EX-99 5 ex993-20050722.htm EXHIBIT 99.3

EXHIBIT 99.3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Second Quarter

Net Income (Loss)

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

 

 

Core

 

 

Income

 

Significant Items Affecting Income

 

Earnings

Oil & Gas

 

$

1,325 

 

$

26 

Contract settlement

 

$

1,351 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

225 

 

 

 

 

 

 

225 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(47)

 

 

1 

Debt redemption

 

 

(46)

Other

 

 

73 

 

 

(140)

Sale of Lyondell shares

 

 

(67)

Taxes

 

 

(44)

 

 

51 

Tax effect of adjustments

 

 

(612)

 

 

 

 

 

 

(619)

IRS settlement

 

 

 

Income from continuing operations

 

1,532 

 

(681)

 

 

851 

Discontinued operations, net of tax

 

 

4 

 

 

(4)

Discontinued operations, net

 

 

- 

Net Income

 

$

1,536 

 

$

(685)

 

 

$

851 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

3.81 

 

 

 

 

 

$

2.12 

Discontinued operations, net of tax

 

 

0.01 

 

 

 

 

 

 

- 

Net Income

 

$

3.82 

 

 

 

 

 

$

2.12 

 

 

1

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 Second Quarter

Net Income (Loss)

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

 

 

Core

 

 

Income

 

Significant Items Affecting Income

 

Earnings

Oil & Gas

 

$

980 

 

 

 

 

 

$

980 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

92 

 

 

 

 

 

 

92 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(60)

 

 

  

 

 

 

(60)

Other

 

 

(44)

 

 

 

 

 

 

(444)

Taxes

 

 

(384)

 

 

 

 

 

 

(384)

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

584 

 

 - 

 

 

584 

Discontinued operations, net of tax

 

 

(3)

 

 

3 

Discontinued operations, net

 

 

- 

Net Income

 

$

581 

 

$

3 

 

 

$

584 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

1.48 

 

 

 

 

 

$

1.49 

Discontinued operations, net of tax

 

 

- 

 

 

 

 

 

 

- 

Net Income

 

$

1.48 

 

 

 

 

 

$

1.49 

 

 

2

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 First Six Months

Net Income (Loss)

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

 

 

Core

 

 

Income

 

Significant Items Affecting Income

 

Earnings

Oil & Gas

 

$

2,674 

 

$

26 

Contract settlement

 

$

2,700 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

439 

 

 

 

 

 

 

439 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(108)

 

 

11 

Debt redemption charges

 

 

(97)

Other

 

 

22 

 

 

(140)

Sale of Lyondell shares

 

 

(118)

Taxes

 

 

(645)

 

 

47 

Tax effect of adjustments

 

 

(1,207)

 

 

 

 

 

 

(619)

IRS settlement

 

 

 

 

 

 

 

 

 

10 

State tax charge

 

 

 

Income from continuing operations

 

2,382 

 

(665)

 

 

1,717 

Discontinued operations, net of tax

 

 

- 

 

 

- 

Discontinued operations, net

 

 

- 

Net Income

 

$

2,382 

 

$

(665)

 

 

$

1,717 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

5.94 

 

 

 

 

 

$

4.28 

Discontinued operations, net of tax

 

 

- 

 

 

 

 

 

 

- 

Net Income

 

$

5.94 

 

 

 

 

 

$

4.28 

 

 

3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 First Six Months

Net Income (Loss)

($ millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

Reported

 

 

 

 

 

Core

 

 

Income

 

Significant Items Affecting Income

 

Earnings

Oil & Gas

 

$

1,895 

 

 

  

 

 

$

1,895 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

148 

 

 

 

 

 

 

148 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(128)

 

 

11 

Trust preferred redemption

 

 

(117)

Other

 

 

(95)

 

 

 

 

 

 

(95)

Taxes

 

 

(747)

 

 

(20)

IRS settlements

 

 

(771)

 

 

 

 

 

 

(4)

Tax effect of adjustments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,073 

 

(13)

 

 

1,060 

Discontinued operations, net of tax

 

 

(5)

 

 

5 

Discontinued operations, net

 

 

- 

Net Income

 

$

1,068 

 

$

(8)

 

 

$

1,060 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.73  

 

 

 

 

 

$

2.70 

Discontinued operations, net of tax

 

 

(0.01) 

 

 

 

 

 

 

- 

Net Income

 

$

2.72  

 

 

 

 

 

$

2.70 

 

 

4

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

Items Affecting Comparability of Core Earnings Between Periods

 

 

 

 

 

 

 

 

 

The item(s) below are included in core earnings but are shown in this table

because they affect the comparability of core earnings between periods.

 

 

 

 

 

 

 

 

 

Pre-tax

 

 

 

 

 

 

 

 

Income / (Expense)

 

Second Quarter

 

Six Months

 

 

2005

 

2004

 

2005

 

2004

 

 

 

 

 

 

 

 

 

Oil & Gas

 

 

 

 

 

 

 

 

Exploration impairments

 

(66)

 

(12)

 

(85)

 

(45)

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

Environmental remediation

 

(10)

 

- 

 

(19)

 

- 

 

 

5

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

Worldwide Effective Tax Rate

 

 

 

 

 

 

 

 

 

 

 

 

 

QUARTERLY

 

YEAR TO-DATE

 

 

2005

 

2005

 

2004

 

2005

 

2004

REPORTED INCOME

 

QTR 2

 

QTR 1

 

QTR 2

 

6 Months

 

6 Months

Oil & Gas (a)

 

1,325 

 

1,349 

 

980 

 

2,674 

 

1,895 

Chemicals

 

225 

 

214 

 

92 

 

439 

 

148 

Corporate & other

 

26 

 

(112)

 

(104)

 

(86)

 

(223)

Pre-tax income

 

1,576 

 

1,451 

 

968 

 

3,027 

 

1,820 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

Federal and state

 

(256)

 

349 

 

214 

 

93 

 

407 

Foreign (a)

 

300 

 

252 

 

170 

 

552 

 

340 

Total

 

44 

 

601 

 

384 

 

645 

 

747 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,532 

 

850 

 

584 

 

2,382 

 

1,073 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

3%

 

41%

 

40%

 

21%

 

41%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2005

 

2004

 

2005

 

2004

CORE INCOME

 

QTR 2

 

QTR 1

 

QTR 2

 

6 Months

 

6 Months

Oil & Gas (a)

 

1,351 

 

1,349 

 

980 

 

2,700 

 

1,895 

Chemicals

 

225 

 

214 

 

92 

 

439 

 

148 

Corporate & other

 

(113)

 

(102)

 

(104)

 

(215)

 

(212)

Pre-tax income

 

1,463 

 

1,461 

 

968 

 

2,924 

 

1,831 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

Federal and state

 

312 

 

343 

 

214 

 

655 

 

431 

Foreign (a)

 

300 

 

252 

 

170 

 

552 

 

340 

Total

 

612 

 

595 

 

384 

 

1,207 

 

771 

 

 

 

 

 

 

 

 

 

 

 

Core income

 

851 

 

866 

 

584 

 

1,717 

 

1,060 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

42%

 

41%

 

40%

 

41%

 

42%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Revenues and income tax expense include taxes owed by Occidental but paid by governmental

entities on its behalf. Oil and gas pre-tax income includes the following revenue amounts by periods.

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2005

 

2004

 

2005

 

2004

 

 

QTR 2

 

QTR 1

 

QTR 2

 

6 Months

 

6 Months

 

 

226 

 

187 

 

117 

 

413 

 

233 

 

 

6

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Second Quarter Net Income (Loss)

Reported Income Comparison

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

 

 

 

 

Quarter

 

Quarter

 

 

 

 

 

2005

 

2005

 

B / (W)

Oil & Gas

 

$

1,325 

 

$

1,349 

 

$

(24)

Chemical

 

 

225 

 

 

214 

 

 

11 

Corporate

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(47)

 

 

(61)

 

 

14 

Other

 

 

73 

 

 

(51)

 

 

124 

Taxes

 

 

(44)

 

 

(601)

 

 

557 

Income from continuing operations

 

 

1,532 

 

 

850 

 

 

682 

Discontinued operations, net

 

 

4 

 

 

(4)

 

 

8 

Net Income

 

$

1,536 

 

$

846 

 

$

690 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

3.81 

 

$

2.12 

 

$

1.69 

Discontinued operations, net

 

 

0.01 

 

 

(0.01)

 

 

0.02 

Net Income

 

$

3.82 

 

$

2.11 

 

$

1.71 

Worldwide Effective Tax Rate

 

 

3%

 

 

41%

 

 

38%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM

2005 Second Quarter Net Income (Loss)

Core Earnings Comparison

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

First

 

 

 

 

 

Quarter

 

Quarter

 

 

 

 

 

2005

 

2005

 

B / (W)

Oil & Gas

 

$

1,351 

 

$

1,349 

 

$

2 

Chemical

 

 

225 

 

 

214 

 

 

11 

Corporate

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(46)

 

 

(51)

 

 

5 

Other

 

 

(67)

 

 

(51)

 

 

(16)

Taxes

 

 

(612)

 

 

(595)

 

 

(17)

Net Income

 

$

851 

 

$

886 

 

$

(15)

Basic Earnings Per Common Share

 

$

2.12 

 

$

2.16 

 

$

(0.04)

Worldwide Effective Tax Rate

 

 

42%

 

 

41%

 

 

-1%

 

 

7

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

Oil & Gas

Core Earnings Variance Analysis

($ millions)

 

 

 

 

2005 2nd Quarter

 

$

1,351 

2005 1st Quarter

 

 

1,349 

 

 

$

2 

 

 

 

 

 

 

 

 

Sales Price

 

$

128 

 

 

 

 

Sales Volume/Mix

 

 

(24)

 

 

 

 

Exploration Expense

 

 

(65)

 

 

 

 

All Others

 

 

(37)

 

 

 

 

TOTAL VARIANCE

 

$

2 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM

Chemical

Core Earnings Variance Analysis

($ millions)

 

 

 

 

2005 2nd Quarter

 

$

225 

2005 1st Quarter

 

 

214 

 

 

$

11 

 

 

 

 

 

 

 

 

Sales Price

 

 

(13)

 

 

 

 

Sales Volume/Mix

 

 

12 

 

 

 

 

Operations/Manufacturing

 

 

10 

*

 

 

 

 

All Others

 

 

2 

 

 

 

 

TOTAL VARIANCE

 

$

11 

 

 

 

 

* Lower feedstock costs partially offset by higher energy costs

 

 

8

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Second Quarter Net Income (Loss)

Reported Income Comparison

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

Second

 

 

 

 

 

Quarter

 

Quarter

 

 

 

 

 

2005

 

2004

 

B / (W)

Oil & Gas

 

$

1,325 

 

$

980 

 

$

345 

Chemical

 

 

225 

 

 

92 

 

 

133 

Corporate

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(47)

 

 

(60)

 

 

13 

Other

 

 

73 

 

 

(44)

 

 

117 

Taxes

 

 

(44)

 

 

(384)

 

 

340 

Income from continuing operations

 

 

1,532 

 

 

584 

 

 

948 

Discontinued operations, net

 

 

4 

 

 

(3)

 

 

7 

Net Income

 

$

1,536 

 

$

581 

 

$

955 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

3.81 

 

$

1.48 

 

$

2.33 

Discontinued operations, net

 

 

0.01 

 

 

- 

 

 

0.01 

Net Income

 

$

3.82 

 

$

1.48 

 

$

2.34 

Worldwide Effective Tax Rate

 

 

3%

 

 

40%

 

 

37%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM

2005 Second Quarter Net Income (Loss)

Core Earnings Comparison

 

 

 

 

 

 

 

 

 

 

 

 

Second

 

Second

 

 

 

 

 

Quarter

 

Quarter

 

 

 

 

 

2005

 

2004

 

B / (W)

Oil & Gas

 

$

1,351 

 

$

980 

 

$

371 

Chemical

 

 

225 

 

 

92 

 

 

133 

Corporate

 

 

 

 

 

 

 

 

 

Interest expense, net

 

 

(46)

 

 

(60)

 

 

14 

Other

 

 

(67)

 

 

(44)

 

 

(23)

Taxes

 

 

(612)

 

 

(384)

 

 

(228)

Net Income

 

$

851 

 

$

584 

 

$

267 

Basic Earnings Per Common Share

 

$

2.12 

 

$

1.49 

 

$

0.63 

Worldwide Effective Tax Rate

 

 

42%

 

 

40%

 

 

-2%

 

 

9

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

Oil & Gas

Core Earnings Variance Analysis

($ millions)

 

 

 

 

2005 2nd Quarter

 

$

1,351 

2004 2nd Quarter

 

 

980 

 

 

$

371 

 

 

 

 

 

 

 

 

Sales Price

 

$

541 

 

 

 

 

Sales Volume/Mix

 

 

(12)

 

 

 

 

Exploration Expense

 

 

(71)

 

 

 

 

All Others

 

 

(87)

 

 

 

 

TOTAL VARIANCE

 

$

371 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM

Chemical

Core Earnings Variance Analysis

($ millions)

 

 

 

 

2005 2nd Quarter

 

$

225 

2004 2nd Quarter

 

 

92 

 

 

$

133 

 

 

 

 

 

 

 

 

Sales Price

 

 

189 

 

 

 

 

Sales Volume/Mix

 

 

(15)

 

 

 

 

Operations/Manufacturing

 

 

(48)

*

 

 

 

 

All Others

 

 

7 

 

 

 

 

TOTAL VARIANCE

 

$

133 

 

 

 

 

* Higher energy and feedstock costs

 

 

10

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

SUMMARY OF OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

 

 

2005

 

2004

 

2005

 

2004

NET PRODUCTION PER DAY:

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Crude Oil and Liquids (MBL)

 

 

 

 

 

 

 

 

California

 

75 

 

78 

 

76 

 

78 

Permian

 

156 

 

156 

 

152 

 

155 

Horn Mountain

 

11 

 

23 

 

14 

 

23 

Hugoton

 

3 

 

3 

 

3 

 

3 

Total

 

245 

 

260 

 

245 

 

259 

Natural Gas (MMCF)

 

 

 

 

 

 

 

 

California

 

240 

 

234 

 

240 

 

239 

Hugoton

 

133 

 

132 

 

131 

 

129 

Permian

 

166 

 

132 

 

156 

 

136 

Horn Mountain

 

9 

 

15 

 

11 

 

16 

Total

 

548 

 

260 

 

538 

 

520 

Latin America

 

 

 

 

 

 

 

 

Crude Oil (MBL)

 

 

 

 

 

 

 

 

Colombia

 

36 

 

39 

 

34 

 

37 

Ecuador

 

39 

 

47 

 

41 

 

45 

Total

 

75 

 

86 

 

75 

 

82 

Middle East

 

 

 

 

 

 

 

 

Crude Oil (MBL)

 

 

 

 

 

 

 

 

Oman

 

19 

 

12 

 

21 

 

12 

Qatar

 

43 

 

44 

 

43 

 

43 

Yemen

 

28 

 

30 

 

31 

 

35 

Total

 

90 

 

86 

 

95 

 

90 

Natural Gas (MMCF)

 

 

 

 

 

 

 

 

Oman

 

61 

 

56 

 

58 

 

33 

 

 

  

 

  

 

 

 

 

Other Eastern Hemisphere

 

 

 

 

 

 

 

 

Crude Oil (MBL)

 

 

 

 

 

 

 

 

Pakistan

 

6 

 

8 

 

6 

 

8 

Natural Gas (MMCF)

 

 

 

 

 

 

 

 

Pakistan

 

72 

 

73 

 

75 

 

74 

 

 

  

 

  

 

 

 

 

Barrels of Oil Equivalent (MBOE)

 

  

 

  

 

 

 

 

 

 

  

 

  

 

 

 

 

Subtital consolidated subsidiaries

 

530 

 

547 

 

533 

 

544 

Other interests

 

 

 

 

 

 

 

 

Colombia - minority interest

 

(5)

 

(5)

 

(4)

 

(4)

Russia - Occidental net interest

 

28 

 

31 

 

29 

 

30 

Yemen - Occidental net interest

 

2 

 

1 

 

2 

 

1 

Total worldwide production (MBOE)

 

555 

 

574 

 

560 

 

571 

 

 

11

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

SUMMARY OF OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

 

 

2005

 

2004

 

2005

 

2004

OIL & GAS:

 

 

 

 

 

 

 

 

PRICES

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

Crude Oil ($/BBL)

 

46.72 

 

35.44 

 

45.47 

 

34.02 

Natural Gas ($/MCF)

 

6.18 

 

4.90 

 

6.07 

 

4.95 

 

 

 

 

 

 

 

 

 

Latin America

 

 

 

 

 

 

 

 

Crude Oil ($/BBL)

 

42.09 

 

30.60 

 

40.99 

 

29.83 

 

 

 

 

 

 

 

 

 

Middle East

 

 

 

 

 

 

 

 

Crude Oil ($/BBL)

 

48.72 

 

34.51 

 

45.18 

 

32.18 

Natural Gas ($/MCF)

 

0.96 

 

0.97 

 

0.96 

 

0.97 

 

 

 

 

 

 

 

 

 

Other Eastern Hemisphere

 

 

 

 

 

 

 

 

Crude Oil ($/BBL)

 

46.84 

 

32.26 

 

42.76 

 

30.79 

Natural Gas ($/MCF)

 

2.28 

 

2.47 

 

2.25 

 

2.35 

 

 

 

 

 

 

 

 

 

Total Worldwide

 

 

 

 

 

 

 

 

Crude Oil ($/BBL)

 

45.41 

 

33.12 

 

43.53 

 

31.77 

Natural Gas ($/MCF)

 

5.16 

 

4.26 

 

5.02 

 

4.40 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

 

 

2005

 

2004

 

2005

 

2004

Exploration Expense

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$ 

84 

 

$ 

22 

 

$ 

111 

 

$ 

60 

Latin America

 

 

8 

 

 

2 

 

 

23 

 

 

3 

Middle East

 

 

4 

 

 

1 

 

 

5 

 

 

14 

Other Eastern Hemisphere

 

 

15 

 

 

15 

 

 

19 

 

 

17 

TOTAL

 

$ 

111 

 

$ 

40 

 

$ 

158 

 

$ 

94 

 

 

12

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

CHEMICALS

Volume (M Tons, except PVC Resins)

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

Chlorine

 

746 

 

740 

 

1,451 

 

1,446 

Caustic soda

 

768 

 

819 

 

1,482 

 

1,551 

Ethylene Dichloride

 

175 

 

100 

 

305 

 

222 

PVC Resins (millions of pounds)

 

985 

 

1,090 

 

2,010 

 

2,161 

 

CHEMICALS

Prices (Index)

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

Chlorine

 

2.65 

 

2.00 

 

2.60 

 

1.80 

Caustic soda

 

1.67 

 

0.61 

 

1.59 

 

0.66 

Ethylene Dichloride

 

1.56 

 

1.51 

 

1.65 

 

1.40 

PVC Resins

 

1.24 

 

1.06 

 

1.27 

 

1.00 

1987 through 1990 average price = 1.00

 

 

CHLORINE

OxyChem Commentary

•

As contract terms permitted, OxyChem fully implemented the $20 per ton price increase announced in February effective March 24th. No additional price increases were announced in the 2nd quarter.

•

The industry operating rate of 93% was negatively impacted by prolonged outages, both scheduled and unscheduled, inventory reductions in the vinyls chain and seasonal chlorine demand.

•

OxyChem anticipates an increase in industry operating rates in the 3rd quarter. The supply/demand balance is expected to tighten as seasonal demand for downstream products improves, including chlorine into the vinyls chain. However, any additional unplanned outages resulting from operating problems, weather or energy curtailments could further tighten the supply/demand balance.

•

Order control programs for chlorine are still in effect and are expected to remain for the balance of 2005 for OxyChem and other U.S. producers.

 

 

13

Investor Relations Supplemental Schedules

 


 

 

Influencing Factors:

Inventory reductions in the vinyls chain coupled with cooler, wet weather throughout most of the East and Midwest dampened domestic chlorine demand in the 2nd quarter. Although this lessened concerns over chlorine availability, several prolonged outages within the industry kept the supply/demand balance stable, thus preventing the threat of price erosion. Chlorine demand into the vinyls chain is expected to improve in the 3rd quarter.

 

CAUSTIC

OxyChem Commentary

•

Caustic soda demand improved over 1st quarter sales driven by the bleach, distribution and refining markets. Sales of liquid caustic soda are expected to further improve in the 3rd quarter as demand into the bleach market strengthens.

 

•

As contract terms permitted, OxyChem successfully implemented in the 2nd quarter the $40 DST price increase announced in February. An additional increase of $30 DST was announced in May to be implemented in the 3rd quarter. All other major U.S. producers have announced a similar increase. Market conditions are expected to support further price improvement as seasonal demand for caustic soda increases.

 

•

OxyChem and other U.S. producers remain on order control programs for liquid caustic soda. Order control is expected to continue in the 3rd quarter.

 

Influencing Factors:

Caustic soda demand is anticipated to remain robust in the 3rdquarter as seasonal demand into bleach peaks and the U.S. manufacturing sector shows continued signs of strength. As a result, market conditions are expected to remain favorable for future price improvement. However, the strength of the U.S. manufacturing sector and/or unseasonably cool temperatures throughout the U.S. could impact demand and future price improvement.

 

EDC

OxyChem Commentary

•

Export demand in the 2nd quarter was limited by planned and unplanned Asian VCM outages coupled with increased Chinese acetylene based VCM production. The lower EDC demand was partially offset by tighter EDC supply in the U.S.

•

EDC prices dropped significantly during the 2nd quarter. Spot prices declined from a 1st quarter peak of $500 - $520 per metric ton CIF Asia to $260 - $270 per metric ton CIF Asia.

 

 

14

Investor Relations Supplemental Schedules

 


 

 

Influencing Factors:

Prices for EDC in the Far East have stabilized after significant declines in the 2nd quarter. EDC prices are expected to rebound as VCM and PVC pricing improves. Continued VCM outages in Asia have unfavorably impacted the supply/demand balance for EDC. Spot export shipments are expected to be limited out of the U.S. in the 3rd quarter due to lower chlorine values versus other alternatives.

 

PVC/VCM

OxyChem Commentary

•

Inventory management and an outage at the Pasadena, Texas PVC plant in June contributed to a 2% decline in OxyChem’s PVC operating rate from the 1st quarter.

•

Mild domestic demand in the 2nd quarter resulted in reduced operating rates for PVC as producers and consumers operated with minimal inventories.

•

Domestic PVC resin prices were flat in both April and May, decreasing $0.01 per pound in June. July pricing is flat with June.

•

Westlake has restarted the Geismar VCM and PVC plants at 50% operating rates. It is expected that the plants will be brought up to capacity by January 2006. The Shintech Addis facility remains idle and is not expected to restart in 2005.

•

PVC resin export prices ended the quarter at $700 - $720 per metric ton CFR Southeast Asia. Exports for the 2nd quarter increased 60% versus the prior quarter.

•

VCM supply and demand was balanced in North America as most producers opted to reduce rates, driven by PVC reductions, rather than push VCM into the market at low values. Pemex resumed operation of their Pajaritos plant at reduced rates in late March and ran reasonably steady through the 2nd quarter.

•

Published VCM spot export prices decreased from $810 per metric ton FOB U.S. Gulf Coast to Latin America to $550 per metric ton by the end of the 2nd quarter. Asian spot prices ended the quarter at $540 per metric ton CFR, which is less than $340 per metric ton FOB U.S. Gulf Coast. There were no shipments from the U.S. to Asia in the 2nd quarter due to the unfavorable economics.

 

Influencing Factors:

Increased seasonal domestic demand will result in some margin improvement for VCM and PVC in the 3rdquarter. Inventory reductions, moderate demand and increased energy costs will support continued export price stability with some rebound expected.

 

 

15

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

SUMMARY OF OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter

 

Six Months

Capital Expenditures ($MM) 

 

2005

 

2004

 

2005

 

2004

Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

California

 

$ 

90 

 

$ 

83 

 

$ 

172 

 

$ 

144 

Permian

 

 

96 

 

 

63 

 

 

159 

 

 

125 

Other - U.S.

 

 

33 

 

 

8 

 

 

62 

 

 

12 

Latin America

 

 

48 

 

 

63 

 

 

99 

 

 

83 

Middle East / North Africa

 

 

191 

 

 

191 

 

 

464 

 

 

359 

Other Eastern Hemisphere

 

 

24 

 

 

10 

 

 

32 

 

 

21 

Chemicals

 

 

34 

 

 

40 

 

 

62 

 

 

56 

Corporate

 

 

2 

 

 

3 

 

 

4 

 

 

4 

TOTAL

 

$ 

518 

 

$ 

461 

 

$ 

1,054 

 

$ 

804 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, Depletion & 

 

Second Quarter

 

Six Months

Amortization of Assets ($MM) 

 

2005

 

2004

 

2005

 

2004

Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

Domestic

 

$ 

170 

 

$ 

157 

 

$ 

324 

 

$ 

313 

Latin America

 

 

26 

 

 

26 

 

 

51 

 

 

48 

Middle East

 

 

83 

 

 

65 

 

 

173 

 

 

134 

Other Eastern Hemisphere

 

 

10 

 

 

10 

 

 

20 

 

 

22 

Chemicals

 

 

62 

 

 

62 

 

 

121 

 

 

122 

Corporate

 

 

5 

 

 

4 

 

 

11 

 

 

9 

TOTAL

 

$ 

356 

 

$ 

324 

 

$ 

700 

 

$ 

648 

 

 

16

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

CORPORATE

($ millions)

 

 

 

 

 

 

 

 

 

30-Jun-05

 

31-Dec-04

 

 

 

 

 

 

 

CAPITALIZATION

 

 

 

 

 

 

 

 

 

 

 

 

 

Oxy Long-Term Debt (including current maturities)

 

$ 

3,360 

 

$ 

3,804 

 

 

 

 

 

 

 

Subsidiary Preferred Stock

 

 

75 

 

 

75 

 

 

 

 

 

 

 

Others

 

 

26 

 

 

26 

 

 

 

 

 

 

 

Total Debt

 

$ 

3,461 

 

$ 

3,905 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

$ 

12,706 

 

$ 

10,550 

 

 

 

 

 

 

 

Total Debt to Total Capitalization

 

 

21%

 

 

27%

 

 

17

Investor Relations Supplemental Schedules

 


 

 

See the investor relations supplemental schedules for the reconciliation of non-GAAP items.  Statements in this presentation that contain words such as "will", "expect" or "estimate", or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results.  Factors that could cause results to differ materially include, but are not limited to:  exploration risks, such as drilling of unsuccessful wells; global commodity pricing fluctuations and supply/demand considerations for oil, gas and chemicals; higher-than-expected costs; political risk; and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition, or disposition.  Occidental disclaims any obligation to update any forward-looking statements.  The United States Securities and Exchange Commission (SEC) permits oil and natural gas companies, in their filings with the SEC, to disclose only proved reserves demonstrated by actual production or conclusive formation tests to be economically producible under existing economic and operating conditions. We use certain terms in this presentation, such as probable, possible and recoverable reserves, that the SEC's guidelines strictly prohibit us from using in filings with the SEC.  U.S. investors are urged to consider carefully the disclosure in our Form 10-K, available through the following toll-free telephone number, 1-888-OXYPETE (1-888-699-7383) or on the Internet at http://www.oxy.com.  You also can obtain a copy from the SEC by calling 1-800-SEC-0330.

 

 

18