Occidental Petroleum Monetizes Non-Strategic Permian Resources Acreage and Enhances
Permian EOR Business Resulting in Higher Net Production
Occidental Petroleum Corporation (NYSE:OXY) announced today that it has agreed to a number of purchase and sale
transactions in the Permian Basin. On a combined basis, these transactions require no net cash outlay and add approximately 3,500
barrels of oil equivalent per day to the Company’s production. Occidental will reduce its Permian Resources position by 13,000 net
acres, divesting non-strategic acreage in Andrews, Martin and Pecos Counties and adding incremental acreage to enhance a future
core development area in Glasscock County. Occidental also agreed to increase its ownership interests and assume operatorship of a
CO2 enhanced oil recovery (EOR) property.
“These transactions support our pathway to breakeven at $50 after dividend and production growth and our long-term,
returns-focused value proposition. The combined results accelerate cash flow and enhance our future returns by exchanging
low-priority development acreage for low decline, low capital intensity EOR production that has significant opportunity for value
improvement,” said Vicki Hollub, President and Chief Executive Officer. “By monetizing assets in the tail of the portfolio that
were not strategic to us, but are synergistic to other companies, we are creating value for our shareholders.”
The net Permian Resources transactions will generate proceeds of approximately $0.6 billion. The divested acres had no
significant near-term development plans while the acquired acreage provides additional value within the future development area.
The Permian EOR transaction included the acquisition of working interests in the Seminole-San Andres Unit, a premier CO2
flood, interests in the Seminole Gas Processing Plant, source fields at Bravo Dome Unit and West Bravo Dome Unit and the Sheep
Mountain and Rosebud CO2 pipelines for $0.6 billion. Occidental has had an ownership interest in these EOR assets since
2000. Seminole-San Andres Unit will become Occidental’s largest domestic oil producing EOR unit.
All the transactions are expected to close by the third quarter. An updated investor presentation, which includes additional
details is available at: http://www.oxy.com/investors/Earnings/Pages/Investor-Presentations.aspx.
About Occidental Petroleum
Occidental Petroleum Corporation is an international oil and gas exploration and production company with
operations in the United States, Middle East and Latin America. Headquartered in Houston, Occidental is one of the largest U.S. oil
and gas companies, based on equity market capitalization. Occidental’s midstream and marketing segment gathers, processes,
transports, stores, purchases and markets hydrocarbons and other commodities. The company’s wholly owned subsidiary OxyChem
manufactures and markets basic chemicals and vinyls. Occidental posts or provides links to important information on its website at
www.oxy.com.
Forward-Looking Statements
Portions of this press release contain forward-looking statements and involve risks and uncertainties that could materially
affect expected results of operations, liquidity, cash flows and business prospects. Actual results may differ from anticipated
results, sometimes materially, and reported results should not be considered an indication of future performance. Factors that
could cause results to differ 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; not successfully
completing, or any material delay of, field developments, expansion projects, capital expenditures, efficiency projects,
acquisitions or dispositions; uncertainties about the estimated quantities of oil and natural gas reserves; 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;
reorganization or restructuring of Occidental’s operations; or changes in tax rates. 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. You should not place undue reliance on these forward-looking statements, which speak only as of the
date of this release. Unless legally required, Occidental does not undertake any obligation to update any forward-looking
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 I, Item 1A “Risk Factors” of the 2016 Form 10-K.
Occidental Petroleum Corporation
Media:
Melissa E. Schoeb
713-366-5615
melissa_schoeb@oxy.com
or
Investors:
Richard A. Jackson
713-215-7235
richard_jackson@oxy.com
On the web:
www.oxy.com
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