Occidental Petroleum (OXY) 1 Aug 192019 Q2 Earnings call transcript

Good morning and welcome to the Occidental.

Second Quarter 2019 Earnings Conference Call. All participants will be in listen-only mode. [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. ahead. go Please

Good in Alison. and you thank Thank Petroleum’s morning second participating Occidental call. quarter for you, everyone, XXXX conference

turn call moment, Ken Senior Business Supply. Hebert Dillon, President are Vicky. Vice-President, today International Oil Executive Strategy, Senior with OxyChem I to Operations, President just the President, and In the B.J. Gas Vice-President Officer, Chief call Burgher, Officer, Integrated and Vicki Financial Development Chief of will and and and over a Cedric On Hollub, us Oscar Brown,

a contains more expressed cause As may meaning certain and implied or described other to Laws. reminder, fully Federal These subject X. statements, cautionary our in those that the uncertainties actual forward-looking the in these within results statement projections risks today's conference and regarding are statements to call forward-looking differ statements Slide or of Securities from statements on materially

Investor to can the schedules press supplemental and earnings Relations downloaded off non-GAAP be call release, conference www.oxy.com. our website our Our at and the presentation reconciliations GAAP slides

I'll to please ahead. Vicki. over now the go Vicki, turn call

and Jeff you Thank morning everyone. good

recently Gas Before to President, for covering highlights, I was organizational update oil position would the quarter Oxy’s Operations and and and with congratulate onshore, our operational Domestic Palmer. domestic Robert to Oil mention of Robert assets. like second an appointed responsibility gas

our He'll Oman, domestic our Russia. highest He's and Anadarko’s for shareholders. has engineer, ensuring and that Technical a operating in an most the deliver was combined Support. Robert in U.S., Senior the and Vice-President Peru, of recently key returns operations experience assets integrating play role

excess today. will combination Anadarko to to long us know strategy strengthen one and drive and of close our As week on our we companies return you growth acquisition regarding profitable from We're the the months. and the expect many our to position discussions and we've encouraged cash term received our two the will of The over from the truly Oxy by we're excited many last feedback our Anadarko of shareholders. to transaction about shareholders and that combination benefits bring few shareholders, of our

forward also that capture, XXXX, with in to to Synergy core key on operational financial quarter the accomplishments. results start businesses other and look integration updates I'd second We delivered along with the providing like this and morning our the process. quarterly excellent deleveraging some of

confidence The strength business enabled our of shareholders cash dividend future year. and to our our consecutive returning increase integrated commitment our model, to performance in the us XXth for to

from representing increase higher to dividend. generating And cash of we're flow only $XXX working but shareholders, committed capital. on We focused approximately remain XX% continue returned to operations We the in capital. on the capital to also before quarter million shareholders on to returning returns not

our employed Our top capital cash generated achieve in annualized ability quality as assets best-in-class investing tier, to high evident a be XX%. of we returns to on return flow, continues through

cumulative we Permian Dunes Our wells our business well Delaware quarter drilling X% of production the the oxy nearly a the Permian Basin, Resources Across Sand the Greater area. month of another basis, ever wells. bringing by on company's oil in broke the record online delivered XXX second six top in XX total best while

industry. in enhances optimize Our targeted to We're to to scientific those a applying each delivering returns. maximize and reserves as use unit productivity than a to capital of fracs to design approach development proven much shale enhanced models Continually premier intensity at wells and lowest other less the best wells precisely the position subsurface our the us more top the wells profit top enabled the operator our XXX. in

of day, the our hedged will oil have a details minutes. representing XX% implemented for We program hedging XXX,XXX cover few almost of production. oil have per an company's and combined XXXX barrels Cedric

July on to significant strategy. value Shearer Robert our creating long growth a consistent a than board to valuable skills of dividends and quality three record XXth decades stocks. on term dividend for with And we're welcome with our and investment for to is track of pleased His commitment Board. experience brings investors, our more gained joined focus Bob high

joint Delaware excited strategic the also another to The well in horizon We're Midland Delaware and strongest as Anadarko our by of development which of synergies. more significant development Ecopetrol, decade, at least acquisition announced have as by than potential providing our one a with longest venture in new in infrastructure our standing extends XX% Basin partners. the increased the Basin

venture bring few cash Delaware develop developed our next venture an sacrificing predominantly the Basin our we assets current net to this Midland excellent flow. The Midland present XX,XXX growth joint is opportunity our will or develop the of without net acres over any years, forward of As operations production joint properties. to production of drive Oxy’s our value

venture. $XXX will additional an million in Ecopetrol new $XXX cash in joint pay of closing, Oxy exchange the and interest a own in interest will million plus XX% the for operate venture. capital a XX% at carried

carry in Basin development capital activity. Midland currently period, accelerate will XX% we pay Oxy plans the of our where the Oxy’s of During to allowing share Ecopetrol minimal expenditures have

we of our cash also our example of in of existing the XXXX innovative deleveraging. will is the while and ways flow We assets, operations expected maximize which close value the transaction Midland. from can through in production fourth the just to is which This retain quarter one

continues delivered never another pleased our number we're are priority. and successful value shareholder have one satisfied quarter, to but at the to time, be creating We same

have can long we you an on our returning and X, record As unwavering dedication track of Slide to cash see shareholders.

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

Thanks Vicki.

dividend and we of perform core quarter, share to to rate mentioned, $X.XX segments reported the acquisition. with core all quarter, earnings $X.XX of as annual per the our for through difference per reported diluted Also costs returned The as consecutive and Trans to continue $XXX share. we income increased million share year onetime shareholders cash earnings the second dividend, incurred between our of approximately of due Anadarko of business in diluted XXth per to our $X.XX Vickie well. is second an the and For

to demonstrates and to record to shareholders commitment past priority. consistently clearly XX our capital ability dividend top and Over years, our remains returning ensure a our track our grow the

gas prices quarter prices and higher increased income second volumes a compared negative partially offset prior mark-to-market and and gas on oil in crude the lower reflecting natural contracts. the quarter, core adjustment purchase to Oil by non-cash carbon dioxide domestic

across costs. have cost costs, and energy both downhole lowered and operating very quarter. on board, maintenance improvements a barrel volumes, the We and our per compared improved year-over-year basis to are lower These last pleased higher to reflect surface operations costs

operations who continue our and excel field So cost to operations. industry with lead the a to teams, big low congrats

quarter Permian to driven second per at day reported which and exceeded production execution increased per productivity per to Total XXX,XXX and in guidance exploration production BOEs XXX,XXX BOEs new due wells day best-in-class guidance at International day, exceeded Colombia, well Resources, due and production by of guidance BOEs XXX,XXX online. exceeded continued coming

surpassed $XXX of a in second from to the decreased easement primarily OxyChem for Income income executed the the agreement first under soda with due pipeline quarter million with guidance quarter. fees lower prior quarter. prices caustic received the along realized

Midland with significant the negative second the the MEH improved million. impacted Compared guidance the quarter. second have quarter, quarter adjustment did the midstream $XXX first to first business guidance income quarter not for within came Our as The mark-to-market came $X differential the also marketing that within of quarter. approximately of results

in and maintenance. increase planned processing income by full third midstream plant guidance offset XXXX. The was to gas income X details year domestic lower quarter our partially due gas the Slide for

This the section growth of several to developments Resources Permian expect execution the we with quarter, the realized quarter, second is second time change increase market of efficiencies, production substantial slow, our in second third quarter. the significant the accelerating along For to to to the timing half XXXX. related compared in in

a second compared in to Full capital unchanged, at we quarter lower third XXXX As international in begin to quarter international guidance we half year. maintenance remains the Abu will the during and second a due and reduce year Dhabi. production rate reminder, of Qatar to the but expect the activity entered run higher

track spend on our full growth On Oxy while to production capital XX%. within annual a budget to delivering of X% $X.X of basis, year billion remains

our mention XXXX. to new program hedging for we executed like have I Finally that

you have as when completed acquired historically such major Vintage of Petroleum. not Oxy most acquisition has we when a As we except hedged production, know,

leverage the oil low Anadarko a additional acquisition, environment, while provide in we price hedges flow cash the XXXX these assurance With from our that new are additional will is and safe strengthen deleveraging. dividend our

I'll now Vicki. back call to the turn over

Thank you, Cedric.

the portfolio to acquisition extract like share maximize across the how from this our core combined shareholder by uniquely Oxy most to value. is I'd value Now competencies positioned to applying

recovering We ability others track more than and of conventional reservoirs long could. record hydrocarbons have innovatively decade’s proven from

water efficiencies and maximizing We and are recovery. continually recovering improving enhanced flooding oil through hydrocarbons and

Doing automation, XX% the and than oil reach conventional more has cost this and materials sometimes recover required effectively of as other us in lift advanced XX% subsurface to serve methods future. These Today, expertise. less almost we routinely large extensive of as assets. tools Permian artificial expertise, the recovery. us advantage This downhole from reservoirs of for mature from a recovery well the maximizing will competitive is well development

in to More and areas. improve expertise setting recently, developments core in delivering our data in shale our our to development. record resulting approach Delaware high differentiated technologies analytics wells The shale return we have techniques further are breakthrough utilizing applied advanced a basin

Permian acreage assets and to transferable is shale also success in This the our basins. development other of across

expertise technical business to enhanced as model position anthropogenic a use in for that COX our developing us of the we're a Additionally, world recovery. and capture applying will leader oil

for basins, but are locations. forward our to will in technologies of COX River conventional We lower Permian application Permian, international only and recovery the also cost oil across not Powder will recovery that oil enhanced our of in in COX reservoirs bring our conventional and D.J. shales reservoirs, our in the investing enhanced

expertise less Current industry unconventional around leader. be from or Improving a XX% have recovery is opportunity oil the recover we and huge of the only future, the shale to reservoirs. the practices from for

XX, to to you our shareholders has show as Slide how see the return ability cash been expected and excess proposition And acquisition value significantly on financial metrics our can following strengthened.

yield future cash expand inferred industry added cash We've cost, share and leading, our free flow have ability barrels, today's low our we'll to on prices in considerably. based the XXXX margin

Anadarko complementary for core our competencies. of high suited diverse assets, and and quality create well Oxy Combining will a portfolio

all to of cost As in development the our the operate. areas the we we be this low to producer apply we expect combined approach portfolio,

by along it, achieve developments. apply acreage. and across and with For has onshore applied Anadarko’s reduced To costs results and already drilling areas mentioned, drilling offshore we've Oxy expect to that all I've in oxy our we dynamics the XX% date, example, the process, will proprietary we drilling similar least dynamics of at Anadarko expertise

returns best-in-class us believe technologies provides deliver importantly, employees, from opportunity this to for and Most company shareholders. practices acquisition the combine our innovative incredible we assets, great to that each along with best ultimately

forward looking to the and practices are We bring we is employees that yet to taken our operations into haven't will this Anadarko the best upside account.

best combined development have we industry unique a all we our will operating any As scale operate, believe advantage competitive and I due our in the our quality company of the to assets have we areas where company, and/or in a expertise.

areas long and be future growth of any of term in digit risk established areas Investment and partners. have are operations be will and of U.S. we portfolio lower operations operating potential will return, where and will rates the deliver production as our in most our double valued international in our our

the in our a New to of and Anadarko to will existing basin acreage Texas Draw We our the Barilla the to us areas. proximity new operations apply to leading and proven directly the perfectly and positioned in technologies operator This lead. widen our allow The Mexico continuing strategies between directly acreage. Delaware is our heart Basin are are

maximize the positioned the out and with we workflows customized to petrophysical chain plans section, Anadarko to development. maximize in each hub, Anadarko these to and result workflows unlock utilize Our logistics wait additional captured and roll savings Aventine the well supply to -- with development our in our Geomechanical value new can't Furthermore, chain supply our teammates. which is upside will new acreage

on the top twelve-month XX expertise and Slide us of deliver XXX wells enabled based XX cumulative to based a and the approach production, XXX XX subsurface oil six-month of development cumulative oil production. our wells unique that top reinforces on

public from I'd data like pulled manipulation. with to these highlight no directly results that they're sources

to on once the of are chart that a with of of number wells months first chart. also Oxy’s expect -- year six a are enter month chart All on the XX month wells once on data additional month XX least year. been There the at chart we for online they've the full six cumulative

only in wells. resulting operators These profit again all results drilling using Delaware savings, tremendous basin while accomplished and and were X% of less significant total than while capital other the

improvements that allow optimize Slide the next parent to we want our models that emphasize adding XXXX, designs customized minimal gen Turning to to Resources subsurface for continue value. specific our frac Permian spacing In creation the in development expertise XX, child significant enhance with are businesses landing in while and of the well I resulting impacts. to

on Our acre. focus to to of teams have data utilizing per relentless develop which a understanding leads leading economic value subsurface, highest the our a industry deep the

is subsurface now Our and basins additional can to modeling be calibration predictive, value and unlock through other improvements. to performance applied

per had improved is Resources day. on Highlighting that mentioned XX I The XXX% continued XX% peak Permian XX-day of has this and year-to-date from and progress, well from a oil XXXX, XX, BOE rate our XXXX. earlier hour record cumulative production Slide X,XXX setting noted

XXXX Permian business be a price WTI cash in improvements of combined $XX. tremendous positive we will Following capability, these flow expect that at our in

carbon earlier, part which our reducing our projects. play in oil will will in As increase conventional key a strategy our of low recovery I conventional mentioned COX enhanced business EOR cost inventory our reservoirs,

In addition, unconventional it projects resources our in help COX to possible profitable. make and will

lower theirs COX. as with our our greenhouse help projects companies is also note us will It's well. carbon of important and enable operations other to to working aggressively to Our unconventional footprint, our that all business just conventional reduce and lower too, carbon COX not gases, all low will

production maintain remain more find those and Slide low our XX to second, kept cost our dividend per The two and flow these grow On priorities highest two combined to for our cash XX, company. base, sustainably you'll years. our first highest share. We've for priorities priorities near-term are will unchanged than

is next And currently, our priority to deleverage.

meeting assure asset we sales, While program through will we not internal want you we to our we this to are if expect to cash reduction divestiture targets. achieve debt shift capital from that our

We our sales repurchases with our share deleveraging by targets, goal meet said, our until production will will that won't However, to expect we our which X%. enable grow asset to do us complete. is resume

we event the Cedric As potential in the of dividend will transition and including, our of can phase our pressures, integration. price any highlighted, during protect commodity

able hedges we be of $XX if and environment, we are WTI will in to XXXX, price with flat our capital And $XX down to our WTI WTI. unhedged grow while break even will gets place, spending $X.X position below dollar In low keep neutral. as to remaining it with flow in XXXX, cover cash an with In cash, a production $XX back dividend position. we continue billion drop

up, because plan it earlier have to finished and planned. the months six our in confident we originally similar We're track record program completed a second XXXX than we the in of back quarter

our and going continue a heard will chose We then, their As forward. dividend to dividends not robust eliminate dividend when flow and now before reduce pay generation in you or cash breakeven plan grow may downturn our script, have and others protect or dividend. cut say our the we executed us to our a strengthen grow to did and

flow in generate potential, And combined dollar for incremental go will we million cash our annual oil prices, company additional cash up, every movement in significant generating prices have will if flow. $XXX

with billion as our In possible and and for annual generate growth Anadarko's cash transaction thereafter. at shareholder we estimate the production vote excess closing CapEx of $X.X X soon will X%, is flows. anticipate we significant August as scheduled XXXX

our our and that continue safety with employees we unyielding assets focus an on ensure transition, the transaction excellence. close Following will to operate operational

executing to results. our one to our plan companies collaboration begin culture, will create that and emphasizes We bring together two XXX-day delivering

by sales billion to debt. targets and to asset in annual reduce reductions billion, to $XX in billion reduce $X.X set $X $XX deliver spending have capture We billion cost capital

and targets will XXXX, the updates By We've already not delivering will we XXXX. of achieve but provide we'll remainder our year. the during bring synergy these targets, stop will to annual transaction fully our in the begun this shareholders on gains

we it While do. the drives our there and to term, are that everything value is focus shareholders short creation on long-term those our commitment you

returns. As position our long allocate will capital across we with a company opportunities ample of a created with over to term, measure sector-leading the success we strength, portfolio efficiently have from our

debt sheet shareholders. more strengthen will our positioned return reduced to be We level, will our even balance cash to have and

to will combined short summary, unique cycle assets, a can with develop In and incredible expertise set perfectly are ensure to medium people, the operate our we company quality of be have the positioned high technical they low operator. cost to

flow cash along of investment, on our these The that our us assets to significant our shareholders. generate return value with to to capital our will from generate proposition returns will teams enable capital strengthen

We will combined will success into after growth, and Low program, Strategy, future. differentiated long our ensure consistent buyback and more This the initially with continued accomplish sustainability Carbon a de-levering. share that with with our dividend

closing, companies, Occidental we is and future for a ahead combined I there to integrate bright much to look believe delivering In our focus value of we continue as and on have shareholders. us to forward at enhanced our

for it open our acquisition results quarter of to up and our now questions We'll second Anadarko. your related

America. you. come Thank Leggate first from of Doug Bank Our Please of ahead. question will go Instructions] [Operator

morning, you Thank everyone. and morning, Vicki. good Good

morning. Good

page on take an gives least a your our but of Vicki you XX I like don't thoughts going how X.X should slide billion know forward. idea as to deck, at if frame the capital us it of that looks guide,

combined the is that X.X billion, substantially that, already plan X even more for capital still doing is your closer if combined the suggested. adjusting the African that on So to falling company than by assets, the suggests

wondered in speak as you're to you a what got thought, I've related Basin. speak the about just thinking particularly the could Permian to follow-up. on maybe I allocation if how So that, capital and preliminary a

to the million $XXX be the billion. when capital gets we Yes. closer consider of achieve, equivalent to you levels billion, X.X But synergies The will our achieve as synergies. that committed would of that that and what capital we to we was activity X.X, had X down combined reduce $X.X

So allocated behind how Anadarko was terms explain that me had Well, only in acreage. in the activity, interest working of my the question. Permian. gets that what's the drop To on let XX%

a wells. dropping in there a rig Oxy rig has clearly a Oxy much but much better capital impact on dropping So has than lower then

I'm capital activity trying that Basin. So how to Permian within relative we about the do budget in think think about

rig level, se. from investment Well, count a it view not we an per

you'll synergies. for you're wells a wells, just get working wells more drill, interest the if potentially to run same you're that's then lower more have developing So on but that you, going you'll

So we investment rig not from level look standpoint. at a it from an standpoint,

obviously, greater on follow-up as this forward. that you understand, obviously go you'll least specifically, focused of is giving $XXX unit but million us Ecopetrol could because income than with a any asset not on give from midstream share everyone with details you and presumably efficient. extremely on we deal Line wonder quite myself I right now of sight if thoughts additional monetization’s. I still better WES you My is deal capital looks included, how the distributions. it's the

So let any those jump I’ll someone thoughts on… and on updated else

overall Thanks, pull Doug. have levers is I'd say about the thing of that really more of other terms lot to combination good a that with from portfolio OXY this the we the Anadarko do perspective, good, good, in an monetizations. and

impacting something things So joint the can do, of we we can negatively ourselves. do Ecopetrol there example with was creative one are how some without that venture

so the that, We kind and of say we with we're some good things. reason about dive there. asset what's we about lot divestitures, thing calls of have of happening it various So can confident after a take a our at we into look that incoming and can but deeper analysis make about is that I'll when WES, respect the to will have we'll to opportunities close, those

that grade do, to right we'll we high negotiate. The to would signal we want able that is our that we're -- we what want what can't so time. do And we able to would, now because really to to difficulty have compromise over be ability

advisor Can you speculation or whether had about press confirm the hired an WES? not you on

us and with We are advisors advisors have various use some things. we always that helping so

anything business -- we So should because as particular made, in get their to that not think I advisors I That of on now we'll it's decision of we're that. our that we lots have thinking right signal bringing look think at no in feedback. be aspects

much, Thanks Understood. Vicki. so

you. Thank

come Morgan Stanley. next Our McDermott question will of go from Devin Please ahead.

Good congrats morning the solid on results. and

Good morning.

by Doug's in on on actually up wanted also questions, I and start of capital of synergies one following activity reductions. some to the just

With the it’s initial week, potentially than deal next closing earlier now the target.

the post how plan, wondering realization of impacts synergy you address you quickly where the staggered happens and that initial was spending, billion if Is could will occur? something that those immediately if and versus So all, how, fairly at in reduction can occur? I provide that that. were or timing X.X some also the reductions be over on on it close guidance If growth time that can

plan we're for to our capital meet going So this year.

the But we real-- close spending meet year, at capital look we'll this of will the come $X.X with the for to reduction activity with happening billion after level what's have the what So, rest the determine Anadarko in ourselves do billion for we'll year. their in XXXX. $X.X to full

and And we going after help certainly closing in the of is date our I that We close had in depends billion acceleration would jump-start synergies. synergies get see us a to XXXX. that to say X on that, committed the on really getting what

initially going a much of for So thought before that that's end be you started than it we being us. able could to do later here get very helpful August, to the when be

on second And question's side, it. Got OpEx Great. then actually stand-alone. Oxy just my for the

and and You lower quarter-over-quarter between had energy mix maintenance like a looks downhole of are reductions some it lower some nice there, drivers the costs.

going and as if EOR cost might what's wonder bit forward over time bit, initiatives could for reductions, utilizing on solar well. in the more in like just I opportunities drive cost cost those how a further comment detail you business down a power driving reductions

been artificial really on these lift our it's artificial has down get was drive the they with make wells to deep to shale early too OpEx the Resources challenging better business because optimized. in pumping so as continuing Yes, lift, being

too challenging too the that, production, a for ESPs. and So little too for bit shallow, deep fluid

to use, hard lift really, the kind to it. really artificial worked how of optimize has find and to team our So right

get as course, lowering of energy that one the respect on much are general. COX to biggest that with the purchase our and of EOR biggest the in and at beginning the cost they business And of our cost they selecting business in two better helps. US, in And cost right the lift, energy the do is to kind EOR and it's of

So, to Low Basin, with going strategy help a certainly in respect COX install further our which reduce net in Permian is business we're electrical be to for because power to will our our use there Carbon the to supplying pure able ultimately stream operations. COX going cost, while also of

once install bit in installing at Permian in in some So -- more in we will the and and the start we it our little reduce most solar that the that and to so, lot, or OpEx operations really put get next that expensive part already solar EOR is the the good a to of it reduces year over cycle. interim, help a the plan but

that's helpful. So very

but the be do EOR of going time the growth to X and drivers combination things believe a the in take do that's I strategy we to helping in a or to it, it, start key going take to off for business to over to X one about it's of us years. have So continue reduce that to

Alright Great, thanks much. so

Thank you.

Please Read Roger go Wells will question next Fargo. ahead. come The of from

you long where to that? Yes. takes move forward, to comments your evaluate do how, Vicki, acreage, Thank morning. how decide curious want it just back to about Coming to some the you. of the ability Good

these you happening that the been much too in that well question or there, at one an idea, and other all really, part, tying second a you've some a give the issues seeing, of the just we little parent-child or if players the around second we're that some to how as big of of package. with could whole you've density, bit today, And the had evaluation, the into able Permian what's if look us performance avoid problems wrapper maybe

to that. Certainly, kudos let the OpEx to point the OpEx me Okay. a are and job because But forgot manage there, their more a manage I good me really OpEx they give on appreciate apparently well, Anadarko I to -- they've one question. that. have really address doing they let low

expertise bringing us, the in types wells for So to the combination be too. they're operating that that helpful will of

time, appraisal us us bit do, to wells our your we drill it's the some petro-physical our going and geophysical run data, take that some characterization so we way But do to get is, a logs get we the what of the because subsurface have question, well. to when data that helps we little to and we drill we business from

We the can frac years zone data those two, a to at you're take trying it. to we data XD perform we ago, is -- further pump paradigm can our be to we combining that shift, the couple a then a differently, data, with step that data combine of on take in on with XD had it as analytics how data seismic how look the now, we subsurface perform and and with analytics it, with the going to respect even

process that, or but about to years to but that's, we half year much not a that too was couple ago say and ago. our productivity where to about So get through of us a a went

is, area. drainage helping Now with is happening us with but to only not we've more we've to been what's done frac designs, able what frac, happening which frac XD the happening what's the accurately incorporate and with understand what's the then

And you really that. spacing where of your you key and design wells, to that's all all land wells your and how

wells to our to with years subsurface trying four, hard, the and they what's that were but our teams are figure them three happening out on our every these watch to than team much models sophisticated out collaborate what's subsurface. kudos today to who five go day, it or happening unit figure So about get the more that ago, really business our in subsurface also subsurface and have down with worked really

that statistical a had operators this this and some it -- deal, you -- wells. takes that seen and these wells ever value science the lot basis it on of We've and just can't do conventional but with a to science that really we've what takes you beyond reservoirs. what do This these from do goes of optimize get

conventional it us that from We've point that dealt drilled the with some we drill now to the and haven't complexity do that around companies the patience wells you time, taken It's standpoint. we it's model the a to we're the we will the a and to in --will are that, reservoirs it's producing. it. predictive wells from So that world-they of with working, and having know can, tell we've here, the deal what match conquered past only taken blind with and and because data getting it's we're taken lot run seeing model we're can where what that but

That's model, will to that Basin, and That's going what that the the now comfortable why but very productivity we're see there, model we're that in using. in using D.J. outside areas work Delaware confident the basins. in in we're very why we're Powder increased on based the this other only other not we're

synergies We're some the can't to dollars need get but to And little XXXX, a anything XXXX, have of said why because we'll a that drilling have to some the going takes we to why going going it, model to confident that's do analytics But our we very takes data making so and in it's do some to spend we're the we Jeff, get we've think it to to sure going to to add synergies the science take and are that's it of all then around trial time have synergies. synergies. and it, really not that? get wells, appraisal take we're you match going that XD and that's error. lot to patience our our of in that and come

Hi, that is and but thing job add, Roger. this think, I The secret did Vicki great you covering only a I'd know that, our sauce.

So tools couple said, people, that combination like it's she because the mean the petro-physics, close having, a mean and that important with creates it the only to by data, secret just thing we've for the I reservoir replicated. that how of are and all it of the not been is, and integration we the Vicki on, hit time a really easy because advancing other geo-modeling, it think simulation, secret but sauce. is years It's value stress, sauce asked stimulation, worth our people now work of get I is the really not I and geo-mechanics, of things

those don't is, remove people, altogether. them thing tools as important the the things, have the one if the data, think other two optimal of if you you will, I or the they is And work

we other not at need look to it we the when goes So definitely just but and being XX excited there extract not all that Bone why performance reservoirs we think in thing what XX, makes of the apply in those value, show really just so the you able that's or unconventional to it It's reservoirs. because works, results. Springs, us the ingredients on Wolfcamp all one and that's Slide

mousetrap and a build Congratulations. you better Thanks, win.

Thank you.

question will come of UBS. Please Our next go ahead. from Will Atkinson

Delaware. your I afternoon. if for rationale on joint touch especially depth than the complete inventory the Good a rather venture, was across wondering the of given a divestiture, we could

for to resources we us model acreage But time. our didn't it's time reason in like into the think of wells. include evaluated Basin, in recovery built this the enhanced we out acquisition. oil assets, over The it we a use to the Yes. near-term reserves of how and and quality upside the is Midland get --in more is the the over and we haven't acreage, our Again, quality venture, joint we

to into we over to the out get that we that able go drill have of ultimately, new and get we the believe our us upside in we So enhanced edge rather wells. on preserving to more being we existing wells through think have more recovery of than future more having that the COX an Midland give time will and are Basin, opportunity this, the oil the application upside significant of

you. Thank Perfect.

Thank you.

Our next Raymond will question of go come ahead. from Molchanov Pavel Please James.

Yes, thanks for the taking question.

operating As is player simply of model, that you first marks Ecopetrol kind deal a you're going sort to instances of in about rather unusual for may a step. kind beyond of think you in, partnership other that seeing the skill this obviously that rely deleveraging, of active Are development and you be set particular the not on selling geography where acreage.

help giving world, over wanting carbon the people also from reservoirs. and them opportunity what calls sources, then we are about industrial it that, to low and figure me with are and you how an business talk out to our do COX all -- with from exciting getting capture to help to our strategy Well to oil

capability, the have largest to the and we're for processing COX it We design enhanced oil we the the ability have handler of recovery in world.

revenue the valuations, that as has project, to participant to services for is opportunities -- for in that, there around happening for the some to through ventures come participation. in at calls what's been carbon in look cases, allowing low technical and so us to, earn with offers, a technical these are business projects these assistance only getting technical also some So our but possible we're providing not world

about that's we and going that's to that be thing one go one that to group different forward, lot That's get more ago. our years just there's a really because companies story, we're we're to doing now, way. people as a seeing on So few pressure happening of that's their much and unique and climate change exciting, something in do so what making interested more than

So that's look the ways are always losing monetize we -- There one eventual potential for but to without example. to things upside. trying

getting continuing we do ways to and that. So, look to creative at are

have noticing of me price on mentioned of you $X.XX there to kind ESG, up you your since U.S. not one lopsided. Well economics to would, some gas but that. the I because time realized quarter is point the are help just the resort in a there, in Okay. Permian, selling let in where shifts the flaring could the was that follow -- obviously gas

agree way to that, do little routine it, bit wouldn't always try I explain as the just flaring we normal a that better. probably the practice, should I will gas power don't so net find and concept not do a utilize a that to and with We we would earlier, we mentioned

invested that $X.XX project start pilot in $X.XX, piloting or this where cost year lower it a if it. What takes which place us creates and was NET Power. it's gas electricity it and now, it it of great in and because last that together, rivers, year especially the the that's and strategic electricity burns does at invested creates oxygen in developed we're electricity are it that $X.XX new end is, with like or generate partner team, the to that opportunity a maybe that called eight using way and group it to to part-owner. and what the pilot before, are we put Our or We've costs, natural combines we you gives gas have concept the

it's just in pilot -- South the Houston It's, of is here.

much. make So that's the our will sold utilize that would is in as that solutions, our one that to of we it put gas nearly Permian. It if

earlier, So as it lower-cost give said enhanced will, that only recovery. will us our it to gas. use that it, off oil also, of pure COX stream utilize in a I way It not provides for

So better it's and opportunity way increase a benefit COX to also our to oil dual lower a of priced to you gas, production. having create the utilize our

It's to the but It's be dealing the that near that bit a have we're going the have to three Permian to to term, out, with have in don't see expect over we that able a flare. really unique next way years. installed we scenario little the in we of two, that

there. just gas ways to are and to have There get out certainly it's get for it's better value our then it it other the We it capability more selling utilize $X.XX. that to for

EOR injecting to And other EOR, the for gas. replace oil hydrocarbon better because but also economics basically gas, EOR the the for cheaper we've comment. gas. add Vicki's just one you're Pavel advancing not and with so COX thing the hydrocarbon Hey, get I'd been

don't So to thing, can you that's so flare. value continue But from. we that another you extract advance,

I Okay. Very Appreciate useful. it.

next Gresh go will ahead. question Our JPMorgan. Phil come from Please of

taking question. for my Thanks Yes.

combined you cash expect in XXXX. be $XX WTI at First, to business Vicki you made a comment free positive in Permian flow a your prepared remarks,

I be little first a business. is for just So wondering, Resources more it detail of that on just that, including is EOR more or was would standalone part the

level And help of underlying what have, CapEx Thanks. then, just rig you this in reduction think that plan context and that through to details XXXX. of count about overall us CapEx the and

the be that at and level So for business we the it's projected it XXXX, in Resources would XXXX. capital

the at would have So -- XXXX given and that would for us be billion any be $X.X -- capital we additional.

Okay.

X.X, actual the is run X.X the rate So XXXX. of the in

Right.

So you be are X expect from at in flow Permian you free and going Correct? to Resources positive I think XX. XXXX said you cash X.X to billion

correct. That's

Okay.

baked into And would I be to an CapEx cap, Resources' to the X.X equivalent so level get of that.

of run in achieved the be the fully X.X; before will the which say of rate synergies XXX let's Right, X.X% make you sure use million, XXXX.

Okay.

it. got Okay,

thoughts Second sheet, just latest I here. question, on the Cedric guess any balance

sub I X been think get times. along all has to target your to

thoughts level You've get but today wanting and to you Thank you there? quickly WES given obviously without can what leverage be might numbers new how and you. pull with JV there other to the any you about levers to announced that get

Yes. you the primary side will obviously think Thanks, given the timeline kind to be are The XX XX on of sales of Phil. We've we of months, early asset that. a lever there.

there more that excess have a So, mentioned if free expect top and us direct have hit flow our the need to at We snag for whatever we we quickly. Vicki there sales get do very asset don't than to that us of of and need earlier, that priorities. that. list planned as We then fairly is reason they be, to think of to delever, we will also cash expect get if and

These but. think things allotted. in we can the happen overnight, we've timeline, get we there don't But easily

our say The second base $XX the highest too not I stop for would our it that X.X know times is and we're XXXX end thing and we're is much to we plan, debt, knock debt-to-EBITDA that our there, that oil -- WTI is going said of we've kind by of have that down. target, it's we our class, weight priority going to target not

We have it. the do means to

not and the going beyond too we're we we're We to time. of we even at pull that leverage XXXX, end through much lot that, do -- go down and can lower so get of levels stopping levers, and level that expect aggressively have a to but

So to to acquisition. credit we expect basically are, better to the where a from or standpoint we back be prior metric

you. thank Okay,

Yes.

next come go ahead. Please of Sachs. The from Goldman Singer will question Brian

particularly regards just slide actually, follow-up XXXX. strong had a the of given I shown Good questions there every series year XX, morning. gain in a you. Thank productivity to but with

to and, performance well is, assets case base third to ultimately what second, compare what on process the if you continue productivity this first looked is, the and is is space XXXX that Oxy do an drive oil Oxy's? basis look an I as well and how appraisal gains Anadarko go on costs only The what your gap see realize is to need we for between same, through, base the to but at with XXXX to relative your case you will longevity

them the enough I'm We what going take two dive Jeff. their on to it and do into start deeper, well but, first as specific we on before what but haven't is the a And a really one. can. our results like data know, see question to we gotten want wells, can in see be to to fortunately, of we'll little a, level toss a deeper have, second doing quickly we analysis to do data on I'll the that full as we answer doing getting they about here And that week. a that

Jeff. to it pass I'll So

Brian. Hey,

cuts XX it XX. been year last just that's to got first oil same. for question the like basis? I the on over a so cut. X.X roughly I This would of the years at that kind last we the about would XX, -- was, the were around oil XX, below on year, look total before XX to look It would And range say are reason what we've if right a get oil our think you Permian is, we've XX, look your resources I from hair year variability we our, Resources you

curve materially So it. look at you impact when wouldn't it that

a that's anything or didn't just a something not been Now just has with reservoirs where obviously them, and that point gas it's oil we drilling that's different problematic percentage we're expect. year less of so function developing. different have where we're this or It's ratios

Great, thanks.

was your question, what Brian. then And other I'm sorry

second was productivity longevity The continue to drive gains. the one to

that processes the talked the in have the you've, many technologies assets. how other you faced about. think In words, in tank you Oxy the on years of you've more do Just that

section time difficult advancing. teams performance, on Yes, just I mean, again, so see about It kept about, about, is, thinking advancing always things away that our the I what they're models Vicki working mean, the and the hard. are it's on XX the this talked we we like working one talk would I at know, can now understand teams component. to wells be , development every ability to changes frac only how at interrelate we I when given how changes, over time, not how you would with single a never in that able to understand multi-well it geometry look time, to thought a years how our is but well over time. or frac geometry we talked ago other each in time over blown Two the changes

to frac advancements. better to better the understand that we're out placements, Now better landings, that, can continue propel able we that designs, figure

you I XXXX are is, every answer performance development. out improve since aggressive make don't and it know well continue how they would really we how year, I teams figure going year they've to that done when to So guarantee I but it started the better, next we will

soon. time it's any believe that's to to So stop hard going

better and different will I rate. so just we're put but 'XX you will to things different just like get come value things do from or over continue you on different it it to drive areas, instead I focused to think on, going and from this it, 'XX of and 'XX drove and 'XX think to if

even that room the more rate value side. and performance, I than volume running but has just on think

the Mexico and of any any the and and about going on combined company, retaining Anadarko, Great, thanks. commitment impacts assets to maintaining there? on of and in capital on Gulf talk the key then learning’s your assets have those Basin in DJ those Permian, are forward you outlook can lastly And outside that the growth

one. that very that. Ken's involved been We'll let answer Well, in Ken

to again Yes, of the Mexico. thanks. Gulf forward We're in looking operating

were we're We this potential. I returning it two since to say, of BP long-term days with we Horn again, think Varstar before at always have but Mountain the we're former had involved Oxy believed time, it it. I to companies, operating thing asset even think really our I pleased separate involved as one in were

So up. the to that I forward think we're picking looking

of our long-term the wells goal to existing so with think the step Mexico facilities. I far Gulf to is flow deliver close cash stable through

Horn that So we very for approach similar Mountain time. see think Anadarko's and some back in I running with potential to can

Great, thank you.

next question Our of will ahead. go Mariani Please come Leo from KeyBanc.

sell, sense, price really sell. get Hey of identified Topic obviously, just ultimately on wanted wanted here, at know want bit has dependent of hit this of have agencies list, they leverage you but what of kind of a time. I OXY to well as to down. asset be your little punch a some point rating over kind what integrated on to feel And guys you in the you'll have sale. as just you like follow you to up sort kind your targets you look guys discussions, these the

punch want up a that but have negotiating the those punch list I and unexpected that would our say at a to of look of do, that have for then ordinary that's quiet why every we we do out comes certainly, something keep and we'd list things power, too. that's and we like now to we we that and and

achieve we're So be the targets able will that's address Cedric encouraged our to we'll agencies. why that credit really and

with had ongoing year even Yes, rating agencies. but had, this our especially we've we've for years, extensive dialog

All more you able would today. --so on confidential we're some that I can a information. with though taking really arrangement is to our you so see of plans a have the they very we're and We share say are well-informed to actions little them,

what plans say and of so list or but achieve fact, comes got we easily our and would that. In we've think I a longer I news and can is we agencies understand that information out, some that the needs have think we

unhedged? just hedges any given sale significant your follow-up you obviously timing XXXX, is brief to remaining But hedge. the guys of the for Cedric of Are oil still update the at portion and got off I on all guess considering significant Africa you have And that, you additionally, there Okay. a that production then other was production.

can't close get or the timing further make any down I'll anything a little take we'll we after to question, comments like on until we'd update really road we bit that, and when really, you can. the prefer would we Africa

earlier quarter we'd just able able Vicki under So we've actually on skeptical, off with very take XX% the done. her achieve of we're was time pleased pull to XX% company for in a hedging. remarks, just our We're to what period Anadarko's be we've But as short I what combined in mentioned a oil under you hedged XX%, second in prepared volumes if quarter there. volumes oil our second of very

of then our volumes And us, almost PSC exclude for you approaching if hedged. you XX% get volumes

If you quarter the to say, basis, to us a at second speculative we'll be other not just in would leveraged be this a the we're focused XXXX. potentially environment, great giving more in support price I low opportunistic. on deal this situation primarily a in expect us additional when very is of that pleased future going do help hedging position, to doesn't be look so than with not about in to

not ourselves the which deleveraging the been, talked I'd opportunistic about, and of we've But we're putting be way but kind hedges we us beyond as to doing no kind or very see a to back could we've possibly to more well. that not is we'll on of expect that little go hedging

Okay, thank you.

of interest Vicki any remarks. time, our closing to In conference question-and-answer back like over the the would to turn this concludes I Hollub session. for

to enough. for safely questions all and forward say thanks looking can't employees, happen to we're and that delivering great day. the good excited Anadarko it results. bring Thank employees say and to call. our on you like for operating OXY the a then joining And I'd to soon Yes, to Have for your

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

lines. your disconnect now may You