ex99_4-20100429.htm

First Quarter 2010 Earnings - Highlights

• Core Results - $1.1 Billion vs. $407 Million in 1Q09

– Core EPS $1.32 (diluted) vs. $0.50 in 1Q09.

• Net Income - $1.1 Billion vs. $368 Million in 1Q09

– EPS $1.31 (diluted) vs. $0.45 in 1Q09.

– For comparability purposes, all prior period volumes, and
volume based statistics, such as operating costs per
barrel, are being stated on a pretax basis as we
previously discussed.

*All Others include: Lower FX gains and higher operating costs.

1Q 09

Sales Price

Sales

Volume

Exploration

Expense

All

Others*

1Q 10

$553

$1,819

$1,385

$85

$132

($ in millions)

$74

Higher

DD&A Rate

First Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 1Q10 vs. 1Q09

• Core Results for 1Q10 of $1.819 B vs. $553 mm in 1Q09

– Results reflect significantly higher commodity prices and higher volumes, partially offset by
fully expensing CO2 costs in 2010, and higher DD&A rates.

*All Others include: Lower operating and administrative costs, partially offset by higher CO2 costs.

4Q 09

Sales Price

Sales

Volume

Exploration

Expense

All

Others*

1Q 10

$1,813

$1,819

$174

$179

$43

$37

($ in millions)

$69

Higher

DD&A Rate

First Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 1Q10 vs. 4Q09

• Core Results for 1Q10 of $1.819 B vs. $1.813 B in 4Q09

– Similar sequential results reflect higher oil and natural gas prices, partially offset by
increased DD&A rates, the effect of fully expensing CO2, and lower total volumes.

1Q10 4Q09

Reported Segment Earnings ($ mm) $1,819 $1,643

WTI Oil Price ($/bbl) $78.71 $76.19

NYMEX Gas Price ($/mcf) $5.39 $4.29

Oxy’s Realized Prices

Worldwide Oil ($/bbl) $71.88 $69.39

US Natural Gas ($/mcf) $5.62 $4.37

First Quarter 2010 Earnings -
Oil & Gas Segment

First Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 1Q10 vs. 4Q09

1Q10 4Q09

• Oil and Gas Production Volumes (mboe/d) 743 717

– sequential increase of over 3.5%.

• Sequential production volume increase includes:

– In Bahrain, daily volume increases of 2,000 bbl of oil and 126 mmcf
of gas;

– Domestic operations + 5 mboe/d largely in the Kern County
discovery area;

– Partially offsetting these increases were 5 mboe/d of lower volumes
resulting from the Dolphin gas plant maintenance, which shut-in
50% of the production for approximately two weeks.

First Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 1Q10 vs. 4Q09

1Q10 4Q09

• Oil and Gas Sales Volumes (mboe/d) 726 722

• Sales volumes were lower than the production volumes due to the timing
of liftings of 13 mboe/d in the Middle East/North Africa and Latin America,
of which 11 mboe/d were in Libya.

• Exploration expense was $56 million in 1Q10.

• Oil and gas cash production costs, excluding production and property
taxes, were $10.05 a boe for 1Q10, compared to last year's twelve-month
costs of $9.37 a boe. The increase reflects $0.32 a boe higher CO2 costs,
due to our decision to expense 100% of CO2 injected beginning in 2010,
and higher field support operations and maintenance costs.

• Taxes - other than on income were $1.82 per boe for 1Q10 compared to
$1.60 per boe for all of 2009. These costs, which are sensitive to product
prices, reflect the effect of higher crude oil and gas prices in 2010.

First Quarter 2010 Earnings - Oil & Gas
Segment Variance Analysis - 1Q10 vs. 4Q09

• As a result of the factors discussed above, 1Q10, compared
to 4Q09 benefitted by:

– $174 million from higher prices;

– $43 million lower exploration expense and,

– $62 million of lower cash operating costs and G&A expense.

• These gains were offset by:

– the effect of lower liftings of $102 million;

– the effect of two fewer sales days of $77 million;

– higher DD&A rates of $69 million and,

– higher CO2 costs of $25 million.

4Q 09

Sales

Volume/Mix

Operations/

Manufacturing*

Sales Price

All Others

1Q 10

$33

$30

$64

$53

$113

($ in millions)

*Higher energy and feedstock costs.

First Quarter 2010 Earnings - Chemical
Segment Variance Analysis - 1Q10 vs. 4Q09

• Core Results for 1Q10 of $30 mm vs. $33 mm in 4Q09

– Reflects the continued weakness in domestic markets, particularly in the housing and
construction sectors, and the significant margin erosion that was experienced
through 2009 that carried into 1Q10.

($ in millions)

4Q 09

Marketing

and

Trading

Dolphin

Pipeline

All Others

1Q 10

$81

$94

$21

$13

First Quarter 2010 Earnings - Midstream
Segment Variance Analysis - 1Q10 vs. 4Q09

• Core Results for 1Q10 of $94 mm vs. $81 mm in 4Q09

– Increase in earnings was due to improved margins in the marketing and trading
business, partially offset by lower pipeline income from Dolphin from the two-week
partial shutdown of the gas plant for maintenance.

– Phibro’s earnings for 1Q10 were not significant.

First Quarter 2010 Earnings -
Capital Spending

• Capital spending for the first quarter of 2010 was about $850
million.

– Capital expenditures by segment were 80 percent in Oil and Gas, 15
percent in Midstream with the remainder in Chemicals.

– The spending run rate will increase through the year as we ramp up
in California, Bahrain and Iraq.

– Our total year forecast for capital spending has been increased by
$200 million to $4.5 billion.

$3,400

$225

$270

$300

$1,900

Available

Cash

Capex

Debt

Reduction

Dividends

Acquisitions

& Foreign

Bonuses

Ending Cash

Balance

3/31/10

Cash

Flow From

Operations

$2,200

($ in millions)

Beginning

Cash

$1,200

12/31/09

$850

Other

$145

– Free Cash Flow for 1Q10 after capex and dividends but before
acquisitions and debt reduction was about $1.1 billion.

First Quarter 2010 Earnings -
2010 YTD Cash Flow

First Quarter 2010 Earnings -
Shares Outstanding and Debt

Shares Outstanding (mm) 1Q10 3/31/10

Weighted Average Basic 812.1

Weighted Average Diluted 813.5

Basic Shares Outstanding 812.2

Diluted Shares Outstanding 813.6

3/31/10 12/31/09

Debt/Capital 8% 9%

First Quarter 2010 Earnings -
Oil and Gas Production - 2Q10 Outlook

• We expect oil and gas sales volumes to be in the range of
750 to 760 mboe/d at about current oil prices, with
production slightly above these levels.

• Production volume increases in 2Q10 are expected from the
following sources:

– Domestically, the Kern County discovery area is expected to show
modest improvement during 2Q10.

• The production continues to be constrained by a lack of additional
processing capacity.

• More significant increases are expected late in 2Q10, when we add the
skid mounted gas processing facilities.

• We are continuing with drilling and have completed a number of wells.

• We have sufficient completed wells to fill the entire capacity of the skid
mounted processing facilities.

• Our oil production is also constrained by the lack of gas processing
capacity, since these wells also produce natural gas.

– The Midcontinent Gas region where we are currently drilling shallow
oil wells is also expected to show production growth.

First Quarter 2010 Earnings -
Oil and Gas Production - 2Q10 Outlook

• In the Middle East, increases are expected in the Oman
Mukhaizna field and in Dolphin where the plant maintenance
down-time in 1Q10 is not expected to repeat.

• In Latin America, assuming no labor related stoppages,
increases are expected in Argentina, where the current run
rate is about 2 mboe/d higher than 1Q10, which was
negatively affected by a short strike.

– The Argentine provincial legislature passed enabling legislation in the
first quarter that will allow a 10-year extension for hydrocarbon
concessions.

– We are now negotiating the specific contract terms of a 10-year
extension of our concession.

First Quarter 2010 Earnings - 2Q10 Outlook

• Commodity Price Sensitivity - Earnings

– At current market prices, a $1.00 per barrel change in oil prices impacts oil and
gas quarterly earnings before income taxes by about $36 mm;

– A swing of $0.50 per mm BTU in domestic gas prices has a $31 mm impact on
quarterly pretax income; the current NYMEX gas price is around $4 p/mcf.

• We expect 2Q10 exploration expense to be about $80 mm for
seismic and drilling for our exploration programs.

First Quarter 2010 Earnings - 2Q10 Outlook

• For the Chemical segment:

– Demand for caustic soda and vinyls is expected to continue to
improve in both the US and the international markets.

– Improving caustic soda pricing and low natural gas prices will
contribute to margin improvement.

– The Chemical segment is expected to provide about $80 mm of
earnings in 2Q10.

• We expect our combined worldwide tax rate in 2Q10 to be
about 42 percent depending on the split between domestic
and foreign sourced income.