Occidental Petroleum Corporation€¦ · realized. Unless legally required, Occidental does not undertake any obli gation to update any forwar d looking statements, as a result of

June 2017 Investor PresentationOccidental Petroleum CorporationAs of June 19, 2017

Richard A. JacksonVice President - Investor Relations

713-215-7235 | [email protected]

Anthony J. CottoneSenior Director - Investor Relations

212-603-8188 | [email protected]

3

Forward-Looking StatementsPortions of this presentation contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that could cause results to differ include, but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental's products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental's operations, not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Words such as “estimate,” “project,” “predict,” “will,” “would,” “should,” “could,” “may,” “might,” “anticipate,” “plan,” “intend,” “believe,” “expect,” “aim,” “goal,” “target,” “objective,” “likely” or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their SEC filings, to disclose only proved, probable and possible reserves that meet the SEC’s definitions for such terms. We use certain terms in this presentation, such as “resource potential” and “total identified barrels” that the SEC’s guidelines strictly prohibit us from using in our SEC filings. These terms represent our internal estimates of volumes of oil and gas that are not proved reserves but are potentially recoverable through exploratory drilling or additional drilling or recovery techniques and are not intended to correspond to probable or possible reserves as defined by SEC regulations. By their nature these estimates are more speculative than proved, probable or possible reserves and subject to greater risk they will not be realized. Unless legally required, Occidental does not undertake any obligation to update any forward looking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental’s results of operations and financial position appear in Part I, Item 1A “Risk Factors” of the 2016 Form 10-K.

Use of non-GAAP Financial InformationThis presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures on the “Investors” section of our website at www.oxy.com/investors.

Cautionary Statements

4

Table of Contents

• Transactions Announced June 19, 2017

• Company Overview and Value Proposition

• Driving Value in the Permian

• Journey to Digital Transformation

• Appendix

5

Opportunistic Transactions Create Long-term Value

Consistent with our pathway to breakeven at $50 WTI*, Oxy has executed multiple transactions in the Permian to accelerate our plan.

> Oxy has agreed to a number of purchase and sale transactions in Permian Resources to generate combined proceeds of $0.6 Bn.

> Oxy has also agreed to acquire additional working interests and assume operatorship in a low-decline, low capital intensity CO2 EOR unit in the Permian Basin for $0.6 Bn.

The combination of these transactions will accelerate the cash flows of the company and enhance future returns by replacing low priority development acreage with low-decline, low capital intensity EOR production with significant opportunities for value improvement.

*Breakeven at $50 WTI is after dividend and 5%-8% production growth.

6

Overview of Non-Strategic Permian Resources Net Transactions

•Transactions Terms> Combined net proceeds of ~$0.6 Bn

•Properties Description> Divested of non-strategic acreage in Andrews, Martin

and Pecos Counties and added incremental acreage to enhance a future core development area in Glasscock County

> Reduced Permian Resources position by ~13,000 net acres and production by ~4,700 Boed (64% oil)

•Transaction Rationale> Acreage was not in focus development areas and had

no significant near-term development plans.> Monetizations accelerate cash flows from acreage from

the tail of our inventory and are NPV positive for Oxy.> Recent organic location additions exceed both the count

and the relative value of locations sold in transactions. Inventory to be updated on 2Q17 earnings call.

> Accelerates our pathway to breakeven at $50 WTI*

Focus Development Area:Greater Barilla Draw – 5,000+ Locations

Focus Development Area:Greater Sand Dunes – 2,000+ Locations

Permian Resources Acreage Permian EOR Acreage

NM Delaware Basin

TX Delaware Basin Central BasinPlatform

New Mexico NW ShelfMidland Basin

Map not updated for transactions.*Breakeven at $50 WTI is after dividend and 5%-8% production growth.

7

NM Delaware Basin

TX Delaware Basin Central BasinPlatform

New Mexico NW Shelf

Overview of Enhanced Oil Recovery Acquisition in the Permian

•Transactions Terms> Purchase price of $0.6 Bn

•Properties Description> Seminole-San Andres Unit (34.2% interest) and

Seminole Gas Processing Plant (46.6% interest)> West Bravo Dome CO2 field in New Mexico (100%

interest) and 9.9% interest in Occidental operated Bravo Dome unit.

> Increases Permian EOR production by ~8,200 Boed (70% oil)

•Transaction Rationale> Increased ownership and gained operatorship in world

class EOR property> Synergistic opportunities for capital efficiency, cost

reductions, optimized CO2 development, and accelerated residual oil zone development. These benefits can be realized on both the acquired interests and Oxy’s existing ownership.

> Accelerates our pathway to breakeven at $50 WTI*

Seminole-San Andres Unit•WI from 53% to 87%•Seminole Gas Process Plant WI from 46% to 93%

CO2 Source Fields and Pipelines•Bravo Dome Unit WI from 77% to 87% •West Bravo Dome WI from 0% to 100%


Midland Basin

*Breakeven at $50 WTI is after dividend and 5%-8% production growth.Map not updated for transactions.

8

Upside Potential from Operatorship of Seminole-San Andres

•Value Improvement Through Scale and Operational Synergies

> Seminole-San Andres unit becomes Oxy’s largest operated CO2 flood in the Permian.

> Enhances Seminole-San Andres operations by applying Oxy’s worldwide EOR scale and expertise

> Substantial room for operating cost improvement

•Value of Synergies> Value of synergies will be magnified by impact on

both the acquired interest and Oxy’s existing ownership interest.

> Due to value of the synergies, this opportunistic acquisition delivers high returns and significant free cash flow to accelerate our pathway to cash flow breakeven at $50 WTI*.

$5

$10

$15

$20

$25

$30

Oxy EOR Permian2016 Average

Oxy Denver Unit2016 Average

Operating Costs ($/Boe)

Oxy EOR unit of analogous scale and

development type

Seminole-San Andres unit

becomes largest in Oxy’s CO2 portfolio

$0

$100

$200

$300

$400

$1/Boe $2/Boe $3/Boe $4/Boe $5/Boe

Value of Opex Synergies ($MM PV10)Acquired Interest Existing Interest

High Opex Range

Low Opex Range

*Breakeven at $50 WTI is after dividend and 5%-8% production growth.

Oxy targeting opex improvement of

greater than $5/boe

9

Transactions Effectively a Swap with Net Benefits to Oxy

Transactions on a net basis*:

> Lowers our sustaining capital and overall production decline rate> Additional benefits anticipated through capital efficiency and

other operating synergies.

Remaining 2017 2019Production (Boed) 3,500 7,000Operating Cash Flow ($ MM) 35 80Free Cash Flow ($ MM) 25 55

Net benefits accelerate cash flow breakeven at $50 WTI***Assumes $50/Bbl WTI and $3.30/MCF gas and includes attainment of $5/boe operating cost synergies at Seminole-San Andres. **Breakeven at $50 WTI is after dividend and 5%-8% production growth.

10

Table of Contents





• Appendix

11

Oxy’s Unique Value Proposition

Upside in rising oil price environment and downside protection during falling oil price environment

Focus on value based growth

Top quartile returns

Consistent Dividend Growth• Growing dividend with strong yield

• Value protection in down cycle

• Promotes capital allocation discipline

Moderate Value-Based Growth

• 5 – 8% average production growth through oil & gas development

• Above cost-of-capital returns (ROE and ROCE)

• Return Targets*: Domestic – 15+% International – 20+%

Strong Balance Sheet

• Maintain ample cash balance and additional sources of liquidity

• Low debt-to-capital ratio

• Income-producing assets

*Return targets based on moderate commodity prices.

12

$0.50 $0.52 $0.55 $0.65 $0.80 $0.94 $1.21 $1.31 $1.47 $1.84 $2.16 $2.56 $2.88 $2.97 $3.02 $3.04$0.50 $1.02 $1.57 $2.22 $3.02

$3.96$5.16

$6.48$7.95

$9.79

$11.95

$14.51

$17.39

$20.36

$23.38

$26.42

$0.00

$4.00

$8.00

$12.00

$16.00

$20.00

$24.00

$28.00

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1Q17Ann.

Annual Dividends PaidCumulative Dividends Paid

12Note: Dividends paid as per the Record Date

Delivering Consistent Annual Dividend Growth

($/share)2002 – 2016: Oxy dividend CAGR 13.7% vs S&P CAGR 7%

13Source: Factset, 05/26/17

0.0%0.4%

0.7% 0.7%

1.5%

2.0% 2.1% 2.1% 2.2% 2.3%

3.8%4.1%

5.0%5.2%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

PXD APC DVN EOG MRO SP500 APA HES 10 YearTreasury

COP XOM CVX OXY TOT

Integrated O&GIndependent E&P

2002 – 2016 Average Oxy Dividend Yield

Dividend yield should revert close to historical levels as we execute plan to a lower cash flow breakeven

Current Dividend Yield vs. Competitors

14

1. Base/Maintenance Capital

2. Dividends

3. Growth Capital

4. Acquisitions

5. Share Repurchases

Subject to Returns and Market Conditions

Cash Flow Priorities Favor Dividends

Dividends promote capital allocation discipline

15*Competitors ROCE represents a simple average of APA, APC, COP, CVX, DVN, EOG, HES, MRO and XOM

(30%)

(20%)

(10%)

00%

10%

20%

30%

2008 2009 2010 2011 2012 2013 2014 2015 2016

Competitors ROCE*OXY ROCE

Value Growth - Annual ROCE for Oxy vs. Average of Competitors

16

Value Growth

Focus on value driven growth - Top quartile returns

Positioned to return to double digit returns

(30%)

(20%)

(10%)

0%

10%

HES DVN CXO APC MRO APA EOG COP PXD OXY CVX XOM

2016 ROCE*

*Calculated based on public information and on a consistent basisCompanies listed alphabetically : APA, APC, COP, CVX, CXO, DVN, EOG, HES, MRO, PXD, XOM

17

2013Actual

Cali-fornia

2013 Excl.California

OtherUS

MENA 2013Adjusted

PermianRes.

Al Hosn OtherInternational

South Texas 2016Ongoing

High-MarginProduction

Growth Goal

Cash FlowBreakeven

at $50 WTI*

Divested assets that did not generate competitive corporate returns or free cash flow

Investing in assets with higher cash margin and lower capital intensity Lower relative returns drove decision to divest of South Texas Gas propertiesProceeds to be re-deployed in Permian Resources

Prod

uctio

n (M

boed

))

South Texas Gas propertiesDecline since 2013: 17 Mboed2016 Production: 27 Mboed (11% oil production)

763 (154)

609 (62)(79)

46859

64 28 (44) 57580 655

Set to generate both returns to shareholders and value-based growth

*Cash Flow Breakeven after Dividend and Growth Capital

Value Growth - Multi-year Returns Focused Portfolio Optimization

18*Pro forma for ongoing operations (excludes operations sold or exited)

0

100

200

300

400

500

600

700

2013 2014 2015 2016

Mbo

ed

Ongoing Company Excluding Permian Resources Permian Resources

428 440528

575

Ongoing Total Company Production CAGR 10%*

Permian Resources 25% CAGR

Value Growth - Production Growth Since 2013

19*Competitor Peers include APC, CVX, CXO, DVN, EOG, HES, MRO, PXD. Excludes APA, COP, XOM due to negative F&D.

2016 F&D (Organic) $/Boe19.27

17.19

13.3711.73 11.41

9.59

6.86 6.51 6.45

0

5

10

15

20

1 2 3 4 5 6 7 8 OXY

$/B

oe

Competitor Peers*

Value Growth – Significantly Reduced Development Cost


3%

18%20% 20%

24%26% 27%

35%37%

47%49%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

60.0%

PXD XOM HES CVX MRO EOG OXY APC COP APA DVN

Integrated O&GIndependent E&P

2002 – 2016 Average Oxy Debt-to-Capital

Strong Balance Sheet – Debt-to-Capital

21

Company S&P Ratings

S&P Outlook

Moody’s Ratings

Moody’s Outlook

New Issue Indications(10-year)

XOM AA+ Negative Aaa Negative 2.95%CVX AA- Negative Aa2 Stable 3.05%OXY A Stable A3 Stable 3.25%EOG BBB+ Stable Baa1 Stable 3.35%COP A- Stable Baa2 Positive 3.35%PXD BBB Stable Baa2 Stable 3.55%APA BBB Stable Baa3 Stable 3.65%NBL BBB Negative Baa3 Stable 3.75%DVN BBB Stable Ba1 Stable 3.75%APC BBB Stable Ba1 Stable 4.05%MRO BBB- Stable Ba1 Stable 4.05%HES BBB- Stable Ba1 Stable 4.25%CXO BB+ Positive Ba2 Stable 4.50%CLR BB+ Stable Ba3 Positive 5.00%WPX B+ Stable B3 Stable 5.875%WLL BB- Stable B3 Positive 7.75%

Strong Balance Sheet – Oxy Credit Ratings Vs. Peers

22

SuccessfulValue Proposition

Oxy has delivered positive results on each component of our value proposition

Consistent Dividend Growth• Oxy dividend CAGR more than doubled S&P CAGR since 2002

• Highest yield vs. US peers

• Historical dividend yield of 2.85%

Moderate Value-Based Growth

• Averaged better than 5% production growth

• Upper quartile ROCE

• Portfolio optimization complete for stronger future returns

Strong Balance Sheet

• 1Q17 cash balance of $1.5 Bn

• Received tax refund of $750 million during 2Q17

• Low debt-to-capital ratio

• Historical debt-to-capital ratio of 11%

• “A” level credit rating from Moody’s, S&P and Fitch


Company Market Cap ($Bn)XOM $346RDS $226CVX $198TOT $118BP $93ENI $52

Characteristics• Low or no growth• Higher returns• Stronger Balance Sheet• Lower risk• Free cash flow• Consistent dividend growth

Company Market Cap ($Bn)COP $56EOG $53APC $29PXD $29DVN $19APA $18

Characteristics• Generally higher growth• Lower returns• Weaker Balance Sheet • Higher risk• Little or no free cash flow• Little or no dividends• Moved from gas to liquids

Oxy Uniquely

Positioned

$47 BnMarket Cap

Independent E&PsLarge Integrated Majors

Unique Investment Proposition

24

Occidental Petroleum• Value Proposition

• Quality Assets

• Differentiated Value Based Approach

25

Focused Businesses with Scale

Oil & Gas High-return, low decline, long life, moderate growth, low-cost inventory

OxyChemHigh FCF, high returns

MidstreamInfrastructure and marketing to maximize realizations and complement oil & gas business

Oil and Gas Core Areas66% Oil │ 13% NGL │ 21% Gas

United States

Latin America

• Leading position in the Permian Basin

• Permian Resources is a growth driver

• Permian EOR is stable, low-decline with free cash flow

• Highest margin operations in Colombia

• Opportunities for moderate growth with partners

Middle East• Focus areas – Oman, Qatar, and UAE

• Opportunities for growth with partner countries

• Low-decline, long term contracts, stable operations with free cash flow

26

Oman: Assisted with the discovery and started development of Safah Field in

1982. A 15 year contract extension was signed for Block 9 this year. Blocks 27

and 53 expire in 2035. Block 62 expires in 2028.

Oman: Assisted with the discovery and started development of Safah Field in 1982. A 15 year contract extension was signed for Block 9 this year. Blocks 27 and 53 expire in 2035. Block 62 expires in 2028.

Colombia: Discovered giant Cano Limon field in the early 1980’s. Several contracts that currently range from 6 years up to the economic life of field.

Long term contracts

with upside potential

Longest Legacy International Operations: Colombia and Oman

27

ISND and ISSD: Offshore development in Qatar. ISND contract for 25 years initiated in 1994. ISSD contract expires in 2022.

Dolphin: Premier transborder pipeline delivering gas from Qatar to Abu Dhabi and Oman. Agreement was initiated in 2007 for a 25 year term.

Al Hosn: 30 year joint venture with the Abu Dhabi National Oil Company, (“ADNOC”) began in 2011 to develop the giant sour gas field in Abu Dhabi. Largest ultra sour gas plant in the world. Al Hosn is a world-class mega-project.

Additional Core Middle East Assets

28*Source: Wood Mackenzie 2016 production, 3/2/17, company NWI% production rates, operators shown represent ~85% of Permian Basin daily production

-

50

100

150

200

250

300

350

400

OX

YC

VX

PX

DA

PA

CX

OX

OM

XE

CE

OG

DV

NE

CA

EG

NFA

NG

CO

P PE LPI

AP

CK

MI

SH

ER

IDA

NS

HE

LLR

SPP

SIN

OC

HE

MB

HP

WP

XP

ER

M R

ES

.E

ND

EA

VO

RQ

EP

MTD

RSM NB

LLI

NN

CP

ELG

CY

EP

EA

RE

XS

SU

MY

HE

SSC

WE

IR

EN

CR

ZOPE

RM

IAN

BA

SIN

NE

T M

BO

EP

D

OP

ER

ATE

D P

RO

DU

CTI

ON

*

Liquids Gas

• 10,000 mi2 3D seismic• 130,000 mi2 2D seismic• ~10,000 gross OBO wells• 250 OBO wells since 2015

Advantages Through Scale

Largest Operator in the Permian

29

Permian ResourcesSignificant acreage& growth potential in all development areas

~650,000 net acres within the Delaware and Midland Basin boundaries

~300,000 net acres associated with 11,650 wells in unconventional development inventory

• NM Delaware Basin 290,000

• TX Delaware Basin 150,000

• Midland Basin 210,000

Total ~650,000

NetAcres*Resources Basin Development Areas

• Central Basin Platform 215,000

• New Mexico NW Shelf 150,000

• Emerging Unconventional 50,000

• Continuing Evaluation 335,000

Total ~750,000

NetAcres*

Other Resources Unconventional Areas

• Resources – Unconventional Areas 1.4• Enhanced Oil Recovery Areas 1.1

Oxy Permian Total 2.5MM

NetAcres*Business Area Acreage


NM Delaware Basin

TX Delaware Basin

Midland Basin

Central BasinPlatform

New Mexico NW Shelf

*Includes surface and minerals. Slide not updated for transactions announced on June 19, 2017.

30

Improved Permian Resources Horizontal Inventory from 4Q2015

• Added 1,250 locations BE < $50

• Added 3,150 total locations

• Increased average length from 5,950’ to 7,100’

• Traded 10,000 net acres to enable longer lateral and consolidated facilities

• 14 years of inventory <$50 breakeven with 10 rigs0

2,000

4,000

6,000

8,000

10,000

12,000

BE <$50 BE<$60 BE <$70 AdditionalInventory

Total

~5,300

2015 Locations8,500

~11,650~11,650

~2,500

~4,100

2016 Added3,150

Texas Delaware

Basin

Midland Basin

New Mexico Delaware

Basin

Increased Total Horizontal Drilling Locations ~37%

Locations within 300,000 of 650,000 net acres in Basin Development Areas

SS Characterization +Dev. Plans + TechnologySS Characterization +Dev. Plans + Technology

*Breakeven values based on NPV10. Slide not updated for transactions announced on June 19, 2017.

31

Permian EORSignificant inventory in 10-year plan

Geographically diverse

100 active CO2 + water floods covering multiple horizons

2 BBOE of identified net resource potential

870 net MMBOE at < $6.00 Future Development Cost

Proven Leader in Maximizing Recovery Across the Permian

0

500

1,000

1,500

2,000

Future Development Cost <$6Future Development Cost <$10Additional Unconventional Inventory TotalAdditional Conventional Inventory

Total Identified Barrels

Permian EOR Net Resource Potential

Permian EOR Acreage

Delaware Basin

Midland Basin


MM

BO

E

CO2Floods

TZ/ROZ*Water Floods +

Other Infill Drilling

Opportunities

High-gradable Inventory

<$10 <$6

*Note: TZ/ROZ – Transition Zone and Residual Oil Zone. Slide not updated for transactions announced on June 19, 2017.

Future Development Cost ($/BOE)

32

24%

14%

20%23%

15%

20%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

OxyChem Peer 1 Peer 2

1Q 2017 2015 – 2016 FY Average

EBITDA Margin

OxyChem Generates Industry Leading Chemicals Margins

33

Shipments from Ingleside export facility

2017 Impact

• Free cash flow expected to improve $150 -$200+ MM due to better marketing economics and ramp up of Ingleside oil storage and export facility

• Ample takeaway capacity and new outlet for Permian oil production

Businesses

Gas Plants: Natural gas and CO2 gathering, compression and processing systems to control upstream costs

Pipelines - Domestic: Take-away capacity via common carrier oil pipeline and storage systems, including Centurion pipeline, CO2 source fields and pipeline systems

Pipelines - Foreign: Stable free cash flow from Dolphin natural gas pipeline

Power Generation: Lower cost electricity through power and steam generating facilities

Marketing & Trading: market production at highest realizations; includes Ingleside export facility

Midstream: Improving Cash Flows and Market Access

34


• Quality Assets


35

Pathway:

> Grow high margin production with low capital intensity

> Continue to invest in low decline, free cash flow businesses at low cost

> Accelerate cash flows from the tail of the portfolio to fund production growth

> Advance value-based development approach with technology

Executing a plan to fund a growing dividend and 5% – 8% growth at $50 WTI.

Our Pathway to Cashflow Breakeven: Dividend + Growth

Milestones:

> 80 Mboed of production growth

> Ample options to self-fund growth

• ~$2.2Bn = South Texas, tax refund, PAGP

• +“Win-win” Trades, Partnerships, Sales

Accelerators:

> Improving conditions in Midstream and Chemicals and commodity prices

Slide not updated for transactions announced on June 19, 2017.

36

Ope

ratin

g Ca

sh F

low

($ B

n)

$4.2

$50/bbl

Current Annualized

Chemicals

$4.4$4.7

80 MboedProduction

Current Dividend

$2.3

Sustaining and

Growth Capital$3.3

Oxy Pathway to Cash Flow Breakeven at $50 WTI

Plan Achieved at $50

$5.66.0

5.0

4.0

3.0

2.0

1.0

0.0Midstream &

Marketing

$5.6

Pathway Drivers:

• Permian Resources high-margin growth to accelerate value proposition of consistent dividend plus moderate production growth

• Enables organization to continue to drive down breakeven oil price, replenish reserves, and innovate our capabilities


37

Annual cash flow sensitivities (Bn) $40 $50 $60

Cash Flow Priorities:Dividend ex-

GrowthDividend +

GrowthDividend +

Growth + Options

1) Base/Maintenance Capital $2.1 $2.3 $2.5

2) Dividends (current) $2.3 $2.3 $2.3

3) Growth Capital + Options $0 $1.0 $1.0+

Cash Outflows $4.4 $5.6 $5.8+

Cash Inflows $4.4 $5.6 $6.8

Production Growth Flat 5% - 8% 5% - 8%

Upon plan execution, Oxy can fund dividend and sustain production from operating cash flows. WTI Oil Price:

Asset Quality and Capital Flexibility Provides Optionality to Cover Dividend


38

Differentiated Value-Based Approach

• More Oil

• Less Cost

• Better Inventory

Creating shareholder value over the long-term

• Culture of innovative technology and process– Subsurface characterization– Integrated development planning– Oxy Drilling Dynamics– Innovative facility designs – Long-term base management– Enhanced reservoir recovery

• Early adoption of external trends– Big data, analytics, and mobile workforce– Multi-lateral wells (SL2)– Crude export facility

• Innovative cost efficiency strategies– Logistic and Maintenance hubs – OBO portfolio and investments

39

SL2 Potentially Lowers Secondary Bench BE by $5:

> Lowers well cost by $0.5 - $1.0MM

> Reduces operating costs by over 50%

> Sequencing increases facilities utilization

> One artificial lift system saves $0.2MM per lateral

Project Timeline:

> Project chartered in 2015, design and lab test in 2016

> First installation completed in December 2016

> Barilla Draw - Betty Lou 1016H, WCA & 2nd BS

> 2017+ wells designed for future SL2 capability

Technology Is Key To Further Cost ReductionSL2

40

Logistic & Maintenance Hub Underway

• Secures supply availability

• $500 – $750k savings per well> Below market cost of supply will offset

potential service cost inflation

> Reduces last mile logistics costs

• Mutually beneficial partnerships

Service company yard• Maintenance• Stimulation & Cement• Service directional tools

Sand Transload and Storage• 6 Silos• 3 Unit train loops• Transload capacity

OCTG Laydown Yard• ~20 railcar spots• Dedicated truck entry/exit• Staging, returns, reclamation

OxyChem Acid Facility• Transload, storage, and

dilution of HCI for fracs• ~20 rail transload capacity

• Strategically located in New Mexico

• 244 acres

• 3 unit train loop

• 30,000 tons of sand storage

• Supports 10-12 rigs/year

• Operational in early 2018

Value Chain Partnerships Lower Costs

41

• Value Proposition: We’ve done what we said we would do and will repeat that success

• Quality Assets: Recent portfolio upgrade provides highest quality assets in the industry and they are designed to support a strong dividend with value growth:

> Low decline, low capital intensity, long life reserves

> Short cycle, high growth, high rates of return

• Strategy is consistent with value proposition

• Highly engaged workforce will execute strategy and exceed expectations


• Quality Assets


42

Table of Contents





• Appendix

43

• 2.5 million net acres in the Permian Basin

> 650,000 net acres within the Delaware and Midland basins

• Increased unconventional horizontal drilling locations by 37% to 11,650

> Average lateral length up 20% to ~7,100 ft

> Locations with breakeven < $50 WTI up over 100% by ~1,250 locations

• Permian Resources potential production CAGR of 30+% from Focused Development Areas

• Permian EOR opportunities include 870 MMBOE reserves (16+years R/P) with estimated future development costs <$6.00/BOE

> Operating Expense reduced 17% from 2014 to $17.18/BOE

• Opportunities to maximize net present value of cash flows

Permian Basin Key Takeaways

44

• Resources – Unconventional Areas 1.4 5,150 124 • Enhanced Oil Recovery Areas 1.1 19,310 145

Oxy Permian Total 2.5MM 24,460 269

-

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ES

SC

WE

IR

EN

CR

ZO

PE

RM

IAN

BA

SIN

NE

T M

BO

EP

D O

PE

RA

TED

P

RO

DU

CTI

ON

**

Liquids Gas

Oxy Permian

44

• Largest operated position in the Permian

• Exceptional subsurface characterization

• Proven value based development approach

• Improving through unique technology advancements

Net Operated 2016 NetAcres Wells* Production MboedOxy Permian Business Overview

*Gross Oxy operated wells including producers and injectors, and idle wells.**Source: Wood Mackenzie 2016 production, 3/2/17, company NWI% production rates, operators shown represent ~85% of Permian Basin daily production

Permian Basin Industry Production

45

The Permian Drives Oxy’s Value Proposition

DevelopmentCost

Opex G&A ProductionTaxes

Cash Costs

$16 - $19/BOE

Note: Estimated future project costs.

Improving top tier margins with recent operational and technical breakthroughs.

$6 - $12/BOE

DevelopmentCost

Opex G&A ProductionTaxes

Cash Costs

$6 - $10/BOE

$18 - $25/BOE

Permian EOR provides stable, free cash flow with minimal base decline.

~11,650 Undeveloped Drilling Locations ~2B Bbls Identified Undeveloped Resource

Permian Resources Permian EOR

46

Diversified Portfolio Provides High-Return and Significant Flexibility

Asset Portfolio Role Upside Potential

Southeast New Mexico

High return, low capital intensity for near-term growth and cash recycle

Acreage improvement for longer laterals and facilities optimization for multi-bench bench development

Greater Barilla Draw

High return, deep inventory of drill locations, complete infrastructure position

Continued full cycle cost improvement through operational and subsurface synergies from large acreage position

North New Mexico High confidence step-out development areas, replenishment source for high quality inventory

Acreage improvement for longer laterals and development scale. Appraise and delineate additional benches

East Midland Basin

De-risked multi-bench play with mature infrastructure for flexibleshort-cycle growth

Continued acreage improvement to create synergies of large development area

West Midland Basin

Long-term growth potential on large contiguous acreage position with significant flexibility

Technology applications and OBO intelligence to lower project breakeven price


Conventional low-decline development for long-term growth

Apply unconventional operationalcapabilities and EOR expertise to maximize recovery

North New Mexico

Greater Sand Dunes

East Midland Basin

Central Basin Platform

West Midland Basin


2017 – 2019 Focused Resource Development Areas


47

Maximize Value of Portfolio - Low Capital Intensity Drives Value

*Includes estimated net non-operated rigs. Slide not updated for transactions on June 19, 2017.**Calculated using estimated total year capex (drilling, completions, hookup, facilities, infrastructure, capital workovers, maintenance, seismic). Annual wedge represents the new production added in each year from the capital program (excludes base production).

0

5

10

15

20

-

50

100

150

200

250

300

2017 2018 2019

Prod

uctio

n (M

boed

)

Multi-Year Permian Resources

Rig

Cou

nt

20% CAGR

30% CAGR

Base rig count* Upside rig count*

6

8

9 9

1415 Annual Wedge

STX SaleRe-invested11 – 13 rigs

at exit

< $30MM$ per Mboed**

2015 / 2016 $54 MM

2017 $33 MM

2018 $29 MM

2019 $23 MM

+ 400 wellsTo be added

< $50 BE in 2017

Current < $50 BE = 2,500

Landing ZonesFlow Unit + StimulationMulti-flow unit modular developmentFacilities UtilizationTechnology and OBO operations

More OilLess CostBetter Inventory

Sustainable throughTop Tier Inventory

2017 Exit rig count*

All-In Capital Intensity

48

0

50

100

150

200

250

300

0 30 60 90 120 150 180

Cum

ulat

ive

Mbo

e4

,50

0

ftLa

tera

ls

Days Online

Value Based Development Increases ReturnsGreater Sand Dunes

Current* Wolfcamp XY

Old 2nd Bone Spring Design -2014

Three high-return development benches• Currently three play leading benches under development

> Modular development

> Area appraisal continues to add new benches / flow-units

• Longer laterals

• Reducing secondary bench breakeven prices by ~$10

> Facilities saves ~$800k per well

> SL2 saves >$500k per well

> OPEX reduction up to 50%

Current* 2nd Bone Spring

Moving to longer laterals to improve returns

-

2,000

4,000

6,000

8,000

2016 1H2017 2H2017 2018

Late

ral L

engt

h (F

t)

Current* 3rd Bone Spring

*Current represents wells online 3Q16 – 1Q17

49

-

25

50

75

100

125

150

0 30 60 90 120 150 180Cum

ulat

ive

Mbo

e

Days on Production

Greater Barilla Draw• Red Bull South Active and

Improving> 2 rigs currently operating

> 3 wells drilled and 3 wells online since acquisition date

> Record Peak 24hr WC B 7,500ft at 1,954 boed

> 23% lower completion costs

>Updating plan from 7,500ft to 10,000ft laterals

• Currently 3 rigs in Greater Barilla Draw> 2 additional rigs in 2Q17

Wolfcamp B Improvement = frac optimization to drive results

Efficient stimulation without sacrificing production

$11.6$9.7 $8.5

-$3

$2

$7

$12

Prior Operator Oxy Current Oxy Potential$

MM

Drilling Cost Completion

Wolfcamp B 7,500ft Well Costs

Value Based Development Increases Returns

Oxy WC B 7,500ft Fracs

Prior Operator WC B 7,500ft Fracs

50

- 25 50 75

100 125 150 175

0 30 60 90 120 150 180 210 240 270 300 330 360

Cum

ulat

ive

Oil

-Mbo

Days on Production

Old WC B Design

New WC B Design

All WC A Wells

Midland Basin - Merchant

• Currently two play leading benches under development

> Landing point optimized flow units

> Wolfcamp B performance +42%

> Oil cut from 61% to 77%+

• 2017 lateral length ~ 8,700ft

• Two benches now < $40 BE

> Pad D&C saves ~$900k per well

$11.6

$6.3$5.2 $5.1 $4.5

$- $2 $4 $6 $8

$10 $12

2014 2015 2016 2017 Best

$M

M

Drilling Completion Hookup

Wolfcamp A & B 7,500ft Well Costs

Wolfcamp B Improvement = two high return development benches

Continuous well cost improvement yielding high returns

Value Based Development Increases Returns

51

Target Formation

Recent Well Results

Well NameLateral

Length (ft)Peak 24 Hr

(boed)Peak 30 Day

(boed)Oil (%)

Brushy Canyon Federal 23 13H 4,376 899 833 90%

Avalon James 29 38H 4,730 1,132 1,115 79%

1st BSS Evaluating

2nd BSS

Cedar Canyon 22 5H 4,468 3,292 2,711 80%

Cedar Canyon 29 2H 4,584 2,782 2,370 81%

Cedar Canyon 28 8H 4,536 2,700 2,385 81%

Oxy 1Q17 Average 5,081 2,214 1,944 81%

3rd BSSCedar Canyon 22-15 31H 5,868 2,236 1,893 74%

Cedar Canyon 22-15 32H 5,868 2,231 1,852 75%

Wolfcamp XY

Patton 18 6H 4,401 2,774 2,150 71%

Cedar Canyon 16 33H 4,418 2,397 2,049 71%

Cedar Canyon 16 34H 4,235 2,287 1,967 70%

Wolfcamp A

Janie Conner 204H 4,500 1,980 1,221 78%

B Banker 226H 4,400 1,874 1,030 76%

Janie Conner 207H 4,500 1,272 1,121 72%

Wolfcamp DJanie Conner 221H 4,522 2,282 1,809 39%

Tiger 14 24S 28E 224H 4,376 1,719 1,417 47%

Note: Wells included in table include non-operated wells. Production data is from internal system for operated wells and from operator data and IHS Enerdeq for non-op wells where available.Wells in blue font were turned to production in 1Q 17.

Barilla Draw Type LogGreater Sand Dunes

Proven Economic Delineating

Brushy Canyon

Avalon

1st Bone Spring

2nd Bone Spring

3rd Bone Spring

Wolfcamp X-YWolfcamp A

Wolfcamp D

6,00

0 ft

New

New

Outstanding Results in Greater Sand Dunes Area Multi-Bench Development

52

Target Formation

Recent Well Results

Well NameLateral

Length (ft)Peak 24 Hr

(boed)Peak 30 Day

(boed)Oil (%)

Avalon Evaluating

1st Bone Spring Evaluating

2nd Bone Spring Roan State 24 #51HAardvark State 6 2H

4,5144,947

9931,254

762821

83%87%

3rd Bone Spring Big George 180 SW 3H 7,576 759 571 57%

Wolfcamp A

Buzzard State Unit #16HPeck State 258 #6H

Buzzard State Unit #15HLenox 2 #5H

Eagle State 28 #13H

7,7004,2127,5984,7214,250

2,0502,2442,0192,4251,958

1,8221,7911,7641,5061,505

74%82%73%71%69%

Wolfcamp DF

Oppenheimer 188 1HNyala Unit 9B #3H

Oppenheimer 188 2HTeller 186 1H

4,5006,5754,7764,681

2,4511,5351,5471,707

1,9071,2471,3401,263

82%83%82%81%

Wolfcamp B

Manhattan 183W 1HDaytona Unit 1B 2H

Black Bear State 11 NE #3H

Iron Mike 40 SE 2H

7,0446,9476,935

7,376

1,9541,8971,215

1,703

1,58415441,124

1,416

75%79%85%

76%

Wolfcamp C Lemur 24 1H 4,251 1,125 937 81%

Note: Wells included in table include non-operated wells. Production data is from internal system for operated wells and from operator data and IHS Enerdeq for non-op wells where available. Well highlighted in blue is most recent well put online by Oxy from newly acquired acquisition area.

Barilla Draw Type LogGreater Barilla Draw – Drilled 228 Wells Across 8 Benches

Proven Economic Delineating

Avalon

1st Bone Spring

2nd Bone Spring

3rd Bone Spring

Wolfcamp AWolfcamp DF

Wolfcamp C

4,50

0 ft

Wolfcamp BNew Red Bull South

Improving Results in Greater Barilla Draw Area Multi-Bench Development

53

Permian Resources Non-OperatedAssets

• Significant OBO position delivers ~13% of domestic production

• Leveraged to deliver high returns, knowledge, and transaction opportunities

• Well participation provides data that progresses delineation efforts across Oxy’soperated assets

2015+ Non‐Operated Activity

Delaware 4San Andres 7

Yeso 13Bone Spring 70

Spraberry 5Wolfcamp 143

Other 15

Total 257

Target 2015+ Wells

TX Delaware Basin


Midland Basin

New Mexico NW Shelf

NM DelawareBasin

Greater Sand Dunes


Permian Basin Acreage

54

Subsurface Characterization Adds Value• Problem: Subsurface uncertainties &

unknowns to predict resource potential

> Sweet spots

> Frac barriers

> Landing zones

• Solutions: Customized subsurface characterization & expertise

> Seismic integration

> Data acquisition

> Models

• Maximize and capture resource potential

Schematic Representation of 2nd Bone Spring Sand Well Placement

2nd Bone Spring Net Sand Thickness and Middle Carbonate Outline

Seismic Interpretation of Middle Carbonate Inside 2nd Bone Spring Sand

A

A A’

Landing + Stimulation + Spacing Optimization

A A’

A’Middle Carb. Outline

55

Subsurface Characterization Adds Value• Problem: Subsurface discontinuity

differentiates stimulation impacts

> Oil left behind

> Frac interference

> Landing zones

• Solutions: Customized subsurface stimulation modeling

> Calibrated stimulation design

> Maximized stimulated rock volume

> Technical type curves

• Maximize economic recovery

Customized Stimulation Design and Landing Selection

2nd Bone Landing and Frac OptimizationA A’

Scenario A B C D

56

4

4

1

1 1

11

2 22

22

Development Units – Greater Sand DunesDevelopment Planning Adds Value• Problem: Potential destruction of

future value as a result of unknowns

> Multi-bench potential

> Frac barriers

> Productivity drivers

> External timing constraints

• Solutions: Modular field development plans to account for uncertainty and enable dynamic development

• Maximize value through reduction in capital spend waste and capture of more reserves Development Phases – Appraisal to Development

Modular blocks to manage uncertainties, select development pace and debottleneck

Aerially ‐Multiple Development Units

•Unique & likewise areas• Land ownership• Surface regulations•Maturity (e.g. common landing zones)

Vertically – Multiple Development Phases

1. Proven2. Delineating

3

3 3

3

57

Oxy Drilling Dynamics Adds Value• Problem: Inefficient use of rig

energy resulting in slow and higher cost drilling

> Downhole tool failures

> Wellbore quality

• Solutions: Oxy Drilling Dynamics

> Proprietary Oxy MSE equation

> Reduced drilling days

> Fewer tool failures

> Precision landing

• Maximize value through better time to market and precision landing

Step Changing Performance

Identify Understand Engineer Implement

Bit Vibration

Increase BHA* St i ffness

Pump Pressure

Alternative Dr i l l P ipe

Directional Control

Weight Transfer

Redesign Bi t

Re-Engineer BHA*

Weight on Bit

Rat

e of

Pen

etra

tion

(ft/

hr)

31

22

1612

30%

28%

25%

Drilling Days 7,500’ Lateral(Rig Release to Rig Release)

Real Time Monitoring from Anywhere

*BHA = bottom hole assembly

58

0

20

40

60

80

100

120

140

Jan Mar May Jul Sep Nov Jan Mar Sep Nov Jan Jul Sep Nov

2014 2015 2016

Expected 2017 range with normalized rig-to-frac ratio

Rig Release to Well Online

Day

s• Implementation resulted in 5,000

production days above the baseline plan.

Integrated Planning Adds Value• Problem: Delay in production and

cash flows due to complex operations and planning

> Multiple unaligned schedules

• Solutions: Implemented Integrated Master Schedule

> Optimized sequence of events reducing “flat time”

• Maximize Value through better time to market and securing pricing and supply of services

• 2017 additions to process

> Increased granularity of well prep, clean-out, and pre-spud activities

> Focus on efficient resources utilization

59

OXY 1 2 3 4 5 6 7 8 9 10 11 12 13

Surveillance and Base Management Adds Value

• Oxy operates 24,460 wells in the Permian Basin

• Company operated production of 235 MboepdNet (EOR and Unconventional)

• Long-term operability is critical> Well design

> Drilling quality wells

> Artificial lift optimization

> Mechanical integrity

• Oxy finds significant value upside in base optimization

• Oxy can operate large base at low opex> Offset fixed costs of high well count with operational

expertise

-

2.0

4.0

6.0

8.0

10.0

1Q 16 2Q 16 3Q 16 4Q 16

Cum

ulat

ive

Net

MB

OEP

D

2016 Permian Resources Base Optimization

Total Operated Wells

Major and Large Cap Peers

Permian Pure-Play PeersPeers (alphabetical) include: APA, COP, CPR, CVX, CXO, EOG, FANG, LPI, MPI, MTD, PE, RSP, XOM. Source : IHS Enerdeq

60

2017 Capital Outlook

CO2 Floods / Expansions - $195MM

TZ / ROZ Projects - $50MM

Gas Processing Capacity - $50MM

Water Flood and Infill Drilling - $30MM

Non-operated + Maintenance - $135MM

0

500

1,000

1,500

2,000

2,500

3,000

3,500

Gro

ss B

OPD

South Hobbs Unit Production and CO2 Flood Forecast

SOUTH HOBBS TARGETS 5 per. Mov. Avg. (SOUTH HOBBS)

Waterflood

Phase 1 CO2Flood

Reservoir Management

$0

$5

$10

$15

$20

$25

2014 2015 2016

$/B

OE

0

100

200

300

400

500

600

2016 TargetCapex

2016 ActualCapex

$M

M

Opex Reduction Capital Efficiency

Downhole Maintenance InjectantSurface, Energy and Other Facilities and Well Work Drilling

12% Reduction Y/Y17% Reduction 2014-2016

2016 Accomplishments in EOR Business

61

Table of Contents





• Appendix

62

• Smart Oilfield• Edge Computing• Internet of Things• Cloud and Mobility• Big Data and Analytics• Cognitive Service and

Machine Learning• UAV• Virtual Reality

• Real time Data Historian• Predictive Analytics• Advanced Surveillance

Technical Data Management

Production Optimization

Field Automation

Consolidated ERP Systems

Next Generation Production Optimization

• Institutionalized Processes and Tools

• Single reporting repository• Focus on analysis and

decision making

• Technical Data Consolidation• Global Well Naming Convention

• Integration of operational, technical and financial data

• Global Supply Chain• Single Chart of Accounts

• Standardized End Devices• Segregation of Automation Network• Secured Remote Access to Real time

Data• Process Historian

2001

2003

2005

2008

2012

Our Journey to Digital Transformation

63

A flexible system that flows, changes form in real time, and seeks the most

natural path to its destination.

Current Innovation Pipeline Statistics and ResultsOxy’s Innovation Process

107

Capturing and Executing Innovative Ideas

64

Oxy

& In

dust

ry E

xper

tise

Data Management

Dat

a &

Ana

lytic

s D

omai

n Ex

pert

ise

• Visualization• Benchmarking• Exploitation & Exploration

Insight & Recommendations

• Bayesian Analysis• Survival Analysis• Uncertainty Analysis

• Design of Experiment• Statistical Learning (Machine Learning)• Spatial/Temporal Analysis

Statistical Methods

• Data Preparation & Tagging• Data Quality & Cleaning• Data Forensics & Profiling

Data Collection & Profiling

• Numerical and stochastic Simulation

• Signal Processing• Network Analysis

• Computational Intelligence• Natural Language

Processing• Image/Voice Processing• Data Structure & Classical

Algorithms

Opt

imiz

atio

nAr

tific

ial I

ntel

ligen

ce

Computational Methods

University Partnerships

O&G Industry Research

Outside Industry Research

Commercially Viable Algorithms

Vendors

IT

Key Levers

Data Science – Going Beyond Interesting

65

Driving Value @ the Bit

@ Bit Algorithm

• Predicts bit location using physics +machine learning

• Calculates dogleg severity, build/turn rate, motor yield

@ Target Algorithm

• Determines optimum build & turn rate, sliding and rotating lengths to reach target point

• Minimizes loss of weight on bit, tortuosity, drilling time, dogleg severity

Projection Distance

Max DLS limit = 11 degreesMax DLS limit = 14 degreesMax DLS limit = 24 degreesPlanned Trajectory

Actual Trajectory

@Bit + @Target• $325K avg. per rig savings

• Vendor performance metrics

• Increase in rate of penetration

• “Problem Well” avoidance

• Optimal path determination (staying in producing zone)

66

High Speed, Low Fidelity Reservoir Models

Historical/field data to calibrate and quantify

uncertainty

Field decisions that optimize daily total field production

Maximize NPV honoring economic, operating, and well constraints

by generating thousands of what‐if scenarios

Observation WellInjection WellVent Well

Producing Well

Temp, Press

Production

Injection

Production Well DataInjection Well Data

Optimizer

Reservoir & Operational Facilities

Target=$100MM

Driving Value @ the ReservoirSteam/Water/CO2• Leverage field data and new

data sources

• Optimize over larger areas

• Integrates w/existing workflow

• Significantly lower computational costs

67

Driving Value @ the Well

Lift System Diagnostic/Optimization

• Leverages artificial intelligence and pattern recognition

• Proprietary deviated well algorithms based on mechanical engineering+applied mathematics

Upcoming Opportunities

• Text and image analytics of unstructured data to drive efficiencies with chemical treatments, safety, failure detection, etc.

• Survival and risk analysis to identify odds of failure in advance.

• Combine maintenance cost factors and risk of failures to optimize preventative maintenance.

• Increase run life

• Earlier detection of failures

• Improve staff efficiency, quality

• Industry leading capabilities into Oxy’s proprietary lift platform (OxyLift)

Time

Risk vs Cost/Complexity

Risk of Failure Risk of Total Losses

Risk of Additional Cost

68

Driving Value@ Field Development

Multivariate Modelling

• Predictive, interactive multivariate statistical model that predicts geologic sweet spot areas and compares completion practices and cost factors

• Driven by strong collaboration with geologists, petrophysicists, geophysicists, operations, etc.

• Introducing seismic, additional well control and fluid properties

• Augments, validates and quickens existing practices

• Interactive framework that improves as data is added

69

Exploration & Appraisal

Field Development

Drilling & Completion

Trading & Distribution

Workforce Management

Production

Reservoir Characterization

Where to Drill

Lease Management Analytics

Resource Risk ManagementRate of Penetration Optimization

Production Allocation& Monitoring

Well ProfilingProduction Forecasting

Asset Maintenance

Supply Chain Optimization

Inventory Optimization

Route & Fleet Optimization

Pipeline Inspection

Contract Optimization

Risk Management Capital Optimization

Prediction of Supply Requirements

Prediction & Optimization of required Workforce

Equipment Loss & Failure

Subsurface Dysfunction Detection & Prevention Drilling Trajectory

Optimization

Minimize Environmental Risk

Optimization Cost vs Productivity

Production HES

Job Performance Monitoring

Identifying Key Players & Future Leaders

Identifying Organization Issues

Retention & Risk Management

Predictive Analysis

Drones Virtual & Augmented Reality

Internet of Things

Big Data and Analytics Edge Computing

Cognitive Services & Machine Learning

Robotics

Cloud Computing & Mobility

Digital Foundational Capabilities

The Possibilities Are Endless…

70

Table of Contents





• Appendix

71

Oil & Gas Segment • FY 2017E Total Production

> 595,000 – 615,000 boed

> Permian Resources production of 140,000 – 150,000 boed

• 2Q17E Production

> Total production of 580,000 – 595,000 boed

> Permian EOR production flat

> Permian Resources production of 135,000 – 140,000 boed

> Modest impact of OPEC quota constraints and volume effects under PSC contracts due to higher oil prices.

Production Costs – FY 2017E

• Domestic Oil & Gas: ~$14.00 / boe

Exploration Expense

• ~$30 MM in 2Q17E

DD&A – FY 2017E

• Oil & Gas: ~$15.00 / boe• Chemicals and Midstream: $685 MM

Midstream

• $5 – $15 MM pre-tax income in 2Q17E

Chemical Segment

• ~$200 MM pre-tax income in 2Q17E

Corporate

• FY 2017E Domestic tax rate: 36% • FY 2017E Int'l tax rate: 55%• Interest expense of $85 MM in 2Q17E

2Q17 and FY 2017 Guidance Summary


72

•Improved product prices> Annualized cash flow changes ~$100 million for a ~$1.00 / barrel change in oil prices

> Annualized cash flow changes ~$45 million for a ~$0.50 / Mmbtu change in natural gas prices

•Improved chemicals performance> Annualized cash flow changes ~$30 million for a ~$10 / ton change in caustic soda prices

> Start-up of ethylene cracker

•Additional sources of liquidity in 2017 - 2018 of ~$2.2+ billion including:> Received tax refund of ~$700 million in 2Q17

> Monetized South Texas gas properties for ~$600 million in 1Q17

> Monetization of non-strategic corporate assets

> Portfolio management & optimization

Cash Flow Improvements Expected in 2017


73

75

110

124 129

135 - 140140 - 150

2014 2015 2016 1Q17 2Q17E 2017E

Oil NGL Gas• Total production grew 5% from Q4 16 to 129 Mboed> Oil production up 7% from Q4 16 to 78 Mbod

• Increased activity in 1Q 2017> Exited Q1 with 7 rigs> 21 wells online in 1Q17 vs. 16 in 4Q16> Added 5 top tier performing wells in Greater Sand Dunes

• 2017 program: increase in activity expected in 2Q17> 2 rigs to be added in Q2 in Greater Barilla Draw Area> Expect to drill 28 wells and put online 26 wells in 2Q17

• 2017 program: expect 120+ operated wells online> Increased activity will be focused in Greater Sand Dunes

and Greater Barilla Draw.

Permian Resources Results and Guidance


74

Ope

ratin

g Ca

sh F

low

($ B

n)

$4.2

$50/bbl

Current Annualized

Chemicals

$4.4$4.7

80 MboedProduction

Current Dividend

$2.3

Sustaining and

Growth Capital$3.3

Our Pathway to Cash Flow Breakeven at $50 WTI – Chemicals Drivers

$5.6

+$0.20

Chemicals Drivers:

• Full-year benefit of current basic chemicals pricing environment

• Full-year benefit of Ethylene Cracker

• Full-year benefit 4CPE Refrigerant Plant

6.0

5.0

4.0

3.0

2.0

1.0

0.0Midstream &

Marketing

$5.6



75

Ope

ratin

g Ca

sh F

low

($ B

n)

$4.2

$50/bbl

$4.4$4.7

Current Dividend

$2.3

Sustaining and

Growth Capital$3.3

Our Pathway to Cash Flow Breakeven at $50 Oil – Midstream Drivers

$5.6

Midstream & Marketing Drivers:

• Improved Midland to Gulf Coast differentials

• Al Hosn Midstream improvement

6.0

5.0

4.0

3.0

2.0

1.0

0.0

+$0.3

$5.6

Current Annualized

Chemicals 80 MboedProduction

Midstream &Marketing



76

Ope

ratin

g Ca

sh F

low

($ B

n)

$4.2

$50/bbl

$4.4$4.7

Current Dividend

$2.3

Sustaining and

Growth Capital$3.3

Our Pathway to Cash Flow Breakeven at $50 Oil – Oil & Gas Drivers

$5.6

Oil & Gas Drivers:• Over 2,500 locations with NPV10 breakevens

under $50 WTI • Cash margins of $30 per barrel

6.0

5.0

4.0

3.0

2.0

1.0

0.0

+$0.9

$5.6

Current Annualized

Chemicals 80 MboedProduction

Midstream &Marketing



77

Permian Resources Growth Opex / boe

Permian Resources Legacy Opex / boe

Permian EOR Opex / boe

$2 - $4

$15 - $20

$5 - $20

2017 2018+

~$14/boe

Reducing Domestic Opex Through High Margin Growth Barrels

Total Domestic Opex / boe

Domestic Production Mix

2017 2018+

Flat

LegacyGrowth

EOR

Asset Area Opex Ranges

78

Spot Domestic Caustic Soda Price** Low end of price range as reported by IHS

• Caustic soda prices reversed their multi-yeartrend of steady decline in mid-2016

• Global caustic soda demand forecasted to outstrip capacity increases again in 2017

> European mercury technology conversion/closure deadline December 2017

• Higher energy prices will erode some of the impact of higher caustic soda prices

$200

$250

$300

$350

$400

$450

Olin35%

OxyChem24%

Westlake18%

Rest of Industry

23%

North American Chlor-Alkali Capacity Share

• Major industry consolidation iscomplete after several years of M&A activity

• Protracted poor financial performance in the industry is improving market discipline

Basic Chemical Market Dynamics Are Shifting

Documents

Occidental Petroleum Corporation€¦ · realized. Unless legally required, Occidental does not undertake any obli gation to update any forwar d looking statements, as a result of