EXHIBIT 99.2
Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2004 THIRD QUARTER
NET INCOME (LOSS)
($ MILLIONS)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ---------------------------------- ------------
Oil & Gas $ 1,003 $ 1,003
Chemical 137 137
Corporate
Interest expense, net - debt and
trust preferred distributions (59) (59)
Other (49) (49)
Taxes (274) (274)
------------ ------------ ------------
NET INCOME $ 758 $ -- $ 758
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.91 $ 1.91
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 THIRD QUARTER
NET INCOME (LOSS)
($ MILLIONS)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ---------------------------------- ------------
Oil & Gas $ 660 $ 660
Chemical 61 61
Corporate
Interest expense, net - debt and
trust preferred distributions (71) (71)
Other (44) (44)
Taxes (160) (160)
------------ ------------ ------------
NET INCOME $ 446 $ -- $ 446
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.16 $ 1.16
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2004 FIRST NINE MONTHS
NET INCOME (LOSS)
($ MILLIONS)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ---------------------------------- ------------
Oil & Gas $ 2,567 $ 2,567
Chemical 272 272
Corporate
Interest expense, net - debt and
trust preferred distributions (187) 11 Trust pfd redemption charge (176)
Other (153) (153)
Taxes (673) (20) IRS settlement (697)
(4) Tax effect of adjustments
------------ ------------ ------------
NET INCOME $ 1,826 $ (13) $ 1,813
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 4.63 $ 4.60
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2003 FIRST NINE MONTHS
NET INCOME (LOSS)
($ MILLIONS)
REPORTED CORE
INCOME SIGNIFICANT ITEMS AFFECTING INCOME EARNINGS
------------ ---------------------------------- ------------
Oil & Gas $ 2,024 $ 2,024
Chemical 139 139
Corporate
Interest expense, net - debt and
trust preferred distributions (270) 61 Debt repayment fee (209)
Other (175) (175)
Taxes (505) (21) Tax effect of adjustments (526)
------------ ------------ ------------
Income from continuing operations 1,213 40 1,253
Cumulative effect of accounting (68) 68 Cumulative effect of acct --
changes changes
------------ ------------ ------------
NET INCOME $ 1,145 $ 108 $ 1,253
============ ============ ============
BASIC EARNINGS PER COMMON SHARE
Income from continuing operations $ 3.17 $ 3.27
Cumulative effect of accounting changes (0.18) --
------------ ------------
$ 2.99 $ 3.27
============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
ITEMS AFFECTING COMPARABILITY OF CORE EARNINGS BETWEEN PERIODS
PRE-TAX
INCOME / (EXPENSE) THIRD QUARTER NINE MONTHS
----------------------------- ------------------------------
2004 2003 2004 2003
------------ ------------ ------------ -------------
OIL & GAS
Gain on sale of GOM assets (a) -- -- -- 14
CHEMICALS
Reorganizations / severance -- -- -- (15)
Chlorine derivatives asset impairment -- -- -- (9)
CORPORATE
Equity earnings 15 (6) 13 (42)
Environmental remediation -- -- -- (13)
Interest expense - early debt (5) -- (5) 6
extinguishments - 2004 / consolidation
of variable interest entity - 2003
(a) Amount shown after-tax
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
WORLDWIDE EFFECTIVE TAX RATE
---------------------------------------------- -----------------------------
QUARTERLY YEAR TO-DATE
---------------------------------------------- -----------------------------
2004 2004 2003 2004 2003
REPORTED INCOME QTR 3 QTR 2 QTR 3 9 MONTHS 9 MONTHS
------------ ------------ ------------ ------------ ------------
Oil & Gas (a) 1,221 985 799 3,125 2,436
Chemicals 139 88 63 279 147
Corporate & other (108) (109) (116) (340) (447)
------------ ------------ ------------ ------------ ------------
Pre-tax income 1,252 964 746 3,064 2,136
Income tax expense
Federal and state 277 213 163 681 517
Foreign (included in segments) (a) 217 170 137 557 406
------------ ------------ ------------ ------------ ------------
Total 494 383 300 1,238 923
------------ ------------ ------------ ------------ ------------
Income from continuing operations 758 581 446 1,826 1,213
============ ============ ============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 40% 40% 43%
2004 2004 2003 2004 2003
CORE INCOME QTR 3 QTR 2 QTR 3 9 MONTHS 9 MONTHS
------------ ------------ ------------ ------------ ------------
Oil & Gas (a) 1,221 985 799 3,125 2,436
Chemicals 139 88 63 279 147
Corporate & other (108) (109) (116) (329) (386)
------------ ------------ ------------ ------------ ------------
Pre-tax income 1,252 964 746 3,075 2,197
Income tax expense
Federal and state 277 213 162 705 537
Foreign (included in segments) (a) 217 170 138 557 407
------------ ------------ ------------ ------------ ------------
Total 494 383 300 1,262 944
------------ ------------ ------------ ------------ ------------
Income from continuing operations 758 581 446 1,813 1,253
============ ============ ============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 40% 41% 43%
(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 3 QTR 2 QTR 3 9 MONTHS 9 MONTHS
------------ ------------ ------------ ------------ ------------
149 116 104 382 295
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2004 THIRD QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
THIRD SECOND
QUARTER QUARTER
2004 2004 B / (W)
------------ ------------ ------------
OIL & GAS $ 1,003 $ 814 $ 189
CHEMICAL 137 85 52
CORPORATE
INTEREST EXPENSE, NET - DEBT AND
TRUST PREFERRED DISTRIBUTIONS (59) (60) 1
OTHER (49) (49) --
TAXES (274) (209) (65)
------------ ------------ ------------
NET INCOME $ 758 $ 581 $ 177
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.91 $ 1.48 $ 0.43
============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 1%
============ ============ ============
================================================================================
OCCIDENTAL PETROLEUM
2004 THIRD QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
THIRD SECOND
QUARTER QUARTER
2004 2004 B / (W)
------------ ------------ ------------
OIL & GAS $ 1,003 $ 814 $ 189
CHEMICAL 137 85 52
CORPORATE
INTEREST EXPENSE, NET - DEBT AND
TRUST PREFERRED DISTRIBUTIONS (59) (60) 1
OTHER (49) (49) --
TAXES (274) (209) (65)
------------ ------------ ------------
NET INCOME $ 758 $ 581 $ 177
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.91 $ 1.48 $ 0.43
============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 1%
============ ============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 3rd Quarter $ 1,003
2004 2nd Quarter 814
------------
$ 189
============
Price Variance $ 212
Volume/Mix Variance (21)
Exploration Expense Variance 3
All Others (5)
------------
TOTAL VARIANCE $ 189
============
================================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 3rd Quarter $ 137
2004 2nd Quarter 85
------------
$ 52
============
Sales Price $ 55
Sales Volume/Mix (2)
Operations/Manufacturing (6)
All Others 5
------------
TOTAL VARIANCE $ 52
============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
2004 THIRD QUARTER NET INCOME (LOSS)
REPORTED INCOME COMPARISON
THIRD THIRD
QUARTER QUARTER
2004 2003 B / (W)
------------ ------------ ------------
OIL & GAS $ 1,003 $ 660 $ 343
CHEMICAL 137 61 76
CORPORATE
INTEREST EXPENSE, NET - DEBT AND
TRUST PREFERRED DISTRIBUTIONS (59) (71) 12
OTHER (49) (44) (5)
TAXES (274) (160) (114)
------------ ------------ ------------
NET INCOME $ 758 $ 446 $ 312
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.91 $ 1.16 $ 0.75
============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 1%
============ ============ ============
================================================================================
OCCIDENTAL PETROLEUM
2004 THIRD QUARTER NET INCOME (LOSS)
CORE EARNINGS COMPARISON
THIRD THIRD
QUARTER QUARTER
2004 2003 B / (W)
------------ ------------ ------------
OIL & GAS $ 1,003 $ 660 $ 343
CHEMICAL 137 61 76
CORPORATE
INTEREST EXPENSE, NET - DEBT AND
TRUST PREFERRED DISTRIBUTIONS (59) (71) 12
OTHER (49) (44) (5)
TAXES (274) (160) (114)
------------ ------------ ------------
NET INCOME $ 758 $ 446 $ 312
============ ============ ============
BASIC EARNINGS PER COMMON SHARE $ 1.91 $ 1.16 $ 0.75
============ ============ ============
WORLDWIDE EFFECTIVE TAX RATE 39% 40% 1%
============ ============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
OIL & GAS
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 3rd Quarter $ 1,003
2003 3rd Quarter 660
------------
$ 343
============
Price Variance $ 451
Volume/Mix Variance (21)
Exploration Expense Variance --
All Others (87)
------------
TOTAL VARIANCE $ 343
============
================================================================================
OCCIDENTAL PETROLEUM
CHEMICAL
CORE EARNINGS VARIANCE ANALYSIS
($ MILLIONS)
2004 3rd Quarter $ 137
2003 3rd Quarter 61
------------
$ 76
============
Sales Price $ 112
Sales Volume/Mix 12
Operations/Manufacturing (55) *
All Others 7
------------
TOTAL VARIANCE $ 76
============
* Higher energy, feedstock costs and other manufacturing costs
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
NET PRODUCTION PER DAY:
UNITED STATES
CRUDE OIL AND LIQUIDS (MBL)
California 77 80 77 79
Permian 154 151 155 150
Horn Mountain 17 24 22 19
Hugoton 3 4 3 4
------------ ------------ ------------ ------------
TOTAL 251 259 257 252
NATURAL GAS (MMCF)
California 228 248 235 254
Hugoton 124 136 128 141
Permian 122 134 131 128
Horn Mountain 14 16 15 12
------------ ------------ ------------ ------------
TOTAL 488 534 509 535
LATIN AMERICA
CRUDE OIL (MBL)
Colombia 38 31 37 35
Ecuador 49 27 46 20
------------ ------------ ------------ ------------
TOTAL 87 58 83 55
MIDDLE EAST
CRUDE OIL (MBL)
Oman 14 13 13 12
Qatar 44 44 44 47
Yemen 28 34 33 36
------------ ------------ ------------ ------------
TOTAL 86 91 90 95
NATURAL GAS (MMCF)
Oman 88 -- 52 --
OTHER EASTERN HEMISPHERE
CRUDE OIL (MBL)
Pakistan 7 10 8 10
NATURAL GAS (MMCF)
Pakistan 73 71 74 74
BARRELS OF OIL EQUIVALENT (MBOE)
- --------------------------------------------------
SUBTOTAL CONSOLIDATED SUBSIDIARIES 539 519 544 514
OTHER INTERESTS
COLOMBIA - MINORITY INTEREST (4) (4) (5) (4)
RUSSIA - OCCIDENTAL NET INTEREST 27 30 29 30
YEMEN - OCCIDENTAL NET INTEREST 1 1 1 1
------------ ------------ ------------ ------------
TOTAL WORLDWIDE PRODUCTION (MBOE) 563 546 569 541
============ ============ ============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
OIL & GAS:
- ----------
PRICES
UNITED STATES
Crude Oil ($/BBL) 40.29 28.24 36.07 28.83
Natural gas ($/MCF) 5.87 5.00 5.25 4.93
LATIN AMERICA
Crude Oil ($/BBL) 36.07 25.84 32.00 27.29
MIDDLE EAST
Crude Oil ($/BBL) 37.76 27.14 34.00 27.59
Natural Gas ($/MCF) 0.97 -- 0.97 --
OTHER EASTERN HEMISPHERE
Crude Oil ($/BBL) 35.44 25.61 32.13 26.49
Natural Gas ($/MCF) 2.30 2.13 2.33 1.98
TOTAL WORLDWIDE
Crude Oil ($/BBL) 37.87 26.81 33.78 27.20
Natural Gas ($/MCF) 4.77 4.63 4.52 4.55
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
2004 2003 2004 2003
------------ ------------ ------------ ------------
EXPLORATION EXPENSE
Domestic $ 23 $ 25 $ 83 $ 70
Latin America 1 2 4 8
Middle East 1 6 15 12
Other Eastern Hemisphere 12 4 29 4
------------ ------------ ------------ ------------
TOTAL $ 37 $ 37 $ 131 $ 94
============ ============ ============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
CHEMICALS
VOLUME (M TONS, EXCEPT PVC RESINS)
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
MAJOR PRODUCTS 2004 2003 2004 2003
------------ ------------ ------------ ------------
Chlorine 730 681 2,176 2,031
Caustic 795 697 2,346 2,053
Ethylene Dichloride 102 135 324 374
PVC Resins (millions of pounds) 1,044 1,009 3,205 2,944
CHEMICALS
PRICES (INDEX)
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
MAJOR PRODUCTS 2004 2003 2004 2003
------------ ------------ ------------ ------------
Chlorine 2.23 1.76 1.94 1.73
Caustic 0.84 0.85 0.72 0.85
Ethylene Dichloride 1.64 1.13 1.48 1.18
PVC Resins 1.13 0.88 1.05 0.91
1987 through 1990 average price = 1.00
CHLORINE
- --------
OXYCHEM COMMENTARY
- ------------------
o Chlorine operating rates remained strong throughout the 3rd quarter.
Unscheduled chlor-alkali outages were the only source of reduced production
within the quarter.
o As contract terms permitted, OxyChem fully implemented the $20 per ton
price increase announced in the 2nd quarter.
o OxyChem announced an additional $20 per ton increase to be effective
October 1 to most accounts. Other U.S. chlor-alkali producers announced
similar increases. Market conditions are expected to remain favorable for
the successful implementation of the announced price increase.
o Hurricane Ivan and unscheduled outages in the 3rd quarter combined to
further tighten the supply/demand balance. 4th quarter operating rates are
expected to remain high as the demand for downstream products continues to
be strong.
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Investor Relations Supplemental Schedules
[OXY LOGO]
o Order control programs for chlorine are still in effect and are expected to
remain so through the 4th quarter for OxyChem and other U.S. producers.
INFLUENCING FACTORS:
- --------------------
Avoiding customer shutdowns will remain difficult due to tight chorine
supply/demand conditions and scheduled 4th quarter outages. Many large chlorine
consumers have been forced to curtail production rates due to lack of chlorine
availability. A smaller than expected fall-off in seasonal demand has
contributed to the tightening of the supply/demand balance.
CAUSTIC
- -------
OXYCHEM COMMENTARY
- ------------------
o 3rd quarter demand for caustic soda remained strong with sales volumes
consistent with those of the 2nd quarter. The organic, bleach and alumina
market segments contributed significantly to the strength of the 3rd
quarter.
o The order control programs instituted in the 2nd quarter by OxyChem and
other U.S. producers continued throughout the 3rd quarter and are expected
to remain through the 4th quarter.
o U.S. producers successfully implemented the $95 DST price increase
announced in the 2nd quarter. U.S. producers have announced an additional
price increase of $110 DST to be implemented in the 4th quarter.
INFLUENCING FACTORS:
- --------------------
The supply/demand balance for liquid caustic soda continues to lend support for
future price improvement in 2004. Continued strength in the U.S. manufacturing
sector is expected to keep liquid caustic soda demand in line with high chlorine
industry operating rates.
EDC
- ---
OXYCHEM COMMENTARY
- ------------------
o Sky-rocketing ethylene costs in Asia increased 3rd quarter demand for U.S.
produced EDC and offset any seasonal pricing pressures. As a result of the
increased demand, prices rose rapidly during the quarter.
o The accelerating EDC prices narrowed the gap with VCM and PVC that had
developed in the first half of 2004. By the middle of the 3rd quarter,
prices for EDC and its downstream products VCM and PVC had gained upward
momentum.
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Investor Relations Supplemental Schedules
[OXY LOGO]
o EDC availability to China increased in September when Japan experienced a
typhoon that damaged several of their VCM facilities.
INFLUENCING FACTORS:
- --------------------
The supply/demand balance for EDC in Asia is expected to remain tight. High raw
material and energy costs will support continued demand for U.S. produced
material. Chlorine availability within the U.S. for EDC production is expected
to be limited.
PVC/VCM
- -------
OXYCHEM COMMENTARY
- ------------------
o Strong domestic PVC demand coupled with a robust export market led to a
sold out position in the 3rd quarter. The export demand along with PVC
plant outages has contributed to a supply/demand position that is balanced
to tight on the domestic side.
o Domestic PVC industry operating rates dipped slightly from the 2nd quarter
due to outages. VCM and PVC inventories at the producer level declined
while PVC levels at pipe producers and distributors remained moderate.
o Strong demand from PVC producers, VCM plant outages and low operating rates
at Pemex tightened the VCM supply/demand balance. PVC production was
interrupted at some producers due to VCM availability.
o Both the Westlake Geismar and Shintech Addis facilities remain idle. There
is some indication that Westlake will attempt to restart the PVC plant at
low rates in November.
o Domestic PVC resin prices were flat in July and increased $0.01 per pound
in both August and September. An additional increase of $0.01 per pound is
expected for November.
INFLUENCING FACTORS:
- --------------------
Continued strong demand and pricing to the export market is expected through the
4th quarter, providing support for future price improvements throughout the
vinyls chain. However, increases in energy and ethylene costs will offset some
of the margin improvement gained in the 3rd quarter.
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS
THIRD QUARTER NINE MONTHS
----------------------------- -----------------------------
CAPITAL EXPENDITURES ($MM) 2004 2003 2004 2003
------------ ------------ ------------ ------------
Oil & Gas
California $ 87 $ 58 $ 231 $ 155
Permian 81 72 206 187
Other - U.S. 18 11 30 37
Latin America 40 30 123 67
Middle East 191 152 550 376
Other Eastern Hemisphere 7 5 28 14
Chemicals 40 27 96 300 (a)
Corporate 3 5 7 15
------------ ------------ ------------ ------------
TOTAL $ 467 $ 360 $ 1,271 $ 1,151
============ ============ ============ ============
(a) Includes $180 million for the buyout of a VCM plant lease and $44 million
for buyout of railcar leases
THIRD QUARTER NINE MONTHS
DEPRECIATION, DEPLETION & ----------------------------- -----------------------------
AMORTIZATION OF ASSETS ($MM) 2004 2003 2004 2003
------------ ------------ ------------ ------------
Oil & Gas
Domestic $ 153 $ 158 $ 466 $ 481
Latin America 24 15 72 42
Middle East 67 49 201 150
Other Eastern Hemisphere 13 12 35 33
Chemicals 61 57 184 149
Corporate 4 4 14 11
------------ ------------ ------------ ------------
TOTAL $ 322 $ 295 $ 972 $ 866
============ ============ ============ ============
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Investor Relations Supplemental Schedules
[OXY LOGO]
OCCIDENTAL PETROLEUM
CORPORATE
($ MILLIONS)
30-SEP-04 31-DEC-03
--------------- ---------------
CAPITALIZATION
Oxy Long-Term Debt (including current maturities) $ 3,832 $ 4,016
Trust Preferred Securities -- 453
Subsidiary Preferred Stock 75 75
Others 26 26
--------------- ---------------
TOTAL DEBT $ 3,933 $ 4,570
=============== ===============
EQUITY $ 9,778 $ 7,929
=============== ===============
Total Debt To Total Capitalization 29% 37%
=============== ===============
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Investor Relations Supplemental Schedules
[OXY LOGO]
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; 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.
18