Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q2 2006 Earnings Presentation
18 slides from Occidental Petroleum's earnings presentation, Oct 15, 2006
Slide 1: 2006 Second Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 Second Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,953 $ 1,953 Chemical 250 250 Corporate Interest expense, net (33) (33) Other (84) (84) Taxes (882) (882) In
Slide 2: 2005 Second Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Second Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,255 $ 26 Contract settlement $ 1,281 Chemical 225 225 Corporate Interest expense, net (47) 1 Debt purchase
Slide 3: 2006 First Six Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 First Six Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 3,863 $ 3,863 Chemical 498 498 Corporate Interest expense, net (62) (62) Other (157) (157) Taxes (1,787) (1
Slide 4: 2005 First Six Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 First Six Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 2,534 $ 26 Contract settlement $ 2,560 Chemical 439 439 Corporate Interest expense, net (108) 11 Debt purch
Slide 5: 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 6: Worldwide Effective Tax Rate
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Worldwide Effective Tax Rate QUARTERLY YEAR TO-DATE 2006 2006 2005 2006 2005 REPORTED INCOME QTR 2 QTR 1 QTR 2 6 Months 6 Months Oil & Gas (a) 1,953 1,910 1,255 3,863 2,534 Chemicals 250 248 225 498 439 Corporate & other (117) (102) 26 (
Slide 7: 2006 Second Quarter Net Income: Comparison with First Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 Second Quarter Net Income (Loss) Reported Income Comparison Second First Quarter Quarter 2006 2006 B / (W) Oil & Gas $ 1,953 $ 1,910 $ 43 Chemical 250 248 2 Corporate Interest expense, net (33) (29) (4) Other (84) (73) (11) Taxes (8
Slide 8: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2006 2nd Quarter $ 1,953 2006 1st Quarter 1,910 $ 43 Sales Price $ 82 Sales Volume/Mix 34 Exploration Expense 21 All Others (94) * TOTAL VARIANCE $ 43 * Higher operating expenses OCC
Slide 9: 2006 Second Quarter Net Income: Comparison with Second Quarter 2005
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2006 Second Quarter Net Income (Loss) Reported Income Comparison Second Second Quarter Quarter 2006 2005 B / (W) Oil & Gas $ 1,953 $ 1,255 $ 698 Chemical 250 225 25 Corporate Interest expense, net (33) (47) 14 Other (84) 73 (157) Taxes (
Slide 10: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2006 2nd Quarter $ 1,953 2005 2nd Quarter 1,281 $ 672 Sales Price $ 557 Sales Volume/Mix 262 Exploration Expense 57 All Others * (204) TOTAL VARIANCE $ 672 *DD&A rate increase (52) a
Slide 11: Summary of Operating Statistics: Net Production per Day
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months 2006 2005 2006 2005 NET PRODUCTION PER DAY: United States Crude Oil and Liquids (MBL) California 82 75 83 76 Permian 168 156 167 152 Horn Mountain 12 11 13 14 Hugoton and other 3
Slide 12: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months 2006 2005 2006 2005 OIL & GAS: PRICES United States Crude Oil ($/BBL) 62.14 46.72 58.69 45.47 Natural gas ($/MCF) 6.24 6.18 7.28 6.07 Latin America Crude Oil ($/BBL) 56.47 46.36 5
Slide 13: Summary of Operating Statistics: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Second Quarter Six Months Capital Expenditures ($MM) 2006 2005 2006 2005 Oil & Gas California $ 123 $ 90 $ 226 $ 172 Permian 138 96 265 159 Other - U.S. 64 33 131 62 Latin America 78 22 125 43 Middle East
Slide 14: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 30-Jun-06 31-Dec-05 CAPITALIZATION Long-Term Debt (including current maturities) $ 2,887 $ 2,919 Subsidiary Preferred Stock 75 75 Others 25 25 Total Debt $ 2,987 $ 3,019 EQUITY $ 17,962 $ 15,032 Total Debt To Total
Slide 15: Financial Data (Retrospective Application)
Investor Relations Supplemental Schedules Occidental Petroleum Corporation Financial Data RETROSPECTIVE APPLICATION Millions, except per share amounts 2002 2003 2004 2005 2006 12 Mos 12 Mos 12 Mos Qtr 1 Qtr 2 Qtr 3 Qtr 4 12 Mos Qtr 1 Segment net sales Oil & Gas 4,536 5,783 7,093 2,089 2,220 2,617 2,
Slide 16: Financial Core Data (Retrospective Application)
Investor Relations Supplemental Schedules Occidental Petroleum Corporation Financial Core Data RETROSPECTIVE APPLICATION Millions, except per share amounts 2002 2003 2004 2005 2006 12 Mos 12 Mos 12 Mos Qtr 1 Qtr 2 Qtr 3 Qtr 4 12 Mos Qtr 1 Oil & Gas $ 2,160 $ 3,129 $ 4,021 $ 1,279 $ 1,281 $ 1,647 $ 1
Slide 17: Operational Data: Net Production per Day by Location
Investor Relations Supplemental Schedules Occidental Petroleum Corporation Operational Data RETROSPECTIVE APPLICATION Oil & Gas Net Production Per Day by Geographical Locations 2002 2003 2004 2005 2006 NET PRODUCTION PER DAY: 12 Mos 12 Mos 12 Mos Qtr 1 Qtr 2 Qtr 3 Qtr 4 12 Mos Qtr 1 United States Cr
Slide 18: 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