Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Scotia Howard Weil Energy Conference 2019
15 slides from Occidental Petroleum's conference presentation, Mar 25, 2019
Slide 1: Scotia Howard Weil Energy Conference – Occidental Petroleum
Scotia Howard Weil Energy Conference Occidental Petroleum March 25, 2019 Cedric Burgher Chief Financial Officer
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains forward-looking statements based on management’s current expectations relating to Occidental’s operations, liquidity, cash flows, results of operations and business prospects. Words such as “estimate,” “project,” “predict,”
Slide 3: Integrated Portfolio with High Value Investment Options
Integrated Portfolio with High Value Investment Options Oil & Gas Chemical Midstream & Marketing Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing provides access to maximizing recovery significant cash generator globa
Slide 4: 2018 Highlights – Delivering on Our Value Proposition
2018 Highlights – Delivering on Our Value Proposition Focused on Returns Cash Flow Generation Operational Excellence Integrated Business Sector leading returns, CFFO before working cap. Permian achieved lowest 164% all-in reserve achieved 14% ROCE and exceeded capex and operating costs per b
Slide 5: Value Based Returns Cash Distributions
Value Based Cash Flow Growth Value Based Returns Cash Distributions 2002 - 2016 2017 2018 $2.4 B Dividends in 2018 ROCE: 11% Avg 5% 14% Cash Flow Growth $1.3 B Shares Repurchased CROCE: 21% Avg 18% 27% in 2018 2017 to 2018 Growth Consecutive Dividend Growth CFFO1: 74% Since 2002 - 12% CA
Slide 6: 2019 Capital Flexibility with Short-cycle Investments
2019 Capital Flexibility with Short-cycle Investments 2019 Capital Program 2019 Capital Program by Type Exploration $4.5 B Capital Program 3% Facilities 9 - 11% Production Growth D&C 24% $0.3 Chemicals 61% $0.1 Total Base $0.2 Oil & Gas Midstream Company Maintenance $0.8 Growth 12% Sustaining1 42% E
Slide 7: Road Map to 2022 Cash Flow Growth
Road Map to 2022 Cash Flow Growth 2019 2020 2021 2022 $9.0 B Harvest Existing High-Return Unconventional Inventory and Lower Full-Cycle Costs • Expand Unconventional 2022 Cash Flow From Operations1 • Unconventional EOR • Scalable Unconventional • New Anthropogenic Permian & Anthropogenic EOR Commerc
Slide 8: 2018 Return ON Capital vs. Return OF Capital
2018 Return ON Capital vs. Return OF Capital 20% 15% OXY 10% ROCE (%) 5% 0% -5% 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1 Total Yield (%) 1Total Yield = (Dividend + Repurchase) / Market Capitalization on December 31, 2018 Note: Bubble Size represents Distribution = (Dividend + Repurchase) / OCF Note: Pee
Slide 9: Oxy Consistently Returns Capital to Shareholders
Oxy Consistently Returns Capital to Shareholders 5,000 $3.50 Dividend Sustainable at $40 WTI 4,500 Consecutive Dividend Growth Since 2002 - 12% CAGR $3.00 4,000 $33 B of Total Capital Returned Since 2002 $ MM Returned to Shareholders 3,500 Over 70% of Market Capitalization Returned to Shareh
Slide 10: Occidental Low Carbon Ventures
Occidental Low Carbon Ventures Leveraging our unique Systematic direct emission reductions from operations positon and leadership in Adapt equipment to lower energy use per the CO2 market to provide a produced volume Low-carbon sustainable energy future Direct emissions emission reduction electricit
Slide 11: Low Carbon Milestones and Investments
Low Carbon Milestones and Investments Realized Expected White Energy Investments in Established “Low capture project Net Power and Communication of Carbon Ventures” feasibility study Carbon Second Annual direct emissions group announced Engineering Climate Report reduction plan 2018 2019 45Q (Future
Slide 12: How Does Carbon Capture and Sequestration Work?
How Does Carbon Capture and Sequestration Work? • Over multiple injection cycles, 100% of CO2 is stored in EOR reservoir • Oxy has the first two EPA approved Monitoring, Reporting and Verification Plans with storage capacities over 300 million tonnes of CO2 with substantially more potential • Oxy st
Slide 13: Water Infrastructure Drives Value & Investment in New Mexico
Water Infrastructure Drives Value & Investment in New Mexico Water Infrastructure Environmental Benefits 4X Increase 160 • New water recycling technology New Mexico Water Recycle Capacity (MBWPD) implemented in New Mexico 120 80 > Greater than 80% of water used in 2019 will be recycled 40 > Targetin
Slide 14: Oxy's Sustainable Value Proposition
Oxy’s Sustainable Value Proposition Integrated Business Model Returns Focused Growth Industry Leading Base Decline Rate in Oil Permian Resources is Driving High- and Gas, Sustainable Cash Generation Return Growth with the Best Wells in the from OxyChem, Expanded Global Market Permian Basin and Benef
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