Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q1 2004 Earnings Presentation
17 slides from Occidental Petroleum's earnings presentation, 2004
Slide 1: 2004 First Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 First Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 750 $ 750 Chemical 50 50 Corporate Interest Debt, net (54) (54) Trust pfd distributions & other (14) 11 Trust
Slide 2: 2003 First Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2003 First Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 727 $ 727 Chemical 35 35 Corporate Interest Debt, net (124) 61 Debt repayment fee (63) Trust pfd distributions
Slide 3: Items Affecting Comparability of Core Earnings Between Periods
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Items Affecting Comparability of Core Earnings Between Periods Pre-tax Income / (Expense) First Quarter 2004 2003 Corporate Equity earnings (3) (21) 3
Slide 4: Worldwide Effective Tax Rate
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Worldwide Effective Tax Rate 2004 2003 2003 REPORTED INCOME QTR 1 QTR 1 QTR 4 Pre-tax Income 848 726 686 Income tax expense Domestic (Federal and state) 191 179 152 Foreign (included in operating segments) 170 154 152 Total 361 333 304 I
Slide 5: Reported and Core Earnings Comparison vs Fourth Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 First Quarter Net Income (Loss) Reported Income Comparison First Fourth Quarter Quarter 2004 2003 B / (W) Oil & Gas $ 750 $ 640 $ 110 Chemical 50 71 (21) Corporate Interest Debt, net (54) (53) (1) Trust pfd distributions & other (14
Slide 6: Core Earnings Variance Analysis vs Fourth Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2004 1st Quarter $ 750 2003 4th Quarter 640 $ 110 Price Variance $ 161 Volume Variance - Exploration Expense Variance (9) All Others (42) * TOTAL VARIANCE $ 110 * 2003 includes $38 p
Slide 7: Investor Relations Supplemental Schedules
Investor Relations Supplemental Schedules 7
Slide 8: Reported and Core Earnings Comparison vs First Quarter 2003
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 First Quarter Net Income (Loss) Reported Income Comparison First First Quarter Quarter 2004 2003 B / (W) Oil & Gas $ 750 $ 727 $ 23 Chemical 50 35 15 Corporate Interest Debt, net (54) (124) 70 Trust pfd distributions & other (14) (1
Slide 9: Core Earnings Variance Analysis vs First Quarter 2003
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2004 1st Quarter $ 750 2003 1st Quarter 727 $ 23 Price Variance $ 48 Volume Variance 46 Exploration Expense Variance (26) All Others (45) TOTAL VARIANCE $ 23 OCCIDENTAL PETROLEUM Che
Slide 10: Summary of Operating Statistics: Net Production per Day
Investor Relations Supplemental Schedules O C C ID E N T AL P E T R O L E U M S U M M A R Y O F O P E R A T IN G S T A T IS T IC S First Q uarter 2004 2003 N E T P R O D U C T IO N P E R D AY : U nite d S tates C ru d e O il an d L iq u id s (M B L ) C alifornia 77 78 P erm ian 153 144 H orn M ounta
Slide 11: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules SUMMARY OF OPERATING STATISTICS First Quarter 2004 2003 OIL & GAS: PRICES United States Crude Oil ($/BBL) 32.62 31.57 Natural gas ($/MCF) 5.00 4.30 Latin America Crude Oil ($/BBL) 28.99 31.23 Middle East Crude Oil ($/BBL) 30.08 30.40 Natural Gas ($/MCF) 0.97
Slide 12: Chemicals: Volumes, Prices and Chlorine Commentary
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CHEMICALS Volume (M Tons) First Quarter MAJOR PRODUCTS 2004 2003 Chlorine 706 686 Caustic 732 637 Ethylene Dichloride 122 131 PVC Resins 1,071 1,063 CHEMICALS Prices (Index) First Quarter MAJOR PRODUCTS 2004 2003 Chlorine 1.60 1.64 Caust
Slide 13: Caustic Commentary
Investor Relations Supplemental Schedules Influencing Factors: Industry operating rates are nearing practical capacity levels. Normal seasonal increases in the bleach, water treatment and agricultural end use markets are expected to push chlorine demand higher in the 2nd quarter. CAUSTIC OxyChem Com
Slide 14: PVC/VCM Commentary
Investor Relations Supplemental Schedules due to both scheduled and unscheduled VCM plant outages. This situation has negatively impacted EDC sales, resulting in a weaker than expected EDC supply/demand balance. As no significant changes are expected in Asian VCM production in the 2nd quarter, EDC d
Slide 15: Summary of Operating Statistics: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules SUMMARY OF OPERATING STATISTICS First Quarter Capital Expenditures ($MM) 2004 2003 Oil & Gas California $ 61 $ 44 Permian 62 55 Other - U.S. 4 14 Latin America 20 7 Middle East 168 102 Other Eastern Hemisphere 11 3 Chemicals 16 68 * Corporate 1 5 TOTAL $ 343
Slide 16: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 31-Mar-04 31-Dec-03 CAPITALIZATION Oxy Long-Term Debt (including current maturities) $ 4,041 $ 4,016 Trust Preferred Securities - 453 Subsidiary Preferred Stock 75 75 Others 26 26 Total Debt $ 4,142 $ 4,570 EQUITY
Slide 17: Forward-looking statements
Investor Relations Supplemental Schedules Statements in this presentation that contain words such as “will” or “expect”, or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to di