Vicki HollubChief Executive Officer
Bernstein’s 34th Annual Strategic Decisions ConferenceOccidental PetroleumMay 31, 2018
2
Cautionary Statements
Forward-Looking StatementsThis presentation contains forward-looking statements based on management’s current expectations relating to Occidental’s operations,
liquidity, cash flows, results of operations 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 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. 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 actual
results to differ include, but are not limited to: global commodity pricing fluctuations; changes in supply and demand for Occidental’s products;
higher-than-expected costs; the regulatory approval environment; not successfully completing, or any material delay of, field developments,
expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; technological developments; uncertainties about the
estimated quantities of oil and natural gas reserves; lower-than-expected production from operations, 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; failures in risk management; and the factors set
forth in Part I, Item 1A “Risk Factors” of the 2017 Form 10-K. 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.
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.
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Key Takeaways
Differentiators for Oxy
• Quality of portfolio
• Value proposition
• Complementary diversity of our businesses
• Full value development approach
• Best position in World Class basin
• Technical excellence / innovation
• Sustainability
4
Occidental Petroleum Corporation (Oxy) is a returns
focused energy company with operations in the
United States, Middle East and Latin America
United States
• Leading position in the world-class Permian Basin: acreage, production, asset diversity
• Resources Unconventional capability: high-margin growth
• EOR advantage: scale, reservoir quality and low-decline production
Latin America
• Highest margin operations
• Colombia Opportunities: growth in
exploration, primary development and EOR
development with partners
Middle East
• Focus areas – Oman, Qatar, and UAE
• Opportunities for growth with partners
• Low-decline, long term contracts
Oil and Gas (O&G) Core Areas1
Total Company Production ~609 Mboed66% Oil │ 14% NGL │ 20% Gas
66% Gas Production from International
Oil & Gas
Midstream
& Marketing
Low-Cost Operator with Scale
High Quality Assets Provide a
Sustainable Value Proposition
Focused in world leading O&G basins
Large scale and long history
Low base production decline
Recognized low cost operator of choice
Integrated infrastructure and
marketing maximizes O&G price
realizations
Extensive gathering and
transportation pipelines,
processing, and export system
Chemicals Leading manufacturer of basic
chemicals used for various
products including plastics,
pharmaceuticals, and water
treatment
Assets with strong focus on
stable returns
1Production as of 1Q18
5
Oxy’s Unique Value Proposition Returns Focused Growth
Returns Focused Growth
> 5% – 8+% average production growth in oil & gas
> Above cost-of-capital returns
> Return Targets: U.S. – 15+% International – 20+%
Consistent Dividend Growth
Strong Balance Sheet
ROCE Leadership
Executive Compensation Aligned
Growth within Cash Flow
Robust, Low-Cost Inventory
Industry-leading Decline Rate
> Growing dividend with an attractive yield
> Value protection in down cycle
> Promotes capital allocation discipline
> Maintain ample cash balance and sources of liquidity
> Low debt-to-capital ratio
> Income-producing assets
6
$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 $3.06 $3.08
$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
$26.44
$29.52
$0.00
$4.00
$8.00
$12.00
$16.00
$20.00
$24.00
$28.00
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18Ann.
Annual Dividends Paid
Cumulative Dividends Paid
6Note: Dividends paid as per the Record Date
Delivering Consistent Annual Dividend Growth
($/share)2002 – 2017: Oxy dividend CAGR 12% vs S&P CAGR 7.5%
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Short and Long-term Executive Compensation Changes
1 For CEO, 80% of target value is linked to company performance; 20% is based on individual performance. 2 CROCE defined as (Net Income + DD&A + After-tax Interest Expense) / Average (Total Debt + Total Equity).
Expanded use of returns-based metrics for incentive compensation
15% of CEO annual bonus1 is determined by CROCE2, with a
performance target of 19%
Improved alignment with shareholders
25% of CEO long-term incentive compensation is determined by
CROCE, with a performance target of 20%. CEO long-term incentive is
70% performance-based
Consistent with our historical practices
CROCE-based compensation
~20%
2018 CEO Compensation
at Target
Short-term Incentives Long-term Incentives
8
0.0
1.0
2.0
3.0
4.0
5.0
6.0
1Q18 Annualized
CFFO Adjusted to
$40 WTI
Chemicals Midstream &
Marketing
Remaining 32
Mboed Permian
Resources
Production
Cash Flow Neutral
at $40 WTI
Increase in Cash
Flow at $50 WTI
Cash Flow
Breakeven with
5%-8% Growth
at $50 WTI
$4.0
$4.1 $4.2$4.5
Current
Dividend
$2.4
Sustaining
Capital
$2.3
~$120 MM per $1
Change oil price
Current
Dividend
$2.4
Sustaining
Capital
$2.1
Cash Flow Breakeven at $50:
Dividend + 5% – 8% Production Growth $5.7 $5.7
Op
era
tin
g C
ash
Flo
w (
$ B
n)
Growth Capital$1.0
Cash Flow Neutral at $40:
Dividend with Flat Production
Cash Flow Breakeven at Low Oil Prices Achieved in 3Q18
$4.5$4.3 Actual
1Q18 Positive Midstream and
Chemicals Market Above Plan
Net of Middle East Downtime
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Exceeding Cash Flow Expectations
1,4751,600
Breakeven Plan
Annual Target
1Q18
Chemicals
450
800
Breakeven Plan
Annual Target
1Q18
Midstream
Market and operational improvements:
• Mid to Gulf Coast Differentials
• Export Margin
• Gas, NGLs and Sulfur Margin
Market improvements:
• Improved Caustic Soda pricing
• Improved PVC pricing
• Lower Ethylene input cost
300 330285 285
Annualized CFFO $ MM1
850
1,365
1Q17 1Q18
430500
Permian EOR
Market and operational improvements:
• Production increased 6%
• Oil price improved 21%
1CFFO excludes working capital changesAnnual Capital $ MM
10Subsurface Technical Excellence
Operational Efficiency & Speed
Logistics & Strategic Relationships
Infrastructure Investment
Product Transport & Realizations
Enhanced Recovery
Shaping Oxy’s Competitive Advantage
Subsurface Technical
Excellence
Basin-leading
Wells
Operational
Efficiency & Speed
New Mexico D&C
Outperformance
Logistics & Strategic
Relationships
Aventine
Logistics Hub
Infrastructure
Investment
Leader in Water
Recycling
Production Transport
& Realizations
Oil Terminal &
Secure Takeaway
Enhanced Oil
Recovery
Unconventional
& CCUS
Leadership
Permian Execution Excellence
11
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Breakeven
<$50
Breakeven
<$60
Breakeven
<$70
Additional
Inventory
4Q17 Normalized
to 7,100'
4Q16
Permian Resources Undeveloped Inventory
3,132
4,771
5,637
11,20711,650
Unconventional
Inventory Depth
• 1.4 MM net Permian
Unconventional acres
• ~325,000 net acres
associated with 11,207
wells in unconventional
development inventory
• Inventory at current
activity levels
Midland
Basin
Texas
Delaware
Basin
New Mexico
Delaware
Basin
Note: Breakeven defined as positive NPV 10. Inventory as of 12/31/201714Q 2017 increased lateral length adjustment to normalize current inventory to 7,100’.
11,9961
Un
de
velo
pe
d D
rillin
g L
oca
tio
ns
> 17 years of <$50
breakeven
> 26 years of <$60
breakeven
12
2,883
3,421
3,622
-
50
100
150
200
250
300
350
0 30 60 90 120 150 180
3rd Bone Spring / Wolfcamp XY Performance
-
50
100
150
200
250
300
350
0 30 60 90 120 150 180
2nd Bone Spring Performance
Subsurface Technical Excellence – Basin-leading Wells
1Three stream production results.
Productivity
• 1Q18 & 2H17 Peak 30D ~3,100 Boed1
• 2 successful appraisal wells in Red Tank field
• Record 2-well pad in 1Q18 Peak 30 Day
>10,000 BOED1 - Wolfcamp XY ~9,700 ft
Sustainable Step Change in Well Results from 2H17 into 1Q18
2016 Average
10 Wells ~5,000’
2H17 – 10 Wells
~7,200’
2016 Average
6 Wells ~4,800’
2H17 - 14 Wells
~6,200’
Q1 2018 - 13 Wells
~7,300’
Q1 2018 - 3 Wells
~9,600’
Oil (Bod)
Gas (Boed)
NGL (Boed)
2H17 & 1Q18 Wells – Peak 30D Production Rates1
2nd Bone Spring
3rd Bone Spring
Wolfcamp XY
27 Wells ~6,800'
8 Wells ~8,100'
5 Wells ~7,100'
Cu
mu
lati
ve P
rod
ucti
on
(M
bo
e)
Days Online
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Successful Drilling and A&D Programs Leading to Lower F&D Costs
> Positive total-company performance revisions
> Improved productivity and lower well costs in Permian Resources
> Purchased ~80 MM Boe more barrels than sold in Permian transactions
> Expanded capacity at Al Hosn Gas
> Successful extension of OmanBlock 9 contract
$18.05 $18.36
$8.34
5 Year 3 Year 2017
F&
D C
osts
(O
rga
nic
)1
1Refer to 4th Quarter Earnings Release for definitions of F&D calculations.
Occidental incurred approximately $0.7 Billion to convert proved undeveloped reserves to proved developed reserves.
$17.96 $17.22
$8.53
5 Year 3 Year 2017
F&
D C
osts
(A
ll S
ou
rce
s)1
2017 Program Execution Highlights
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• Pipe Yard has 16 rail car spots
• 50,000 tons of storage
• Pipe from rail line instead of trucked
from Houston
• 24-hour access with the ability to
service more than 20 rigs
Dedicated personnel, services and equipment:• Directional drilling
• Cementing
• Fracturing
• Wellhead and frac tree systems
• Northern white sand supply
• Regional sand supply
• Sand mine to Aventine logistics
• Sand transloading terminal operations
• Sand last mile logistics and wellsite
storage provider
- Service Provider Facility
- Sand Provider
- Facility Operator
- OCTG
Logistics & Strategic Relationships – Aventine Logistics Hub
• HCl facility has 14 rail car spots
• OxyChem is expected to be the HCl provider
Secure Supply
• 240 acres in Eddy County, NM within 20 miles of Greater
Sand Dunes and other future development areas
• 30,000 tons of sand storage + transload capacity
• 2 unit train loops with ability to expand to 3 located off
major rail line
• Supports 10-12 rigs per year
• Secures availability of critical materials
• Reduces costs by $500 - $750 k per well
• Reduces spare equipment and personnel needed on location
• Reduction in last mile logistics cost
• Dedicated equipment maintenance facilities
• Sand and OCTG savings started in 1Q18, other components
fully operational 3Q18HCl Provider
Lower Costs
HCl Facility
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Permian CO2 EOR
Oxy’s Permian EOR Position
• 40+ Years of EOR Expertise
• Reservoir Quality
• Subsurface Capability
• CO2 Supply
• Infrastructure
Oxy’s Capability Can Grow
Production of Mature Fields
• ~55% Expected Ultimate Recovery1
• CO2 flood phase F&D <$4.00 / Boe
Occidental is a Global Leader in EOR
OXY
0
500
1,000
1,500
2,000
2,500
3,000
3,500
0 10 20 30 40
# o
f In
jecto
rs
# of Projects
Other U.S. EOR Operators
Growing Production with CO2 EOR
Primary Development Production
Primary Development
~10% Recovery of OOIP1
Waterflood
+25% Recovery of OOIP1
CO2 Flood
+20% Recovery of OOIP1
Waterflood Development Production
CO2 Flood Current Development Forecast CO2 Flood Future Development Opportunity
West Seminole San Andres Unit
1Recovery factor estimate is for the West Seminole San Andres Unit
U.S. EOR Projects
Source: Oil and Gas Journal, 2016Size of bubble is based on EOR production volumes
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Compelling EOR scale and economics
EOR technologies have the potential to help manage the company’s GHG emissions – Occidental permanently sequesters billions of cubic feet of CO2 per year, including CO2 captured from anthropogenic sources
Less than 5% production decline reduces capital intensity and provides stable free cash flow
Expertise in CO2 EOR enables higher oil recovery fromexisting fields and is less environmentally intrusive by leveraging existing infrastructure
EOR positions us to be successful in a
carbon-constrained environment
> Permian Basin – CO2 EOR
> Colombia
> Qatar
> Oman
Enhanced Oil Recovery (EOR) –CCUS Leadership
Leadership in CO2
EOR provides long-term competitive advantage
Emerging Unconventional Opportunities
Global EOR Scale, Position & Capability 34 CO2 Floods; 70 Waterfloods
Inject 2.4 Bcfd of CO2
Sequestered ~800,000 MT of Anthropogenic CO2 in 2017
2+ Bboe of Remaining Conventional Resource
4 Unconventional EOR Pilots
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Production Transport & Realizations – Ample Takeaway
Committed Oil
Takeaway
Committed
Gas Takeaway
Committed Oil & Gas Takeaway Ensures Products are Realized in Multiple Markets
> Multi-year firm oil commitments on four, third-party pipelines
• Total capacity ~470 Mbod to Gulf Coast
• Retain flexibility on third-party volumes gathered and transported
> 100% owned Centurion Pipeline
> Gas capacity in-basin to receipt points that move gas to multiple markets
• Provide optionality on gas realizations
> Largest Permian crude exporter
• Increasing capacity to 750 MBopd
Texas
Permian & Waha
In-Basin Firm Capacity to Gas Hubs
New Mexico
Future Oil
Committed Takeaway
Sales to
3rd Parties
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Leadership in Gulf Coast Crude Exports
Increasing Ingleside export capacity to 750,000 Bopd
Oxy Ingleside – The Premier Crude Export Terminal
> Expansion underway for VLCC loading arms, tankage and piping
> Increasing capacity 2.5x to 750,000 Bopd with 6.8 MMbbls of storage
> New Permian pipeline supply anticipated 2H19
2H
18
-2
01
9
VLCC
Suezmax
> Expanding Ingleside Terminal
• VLCC loading capability 4Q18
• Capacity increase 2H19
> Leading Permian Crude Marketer
with ~600,000 Bopd
> Largest Permian crude exporter
Ingleside Oil Terminal
1919
Returns Focused Growth
ROCE Leadership
Executive Compensation Aligned
Growth within Cash Flow
Robust, Low-Cost Inventory
Industry-leading Decline Rate
MidstreamOxyChem
Driving the New Oxy Into the Future
Marketing
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