EXHIBIT 99.2
Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 Second Quarter
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
-------------- ---------------------------------- --------------
Oil & Gas $ 814 $ 814
Chemical 85 85
Corporate
Interest expense, net - debt and
trust preferred distributions (60) (60)
Other (49) (49)
Taxes (209) (209)
-------------- -------------- --------------
NET INCOME $ 581 $ -- $ 581
============== ============== ==============
BASIC EARNINGS PER COMMON SHARE $ 1.48 $ 1.48
============== ==============
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Investor Relations Supplemental Schedules
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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 expense, net - debt and
trust preferred distributions (64) (64)
Other (75) (75)
Taxes (167) (167)
-------------- -------------- --------------
NET INCOME $ 374 $ -- $ 374
============== ============== ==============
BASIC EARNINGS PER COMMON SHARE $ 0.98 $ 0.98
============== ==============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 First Six Months
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
-------------- ---------------------------------- --------------
Oil & Gas $ 1,564 $ 1,564
Chemical 135 135
Corporate
Interest expense, net - debt and
trust preferred distributions (128) 11 Trust pfd redemption charge (117)
Other (104) (104)
Taxes (399) (20) IRS settlement (423)
(4) Tax effect of adjustments
-------------- -------------- --------------
NET INCOME $ 1,068 $ (13) $ 1,055
============== ============== ==============
BASIC EARNINGS PER COMMON SHARE $ 2.72 $ 2.69
============== ==============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2003 First Six Months
Net Income (Loss)
($ millions)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
-------------- ---------------------------------- --------------
il & Gas $ 1,364 $ 1,364
Chemical 78 78
Corporate
Interest expense, net - debt and
trust preferred distributions (199) 61 Debt repayment fee (138)
Other (131) (131)
Taxes (345) (21) Tax effect of adjustments (366)
-------------- -------------- --------------
Income from continuing operations 767 40 807
Cumulative effect of accounting (68) 68 Cumulative effect of acct --
changes changes
-------------- -------------- --------------
NET INCOME $ 699 $ 108 $ 807
============== ============== ==============
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations $ 2.02 $ 2.12
Cumulative effect of accounting changes (0.18) --
-------------- --------------
$ 1.84 $ 2.12
============== ==============
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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) SECOND QUARTER SIX MONTHS
------------------------------- -------------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
OIL & GAS
Gain on sale of GOM assets (a) -- 14 -- 14
CHEMICALS
Reorganizations / severance -- (15) -- (15)
Chlorine derivatives asset impairment -- (9) -- (9)
CORPORATE
Equity earnings 1 (14) (2) (35)
Environmental remediation -- (13) -- (13)
(a) Amount shown after-tax
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
WORLDWIDE EFFECTIVE TAX RATE
---------------------------------------------- -----------------------------
QUARTERLY YEAR TO-DATE
---------------------------------------------- -----------------------------
2004 2004 2003 2004 2003
REPORTED INCOME QTR 2 QTR 1 QTR 2 6 MONTHS 6 MONTHS
------------ ------------ ------------ ------------ ------------
Oil & Gas (a) 985 919 757 1,904 1,637
Chemicals 88 52 46 140 83
Corporate & other (109) (123) (139) (232) (330)
------------ ------------ ------------ ------------ ------------
Pre-tax income 964 848 664 1,812 1,390
Income tax expense
Federal and state 213 191 175 404 354
Foreign (included in segments) (a) 170 170 115 340 269
------------ ------------ ------------ ------------ ------------
Total 383 361 290 744 623
------------ ------------ ------------ ------------ ------------
Income from continuing operations 581 487 374 1,068 767
============ ============ ============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 40% 43% 44% 41% 45%
2004 2004 2003 2004 2003
CORE INCOME QTR 2 QTR 1 QTR 2 6 MONTHS 6 MONTHS
------------ ------------ ------------ ------------ ------------
Oil & Gas (a) 985 919 757 1,904 1,637
Chemicals 88 52 46 140 83
Corporate & other (109) (112) (139) (221) (269)
------------ ------------ ------------ ------------ ------------
Pre-tax income 964 859 664 1,823 1,451
Income tax expense
Federal and state 213 215 175 428 375
Foreign (included in segments) (a) 170 170 115 340 269
------------ ------------ ------------ ------------ ------------
Total 383 385 290 768 644
------------ ------------ ------------ ------------ ------------
Income from continuing operations 581 474 374 1,055 807
============ ============ ============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 40% 45% 44% 42% 44%
(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.
2004 2004 2003 2004 2003
QTR 2 QTR 1 QTR 2 6 MONTHS 6 MONTHS
------------ ------------ ------------ ------------ ------------
116 116 87 232 191
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 Second Quarter Net Income (Loss)
Reported Income Comparison
SECOND FIRST
QUARTER QUARTER
2004 2004 B / (W)
------------ ------------ ------------
Oil & Gas $ 814 $ 750 $ 64
Chemical 85 50 35
Corporate
Interest expense, net - debt and
trust preferred distributions (60) (68) 8
Other (49) (55) 6
Taxes (209) (190) (19)
------------ ------------ ------------
Net Income $ 581 $ 487 $ 94
============ ============ ============
Basic Earnings Per Common Share $ 1.48 $ 1.24 $ 0.24
============ ============ ============
Worldwide Effective Tax Rate 40% 43% 3%
============ ============ ============
================================================================================
OCCIDENTAL PETROLEUM
2004 Second Quarter Net Income (Loss)
Core Earnings Comparison
SECOND FIRST
QUARTER QUARTER
2004 2004 B / (W)
------------ ------------ ------------
Oil & Gas $ 814 $ 750 $ 64
Chemical 85 50 35
Corporate
Interest expense, net - debt and
trust preferred distributions (60) (57) (3)
Other (49) (55) 6
Taxes (209) (214) 5
------------ ------------ ------------
Net Income $ 581 $ 474 $ 107
============ ============ ============
Basic Earnings Per Common Share $ 1.48 $ 1.21 $ 0.27
============ ============ ============
Worldwide Effective Tax Rate 40% 45% 5%
============ ============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 2nd Quarter $ 814
2004 1st Quarter 750
------------
$ 64
============
Price Variance $ 88
Volume/Mix Variance (8)
Exploration Expense Variance 14
All Others (30)
------------
TOTAL VARIANCE $ 64
============
================================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 2nd Quarter $ 85
2004 1st Quarter 50
------------
$ 35
============
Sales Price $ 37
Sales Volume/Mix 4
Operations/Manufacturing (6)*
------------
TOTAL VARIANCE $ 35
============
* Higher energy costs
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
2004 SECOND QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
SECOND SECOND
QUARTER QUARTER
2004 2003 B / (W)
------------ ------------ ------------
Oil & Gas $ 814 $ 637 $ 177
Chemical 85 43 42
Corporate
Interest expense, net - debt and
trust preferred distributions (60) (64) 4
Other (49) (75) 26
Taxes (209) (167) (42)
------------ ------------ ------------
Net Income $ 581 $ 374 $ 207
============ ============ ============
Basic Earnings Per Common Share $ 1.48 $ 0.98 $ 0.50
============ ============ ============
Worldwide Effective Tax Rate 40% 44% 4%
============ ============ ============
================================================================================
OCCIDENTAL PETROLEUM
2004 SECOND QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
SECOND SECOND
QUARTER QUARTER
2004 2003 B / (W)
------------ ------------ ------------
Oil & Gas $ 814 $ 637 $ 177
Chemical 85 43 42
Corporate
Interest expense, net - debt and
trust preferred distributions (60) (64) 4
Other (49) (75) 26
Taxes (209) (167) (42)
------------ ------------ ------------
Net Income $ 581 $ 374 $ 207
============ ============ ============
Basic Earnings Per Common Share $ 1.48 $ 0.98 $ 0.50
============ ============ ============
Worldwide Effective Tax Rate 40% 44% 4%
============ ============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 2nd Quarter $ 814
2003 2nd Quarter 637
------------
$ 177
============
Price Variance $ 287
Volume/Mix Variance 7
Exploration Expense Variance (11)
All Others (106)
------------
TOTAL VARIANCE $ 177
============
================================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 2nd Quarter $ 85
2003 2nd Quarter 43
------------
$ 42
============
Sales Price $ 15
Sales Volume/Mix 20
Operations/Manufacturing (18)*
All Other 25
------------
TOTAL VARIANCE $ 42
============
* Higher energy and feedstock costs.
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
SECOND QUARTER SIX MONTHS
------------------------------- -------------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
NET PRODUCTION PER DAY:
United States
Crude Oil and Liquids (MBL)
California 78 81 78 79
Permian 156 151 155 147
Horn Mountain 23 19 23 16
Hugoton 3 3 3 4
------------ ------------ ------------ ------------
TOTAL 260 254 259 246
Natural Gas (MMCF)
California 234 252 239 257
Hugoton 132 143 129 143
Permian 132 131 136 125
Horn Mountain 15 15 16 10
------------ ------------ ------------ ------------
TOTAL 513 541 520 535
Latin America
Crude Oil (MBL)
Colombia 39 36 37 37
Ecuador 47 18 45 17
------------ ------------ ------------ ------------
TOTAL 86 54 82 54
Middle East
Crude Oil (MBL)
Oman 12 11 12 12
Qatar 44 51 43 49
Yemen 30 35 35 37
------------ ------------ ------------ ------------
TOTAL 86 97 90 98
Natural Gas (MMCF)
Oman 56 -- 33 --
Other Eastern Hemisphere
Crude Oil (MBL)
Pakistan 8 10 8 10
Natural Gas (MMCF)
Pakistan 73 77 74 76
Barrels of Oil Equivalent (MBOE)
- --------------------------------------------
Subtotal Consolidated Subsidiaries 547 518 544 510
Other interests
Colombia - minority interest (5) (5) (4) (4)
Russia - Occidental net interest 31 30 30 30
Yemen - Occidental net interest 1 1 1 2
------------ ------------ ------------ ------------
Total worldwide production (MBOE) 574 544 571 538
============ ============ ============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
SECOND QUARTER SIX MONTHS
-------------------------------- --------------------------------
2004 2003 2004 2003
------------ ------------- ------------- ------------
OIL & GAS:
- ----------
PRICES
UNITED STATES
Crude Oil ($/BBL) 35.44 26.89 34.02 29.15
Natural gas ($/MCF) 4.90 5.46 4.95 4.89
LATIN AMERICA
Crude Oil ($/BBL) 30.60 25.01 29.83 28.06
MIDDLE EAST
Crude Oil ($/BBL) 34.51 25.16 32.18 27.80
Natural Gas ($/MCF) 0.97 -- 0.97 --
OTHER EASTERN HEMISPHERE
Crude Oil ($/BBL) 32.26 25.75 30.79 26.89
Natural Gas ($/MCF) 2.47 1.91 2.35 1.91
SECOND QUARTER SIX MONTHS
-------------------------------- --------------------------------
2004 2003 2004 2003
------------ ------------- ------------- ------------
Exploration Expense
Domestic $ 22 $ 20 $ 60 $ 45
Latin America 2 5 3 6
Middle East 1 3 14 6
Other Eastern Hemisphere 15 1 17 --
------------- ------------- ------------- ------------
TOTAL $ 40 $ 29 $ 94 $ 57
============= ============= ============= ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
CHEMICALS
Volume (M Tons, except PVC Resins)
SECOND QUARTER SIX MONTHS
-------------------------------- --------------------------------
MAJOR PRODUCTS 2004 2003 2004 2003
------------ ------------- ------------- ------------
Chlorine 740 664 1,446 1,350
Caustic 819 719 1,551 1,356
Ethylene Dichloride 100 108 222 239
PVC Resins (millions of pounds) 1,090 872 2,161 1,935
CHEMICALS
Prices (Index)
SECOND QUARTER SIX MONTHS
-------------------------------- --------------------------------
MAJOR PRODUCTS 2004 2003 2004 2003
------------ ------------- ------------- ------------
Chlorine 2.00 1.81 1.80 1.72
Caustic 0.61 0.87 0.66 0.84
Ethylene Dichloride 1.51 1.17 1.40 1.21
PVC Resins 1.06 0.97 1.00 0.92
1987 through 1990 average price = 1.00
CHLORINE
- --------
OXYCHEM COMMENTARY
- ------------------
o Chlorine operating rates were at maximum practical capacity in the 2nd
quarter due to strong seasonal demand.
o As contract terms permitted, OxyChem fully implemented the $75 per ton
price increase announced in the 1st quarter.
o OxyChem and other U.S. producers announced a $20 per ton increase to be
effective July 1. Market conditions are expected to remain favorable for
the successful implementation of the announced price increase.
o OxyChem continues to manage chlorine shipments via a 100% order control
program. Other major merchant producers also announced order control
programs in the 2nd quarter.
INFLUENCING FACTORS:
- --------------------
Avoiding customer shutdowns will remain difficult due to tight chorine
supply/demand conditions, reduced inventories and deteriorating rail service.
Continued strong
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Investor Relations Supplemental Schedules
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seasonal demand for chlorine is expected to further tighten the
supply/demand balance in the 3rd quarter.
CAUSTIC
- -------
OXYCHEM COMMENTARY
- ------------------
o Caustic soda demand continued to strengthen with 2nd quarter sales
improving over 1st quarter volumes due to strong demand in the pulp and
paper, bleach, and distribution markets.
o Seasonal applications are expected to support continued strong demand for
caustic soda through the 3rd quarter.
o Increased requirements for liquid caustic soda and a narrowing
supply/demand balance have necessitated the implementation of order control
programs for many U.S. producers.
o Asian supply/demand balance tightened dramatically over the quarter, with
spot U.S. export prices rising dramatically from lows in April.
o Between late April and May, OxyChem and other U.S. producers announced
price increases totaling $95 per dry short ton. The increases are expected
to be largely realized in the 3rd quarter as contract terms permit.
INFLUENCING FACTORS:
- --------------------
A narrowing supply/demand imbalance for liquid caustic soda will continue to
lend support for future price improvement in 2004 as demand keeps pace with high
chlorine industry operating rates.
EDC
- ---
OXYCHEM COMMENTARY
- ------------------
o The gap between EDC and VCM prices narrowed in the 2nd quarter as EDC
prices gained upward momentum due to the combination of higher VCM
operating rates and scheduled EDC outages.
o The tightness in the chlorine market limited the availability of U.S.
produced EDC in the 2nd quarter.
o Raw material and power availability within China has restricted calcium
carbide based VCM production. This has increased demand for both EDC and
VCM into Asia.
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Investor Relations Supplemental Schedules
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INFLUENCING FACTORS:
- --------------------
Reduced EDC demand could result from VCM production curtailments in the Far East
if the profit margins for converting EDC to VCM face downward pressure due to
high ethylene costs. VCM prices are expected to limit EDC prices in the 3rd
quarter.
PVC/VCM
- -------
OXYCHEM COMMENTARY
- ------------------
o Robust demand in the construction sector led to strong domestic PVC sales
in the 2nd quarter. Inventories at PVC producers continued to decline while
they remained at moderate levels at pipe producers and distributors.
o Export sales volumes for PVC held strong in the 2nd quarter and netbacks to
all regions remained healthy. However, Chinese demand for PVC was
negatively influenced when the Chinese government restricted lending and
the producers faced energy issues that curtailed VCM and PVC production
rates.
o Both the Westlake Geismar and Shintech Addis facilities remain idle. There
is no indication that either plant will restart in 2004.
o North American producers operated at near capacity for both PVC resin and
VCM during the 2nd quarter.
o Domestic PVC resin prices increased $0.02 per pound in April and $0.01 per
pound in both May and June. Additional increases of a $0.01 per pound have
been announced for both July and August.
o PVC resin export prices ended the quarter at $815 - $840 per metric ton CFR
Southeast Asia.
o Pemex experienced VCM operating problems in the 2nd quarter, contributing
to a VCM supply/demand position that remained balanced to tight.
o VCM export prices closed the 2nd quarter at $630 - $640 per metric ton FOB
Gulf Coast.
INFLUENCING FACTORS:
- --------------------
While prices have moved up, margin improvement has been limited due to high
energy and ethylene costs. Strong global demand for PVC and VCM coupled with a
tight VCM supply will provide support for future price improvement throughout
the vinyl's chain. Continued economic recovery is expected to sustain a strong
vinyl's business environment through the 3rd quarter.
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
SECOND QUARTER SIX MONTHS
------------------------------- -------------------------------
CAPITAL EXPENDITURES ($MM) 2004 2003 2004 2003
------------ ------------ ------------ ------------
Oil & Gas
California $ 83 $ 53 $ 144 $ 97
Permian 63 60 125 115
Other - U.S. 8 12 12 26
Latin America 63 30 83 37
Middle East 191 122 359 224
Other Eastern Hemisphere 10 6 21 9
Chemicals 40 205 (a) 56 273 (b)
Corporate 3 5 4 10
------------ ------------ ------------ ------------
TOTAL $ 461 $ 493 $ 804 $ 791
============ ============ ============ ============
(a) Includes $180 million for the buyout of a VCM plant lease
(b) Includes $180 million for the buyout of a VCM plant lease and $44 million
for buyout of railcar leases
SECOND QUARTER SIX MONTHS
DEPRECIATION, DEPLETION & ------------------------------- -------------------------------
AMORTIZATION OF ASSETS ($MM) 2004 2003 2004 2003
------------ ------------ ------------ ------------
Oil & Gas
Domestic $ 157 $ 158 $ 313 $ 323
Latin America 26 14 48 27
Middle East 65 49 134 101
Other Eastern Hemisphere 10 13 22 21
Chemicals 62 48 123 92
Corporate 5 4 10 7
------------ ------------ ------------ ------------
TOTAL $ 325 $ 286 $ 650 $ 571
============ ============ ============ ============
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Investor Relations Supplemental Schedules
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OCCIDENTAL PETROLEUM
CORPORATE
($ millions)
30-JUN-04 31-DEC-03
----------------- -----------------
CAPITALIZATION
Oxy Long-Term Debt (including current maturities) $ 3,970 $ 4,016
Trust Preferred Securities -- 453
Subsidiary Preferred Stock 75 75
Others 26 26
----------------- -----------------
TOTAL DEBT $ 4,071 $ 4,570
================= =================
EQUITY $ 9,006 $ 7,929
================= =================
Total Debt To Total Capitalization 31% 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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