Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q2 2004 Earnings Presentation
18 slides from Occidental Petroleum's earnings presentation, Oct 31, 2004
Slide 1: 2004 Second Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Second Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 814 $ 814 Chemical 85 85 Corporate Interest expense, net - debt and trust preferred distributions (60) (60) O
Slide 2: 2003 Second Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2003 Second Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 637 $ 637 Chemical 43 43 Corporate Interest expense, net - debt and trust preferred distributions (64) (64) O
Slide 3: 2004 First Six Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 First Six Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,564 $ 1,564 Chemical 135 135 Corporate Interest expense, net - debt and trust preferred distributions (12
Slide 4: 2003 First Six Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2003 First Six Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,364 $ 1,364 Chemical 78 78 Corporate Interest expense, net - debt and trust preferred distributions (199)
Slide 5: Items Affecting Comparability of Core Earnings Between Periods
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Items Affecting Comparability of Core Earnings Between Periods Pre-tax Income / (Expense) Second Quarter Six Months 2004 2003 2004 2003 Oil & Gas Gain on sale of GOM assets (a) - 14 - 14 Chemicals Reorganizations / severance - (15) - (15
Slide 6: Worldwide Effective Tax Rate
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Worldwide Effective Tax Rate QUARTERLY YEAR TO-DATE 2004 2004 2003 2004 2003 REPORTED INCOME QTR 2 QTR 1 QTR 2 6 Months 6 Months Oil & Gas (a) 985 919 757 1,904 1,637 Chemicals 88 52 46 140 83 Corporate & other (109) (123) (139) (232) (3
Slide 7: 2004 Second Quarter Net Income: Reported and Core Comparison vs First Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Second Quarter Net Income (Loss) Reported Income Comparison Second First Quarter Quarter 2004 2004 B / (W) Oil & Gas $ 814 $ 750 $ 64 Chemical 85 50 35 Corporate Interest expense, net - debt and trust preferred distributions (60) (6
Slide 8: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2004 2nd Quarter $ 814 2004 1st Quarter 750 $ 64 Price Variance $ 88 Volume/Mix Variance (8) Exploration Expense Variance 14 All Others (30) TOTAL VARIANCE $ 64 OCCIDENTAL PETROLEUM
Slide 9: 2004 Second Quarter Net Income: Comparison vs Second Quarter 2003
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Second Quarter Net Income (Loss) Reported Income Comparison Second Second Quarter Quarter 2004 2003 B / (W) Oil & Gas $ 814 $ 637 $ 177 Chemical 85 43 42 Corporate Interest expense, net - debt and trust preferred distributions (60)
Slide 10: Core Earnings Variance Analysis vs 2003 Second Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2004 2nd Quarter $ 814 2003 2nd Quarter 637 $ 177 Price Variance $ 287 Volume/Mix Variance 7 Exploration Expense Variance (11) All Others (106) TOTAL VARIANCE $ 177 OCCIDENTAL PETROL
Slide 11: Summary of Operating Statistics: Net Production per Day
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months 2004 2003 2004 2003 NET PRODUCTION PER DAY: United States Crude Oil and Liquids (MBL) California 78 81 78 79 Permian 156 151 155 147 Horn Mountain 23 19 23 16 Hugoton 3 3 3 4 Tota
Slide 12: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months 2004 2003 2004 2003 OIL & GAS: PRICES United States Crude Oil ($/BBL) 35.44 26.89 34.02 29.15 Natural gas ($/MCF) 4.90 5.46 4.95 4.89 Latin America Crude Oil ($/BBL) 30.60 25.01 2
Slide 13: Chemicals: Volumes, Prices and Chlorine Commentary
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CHEMICALS Volume (M Tons, except PVC Resins) Second Quarter Six Months MAJOR PRODUCTS 2004 2003 2004 2003 Chlorine 740 664 1,446 1,350 Caustic 819 719 1,551 1,356 Ethylene Dichloride 100 108 222 239 PVC Resins (millions of pounds) 1,090
Slide 14: Caustic Commentary
Investor Relations Supplemental Schedules seasonal demand for chlorine is expected to further tighten the supply/demand balance in the 3rd quarter. CAUSTIC OxyChem Commentary • Caustic soda demand continued to strengthen with 2nd quarter sales improving over 1st quarter volumes due to strong demand
Slide 15: PVC/VCM Commentary
Investor Relations Supplemental Schedules Influencing Factors: Reduced EDC demand could result from VCM production curtailments in the Far East if the profit margins for converting EDC to VCM face downward pressure due to high ethylene costs. VCM prices are expected to limit EDC prices in the 3rd qu
Slide 16: Summary of Operating Statistics: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months Capital Expenditures ($MM) 2004 2003 2004 2003 Oil & Gas California $ 83 $ 53 $ 144 $ 97 Permian 63 60 125 115 Other - U.S. 8 12 12 26 Latin America 63 30 83 37 Middle East 191 12
Slide 17: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 30-Jun-04 31-Dec-03 CAPITALIZATION Oxy Long-Term Debt (including current maturities) $ 3,970 $ 4,016 Trust Preferred Securities - 453 Subsidiary Preferred Stock 75 75 Others 26 26 Total Debt $ 4,071 $ 4,570 EQUITY
Slide 18: Forward-looking statements
Investor Relations Supplemental Schedules Statements in this presentation that contain words such as “will” or “expect”, or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to di