Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q4 2005 Earnings Presentation
18 slides from Occidental Petroleum's earnings presentation, March 2006
Slide 1: 2005 Fourth Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Fourth Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,859 $ 9 Hurricane insurance charge $ 1,868 Chemical 165 6 Hurricane insurance charge 171 Corporate Interest
Slide 2: 2004 Fourth Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Fourth Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,179 $ 1,179 Chemical 125 125 Corporate Interest expense, net (53) (53) Other (11) (121) Gain on Lyondell st
Slide 3: 2005 Twelve Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Twelve Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 6,293 $ 26 Contract settlement $ 6,337 18 Hurricane insurance charge Chemical 607 159 Write-off of plants 777
Slide 4: 2004 Twelve Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Twelve Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 4,290 $ 4,290 Chemical 414 414 Corporate Interest expense, net (240) 11 Trust preferred redemption (229) Other
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 2005 2005 2004 2005 2004 REPORTED INCOME QTR 4 QTR 3 QTR 4 12 Months 12 Months Oil & Gas (a) 1,859 1,760 1,179 6,293 4,290 Chemicals 165 3 125 607 414 Corporate & other (112) 590 (64) 3
Slide 7: 2005 Fourth Quarter Net Income: Reported and Core Comparison
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Fourth Quarter Net Income (Loss) Reported Income Comparison Fourth Third Quarter Quarter 2005 2005 B / (W) Oil & Gas $ 1,859 $ 1,760 $ 99 Chemical 165 3 162 Corporate Interest expense, net (23) (70) 47 Other (89) 660 (749) Taxes (76
Slide 8: Core Earnings Variance Analysis vs Third Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2005 4th Quarter $ 1,868 2005 3rd Quarter 1,769 $ 99 Sales Price $ 146 Sales Volume/Mix 98 Exploration Expense (68) All Others (77) TOTAL VARIANCE $ 99 OCCIDENTAL PETROLEUM Chemical
Slide 9: Fourth Quarter 2005 vs 2004 Income Comparison
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Fourth Quarter Net Income (Loss) Reported Income Comparison Fourth Fourth Quarter Quarter 2005 2004 B / (W) Oil & Gas $ 1,859 $ 1,179 $ 680 Chemical 165 125 40 Corporate Interest expense, net (23) (53) 30 Other (89) (11) (78) Taxes
Slide 10: Core Earnings Variance Analysis vs Fourth Quarter 2004
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2005 4th Quarter $ 1,868 2004 4th Quarter 1,179 $ 689 Sales Price $ 759 Sales Volume/Mix 148 Exploration Expense (36) All Others (182) TOTAL VARIANCE $ 689 OCCIDENTAL PETROLEUM Chemi
Slide 11: Summary of Operating Statistics: Net Production
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Fourth Quarter Twelve Months 2005 2004 2005 2004 NET PRODUCTION PER DAY: United States Crude Oil and Liquids (MBL) California 78 81 76 78 Permian 170 152 161 154 Horn Mountain 14 13 13 19 Hugoton and other
Slide 12: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Fourth Quarter Twelve Months 2005 2004 2005 2004 OIL & GAS: PRICES United States Crude Oil ($/BBL) 52.93 42.76 50.21 37.72 Natural gas ($/MCF) 9.81 5.65 7.11 5.35 Latin America Crude Oil ($/BBL) 44.84 36.4
Slide 13: Chemicals Volumes, Prices and Chlorine Commentary
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CHEMICALS Volume (M Tons, except PVC Resins) Fourth Quarter Twelve Months MAJOR PRODUCTS 2005 2004 2005 2004 Chlorine 835 716 3,118 2,892 Caustic soda 879 763 3,178 3,109 Ethylene Dichloride 192 134 682 458 PVC Resins (millions of pounds
Slide 14: Chlorine and Caustic OxyChem Commentary
Investor Relations Supplemental Schedules Chlorine availability has greatly improved entering the 1 st quarter 2006 as nearly all of the P P issues related to the hurricanes have been corrected. The return to pre-hurricane operational status for some large chlorine consumers in the U.S. Gulf Coast i
Slide 15: PVC/VCM OxyChem Commentary
Investor Relations Supplemental Schedules Influencing Factors: U Demand for U.S. EDC exports will remain limited due to acetylene based VCM production in China. Furthermore, continued higher ethylene costs and low EDC prices will limit spot export volumes from the U.S. in 1 st quarter 2006. P P PVC/
Slide 16: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Fourth Quarter Twelve Months Capital Expenditures ($MM) 2005 2004 2005 2004 Oil & Gas California $ 110 $ 84 $ 380 $ 315 Permian 137 83 408 289 Other - U.S. 70 25 183 55 Latin America 53 57 197 180 Middle E
Slide 17: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 31-Dec-05 31-Dec-04 CAPITALIZATION Oxy Long-Term Debt (including current maturities) $ 2,919 $ 3,804 Subsidiary Preferred Stock 75 75 Others 25 26 Total Debt $ 3,019 $ 3,905 EQUITY $ 15,032 $ 10,550 Total Debt To T
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