Occidental Petroleum Corporation February 13, 2019...> Aventine maintenance and logistics hub...

February 13, 2019

Occidental Petroleum Corporation

Fourth Quarter 2018Earnings Conference Call

2

Cautionary Statements

Forward-Looking StatementsThis 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,” “will,” “would,” “should,” “could,” “may,” “might,”

“anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of

events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak

only as of the date of this presentation. Actual results may differ from anticipated results, sometimes materially, and reported results should not be

considered an indication of future performance. Factors that could cause actual results to differ include, but are not limited to: global commodity pricing

fluctuations; changes in supply and demand for Occidental’s products; higher-than-expected costs; the regulatory approval environment; not successfully

completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions;

technological developments; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from operations,

development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability

under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to

accidents, chemical releases, labor unrest, weather, natural disasters, cyber-attacks or insurgent activity; failures in risk management; and the factors set

forth in Part I, Item 1A “Risk Factors” of the 2017 Form 10-K. Unless legally required, Occidental does not undertake any obligation to update any forward-

looking statements, as a result of new information, future events or otherwise.

Use of non-GAAP Financial InformationThis presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures on the “Investors”

section of our website.

Cautionary Note to U.S. InvestorsThe Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible

reserves. Any reserve estimates provided in this presentation that are not specifically designated as being estimates of proved reserves may include

"potential" reserves and/or other estimated reserves not necessarily calculated in accordance with, or contemplated by, the SEC’s latest reserve reporting

guidelines. U.S. investors are urged to consider closely the oil and gas disclosures in our 2017 Form 10-K and other reports and filings with the SEC. Copies

are available from the SEC and through our website, www.oxy.com

3

Occidental Petroleum

• 2018 & Fourth Quarter Highlights

• Financial Summary and Guidance

• Permian Update

• International Update

• Closing Remarks

4

2018 Highlights – Delivering on Our Value Proposition

Focused on Returns Operational ExcellenceCash Flow Generation Integrated Business

Sector leading returns,

achieved 14% ROCE and

27% CROCE

45% of CFFO returned to

shareholders

Returned $3.6 B to

shareholders including

$1.3 B of share

repurchases in 2018

Sector leading dividend,

with consecutive growth

since 2002 – 12% CAGR

Sold domestic pipeline and

export terminal while

maintaining takeaway &

export capacity

164% all-in reserve

replacement ratio, with

149% from organic

sources

New blocks in Abu Dhabi,

Oman and Colombia

OxyChem generated over

20 consecutive years of

free cash flow

Expansion of global market

access through Midstream

Low Carbon Ventures

established to leverage

carbon capture business

CFFO before working cap.

exceeded capex and

dividends by ~$800 MM

$3.8 B of Core income,

Core EPS of $5.01

International business

generated $1.4 B of free

cash flow

OxyChem and Midstream

generated highest

earnings in over 20 years

$3.0 B cash balance

Permian achieved lowest

operating costs per barrel

in this decade

Drilled <5% of Hz wells in

the Permian, but have 40%

of the top 50 wells

Improved average six-

month cumulative

production by 25% for

Permian Resources

Increased Al Hosn capacity

by 11%

Note: ROCE and CROCE are non-GAAP; see the reconciliations to comparable GAAP financial measures on our website

5

Value Based Cash Flow Growth

1Cash flow from operations before working capital2Production from ongoing operations

Note: See the reconciliations to comparable GAAP financial measures on our website

ROCE

Generation

Cash Flow

Growth

Return of

Capital

Sustainable

Returns

Value Based Returns2002 - 2016 2017 2018

ROCE: 11% Avg 5% 14%

CROCE: 21% Avg 18% 27%

2017 to 2018 Growth

CFFO1: 74%

EPS: 463%

Production2: 11%

Credit Ratings

A/A3/A Stable

Cash Distributions $2.4 B Dividends in 2018

$1.3 B Shares Repurchased

in 2018

Consecutive Dividend Growth

Since 2002 - 12% CAGR

$33 B of Total Capital

Returned Since 2002

48% of the $33 B Returned in

the Last 5 Years

6

2019 Capital Flexibility with Short-cycle Investments

<2 Years 2-3 Years >3 Years

D&C

61%

Facilities

24%

Base

Maintenance

12%

Exploration

3%

25%20%

55%

2019 Capital Program by Type

1Sustaining capital based on a 2019E production base decline rate of 20%2Payback based on $50 WTI

Sustaining1

55%

Growth

42%

Exploration

3%

Total

CompanyOil & Gas

$2.6

$0.5

$0.8

$0.2 $0.1 $0.3

2019 Captial Program

Chemicals

Midstream

Exploration & Other

International

Permian EOR

Permian Resources

$4.5 B Capital Program

9 - 11% Production Growth

2019 Capital Program

Payback for 2019 Development Capital2

7

Permian

Harvest Existing High-Return Unconventional Inventory and Lower Full-Cycle Costs

• Unconventional EOR

Commercial Success

• Scalable Unconventional

EOR Implementation

• New Anthropogenic

CCUS Project Online

• Expand Unconventional

& Anthropogenic EOR

Footprint

Replenish High-Return Unconventional Inventory and Delineate Additional Acreage

Oman

• Seismic New Blocks

• Exploration Wells

• Appraisal Drilling

• Block 62 Hub Expansion

• Development Plan

Execution

• New Blocks First

Production

• Production Ramp-Up

Abu Dhabi

• Seismic ON-3

• Exploration Well

• Al Hosn Debottlenecking

Pre-FEED



FEED

• ON-3 Development

• Exploration and

Appraisal Wells


Execution

• ON-3 Production

• 1st Production from

Debottlenecking

Colombia

• Seismic New Blocks

• Initiate TECA Steam

Flood Development

• Seismic Processing


• TECA Execution

• New Blocks

Development

• TECA Ramp-Up

• New Blocks

Production Ramp-Up

Road Map to 2022 Cash Flow Growth

1Cash flow from operations before working capital, Production Growth CAGR from 2018 to 2022: Permian Resources 24%, International 6% excluding Qatar

Note: 2020 - 2022 assumes $60 WTI/$70 Brent, $3.00 MID-MEH differential, Capital of $5.0 - $5.3 B

$9.0 B

2019 2020 2021 2022

20

22

Ca

sh

Flo

w F

rom

Op

era

tion

s1

Permian$6.0 B

OxyChem

Midstream$1.7 B

International

$2.1 B

Corporate,

Interest & Other

($0.8 B)

8

$0.00

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

$3.50

-

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Dividends $ MM Share Repurchases $ MM Dividends per Share $

Oxy Consistently Returns Capital to Shareholders

Note: 2013 dividend total adjusted to reflect that 1Q13 dividend was paid in 4Q12

$ M

M R

etu

rne

d t

o S

ha

reh

old

ers

Dividend Sustainable at $40 WTI

Consecutive Dividend Growth Since 2002 - 12% CAGR

$33 B of Total Capital Returned Since 2002

Over 70% of Market Capitalization Returned to Shareholders

Strong Balance Sheet - A/A3/A Credit Ratings

13% Annualized TSR since 2002

Div

ide

nd

s p

er S

ha

re

9




• Permian Update


• Closing Remarks

10

4Q18 Results

Note: See the reconciliations to comparable GAAP financial measures on our website

Reported diluted EPS $0.93

Core diluted EPS $1.22

4Q18 CFFO before working capital & other $1.9 B

4Q18 capital expenditures $1.3 B

Dividend payments $0.6 B

Share repurchases $0.3 B

Cash balance as of 12/31/18 $3.0 B

Total reported production (Boed) 700,000

Total Permian Resources production (Boed) 250,000

4Q18 Actual versus Guidance

Midpoint ReconciliationBoed

• Permian Resources execution

and well productivity+5,000

• PSC impact of higher prices

• Weather and accelerated

maintenance

(5,000)

4Q18 Earnings Notes After-tax

Income

• Impairment charge ($220 MM)

• Lower effective tax rate $224 MM

11

2019 Guidance

Oil & Gas Segment

• FY 2019E Production

> Total production of 715 - 730 Mboed

> Permian Resources production of 278 - 288 Mboed

> International production of 278 - 283 Mboed

• 1Q19E Production

> Total production of 706 - 713 Mboed

> Permian Resources production of 256 - 261 Mboed

> International production of 293 - 295 Mboed

• International production is estimated at Brent 2019

calendar strip as of 2/1/2019

Production Costs – FY 2019E

• Domestic Oil & Gas: ~$11.00 / boe

Exploration Expense

• ~$40 MM in 1Q19E

• ~$130 MM in FY 2019E

DD&A – FY 2019E

• Oil & Gas: ~$13.50 / boe

• OxyChem and Midstream: $700 MM

Midstream

• $150 - $200 MM pre-tax income in 1Q19E

> Midland - MEH spread of $8.50 - $9.50 / Bbl

OxyChem

• ~$235 MM pre-tax income in 1Q19E

• $925 - $975 MM pre-tax income in FY 2019E

Corporate

• FY 2019E Domestic tax rate: 21%

• FY 2019E International tax rate: 45%

• Interest expense of $95 MM in 1Q19E

12




• Permian Update


• Closing Remarks

13

2018 Permian Highlights

1See the reconciliations to comparable GAAP financial measures on our website

216%

+77

9%

Permian Reserves

Replacement Ratio1

Permian Production

Growth (Mboed)

Permian Opex/boe

Reduction

Permian Resources

Permian EOR

> Progressing anthropogenic CO2 sourcing strategy with

800,000 metric tons of anthropogenic CO2 sequestered

> 1 new CO2 flood and 10 expansions

> $8 reduction in Seminole San Andres Unit opex/boe

> 100% reserves replacement ratio1

> 52% annual average production growth

> 25% improvement in 6 month cumulative well productivity

> 10% reduction in opex/boe

> 300% reserves replacement ratio1

> Operator with the most top 50 wells in the Permian

> Aventine maintenance and logistics hub complete

> 19% improvement in feet drilled per day

> Completed 37,000 net acre trades

14

0%

25%

50%

75%

100%

Capital

Type

Growth

Capex

Rigs Wells

Permian Resources 2019 Disciplined Investment Plan

2019 Capital Program

Drilling

and

Completion

Facilities

OBO

Base Maint.

New

Mexico

TX

Delaware

OBO

Development

Appraisal

$2.6 B

Capex

~$1.2 B

Sustaining

180 - 190

Wells Online

High-margin

Growth

30-35% 2019 annual production

growth expected

Progressing

Technology

Deep Inventory17 years of inventory with less

than $50 WTI breakeven

Flexible

Ability to ramp-down to sustaining

capex of ~$1.2 B in less than 6

months

High ReturnsFocused development in

proven, high-return areas

EOR unconventional, data analytics,

and subsurface characterization

Max Price

RealizationsTakeaway capacity with access to

world markets

13 – 14

Rigs

Sustaining

Capex

Growth

Capex

15




• Permian Update


• Closing Remarks

1616

• 1.5 million gross acres

• 35-year concession

with 30-year development rights

• High potential location> Prolific fields nearby

> Adjacent to Oxy’s Al Hosn Field

> Key targets already identified

> Leverage Oxy’s regional technical knowledge and

operational excellence

• Low initial exploration expenditures> Seismic acquisition and interpretation

> First exploration drilling starts late in 2019

Abu Dhabi

Block ON-3

17




• Permian Update


• Closing Remarks

18

Growth within Cash Flow

Oxy’s Sustainable Value Proposition

CROCE

Leadership

Returns Focused Growth

Environmental, Social and Governance

Integrated Business Model

Robust, Low-Cost Inventory

Long-Term Production Growth of 5 - 8+% while Targeting a Return

of Over $3.1 B in Cash to Shareholders in 2019

Permian Resources is Driving High-Return Growth with the Best Wells in the

Permian Basin and Benefits from an Advantaged Cost Position

Industry Leading Base Decline Rate in Oil and Gas, Sustainable Cash Generation

from OxyChem, Expanded Global Market Access Through Midstream Business

Decades of Global Inventory: Conventional, Unconventional,

EOR (CO2, Water, Steam, & Gas Injection)Diverse Inventory and Recovery Techniques

Enhance Sustainable Cash Flow

Executive Compensation Aligned with Shareholder Value CreationUniquely Positioned to Advance CCUS

Proactive Social Responsibility Programs WorldwideIndustry Leading Human Capital

19

Appendix Contents

• Financial Information

• Social Responsibility, Environment and Governance

• Oil and Gas Updates

• 2018 Reserves

• OxyChem Update

20

Cash Flow Sensitivities in 1Q19

Oil & Gas

• Annualized cash flow changes ~$130 MM per ~$1.00 / bbl change in oil prices

> ~$100 MM per ~$1.00 / bbl change in WTI prices

> ~$30 MM per ~$1.00 / bbl change in Brent prices

• Annualized cash flow changes ~$35 MM per ~$0.50 / Mmbtu change in natural gas prices

• Annualized production changes 800 – 1,000 Boed per ~$1.00 / bbl change in Brent prices

OxyChem

• Annualized cash flow changes ~$30 MM per ~$10 / ton change in realized caustic soda prices

Midstream

• Annualized cash flow changes ~$45 MM per ~$0.25 / bbl change in Midland to MEH spread

> ~35 day lag due to trade month

21

• ~$1.3 B repurchased in 2018

• Completion expected in 2019

Cash Flow Priorities

Annual Operating Cash

Inflows

Sustaining Capital

at $40 WTI

A Growing

Dividend

5% - 8% Production

Growth

Share Buybacks &

Cash on Balance

Sheet

Estimated Cash Flows ($)1

CFFO$50 WTI

CFFO $60+ WTI

1Estimated cash flows assuming mid-cycle earnings in OxyChem and Midstream and exclude working capital

Annual Operating

Cash Inflows

Cash Flow Breakeven at LowOil Prices

$2 B+ Share Repurchase Program

Free Cash Flow Generation

• $40 WTI – maintain dividend and

production

• $50 WTI – grow dividend and grow long-term production by 5 - 8+%

Share Repurchases

& Cash on Balance

Sheet

Sustaining Capital

At $40 WTI

Dividend 5 - 8+% Long-term

Production Growth

CFFO$40 WTI

• At higher commodity prices,

Oxy is positioned to generate

excess free cash flow (after dividend payment) to increase

cash returns to shareholders

22

2018 Cash Flow and Cash Balance Reconciliation

Beginning Cash

Balance 1/1/18

CFFO Before

Working Capital

Asset Sales Dividends & Share

Repurchases

Capital Expenditures Other Ending Cash

Balance 12/31/18

$3.0

($3.6)

$8.1

$1.7

($5.0)

$2.8

$ B

($1.0)

23

Appendix Contents




• 2018 Reserves

• OxyChem Update

24

Commitment to Safety and the Environment

Safety commitment extends to

contractor workforce

Nearly nine times better than the

U.S. private industry average

Safety first culture embraced from

top to bottom of organization

CO2 EOR leader permanently

sequestering over 800,000 metric

tons of anthropogenic CO2 per year

Advance carbon offsets through CCUS

investment

Collaborative solutions through Oil &

Gas Climate Initiative

Focused on optimizing the use of

low-quality produced water

History of water management

through Permian EOR water floods

Less than 10% of water used in

Permian Resources is fresh water

Safety remains top priority Advantaged in Low

Carbon Scenarios

Water Conservation and

Recycle Leadership

0.322018 Employee and

Contractor IIR1

Safety Remains our

Top Priority

25.82017 GHG Emissions

Intensity2

0.0172017 Total Water

Usage Intensity3(Tonne CO2e/Mboe) (BBL/BOE)

1Global Injury and Illness Incidence Rate – incidents per 100 workers2GHG emissions intensity calculated as direct equity global oil and gas emissions (scope 1) as reported to CDP divided by total net production3Water usage intensity calculated as total equity global oil and gas water withdrawn, independent of salinity, divided by total net production

25

0

40

80

120

160

2017 2018 2019E

Ne

w M

exi

co

Wa

ter

Re

cyc

le

Ca

pa

cit

y (

MB

WP

D)

$3.50

$2.10

$0.75 $0.45

$-

$1

$2

$3

$4

Original Improved 2017 CurrentC

ost

/ b

bl o

f w

ate

rTruck Produced

Water

+ Truck Frac Water

Pipe Produced

Water

+ Truck Frac Water

2017 Recycle

Produced Water

for Frac Water

2018 Recycle

Produced Water

for Frac Water

Investment in New Mexico Water Infrastructure

New Mexico Water Recycle Cost Savings Per Barrel

4X Increase

Water Infrastructure Drives Value & Environmental Benefits

• New water recycling technology

implemented in New Mexico

> Greater than 80% of water used in

2019 will be recycled

> Targeting to use less than 1% fresh

water in 2019

• Expanding recycled water

technology to TX Delaware in

2019

Improve Water

Handling

Implement

Recycling

Improve Water

Recycling Technology

26

1Emissions for the production and the gathering and boosting segments, as reported to EPA under the Greenhouse Gas Mandatory Reporting Rule - Subpart W, which covers the petroleum and natural gas industry2Wells reported to EPA under Subpart W of the Greenhouse Gas Mandatory Reporting which covers onshore wells, excluding divested and out of production

Note: Selected Peers: APA, APC, COP, CVX, CXO, DVN, EOG, FANG, PXD, XOM

Note: Sources: IHS Enerdeq for 2017 Basin Production, EPA Flight tool for 2017 publically reported emissions

Pe

rmia

n G

ree

nh

ou

se

Ga

s In

ten

sit

y1(m

tC

O2e

pe

r M

bo

e)

Pe

rmia

n G

ree

nh

ou

se

Ga

s In

ten

sit

y1(m

tC

O2e

pe

r M

bo

e)

Permian Reported Well Count2

Gro

ss 2

01

7 P

erm

ian

Pro

du

cti

on

(M

bo

ed

)

0

5

10

15

20

25

30

35

40

45

50

0 5,000 10,000 15,000 20,000 25,000

Size of bubble reflects relative gross 2017 Permian production

Low Emission Intensity with Leading Basin Production Low Emission Intensity with More Operated Wells

Permian Emissions

0

100

200

300

400

500

0

10

20

30

40

50

OX

Y

Pe

er

1

Pe

er

2

Pe

er

3

Pe

er

4

Pe

er

5

Pe

er

6

Pe

er

7

Pe

er

8

Pe

er

9

Pe

er

10

OXY

27

Appendix Contents




• 2018 Reserves

• OxyChem Update

28

-50

0

50

100

150

200

250

0 90 180

Permian Resources Hz Unconventional Well Performance

Continuous Improvement in Permian Resources Well Performance

• Subsurface

Characterization

• Data Analytics

• Innovative Well

Designs

• Oxy Drilling

Dynamics

• Focused

Development

2015

2016

2017

2018

147% Improvement since 2015

25% Improvement from 2017 to 2018

Note: Data includes all horizontal Permian unconventional wells online in each year.

Cu

mu

lati

ve M

bo

e

Days

29

3,403

3,188

3,923

2017

1H18

2H18

Peak 30 Day Production (Boed)1

-

50

100

150

200

250

300

350

400

1 31 61 91 121 151 181

Core Development Areas Delivering Impressive Results – Greater Sand Dunes

Subsurface Characterization is Driving Basin

Leading Results

• Integrated workflows with seismic integration

• Customized development to maximize section value> Landing and spacing optimization

> Value-based well designs

> Life of field development plans

• Lost Tank Wolfcamp Appraisal Well: Lost Tank 30-19 Fed Com 31H> 5,207 Boed Peak 24hr

> 4,546 Boed Peak 30 Day

• Continued basin leading Bone Spring results in 4Q:> 19 Wells Online ~7,985 ft

> Avg IP 24 = 4,327 Boed1

> Avg IP 30 = 2,993 Boed1

• 92% of wells online in 2018 have an offset producing well

Days Online

2018

52 Wells ~9,950’

25% Better Than the Average

New Mexico Operator2

~9,900’

1Three stream production results2Peer data sourced from IHS Performance Evaluator and represents an average of Peers with greater than two wells online in 2018 for New Mexico Bone Spring wells with a lateral length greater than 9,500 ft

Greater Sand Dunes Bone Spring - 10K wells

Greater Sand Dunes Bone Spring - 10K wells

Cumulative Production (Mboe)

30 wells

8 wells

22 wells

30

2,572

2,856

2,897

2017

1H18

2H18

0

50

100

150

200

250

0 30 60 90 120 150 180

Scalable Performance Improvements Increasing

Asset Value

• New well design and subsurface characterization improving well

results> Landing optimization based on seismic

> Increased completion effectiveness through higher pump rates and

improved sand placement

• Large contiguous acreage position with large inventory

• Multi-bench development utilizes existing infrastructure

• 33% improvement in drill days from 2017 to 2018

• Improvements generating peer-leading 4Q results in Southern

Delaware> 9 Wells Online ~8,375 ft

> Avg IP 24 = 3,186 Boed1

> Avg IP 30 = 2,418 Boed1

• 90% of wells online YTD have an offset producing well

Core Development Areas Delivering Impressive Results – Barilla Draw

Days Online

2018

7 Wells ~10,000’

45% Better Than the

Average TX Delaware

Operator2

~10,000’

1Three stream production results2Peer data sourced from IHS Performance Evaluator and represents an average of Peers with greater than two wells online in 2018 for Wolfcamp oil wells in Texas Delaware with a lateral length greater than 9,500 ft

2018 New Well Design

14 Wells ~10,100’

Barilla Draw Wolfcamp A & Hoban - 10K wells

Peak 30 Day Production (Boed)1

Barilla Draw Wolfcamp A & Hoban - 10K wells

Cumulative Production (Mboe)

13 wells

3 wells

8 wells

31

1,250

2,250

3,250

4,250

December-17 March-18 May-18 August-18 November-18

2,000

4,000

6,000

8,000

10,000

December-17 March-18 May-18 August-18 November-18

Note: Data sourced from IHS Enerdeq as of 1/22/2018 for the period 12/2017 – 12/2018. Data for three Oxy wells were sourced from internal data as records were not yet available in IHS Enerdeq.

Oxy has 20 of the top 50 Wells in the Permian Basin Leading Wells with Less Proppant

Oxy Wells Competitor Wells Oxy Wells Competitor Wells

IP 2

4 H

ou

rB

OP

D

Pro

pp

an

t#

/ft

Oxy Average

Proppant #/ft

Competitor Average

Proppant #/ft

+29%

Permian Resources Delivers Basin Leading Wells

Oxy has the most top 50 wells of any operator in the Permian

32

Well NameLateral

Length (ft)

Peak 24 Hr

(boed)

Peak 30

Day (boed)

Oil

(%)

Brushy Canyon Federal 23 13H 4,376 899 833 90%

Mesa Verde BS Unit 1H 9,799 2,872 2,709 74%

Mesa Verde BS Unit 3H 9,753 3,002 2,680 72%

1st

BSS Cedar Canyon 16 State 1H 3,475 1,267 968 67%

Corral Fly 35-26 Fed Com 21H 9,880 7,970 5,959 77%

Corral Canyon 36-25 Fed Com 21H 11,194 5,245 4,673 78%

Corral Fly 35-26 Fed Com 22H 9,876 5,016 4,053 78%

Cedar Canyon 23 Fed Co 6H 7,241 4,518 3,963 75%

Sunrise MDP1 8 5 Fed Com 2H 9,857 5,364 3,911 83%

Corral Canyon 36 25 Fed Com 22H 11,191 4,928 3,901 77%

Oxy Total 2018 Average 7,862 3,135 2,423 79%

Cedar Canyon 21-22 FED Com 32H 9,851 5,834 3,916 68%

Cedar Canyon 23 24 Fed 32H 7,235 6,497 3,693 69%

Cedar Canyon 23 24 Fed Com 34H 7,172 4,876 3,338 73%

Cedar Canyon 21 22 Fed Com 34H 9,820 3,751 3,286 75%




CORRAL FLY 02-01 STATE 032H 9,876 6,003 4,021 72%


LOST TANK 30-19 FED COM 31H 10,004 4,671 4,038 74%



Cedar Canyon 27 10H 4,215 1,645 1,486 73%

Janie Conner 204H 4,500 1,980 1,221 78%

B Banker 226H 4,400 1,874 1,030 76%

Janie Conner 221H 4,522 2,282 1,809 39%

Tiger 14 24S 28E 224H 4,376 1,719 1,417 47%

Target Formation

Recent Well Results

2nd

BSS

3rd

BSS

Wolfcamp XY

Wolfcamp A

Wolfcamp D

Avalon

Wells included in table include non-operated wells. Production data is from internal system for operated wells and from operator data and IHS Enerdeq for non-op wells where available.

Wells in blue font were turned to production in 4Q18. All boe data is based on two-stream well tests.

Average shown for all benches with multiple wells in 2018.

Barilla Draw Type LogGreater Sand Dunes

Proven Economic Delineating

Results in Greater Sand Dunes Area Multi-Bench Development

Brushy Canyon

Avalon

1st Bone Spring

2nd Bone Spring

3rd Bone Spring

Wolfcamp X-Y

Wolfcamp A

Wolfcamp D

6,0

00

ft

33

Well NameLateral

Length (ft)

Peak 24 Hr

(boed)

Peak 30

Day (boed)

Oil

(%)

Avalon Evaluating

1st

BS Evaluating

Collie A East N63H 9,725 1,370 1,155 81%

Aardvark State 6 2H 4,947 1,254 821 87%

A Herring 94-93-7N 74H 9,751 1,647 1,360 78%

Morrison, HB 73H 4,927 854 864 75%

SARAH LINK 3-2-1W STATE 81H 9,930 3,503 2,793 79%

TOYAH 4-9-6N 83H 10,302 3,280 2,490 78%

TOYAH 4-9-6N 84H 10,402 2,684 2,133 79%

TOYAH WEST 4-9 82NH 10,193 2,407 2,062 78%


Peck 258-257-1N State 11H 9,767 5,652 4,299 76%

Chapman State 32-41-4S 15H 10,147 4,485 3,544 81%

Lyda 33-40-3S State 13H 10,105 5,042 3,373 81%

Lyda 33-40-1S State 16H 10,164 3,724 3,202 84%

SARAH LINK 3-2-2W STATE 12H 9,952 3,662 2,941 79%

Lyda 33-40-2S State 12H 10,158 3,839 2,813 81%

Janey State 24-25-2N 15H 10,147 2,948 2,736 79%

Janey State 24-25-1N 16H 10,147 2,996 2,594 83%


Agate 179-142-3S 25H 7,439 2,088 1,731 73%

Daytona Unit 1B 2H 6,947 1,897 1,544 79%

Agate 179 142 2S 21H 7,197 1,941 1,469 80%


A Herring 94-93-6N 33H 10,199 2,521 1,758 81%

Lemur 24 1H 4,251 1,125 937 81%

Target Formation

Recent Well Results

2nd

BS

3rd

BS

Hoban

Wolfcamp B

Wolfcamp C

Wolfcamp A

Wells included in table include non-operated wells. Production data is from internal system for operated wells and from operator data and IHS Enerdeq for non-op wells where available.

Wells in blue font were turned to production in 4Q18. All BOE Data is based on two-stream well tests.

Average shown for all benches with at least three wells in 2018. Wolfcamp DF wells now combined with Wolfcamp A wells.

Barilla Draw Type LogGreater Barilla Draw

Proven Economic Delineating

Results in Greater Barilla Draw Area Multi-Bench Development

Avalon

1st Bone Spring

2nd Bone Spring

3rd Bone Spring

Wolfcamp A/DF

Wolfcamp C

4,5

00

ft

Wolfcamp B

Hoban

34

Permian Scale and Operating Capability Reduces Costs• Full life-cycle wellbore

planning

• Data analytics integration

• Operational excellence

> Lower costs

> Water recycling

> Maximize recovery

• Downhole maintenance

and cost reduction

> Root cause failure analysis

> Organizational structure

and focus

> Chemical program

> Variable speed drives

2019 Not even at

4Q18 goal

Total Opex incl. OBO

$12.93

$11.17

$8.43$8.00

$7.23

$6.51

$-

$4.00

$8.00

$12.00

2014 2015 2016 2017 2018 4Q18

Permian Resources Total Opex/boe

Surface Downhole Supports Energy Other

Oxy Operated Opex/boe

December 2018 = $6.04

35

0

2,000

4,000

6,000

8,000

10,000

12,000

Breakeven

<$50

Breakeven

<$60

Breakeven

<$70

Additional

Inventory

Permian Resources High Value Inventory

3,059

3,992

5,048

10,453

Midland

Basin

Texas

Delaware

Basin

New Mexico

Delaware

Basin

Note: Breakeven defined as positive NPV 101As of 12/31/2018

Un

de

velo

pe

d D

rillin

g L

oca

tio

ns

1

Permian Resources

Inventory 4Q18

• Increased average length of

total inventory from

~7,750 ft to ~7,850 ft

• Continue to lower

breakevens within the <$50

breakeven category

> 17 years of inventory

with less than $50

WTI breakeven at a 10

rig per year pace

36

Permian Resources

• Significant growth potential in

all development areas

• ~640,000 net

unconventional acres within

the Delaware and Midland

Basin boundaries

• ~340,000 net acres

associated with 10,453

wells in unconventional

development inventory

• Resources – Unconventional Areas 1.35

• Enhanced Oil Recovery Areas 1.35

Oxy Permian Total ~2.7 MM

Net

Acres1Business Area Acreage

Permian Resources Acreage Permian EOR Acreage

NM Delaware Basin

TX Delaware Basin

Midland Basin

Central Basin

Platform

New Mexico NW Shelf

1Includes surface and minerals.

Note: Acreage as of 12/31/2018

37

Growth Opportunities

Colombia

Acquired 6 New Prospective Blocks:

• LLA-39 & LLA-52 in Llanos Basin

• Put-9, Mecaya, Terecay & Tacacho in Putumayo

Basin

> Increases Colombia acreage from 0.3 to ~2

million gross acres

> More than 700 Mmboe of resources

> Contiguous to existing infrastructure

> Analog to successful areas where Oxy has

Geology & Geoscience knowledge and

operational experience

> Plan to start exploration activities in 2019

Barranquilla

Medellin

Bogota D.C.

Mocoa

Venezuela

TACACHO

TERECAYPUT-9

MECAYA

City

Occidental

Occidental New

Blocks

Blk 15 – Former

Oxy Operations

Ecuador

protected Areas

38

Appendix Contents




• 2018 Reserves

• OxyChem Update

39

Total Company

Reserve

Replacement

2018

164%

All-In

149% Organic

YE 2017 Reserves Production Additions Acquisitions &

Sales

YE 2018 Reserves

2,598 (240)

357 2,75237

73% Proved

Developed

75% Liquids

Note: All reserves are in Mmboe

2018 Reserve Additions Through Program Execution

96% or 379 MMBOE Reserve Additions prior to price revision

Organic

Reserve

Replacements

40

Successful Drilling and A&D Programs

Positive total-company performance

revisions

~300% Permian Resources reserve

replacement in 2018

Improved productivity and lower well

costs in Permian Resources

Purchased ~37 Mmboe more barrels

than sold in Permian transactions in

2018

$17.14

$12.80

5 Year Average 2018

F&

D C

osts

(O

rga

nic

)1

1See the reconciliations to comparable GAAP financial measures on our website

$17.04

$12.29

5 Year Average 2018

F&

D C

osts

(A

ll S

ou

rce

s)1

Program Execution Highlights

41

Appendix Contents




• 2018 Reserves

• OxyChem Update

42

OxyChem: Market Leading Position

1 OxyChem pre-tax earnings excluding special items

0

500

1000

1500

2010 2011 2012 2013 2014 2015 2016 2017 2018

$ M

M

OxyChem Pre-Tax Earnings (EBIT)1

4C

Pe

Pla

nt

Market Overview

• Caustic soda supply-demand balance is favorable

• No major global capacity expansions

• Core caustic demand driven by Aluminum and Pulp and Paper

• PVC demand continues to improve as global population expands

• Major global exporter of all core products

• Top tier global producer in every product produced

> Largest merchant caustic soda seller in the world

> Largest VCM exporter in the world

> 2nd largest chlor-alkali producer in the world

> Largest caustic potash producer in the world

• Recent growth projects delivered on time and on budget, increasing earnings base

• Only 4 time winner of the American Chemistry Councils Sustained Excellence Award

• Positive cash flow generation throughout cycle

• Integrated assets capture benefits of favorable market conditions

• Global export portfolio leverages low domestic natural gas prices

Earnings HighlightsOxyChem at a Glance

Occidental Petroleum Corporation February 13, 2019...> Aventine maintenance and logistics hub...

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