8-KOther EventsExhibits & Filings

OCCIDENTAL PETROLEUM CORP /DE/ 8-K Report, Corporate Update (Feb 13, 2009)

Filed February 13, 2009For Securities:OXYOXY-WT

Summary

Occidental Petroleum Corporation (OXY) announced on February 13, 2009, its preliminary proved reserve additions for the preceding year. The company reported a significant production replacement ratio of 210 percent, calculated before accounting for any price-related revisions. This indicates that OXY successfully added more proved reserves than it produced during the period, a positive sign for future production capacity and long-term value. This strong reserve replacement metric is a key indicator for investors in the oil and gas sector, suggesting the company's exploration and development efforts are effectively replenishing its resource base. While the preliminary nature of the figures and the exclusion of price impacts should be noted, the 210% replacement ratio demonstrates a robust operational performance in reserve management.

Key Highlights

  • 1Occidental Petroleum announced preliminary proved reserve additions for the year ending February 13, 2009.
  • 2The company achieved a production replacement ratio of 210 percent.
  • 3This ratio is calculated before the effect of price-related revisions.
  • 4The press release detailing these figures is attached as Exhibit 99.1 to the 8-K filing.
  • 5A production replacement ratio significantly above 100% is generally viewed positively by investors.
  • 6This suggests successful reserve replacement efforts exceeding production levels.

Frequently Asked Questions

A production replacement ratio measures the amount of proved oil and gas reserves added during a period relative to the amount of oil and gas produced during the same period. A ratio above 100% indicates that the company added more reserves than it extracted, which is crucial for long-term sustainability and growth.

Price-related revisions occur when changes in commodity prices impact the economic viability of extracting certain reserves. Calculating the ratio before these revisions provides a clearer picture of the company's physical success in finding and developing new reserves through its operational efforts, independent of market price fluctuations.

A 210% production replacement ratio suggests that Occidental Petroleum added more than double the amount of proved reserves it produced during the period. This is a strong indicator of the company's ability to maintain and potentially grow its production levels in the future through successful exploration and development activities.

No, the filing states these are preliminary proved reserve additions. Final reserve figures, which are typically determined after detailed engineering assessments and year-end pricing adjustments, would be reported in subsequent filings.