EXHIBIT 99.2
Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 First Quarter
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ------------------------------------- ------------
Oil & Gas $ 750 $ 750
Chemical 50 50
Corporate
Interest
Debt, net (54) (54)
Trust pfd distributions & other (14) 11 Trust pfd redemption charge (3)
Other (55) (55)
Taxes (190) (20) IRS settlement (214)
(4) Tax effect of adjustments
------------ ------------ ------------
NET INCOME $ 487 $ (13) $ 474
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.24 $ 1.21
============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2003 First Quarter
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ---------------------------------------- ------------
Oil & Gas $ 727 $ 727
Chemical 35 35
Corporate
Interest
Debt, net (124) 61 Debt repayment fee (63)
Trust pfd distributions & other (11) (11)
Other (56) (56)
Taxes (178) (21) Tax effect of adjustments (199)
------------ ------------ ------------
Income from continuing operations 393 40 433
Cumulative effect of accounting changes (68) 68 Cumulative effect of acct changes --
------------ ------------ ------------
NET INCOME $ 325 $ 108 $ 433
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 0.86 $ 1.14
============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS
PRE-TAX
INCOME / (EXPENSE) FIRST QUARTER
-----------------------------
2003 2002
------------ ------------
CORPORATE
Equity earnings (3) (21)
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate
2004 2003 2003
REPORTED INCOME QTR 1 QTR 1 QTR 4
-------- -------- --------
Pre-tax Income 848 726 686
Income tax expense
Domestic (Federal and state) 191 179 152
Foreign (included in operating segments) 170 154 152
-------- -------- --------
Total 361 333 304
Income from continuing operations 487 393 382
Cumulative effect of acct changes -- (68) --
-------- -------- --------
Net Income 487 325 382
WORLDWIDE EFFECTIVE TAX RATE 43% 46% 44%
2004 2003 2003
CORE INCOME QTR 1 QTR 1 QTR 4
-------- -------- --------
Pre-tax Income 859 787 686
Income tax expense
Domestic (Federal and state) 215 200 152
Foreign (included in operating segments) 170 154 152
-------- -------- --------
Total 385 354 304
-------- -------- --------
Core Income 474 433 382
WORLDWIDE EFFECTIVE TAX RATE 45% 45% 44%
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 FIRST QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
FIRST FOURTH
QUARTER QUARTER
2004 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 750 $ 640 $ 110
CHEMICAL 50 71 (21)
CORPORATE
INTEREST
DEBT, NET (54) (53) (1)
TRUST PFD DISTRIBUTIONS & OTHER (14) (10) (4)
OTHER (55) (109) 54
TAXES (190) (157) (33)
---------- ---------- ----------
NET INCOME $ 487 $ 382 $ 105
========== ========== ==========
BASIC EARNINGS PER COMMON SHARE $ 1.24 $ 0.99 $ 0.25
========== ========== ==========
EFFECTIVE TAX RATE 43% 44% 1%
========== ========== ==========
================================================================================
OCCIDENTAL PETROLEUM
2004 FIRST QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
FIRST FOURTH
QUARTER QUARTER
2004 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 750 $ 640 $ 110
CHEMICAL 50 71 (21)
CORPORATE
INTEREST
DEBT, NET (54) (53) (1)
TRUST PFD DISTRIBUTIONS & OTHER (3) (10) 7
OTHER (55) (109) 54
TAXES (214) (157) (57)
---------- ---------- ----------
NET INCOME $ 474 $ 382 $ 92
========== ========== ==========
BASIC EARNINGS PER COMMON SHARE $ 1.21 $ 0.99 $ 0.22
========== ========== ==========
EFFECTIVE TAX RATE 45% 44% -1%
========== ========== ==========
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 1st Quarter $ 750
2003 4th Quarter 640
--------
$ 110
========
Price Variance $ 161
Volume Variance --
Exploration Expense Variance (9)
All Other (42) *
--------
TOTAL VARIANCE $ 110
========
* 2003 includes $38 property tax settlement
======================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 1st Quarter $ 50
2003 4th Quarter 71
--------
$ (21)
========
Sales Price $ 17
Sales Volume/Mix 7
Operations/Manufacturing (38) *
All Other (7)
--------
TOTAL VARIANCE $ (21)
========
* Higher energy and higher feedstock costs
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 FIRST QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
FIRST FIRST
QUARTER QUARTER
2004 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 750 $ 727 $ 23
CHEMICAL 50 35 15
CORPORATE
INTEREST
DEBT, NET (54) (124) 70
TRUST PFD DISTRIBUTIONS & OTHER (14) (11) (3)
OTHER (55) (56) 1
TAXES (190) (178) (12)
---------- ---------- ----------
INCOME FROM CONTINUING OPERATIONS 487 393 94
DISCONTINUED OPERATIONS, NET -- (68) 68
---------- ---------- ----------
NET INCOME $ 487 $ 325 $ 162
========== ========== ==========
BASIC EARNINGS PER COMMON SHARE $ 1.24 $ 0.86 $ 0.38
========== ========== ==========
EFFECTIVE TAX RATE 43% 46% 3%
========== ========== ==========
================================================================================
OCCIDENTAL PETROLEUM
2004 FIRST QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
FIRST FIRST
QUARTER QUARTER
2004 2003 B / (W)
---------- ---------- ----------
OIL & GAS $ 750 $ 727 $ 23
CHEMICAL 50 35 15
CORPORATE
INTEREST
DEBT, NET (54) (63) 9
TRUST PFD DISTRIBUTIONS & OTHER (3) (11) 8
OTHER (55) (56) 1
TAXES (214) (199) (15)
---------- ---------- ----------
NET INCOME $ 474 $ 433 $ 41
========== ========== ==========
BASIC EARNINGS PER COMMON SHARE $ 1.21 $ 1.14 $ 0.07
========== ========== ==========
EFFECTIVE TAX RATE 45% 45% 0%
========== ========== ==========
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 1st Quarter $ 750
2003 1st Quarter 727
--------
$ 23
========
Price Variance $ 48
Volume Variance 46
Exploration Expense Variance (26)
All Others (45)
--------
TOTAL VARIANCE $ 23
========
======================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 1st Quarter $ 50
2003 1st Quarter 35
--------
$ 15
========
Sales Price $ 16
Sales Volume/Mix 8
Operations/Manufacturing (8) *
All Other (1)
--------
TOTAL VARIANCE $ 15
========
* Higher feedstock costs.
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
-------------------------------
FIRST QUARTER
---------------------
2004 2003
-------- --------
NET PRODUCTION PER DAY:
UNITED STATES
CRUDE OIL AND LIQUIDS (MBL)
California 77 78
Permian 153 144
Horn Mountain 25 15
Hugoton 3 4
-------- --------
TOTAL 258 241
NATURAL GAS (MMCF)
California 243 262
Hugoton 127 144
Permian 140 117
Horn Mountain 17 5
-------- --------
TOTAL 527 528
LATIN AMERICA
CRUDE OIL (MBL)
Colombia 36 37
Ecuador 43 16
-------- --------
TOTAL 79 53
MIDDLE EAST
CRUDE OIL (MBL)
Oman 14 13
Qatar 42 47
Yemen 39 39
-------- --------
TOTAL 95 99
NATURAL GAS (MMCF)
Oman 11 --
OTHER EASTERN HEMISPHERE
CRUDE OIL (MBL)
Pakistan 9 10
NATURAL GAS (MMCF)
Pakistan 75 75
BARRELS OF OIL EQUIVALENT (MBOE)
- --------------------------------
SUBTOTAL CONSOLIDATED SUBSIDIARIES 543 504
OTHER INTERESTS
COLOMBIA - MINORITY INTEREST (4) (4)
RUSSIA - OCCIDENTAL NET INTEREST 28 30
YEMEN - OCCIDENTAL NET INTEREST 1 2
-------- --------
TOTAL WORLDWIDE PRODUCTION (MBOE) 568 532
======== ========
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Investor Relations Supplemental Schedules
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SUMMARY OF OPERATING STATISTICS
-------------------------------
FIRST QUARTER
--------------------
2004 2003
-------- --------
OIL & GAS:
- ----------
PRICES
UNITED STATES
Crude Oil ($/BBL) 32.62 31.57
Natural gas ($/MCF) 5.00 4.30
LATIN AMERICA
Crude oil ($/BBL) 28.99 31.23
MIDDLE EAST
Crude oil ($/BBL) 30.08 30.40
Natural gas ($/MCF) 0.97 --
OTHER EASTERN HEMISPHERE
Crude oil ($/BBL) 29.37 28.05
Natural Gas ($/MCF) 2.23 1.89
FIRST QUARTER
--------------------
2004 2003
-------- --------
Exploration Expense
Domestic $ 38 $ 25
Latin America 1 1
Middle East 13 3
Other Eastern Hemisphere 2 (1)
-------- --------
TOTAL $ 54 $ 28
======== ========
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
CHEMICALS
Volume (M Tons)
FIRST QUARTER
---------------------
MAJOR PRODUCTS 2004 2003
-------- --------
Chlorine 706 686
Caustic 732 637
Ethylene Dichloride 122 131
PVC Resins 1,071 1,063
CHEMICALS
Prices (Index)
FIRST QUARTER
---------------------
MAJOR PRODUCTS 2004 2003
-------- --------
Chlorine 1.60 1.64
Caustic 0.71 0.81
Ethylene Dichloride 1.32 1.23
PVC Resins 0.94 0.89
1987 through 1990 average price = 1.00
CHLORINE
- --------
OXYCHEM COMMENTARY
- ------------------
o Chlorine operating rates strengthened in the 1st quarter due to strong
demand into the vinyl's chain. Industry operating rates increased
approximately 1% in the 1st quarter 2004 versus the 4th quarter 2003.
o OxyChem announced a $75 per ton price increase on January 27th , effective
February 26th. Other U.S. chlor-alkali producers also announced a $75 per
ton price increase in the 1st quarter.
o Due to the tightening chlorine supply/demand balance, OxyChem announced and
implemented a chlorine control program on March 15th.
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Investor Relations Supplemental Schedules
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INFLUENCING FACTORS:
- --------------------
Industry operating rates are nearing practical capacity levels. Normal seasonal
increases in the bleach, water treatment and agricultural end use markets are
expected to push chlorine demand higher in the 2nd quarter.
CAUSTIC
- -------
OXYCHEM COMMENTARY
- ------------------
o Caustic soda sales improved in the 1st quarter propelled by strong demand
in the organic and alumina markets. Continuing improvement in the U.S.
manufacturing sector also contributed to the overall increase in sales.
o Demand for caustic soda is expected to improve in the 2nd quarter as the
requirements for seasonal applications increase.
o Pricing came under pressure in the 1st quarter due to high chlorine
industry operating rates in support of increased vinyl's demand.
INFLUENCING FACTORS:
- --------------------
A narrowing supply/demand imbalance for liquid caustic soda will lend support
for future price improvement in 2004. Continued improvement in the U.S.
manufacturing sector is expected to result in higher caustic soda demand.
However, weakness in the manufacturing sector coupled with high chlorine
industry operating rates could prolong the supply/demand imbalance.
EDC
- ---
OXYCHEM COMMENTARY
- ------------------
o EDC prices improved in the Far East early in the 1st quarter in conjunction
with higher values for VCM and PVC.
o A March pullback of PVC prices in China and uncertainty about future price
movements stabilized the upward EDC price momentum experienced in the first
part of the quarter.
o While VCM and PVC remain tight, the current global EDC supply/demand
position is balanced to long. As a result, EDC is relatively undervalued in
comparison to the other intermediates in the vinyl's chain.
INFLUENCING FACTORS:
- --------------------
Higher PVC requirements in Asia, particularly China, are fueling demand for VCM
and EDC. However, despite the strong demand, Asian VCM production has been
curtailed
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Investor Relations Supplemental Schedules
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due to both scheduled and unscheduled VCM plant outages. This situation has
negatively impacted EDC sales, resulting in a weaker than expected EDC
supply/demand balance. As no significant changes are expected in Asian VCM
production in the 2nd quarter, EDC demand is projected to remain flat.
PVC/VCM
- -------
OXYCHEM COMMENTARY
- ------------------
o Domestic sales for PVC resin were strong in the 1st quarter in anticipation
of seasonal demand for pipe and other exterior building products. Inventory
throughout the vinyl's chain has remained moderate in comparison to 2003.
o PVC resin exports were also strong during the 1st quarter, due primarily to
demand from China.
o Both the Westlake Geismar and Shintech Addis facilities remain idle. There
is no indication that either plant will restart in 2004.
o Industry operating rates for PVC resin during the 1st quarter were
constrained due to scheduled and unscheduled VCM outages. OxyChem ran PVC
resin at available capacity.
o Domestic PVC resin prices increased $0.02 per pound in January versus
December and another $0.02 per pound in both February and March. An
additional $0.02 per pound increase has been implemented for April with
$0.02 more announced for May. Higher sales prices have been necessary to
offset higher ethylene and natural gas cost.
o As a result of increased PVC demand and tight VCM supply, PVC resin export
prices ended the quarter at $850 - $870 per metric ton CFR Southeast Asia.
o The on-going VCM outages at Pemex and Dow contributed to a tight VCM supply
during the 1st quarter. This tightness is expected to continue throughout
the 2nd quarter as demand outpaces supply. As of early April, VCM
inventories throughout the industry are at minimum levels
o VCM export prices closed the 1st quarter at $640 - $660 per metric ton FOB
Gulf Coast.
INFLUENCING FACTORS:
- --------------------
Strong global demand for PVC and VCM coupled with a tight VCM supply will
provide support for future price improvement throughout the vinyl's chain.
Continued economic recovery is expected to sustain a strong vinyl's business
environment through the 2nd quarter.
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Investor Relations Supplemental Schedules
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SUMMARY OF OPERATING STATISTICS
-------------------------------
FIRST QUARTER
---------------------
CAPITAL EXPENDITURES ($MM) 2004 2003
-------- --------
Oil & Gas
California $ 61 $ 44
Permian 62 55
Other - U.S. 4 14
Latin America 20 7
Middle East 168 102
Other Eastern Hemisphere 11 3
Chemicals 16 68 *
Corporate 1 5
-------- --------
TOTAL $ 343 $ 298
======== ========
(1) Includes $44 for buyout of railcar leases
FIRST QUARTER
DEPRECIATION, DEPLETION & ---------------------
AMORTIZATION OF ASSETS ($MM) 2004 2003
-------- --------
Oil & Gas
Domestic $ 156 $ 165
Latin America 22 13
Middle East 69 52
Other Eastern Hemisphere 12 8
Chemicals 61 44
Corporate 5 3
-------- --------
TOTAL $ 325 $ 285
======== ========
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
PRELIMINARY 31-MAR-04 31-DEC-03
------------- -------------
CAPITALIZATION
Oxy Long-Term Debt (including current maturities) $ 4,041 $ 4,016
Trust Preferred Securities -- 453
Subsidiary Preferred Stock 75 75
Others 26 26
------------- -------------
TOTAL DEBT $ 4,142 $ 4,570
============= =============
EQUITY $ 8,464 $ 7,929
============= =============
Total Debt To Total Capitalization 33% 37%
============= =============
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Investor Relations Supplemental Schedules
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Statements in this presentation that contain words such as "will" or "expect",
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: global
commodity pricing fluctuations, and supply/demand considerations, for oil, gas
and chemicals; higher-than-expected costs; 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.
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