Slide 1: Third Quarter 2011 Earnings Conference Call
EXHIBIT 99.4 Occidental Petroleum Corporation Third Quarter 2011 Earnings Conference Call October 27, 2011 1
Slide 2: Third Quarter 2011 Earnings - Highlights
Third Quarter 2011 Earnings - Highlights • Core Results - $1.8 Billion vs. $1.2 Billion in 3Q10 – Core EPS $2.18 (diluted) vs. $1.48 in 3Q10. • Net Income - $1.8 Billion vs. $1.2 Billion in 3Q10 – EPS $2.17 (diluted) vs. $1.46 in 3Q10. • The small difference between net and core income is due to dis
Slide 3: Oil & Gas Segment Variance Analysis - 3Q11 vs. 3Q10
Third Quarter 2011 Earnings - Oil & Gas Segment Variance Analysis - 3Q11 vs. 3Q10 • Core Results for 3Q11 of $2.6 B vs. $1.8 B in 3Q10 and $2.6 B in 2Q11 – Higher volumes in 3Q11, compared to 2Q11, resulted in flat quarter-to-quarter income despite lower product prices. The improvement in 3Q11 vs. 3
Slide 4: Oil & Gas Segment
Third Quarter 2011 Earnings - Oil & Gas Segment 3Q11 3Q10 Reported Segment Earnings ($mm) $2,612 $1,757 WTI Oil Price ($/bbl) $89.76 $76.20 Brent Oil Price ($/bbl) $112.22 $76.41 NYMEX Gas Price ($/mcf) $4.28 $4.53 Oxy’s Realized Prices Worldwide Oil ($/bbl) $97.24 $72.31 + 34% year-over-year Worldw
Slide 5: Oil & Gas Volumes
Third Quarter 2011 Earnings - Oil & Gas Volumes 3Q11 3Q10 Oil and Gas Sales Volumes (mboe/d) 743 713 Oil and Gas Production Volumes (mboe/d) 739 706 – Year-over-year increase of greater than 4.5% (2010 volumes included production from Libya). • The year-over-year volume increase reflects our continu
Slide 6: Oil & Gas Production
Third Quarter 2011 Earnings - Oil & Gas Production • US production was 436 mboe/d, representing the highest ever domestic production volumes for the company, compared to our guidance of 430 to 432 mboe/d. • Our production in CA rose by 6 mboe/d compared to 2Q11, and contributed a large portion of th
Slide 7: Oil & Gas Production
Third Quarter 2011 Earnings - Oil & Gas Production • In the Middle East region: – We recorded no production in Libya. – In Iraq, we produced 4 mboe/d. – Yemen production was 28 mboe/d, slightly ahead of our guidance. – In Oman, 3Q11 production was 79 mboe/d, an increase of 3 mboe/d over 2Q11 volumes
Slide 8: Oil & Gas Segment - Realized Prices and Differentials
Third Quarter 2011 Earnings - Oil & Gas Segment - Realized Prices and Differentials • 3Q11 realized prices declined for all our products from 2Q11: – Worldwide crude oil realized price was $97.24 p/b, a decrease of 6%. – Worldwide NGLs were $56.06 p/b, a decline of 3%. – Domestic natural gas prices
Slide 9: Oil & Gas Segment - Cash Production Costs and Taxes
Third Quarter 2011 Earnings - Oil & Gas Segment - Cash Production Costs and Taxes • Oil and gas cash production costs were $12.36 per boe for the first nine months of 2011, compared with last year's twelve-month costs of $10.19 per boe. – The cost increase reflects higher workover and maintenance ac
Slide 10: Chemical Segment Variance Analysis - 3Q11 vs. 3Q10
Third Quarter 2011 Earnings - Chemical Segment Variance Analysis - 3Q11 vs. 3Q10 • Core Results for 3Q11 were $245 mm vs. $253 mm in 2Q11 and $189 mm in 3Q10. – The year-over-year improvement reflects higher margins across most product lines. In addition, during 3Q11, we temporarily idled certain pr
Slide 11: Midstream Segment Variance Analysis - 3Q11 vs. 3Q10
Third Quarter 2011 Earnings - Midstream Segment Variance Analysis - 3Q11 vs. 3Q10 • Core Results for 3Q11 were $77 mm vs. $187 mm in 2Q11 and $163 mm in 3Q10. – The decreases from 2Q11 and 3Q10 earnings were due to losses from our Phibro unit both for the quarter and year-to-date, partially offset b
Slide 12: Taxes
Third Quarter 2011 Earnings - Taxes • The worldwide effective tax rate was 38% for 3Q11. – Our higher proportionate domestic income brought us closer to the US statutory rates. • Our 3Q11 US and foreign tax rates are included in the “Investor Relations Supplemental Schedules.” 12 12
Slide 13: Nine Months Results & Capital Spending
Third Quarter 2011 Earnings - Nine Months Results & Capital Spending YTD2011 YTD2010 • Core Income ($mm) $5,187 $3,377 • Core EPS (diluted) $6.37 $4.14 • Net Income ($mm) $5,137 $3,318 • EPS (diluted) $6.31 $4.07 • Cash flow from operations for 9 months YTD11 was $8.6 billion. • Capital spending was
Slide 14: 2011 YTD Cash Flow
Third Quarter 2011 Earnings - 2011 YTD Cash Flow – Free cash flow from continuing operations after capex and dividends, but before acquisition and debt activity, was about $2.6 billion. ($ in millions) Cash Flow From Operations $8,600 Shah - $500 Beginning Cash $2,600 12/31/10 Note: See attached GAA
Slide 15: Net Acquisition Expenditures
Third Quarter 2011 Earnings - Net Acquisition Expenditures • Our net acquisition expenditures in the first nine months were $1.5 billion, which are net of proceeds from the sale of our Argentina operations. • The acquisitions included the South Texas purchase, properties in California and the Permia
Slide 16: Shares Outstanding, Debt and ROE
Third Quarter 2011 Earnings - Shares Outstanding, Debt and ROE Shares Outstanding (mm) YTD11 9/30/11 Weighted Average Basic 812.6 Weighted Average Diluted 813.3 Basic Shares Outstanding 811.2 Diluted Shares Outstanding 812.1 9/30/11 12/31/10 Debt/Capital 14% 14% • During 3Q11, Oxy issued senior note
Slide 17: Oxy's Strategy
Third Quarter 2011 Earnings - Oxy’s Strategy • Oxy’s overriding goal is to maximize Total Shareholder Return. • We believe this can be achieved through a combination of: 1. Growing our oil and gas production by 5% to 8% per year on average over the long term; 2. Allocating and deploying capital with
Slide 18: Oxy's Strategy - Oil and gas production
Third Quarter 2011 Earnings - Oxy’s Strategy - Oil and gas production • The impact of our capital program and increase in drilling activity have started to have a visible impact on our domestic oil and gas production volumes. • Compared to 2Q11, our domestic production increased by about 6 mboe/d pe
Slide 19: Oxy's Strategy - Oil and gas production
Third Quarter 2011 Earnings - Oxy’s Strategy - Oil and gas production • Compared to the prior year, total company 3Q11 production of 739 mboe/d was affected by a 7% decline in our international production. – This reduction was the result of disruptions in the Middle East/North Africa region, and the
Slide 20: Oxy's Strategy - Returns
Third Quarter 2011 Earnings - Oxy’s Strategy - Returns • ROE - Oxy’s annualized return on equity for the first nine months of 2011 was 20%. • ROCE - Oxy’s annualized return on capital employed for the first nine months of 2011 was 18%. • We continue to manage our capital program and acquisition stra
Slide 21: Oxy's Strategy - Dividend growth
Third Quarter 2011 Earnings - Oxy’s Strategy - Dividend growth • Our ability to pay dividends is indicated by our free cash flow generation. • Free cash flow after interest, taxes and capital spending, but before dividends, acquisitions and debt activity for the first nine months of the year was $3.
Slide 22: 4Q11 Outlook - US oil and gas production
Third Quarter 2011 Earnings - 4Q11 Outlook - US oil and gas production • We expect 4Q11 oil and gas production to be as follows: – Domestic volumes are expected to increase by about 3 to 4 mboe/d per month from the current quarterly average level of 436 mboe/d. – This should result in average 4Q11 p
Slide 23: 4Q11 Outlook - Domestic Asset Review - California
Third Quarter 2011 Earnings - 4Q11 Outlook Domestic Asset Review - California • For the year, we expect to drill and complete 154 shale wells outside Elk Hills, compared to the 107 wells we had indicated at the beginning of the year. – Including Elk Hills, we expect to drill 195 shale wells for the
Slide 24: 4Q11 Outlook - Domestic Asset Review - California
Third Quarter 2011 Earnings - 4Q11 Outlook Domestic Asset Review - California • Our conventional drilling program is progressing somewhat better than planned. • There has been no significant change in the status of permitting issues in the state since our last call. • We expect the current permittin
Slide 25: 4Q11 Outlook - Domestic Asset Review - Permian & Williston
Third Quarter 2011 Earnings - 4Q11 Outlook Domestic Asset Review - Permian & Williston • In the Permian operations: – Our CO2 flood production is progressing according to plan. – We expect our rig count to be about 24 in 4Q11. – Our non-CO2 operations have stepped up their development program but wi
Slide 26: 4Q11 Outlook - International Oil and Gas
Third Quarter 2011 Earnings - 4Q11 Outlook International Oil and Gas • Internationally, we believe that once the current uncertainties are behind us, including the resolution of the situation in Libya and the achievement of a sustained development program in Iraq, we will achieve production growth s
Slide 27: 4Q11 Outlook - International Oil and Gas
Third Quarter 2011 Earnings - 4Q11 Outlook International Oil and Gas • The Middle East region production is expected to be as follows for 4Q11: • At this point, we expect no significant production from Libya. • Our joint venture partnerships are currently in the process of resuming production, but p
Slide 28: 4Q11 Outlook - Oil and Gas
Third Quarter 2011 Earnings - 4Q11 Outlook - Oil and Gas • At quarter-end prices, we expect total production to increase to around 745 mboe/d as a result of the 3 to 4 mboe/d per month coming from domestic production. • We expect sales volumes to be around 740 mboe/d due to the timing of liftings. •
Slide 29: 4Q11 Outlook - Chemicals & Taxes
Third Quarter 2011 Earnings - 4Q11 Outlook - Chemicals & Taxes • The chemical segment earnings in 4Q11, historically the weakest quarter, are expected to be about $100 mm. – This reduction from the third quarter is due to seasonal slowdowns in many markets such as construction, customers’ efforts to
Slide 30: Summary
Third Quarter 2011 Earnings - Summary • Our 3Q11 core income of $2.18 per share was about 12% higher than the analysts’ consensus estimate. • Our 3Q11 oil and gas earnings of $2.6 billion were essentially unchanged from 2Q11, despite a $6 p/b decline in our average oil realizations. • Our annualized
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