Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Vintage Petroleum — Merger or Acquisition (October 2005)
17 slides from Occidental Petroleum's merger presentation, Oct 20, 2005
Slide 1: Occidental Petroleum Corporation
Occidental Petroleum Corporation Todd Stevens Vice President, Acquisitions & Corporate Finance Occidental Petroleum Corporation October 19, 2005
Slide 2: Additional Information and Where to Find It
Occidental Petroleum Corporation October 19, 2005 Filed pursuant to Rule 425 and deemed filed pursuant to Rule 14a-12 Filing Person: Occidental Petroleum Corporation Subject Company: Vintage Petroleum, Inc. File Number: 1-10578 Additional Information and Where to Find It Oxy will file a Form S-4, Vi
Slide 3: Forward-Looking Statements
Occidental Petroleum Corporation October 19, 2005 Forward-Looking Statements The matters set forth in this Presentation, including statements as to the expected benefits of the acquisition such as efficiencies, cost savings, financial strength, and the competitive ability and position of the combine
Slide 4: Occidental Petroleum Corporation
Occidental Petroleum Corporation 4th largest U.S. oil and gas company based on market capitalization One the world’s largest manufacturers of basic chemicals, vinyls and specialty chemicals. One of the Top 30 oil and natural gas marketers in North America Occidental Oil & Gas Corporation Occidental
Slide 5: Occidental Petroleum Corporation
Occidental Petroleum Corporation Equity Market Capitalization ~$30 billion as of 10/17/05 Proven Reserves of 2.5 billion barrels oil equivalent (12/31/04) 2004 Results: WTI = $41.40 per bbl Net Income $2.6 billion Cash From Operations $3.9 billion Return on Equity 27.8% Return on Capital Employed 20
Slide 6: Oxy Strategy
What’s Been Oxy Strategy: Focused Operations Focused Value Creation Disciplined Financial Philosophy
Slide 7: Focused Value Creation Strategy
Focused Value Creation Strategy Maintain Strong Balance Sheet Disciplined Capital Expenditure Program Selective Acquisitions Moderate Predictable Reserve/Production Growth Review Dividend Policy Annually
Slide 8: Breakdown of Corporate Strategy
Focus on large, “legacy” oil and gas assets in U.S., Middle East and Latin America Harvest cash for reinvestment Maintain strong balance sheet Oil and Gas Chemicals Balance Sheet Breakdown of Corporate Strategy
Slide 9: Chemical Strategy/Highlights
Chemical Strategy/Highlights Generate Cash Flow In Excess of Capital Expenditures Through the Business Cycle Primary Mission of Oxy’s Chemicals Business Generated Nearly $3 Billion of Cash Flow After Capital During the Last 10 Years Generated Over $500 Million of Cash Flow After Capital in 2004
Slide 10: Oil & Gas Business Strategy
Oil & Gas Business Strategy Exploration Enhanced Oil Recovery Acquisitions Create value throughout the oil & gas business cycle through:
Slide 11: Worldwide Operations
Worldwide Operations Long Beach Permian Basin Horn Mountain Hugoton Elk Hills Colombia Ecuador Libya Russia Pakistan Oman U.A.E . Yemen Qatar . .
Slide 12: Worldwide Production
Worldwide Production 2001 2002 2003 2004 2005 Exit 515 476 566 600 547 Thousand BOE/Day U.S. Middle East Latin America Other 315 326 344 338 88 93 93 100 79 55 48 31 42 48 55 49
Slide 13: Finding & Development Costs
Finding & Development Costs BP OXY XOM CHV KMG BR UCL APA APC COP DVN AHC 5.42 5.71 6.77 6.95 7.00 8.20 8.58 15.99 9.72 9.35 17.18 6.05 3-Year Average 2002-2004 MRO Data Source: Merrill Lynch Equity Research 5.00
Slide 14: Total Shareholder Return
Total Shareholder Return (Percent) 31 11 41 14 11 140 S&P 500 Index 5 15 Dow Jones S&P 500 Oil & Gas Index Oxy 2004 2002 - 2004 Data Source: Bloomberg
Slide 15: Return On Capital Employed
20 Return On Capital Employed (Percent) 15 15 11 15 12 11 9 2004 2002 - 2004 2000 - 2004 1995 - 2004 S&P 500 Oil & Gas Index Oxy Data Source: Bloomberg
Slide 16: 2004 Safety Performance
2004 Safety Performance Illness & Injury Rates
Slide 17: Oxy Internet Website
Oxy Internet Website http://www.oxy.com About Oxy Our Business Investor Relations Social Responsibility Working at Oxy Press Room
Vintage Petroleum — Merger or Acquisition (October 2005) on 6ix