EX-99 5 ex993-20050207.htm EXHIBIT 99.3

EXHIBIT 99.3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Fourth Quarter

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

  

Core
Earnings

  

Oil & Gas

 

$

1,859

 

$

9

 

Hurricane insurance charge

  

$

1,868

  
                         

Chemical

 

 

165

  

 

6

  

Hurricane insurance charge

  

 

171

  
                         

Corporate

 

 

 

 

 

 

 

 

  

 

 

 

   Interest expense, net

  

 

(23

)

 

1

  

Debt purchase expense

 

 

(22

)

                         

   Other

  

 

(89

)

 

 

 

 

  

 

(89

)

                         

   Taxes

 

 

(764

)

 

(6

)

Tax effect of adjustments

  

 

(770

)

                   

Income from continuing operations

  

 

1,148

 

 

10

 

 

  

 

1,158

 

Discontinued operations, net of tax

 

 

4

 

 

(4

)

Discontinued operations, net

  

 

--

 

Net Income

 

$

1,152

  

$

6

  

 

  

$

1,158

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

2.83

  

 

 

 

 

 

$

2.86

  

Discontinued operations, net

 

 

0.01

  

 

 

 

 

  

 

--

  

Net Income

 

$

2.84

        

 

  

$

2.86

  

 

 

1

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 Fourth Quarter

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

1,179

 

 

 

 

 

 

$

1,179

 
                         

Chemical

 

 

125

 

 

 

 

 

 

 

125

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(53

)

 

 

 

 

 

 

(53

)

   Other

 

 

(11

)

 

(121

)

Gain on Lyondell stock issuance 

 

 

(117

)

 

  

 

 

 

 

15

 

Hurricane Insurance Charge

  

 

 

 

   Taxes

 

 

(466

)

 

(27

)

IRS settlements

  

 

(454

)

       

39

  

Tax effect of adjustments

      

Income from continuing operations

 

 

774

 

 

(94

)

 

  

 

680

 

Discontinued operations, net of tax

 

(32

)

32

 

Discontinued operations, net

 

--

  

Net Income

 

$

742

 

$

(62

)

 

  

$

680

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

1.94

  

 

 

 

 

  

$

1.70

  

Discontinued operations, net of tax

 

(0.08

)

    

 

 

 

--

 

Net Income

 

$

1.86

        

 

 

$

1.70

  

 

 

2

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Twelve Months

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

6,293

 

$

26

 

Contract settlement

 

$

6,337

 

 

 

 

 

 

 

18

  

Hurricane insurance charge

 

 

 

 
                         

Chemical

 

 

607

 

 

159

 

Write-off of plants

 

 

777

 

 

 

 

 

 

 

11

  

Hurricane insurance charge

 

 

 

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(201

)

 

42

 

Debt purchase expense

 

 

(159

)

                         

   Other

 

 

593

 

 

(140

)

Sale of Lyondell shares

 

 

(246

)

 

 

 

 

 

 

(726

)

Sale of Premcor / Valero shares

 

 

 

 

 

 

 

 

 

 

15

 

Equity investment impairment

 

 

 

 

 

 

 

 

 

 

2

 

Equity investment hurricane

 

 

 

 

 

 

 

 

 

 

 

 

   insurance charge

 

 

 

 

 

 

 

 

 

 

10

 

Hurricane insurance charge

 

 

 

 
                         

   Taxes

 

 

(2,020

)

 

219

 

Tax effect of adjustments

 

 

(2,745

)

 

 

 

 

 

 

(335

)

Tax reserve reversal

 

 

 

 

 

 

 

 

 

 

(619

)

Settlement of federal tax issue

 

 

 

 
       

10

 

State tax charge

     

Income from continuing operations

 

 

5,272

 

 

(1,308

)

 

 

 

3,964

 

Discontinued operations, net

 

 

6

 

 

(6

)

Discontinued operations, net

 

 

--

 

Cumulative effect of acct changes, net

 

3

 

(3

)

Cumulative effect of acct chg

 

--

 

Net Income

 

$

5,281

 

$

(1,317

)

 

 

$

3,964

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

13.07

 

 

 

 

 

 

$

9.83

 

Discontinued operations, net

 

 

0.01

  

 

 

 

 

 

 

--

 

Cumulative effect of acct changes, net

 

0.01

     

 

 

 

--

 

Net Income

 

$

13.09

       

 

 

$

9.83

 

 

 

3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 Twelve Months

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

4,290

 

 

 

 

 

 

$

4,290

 
                         

Chemical

 

 

414

 

 

 

 

 

 

 

414

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(240

)

 

11

 

Trust preferred redemption

 

 

(229

)

   Other

 

 

(150

)

 

(121

)

Gain on Lyondell stock issuance

  

 

(256

)

 

  

 

 

 

 

15

 

Hurricane insurance charge

  

 

 

 

   Taxes

 

 

(1,708

)

 

(47

)

IRS settlements

 

 

(1,720

)

 

 

 

 

 

 

35

 

Tax effects of adjustments

 

 

 

 

                   

Income from continuing operations

 

 

2,606

 

 

(107

)

 

 

 

2,499

 

Discontinued operations, net of tax

 

(38

)

38

 

Discontinued operations, net

 

--

 

Net Income

 

$

2,568

 

$

(69

)

 

 

$

2,499

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

6.59

 

 

 

 

 

 

$

6.32

 

Discontinued operations, net of tax

 

(0.10

)

    

 

 

 

--

 

Net Income

 

$

6.49

       

 

 

$

6.32

 

 

 

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)

 

Fourth Quarter

  

Twelve Months

  

 

 

2005

 

2004

 

2005

 

2004

 

Oil & Gas

 

 

 

 

 

 

 

 

 

  Exploration impairments

 

(32

)

(42

)

(118

)

(101

)

  Insurance and litigation reserves

  

--

 

(6

)

--

 

(6

)

 

 

 

 

 

 

 

 

 

 

Chemicals

 

 

 

 

 

 

 

 

 

  Production process write-off

  

--

 

(12

)

--

 

(12

)

  Insurance and litigation reserves

  

--

 

(2

)

--

 

(2

)

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

  Environmental remediation

 

(33

)

(59

)

(62

)

(59

)

  Insurance and litigation reserves

  

--

 

(16

)

--

 

(16

)

 

 

5

Investor Relations Supplemental Schedules

 


 

OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate

 

 

 

QUARTERLY

 

YEAR-TO-DATE

 

 
REPORTED INCOME

 

2005
QTR 4

 

2005
QTR 3

 

2004
QTR 4

 

2005
12 Months

 

2004
12 Months

 

Oil & Gas (a)

 

1,859

 

1,760

 

1,179

 

6,293

 

4,290

 

Chemicals

 

165

 

3

 

125

 

607

 

414

 

Corporate & other

 

(112

)

590

 

(64

)

392

 

(390

)

  Pre-tax income

 

1,912

 

2,353

 

1,240

 

7,292

 

4,314

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

  Federal and state

 

393

 

185

 

261

 

671

 

946

 

  Foreign (a)

 

371

 

426

 

205

 

1,349

 

762

 

  Total

 

764

 

611

 

466

 

2,020

 

1,708

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,148

 

1,742

 

774

 

5,272

 

2,606

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

40%

 

26%

 

38%

 

28%

 

40%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
CORE INCOME

 

2005
QTR 4

 

2005
QTR 3

 

2004
QTR 4

 

2005
12 Months

 

2004
12 Months

 

Oil & Gas (a)

 

1,868

 

1,769

 

1,179

 

6,337

 

4,290

 

Chemicals

 

171

 

167

 

125

 

777

 

414

 

Corporate & other

 

(111

)

(79

)

(170

)

(405

)

(485

)

  Pre-tax income

 

1,928

 

1,857

 

1,134

 

6,709

 

4,219

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

  Federal and state

 

399

 

342

 

249

 

1,396

 

958

 

  Foreign (a)

 

371

 

426

 

205

 

1,349

 

762

 

  Total

 

770

 

768

 

454

 

2,745

 

1,720

 

 

 

 

 

 

 

 

 

 

 

 

 

Core income

 

1,158

 

1,089

 

680

 

3,964

 

2,499

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

40%

 

41%

 

40%

 

41%

 

41%

 

 

 

(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
QTR 4

 

2005
QTR 3

 

2004
QTR 4

 

2005
12 Months

 

2004
12 Months

 

 

 

211

 

263

 

143

 

887

 

525

 

 

 

6

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
2005 Fourth Quarter Net Income (Loss)
Reported Income Comparison

                     

 

 

Fourth
Quarter
2005

 

Third
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,859

 

$

1,760

 

$

99

 

Chemical

 

 

165

 

 

3

 

 

162

 

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(23

)

 

(70

)

 

47

 

  Other

 

 

(89

)

 

660

 

 

(749

)

  Taxes

 

(764

)

(611

)

(153

)

Income from continuing operations

 

 

1,148

 

 

1,742

 

 

(594

)

Discontinuted operations, net

 

 

4

 

 

2

 

 

2

 

Cumulative effect of acct changes, net

 

--

 

3

 

(3

)

Net Income

 

$

1,152

 

$

1,747

 

$

(595

)

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

  Income from continuing operations

 

$

2.83

 

$

4.31

 

$

(1.48

)

  Discontinued operations, net

 

 

0.01

 

 

--

 

 

0.01

 

  Cumulative effect of acct changes, net

 

--

 

0.01

 

(0.01

)

  Net Income

 

$

2.84

 

$

4.32

 

$

(1.48

)

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

40%

 

 

26%

 

 

-14%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM
2005 Fourth Quarter Net Income (Loss)
Core Earnings Comparison

                     

 

 

Fourth
Quarter
2005

 

Third
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,868

 

$

1,769

 

$

99

 

Chemical

 

 

171

 

 

167

 

 

4

 

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(22

)

 

(40

)

 

18

 

  Other

 

 

(89

)

 

(39

)

 

(50

)

  Taxes

 

(770

)

(768

)

(2

)

Net Income

 

$

1,158

 

$

1,089

 

$

69

 

 

 

 

 

 

 

 

 

 

 

 

Core Earnings Per Common Share

 

$

2.86

 

$

2.69

 

$

0.17

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

40%

 

 

41%

 

 

1%

 

 

 

7

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
Oil & Gas
Core Earnings Variance Analysis
($ millions)

         

2005 4th Quarter

 

$

1,868

 

2005 3rd Quarter

 

1,769

 

 

 

$

99

 

         
         

Sales Price

 

$

146

 

         

Sales Volume/Mix

 

 

98

 

         

Exploration Expense

 

 

(68

)

         

All Others

 

 

(77

)

         

TOTAL VARIANCE

 

$

99

 

         

 

         

OCCIDENTAL PETROLEUM
Chemical
Core Earnings Variance Analysis
($ millions)

         

2005 4th Quarter

 

$

171

 

2005 3rd Quarter

 

167

 

 

 

$

4

 

         
         

Sales Price

 

 

127

 

         

Sales Volume/Mix

 

 

(2

)

         

Operations/Manufacturing

 

 

(131

) *

         

All Others

 

 

10

 

         

TOTAL VARIANCE

 

$

4

 

 

* Higher feedstock and energy costs

 

 

8

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
2005 Fourth Quarter Net Income (Loss)
Reported Income Comparison

                     

 

 

Fourth
Quarter
2005

 

Fourth
Quarter
2004

 

B / (W)

 

Oil & Gas

 

$

1,859

 

$

1,179

 

$

680

 

Chemical

 

 

165

 

 

125

 

 

40

 

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(23

)

 

(53

)

 

30

 

  Other

 

 

(89

)

 

(11

)

 

(78

)

  Taxes

 

(764

)

(466

)

(298

)

Income from continuing operations

 

 

1,148

 

 

774

 

 

374

 

Discontinued operations, net

 

4

 

(32

)

36

 

Net Income

 

$

1,152

 

$

742

 

$

410

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

  Income from continuing operations

 

$

2.83

 

$

1.94

 

$

0.89

 

  Discontinued operations, net 

 

0.01

 

(0.08

)

0.09

 

  Net Income

 

$

2.84

 

$

1.86

 

$

0.98

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

40%

 

 

38%

 

 

-2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OCCIDENTAL PETROLEUM
2005 Fourth Quarter Net Income (Loss)
Core Earnings Comparison

                     

 

 

Fourth
Quarter
2005

 

Fourth
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,868

 

$

1,179

 

$

689

 

Chemical

 

 

171

 

 

125

 

 

46

 

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(22

)

 

(53

)

 

31

 

  Other

 

 

(89

)

 

(117

)

 

28

 

  Taxes

 

(770

)

(454

)

(316

)

Net Income

 

$

1,158

 

$

680

 

$

478

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

2.86

 

$

1.70

 

$

1.16

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

40%

 

 

40%

 

 

0%

 

 

 

9

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
Oil & Gas
Core Earnings Variance Analysis
($ millions)

         

2005 4th Quarter

 

$

1,868

 

2004 4th Quarter

 

1,179

 

 

 

$

689

 

         
         

Sales Price

 

$

759

 

         

Sales Volume/Mix

 

 

148

 

         

Exploration Expense

 

 

(36

)

         

All Others

 

 

(182

)

         

TOTAL VARIANCE

 

$

689

 

         

 

         

OCCIDENTAL PETROLEUM
Chemical
Core Earnings Variance Analysis
($ millions)

         

2005 4th Quarter

 

$

171

 

2004 4th Quarter

 

125

 

 

 

$

46

 

         
         

Sales Price

 

$

193

 

         

Sales Volume/Mix

 

 

11

 

         

Operations/Manufacturing

 

 

(182

) *

         

All Others

 

 

24

 

         

TOTAL VARIANCE

 

$

46

 

 

* Higher feedstock and energy costs

 

 

10

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2005

 

2004

 

2005

 

2004

 

NET PRODUCTION PER DAY:

 

 

 

 

 

 

 

 

 

  United States

 

 

 

 

 

 

 

 

 

    Crude Oil and Liquids (MBL)

 

 

 

 

 

 

 

 

 

California

 

78

 

81

 

76

 

78

 

Permian

 

170

 

152

 

161

 

154

 

Horn Mountain

 

14

 

13

 

13

 

19

 

Hugoton  and other

  

3

 

3

 

3

 

3

 

Total

 

265

 

249

 

253

 

254

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

California

 

247

 

242

 

242

 

237

 

Hugoton  and other

  

139

 

125

 

133

 

127

 

Permian

 

180

 

125

 

170

 

130

 

Horn Mountain

 

6

 

7

 

8

 

13

 

Total

  

572

 

499

 

553

 

507

 

  Latin America

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Colombia

 

36

 

37

 

36

 

37

 

Ecuador

 

43

 

44

 

42

 

46

 

Total

  

79

 

81

 

78

 

83

 

  Middle East and North Africa

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Oman

 

13

 

13

 

17

 

13

 

Qatar

 

42

 

48

 

42

 

45

 

Yemen

 

24

 

30

 

28

 

32

 

Libya

 

24

 

--

 

8

 

--

 

Total

  

103

 

91

 

95

 

90

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

Oman

 

25

 

66

 

44

 

55

 

 

 

 

 

 

 

 

 

 

 

  Other Eastern Hemisphere

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Pakistan

 

5

 

6

 

5

 

7

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

Pakistan

 

77

 

79

 

77

 

75

 

 

 

 

 

 

 

 

 

 

 

  Barrels of Oil Equivalent (MBOE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Subtotal consolidated subsidiaries

 

564

 

534

 

543

 

540

 

  Other interests

 

 

 

 

 

 

 

 

 

    Colombia - minority interest

 

(4

)

(5

)

(4

)

(4

)

    Russia - Occidental net interest

 

28

 

27

 

28

 

29

 

    Yemen - Occidental net interest

 

1

 

2

 

1

 

1

 

  Total worldwide production (MBOE)

 

589

 

558

 

568

 

566

 

 

 

11

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2005

 

2004

 

2005

 

2004

 

OIL & GAS:

 

 

 

 

 

 

 

 

 

  PRICES

 

 

 

 

 

 

 

 

 

    United States

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

52.93

 

42.76

 

50.21

 

37.72

 

    Natural Gas ($/MCF)

 

9.81

 

5.65

 

7.11

 

5.35

 

 

 

 

 

 

 

 

 

 

 

    Latin America

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

44.84

 

36.47

 

45.43

 

33.09

 

 

 

 

 

 

 

 

 

 

 

    Middle East / North Africa

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

53.08

 

37.44

 

49.88

 

34.88

 

    Natural Gas ($/MCF)

 

0.97

 

0.96

 

0.96

 

0.97

 

 

 

 

 

 

 

 

 

 

 

    Other Eastern Hemisphere

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

51.36

 

37.09

 

46.84

 

33.13

 

    Natural Gas ($/MCF)

 

2.50

 

2.01

 

2.44

 

2.25

 

 

 

 

 

 

 

 

 

 

 

    Total Worldwide

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

50.50

 

39.11

 

48.20

 

35.09

 

    Natural Gas ($/MCF)

 

8.37

 

4.68

 

5.98

 

4.56

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2005

 

2004

 

2005

 

2004

 

Exploration Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

    Domestic

 

$

32

 

$

53

 

$

163

 

$

136

 

    Latin America

 

 

37

 

 

19

 

 

65

 

 

23

 

    Middle East / North Africa

 

 

38

 

 

1

 

 

47

 

 

16

 

    Othern Eastern Hemisphere

 

 

17

 

 

15

 

 

62

 

 

44

 

TOTAL

 

$

124

 

$

88

 

$

337

 

$

219

 

 

 

12

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
CHEMICALS
Volume (M Tons, except PVC Resins)

                   

 

 

Fourth Quarter

 

Twelve Months

 

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

 

  Chlorine

 

835

 

716

 

3,118

 

2,892

 

  Caustic Soda

 

879

 

763

 

3,178

 

3,109

 

  Ethylene Dichlorine

 

192

 

134

 

682

 

458

 

  PVC Resins (millions of pounds)

 

885

 

1,003

 

3,977

 

4,208

 

 

 

 

 

 

 

 

 

 

 

 

 

CHEMICALS
Prices (Index)

                   

 

 

Fourth Quarter

 

Twelve Months

 

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

 

  Chlorine

 

2.70

 

2.36

 

2.65

 

2.05

 

  Caustic Soda

 

1.83

 

1.18

 

1.69

 

0.84

 

  Ethylene Dichlorine

 

1.31

 

1.75

 

1.44

 

1.56

 

  PVC Resins

 

1.60

 

1.20

 

1.32

 

1.08

 

 

 

1987 through 1990 average price = 1.00

 

 

CHLORINE

OxyChem Commentary

•

Industry operating problems due to the Gulf Coast hurricanes resulted in a modest improvement in chlorine prices during the 4th quarter. The significant rise in energy prices provided further impetus.

   

•

4th quarter industry operating rates reflect prolonged mechanical outages and reduced chlorine consumption particularly into the vinyl's chain. Limited availability of ethylene coupled with aggressive year-end inventory reductions negatively affected vinyl production.

   

•

Lower industry operating rates are expected to continue into the 1st quarter due to normal seasonality.

   

•

In the latter portion of the 1st quarter, OxyChem anticipates industry operating rates will improve as seasonal demand increases and Gulf Coast rebuilding efforts begin to impact sales.

 

 

13

Investor Relations Supplemental Schedules

 


 

 

Influencing Factors:

Chlorine availability has greatly improved entering the 1st quarter 2006 as nearly all of the issues related to the hurricanes have been corrected. The return to pre-hurricane operational status for some large chlorine consumers in the U.S. Gulf Coast is not expected until late in the 1st quarter. Increased chlorine demand, influenced by the rebuilding efforts along the Gulf Coast, is anticipated in the latter portion of the 1st quarter, tightening the supply/demand balance as the year progresses.

 

CAUSTIC

OxyChem Commentary

•

OxyChem's caustic soda demand improved marginally in the 4th quarter as some Gulf Coast producers encountered production problems related to the hurricanes. Sales volume is expected to weaken in the 1st quarter due to normal seasonal weakness.

   

•

4th quarter liquid caustic soda pricing improved as a result of implementation of two price increases announced in the 3rd quarter for 4th quarter. The first increase of $50 per dry short ton (DST) was effective September 28 with a second increase of $75 per DST to be implemented October 28 as contract terms allow. OxyChem expects implementation of the second price increase to continue into the 1st quarter 2006. A third increase announced in late October is not expected to be implemented at this time.

   

•

Alumina pricing for the first half of 2006 has settled for North American caustic soda producers at $400 DMT representing an increase of $65 DMT over the alumina price for the second half of 2005.

   

•

Order control programs for liquid caustic soda remained in effect through the 4th quarter and are expected to continue into the 1st quarter of 2006.

 

Influencing Factors:

The supply of liquid caustic soda along the U.S. Gulf Coast gradually improved in the 4th quarter. Caustic soda availability is expected to increase in the 1st quarter 2006. The increasing supply coupled with the normal seasonal weakness in demand could exert some pressure on 1st quarter pricing.

 

EDC

OxyChem Commentary

•

Although there was slight improvement in market EDC prices during the 4th quarter, volume from the U.S. was limited to contract shipments due to poor economics and availability of ethylene due to the hurricanes.

•

EDC prices ended the 4th quarter at $310-$330 per metric ton CFR Asia.

 

 

14

Investor Relations Supplemental Schedules

 


 

 

•

At the end of the 4th quarter, EDC balances were long and market prices were decreasing moving into January.

 

Influencing Factors:

Demand for U.S. EDC exports will remain limited due to acetylene based VCM production in China. Furthermore, continued higher ethylene costs and low EDC prices will limit spot export volumes from the U.S. in 1st quarter 2006.

 

PVC/VCM

OxyChem Commentary

•

Domestic PVC sales volumes remained strong through the first half of the 4th quarter and then began to moderate as the quarter progessed. The 4th quarter ended with seasonally lower sales as buyers reacted to the December price decline and aggressively managed year-end inventory.

   

•

Due to the production impact of Hurricane Rita, OxyVinyls declared Force Majeure in the PVC and VCM businesses effective September 23, 2005. The declaration was lifted December 15 as operations returned to normal.

   

•

OxyVinyls' PVC operating rates are lower than industry in the 4th quarter due to a scheduled fourteen day outage at the Pasadena, Texas facility.

   

•

Domestic PVC resin prices increased $0.12 per pound in October, remained flat in November and then decreased $0.02 per pound in December.

   

•

PVC resin export prices ended the quarter at $700-$720 per metric ton CFR Southeast Asia.

   

•

The U.S. export contract VCM price to Latin America ended the quarter at $900 per metric ton FOB U.S. Gulf Coast. The low spot price ended at $800 per metric ton FOB U.S. Gulf Coast.

   

•

Asian VCM prices ended the quarter at $550 per metric ton CFR. With high freight rates and ethylene cost, this price was not economical for U.S. producers. For the first time, shipments were booked from Asia to Colombia for January delivery at $775 per metric ton CFR.

 

Influencing Factors:

PVC demand is expected to remain seasonally slow as we enter the 1st quarter 2006. Slower demand coupled with potentially lower feedstock costs could exert pressure on PVC resin prices. Vinyls demand will gradually improve as the 1st quarter progresses due to the beginning of the spring construction season and Gulf Coast rebuilding efforts. VCM balances could become tighter towards the end of the 1st quarter as PVC demand improves and previously announced VCM capacity is shut down.

 

 

15

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

Capital Expenditures ($MM)

 

2005

 

2004

 

2005

 

2004

 

  Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

 

    California

 

$

110

 

$

84

 

$

380

 

$

315

 

    Permian

 

 

137

 

 

83

 

 

408

 

 

289

 

    Other - U.S.

 

 

70

 

 

25

 

 

183

 

 

55

 

    Latin America

 

 

53

 

 

57

 

 

197

 

 

180

 

    Middle East / North Africa

 

 

292

 

 

218

 

 

982

 

 

768

 

    Other Eastern Hemisphere

 

 

14

 

 

14

 

 

86

 

 

42

 

  Chemicals

 

 

79

 

 

60

 

 

173

 

 

155

 

  Corporate

 

 

7

 

 

32

 

 

14

 

 

39

 

TOTAL

 

$

762

 

$

573

 

$

2,423

 

$

1,843

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, Depletion &

 

Fourth Quarter

 

Twelve Months

 

  Amortization of Assets ($MM)

 

2005

 

2004

 

2005

 

2004

 

  Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

 

    Domestic

 

$

199

 

$

156

 

$

707

 

$

622

 

    Latin America

 

 

40

 

 

24

 

 

118

 

 

96

 

    Middle East / North Africa

 

 

90

 

 

75

 

 

347

 

 

276

 

    Other Eastern Hemisphere

 

 

12

 

 

12

 

 

42

 

 

47

 

  Chemicals

 

 

64

 

 

61

 

 

251

 

 

243

 

  Corporate

 

 

4

 

 

6

 

 

20

 

 

19

 

TOTAL

 

$

409

 

$

334

 

$

1,485

 

$

1,303

 

 

 

16

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
CORPORATE
($ millions)

 

 

31-Dec-05

 

31-Dec-04

CAPITALIZATION

 

 

 

 

 

 

Oxy Long-Term Debt (including current maturities)

 

$

2,919

 

$

3,804

Subsidiary Preferred Stock

 

 

75

 

 

75

Others

 

 

25

 

 

26

Total Debt

 

$

3,019

 

$

3,905

EQUITY

 

$

15,032

 

$

10,550

Total Debt to Total Capitalization

 

 

17%

 

 

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