Occidental Petroleum (OXY) at Howard Weil

Occidental Petroleum

Stable cash business is on Texas and California – about 75% of reserves - low capex required.

Permian Basin – core of company business – continue to make small acquisitions – good time to make acquisitions now because banks have stopped lending to levered players – and MLP’s are getting their “well deserved demise.”

California – underexploited area but difficult to drill. More growth here than in Permian.

Middle East – North Africa – Dolphin Project in Qatar is completed.

Oman – steam flood project in Oman – 173 wells in 2006 and 2007.

Libya – 30 year agreement signed – good growth expected here.

Latin America – Colombia and Argentina. Colombia Cano Limon field is legacy field near the end of its life.

Chemicals

Capital allocation policy – projects must meet minimum returns and be competitive with stock buy backs.

Company takes very little reserve risk – most areas they know reserves are there. They are unhedged.

Spent $1.13 billion to buy back stock in 2007 – Company authorized another 20 million shares in 2008.

Company not happy with G and A expense per barrel so put in cost reduction program.

Long term production growth rate of 5-8% - maintain at least an A rating to compete against larger oil companies.