Occidental Petroleum Corporation 2010 Growth and Profitability Highlighted at Annual Stockholders′ Meeting
Board elects Dr. Ray R. Irani Executive Chairman
Board elects Stephen I. Chazen President and Chief Executive Officer
Record oil and gas production and significant reserves replacement
Highest year-end stock price in company history
Two dividend increases announced in 2010 bring annual dividend to
$1.84 per share
Occidental Petroleum Corporation (NYSE:OXY) Executive Chairman Dr. Ray
R. Irani and Oxy President and Chief Executive Officer Stephen I. Chazen
reported the company′s 2010 operational, financial and long-term
achievements at the company′s annual stockholders′ meeting today in
Santa Monica, California.
'Today marks a noteworthy moment for the future of the company. As
announced last October, consistent with the Board′s long-established
succession plan, Steve Chazen was elected as President and Chief
Executive Officer. I will continue as full-time Executive Chairman. The
Board believes that Occidental will benefit from the continuation of our
long and successful partnership,? said Dr. Irani.
'For 17 years I have had the pleasure of working with Steve. He is
widely recognized as one of the best financial minds in the industry.
Steve has served in a number of important posts at Oxy, from head of
business development, to Chief Financial Officer, to President and Chief
Operating Officer.?
Mr. Chazen noted, 'Ray and I have worked side by side during these
years. Oxy′s achievements have been impressive: record profits, record
market capitalization, recurring increases in production, significant
reserve replacement, high credit ratings, and a very strong performance
in total shareholder return. Oxy′s cumulative stockholder return was 914
percent over the past 10 years. It has been a challenging and successful
past and we now look forward to a challenging and even more successful
future.?
In reviewing Oxy′s 2010 performance, Dr. Irani said, 'Oxy delivered
record production, a strengthened asset base and solid profitability in
2010, building value for our stockholders while positioning the company
for continued growth and top-tier performance.?
Oxy increased worldwide production by 5 percent in 2010 to a
company-record of 753,000 barrels of oil equivalent (BOE) per day. In
addition, the company replaced 150 percent of its production in 2010,
adding a total of 409 million BOE in proved reserves.
Oxy ended 2010 with net income of $4.5 billion ($5.56 per diluted
share), a 55-percent increase compared to 2009; and a
debt-to-capitalization ratio of 14 percent. Operating cash flow from
Oxy′s continuing operations was $9.1 billion ? 60 percent higher than in
2009.
'Oil and gas operations achieved earnings of approximately $7.2 billion,
an increase of more than $2 billion from 2009, reflecting a surge in oil
prices as well as increased domestic natural gas prices propelled by the
global economic rebound in the second half of 2010, and Oxy′s higher
production. Including impairments, Oxy led its industry peers in
after-tax operating income per barrel for the 12th
consecutive year, with $17.27 per barrel,? noted Mr. Chazen.
Earnings for Oxy′s midstream and marketing segment more than doubled
from $235 million in 2009 to $472 million in 2010, primarily due to
higher trading and marketing income. Additionally, OxyChem achieved
earnings of $438 million in 2010, up from $389 million in 2009. The
increase reflects improved market conditions, particularly for exports,
driven by favorable feedstock costs in North America compared to Europe
and Asia. For every product it makes, OxyChem′s market position is No.
1, 2 or 3 in the world.
Oxy′s closing stock price of $98.10 per share on December 31, 2010, was
the highest year-end stock price in the company′s history and 20 percent
higher than the closing price at year-end 2009. Total stockholder return
in 2010, based on stock price appreciation plus dividend reinvestment,
was 23 percent. Oxy′s stock has outperformed the S&P 500 index every
year for 12 consecutive years ? the longest current streak by any S&P
500-listed company, according to Bloomberg News Service.
In 2010 Oxy maintained an "A′ credit rating from every major
international debt rating service while the company′s ranking within the
S&P 500 advanced to No. 33, up from No. 102 in 1990.
Oxy returned $1.2 billion to stockholders in the form of dividends in
2010 and the Board of Directors announced two increases to the annual
dividend rate: a 15-percent increase in May 2010, and an additional
21-percent increase effective with the April 15, 2011, payment. The
latest increase, Oxy′s 10th since 2002, raised the annual
rate to $1.84 per share. Since 2002, Oxy′s dividend has risen 268
percent, yielding a compound annual growth rate of 15.6 percent.
'The Board of Directors believes that continued dividend growth is an
important part of delivering strong returns to Oxy′s stockholders,? Dr.
Irani said.
Stockholders also received updates on significant 2010 activities in
Oxy′s three core oil and gas producing regions, where 51 percent of
Oxy′s worldwide production was generated in the United States, 38
percent in the Middle East and 11 percent in Latin America.
In the United States, Oxy acquired properties in new core oil and
natural gas producing areas for the company. Oxy expanded its modest
position in North Dakota′s Williston Basin with the purchase, during the
fourth quarter of 2010, of approximately 174,000 net contiguous acres.
These assets, which produce from the Bakken formation and are
prospective in the Three Forks formation, gave Oxy production interests
in the Williston Basin of approximately 6,000 BOE per day as of the date
of purchase.
Oxy also strengthened its position in Texas, where the company is the
No. 1 oil producer, through its purchase of close to 93,000 acres of
natural gas-focused assets in South Texas during the first quarter of
2011. The South Texas assets are currently producing approximately 193
million cubic feet (Mmcf) per day of natural gas.
In California, where Oxy is the state′s largest acreage holder,
acquisitions last year extended the company′s position to 1.6 million
acres, the vast majority of which are net fee mineral interests. Oxy is
currently California′s No. 1 natural gas producer and No. 2 producer of
oil and gas on a BOE basis, and the state continues to be a significant
driver of Oxy′s U.S. production growth.
The Middle East also continues to be a growth region for Oxy. In early
2011, Oxy was selected by the government of Abu Dhabi to develop the
Emirate′s Shah Field, one of the largest natural gas fields in the
Middle East. Oxy will partner with the Abu Dhabi National Oil Company
(ADNOC) to develop high-sulfur content reservoirs within the field. Oxy
will hold a 40-percent working interest, with ADNOC holding 60 percent.
In Iraq, Oxy and its consortium partners continued expansion of
production at the Zubair Field. Current gross production at the Zubair
Field is approximately 280,000 BOE per day and is expected to grow over
the next several years. Oxy also is continuing to increase production at
the Mukhaizna Field in Oman ? now over 15 times higher than in 2005,
when Oxy assumed operation of the field.
In addition to Oxy′s partnership in the Qatar-based giant Dolphin Energy
gas project ? the premier transborder natural gas project in the Middle
East ? Oxy has continued its 16-year relationship with Qatar Petroleum
and has grown to be the second-largest oil producer offshore Qatar.
Preliminary tabulation of stockholders′ votes was also announced: all of
the Oxy Directors were re-elected; the selection of KPMG LLP as
independent auditors was approved; two stockholder-sponsored proposals
were not approved; stockholders approved the company′s executive
compensation; and stockholders voted to have an advisory vote on
executive compensation every year. The final vote tally will be
available by May 12, 2011, in the Report of Inspector of Elections as
well as in a Current Report on Form 8-K, both of which will be available
at www.oxy.com.
Looking ahead, Dr. Irani said, 'In 2011 we will maintain our focus on
delivering growth and profitability and building stockholder value. We
continue to target production increases through our large inventory of
oil and gas properties and projects, and we will pursue new growth
opportunities that meet our criteria for financial returns. With our
quality assets, proven business strategy and robust financial outlook,
we are confident that Oxy will continue to be a top-tier performer far
into the future.?
About Oxy
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United States,
Middle East/North Africa and Latin America regions. Oxy is the fourth
largest U.S. oil and gas company, based on equity market capitalization.
Oxy's wholly owned subsidiary, OxyChem, manufactures and markets
chlor-alkali products and vinyls. Occidental is committed to
safeguarding the environment, protecting the safety and health of
employees and neighboring communities and upholding high standards of
social responsibility in all of the company's worldwide operations.
Forward-Looking Statements
Statements in this release 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 actual results to differ
materially include, but are not limited to: global commodity price
fluctuations and supply/demand considerations for oil, gas and
chemicals; political risk; not successfully completing (or any material
delay in) any expansions, field development, capital projects,
acquisitions, or dispositions; higher-than-expected costs; accidents or
other operational interruptions; changes in tax rates; exploration
risks, such as drilling of unsuccessful wells; and commodity trading
risks. The United States Securities and Exchange Commission (SEC)
permits oil and natural gas companies, in their SEC filings, to disclose
only reserves anticipated to be economically producible, as of a given
date, by application of development projects to known accumulations. You
should not place undue reliance on these forward-looking statements
which speak only as of the date of this release. 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. U.S. investors are urged to consider carefully the
disclosures 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.
Occidental Petroleum Corporation
Richard S. Kline (media)
richard_kline@oxy.com
310-443-6249
Or
Chris
Stavros (investors)
chris_stavros@oxy.com
212-603-8184
On
the web: www.oxy.com
