EXHIBIT 99.3
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||||
2005 Third Quarter | ||||||||||||
Net Income (Loss) | ||||||||||||
($ millions) | ||||||||||||
Reported | Significant Items Affecting Income | Core | ||||||||||
Oil & Gas | $ | 1,760 | $ | 9 | Hurricane insurance charge | $ | 1,769 | |||||
Chemical |
| 3 |
| 159 | Write-off of plants |
| 167 | |||||
|
|
|
| 5 | Hurricane insurance charge |
|
| |||||
Corporate |
|
|
|
|
|
|
| |||||
Interest expense, net |
| (70 | ) |
| 30 | Debt repurchase expense |
| (40 | ) | |||
Other |
| 660 |
|
| (726 | ) | Sale of Premcor / Valero shares |
| (39 | ) | ||
|
|
|
| 15 | Equity investment impairment |
|
| |||||
|
|
|
| 2 | Equity investment hurricane |
|
| |||||
|
|
|
|
| insurance charge |
|
| |||||
|
|
|
| 10 | Hurricane insurance charge |
|
| |||||
Taxes |
| (611 | ) |
| 178 |
| Tax effect of adjustments |
| (768 | ) | ||
|
|
|
| (335 | ) | Tax reserve reversal |
|
| ||||
Income from continuing operations |
| 1,742 |
|
| (653 | ) |
|
| 1,089 |
| ||
Discontinued operations, net of tax |
| 2 |
|
| (2 | ) | Discontinued operations, net |
| -- |
| ||
Cumulative effect of acct changes, net | 3 | (3 | ) | Cumulative effect of acct chg | -- | |||||||
Net Income | $ | 1,747 | $ | (658 | ) |
| $ | 1,089 | ||||
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| ||
Income from continuing operations | $ | 4.31 |
|
|
| $ | 2.69 | |||||
Discontinued operations, net |
| -- |
|
|
|
| -- | |||||
Cumulative effect of acct changes, net | 0.01 |
|
| -- | ||||||||
Net Income | $ | 4.32 |
| $ | 2.69 | |||||||
1
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||||
2004 Third Quarter | ||||||||||||
Net Income (Loss) | ||||||||||||
($ millions) | ||||||||||||
Reported | Significant Items Affecting Income | Core | ||||||||||
Oil & Gas | $ | 1,216 |
|
|
| $ | 1,216 | |||||
Chemical |
| 141 |
|
|
|
| 141 | |||||
Corporate |
|
|
|
|
|
|
| |||||
Interest expense, net |
| (59 | ) |
|
|
|
| (59 | ) | |||
Other |
| (44 | ) |
|
|
|
|
| (44 | ) | ||
Taxes |
| (495 | ) |
|
|
|
|
| (495 | ) | ||
Income from continuing operations |
| 759 |
|
| -- |
|
|
| 759 |
| ||
Discontinued operations, net of tax | (1 | ) | 1 |
| Discontinued operations, net | -- | ||||||
Net Income | $ | 758 | $ | 1 |
|
| $ | 759 | ||||
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| ||
Income from continuing operations | $ | 1.91 |
|
|
| $ | 1.92 | |||||
Discontinued operations, net of tax | -- |
|
| -- | ||||||||
Net Income | $ | 1.91 |
| $ | 1.92 | |||||||
2
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||||
2005 First Nine Months | ||||||||||||
Net Income (Loss) | ||||||||||||
($ millions) | ||||||||||||
Reported | Significant Items Affecting Income | Core | ||||||||||
Oil & Gas | $ | 4,434 | $ | 26 | Contract settlement | $ | 4,469 | |||||
|
|
|
| 9 | Hurricane insurance charge |
|
| |||||
Chemical |
| 442 |
| 159 | Write-off of plants |
| 606 | |||||
|
|
|
| 5 | Hurricane insurance charge |
|
| |||||
Corporate |
|
|
|
|
|
|
| |||||
Interest expense, net |
| (178 | ) |
| 41 | Debt repurchase expense |
| (137 | ) | |||
Other |
| 682 |
|
| (140 | ) | Sale of Lyondell shares |
| (157 | ) | ||
|
|
|
| (726 | ) | Sale of Premcor / Valero shares |
|
| ||||
|
|
|
| 15 |
| Equity investment impairment |
|
| ||||
|
|
|
| 2 |
| Equity investment hurricane |
|
| ||||
|
|
|
|
|
| insurance charge |
|
| ||||
|
|
|
| 10 |
| Hurricane insurance charge |
|
| ||||
Taxes |
| (1,256 | ) |
| 225 |
| Tax effect of adjustments |
| (1,975 | ) | ||
|
|
|
| (335 | ) | Tax reserve reversal |
|
| ||||
|
|
|
| (619 | ) | Settlement of federal tax issue |
|
| ||||
10 | State tax charge | |||||||||||
Income from continuing operations |
| 4,124 |
|
| (1,318 | ) |
|
| 2,806 |
| ||
Discontinued operations, net |
| 2 |
|
| (2 | ) | Discontinued operations, net |
| -- |
| ||
Cumulative effect of acct changes, net | 3 |
| (3 | ) | Cumulative effect of acct chg | -- | ||||||
Net Income | $ | 4,129 | $ | (1,323 | ) |
| $ | 2,806 | ||||
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| ||
Income from continuing operations | $ | 10.25 |
|
|
| $ | 6.97 | |||||
Discontinued operations, net |
| -- |
|
|
|
| -- | |||||
Cumulative effect of acct changes, net | 0.01 |
|
| -- | ||||||||
Net Income | $ | 10.26 |
| $ | 6.97 | |||||||
3
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||||
2004 First Nine Months | ||||||||||||
Net Income (Loss) | ||||||||||||
($ millions) | ||||||||||||
Reported | Significant Items Affecting Income | Core | ||||||||||
Oil & Gas | $ | 3,111 |
|
|
| $ | 3,111 | |||||
Chemical |
| 289 |
|
|
|
| 289 | |||||
Corporate |
|
|
|
|
|
|
| |||||
Interest expense, net |
| (187 | ) |
| 11 | Trust preferred redemption |
| (176 | ) | |||
Other |
| (139 | ) |
|
|
|
|
| (139 | ) | ||
Taxes |
| (1,242 | ) |
| (20 | ) | IRS settlements |
| (1,266 | ) | ||
|
|
|
|
| (4 | ) | Tax effects of adjustments |
|
|
| ||
Income from continuing operations |
| 1,832 |
|
| (13 | ) |
|
| 1,819 |
| ||
Discontinued operations, net of tax | (6 | ) | 6 |
| Discontinued operations, net | -- | ||||||
Net Income | $ | 1,826 | $ | (7 | ) |
| $ | 1,819 | ||||
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
| ||
Income from continuing operations | $ | 4.65 |
|
|
| $ | 4.62 | |||||
Discontinued operations, net of tax | (0.02 | ) |
|
| -- | |||||||
Net Income | $ | 4.63 |
| $ | 4.62 | |||||||
4
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 | Third Quarter | Nine Months | |||||||
| 2005 | 2004 | 2005 | 2004 | |||||
Oil & Gas |
|
|
|
|
|
|
|
| |
Exploration impairments | (1 | ) | (14 | ) | (86 | ) | (59 | ) | |
|
|
|
|
|
|
|
|
| |
Corporate |
|
|
|
|
|
|
|
| |
Environmental remediation | (10 | ) | -- |
| (29 | ) | -- |
| |
5
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
|
| QUARTERLY |
| YEAR-TO-DATE |
| ||||||
|
| 2005 |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
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 |
| (326 | ) |
Pre-tax income |
| 2,353 |
| 1,576 |
| 1,254 |
| 5,380 |
| 3,074 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
| 185 |
| (256 | ) | 278 |
| 278 |
| 685 |
|
Foreign (a) |
| 426 |
| 300 |
| 217 |
| 978 |
| 557 |
|
Total |
| 611 |
| 44 |
| 495 |
| 1,256 |
| 1,242 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
| 1,742 |
| 1,532 |
| 759 |
| 4,124 |
| 1,832 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
| 26% |
| 3% |
| 39% |
| 23% |
| 40% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 2005 |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
Oil & Gas (a) |
| 1,769 |
| 1,351 |
| 1,216 |
| 4,469 |
| 3,111 |
|
Chemicals |
| 167 |
| 225 |
| 141 |
| 606 |
| 289 |
|
Corporate & other |
| (79 | ) | (113 | ) | (103 | ) | (294 | ) | (315 | ) |
Pre-tax income |
| 1,857 |
| 1,463 |
| 1,254 |
| 4,781 |
| 3,085 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax expense |
|
|
|
|
|
|
|
|
|
|
|
Federal and state |
| 342 |
| 312 |
| 278 |
| 997 |
| 709 |
|
Foreign (a) |
| 426 |
| 300 |
| 217 |
| 978 |
| 557 |
|
Total |
| 768 |
| 612 |
| 495 |
| 1,975 |
| 1,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Core income |
| 1,089 |
| 851 |
| 759 |
| 2,806 |
| 1,819 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide effective tax rate |
| 41% |
| 42% |
| 39% |
| 41% |
| 41% |
|
(a) Revenues and income tax expense include taxes owed by Occidental but paid by governmental entities on its behalf. Oil and gas pre-tax income includes the following revenue amounts by periods.
|
| 2005 |
| 2005 |
| 2004 |
| 2005 |
| 2004 |
|
|
| 263 |
| 226 |
| 149 |
| 676 |
| 382 |
|
6
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||
|
| Third |
| Second |
| 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 |
| (611 | ) | (44 | ) | (567 | ) | |||
Income from continuing operations |
|
| 1,742 |
|
| 1,532 |
|
| 210 |
|
Discontinued operations, net |
|
| 2 |
|
| 4 |
|
| (2 | ) |
Cumulative effect of acct changes, net |
| 3 |
| -- |
| 3 |
| |||
Net Income |
| $ | 1,747 |
| $ | 1,536 |
| $ | 211 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
| $ | 4.31 |
| $ | 3.81 |
| $ | 0.50 |
|
Discontinued operations, net |
|
| -- |
|
| 0.01 |
|
| (0.01 | ) |
Cumulative effect of acct changes, net |
| 0.01 |
| -- |
| 0.01 |
| |||
Net Income |
| $ | 4.32 |
| $ | 3.82 |
| $ | 0.50 |
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
| 26% |
|
| 3% |
|
| -23% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
OCCIDENTAL PETROLEUM | ||||||||||
|
| Third |
| Second |
| B / (W) |
| |||
Oil & Gas |
| $ | 1,769 |
| $ | 1,351 |
| $ | 418 |
|
Chemical |
|
| 167 |
|
| 225 |
|
| (58 | ) |
Corporate |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
| (40 | ) |
| (46 | ) |
| 6 |
|
Other |
|
| (39 | ) |
| (67 | ) |
| 28 |
|
Taxes |
| (768 | ) | (612 | ) | (156 | ) | |||
Net Income |
| $ | 1,089 |
| $ | 851 |
| $ | 238 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
| $ | 2.69 |
| $ | 2.12 |
| $ | 0.57 |
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
| 41% |
|
| 42% |
|
| 1% |
|
7
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||
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 | ||||
2005 3rd Quarter |
| $ | 167 |
|
2005 2nd Quarter |
| 225 |
| |
|
| $ | (58 | ) |
Sales Price |
|
| (22 | ) |
Sales Volume/Mix |
|
| 12 |
|
Operations/Manufacturing |
|
| (80 | ) * |
All Others |
|
| 32 |
|
TOTAL VARIANCE |
| $ | (58 | ) |
* Higher feedstock and energy costs
8
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||||||
|
| Third |
| Third |
| 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 |
| (611 | ) | (495 | ) | (116 | ) | |||
Income from continuing operations |
|
| 1,742 |
|
| 759 |
|
| 983 |
|
Discontinued operations, net |
|
| 2 |
|
| (1 | ) |
| 3 |
|
Cumulative effect of acct changes, net |
| 3 |
| -- |
| 3 |
| |||
Net Income |
| $ | 1,747 |
| $ | 758 |
| $ | 989 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
|
|
|
|
|
|
|
|
|
|
Income from continuing operations |
| $ | 4.31 |
| $ | 1.91 |
| $ | 2.40 |
|
Discontinued operations, net |
|
| -- |
|
| -- |
|
| -- |
|
Cumulative effect of acct changes, net |
| 0.01 |
| -- |
| 0.01 |
| |||
Net Income |
| $ | 4.32 |
| $ | 1.91 |
| $ | 2.41 |
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
| 26% |
|
| 39% |
|
| 13% |
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
OCCIDENTAL PETROLEUM | ||||||||||
|
| Third |
| Third |
| B / (W) |
| |||
Oil & Gas |
| $ | 1,769 |
| $ | 1,216 |
| $ | 553 |
|
Chemical |
|
| 167 |
|
| 141 |
|
| 26 |
|
Corporate |
|
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
| (40 | ) |
| (59 | ) |
| 19 |
|
Other |
|
| (39 | ) |
| (44 | ) |
| 5 |
|
Taxes |
| (768 | ) | (495 | ) | (273 | ) | |||
Net Income |
| $ | 1,089 |
| $ | 759 |
| $ | 330 |
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share |
| $ | 2.69 |
| $ | 1.92 |
| $ | 0.77 |
|
|
|
|
|
|
|
|
|
|
|
|
Worldwide Effective Tax Rate |
|
| 41% |
|
| 39% |
|
| -2% |
|
9
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||
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 | ||||
2005 3rd Quarter |
| $ | 167 |
|
2005 2nd Quarter |
| 141 |
| |
|
| $ | 26 |
|
Sales Price |
| $ | 125 |
|
Sales Volume/Mix |
|
| 2 |
|
Operations/Manufacturing |
|
| (107 | ) * |
All Others |
|
| 6 |
|
TOTAL VARIANCE |
| $ | 26 |
|
* Higher feedstock and energy costs
10
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | |||||||||
| 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 |
| |
Total | 251 |
| 251 |
| 248 |
| 257 |
| |
Natural Gas (MMCF) |
|
|
|
|
|
|
|
| |
California | 239 |
| 228 |
| 240 |
| 235 |
| |
Hugoton | 133 |
| 124 |
| 131 |
| 128 |
| |
Permian | 186 |
| 122 |
| 167 |
| 131 |
| |
Horn Mountain | 6 |
| 14 |
| 9 |
| 15 |
| |
Total | 564 |
| 488 |
| 547 |
| 509 |
| |
Latin America |
|
|
|
|
|
|
|
| |
Crude Oil (MBL) |
|
|
|
|
|
|
|
| |
Colombia | 38 |
| 38 |
| 35 |
| 37 |
| |
Ecuador | 46 |
| 49 |
| 42 |
| 46 |
| |
Total | 84 |
| 87 |
| 77 |
| 83 |
| |
Middle East and North Africa |
|
|
|
|
|
|
|
| |
Crude Oil (MBL) |
|
|
|
|
|
|
|
| |
Oman | 12 |
| 14 |
| 18 |
| 13 |
| |
Qatar | 42 |
| 44 |
| 43 |
| 44 |
| |
Yemen | 23 |
| 28 |
| 29 |
| 33 |
| |
Libya | 9 |
| -- |
| 3 |
| -- |
| |
Total | 86 |
| 86 |
| 93 |
| 90 |
| |
Natural Gas (MMCF) |
|
|
|
|
|
|
|
| |
Oman | 35 |
| 88 |
| 51 |
| 52 |
| |
|
|
|
|
|
|
|
|
| |
Other Eastern Hemisphere |
|
|
|
|
|
|
|
| |
Crude Oil (MBL) |
|
|
|
|
|
|
|
| |
Pakistan | 5 |
| 7 |
| 5 |
| 8 |
| |
Natural Gas (MMCF) |
|
|
|
|
|
|
|
| |
Pakistan | 81 |
| 73 |
| 77 |
| 74 |
| |
|
|
|
|
|
|
|
|
| |
Barrels of Oil Equivalent (MBOE) |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Subtotal consolidated subsidiaries | 539 |
| 539 |
| 536 |
| 544 |
| |
Other interests |
|
|
|
|
|
|
|
| |
Colombia - minority interest | (5 | ) | (4 | ) | (4 | ) | (5 | ) | |
Russia - Occidental net interest | 27 |
| 27 |
| 27 |
| 29 |
| |
Yemen - Occidental net interest | 1 |
| 1 |
| 2 |
| 1 |
| |
Total worldwide production (MBOE) | 562 |
| 563 |
| 561 |
| 569 |
| |
11
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | |||||||||
| 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 ($/BBL) |
| 53.81 |
| 36.07 |
| 45.62 |
| 32.00 |
|
|
|
|
|
|
|
|
|
| |
Middle East and North Africa |
|
|
|
|
|
|
|
| |
Crude Oil ($/BBL) |
| 56.37 |
| 37.76 |
| 48.69 |
| 34.00 |
|
Natural Gas ($/MCF) |
| 0.97 |
| 0.97 |
| 0.96 |
| 0.97 |
|
|
|
|
|
|
|
|
|
| |
Other Eastern Hemisphere |
|
|
|
|
|
|
|
| |
Crude Oil ($/BBL) |
| 52.25 |
| 35.44 |
| 45.57 |
| 32.13 |
|
Natural Gas ($/MCF) |
| 2.72 |
| 2.30 |
| 2.41 |
| 2.33 |
|
|
|
|
|
|
|
|
|
| |
Total Worldwide |
|
|
|
|
|
|
|
| |
Crude Oil ($/BBL) |
| 55.04 |
| 37.87 |
| 47.39 |
| 33.78 |
|
Natural Gas ($/MCF) |
| 5.49 |
| 4.77 |
| 5.18 |
| 4.52 |
|
| Third Quarter | Nine Months | |||||||||||
| 2005 | 2004 | 2005 | 2004 | |||||||||
Exploration Expense |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
| $ | 20 |
| $ | 23 |
| $ | 131 |
| $ | 83 |
|
Latin America |
|
| 5 |
|
| 1 |
|
| 28 |
|
| 4 |
|
Middle East and North Africa |
|
| 4 |
|
| 1 |
|
| 9 |
|
| 15 |
|
Othern Eastern Hemisphere |
|
| 26 |
|
| 12 |
|
| 45 |
|
| 29 |
|
TOTAL |
| $ | 55 |
| $ | 37 |
| $ | 213 |
| $ | 131 |
|
12
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | |||||||||
| 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 Dichlorine |
| 185 |
| 102 |
| 490 |
| 324 |
|
PVC Resins (millions of pounds) |
| 1,082 |
| 1,044 |
| 3,092 |
| 3,205 |
|
CHEMICALS | |||||||||
| Third Quarter | Nine Months | |||||||
MAJOR PRODUCTS | 2005 | 2004 | 2005 | 2004 | |||||
Chlorine |
| 2.61 |
| 2.23 |
| 2.60 |
| 1.94 |
|
Caustic Soda |
| 1.72 |
| 0.84 |
| 1.63 |
| 0.72 |
|
Ethylene Dichlorine |
| 1.22 |
| 1.64 |
| 1.49 |
| 1.48 |
|
PVC Resins (millions of pounds) |
| 1.19 |
| 1.13 |
| 1.24 |
| 1.05 |
|
1987 through 1990 average price = 1.00
CHLORINE
OxyChem Commentary
• | In August, OxyChem announced a $25 per ton price increase effective September 28th or as contract terms permit. Other U.S. chlor-alkali producers announced similar increases. The price increase is in response to the significant rise in energy prices following the Gulf Coast hurricanes. |
• | 3rd quarter industry operating rates reflect the negative impact of hurricanes Katrina and Rita on the Gulf Coast region. The two hurricanes combined to reduce chlorine production throughout the industry by approximately 6%. |
• | The industry is currently struggling with both raw material sourcing and transportation issues. The disruption caused by the hurricanes has severely impacted the availability of natural gas and ethylene. In addition, disruptions in rail service have reduced chlorine railcar availability and could eventually affect operating rates. |
• | OxyChem anticipates that industry operating rates will increase during the 4th quarter. Order control programs for chlorine are still in effect and are expected to remain for the balance of 2005 for OxyChem and other U.S. producers. |
13
Investor Relations Supplemental Schedules
Influencing Factors:
While there is still uncertainty with respect to chlorine demand, chlorine supply/demand is expected to remain balanced in the 4th quarter. Vinyls production and the resulting chlorine consumption are expected to be constrained by ethylene availability. Lost chlorinated derivative production in the 3rd quarter is projected to boost chlorine demand for the remainder of the year. However, noticeable improvements in demand associated with the rebuilding along the Gulf Coast is not expected until the 1st half of 2006.
CAUSTIC
OxyChem Commentary
• | Caustic soda demand fell in the 3rd quarter in spite of improved seasonal demand. 3rd quarter volumes were lower in the distribution, organic and pulp and paper market segments due in part to Hurricane Katrina. OxyChem's sales of liquid caustic soda are expected to improve in the 4th quarter as there are still some U.S. producers that are experiencing production curtailments/outages as a result of the hurricanes. |
• | U.S. producers have announced two price increases for the 4th quarter. An increase of $50 DST was announced in late August followed by an additional increase of $75 DST announced late September. Market conditions and higher energy costs are expected to support 4th quarter price improvement as the Gulf Coast experiences ongoing supply issues. |
• | OxyChem and other U.S. producers remain on order control programs for liquid caustic soda. Order control is expected to continue for the remainder of the year. |
Influencing Factors:
Significant operating issues are expected to support 4th quarter price improvement as the supply of liquid caustic soda remains tight. Several chlor-alkali facilities are currently running at reduced rates or have not yet resumed production. While seasonal demand for liquid caustic soda will decline, the tight supply projected in the 4th quarter will lend support for future price improvement.
EDC
OxyChem Commentary
• | Export demand in the 3rd quarter was limited by planned and unplanned Asian VCM outages coupled with increased Chinese acetylene based VCM production. |
14
Investor Relations Supplemental Schedules
• | There was no improvement in EDC prices during the 3rd quarter even though PVC and VCM prices increased. Asian spot prices ended the quarter at $250 - $305 per metric ton CIF Asia. |
Influencing Factors:
Prices for EDC in the Far East have stabilized after significant declines in the 2nd quarter but have not rebounded with 3rd quarter price increases in VCM and PVC. Continued VCM outages and capacity increases in acetylene based production have unfavorably impacted the supply/demand balance for EDC. High ethylene costs and low EDC prices will limit spot export volumes out of the U.S. in the 4th quarter.
PVC/VCM
OxyChem Commentary
• | Domestic PVC sales volumes continued to gain momentum in the 3rd quarter following an industry wide de-stocking in the 2nd quarter. Hurricane Katrina tightened the supply to the point that spot resin deals ceased by the end of August. Domestic demand for the 3rd quarter increased 6% versus the prior quarter. |
• | Due to the production impact of Hurricane Rita, OxyVinyls declared Force Majeure for the PVC and VCM businesses, effective September 23rd. Customers were placed on a 30% allocation program for the remainder of September and a 90% allocation was announced for October. |
• | Domestic PVC resin prices decreased $0.01 per pound in July, remained flat in August, and increased $0.02 per pound in September. |
• | OxyChem announced a $0.15 per pound price increase effective October 1 while the rest of the industry has announced a $0.12 per pound increase effective October 1. This price increase is in response to the announced ethylene increase of $0.10 per pound for October and higher 4th quarter energy costs. |
• | PVC resin export prices ended the quarter at $850 - $870 per metric ton CFR Southeast Asia. Exports for the 3rd quarter increased 20% versus the prior quarter. OxyVinyls stopped quoting spot export PVC opportunities at the end of August following Hurricane Katrina. |
• | VCM supply and demand was balanced through the majority of the 3rd quarter until Hurricane Rita shut down most of the U.S. VCM production. Inventories are now at record lows limiting PVC production in both Mexico and the U.S. The production curtailments continue into the 4th quarter. |
• | Published VCM spot export prices from the U.S. Gulf Coast to Latin America increased from $550 per metric ton FOB at the end of the 2nd quarter to $705 per metric ton FOB by the end of the 3rd quarter. Asian spot prices increased from $550 per metric ton CFR to $685 per metric ton CFR. |
15
Investor Relations Supplemental Schedules
Influencing Factors:
Increased seasonal domestic demand coupled with the supply issues created by the hurricanes will continue to tighten the vinyls supply/demand balance. Additional price increases may be necessary in the 4th quarter to offset the high feedstock costs and to enable margin improvement for both VCM and PVC.
16
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Third Quarter | Nine Months | |||||||||||
Capital Expenditures ($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 / North Africa |
|
| 226 |
|
| 191 |
|
| 690 |
|
| 550 |
|
Other Eastern Hemisphere |
|
| 40 |
|
| 7 |
|
| 72 |
|
| 28 |
|
Chemicals |
|
| 32 |
|
| 39 |
|
| 94 |
|
| 95 |
|
Corporate |
|
| 3 |
|
| 3 |
|
| 7 |
|
| 7 |
|
TOTAL |
| $ | 607 |
| $ | 466 |
| $ | 1,661 |
| $ | 1,270 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation, Depletion & | Third Quarter | Nine Months | |||||||||||
Amortization of Assets ($MM) | 2005 | 2004 | 2005 | 2004 | |||||||||
Oil & Gas |
|
|
|
|
|
|
|
|
|
|
|
|
|
Domestic |
| $ | 184 |
| $ | 153 |
| $ | 508 |
| $ | 466 |
|
Latin America |
|
| 27 |
|
| 24 |
|
| 78 |
|
| 72 |
|
Middle East / North Africa |
|
| 84 |
|
| 67 |
|
| 257 |
|
| 201 |
|
Other Eastern Hemisphere |
|
| 10 |
|
| 13 |
|
| 30 |
|
| 35 |
|
Chemicals |
|
| 66 |
|
| 60 |
|
| 187 |
|
| 182 |
|
Corporate |
|
| 5 |
|
| 4 |
|
| 16 |
|
| 13 |
|
TOTAL |
| $ | 376 |
| $ | 321 |
| $ | 1,076 |
| $ | 969 |
|
17
Investor Relations Supplemental Schedules
OCCIDENTAL PETROLEUM | ||||||
|
| 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 Total Capitalization |
|
| 18% |
|
| 27% |
18
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 and uncertainties that could significantly affect expected results. Factors that could cause results to differ materially include, but are not limited to: exploration risks, such as drilling of unsuccessful wells; global commodity pricing fluctuations and supply/demand considerations for oil, gas and chemicals; higher-than-expected costs; political risk; and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition, or disposition. Occidental disclaims any obligation to update any forward-looking statements. The United States Securities and Exchange Commission (SEC) permits oil and natural gas companies, in their filings with the SEC, to disclose only proved reserves demonstrated by actual production or conclusive formation tests to be economically producible under existing economic and operating conditions. We use certain terms in this presentation, such as probable, possible and recoverable reserves, that the SEC's guidelines strictly prohibit us from using in filings with the SEC. U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com. You also can obtain a copy from the SEC by calling 1-800-SEC-0330.
Additional Information and Where to Find It
Oxy will file a Form S-4, Vintage will file a proxy statement and both companies will file other relevant documents concerning the proposed merger transaction with the Securities and Exchange Commission (SEC). INVESTORS ARE URGED TO READ THE FORM S-4 AND PROXY STATEMENT WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain the documents free of charge at the website maintained by the SEC at www.sec.gov. In addition, you may obtain documents filed with the SEC by Oxy free of charge by contacting Christel Pauli, Counsel and Assistant Secretary, Occidental Petroleum Corporation, at 10889 Wilshire Blvd., Los Angeles, California 90024. The documents will also be available online at www.oxy.com.
19
Investor Relations Supplemental Schedules
Participants in Solicitation
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 executive officers of Oxy and their ownership of Oxy stock is set forth in the proxy statement for Oxy's 2005 Annual Meeting of Shareholders. Information about the directors and executive officers of Vintage and their ownership of Vintage stock is set forth in the proxy statement for Vintage's 2005 Annual Meeting of Shareholders. Investors may obtain additional information regarding the interests of such participants by reading the Form S-4 and proxy statement for the merger when they become available.
Investors should read the Form S-4 and proxy statement carefully when they become available before making any voting or investment decisions.
Forward-Looking Statements
The matters set forth in this presentation, including statements as to the expected benefits of the acquisition such as efficiencies, cost savings, financial strength, and the competitive ability and position of the combined company, and other statements identified by such words as "will," "estimates," "expects," "hopes," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could significantly affect expected results, including a delay in or failure to obtain required approvals, the possibility that the anticipated benefits from the acquisition cannot be fully realized, the possibility that costs or difficulties related to the integration will be greater than expected, the ability to manage regulatory, tax and legal matters, including changes in tax rates, the impact of competition, and other risk factors related to our industries as detailed in each of Oxy's and Vintage's reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Oxy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ from those set forth in the forward-looking statements.
Information contained in this presentation regarding Vintage's production, reserves, results, assets and other information has been taken from Vintage's public filings with the SEC. Oxy makes no representation with respect to the accuracy of this information.
20