Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q1 2006 Earnings Presentation
17 slides from Occidental Petroleum's earnings presentation, Oct 15, 2006
Slide 1: 2006 First Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 First Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 2,002 $ 2,002 Chemical 248 248 Corporate Interest expense, net (29) (29) Other (73) (73) Taxes (932) (932) Inc
Slide 2: 2005 First Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 First Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,349 $ 1,349 Chemical 214 214 Corporate Interest expense, net (61) 10 Debt purchases (51) Other (51) (51) Tax
Slide 3: Items Affecting Comparability of Core Earnings Between Periods
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Items Affecting Comparability of Core Earnings Between Periods The item(s) below are included in core earnings but are shown in this table because they affect the comparability of core earnings between periods. Pre-tax Income / (Expense)
Slide 4: Worldwide Effective Tax Rate
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Worldwide Effective Tax Rate QUARTERLY 2006 2005 2005 REPORTED INCOME QTR 1 QTR 4 QTR 1 Oil & Gas (a) 2,002 1,859 1,349 Chemicals 248 165 214 Corporate & other (102) (112) (112) Pre-tax income 2,148 1,912 1,451 Income tax expense Federal
Slide 5: 2006 First Quarter Net Income: Reported and Core Comparison vs Fourth Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 First Quarter Net Income (Loss) Reported Income Comparison First Fourth Quarter Quarter 2006 2005 B / (W) Oil & Gas $ 2,002 $ 1,859 $ 143 Chemical 248 165 83 Corporate Interest expense, net (29) (23) (6) Other (73) (89) 16 Taxes (93
Slide 6: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2006 1st Quarter $ 2,002 2005 4th Quarter 1,868 $ 134 Sales Price $ 92 Sales Volume/Mix 62 Exploration Expense 53 All Others * (73) TOTAL VARIANCE $ 134 *DD&A rate increase (30) and
Slide 7: 2006 First Quarter Net Income: Reported and Core Comparison vs First Quarter 2005
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 First Quarter Net Income (Loss) Reported Income Comparison First First Quarter Quarter 2006 2005 B / (W) Oil & Gas $ 2,002 $ 1,349 $ 653 Chemical 248 214 34 Corporate Interest expense, net (29) (61) 32 Other (73) (51) (22) Taxes (93
Slide 8: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2006 1st Quarter $ 2,002 2005 1st Quarter 1,349 $ 653 Sales Price $ 700 Sales Volume/Mix 198 Exploration Expense (24) All Others * (221) TOTAL VARIANCE $ 653 *DD&A rate increase (68)
Slide 9: Summary of Operating Statistics: Net Production per Day
Investor Relations Supplemental Schedules O C C ID EN T A L P ET R O LEU M SU M M A R Y O F O PE R A TIN G STA TISTIC S F ir s t Q u a r te r 2006 2005 N ET P R O D U C TIO N P ER D A Y : U n it e d S t a t e s C r u d e O il a n d L iq u id s ( M B L ) C a lifo rn ia 82 77 P e rm ia n 166 148 H o r
Slide 10: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS First Quarter 2006 2005 OIL & GAS: PRICES United States Crude Oil ($/BBL) 55.25 44.24 Natural gas ($/MCF) 8.36 5.94 Latin America Crude Oil ($/BBL) 48.84 39.87 Natural Gas ($/MCF) 1.76 - Middle East / Nort
Slide 11: Chemicals Volume and Prices; Chlorine Commentary
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CHEMICALS Volume (M Tons, except PVC Resins) First Quarter MAJOR PRODUCTS 2006 2005 Chlorine 845 705 Caustic soda 771 714 Ethylene Dichloride 117 130 PVC Resins (millions of pounds) 949 1,025 CHEMICALS Prices (Index) First Quarter MAJOR
Slide 12: Caustic Soda Commentary and Influencing Factors
Investor Relations Supplemental Schedules • OxyChem announced a $25 per ton price increase effective March 22 nd or as contract P P terms permit. Other U.S. chlor-alkali producers have announced similar increases. This increase is in response to a tightening supply/demand balance expected in the 2 n
Slide 13: PVC/VCM Commentary
Investor Relations Supplemental Schedules • EDC prices ended the 1 st quarter at $310-$330 per metric ton CFR Asia and are P P expected to further decline in April. • Balances remained long in the 1 st quarter as Asian PVC demand was weaker than P P anticipated. Producers opted to slow PVC and VCM p
Slide 14: PVC Influencing Factors
Investor Relations Supplemental Schedules Influencing Factors: U PVC demand was seasonally slow in the 1 st quarter. It is believed that the lackluster P P demand is a result of anticipated lower domestic PVC pricing due to sharp declines in feedstock costs. Vinyls demand is expected to improve in t
Slide 15: Summary of Operating Statistics: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS First Quarter Capital Expenditures ($MM) 2006 2005 Oil & Gas California $ 103 $ 82 Permian 127 63 Other - U.S. 67 29 Latin America 56 51 Middle East / North Africa 209 273 Other Eastern Hemisphere 6 8 Chem
Slide 16: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 31-Mar-06 31-Dec-05 CAPITALIZATION Current Maturities of Long-Term Debt $ 255 $ 46 Long-Term Debt (including current maturities) 3,273 2,873 Subsidiary Preferred Stock 75 75 Others 25 25 Total Debt $ 3,628 $ 3,019
Slide 17: Forward-Looking Statements and Non-GAAP Notice
Investor Relations Supplemental Schedules See the investor relations supplemental schedules for the reconciliation of non-GAAP items. Statements in this presentation that contain words such as "will", "expect" or "estimate", or otherwise relate to the future, are forward-looking and involve risks an