EXHIBIT 99.3
Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 Second Quarter
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ------------------------------------- ------------
Oil & Gas $ 637 $ 637
Chemical 43 43
Corporate
Interest on debt, net (53) (53)
Trust pfd distributions & other (11) (11)
Other (75) (75)
Taxes (167) (167)
------------ ------------ ------------
NET INCOME $ 374 $ -- $ 374
============ ============ ============
BASIC EARNINGS PER SHARE
NET INCOME $ 0.98 $ 0.98
============ ============
1
Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2002 Second Quarter
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ------------------------------------- ------------
Oil & Gas $ 421 $ 421
Chemical 34 34
Corporate
Interest on debt, net (74) (74)
Trust pfd distributions & other (9) (9)
Other (30) (30)
Taxes (101) (101)
------------ ------------ ------------
Income from continuing operations 241 -- 241
Discontinued operations, net (1) 1 Discontinued operations --
------------ ------------ ------------
NET INCOME $ 240 $ 1 $ 241
============ ============ ============
BASIC EARNINGS PER SHARE
Income from continuing operations $ 0.64 $ 0.64
Discontinued operations, net -- --
------------ ------------
NET INCOME (LOSS) $ 0.64 $ 0.64
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 First Six Months
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ----------------------------------------------- ------------
Oil & Gas $ 1,364 $ 1,364
Chemical 78 78
Corporate
Interest on debt, net (177) 61 Debt remarket fee (116)
Trust pfd distributions & other (22) (22)
Other (131) (131)
Taxes (345) (21) Tax effect of adjustments (366)
------------ ------------ ------------
Income from continuing operations 767 40 807
Cumulative effect of accounting changes (68) 68 Cumulative effect of acct changes --
------------ ------------ ------------
NET INCOME $ 699 $ 108 $ 807
============ ============ ============
BASIC EARNINGS PER SHARE
Income from continuing operations $ 2.02 $ 2.12
Cumulative effect of accounting changes (0.18) --
------------ ------------
BASIC EARNINGS PER SHARE $ 1.84 $ 2.12
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2002 First Six Months
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ----------------------------------------------- ------------
Oil & Gas $ 727 $ 727
Chemical 3 3
Corporate
Interest on debt, net (144) (144)
Trust pfd distributions & other (21) (21)
Other (56) (56)
Taxes (145) (145)
------------ ------------ ------------
Income from continuing operations 364 -- 364
Discontinued operations, net (4) 4 Discontinued operations --
Cumulative effect of accounting changes (95) 95 Cumulative effect of acct changes
------------ ------------ ------------
NET INCOME $ 265 $ 99 $ 364
============ ============ ============
BASIC EARNINGS PER SHARE
Income from continuing operations $ 0.97 $ 0.97
Discontinued operations, net (0.01) --
Cumulative effect of accounting changes (0.25) --
------------ ------------
NET INCOME (LOSS) $ 0.71 $ 0.97
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS
PRE-TAX
INCOME / (EXPENSE) SECOND QUARTER SIX MONTHS
----------------------------- -----------------------------
2003 2002 2003 2002
------------ ------------ ------------ ------------
OIL & GAS
Exploration asset write-offs -- (33) -- (33)
Gain on sale of GOM assets 1 14 -- 14 --
CHEMICALS
Reorganizations / severance (15) -- (15) (14)
Equistar equity earnings -- (4) -- (40)
Chlorine derivatives asset impairment (9) -- (9) --
CORPORATE
Equity earnings (15) -- (38) --
Environmental remediation (13) -- (13) --
1 Amount shown after-tax
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 SECOND QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
SECOND FIRST
QUARTER QUARTER
2003 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 637 $ 727 $ (90)
CHEMICAL 43 35 8
CORPORATE
INTEREST ON DEBT, NET (53) (124) 71
TRUST PFD DISTRIBUTIONS & OTHER (11) (11) --
OTHER (75) (56) (19)
TAXES (167) (178) 11
---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 374 393 (19)
CUMULATIVE EFFECT OF ACCOUNTING CHANGES -- (68) 68
---------- ---------- ----------
NET INCOME $ 374 $ 325 $ 49
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.98 $ 0.86 $ 0.12
========== ========== ==========
EFFECTIVE TAX RATE 32% 31% -1%
========== ========== ==========
================================================================================
OCCIDENTAL PETROLEUM
2003 SECOND QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
SECOND FIRST
QUARTER QUARTER
2003 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 637 $ 727 $ (90)
CHEMICAL 43 35 8
CORPORATE
INTEREST ON DEBT, NET (53) (63) 10
TRUST PFD DISTRIBUTIONS & OTHER (11) (11) --
OTHER (75) (56) (19)
TAXES (167) (199) 32
---------- ---------- ----------
NET INCOME $ 374 $ 433 $ (59)
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.98 $ 1.14 $ (0.16)
========== ========== ==========
EFFECTIVE TAX RATE 32% 31% -1%
========== ========== ==========
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2003 2nd Quarter $ 637
2003 1st Quarter 727
--------
$ (90)
========
Price Variance $ (133)
Volume Variance 29
Exploration Expense Variance (1)
All Other 15
--------
TOTAL VARIANCE $ (90)
========
======================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2003 2nd Quarter $ 43
2003 1st Quarter 35
--------
$ 8
========
Sales Price $ 32
Sales Volume/Mix (12)
Operations/Manufacturing 8
All Other (20)
--------
TOTAL VARIANCE $ 8
========
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 SECOND QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
SECOND SECOND
QUARTER QUARTER
2003 2002 B / (W)
---------- ---------- ----------
OIL & GAS $ 637 $ 421 $ 216
CHEMICAL 43 34 9
CORPORATE
INTEREST ON DEBT, NET (53) (74) 21
TRUST PFD DISTRIBUTIONS & OTHER (11) (9) (2)
OTHER (75) (30) (45)
TAXES (167) (101) (66)
---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 374 241 133
DISCONTINUED OPERATIONS, NET -- (1) 1
---------- ---------- ----------
NET INCOME $ 374 $ 240 $ 134
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.98 $ 0.64 $ 0.34
========== ========== ==========
EFFECTIVE TAX RATE 32% 29% -3%
========== ========== ==========
================================================================================
OCCIDENTAL PETROLEUM
2003 SECOND QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
SECOND SECOND
QUARTER QUARTER
2003 2002 B / (W)
---------- ---------- ----------
OIL & GAS $ 637 $ 421 $ 216
CHEMICAL 43 34 9
CORPORATE
INTEREST ON DEBT, NET (53) (74) 21
TRUST PFD DISTRIBUTIONS & OTHER (11) (9) (2)
OTHER (75) (30) (45)
TAXES (167) (101) (66)
---------- ---------- ----------
NET INCOME $ 374 $ 241 $ 133
========== ========== ==========
BASIC EARNINGS PER SHARE $ 0.98 $ 0.64 $ 0.34
========== ========== ==========
EFFECTIVE TAX RATE 32% 29% -3%
========== ========== ==========
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2003 2nd Quarter $ 637
2002 2nd Quarter 421
--------
$ 216
========
Price Variance $ 201
Volume Variance 30
Exploration Expense Variance 30
All Other (45)
--------
TOTAL VARIANCE $ 216
========
======================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2003 2nd Quarter $ 43
2002 2nd Quarter 34
--------
$ 9
========
Sales Price $ 130
Sales Volume/Mix (20)
Operations/Manufacturing (76) *
All Other (25)
--------
TOTAL VARIANCE $ 9
========
* Higher energy and feedstock costs.
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
-------------------------------
SECOND QUARTER SIX MONTHS
--------------------- ---------------------
2003 2002 2003 2002
-------- -------- -------- --------
NET PRODUCTION PER DAY:
UNITED STATES
CRUDE OIL AND LIQUIDS (MBL)
California 81 86 79 88
Permian 151 143 147 141
Horn Mountain 19 -- 16 3
Hugoton 3 3 4 --
-------- -------- -------- --------
TOTAL 254 232 246 232
NATURAL GAS (MMCF)
California 252 290 257 298
Hugoton 143 150 143 154
Permian 131 125 125 127
Horn Mountain 15 -- 10 --
-------- -------- -------- --------
TOTAL 541 565 535 579
LATIN AMERICA
CRUDE OIL (MBL)
Colombia 36 42 37 39
Ecuador 18 12 17 13
-------- -------- -------- --------
TOTAL 54 54 54 52
MIDDLE EAST AND OTHER
EASTERN HEMISPHERE
CRUDE OIL (MBL)
Oman 11 15 12 16
Pakistan 10 9 10 8
Qatar 51 43 49 43
Yemen 35 33 37 40
-------- -------- -------- --------
TOTAL 107 100 108 107
NATURAL GAS (MMCF)
Pakistan 77 50 76 50
BARRELS OF OIL EQUIVALENT (MBOE)
- ---------------------------------
CONSOLIDATED SUBSIDIARIES 518 489 510 496
OTHER INTERESTS
COLOMBIA - MINORITY INTEREST (5) (5) (4) (5)
RUSSIA - OCCIDENTAL NET INTEREST 30 28 30 27
YEMEN - OCCIDENTAL NET INTEREST 1 -- 2 --
-------- -------- -------- --------
TOTAL WORLDWIDE PRODUCTION (MBOE) 544 512 538 518
======== ======== ======== ========
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Investor Relations Supplemental Schedules
[OXY LOGO]
SUMMARY OF OPERATING STATISTICS
-------------------------------
SECOND QUARTER SIX MONTHS
-------------------- --------------------
2003 2002 2003 2002
-------- -------- -------- --------
OIL & GAS:
- ----------
PRICES
UNITED STATES
Crude Oil ($/BBL) 26.89 23.88 29.15 21.35
Natural gas ($/MCF) 5.46 2.92 4.89 2.64
LATIN AMERICA
Crude oil ($/BBL) 25.01 22.78 28.06 20.67
MIDDLE EAST AND OTHER
EASTERN HEMISPHERE
Crude oil ($/BBL) 25.22 24.27 27.71 22.15
Natural Gas ($/MCF) 1.91 2.04 1.91 2.28
SECOND QUARTER SIX MONTHS
-------------------- --------------------
2003 2002 2003 2002
-------- -------- -------- --------
Exploration Expense
Domestic $ 20 $ 44 $ 45 $ 54
Latin America 5 7 6 14
Middle East and Other 4 8 6 18
Eastern Hemisphere
-------- -------- -------- --------
TOTAL $ 29 $ 59 $ 57 $ 86
======== ======== ======== ========
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
CHEMICALS
Volume (M Tons)
SECOND QUARTER SIX MONTHS
--------------------- ---------------------
MAJOR PRODUCTS 2003 2002 2003 2002
-------- -------- -------- --------
Chlorine 664 735 1,350 1,436
Caustic 719 743 1,356 1,317
Ethylene Dichloride 108 140 239 292
PVC Resins 872 1,151 1,935 2,193
CHEMICALS
Prices (Index)
SECOND QUARTER SIX MONTHS
--------------------- ---------------------
MAJOR PRODUCTS 2003 2002 2003 2002
-------- -------- -------- --------
Chlorine 1.81 0.77 1.72 0.64
Caustic 0.87 0.66 0.84 0.79
Ethylene Dichloride 1.17 1.29 1.21 0.94
PVC Resins 0.97 0.70 0.92 0.62
CHLORINE
- --------
OXYCHEM COMMENTARY
- ------------------
o The expected seasonal demand improvement was hindered by Spring weather
that was both cooler and wetter than normal. This resulted in a slower than
anticipated start to the bleach and water treatment season and reduced
construction activity.
o Pricing improved in the 2nd quarter as the $70 per ton price increase,
announced for April 1st, was implemented where contract terms permitted.
o Concerns over product availability in the vinyl's chain resulted in demand
peaking earlier in 2003 versus previous years. Consequently, chlorine
operating rates came under pressure in the 2nd quarter as customers worked
down inventories built in the 1st quarter.
o Chlorine industry operating rates declined approximately 1% in the 2nd
quarter versus 1st quarter 2003.
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Investor Relations Supplemental Schedules
[OXY LOGO]
INFLUENCING FACTORS:
- --------------------
Demand is expected to pick up in the 3rd quarter as downstream inventories are
depleted, but will continue to be impacted by weak overall economic conditions.
CAUSTIC
- -------
OXYCHEM COMMENTARY
- ------------------
o Demand for caustic soda improved marginally over the 1st quarter led by the
seasonal demand for bleach. Volume into the refining and organic markets
also showed slight improvement over the prior quarter. Continued
improvement is expected through the 3rd quarter.
o As a result of higher natural gas pricing in the 1st quarter, U.S.
producers announced a $125 per ton price increase for domestic liquid
caustic soda in the 2nd quarter. However, this price increase was only
marginally successful due to strong competitive activity and a decline in
natural gas pricing from 1st quarter levels. Aggressive pricing from import
liquid caustic soda has also adversely impacted the domestic market.
INFLUENCING FACTORS:
- --------------------
Supply and demand for caustic soda remains precariously balanced. Forecasted
improvement in the U.S. manufacturing sector is expected to lead to a gradual
upswing in caustic soda demand. Tightening of caustic supply and higher energy
costs would provide an incentive for future price increases.
EDC
- ---
OXYCHEM COMMENTARY
- ------------------
o Strong demand in the 1st quarter led to rising prices and increased
inventories throughout the Far East vinyl's chain. Demand began to falter
in the 2nd quarter due to the uncertainty associated with Iraq and the SARS
outbreak. As a result, prices fell quickly before beginning a slow recovery
in mid May.
o Recent price improvements have been dampened by reduced VCM production due
to scheduled EDC outages in the 2nd quarter. The completion of the outages
should lead to price improvement in the 3rd quarter but will be very
dependent on downstream PVC demand in China.
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Investor Relations Supplemental Schedules
[OXY LOGO]
INFLUENCING FACTORS:
- --------------------
Continued economic recovery in Asia and the U.S. are required for sustainable
improvement. China's ability to produce PVC without EDC could hamper growth.
Also uncertain is the impact of duties imposed by China on select PVC importers.
PVC/VCM
- -------
OXYCHEM COMMENTARY
- ------------------
o Sales were weak in the 2nd quarter as end users drew down inventories built
in the 1st quarter. Softness in the underlying demand worsened the
slowdown.
o Resin producers have reduced output in an effort to control inventories.
2nd quarter resin inventories are expected to end at or slightly below
beginning year levels. High costs continue to limit incremental production
for exports and the spot market.
o Capacities still exclude the former Borden Geismar and Addis facilities,
which remain idle. With the weakness in the domestic market and the import
duties implemented in China, the expectation is that the Addis facility
will start up no earlier than the 1st quarter of 2004, if then. There is
little indication that the Geismar PVC plant will restart in the near
future.
o After 1st quarter price increases totaling $.06/lb, another price increase
of $.02/lb was implemented in April. May prices were flat with April, while
June prices dropped $.01/lb in certain markets. Most producers are
supporting an announced $.02/lb increase for August.
o Demand for PVC exports improved slightly in the 2nd quarter due mostly to
outages in Asia. After declining initially, prices stabilized at 1st
quarter levels of $650/MT.
o Demand for VCM fell as PVC sales declined in North America. VCM sales to
Latin America also weakened due to reduced local demand and increased PVC
exports from the U.S.
o Export VCM prices began the quarter at $550-$560/MT and ended the quarter
at $480/MT.
INFLUENCING FACTORS:
- --------------------
Margins gained through PVC price increases and lower raw material costs are
largely offset by volume reductions. Volume and margin improvement is dependant
on the strengthening of underlying demand and economic recovery.
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Investor Relations Supplemental Schedules
[OXY LOGO]
SUMMARY OF OPERATING STATISTICS
SECOND QUARTER SIX MONTHS
--------------------- ---------------------
CAPITAL EXPENDITURES ($MM) 2003 2002 2003 2002
-------- -------- -------- --------
Oil & Gas
California $ 53 $ 61 $ 97 $ 121
Permian 60 44 115 103
Other - U.S. 12 28 26 44
Latin America 30 42 37 51
Middle East and Other 128 94 233 178
Eastern Hemisphere
Chemicals 205 1 21 273 2 35
Corporate 5 13 10 25
-------- -------- -------- --------
TOTAL $ 493 $ 303 $ 791 $ 557
======== ======== ======== ========
1 Includes $180 for buyout of VCM plant lease
2 Includes $180 for buyout of VCM plant lease and $44 for buyout of railcar
leases
SECOND QUARTER SIX MONTHS
DEPRECIATION, DEPLETION & --------------------- ---------------------
AMORTIZATION OF ASSETS ($MM) 2003 2002 2003 2002
-------- -------- -------- --------
Oil & Gas
Domestic $ 158 $ 147 $ 323 $ 296
Latin America 14 9 27 18
Middle East and Other 62 48 122 101
Eastern Hemisphere
Chemicals 48 47 92 95
Corporate 4 2 7 4
-------- -------- -------- --------
TOTAL $ 286 $ 253 $ 571 $ 514
======== ======== ======== ========
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
30-JUN-03 31-DEC-02
------------- -------------
CAPITALIZATION
Oxy Long-Term Debt (including current maturities) $ 4,093 1 $ 4,203
Trust Preferred Securities 454 455
Subsidiary Preferred Stock 75 75
Others 26 26
------------- -------------
TOTAL DEBT $ 4,648 $ 4,759
============= =============
EQUITY $ 7,054 $ 6,318
============= =============
Total Debt To Total Capitalization 40% 43%
============= =============
1 Includes $56 million due to the adoption of FIN 46
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Investor Relations Supplemental Schedules
[OXY LOGO]
Portions of this presentation are "forward-looking statements" as defined by the
Private Securities Litigation Reform Act of 1995, and involve risks and
uncertainties that could significantly affect expected results. No assurance can
be given that the results or statement of expectations or beliefs will be
attained. Factors that may cause actual results to differ materially are
contained in the March 31, 2002 form 10-K on file with the SEC.
17