OXY - Earnings call transcript Q4 2024 | Occidental Petroleum Corporation

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Operator

Good afternoon, everyone, and welcome to Occidental's Fourth Quarter 2024 Earnings Conference Call. [Operator Instructions]

Please also note today's event is being recorded. At this time, I'd like to turn the floor over to Jordan Tanner, Vice President of Investor Relations. Please go ahead.

Jordan Tanner

Jamie. you, Thank and Quarter everyone, for in participating Good Earnings thank Conference Fourth XXXX Call. Occidental's afternoon, you

On the Senior Operations. President call and with Management; and Operations, us today are Gas and Resources and Officer; Officer; Jackson, Carbon Mathew, President, U.S. Financial Oil Onshore Chief Ken Vicki Sunil Senior President, Chief Vice Dillon, and and Richard President, Vice Executive Hollub, President International

available cautionary on The This on the section afternoon. to afternoon, we forward-looking website. a will of be the regarding presentation X slides includes will made statement refer Slide our that call Investors statements on this

on will nearest website. non-GAAP corresponding few financial in reference can the measure and to found be Reconciliations our our We GAAP to also the measures a schedules today. release earnings

to turn the over now call Vicki. I'll

Vicki Hollub

afternoon, short-cycle, aimed major Jordan, to the positioned everyone. was Oxy. a execution cycle. the increasing assets, portfolio in advancing sustainable high-return you, while strategic and projects our XXXX year for at of Thank delivering exposure returns We through by maximize value good also

our relentless to Our us safe reliable while to and performance deleveraging delivering value commitment our and enabled targets growing for on flow near-term our operations on cash progress focus priorities shareholders. team's

a and today capital plans full our for achievements by quarter begin us of discuss and year priorities the provide first and XXXX the fourth I'll review our guidance with financial our and covering we'll the advancements years our XXXX. well in I'll will as that success as operational quarter strategic for for position will ahead. ahead. performance, follow Then Sunil

pay $X.X and enabling billion segments of in three flow, and the approximately of to dividend to quarterly more increase $XXX cash free dividends by than million across generated we common us outperformed all XX%. OXY XXXX

our and cash we yesterday, return on significant we also shareholder priorities. flow announced progress As made

of schedule. achieved billion $X.X near-term a ahead repayment X of months and we organic flow, our sales cash target Through combination asset debt of

is sheet invest with and coupled shareholder our our future commitment long-term steadfast balance generate in to our Our improving to drive value.

a teams was the our low Capital billion, improvements driven in and spend operational $X.X of by resulted our capital end guidance. of efficiencies which

successfully key to further cash contracts Our enhance domestic revised crude team midstream also flows. future transportation

combination Now production deliverability well of to highest BOE enhanced at annual achieve million new efficiencies, excellence. with strong The for enabled along XXXX. base operational moving execution X.XX and record U.S. as as Oxy in production us company total to production per day the well oil

positions end and U.S. Hosn our upper Basins, This overall the of across was guidance. continued the production driven operated exceeded U.S. year in record onshore key by leadership Delaware, X% our XXXX, to full and roughly operating the company In DJ, of record. The to well contributed for performance Al our Midland A River lowered the reduced well ability by all by differentiator barrel unconventional and across basins. our lease expenses fortify is business. per Oxy reserves replace teams sustainability to domestic long-term approximately XX% costs the Powder

of It's record production with exceptions in of which reserves. cost pandemic higher of higher replacement track lower XXX% that in and the downturn our increased organic XXXX reserves our replacing new with also the This represents ratio year been all-in reserve Oxy's and XXXX. over reserve year-end the year cost have replacing XXX%, of to an history. we in for is BOE, reserve of the XXXX, we billion X.X In a extending after highest XX-year volume ratio replacement balance proved XXXX an notable

development than and gas spend capital DD&A earnings our This driving for less is our and is cost. increased annual barrel share. increased earnings oil Annually, per per

our drilled operated the which to is team's to portfolio's Even wells continuous accounting continues testament of subsea resources a inventory unconventional divestitures, onshore rich dedication after inventory U.S. we improvement. U.S. and for our addition, well incredibly locations better, breakevens. increased with to In get our and

our At improved time, by average X%. same we breakeven well the

midpoint $X.X original in-basin also exceptionally Our midstream the achieve well our guidance. optimization to business gas offsetting gas meaningful our the over outperformance exceeding and also marketing billion efforts with in in outperformed against our realizations segment lower OxyChem Permian contributing performed guidance in XXXX. pretax And original to income

assets expectations. Looking access of production XXXX, the continues We back Basin and Midland businesses, and across to I exceeding that This our U.S. results inventory an high-margin we the demonstrate to our as them. on well closed high-quality to want value oil a acquisition, highlight strategy asset adding financial CrownRock is our and in as our both increasing advanced unconventional with all of scale to few

focused As moved in teams on West enhancing Squamish, on Texas construction Columbia, British technology. DAC our forward in Stratos,

innovations of deliver their implemented security in the carbon will being as U.S. We STRATOS. believe neutral are as value well help Some by needs. the fuels long-term DAC energy developing world achieve

and sequestration agreements advance on We are up cost we signed CDRs important to the focused last help objectives, DAC the have credits. for foundational those removal carbon technology some both to us COX prove several flexibility To securing down. the EOR are get customers year. and and use CDR

of pace R&D through our culture the which ideas innovation. that of DAC integration teams, Oxy the of resulted an has engineering in and accelerated of has open our We carbon exchange expanded

Texas the the from funding the looking South awarded of are DAC bringing which of these DAC to was to learnings Department development facilities hub, U.S. forward Energy. at We

the out financial which continued operational like in share our generating highlights delivering flow. $X.X our and segments in quarter, All demonstrated business financial and a close quarter, I'd three strength to cash outperformed of free billion to our Now, returns successful year. few performance robust fourth a from in fourth also

the better and in volumes generated business OxyChem domestic and income, $XXX realized benefiting prices Our both in adjusted from markets. international million

day, by gas per during outperforming per a higher BOE sulfur Gas In and of record BOE our global fourth Hosn through segment, the for was X.XX production our midpoint day. marketing setting Oxy's In pricing the production. fourth production. guidance Oil Midstream business continued U.S. and outperformed highest quarter from quarterly for the ever optimization quarter during million Al transportation and XX,XXX

ended and momentum XXXX teams into Our strong with going performance XXXX.

to extension shareholders balance an and is strategic XXXX. this. delivering our XXXX, sheet the committed our achieving remain of We reflect paramount strengthening believe to to to priorities value Looking

priority sustainable first growth. continue to progress last deliver our deleveraging dividend and from is year Our

common $X.X authorized as proceeds Our used will billion divestiture be be debt announced of increase allocated Board savings Directors week, a interest in for will of payments dividend our reduced reduction. the to The the X% our dividend. from this

the project on STRATOS major the risk bringing and this next need progressing expansion to is for while recognize and year. this, commercially our completion to debt and to opportunities is keeping flow. accomplish projects battleground reliably, our schedule modernization tomorrow's To operational priority development year reducing online today We cash year. preserving and second on associated balance financial and this be track safely STRATOS advance

have by We expected Worley. December construction the commissioning teams our trains work thoroughly facilities second quarter on completed on to in construction in Construction partner impressed the X be X X and of and the of and been in is completed with trains X our parallel. processing central and

ramp-up start-up quarter operations capacity with a through of to initial We the continue the year-end. in third expect

later while improved cash OxyChem's improving producing ingredients is higher for that project medicine increase through position XXXX commercial to mid is flow to year. water, market key clean with project margins and strong soaps. also battleground and volumes and used product in drinking Our begin completion expected operations in return expected generating advancing The a

Our maintain to and culture operational third our of excellence. priority is to innovation commitment

with deliver Our and to more enabling date, team's outperform relentless improvement great and us have for drop delivered targets continuing learning less. on focus results to

This relative identified in to is most well recently more acreage, a demonstrated CrownRock close, expect we we decrease where compared production, opportunities represents we've a to numerous which to deliver improvement in This across year, a to costs lower market cost, accelerate year, just well in X% XX% time XX% since last a XXXX. our and months expect few improvement and returns.

to The year. and efficiency innovate through practices throughout which we the share teams best continuing best workshops, drive continued expect and performance improvements are will and best

completion the and scale leverage expanded our integration, opportunities full potential addition, well we extension and our competitive synergies and Midland see meaningful with identified to Through $X driver the have of costs EcoPetrol, remaining the we per key more reverse behind Midland were which capabilities our basin. drilling with across million efficiencies JV a the Basin than Basin improvements in well program across Midland by These savings. position, development In Basin will through our additional lower to design enable scale operations. enhanced

global The market. and the agreement the in further U.S. investment highlights plays the vital Permian in most oil role notably

in unlock also field are unconventional further oil operations, deepening Permian ideas improve well simulation deliverability, leveraging cost to enhanced recovery advance of and limits the we savings teams are to reservoir efforts greater resources, pushing and trials technical conducting recoveries. innovative characterization reservoirs. our Within Our and achieve

to value In and our we data international we largest ever the acquisition, This as advanced key portfolio, a opportunities. future which to provide recently Gulf seismic Algeria, acquisition play will largest uncover country's through role are opportunities onshore In a America the of utilizing for for data new set we rich also completed and was AI Oxy. applications. seismic development look enhance

ambitious an have ongoing initiatives to maximize also and improve value We of margins. set artificial intelligence

are management, AI supply improve and asset to reservoir operations chain America utilizing of characterization. Gulf Our integrity,

extraction of our progressing center initiatives the with accelerate also we excellence AI of technology. TerraLithium's commerciality portfolio, a from pilot JV our Additionally, to LCV we value. of explore are DLD Working we align AI forefront plant intercompany created demonstration business the an are subsidiary Within all and patented at to partner, our lithium technology. to direct

capital in billion advance adjusting Chemicals XXXX to we our Turning in XXXX maximize oil business. plan. portfolio. cash plan flow by CrownRock to primarily a future & investments assets to between full investing program for mid-cycle high-return now year The to Energy billion measured to year, our is This making $X resilience. $X.X of cash when while We projects to aim and capital provide roughly our flow short-cycle, and in gas invest our equivalent

day. year though of modest full represents XXXX This approximately average when per year stable production full a BOE X.XX oil for from relatively production expect to growth. CrownRock, accounting with We million

decrease we in uplift the substantially reflect million first increase reverting provide guidance. detail capital Battleground. expected to XXXX year, is expected from years peak are point levels as more the representing nears XXXX OxyChem the expected completion to spend following $XXX this a Investments in Similar this quarter past, to low with construction OxyChem's for Sunil year the with in with anticipate will significant for project year second at to maintenance the year. the in production our Battleground half. a XXXX to on to

a increase is in battleground LCD set The in offset XXXX, largely million. at approximately which our in we decrease $XXX by spend spend

XXXX our for DAC towards focus our Gulf best will ] long-term We directed remainder with be capital position sequestration we majority projects continued to projects. Texas this The plan and of that Oxy South believe of hub the built the STRATOS capital build-out [ Coast for success. on

our As oil high XX% to years, with than our we and capital to commodity of onshore to portfolio. to a retain respond This conditions. gas and degree allows adapt fluctuations efficiently allocated in U.S. us price past flexibility market more of

focus development enhanced short-cycle, our our to near-term supporting high-return commitment addition, flow and on shareholder our returns. reduction, cash unconventional to In help debt priorities will facilitate

Now I'll turn the call over to Sunil.

Sunil Mathew

begin by I an quarter in The will profit remediation a share. to reported ruling. on environmental long-term $X.XX a results. recent share our diluted increase you, today an adjusted based Thank diluted Federal due was We primarily per announced loss difference of fourth Court of unfavorable and liability reviewing per $X.XX Vicki.

from ruling the Annual several multiple to and outlays recovery over responsible not next expected to are all are appealed have decades. years expected materially and will cash remediation the potentially extend seek cost over potential increase We parties. and

close cash three all financial prices. to volumes fourth despite the and generated guidance. year exceeding $X.X flow Our realized a benefiting higher We business with oil global operational of lower free approximately from strong outperformance quarter billion segments production delivered

achieved record operability largely As and well quarterly Midland high by Delaware improved the basins. portfolio driven Vicki performance mentioned, production our and U.S. across

impacts. our New offshore to lower volumes events assets and operated Together, weather domestic production assets due also than more well international and performance Rockies our this respective offset from in PSC-related exceeded expectations.

from coming enabled and and on over cash our was positive capital a prices production after We low water lower of billion primarily $X.X in guidance. $XXX unrestricted to oil less XXXX achieved of to at performance interest our This with of with had us of end capital timing due year-end. with in operational the the Notably, at the impacts capital the fewer exit payments, quarter change program together million debt. repaying quarter strong disciplined barrels working

the to $X.X plan front billion Now and capital to guidance. for billion turning half to weighted between $X.X is be business our year. the and first Total investment with the year expected of

flow non-oil a provide investments in balancing decline diversification Our high-return and projects capital mix with investments, assets and no strategic cash plan represents gas of to short-cycle, stability.

significant weighting U.S. velocity that Our flow a debt applied towards higher assets of cycle short enable capital onshore be cash will reduction. proportion to can

retain also for production production year to expect will million us a remain changing XXXX. significant CrownRock, growth total nearly to a with representing In approximately conditions. allow market in though It X.XX to full full increase BOE volumes. oil per flexibility to flat, adjusting day, respond relatively volumes we XXXX, of After mid-single-digit to are expected year average X% from

also recently impacted our first to and reduced production wells. decrease quarter activity prior Permian quarter As weather interest fourth production. lower expected was the quarter levels drilled from in due winter is case Permian XXXX, Severe working January a in the in to

well and and plant turnarounds extension at as platform volumes Mountain will life maintenance Al at addition, by Hosn Horn be as In impacted Dolphin.

lower half our of of second year the production legacy expected of than from up is first full Rock in is to in increase is by growth year, Crown due modest Much expect the more half. and to positions. XXXX we XX% across the during to a coming ramp expected volumes Permian, this While grow which the

As expected XXX,XXX than CrownRock day, outperform Vicki X% assets per and mentioned, our average more continue to representing to growth. BOE over

delivering our for improve Rockies the the driven from is XXXX, is to guidance assets. lower Basin. Rockies value gas adjust ethane and Our processing rejection decision revenues volumes This to to for expected our DJ in margins, increase greater by

interest full XXXX production year for to essentially flat lower When Rockies accounting items Rockies operated from outside nonoperated of reduced will expected year. production and divestiture region. announced our the activity, Additionally, these our from be last is

increase growth during relative first our to is maintenance company portfolio year our XXXX. ] the Permian production AVR to expected out coupled oil increase full with This, to of total in XX% the our offshore to is [ quarter, Despite XXXX. cut U.S. in expected

$XX a chemicals generating income strong pretax ended OxyChem by XXXX quarter in in exceeding with million. $XXX the business, and to adjusted Looking million the fourth operational guidance performance,

OxyChem's expected better-than-expected was and fourth events. prices This disruptions than kept and as most be prior demand driven the else primarily quarter, strong three lower quarter. international first the of due pricing by markets the higher global quarter through is domestic to supply in to both short-term income

temporarily by affected restricted impacted storm and winter to January, access the Our in operations production which market. were

outage X seeing plant first an that unplanned approximately are weeks. quarter. raw an in And at had facility also costs we We our higher-than-expected material increase Ingleside lasted following the ethylene outages during

second suppliers temporary early cost the once online. the backed These pressures ease ethylene are in should quarter

is of For we in events the capacity of for to quarter, are market following earnings prices the XXXX income. additions. midpoint half first decrease a This forecasted and natural late full higher OxyChem's $X year, guiding expect billion oversupplied the and slight in slightly driven by of pretax domestic the of gas first year, part a the for a expectations

half, second the and market should improve pricing. in occur help to expected the are which rebalance Rationalizations to

adjusted Permian teams year original with of income full $XXX approximately Higher margins. marketing to outperforming to by segment segment this Midstream to year demonstrated a Hosn All once the managing sulfur gas prices by exceptional our to end maximize $XXX had midpoint market due year the pretax of with bulk also surpassing throughout our volatility with million. Al for strong million. income guidance The again performance the in, in pretax optimization midstream was our the adjusted guidance expertly these contributed earnings. Our

gas transportation the online. increased We lower with XXXX midstream expect as in capacity optimization takeaway opportunities slightly earnings narrow for now

improved expect by on realized see optimize Permian. to market in we businesses dislocations opportunities to upstream crude in of benefit may offset prices will Reduced spreads, we out partially the to Permian. capitalize marketing gas fewer our be opportunities pricing and marketing from While our improvements the

to expect we revision rates year. from transportation previously, at mentioned of we contracts lower two As benefit this the crude

coming with end into One first realized quarter. the of quarter, the of second the at be these the end the of third effect at will

timing, $XXX approximately an Given we see year $XXX savings XXXX. benefit to this annual in in approximate expect and million million expect the

LCV business. our Turning to

and first about we with extremely phase the in guidance. a assuming are from Stratos We this to and year. progress to expected period our excited STRATOS contribution online, ramp-up minimal of start-up are timing associated Due date the our operations midstream bringing

the typical negative capital driven is which property a expect plan We for tax working change time quarter, first of and year, during interest compensation payments, this by payments.

will Federal two Disaster Relief further which Additionally, upcoming quarters there are the Hurricane following and working the of in impact as capital the Beryl, payments second of tax first part year. Program XXXX

position shareholder our today sheet, to close reiterating will us strengthening our balance commitment greater by to I would which like generate returns. to

As are successfully to pleased by our target near-term announce we billion at repaying $X.X in start, that shared the achieved reduction Vicki we XXXX. debt

in into $X.X in billion We quarter. are the first this continuing and announced XXXX momentum divestitures

from cash Proceeds after flow be debt stronger common position sales interest in applied maturities we the to further deliver be committed an reducing to and expanded of amount beyond XXXX will By future. maturities. cash in the our Oxy these dividends our today payments XXXX available to reduce program a place to return will capital and of will excess

the I Vicki. turn will back to now over call

Vicki Hollub

Thank you, Sunil.

XXXX start, our on I and advanced strengthened for near-term portfolio deleveraging pivotal growth at We our a commitments shared As major our delivered was projects. the Oxy. year

focus and at most forward financial teams our on While results, the on importantly, and propelled and focus innovation a and we what leadership delivered operational passion, industry most continued underpinned me business all. our is exceptional learning with excites way the a safety

and long-term exciting safe success. helps sustainable in Oxy's employees history. for and us. enable values performance across midstream people be will of core our an year and The in OxyChem. This gas, safety ever embedded operations [indiscernible] In and achieved That's to XXXX, oil our our our commitment is

better have been the three to shared of Our combination on our never and learnings business uniquely segments, capabilities positions us operational portfolio technical and of and capitalize synergies. assets

and be and Bringing value the a STRATOS the this. brings differentiated to to strategy compelling Oxy will that online table. demonstrating testament proposition

With with Ken us today questions. Jordan and that, we'll Jackson for Q&A. for the mentioned, now And as here Richard open Dillon are the call

Operator

first Arun from [Operator Instructions] Jayaram JPMorgan. from Our question today comes

Arun Jayaram

for And and I wanted the how you Mexico year-over-year be of to if Gulf the a have in about think that some could bit contributing you in light Gulf versus projects of trajectory could maintenance perhaps us some are that 'XX. XQ? little quarterly outlook a help of on shed to growth the maybe maybe some see in 'XX XXXX the

Vicki Hollub

of you Gulf share Ken, want our to America information?

Kenneth Dillon

Arun. Thanks, America has Gulf ahead. year of Yes. of busy Gulf Mexico, a

As weather you good extension life know, season. painting we fabric really want and carry hurricane and to out away from and activities maintenance,

So going this two on barrels quarter, we around When platforms back come day. a have will turnaround. XX,XXX that they add through that,

Our wells. involve barrels year drilling to this a This wedge year. activities for day between add six XX,XXX the should XX,XXX

including turnaround activities, another engineering stimulation production BOEs X,XXX OBO carry with out day, we and per along in Our add to QX. will should X,XXX platform

these X.X Also, commencing is gets our projects, add So may work will tier, gives are a also feel F&D year. quantities cost And racking material XXX,XXX America in addition to record of the levels. to for range top a activities, for to then hope of low barrels. of this a Gulf us real our which these equipment a things I including XXX,XXX we uptime Opportunistic year. move around some barrels some day to the you decline up, but bit.

is gas on that X.X, there, our and artificial Mountain year include A projects, focused the lift Horn ESPs early includes capital and start lot lift. of the which of waterfloods this

we've busy we've got great really year a So team great yes, but ahead, assets got a there. and

Arun Jayaram

detail. super Great. for That's helpful. the Thanks

Can to this you've in I terms give fully guide? -- the extension agreement in EcoPetrol just us Midland that baked of basic XXXX is just the just You early Basin. you in February, and mentioned JV of that the some think, the announced, an confirm your

Vicki Hollub

that continuing is about XX is working extension similar huge, to project And into And EcoPetrol done. are an I'm with terms -- and work The get to but it looking not we forward will a be drill had so. next Yes. we'll before. to wells this year, that to or what

Operator

Jang our next Barclays. from question from And comes Betty

Unknown Analyst

to In presentation Rockies We few from basis start also over development CapEx how years. the didn't evolving is I is based ask and notice level and Great. on flattish. but year-on-year want the with that the about both see next much net the -- program. XXXX, activity a lower, you gross that

there there forward? and are capital XXXX in that just just non-productive does So going should beyond? we impact about thinking And be program any how that

Richard Jackson

Yes. Great. that. I'll This question. few is through walk Thank you a of pieces the Richard. for

As From quarter working thinking down step walking about I'd you you're noted, efficiency. to Rockies if adjustments, embedded the divestitures. and through the first of place through got is some first activity production in of with announced standpoint, some it part ethane then our as rejection say especially the the start. we the is an

We've drilling -- we drilling efficiency, all put assets, the of our the but costs, for as the only improved in Rockies highlights, across not true that's well. and

offset to really be Bronco. at moving a larger, million the about that activities. area by for in for Basin. an the infrastructure breakeven gives more $XX that the in important next XXX called X than DJ is development us able over we've locations down that we'll close looking less to and This And $XXX And about is they're at us drilling past is their prosecute just infrastructure. contiguous to that years. efficiency So That us, talked development more completion across

some story, investment that's while strong plays spend for And We as really in out a Rockies trading us results. for bit Permian think of really is note, standpoint, so a this we're Powder From activity the the River Basin other infrastructure the that in in well thing, the the year. only I'll had bit an efficiency well. value-added

competitive into year year, capital. resume us be program to to we activity couple the of as last in of set second We're the the and we opportunity believe wells. next first contemplate those Powder in Basin be the what River then over will productivity of we'll those I this monitor very terms for we quarters those think quarter a in in half highlighted the continuing of

Unknown Analyst

on follow-up My helpful. That's debt reduction. is the

in about latest in You with guys really to asset that out on Do reduction and billion XQ target there's have net $XX there. sale headways that debt made noncore strong you or trajectory XXXX debt obviously, to get the is still 'XX feel a -- late but commodity sense early that your level reaching good that number. to price on wanted by XXXX, factor, that just

Vicki Hollub

We it's feel supplement I do that more accomplish But flow that. the still be comfortable first we would with still cash with say of probably going we where help comfortable are and to that. feel part like XXXX. to to operations our have from opportunities

Operator

our Securities. Neal from question And Dingmann next comes from Truist

Neal Dingmann

First, just my is guide, around maybe first Vicki, XXXX question, your specifically.

what you're think production just and I'm day two, of what X.X there? CapEx. X.X million I million assuming all BOE talking wondering in cost type the service you about per those are around around

how you And see DJ wondering more. and because operational both have if to in efficiencies much Permian, continue your that certainly expected you just I'm

Vicki Hollub

to capital. this the XX% he since gets pass of We'll Richard

Richard Jackson

bit share maybe little answer Ken talk as about costs. I'll but with we good, It's service a the

I've with XX% overall, and completion was start completion what costs. the of We the scope was year very last call a our drilling about and delivered drilling performance. noted and our about So against XXXX from some me teams. let strong improvement in half But That performance. year we improvements. Rockies

together was improve one as especially that those. Basin with some designs, So continuing that's on That of Midland in we CrownRock really team. operational the benefit, well came we as the to efficiencies, saw

was across half factors other deflationary that The our of services. the market sort of or roughly

that. in X% around costs uncertainty that costs drilling terms of improvement. performance completion looking the we're focused of can X%. and XXXX, to For deliver the a of But Ken some at we're help address service really Obviously, on component continuing bit

it, for efficiency leading more nonproductive production some give NPT but terms design both our cost. lower get those drilling can more bit pad activities, I detail across a better if to and across lower improved outcomes just so into or is And in really we completion time activities, of

kind the D&C And into so our things, on roll cost. those X% year two again, of for

Neal Dingmann

have on your now And Vicki, around would your you what's quick Or -- boosting M&A domestic second specifically. consider so, maybe thoughts if And M&A? a would the most if just love of Great then transacted. hear that you assets just to details. one think higher-quality that? international thoughts now

Vicki Hollub

I as that and that incredible chose Algeria well. think exploration the still international expansion we have intentionally opportunities we have like we and today, operations not reservoirs, only we assets. for today, these assets we of has have but the

for we definitely our -- future Algeria So growth. in is

the oil. how developed Also we But be a have to very in of Oman, Abu out bit will good gas opportunities there to for development also just see Oman what could a Dhabi of have turn out. similar reservoirs in We're Oman. with little some to are continued we in exploration thing that doing us. in opportunities really we've that turn Those

so right and it fit far. were the take blocks well So -- in those was to we going X X there Oman, that's and

over projects with and in to in only probably America, complexities the some that having better also, of with described that So but Gulf and that, could to growth not Gulf help things able where that AI the Ken we're to water the about the just success going planned. field next my turn in into but unlock the X also exploration to only development to X I international years, going in of flooding we with do the the not some also will has will projects be not that our believe of script, we start is better

in like growing already we internationally. we're have, we're positions to going where work on the that just So we and

Operator

Cheng from question Scotiabank. Our Paul from comes next

Paul Cheng

what to there? the yours in is that that in right is the will I a That's it first correct, one-off, remarks new cut over prepared think oil cut if higher XXXX be it's oil get I -- you don't did Vicki, XXXX. that Permian maybe going question. expect drive And up the

Richard Jackson

Paul, Richard. this that one. I'll take is

Permian, couple the then talk when bit about of think about a things numbers. in a of the into get Just oil and to cut we I'll

with of it very well correlates our First all, unconventional growth.

year-on-year it's cut that track whether oil So or quarter-on-quarter, that. can you will see

The the over CrownRock really last coming in. happened year is other thing that's

oil a Delaware. Midland Basin bit different has so And cut obviously than the

participates. mix And so that

to our we seen where like our about talk program, benches, a position in I'd about, which, an been as more factor that's talked delivers other and increase mix overall our bit is lower with the benches as Delaware prevalent our just The cost. of we've Permian with even a value in secondary better secondary

watch the we those it. -- variables sort are generally drive of us you as year-on-year, quarter-on-quarter, So that as

full Now we as we the we fourth total X% the first we yes, year seeing to at are cut are as improving question, year better oil quarter, your in even quarter look 'XX, address versus go almost 'XX.

unconventional our in Permian that's our So our production U.S. -- tracking again, that's development. growth. the in business in really

Sunil Mathew

And just prepared America, growth to the clarify, growth along the in remarks details. Permian, to went -- which through Sorry, mentioned had with outlined, in which I the Ken Gulf what just just of from I was my

So cut we to in total oil XX% is the to XXXX. going said increase company

wanted clarify on that Just to one.

Paul Cheng

XXXX versus branches better. what your program the And you're is is in the Vicki, secondary percent of the secondary benches saying XXXX. that Permian the on

give you what cut is in us can So oil secondary the those benches.

Richard Jackson

perfect. Yes,

benches percentage derisked of one around of think we are For Delaware, primary a total the versus this total year, XX% was Permian Crown Rock actually very in because year, it talk up provide total and year-on-year, last secondary benches. about program this and In as our to of are of and we're about, terms unconventional development, our thing -- that's lot a about year up primary XX%. development benches

we talked we flowing or is secondary say calls facilities. one -- about details prior in provided into better, the those are existing benches of when And what have

advantage. for from year, cost total out coming more the you're barrel a per so And much

facilities. of double return development can triple at benefit from you're looking or even You a that program with sort when your coming

about see wells into in out play with for we'll talked this the XXX that we're investment, we on as Rockies and investments these the new that areas, So I total year same the life adding that make infrastructure of the these returns program.

Operator

Our from question next Wells from Roger comes Fargo. Read

Roger Read

Maybe the efficiencies question XX. on just to on come drilling quickly back Slide and completion to

get declines but $X remaining out thinking. a longer expect $X this -- save two a strung out million You well million the per over year, just the spelled and the lines clarity I'm then of period little X%, to program. I different to assuming What across there time, maybe on of is well cost wanted is

Richard Jackson

that Midland Basin exciting really benefit Basin $X out Oxy because legacy of that joint specific our was that with or the CrownRock our was now Midland coming million activity. Rock And Yes. us team. team was to Roger, to a

really delivered fourth that $X in million so quarter. the was And

was look So fourth our drilling our than costs, it we when better and completion quarter at $X total year million 'XX.

expect so that well few things a of out sequencing quite that to operational into and came continue that We design were from that exercise. strong XXXX identified into now really

team, cash helping also but So team the Oxy well. benefits and and flow we from our talk our as it's assets Rock Midland about overall delivery

Roger Read

Okay. Got you.

the things in just of not seen separate we've see, sort So going into goal forward. built -- we'll but a

Sunil Mathew

No, Just in. built

Roger Read

little bit ramp I as new it Strategy say, that given make go at on, challenges a understand it's you you what key looking is with or will to if main to you commercial to feel then as call whatever the are as real the this pace you want milestones turn but we hurdles are commissioning but in, here not technology, brand build just watching process? change brand-new up, don't at-scale or know be year. it start-up, a And What thing profitability more this the very a -- this commission comfortable you any -- them system. should I through

Kenneth Dillon

are through step. through and then Ken, just the where next to we talk go

electrical on are and STRATOS equipment spools overall checks excited we're think all I So being Phase really hydrotested, piping ongoing. complete X Glass are XX% is construction. and XX% instrumentation at here. complete

close. very incredibly on as And getting So project. have well said, done Worley the Vicki

once we've area for In terms the so phase. into the moving the process consigner, the mechanical we're completion and got start-up then -- of

And chemicals the OxyChem these and lime, really process and follows: the had the running, have decades, fan day are subsystems and the running pumping start at into the handling start-up, and we'll teams start the was we'll making as of for good water Then fans. We've then the preparing mixing been site. who systems. system terms which then Bay essentially, injecting and around In potassium a start water we'll already a start hydroxide pellets. One sequences

start making drive calciner Start then start we and then but mechanical compression the moving, we through small volumes, to a and big bays we injections. other it's a is Once system moving consignor. COX, then filter the start side pellets, and up very them got of we capturing start pellets, one the data Once those day. really the and big start then really Bay handling which the them start we we we've

those really handling are materials. these So very the sequences OxyChem in are experienced

of with we So associated have these. milestones each

Richard Jackson

I'll as just outcome. business maybe think add the Roger, And we of of couple about kind a

conservative as opportunities expect been opportunities operating As and learn And a for looking our to this commissioning our year We're really like as and lot looking do expense. ramp-up this that's full for to all think reduce to the Sunil capacity. about projects, we to increase capacity. we timing start-up, we've mentioned, through of start-up of we're we

And want both next the so can really those to X to is to we of much several next goal learn really the try years. over outcomes we the maximizing as over thoughtful months as because be

tie wanted just the when year that to for you rest -- us. So the make think of about

Roger Read

Thanks. will It to watch. be exciting that. appreciate I

Operator

Neil Our next question Goldman comes from from Sachs. Mehta

Neil Mehta

Thanks for the information. great all

Just midstream questions. couple a of

closer the Just looking breakeven. then the bit guide here And perspective 'XX. year that guess on as builds at love drivers business it through weaker. looks to a of QX your the I little key for

that? So on follow-up on just perspective I the And too. into then variables a this are that your have going

Sunil Mathew

Neil. Yes,

at moving 'XX, So our you multiple XXXX there if compared are look guidance to pieces. for

one there get this are transportation a the I on that lower Like is prepared in are Between to QX transportation going and we're QX. the mentioned crude other my is expiring two in side, one contracts So remarks, marketing firstly, year. those, cost.

around benefit going a year, to million. get So this of $XXX we're

offset is $XXX But FERC Next going be around year, partially it's to escalation of by some of X%. annual the that million.

So that's additional with And Gulf we're marketing differentials marketing on takeaway coming side, the gas from Permian, Permian the Coast. between on online crude the now and assuming lower side. capacity

price, sold we Then million are And units XX.X the we which be compared West, higher Al year. then to should Hosn on last seeing sulfur again improvement on an side, last year.

impact So ramp-up lower talked to in the lower And income. our Richard We the which year. last that the income thing is STRATOS, just distribution on start-up positioned market a also is the to But year. midstream what does negative compared would last to income well I team impact small our and will itself. still have on about present the compared say going LCV, and to last when capture have value overall is very

by original again, around year, the last And demonstrated guidance beating $XXX million. by they're

Neil Mehta

good really Sunil. numbers, Yes,

lot As about minuses a you are equation about component targets? as And the into and about should a moving is monetization, the well? are pluses that how pieces. that of we think we the thinking West the as how around there follow-up recognizing just tax goes But of framework deleveraging think that

Vicki Hollub

look proposition. continually we down at comes the opportunities. us, for and it And value to evaluate opportunities all the Well,

tax as And that that right we're proposition flow that a in the of so value be divesting things of part you're significant provide would selling does. when looking impact West cash at

So that would have part to we of -- what be be consider. a

Operator

Research. Our Leggate comes Doug from next question from Wolfe

Unknown Analyst

This Abbott Leggate. is John Doug on for

Our visibility you first talk XXXX? spoke you beyond Gulf America. production? but mean I how you question about is of see And the can on about sustainable XXXX,

Kenneth Dillon

Sure. Ken here.

a have goal to of long intend we think term. staying flat I

the we programs. at look at have development drilling Yes, we're working on If the the that you primary projects moment.

We also exploration. have

underneath facilities, carried F&D, very in involved the the we're Wilcox term. And is next targets, decline, one year, Miocene and our waterfloods this and wells, low wave EOR two exploration of one Gulf is then of two X.X which low So America basically which long the target. very very projects,

accretive pattern of maintenance really each again, developments. projects. they're basically cost, lower And projects pressure these are floods. water not is to So They long-term

it's not drilling on facilities. these huge overheads So existing

We have unconventional opportunities.

opportunities. fracking have We

millions So working projects, and through of way X.X see we these the is America them. mapped of of and there just all opportunity barrels and our have out the hundreds scale of of Gulf potentially GoM we're

covers question. So hopefully, your that

Vicki Hollub

Gulf say out of really share the part to growth X an going I years, X us be have story. It's It's in America. about Ken's years. to I of for that enthusiasm our be the to going important to

Neil Mehta

Do Appreciate run a stands. EOR your break was was is you update around rate financials. your out that Could years it. per couple next on your EOR you production where it And XXX,XXX of question then provide longer we an which in your barrels business. ago? had day, production the no And still

Richard Jackson

Yes. some X excited Thanks remain that years. future. the From question for it's we as We've slight too, really, similar. the about enhanced last, the We over for production oil level, our recovery. decline a look into business, had

delivered is bit I been can think cost. years. the it's see But that really efficiency has a you last great investment, from what our lower capital on several business

than they really to our with business reductions, we capital they lot can improving of our So cash they deliver expense, operating help the when and those have or talk way. cash leverage more led good business They're OpEx our are to to a about improvements. margin so margin

this In is and our part the capture. future, strategy of with COX carbon

about we very talked to what as similar in lower low so decline. the very cost Ken very America, the And F&D of have barrels low, ability low cost COX, that at get become excited can what Gulf business we're to about

attributes to when cash complement so to bring we flow production on, provide our nice And going the it's that rest business. of

Operator

Mariani ROTH. And Leo from question comes from our next

Leo Mariani

here. here a significant wanted we've ventures change general in low the question in carbon ask business just a I Obviously, around U.S. administration the to had the

that to try differently to about prosecute years the get thinking things, sense to proceed as next X business are a all wanted kind if sir. you of Just you over

Vicki Hollub

needed much in independence. reality States. [ around is there's an is revolution the our be really. we uncertainty United The was mean to Shell here this for that Not amazing we IRA situation. the more I that in is that of extended infrastructure the aware bill. COX thing the way are U.S. the the the certainly, for ] And But energy happened going view

to add comes production reserves will enhanced significant round that's from oil to next XX billion in use COX of barrels the going of technology billion barrels, recovery. believe be the We that of XX

not organic need the to the development enough important to that billion things that of the to XX is flood COX be country technology There's the all in flood XXQ for to the So barrels. billion to going to XX get we're COX. get to able

important. years. And XX that to independence would our more XX by barrels critically energy extend It's than billion billion XX

States. the And And out work business needs to Trump that this. him. is technology had case United for I've knows so of several a atmosphere President with for conversations taking the COX the

been least People many developed that transformational this beginning just technology some it. help sort the advance there been of didn't have at understand at really of initial him have subsidies around as that hasn't technologies assistance some need for to the

capability the innovation facilities. know have that of We've they're that and developing to direct the with capture helpful. team, very, so get the down we quickly very we is the Oxy the these carbon cost impressed combination so so engineering air on And been

to we where we to get need to have be, But XXQ. really to need

new members air work much And and getting out with story the of must it these Congress the for reservoirs. very we've of get is with COX senators We're met the needed, and capture next so that technology that members. we've been is many cabinet and talking direct to the

for we optimistic understand we're to case once business everyone that get So this. the around will everybody,

we this down if even faster believe we that expect not But capability business case completely would. do we than have originally what is to get thought from the government, the I the we

with where And we're headed so that's it.

strategy our King what changed of terms and in hasn't with the It facility. doing Ranch DAC we're STRATOS

Operator

would this the And now conclude like back Vicki of for question-and-answer remarks. the interest time, conference will call today's turn to closing any gentlemen, session. and to in I over ladies

Vicki Hollub

your like you just rest you thank of day. to your all for you. great I'd for joining our call, have questions and say Thank hope and a

Operator

now The do for attending We has concluded. presentation. today's you thank conference

lines. your disconnect now may You

Occidental Petroleum (OXY) 19 Feb 252024 Q4 Earnings call transcript