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OXY Occidental Petroleum

Participants
Jeff Alvarez VP, IR
Vicki Hollub President, CEO & Director
Cedric Burgher SVP & CFO
Oscar Brown SVP, Corporate Strategy & Development
Kenneth Dillon SVP & President, International Oil and Gas Operations
Douglas Leggate Bank of America Merrill Lynch
Paul Sankey Mizuho Securities
Devin McDermott Morgan Stanley
Ryan Todd Simmons & Company
Paul Cheng Barclays Bank
Pavel Molchanov Raymond James & Associates
Brian Singer Goldman Sachs Group
Jeanine Wai Barclays Bank
Roger Read Wells Fargo Securities
Call transcript
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Operator

Good morning, and welcome to the Occidental's Fourth Quarter 2019 Earnings Conference Call. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Jeff Alvarez, Vice President of Investor Relations. Please go ahead.

Jeff Alvarez

Elisa. you, Thank and Fourth everyone, for in participating Good XXXX thank Conference Petroleum's Quarter Call. Occidental morning, you

On presentation the and and President on call of and with Hebert, includes refer Business International us today are Development Operations; Gas will Senior slides officer; Officer; on our to to Slide website. ahead. Dillon, please section BJ Burgher, regarding now will Vice Oil The Financial this Vicki. cautionary Strategy, and This statements Chief morning, we go of Vicki over I'll X Cedric Senior a Brown, Chief the available the on Integrated the Vice statement Oxychem; that Supply. Investors call and President Ken morning. President, Oscar Executive Vicki, turn forward-looking Hollub, President be call made President,

Vicki Hollub

you, of integration progressing well. everyone. Jeff, Oxy our business morning, and is Thank one Cohesive extremely The good into

of synergy ahead are schedule from capture value We program. $X fully billion to our

repaid approximately best people We the related assets our to leverage results. acquisition, place to have X/X superior the debt have outstanding we in operational and of our deliver to

over As driven to of industry technical century Success first of the a success you was to solving. XXX-year world, forward XXXX our and may Oxy's will Oxy's many marks ability ceaseless attributes, and innovative adapt and anniversary. to next combined our in our quickly same expertise, drive by to know, lead These leadership sustainability low-carbon through defining be problem with XXX our approach unique ensuring years. integral the

product to with intensity, employees drilling and or focus continue delivering our results, thank deleveraging capture the the responsibly whether on maximizing targets. fourth quarter their margins on remarkable plants operating to Before best deliver value-capture who and and I'd on wells efficiently, chemical capital I like excellent progress, value our industry-leading touch work is hard our

continue passion to to with positive results. teams Our lead drive

the at while best history. our are they people safety Every what they achieving in day, demonstrate that do, exceptional our performance

to Slide X. Moving

of innovative the The teams sustainable before intend is we forefront us challenge. our industry. energy for at the and our an As opportunity ready and and leader, are energized to be immense,

Our of maximize characterization subsurface assets. competitive us value in the expertise, is advantage that our to allows technical particularly a

core positive and maintain markets our in are prolific in we assets basins of the All positions free-cash-flow which dominant operate. or

primary, focused provide combined multiple cash maximize options. when assets, taking margins, advantaged Our short high-return includes nature portfolio into tertiary of high-return cycle secondary to conventional low-decline recovery with opportunities the short-to-medium especially to position. our capital development cycle, and our decades account assets of our allocate flexibility The unconventional with midstream

metric has in the to as become Leading the us important relevant operator as industry the years ahead. this will been low-cost always progressively

methods our excellence more currently decades in to the attractive industry As lowest-cost be operator technical secondary enhanced leadership COX become and of in advanced primary additional multiple from barrels tertiary and recovery basins. recovery, basins recovering oil and us across position

As and we the expertise utilize subsurface acquired productivity operating are cost. to improve our we will reduce developed, and full-cycle assets

us enables and with high-return shareholders. flow produce our return barrels, to free ability to decades Our diversified inventory generate to to portfolio high-margin of sustainable our cash

Foremost, our company. in dividend, which the form is the one of defining characteristics of our of

Oxy fronts, boldly on emissions. drive and reducing including must leader, innovative an improvement As sustainable all

initiative company is the globally. effort important flaring World is I'm sustainability were woven commitments. Our oil Bank's we commitment U.S.-headquartered that the fabric aligned to with first to to into our routine endorse reduce organization. our gas the proud strategic of fully and This

low-carbon executing excel a with through of lense world. reducing future in to our greenhouse an our of plan of unmatched being for a the best-in-class the and portfolio while assets We operator goal emissions strategy

demonstrate our X. quarter a we best-in-class operator. as full quarter combined continued first as moving company, The and fourth Now our to Slide a to was position

board. the across outperformed businesses Our

our our X.X of long-standing We BOE that $XXX capital of combined billion. accomplished This remains commitment from less to production this while of guidance per demonstrates than discipline capital paramount. $X.X operations BOE spending year day million million day. the exceeded by continuing full per XX,XXX midpoint company Our budget

That BOE XXXX budget Pro barrels grow said, year in have forma expect to also X% if the sharply days, not intensity production are exceeded does and XXXX this we less commodity full we $XXX prices already current guidance for for create the And by another industry-leading million. our reduced day. our per capital produce declined as in to our demonstrates we've and base, environment off more recent XXXX higher value XX,XXX will improve. by spending global production Spending we to prepared capital reduce lowered shareholders. by

and the retain needed. are budget closely to the situation adjust if our flexibility We monitoring

We applied $XX We in execute divestitures fourth sales and flow Total our of In $X integral Returning the from $XXX recently to closed our sale billion dividend, of in claim. debt, to through we is of the to shareholders cash consecutive our net record we sector-leading billion XXXnd on This to companies of asset quarter. these approximately million. the part January, the an repay dividend can free our divestiture announced South quarterly philosophy. proceeds our block aggregate close of million outstanding of continue an an and cash of $X.X that few program. proceeds for Africa follows

quarter, grow. $XXX fully we we cash, of returned million amount fourth In an continue the to expect approximately to

to Moving Slide now X.

including value synergies, We have and and operating we closing synergies. of of capital of on and since perform synergies run-rate our capturing target a million outperform expectations million the $X million continue basis, $XXX the synergies. billion Since synergy XX% $XX acquisition of completed overhead to through -- acquisition, $XXX closing

$XXX our enable million fully year will us expect We in overhead cost promised. than to that our a achieve success target synergy XXXX, in originally lowering earlier

Anadarko divestitures million date, $XX.X towards with with cash We in acquisition, billion the the to of progress our acquisition for the the of I net from significant also of $XXX flow debt raised earlier. referenced We the announced repaid free target that since $XX divestitures along taxes have demonstrating totaling achieving proceeds closing billion. XX% closed

second $X close. of of debt transactions remaining balance the billion on by in meet approximately sheet XXXX sight total closing line repaid necessary since Our target. have has our the half clear debt and to XX% of a decreased divestiture We the

our with significant achievements Operationally, to the as our cost accomplish potential as reductions are much more.

now to Moving Slide X.

As an on let's we the what have Anadarko, acreage. at Delaware accomplished example, look Texas legacy

development cost applying advancements Oxy to are are We fewer Delaware recovering we Similar capability by acreage. the with made approach. and on barrels more unique wells per section our and subsurface lowering legacy

Permian showcasing the Already, we a area, Silvertip our operator Basin. a as have record in premier well ability in drilled the

improving best-in-class our market. capital by continuously time We to intensity Permian enhancing are

XX,XXX prior first Silvertip, drilled to five in the this just than our deal, faster We wells XX% the foot start. those is closing drilled and

to improvements more many have We implement.

$X.X well rates toe million at trading Oxy's at by saving design. higher of already utilizing are pressures. pump Atlas per completion much casing the advanced We're the able well with We stages, particularly frac to lower

design completion produces Our faster pump less stimulation, improved significantly times uses water. and

the our the optimized spending by including total oil. when in acquired X% we expertise count, less capital improved more has is practices. recover simply, applying XX% assets are and base best Oxy's greatly management across to well unmatched operability Put and asset

flow downtime on the also Our the acquired has of for value. which seeing improvements other is by acquired Delaware across and downtime efficiency drive acreage. assets, Basin improving many production relentless XX% reduced cash We're further

leaseholders us short with we to significantly diligently activity core are our allowing near-term laterals, wells areas. maximize focusing development value and reduce partners Additionally, on obligation in and to long-term our working by

our As to each update we progress. track the success do, Slide quarter the X of committed shows had to measures we'll

portfolio company the created with across the have We to position ample a allocate efficiently capital sector-leading with from returns. of strength opportunities

significant debt synergies. We in and made have assets, divesting progress reducing capturing

As continue and reduce return strengthen enhance long-term for even our ability balance cash shareholders. sheet value our part shareholders, of creating we to our will more to debt, commitment to our to

and I'll financial guidance. you call Cedric, to now our hand the who through will walk over results

Cedric Burgher

how integration our Thank our you, of And within results. is very well Completing with I'm Vicki. Vicki are program as well proceeding. schedule teams outstanding mentioned, ahead delivering hand. our operational pleased capture is value also

integration to commitment shareholders. progresses, returning in As remain our capital discipline we capital to our steadfast and

in a to basis. less our lowered spending our and excel $XXX while demonstrated ability capital combined XXXX, BOE $X.X We billion our on operationally costs budget of than million operating

advancements for lower budget billion to XXXX Our $X.X $X.X our by million capital value-capture the have to year. billion capital enabled us and to $XXX intensity

the Since of raised, closing deleveraging as repaying closed. the acquisition, we Anadarko continue will by new we have XX% debt our balance strengthened transactions divestiture sheet are and additional

progress have already XX% will confident We achieved making. I run-rate are that and we XXXX synergies, am our the illustrate of financials annual

maintaining our more this a capital-efficient flow XXXX, a expect we savings, originally our by meeting to XXXX, and free manner. capture stated. optimizing In expect we our target operating operating year than earlier focused of and overhead to we remain XX% on of year. In synergies million Furthermore, $XXX than capture cash capital dividend fully in

per which represents program of We in enhance have oil significant over day, price a flow will barrels oil environment. for production. a XX% our cash This implemented encompassing oil low hedging XXXX, XXX,XXX

fully As before improving we operational a our it results previously have reflect realizations. be financial and mentioned, transition our rapidly will performance period synergy

quarter, an Occidental's a costs $X XX well The loss $X.XX at fair reported of of $XXX as diluted on announced adjusted reflecting WES acquisition. the diluted the investment difference per million to results mainly we and In share. to value due billion between a is per $X.XX fourth loss of share in adjusted related equity reported and loss December as

offset and Oil gas adjusted October. quarter Qatar our represented quarter Anadarko $XXX to oil an primarily to full from volumes the income a segments. business million and legacy as partially due the fourth our international to in increase production quarter, prior Turning crude contracts of compared terminated in assets, early lower by of

noncash tightening the despite volumes and product our compared differential income equity the third Plains investment surpassed adjusted production of decreased to many quarter of due and units MEH which of to fourth sale outages with and million, OxyChem which softer the mark-to-market quarter midstream the and Marketing fourth due WES, scheduled to losses, $XXX quarter. plant quarter overall lowered income income Midland sales the lower to demand, million lines. $XXX across includes in guidance third of

without a XXXX, first sheet For the in of financial our quarter we fourth without balance statements WES. full we of Starting XXXX, quarter the present WES. consolidating will consolidating reported

For the which growth full X%. of annual have production we first guidance, XXXX, and includes quarter provided year

of the Hosn the First several effects quarter planned production turnarounds well at Resources. as large Al developments planned as timing pad Permian reflects Dolphin in guidance -- and downturn

in As tracker in proceeds update by our in of billion reduction we continue reduce net see the applying $XX can divestiture taxes and investors so our presentation, flow, towards of we cash our debt earnings and will divestiture target asset deleveraging. XXXX debt to free progress

progress. Vicki. providing the back call updates forward look to now I'll turn our I to on future over

Vicki Hollub

as over become provide increasingly we few updates and improvements next Cedric the enhancements will said, As quarters evident. our continuing

hydrocarbons more recover decades, its has innovatively For reservoirs. Oxy proven from to ability

operate short-to-medium We have to cycle portfolio that a unique we low-cost will are assets our as perfectly the expertise of technical ensure high-quality, develop and operator. leadership maintain to our positioned

our ability returning We'll future. our now differentiated continue the of This steady low-carbon cash track record our into success and to our combined long and your sustainability with to for shareholders. the strengthens will ensure questions. open call This, strategy excess

Operator

Instructions]. [Operator

Doug The today comes first of from Leggate America. question of Bank

Douglas Leggate

Vicki, questions, may. if I've I got two

macro one sight $XX significant year. underway upper fairly of suggested on middle progress. the The by November billion of this release to of I'm first line is now. disposal right your Obviously, is a wondering, XX your target press there the just end change

And color just on still for confidence has to mixed be the timeline and on that can whether Algeria an Ghana, there or assets. color some the I'm specifically, to appetite those you wondering -- where the Any seems news on assets? that give and if reiterate associated is any target. So buyer update

Vicki Hollub

a divestitures. Okay, our Doug, full I'll update actually give let Oscar on

Oscar Brown

so Doug, Vicki. regarding start Africa. Thanks, Great. with we'll --

to and of course, of the work and divestitures. of we a Africa, governments Total positive the Regarding Algeria towards continue with resolution Ghana

with you associated something we as substantial We'll So so closing certainty, have timing and report both is become risk, increased more to when more that's there an clear. point about. out, talk

assets, these to cognizant as very in what's remain to definitive comment in very to agreement these again, we're by Total that already. them In retaining be beyond public sensitive Africa, are we constituents. clear, bound interest countries just to all -- their it's but with hard to also these and foreign investment assets, their important And around our is

I I So to can But a careful of that. couple we say. things think be want with

debt probably high significant know, flow as used assets very cash and down are to Algeria in and that you Ghana As quality, pay we've produce the well.

brought voted the Algeria the Algeria, has of observe, -- the thing of president, -- one is that In a Total, with is I which can new case I our deal has in in a since obvious, the guess, administration. our announcement new

that fluid. situation, pretty in is So particular,

we processes remaining look that hit So $XX that, to without as our the divestitures. with we -- of numerous hasn't Africa million to if sales or run hit is we'll changed, all commitment asset and as sales continue something you at the

So way is grant. to we really a great asset come in up keep protect the best but land that's that's these like an the broader another private. the sale, address as We example, that example to processes again, is question to found press your value,

such is some press Wyoming. So has from producing and also million use, other gas, mineral as wind that but primarily from forth. farms that. been grazing asset hard primarily trona, in minerals surface revenues and oil coal, X and acres acres X royalties, There's It over over and so and surface on includes million and from

a of large is competitive qualified in of States. participants that in United a communicated one clearly that. is And of It of asset. number asset be and mineral largest this state the the land while the owners and a winner will the process, in lot there's So interest

So again. going to example, do we that's a we're to think -- $XX lot get whole that But to We ideas our an and things pursuing. billion. of -- other don't actually we list we're those off do want

And everything it's really do, we important, too.

a to still about timing, we're we that relates the months done it environment, these the I stick our to timeline to announcement, the original original need back we to As original in in to XX remain confident the at little by Anadarko X get transactions understand market value. since And We're the announcement $XX schedule closing. and XX be committed on from get focused we'll frame. we acquisition, may But protect to billion our flexible of deal. value. within months time this

So portfolio. as we've of a of and terms assets and in certainty focused We're look, counterparts again, got team good We're we're mentioned, of dealing -- still in because, of a record got with of focused closing our over our divestitures. on on confident track we've billion all good $XXX value. success. We've

little give that a hopefully, color. helps So

Douglas Leggate

I months That's There's help if so, time? follow-up, but synergy on a it's rapid -- Vicki, quicker. all, can't pretty point. the And you're I'm done. But it getting very to know if the operational I only, synergy guess, just done reset that I thorough. My well, other you've number. progress first Oscar synergies X on in. of is really said leave potential at wondering it target obviously what ask, I'll seeing some And you're things. there. and

Vicki Hollub

that now approach our other we've we business amazing. that pretty to that can But progress synergy do. some organization focused is And of our been to that the I we sure know, as think, and -- the And for the reset the that certainly, been emphasize the quickly. target that reason outlined I at working things actually tell done that progress goal. we've capture Shell a versus own own all making point. we that our as and can you I have EOR you company, to we own on we're and part want synergies got we completed structure on We has and

worked on those few We've past the optimized years. over and

So we that felt model working us. had business was well a we for

He Dillon, So international who with we offshore any Gulf Ken team. of of business under assets Anadarko our working manages We projects. their units. and Mexico the has of up have major most now operations our structure brought rolled experience and the into leadership started our the

incredibly we of those, Anadarko. Gulf most managing team some Mexico importantly, Oxy good the in brought people, retained an he's good So but from

Palmer's it there leadership. Rockies and brought domestic we business our under the just then operations unit business under the unit, created Robert And

-- similar we we guys work the the culturally, really thing culture But the Anadarko that to to just those kept was did for quickly off we to It's same or been that was And in. bring we what I had with that. organization fortunately, employees good found brought were culture. the second that credit Jim and so right And thing And the in to us that bat. have. very Hackett do one were -- the to bringing the we start able

capture has too. It's and to they're And of Thanks the this outstanding the his process synergy performance and owned. part and for the certainly a we that leadership, but schedule thing ahead it's Jeff quickly amazing so of that driven just of Permian us, not there. Bennett making that sure Resources, was

Some companies will bring them use in consultants throughout process. the and

that to ensure and this and composed teams throughout we organization, We where and out then internal of the help business we're of specific and have what full working are, know team the goals and units tracking know that that are, the ambassadors weekly. an know they're working ones our numbers, are the go -- them

X. job very dive has committee have Dick be into led done is very, information -- board those a -- very progress that Poladian, the and to by that's board of quickly. on Dick team, We integration Our engaged has driving part an actually a and great drive a

So culturally, there. organizationally, we're

sooner, units. coming it advance continuing we're our may that some The Anadarko of technical are business call synergies. the some that may in happening that happening part not things picked up. of a other and of are synergies our the operations, But in where there we but other are our to own good in elsewhere things capability, assets -- They we

to like of to it just I'd So cover to Ken some Dillon kind turn of those. for him

these as things the of time and these working but that this are of find on. things the some over quantify you'll are with share think I kinds you, -- will we're that

Kenneth Dillon

year this optimum making Oxy Drilling sequencing. in to of of a we on capital the potentially If Vicki. XX% X% started we're Mexico and bit We've roll already savings with wells about contracts synergies first Dynamics, renegotiated to the between we program. see date, with reduction the little out Gulf talk and Thanks, an cost

a expect year. in of We XX% durations reduction shutdown this

The of of delighted maintenance Oxy follows further visited HSE year in Mountain members will our Board next their uptime. to year. desert staff Deepwater a were Oman in programs contractors Horn this the And spar lead Directors emphasize to Oxy we the improvement and commitment per last to Safa' and to XX% that offshore recently, the visit in

this Oman. new per wells. Oxy block we've a on for day, completion XX,XXX in-house we saw something call we XX tools XX in jetting. It's which of records new to and developed Moving year piloted We technique, BOE

XXX% of the of So far, not able talk field costs. and in to an seen future wells on X% between optimizer Mukhaizna. being previously increase in looking D&C to It's of we've tracking, for We improvements new IPs the XXX% and Oxy calls. it talked about on more I'm about forward

models Mukhaizna with reservoir And steam to continue in engineers. which saw covered area. of the to X% area, actual the at the field. for in about are production In high-speed cloud. now a we oil of the steam decrease and increase our So the X% pilot allocation is making running system recommendations increases of XX%, the pilot We in

Colombia, year-on-year, flood we In the and XX% increased continuous the off by steam kicked production project. Llanos Teca we at

So the optimizing we're at development barrel partner, binding good plans Ecopetrol. $X XX of our resources million and of a our with XXXX. far, teams XX barrels we've in cost wells, drilled a delivered exploration, In

resources our added over portfolio. XXX years, the you last if So they've look to barrels million X of

U.K., we winter Dhabi, day feed of this X.XX. for at schedule, so on saw on increasing track plant as capacity And record to the Abu XX.X Al AMAC a awarded the in we our we're of part quarter MBOE Hosn to production trials. per

HES So break production year innovate to the continue peak with overall, and and records. a good performance,

Vicki Hollub

Remember, have proceeds divestitures. XXXX maturities. repaying thing and And just the last X% debt one with no debt we're on

do sense $XX right cash of our retaining So generating assets around flow, it We flexibility while pertains urgency annual the Brent. certainly investors' the at we have as around cash million lowering of now to example, for $XXX Africa share, debt. are flow

do have some that. we flexibility with So

Operator

The of next question comes Mizuho. from Paul Sankey

Paul Sankey

to And Oxy. paying to the that it really for you would less environment is about be cut case it being CapEx actually investment in is? priority you the want -- reassure us as Can really difficult dividend no and keep very the your keep order Vicki, to much as dividend it? the highest at oil paying that is

Vicki Hollub

Yes. Paul. Thanks,

repurchases, our it's policy things XX dividend our probably priorities, Our operations, certainly, it last dividend which cash is that. And first, after on our is, what we and for those flow come approach it's are. to maintaining the been the after maintain operations. capital based years And share

do other structure have to cost do to pay So flexibility impacts we continue that to our dividend. -- our the to

but Our scenario, this drive because through the cost we to intent efficiencies enormous today we is that in are don't expect and with have reductions. I our with this flexibility things of and to flows, situation. balance the teams improvements again, last, portfolio we this good to that doing can think, we cash our last but We're actually a -- situation

Paul Sankey

obviously, Understood. could for at it more And conceivably go flexibility I bit of your just could just moment, talk growth talk clear, about because if you to is could or you important your flexibility a the people. to cut? mean, you growing, And about flat be negative. you're growth some

what Secondly already could done you're just program, the think that be divestment said, Is I've thing people? gone line-by-line. you because reiterating important midyear, and to reiterate $XX other will But to online? the seen re-reported you I or you've read that it that's billion. clear, Obviously, sorry, the through by have very on finally, then

Vicki Hollub

address right. the first, dividend you're I'll and

-- scenario the environment a how certainly, the will don't have coronavirus We long we're -- in. built around this know last. We currently impact

continuity plans. we scenarios started And is done we at business for look in we've to situation initiated longer. what this our be looks do we've where to would lower what various actually a So and

lower So to the flexibility growth. first we growth our to have no

production. our Beyond to lower still have that, flexibility we that go and even maintain than the

hit. or being case. prices in a above bit. are coronavirus I we're because a the Because our beyond where the that, past we assets is said prices decline that the we've in of we remember If to by could and actually production that an lower that high-growth little the $XX So we this allow were scenario before -- think driven and now, -- have, event,

to for with in So we situation not that a going scenario that the have. it us that this with scenario would we believe long -- that's we is put it a so that last can't deal

So got and would make decisions on triggers. in, we've lines built scenarios and pull we've those time when got we

address So we're well this. prepared to

achieve And $XX scenario given with the their is things are. in will very every divestitures, to what But respect And should billion. we the the I adjust? we're this now the in start to what you trying that scenario? what we're are today, you And confident plans at that think decide company do do looking that will -- to

believe could achieve They but fact Oscar. we our will parties timeline just that the leave their synergies of interested can't I be in the We the situations some I'm that impacted travel. going believe the some can't that by pass right But now, it that countries. to of we're

are there -- that? what have have would you our on so And lay do be. impacts some could could interaction some that of travel more counterparties Oscar with

Oscar Brown

Yes.

you and summed up pretty that's Vicki, well. fair, think it totally I

whether and to -- of we've say sight got processes we be of So is travel, of midyear we've I'd what line the environment got to this but we've the commodity, got volatility cognizant that. the it's going, all of have

think, focused we're value. I on again,

protect needs little a slip bit that. the to So to timing

I I understandable that you'd look for think we it's agree. think if flexibility,

Vicki Hollub

with can the from cash would have -- and Ghana, plan still gotten Bs the a to, But have the go Oscar as process we we we'll that flow if Algeria that work have we still other do same but asset with to I alluded and proceeds we would about believe plan impact. Algeria sales essentially that say replace we Bs,

Operator

Devin The McDermott next Stanley. question from of Morgan comes

Devin McDermott

that given plan capital So spend track if was for synergies asked -- in you I synergies, ranges I around on And for budget the could to of wanted versus original already comment reduction the you to you on, are kind that you've here the how achieve that XXXX made and original impacts build fact capital of your the that specifically. of hoping schedule, questions were XXXX? ahead on some already the the

then to changed about you how give $X.X CapEx far in growth. based it's there, spend ranges? but preliminary Or to a terms out billion of about realization? How those synergy what there. talked range achieve for talked so maintenance on that understand And I guidance X% have scenario far of previously has you been also

Vicki Hollub

billion in on said said, $X.X the with X% was the been that accelerated. we timeline synergies that just expected you has capture timeline. the a we And that Well, growth based to as

have and would we We like and we're haven't get X% play we'd with not that billion, -- a that we that. the what out. get we there's But yet, some to of do out we laid certain that, we X% the So scenario number. believe look working we're the $X.X but obviously, -- is certainly, opportunity that these that with capital. see could just how to lower ideas calculated What like opportunities at other

we we're now, can So we're I'm XXXX what on seeing do about about what say based -- excited and that would just I pretty today.

Devin McDermott

a of oil And Low you're front. business as That wanted to proactive I have. the what approach of into I unique work in some see you're I Great. fitting with you large could given the anthropogenic a of position, meaningful somewhat question, and longer-term think the a Oxy a specifically there, Carbon Ventures doing if makes like recovery enhanced COX my one, business business. profile And it. return ask some Got is of to and was to it Low that longer investments, the in way you that Carbon how Ventures But and set about I of kind opportunity the second thinking use in of And term. relates more to those COX the the bit talk wondering sense. you on that

Vicki Hollub

to going think a for today, significant with generate the and earnings in that's With our otherwise be lower partnerships that what capability of that, don't there's have interest team cash actually footprint. will we business over their flow term, is seeing Longer a to time. us lot carbon companies that

So there there where are a lot that of situations exists. out

sell invest can of ultimately companies scenario reasons, generate and/or now competitive invested that, say can that much or in that can And we going here. in operations COX I a electricity the also interest -- cheaper types electricity this But so that we today. there our partners and to I offsets. can't specifics that we COX to have for provide own be is provide in we our come For where all we've talk others through technology is will by to

with that So air and operations, the net XXXX. XXXX while with combination direct industry late COX for start for we're we'll FEED now, we our electricity process capture, study And then a on doing believe, our cost also lower of the or COX which generating the operations. anthropogenic ultimately the from a construction, providing is power

-- we information. more really all the more of come and will interest that. can't line. exciting a of than and/or those, plus And point, But have and -- year, this buy And I that invest the lots we'll us for start it's say much business offsets, I to think we making at opportunity in lot tell. to end by With others there's we the share of a as to can, of will things

Operator

Simmons next comes Energy. from of The question Ryan Todd

Ryan Todd

-- on mean, maintaining multiyear until I as see a growth? the the over the to start and a -- program And of the maybe modest Maybe what you potential you're the pull I reduced about, CapEx position How reduction? medium-term program talk lot or certain you divestiture targeting basis. of larger guess, of distribution and level debt divestiture larger mean, can this about a dividend you the about of here. targeting I just forward view a trade-offs just a in the faster to in downsides to targeting is there the follow-ups period. versus trade-offs down get a I the between couple benefits you've the talked where to debt maintenance was do growth be debt trade-offs do

Vicki Hollub

think our could delivers doing down want returns. in good at about to to remember down. debt organic in I debt start a to investment in Oscar We to do get ratio, our we bit be X.X% WTI minute. Well, but a $XX growth -- say -- say little that, get I about beyond now, incredibly our going our more a billion that But to the would want here with, $XX

the balance returns So to repairing delivering shareholders We can we what think to we're sheet. both. while our do balance trying is

we're have two? and faster and are are help to the a want what that believe do you can that. we or portfolio, to Oscar, comment in over what time, to so we the working with debt a divestitures make And do we targeting we to both lot really if lower

Oscar Brown

guess, I math. simple just Yes.

So ongoing got billion, in on not or well launch we $XX whether prepared Africa. to said, we of excess clearly, or we've close processes

to right? suggesting, any kind this like. to do that more just we a like, the we sell we than be assets, do deals We've under -- you're what clear, we things done really So able purpose competitive need in got across pull have market be scenario be to lot we've of to for don't

grant is where land from an it's The Its value oil one, is interesting the relatively price. volatility and elsewhere. in immune gas

so things are to we'll of kind And these try accelerate.

of if volatility, forward. them few So moving clearly, where couple it this them. we're we a And them, can value slows forward, it down where of protect down slows a moving

it's it's portfolio effort. and So big a a approach,

Ryan Todd

the you on slide through number you how defer have conventional around globally? do requirements there presentation Colombia? the where Okay. I sort run Oman, in outlook multiyear limit the you timing What one, on of in the like is the And of world. places kind assets a a maybe your timing you of and conventional mean, assets Abu Dhabi various have can far to activity a

Vicki Hollub

of international all of meeting our commitments conventional currently on our are all We assets.

to very that good We what partner of that particular, our delivering said very we're had we governments those doing in in job sure do, So delivering a capital work areas less closely we I where the think can, is than that. about Oman, and better the results make we're with talked in and we originally some Ken with we activity would of we and companies optimize anticipated.

commitments. So we're of think our conventional that well doing all with I asset

Kenneth Dillon

it's here. Yes, Ken

think on few sheet I walked through a I the quite ones the of earlier.

which blocks. places Abu seismic Energy in Oman, XXXX-XXXX I the XD in last the year ahead, target million our we day. for got XXXX. the you well COX, well. well interpreting like We're with. through going project gone working the XXXX, XXXX, Things we timeframe. seismic there, We've we plenty put Al Dhabi. think with takes are to main moving company the we're expansion track And It's design is has is going In Hosn studied White Shah scalps expansion, a captured XX per on well. of on

rate We've well. got going technical Exploration XX% $X, success a wells. costs XX% rate barrels. success about and there, just commercial under our are That's binding

I we So for off all think overall, kicked Colombia, items the Teca. listed, of

mapped say, well EcoPetrol. coming we're ready then drilling the XX up. And completions, we're for jointly with facilities, I'd getting ahead. costs working Teca First down moving ramp out, wells,

meeting in terms generally that say is which would on-budget one dates, on-time, of on the our of mantras. everything I is Slide So XX

Operator

Cheng of The today next from Scotiabank. comes question Paul

Paul Cheng

should there is may under not way going to that going of to the month targeting? Vicki, cash the be is longer a talking model? to flow about term, you that, the flow? a get you going and it. that are want there the you're at once the the years, But use cash how How the ratio the just target to ratio change that you to shareholder? obviously, next Is repayment debt we is reinvest, Is much debt the much how your on control. business I'm curious or return look X in priority, how

Vicki Hollub

really to scenario we that it where model over of be need the Well, today, we're the feel like assuming under working can growth were time. We X% is you that. we cap that a

think it's need -- don't matter the whether we growth. that to the a oil So have price X% or more what $XX, is, $XX we than no

capital organically standpoint, that is what go a to share deliver investments need repurchases But the we other that. growth generally So to from cash would sufficient. growth the X% think standpoint, we to beyond invest like or excess

ratio, actually. So I time, will it what know over change don't our

Paul Cheng

the And you then? price, rate be call Okay. growth net guys what Brent the target is under, $XX, say, $XX for it, will

Vicki Hollub

our X%. really going prices at capital as oil rate. deliver $XX investment that And adjust to X% the generally business is and go rate up. investment organic $XX We're that an investment growth. run our to optimum not We're capital up -- going will still to manage the

net we developments. present maximizing our of so value want ourselves get to of to don't respect with ahead And

Operator

question The James. Raymond comes of from next Pavel Molchanov

Pavel Molchanov

ago a midstream XX%. XX%, than your reduce will you in so. stake it's units To was that to or Western XX% said months Western less almost few on you midstream the maybe date, When yield

Given how units those under them conditions? any to current of are distressed trading, does sense it make divest

Oscar Brown

It's what well. got less No. we've commitment on Oscar. where we all that we timing then standing below need done in that we've as XX%. terms Generally, one. independently clearly, up flexibility I'll a of to and deconsolidation no. But and do But -- take of and But a have short answer. that's that, get do

price It's We not we're be the something agree, that needs done to But the much shareholder. as more. anybody we right pay away. largest necessarily as

would that So patience some so probably, around sense. clearly make is something that

Pavel Molchanov

aspect on X Okay. X a companies net when decarbonization the One or have ready target timetable that timetable, do the out story. put something a status. a other to XXXX being more anticipate you net to give have your given Realistically, Most for else.

Vicki Hollub

strategy worked around out getting have detailed a fairly already teams Our there.

the outcome of installation a power is In strategy direct line It's milestones defined on of net the capture not anthropogenic time. development that goal. fact, COX an have where program, worked of time we air the a actually and for this they over aspirational

the looks timeframe, what carbon deliver, well, a neutral. be saw not and the we're but So I it would that the last I like XXXX would we last this target, saying -- in is that saw to XXXX of

Operator

The Sachs. Singer next question Goldman of from Brian comes today

Brian Singer

with start couple to questions wanted from earlier. of on a follow-ups I

First, growth land environment, where right you since free your with going you last going grant, to lower dividend versus round flow the to see decline separately, commodity a low-cost from given coming to characterize you And financing then to cash there of debt would additional summer. weigh you now? no How on keep regards taking can from sustained? the brought up the debt

Vicki Hollub

I to say any over in on will the that. time. fact a along especially that with need just barrels we the almost $XX we've do don't our oil would We hedged industry that given debt. with XXX,XXX is take that day. we the sustainable for That, the not not We flexibility have that feel that fact think scenario,

would cash through work to a Resources time flow River, because with our the have little are Basin, this, very bit and actually Permian we to DJ and ultimately, now fast even recovery we production engines. production those with the power the So allow Powder the business decline

today, conventional growth time. profile from allowing would a when possible. lower were to have -- that And that now, ability production assets, flexibility. That we so that recover over we to Remember our have would have the had not back just decline. we But much been had

on to investments investments, dividend. capital is allow -- debt decline. not the organic We we would our would do take So capital we'd pay what

Oscar Brown

Real quick, it's Oscar.

land in flow haven't On about this, the we is But the I think associated with way like inherent grant, cash it the disclosed it. the the assets. value

a -- of the just of of as cash of to current there So in least surface at of and and value minerals the all future so flows as lot forth, the it and much kinds, and again, a minerals today. liquid lot -- and that the of the of in development value the is value that optionality hard and the minerals surface

it have this we of asset in like has on expect do So some of cash impact more with it traditional be because to terms flow, the asset -- potential you'd we sales. asset the the multiple will value expect flow, value higher cash while than

Brian Singer

Great. E&P Powder plays portfolio, and regards Permian the And my then follow-up to two is the with the Basin. River within

you just Permian milestones you highlight the well longer on drive well will laterals versus which and your wondered year extent the portfolio? the that any River that Powder expect within in developing other the On this to Slide what performance And year and see significant for outlook the each performance XX, is increase Basin measures? in and now then you play XXXX

Vicki Hollub

in the pump some that do, about With we but we've laterals, today, way talking the our frac team things XXXX really be from that. Resources Permian -- surprised. the And was XX% to the Well of X% is in can our where see had you not forecasted at the XXXX the clearly on put improvement I they range. way just business, say I'd I our jobs. we to our differences

near to that time. still things improvements can the that reserves. the to wellbore to recover near believe they I've lateral along to and I made some think previously. back stimulate Going further do over on there's the I room full work And more wellbore

I'd plateau think XXXX a number, I we'll don't that from to I do us -- to think expect hate give to So improve. XXXX. but I

I and we'll next going improvement think into this improvement year well. see year as

at that learning our aggressive the team year. offset With that's respect legacy Once the will on they're the incredibly They're the up their appraisal ways. make some in going believe. Powder We'll middle people -- the some activity, to area. we noise done team team good. Permian Resources, the toward of shared sparking they're Powder the is the That this probably there both be won't to operators, They've now Powder very with -- next year. they've what to get I significant we're an information The things they latter pick internal looked river, started, part doing. exciting and Rivers, -- We've all work. River, at Anadarko, looked

Operator

The comes next question of today Wai from Barclays. Jeanine

Jeanine Wai

Can of This we're or the on question and lot those discussion tailwinds. is spending both play couple CapEx. on the is so years? I Jeanine. mean, could rates thinking be how So potentially depending had growth maintenance decline quantify trends over Permian you rate, on could decline, Permian moderate the next maybe that a and of facilities-related We've would also far. of CapEx maintenance first My

Vicki Hollub

we is down The intensity that the at from and in capital-intensity that really look low right is a we XXs. capital standpoint, way see our now

the so that? And have the you And recovering our maintenance capital designing designs, time. so that shouldn't reserves do fracs ultimate over any significantly with believe our more from increase essentially can I make that think numbers optimizing they Jeff, sort we same that around we base around efforts of that production. the are

Jeff Alvarez

maintenance mean, Vicki that base is, think a you're with gets said, a your the is, with improve, larger capital expect we would even what as significantly that rate, to you on lower maintenance what's lower for the get said, normally obviously, then base, higher. is you go bigger, what to continuing with Permian going expect on I capital, Yes. capital happen. decline. Jeanine, drives what Vicki getting maintenance the growth wouldn't much and I to at Resources intensity But And up which

with We of to costs you're not lower place. areas improvements you're will And time already facilities because in able in leverage shouldn't opening that decline. lower as you get because fronts, facility that we up the or performance, see new the mentioned, new are

will business on to front. continue So get that better that

Jeanine Wai

really to is and respond great. prior up on interesting. Okay, Vicki, That's lower-for-longer willingness your My following comments second a question about on just activity, to scenario. potentially

little that the said environment. a or could depending you decline maybe You go on bit, even ex-growth

CapEx imply there could be reducing that that the and off Does non-D&C pushed for that all isn't year really activity. just any the non-D&C with CapEx

in So it's we and oil XX%. budget, the the those, that noticed CapEx about X gas and facilities of exploration between

could scenario there's keep and push that the maybe that off kind going. a machine you So of still some of potentially

Vicki Hollub

through first start the would first. lower capital capital to be go. goes less We've the that tiered capital, that And we having having to this, productive Yes. go we as and so our

developments our Now this CapEx that be where But be of would our what would could there that's future that a in where given we scenario, mean we facilities optimizing could in are percentage. a the kind higher in exactly point do.

Operator

question will final The come of Wells Read from Fargo. Roger

Roger Read

Gulf discovery, of like of possible, then the XX, I mentioned guess, Eastern on Mexico if additional and targeting you one Gulf the the thing exploration on touch I'd to in exploration on, out-years. or obviously, Slide the chart Mexico

Gulf a, question Permian that general it, other maybe in keep the that in does overall were think that with been with the footing? in we sound you stable about a the of relatively in lower-for-longer company? to sort and in exploration business the Gulf, oil keeping the idea production one that's you of call goals about manage constraints How sensitivity fit going here the period CapEx prices, on with need there the the asked on As end where on do and

Kenneth Dillon

cash It's the it's not generates of -- I'll one. of net a Essentially, flow. large that Ken. Gulf It's only free production Mexico flat. amount keeping take

on over that our the which focuses So XX-year flow frame. goal cash net constant is relatively a really plan, to free have keeping time

Horn really look better. was also. That better on continues of Central previous gun As interesting love and a call, I to originally our we one looks mentioned assets Mountain.

So we can we also activities see really where tiebacks. participating good areas. in around opportunities ongoing those near-field And for consolidate we're

back maintain -- going compete the really, ago. way portfolio. steady great all which goal we free history, flow are long barrels with the everything barrels, have cash that's So from really in teams, years the past can long-term to high-margin in the Oxy is net that And

Roger Read

a then great. Okay, And follow-up question.

Since other been earnings next the for the season. things front on, into you that's structure just and be to all mentioned, want gone deep Board You some we'll there on? of of shareholder the in time change terms on initiatives that proxy any change the in accessibility you'd that. have the curious, comment has call, probably obviously, was I an

Vicki Hollub

Shearer X. and would our Sure. Andrew's operational strengthen last financial March execution Andrew further of our leadership to think announced that's Gould effective that in will July the join in Recently, we of going And Directors. to board, complements to year. that the be we the addition adding board decades of Board Andrew Bob industry

a Board. So feel that process to and our about those part experience we really like of brought different excited were that's some we're new adds two

down appreciate is year's to Oxy the this succeeded year. Jack part as and to will who Gene probably Moore, of Jack, formal as the year, first annual not a had. succession and they've that seek independent Vice approved last as has our indicated Accordingly, been meeting, Board. also has do chair this Batchelder succession ever Chair this be chair he this Gene the role step process, the through And But chair has the will gone reelection plan, by board he'll that Gene I after

has So that year. worked process well this

the Additionally, a stand decided us to indicated board for has Spencer while reelection. now, not that served he has has for Abraham to

also grateful was So our committee. then I that for He's is, to Abraham the chair. X And the wanted we're highlight this their integration audit other their committees to I for contributions the the Mr. Batchelder that and board. mentioned service mentioned and new leading Poladian both Dick Mr. I thing year already

that big and the and as structure of integration a the been successful helping he's as follow it's make part So us been. metrics

also, global -- recognition really, Foran the has earned to highlight her, proactive Sustainability I leadership that But Peggy's governance, want Shareholder the Committee. been and issues around Engagement shareholder outreach and governance engaged key appointed want Peggy Board. leader that thought and has Chair corporate further this us of as and more a committee committee, the to that in That committee expertise our leadership and to appreciate we much to engagement. help proactive and and be brings shareholder we on she concerns

is last the So that that one fact made very that, accelerated businesses. only acceleration information pleased And acceleration to, two possible -- like with I'd of our do the that with the our of of very, synergies. what integration that, I'm was we synergies those again, reiterate to is by

you and that and have expect saw quarter I quarter in little coming pass to about can you charges first quarter, wanted fourth just it to bit talk Cedric a both to the one-time first that up? occurred what the

Cedric Burgher

Yes, great.

So are paid costs there's and the been to a different. they so questions here confusion, up the costs are going the try actually in of magnitude and around timing clear with logically some of one-time expensed number also cash to when will when and because the respect timing out to be we're

expense the through approximately fourth year, to incur we million to cost. in an item. million this And we integrated integration is billion that in quarter, an additional expect $XXX incurred costs, So and $X.X related $XXX

out was $XXX be out cash paid the in -- year million be in out paid this quarter, will that XXXX. remainder balance fourth the through of So and total paid expected to

So these They're phenomenally as paybacks it, good we with the looked are at paybacks. very good moves.

these incurring enable expected. to our bottom line sooner benefits earlier the flow so than will process it in originally And to costs the

we reflect Very year. Vicki this think ahead schedule. beginning to about of So the mentioned, financials are as plan significantly excited and we And are that that. going that

Vicki Hollub

with call our thanks employees close of and who have the Thanks good all to I'll of our -- today. and again, participated you a day. Okay. to all on another

Operator

attending today's for Thank The conference concluded. presentation. has now you

disconnect. You may now