Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q2 2025 Earnings Presentation
41 slides from Occidental Petroleum's earnings presentation, Aug 7, 2025
Slide 1: Second Quarter Earnings Conference Call
08.07.25 Second Quarter Earnings Conference Call
Slide 2: Cautionary Statements
CAUTIONARY STATEMENTS 2 Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to statements about Occidental Petroleum Corporation’s (“Oc
Slide 3: Key Takeaways
ZERO IN ON VALUE 3 Key Takeaways Operational • ~$2.6 B CFFO1 produced by strong operations in a volatile market excellence driving financial results • Delivered robust operating cost performance across Oil & Gas, with International assets generating their lowest LOE $ / boe since 4Q21 Balance sheet
Slide 4: Outline
4 OUTLINE Second Quarter Highlights Debt Reduction Progress Financials Closing Comments Marco Polo
Slide 5: Second Quarter Highlights
SECOND QUARTER HIGHLIGHTS 5 STRONG MOMENTUM CONTINUES THROUGH 2Q25 Oil & Gas Midstream 1,400 +$206 MM Mboed Total Adjusted Pre-Tax Income Company Production Outperformance Financial Balance Sheet $2.6 B $950 MM Operating Cash Flow1 Additional Divestitures Announced Since 1Q25 1EXCLUDES WORKING CAPIT
Slide 6: Leveraging Technical Expertise for Enduring U.S. Onshore Cost Reductions
LEVERAGING TECHNICAL EXPERTISE FOR 6 ENDURING U.S. ONSHORE COST REDUCTIONS ~19% Artificial Lift 2025E Domestic Operating Cost Failure Reduction Well remediation improvements, chemical Reduction Drivers optimization, and enhanced well surveillance >20% More Efficient Surface & Support Maintenance Rig
Slide 7: Continued Efficiency Momentum Leading to Further Capital Reduction
CONTINUED EFFICIENCY MOMENTUM 7 LEADING TO FURTHER CAPITAL REDUCTION $200 MM vs. original 2025 capital plan 13% vs. 2024 average well cost Additional $100 MM capital Lower 1H25 average well costs reduction from prior guidance for Permian Unconventional PERMIAN EXECUTION DELIVERING EVEN MORE IN 1H25
Slide 8: Stratos Advancing to Capture CO2
Trains 1 & 2 (250 KTPA capacity) STRATOS ADVANCING 8 34 Air Contactors TO CAPTURE CO2 52 Pellet Reactors ON TRACK FOR 2025 START-UP Achievements: • Completed construction for Trains 1 & 2 and Central Processing facilities • Commenced wet commissioning with water circulation • Received Class VI permi
Slide 9: Outline
9 OUTLINE Second Quarter Highlights Debt Reduction Progress Financials Closing Comments Marco Polo
Slide 10: Debt Reduction Progress – Ahead of Schedule with Manageable Maturity Runway
DEBT REDUCTION PROGRESS – AHEAD OF 10 SCHEDULE WITH MANAGEABLE MATURITY RUNWAY $7.5 B of debt repaid in 13 months, reducing annual interest expense by ~$410 MM Announced ~$950 MM of additional divestitures since 1Q251 Delivering on Debt Reduction ($ B) Debt Maturity Schedule ($ B) $0.6 $0.7 $7.5
Slide 11: Outline
11 OUTLINE Second Quarter Highlights Debt Reduction Progress Financials Closing Comments DAC STRATOS Marco Polo
Slide 12: Second Quarter 2025 Results
FINANCIALS 12 SECOND QUARTER 2025 RESULTS Reported Reported Production versus Mboed Guidance Midpoint Reconciliation Adjusted diluted EPS1 $0.39 ROCKIES Base production outperformance and higher +5 Reported diluted EPS1 $0.26 uptime CFFO before working capital $2.6 B INTERNATIONAL +3 Oman contract e
Slide 13: Third Quarter and Full-Year 2025 Guidance
FINANCIALS 13 THIRD QUARTER AND FULL-YEAR 2025 GUIDANCE OIL & GAS 3Q25 FY 2025 MIDSTREAM2 3Q25 FY 2025 Total Company Production (Mboed) 1,415 - 1,455 1,400 - 1,430 Pre-tax Income $(140) - $(40) MM $(100) - $50 MM Permian Production (Mboed) 779 - 799 768 - 784 Midland - MEH Spread $ / bbl $0.20 - $0.
Slide 14: Outline
14 OUTLINE Second Quarter Highlights Debt Reduction Progress Financials Closing Comments Ingleside Marco Polo
Slide 15: Differentiated Value Proposition
DIFFERENTIATED VALUE PROPOSITION 15 Oxy’s premier diversified assets and distinguished operational capabilities create a runway for sustainable shareholder value accretion Operational Excellence High Quality Portfolio Low-Carbon Leadership Industry-leading performance Diversified asset base position
Slide 16: Appendix
16 Appendix
Slide 17: Appendix contents
17 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 18: Cash Flow Priorities
2025 ONGOING FOCUS 18 Maintain Production Base CASH FLOW Preserve asset base integrity PRIORITIES and longevity Sustainable & Growing Dividend Apply technical and Through-the-cycle sustainability operational excellence to with long-term growth potential preserve and enhance premier asset base in CUR
Slide 19: 2025 Focus on Operational Excellence & Innovation
2025 FOCUS ON OPERATIONAL EXCELLENCE & INNOVATION 19 Blending technical expertise with a forward-thinking approach to maximize value Pushing technical limits in Relentless pursuit of Applied AI Center of Pioneering low carbon resource recovery operational improvements Excellence (ACE) technologies U
Slide 20: Appendix contents
20 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 21: 2026 Non-Oil and Gas Cash Flow Inflection to Improve Resiliency
2026 NON-OIL AND GAS CASH FLOW INFLECTION 21 TO IMPROVE RESILIENCY ~$1.5 B 2027 IMPROVEMENT Poised to benefit from ~$1.0 B 2026 FCF inflection, through combination of incremental EBITDA and capital roll-off from non-oil and gas segments plus additional interest savings ◦ Chemical +$460 MM from inc
Slide 22: Cash Flow Sensitivities
FINANCIAL INFORMATION 22 CASH FLOW SENSITIVITIES OIL & GAS MIDSTREAM & MARKETING Annualized cash flow changes ~$265 MM per $1.00 / Annualized cash flow changes ~$60 MM per $0.25 / bbl bbl change in oil prices change in Midland to MEH spread ◦ ~$240 MM per $1.00 / bbl change in WTI price ◦ ~35-da
Slide 23: Diluted Share Count Example
FINANCIAL INFORMATION 23 DILUTED SHARE COUNT EXAMPLE Basic Shares Outstanding + Incremental Diluted Shares = Total Diluted Outstanding Shares Incremental diluted shares include June 2020 warrants, Berkshire Hathaway warrants, and performance awards Treasury method assumes proceeds from exercised
Slide 24: Appendix contents
24 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 25: Domestic Onshore Activity Plan Update
OIL & GAS UPDATE 25 DOMESTIC ONSHORE ACTIVITY PLAN UPDATE PERMIAN 2025 ACTIVITY ROCKIES 2025 ACTIVITY ~$3.5 B ~22 Gross ~15 Net 515 - 565 ~$0.8 B ~3 Gross ~2 Net 100 - 120 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% OBO EOR OBO 100% OBO OBO Base Maint EOR EOR Base Maint PR Basin F
Slide 26: Leading Delaware Basin Well Performance
OIL & GAS UPDATE 26 LEADING DELAWARE BASIN WELL PERFORMANCE AVERAGE 6-MONTH CUMULATIVE OIL BY OPERATOR1 AVERAGE 12-MONTH CUMULATIVE OIL BY OPERATOR2 Oxy is 45% above the 6-month basin average Oxy is 41% above the 12-month basin average 200 300 180 250 Average 12-month cum. Oil, Mbbl Average 6-month
Slide 27: High-Quality U.S. Onshore Development Runway
HIGH-QUALITY OPERATED INVENTORY INCREASED DESPITE 27 U.S. ONSHORE DRILLING OR DIVESTING >1,200 LOCATIONS DEVELOPMENT RUNWAY <$60 Breakeven U.S. Onshore Unconventional Gross Operated Inventory 8,000 Deep inventory of high- Track record of improving inventory quality, low-breakeven breakeven through t
Slide 28: Oman – New Value Enhancement Opportunities
OMAN – NEW VALUE ENHANCEMENT OPPORTUNITIES 28 BLOCK 53 – MUKHAIZNA CONTRACT EXTENSION TO 2050 BLOCK 27 BLOCK 30 Expected to deliver significant value while supporting Oman’s key national objectives BLOCK 62 Potential to grow resources by >800 MM gross barrels with competitive project returns I
Slide 29: Appendix contents
29 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 30: Oxy's Combined Integrated Portfolio
OXY’S COMBINED INTEGRATED PORTFOLIO 30 Oil & Gas OxyChem Oxy Midstream Focused in world class Leading manufacturer of Integrated infrastructure and basins with a history of basic chemicals and marketing provide access to maximizing recovery significant cash generator global markets 31 1,400 Mboed Ro
Slide 31: OxyChem Market Leading Position
OXYCHEM 2,500 Pre-Tax Income 31 MARKET LEADING POSITION 2,000 • 23 owned facilities worldwide 1,500 $ MM • Integrated assets capture benefits of favorable market conditions 1,000 • Top-tier global producer in every principal 500 chemical product produced 0 ◦ 2nd largest merchant caustic soda seller
Slide 32: Physical Midstream & LCV Businesses Guidance Reconciliation
MIDSTREAM & MARKETING 32 PHYSICAL MIDSTREAM & LCV BUSINESSES GUIDANCE RECONCILIATION • 2Q25 income exceeded guidance due to higher sulfur prices from Al Hosn; 3Q25 guidance 2Q25 Guide 2Q25 Actuals 3Q25 Guide reflects seasonally higher spark spreads in $200 Power business Quarterly Pre-Tax Income ($
Slide 33: One of the Largest U.S. Acreage Holders
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 33 9.0 MM Net Total U.S. Acres ROCKIES 0.6 MM ACRES PERMIAN 2.9 MM ACRES POWDER RIVER UNCONVENTIONAL 0.1 MM POWDER RIVER 1.5 MM DJ BASIN CONVENTIONAL 0.5 MM 1.4 MM Excludes acreage outside of active DJ BASIN operating areas OTHER ONSHORE GULF OF AMERICA TOTAL
Slide 34: U.S. Onshore Overview
U.S. ONSHORE OVERVIEW 34 2Q25 NET PRODUCTION ROCKIES Oil NGLs Gas Total 0.6 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 410 196 982 770 Rockies & Other Dmstc. 88 74 659 272 Total 498 270 1,641 1,042 OPTIMIZED ADVANCED DEPLOY STRATEGIC PERMIAN D EV ELOPMENT SUBSURFACE + POWERFUL + INFRASTRUCTURE
Slide 35: Gulf of America Overview
GULF OF AMERICA OVERVIEW 35 ALABAMA GULF OF AMERICA MISSISSIPPI TOTAL ACREAGE 0.9 MM TEXAS LOUISIANA 2Q25 NET PRODUCTION MARLIN Oil (Mbod) 106 HORN MOUNTAIN NGLs (Mbbld) 9 HOLSTEIN Gas (MMcfd) 60 BOOMVANG CONSTITUTION MARCO POLO Total (Mboed) 125 HEIDELBERG LUCIUS NOTE: AS OF 06/30/25; ACREAGE AMOUN
Slide 36: International Overview
INTERNATIONAL OVERVIEW 36 UAE1 2Q25 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 26 3 14 31 Al Hosn 14 26 263 84 Dolphin 7 8 162 42 Oman 66 - 60 76 ALGERIA OMAN Total 113 37 499 233 0.5 MM ACRES 6.0 MM ACRES MENA NOTE: AS OF 06/30/25; ACREAGE AM
Slide 37: Appendix contents
37 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 38: Unlocking Leading Position with Pelican Hub
UNLOCKING LEADING POSITION WITH PELICAN HUB 38 1PointFive signs 25-year carbon offtake agreement with CF Industries-JERA-Mitsui JV Approximately 60 million metric tons of CO2 emissions annually from AGREEMENT HIGHLIGHTS existing emitters in the Pelican Sequestration Hub service area1 • ~2.3 million
Slide 39: Appendix contents
39 APPENDIX 2025 Initiatives Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 40: Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS 40 Abbreviations AI – Artificial Intelligence EPA – Environmental Protection Agency MMBTU – Million British Thermal Units B – Billion FID – Final Investment Decision MTM – Mark to Market BBL – Barrel FY – Full Year OBO – Operated by Others BOE – Barrel of Oil Equivalent
Slide 41: Oxy Zero In
VB OXY ZERO IN”