Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q4 2024 Earnings Presentation
52 slides from Occidental Petroleum's earnings presentation, Feb 19, 2025
Slide 1: Fourth Quarter Earnings Conference Call
02.19.25 Fourth Quarter Earnings Conference Call
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental Petroleum Corporation’s (“Oc
Slide 3: Outline
3 OUTLINE 2024 Achievements Fourth Quarter Highlights Strategic Priorities Financials Closing Comments Marco Polo
Slide 4: 2024 Achievements
2024 ACHIEVEMENTS 4 Premier portfolio. Exceptional performance. Outstanding results. Operational Excellence Financial Strength Strategic Advancement • Achieved record annual U.S. oil • Generated $4.9 B of free cash flow • Closed CrownRock acquisition, adding production, driven by well performance Mi
Slide 5: U.S. Onshore Oil & Gas Update
2024 ACHIEVEMENTS 5 U.S. ONSHORE OIL & GAS UPDATE OXY EXTENDING U.S. ONSHORE WELL PERFORMANCE LEADERSHIP In Delaware Basin, 2024 wells delivered average 6-month cumulative oil production of ~178 Mbo – ~39% higher than industry average In DJ Basin, 2024 wells delivered average 6-month cumulative
Slide 6: Outline
6 OUTLINE 2024 Achievements Fourth Quarter Highlights Strategic Priorities Financials Closing Comments Marco Polo
Slide 7: Multi-Segment Outperformance Propels Strong Close to 2024
FOURTH QUARTER HIGHLIGHTS 7 MULTI-SEGMENT OUTPERFORMANCE PROPELS STRONG CLOSE TO 2024 Oil & Gas Midstream 1,463 +$104 MM Mboed Adjusted Pre-Tax Income Includes Record Quarterly Outperformance U.S. Production Financial Balance Sheet $1.4 B $4.5 B Free Cash Flow1 Completed Near-Term Debt Repayment Com
Slide 8: Outline
8 OUTLINE 2024 Achievements Fourth Quarter Highlights Strategic Priorities Financials Closing Comments DAC STRATOS Marco Polo
Slide 9: Focus in 2025
FOCUS IN 2025 9 Strategic Priorities Reflect Continuation of 2024 Momentum Deleveraging Major Operational & Sustainable Projects Excellence & Dividend Execution Innovation Growth • $1.2 B of announced divestitures • STRATOS on track for mid-year • Integrated teams combining addresses 2025 maturities
Slide 10: 2025 Focus on Continuing Deleveraging Momentum
DELIVERING ON 2025 FOCUS ON CONTINUING 10 DEBT REPAYMENT DELEVERAGING MOMENTUM COMMITMENTS $1.2 B Achieved $4.5 B near-term debt repayment target 7 months ahead $0.5 B $4.5 B of schedule Debt Repayments $4.0 B Proceeds from announced Permian and non-operated Rockies divestitures to be applied to
Slide 11: 2025 Focus on Advancing Major Projects
2025 FOCUS ON 11 ADVANCING MAJOR PROJECTS STRATOS ON TRACK FOR 2025 START-UP Initial Capacity: • Completed construction of Trains 1 & 2 in December 2024 • Central processing construction to be complete in 2Q25; commissioning of Trains 1 & 2 to begin in parallel • Start-up operations continuing into
Slide 12: 2025 Focus on Operational Excellence & Innovation
2025 FOCUS ON OPERATIONAL EXCELLENCE & INNOVATION 12 Blending technical expertise with a forward-thinking approach to maximize value Pushing technical limits in Relentless pursuit of Applied AI Center of Pioneering low carbon resource recovery operational improvements Excellence (ACE) technologies U
Slide 13: Driving Value Through CrownRock Integration
DRIVING VALUE THROUGH CROWNROCK INTEGRATION 13 Enhancing competitive positioning with expanded capabilities Best-of-best practices to provide meaningful CROWNROCK improvement on CrownRock assets in 2025 EXCEEDING EXPECTATIONS ◦ ~7% well cost improvement from 2024 +12 Mboed 4Q24 outperformance from o
Slide 14: Continuing Steady Investment Plan for 2025
2025 CAPITAL PLAN 14 CONTINUING STEADY INVESTMENT PLAN FOR 2025 Investing in short and mid-cycle assets for modest oil growth and full-cycle cash flow resilience $8.0 $0.2 $7.6 B $7.4 B $0.0 $7.4 B ($0.1) $6.0 Final full year spend for Battleground Reduced LCV modernization & spend expansion project
Slide 15: Outline
15 OUTLINE 2024 Achievements Fourth Quarter Highlights Strategic Priorities Financials Closing Comments Ingleside Marco Polo
Slide 16: Fourth Quarter 2024 Results
FINANCIALS 16 FOURTH QUARTER 2024 RESULTS Reported Production versus Mboed Reported Guidance Midpoint Reconciliation Adjusted diluted EPS1 $0.80 PERMIAN Higher uptime and OBO volumes in the +11 Reported diluted EPS2 $(0.32) Delaware and Midland Basins CFFO before working capital $3.1 B ROCKIES +5 St
Slide 17: First Quarter and Full-Year 2025 Guidance
FINANCIALS 17 FIRST QUARTER AND FULL-YEAR 2025 GUIDANCE OIL & GAS 1Q25 FY 2025 MIDSTREAM2 1Q25 FY 2025 Total Company Production (Mboed) 1,370 - 1,410 1,385 - 1,445 Pre-tax Income $(170) - $(70) MM $(250) - $(50) MM Permian Production (Mboed) 745 - 765 754 - 786 Midland - MEH Spread $ / bbl $0.30 - $
Slide 18: Outline
18 OUTLINE 2024 Achievements Fourth Quarter Highlights Strategic Priorities Financials Closing Comments Marco Polo
Slide 19: Differentiated Value Proposition
DIFFERENTIATED VALUE PROPOSITION 19 Oxy’s premier diversified assets and distinguished operational capabilities create a runway for sustainable shareholder value accretion Operational Excellence High Quality Portfolio Low-Carbon Leadership Industry-leading performance Diversified asset base position
Slide 20: Appendix
Appendix
Slide 21: Appendix: Financial Information
21 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 22: 2025 Capital Plan
FINANCIAL INFORMATION Capital $ B 2024 Actuals 2025 Plan 22 2025 CAPITAL PLAN Oil & Gas Chemicals $5.3 $0.7 $5.8 - $6.0 $0.9 Sustaining Capital1 Midstream & Corporate $0.3 $0.3 Capital of ~$4.5 B to maintain Energy and Chemicals Subtotal $6.3 $7.0 - $7.2 production of 1,415 Mboed for 2025+ Low Carbo
Slide 23: Rockies Production Guidance
ROCKIES 1Q25 Production Guidance 23 PRODUCTION GUIDANCE 330 325 315 Mboed Boosting margins by 300 (21) 291 switching DJ Basin gas (13) 285 processing to ethane rejection mode, decreasing 270 reported production 4Q24 Production Gas Processing Impacts 4Q WI / Activity Level Impacts 1Q25 Production (Et
Slide 24: Cash Flow Priorities
2025 ONGOING FOCUS 24 CASH FLOW Maintain Production Base Preserve asset base integrity PRIORITIES and longevity Sustainable & Growing Dividend Apply technical and Through-the-cycle sustainability operational excellence to with long-term growth potential preserve and enhance premier asset base in CUR
Slide 25: Cash Flow Sensitivities
FINANCIAL INFORMATION 25 CASH FLOW SENSITIVITIES OIL & GAS MIDSTREAM & MARKETING Annualized cash flow changes ~$260 MM per $1.00 / Annualized cash flow changes ~$60 MM per $0.25 / bbl bbl change in oil prices change in Midland to MEH spread ◦ ~$240 MM per $1.00 / bbl change in WTI price ◦ ~35-da
Slide 26: Diluted Share Count Example
FINANCIAL INFORMATION 26 DILUTED SHARE COUNT EXAMPLE Basic Shares Outstanding + Incremental Diluted Shares = Total Diluted Outstanding Shares Incremental diluted shares include June 2020 warrants, Berkshire Hathaway warrants, and performance awards Treasury method assumes proceeds from exercised
Slide 27: Appendix: Oil & Gas Update
27 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 28: Domestic Onshore Activity Plan Update
OIL & GAS UPDATE 28 DOMESTIC ONSHORE ACTIVITY PLAN UPDATE PERMIAN 2025 ACTIVITY ROCKIES 2025 ACTIVITY ~$3.7 B ~24 Gross ~16 Net 500 - 550 ~$0.8 B ~3 Gross ~2 Net 100 - 120 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% OBO EOR OBO 100% Base Maint EOR EOR Base Maint PR Basin PR Basin
Slide 29: High-Quality U.S. Onshore Development Runway
HIGH-QUALITY OPERATED INVENTORY INCREASED DESPITE 29 U.S. ONSHORE DRILLING OR DIVESTING >1,200 LOCATIONS DEVELOPMENT RUNWAY <$60 Breakeven U.S. Onshore Unconventional Gross Operated Inventory 8,000 Deep inventory of high- Track record of improving inventory quality, low-breakeven breakeven through t
Slide 30: 2024 Reserves
OIL & GAS UPDATE 30 2024 RESERVES >570 MMboe Organic Reserves Additions Excluding Price Revisions 181% 3-Year Average Reserves Replacement Ratio $11.42 3-Year Average F&D Cost per BOE 573 4,612 3,982 326 217 (486) Organic All-In 69% Proved 112% RRR 230% RRR Developed $10.70 F&D $15.40 F&D 73% Liquid
Slide 31: Leading Delaware Basin Well Performance
OIL & GAS UPDATE 31 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 46% above the 6-month basin average Oxy is 54% above the 12-month basin average 200 300 180 Average 12-month cum. Oil, Mbbl 250 Average 6-month
Slide 32: Top Horizontal Wells in DJ Basin Since 2019
TOP 10 HORIZONTAL WELLS 32 IN DJ BASIN SINCE 2019 NEW WELL PRODUCTIVITY REACHING NEW HEIGHTS First 6-Month Cumulative Production, Mboe 300 200 100 0 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 SOURCE: ENVERUS PRISM DATA AS OF 10/30/24, HORIZONTAL DJ BASIN WELLS WITH FIRST PRODUCTION SINCE 01/01/2019 WITH 6-MONTH
Slide 33: Appendix: Asset Overview
33 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 34: Oxy's Combined Integrated Portfolio
OXY’S COMBINED INTEGRATED PORTFOLIO 34 Oil & Gas OxyChem Oxy Midstream Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing provide access to maximizing recovery significant cash generator global markets 33 Rockies 1,463
Slide 35: OxyChem Market Leading Position
OXYCHEM 2,500 Pre-Tax Income 35 MARKET LEADING POSITION 2,000 • 23 owned facilities worldwide 1,500 $ MM • Integrated assets capture benefits of favorable market conditions 1,000 • Top-tier global producer in every principal 500 chemical product produced 0 ◦ 2nd largest merchant caustic soda seller
Slide 36: OxyChem Projects Update
OXYCHEM PROJECTS UPDATE 36 BATTLEGROUND MODERNIZATION & EXPANSION PROJECT Modernization and expansion of the Battleground plant expected to increase cash flow through improved margins and higher product volumes, while enhancing operational flexibility: • Conversion from diaphragm to membrane technol
Slide 37: Midstream & Marketing Guidance Reconciliation
MIDSTREAM & MARKETING 37 GUIDANCE RECONCILIATION PHYSICAL MIDSTREAM & LCV BUSINESSES 4Q24 Guide 4Q24 Actuals 1Q25 Guide • 4Q24 income above guidance primarily $200 due to higher sulfur pricing at Al Hosn; Quarterly Pre-Tax Income ($ MM) 1Q25 guidance reflects higher sulfur $150 pricing and activity
Slide 38: One of the Largest U.S. Acreage Holders
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 38 9.3 MM Net Total U.S. Acres ROCKIES 0.7 MM ACRES PERMIAN 2.9 MM ACRES POWDER RIVER UNCONVENTIONAL 0.1 MM POWDER RIVER 1.5 MM DJ BASIN CONVENTIONAL 0.6 MM 1.4 MM Excludes acreage outside of active DJ BASIN operating areas OTHER ONSHORE GULF OF AMERICA TOTAL
Slide 39: U.S. Onshore Overview
U.S. ONSHORE OVERVIEW 39 4Q24 NET PRODUCTION ROCKIES Oil NGLs Gas Total 0.7 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 416 194 964 771 Rockies & Other Dmstc. 102 106 700 325 Total 518 300 1,664 1,096 OPTIMIZED ADVANCED DEPLOY STRATEGIC PERMIAN D EV ELOPMENT SUBSURFACE + POWERFUL + INFRASTRUCTUR
Slide 40: Gulf of America Overview
GULF OF AMERICA OVERVIEW 40 ALABAMA GULF OF AMERICA MISSISSIPPI TOTAL ACREAGE 1.1 MM TEXAS LOUISIANA 4Q24 NET PRODUCTION MARLIN Oil (Mbod) 116 HORN MOUNTAIN NGLs (Mbbld) 10 HOLSTEIN Gas (MMcfd) 68 BOOMVANG CONSTITUTION MARCO POLO Total (Mboed) 137 HEIDELBERG LUCIUS NOTE: AS OF 12/31/24; ACREAGE AMOU
Slide 41: International Overview
INTERNATIONAL OVERVIEW 41 UAE1 4Q24 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 26 3 20 33 Al Hosn 15 28 290 91 Dolphin 6 8 159 41 Oman 55 - 63 65 ALGERIA OMAN Total 102 39 532 230 0.5 MM ACRES 6.0 MM ACRES MENA NOTE: AS OF 12/31/24; ACREAGE AM
Slide 42: Appendix: Low Carbon Ventures
42 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 43: Incorporating R&D Breakthroughs into STRATOS
43 43 INCORPORATING R&D BREAKTHROUGHS INTO Initial Capacity (250 KTPA capacity) STRATOS • Construction underway to complete central processing and supporting infrastructure for full 500 KTPA ahead of commissioning Design advancements for • Phased build-out to leverage key CEIC remaining 250 KTPA tec
Slide 44: DAC Investment Principles
LOW CARBON VENTURES DAC INVESTMENT PRINCIPLES 44 • Developing competitive-returns business with cash flow stability Returns Focused • DAC 2+ to meet return threshold for FID Demand-Driven • Market demand to drive development pace Development • Low-carbon program net capital expected to be ≤$600 MM a
Slide 45: Oxy to Utilize NET Power's Transformational Technology
OXY TO UTILIZE NET POWER’S 45 TRANSFORMATIONAL TECHNOLOGY FOR CLEANER ENERGY Oxy has ~42% equity ownership in NET Power Inc. (NYSE: NPWR) Net Power’s patented technology uses natural gas to generate clean, reliable power while inherently capturing over 97% of CO2 from power generation First ut
Slide 46: Appendix: Sustainability
46 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 47: 2024 Climate Report: Emissions Reduction Progress
SUSTAINABILITY 47 2024 CLIMATE REPORT: EMISSIONS REDUCTION PROGRESS NOTE: DATA IS FROM 2023, THE LATEST AVAILABLE, AND INCLUDED IN OUR 2024 CLIMATE REPORT PUBLISHED ON OUR WEBSITE
Slide 48: Oxy's Pillars of Sustainability
2024 SUSTAINABILITY REPORT: INTEGRATED 48 STRATEGY DELIVERING RESULTS SELECTED HIGHLIGHTS & STATISTICS FROM 2023 BUILDING TO NET ZERO • Joint venture agreement with BlackRock with $550 million of committed OXY’S PILLARS OF SUSTAINABILITY investment for the development of the STRATOS facility • OxyCh
Slide 49: Water Stewardship in Oil and Gas
WATER STEWARDSHIP 49 IN OIL AND GAS Reduce water withdrawn from freshwater sources • ~96% of the total water withdrawn by Oxy’s U.S. oil and gas operations came from non-fresh sources, of which 87% was produced water • ~460 MM barrels of water moved via pipelines since 2012 through our unique Water
Slide 50: Appendix: Abbreviations and Definitions
50 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Sustainability Abbreviations and Definitions
Slide 51: Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS 51 Abbreviations B – Billion F&C – Facilities and Construction MM – Million BBL – Barrel FID – Final Investment Decision MMBOE – Million Barrels of Oil Equivalent BE – Breakeven FY – Full Year MMBTU – Million British Thermal Units BOE – Barrel of Oil Equivalent GAAP – G
Slide 52: Oxy Zero In
VB OXY ZERO IN”