Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Q3 2005 Earnings Presentation
20 slides from Occidental Petroleum's earnings presentation, 2005
Slide 1: 2005 Third Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Third Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,760 $ 9 Hurricane insurance charge $ 1,769 Chemical 3 159 Write-off of plants 167 5 Hurricane insurance char
Slide 2: 2004 Third Quarter Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 Third Quarter Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 1,216 $ 1,216 Chemical 141 141 Corporate Interest expense, net (59) (59) Other (44) (44) Taxes (495) (495) Inc
Slide 3: 2005 First Nine Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 First Nine Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 4,434 $ 26 Contract settlement $ 4,469 9 Hurricane insurance charge Chemical 442 159 Write-off of plants 6
Slide 4: 2004 First Nine Months Net Income (Loss)
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2004 First Nine Months Net Income (Loss) ($ millions) Reported Core Income Significant Items Affecting Income Earnings Oil & Gas $ 3,111 $ 3,111 Chemical 289 289 Corporate Interest expense, net (187) 11 Trust preferred redemption (176) O
Slide 5: Items Affecting Comparability of Core Earnings Between Periods
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Items Affecting Comparability of Core Earnings Between Periods The item(s) below are included in core earnings but are shown in this table because they affect the comparability of core earnings between periods. Pre-tax Income / (Expense)
Slide 6: Worldwide Effective Tax Rate
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Worldwide Effective Tax Rate QUARTERLY YEAR TO-DATE 2005 2005 2004 2005 2004 REPORTED INCOME QTR 3 QTR 2 QTR 3 9 Months 9 Months Oil & Gas (a) 1,760 1,325 1,216 4,434 3,111 Chemicals 3 225 141 442 289 Corporate & other 590 26 (103) 504 (
Slide 7: Reported Income and Core Earnings Comparison: Third vs Second Quarter 2005
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Third Quarter Net Income (Loss) Reported Income Comparison Third Second Quarter Quarter 2005 2005 B / (W) Oil & Gas $ 1,760 $ 1,325 $ 435 Chemical 3 225 (222) Corporate Interest expense, net (70) (47) (23) Other 660 73 587 Taxes (61
Slide 8: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2005 3rd Quarter $ 1,769 2005 2nd Quarter 1,351 $ 418 Sales Price $ 373 Sales Volume/Mix 39 Exploration Expense 56 All Others (50) TOTAL VARIANCE $ 418 OCCIDENTAL PETROLEUM Chemical
Slide 9: Reported Income and Core Earnings Comparison: 2005 vs 2004 Third Quarter
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM 2005 Third Quarter Net Income (Loss) Reported Income Comparison Third Third Quarter Quarter 2005 2004 B / (W) Oil & Gas $ 1,760 $ 1,216 $ 544 Chemical 3 141 (138) Corporate Interest expense, net (70) (59) (11) Other 660 (44) 704 Taxes (6
Slide 10: Core Earnings Variance Analysis: Oil & Gas and Chemical
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM Oil & Gas Core Earnings Variance Analysis ($ millions) 2005 3rd Quarter $ 1,769 2004 3rd Quarter 1,216 $ 553 Sales Price $ 692 Sales Volume/Mix 28 Exploration Expense (18) All Others (149) TOTAL VARIANCE $ 553 OCCIDENTAL PETROLEUM Chemic
Slide 11: Summary of Operating Statistics: Net Production per Day
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Third Quarter Nine Months 2005 2004 2005 2004 NET PRODUCTION PER DAY: United States Crude Oil and Liquids (MBL) California 73 77 75 77 Permian 165 154 156 155 Horn Mountain 10 17 13 22 Hugoton 3 3 4 3 Tota
Slide 12: Summary of Operating Statistics: Prices and Exploration Expense
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Third Quarter Nine Months 2005 2004 2005 2004 OIL & GAS: PRICES United States Crude Oil ($/BBL) 56.70 40.29 49.26 36.07 Natural gas ($/MCF) 6.33 5.87 6.16 5.25 Latin America Crude Oil ($/BBL) 53.81 36.07 4
Slide 13: Chemicals Volumes and Prices; Chlorine Commentary
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CHEMICALS Volume (M Tons, except PVC Resins) Third Quarter Nine Months MAJOR PRODUCTS 2005 2004 2005 2004 Chlorine 801 730 2,283 2,176 Caustic soda 817 795 2,299 2,346 Ethylene Dichloride 185 102 490 324 PVC Resins (millions of pounds) 1
Slide 14: Chlorine Influencing Factors and Caustic Commentary
Investor Relations Supplemental Schedules Influencing Factors: U While there is still uncertainty with respect to chlorine demand, chlorine supply/demand is expected to remain balanced in the 4 th quarter. Vinyls production and the resulting P P chlorine consumption are expected to be constrained by
Slide 15: PVC/VCM Commentary
Investor Relations Supplemental Schedules • There was no improvement in EDC prices during the 3 rd quarter even though PVC P P and VCM prices increased. Asian spot prices ended the quarter at $250 - $305 per metric ton CIF Asia. Influencing Factors: U Prices for EDC in the Far East have stabilized a
Slide 16: Influencing Factors: Vinyls Supply and Demand
Investor Relations Supplemental Schedules Influencing Factors: U Increased seasonal domestic demand coupled with the supply issues created by the hurricanes will continue to tighten the vinyls supply/demand balance. Additional price increases may be necessary in the 4 th quarter to offset the high f
Slide 17: Capital Expenditures and DD&A
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM SUMMARY OF OPERATING STATISTICS Third Quarter Nine Months Capital Expenditures ($MM) 2005 2004 2005 2004 Oil & Gas California $ 98 $ 87 $ 270 $ 231 Permian 112 81 271 206 Other - U.S. 51 18 113 30 Latin America 45 40 144 123 Middle East
Slide 18: Corporate Capitalization
Investor Relations Supplemental Schedules OCCIDENTAL PETROLEUM CORPORATE ($ millions) 30-Sep-05 31-Dec-04 CAPITALIZATION Oxy Long-Term Debt (including current maturities) $ 2,917 $ 3,804 Subsidiary Preferred Stock 75 75 Others 25 26 Total Debt $ 3,017 $ 3,905 EQUITY $ 13,909 $ 10,550 Total Debt To T
Slide 19: Forward-Looking Statements and Non-GAAP Notice
Investor Relations Supplemental Schedules See the investor relations supplemental schedules for the reconciliation of non-GAAP items. Statements in this presentation that contain words such as "will", "expect" or "estimate", or otherwise relate to the future, are forward-looking and involve risks an
Slide 20: Participants in Solicitation
Investor Relations Supplemental Schedules Participants in Solicitation U Oxy, Vintage and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Vintage shareholders in connection with the merger. Information about the directors and exe