Exhibit 99.2
For Immediate Release: January 29, 2015
Occidental Petroleum Replaces 174 Percent of 2014 Production
· 2014 year-end proved reserves of 2.82 billion BOE, an increase of nearly 3 percent
· 2014 domestic reserve replacement ratio of 266 percent and total company replacement of 174 percent
· Three-year reserve replacement ratio of 169 percent
HOUSTON, January 29, 2015 -- Occidental Petroleum Corporation (NYSE: OXY) announced today that at year-end 2014, the company’s preliminary worldwide proved reserves totaled 2.82 billion barrels of oil equivalent (BOE) compared to 2.74 billion BOE at the end of 2013, restated to exclude California Resources Corporation. In 2014, the company had proved reserve additions from all sources of 380 million BOE, compared to production of 218 million BOE, for a production replacement ratio of 174 percent.
The preliminary domestic proved reserves totaled 1.78 billion BOE compared to 1.67 billion BOE at the end of 2013. In 2014, the domestic operations had proved reserve additions from all sources of 308 million BOE, compared to production of 116 million BOE, for a production replacement ratio of 266 percent.
“We are pleased to have replaced 174 percent of our 2014 production largely through improved recovery and extensions and discoveries. Over the last three years, we replaced 169 percent of our production. Our 2014 program resulted in apparent finding and development costs of $16.89 per BOE. For the last three-year period, our finding and development costs averaged about $18.66 per BOE including revisions,” said Stephen I. Chazen, President and Chief Executive Officer.
As of December 31, 2014, 63 percent of the Company’s proved reserves consisted of oil, 13 percent of NGL and 24 percent of gas. Of the total proved reserves, approximately 60 percent is in the United States and 40 percent in international locations. Approximately 70 percent of the proved reserves are developed and 30 percent are undeveloped. Total company revisions were negative 58 million BOE, which included 54 million from the write-down of Bahrain. Total company proved additions, excluding revisions, were 438 million BOE, mostly coming from improved recovery. The proved undeveloped reserves increased by 284 million BOE due to improved recovery mainly in Permian Resources. These additions were offset by transfers of 315 million BOE to proved developed, with the Al Hosn Gas Project transfer accounting for 68 percent of the total.
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About Occidental Petroleum
Occidental Petroleum Corporation is an international oil and gas exploration and production company with operations in the United States, Middle East/North Africa and Latin America regions. Headquartered in Houston, Occidental is one of the largest U.S. oil and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes, transports, stores, purchases and markets hydrocarbons and other commodities in support of Occidental’s businesses. The company’s wholly owned subsidiary, OxyChem manufactures and markets chlor-alkali products and vinyls.
Forward-Looking Statements
Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. 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 results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental’s operations; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from 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; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “preliminary,” “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 release. 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. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of the 2013 Form 10-K. Occidental posts or provides links to important information on its website at www.oxy.com
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Contacts:
Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com
or
Investors:
Christopher M. Degner
212-603-8111
christopher_degner@oxy.com
On the web: www.oxy.com
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OIL AND GAS PRELIMINARY RESERVES
The following tables set forth Occidental’s net interests in quantities of proved developed and undeveloped oil (including condensate), NGLs, natural gas and changes in such quantities. Reserves are stated net of applicable royalties. Estimated reserves include Occidental’s economic interests under production-sharing contracts (PSCs) and other similar economic arrangements.
OIL AND GAS PRELIMINARY RESERVES
OIL RESERVES
In millions of barrels (MMbbl) | | United | | Latin | | Middle East/ | | |
| | States | | America | | North Africa | | Total |
PROVED DEVELOPED AND UNDEVELOPED RESERVES | | | | | | | | |
| | | | | | | | |
Balance at December 31, 2011 | | 1,019 | | 96 | | 386 | | 1,501 |
Revisions of previous estimates | | (25) | | 4 | | (3) | | (24) |
Improved recovery | | 81 | | 7 | | 30 | | 118 |
Extensions and discoveries | | 3 | | - | | 27 | | 30 |
Purchases of proved reserves | | 52 | | - | | - | | 52 |
Production | | (61) | | (11) | | (67) | | (139) |
Balance at December 31, 2012 | | 1,069 | | 96 | | 373 | | 1,538 |
Revisions of previous estimates | | (36) | | (5) | | 12 | | (29) |
Improved recovery | | 137 | | 7 | | 60 | | 204 |
Extensions and discoveries | | 4 | | - | | 14 | | 18 |
Purchases of proved reserves | | 25 | | - | | - | | 25 |
Sales of proved reserves | | (4) | | - | | - | | (4) |
Production | | (64) | | (10) | | (65) | | (139) |
Balance at December 31, 2013 | | 1,131 | | 88 | | 394 | | 1,613 |
Revisions of previous estimates | | (54) | | 6 | | 40 | | (8) |
Improved recovery | | 224 | | 9 | | 32 | | 265 |
Extensions and discoveries | | 15 | | - | | 2 | | 17 |
Purchases of proved reserves | | 33 | | - | | - | | 33 |
Sales of proved reserves | | (9) | | - | | - | | (9) |
Production | | (67) | | (11) | | (63) | | (141) |
Balance at December 31, 2014 | | 1,273 | | 92 | | 405 | | 1,770 |
| | | | | | | | |
Proved Developed Reserves | | | | | | | | |
December 31, 2011 | | 780 | | 69 | | 317 | | 1,166 |
December 31, 2012 | | 803 | | 82 | | 295 | | 1,180 |
December 31, 2013 | | 822 | | 76 | | 281 | | 1,179 |
December 31, 2014 | | 819 | | 86 | | 316 | | 1,221 |
OIL AND GAS PRELIMINARY RESERVES
NGL RESERVES
In millions of barrels (MMbbl) | | United | | Latin | | Middle East/ | | |
| | States | | America | | North Africa | | Total |
PROVED DEVELOPED AND UNDEVELOPED RESERVES | | | | | | | | |
Balance at December 31, 2011 | | 158 | | - | | 55 | | 213 |
Revisions of previous estimates | | 15 | | - | | - | | 15 |
Improved recovery | | 3 | | - | | - | | 3 |
Extensions and discoveries | | - | | - | | 64 | | 64 |
Purchases of proved reserves | | 1 | | - | | - | | 1 |
Production | | (21) | | - | | (3) | | (24) |
Balance at December 31, 2012 | | 156 | | - | | 116 | | 272 |
Revisions of previous estimates | | 53 | | - | | (1) | | 52 |
Improved recovery | | 9 | | - | | - | | 9 |
Extensions and discoveries | | - | | - | | 22 | | 22 |
Purchases of proved reserves | | 7 | | - | | - | | 7 |
Sales of proved reserves | | - | | - | | - | | - |
Production | | (21) | | - | | (3) | | (24) |
Balance at December 31, 2013 | | 204 | | - | | 134 | | 338 |
Revisions of previous estimates | | 6 | | - | | 8 | | 14 |
Improved recovery | | 37 | | - | | - | | 37 |
Extensions and discoveries | | 2 | | - | | - | | 2 |
Purchases of proved reserves | | 3 | | - | | - | | 3 |
Sales of proved reserves | | (10) | | - | | - | | (10) |
Production | | (20) | | - | | (2) | | (22) |
Balance at December 31, 2014 | | 222 | | - | | 140 | | 362 |
| | | | | | | | |
Proved Developed Reserves | | | | | | | | |
December 31, 2011 | | 123 | | - | | 55 | | 178 |
December 31, 2012 | | 124 | | - | | 53 | | 177 |
December 31, 2013 | | 151 | | - | | 51 | | 202 |
December 31, 2014 | | 147 | | - | | 109 | | 256 |
Attachment 4 |
|
OIL AND GAS PRELIMINARY RESERVES |
GAS RESERVES | | | | | | | | |
In billions of cubic feet (Bcf) | | United | | Latin | | Middle East/ | | |
| | States | | America | | North Africa | | Total |
PROVED DEVELOPED AND UNDEVELOPED RESERVES | | | | | | | | |
Balance at December 31, 2011 | | 2,449 | | 33 | | 1,925 | | 4,407 |
Revisions of previous estimates | | (581) | | - | | 62 | | (519) |
Improved recovery | | 207 | | 11 | | 34 | | 252 |
Extensions and discoveries | | 7 | | - | | 784 | | 791 |
Purchases of proved reserves | | 80 | | - | | - | | 80 |
Production | | (207) | | (5) | | (165) | | (377) |
Balance at December 31, 2012 | | 1,955 | | 39 | | 2,640 | | 4,634 |
Revisions of previous estimates | | (46) | | (11) | | (43) | | (100) |
Improved recovery | | 251 | | 1 | | 16 | | 268 |
Extensions and discoveries | | 13 | | - | | 232 | | 245 |
Purchases of proved reserves | | 34 | | - | | - | | 34 |
Sales of proved reserves | | (2) | | - | | - | | (2) |
Production | | (193) | | (5) | | (158) | | (356) |
Balance at December 31, 2013 | | 2,012 | | 24 | | 2,687 | | 4,723 |
Revisions of previous estimates | | (111) | | 3 | | (273) | | (381) |
Improved recovery | | 284 | | 4 | | 25 | | 313 |
Extensions and discoveries | | 27 | | - | | 101 | | 128 |
Purchases of proved reserves | | 46 | | - | | - | | 46 |
Sales of proved reserves | | (371) | | - | | - | | (371) |
Production | | (173) | | (4) | | (154) | | (331) |
Balance at December 31, 2014 | | 1,714 | | 27 | | 2,386 | | 4,127 |
| | | | | | | | |
Proved Developed Reserves | | | | | | | | |
December 31, 2011 | | 1,723 | | 32 | | 1,555 | | 3,310 |
December 31, 2012 | | 1,454 | | 36 | | 1,816 | | 3,306 |
December 31, 2013 | | 1,495 | | 23 | | 1,684 | | 3,202 |
December 31, 2014 | | 1,128 | | 26 | | 1,915 | | 3,069 |
Attachment 5 |
|
OIL AND GAS PRELIMINARY RESERVES |
TOTAL RESERVES | | | | | | | | |
In millions of BOE (MMBOE) (a) | | United | | Latin | | Middle East/ | | |
| | States | | America | | North Africa | | Total |
PROVED DEVELOPED AND UNDEVELOPED RESERVES | | | | | | | | |
Balance at December 31, 2011 | | 1,585 | | 101 | | 762 | | 2,448 |
Revisions of previous estimates | | (107) | | 4 | | 7 | | (96) |
Improved recovery | | 119 | | 9 | | 36 | | 164 |
Extensions and discoveries | | 4 | | - | | 222 | | 226 |
Purchases of proved reserves | | 66 | | - | | - | | 66 |
Production | | (116) | | (12) | | (98) | | (226) |
Balance at December 31, 2012 | | 1,551 | | 102 | | 929 | | 2,582 |
Revisions of previous estimates | | 10 | | (7) | | 4 | | 7 |
Improved recovery | | 188 | | 8 | | 63 | | 259 |
Extensions and discoveries | | 6 | | - | | 74 | | 80 |
Purchases of proved reserves | | 37 | | - | | - | | 37 |
Sales of proved reserves | | (5) | | - | | - | | (5) |
Production | | (117) | | (11) | | (94) | | (222) |
Balance at December 31, 2013 | | 1,670 | | 92 | | 976 | | 2,738 |
Revisions of previous estimates | | (67) | | 6 | | 3 | | (58) |
Improved recovery | | 310 | | 9 | | 35 | | 354 |
Extensions and discoveries | | 22 | | - | | 19 | | 41 |
Purchases of proved reserves | | 43 | | - | | - | | 43 |
Sales of proved reserves | | (81) | | - | | - | | (81) |
Production | | (116) | | (11) | | (91) | | (218) |
Balance at December 31, 2014 | | 1,781 | | 96 | | 942 | | 2,819 |
| | | | | | | | |
Proved Developed Reserves | | | | | | | | |
December 31, 2011 | | 1,190 | | 74 | | 631 | | 1,895 |
December 31, 2012 | | 1,169 | | 88 | | 651 | | 1,908 |
December 31, 2013 | | 1,222 | | 80 | | 613 | | 1,915 |
December 31, 2014 | | 1,154 | | 90 | | 744 | | 1,988 |
(a) Natural gas volumes have been converted to barrels of oil equivalent (BOE) based on energy content of six thousand cubic feet (Mcf) of gas to one barrel of oil.
Attachment 6 |
|
PRELIMINARY COSTS INCURRED |
($ Millions) |
Costs incurred in oil and gas property acquisition, exploration and development activities, whether capitalized or expensed, were as follows:
| | United | | Latin | | Middle East/ | | | |
| | States | | America | | North Africa | | Total | |
For the Year Ended December 31, 2014 | | | | | | | | | |
Property acquisition costs | | | | | | | | | |
Proved properties | | $ | 771 | | $ | - | | $ | - | | $ | 771 | |
Unproved properties | | 842 | | - | | - | | 842 | |
Exploration costs | | 379 | | 4 | | 180 | | 563 | |
Development costs | | 3,665 | | 305 | | 2,138 | | 6,108 | |
Costs Incurred | | $ | 5,657 | | $ | 309 | | $ | 2,318 | | $ | 8,284 | |
| | | | | | | | | |
For the Year Ended December 31, 2013 | | | | | | | | | |
Property acquisition costs | | | | | | | | | |
Proved properties | | $ | 343 | | $ | - | | $ | - | | $ | 343 | |
Unproved properties | | 151 | | - | | - | | 151 | |
Exploration costs | | 293 | | 11 | | 79 | | 383 | |
Development costs | | 2,659 | | 329 | | 2,117 | | 5,105 | |
Costs Incurred | | $ | 3,446 | | $ | 340 | | $ | 2,196 | | $ | 5,982 | |
| | | | | | | | | |
For the Year Ended December 31, 2012 | | | | | | | | | |
Property acquisition costs | | | | | | | | | |
Proved properties | | $ | 1,333 | | $ | - | | $ | 14 | | $ | 1,347 | |
Unproved properties | | 573 | | - | | - | | 573 | |
Exploration costs | | 379 | | 1 | | 114 | | 494 | |
Development costs | | 3,271 | | 304 | | 2,025 | | 5,600 | |
Costs Incurred | | $ | 5,556 | | $ | 305 | | $ | 2,153 | | $ | 8,014 | |
Attachment 7 |
|
PRELIMINARY MULTI-YEAR DATA |
WORLDWIDE | | 2012 | | 2013 | | 2014 | | 3-Yr Average |
Reserves Replacement | | | | | | | | |
(Million BOE) | | | | | | | | |
Revisions | | (96) | | 7 | | (58) | | (49) |
Improved recovery | | 164 | | 259 | | 354 | | 259 |
Extensions and discoveries | | 226 | | 80 | | 41 | | 116 |
Organic without revisions (A) | | 390 | | 339 | | 395 | | 375 |
Organic with revisions (B) | | 294 | | 346 | | 337 | | 326 |
Purchases | | 66 | | 37 | | 43 | | 49 |
Total reserve additions (C) | | 360 | | 383 | | 380 | | 375 |
Production (D) | | 226 | | 222 | | 218 | | 222 |
| | | | | | | | |
Costs Incurred | | | | | | | | |
($ Millions) | | | | | | | | |
Acquisitions | | 1,920 | | 494 | | 1,613 | | 1,342 |
Exploration costs | | 494 | | 383 | | 563 | | 480 |
Development costs | | 5,600 | | 5,105 | | 6,108 | | 5,604 |
Organic (E) | | 6,094 | | 5,488 | | 6,671 | | 6,084 |
Total costs incurred (F) | �� | 8,014 | | 5,982 | | 8,284 | | 7,426 |
| | | | | | | | |
Finding & Development Costs per BOE | | | | | | | | |
Organic without revisions (E) / (A) | | $ | 15.63 | | $ | 16.19 | | $ | 16.89 | | $ | 16.22 |
Organic with revisions (E) / (B) | | $ | 20.73 | | $ | 15.86 | | $ | 19.80 | | $ | 18.66 |
All-in (F) / (C) | | $ | 22.26 | | $ | 15.62 | | $ | 21.80 | | $ | 19.80 |
| | | | | | | | |
Reserve Replacement Ratio | | | | | | | | |
Organic without revisions (A) / (D) | | 173% | | 153% | | 181% | | 169% |
Organic with revisions (B) / (D) | | 130% | | 156% | | 155% | | 147% |
All-in (C) / (D) | | 159% | | 173% | | 174% | | 169% |
| | | | | | | | |
UNITED STATES | | 2012 | | 2013 | | 2014 | | 3-Yr Average |
Reserves Replacement | | | | | | | | |
(Million BOE) | | | | | | | | |
Revisions | | (107) | | 10 | | (67) | | (55) |
Improved recovery | | 119 | | 188 | | 310 | | 206 |
Extensions and discoveries | | 4 | | 6 | | 22 | | 11 |
Organic without revisions (A) | | 123 | | 194 | | 332 | | 217 |
Organic with revisions (B) | | 16 | | 204 | | 265 | | 162 |
Purchases | | 66 | | 37 | | 43 | | 49 |
Total reserve additions (C) | | 82 | | 241 | | 308 | | 211 |
Production (D) | | 116 | | 117 | | 116 | | 116 |
| | | | | | | | |
Costs Incurred | | | | | | | | |
($ Millions) | | | | | | | | |
Acquisitions | | 1,906 | | 494 | | 1,613 | | 1,338 |
Exploration costs | | 379 | | 293 | | 379 | | 350 |
Development costs | | 3,271 | | 2,659 | | 3,665 | | 3,198 |
Organic (E) | | 3,650 | | 2,952 | | 4,044 | | 3,548 |
Total costs incurred (F) | | 5,556 | | 3,446 | | 5,657 | | 4,886 |
| | | | | | | | |
Finding & Development Costs per BOE | | | | | | | | |
Organic without revisions (E) / (A) | | $ | 29.67 | | $ | 15.22 | | $ | 12.18 | | $ | 16.35 |
Organic with revisions (E) / (B) | | $ | 228.13 | | $ | 14.47 | | $ | 15.26 | | $ | 21.90 |
All-in (F) / (C) | | $ | 67.76 | | $ | 14.30 | | $ | 18.37 | | $ | 23.16 |
| | | | | | | | |
Reserve Replacement Ratio | | | | | | | | |
Organic without revisions (A) / (D) | | 106% | | 166% | | 286% | | 187% |
Organic with revisions (B) / (D) | | 14% | | 174% | | 228% | | 140% |
All-in (C) / (D) | | 71% | | 206% | | 266% | | 182% |
