EXHIBIT 99.1
- --------------------------------------------------------------------------------
OCCIDENTAL PETROLEUM CORPORATION
[OXY LOGO]
STEVE CHAZEN
Senior Executive Vice President &
Chief Financial Officer
CREDIT SUISSE FIRST BOSTON
2005 ANNUAL ENERGY SUMMIT
February 3, 2005
- --------------------------------------------------------------------------------
1
- --------------------------------------------------------------------------------
BUILDING LONG-TERM VALUE [OXY LOGO]
o Growth tools
- Focused strategy
- Long-lived assets
- Disciplined investment philosophy
- Strong balance sheet
- Talented workforce
- Responsible corporate citizenship
- --------------------------------------------------------------------------------
2
- --------------------------------------------------------------------------------
FINANCIAL PERFORMANCE CRITERIA [OXY LOGO]
o Return on capital employed
- Measures efficient use of capital
o Return on equity
o Total return to stockholders
- Stock price change plus dividend
- --------------------------------------------------------------------------------
3
- --------------------------------------------------------------------------------
RETURN ON CAPITAL EMPLOYED [OXY LOGO]
2001-2003 Average
(Percentage)
[the following is a tabular representation of graphical materials]
STOCK RETURN ON
SYMBOL CAPITAL EMPLOYED
---------- --------------------
XOM 18.2
OXY 12.6
APA 11.5
BR 10.7
BP 10.2
UCL 9.4
CVX 8.7
MRO 8.3
DVN 6.5
AHC 6.3
APC 6.1
COP 5.8
KMG 3.4
Total 2001-2003 income before interest expense divided by average
capital employed (average debt plus equity); interest is added back
after-tax (using 35% statutory rate, not effective rate). See Addendum
for GAAP reconciliation.
- --------------------------------------------------------------------------------
4
- --------------------------------------------------------------------------------
RETURN ON EQUITY [OXY LOGO]
2001-2003 Average
(Percentage)
[the following is a tabular representation of graphical materials]
STOCK RETURN
SYMBOL ON EQUITY
---------- ----------
XOM 20.3
OXY 18.5
BR 17.2
APA 15.4
UCL 15.2
MRO 12.4
BP 12.3
CVX 11.4
DVN 10.1
AHC 9.2
APC 8.9
COP 7.8
KMG 2.6
Income applicable to common shares in 2001-2003 divided by average
equity during the year - per SEC filings.
- --------------------------------------------------------------------------------
5
- --------------------------------------------------------------------------------
COMPARATIVE TOTAL RETURNS [OXY LOGO]
3 Years (12/31/01 - 12/31/04)*
(Percent)
[the following is a tabular representation of graphical materials]
STOCK TOTAL
SYMBOL RETURNS
---------- ----------
BR 139.7
OXY 139.6
APA 117.2
DVN 104.3
COP 53.4
XOM 40.5
BP 39.7
AHC 39.5
MRO 38.8
CVX 30.5
UCL 28.9
KMG 17.7
APC 17.0
DJIA 14.8
S&P 500 11.1
*Data Source: Bloomberg
- --------------------------------------------------------------------------------
6
- --------------------------------------------------------------------------------
OVERALL VALUE CREATION STRATEGY [OXY LOGO]
o Focus on three core geographic areas
o Maximize free cash flow
o Maintain strong balance sheet
o Review dividend policy annually
- --------------------------------------------------------------------------------
7
- --------------------------------------------------------------------------------
WORLDWIDE PRODUCTION AND [OXY LOGO]
PROVED RESERVES ADDITIONS
Million BOE
[the following is a tabular representation of graphical materials]
WORLDWIDE WORLDWIDE
YEAR PRODUCTION ADDITIONS
---- ---------- ---------
2000 168 1,170
2001 173 244
2002 188 263
2003 200 368
2004 207
- --------------------------------------------------------------------------------
8
- --------------------------------------------------------------------------------
WORLDWIDE PROVEN RESERVES [OXY LOGO]
Million BOE
[the following is a tabular
representation of graphical
materials]
2001 2002 2003 - Horn Mountain -
------ ------ ------
US 1,698 1,755 1,805 [photo]
International 543 556 666
------ ------ ------
Total 2,241 2,311 2,471
- --------------------------------------------------------------------------------
9
- --------------------------------------------------------------------------------
WORLDWIDE PROVEN RESERVES [OXY LOGO]
Million BOE
[the following is a tabular
representation of graphical
materials]
2001 2002 2003 - Horn Mountain -
------ ------ ------
Developed 1,773 1,832 2,954 [photo]
Undeveloped 468 479 517
------ ------ ------
Total 2,241 2,311 2,471
- --------------------------------------------------------------------------------
10
- --------------------------------------------------------------------------------
TOTAL DEBT & EQUITY [OXY LOGO]
Total Debt - $ Millions Total Equity - $ Millions
[the following is a tabular [the following is a tabular
representation of graphical representation of graphical
materials] materials]
DEBT/CAP -
YEAR DEBT PERCENTAGE YEAR EQUITY
------ ------ -------------- ------ --------
2000 6,354 57% 2000 4,774
2001 4,890 46% 2001 5,634
2002 4,759 43% 2002 6,318
2003 4,570 37% 2003 7,929
2004 3,905 27% 2004 10,473
- --------------------------------------------------------------------------------
11
- --------------------------------------------------------------------------------
FINANCIAL RESULTS [OXY LOGO]
2003 2004
---------- ----------
Net income ($ Billions) $ 1.5 $ 2.5
EPS ($ Share) $ 3.98 $ 6.30
Cash from operations ($ Billions) $ 3.1 $ 4.2 *
* Excluding the reduction of $360 million of accounts receivable sales
- --------------------------------------------------------------------------------
12
- --------------------------------------------------------------------------------
NON-CORE INVESTMENTS [OXY LOGO]
$ Millions
1/25/05
----------
[LYONDELL LOGO] 41.0 million shares (17%) $ 1,165
[PREMCOR LOGO] 9.0 million shares (10%) $ 410
----------
$ 1,575
- --------------------------------------------------------------------------------
13
- --------------------------------------------------------------------------------
2005 CAPITAL EXPENDITURE ($MM) [OXY LOGO]
Oil & Gas US 650
Middle East 550
Latin America 80
Other International 10
Exploration 120
Chemicals 150
-----
1,560
Dolphin 540
-----
2,100 *
* excludes acquisitions
- --------------------------------------------------------------------------------
14
- --------------------------------------------------------------------------------
PRODUCTION GROWTH [OXY LOGO]
o Qatar
- ISND / ISSD
- Dolphin
o Libya
o Other Middle East Projects
o Permian Basin / California - Natural Consolidator
- --------------------------------------------------------------------------------
15
- --------------------------------------------------------------------------------
DOLPHIN PROJECT [OXY LOGO]
Projected Start - 2006
o Invest $1 billion in
this $4 billion
project (2004-2006)
o Peak net production
- 275 million cubic
[map of Dolphin Project] feet/day
- 20,000 barrels
liquids/day
- Equals 65,000
BOE/day
o 25-year cumulative net
production
- 1.3 trillion cubic
feet
- 85 million barrels
liquids
- Totals 300 million
BOE
Dolphin
Oxy's Interest.........................................24.5%
Oxy's Cumulative Net Production (25 years)........300 MM BOE
Oxy Net Production Estimate...................65,000 BOE/Day
- --------------------------------------------------------------------------------
16
- --------------------------------------------------------------------------------
EXPLORATION PROPERTIES WITH SAT IMAGE & FIELDS [OXY LOGO]
[map of Libya]
- --------------------------------------------------------------------------------
17
- --------------------------------------------------------------------------------
CHEMICAL HIGHLIGHTS [OXY LOGO]
o Role of chemicals business
- Generate free cash flow through the business cycle
- 2004 free cash flow $500 million
o Goal
- Generate in excess of $300 million of free cash flow per
year
o 1Q05 - Expect Chemical Earnings of about
$150MM
- High Energy Prices
- Current Strength in Caustic Soda
o Vulcan Chlor-Alkali Plants acquisition
- --------------------------------------------------------------------------------
18
- --------------------------------------------------------------------------------
USES OF CASH FLOW [OXY LOGO]
o Disciplined Capital Expenditure Program
o Selective Acquisitions
o Dividends - Reviewed Annually
o Build Liquidity
- --------------------------------------------------------------------------------
19
- --------------------------------------------------------------------------------
WHAT'S AHEAD? [OXY LOGO]
o Success riding on two factors
- Maintain strong asset base to generate
cash to support growth
- Add new projects in core areas
o Stay focused on the fundamentals
- Maintain financial discipline and focus
- Execute our strategy
o Create long-term value
- --------------------------------------------------------------------------------
20
- --------------------------------------------------------------------------------
OCCIDENTAL PETROLEUM CORPORATION [OXY LOGO]
Statements in this presentation that contain words such as "will",
"expect" or "estimate", 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. The United States Securities and Exchange Commission (SEC)
permits oil and natural gas companies, in their filings with the SEC,
to disclose only proved reserves demonstrated by actual production or
conclusive formation tests to be economically producible under
existing economic and operating conditions. We use certain terms in
this presentation, such as probable, possible and recoverable
reserves, that the SEC's guidelines strictly prohibit us from using in
filings with the SEC. U.S. investors are urged to consider carefully
the disclosure in our Form 10-K, available through the following
toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the
Internet at http://www.oxy.com. You also can obtain a copy from the
SEC by calling 1-800-SEC-0330.
- --------------------------------------------------------------------------------
21
- --------------------------------------------------------------------------------
[OXY LOGO]
- --------------------------------------------------------------------------------
31
- --------------------------------------------------------------------------------
[OXY LOGO]
- --------------------------------------------------------------------------------
22