8-KOther Events

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report (Jun 19, 2002)

Filed June 19, 2002For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) filed an 8-K on June 19, 2002, detailing a presentation by its CFO, Stephen I. Chazen. The presentation highlighted OXY's strong financial performance and strategic positioning within the oil and gas industry during the 1999-2001 period, emphasizing industry leadership in profitability per BOE and return on capital employed. The company also reported a robust cash flow generation, including significant contributions from its chemical business in 2001, and boasted its strongest balance sheet in two decades. Looking forward, OXY projected a 5% annual growth in oil and gas production from 2002 to 2006, supported by substantial proven reserves spread across various international regions, including the US, Qatar, Ecuador, and Yemen. A key strategic initiative highlighted was the Dolphin Project in the Middle East, a major gas development and pipeline project aimed at serving UAE markets, in which OXY holds a significant stake. The company presented itself as an attractive investment opportunity due to profitable growth prospects, a competitive dividend, a strong balance sheet, and a focus on core assets in both stable US operations and high-growth Middle Eastern ventures.

Key Highlights

  • 1Occidental Petroleum demonstrated industry leadership in profitability per barrel of oil equivalent (BOE) and return on capital employed during 1999-2001.
  • 2The company reported strong free cash flow generation and a robust balance sheet, described as the strongest in 20 years.
  • 3OXY forecasts a 5% annual growth in oil and gas production from 2002 to 2006.
  • 4Significant proven reserves are held across diverse locations including the US (1,698 million BOE), Qatar (200 million BOE), and Ecuador (85 million BOE).
  • 5The company is a partner in the substantial Dolphin Project in the Middle East, aimed at developing gas from Qatar's North Field for UAE markets.
  • 6Debt levels have decreased, with Total Debt falling from $6,326 million in 1997 to $4,890 million in 2001, and the Reserves/Production ratio increasing to 12.9 years.
  • 7The company positions itself as an attractive investment due to profitable growth, a competitive dividend, a strong balance sheet, and concentrated core assets.

Frequently Asked Questions

Occidental Petroleum was recognized as an industry leader in profitability per BOE and return on capital employed for the 1999-2001 period. The company also reported strong free cash flow generation and a solid balance sheet, which was described as the strongest in 20 years at the time of the filing.

The company projected a steady oil and gas production growth of 5% annually from 2002 through 2006.

A significant international initiative mentioned is the Dolphin Project in the Middle East, a large-scale project to develop gas from Qatar's North Field and transport it to UAE markets. The company also holds substantial proven reserves in various countries, including Qatar, Ecuador, and Yemen, alongside its significant US reserves.

Between 1997 and 2001, Occidental Petroleum reduced its Total Debt from $6,326 million to $4,890 million. Concurrently, proven reserves increased to 2,241 million BOE, leading to an improved Reserves/Production ratio of 12.9 years by 2001.