OCCIDENTAL PETROLEUM CORPORATION

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1 OCCIDENTAL PETROLEUM CORPORATION Vicki A. Hollub President & Chief Operating Officer Credit Suisse Energy Summit February 23, 2016

2 Cautionary Statement Portions of this presentation 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," "would," "should," "could," "may," "might," "anticipate," "plan," "intend," "believe," "expect," "aim," "goal," "target," "objective," "likely" or similar expressions that convey the prospective nature of events or outcomes generally indicate forward-looking statements. Factors that may cause Occidental's results of operations and financial position to differ from expectations include but are not limited to: global commodity pricing fluctuations; supply and demand considerations for Occidental s products; higher-than-expected costs; the regulatory approval environment; reorganization or restructuring of Occidental's operations; not successfully completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects, acquisitions or dispositions; lower-than-expected production from development projects or acquisitions; exploration risks; general economic slowdowns domestically or internationally; political conditions and events; liability under environmental regulations including remedial actions; litigation; disruption or interruption of production or manufacturing or facility damage due to accidents, chemical releases, labor unrest, weather, natural disasters, cyber attacks or insurgent activity; failure of risk management; changes in law or regulations; or changes in tax rates. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this presentation. Unless legally required, Occidental does not undertake any obligation to update any forwardlooking statements, as a result of new information, future events or otherwise. Material risks that may affect Occidental s results of operations and financial position appear in Part 1, Item 1A Risk Factors of Occidental's 2015 Form 10-K. 2

B/S; lower risk Free cash flow Consistent dividend growth Oxy Uniquely Positioned $50 billion Company Market Cap ($B) COP $41 EOG $37 APC $21 PXD $20 APA $15 MRO $6

3 Why own Oxy? Large Integrated Majors Independent E&Ps Company Market Cap ($B) XOM $328 CVX $156 RDS $142 TOT $100 BP $94 ENI $51 Characteristics Low or no growth Higher returns Stronger B/S; lower risk Free cash flow Consistent dividend growth Oxy Uniquely Positioned $50 billion Company Market Cap ($B) COP $41 EOG $37 APC $21 PXD $20 APA $15 MRO $6 Characteristics Generally higher growth Lower returns Weaker B/S; higher risk Little or no free cash flow Little or no dividends Moving from gassy to oily Oxy has positive elements of both groups, appealing to investors who seek a combination of moderate growth, above average returns and consistent dividend growth. Updated as of 2/5/2016 3

4 Why own Oxy? Balance sheet Ended 2015 with $4.4 Billion cash Debt of $8.3 Billion (25% debt to capitalization ratio) People Maintain and continue to develop staff Increase use of advanced technology and data analytics Portfolio of Assets Long life cash flow assets Significant growth potential Flexibility to ramp activity up or down depending on market conditions Strategy Invest in projects that generate long term value with returns above cost of capital Leverage fast growth Resources with low decline EOR 4

5 Key Messages & Strategy Overriding Goal is to Maximize Total Shareholder Return We believe this can be achieved through a combination of: Oil and gas production growth of 5% to 8% per year over the long-term; Executing on our capital program with a focus on growing our U.S. oil production Allocating and deploying capital with a focus on achieving well above cost-of-capital returns (ROE and ROCE); Return Targets* Domestic 15+% International 20+% Continued improvement in our capital and drilling efficiency Start-up of long-term projects Providing consistent, annual dividend growth; Maintaining a strong balance sheet. *Assumes moderate product prices 5

6 Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Share Repurchase 5. Acquisitions 6

7 Execution Of Our Strategic Initiatives Closed the sale of Williston Basin properties Progressed our efforts to exit from non-core operations in Middle East Reached understanding on terms of payment with the Republic of Ecuador for ~$1 billion. Continued progress on construction of the OxyChem Ethylene cracker on schedule and on budget for start-up in early 2017 Exited 2015 with ~$4.4 billion of cash Libya Bahrain Yemen Williston Sale 16 MBOED FY15 Iraq $0.6 bn pre-tax proceeds MENA Exits Ongoing 60 MBOED 4Q15 Core Assets 7

Oxy Runs A Focused Business Oil and Gas Focus Areas United States MENA Latin America Leading

Qatar Additional opportunities for growth with partner countries Highest margin operations in

OxyChem High FCF, moderate growth business.

8 Oxy Runs A Focused Business Oil and Gas Focus Areas United States MENA Latin America Leading position in the Permian Basin Permian Resources is a growth driver Al Hosn Project, Oman and Qatar Additional opportunities for growth with partner countries Highest margin operations in Colombia. Additional opportunities for moderate growth with partner. OxyChem High FCF, moderate growth business. Oxy Midstream Integrated pipeline and marketing business to maximize realizations. Oxy will be positioned to grow Oil production Earnings & Cash Flow per share ROCE Dividend stream 8

9 Permian Basin Is The Core Domestic Asset Oxy Acreage Oil Pipelines CO2 Pipelines Largest oil producer and operator in Permian Basin. Significant investments in infrastructure to support the upstream provide low operating costs, advantaged realized prices and competitive advantages. ~60% of Oxy s Permian oil production is from CO2 related EOR projects Oxy s most profitable business. The EOR business (mainly CO2) will continue to generate significant FCF. Permian Resources is the cornerstone growth asset of the domestic business. Substantial acreage position with significant resource development potential. We have shifted toward horizontal drilling and expect the Resources business to grow rapidly. 9

10 Oxy is the Largest Permian Basin Producer Total Operated Production, Thousand BOEPD Cumulative % of total 2.3 million BOEPD Source: IHS Energy Feb and Mar 2014, 6 MCF/BOE excluding estimated CO 2 production. 10

11 2016 Permian Strategy Given the current oil price environment, we will focus on investment to achieve four core goals: Accelerate geoscience, characterization and modeling programs to enhance recovery, productivity and field economic returns Minimize base decline and set up major growth programs in both Resources and EOR segments Focus resources on game changing technologies and applications Accelerate continued improvements in execution and cost 11

Inventory Based on Q4 Costs 100% ~3,400 total locations economic at less than $60 / barrel which is an increase of approximately 700

12 Permian Resources Drilling Inventory Continuing to lower economic hurdle points through reservoir characterization and optimization, improved productivity, reduced well costs, and faster time to market Total of ~8,500 locations in horizontal inventory Drilling Inventory Based on Q4 Costs 100% ~3,400 total locations economic at less than $60 / barrel which is an increase of approximately 700 locations from previous version Better Well Productivity and Lower Cost 40% 48% 60% ~350 locations economic below $40 / barrel 4% 14% 12

Permian Resources Production Growth Total production grew 40% yearover-year to 118 MBOED. Oil NGL Gas Oil production grew 49% year-over-year to 76 MBOD.

13 Permian Resources Production Growth Total production grew 40% yearover-year to 118 MBOED. Oil NGL Gas Oil production grew 49% year-over-year to 76 MBOD ~123 Oil production is expected 98 to continue to grow at rates higher than total 75 production. Reached goal of 120 MBOED in November, one year and one month ahead of original goal Q15 2Q15 3Q15 4Q15 1H16E Production (MBOED) 13

14 Permian Resources Cost Reduction Permian Resources Operating Costs / BOE $15.00 $10.00 $5.00 $13.20 $13.03 $11.39 $10.87 $9.73 Focus on reducing field operating costs during 2015 Downhole expense ($/boe) reduced 34% from 4Q14 Company operated operating expense down ~30% ($/boe) from 4Q14 $- 4Q14 1Q15 2Q15 3Q15 4Q15 Surface Downhole Supports Energy Other 14

Permian Resources Manufacturing Mode Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST Delaware Wolfcamp A 4,500 HZ DRILL DAYS Delaware Wolfcamp A 4,500 HZ $12.0 $10.9 50 45 43 $10.

15 Permian Resources Manufacturing Mode Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST Delaware Wolfcamp A 4,500 HZ DRILL DAYS Delaware Wolfcamp A 4,500 HZ $12.0 $ $ GROSS WELL COST $MM $8.0 $6.0 $4.0 $2.0 $- $5.6 $6.2 $5.5 $3.2 $2.8 $5.3 $2.9 $ Current Best Q15 2Q15 3Q15 4Q15 Best Drilling Completions Rig Release to Rig Release 15

7,500' Hz GROSS WELL COST $MM $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- $9.

9 2014 Current Best DRILL DAYS East Midland Wolfcamp A 7,500 Hz 50 45

16 Permian Resources Manufacturing Mode Move to Manufacturing Mode Significantly Reduced Well Cost WELL COST East Midland Wolfcamp A 7,500' Hz GROSS WELL COST $MM $12.0 $10.0 $8.0 $6.0 $4.0 $2.0 $- $9.2 $5.5 $3.7 $6.0 $3.7 $5.3 $3.4 $2.3 $ Current Best DRILL DAYS East Midland Wolfcamp A 7,500 Hz Q15 2Q15 3Q15 4Q15 Best 13 Drilling Completions Rig Release to Rig Release 16

17 Permian EOR CO 2 Supply & Processing Stable and low-decline base production at an advantaged cost Permian EOR business remains profitable in the current downturn EOR business is expected to generate free cash flow this year in the current oil price environment Infrastructure would be hard to duplicate 17

18 World Leader in CO 2 Enhanced Oil Recovery U.S. CO 2 EOR Projects Size of bubble = CO 2 EOR Production Volume 3,500 Number of Injection Wells 3,000 2,500 2,000 1,500 1, Kinder Morgan Exxon Hess Apache Anadarko Chevron Denbury Occidental Number of Projects Inject 1.9 billion cubic feet a day Operate 31 CO 2 EOR projects Oil & Gas Journal 2012 Biennial EOR Survey 18

Permian EOR Cost Structure Permian EOR can operate at cash costs as low as $22 per BOE $35 2015 Permian EOR Cost Structure $55 WTI, $3.00 NYMEX $35 2015 Permian EOR Cost Structure $35 WTI, $2.

19 Permian EOR Cost Structure Permian EOR can operate at cash costs as low as $22 per BOE $ Permian EOR Cost Structure $55 WTI, $3.00 NYMEX $ Permian EOR Cost Structure $35 WTI, $2.00 NYMEX $30 $2.7 $30 $25 $4.0 $25 $ / BOE $20 $15 $4.7 $4.7 $ / BOE $20 $15 $4.0 $2.2 $3.2 $1.8 $10 $10 $5 $14.1 $5 $10.8 $0 Well, Surf Maint Injectant Energy Taxes SG&A $0 Well, Surf Maint Injectant Energy Taxes SG&A Sensitive to O&G Prices Partially Discretionary 19

20 Permian EOR Cash Costs Cash Operating Expense ($/BOE) $/BOE $25.00 $20.00 $15.00 $10.00 $5.00 $20.82 $20.03 $18.16 $18.36 $16.46 Cash Operating Expense reduced by $4.36 / BOE in 4Q14 to 4Q15 Savings were driven by productivity gains and supplier cost reductions Well maintenance job productivity improved 32% in 4Q15 versus 4Q14 $0.00 4Q14 1Q15 2Q15 3Q15 4Q15 Supports & Other Injectant Workover / Well Enhancement Energy Surface Ops and Maintenance Downhole Maintenance 20

both Main Oil Column & Residual Oil Zone Requires

21 Denver EOR Unit: Battery 5 Development Waterflood Primary CO 2 Battery 5 Redevelopment Project: Develops both Main Oil Column & Residual Oil Zone Requires deepening 150 wells Develops 21 MMBOE net at a $4.80 per BOE 21

22 Hobbs: CO 2 Flood and Expansion Areas North Hobbs: Phase 1 added 35 MMBOE (Injection started in 2003) Phase 2A Project will develop 13.7 MMBOE at $13.82 per BOE (Injection Starts in 6/2016) ~93% oil production North Hobbs Oil Production South Hobbs: Started CO 2 injection into Phase 1 in September (ahead of schedule) Phase 1 & 2 will develop 28 MMBOE at $10.60 per BOE 100% oil production 22

Permian EOR ROZ Projects development cost ranges from $3 - $7 per BOE South Hobbs Residual Oil Zone ( ROZ ) Potential: Four pattern to begin in 2016.

23 Permian EOR ROZ Projects development cost ranges from $3 - $7 per BOE South Hobbs Residual Oil Zone ( ROZ ) Potential: Four pattern to begin in Full ROZ expansion: ~50 patterns; 80 MMBOE Stranded Oil in the Residual Oil Zone by L. Stephen Melzer, Advanced Resources International and the U.S. Department of Energy, February

24 Permian EOR is a Large, Highly Economic Resource Unrisked, gross resource potential of up to 1.9 billion barrels 2015 EOR CAPEX = $500MM Complete and begin CO 2 injection at South Hobbs Unrisked, Gross Reserves and Resources Start Expansion on North Hobbs CO 2 Expected to generate free cash flow in current oil price environment. Undeveloped CO bn Developed 2.0 bn EOR and Resources deliver advantaged scale, infrastructure and expertise synergies across Permian. Undeveloped 0.3 bn 24

Permian Summary 2016 activity focused on core locations with minimal infrastructure investments Analyze appraisal data to support future development and initiate seed projects for long term growth in

25 Permian Summary 2016 activity focused on core locations with minimal infrastructure investments Analyze appraisal data to support future development and initiate seed projects for long term growth in EOR EOR Resources ~ ~ Reduce rig count in Permian to 2-4 rigs Technical staff and engineers will focus on long-term projects, enhancing base production, and preparing full field development plans for to ramp up activity when oil prices recover Q15 2Q15 3Q15 4Q15 1H16E Production (MBOED) 25

2016 Capital Outlook 2016 Capital Budget ($ in bln) $5.

exceed hurdle rates of return $2.8 - $3.

the Permian Basin and to completing long-term projects in Chemicals and Midstream In Permian Resources, drilling activity

26 2016 Capital Outlook 2016 Capital Budget ($ in bln) $5.6 Carefully reduce activity levels without harming the strong progress on growth prospects Fund only those opportunities that exceed hurdle rates of return $2.8 - $ plan approximates expected cash from operations at around current prices Majority of the program will be allocated to the Permian Basin and to completing long-term projects in Chemicals and Midstream In Permian Resources, drilling activity focused in the Midland and Delaware near existing infrastructure, to achieve higher returns E Maintenance Sustaining Growth In Permian EOR, a modest increase for building out facilities and systems to handle and inject greater quantities of CO 2, with 1-2 year production response time 26

Committed Project Capital Declining Committed Project Capital ($ in millions) $1,300 Multiple long-term investments to drive cash flow and earnings growth Al Hosn Ethylene cracker JV $800 Ingleside

27 Committed Project Capital Declining Committed Project Capital ($ in millions) $1,300 Multiple long-term investments to drive cash flow and earnings growth Al Hosn Ethylene cracker JV $800 Ingleside terminal Gas processing $500 $100 Capital spending will continue to decline and cash flows and earnings expected to grow as projects start-up E 2017E Increased flexibility on capital budget in 2016 and

28 2016 Capital Breakdown Oil & Gas 2016 Capital Budget $2.8 - $3.0 billion Chemicals 18% Permian Resources 21% Midstream 16% Exploration & Other 4% International 24% Permian EOR 17% 28

29 Oxy Production Growth Total Oil Production* (MBOD) Total Company Production* (MBOED) * Ongoing operations; excludes Williston & Hugoton production volumes 29

2016 Production Outlook Expect total production from core assets to grow 2% - 4% over 2015 levels Core assets exclude Bahrain, Libya, Iraq, Yemen, Williston and Piceance Basins Full year contribution

30 2016 Production Outlook Expect total production from core assets to grow 2% - 4% over 2015 levels Core assets exclude Bahrain, Libya, Iraq, Yemen, Williston and Piceance Basins Full year contribution from Al Hosn and start-up of Block 62 in Oman should add ~35,000 BOED of production Modest increase in Permian Resources and flat Permian EOR Company-wide Oil & Gas Production from Core Assets (MBOED) ~ % Core Assets Production Growth in 2016 Core Assets 2015 Other Domestic Declined Permian Resources Growth Al Hosn Full Capacity Block 62 Oman Start-up 2016 Core Production Outlook 30

31 Improved Cost Structure Production Costs ($/boe) $13.50 $11.57 Overhead (SG&A) ($ millions) $1,503 $1,270 Expect continued improvement in cost structure Strategic Initiatives Lower workovers Lower downhole maintenance Lower energy costs

0 bn Financial flexibility to invest through the cycle and return cash to shareholders Annualized cash flow changes ~$100 million for a ~$1.

32 2016E Sources & Uses of Cash 2016 Illustrative Sources & Uses of Cash S&P Rating affirmed at single A with stable outlook Ecuador Payments & Asset Sales 4Q15 Annualized Cash $42 / barrel ~$1.2 bn ~$3.6 bn Debt Reduction Capital Program ~$0.7 bn <$3.0 bn Financial flexibility to invest through the cycle and return cash to shareholders Annualized cash flow changes ~$100 million for a ~$1.00 / barrel change in realized oil prices Beginning Cash Balance ~$4.4 bn Dividends ~$2.3 bn Annualized cash flow changes ~$40 million for a ~$0.50 / Mmbtu change in realized natural gas prices Sources Uses 32

33 Cash Flow Priorities 1. Base/Maintenance Capital 2. Dividends 3. Growth Capital 4. Share Repurchase 5. Acquisitions 33

34 History Of Returning Cash To Shareholders Period ending 2015 ($ in Billions) Cash Dividends Share Repurchases Combined 3 years $6.0 $4.3 $ years $9.6 $4.4 $ years $14.0 $9.2 $23.3 Additionally, over the 10 years ending 2014: We reinvested $45 billion of capital in the business; We made cash acquisitions of $22 billion; Our long-term debt increased by only $3.9 billion. We spun off California Resources Corp. to Oxy shareholders in 2014 valued at ~$2.3 billion. 34

35 Summary Key to Success / Strengths A key to long term success is to take advantage of this downturn to improve our future: Major cost structure changes Data Analytics Further advances in improved recovery Technology (new or different) Investment in people Technical excellence of our Portfolio expansion people Diverse portfolio Two businesses in one of the best basins in the world Long life, low decline, value adding, cash flow generating assets Flexibility to ramp up or down depending on market conditions Conservative balance sheet Continuing Dividend Growth Strategy to maneuver through this environment 35

OCCIDENTAL PETROLEUM CORPORATION. Stephen I. Chazen President & CEO Bernstein Strategic Decisions Conference 2015 May 28, 2015

OCCIDENTAL PETROLEUM CORPORATION Stephen I. Chazen President & CEO Bernstein Strategic Decisions Conference 2015 May 28, 2015 Key Messages & Strategy Overriding Goal is to Maximize Total Shareholder Return