EX-99 5 ex993-20051031.htm EXHIBIT 99.3

EXHIBIT 99.3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 Third Quarter

Net Income (Loss)

($ millions)

                         
   

Reported
 Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

1,760

 

$

9

 

Hurricane insurance charge

 

$

1,769

 
                         

Chemical

 

 

3

 

 

159

 

Write-off of plants

 

 

167

 

 

 

 

 

 

 

5

 

Hurricane insurance charge

 

 

 

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(70

)

 

30

 

Debt repurchase expense

 

 

(40

)

                         

   Other

 

 

660

 

 

(726

)

Sale of Premcor / Valero shares

 

 

(39

)

 

 

 

 

 

 

15

 

Equity investment impairment

 

 

 

 

 

 

 

 

 

 

2

 

Equity investment hurricane

 

 

 

 

 

 

 

 

 

 

 

 

   insurance charge

 

 

 

 

 

 

 

 

 

 

10

 

Hurricane insurance charge

 

 

 

 
                         

   Taxes

 

 

(611

)

 

178

 

Tax effect of adjustments

 

 

(768

)

 

 

 

 

 

 

(335

)

Tax reserve reversal

 

 

 

 
                   

Income from continuing operations

 

 

1,742

 

 

(653

)

 

 

 

1,089

 

Discontinued operations, net of tax

 

 

2

 

 

(2

)

Discontinued operations, net

 

 

--

 

Cumulative effect of acct changes, net

 

3

 

(3

)

Cumulative effect of acct chg

 

--

 

Net Income

 

$

1,747

 

$

(658

)

 

 

$

1,089

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

4.31

 

 

 

 

 

 

$

2.69

 

Discontinued operations, net

 

 

--

 

 

 

 

 

 

 

--

 

Cumulative effect of acct changes, net

 

0.01

     

 

 

 

--

 

Net Income

 

$

4.32

       

 

 

$

2.69

 

 

 

1

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 Third Quarter

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

1,216

 

 

 

 

 

 

$

1,216

 
                         

Chemical

 

 

141

 

 

 

 

 

 

 

141

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(59

)

 

 

 

 

 

 

(59

)

   Other

 

 

(44

)

 

 

 

 

 

 

(44

)

   Taxes

 

 

(495

)

 

 

 

 

 

 

(495

)

                   

Income from continuing operations

 

 

759

 

 

--

 

 

 

 

759

 

Discontinued operations, net of tax

 

(1

)

1

 

Discontinued operations, net

 

--

 

Net Income

 

$

758

 

$

1

 

 

 

$

759

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

1.91

 

 

 

 

 

 

$

1.92

 

Discontinued operations, net of tax

 

--

     

 

 

 

--

 

Net Income

 

$

1.91

       

 

 

$

1.92

 

 

 

2

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2005 First Nine Months

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

4,434

 

$

26

 

Contract settlement

 

$

4,469

 

 

 

 

 

 

 

9

 

Hurricane insurance charge

 

 

 

 
                         

Chemical

 

 

442

 

 

159

 

Write-off of plants

 

 

606

 

 

 

 

 

 

 

5

 

Hurricane insurance charge

 

 

 

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(178

)

 

41

 

Debt repurchase expense

 

 

(137

)

                         

   Other

 

 

682

 

 

(140

)

Sale of Lyondell shares

 

 

(157

)

 

 

 

 

 

 

(726

)

Sale of Premcor / Valero shares

 

 

 

 

 

 

 

 

 

 

15

 

Equity investment impairment

 

 

 

 

 

 

 

 

 

 

2

 

Equity investment hurricane

 

 

 

 

 

 

 

 

 

 

 

 

   insurance charge

 

 

 

 

 

 

 

 

 

 

10

 

Hurricane insurance charge

 

 

 

 
                         

   Taxes

 

 

(1,256

)

 

225

 

Tax effect of adjustments

 

 

(1,975

)

 

 

 

 

 

 

(335

)

Tax reserve reversal

 

 

 

 

 

 

 

 

 

 

(619

)

Settlement of federal tax issue

 

 

 

 
       

10

 

State tax charge

     

Income from continuing operations

 

 

4,124

 

 

(1,318

)

 

 

 

2,806

 

Discontinued operations, net

 

 

2

 

 

(2

)

Discontinued operations, net

 

 

--

 

Cumulative effect of acct changes, net

 

3

 

(3

)

Cumulative effect of acct chg

 

--

 

Net Income

 

$

4,129

 

$

(1,323

)

 

 

$

2,806

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

10.25

 

 

 

 

 

 

$

6.97

 

Discontinued operations, net

 

 

--

 

 

 

 

 

 

 

--

 

Cumulative effect of acct changes, net

 

0.01

     

 

 

 

--

 

Net Income

 

$

10.26

       

 

 

$

6.97

 

 

 

3

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM

2004 First Nine Months

Net Income (Loss)

($ millions)

                         
   

Reported
Income

 

Significant Items Affecting Income

 

Core
Earnings

 

Oil & Gas

 

$

3,111

 

 

 

 

 

 

$

3,111

 
                         

Chemical

 

 

289

 

 

 

 

 

 

 

289

 
                         

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

   Interest expense, net

 

 

(187

)

 

11

 

Trust preferred redemption

 

 

(176

)

   Other

 

 

(139

)

 

 

 

 

 

 

(139

)

   Taxes

 

 

(1,242

)

 

(20

)

IRS settlements

 

 

(1,266

)

 

 

 

 

 

 

(4

)

Tax effects of adjustments

 

 

 

 

                   

Income from continuing operations

 

 

1,832

 

 

(13

)

 

 

 

1,819

 

Discontinued operations, net of tax

 

(6

)

6

 

Discontinued operations, net

 

--

 

Net Income

 

$

1,826

 

$

(7

)

 

 

$

1,819

 
                         
                         

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

$

4.65

 

 

 

 

 

 

$

4.62

 

Discontinued operations, net of tax

 

(0.02

)

    

 

 

 

--

 

Net Income

 

$

4.63

       

 

 

$

4.62

 

 

 

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)

 

Third Quarter

 

Nine Months

 

 

 

2005

 

2004

 

2005

 

2004

 

Oil & Gas

 

 

 

 

 

 

 

 

 

  Exploration impairments

 

(1

)

(14

)

(86

)

(59

)

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

  Environmental remediation

 

(10

)

--

 

(29

)

--

 

 

 

5

Investor Relations Supplemental Schedules

 


 

OCCIDENTAL PETROLEUM
Worldwide Effective Tax Rate

 

 

 

QUARTERLY

 

YEAR-TO-DATE

 

 
REPORTED INCOME

 

2005
QTR 3

 

2005
QTR 2

 

2004
QTR 3

 

2005
9 Months

 

2004
9 Months

 

Oil & Gas (a)

 

1,760

 

1,325

 

1,216

 

4,434

 

3,111

 

Chemicals

 

3

 

225

 

141

 

442

 

289

 

Corporate & other

 

590

 

26

 

(103

)

504

 

(326

)

  Pre-tax income

 

2,353

 

1,576

 

1,254

 

5,380

 

3,074

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

  Federal and state

 

185

 

(256

)

278

 

278

 

685

 

Foreign (a)

 

426

 

300

 

217

 

978

 

557

 

  Total

 

611

 

44

 

495

 

1,256

 

1,242

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations

 

1,742

 

1,532

 

759

 

4,124

 

1,832

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

26%

 

3%

 

39%

 

23%

 

40%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 
CORE INCOME

 

2005
QTR 3

 

2005
QTR 2

 

2004
QTR 3

 

2005
9 Months

 

2004
9 Months

 

Oil & Gas (a)

 

1,769

 

1,351

 

1,216

 

4,469

 

3,111

 

Chemicals

 

167

 

225

 

141

 

606

 

289

 

Corporate & other

 

(79

)

(113

)

(103

)

(294

)

(315

)

  Pre-tax income

 

1,857

 

1,463

 

1,254

 

4,781

 

3,085

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

  Federal and state

 

342

 

312

 

278

 

997

 

709

 

Foreign (a)

 

426

 

300

 

217

 

978

 

557

 

  Total

 

768

 

612

 

495

 

1,975

 

1,266

 

 

 

 

 

 

 

 

 

 

 

 

 

Core income

 

1,089

 

851

 

759

 

2,806

 

1,819

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide effective tax rate

 

41%

 

42%

 

39%

 

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 3

 

2005
QTR 2

 

2004
QTR 3

 

2005
9 Months

 

2004
9 Months

 

 

 

263

 

226

 

149

 

676

 

382

 

 

 

6

Investor Relations Supplemental Schedules

 


 

 

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

                     

 

 

Third
Quarter
2005

 

Second
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,760

 

$

1,325

 

$

435

 

Chemical

 

 

3

 

 

225

 

 

(222

)

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(70

)

 

(47

)

 

(23

)

  Other

 

 

660

 

 

73

 

 

587

 

  Taxes

 

(611

)

(44

)

(567

)

Income from continuing operations

 

 

1,742

 

 

1,532

 

 

210

 

Discontinued operations, net

 

 

2

 

 

4

 

 

(2

)

Cumulative effect of acct changes, net

 

3

 

--

 

3

 

Net Income

 

$

1,747

 

$

1,536

 

$

211

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

  Income from continuing operations

 

$

4.31

 

$

3.81

 

$

0.50

 

  Discontinued operations, net

 

 

--

 

 

0.01

 

 

(0.01

)

  Cumulative effect of acct changes, net

 

0.01

 

--

 

0.01

 

  Net Income

 

$

4.32

 

$

3.82

 

$

0.50

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

26%

 

 

3%

 

 

-23%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

                     

 

 

Third
Quarter
2005

 

Second
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,769

 

$

1,351

 

$

418

 

Chemical

 

 

167

 

 

225

 

 

(58

)

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(40

)

 

(46

)

 

6

 

  Other

 

 

(39

)

 

(67

)

 

28

 

  Taxes

 

(768

)

(612

)

(156

)

Net Income

 

$

1,089

 

$

851

 

$

238

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

2.69

 

$

2.12

 

$

0.57

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

41%

 

 

42%

 

 

1%

 

 

 

7

Investor Relations Supplemental Schedules

 


 

 

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

         

2005 3rd Quarter

 

$

1,769

 

2005 2nd Quarter

 

1,351

 

 

 

$

418

 

         
         

Sales Price

 

$

373

 

         

Sales Volume/Mix

 

 

39

 

         

Exploration Expense

 

 

56

 

         

All Others

 

 

(50

)

         

TOTAL VARIANCE

 

$

418

 

         

 

         

OCCIDENTAL PETROLEUM
Chemical
Core Earnings Variance Analysis
($ millions)

         

2005 3rd Quarter

 

$

167

 

2005 2nd Quarter

 

225

 

 

 

$

(58

)

         
         

Sales Price

 

 

(22

)

         

Sales Volume/Mix

 

 

12

 

         

Operations/Manufacturing

 

 

(80

) *

         

All Others

 

 

32

 

         

TOTAL VARIANCE

 

$

(58

)

 

* Higher feedstock and energy costs

 

 

8

Investor Relations Supplemental Schedules

 


 

 

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

                     

 

 

Third
Quarter
2005

 

Third
Quarter
2004

 

B / (W)

 

Oil & Gas

 

$

1,760

 

$

1,216

 

$

544

 

Chemical

 

 

3

 

 

141

 

 

(138

)

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(70

)

 

(59

)

 

(11

)

  Other

 

 

660

 

 

(44

)

 

704

 

  Taxes

 

(611

)

(495

)

(116

)

Income from continuing operations

 

 

1,742

 

 

759

 

 

983

 

Discontinued operations, net

 

 

2

 

 

(1

)

 

3

 

Cumulative effect of acct changes, net

 

3

 

--

 

3

 

Net Income

 

$

1,747

 

$

758

 

$

989

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

  Income from continuing operations

 

$

4.31

 

$

1.91

 

$

2.40

 

  Discontinued operations, net

 

 

--

 

 

--

 

 

--

 

  Cumulative effect of acct changes, net

 

0.01

 

--

 

0.01

 

  Net Income

 

$

4.32

 

$

1.91

 

$

2.41

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

26%

 

 

39%

 

 

13%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

                     

 

 

Third
Quarter
2005

 

Third
Quarter
2005

 

B / (W)

 

Oil & Gas

 

$

1,769

 

$

1,216

 

$

553

 

Chemical

 

 

167

 

 

141

 

 

26

 

Corporate

 

 

 

 

 

 

 

 

 

 

  Interest expense, net

 

 

(40

)

 

(59

)

 

19

 

  Other

 

 

(39

)

 

(44

)

 

5

 

  Taxes

 

(768

)

(495

)

(273

)

Net Income

 

$

1,089

 

$

759

 

$

330

 

 

 

 

 

 

 

 

 

 

 

 

Basic Earnings Per Common Share

 

$

2.69

 

$

1.92

 

$

0.77

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide Effective Tax Rate

 

 

41%

 

 

39%

 

 

-2%

 

 

 

9

Investor Relations Supplemental Schedules

 


 

 

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

         

2005 3rd Quarter

 

$

1,769

 

2004 3rd Quarter

 

1,216

 

 

 

$

553

 

         
         

Sales Price

 

$

692

 

         

Sales Volume/Mix

 

 

28

 

         

Exploration Expense

 

 

(18

)

         

All Others

 

 

(149

)

         

TOTAL VARIANCE

 

$

553

 

         

 

         

OCCIDENTAL PETROLEUM
Chemical
Core Earnings Variance Analysis
($ millions)

         

2005 3rd Quarter

 

$

167

 

2005 2nd Quarter

 

141

 

 

 

$

26

 

         
         

Sales Price

 

$

125

 

         

Sales Volume/Mix

 

 

2

 

         

Operations/Manufacturing

 

 

(107

) *

         

All Others

 

 

6

 

         

TOTAL VARIANCE

 

$

26

 

 

* Higher feedstock and energy costs

 

 

10

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

Third Quarter

 

Nine Months

 

 

 

2005

 

2004

 

2005

 

2004

 

NET PRODUCTION PER DAY:

 

 

 

 

 

 

 

 

 

  United States

 

 

 

 

 

 

 

 

 

    Crude Oil and Liquids (MBL)

 

 

 

 

 

 

 

 

 

California

 

73

 

77

 

75

 

77

 

Permian

 

165

 

154

 

156

 

155

 

Horn Mountain

 

10

 

17

 

13

 

22

 

Hugoton

 

3

 

3

 

4

 

3

 

Total

 

251

 

251

 

248

 

257

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

California

 

239

 

228

 

240

 

235

 

Hugoton

 

133

 

124

 

131

 

128

 

Permian

 

186

 

122

 

167

 

131

 

Horn Mountain

 

6

 

14

 

9

 

15

 

Total

  

564

 

488

 

547

 

509

 

  Latin America

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Colombia

 

38

 

38

 

35

 

37

 

Ecuador

 

46

 

49

 

42

 

46

 

Total

  

84

 

87

 

77

 

83

 

  Middle East and North Africa

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Oman

 

12

 

14

 

18

 

13

 

Qatar

 

42

 

44

 

43

 

44

 

Yemen

 

23

 

28

 

29

 

33

 

Libya

 

9

 

--

 

3

 

--

 

Total

  

86

 

86

 

93

 

90

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

Oman

 

35

 

88

 

51

 

52

 

 

 

 

 

 

 

 

 

 

 

  Other Eastern Hemisphere

 

 

 

 

 

 

 

 

 

    Crude Oil (MBL)

 

 

 

 

 

 

 

 

 

Pakistan

 

5

 

7

 

5

 

8

 

    Natural Gas (MMCF)

 

 

 

 

 

 

 

 

 

Pakistan

 

81

 

73

 

77

 

74

 

 

 

 

 

 

 

 

 

 

 

  Barrels of Oil Equivalent (MBOE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  Subtotal consolidated subsidiaries

 

539

 

539

 

536

 

544

 

  Other interests

 

 

 

 

 

 

 

 

 

    Colombia - minority interest

 

(5

)

(4

)

(4

)

(5

)

    Russia - Occidental net interest

 

27

 

27

 

27

 

29

 

    Yemen - Occidental net interest

 

1

 

1

 

2

 

1

 

  Total worldwide production (MBOE)

 

562

 

563

 

561

 

569

 

 

 

11

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

Third Quarter

 

Nine Months

 

 

 

2005

 

2004

 

2005

 

2004

 

OIL & GAS:

 

 

 

 

 

 

 

 

 

  PRICES

 

 

 

 

 

 

 

 

 

    United States

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

56.70

 

40.29

 

49.26

 

36.07

 

    Natural Gas ($/MCF)

 

6.33

 

5.87

 

6.16

 

5.25

 

 

 

 

 

 

 

 

 

 

 

    Latin America

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

53.81

 

36.07

 

45.62

 

32.00

 

 

 

 

 

 

 

 

 

 

 

    Middle East and North Africa

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

56.37

 

37.76

 

48.69

 

34.00

 

    Natural Gas ($/MCF)

 

0.97

 

0.97

 

0.96

 

0.97

 

 

 

 

 

 

 

 

 

 

 

    Other Eastern Hemisphere

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

52.25

 

35.44

 

45.57

 

32.13

 

    Natural Gas ($/MCF)

 

2.72

 

2.30

 

2.41

 

2.33

 

 

 

 

 

 

 

 

 

 

 

    Total Worldwide

 

 

 

 

 

 

 

 

 

    Crude Oil ($/BBL)

 

55.04

 

37.87

 

47.39

 

33.78

 

    Natural Gas ($/MCF)

 

5.49

 

4.77

 

5.18

 

4.52

 

 

 

 

 

Third Quarter

 

Nine Months

 

 

 

2005

 

2004

 

2005

 

2004

 

Exploration Expense

 

 

 

 

 

 

 

 

 

 

 

 

 

    Domestic

 

$

20

 

$

23

 

$

131

 

$

83

 

    Latin America

 

 

5

 

 

1

 

 

28

 

 

4

 

    Middle East and North Africa

 

 

4

 

 

1

 

 

9

 

 

15

 

    Othern Eastern Hemisphere

 

 

26

 

 

12

 

 

45

 

 

29

 

TOTAL

 

$

55

 

$

37

 

$

213

 

$

131

 

 

 

12

Investor Relations Supplemental Schedules

 


 

 

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

                   

 

 

Third Quarter

 

Nine Months

 

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

 

  Chlorine

 

801

 

730

 

2,283

 

2,176

 

  Caustic Soda

 

817

 

795

 

2,299

 

2,346

 

  Ethylene Dichlorine

 

185

 

102

 

490

 

324

 

  PVC Resins (millions of pounds)

 

1,082

 

1,044

 

3,092

 

3,205

 

 

 

CHEMICALS
Prices (Index)

                   

 

 

Third Quarter

 

Nine Months

 

MAJOR PRODUCTS

 

2005

 

2004

 

2005

 

2004

 

  Chlorine

 

2.61

 

2.23

 

2.60

 

1.94

 

  Caustic Soda

 

1.72

 

0.84

 

1.63

 

0.72

 

  Ethylene Dichlorine

 

1.22

 

1.64

 

1.49

 

1.48

 

  PVC Resins (millions of pounds)

 

1.19

 

1.13

 

1.24

 

1.05

 

 

 

1987 through 1990 average price = 1.00

 

 

CHLORINE

OxyChem Commentary

•

In August, OxyChem announced a $25 per ton price increase effective September 28th or as contract terms permit. Other U.S. chlor-alkali producers announced similar increases. The price increase is in response to the significant rise in energy prices following the Gulf Coast hurricanes.

   

•

3rd quarter industry operating rates reflect the negative impact of hurricanes Katrina and Rita on the Gulf Coast region. The two hurricanes combined to reduce chlorine production throughout the industry by approximately 6%.

   

•

The industry is currently struggling with both raw material sourcing and transportation issues. The disruption caused by the hurricanes has severely impacted the availability of natural gas and ethylene. In addition, disruptions in rail service have reduced chlorine railcar availability and could eventually affect operating rates.

   

•

OxyChem anticipates that industry operating rates will increase during the 4th quarter. 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:

While there is still uncertainty with respect to chlorine demand, chlorine supply/demand is expected to remain balanced in the 4th quarter. Vinyls production and the resulting chlorine consumption are expected to be constrained by ethylene availability. Lost chlorinated derivative production in the 3rd quarter is projected to boost chlorine demand for the remainder of the year. However, noticeable improvements in demand associated with the rebuilding along the Gulf Coast is not expected until the 1st half of 2006.

 

CAUSTIC

OxyChem Commentary

•

Caustic soda demand fell in the 3rd quarter in spite of improved seasonal demand. 3rd quarter volumes were lower in the distribution, organic and pulp and paper market segments due in part to Hurricane Katrina. OxyChem's sales of liquid caustic soda are expected to improve in the 4th quarter as there are still some U.S. producers that are experiencing production curtailments/outages as a result of the hurricanes.

   

•

U.S. producers have announced two price increases for the 4th quarter. An increase of $50 DST was announced in late August followed by an additional increase of $75 DST announced late September. Market conditions and higher energy costs are expected to support 4th quarter price improvement as the Gulf Coast experiences ongoing supply issues.

   

•

OxyChem and other U.S. producers remain on order control programs for liquid caustic soda. Order control is expected to continue for the remainder of the year.

 

Influencing Factors:

Significant operating issues are expected to support 4th quarter price improvement as the supply of liquid caustic soda remains tight. Several chlor-alkali facilities are currently running at reduced rates or have not yet resumed production. While seasonal demand for liquid caustic soda will decline, the tight supply projected in the 4th quarter will lend support for future price improvement.

 

EDC

OxyChem Commentary

•

Export demand in the 3rd quarter was limited by planned and unplanned Asian VCM outages coupled with increased Chinese acetylene based VCM production.

 

 

14

Investor Relations Supplemental Schedules

 


 

 

•

There was no improvement in EDC prices during the 3rd quarter even though PVC and VCM prices increased. Asian spot prices ended the quarter at $250 - $305 per metric ton CIF Asia.

 

Influencing Factors:

Prices for EDC in the Far East have stabilized after significant declines in the 2nd quarter but have not rebounded with 3rd quarter price increases in VCM and PVC. Continued VCM outages and capacity increases in acetylene based production have unfavorably impacted the supply/demand balance for EDC. High ethylene costs and low EDC prices will limit spot export volumes out of the U.S. in the 4th quarter.

 

PVC/VCM

OxyChem Commentary

•

Domestic PVC sales volumes continued to gain momentum in the 3rd quarter following an industry wide de-stocking in the 2nd quarter. Hurricane Katrina tightened the supply to the point that spot resin deals ceased by the end of August. Domestic demand for the 3rd quarter increased 6% versus the prior quarter.

   

•

Due to the production impact of Hurricane Rita, OxyVinyls declared Force Majeure for the PVC and VCM businesses, effective September 23rd. Customers were placed on a 30% allocation program for the remainder of September and a 90% allocation was announced for October.

   

•

Domestic PVC resin prices decreased $0.01 per pound in July, remained flat in August, and increased $0.02 per pound in September.

   

•

OxyChem announced a $0.15 per pound price increase effective October 1 while the rest of the industry has announced a $0.12 per pound increase effective October 1. This price increase is in response to the announced ethylene increase of $0.10 per pound for October and higher 4th quarter energy costs.

   

•

PVC resin export prices ended the quarter at $850 - $870 per metric ton CFR Southeast Asia. Exports for the 3rd quarter increased 20% versus the prior quarter. OxyVinyls stopped quoting spot export PVC opportunities at the end of August following Hurricane Katrina.

   

•

VCM supply and demand was balanced through the majority of the 3rd quarter until Hurricane Rita shut down most of the U.S. VCM production. Inventories are now at record lows limiting PVC production in both Mexico and the U.S. The production curtailments continue into the 4th quarter.

   

•

Published VCM spot export prices from the U.S. Gulf Coast to Latin America increased from $550 per metric ton FOB at the end of the 2nd quarter to $705 per metric ton FOB by the end of the 3rd quarter. Asian spot prices increased from $550 per metric ton CFR to $685 per metric ton CFR.

 

 

15

Investor Relations Supplemental Schedules

 


 

 

Influencing Factors:

Increased seasonal domestic demand coupled with the supply issues created by the hurricanes will continue to tighten the vinyls supply/demand balance. Additional price increases may be necessary in the 4th quarter to offset the high feedstock costs and to enable margin improvement for both VCM and PVC.

 

 

16

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
SUMMARY OF OPERATING STATISTICS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Nine Months

 

Capital Expenditures ($MM)

 

2005

 

2004

 

2005

 

2004

 

  Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

 

    California

 

$

98

 

$

87

 

$

270

 

$

231

 

    Permian

 

 

112

 

 

81

 

 

271

 

 

206

 

    Other - U.S.

 

 

51

 

 

18

 

 

113

 

 

30

 

    Latin America

 

 

45

 

 

40

 

 

144

 

 

123

 

    Middle East / North Africa

 

 

226

 

 

191

 

 

690

 

 

550

 

    Other Eastern Hemisphere

 

 

40

 

 

7

 

 

72

 

 

28

 

  Chemicals

 

 

32

 

 

39

 

 

94

 

 

95

 

  Corporate

 

 

3

 

 

3

 

 

7

 

 

7

 

TOTAL

 

$

607

 

$

466

 

$

1,661

 

$

1,270

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation, Depletion &

 

Third Quarter

 

Nine Months

 

  Amortization of Assets ($MM)

 

2005

 

2004

 

2005

 

2004

 

  Oil & Gas

 

 

 

 

 

 

 

 

 

 

 

 

 

    Domestic

 

$

184

 

$

153

 

$

508

 

$

466

 

    Latin America

 

 

27

 

 

24

 

 

78

 

 

72

 

    Middle East / North Africa

 

 

84

 

 

67

 

 

257

 

 

201

 

    Other Eastern Hemisphere

 

 

10

 

 

13

 

 

30

 

 

35

 

  Chemicals

 

 

66

 

 

60

 

 

187

 

 

182

 

  Corporate

 

 

5

 

 

4

 

 

16

 

 

13

 

TOTAL

 

$

376

 

$

321

 

$

1,076

 

$

969

 

 

 

17

Investor Relations Supplemental Schedules

 


 

 

OCCIDENTAL PETROLEUM
CORPORATE
($ millions)

 

 

30-Sep-05

 

31-Dec-04

CAPITALIZATION

 

 

 

 

 

 

Oxy Long-Term Debt (including current maturities)

 

$

2,917

 

$

3,804

Subsidiary Preferred Stock

 

 

75

 

 

75

Others

 

 

25

 

 

26

Total Debt

 

$

3,017

 

$

3,905

EQUITY

 

$

13,909

 

$

10,550

Total Debt to Total Capitalization

 

 

18%

 

 

27%

 

 

18

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.

 

 

 

 

 

Additional Information and Where to Find It

Oxy will file a Form S-4, Vintage will file a proxy statement and both companies will file other relevant documents concerning the proposed merger transaction with the Securities and Exchange Commission (SEC). INVESTORS ARE URGED TO READ THE FORM S-4 AND PROXY STATEMENT WHEN THEY BECOME AVAILABLE AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION. You will be able to obtain the documents free of charge at the website maintained by the SEC at www.sec.gov. In addition, you may obtain documents filed with the SEC by Oxy free of charge by contacting Christel Pauli, Counsel and Assistant Secretary, Occidental Petroleum Corporation, at 10889 Wilshire Blvd., Los Angeles, California 90024. The documents will also be available online at www.oxy.com.

 

 

19

Investor Relations Supplemental Schedules

 


 

 

Participants in Solicitation

Oxy, Vintage and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from Vintage shareholders in connection with the merger. Information about the directors and executive officers of Oxy and their ownership of Oxy stock is set forth in the proxy statement for Oxy's 2005 Annual Meeting of Shareholders. Information about the directors and executive officers of Vintage and their ownership of Vintage stock is set forth in the proxy statement for Vintage's 2005 Annual Meeting of Shareholders. Investors may obtain additional information regarding the interests of such participants by reading the Form S-4 and proxy statement for the merger when they become available.

 

Investors should read the Form S-4 and proxy statement carefully when they become available before making any voting or investment decisions.

 

Forward-Looking Statements

The matters set forth in this presentation, including statements as to the expected benefits of the acquisition such as efficiencies, cost savings, financial strength, and the competitive ability and position of the combined company, and other statements identified by such words as "will," "estimates," "expects," "hopes," "projects," "plans," and similar expressions are forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks and uncertainties that could significantly affect expected results, including a delay in or failure to obtain required approvals, the possibility that the anticipated benefits from the acquisition cannot be fully realized, the possibility that costs or difficulties related to the integration will be greater than expected, the ability to manage regulatory, tax and legal matters, including changes in tax rates, the impact of competition, and other risk factors related to our industries as detailed in each of Oxy's and Vintage's reports filed with the SEC. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Oxy undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Actual results may differ from those set forth in the forward-looking statements.

 

Information contained in this presentation regarding Vintage's production, reserves, results, assets and other information has been taken from Vintage's public filings with the SEC. Oxy makes no representation with respect to the accuracy of this information.

 

 

20