Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Shareholder Meeting (April 2022)
23 slides from Occidental Petroleum's shareholder meeting presentation, Apr 7, 2022
Slide 1: 2022 Annual Meeting Shareholder Engagement
2022 Annual MeetingShareholder Engagement Occidental Petroleum Corporation April 2022
Slide 2: Cautionary statements
Cautionary statements Annual Meeting Shareholder Engagement 2 This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including those relating to Occidental’s deployment and use of carbon capt
Slide 3: Meeting Information
3 Meeting Information Proposal Board recommendation 1. Election of directors FOR(each director nominee) 2. Advisory vote to approve named executive officer compensation FOR 3. Ratification of selection of KPMG as Occidental’s independent auditor FOR 4. Shareholder proposal requesting Occidental set
Slide 4: Engagement with Follow This and our concerns with the shareholder proposal
Oxy recognizes the value of shareholder engagement and has actively engaged with Follow This, including: The Board recommends that shareholders vote AGAINST this proposal because: Oxy has already set quantitative short-, medium- and long-term goals for Scope 1, 2 and 3 emissions that align with the
Slide 5: Pathway to Net Zero
Pathway to Net Zero Annual Meeting Shareholder Engagement 5 Climate Strategy Oxy has set the following Scope 1, 2 and 3 goals, among others, to achieve net zero across our total emissions inventory in accordance with the Paris Agreement1: 2024 Reduce total operational GHG emissions2 from Oil & Gas a
Slide 6: Roadmap to Achieving Our Goals: DAC Development Scenarios
Roadmap to Achieving Our Goals:DaC Development Scenarios Annual Meeting Shareholder Engagement 6 Climate Strategy 135 PLANTS ~2.5% of DAC 5,000 MTPA addressable market 70 PLANTS ~1.5% of DAC 5,000 MTPA addressable market 2025 – 2030: MANUFACTURING MODE 2031 – 2035: COMMODITY DEVELOPMENT DE-RISKING &
Slide 7: Direct Air Capture Highlights
FIRST COMMERCIAL DAC FACILITY TO BE BUILT IN THE PERMIAN BASIN FIRST FACILITY EXPECTED TO REMOVE UP TO 1 million tonnes OF CO2 annually TEAMED UP WITH CARBON ENGINEERING TO DEPLOY TECHNOLOGY TO REMOVE CO2 FROM THE ATMOSPHERE AT SCALE Artist Rendering FIRST COMMERCIAL DAC Expected operational in LATE
Slide 8: Progress Toward DAC
PROGRESS TOWARD DAC 1 Annual Meeting Shareholder Engagement 8 DIRECT AIR CAPTURE Exclusive DAC and AIR TO FUELS™ license for U.S. deployment and OLCV has a worldwide agreement as the execution partner for all DAC and AIR TO FUELS deployments 1PointFive has teamed up with global EPC Worley for the FE
Slide 9: Hub Development CO2 Storage
HUB DEVELOPMENT Annual Meeting Shareholder Engagement 9 CO2 STORAGE SCENARIO NUMBER OF HUBS CO2 CAPACITY (each) Current Support 3 6+ MTPA Net-Zero Support 6 10+ MTPA Multiple land/pore space access agreements executed with expectation of more than 100,000 net acres by the end of 2022 Planning multip
Slide 10: Aligning our Scope Goals with a Net-Zero Trajectory
Aligning our Scope 3 Goals with A Net-Zero Trajectory Annual Meeting Shareholder Engagement 10 Climate Strategy Scenarios that involve new technologies are inherently challenging to forecast and non-linear. To set medium-term carbon management targets that are consistent with a net-zero-by-2050 traj
Slide 11: Comparison of scale-up of Oxy's 2032 target with recognized net-zero scenarios
Comparison of scale-up of Oxy’s 2032 target with Recognized net-zero scenarios Annual Meeting Shareholder Engagement 11 Climate Strategy The chart below is an illustrative example of how Oxy’s medium-term net-zero goal, which is CCUS-driven, aligns with the net-zero scenarios outlined on the precedi
Slide 12: One Size Does Not Fit All
ONE SIZE DOES NOT FIT ALL Annual Meeting Shareholder Engagement 12 Climate Strategy However, applying this statement uniformly to all companies and their pathways does not take into account, among other things: the range of 200+ scenarios in the IPCC 1.5°C Report the different rates of emissions red
Slide 13: Supported By Robust Board Oversight Process
Supported By Robust Board Oversight Process Oversight Structure Sustainability and Shareholder Engagement Committee oversees stakeholder engagement, external reporting on ESG and sustainability matters, and the company’s social responsibility programs. The Committee also monitors climate-related pub
Slide 14: Committed to Thoughtful Refreshment
Committed to Thoughtful Refreshment The Board is actively seeking additional members to enhance the diverse viewpoints and expertise currently represented on the Board and to increase the Board’s racial, ethnic and gender diversity. 14 Board of Directors Independence Tenure Diversity Annual Meeting
Slide 15: Committed to Best-in-Class Governance
Committed to BesT-in-Class Governance Corporate Governance Annual Meeting Shareholder Engagement 15 Board PRACTICES Independent Chairman and Independent Vice-Chairman Annual elections of the entire Board by a majority of votes cast Mandatory resignation if a majority vote is not received Demonstrate
Slide 16: Committed to Pay-for-Performance
Committed to Pay-for-Performance Annual Meeting Shareholder Engagement 16 Executive Compensation Highlights of Executive Compensation Program Pay-for-performance Substantial majority of named executive officer (NEO) compensation is performance-based Compensation Committee reviews metrics underlying
Slide 17: Appendix
APPENDIX —_ oxy 4
Slide 18: Strategy to Achieve Net Zero
Annual Meeting Shareholder Engagement 18 Climate Strategy Strategy to Achieve Net Zero As the first U.S. oil & gas company to establish a net-zero goal for total carbon inventory (including use of products), our strategy employs four key elements to achieve net-zero emissions before 2050. Revolution
Slide 19: Near-term GHG Scope Targets
44 GHG SCOPE TARGET DATE TYPE METRIC Scope 1 + 2 2021 Annual Milestones in emissions reduction efforts established annually by the Board of Directors Scope 3 2021 Annual Milestones in Low Carbon Ventures projects established annually by the Board of Directors Scope 1 + 2 2024 Absolute (Credit Facili
Slide 20: Medium- and Long-term GHG Scope Targets
45 GHG SCOPE TARGET DATE TYPE METRIC MEDIUM-TERM (2026-2035) Scope 1 2030 Absolute Eliminate all routine flaring by 2030 Scopes 1, 2 + 3 2032 Absolute CCUS Facilitate 25 million metric tons per year of geologic storage or utilization of captured CO2 in our value chain by 2032 (or other recognized, t
Slide 21: Oxy Carbon Management Timeline
Oxy Carbon Management Timeline CO2-EOR initiated in Crane/Upton Counties, TX 1972 Denver Unit begins CO2-EOR operations 1983 Acquired Altura Energy, a leading CO2-EOR operator in the Permian 2000 Original 45Q tax credit for carbon storage and use established 2008 CO2 Century Plant came online with t
Slide 22: OLCV CCUS Timeline – Accomplished
OLCV CCUS TIMELINE - ACCOMPLISHED 22 5 6 7 8 4 3 2 1 OLCV KEY INVESTMENTS Starts Point-Source CCUS for CO2 EOR, project pre-FEED Invests in Carbon Engineering Invests in NET Power Explores products – Cemvita for OxyChem DAC 1 FEED 1PointFive selects Worley for FEED, FEED for DAC 1 begins WORLDWIDE D
Slide 23: OLCV CCUS Timeline – Future
OLCV CCUS TIMELINE – FUTURE 23 Complete FEED in 2Q2022 1PointFive groundbreaking for DAC 2H2022 1PointFive starts up DAC 1 late 2024 CONTINUED GROWTH DAC & AIR TO FUELS™ facilities development continues Additional CO2 utilization platforms launch 2022 2023 2024 2025 LCV explores new CO2 utilization
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