Barclays Americas Select Franchise Conference Occidental Petroleum - PowerPoint PPT Presentation

Barclays Americas Select Franchise Conference Occidental Petroleum May 15, 2018 Cedric Burgher Chief Financial Officer

Cautionary Statements Forwa ward-Looking oking Stateme ments nts This presentation contains forward-looking statements based on management’s current expectations relating to Occidental’s operations, liquidity, cash flows, results of operations and business prospects. 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 presentation. 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 actual results to differ include, but are not limited to: global commodity pricing fluctuations; changes in supply and demand 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; technological developments; uncertainties about the estimated quantities of oil and natural gas reserves; lower-than-expected production from operations, 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; failures in risk management; and the factors set forth in Part I, Item 1A “Risk Factors” of the 2017 Form 10-K. 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. Use of non-GAAP AAP Financi nancial l Informa rmati tion on This presentation includes non-GAAP financial measures. You can find the reconciliations to comparable GAAP financial measures on the “Investors” section of our website. 2

Occide dent ntal al Petr etroleum leum Cor orpo poratio ration n (Oxy xy) ) is a returns High Quality Assets Provide a focused energy company with operations in the Sustainable Value Proposition United States, Middle East and Latin America Oil & Gas  Focused in world leading O&G basins Oil an Oi and d Ga Gas s (O&G) (O&G) Core Core Are Areas as 1  Large scale and long history Total Company Production ~609 Mboed  Low base production decline 66% Oil │ 14% NGL │ 20% Gas  Recognized low cost operator of choice 66% Gas Production from International Unit ited ed Stat tates es Midstrea ream m  Integrated infrastructure and • Leading position in the world-class Permian Basin: acreage, production, asset diversity & Mark rketing ng marketing maximizes O&G price • Resources Unconventional capability: high-margin growth realizations • EOR advantage: scale, reservoir quality and low-decline production  Extensive gathering and transportation pipelines, processing, and export system Chemica cals ls  Leading manufacturer of basic Middl Mi ddleEast East chemicals used for various • Focus areas – Oman, Qatar, and UAE products including plastics, • Opportunities for growth with partners Latin Amer Latin America pharmaceuticals, and water • Low-decline, long term contracts • Highest margin operations treatment • Colombia Opportunities: growth in  Assets with strong focus on exploration, primary development and EOR development with partners stable returns Low-Co Cost st Opera rator r with th Scale le 3 1 Production as of 1Q18

Returns turns Focused cused Oxy’s Unique Value Proposition Growth wth Consist sistent nt Dividen dend d Growth th ROCE Lead ader ership ship > Growing dividend with an attractive yield > Value protection in down cycle Growt wth h wi with thin n Cas ash h > Promotes capital allocation discipline Flow Return eturns s Focuse sed d Growt wth > 5% – 8+% average production growth in oil & gas Rob obust, t, Low-Co Cost st > Above cost-of-capital returns Inven entor ory > Return Targets: U.S. – 15+% International – 20+% Strong ong Balance nce Sheet Industr stry-le lead adin ing g Decline cline Rat ate > Maintain ample cash balance and sources of liquidity > Low debt-to-capital ratio Execut cutiv ive e Compen ompensat sation ion > Income-producing assets Align gned ed 4

Delivering Consistent Annual Dividend Growth 2002 – 2017: Oxy dividend CAGR 12% vs S&P CAGR 7.5% ($/share) $29.52 Annual Dividends Paid $28.00 $26.44 Cumulative Dividends Paid $23.38 $24.00 $20.36 $20.00 $17.39 $16.00 $14.51 $11.95 $12.00 $9.79 $7.95 $8.00 $6.48 $5.17 $3.96 $3.08 $4.00 $3.02 $3.02 $3.06 $2.22 $2.88 $2.97 $2.56 $1.57 $2.16 $1.84 $1.02 $0.50 $1.47 $1.21 $1.31 $0.80 $0.94 $0.65 $0.50 $0.55 $0.52 $0.00 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 1Q18 Ann. 5 5 Note: Dividends paid as per the Record Date

Short and Long-term Executive Compensation Changes Expanded use of returns-based metrics for incentive compensation Long-term Incentives Short-term Incentives 25% of CEO long-term incentive 15% of CEO annual bonus 1 is compensation is determined by determined by CROCE 2 , with a CROCE, with a performance target performance target of 19% of 20%. CEO long-term incentive is 70% performance-based CROCE-based compensation ~20% Impr mproved ed alignm nmen ent t with h shareho reholders lders 2018 CEO Consi nsist stent nt with th our ur histori orical cal practice tices Compensation at Target 1 For CEO, 80% of target value is linked to company performance; 20% is based on individual performance. 6 2 CROCE defined as (Net Income + DD&A + After-tax Interest Expense) / Average (Total Debt + Total Equity).

Cash Flow Breakeven at Low Oil Prices Achieved in 3Q18 Cash h Flow Break akeven en at $50: 0: $5.7 6.0 Dividend + 5% – 8% Production Growth $5.7 Growth h Cash h Flow Neutral ral at $40: 0: Capital ital 5.0 w ($ Bn) $1.0 Dividend with Flat Production $4.5 $4.5 $4.3 Ac Actu tual $4.2 ~$ ~$ 120 MM per $1 $4.1 4.0 Change ge oil price ng Cash Flow Sustain tainin ing Sustain tainin ing Capital ital 1Q18 18 Positi tive Mids dstr tream m and Capital ital $2.3 .3 Chemic micals Mark rket t Abo Above Plan $2.1 3.0 Net et of Middl dle East t Downti time me $4.0 ting 2.0 Operati Curren ent Curren ent Divi vide dend Divi vide dend 1.0 $2.4 .4 $2.4 .4 0.0 1Q18 Annualized Chemicals Midstream & Remaining 32 Cash Flow Neutral Increase in Cash Cash Flow CFFO Adjusted to Marketing Mboed Permian at $40 WTI Flow at $50 WTI Breakeven with $40 WTI Resources 5%-8% Growth Production at $50 WTI 7

Exceeding Cash Flow Expectations Midst stream am Chemicals micals Permia rmian n EOR Mark rket et impr mprovem ements ents: Mark rket et and operati tiona nal impr mprovements ents: Mark rket et and operati tiona nal impr provemen ents ts: • Improved Caustic Soda pricing • Production increased 6% • Mid to Gulf Coast Differentials • Improved PVC pricing • Oil price improved 21% • Export Margin • Lower Ethylene input cost • Gas, NGLs and Sulfur Margin 1,600 1, 1,475 1, 1, 1,365 850 850 800 800 500 500 450 450 430 430 330 330 300 300 285 285 285 285 Brea reakeve keven Pl n Plan an 1Q1 1Q18 Brea reakeve keven Pl n Plan an 1Q18 1Q1 1Q1 1Q17 1Q1 1Q18 Annual nnual Ta Targe rget Annual nnual Ta Targe rget Annualized CFFO $ MM 1 Annual Capital $ MM 8 1 CFFO excludes working capital changes

Shaping ping Oxy’s Competitiv petitive e Advantage antage Permia rmian Execu cution tion Exce cellen llence ce Enhance nced d Recovery Subsur surface ace Technic hnical al Basin in-lea eadin ing g Excelle cellence nce Wells Operat atio iona nal New Mexico ico D&C C Effici icien ency cy & Speed Outper perfor orma mance nce Product uct Transp nspor ort t & Realiza izati tions ons Logistics stics & Strategic egic Avent ntine ine Relati tionshi onships ps Logistics stics Hub Infras rastruct tructure ure Leader Le r in Water r Infrastru struct ctur ure Investment estment Recycl clin ing Investmen estment Producti ction on Transpo sport t Oil Termina nal & & Realizations izations Secure e Takea eaway Logist istics ics & Strategi egic c Relation ionshi ships ps Enhanced nced Oil Uncon Un onvent ntion ional Operationa rational Efficiency iciency Recover ery & CCUS US & Speed ed Le Leaders rship ip Subsur surface ce Technic nical al Excel ellen ence ce 9