Financial Data and Key Metrics Changes - In 2024, Occidental Petroleum Corporation generated 4.9billionoffreecashflowandpaidapproximately800 million in common dividends, achieving its near-term debt repayment target of 4.5billionsevenmonthsaheadofschedule[7][8]−Thecompanyreportedanadjustedprofitof0.80 per diluted share and a reported loss of 0.32perdilutedshareduetoanincreaseinlong−termenvironmentalremediationliability[40][41]−Thecompanyended2024withover2.1 billion of unrestricted cash after repaying 500millionofdebt[45]BusinessLineDataandKeyMetricsChanges−TheOxyChembusinessgeneratedover1.1 billion in pre-tax income in 2024, exceeding original guidance [15] - The midstream segment outperformed, with adjusted pre-tax income surpassing the midpoint of the original full-year guidance by approximately 600million[57]−TheOilandGassegmentachievedrecordproductionof1.33millionBOEperdayin2024,exceedingtheupperendoffull−yearguidance[10][12]MarketDataandKeyMetricsChanges−Thecompany’sUSonshoreproductionwasdrivenbystrongperformanceintheDelaware,TJ,Midland,andPowderRiverBasins,contributingtorecordproductionlevels[10][11]−Thecompanyexpectsfull−yearproductionin2025toaverageapproximately1.42millionBOEperday,representingmid−single−digitgrowthfrom2024[47]CompanyStrategyandDevelopmentDirection−Thecompanyaimstomaximizecashflowbyinvestingprimarilyinshort−cycle,high−returnassetswhileadvancingmid−cycleprojectsforfuturecashflowresilience[34]−Thecompanyplanstocontinuedeleveragingandhasauthorizeda915 billion net debt target by early 2027, despite commodity price fluctuations [92] - The company highlighted a commitment to operational excellence and innovation, with a focus on safety and sustainability [65] - Management noted that 2025 will be an exciting year with improved technical capabilities and asset portfolio [66] Other Important Information - The company achieved a reserves replacement ratio of 230% for 2024, with a year-end proved reserve balance of 4.6 billion BOE, the highest in its history [12] - The company is advancing its direct air capture (DAC) technology, which is expected to deliver long-term value and contribute to US energy security [18][20] Q&A Session Summary Question: Gulf of Mexico outlook for 2025 - Management indicated a busy year ahead with maintenance and drilling activities expected to add significant production [74][75] Question: Extension of the Echo Patrol JV in the Midland Basin - Management confirmed similar terms to previous agreements and plans to drill about 23 wells [80] Question: Rockies program in 2025 and its evolution - Management acknowledged lower activity levels but highlighted embedded efficiencies and infrastructure investments in the Rockies [86][89] Question: Debt reduction trajectory towards $15 billion target - Management remains comfortable with the timeline, projecting early 2027 for achieving the target [92] Question: 2025 guidance on production and service costs - Management expects a 7% improvement in drilling and completion costs, driven by operational efficiencies [99] Question: International M&A considerations - Management expressed satisfaction with current international assets and plans for growth in existing operations [103] Question: Permian oil cut increase in 2025 - Management confirmed an increase in oil cut due to unconventional growth and contributions from Crown Rock [112][116]
