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Vicki HollubChief Executive Officer
Scotia Howard Weil Energy ConferenceOccidental PetroleumMarch 27, 2018
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.
Value-Added Growth
Reducing Breakevens
Consistent Dividend Growth
Oxy’s Unique Value Proposition
Returns Focused Growth
> 5% – 8+% average production growth in oil & gas
> Above cost-of-capital returns (ROE and ROCE)
> Return Targets: Domestic – 15+% International – 20+%
Strong Balance Sheet
> Maintain ample cash balance and sources of liquidity
> Low debt-to-capital ratio
> Income-producing assets
> Growing dividend with an attractive yield
> Value protection in down cycle
> Promotes capital allocation discipline
Disciplined Reinvestment
ROCE Leadership
5% - 8+%
Low-Cost Inventory
Industry-Leading Decline Rate
~15% in 2018
Technology and Innovation
Social and Environmental
Leadership3
4
Subsurface Technical Excellence
Operational Efficiency & Speed
Logistics & Strategic Partnerships
Infrastructure Investment
Product Transport & Realizations
Enhanced Recovery
Shaping Oxy’s Competitive Advantage
Subsurface Technical
ExcellenceBasin-leading
Wells
Operational
Efficiency & Speed
New Mexico D&C
Outperformance
Logistics & Strategic
Partnerships
Aventine
Logistics Hub
Infrastructure
Investment
Leader in Water
Recycling
Production Transport
& Realizations
Oil Terminal &
Secure Takeaway
Enhanced Oil
Recovery
Unconventional
& CCUS
Leadership
Confidence in Permian Execution
5
Low-Cost Inventory – Reducing Breakevens
17 years of inventory <$50 breakeven with 10 rigs
Note: Breakeven defined as positive NPV 10 as of 12/31/2017
Un
dri
lle
d L
oca
tio
ns
4Q16 <$50
BE
Drilled 2017 Demonstrated
Cost
Improvement
Demonstrated
Well
Performance
Land
Improvement
Evaluated
New Acreage
Tax Reform 4Q17 <$50
BE
3,132Midland
Basin
Texas
Delaware
Basin
(118)175
150150
150
125
New
Mexico
Delaware
Basin
2,500
Exceeded <$50 Inventory Growth Goal
> Added 750 locations in 2017 vs 400 location goal
> Increased <$50 average lateral length from 8,400 ftto 8,500 ft
> Executed 17,000 net acre trades to enable longer laterals and consolidated facilities
6
-
50
100
150
200
250
300
350
0 30 60 90 120 150 180
3rd Bone Spring/Wolfcamp XY Performance
-
50
100
150
200
250
300
350
0 30 60 90 120 150 180
2nd Bone Spring Performance
Notes: 1Three stream production results. 2Excludes two 2nd Bone Spring wells shut-in for extended period for offset frac. 3 Only included wells with 30 days of data or more.
Oil (Bod)
Gas (Boed)
NGL (Boed)
2H17 Wells2 – Peak 30D Production Rates1
2nd Bone Spring
3rd Bone Spring
Wolfcamp XY
12 Wells ~6,500'
7 Wells ~7,900'
3 Wells ~5,400'
2,987
3,543
2,372
2016 Average
10 Wells ~5,000’
Cu
mu
lati
ve P
rod
ucti
on
(M
bo
e)
Days Online
2H17 – 10 Wells
~7,200’
2016 Average
6 Wells ~4,800’
2H17 - 14 Wells
~6,200’
Q1 2018 - 6 Wells3
~6,200’
Choke managed
appraisal well in
new area
Q1 2018 - 3 Wells3
~9,600’
Choke managed
appraisal well in
new area
• 2H 2017 Peak 30D ~3,100 Boed1
• 1Q 2018 Peak 30D ~ 3,200 Boed1
• Record 2-well pad in 1Q18 Peak 30 Day
>10,000 BOED1 - Wolfcamp XY ~9,700 ftPro
du
cti
vit
y
Sustainable Step Change in Well Results from 2H17 continues into 1Q18
Subsurface Technical Excellence – Basin-leading Wells
7
*Drilling days measured from rig release of the previous well to rig release of the current well, excludes shallow casing set by small rig.**1Q18 represents performance as of the date of this presentation.
New Mexico Drilling Performance
1H17 2H17 1Q18**
Feet Drilled Per Day*
749
839908
21% Increase
New Mexico Operational Highlights
Operational Efficiency and Well Design Improvements Are Reducing Time to Market and Improving Execution of Breakeven Plan
• Drilled 2nd Bone Spring 10,000 ft lateral well
in 14 days*
• Drilled 9,600 ft of lateral in 44 hours on the
Coral Fly 02-01 22H
• Designed, tested, and implemented four
10,000 ft wells with 5 ½’’ casing in 6 ¾’’ hole
• Increased stages per day 19% from 1H17
• Achieved 14 stages per day on the Cedar
Canyon 29 Fed 24H, 25H, and 26H.
Operational Efficiency & Speed – NM D&C Outperformance
8
• Pipe Yard has 16 rail car spots
• 50,000 tons of storage
• Pipe from rail line instead of trucked
from Houston
• 24-hour access with the ability to
service more than 20 rigs
Dedicated personnel, services and equipment:• Directional drilling
• Cementing
• Fracturing
• Wellhead and frac tree systems
• Northern white sand supply
• Regional sand supply
• Sand mine to Aventine logistics
• Sand transloading terminal operations
• Sand last mile logistics and wellsite
storage provider
- Service Provider Facility
- Sand Provider
- Facility Operator
- OCTG
Logistics & Strategic Partnerships – Aventine Logistics Hub
• HCl facility has 14 rail car spots
• OxyChem is the HCl provider
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 rail line
• Supports 10-12 rigs per year
• Secures availability of critical materials
• Reduces costs by $500 - $750 k per well
• Reduces spare equipment and personnel needed on location
• Reduction in last mile logistics cost
• Dedicated equipment maintenance facilities
• Savings start 1Q18, fully operational 2Q18
• Phase 2 will support production operationsHCl Provider
Lower Costs
8
HCl Facility
9
4Q17 Actual Market Inflation Aventine Logistics
Savings
Design/Efficiency
Improvements
2018 Target
We
ll C
ost
($M
M)
Drilling Completion Hookup
New Mexico Well Cost Improvements
Logistics: Project Aventine
Well design: Fluid optimization and produced water recycling
Operating: Reduced Time to Market
Breakeven Plan Sustainability Enhanced by Operating Efficiency and Logistics Savings
New Mexico 2nd Bone Spring 10,000’ Well Cost
$8.9
$0.6 ($0.8)($0.8)$9.9
• Reduction in sand related costs> Direct sourcing
> Last mile logistics
> Well-site logistics
• Less redundancy in well-site
equipment and supervision
• Reduced HCl costs
Note: Well costs include drilling, completion, hookup, flowback, 1st artificial lift, and capitalized overhead. Well design assumes 3-string casing with 2,000#/ft completion
10
Infrastructure Investment – Leader in Water Recycling
Delaware Basin Frac Water Usage
*Cost structure illustration based on Greater Sand Dunes development area
**Savings calculated using total water recycled of 5.8 MM bbls since project inception (mid-2016) multiplied by the savings of $1.35
($2.10/bbl to $0.75/bbl)
• Increasing Recycled Water Usage
from ~30% to ~50% in 2018
• Greater Sand Dunes Water
Recycling Project
> 80% of frac water YTD is recycled
produced water
> 5.8 MM bbls recycled since project
inception (mid-2016)
> Savings of $7.8 MM
11%
57%
32% Fresh Water
Brackish Water
Recycled Water
10%
40%50%
2017 Actuals 2018 Plan
$3.50
$2.10
$0.75
$-
$1
$2
$3
$4
Original Improved CurrentC
ost
/ b
bl o
f w
ate
r
Produced Water Costs Frac Water Costs Water Recycling
Truck Produced Water
+ Truck Frac Water
Pipe Produced Water
+ Truck Frac WaterRecycle Produced
Water for Frac Water
$1.50
$2.00$1.50
$0.60
$7.8 MM savings from
recycling program**
Greater Sand Dunes Cost Savings Per Barrel*
11
$12.93
$11.17
$8.43$8.00
$7.63
$-
$4.00
$8.00
$12.00
2014 2015 2016 2017 4Q17 4Q18E
Permian Resources Opex/BOE
Surface Downhole Supports Energy Other
Operating Capability Reduces Costs
• Water-handling
reducing surface
costs
• Lift optimization
reducing downhole
failure costs<$6.00
38% Improvement
12
Production Transport & Realizations – Ample Takeaway
Committed Oil Takeaway
Committed and 3rd
Party Gas Takeaway
Committed Oil & Gas Takeaway Ensures Products are Realized in Multiple Markets
> Multi-year firm oil commitments on four, third-party pipelines and 100% owned Centurion Pipeline
• Total capacity ~470 Mbod to Gulf Coast
• Retain flexibility on third-party volumes gathered and transported
• Cactus supplies Corpus Christi Oil Terminal
> Firm gas capacity in-basin to receipt points that move gas to multiple markets
• Provide optionality on gas realizations
• Additional firm capacity on Gulf Coast Express expected 4Q19
Texas
Permian & Waha
In-Basin Firm Capacity to Gas Hubs
New Mexico
13
Production Transport & Realizations – Corpus Christi Oil Terminal
Increasing Ingleside export capacity to 750,000 bopd
Oxy Ingleside – The Premier Crude Export Terminal
> Expansion underway for VLCC loading arms, tankage and piping
> Increasing capacity 2.5x to 750,000 bopd with 6.8 MMbbls of storage
> ~$315mm total capital with ~$115mm to be spent in 2018
> New Permian pipeline supply anticipated 2H19
2H
18
-2
01
9
VLCC
Suezmax
> Expanding Ingleside Terminal
• VLCC loading capability 4Q18
• Capacity increase 2H19
> Leading Permian Crude Marketer
with ~600,000 bopd
> Largest Permian crude exporter
Ingleside Oil Terminal
14
Compelling EOR scale and economics
EOR technologies have the potential to help manage the company’s GHG emissions – Occidental permanently sequesters billions of cubic feet of CO2 per year, including CO2 captured from anthropogenic sources
Less than 5% production decline reduces capital intensity and provides stable free cash flow
Expertise in CO2 EOR enables higher oil recovery fromexisting fields and is less environmentally intrusive by leveraging existing infrastructure
EOR positions us to be successful in a
carbon-constrained environment
> Permian Basin – CO2 EOR
> Colombia
> Qatar
> Oman
Enhanced Oil Recovery –Unconventional & CCUS Leadership
Leadership in CO2
EOR provides long-term competitive advantage
Emerging Unconventional Opportunities
Positioned and working to be a leader in a lower carbon future
Global EOR Scale, Position & Capability
4 Unconventional EOR Pilots
Inject 2.4 Bcfd of CO2
Sequestered ~800,000 MT of Anthropogenic CO2 in 2017
34 CO2 Floods; 70 Waterfloods
13 Gas Processing Plants
Driving the New Oxy Into the Future
Returns Leader
Low-cost Producer
Deep Inventory
Technology Innovator
Social and Environmental
Leader
15
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