Occidental Petroleum Corporation · NYSE:OXY
Occidental Petroleum — Barclays CEO Energy-Power Conference 2018
15 slides from Occidental Petroleum's conference presentation, Sep 5, 2018
Slide 1: Barclays CEO Energy-Power Conference 2018 Occidental Petroleum
Barclays CEO Energy-Power Conference 2018 Occidental Petroleum September 5, 2018 Vicki Hollub Chief Executive Officer
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements This presentation contains forward-looking statements based on management’s current expectations relating to Occidental’s operations, liquidity, cash flows, results of operations and business prospects. Words such as “estimate,” “project,” “predict,”
Slide 3: Oxy's Unique Value Proposition
Oxy’s Unique Value Proposition CROCE Leadership Consistent Dividend Growth Returns Focused Growth > Growing dividend with an attractive yield > Value protection in down cycle > Promotes capital allocation discipline Growth within Cash Flow Returns Focused Growth > 5% – 8+% average production growth
Slide 4: High Quality Assets Provide a Sustainable Value Proposition
Occidental Petroleum Corporation (Oxy) is a returns High Quality Assets Provide a focused energy company with operations in the Sustainable Value Proposition United States, Middle East and Latin America Oil & Gas Focused in world leading O&G basins Oil and Gas (O&G) Core Areas1 Large scale and l
Slide 5: Permian Resources Value-Based Production Growth
Permian Resources Value-Based Production Growth Permian Resources Production (Mboed) 54% Production Growth +7% From 1Q18 Guidance 235 - 255 June 2018: 213 Mboed 215 - 225 201 Breakeven Plan Achieved Breakeven Plan Achieved 177 159 4Q17 1Q18 2Q18 3Q18E 4Q18E QoQ Growth: 11% 14% 10% 11% 45 Online: Wel
Slide 6: 2018 YTD Key Takeaways
2018 YTD Key Takeaways $5 Bn 2018E cash improvement allocated to increase shareholder return Business Outperformance Portfolio Optimization Allocation of Excess Cash Completed low oil $2.6 Bn sale of non- $2+ Bn opportunistic price breakeven plan core, domestic share repurchase target ahead of
Slide 7: Dividend Security and Growth
Valuable Growth and Share Buybacks Will Reduce Dividend Payout Ratio Dividend Security and Growth Focus on CROCE Historical Dividend Payout Ratio1 less than 25% driving down payout ratio DPR % 17 13 10 8 9 10 9 15 13 12 17 13 22 46 55 50 30 12% 16 Consecutive CAGR Dividend Per Share Years of Dividen
Slide 8: Capital Allocation Driven by Advantaged Permian Position
Capital Allocation Driven by Advantaged Permian Position Strategic Rationale for Investment Oxy Uniquely Checks All the Boxes Best Wells: Oxy delivered 25 of top 50 wells in Improving our key metric: CROCE the Basin over the last year1 High Returns: Development areas generating Accelerating high
Slide 9: Investing in Highest-returning Options to Improve CROCE
Investing in Highest-returning Options to Improve CROCE Strategic Rationale for Investment Cash Return on Capital Employed 10% Improvement from Incremental Capital Improving our key metric: CROCE 24% 22% Accelerating highest-return projects from multi-year inventories Full realization of growth due
Slide 10: Shaping Oxy's Competitive Advantage
Shaping Oxy’s Competitive Advantage Permian Execution Excellence Subsurface Technical Basin-leading Enhanced Recovery Excellence Wells Operational New Mexico D&C Efficiency & Speed Outperformance Product Transport Logistics & Strategic Aventine & Realizations Relationships Logistics Hub Infrastructu
Slide 11: Logistics & Strategic Relationships – Aventine Logistics Hub
Logistics & Strategic Relationships – Aventine Logistics Hub Secure Supply • 240 acres in Eddy County, NM within 20 miles of Greater Sand Dunes and other future development areas • 30,000 tons of sand storage + transload capacity • 2 unit train loops with ability to expand to 3 located off major rai
Slide 12: Production Transport & Realizations – Ample Takeaway
Production Transport & Realizations – Ample Takeaway Committed Oil & Gas Takeaway Ensures Products are Realized in Multiple Markets > Multi-year firm oil commitments New Mexico on four, third-party pipelines • Total capacity ~470 Mbod to Gulf Coast Texas • Retain flexibility on third-party volumes g
Slide 13: Occidental has Utilized and Stored CO2 Safely and Reliably for Over 40 Years
Occidental has CO2 Enhanced Oil Recovery (EOR) Global EOR Scale & Capability Utilized and using anthropogenic CO2 is a Permian Basin – CO2 EOR Stored CO2 Safely form of carbon capture, utilization and storage (CCUS) Colombia and Reliably for technology that results in the Qatar Over 40 Years perm
Slide 14: Oxy's Differentiated Value – Key Takeaways
Oxy’s Differentiated Value – Key Takeaways Growth within Cash Flow Returns Focused Growth Growing Production 10%+ while Targeting a Permian Resources is Driving High- Return of Over $5 Bn in Cash to Shareholders Return Growth with the Best Wells in the Over the Next 18 Months Permian Basin CROCE Lea
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