Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Merger or Acquisition (December 2010)
14 slides from Occidental Petroleum's merger presentation, Dec 10, 2010
Slide 1: Occidental Petroleum Corporation
EXHIBIT 99.2 Occidental Petroleum Corporation December 10, 2010 Divestment of Argentine Assets, Purchase of New U.S. Assets, Dividend Increase 1
Slide 2: Summary of Transactions & Announcements
Summary of Transactions & Announcements • Divestment of Oxy’s Argentine oil and gas operations to Sinopec for after-tax proceeds of approximately $2.5 billion • Oxy to purchase oil and gas properties in South Texas and North Dakota for about $3.2 billion • Oxy to increase its interest in General Par
Slide 3: Impact of Transactions
Impact of Transactions • These new acquisitions and the sale of Argentina will: – be immediately accretive to our earnings, ROCE and cash flow after capital; – provide greater certainty in achieving both our short-term and long-term average annual production growth outlook of 5 to 8%; – increase the
Slide 4: Impact of Transactions
Impact of Transactions • Plains is one of the largest operators of oil pipelines in North America with operations in Texas, California, and North Dakota, among other areas • PAA’s operations compliment Oxy’s domestic oil and gas operations • Oxy’s purchase of Sempra’s 50% interest in the Elk Hills P
Slide 5: Impact of Transactions
Impact of Transactions • We expect all of these transactions to be completed no later than the end of 1Q11, subject to normal regulatory approvals • Our outlook for improved free cash flow provides for the substantial increase to our dividend • Oxy will finance the acquisitions from both existing ba
Slide 6: Production Improvement Post Acquisitions and Argentina Divestiture
Production Improvement Post Acquisitions and Argentina Divestiture These properties, combined with acquisitions completed earlier this year, will more than replace the production from the sale of 64 65 62 Argentina 56 49 44 Current 2011 2012 2013 2014 Argentina Shell So. Texas North Dakota Other 201
Slide 7: Shell South Texas Assets Transaction
Oxy - Shell South Texas Assets Transaction • South Texas assets will be purchased from Shell for about $1.8 billion and currently produce ~ 200 mmcf/d of gas equivalent • Shell has owned and operated the properties for many years • The assets will be 100% operated by Oxy and have an excellent invent
Slide 8: Shell South Texas Assets Transaction
Oxy - Shell South Texas Assets Transaction • Over 360 Bcfe proven developed reserves – ~ 840 Bcfe of identified additional resource potential • Condensate & NGLs have comprised ~ 30% of total revenue • Lease Operating Expense (LOE) of $0.47-0.74/Mcfe • Gathering capacity of ~ 500 mmcfe/d • Aggregate
Slide 9: Shell South Texas Assets Transaction
Oxy - Shell South Texas Assets Transaction Houston TEXAS Lyda La Copita / North Rincon Corpus Christi Gulf Starr County McAllen Ranch of Mexico Rio Grande City Slick Javelina Ranch Edinburg Hidalgo County Mexico McAllen Pharr 9 9
Slide 10: North Dakota Assets Transaction
Oxy - North Dakota Assets Transaction • Purchasing from a private company all rights, title and interest in ~ 180,000 contiguous net acres in North Dakota within the southern extents of the Bakken and Three Forks Formations • The purchase price is approximately $1.4 billion • Operated working intere
Slide 11: North Dakota Assets Transaction
Oxy - North Dakota Assets Transaction • Control of 200 operated Drilling Spacing Unit’s (DSU) and interest in 110 non-operated DSU’s; over 98% of DSU’s are 1280 acre units • Prospective across entire acreage position for Three Forks and deeper objectives • Net risked reserve potential in excess of 2
Slide 12: Oxy North Dakota - Williston Basin
Oxy North Dakota - Williston Basin NORTH DAKOTA MT ND Burke Bottineau Divide South Coteau SD Williams Nesson Renville Anticline Roosevelt Mountrail McHenry Richland Parshall- Sanish Ward Fields Elm Coulee Field McLean McKenzie Sheridan Dunn Mercer Dawson Billings Oxy Acquisition Area Oliver Russian
Slide 13: Cautionary Statement
Cautionary Statement Portions of this presentation contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Factors that could cause results to differ materially include, but are
Slide 14: Occidental Petroleum Corporation
Occidental Petroleum Corporation 14
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