EXHIBIT 99.1
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OCCIDENTAL PETROLEUM CORPORATION
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Oxy Permian
Past Performance & Future Outlook
[OXY LOGO] June 16, 2004
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LOOKING BACK - THE ALTURA PURCHASE
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o Altura acquired - April 2000
o Financial analysts express skepticism
o What Oxy said when the purchase
was announced in March 2000
o Why Altura?
o What does the deal do for Oxy?
o Altura - Production Plan
o Altura - Oxy's Production Plan
[OXY LOGO] June 16, 2004
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WHY ALTURA?
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o Altura fits with Oxy's strategy of focusing on
large, long lived assets that have a
competitive advantage
o The acquisition is additive to earnings &
cash flow both immediately & in the long
term
o Creative non-recourse project financing
o Credit support from Shell & BP Amoco
o No need to issue equity
o No need to issue new public debt
o Maintains investment grade credit ratings
[OXY LOGO] June 16, 2004
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WHAT DOES THE DEAL DO FOR OXY?
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o Fits with core strategy of focusing on
long-lived assets with a competitive
advantage
o Significantly increases the size & <-- Reserves Increase
strength of Oil & Gas asset base ^ Proved
| 63%
o Fits with Oxy's existing Permian Basin
operations
o Gives Oxy a third large core U.S.
operation (Elk Hills and Hugoton)
o Immediately improves earnings &
cash flow per share
o Balance sheet remains strong
o Creative financing structure does not
require issuing new public debt or stock
o Low cost of capital
o Maintains investment grade credit ratings
[OXY LOGO] June 16, 2004
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ALTURA'S PRODUCTION PLAN
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o Capital was focused almost exclusively on <-- Continue to build
oil production from CO2 floods on the strength of
current CO2
o Oil production from non-CO2 flood areas flooding
was not funded in the capital program operations
o Significant natural gas opportunities have
been overlooked <-- Focus on enhancing
production from
o Production decline will be halted by using non-CO2 floods
the same methods Oxy is now using in its
Permian properties
o Focus on 50 recently identified exploitation
opportunities
o Includes total reserves of 200 million barrels
of proved undeveloped & 280 million barrels
of probable & possible
[OXY LOGO] June 16, 2004
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ALTURA - OXY'S PRODUCTION PLAN
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o Halt Altura's 5% production decline
o Apply same techniques to Altura properties that
have increased Oxy's Permian production
o 3-D seismic, enhanced drilling technology & creative
geological/engineering processing
o Lean staff that combines global with regional
experience
o Consolidate in key areas within the Permian Basin
that have long term potential for earnings & cash
flow growth - through sales, swaps and farmouts
o Improve historical results by $50 million/year
through cost reduction & margin
improvement
[OXY LOGO] June 16, 2004
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PERFORMANCE REVIEW
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[map]
OXY PERMIAN
BUSINESS UNIT
REVIEW
[OXY LOGO] June 16, 2004
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OXY PERMIAN
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o Large resource base
o Low decline rate
o Significant cash generation
o Natural consolidator
o EOR experience
[OXY LOGO] June 16, 2004
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PERMIAN OVERVIEW
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o Acquired Altura in 2000 for $3.6 billion &
combined with Oxy's existing Permian
operations
o Year-end 2003 proved reserves of 1.1 billion
BOE
o 31% of Oxy's 2003 worldwide production
[OXY LOGO] June 16, 2004
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PERFORMANCE FROM ALTURA ACQUISITION
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Pre-Tax Cash Flow ($ Billions)
Altura Purchase Price $3.6
Cum. Cash Flow Thru March 2004 $2.7
Permian Reserves
F&D Costs
Mmboe per Barrel
----- ----------
Existing Oxy (1/1/00) 89
Altura Purchase 855 $ 4.21
Cumulative Production (224)
Reserve Additions 374 $ 3.11
Divestitures (16)
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Ending Reserves (12/31/03) 1,078
[OXY LOGO] June 16, 2004
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TOTAL PRODUCTION TREND
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Thousand BOE/Day
[the following is a tabular representation of graphical materials]
Month 3-Month Average Total Production
------ --------------------------------
Apr-00 163.4
May-00 163.8
Jun-00 163.6
Jul-00 162.5
Aug-00 162.3
Sep-00 161.3
Oct-00 162.6
Nov-00 163.2
Dec-00 163.3
Jan-01 161.7
Feb-01 159.6
Mar-01 159.2
Apr-01 159.5
May-01 159.5
Jun-01 161.5
Jul-01 161.9
Aug-01 162.5
Sep-01 161.0
Oct-01 161.7
Nov-01 162.9
Dec-01 162.6
Jan-02 162.7
Feb-02 161.3
Mar-02 161.8
Apr-02 161.6
May-02 162.3
Jun-02 162.9
Jul-02 163.7
Aug-02 163.8
Sep-02 164.2
Oct-02 163.2
Nov-02 164.2
Dec-02 164.7
Jan-03 164.9
Feb-03 164.3
Mar-03 163.3
Apr-03 165.2
May-03 168.2
Jun-03 172.1
Jul-03 173.8
Aug-03 174.0
Sep-03 173.7
Oct-03 173.8
Nov-03 173.6
Dec-03 174.9
Jan-04 176.1
Feb-04 176.4
Mar-04 176.3
[OXY LOGO] June 16, 2004
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RESERVES & PRODUCTION HISTORY
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Million BOE
[the following is a tabular representation of graphical materials]
1999 2000 2001 2002 2003
------ ------ ------ ------ ------
Proved Reserves 89 968 955 1,013 1,078
Altura Acquisition 855
Cumulative Production Since 1/1/00 43 102 162 224
[OXY LOGO] June 16, 2004
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OXY PERMIAN MAJOR FIELD LOCATIONS
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[map]
[OXY LOGO] June 16, 2004
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TOP PERMIAN OIL FIELDS
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2002 Production
(Million Barrels)
[the following is a tabular representation of graphical materials]
Field Production
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▇▇▇▇▇▇ (1) 25.5
▇▇▇▇▇▇▇▇▇ Trend Area 24.0
▇▇▇▇▇▇▇▇▇ (1) 15.3
Levelland (1) 9.6
Seminole (2) 9.0
Vacuum (2) 8.1
▇▇▇▇▇▇ North (1) 7.3
▇▇▇▇▇ (2) 6.9
Anton Irish (1) 5.8
▇▇▇▇▇▇▇ 5.2
Salt Creek (2) 5.2
Fullerton (2) 5.1
▇▇▇▇▇-▇▇▇▇▇▇ 4.8
▇▇▇▇▇▇▇▇▇ (1) 4.1
▇▇▇▇▇▇▇▇▇ North (1) 3.9
▇▇▇▇▇▇▇▇▇▇ (1) 3.0
▇▇▇▇▇ (1) 2.7
▇▇▇▇▇▇ (1) 2.6
Cedar Lake (1) 2.5
▇▇▇▇▇▇ 72 1.6
▇▇▇▇▇▇ Monument (2) 1.1
(1) Significant OXY Operated Presence
(2) OXY Non-Operated Holdings
Source: Energy Information Administration 2002 Annual Report
[OXY LOGO] June 16, 2004
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TOP 10 PERMIAN OIL PRODUCERS
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2003 Gross Operated Production
(Thousand Barrels/Day)
[the following is a tabular representation of graphical materials]
Stock Symbol Gross Operated Production
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OXY 177
CVX 67
XOM 53
KMI 39
▇▇▇ ▇▇
▇▇▇ ▇▇
▇▇▇ ▇▇
COP 19
UCL 19
DVN 17
Oxy Permian
CO2 Flood 50%
Waterflood 40%
Primary 10%
Production Sources: RRC of Texas, New Mexico OCD
[OXY LOGO] June 16, 2004
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MAJOR FIELDS
2003 Proven Reserves in Mmboe
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Proved
Existing Oil Fields Mmboe % / Total
------------------- ------ ---------
Top 10 Fields 794 74%
Next 10 Fields 154 14%
All Others 130 12%
------ -----
Total 1,078 100%
5 Largest Fields: Cowden, Hobbs, Levelland, ▇▇▇▇▇▇▇▇▇ & ▇▇▇▇▇▇
[OXY LOGO] June 16, 2004
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OXY PERMIAN FORMATIONS
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DEPTH FORMATION LITHOLOGY RECOVERY THICKNESS POROSITY PERM % OF
(FT) TECHNIQUE GROSS/NET (%) (MD) OP RESERVES
------ ----------- --------- --------- ---------- -------- ---- -----------
4,400 Grayburg Dolo/Silt WF 330 / 110 13 7 9
4,700 San ▇▇▇▇▇▇ Dolomite CO2 & WF 215 / 110 12 7 65
6,000 Clearfork Dolomite WF & CO2 1200 / 120 7 3 16
7,500 Canyon Limestone WF 170 / 85 13 6 4
8,500 Devonian Limestone CO2 & WF 300 / 60 17 3 3
& Chert
11,000 Ellenburger Limestone Primary 1500 / 250 7 4 3
[OXY LOGO] June 16, 2004
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OXY PERMIAN OPERATIONS
[photo]
▇▇▇▇▇
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~8,600 Producers
~6,400 Injectors
Concentrated in Major Properties
Utilize 80-100 workover units
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[photo]
Drilling
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1,000+ ▇▇▇▇▇ drilled 2000-2003
Drilled 251 in 2003
Utilize both Horizontal & Vertical
Technology
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[photo] [photo]
Oil / Gas / Water Production Facilities
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237,000 gross boepd &
2.7 MM bwpd (92% water cut)
1000+ Facilities, ~10,000 miles of flow lines
[photo] [photo]
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[photo]
Gas Processing Operations
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6 Gas Processing / CO2 Removal Plants
Provide Critical Infrastructure
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COST MANAGEMENT
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o Active pursuit of low coast power:
- Size provides advantage
- Unit cost advantaged to most producers
o Focus on reliability to reduce repairs:
- 30% fewer failures of beam ▇▇▇▇▇
over last five years
- Run life of submersible pumps >4.5 years
o Active supply chain management effort
[OXY LOGO] June 16, 2004
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POSITION AS CONSOLIDATOR
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$MM Cost $ / BOE
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Acquisitions
2001 11 2.71
2002 73 1.36
2003 317 3.08
[OXY LOGO] June 16, 2004
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CO2 - BRAVO DOME
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o Acquired late 2000 in trade
with BP
o Allows Oxy to reduce CO2
costs and develop supply [graphic]
o 210 MMCF per day
o Recent investments to
reduce decline
[OXY LOGO] June 16, 2004
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OXY PERMIAN PIPELINE
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o Purchased early 2004
o Transports 3rd party &
[map] equity volumes
o Maintain reasonable
transportation cost
o Flexible market access
[OXY LOGO] June 16, 2004
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2004 PROJECTS
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o Capital spending in the
$200 MM range
o Four CO2 Floods [map]
o 225 ▇▇▇▇▇
o Plant projects at Mallet
& ▇▇▇▇▇▇
[OXY LOGO] June 16, 2004
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EXAMPLE PROJECT: ▇▇▇▇▇ CO2 FLOOD
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[photo]
[OXY LOGO] June 16, 2004
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NORTH ▇▇▇▇▇ UNIT
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Construction Scope
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50 MMCFD Gas Reinjection Facility
340,000 BWPD Water Reinjection Facility
3 Tank Batteries [graphic]
280,000 feet of Piping
Phase I Project Costs thru 2003
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Surface Facility - $55 ▇▇ ▇▇▇▇▇
Develop 20 Patterns - $23 ▇▇ ▇▇▇▇▇
[OXY LOGO] June 16, 2004
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2004 EXPLOITATION/EXPLORATION PROGRAMS
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[map]
[OXY LOGO] June 16, 2004
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FUTURE FOCUS
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o Continue development & exploitation drilling
o Implement CO2 project inventory
o Utilize ▇▇▇▇▇▇▇▇ ▇▇▇▇ for cost efficiency
o Leverage technology for recovery enhancement
o Selective property acquisitions & consolidation
[OXY LOGO] June 16, 2004
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SUMMARY
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o Altura acquisition successful - Approaching
payout and continue to grow Permian reserve
base
o Assets produce ▇▇▇▇▇ stream of production &
cash
o Size & scope gives Oxy advantage
o To date successful in attracting consolidation &
acquisition opportunities
[OXY LOGO] June 16, 2004
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OCCIDENTAL PETROLEUM CORPORATION
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Statements in this presentation that contain words such as
"will" or "expect", 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: global commodity pricing fluctuations, and
supply/demand considerations, for oil, gas and chemicals;
higher-than-expected costs; 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.
[OXY LOGO] June 16, 2004
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