OCCIDENTAL PETROLEUM CORPORATIONVicki A. Hollub

President & CEOUBS Global Oil and Gas Conference 2016

May 25, 2016

Vicki A. Hollub

Large Integrated MajorsCompany Market Cap ($B)XOM $372RDS $197CVX $188TOT $120BP $98ENI $55

Characteristics• Low or no growth• Higher returns• Stronger B/S; lower risk• Free cash flow• Consistent dividend growth

Why own Oxy?

Independent E&PsCompany Market Cap ($B)COP $54EOG $45PXD $27APC $25APA $22DVN $18

Characteristics• Generally higher growth• Lower returns• Weaker B/S; higher risk• Little or no free cash flow• Little or no dividends• Moving from gassy to oily

Oxy has positive elements of both groups, appealing to investors who seek a combination of moderate growth, above average returns and consistent dividend growth.

Oxy Uniquely

Positioned

$57 billion

2Updated as of 5/24/2016

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Keys to Success

Balance Sheet Strength• Ended 1Q16 with $3.2 Billion

cash• Debt of $7.6 Billion (24%

debt to capitalization ratio)

Diverse Portfolio• Long life cash flow assets• Significant growth potential

• 5% – 8 % long-term• Flexibility to ramp activity

up or down depending on market conditions

Talent Optimization• Maintain and continue to

develop staff• Increase use of advanced

technology and data analytics

Returns-Focused Strategy• Invest in projects that

generate long-term value with returns above cost of capital • Domestic +15% / Intern. +20%

• Leverage fast growth shale with low-decline EOR

Cash Flow Priorities

1. Base/Maintenance Capital

2. Dividends

3. Growth Capital

4. Share Repurchase

5. Acquisitions

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History Of Returning Cash To Shareholders

5

Period ending 2015 Cash DividendsShare

Repurchases Combined

3 – years $6.0 $4.0 $10.1

5 – years $9.6 $4.9 $14.5

10 – years $14.2 $9.1 $23.3

($ in Billions)

– Additionally, over the 10 years ending 2015:• We reinvested $54 billion of capital in the business;• We made cash acquisitions of $25 billion;• Our long-term debt increased by only $5.5 billion.

– We spun off California Resources Corp. to Oxy shareholders in 2014 valued at ~$2.3 billion.

Oil and Gas Focus Areas

Latin America

• Leading position in the Permian Basin.

• Permian Resources is a growth driver.

• Al Hosn Project, Oman and Qatar.

• Additional opportunities for growth with partner countries.

• Highest margin operations in Colombia.

• Additional opportunities for moderate growth with partner.

Oxy will be positioned to grow

• Oil production• Earnings & Cash Flow

per share• ROCE• Dividend stream

OxyChemHigh FCF, moderate growth business.

Oxy MidstreamIntegrated pipeline and marketing business to maximize realizations.

Oxy Runs A Focused Business

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MENA

United States

7

~$40.00

2014 2015 2016E

Total Spend per Barrel = Capital Spending + G&A + All Operating Costs

Global Oil & Gas Sales Volumes

• Internal performance metric to focus on operational efficiency, especially in consideration of the sharp decline in commodity prices.

• Portion of senior management’s incentive compensation is directly aligned with this performance metric

• Focuses on efficiency, financial returns, and free cash flow generation.

• Designed to help manage the reduction in overall spending while rewarding production growth.

Total Spend Per Barrel

8

$13.58

$12.28 $11.86

2015 4Q15 1Q16

Ongoing Domestic Production Costs($/boe)

Overhead (SG&A)($ millions)

$1,503

$1,270

~$1,150

2014 2015 2016Target

Improved Cost Structure

Maintenance Sustaining Growth

2015 2016E

$5.6

$2.8 - $3.0

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2016 Capital Budget($ in bln) • Carefully reduce activity

levels without harming the strong progress on growth prospects

• Fund only those opportunities that exceed hurdle rates of return

• 2016 plan approximates expected cash from operations at around current prices

2016 Capital Outlook

• Multiple long-term investments to drive cash flow and earnings growth– Al Hosn

– Ethylene cracker JV

– Ingleside terminal

– Gas processing

• Capital spending will continue to decline and cash flows and earnings expected to grow as projects start-up.

• Increased flexibility on capital budget in 2016 and 2017

Committed Project Capital($ in millions)

10

$1,300

$800

$500

$100

2014 2015 2016E 2017E

Committed Project Capital Declining

EOR Business• 2015 Production - 145 MBOEPD• 1 million net acres• 1.9 Billion BOE remaining in reserves

and resourcesResources (Unconventional)• 2015 Production – 110 BMOEPD• 1.5 million net acres• 8,500 identified well locationsMidstream• 12 processing plants• 1,900 miles of pipeline

– CO2 pipelines– Oil infrastructure and pipelines– Marketing business

Permian Basin Is The Core Domestic Asset

Oxy Acreage

Oil Pipelines

CO2 Pipelines

11

Cumulative % of total 3.1 million

BOEPD

Oxy is the Largest Permian Basin Producer

12Source: Wood Mackenzie, 9/23/15, Company Net Working Interest Production Rates

-

50

100

150

200

250

300

350

NET

MB

OEP

D O

PER

ATED

PR

OD

UC

TIO

N Gas Liquids Average

10% 50% 75%

Given the current oil price environment, we will focus on investment to achieve four core goals:

Accelerate geoscience, characterization and modeling programs to enhance recovery, productivity and field economic returns

Minimize base decline and set up major growth programs in both Resources and EOR segments

Focus resources on game changing technologies and applications

Accelerate continued improvements in execution and cost

Expect to operate 4 - 5 rigs in the Permian over the remainder of the year

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2016 Permian Strategy

• 1.5 million net acre position

• Shorter cycle – faster growth

• Significant improvements in capital execution efficiency and reduction in operating expenses

• Will run 2-4 drilling rigs in development areas– Maintain momentum with

efficiency improvements– Continue to optimize ultimate

recoveries• Integrate seismic with data

analytics from producing wells to further evaluate inventory

Permian Resources Summary

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2016 Focus Areas

• Total of ~8,500 locations in horizontal inventory

• ~3,400 total locations economic at less than $60 / barrel which is an increase of approximately 700 locations from previous version

• ~350 locations economic below $40 / barrel

Continuing to lower economic hurdle points through reservoir characterization and optimization, improved productivity, reduced well costs, and faster time to market

Drilling Inventory Based on Q4 Costs

Better Well Productivity and

Lower Cost

4%

14%

40%

48%

60%

100%

Permian Resources – Drilling Inventory

15

16

• Total production grew 31% year-over-year to 128 MBOED.

– Oil production grew 35% year-over-year to 84 MBOD.

• We have leveraged and extended our industry leading practices from our EOR business to drive improvements in base management to minimize decline.

6475

110118

128

35 43 71 76 84

2013 2014 2015 4Q15 1Q16 2Q16EProduction (MBOED)

Oil NGL Gas

Permian Resources Production

Completion optimization efforts have significantly increased value

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• Increased proppant to 1,500 lbs/ft

− Testing up to 2,000 lbs/ft

• Evaluating cluster spacing and fluid design

• Monitoring cumulative production results of

recently drilled extended laterals

• Preparing to transition to produced water base

fluid in development areas to decrease costs82% Oil

Offsetting increased completion costs with continued drilling efficiencies

New Design – 4 Wells 78% Oil

Old Design – 8 Wells 83% Oil

• Decreased drilling cost/lateral ft by greater than 20% from 2015

• Current drilling, completion and hookup cost $5.9mm

• Expect to realize continued savings - 2H 2016 target well cost $5.5mm

Southeast New Mexico Recent Performance

DR

ILLI

NG

DAY

S 4337

20 19 17 1913

2014 1Q15 2Q15 3Q15 4Q15 1Q16 Best

$5.3$2.9 $2.7

$5.6

$3.4 $2.7

2014 Current Best

DrillingCompletions

$10.9

$6.3$5.4

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Permian Resources – Manufacturing ModeW

ELL

CO

ST $

MM

Delaware Wolfcamp A 4,500’ HZ

$3.7$2.3 $1.9

$5.5

$3.8 $3.4

2014 Current Best

DrillingCompletions

$9.2

$6.1$5.3

WEL

L C

OST

$M

M

East Midland Wolfcamp A 7,500’ HZ

46

3120 18 17 16

11

2014 1Q15 2Q15 3Q15 4Q15 1Q16 Best

DR

ILLI

NG

DAY

S

• Continued focus on reducing field operating costs during 2016

− Downhole expense $/boe reduced 36% from Q1 2015

− Company operated operating expense down ~37% ($/boe) from Q1 2015

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$13.02

$11.41 $10.87

$9.74 $8.72

$-

$5.00

$10.00

$15.00

1Q15 2Q15 3Q15 4Q15 1Q16

Permian Resources Opex/BOE

Surface Downhole Supports Energy Other

Permian Resources Continued Opex Reduction

• 1.0 million net acres

• Shift more capital to longer-cycle EOR to take advantage of lower cost of materials and services

• Inventory includes projects that have F&D costs of $3-$12/BOE

• Incremental production will come on line in 6-18 months after the start of CO2 injection

• Debottlenecking and bolt-on equipment to existing infrastructure will increase CO2injection capacity by 25% over the next 5 years

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Permian EOR Strategy

CO2 Supply & Processing

21

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0 5 10 15 20 25 30 35 40

Number of Projects

ChevronApache

Kinder Morgan

Exxon

Occidental

Size of bubble = CO2 EOR Production VolumeU.S. CO2 EOR Projects

Num

ber o

f Inj

ectio

n W

ells

DenburyAnadarko

Hess

EOR Survey

• Inject 1.9 billion cubic feet a day• Operate 31 CO2 EOR projects

World Leader in CO2 Enhanced Oil Recovery

Source: Oil & Gas Journal 2012 Biennial EOR Survey

Permian EOR can operate at cash costs as low as $22 per BOE

Sensitive to O&G Prices Partially Discretionary

$14.1

$4.7

$4.7

$4.0

$2.7

$0

$5

$10

$15

$20

$25

$30

$35

Well, SurfMaint

Injectant Energy Taxes SG&A

$ / B

OE

2015 Permian EOR Cost Structure$55 WTI, $3.00 NYMEX

$10.8

$4.0

$2.2$3.2

$1.8

$0

$5

$10

$15

$20

$25

$30

$35

Well, SurfMaint

Injectant Energy Taxes SG&A

$ / B

OE

2015 Permian EOR Cost Structure$35 WTI, $2.00 NYMEX

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Permian EOR Cost Structure

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• The ROZ development is a vertical expansion of the CO2 flooded interval. • Utilize work-over rigs to drill the extra depth into additional CO2 floodable sections of

the reservoir. • The ROZ underlies most of our major EOR properties with current projects in South

Hobbs and West Seminole and can be developed between $3 and $7 per BOE.

ResidualOil Zone

Main OilColumn

GeologicSeal

Water Zone

OriginalProducer

DeepenedROZ

Producer

OriginalInjector New ROZ

Injector

DeepenedROZ

Injector

Producing OilWater Contact

Residual Oil Zone Development

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Middle East Summary

OmanOman

UAEUAE

Focus Areas

• Reduced footprint in the Middle East.

• Strategy is to grow businesses in the core countries of UAE, Oman and Qatar.

• Oxy has stopped investment in Libya, Yemen, and Iraq and has agreed to exit Bahrain.

• The Al Hosn gas project is currently producing over 60 MBoed (net to Oxy).

• At full production, annualized operating cash flow is expected to be $300 to $600 million depending on commodity prices

Middle East Footprint

Al Hosn Project

QatarQatar

Average annual Chemicals EBIT of almost $600 Million over last three years with earnings and cash flow growth expected from the start-up of the Ingleside Ethylene Cracker.

• Currently have spent ~80% of total project capital of ~$725 mm (net) for the MexiChem Ethlyene Cracker JV.

• Facilities to become commercially operational in early 2017.

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Chemicals – Ethylene Cracker Update

MexiChem Ethylene Cracker JV

MexiChem Ethylene Cracker JV

• A key to long term success is to take advantage of this downturn to improve our future:– Major cost structure changes

– Further advances in improved recovery

– Investment in people

– Portfolio expansion

• Diverse portfolio– Two businesses in one of the best basins in the world

– Long life, low decline, value adding, cash flow generating assets

– Flexibility to ramp up or down depending on market conditions

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Summary – Key to Success / Strengths

• Data Analytics

• Technology (new or different)

• Technical excellence of our people

Cautionary StatementPortions of this presentation contain forward-looking statements and involve risks and uncertainties that couldmaterially affect expected results of operations, liquidity, cash flows and business prospects. 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 theprospective nature of events or outcomes generally indicate forward-looking statements. Factors that maycause Occidental's results of operations and financial position to differ from expectations include but are notlimited to: global commodity pricing fluctuations; supply and demand considerations for Occidental’sproducts; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring ofOccidental's operations; not successfully completing, or any material delay of, field developments, expansionprojects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expectedproduction from development projects or acquisitions; exploration risks; general economic slowdownsdomestically or internationally; political conditions and events; liability under environmental regulationsincluding remedial actions; litigation; disruption or interruption of production or manufacturing or facilitydamage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks orinsurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. Youshould not place undue reliance on these forward-looking statements, which speak only as of the date of thispresentation. 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 affectOccidental’s results of operations and financial position appear in Part 1, Item 1A “Risk Factors” ofOccidental's 2015 Form 10-K.

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