ||||
|
Domestic |
|
$ |
1,201 |
|
|
|
|
$ |
1,201 |
| ||
|
Foreign |
|
1,177 |
|
|
|
|
1,177 |
| ||||
|
Exploration |
|
(29) |
|
|
|
|
(29 |
) | ||||
|
|
|
2,349 |
|
|
|
|
2,349 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Chemical |
|
271 |
|
$ |
(85) |
(a) |
|
186 |
| |||
|
|
|
|
|
|
|
|
|
| ||||
|
Midstream, Marketing and Other |
|
192 |
|
|
|
|
192 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Corporate |
|
|
|
|
|
|
|
| ||||
|
Interest expense |
|
(59) |
|
|
|
|
(59 |
) | ||||
|
Other |
|
(227) |
|
34 |
(b) |
|
(193 |
) | ||||
|
Unallocated taxes |
|
160 |
|
|
|
|
160 |
| ||||
|
|
|
|
|
|
|
|
|
| ||||
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
2,635 |
| ||||
|
Discontinued operations, net |
|
(9) |
|
9 |
|
|
- |
| ||||
|
Net Income |
|
$ |
2,677 |
|
$ |
(42) |
|
|
$ |
2,635 |
| |
|
|
|
|
|
|
|
|
|
| ||||
|
Diluted Earnings Per Common Share |
|
$ |
3.32 |
|
|
|
|
$ |
3.27 |
| ||
(a) Carbocloro sale gain.
(b) Employment charges related to post-employment benefits for the Company’s former Chairman and termination of certain other employees and consulting arrangements.
|
Attachment 7
|
|
SUMMARY OF CAPITAL EXPENDITURES AND DD&A EXPENSE |
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
($ millions) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
CAPITAL EXPENDITURES (a) |
|
$ |
2,658 |
|
$ |
2,210 |
|
$ |
4,927 |
|
$ |
4,280 |
|
|
|
|
|
|
|
|
|
|
|
| ||||
|
DEPRECIATION, DEPLETION AND |
|
|
|
|
|
|
|
|
| ||||
|
AMORTIZATION OF ASSETS |
|
$ |
1,317 |
|
$ |
1,303 |
|
$ |
2,583 |
|
$ |
2,562 |
|
(a) Includes 100 percent of the capital for BridgeTex Pipeline, which is being consolidated in Oxy’s financial statements. Our partner contributes its share of the capital. The Company’s net capital expenditures after these reimbursements and inclusion of our contributions for the Chemical joint venture cracker were $2.5 billion and $2.2 billion for the second quarter of 2014 and 2013, respectively, and $4.7 billion and $4.2 billion for the six months ended June 30, 2014 and 2013, respectively.
Attachment 8
|
|
|
SUMMARY OF OPERATING STATISTICS - PRODUCTION |
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
NET OIL, LIQUIDS AND GAS PRODUCTION PER DAY |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
97 |
|
88 |
|
96 |
|
88 |
|
|
Permian Resources |
|
40 |
|
33 |
|
38 |
|
34 |
|
|
Permian EOR |
|
110 |
|
112 |
|
110 |
|
112 |
|
|
Midcontinent and Other |
|
29 |
|
22 |
|
27 |
|
22 |
|
|
Total excluding Hugoton |
|
276 |
|
255 |
|
271 |
|
256 |
|
|
Hugoton |
|
2 |
|
6 |
|
4 |
|
6 |
|
|
Total |
|
278 |
|
261 |
|
275 |
|
262 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
California |
|
18 |
|
21 |
|
18 |
|
20 |
|
|
Permian Resources |
|
12 |
|
11 |
|
11 |
|
10 |
|
|
Permian EOR |
|
29 |
|
28 |
|
29 |
|
29 |
|
|
Midcontinent and Other |
|
12 |
|
14 |
|
14 |
|
15 |
|
|
Total excluding Hugoton |
|
71 |
|
74 |
|
72 |
|
74 |
|
|
Hugoton |
|
1 |
|
3 |
|
2 |
|
3 |
|
|
Total |
|
72 |
|
77 |
|
74 |
|
77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
California |
|
243 |
|
260 |
|
243 |
|
262 |
|
|
Permian Resources |
|
120 |
|
121 |
|
117 |
|
126 |
|
|
Permian EOR |
|
34 |
|
39 |
|
37 |
|
42 |
|
|
Midcontinent and Other |
|
305 |
|
312 |
|
305 |
|
318 |
|
|
Total excluding Hugoton |
|
702 |
|
732 |
|
702 |
|
748 |
|
|
Hugoton |
|
16 |
|
60 |
|
35 |
|
60 |
|
|
Total |
|
718 |
|
792 |
|
737 |
|
808 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) - Colombia |
|
19 |
|
28 |
|
24 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) - Bolivia |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
|
|
Oman |
|
70 |
|
67 |
|
68 |
|
66 |
|
|
Qatar |
|
69 |
|
75 |
|
68 |
|
67 |
|
|
Other |
|
28 |
|
44 |
|
27 |
|
45 |
|
|
Total |
|
174 |
|
193 |
|
169 |
|
184 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
144 |
|
145 |
|
138 |
|
139 |
|
|
Oman |
|
40 |
|
56 |
|
40 |
|
56 |
|
|
Other |
|
236 |
|
232 |
|
234 |
|
238 |
|
|
Total |
|
420 |
|
433 |
|
412 |
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent excluding |
|
|
|
|
|
|
|
|
|
|
Hugoton (MBOE) |
|
736 |
|
753 |
|
731 |
|
749 |
|
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
742 |
|
772 |
|
743 |
|
768 |
|
|
Attachment 9
|
|
SUMMARY OF OPERATING STATISTICS - SALES |
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
NET OIL, LIQUIDS AND GAS SALES PER DAY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
278 |
|
261 |
|
275 |
|
262 |
|
|
NGLs (MBBL) |
|
72 |
|
77 |
|
74 |
|
77 |
|
|
Natural Gas (MMCF) |
|
720 |
|
795 |
|
738 |
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) - Colombia |
|
24 |
|
26 |
|
28 |
|
28 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) - Bolivia |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
|
|
Oman |
|
71 |
|
63 |
|
68 |
|
68 |
|
|
Qatar |
|
66 |
|
80 |
|
69 |
|
66 |
|
|
Other |
|
24 |
|
36 |
|
17 |
|
32 |
|
|
Total |
|
168 |
|
186 |
|
160 |
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
420 |
|
433 |
|
412 |
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent excluding |
|
|
|
|
|
|
|
|
|
|
Hugoton (MBOE) |
|
735 |
|
745 |
|
726 |
|
736 |
|
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
741 |
|
764 |
|
738 |
|
755 |
|
Exhibit 99.2
Occidental Petroleum Corporation
CHRIS STAVROS
Executive Vice President, Chief Financial Officer
– Conference Call –
Second Quarter 2014 Earnings Announcement
July 31, 2014
Houston, Texas
Thanks Chris, and good morning everyone. Beginning with this quarter, the disclosure and discussion related to our Oil and Gas segment results will be both on a before and after-tax basis, with the Oil and Gas results also segregated between our domestic and international producing operations and exploration program.
We generated core income of $1.4 billion resulting in diluted earnings per share of $1.79 for the second quarter 2014, an improvement over both the year-ago quarter and the first quarter of 2014.
For the fourth consecutive quarter, we continued our strong domestic oil production growth, with increases coming from both our Permian and California assets. Domestic oil production for the second quarter of 2014 was 278,000 barrels per day, a new quarterly record for Oxy. Excluding the effect of the Hugoton sale, domestic oil production increased 21,000 barrels per day from the year-ago quarter, with our Permian Resources business
growing its oil production by 21 percent. On a sequential quarter-over-quarter basis, the growth was 8,000 barrels per day or about 3 percent.
Oil & Gas
Oil and gas core after-tax earnings for the second quarter of 2014 were $1.2 billion, essentially flat with both the first quarter of 2014 and second quarter of 2013. In the second quarter of 2014, after-tax core income for our domestic operations was $679 million. On a sequential quarter-over-quarter basis, results at our domestic operations were roughly unchanged as improvement from higher oil volumes and realized prices were offset by lower prices for natural gas and NGLs and, higher operating expenses mainly a result of increased down hole maintenance and surface operation costs. International after-tax core income was $576 million for the second quarter of 2014 and results improved about 4 percent sequentially due to a lifting in Libya, which had none in the first quarter, and increased sales volumes in both Oman and Yemen. On a year-over-year basis, domestic operations improved by $44 million after-tax and international operations declined by $65 million as our Latin American results were meaningfully impacted by insurgent activity in Colombia. For the six months year-over-year comparison, domestic operations after-tax income was $1.4 billion an increase of almost 13 percent. In the same six-month period, international operations core income was $1.1 billion, a decrease of 4 percent.
For the second quarter 2014, total company production volume, excluding the Hugoton production, averaged 736,000 BOE per day, an increase of 9,000 BOE in daily production from the first quarter and down 17,000 BOE from the year ago quarter.
Excluding Hugoton, domestic daily production improved 8,000 BOE from the first quarter of 2014, with half of the increase coming from the
Permian and the remainder from the Williston basin and California. On a commodity-specific basis, our domestic oil production grew by 8,000 barrels per day, with 3,000 barrels per day each coming from the Permian and Midcontinent and the remainder from California. Domestic NGL and natural gas production volumes were virtually flat.
International production increased by 1,000 BOE per day on a sequential quarter-over-quarter basis. MENA production grew by 11,000 BOE per day sequentially, primarily due to the scheduled first quarter plant turnaround in Dolphin, higher production in Oman due to new wells coming online in the northern blocks and in Iraq, which reflected increased cost recovery barrels. These increases were offset by 10,000 barrels per day of lower production in Colombia due to pipeline disruptions from insurgent activity.
Our second quarter 2014 worldwide realized oil prices of $100.38 per barrel improved slightly compared to the first quarter realizations of $99.00 a barrel. Our domestic oil price realizations were about 2 percent higher on a sequential basis, despite continued widening differentials in the Permian basin. Realizations prices for our domestic NGL and natural gas production fell 6 percent and 7 percent sequentially, reflecting declines in benchmark prices.
Price changes at current global prices affect our quarterly earnings before income taxes by $37 million for a $1.00 per barrel change in oil prices and $7 million for a $1.00 per barrel change in NGL prices. A swing of 50 cents per million BTUs in domestic gas prices affects quarterly pre-tax earnings by about $25 million. These price change sensitivities include the impact of production sharing contract volume changes on income.
Oil and Gas cash operating costs were $14.68 per barrel in the second quarter of 2014 compared to $14.33 per barrel in the first quarter. Domestic operating expenses were higher in the second quarter of 2014 compared to the first quarter due to higher down hole maintenance and surface operation costs, mainly in the Permian. MENA production costs increased in the second quarter due to higher costs related to the Libya lifting, partially offset by lower surface operations and maintenance costs. Taxes other than on income, which are directly related to product prices, were $2.83 per barrel for the second quarter 2014 and $2.88 for the first six months of the year. Second quarter exploration expense was $54 million.
Chemical
Chemical second quarter 2014 pre-tax earnings of $133 million were slightly lower than the first quarter results of $136 million and $144 million in the year-ago quarter. The seasonal uptick in demand in construction and agricultural markets in the second quarter were more than offset by routine planned plant outages and unplanned customer outages. We expect our third quarter pre-tax earnings to be about $150 million reflecting anticipated increases in sales and production volumes.
Midstream
Midstream pre-tax segment earnings which were $219 million for the second quarter of 2014, compared to $170 million in the first quarter and $48 million in the second quarter of 2013. The 2014 sequential quarterly improvement in earnings resulted mainly from higher marketing and trading performance, driven by commodity price movements during the quarter and higher income from the Dolphin Pipeline which was negatively impacted by the plant turnarounds in the first quarter of 2014.
Six Months
In the first six months of 2014, we generated $5.7 billion of cash flow from operations before changes in working capital. Working capital changes decreased our cash flow from operations by $100 million to $5.6 billion. During the first six months of 2014 cash flow from operations declined by approximately $650 million compared to the same year-ago period. The first half of 2014 included a tax payment related to the gain on the sale of PAGP units and, the first six months of 2013 included the collection of a tax receivable. On a normalized basis, cash flow from operations during both periods would have been similar at roughly $5.8 billion. Capital expenditures for the first six months of 2014 were $4.7 billion, net of partner contributions. In the second quarter we received proceeds of $1.3 billion from the sale of our Hugoton assets and spent about $240 million toward domestic bolt-on acquisitions. After paying dividends of $1.1 billion, buying back $1.6 billion of Company stock, and other net flows, our cash balance was $2.4 billion at June 30. Our debt-to-capitalization ratio was 13 percent at quarter end. Our 2014 annualized return on equity was 13 percent and return on capital employed was around 11 percent.
The worldwide effective tax rate on our core income was 40 percent for the second quarter of 2014. We expect our combined worldwide tax rate in the third quarter of 2014 to remain about the same.
Lastly, I will outline our guidance for the third quarter.
Guidance
Domestic - On April 30, we closed the sale of our Hugoton assets. The Hugoton operations produced 18,000 BOE per day in the first quarter and 6,000 BOE per day in the second quarter. For the third quarter,
excluding Hugoton, we expect our domestic oil production to grow between 6,000 and 8,000 barrels per day sequentially or roughly 10 percent on annualized basis. We would expect this domestic oil production growth rate to accelerate over time. Domestic NGL production should see a modest increase, although this should be about equally offset by lower natural gas production volumes. We expect our total domestic production to grow between 5,000 to 7,000 BOE per day.
International - At current prices and assuming normalized operations in Colombia, we expect total international production and sales volumes to increase by about 10,000 BOE per day from second quarter levels. Excluding the Hugoton, total companywide production in the third quarter is expected to increase by 15,000 to 17,000 BOE per day sequentially, or at an annualized rate of about 8 percent. We expect third quarter 2014 exploration expense to be about $100 million pre-tax.
I will now turn the call over to Steve Chazen who will provide an update on some of our strategic initiatives.
Occidental Petroleum Corporation
STEPHEN CHAZEN
President and Chief Executive Officer
– Conference Call –
Second Quarter 2014 Earnings
July 31, 2014
Houston, Texas
Thank you, Chris.
We recently announced new executive management teams and responsibilities for both California Resources Corporation, or CRC, and Occidental Petroleum. Todd Stevens, the President and CEO of CRC, and Bill Albrecht, Executive Chairman, bring proven leadership abilities and have both played an important part in building and managing our California operations. Mark Smith, the former CFO of Ultra Petroleum, was hired on as the Chief Financial Officer at CRC and brings an extensive background in corporate finance and a deep understanding of operations at an independent oil and gas producer. With these appointments, most of the key roles of the organization have been staffed and we are confident in their ability to succeed as a stand-alone public company.
In addition to the developments regarding personnel, we continued to make progress on the planned spin-off of CRC. During the 2nd quarter, we filed the initial Form 10 registration statement and have already responded to the comments received from the SEC. CRC has initiated steps to secure its debt financing which we expect to be completed in the 3rd quarter. We
anticipate $6 billion of proceeds from total funded debt. The cash proceeds from CRC’s debt financing will be transferred to Occidental as a tax free dividend shortly prior to completion of the spin-off, which we expect to occur in the 4th quarter. Upon the spin-off of CRC, Occidental will retain ownership of approximately 19.9% of CRC for a period lasting up to 18 months. During that period of time, Oxy intends to conduct an exchange offer for the remaining CRC shares it retains, further reducing our shares outstanding.
The California business continues to perform well and is executing on its oil and gas production growth strategy. In the 2nd quarter of 2014, oil production grew 10% compared to the 2nd quarter of 2013, and the business generated approximately $1.2 billion of cash flow from operations during the first six months of 2014. We expect the CRC management team to present a more detailed review of the business and its growth strategy to investors as it commences its road show in the 4th quarter.
At Occidental Petroleum, each of the seven members of the new executive management team has made significant contributions to the company. Their individual strengths and combined leadership will shape the future of Occidental as we embark on a new chapter in the company’s history.
Following the execution of the CRC spin-off, Oxy’s philosophy of disciplined capital allocation and living within its cash flow will continue. Oxy’s core businesses will be focused on delivering moderate volume growth, generating higher earnings and cash flow per share and leading to improved financial returns. After completion of the strategic initiatives we laid out last fall, our area of focus will consist of a significant and leading position in the Permian Basin. Our Permian Resources unit will represent
the key area of oil growth within our domestic business, with annual oil production growth expected to well exceed 20 percent per year over the next several years as we accelerate our horizontal drilling program. We also expect our margins in the Permian to improve as we focus on additional drilling efficiencies, reducing our well costs and, further enhancing our oil price realizations. Vicki Hollub will provide a further update on the Permian Resources shortly.
Our Permian Basin operations will be rounded out with other domestic oil and gas operations in South Texas and, our 24.5 percent interest in the Dolphin Project, a smaller and improved business in the rest of MENA, our operations in Colombia, as well as our Midstream operations and the Chemicals business. Each of these businesses has identified opportunities to drive earnings and cash flow growth and also support our ability to grow our dividends for our shareholders. Operations without profitable growth will see minimal capital spending.
After several years of significant capital investment, two significant projects are nearing their completion. As Willie Chiang will describe in more detail shortly, we expect the BridgeTex pipeline to start up later this quarter and provide us with advantaged access to the Gulf Coast for our Permian crude oil production. We also expect the start up of the Al Hosn Gas Project in the 4th quarter. Assuming similar product prices, these two key project start-ups combined with growing oil volumes from the Permian Resources development program, should provide us with meaningful earnings and cash flow per share growth into 2015.
Finally, and as part of our strategic initiatives, we will continue to focus on raising cash from our lower growth and lower margin assets.
· In the Middle East, we continue to make progress in negotiations with our partners and expect to reduce our exposure to the region. Our goal here is to improve the businesses ability to grow profitably. Over time, we expect to achieve a similar balance in our asset mix, with at least 60% of our oil and gas production coming from the United States.
· We are continuing to explore strategic alternatives for our assets in the Piceance and Williston Basin.
· We expect to monetize our remaining interest in the General Partner of Plains All American Pipeline which is valued at approximately $4.5 billion, as well as possibly some other midstream assets when market conditions warrant.
Since the end of the 3rd quarter 2013 we have repurchased more than 26 million of the Company’s shares for roughly $2.5 billion, and approximately 20.5 million shares remain available under the current share repurchase authorization. We expect that we will be able to further reduce our share count by roughly 60 million shares through the cash dividend from the CRC separation and by around 25 million shares from the monetization of our remaining interest in the Plains Pipeline. Coupled with the 20.5 million shares in our current repurchase program, we should be able to reduce our current share count by more than 100 million shares, or about 13% of our currently outstanding shares. Most of this share repurchase activity will occur after the spin-off of CRC. These amounts do not include the ability to repurchase additional shares through proceeds received from the sale of a portion of our interests in the Middle East, share reductions from an exchange of our remaining interest in CRC, or the monetization of other assets.
We expect Oxy’s remaining businesses to deliver moderate volume growth as a result of our expanded Permian Resources development program and shift toward horizontal drilling, the start-up of the Al Hosn Gas Project and, our participation in several other attractive international growth projects. These identified and intermediate growth opportunities and projects are capable of more than replacing the production from the spin-off of CRC by the end of 2015. And, Oxy shareholders will still retain the value created from the spin-off as owners of CRC shares.
We expect to generate higher financial returns going forward as a result of our investments and strategic initiatives. Our improved capital efficiency and operating cost structure, the start-up of the operations for BridgeTex, the Al Hosn Gas Project, along with the separation of our California business, will provide a natural uplift to our Return on Capital Employed. Our ROCE was 12.2% in 2013 and we expect it to rise to around 15% as we exit 2015.
Now I’ll turn the call to Vicki Hollub for an update on our activities in Permian Resources.
Occidental Petroleum Corporation
VICKI HOLLUB
President, Occidental Oil and Gas – Americas
– Conference Call –
Second Quarter 2014 Earnings
July 31, 2014
Houston, Texas
Thank you, Steve.
This morning I’d like to continue the discussion of our Permian Resources business.
In the second quarter, Permian Resources produced an average of 72,000 barrels of oil equivalent per day (BOEPD) which is an increase of over 7 percent from last quarter. This is 28 percent on an annualized basis. We produced 40,000 barrels of oil per day for the second quarter. This is a 21 percent increase from a year ago and an 8 percent increase from last quarter. During the second quarter, our capital expenditures were $490 million. We averaged 24 operated rigs of which 17 were horizontal, and drilled 87 wells, including 42 horizontal wells. Year to date, we have drilled a total of 67 horizontal wells of which 43 have been completed and put on production. Thirty eight wells are currently waiting on completion or hook-up. In the third quarter, we plan to drill 54 horizontal wells and place an additional 54 wells on production.
I’ll first discuss how our Permian Resources teams are well-positioned to deliver long-term growth, and then I’ll review the quarterly operations in more detail. We have been operating in the Permian basin for more than thirty years and have considerable knowledge of the depositional history and geology. With that base knowledge, we have been and are continuing to make significant investment to assess the rock and fluid properties in our unconventional reservoirs across our acreage. This is helping us to develop a deeper understanding of the key geologic parameters that drive productivity such as porosity, saturation, brittleness, total organic content, mineral and geochemical composition, rock and fluid compatibility, fracture distribution and stress regimes. Our Permian Resources and Exploitation teams are applying this appraisal work to construct calibrated petrophysical models to characterize prospective benches and target landing zones within each bench. As a result of our work to date, we have now identified over 7,000 drilling locations across our 2 million net prospective acres. This is an increase of more than 2,500 versus the beginning of this year. We expect to continue to grow the number of locations through our successful exploitation efforts.
We are also conducting an extensive appraisal of high potential benches to optimize our well designs and development plans. This appraisal work includes collection and analysis of whole cores, cuttings, advanced log suites, microseismic surveys, and 3D seismic surveys. We are leveraging our learnings from our participation in more than 450 outside operated wells along with data from some of the 4,400 outside operated wells in which we have a working interest. Based on our findings, we are testing various field development and well design alternatives including optimization of well spacing, lateral length, and cluster spacing. Additionally, we have also
increased proppant concentrations and are evaluating various frac fluids. Our results are exceeding expectations indicating that we are quickly moving toward optimal design for the Wolfcamp A/B benches in the Midland Basin and the Delaware Basin. For example, at South Curtis Ranch in the Midland Basin, we completed and put on production 6 wells which had average initial rates of 850 BOEPD vs. prior initial rates of 750 BOEPD. Our recent South Curtis Ranch 2818H well achieved a peak rate of approximately 1,100 BOEPD on gas lift. At Barilla Draw in the Delaware Basin, our recent Eagle State 28 5H well achieved peak production of 1,620 BOEPD and a 30 day average production of 1,120 BOEPD, significantly higher than our average 30 day production of 830 BOEPD in the Wolfcamp A/B benches.
With respect to supplies, services and logistics, we have secured key resources to efficiently accelerate full field development and production growth. We have ordered long lead time equipment and secured favorable material and service contracts by leveraging our position across our Permian Resources and EOR businesses. These contracts ensure the availability of productive resources at a competitive cost in strategic areas such as drilling rigs, stimulation, tubing, casing, cementing, directional drilling and artificial lift. We have contracts, or options in place, to expand our fit-for-purpose drilling rig fleet to 54 rigs in 2016. We have expanded our completion capacity to four 24-hour frac crews and plan to further expand the fleet as we accelerate development.
On the efficiency front, we intensified our efforts to improve operational execution and compress cycle time. In early 2014, we implemented a batch drilling program to accelerate and improve the cycle time on our horizontals. In our batch drilling program we drill the vertical section of the well with a smaller fit-for-purpose drilling rig. Following the
vertical section, we use a higher capacity directional drilling rig with specialized services to complete the more complex curve and lateral sections of the well. This approach has allowed Permian Resources to transition our existing lower cost vertical rigs into our horizontal development programs to improve our overall cost structure. This method enhances the utilization of specialized services to achieve reliability and improved cost. We have reduced drilling costs in South Curtis Ranch by 24% since the end of last year.
Now, for a quick update of our water management strategy. The Barilla Draw system has been pressured up and is operational. To date we have completed six fracs including one “zipper” frac using this new system. We are achieving a cost savings of $2.50 per barrel of water. In the Midland Basin, we are duplicating this effort by installing a water distribution system at West Merchant with delivery rates up to 90,000 barrels per day. The system will be fully operational by September and we expect similar cost savings from this investment. These two systems are the first phases of our comprehensive water management strategy which we will discuss in more detail in future calls.
I would like to share a few more details of our activity in each of our geographic areas.
In the Texas Delaware, specifically in the Barilla Draw area in Reeves County, I am pleased to report that in the 2nd Quarter, we drilled 10 horizontal wells and completed 7 wells whose initial production rates for Wolfcamp A and B match the 1,150 boepd achieved in the first quarter. In the area highlighted on the map, where we hold over 35,000 net surface acres, we will drill an additional 27 horizontal wells in the 2nd half of 2014. We continue to increase efficiency and expect our average well cost of
$8.5MM to improve an additional 5% by the end of the year. We are encouraged by our success in this appraisal program. As a result, we are transitioning into an accelerated development phase in Barilla Draw.
In the Midland Basin where we hold approximately 90,000 net surface acres, we are continuing our appraisal and development drilling efforts. We drilled 14 horizontal wells in the second quarter and placed 21 horizontal wells on production. We will drill an additional 55 horizontal wells in the 2nd half of 2014. Our average drill time for the horizontals is 27 days per well, with total drilling and completion costs averaging $7.0 million per well. With the knowledge gained, we are transitioning from appraisal to accelerated development in our Merchant field.
As a result of the strong performance this year, we are increasing our 2014 production growth expectation to between 15% to 18% from the previous 13% to 15%. In addition, we are increasing Permian Resources capital by $200 million to $1.9 billion. The total number of wells drilled will remain roughly the same with a greater percentage of horizontal wells. The resulting production increase from the incremental capital will primarily impact 2015.
In closing, our 2014 program is designed to delineate and appraise our acreage in order to maximize both ultimate recovery and financial returns. We are on track to exceed expectations in 2014. We have the required resources and infrastructure in place to meet our 2016 production target of more than 120,000 BOPED. In addition, Oxy has several exciting midstream projects related to our Permian infrastructure and take-away capacity that is a unique competitive advantage. I will now turn the call over to Willie to discuss in more detail.
Occidental Petroleum Corporation
Willie Chiang
Executive Vice President – Operations
– Conference Call –
Second Quarter 2014 Earnings
July 31, 2014
Houston, Texas
Thank you, Vicki.
Good morning, everyone. I’d like to give you a very quick overview of our Midstream and Marketing Segment and describe how it literally “connects” our oil and gas production to market, and then spend the majority of my time to share our strategies to support the Permian Basin growth that you just heard about from Vicki. We strongly believe that having multiple perspectives in house -- those of a large Permian producer, a significant midstream/infrastructure operator, and a crude, NGL and gas marketer -- gives us a very unique competitive advantage that differentiates us from others. The midstream operations not only enable us to unlock and preserve value for our core business, it also allows us to utilize our assets to move third party volumes to market. Further, we have the scale to drive key strategies in the Permian Basin.
First, let me provide a quick overview of our Midstream and Marketing Segment. The role of our midstream group is to maximize
realized value for Oxy production by (i) ensuring access to markets, (ii) optimizing existing assets, and (iii) building out key assets across the value chain. This is increasingly important with the US moving to an abundance of resource, and the significant shifting of global supply and demand.
Our Oxy-owned domestic midstream assets are shown on slide 33. These are supplemented with contracted capacity on third party assets, all of which allow us to market substantially all of Oxy’s domestic oil, NGLs and gas production, comprised of roughly 470,000 barrels of oil equivalent per day (“BOEPD”), 278,000 barrels per day (“BPD”) of crude, 72,000 BPD of NGLs, and over 700 million cubic feet per day (“MMcf/d”) of gas. We also market third party crude and NGL volumes, focusing on parties whose supply is located near our transportation and storage assets. These third party volumes are significant and add in excess of 200,000 BPD for third-party crude and NGL volumes. This aggregation of volumes both serves a need for producers and end users and allows us to better utilize and optimize our assets.
We also have gas processing plants and CO2 fields and facilities. We process equity and third-party domestic wet gas to extract NGLs and other gas byproducts, including CO2, and deliver dry gas to pipelines. We produce approximately half of our CO2 requirements.
Currently, we operate ~1,800 megawatts of power generation. The majority of these power plants are located next to our OxyChem and Oil and Gas facilities in order to share infrastructure, act as a steam host, and to consume power, with the remaining power sold to the power grid.
Let me go back to our key Permian Basin assets where our midstream operations are focused on providing access to multiple markets for Permian Basin production. Our equity production is roughly 150,000 BPD and is
expected to grow significantly. Additionally, we purchase and market over 200,000 BPD of third party crude production.
Turning to slide 34, Centurion is a large gathering and mainline system in the Permian that we continue to optimize and significantly expand. Our Centurion system has ~2,900 miles of pipeline, over 100 truck stations, ~6 MM barrels of storage, and has access to most third party transportation assets that enable us to deliver crude to all Permian refineries, as well as to the origin point of key pipelines taking production out of the Permian Basin. We are focusing on two new, key takeaway points, Colorado City which is the origin of our BridgeTex pipeline, which we are jointly developing with Magellan, and Midland–South which is the origin to key third party pipelines, Longhorn and Cactus. When at full capacity, BridgeTex and Cactus will have added an additional 500,000 BPD of takeaway capacity from the Permian Basin.
These new pipelines give us access to the Houston and Corpus Christi refining centers and to our own Ingleside Terminal in Corpus Christi, while supplementing our existing access to Cushing. We are also working on options to handle the growing light crude production in the Delaware Basin and Southeastern New Mexico in order to preserve the Permian crude qualities in the Midland Basin.
Currently, Occidental and Magellan are in the final phases of construction of the BridgeTex pipeline, which is expected to start-up late third quarter. The 450-mile long pipeline will be capable of transporting approximately 300,000 barrels per day of crude between the Permian region and Gulf Coast refinery markets. Oxy has significant committed takeaway capacity on BridgeTex, as well as other third party pipelines exiting from the basin. When all planned pipelines are in operation by mid-2015, our
midstream unit will have access to long-term, cost advantaged takeaway capacity.
As a major producer in the Permian Basin, we have been a driving force behind the construction of new infrastructure adding transportation capacity from the basin in order to benefit Permian Basin production and avoid production constraints.
I want to highlight how important adequate takeaway capacity is to market value. On slide 35, I have shown Midland WTI pricing compared to Cushing WTI and US Gulf Coast LLS markers for the period of 2009 through today. You can see how the differentials were at transportation parity in a market with adequate takeaway capacity. Note the differentials widening significantly as the supply and demand balance tighten in a takeaway constrained market. We have seen Midland/LLS differentials as wide as $30/bbl in January 2012 and January 2013 during winter refinery maintenance periods. This year, we have seen wide differentials throughout the entire year as increases in production have further tightened the supply and demand balance. The Midland/LLS discount this year has averaged $10.30/bbl versus $5.84/bbl during the second half of 2013.
With the upcoming completion of BridgeTex and the start-up of the Cactus pipeline by mid-year 2015, we expect differentials to return to levels that reflect the incremental cost of transportation between the Permian and Cushing or the Gulf Coast.
As you heard in Vicki’s comments, Oxy production growth will be significant in West Texas and Southeast New Mexico. With our long-term capacity on multiple pipelines, we will have security of placement with takeaway capacity of roughly 3 times our current equity production from the
Permian Basin, as well as access to key markets and options to protect our Permian crude premiums.
Let me give you an update on our Ingleside Energy Center in Corpus Christi seen on slide 36. This is the former Naval Station that we purchased in late 2012 which is located outside of the congested ship channel near the mouth of Corpus Christi Bay. We are developing a terminal facility that will be able to handle up to 100,000 BPD of propane and 200,000 to 300,000 BPD of condensate and crude. The site will contain 2-4 MM barrels of storage and also provides flexibility to accommodate future processing facilities onsite or at our nearby OxyChem complex. We have sanctioned both projects and expect the LPG propane terminal to be completed in mid-2015, and the first phase of the crude/condensate terminal to be completed in the first half of 2016.
Our midstream business has demonstrated steady earnings growth over the last few years. Slide 37 shows the premiums that are added from our Permian crude logistics and marketing business, in dollars per barrel on an equity production adjusted basis, versus a group of select Permian producers based on public information. You can see we have added an average of approximately $1.50/bbl better than the selected group.
On the same basis, we expect to capture an additional $2+/bbl value once the BridgeTex and Cactus pipelines start up as a result of our long-term advantaged takeaway capacity. Reinforcing the importance of key infrastructure, if these new pipelines were not sanctioned, the entire basin would suffer significant discounts to market due to infrastructure constraints. You can see the reasons we have moved forward on these key pipeline initiatives.
I hope this gives you a better view of our Midstream business and, in particular, its key role in support of our domestic Oil and Gas business’ growth and success. This is an exciting time for our midstream business as we continue to build a strong platform for future opportunities.
Thanks for your attention.
I will now turn the call back to Chris Degner.
Exhibit 99.3
Investor Relations Supplemental Schedules
Investor Relations Supplemental Schedules
Summary
|
|
|
2Q 2014 |
|
2Q 2013 |
|
|
|
|
|
|
|
|
|
Core Results (millions) |
|
$1,404 |
|
$1,276 |
|
|
EPS - Diluted |
|
$1.79 |
|
$1.58 |
|
|
|
|
|
|
|
|
|
Reported Net Income (millions) |
|
$1,431 |
|
$1,322 |
|
|
EPS - Diluted |
|
$1.82 |
|
$1.64 |
|
|
|
|
|
|
|
|
|
Total Worldwide Sales Volumes (mboe/day) |
|
741 |
|
764 |
|
|
Total Worldwide Production Volumes (mboe/day) |
|
742 |
|
772 |
|
|
|
|
|
|
|
|
|
Total Worldwide Crude Oil Realizations ($/BBL) |
|
$100.38 |
|
$97.91 |
|
|
Total Worldwide NGL Realizations ($/BBL) |
|
$42.82 |
|
$38.78 |
|
|
Domestic Natural Gas Realizations ($/MCF) |
|
$4.28 |
|
$3.82 |
|
|
|
|
|
|
|
|
|
Wtd. Average Basic Shares O/S (millions) |
|
782.6 |
|
804.9 |
|
|
Wtd. Average Diluted Shares O/S (millions) |
|
782.9 |
|
805.4 |
|
|
|
|
|
|
|
|
|
|
|
YTD 2014 |
|
YTD 2013 |
|
|
|
|
|
|
|
|
|
Core Results (millions) |
|
$2,791 |
|
$2,635 |
|
|
EPS - Diluted |
|
$3.54 |
|
$3.27 |
|
|
|
|
|
|
|
|
|
Reported Net Income (millions) |
|
$2,821 |
|
$2,677 |
|
|
EPS - Diluted |
|
$3.58 |
|
$3.32 |
|
|
|
|
|
|
|
|
|
Total Worldwide Sales Volumes (mboe/day) |
|
738 |
|
755 |
|
|
Total Worldwide Production Volumes (mboe/day) |
|
743 |
|
768 |
|
|
|
|
|
|
|
|
|
Total Worldwide Crude Oil Realizations ($/BBL) |
|
$99.70 |
|
$97.99 |
|
|
Total Worldwide NGL Realizations ($/BBL) |
|
$44.43 |
|
$39.52 |
|
|
Domestic Natural Gas Realizations ($/MCF) |
|
$4.43 |
|
$3.44 |
|
|
|
|
|
|
|
|
|
Wtd. Average Basic Shares O/S (millions) |
|
786.9 |
|
804.8 |
|
|
Wtd. Average Diluted Shares O/S (millions) |
|
787.3 |
|
805.3 |
|
|
|
|
|
|
|
|
|
Shares Outstanding (millions) |
|
779.6 |
|
805.8 |
|
|
|
|
|
|
|
|
|
Cash Flow from Operations (millions) |
|
$5,600 |
|
$6,200 |
|
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2014 Second Quarter
Net Income (Loss) - Segments Earnings Pre-Tax and After-Tax
($ millions, except per share amounts)
|
|
|
Reported |
|
|
|
|
|
Core |
|
PRE-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 1,132 |
|
$ (535) |
|
Hugoton sale gain |
|
$ 1,068 |
|
|
|
|
|
471 |
|
Assets impairments |
|
|
|
Foreign |
|
1,096 |
|
|
|
|
|
1,096 |
|
Exploration |
|
(46) |
|
|
|
|
|
(46) |
|
|
|
2,182 |
|
|
|
|
|
$ 2,118 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
133 |
|
|
|
|
|
133 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
219 |
|
|
|
|
|
219 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(15) |
|
|
|
|
|
(15) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(130) |
|
17 |
|
Spin-off costs and other |
|
(113) |
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(957) |
|
19 |
|
Tax effect of pre-tax adjustments |
|
(938) |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
|
|
1,404 |
|
Discontinued operations, net of tax |
|
(1) |
|
1 |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
|
|
$ 1,404 |
|
|
|
Reported |
|
|
|
|
|
Core |
|
AFTER-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 720 |
|
$ (341) |
|
Hugoton sale gain |
|
$ 679 |
|
|
|
|
|
300 |
|
Assets impairments |
|
|
|
Foreign |
|
576 |
|
|
|
|
|
576 |
|
Exploration |
|
(36) |
|
|
|
|
|
(36) |
|
|
|
1,260 |
|
|
|
|
|
$ 1,219 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
84 |
|
|
|
|
|
84 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
160 |
|
|
|
|
|
160 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(15) |
|
|
|
|
|
(15) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(130) |
|
13 |
|
Spin-off costs and other |
|
(117) |
|
|
|
|
|
|
|
|
|
|
|
Unallocated taxes |
|
73 |
|
|
|
|
|
73 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
1,432 |
|
(28) |
|
|
|
1,404 |
|
Discontinued operations, net of tax |
|
(1) |
|
1 |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 1,431 |
|
$ (27) |
|
|
|
$ 1,404 |
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.83 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
- |
|
|
|
|
|
|
|
Net Income |
|
$ 1.83 |
|
|
|
|
|
$ 1.79 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 1.82 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
- |
|
|
|
|
|
|
|
Net Income |
|
$ 1.82 |
|
|
|
|
|
$ 1.79 |
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2013 Second Quarter
Net Income (Loss) - Segments Earnings Pre-Tax and After-Tax
($ millions, except per share amounts)
|
|
|
Reported |
|
|
|
|
|
Core | |||
|
PRE-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | |||||
|
Domestic |
|
$ |
997 |
|
|
|
|
|
$ |
997 | |
|
Foreign |
|
1,173 |
|
|
|
|
|
1,173 | |||
|
Exploration |
|
(70) |
|
|
|
|
|
(70) | |||
|
|
|
2,100 |
|
|
|
|
|
$ |
2,100 | ||
|
|
|
|
|
|
|
|
|
| |||
|
Chemical |
|
275 |
|
$ |
(131) |
|
Carbocloro sale gain |
|
144 | ||
|
|
|
|
|
|
|
|
|
| |||
|
Midstream, marketing and other |
|
48 |
|
|
|
|
|
48 | |||
|
|
|
|
|
|
|
|
|
| |||
|
Corporate |
|
|
|
|
|
|
|
| |||
|
Interest expense, net |
|
(29) |
|
|
|
|
|
(29) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Other |
|
(166) |
|
55 |
|
Employment charges (a) |
|
(111) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Taxes |
|
(901) |
|
25 |
|
Tax effect of pre-tax adjustments |
|
(876) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
|
1,276 | |||
|
Discontinued operations, net of tax |
|
(5) |
|
5 |
|
Discontinued operations, net |
|
- | |||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
|
$ |
1,276 |
|
|
|
Reported |
|
|
|
|
|
Core | |||
|
AFTER-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | |||||
|
Domestic |
|
$ |
635 |
|
|
|
|
|
$ |
635 | |
|
Foreign |
|
641 |
|
|
|
|
|
641 | |||
|
Exploration |
|
(56) |
|
|
|
|
|
(56) | |||
|
|
|
1,220 |
|
|
|
|
|
$ |
1,220 | ||
|
|
|
|
|
|
|
|
|
| |||
|
Chemical |
|
172 |
|
$ |
(85) |
|
Carbocloro sale gain |
|
87 | ||
|
|
|
|
|
|
|
|
|
| |||
|
Midstream, marketing and other |
|
46 |
|
|
|
|
|
46 | |||
|
|
|
|
|
|
|
|
|
| |||
|
Corporate |
|
|
|
|
|
|
|
| |||
|
Interest expense, net |
|
(29) |
|
|
|
|
|
(29) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Other |
|
(166) |
|
34 |
|
Employment charges (a) |
|
(132) | |||
|
|
|
|
|
|
|
|
|
| |||
|
Unallocated taxes |
|
84 |
|
|
|
|
|
84 | |||
|
|
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
1,327 |
|
(51) |
|
|
|
1,276 | |||
|
Discontinued operations, net of tax |
|
(5) |
|
5 |
|
Discontinued operations, net |
|
- | |||
|
Net Income |
|
$ |
1,322 |
|
$ |
(46) |
|
|
|
$ |
1,276 |
|
|
|
|
|
|
|
|
|
| |||
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
$ |
1.65 |
|
|
|
|
|
| ||
|
Discontinued operations, net |
|
(0.01) |
|
|
|
|
|
| |||
|
Net Income |
|
$ |
1.64 |
|
|
|
|
|
$ |
1.58 | |
|
|
|
|
|
|
|
|
|
| |||
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
| |||
|
Income from continuing operations |
|
$ |
1.64 |
|
|
|
|
|
| ||
|
Discontinued operations, net |
|
- |
|
|
|
|
|
| |||
|
Net Income |
|
$ |
1.64 |
|
|
|
|
|
$ |
1.58 | |
(a) Reflects charge for the estimated cost related to the employment and post-employment benefits for the Company’s former Executive Chairman and termination of certain other employees and consulting arrangements.
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2014 Six Months
Net Income (Loss) - Segments Earnings Pre-Tax and After-Tax
($ millions, except per share amounts)
|
|
|
Reported |
|
|
|
|
|
Core |
|
PRE-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 2,190 |
|
$ (535) |
|
Hugoton sale gain |
|
$ 2,126 |
|
|
|
|
|
471 |
|
Assets impairments |
|
|
|
Foreign |
|
2,188 |
|
|
|
|
|
2,188 |
|
Exploration |
|
(92) |
|
|
|
|
|
(92) |
|
|
|
4,286 |
|
|
|
|
|
$ 4,222 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
269 |
|
|
|
|
|
269 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
389 |
|
|
|
|
|
389 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(34) |
|
|
|
|
|
(34) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(202) |
|
17 |
|
Spin-off costs and other |
|
(185) |
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(1,889) |
|
19 |
|
Tax effect of pre-tax adjustments |
|
(1,870) |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
|
2,791 |
|
Discontinued operations, net of tax |
|
2 |
|
(2) |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 2,821 |
|
$ (30) |
|
|
|
$ 2,791 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
Core |
|
AFTER-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 1,394 |
|
$ (341) |
|
Hugoton sale gain |
|
$ 1,353 |
|
|
|
|
|
300 |
|
Assets impairments |
|
|
|
Foreign |
|
1,128 |
|
|
|
|
|
1,128 |
|
Exploration |
|
(68) |
|
|
|
|
|
(68) |
|
|
|
2,454 |
|
|
|
|
|
$ 2,413 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
170 |
|
|
|
|
|
170 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
278 |
|
|
|
|
|
278 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(34) |
|
|
|
|
|
(34) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(202) |
|
13 |
|
Spin-off costs and other |
|
(189) |
|
|
|
|
|
|
|
|
|
|
|
Unallocated taxes |
|
153 |
|
|
|
|
|
153 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
2,819 |
|
(28) |
|
|
|
2,791 |
|
Discontinued operations, net of tax |
|
2 |
|
(2) |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 2,821 |
|
$ (30) |
|
|
|
$ 2,791 |
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 3.58 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
- |
|
|
|
|
|
|
|
Net Income |
|
$ 3.58 |
|
|
|
|
|
$ 3.54 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 3.58 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
- |
|
|
|
|
|
|
|
Net Income |
|
$ 3.58 |
|
|
|
|
|
$ 3.54 |
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2013 Six Months
Net Income (Loss) - Segments Earnings Pre-Tax and After-Tax
($ millions, except per share amounts)
|
|
|
Reported |
|
|
|
|
|
Core |
|
PRE-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 1,886 |
|
|
|
|
|
$ 1,886 |
|
Foreign |
|
2,246 |
|
|
|
|
|
2,246 |
|
Exploration |
|
(112) |
|
|
|
|
|
(112) |
|
|
|
4,020 |
|
|
|
|
|
$ 4,020 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
434 |
|
(131) |
|
Carbocloro sale gain |
|
303 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
263 |
|
|
|
|
|
263 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(59) |
|
|
|
|
|
(59) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(227) |
|
55 |
|
Employment charges (a) |
|
(172) |
|
|
|
|
|
|
|
|
|
|
|
Taxes |
|
(1,745) |
|
25 |
|
Tax effect of pre-tax adjustments |
|
(1,720) |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
|
2,635 |
|
Discontinued operations, net of tax |
|
(9) |
|
9 |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 2,677 |
|
$ (42) |
|
|
|
$ 2,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported |
|
|
|
|
|
Core |
|
AFTER-TAX |
|
Income |
|
Significant Items Affecting Income |
|
Results | ||
|
Domestic |
|
$ 1,201 |
|
|
|
|
|
$ 1,201 |
|
Foreign |
|
1,177 |
|
|
|
|
|
1,177 |
|
Exploration |
|
(29) |
|
|
|
|
|
(29) |
|
|
|
2,349 |
|
|
|
|
|
$ 2,349 |
|
|
|
|
|
|
|
|
|
|
|
Chemical |
|
271 |
|
$ (85) |
|
Carbocloro sale gain |
|
186 |
|
|
|
|
|
|
|
|
|
|
|
Midstream, marketing and other |
|
192 |
|
|
|
|
|
192 |
|
|
|
|
|
|
|
|
|
|
|
Corporate |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(59) |
|
|
|
|
|
(59) |
|
|
|
|
|
|
|
|
|
|
|
Other |
|
(227) |
|
34 |
|
Exployment charges (a) |
|
(193) |
|
|
|
|
|
|
|
|
|
|
|
Unallocated taxes |
|
160 |
|
|
|
|
|
160 |
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
2,686 |
|
(51) |
|
|
|
2,635 |
|
Discontinued operations, net of tax |
|
(9) |
|
9 |
|
Discontinued operations, net |
|
- |
|
Net Income |
|
$ 2,677 |
|
$ (42) |
|
|
|
$ 2,635 |
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 3.33 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
(0.01) |
|
|
|
|
|
|
|
Net Income |
|
$ 3.32 |
|
|
|
|
|
$ 3.27 |
|
|
|
|
|
|
|
|
|
|
|
Diluted Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
$ 3.33 |
|
|
|
|
|
|
|
Discontinued operations, net |
|
(0.01) |
|
|
|
|
|
|
|
Net Income |
|
$ 3.32 |
|
|
|
|
|
$ 3.27 |
(a) Reflects charge for the estimated cost related to the employment and post-employment benefits for the Company’s former Executive Chairman and termination of certain other employees and consulting arrangements.
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
|
|
|
QUARTERLY |
|
YEAR-TO-DATE | |||||||||||
|
|
|
2014 |
|
2013 |
|
2013 |
|
2014 |
|
2013 | |||||
|
REPORTED INCOME |
|
QTR 2 |
|
QTR 1 |
|
QTR 2 |
|
6 Months |
|
6 Months | |||||
|
Oil & Gas |
|
2,182 |
|
|
2,104 |
|
|
2,100 |
|
|
4,286 |
|
|
4,020 |
|
|
Chemical |
|
133 |
|
|
136 |
|
|
275 |
|
|
269 |
|
|
434 |
|
|
Midstream, marketing and other |
|
219 |
|
|
170 |
|
|
48 |
|
|
389 |
|
|
263 |
|
|
Corporate & other |
|
(145 |
) |
|
(91 |
) |
|
(195 |
) |
|
(236 |
) |
|
(286 |
) |
|
Pre-tax income |
|
2,389 |
|
|
2,319 |
|
|
2,228 |
|
|
4,708 |
|
|
4,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
|
427 |
|
|
379 |
|
|
332 |
|
|
805 |
|
|
624 |
|
|
Foreign |
|
530 |
|
|
553 |
|
|
569 |
|
|
1,084 |
|
|
1,121 |
|
|
Total |
|
957 |
|
|
932 |
|
|
901 |
|
|
1,889 |
|
|
1,745 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
|
1,432 |
|
|
1,387 |
|
|
1,327 |
|
|
2,819 |
|
|
2,686 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
|
40 |
% |
|
40 |
% |
|
40 |
% |
|
40 |
% |
|
39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2014 |
|
2013 |
|
2013 |
|
2014 |
|
2013 | |||||
|
CORE RESULTS |
|
QTR 2 |
|
QTR 1 |
|
QTR 2 |
|
6 Months |
|
6 Months | |||||
|
Oil & Gas |
|
2,118 |
|
|
2,104 |
|
|
2,100 |
|
|
4,222 |
|
|
4,020 |
|
|
Chemical |
|
133 |
|
|
136 |
|
|
144 |
|
|
269 |
|
|
303 |
|
|
Midstream, marketing and other |
|
219 |
|
|
170 |
|
|
48 |
|
|
389 |
|
|
263 |
|
|
Corporate & other |
|
(128 |
) |
|
(91 |
) |
|
(140 |
) |
|
(219 |
) |
|
(231 |
) |
|
Pre-tax income |
|
2,342 |
|
|
2,319 |
|
|
2,152 |
|
|
4,661 |
|
|
4,355 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
|
408 |
|
|
379 |
|
|
331 |
|
|
786 |
|
|
623 |
|
|
Foreign |
|
530 |
|
|
553 |
|
|
545 |
|
|
1,084 |
|
|
1,097 |
|
|
Total |
|
938 |
|
|
932 |
|
|
876 |
|
|
1,870 |
|
|
1,720 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core results |
|
1,404 |
|
|
1,387 |
|
|
1,276 |
|
|
2,791 |
|
|
2,635 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
|
40 |
% |
|
40 |
% |
|
41 |
% |
|
40 |
% |
|
39 |
% |
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2014 Second Quarter Net Income (Loss)
Reported Income Comparison
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
Second |
|
First |
|
| ||||||
|
|
|
Quarter |
|
Quarter |
|
| ||||||
|
|
|
2014 |
|
2013 |
|
B / (W) | ||||||
|
Oil & Gas |
|
$ |
2,182 |
|
|
$ |
2,104 |
|
|
$ |
78 |
|
|
Chemical |
|
133 |
|
|
136 |
|
|
(3 |
) | |||
|
Midstream, marketing and other |
|
219 |
|
|
170 |
|
|
49 |
| |||
|
Corporate |
|
|
|
|
|
|
|
|
| |||
|
Interest expense, net |
|
(15 |
) |
|
(19 |
) |
|
4 |
| |||
|
Other |
|
(130 |
) |
|
(72 |
) |
|
(58 |
) | |||
|
Taxes |
|
(957 |
) |
|
(932 |
) |
|
(25 |
) | |||
|
Income from continuing operations |
|
1,432 |
|
|
1,387 |
|
|
45 |
| |||
|
Discontinued operations, net |
|
(1 |
) |
|
3 |
|
|
(4 |
) | |||
|
Net Income |
|
$ |
1,431 |
|
|
$ |
1,390 |
|
|
$ |
41 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
| |||
|
Basic |
|
$ |
1.83 |
|
|
$ |
1.75 |
|
|
$ |
0.08 |
|
|
Diluted |
|
$ |
1.82 |
|
|
$ |
1.75 |
|
|
$ |
0.07 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Worldwide Effective Tax Rate |
|
40 |
% |
|
40 |
% |
|
0 |
% | |||
|
|
OCCIDENTAL PETROLEUM
2014 Second Quarter Net Income (Loss)
Core Results Comparison
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
Second |
|
First |
|
| ||||||
|
|
|
Quarter |
|
Quarter |
|
| ||||||
|
|
|
2014 |
|
2013 |
|
B / (W) | ||||||
|
Oil & Gas |
|
$ |
2,118 |
|
|
$ |
2,104 |
|
|
$ |
14 |
|
|
Chemical |
|
133 |
|
|
136 |
|
|
(3 |
) | |||
|
Midstream, marketing and other |
|
219 |
|
|
170 |
|
|
49 |
| |||
|
Corporate |
|
|
|
|
|
|
|
|
| |||
|
Interest expense, net |
|
(15 |
) |
|
(19 |
) |
|
4 |
| |||
|
Other |
|
(113 |
) |
|
(72 |
) |
|
(41 |
) | |||
|
Taxes |
|
(938 |
) |
|
(932 |
) |
|
(6 |
) | |||
|
Core Results |
|
$ |
1,404 |
|
|
$ |
1,387 |
|
|
$ |
17 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
| |||
|
Basic |
|
$ |
1.79 |
|
|
$ |
1.75 |
|
|
$ |
0.04 |
|
|
Diluted |
|
$ |
1.79 |
|
|
$ |
1.75 |
|
|
$ |
0.04 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Worldwide Effective Tax Rate |
|
40 |
% |
|
40 |
% |
|
0 |
% | |||
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
2014 Second Quarter Net Income (Loss)
Reported Income Comparison
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
Second |
|
Second |
|
| ||||||
|
|
|
Quarter |
|
Quarter |
|
| ||||||
|
|
|
2014 |
|
2013 |
|
B / (W) | ||||||
|
Oil & Gas |
|
$ |
2,182 |
|
|
$ |
2,100 |
|
|
$ |
82 |
|
|
Chemical |
|
133 |
|
|
$ |
275 |
|
|
(142 |
) | ||
|
Midstream, marketing and other |
|
219 |
|
|
$ |
48 |
|
|
171 |
| ||
|
Corporate |
|
|
|
|
|
|
|
|
| |||
|
Interest expense, net |
|
(15 |
) |
|
(29 |
) |
|
14 |
| |||
|
Other |
|
(130 |
) |
|
(166 |
) |
|
36 |
| |||
|
Taxes |
|
(957 |
) |
|
(901 |
) |
|
(56 |
) | |||
|
Income from continuing operations |
|
1,432 |
|
|
1,327 |
|
|
105 |
| |||
|
Discontinued operations, net |
|
(1 |
) |
|
(5 |
) |
|
4 |
| |||
|
Net Income |
|
$ |
1,431 |
|
|
$ |
1,322 |
|
|
$ |
109 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Earnings Per Common Share |
|
|
|
|
|
|
|
|
| |||
|
Basic |
|
$ |
1.83 |
|
|
$ |
1.64 |
|
|
$ |
0.19 |
|
|
Diluted |
|
$ |
1.82 |
|
|
$ |
1.64 |
|
|
$ |
0.18 |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
Worldwide Effective Tax Rate |
|
40 |
% |
|
40 |
% |
|
0 |
% | |||
|
|
OCCIDENTAL PETROLEUM
2014 Second Quarter Net Income (Loss)
Core Results Comparison
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Second |
|
Second |
|
| |||
|
|
|
Quarter |
|
Quarter |
|
| |||
|
|
|
2014 |
|
2013 |
|
B / (W) | |||
|
Oil & Gas |
|
$ 2,118 |
|
|
$ 2,100 |
|
|
$ 18 |
|
|
Chemical |
|
133 |
|
|
144 |
|
|
(11 |
) |
|
Midstream, marketing and other |
|
219 |
|
|
48 |
|
|
171 |
|
|
Corporate |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
(15 |
) |
|
(29 |
) |
|
14 |
|
|
Other |
|
(113 |
) |
|
(111 |
) |
|
(2 |
) |
|
Taxes |
|
(938 |
) |
|
(876 |
) |
|
(62 |
) |
|
Core Results |
|
$ 1,404 |
|
|
$ 1,276 |
|
|
$ 128 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Results Per Common Share |
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ 1.79 |
|
|
$ 1.58 |
|
|
$ 0.21 |
|
|
Diluted |
|
$ 1.79 |
|
|
$ 1.58 |
|
|
$ 0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
40 |
% |
|
41 |
% |
|
1 |
% |
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months |
| |||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| |
|
NET PRODUCTION PER DAY: |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
United States |
|
|
|
|
|
|
|
|
| |
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
| |
|
California |
|
97 |
|
88 |
|
96 |
|
88 |
| |
|
Permian Resources |
|
40 |
|
33 |
|
38 |
|
34 |
| |
|
Permian EOR |
|
110 |
|
112 |
|
110 |
|
112 |
| |
|
Midcontinent and other |
|
29 |
|
22 |
|
27 |
|
22 |
| |
|
Total excluding Hugoton |
|
276 |
|
255 |
|
271 |
|
256 |
| |
|
Hugoton |
|
2 |
|
6 |
|
4 |
|
6 |
| |
|
Total |
|
278 |
|
261 |
|
275 |
|
262 |
| |
|
NGLs (MBBL) |
|
|
|
|
|
|
|
|
| |
|
California |
|
18 |
|
21 |
|
18 |
|
20 |
| |
|
Permian Resources |
|
12 |
|
11 |
|
11 |
|
10 |
| |
|
Permian EOR |
|
29 |
|
28 |
|
29 |
|
29 |
| |
|
Midcontinent and other |
|
12 |
|
14 |
|
14 |
|
15 |
| |
|
Total excluding Hugoton |
|
71 |
|
74 |
|
72 |
|
74 |
| |
|
Hugoton |
|
1 |
|
3 |
|
2 |
|
3 |
| |
|
Total |
|
72 |
|
77 |
|
74 |
|
77 |
| |
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
| |
|
California |
|
243 |
|
260 |
|
243 |
|
262 |
| |
|
Permian Resources |
|
120 |
|
121 |
|
117 |
|
126 |
| |
|
Permian EOR |
|
34 |
|
39 |
|
37 |
|
42 |
| |
|
Midcontinent and other |
|
305 |
|
313 |
|
305 |
|
318 |
| |
|
Total excluding Hugoton |
|
702 |
|
733 |
|
702 |
|
748 |
| |
|
Hugoton |
|
16 |
|
60 |
|
35 |
|
60 |
| |
|
Total |
|
718 |
|
793 |
|
737 |
|
808 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Latin America |
|
|
|
|
|
|
|
|
| |
|
Oil (MBBL) |
Colombia |
|
19 |
|
28 |
|
24 |
|
29 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Natural Gas (MMCF) |
Bolivia |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
| |
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
| |
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
| |
|
Oman |
|
70 |
|
67 |
|
68 |
|
66 |
| |
|
Qatar |
|
69 |
|
75 |
|
68 |
|
67 |
| |
|
Other |
|
28 |
|
44 |
|
27 |
|
45 |
| |
|
Total |
|
174 |
|
193 |
|
169 |
|
184 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
NGLs (MBBL) |
Dolphin |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
| |
|
Natural Gas (MMCF) |
|
|
|
|
|
|
|
|
| |
|
Dolphin |
|
144 |
|
145 |
|
138 |
|
139 |
| |
|
Oman |
|
40 |
|
56 |
|
40 |
|
56 |
| |
|
Other |
|
236 |
|
232 |
|
234 |
|
238 |
| |
|
Total |
|
420 |
|
433 |
|
412 |
|
433 |
| |
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
| |
|
Barrels of Oil Equivalent excluding Hugoton (MBOE) |
|
736 |
|
753 |
|
731 |
|
749 |
| |
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
| |
|
Barrels of Oil Equivalent (MBOE) |
|
742 |
|
772 |
|
743 |
|
768 |
| |
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months |
| ||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
|
|
NET SALES VOLUMES PER DAY: |
|
|
|
|
|
|
|
|
|
|
United States |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
278 |
|
261 |
|
275 |
|
262 |
|
|
NGLs (MBBL) |
|
72 |
|
77 |
|
74 |
|
77 |
|
|
Natural Gas (MMCF) |
|
720 |
|
795 |
|
738 |
|
810 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
24 |
|
26 |
|
28 |
|
28 |
|
|
Natural Gas (MMCF) |
|
12 |
|
13 |
|
12 |
|
13 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
|
|
Oil (MBBL) |
|
|
|
|
|
|
|
|
|
|
Dolphin |
|
7 |
|
7 |
|
6 |
|
6 |
|
|
Oman |
|
71 |
|
63 |
|
68 |
|
68 |
|
|
Qatar |
|
66 |
|
80 |
|
69 |
|
66 |
|
|
Other |
|
24 |
|
36 |
|
17 |
|
32 |
|
|
Total |
|
168 |
|
186 |
|
160 |
|
172 |
|
|
|
|
|
|
|
|
|
|
|
|
|
NGLs (MBBL) |
|
7 |
|
7 |
|
7 |
|
7 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Natural Gas (MMCF) |
|
420 |
|
433 |
|
412 |
|
433 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Barrels of Oil Equivalent excluding Hugoton (MBOE) |
|
735 |
|
745 |
|
726 |
|
736 |
|
|
Hugoton |
|
6 |
|
19 |
|
12 |
|
19 |
|
|
Barrels of Oil Equivalent (MBOE) |
|
741 |
|
764 |
|
738 |
|
755 |
|
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
OIL & GAS: |
|
|
|
|
|
|
|
|
| ||||
|
REALIZED PRICES |
|
|
|
|
|
|
|
|
| ||||
|
United States |
|
|
|
|
|
|
|
|
| ||||
|
Oil ($/BBL) |
|
97.48 |
|
95.08 |
|
96.72 |
|
93.33 |
| ||||
|
NGLs ($/BBL) |
|
43.91 |
|
39.70 |
|
45.30 |
|
40.15 |
| ||||
|
Natural gas ($/MCF) |
|
4.28 |
|
3.82 |
|
4.43 |
|
3.44 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Latin America |
|
|
|
|
|
|
|
|
| ||||
|
Oil ($/BBL) |
|
101.30 |
|
98.85 |
|
99.73 |
|
103.29 |
| ||||
|
Natural gas ($/MCF) |
|
10.99 |
|
11.32 |
|
10.90 |
|
11.46 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Middle East / North Africa |
|
|
|
|
|
|
|
|
| ||||
|
Oil ($/BBL) |
|
105.15 |
|
101.83 |
|
104.91 |
|
104.40 |
| ||||
|
NGLs ($/BBL) |
|
32.00 |
|
29.14 |
|
34.94 |
|
32.65 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
Total Worldwide |
|
|
|
|
|
|
|
|
| ||||
|
Oil ($/BBL) |
|
100.38 |
|
97.91 |
|
99.70 |
|
97.99 |
| ||||
|
NGLs ($/BBL) |
|
42.82 |
|
38.78 |
|
44.43 |
|
39.52 |
| ||||
|
Natural gas ($/MCF) |
|
3.07 |
|
2.83 |
|
3.20 |
|
2.60 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
INDEX PRICES |
|
|
|
|
|
|
|
|
| ||||
|
WTI oil ($/BBL) |
|
102.99 |
|
94.22 |
|
100.84 |
|
94.30 |
| ||||
|
Brent oil ($/BBL) |
|
109.77 |
|
103.35 |
|
108.83 |
|
108.00 |
| ||||
|
NYMEX gas ($/MCF) |
|
4.55 |
|
4.00 |
|
4.60 |
|
3.68 |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
REALIZED PRICES AS PERCENTAGE OF INDEX PRICES |
|
|
|
|
|
|
|
|
| ||||
|
Worldwide oil as a percentage of WTI |
|
97% |
|
104% |
|
99% |
|
104% |
| ||||
|
Worldwide oil as a percentage of Brent |
|
91% |
|
95% |
|
92% |
|
91% |
| ||||
|
Worldwide NGLs as a percentage of WTI |
|
42% |
|
41% |
|
44% |
|
42% |
| ||||
|
Domestic natural gas as a percentage of NYMEX |
|
94% |
|
95% |
|
96% |
|
93% |
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
|
|
| ||||
|
|
|
Second Quarter |
|
Six Months |
| ||||||||
|
|
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||
|
Exploration Expense |
|
|
|
|
|
|
|
|
| ||||
|
United States |
|
$ |
29 |
|
$ |
45 |
|
$ |
70 |
|
$ |
85 |
|
|
Middle East / North Africa |
|
25 |
|
33 |
|
39 |
|
43 |
| ||||
|
|
|
$ |
54 |
|
$ |
78 |
|
$ |
109 |
|
$ |
128 |
|
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
|
|
|
Second Quarter |
|
Six Months |
| ||||||||||||
|
Capital Expenditures ($MM) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||||||
|
Oil & Gas |
|
|
|
|
|
|
|
|
| ||||||||
|
California |
|
$ |
491 |
|
$ |
362 |
|
$ |
938 |
|
$ |
679 |
| ||||
|
Permian |
|
594 |
|
436 |
|
1,086 |
|
871 |
| ||||||||
|
Midcontinent and other |
|
219 |
|
208 |
|
450 |
|
426 |
| ||||||||
|
Latin America |
|
74 |
|
75 |
|
141 |
|
145 |
| ||||||||
|
Middle East / North Africa |
|
554 |
|
549 |
|
1,008 |
|
1,096 |
| ||||||||
|
Exploration |
|
164 |
|
103 |
|
271 |
|
181 |
| ||||||||
|
Chemical |
|
71 |
|
103 |
|
112 |
|
168 |
| ||||||||
|
Midstream, marketing and other |
|
461 |
|
336 |
|
868 |
|
656 |
| ||||||||
|
Corporate |
|
30 |
|
38 |
|
53 |
|
58 |
| ||||||||
|
|
TOTAL |
2,658 |
|
2,210 |
|
4,927 |
|
4,280 |
| ||||||||
|
Non-controlling interest contributions |
|
(149) |
|
(39) |
|
(272) |
|
(65) |
| ||||||||
|
Cracker JV contribution |
|
21 |
|
- |
|
81 |
|
- |
| ||||||||
|
|
|
$ |
2,530 |
|
$ |
2,171 |
|
$ |
4,736 |
|
$ |
4,215 |
| ||||
|
|
|
|
|
|
| ||||||||||||
|
|
|
|
|
|
| ||||||||||||
|
Depreciation, Depletion & |
|
Second Quarter |
|
Six Months |
| ||||||||||||
|
Amortization of Assets ($MM) |
|
2014 |
|
2013 |
|
2014 |
|
2013 |
| ||||||||
|
Oil & Gas |
|
|
|
|
|
|
|
|
| ||||||||
|
Domestic |
|
$ |
796 |
|
$ |
732 |
|
$ |
1,572 |
|
$ |
1,472 |
| ||||
|
Latin America |
|
35 |
|
27 |
|
77 |
|
57 |
| ||||||||
|
Middle East / North Africa |
|
331 |
|
395 |
|
628 |
|
740 |
| ||||||||
|
Chemical |
|
93 |
|
87 |
|
182 |
|
172 |
| ||||||||
|
Midstream, marketing and other |
|
54 |
|
52 |
|
108 |
|
102 |
| ||||||||
|
Corporate |
|
8 |
|
10 |
|
16 |
|
19 |
| ||||||||
|
|
TOTAL |
$ |
1,317 |
|
$ |
1,303 |
|
$ |
2,583 |
|
$ |
2,562 |
| ||||
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
|
|
|
30-Jun-14 |
|
31-Dec-13 |
| ||||||||
|
CAPITALIZATION |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Long-Term Debt (including current maturities) |
|
|
$ |
6,835 |
|
|
|
|
$ |
6,939 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
EQUITY |
|
|
$ |
43,812 |
|
|
|
|
$ |
43,372 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
Total Debt To Total Capitalization |
|
|
13 |
% |
|
|
|
14 |
% |
|
| ||
Exhibit 99.4
|
|
Occidental Petroleum Corporation Second Quarter 2014 Earnings Conference Call July 31, 2014 |
|
|
Second Quarter 2014 Earnings – Highlights • Domestic oil production (Bbl/d) • Total company production (boe/d) • Core earnings* • Core diluted EPS* • 1H14 CFFO before WC • Cash balance @ 6/30/2014 • 1H14 Shares repurchased *See Significant Items Affecting Earnings in the Investor Relations Supplemental Schedules. Results 278,000 742,000 $1.4 billion $1.79 $5.7 billion $2.4 billion 16.6 million |
|
|
$2,118 $8 ($42) $2,104 $75 1Q14 Sales Price Sales Volumes Higher Operating Costs All Others 2Q14 2Q14 vs. 1Q14 ($ in millions) Core Results • 2Q14 $2.1 B • 1Q14 2.1 B • 2Q13 2.1 B Second Quarter 2014 Earnings – Oil & Gas Segment Pre-Tax Earnings ($27) PRE-TAX |
|
|
Second Quarter Earnings – Domestic versus International Operations • For the six months year-over-year comparison, domestic operations after-tax income was $1.4 billion an increase of ~13%. In the same six-month period, international operations core income was $1.1 billion, a decrease of ~4%. 1H13 Domestic YoY International YoY 1H14 Domestic Oil & Gas After- Tax Earnings $1.2 bn International Oil & Gas After-Tax Earnings $1.2 bn Domestic Oil & Gas After- Tax Earnings $1.4 bn International Oil & Gas After-Tax Earnings $1.1 bn Domestic Oil & Gas After- Tax Earnings +13% YoY International Oil & Gas After-Tax Earnings (4%) YoY $2.4 bn +$152 mm ($49) mm $2.5 bn |
|
|
1Q14 Permian Other Domestic Colombia Outages Other MENA growth 2Q14 Second Quarter 2014 Earnings – Oil and Gas Total Company Production 736 (10) 4 4 Company-wide Oil & Gas Production (mboe/d) 727 11 Note: Excludes Hugoton production |
|
|
2Q13 1Q14 Oil Natural Gas & NGLs 2Q14 Second Quarter 2014 Earnings – Oil and Gas Domestic Production 451 (0) 456 8 464 Domestic Oil & Gas Production (mboe/d) Note: Excludes Hugoton production Domestic oil production grew 3% on a sequential quarter-over-quarter basis |
|
|
Second Quarter 2014 Earnings – Oil & Gas Realized Prices Worldwide Oil ($/bbl) Worldwide NGLs ($/bbl) Domestic Nat. Gas ($/mmbtu) WTI NYMEX Price Sensitivity Pre-tax Income Impact (Quarter) Oil +/- $1/bbl = +/- $37 mm NGL +/- $1/bbl = +/- $7 mm U.S. Nat Gas +/- $0.50/mmbtu = +/- $25 mm Brent Realized Prices Benchmark Prices * As a % of NYMEX 2Q14 $100.38 $42.82 $4.28 $102.99 $109.77 $4.55 WTI % 97% 42% 94%* Brent % 91% 39% 1Q14 $99.00 $46.05 $4.57 $98.68 $107.90 $4.66 WTI % 100% 47% 98%* Brent % 92% 43% 2Q13 $97.91 $38.78 $3.82 $94.22 $103.35 $4.00 WTI % 104% 41% 95%* Brent % 95% 38% |
|
|
Second Quarter 2013 Earnings – Oil & Gas Production Costs FY13 1Q14 2Q14 YTD14 $13.76 $14.33 $14.68 $14.51 Production Costs ($/boe) • 2Q14 Exploration expense was $54 million Taxes other than Income ($/boe) FY13 1Q14 2Q14 YTD14 $2.57 $2.94 $2.83 $2.88 |
|
|
$136 $24 ($2) ($17) ($8) $133 1Q14 Sales Price Sales Volume / Mix Operations / Manufacturing All Others 2Q14 2Q14 vs. 1Q14 ($ in millions) Guidance 3Q14 expected to be ~$150 mm. Second Quarter 2014 Earnings – Chemical Segment Core Earnings Core Results • 2Q14 $ 133 mm • 1Q14 136 mm • 2Q13 144 mm PRE-TAX |
|
|
Second Quarter 2014 Earnings – Midstream, Marketing & Other Segment Earnings 2Q14 vs. 1Q14 $170 $43 ($9) $17 ($2) $219 1Q14 Marketing & Trading Gas Processing Pipelines All Others 2Q14 ($ in millions) Core Results • 2Q14 $219 mm • 1Q14 $170 mm • 2Q13 $48 mm PRE-TAX |
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Second Quarter 2014 Earnings – 1H 2014 Cash Flow $9,075 ($1,100) ($500) $1,350 Available Cash Before Working Capital Changes Working Capital Changes CapEx BridgeTex & Al Hosn Capex Dividends Share Repurchases Acquisitions & Other Hugoton Asset Sale Ending Cash Balance 6/30/14 1H 2014 ($ in millions) CFFO before Working Capital changes $5,675 ($4,200) Beginning Cash $3,400 12/31/13 $2,375 1H 14 Debt / Capital 13% Return on Equity* 13% Return on Capital Employed* 11% * Note: Annualized; See attached GAAP reconciliation. ($100) ($1,600) ($550) • During 1H14, CFFO declined by ~$650 million compared to 1H13. 1H14 included a tax payment related to the gain on the sale of PAGP units and 1H13 included the collection of a tax receivable. On a normalized basis, CFFO during both periods would have been ~$5.8 billion. |
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Second Quarter 2014 Earnings – 3Q14 & FY 2014 Guidance Summary Oil & Gas Segment * • Domestic 3Q 2014 Production* - Oil – 6,000 - 8,000 bbls/d growth. - NGLs – modest increase. – Natural gas – modest decline. – Total – 5,000 – 7,000 boe/d growth. • International 3Q 2014 Production – Both production and sales volumes expected to increase 10,000 boe/d. – Assumes current prices and normalized operations in Colombia. • Total 3Q 2014 Production* - 15,000 - 17,000 boe/d sequentially, or at an annualized rate of ~8% • Exploration expense: $100 mm in 3Q14. • Production Costs: ~$14.50 / boe for FY 2014. • DD&A: ~$17.50 / boe for FY 2014. Price Sensitivity Pre-tax Income Impact (Quarter) Oil +/- $1/bbl = +/- $37 mm NGL +/- $1/bbl = +/- $7 mm U.S. Nat Gas +/- $0.10/mmbtu = +/- $5 mm Chemical Segment • ~$150 mm pre-tax income in 3Q14. Corporate • 3Q14 Income tax rate: 40% * Adjusted for the sale of Hugoton assets. |
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Second Quarter 2014 Earnings – California Resources Spin-Off Update • Recently announced new executive management team for California Resources Corporation (“CRC”). – Executive Chairman – Bill Albrecht – President & CEO – Todd Stevens – CFO – Mark Smith • Filed initial Form 10 in 2Q14 and have already responded to comments received from the SEC. • CRC has initiated steps to secure debt financing, expected completion in 3Q14. – Anticipate ~$6 billion of debt financing. • Cash proceeds transferred to Oxy via tax-free dividend shortly prior to spin-off, expected to occur in 4Q14. – Upon spin-off, Oxy will retain 19.9% ownership for a period lasting up to 18 months. – During that time period, Oxy intends to conduct an exchange offer for the remaining CRC shares, further reducing shares outstanding. Oxy Land Position Major Producing Basins CRC Fee / Lease Acreage Sacramento Basin San Joaquin Basin Ventura Basin Los Angeles Basin |
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Second Quarter 2014 Earnings – California Resources Update • 10% oil production growth • Generated ~$1.2 billion of cash flow from operations in 1H 2014 • Expect the CRC management team to present more detailed review of the business and its growth strategy to investors during 4Q14 88 2Q13 2Q14 97 Oil Production (Mbo/d) ~10% Y/Y Growth |
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Second Quarter 2014 Earnings – Oxy Executive Leadership Team President and Chief Executive Officer Stephen I. Chazen Chris Stavros EVP & CFO At Oxy 9 years Prior roles: VP Investor Relations & Treasurer VP Investor Relations Cynthia Walker EVP Strategy & Development At Oxy 2 years Prior roles: EVP & CFO Goldman Sachs – Mnging. Director Glenn Vangolen EVP Business Support At Oxy 33 years Prior roles: SVP Middle East; VP International Bus. Development Marcia Backus VP, General Counsel & Corp. Secretary At Oxy ~ 2 years Prior roles: Vinson & Elkins – Partner; Co-Head Corporate Dept. Sandy Lowe President – Oil & Gas International At Oxy 31 years Prior roles: EVP Int’l Prod & Engin’rg OOG; EVP & Gen. Mgr. Dolphin Energy Vicki Hollub President - Oil & Gas Americas At Oxy 33 years Prior roles: EVP US Ops.OOG EVP Cal. Ops., Pres. & GM Oxy Permian CO2 Willie Chiang EVP Operations At Oxy 2 years Prior roles: ConocoPhillips – Sr. VP Refining, Mktg, Transprt. & Commercial. |
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000606 Oil and Gas Focus Areas MENA Latin America Second Quarter 2014 Earnings – Remaining Occidental Business • Leading position in the Permian Basin. • Permian Resources is a growth driver. • Al Hosn Project, Dolphin, and a smaller size in rest of MENA. • Additional opportunities for growth with partner countries. • Highest margin operations in Colombia. • Additional opportunities for moderate growth with partner. Oxy will be positioned to grow • Dividend stream • Earnings per share • Cash Flow per share • Oil production • ROCE OxyChem High FCF, moderate growth business. Oxy Midstream Integrated pipeline and marketing business to maximize realizations. Oxy USA.jpgUnited States |
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Second Quarter 2014 Earnings – Permian . Expect improved margins through drilling efficiencies, reduced well costs and enhanced oil price realizations 207 64 120+ 2011 2012 2013 1Q14 2Q14 2015E 2016E (mboe/d) Permian EOR Permian Resources 211 Production 150 198 57 48 212 67 145 Permian Resources • 7% production growth in 2Q14 • Expect well over 20% annual oil production growth with acceleration of horizontal drilling program 72 217 145 147 150
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Second Quarter 2014 Earnings – Earnings from Production Growth and Projects ~$4.6 ~$5.6 ~$0.1 ~$0.5 ~$1.1 2013 Core California 2013 OXY Pro Forma * Domestic Production Growth Bridge-Tex Al Hosn • Domestic production growth and start-up of the BridgeTex and Al Hosn projects are expected to offset earnings from the California separation. After-tax earnings ($ in bln) ~$0.4 Domestic Production Growth and Project Start-Ups expected in 2014 - 2015 $6.95 / share 805 mm shares outstanding * Excludes after-tax income from California and our interest in PAGP.
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Second Quarter 2014 Earnings – Strategic Initiative Update • We will continue to focus on raising cash from our lower growth and lower margin assets. • In the Middle East, we continue to make progress in negotiations with our partners and expect to reduce our exposure to the region. – Our goal is to improve the businesses’ ability to grow profitably. – Over time, we expect to achieve a similar balance in our asset mix, with at least 60% of our oil and gas production coming from the United States. • We are continuing to explore strategic alternatives for our assets in the Piceance and Williston basins. • We expect to monetize our remaining interest in the General Partner of Plains All American Pipeline which is valued at approximately $4.5 billion, as well as possibly some other midstream assets when market conditions warrant. California Spin-Off 156 Mboe/d – 2Q14 ~$6 bn funded debt Hugoton Sale 18 Mboe/d – 1Q14 $1.3 bn pre-tax proceeds PAGP IPO $1.4 bn pre-tax proceeds 25% remaining interest Strategic Initiatives
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Second Quarter 2014 Earnings – Capitalization • We have repurchased more than 26 mm shares since the announcement of our strategic initiatives in 4Q13. • 20.5 million remaining shares remain available under the current repurchase program. Shares Outstanding (mm) FY2013 2Q14 Weighted Average Basic 804.1 782.6 Weighted Average Diluted 804.6 782.9 Basic Shares Outstanding 795.2 779.1 Capitalization ($mm) 12/31/13 6/30/14 Long-Term Debt $ 6,939 $ 6,835 Equity $43,372 $43,812 Total Debt to Total Capitalization 14% 13%
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Second Quarter 2014 Earnings – Share Repurchases ~675 mm 20.5 mm ~60 mm 25 mm 779 mm Basic Shares Outstanding as of 6/30/2014 Current Repurchase Plan California Separation PAGP Monetization Pro Forma Basic Shares Outstanding • Expect to further reduce our share count by ~60 mm through the cash dividend from the California separation and by ~25 mm shares from the monetization of our remaining interest in PAGP. • Coupled with the buyback of the 20.5 million shares in our current repurchase program, we should be able to reduce our current share count by more than 100 mm shares, ~13% of our currently outstanding shares. • Most of this share repurchase activity will occur after the spin-off of CRC. Does not include impact from sale of portion of MENA or exchange of remaining interest in the California business but does reflect debt reduction
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~12% ~15% 2013 2015 Exit Return on Capital Employed Second Quarter 2014 Earnings – Improving ROCE • Improved capital efficiency and operating cost structure • Long-lead-time project start-ups: – Al Hosn Sour Gas – BridgeTex Pipeline • Separation of our California business will provide a natural uplift to ROCE
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Second Quarter 2014 Earnings – Permian Resources Summary Total Production (boe/d) 72,000 Oil Production (bbls/d) vs. 1Q-2014 vs. 1Q-2013 40,000 8% Increase 21% Increase Well Cost vs. 2013 vs. 2012 10% Reduction 31% Reduction Capital Expenditures $490MM Active Rigs 24 (17 Hz) Wells Drilled 87 (42 Hz) Horizontal Wells 14 19 38 25 42 54 20 23 54 0 10 20 30 40 50 60 1Q14 2Q14 3Q14 Carry-In Drilled Online Growing production and increasing efficiency
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Second Quarter 2014 Earnings – Permian Resources Optimizing Designs to Unlock Primary Reserves • Deep understanding of key geologic parameters. – Porosity, Saturation, Brittleness, Fracture Distribution. – Total Organic Content, mineral model and geochemical parameters (kerogen type and quality). – Rock properties, fractures, rock/fluid compatibility, proppant embedment. • Built a calibrated petrophysical model based on advanced logging suites and physical rock data. • Identified potential benches and landing zones for appraisal. Tremendous potential with 2 million acres and 7,000 drilling locations identified Wolfcamp A: Tier 1 target 300’ of continuous pay High TOC, S1 & S2 Good brittleness Laterally present across acreage Commercial production across acreage BVW Sw TOC Brit. Wolfcamp Section
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Second Quarter 2014 Earnings – Permian Resources Optimizing Designs to Unlock Primary Reserves • 500 ft 500 ft Map View View Looking South View Looking East Ryman_Investors.jpg• Conducting extensive appraisal program across our acreage position. • Testing and optimizing various field development and well design alternatives (bench; lateral ; well spacing; fracture geometry; completion design). • Quickly advancing toward optimal designs in Midland Basin (Wolfcamp A/B) and Delaware (Wolfcamp A/B/C). . SCR 2818H 1,102 BOEPD (Peak) . Eagle State 28 5H 1,622 BOEPD (Peak) 1,118 BOEPD (30 Day) Rapidly progressing characterization and initiating accelerated development at Barilla Draw. Second Quarter 2014 Earnings – Permian Resources Optimizing Designs to Unlock Primary Reserves Wolfbone Microseismic & FMI Log |
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Second Quarter 2014 Earnings – Permian Resources Efficiently Accelerating Development • Ordered long lead time equipment. • Secured favorable commercial terms by leveraging our position across our EOR and Resources businesses. . Drilling Rigs Stimulation . Casing / Tubing Cementing . Directional Artificial Lift • Rig contracts and options to ensure our ability to grow to 54 “Fit for Purpose” Rigs. • Utilizing four dedicated 24-hr frac spreads with plans to grow capacity as accelerate development Secured core resources required to execute accelerated development 19 27 38 47 7 7 2013 2014 2015 2016 Drilling Rig Exit Rate Planned Additional Capacity
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• Phase 1: Vertical Rig . Efficient vertical drilling (0 to ~ 9000ft) . Drills first 2 hole sections – traditional design . Fast moving rigs (< 1 day) . Lower cost spread rate . Fit-for-purpose to vertical drilling needs • Phase 2: High Capacity Directional Drilling Rig . Drills complex curve and lateral sections . Utilizes dedicated directional drillers + tools . Higher frequency of same tasks . Same task every 2-3 weeks Vertical Rig (Surface & Intermediate) Directional Rig (Curve & Lateral) Horizontal Section: 5000’ – ? Rig move #1 Rig move #2 Achieved 24% reduction in drilling cost at South Curtis Ranch Second Quarter 2014 Earnings – Permian Resources Batch Drilling
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3 Fresh Water Ponds Phase 1 Trunk Line Phase 2 Trunk Line West Merchant Water Distribution System •3 Fresh water ponds (Phase 1) .Total capacity – 1.1 MM BBLs •Water distribution trunk line .Pressurized 4 mile 16” polyethylene system with delivery rate of 90,000 BWPD •Pumps - 1 submersible pump per pond New Ponds Trunk Line Barilla Draw Water Distribution System • New ponds - 6 produced and 3 fresh water ponds with 300,000 BBL capacity each • Water Distribution Trunk Line . Pressurized 52 mile 12” polyethylene system with delivery rate of 50,000 BWPD+ • Reduced water handling costs by 75% Expanding infrastructure to support acceleration and reduce costs Second Quarter 2014 Earnings – Permian Resources Infrastructure
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Identified over 2,100 Horizontal Locations Completed 7 Wolfcamp A/B wells that achieved average peak production of 1,160 boe/d in Q2 30-Day Rate (boe/d) Peak Rate (boe/d) Eagle State 28 5H Average to Date . 15 Horizontal Wells Drilled in 2014 27 Horizontal Wells Planned for 2nd Half 2014 . . Expect Well Cost to decrease to $8.1 mm by year end . Barilla Draw Oxy Acreage Eagle State 28 5H . 10 Horizontal Wells Drilled in Q2 Second Quarter 2014 Earnings – Permian Resources Texas Delaware 1,118 1,622 834 1,175 Wolfcamp A / B
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Identified over 2,230 Horizontal Locations SCR 2818 Achieved Peak Rate of 1,102 boepd . 24 Horizontal Wells Drilled . 14 Horizontal Wells Drilled in Q2 55 Horizontal Wells Planned for 2nd Half 2014 . . Decreased Drill Time to 27 Days . $7.0 Million Drill and Complete Well Cost South Curtis Ranch (SCR) Dora Roberts (DRRU) Mabee Ranch St. Andrews Merchant Powell Ranch Guitar . Oxy Acreage SCR 2818H Second Quarter 2014 Earnings – Permian Resources Midland Basin 30-Day Rate (boe/d) Peak Rate (boe/d) SCR 2818 Average to Date 531 1,102 500 752
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48 57 67 72 120+ 2011 2012 2013 1Q14 2Q14 2015E 2016E 31 Production (Mboe/d) Raising 2014 growth expectation to 15% to 18% 64 •Strong 2014 performance •Increasing capital by $200MM to $1.9MM •Similar well count with higher percentage of horizontal wells •Production increase from incremental capital will primarily impact 2015 •On track to meet 2016 production target of 120+MBOED
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Second Quarter 2014 Earnings – Midstream Focus and Advantage • Oxy has a unique competitive advantage and scale in the Permian Basin to drive key strategies . Largest producer . Significant midstream/infrastructure owner and operator . Large marketing presence • Role is to maximize Realized Value for Oxy Production by . Ensuring access to markets . Optimizing existing assets . Building out key assets across the value chain
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Second Quarter 2014 Earnings – Oxy Domestic Midstream Assets Crude Production . Petrochemicals . Refining . Export Markets Gas Production Downstream Upstream NGL Production 718 MMCF/d 72 MB/d 278 MB/d Total Production 470 MBoe/d Marketing Group & Plains All American Investment Power Generation • 1,800 MW Processing 3.1 BCF/d • Gas plants • CO2 plants Midstream OIEC LPG Terminal • 60-100 MB/d OIEC Crude Terminal • 200-300 MB/d • 2-4MMB storage BridgeTex (50%) • 300 MB/d • 450 miles CPL Pipeline/Gathering • ~2,900 miles • 100+ Truck stations • Storage ~6MMB
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Second Quarter 2014 Earnings – Key Oxy Permian Gathering and Takeaway 34 Permian Basin Plays_r2PPT_Extent_NoLabels.jpgCushing Houston Corpus Christi Central/ Midland Basins Southeast New Mexico / Delaware Basins Midland- South Colorado City Slaughter Owned 3rd Party Three key takeaway points access multiple markets
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Second Quarter 2014 Earnings – Takeaway Capacity Impact on Price Rapid production growth leading infrastructure build out Adequate Constrained Sun Longhorn Cactus Bridge Tex 60 mbpd / 2Q12 300 mbpd / 3Q14 275 mbpd / 2Q13 200 mbpd / 2Q15 35 Midland/LLS Diffs YTD2014 ($10.30) 2H2013 ($5.84)
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OxyChem Plant Second Quarter 2014 Earnings – Oxy Ingleside Energy Center Provides flexibility and avoids congested ship channel 36 • Terminaling - LPG: 60-100 MB/d (2Q 2015) - Crude/Condensate: 200-300 MB/d (1H 2016) - Storage: 2–4 MMB • Future processing options
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Second Quarter 2014 Earnings – Permian Crude Logistics & Marketing Value - 0.50 1.00 1.50 2.00 2.50 3.00 3.50 4.00 2012 2013 2014 (Est) 2015+ $/BBL ~$2+/BBL – Advantaged Take- away Capacity $1.50/bbl avg premium Achieved ~$1.50/bbl* premium vs. realized prices of select Permian producers. Advantaged long-term take away capacity to USGC at $2+/bbl* in 2015 and beyond. *Equity adjusted production basis
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Second Quarter 2014 Earnings Conference Call Q&A
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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. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations, including any delay of, or other negative developments affecting, the spin-off of California Resources Corporation; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of 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 I, Item 1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com.