Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q1 2025 Earnings Presentation
45 slides from Occidental Petroleum's earnings presentation, May 8, 2025
Slide 1: First Quarter Earnings Conference Call
05.08.25 First 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: Zero in on Value: Key Takeaways
ZERO IN ON VALUE 3 Key Takeaways Operational excellence driving • ~$3.0 B CFFO1 delivered by strong operations, company-wide financial results • Sustained Delaware drilling efficiencies enabling 2 rig reduction Balance sheet • $2.3 B of debt repaid year-to-date; $6.8 B since 3Q242 strengthening • Al
Slide 4: Outline
4 OUTLINE First Quarter Highlights Debt Reduction Progress Financials Closing Comments Marco Polo
Slide 5: First Quarter Highlights
FIRST QUARTER HIGHLIGHTS 5 STRONG OPERATIONAL AND FINANCIAL START TO 2025 Oil & Gas Chemical & Midstream 1,391 +$142 MM Mboed Total Combined Adjusted Pre-Tax Company Production Income Outperformance Financial Balance Sheet $1.2 B $2.3 B Free Cash Flow1 Year-to-Date Debt Repayments2 1EXCLUDES WORKING
Slide 6: Delaware Basin Rig Reductions Enabled by Consistent Drilling Efficiency Improvements
DELAWARE BASIN RIG REDUCTIONS ENABLED BY 6 CONSISTENT DRILLING EFFICIENCY IMPROVEMENTS DELAWARE EXECUTION DELIVERING MORE IN 1Q25 Drilling duration per well improved ~17% from 2024, supporting ~18% reduction in drilling costs ◦ Realizing benefits of stable scheduling, enhanced well designs, and lo
Slide 7: Oman – New Value Enhancement Opportunities
OMAN – NEW VALUE ENHANCEMENT OPPORTUNITIES 7 BLOCK 53 – MUKHAIZNA CONTRACT EXTENSION TO 2050 BLOCK 27 Under advanced negotiations with Oman government BLOCK 30 Expected to deliver significant value while supporting Oman’s key national objectives BLOCK 62 Potential to grow resources by >800 MM
Slide 8: Outline
8 OUTLINE First Quarter Highlights Debt Reduction Progress Financials Closing Comments Marco Polo
Slide 9: Delivering on Deleveraging Momentum
DELIVERING ON DELEVERAGING MOMENTUM 9 DEBT REDUCTION CONTINUES $6.8 B of debt repaid in 10 months, $1.8 B $6.8 B reducing annual interest expense by ~$370 MM $0.5 B Debt Repayments $2.3 B of debt repayments YTD, $4.5 B supported by ~$1.3 B of divestitures closed in 1Q25 ✓ repayment target All
Slide 10: Outline
10 OUTLINE First Quarter Highlights Debt Reduction Progress Financials Closing Comments DAC STRATOS Marco Polo
Slide 11: First Quarter 2025 Results
FINANCIALS 11 FIRST QUARTER 2025 RESULTS Reported Reported Production versus Mboed Guidance Midpoint Reconciliation Adjusted diluted EPS1 $0.87 ROCKIES +1 Reported diluted EPS1 $0.77 New well outperformance CFFO before working capital $3.0 B GULF OF AMERICA +1 Base production outperformance Net capi
Slide 12: Second Quarter and Full-Year 2025 Guidance
FINANCIALS 12 SECOND QUARTER AND FULL-YEAR 2025 GUIDANCE OIL & GAS 2Q25 FY 2025 MIDSTREAM2 2Q25 FY 2025 Total Company Production (Mboed) 1,377 - 1,417 1,390 - 1,440 Pre-tax Income $(140) - $(40) MM $(210) - $(10) MM Permian Production (Mboed) 760 - 780 760 - 786 Midland - MEH Spread $ / bbl $0.25 -
Slide 13: Outline
13 OUTLINE First Quarter Highlights Debt Reduction Progress Financials Closing Comments Ingleside Marco Polo
Slide 14: 2026 Non-Oil and Gas Cash Flow Inflection to Improve Resiliency
2026 NON-OIL AND GAS CASH FLOW INFLECTION 14 TO IMPROVE RESILIENCY ~$1.5 B 2027 IMPROVEMENT Poised to benefit from ~$1.0 B 2026 FCF inflection, through combination of incremental EBITDA and capital roll-off from ~$1.0 B non-oil and gas segments plus additional interest savings ◦ Chemical +$460 MM
Slide 15: Differentiated Value Proposition
DIFFERENTIATED VALUE PROPOSITION 15 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 16: Appendix
16 Appendix
Slide 17: Appendix Contents
17 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 18: Cash Flow Priorities
2025 ONGOING FOCUS 18 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 19: 2025 Capital Plan
REVISED CAPITAL GUIDANCE 2025 Capital $ B Original Plan Revised Plan 19 2025 CAPITAL PLAN Oil & Gas Chemicals $5.8 - $6.0 $0.9 $5.6 - $5.8 $0.9 Sustaining Capital1 Midstream & Corporate $0.3 $0.3 Capital of ~$4.5 B to maintain Energy and Chemicals Subtotal $7.0 - $7.2 $6.8 - $7.0 production of 1,415
Slide 20: 2025 Focus on Operational Excellence & Innovation
2025 FOCUS ON OPERATIONAL EXCELLENCE & INNOVATION 20 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 21: Appendix Contents
21 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 22: Cash Flow Sensitivities
FINANCIAL INFORMATION 22 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 23: Diluted Share Count Example
FINANCIAL INFORMATION 23 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 24: Appendix Contents
24 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 25: Domestic Onshore Activity Plan Update
OIL & GAS UPDATE 25 DOMESTIC ONSHORE ACTIVITY PLAN UPDATE PERMIAN 2025 ACTIVITY ROCKIES 2025 ACTIVITY ~$3.6 B ~22 Gross ~15 Net 515 - 565 ~$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 26: Leading Delaware Basin Well Performance
OIL & GAS UPDATE 26 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 45% above the 6-month basin average Oxy is 41% above the 12-month basin average 200 300 180 250 Average 12-month cum. Oil, Mbbl Average 6-month
Slide 27: U.S. Onshore Oil & Gas Update
2024 ACHIEVEMENTS 27 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 28: High-Quality U.S. Onshore Development Runway
HIGH-QUALITY OPERATED INVENTORY INCREASED DESPITE 28 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 29: Appendix Contents
29 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 30: Oxy's Combined Integrated Portfolio
OXY’S COMBINED INTEGRATED PORTFOLIO 30 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 1,391
Slide 31: OxyChem Market Leading Position
OXYCHEM 2,500 Pre-Tax Income 31 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 32: OxyChem Projects Update
OXYCHEM PROJECTS UPDATE 32 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 33: Midstream & Marketing Guidance Reconciliation
MIDSTREAM & MARKETING 33 PHYSICAL MIDSTREAM & LCV BUSINESSES GUIDANCE RECONCILIATION • 1Q25 income approximated guidance; 2Q25 guidance reflects seasonally higher spark 1Q25 Guide 1Q25 Actuals 2Q25 Guide spreads in Power business and Dolphin $200 resuming production after 1Q25 turnaround Quarterly P
Slide 34: One of the Largest U.S. Acreage Holders
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 34 9.2 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 35: U.S. Onshore Overview
U.S. ONSHORE OVERVIEW 35 1Q25 NET PRODUCTION ROCKIES Oil NGLs Gas Total 0.7 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 404 188 974 754 Rockies & Other Dmstc. 95 77 718 292 Total 499 265 1,692 1,046 OPTIMIZED ADVANCED DEPLOY STRATEGIC PERMIAN D EV ELOPMENT SUBSURFACE + POWERFUL + INFRASTRUCTURE
Slide 36: Gulf of America Overview
GULF OF AMERICA OVERVIEW 36 ALABAMA GULF OF AMERICA MISSISSIPPI TOTAL ACREAGE 1.0 MM TEXAS LOUISIANA 1Q25 NET PRODUCTION MARLIN Oil (Mbod) 102 HORN MOUNTAIN NGLs (Mbbld) 8 HOLSTEIN Gas (MMcfd) 64 BOOMVANG CONSTITUTION MARCO POLO Total (Mboed) 121 HEIDELBERG LUCIUS NOTE: AS OF 03/31/25; ACREAGE AMOUN
Slide 37: International Overview
INTERNATIONAL OVERVIEW 37 UAE1 1Q25 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 27 3 17 33 Al Hosn 15 28 284 90 Dolphin 6 8 134 36 Oman 55 - 58 65 ALGERIA OMAN Total 103 39 493 224 0.5 MM ACRES 6.0 MM ACRES MENA NOTE: AS OF 03/31/25; ACREAGE AM
Slide 38: Appendix Contents
38 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 39: Unlocking Leading Position with Pelican Hub
UNLOCKING LEADING POSITION WITH PELICAN HUB 39 1PointFive signs 25-year carbon offtake agreement with CF Industries-JERA-Mitsui JV Approximately 60 million metric tons of CO2 emissions annually from AGREEMENT HIGHLIGHTS existing emitters in the Pelican Sequestration Hub service area1 • ~2.3 million
Slide 40: 2025 Focus on Advancing Major Projects
2025 FOCUS ON 40 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 41: Incorporating R&D Breakthroughs into Stratos
41 41 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 42: DAC Investment Principles
LOW CARBON VENTURES DAC INVESTMENT PRINCIPLES 42 • 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 43: Appendix Contents
43 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 44: Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS 44 Abbreviations AI – Artificial Intelligence EOR – Enhanced Oil Recovery MM – Million B – Billion EPA – Environmental Protection Agency MMBOE – Million Barrels of Oil Equivalent BBL – Barrel FPD – Feet per Day MMBTU – Million British Thermal Units BOE – Barrel of Oil E
Slide 45: Oxy Zero In
VB OXY ZERO IN”