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occidental petroleum 2005 Annual Report occidental petroleum 2005 Annual Report Document Transcript

  • Occidental Petroleum Corporation Occidental Petroleum Corporation Annual Report 2005
  • Selected Financial Data Dollar amounts in millions, except per-share amounts For the years ended December 31, 2004 2003 2002 2001 2005 Results of Operations(a) Net sales $ 11,368 $ 9,240 $ 7,247 $ 8,012 $ 15,208 Income from continuing operations $ 2,606 $ 1,601 $ 1,181 $ 1,182 $ 5,272 Net income $ 2,568 $ 1,527 $ 989 $ 1,154 $ 5,281 Basic earnings per common share from continuing operations $ 6.59 $ 4.17 $ 3.14 $ 3.17 $ 13.07 Basic earnings per common share $ 6.49 $ 3.98 $ 2.63 $ 3.10 $ 13.09 Diluted earnings per common share $ 6.40 $ 3.93 $ 2.61 $ 3.09 $ 12.91 Core earnings $ 2,499 $ 1,641 $ 1,017 $ 1,249 $ 3,964 (b) Financial Position (a) Total assets $ 21,391 $ 18,168 $ 16,548 $ 17,850 $ 26,108 Long-term debt, net and trust preferred securities(c) $ 3,345 $ 4,446 $ 4,452 $ 4,528 $ 2,873 Common stockholders’ equity $ 10,550 $ 7,929 $ 6,318 $ 5,634 $ 15,032 Market Capitalization $ 23,153 $ 16,349 $ 10,750 $ 9,926 $ 32,129 Cash Flow Cash provided by operating activities $ 3,878 $ 3,074 $ 2,100 $ 2,566 $ 5,337 Capital expenditures $ (1,843) $ (1,600) $ (1,234) $ (1,305) $ (2,423) Cash (used) provided by all other investing activities, net $ (585) $ (531) $ (462) $ 654 $ (738) Dividends Per Common Share $ 1.10 $ 1.04 $ 1.00 $ 1.00 $ 1.29 Basic Shares Outstanding (thousands) 395,580 383,943 376,190 372,119 403,300 (a) See the MD&A section of this report and the “Notes to Consolidated Financial Statements” for information regarding accounting changes, asset acquisitions and dispositions, discontinued operations, environmental remediation, other costs and other items affecting comparability. (b) For an explanation of core earnings, see “Significant Items Affecting Earnings” in the MD&A section of this report. (c) On January 20, 2004, Occidental redeemed the trust preferred securities. Portions of this report contain forward-looking statements and involve risks and uncertainties that could materially affect expected results of operations, liquidity, cash flows and business prospects. Words such as “estimate,” “project,” “predict,” “will,” “anticipate,” “plan,” “intend,” “believe,” “expect” or similar expressions that convey the uncertainty of future events or outcomes generally identify forward- looking statements. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this report. Unless legally required, Occidental expressly disclaims any obligation to publicly update or revise any forward-looking statements, as a result of new information, future events or otherwise. ON THE cOvEr: A Dolphin Energy Limited drilling rig in Qatar’s North Field. Occidental holds a 24.5-percent interest in the Dolphin Project, a premier transborder natural gas project that will bring 2 billion cubic feet of natural gas per day from Qatar to markets in the United Arab Emirates.
  • Oxy in Brief 16 3 1 10 2 4 5 14 13 15 11 12 6 7 8 9 1. Elk Hills 7. Ecuador 13. United Arab Emirates 2. Long Beach 8. Bolivia 14. Qatar 3. Hugoton 9. Argentina 15. Pakistan 4. Permian Basin 10. Libya 16. Russia 5. Horn Mountain 11. Yemen 6. Colombia 12. Oman Occidental Petroleum Corporation (NYSE: OXY) is a world leader in oil and natural gas exploration and production, and a major North American chemical manufacturer. With oil and natural gas operations in the United States, the Middle East – North Africa region and Latin America, Occidental is helping to meet the world’s energy needs. In the United States, Occidental is the largest oil producer in Texas and the largest natural gas producer in California, with additional operations in Kansas, Oklahoma and New Mexico. Occidental also has an interest in a single non-operated property in the Gulf of Mexico. In the Middle East – North Africa, Occidental has assets in Libya, Oman, Qatar, Yemen and is a partner in the transborder Dolphin Project that will supply natural gas from Qatar to markets in the United Arab Emirates. Our Latin American operations include producing assets in Argentina, Bolivia, Colombia and Ecuador. In addition, the company has assets in Russia and Pakistan. Occidental Chemical Corporation (OxyChem) manufactures vinyls and specialty chemical products in addition to chlorine and caustic soda — the building blocks for such indispensable products as pharmaceuticals, water disinfectants, detergents and others. Worldwide, Occidental is committed to safeguarding the environment, protecting the safety and health of employees and neighboring communities and upholding the highest standards of social responsibility.
  • Return on Equity Net Income Stated as Percent $ in Billions 41 17 21 28 5.3 1.0 1.5 2.6 41.000 5.300000 35.875 4.416667 30.750 3.533333 25.625 20.500 2.650000 15.375 1.766667 10.250 0.883333 5.125 0.000 0.000000 2002 2003 2004 2005 2002 2003 2004 2005 Dr. Ray R. Irani Chairman, President and Chief Executive Officer Report to Stockholders 2005 was another record-setting year for Occidental as net income, operating cash flow and year-end proved oil and gas reserves again reached new highs. Occidental and our stockholders continued to reap the benefits from management’s execution of its long-term strategy to generate top quartile financial returns among our oil and gas industry peers. While the industry as a whole has benefited from high commodity prices, Occidental has outperformed its competitors in capturing the value of high prices on an equivalent barrel of production basis and delivering it to the bottom line. In addition to positioning the oil and gas segment reserve replacement high; and (5) generating top for sustainable growth and profitability, we took quartile returns on equity and capital employed. steps to strengthen the chemical segment that The results of these collaborative efforts are enable us to benefit from improving margins in a evident in the company’s overall performance. growing global economy. M a r k e t Pe r f o rMa n c e Above all, our strong performance is a testimonial Occidental’s year-end closing stock price of $79.88 to the combined efforts of our board of directors, per share was the highest year-end stock price in management team and global work force in the company’s history. Our 2005 total return to creating significant long-term value for our stock- stockholders, based on stock price appreciation holders. Everyone in our organization, from plus dividend reinvestment, was 39 percent. Over employees turning valves in the field to the senior the past five years, Occidental’s total return to executives, is focused on the key metrics that drive stockholders of 279 percent substantially outper- our performance: (1) optimizing profit and free formed the total return of 166 percent recorded by cash flow for every equivalent barrel we produce; the Standard & Poor’s 500 Oil and Gas Exploration (2) controlling costs; (3) maintaining top quartile oil and Production Index and 59 percent by the and gas finding and development costs; (4) keeping Standard & Poor’s 500 Oil and Gas Integrated Index. 2 Occidental Petroleum Corporation
  • Return on Capital Common Stockholders’ Total Debt Debt-to-Capitalization Employed* Stated as Percent Equity $ in Billions Ratio Stated as Percent $ in Billions 33 7.9 10.6 15.0 3.0 17 11 15 20 6.3 4.8 4.6 3.9 43 37 27 15 4.80 12 3.84 34.400002 9 2.88 25.800001 6 1.92 17.200001 3 0.96 8.600000 0 0.00 0.000000 2002 2003 2004 2005 2002 2003 2004 2005 2002 2003 2004 2005 2002 2003 2004 2005 * OCEisearningsbeforeinterestexpenseandtaxeffectofinterestexpenseoverstockholders’equityplusaveragetotaldebt. R the total. We expect capital expenditures to rise f inancial Perfo r M a n c e Occidental’s strong operational and financial by approximately $700 million in 2006, an increase performance in 2005 resulted in net income and of 29 percent over the 2005 level, driven by the operating cash flow rising to record highs for the large number of excellent growth projects in our third consecutive year. Consolidated net income portfolio. Maintaining discipline in the investment increased to $5.3 billion, more than double our of capital is critical to producing top quartile record results in 2004 of $2.6 billion. Cash flow financial returns. from operations rose to $5.3 billion, up 38 percent Our 2005 return on capital employed was from 2004. Total debt was reduced by nearly 33 percent, and the three-year average from 2003 $900 million, from $3.9 billion at year-end 2004 through 2005 was 23 percent. Our return on to $3.0 billion at the end of 2005 — a reduction equity in 2005 was 41 percent, and the three- of 23 percent. Interest expense for 2005, excluding year average was 31 percent. During that same debt repayment charges, was $159 million, three-year period, our stockholders’ equity grew compared to $223 million in 2004. At year-end by 138 percent — from $6.3 billion to $15 billion. 2005, Occidental had approximately $2.4 billion of cash on hand. The strength of our balance In October 2005, the board of directors increased sheet led each of the four major rating agencies the quarterly dividend to $0.36 per share, for to upgrade our credit rating to the “single A” level. an annual rate of $1.44 per share, compared Our strong balance sheet enhances our ability to the previous annual rate of $1.24 per share. to compete successfully for large international Occidental has paid quarterly cash dividends growth projects. without interruption since 1975. We will continue to evaluate our dividend policy at least Capital expenditures for 2005 were $2.4 billion, annually and continue to look favorably upon compared to $1.8 billion in 2004. The oil and gas additional increases commensurate with manage- segment accounted for more than 90 percent of ment’s long-term free cash flow outlook. 3 Annual Report 2005
  • Oil & Natural Gas Production* Oil & Natural Gas Proved Reserves* Million BOE Thousand BOE/Day 2,241 2,311 2,471 2,532 2,707 568 476 515 547 566 2707.000000 568 497 2255.833333 426 1804.666667 355 1353.500000 284 213 902.333333 142 451.166667 71 0.000000 0 543 556 667 688 681 International 223 International 161 189 202 227 1,698 1,755 1,804 1,844 2,026 U.S. 345 U.S. 315 326 345 339 2001 2001 2002 2003 2004 2005 2002 2003 2004 2005 * ncludesconsolidatedsubsidiariesandinvestmentsinotherinterests. I Oil & Gas In 2005, we continued adding proved oil and gas reserves well ahead of production. Occidental’s oPe rat i o n s Pe r f o rM a n c e consolidated subsidiaries produced approximately Oil and gas segment earnings for the year were 199 million BOE in 2005 while adding 380 million a record $6.3 billion, 47 percent higher than the BOE of proved reserves from all sources, for a previous record in 2004. The improvement was production replacement rate of 191 percent. At mainly the result of higher combined oil and gas year-end 2005, Occidental’s total worldwide prices. Oil and gas income on a barrel of oil proved reserves rose to a record 2.71 billion BOE. equivalent (BOE) basis — after taxes and before interest expense — was $20.01, which we believe The completion of the acquisition of Vintage will place Occidental in the top quartile of large Petroleum in January 2006 increased Occidental’s capitalization oil and gas industry peers for the worldwide pro forma proved reserves by 342 million seventh consecutive year. BOE, excluding approximately 72 million BOE of Vintage reserves held for sale, to a record 3.05 Worldwide oil and natural gas production averaged billion BOE. The United States accounted for 568,000 BOE per day in 2005, or a total of 207 69 percent of the total, followed by the Middle East million BOE for the year, which was slightly higher with 16 percent, Latin America with 13 percent than in 2004. Our oil and gas production for the and 2 percent for other operations. fourth quarter 2005 averaged a quarterly record high of 589,000 equivalent barrels per day, up United States In 2005, Occidental produced an 4.8 percent from the third quarter and 5.6 percent average of approximately 345,000 BOE per day from the fourth quarter 2004. The improvement in our U.S. operations, or 61 percent of our total in the fourth quarter reflects a full quarter of worldwide production. The largest operation is in production from Libya, the start up of the Mukhaizna the Permian Basin of West Texas and Southeastern project and the resumption of full production at New Mexico, which averaged 189,000 BOE per Horn Mountain in the Gulf of Mexico in the wake day, or 33 percent of our worldwide production. of the hurricanes. Production from California averaged about 4 Occidental Petroleum Corporation
  • Mukhaizna Sirte Basin, Permian Basin, project, Oman Libya United States Left: Safah Field, Oman 116,000 BOE per day, which was 20 percent of Libya contributed an average of 8,000 BOE per the worldwide total. The other domestic operations day to Occidental’s 2005 net worldwide production, averaged about 40,000 BOE per day. which reflects an annualized rate for the partial year of operations. During the fourth quarter 2005, In May 2005, Occidental acquired oil and gas Occidental’s net production from Libya averaged producing assets from ExxonMobil in the Permian 24,000 BOE per day. Occidental’s total exploration Basin. This strategic acquisition, together with two and production acreage in Libya encompasses an smaller acquisitions completed in the first quarter area of approximately 130,000 square kilometers, of 2005, further strengthened Occidental’s industry- making Occidental the largest net holder of oil and leading position in the Permian Basin and is gas acreage in the country. consistent with our strategy of focusing on large, long-lived assets in our core geographic areas. In March 2005, Occidental and its partners signed agreements with Libya’s National Oil Company for Middle East – North Africa Occidental’s net nine of the 15 exploration blocks awarded in the 2005 production from our Middle East – North EPSA-4 oil and gas licensing round in January. Africa operations averaged 103,000 BOE per Occidental is the operator and holds a 90-percent day and accounted for 18 percent of our total exploration working interest in onshore Blocks 106 worldwide production. and 124 in the Sirte Basin, Blocks 131 and 163 in the Murzuk Basin and Block 59 in the Cyrenaica In late September 2005, Occidental had its first Basin. Liwa Energy, owned by the Government lifting of Libyan crude oil after resuming operations of the Emirate of Abu Dhabi, holds the remaining in July in its historical Libyan contract areas. 10-percent interest. Occidental is currently Occidental was required to leave its oil exploration gathering and processing seismic data and and production operations in the prolific Sirte expects to drill three to five exploration wells in Basin in 1986 when the U.S. government barred areas 106 and 124 in the second half of 2006. American companies from doing business in Libya. Occidental also holds a 35-percent exploration During the interim, the producing properties have working interest in offshore Blocks 35, 36, 52 been operated by a subsidiary of Libya’s National and 53, with Liwa holding a 10-percent share. Oil Corporation. 5 Annual Report 2005
  • “Occidental’s position in Latin America is significantly enhanced with the acquisition of Vintage Petroleum. Vintage has a sizeable operation in Argentina with substantial growth potential as well as a much smaller position in Bolivia. Production from the former Vintage properties in Argentina averaged approximately 37,000 BOE per day in December 2005.” The Australian company, Woodside Petroleum Ltd., two billion cubic feet per day of natural gas from has a 55-percent interest and is the operator for Qatar’s giant North Field and the construction of these offshore blocks. related processing facilities in Qatar. The other entails construction of the new 48-inch diameter, In July 2005, the Sultanate of Oman approved a 260-mile long Dolphin Energy Pipeline to transport contract for Occidental and its partners to develop the gas from Qatar to markets in the United Arab the giant Mukhaizna oil field, one of the largest Emirates. As the production from Dolphin ramps up oilfields in Oman. Under the terms of a new to its peak, Occidental’s net share is expected to be Production Sharing Contract, Occidental will be in the range of 55,000 to 60,000 BOE per day. operator of the field and hold a 45-percent interest. Located in central Oman, the Mukhaizna field was Latin America Our 2005 production from Colombia discovered in 1975 by Petroleum Development and Ecuador averaged 74,000 barrels of oil per Oman (PDO). When Occidental became operator day. In September 2005, Occidental signed an of the field in September 2005, the field was agreement with Colombia’s national oil company, producing approximately 8,500 barrels of oil per Ecopetrol, for an enhanced oil recovery (EOR) day. Occidental and its partners expect to invest project in Colombia’s oldest and largest oil field, more than $3 billion to implement a large-scale La Cira-Infantas. If this phased project is successful, steam flood to increase gross production to Occidental could recover approximately 80 million approximately 150,000 barrels per day within the net barrels of reserves at full development, with net next few years and to recover an estimated one production rising to 20,000 BOE per day by 2010. billion barrels of oil over the life of the project. At Occidental’s position in Latin America is signifi- peak production, Occidental’s net share is expected cantly enhanced with the acquisition of Vintage to average 30,000 barrels per day. Petroleum. Vintage has a sizeable operation in Work on the $4 billion Dolphin Project, the premier Argentina with substantial growth potential as well transborder natural gas project in the Middle East, as a much smaller position in Bolivia. Production is proceeding on schedule toward a projected start from the former Vintage properties in Argentina up in late 2006. Occidental has a 24.5-percent averaged approximately 37,000 BOE per day in interest. There are two components of this project. December 2005. One involves the initial development of approximately 6 Occidental Petroleum Corporation
  • Top Left and Above: San Jorge Basin, Argentina
  • Employee Recordable Injury & Illness Trend* Rate Per 100 Employees Average of all U.S. industries 7.40 7.10 6.70 6.30 6.10 5.70 5.30 5.00 4.80 Muscat, Oman 0.88 0.73 0.68 0.65 0.83 0.69 0.62 0.68 0.34 0.47 Occidental 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 * heUSindustrydatafor2005arenotyetavailable. T Average of all industries in 2004: 4.8 chemicals among the lowest of all U.S. industries. We are committed to maintaining a safe workplace by oPerat i o n s Pe r f o rM a n c e continuously evaluating our management systems Our chemical earnings of $607 million were to ensure our world-class safety standards remain 47 percent higher than in 2004. The increase on the cutting edge. was due to continued improvement in most sectors of the economy in which the company’s Occidental’s environmental and safety programs core products are sold, particularly the building continue to receive international recognition. and construction markets. Improved economic We were honored by the U.S. Environmental growth resulted in a tightening of supplies for our Protection Agency as the International Partner major products, leading to margin improvement of the Year for the Natural Gas STAR program. through the year as higher prices more than offset This honor was bestowed on Occidental for increased energy and feedstock costs. In addition, helping the EPA promote emission reductions our core chemical business was strengthened by of methane (a greenhouse gas) in South American the acquisition of two chlor-alkali (chlorine and countries by coordinating an international co-product caustic soda) plants from Vulcan conference in Bogotá, Colombia. Occidental’s Materials Company, which increased Occidental’s Texas operations were honored with the Nature annual chlor-alkali capacity by 23 percent to Conservancy’s Leadership Award for implementing 3.3 million tons. environmentally protective operational practices and assisting in habitat restoration programs Health, Environment and Safety (at Mad Island Marsh Preserve). In addition, Responsible HES management is one of our highest OxyChem received one of the chemical industry’s priorities. Occidental has comprehensive systems most prestigious awards, the American Chemistry in place to protect the environment and the health Council’s Responsible Care® Leadership Award, and safety of employees, contractors, neighbors presented annually to a company that demonstrates and customers. Our 2005 Employee Injury and sustained safety and environmental excellence. Illness Incidence Rate (IIR) was 0.47, which was 8 Occidental Petroleum Corporation
  • Oxy Oman’s Mad Island health clinic Marsh Preserve, Texas Left: OxyChem’s Taft, Louisiana plant corporate Social responsibility Whether in the U.S. or in the emerging economies of our international locations, it is Occidental’s Occidental strives to maintain a desirable presence policy to be a responsible business partner and be a positive influence in every community and a “good neighbor” engaged in promoting where we operate. Our businesses help promote community, educational, environmental and economic development and improve the overall human rights advances. quality of life in these communities by providing well-paying jobs, broader opportunities, the Looking Ahead transfer of technical knowledge and expertise, We have a pipeline of short- and medium-term revenue through payroll and tax dollars and projects with a portfolio of high quality assets that community support. will keep our combined oil and gas production In 2005, we made excellent progress in growing at a sustainable annual rate between implementing our new corporate-wide human 5 and 7 percent. We expect our base production rights policy. As of December 2005, we have in 2010 to grow to between 700,000 and 785,000 trained more than 1,100 employees and 800 equivalent barrels of oil per day. contractors on the policy in Latin America, the This production outlook does not depend on new Middle East and the U.S. Training is continuing exploration success, new EOR projects or new in 2006 as we incorporate new employees and asset acquisitions. Growth is expected to come new operations. In Colombia, we have initiated from the company’s Argentina assets that were a risk assessment of a new production area recently acquired from Vintage Petroleum, the as required by the policy. In addition, our foreign giant Dolphin gas project in Qatar and the United contracts are being updated to include human Arab Emirates, the Mukhaizna project in Oman, rights provisions and we continue to receive and Libya. positive feedback on the policy from employees, contractors and from representatives of human In addition, the company plans to grow its rights organizations. California production through a combination of primary drilling and EOR projects at its Elk Hills 9 Annual Report 2005
  • Above: Long Beach, California; Top Right: Elk Hills field, California
  • “We are currently pursuing a number of new growth opportunities in our core operating areas that could increase production in 2010 to between 805,000 and 950,000 equivalent barrels per day, for a potential annual growth rate (at midpoint) of approximately 10 percent over five years.” operation and by increasing production from required to sustain growth of 5 to 7 percent. former Vintage properties in Southern California. The extra cash will initially be used to increase The company also has a large inventory of EOR our growth rate and to buy back shares. Our projects in the Permian Basin in Texas and New preference is to grow the business at a faster Mexico, where it expects to offset moderate rate, but if the new projects we are currently decline rates. considering encounter timing delays or don’t meet our financial criteria, we will use the Equally important, we are committed to maintaining excess cash to purchase additional shares. We the disciplined execution of our capital program that will compare the potential for value creation of funds these projects to keep our financial returns new projects with share repurchases and asset solidly in the top quartile among our industry peers acquisitions and make decisions based on and to maintain our “single A” credit rating. what we believe will create the greatest value Finally, we are currently pursuing a number of new for our stockholders over the long term. growth opportunities in our core operating areas Above all, we remain focused on the fundamentals that could increase production in 2010 to between of our business, which is the key to keeping our 805,000 and 950,000 equivalent barrels per day, returns on equity and capital employed in the for a potential annual growth rate (at midpoint) of top quartile among our industry peers — and approximately 10 percent over five years. ultimately generating top quartile total returns We plan to repurchase 10 million Occidental for our stockholders. common shares in the short term. We also expect to repurchase an additional 20 million shares over Dr. Ray R. Irani the intermediate term from free cash flow and the Chairman, President and Chief Executive Officer proceeds from Vintage asset sales. If oil prices remain above $50 per barrel, we will generate significant free cash flow in excess of what is 11 Annual Report 2005
  • Board and Officers Board of Directors Officers Dr. Ray R. Irani Dr. Ray R. Irani 1,7,8 Chairman, President and Chief Executive Officer, Chairman, President and Chief Executive Officer Occidental Petroleum Corporation Stephen I. Chazen Spencer Abraham 4 Senior Executive Vice President and Chief Financial Officer Chairman and Chief Executive Officer, The Abraham Group, LLC; former U.S. Secretary of Energy e x e c u t i v e v i c e P r e s i d e n ts Donald P. de Brier Ronald W. Burkle 3 Executive Vice President, General Counsel and Secretary Managing Partner, The Yucaipa Companies Richard W. Hallock John S. Chalsty 3 Executive Vice President — Human Resources Chairman, Muirfield Capital Management LLC; former Chairman, Donaldson, Lufkin & Jenrette, Inc. James M. Lienert Edward P. Djerejian 4,5 Executive Vice President — Finance and Planning Director, James A. Baker III Institute for Public Policy; John W. Morgan former U.S. Ambassador Executive Vice President; R. Chad Dreier 2,3 President, Oxy Oil and Gas — Western Hemisphere Chairman, President and Chief Executive Officer, R. Casey Olson The Ryland Group, Inc. Executive Vice President; John E. Feick 2,4 President, Oxy Oil and Gas — Eastern Hemisphere Chairman, Matrix Solutions Inc. Irvin W. Maloney 1,2,3,7 v i c e P r e s i d e n ts a n d k ey e x e c u t i v e s Retired Chairman and Chief Executive Officer, B. Chuck Anderson Dataproducts Corporation President, OxyChem Rodolfo Segovia 1,4,5 James R. Havert Member of the Executive Committee, Inversiones Sanford; Vice President and Treasurer former President, Ecopetrol — Colombian national oil company Kenneth J. Huffman Aziz D. Syriani 1,2,5,6,8 Vice President — Investor Relations President and Chief Executive Officer, The Olayan Group Jim A. Leonard Rosemary Tomich 1,2,3,4,5,7 Vice President and Controller Owner, Hope Cattle Company and A.S. Tomich Construction Company; Chairman and Chief Executive Robert M. McGee Officer, Livestock Clearing, Inc. Vice President — Government Relations Walter L. Weisman 4,5 Lawrence P. Meriage Private investor; former Chairman and Chief Executive Vice President — Communications and Public Affairs Officer, American Medical International, Inc. Donald L. Moore, Jr. Vice President and Chief Information Officer Member of the Executive Committee 1 Roy Pineci Member of the Audit Committee 2 Vice President — Internal Audit Member of the Executive Compensation 3 and Human Resources Committee Todd A. Stevens Member of the Environmental, Health, 4 Vice President — Acquisitions and Corporate Finance and Safety Committee Member of the Corporate Governance, Nominating and 5 Michael S. Stutts Social Responsibility Committee Vice President — Tax; Chief Tax Counsel Lead Independent Director 6 Richard A. Swan Member of the Charitable Contributions Committee 7 Vice President — Health, Environment and Safety Member of the Dividend Committee 8 12 Occidental Petroleum Corporation
  • Investor Information c o rPo rat e h e a d qua rt e r s t ra n s f e r ag e n t a n d r e g i s t ra r Occidental Petroleum Corporation Mellon Investor Services LLC 10889 Wilshire Boulevard Shareholder Relations Los Angeles, California 90024-4201 Newport Office Center VII (310) 208-8800 480 Washington Boulevard www.oxy.com Jersey City, New Jersey 07310 (800) 622-9231 in v e s to r r e lat i o n s www.melloninvestor.com/isd 1230 Avenue of the Americas s to c k e xc h a n g e l i s t i n g 16th Floor Common Stock New York, New York 10020-1508 (212) 603-8111 New York Stock Exchange (NYSE) investorrelations_newyork@oxy.com d i v i d e n d r e i n v e s tM e n t P la n sto c k h o l d e r r e lat i o n s Occidental stockholders owning 25 or more shares of 10889 Wilshire Boulevard common or preferred stock registered in their name are Los Angeles, California 90024-4201 eligible to purchase additional shares of common stock (310) 443-6459 under the Dividend Reinvestment Plan by investing dividends on a minimum of 25 shares and optional cash oil and gas payments of up to $10,000 per month. Information may be obtained from: Mellon Investor Services LLC at Occidental Oil and Gas Corporation www.melloninvestor.com. 10889 Wilshire Boulevard Los Angeles, California 90024-4201 a n n ua l c e rt i f i c at i o n s (310) 208-8800 Occidental has filed the certifications of the chief Occidental Energy Marketing, Inc. executive officer and chief financial officer required by 5 Greenway Plaza Section 302 of the Sarbanes-Oxley Act of 2002 as Houston, Texas 77046-0506 Exhibits 31.1 and 31.2 to its 2005 Annual Report on P.O. Box 27570 Form 10-K filed with the Securities and Exchange Houston, Texas 77227-7570 Commission. In addition, in 2005, Occidental submitted (713) 215-7000 to the NYSE a certificate of the chief executive www.oogc.com officer stating that he is not aware of any violation by the company of the NYSE corporate governance c h eM i c a l s listing standards. Occidental chemical corporation Occidental Tower c u r r e n t n ews a n d 5005 LBJ Freeway g e n e ra l i n f o rM at i o n Dallas, Texas 75244-6119 Information about Occidental, including news releases P.O. Box 809050 as soon as issued, is available on the Internet at Dallas, Texas 75380-9050 www.oxy.com. In addition, a toll-free telephone number: (972) 404-3800 1-888-OXYPETE; (1-888-699-7383) may be called to www.oxychem.com request our investor package. o c c i d e n ta l in t e r nat i o na l a d d i t i o na l P u b l i c at i o n s co rP o rat i o n ava i la b l e to s to c k h o l d e r s 1717 Pennsylvania Avenue, N.W. The Health, Environment and Safety Annual Report and Suite 400 the Social Responsibility Report, and Occidental’s Washington, D.C. 20006-4614 Corporate Governance Principles are available upon (202) 857-3000 request by writing to Occidental, and at www.oxy.com. au d i to r s KPMG LLP Los Angeles, California
  • 10889 Wilshire Boulevard Los Angeles, California 90024-4201 310.208.8800 www.oxy.com