LOS ANGELES, May 3, 2002 (PRIMEZONE) -- Occidental Petroleum Corporation's (NYSE:OXY) chairman and chief executive officer, Dr. Ray R. Irani, told shareholders at the company's annual meeting that 2000 and 2001 were the best two years in Occidental's history and that "Occidental has never been stronger and our outlook has never looked better."
"Occidental's oil and gas production has grown by an average of five percent per year since 1997 and we project a continuation of five percent average annual growth through 2005," said Dr. Irani. "This projection is based only on existing projects. If we're successful in capturing some of the new opportunities we're pursuing, the associated production would be added on top of this base."
Occidental's worldwide production has increased by 21 percent since 1997, with the balance shifting from international to domestic operations. In 2001, U.S. operations accounted for 66 percent of the company's total production -- compared to 40 percent in 1997.
"Occidental's shift to a stronger domestic presence lowers our risk profile and provides a large, stable base to support future growth opportunities," said Dr. Irani. "Occidental also has succeeded in replacing oil and natural gas production at competitive prices and in achieving strong profitability on a unit-of-production basis."
For the period 1999-2001, Occidental was the industry leader in profitability and free cash flow per barrel of oil equivalent produced while posting the second lowest oil and gas finding and development costs in the industry.
"While we succeeded in keeping our replacement costs down," Dr. Irani told the assembled shareholders, "we also dramatically increased reserves. From 1997 through 2001, our proven reserves grew by more than 70 percent, with domestic reserves accounting for 76 percent of the total."
Dr. Irani also reported that as of March 31, Occidental's Elk Hills field in California and the former Altura properties in the Permian Basin in Texas had generated $3.8 billion in cash after accounting for capital expenditures -- or 54 percent of the combined purchase price of $7.1 billion. Occidental acquired Elk Hills in February 1998 and Altura Energy in April 2000.
Since 1997, Occidental reduced its debt by $1.4 billion to $4.9 billion in 2001 -- the company's lowest total debt level in almost 20 years. At the same time, shareholders' equity grew by $2.5 billion -- or 81 percent.
"In 2001," Dr. Irani said, "we led our oil and gas industry competitors in total return to shareholders with a return of approximately 14 percent."
Statements in this presentation that contain words such as "will" or "expect," or otherwise relate to the future, are forward-looking and involve risks and uncertainties that could significantly affect expected results. Factors that could cause results to differ materially include, but are not limited to: global commodity pricing fluctuations, and supply/demand considerations, for oil, gas and chemicals; higher-than-expected costs; and not successfully completing (or any material delay in) any expansion, capital expenditure, acquisition, or disposition. Occidental disclaims any obligation to update any forward-looking statements.