Slide 1: Second Quarter Earnings Conference Call
08.08.24 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: Zero In On Value: Key Takeaways
ZERO IN ON VALUE 3 Key Takeaways Operational • Efficient operations and marketing optimizations deliver healthy FCF excellence driving financial results • Maintaining full year production guidance for legacy Permian and total company, with growth offsetting 15 Mboed 4Q divestiture • Instantly free c
Slide 4: Outline
4 OUTLINE Second Quarter Highlights Strategic Updates Financials Closing Comments Marco Polo
Slide 5: Operational Expertise Delivering Financial Success
SECOND QUARTER HIGHLIGHTS 5 OPERATIONAL EXPERTISE DELIVERING FINANCIAL SUCCESS Oil & Gas Midstream 1,258 +$180 MM Mboed Production Adjusted Pre-Tax Income Highest In Four Years Outperformance Financial LCV $1.3 B 500,000 t Free Cash Flow1 CDR Credits Purchase Agreement With Microsoft 1EXCLUDES WORKI
Slide 6: U.S. Onshore Oil & Gas Update
SECOND QUARTER HIGHLIGHTS 6 U.S. ONSHORE OIL & GAS UPDATE OXY EXTENDING U.S. ONSHORE WELL PERFORMANCE LEADERSHIP Highest quarterly U.S. Onshore production in four years Industry-leading 2023 through YTD 2024 well productivity: ◦ Average Delaware 12-, 6-, and 3-month cumulative oil >45% above bas
Slide 7: Outline
7 OUTLINE Second Quarter Highlights Strategic Updates Financials Closing Comments Marco Polo
Slide 8: CrownRock Adds Free Cash Flow Accretive, Premier Permian Asset
Combined Oxy & 8 CrownRock Midland Basin Closed August 1 CROWNROCK ADDS FREE Acreage Position MARTIN Oxy CASH FLOW ACCRETIVE, HOWARD CrownRock PREMIER PERMIAN ASSET MIDLAND GLASSCOCK High-Performing Near-term FCF UPTON REAGAN Team accretive with long-term upsides • High-performing, cross-discipline
Slide 9: Scaled Midland Basin Asset Poised to Deliver Value
9 CrownRock Adds Value and Scale CrownRock Creates to Midland Basin SCALED MIDLAND BASIN ASSET Achieves new Midland Basin scale with POISED TO DELIVER VALUE basin-leading performance PRO FORMA MIDLAND OPERATING STATISTICS1 9 Delivers high cash margin production with low decline and high liquids Oper
Slide 10: Achieving Early Success in Debt Repayments
ACHIEVING EARLY RAPIDLY DELEVERAGING USING 10 SUCCESS IN DEBT FREE CASH FLOW AND REPAYMENTS DIVESTITURE PROCEEDS $1.4 B ~$400 MM debt retired year-to-date $4.5 ~$1.9 B of additional debt repayments by end of August $0.8 B $3.1 B $3.0 Announced ~$818 MM1 Barilla $1.9 B Draw Delaware divestiture
Slide 11: Outline
11 OUTLINE Second Quarter Highlights Strategic Updates Financials Closing Comments Ingleside Marco Polo
Slide 12: Second Quarter 2024 Results
FINANCIALS 12 SECOND QUARTER 2024 RESULTS Reported Reported Production versus Mboed Guidance Midpoint Reconciliation Adjusted diluted EPS1 $1.03 PERMIAN Reported diluted EPS1 $1.03 New well outperformance and higher base +4 uptime in the Midland Basin CFFO before working capital $3.0 B GULF OF MEXIC
Slide 13: Third Quarter and Full-Year 2024 Guidance
FINANCIALS 13 THIRD QUARTER AND FULL-YEAR 2024 GUIDANCE (INCLUDES CROWNROCK BEGINNING 08/01/2024) OIL & GAS 3Q24 FY 2024 MIDSTREAM2 3Q24 FY 2024 Total Company Production (Mboed) 1,370 - 1,410 1,290 - 1,340 Pre-tax Income $(175) - $(75) MM $(395) - $(245) MM Permian Production (Mboed) 690 - 708 637 -
Slide 14: Commitment to Announced Financial Actions
COMMITMENT TO ANNOUNCED 14 FINANCIAL ACTIONS Quarterly Dividend Increase ✓ Increased dividend $0.04 to $0.22 per share Maintain Investment Grade ✓ Accretive financial metrics; expect to retain IG ratings On Track >$4.5 B Near-Term Debt Reduction Expect to complete within 12 months of closing CrownRo
Slide 15: Outline
15 OUTLINE Second Quarter Highlights Strategic Updates Financials Closing Comments Marco Polo
Slide 16: Differentiated Portfolio
DIFFERENTIATED PORTFOLIO 16 Oxy’s premier diversified assets and distinguished operational capabilities create a runway for sustainable shareholder value accretion OIL & GAS OXYCHEM • Diversified portfolio with deep, improving inventory • Sector earnings leader with resilient free cash flow • Operat
Slide 17: Appendix
17 Appendix
Slide 18: Appendix
18 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 19: Permian Production Guidance
PERMIAN 3Q24 Production Guidance 19 PRODUCTION GUIDANCE 800 156 699 587 8 (52) 600 Mboed Strengthening Oxy’s premier 400 Permian portfolio through 200 organic well performance and portfolio high-grading 0 2Q24 Production 3Q24 Incremental 3Q24 CrownRock August 1st CR 3Q24 Production Production, Produ
Slide 20: Key Pro Forma 2024 Guidance Changes
KEY PRO FORMA 2024 GUIDANCE CHANGES 20 Prior New 2024 Guidance, Pro Forma OIL & GAS 2024 Guidance Ex-CrownRock 2024 Guidance Total Company Production (Mboed) 1,220 - 1,280 1,228 - 1,272 1,290 - 1,340 Permian Production (Mboed) 569 - 599 575 - 595 637 - 663 Domestic Operating Cost $ / boe ~$9.75 ~$9.
Slide 21: Cash Flow Priorities
2024 ONGOING FOCUS 21 CASH FLOW Maintain Production Base 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 22: Shareholder Return Priorities
SHAREHOLDER RETURN PRIORITIES 22 Divestiture proceeds1 and ECF after Retire debt Sustainable and common dividend allocated to debt opportunistically growing dividend reduction until principal debt <$15.0 B and at maturity >$4.5 B debt repayments within ECF after common dividend 12 months of CrownRoc
Slide 23: Cash Flow Sensitivities
FINANCIAL INFORMATION 23 CASH FLOW SENSITIVITIES SENSITIVITIES INCLUDE ANNUALIZED AUG-DEC CROWNROCK IMPACT OIL & GAS MIDSTREAM & MARKETING Annualized cash flow changes ~$260 MM per $1.00 / Annualized cash flow changes ~$65 MM per $0.25 / bbl bbl change in oil prices change in Midland to MEH spre
Slide 24: Diluted Share Count Example
FINANCIAL INFORMATION 24 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 25: Appendix
25 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 26: Domestic Onshore Activity Plan Update
OIL & GAS UPDATE 26 DOMESTIC ONSHORE ACTIVITY PLAN UPDATE PERMIAN 2024 ACTIVITY (EX-CROWNROCK) ROCKIES 2024 ACTIVITY ~$2.6 B ~21 Gross ~10 Net 390 - 430 ~$0.9 B ~2 Gross ~2 Net 160 – 180 Capex Rigs Rigs Wells Online Capex Rigs Rigs Wells Online 100% OBO OBO 100% EOR Base Maint PR Basin PR Basin Base
Slide 27: Full Year 2024 CrownRock Activity Summary
OIL & GAS UPDATE 27 FULL YEAR 2024 CROWNROCK ACTIVITY SUMMARY CrownRock team maintained stable operations and activity levels in 2023 and throughout 2024 Investment profile relatively flat throughout the year, creates modest production increase from 2023 (148 Mboed) FY241 Production (Mboed) 153
Slide 28: Subsurface Expertise Turning Secondary Horizons into Tier 1 Opportunities
SUBSURFACE EXPERTISE TURNING SECONDARY 28 HORIZONS INTO TIER 1 OPPORTUNITIES Oxy Delaware Leading the Way – Driving Inventory Improvement Secondary Wells Continue Outperformance and Expansion 500 …nearly matching Oxy’s record- ✓ Accelerating financial returns through near-term inventory high-grading
Slide 29: Top Horizontal Wells in Delaware Basin
TOP 10 HORIZONTAL WELLS 29 IN DELAWARE BASIN CONTINUING TO RAISE THE BAR WITH INDUSTRY-LEADING WELLS First 6-Month Cumulative Production, Mboe 0 250 500 750 1,000 #1 #2 #3 #4 #5 #6 #7 #8 #9 #10 SOURCE: ENVERUS PRISM DATA AS OF 02/13/24, HORIZONTAL DELAWARE BASIN WELLS WITH 6-MONTH PRODUCTION AVAILAB
Slide 30: Appendix
30 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 31: Oxy's Combined Integrated Portfolio
OXY’S COMBINED INTEGRATED PORTFOLIO 31 Oil & Gas OxyChem Oxy Midstream Focused in world class Leading manufacturer of basic Integrated infrastructure and basins with a history of chemicals and significant cash marketing provide access to global maximizing recovery generator markets 33 Rockies 1,258
Slide 32: OxyChem Market Leading Position
OXYCHEM 2,500 Pre-Tax Income 32 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 ◦ Largest merchant caustic soda seller in 2
Slide 33: Midstream & Marketing Guidance Reconciliation
MIDSTREAM & MARKETING 33 GUIDANCE RECONCILIATION PHYSICAL MIDSTREAM & LCV BUSINESSES 2Q24 Guide 2Q24 Actuals 3Q24 Guide • 2Q24 income above guidance primarily $200 due to lower losses on equity investments Quarterly Pre-Tax Income ($ MM) and timing of LCV spend; 3Q24 guidance $150 reflects LCV activ
Slide 34: One of the Largest U.S. Acreage Holders
ONE OF THE LARGEST U.S. ACREAGE HOLDERS 34 9.5 MM Net Total U.S. Acres ROCKIES 1.0 MM ACRES PERMIAN 2.8 MM ACRES POWDER RIVER UNCONVENTIONAL 0.3 MM POWDER RIVER 1.4 MM DJ BASIN CONVENTIONAL 0.7 MM 1.4 MM Excludes acreage outside of active DJ BASIN operating areas OTHER ONSHORE GULF OF MEXICO TOTAL A
Slide 35: U.S. Onshore Overview
U.S. ONSHORE OVERVIEW 35 2Q24 NET PRODUCTION ROCKIES Oil NGLs Gas Total 1.0 MM ACRES (Mbod) (Mbbld) (MMcfd) (Mboed) Permian 339 136 671 587 Rockies & Other Dmstc. 98 103 630 306 Total 437 239 1,301 893 OPTIMIZED ADVANCED DEPLOY STRATEGIC PERMIAN D EV ELOPMENT SUBSURFACE + POWERFUL + INFRASTRUCTURE S
Slide 36: Gulf of Mexico Overview
GULF OF MEXICO OVERVIEW 36 ALABAMA GULF OF MEXICO MISSISSIPPI TOTAL ACREAGE 1.1 MM TEXAS LOUISIANA 2Q24 NET PRODUCTION MARLIN Oil (Mbod) 116 HORN MOUNTAIN NGLs (Mbbld) 10 HOLSTEIN CONSTITUTION Gas (MMcfd) 70 CAESAR/TONGA BOOMVANG MARCO POLO Total (Mboed) 138 GUNNISON HEIDELBERG LUCIUS NOTE: AS OF 06
Slide 37: International Overview
INTERNATIONAL OVERVIEW 37 UAE1 2Q24 NET PRODUCTION 2.5 MM ACRES Oil NGLs Gas Total (Mbod) (Mbbld) (MMcfd) (Mboed) Algeria & Other Intl. 27 3 19 33 Al Hosn 15 27 291 91 Dolphin 6 8 152 39 Oman 54 - 59 64 ALGERIA OMAN Total 102 38 521 227 0.5 MM ACRES 6.0 MM ACRES MENA NOTE: AS OF 06/30/24; ACREAGE AM
Slide 38: Appendix
38 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 39: Emerging Low-Carbon Businesses
LOW CARBON VENTURES 39 EMERGING LOW-CARBON BUSINESSES COMMERCIALIZING CCUS AND DAC DECARBONIZATION SOLUTIONS Expected 2024 Net Capital Expenditures1 $600 MM • Continued construction of STRATOS (DAC 1); expected to be commercially operational mid-2025 • Preparation for DAC and sequestration hub in So
Slide 40: DAC Investment Principles
LOW CARBON VENTURES DAC INVESTMENT PRINCIPLES 40 • Developing competitive-returns business with cash flow stability Returns Focused • DAC 2+ to meet return threshold for FID Demand-Driven • Market demand to drive development pace Development • Low-carbon program net capital expected to be ≤$600 MM a
Slide 41: Appendix
41 APPENDIX Financial Information Oil & Gas Update Asset Overview Low Carbon Ventures Abbreviations and Definitions
Slide 42: Abbreviations and Definitions
ABBREVIATIONS AND DEFINITIONS 42 Abbreviations B – Billion F&C – Facilities and Construction MBWD – Thousand Barrels of Water per Day BBL – Barrel FCF – Free Cash Flow MM – Million BO – Barrel of Oil FID – Final Investment Decision MMBTU – One Million British Thermal Units CCUS – Carbon Capture, Uti
Slide 43: Oxy Zero In
VB OXY ZERO IN”