Occidental Petroleum (OXY) 15 Feb 242023 Q4 Earnings call transcript

Good afternoon, and welcome to the Occidental's Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jordan Tanner, Vice President of Investor Relations. Please go ahead.

Thank you, Gary. Good afternoon, everyone, and thank you for participating in Occidental's Fourth Quarter 2023 earnings conference call.

Operations, us Sunil Vicki and Mathew, Officer; Jackson, with Chief President Chief call Richard Officer; Executive Senior President, the today Hollub, are and Financial On U.S. Vice President and Onshore Resources President, Oil Gas and Dillon, Vice President International Ken Operations. and and Senior management; carbon

afternoon, refer will X Slide afternoon. available call regarding statements that to This made on of on section this on Investors we cautionary The website. statement will be the our presentation slides the includes a forward-looking

We'll non-GAAP measure to be for also few the nearest on found schedules Reconciliations reference measures today. and a financial the website. release corresponding can our our GAAP earnings in

I'll to over now the call Vicki. turn

all advancements to excellence strategic to and our Thank plans technology portfolio, our advanced for continue for XXXX you, to commercial a operational then everyone. of Jordan, start runway. [indiscernible] financial returns in premier performance, great of growing asset was our our I'm XXXX. Oxy. by to good us, teams year and discussing review in and going XXXX, and afternoon, robust sustainable our for through shareholders our performance thanks us capital position I'll deliver the

by in financial our begin performance I'll First, reviewing XXXX.

across the flow, operating year, talented committed to billion free common shares $X.X $X.X cash the applied pay and to investing us $X.X in and Last leading-edge into redeemed $XXX they advanced million billion of and enabled business. of repurchased of technical portfolio, our expertise, which technologies while exceptional back dividend, preferred common company teams billion billion also shares, $X.X skills, our innovation and delivered results,

record was of global in by business completed the Delaware, production record guidance Oman, well exceeded the and Last from in addition, rates comment DJ internationally Block XX,XXX Midland year day. safely on I'll productivity new assets across Basins, our Next, the we full and Al original gas XXXX. plant UAE, production. This the the and excellence Hosn and in also per in BOE oil our X by production driven our in domestic annual delivered expansion year, production our in our of operational midpoint by record which

Despite negative a an in to XXX%. average price ratio us reserves portfolio achieve XXX% all-in our of performance XXXX, enabled replacement ratio well X-year revisions, across and of

Our record barrels below replacing years is F&D X.X and XXXX. our that At X.X prior from BOE track in current these to rate. DD&A from worldwide of XXXX produced consistently billion cost year-end reserves BOE continues increased billion proved added

exceeded in markets in It and the efficient pretax due OxyChem and at third an even soften XXXX. plant, turnaround billion lower to compared as largely energy product for performed XXXX. well achieved $X.X cost exceptionally planned income Ingleside guidance time in its our history, to

on operational is direct on In progressing addition, first facility, in capture STRATOS, construction to air be commercially mid-XXXX. our schedule

Mexico. The of guidance X interruption conclude our In successful the quarter despite outperformed the oil an midpoint XXXX over and and delivered of years, in year. fourth of a in we quarterly production our was exciting highest third-party way Gulf a production gas, to

from artificial earnings Our that Basin in the continued outperformed presented trends. Rockies a year-long improvement its maximize our we to quarter, with fourth in production. XXXX. in contributed DJ design Innovative lift business second the optimization Well productivity consistent XX% to quarter that's base technology call

results the also Basin, high Permian production teams We our the fourth quarter robust end of to deliver in to the drove where continued Delaware guidance. Permian's well performance

the Basin. continued performance New the horizontal call, well, Mexico spot its discussed second well we also cumulative delivered earnings and ever our top Delaware highest X-month quarter any trajectory strong production which Our in of in

year. Since of the production XX%. of mid-XXXX, those based our metric, across wells on online outperformed this all nearly entire Delaware the Oxy drilled XX X production Delaware oil last cumulative Basin of has industry XX-month horizontal average X teams fact, and by In top wells the time came

continue the Basin extend Delaware Basin, a of and time same additional the leadership Spring Further the to record drove program notable top in in Our to line. horizon Delaware our aims Delaware our Xrd in develop Xnd appraisal capital teams we this wells program. as New spot of year. A team the will deliver Bone XXXX incredibly with well. success the secured Mexico our the early and wells Texas south Spring significant in Bone volumes, couple XXXX These Delaware portion accordingly,

programs over But wells for of Tier excellence, X X a Oxy play by success also basins technical horizons moving for spot the a well the of making Tier well. Outside Delaware Powder and our Basin, consequential more In Midland some will role. the are Tier that record Delaware months. Wyoming us X Basin, appraisal positioning expect top XX% early X.X initial X-year improving strides In about year. example, we're the to production Our wells, X the intervals, River production X. we oil million barrels to of we're in of to only compared cumulative Basin Tier including with the and in also prior productivity state basin-leading cumulative adding improvement Basin, pad in set Barnett in current drove the and begin our produced

of teams technical to we across inventory expand basins. improve all As onshore our U.S. continue highlighted, and unconventional

also we designs and XX,XXX-foot Delaware well records. modeling, in record achieving Oxy Basin the both drilling basin only day, in both a in well teams River days, While for Basin, XX and new X- laterals. drilled Texas have enhanced X,XXX average Powder Similarly, well X-mile an and per designs our times feet drilled recovery, subsurface artificial our have lift resulted technology improvements in well innovative driven

Oxy's U.S. is not first This in on lift portfolio. In our technology field are technology subsea production our pumping we stronger the results. Our onshore to successes KX deployment X even system of limited Gulf Mexico, drive are to deepwater of achieved to ahead the leverage this of continuing In months deepwater. schedule. first

opportunities future and We expect to subsea tiebacks. distance enhancement longer unlock production

I'll expansion Battleground OxyChem shift high-graded we our sustainable These our to portfolio, facility how strategic unique it will we discussing our and oil value advanced in announced year. our that our launched make gas In and shareholders. industry. strengthened of steps expect strategy and commercial XXXX, multiyear our deliver transactions last Next, portfolio we to the

our strong to stable carbon carbon provide We have developments conventional cash and flow from ], short-cycle, ventures These high-quality, business Algeria in high-return our oil along decline Nigam our and gas and are with shale lower future. development the [ gas and and in Dhabi. Oman, U.S. Abu cash the oil by low complemented we Permian EOR, development in expect flow the chemicals and reduction

along of which to and and while per billion. priority flow high will growing the flow of inventory, appraisal sustainable addition our diluted dividend, high-margin, our free The low-breakeven last cash a also share. incremental the flow through deleveraging add CrownRock, share In will year, delivering portfolio grading gas cash to reducing oil repurchases and organic announced cash work after and with increasing strategic acquisition support $XX development debt principal we

and a separate the and capital to of FTC continue the receive we'll We are regulatory plan until close the the approval X half year. moment in its expect as operate and we regulatory review transaction working approval The constructively second with in review will to acquisition. of CrownRock companies to close excludes we this because in obtain

BlackRock, revenue and of pivotal many optionality. the closed air last that business, world-class venture transactions also asset a with technology certainty provided quarter. our third-party LCV We're for innovative our advancement, path. landmark which we is we direct DAC commercial institutions. In capture investable the financial excited We air Carbon our direct This was STRATOS about becoming achievement completed in joint technology capture believe Engineering demonstrates development capital, acquisition an

customers. signed dioxide renewable on flagship credit In our more addition, teams carbon several

our to return flow cash throughout commodity plans flow XXXX dividend in cash we allocation generates we On free our discuss will debt reiterate program cash the capital how and our like focus I'd December our flow Now shareholder and strong reduction cycle. on the and discussed that priorities priorities XXXX. growth, call, for capital on

repayments complete including $XX cash below, As we debt repaying it we reduction divestiture principal matures. We debt for debt to flow prioritize or discussed a billion to the intend proceeds of forma achieve regarding pro and both program. as in until intend at from $X.X billion debt least balance CrownRock, we

strengthen year, best position free repurchases. and our up initiatives deliver our and result a we Every long-term to sheet, balance we support the our payments growth returns our cash and lower environments Oxy of share acquisition, to to improve via future and support resilient expect our from plan to that to projects strategic shareholders. dividend returns designed our maximize As capital price interest resilience commodity and sustainable

investments Our cash approach XXXX that investment flow growth with balances capital high-margin plan longer-cycle investments. a continues short-cycle, measured bifurcated

our less to billion $X resulting $X.X plan year. energy assets unconventional we chemicals this slightly in XXXX, to for businesses, in and In invest billion our capital

we flow unconventional including the reservoirs, exposure drive assets to production decline growth with our premier and intend complement mid-cycle of we unconventional unconventional However, resiliency. across and emerging cash portfolio, to our lower our cycle success expect to business, increases to to return some cash which including to continue the expect more horizons. We our continued longer investments, year-over-year are conventional expected

plant us to capital year mid-cycle we to progress battleground year. Investments OxyChem continues the expected on exciting in as started will and projects the last XXXX position continue this investments Our the project. increase that are expansion enhancement

EOR is could Gulf many year, the gas become in processing to Permian oil support future second our or long-term growth our longer-term important business Oxy. a decline asset part we added our also of expansions recovery, core in Lower investing a of from We oil for what supports COX that believe in EOR, [indiscernible]. for we're Mexico our enhanced growth an of This strategy. production drillship

be and of capture develop of a planned EOR carbon direct way EOR recoverable to we remaining is dioxide will emerging XXXX our million will continue barrels as gas facilities to key businesses, oil captured $XXX STRATOS. our future development by Our air in X business oil our low-carbon that potentially much operations. In believe of a directed billion be sustainable part to investment Oxy's the Permian

and well Texas, direct preparations Gulf in investments permitting also to sequestration needed Coast subsurface South have allocated sequestration capital We at hubs. with continue air and along a held our for second capture

and received investment. BlackRock, XXXX, increase contributions from figure we from Capital our capital million LCV million This our in in financial totaled add expect investment will our venture businesses includes XXXX. for $XXX that BlackRock $XXX to will for STRATOS. joint partners partner,

progress our review net our as fourth exciting XXXX and potential cash tremendous for quarter guidance. over flow air We're now shareholders. I'll turn generate we towards develop our increase Oxy's to LCV Sunil other see for a advancing in to and We solid zero of results pathway and call capture returns direct the making long-term financial technologies. great resilience

share, diluted and to by Vicki. announced reported with $X.XX the We begin Thank share, reviewing an will driven gain between profit Engineering. results. of reported you, of adjusted a quarter diluted difference fair per value primarily the I acquisition the fourth Carbon adjusted of by profit related per and today profit our after-tax $X.XX

teams guidance Mexico. outstanding business onshore domestic Our the exceeded to midpoint production and Higher-than-expected production across fourth outage third-party assets us segments during caused quarter, our X the in by operational losses and unplanned international enabled the performance. we Eastern overcome of in delivered of an all Gulf

outage is I This company-wide month guidance reflected domestic early cut cost to that impact and a also higher-than-anticipated oil operating to led is soon It the production per and lower-than-expected into expected cover. in BOE. will a next

payments in environmental positive receipt decreases on interest of had prices. to due the of capital a working change, semiannual and debt remediation primarily commodity settlement, timing We

We over unrestricted of exited billion quarter with cash. the $X.X

customary Turning and timing FTC's CrownRock the request for for of adjustments. in to occur Oxy date between each guidance. received Oxy of related the subject to a the to will activity will close, Last the additional which of FTC January XXXX price acquisition. the year. expect and from transaction request information we impact the month, CrownRock's information receive the X, The closing, half second to benefit now effective additional purchase

notes, of termination facility billion with issuance of the be the the unsecured loans Additionally, of loan the expected existing bridge funding X.X to closing. term and transactions senior are fully committed aligned

average to and Rockies Hosn the day, production single-digit XXXX, year million with representing BOE full per growth from expect production growth. X.XX we XXXX, In low driving Al

expected anticipate As and with design rate that will of We year. in continue Vicki wells operational XXXX coming in outperformance mentioned, steadier drove these for Internationally, we XXXX, reflects the online a anticipate step-up expertise with run production plant last the prior a point results well approximately Al expansion. Total production the continued Rockies significant levels of quarter Hosn when year is higher year. production rig Permian of we largely company to guidance remain the year's at recently the relatively with year's up low fourth working remainder capital first XX% activity. Permian production first a following year. quarter interest in last the the unconventional to is to flat, Permian Basin by expected quarter. decreasing production driven compared ramped have compared last primarily last The and expected activity in the in in first decrease quarter lower by in

BOE the winter of unplanned costs day annual assets, DJ plant Dolphin due Gulf and X,XXX XXXX approximately of lifting Gulf in the in per a impacts Domestic January maintenance are and basis BOE in Mexico operating storm domestic reduced Basin. event. downtime to maintenance decrease our improved Mexico the costs in expected at onshore to of on

year guidance we $X.X chemicals. is conditions. for to nearly potential challenging income OxyChem despite billion This XXXX, on In the ever segment a pretax This fourth highest ever. close best guiding matching midpoint pretax of income. Moving chemicals year year second year's of year, generated market its to full the are to

OxyChem We the quarter. largely be prior first from flat will expect that quarter results our

combination Our pricing QX subdued Typical guidance largely reflects on adjustments with caustic seasonal QX. pressure China. caustic price of both the from and in for associated contract demand and PVC export erosion, PVC in

have stabilized QX, with we the of cycle prices. more guidance that bottom reached assumes Our in the

close I in expect by beyond trajectory years. would today looking highlight enhance financial we several our coming that XXXX to to like the catalysts will

reduction Our the quarter transportation midstream Gulf rates oil of third positioned from Permian XXXX. well end the by and the benefit from of in to business Coast a is the to crude

of savings from in approximately million, savings to XXXX, $XXX anticipated in the We these starting $XXX with and the expect annualized of annual reductions XX% XXXX. full savings rate million

million enhancement midstream annualized these EBITDA and benefits to to combination, to incremental projects million The expected rate are OxyChem of plant deliver EBITDA improvements run million. per chemicals million are $XXX generate $XXX and once Battleground to incremental an $XXX expected of $XXX complete. In to to year

decline investments discussed, in we Gulf through mid-cycle flow conventional expect and Mexico our conventional also cash Permian resiliency As assets Vicki lower provide the EOR planned of to production.

I to continue our premium Oxy's favor portfolio, our we enable our meeting and our balance our will grading portfolio to execute in future and We sheet increases premier December. rebalance common in outlined on to that of are targets high As common committed enterprise that shareholders. dividend we believe strengthened deleveraging value

sustainable path will now call are focused teams on record excellence over delivering, to growing on shareholder long of Oxy's returns over Our extending execution to track the the our back operational and term. I and solid Vicki. turn

was significant both Thank for year on a you, and operational XXXX Sunil. Oxy commercial fronts.

recognize navigated skillfully as we is teams efforts employee's for their XXXX. hard position that a successful progress dynamics, exciting the achievements today to the Our as through great and I ingenuity us covered generated to underway the our want work, and well

to that, are Q&A calls. like mentioned call, With We'll your the Dillon now we'd questions. Richard Ken and in Jordan call take Jackson will the open and for earlier on also participate they that the session.

[Operator from The with Instructions] Sachs. question first Goldman Neil is Mehta

just really deleveraging. is question My around

opening to the the post here to sale the balance sheet that path and are be but to lower? you want getting and the to get CrownRock this where debt talked just you how about seeing acquisition, asset playing you in market you out And comments, enabling about the so talk

is be as where to how of core as that Well, Permian are not as others, areas. of for of the in of And get and they're and up us, have Permian. the to cored properties they're virtue to that's we a the our you by some geographically some M&A core happening, but could the noted, try into all Permian companies in key not it do placed lot to there's appetite

What any then until will divestitures the And close decided we've acquisition. So process the start proactive not divestitures, though CrownRock well. make that do we won't a aggressively we to is more believe, we'll go I at point.

$XXX Vicki. of Gulf the over that's million, pipeline $XXX year? then of of should year, the lot a million to online, balance but what and about on the great, the outage. around to And the gating factors that get a be of Mexico, we the That's guide course of give I'm million. $XXX asset sense the Can production us guessing just QX million the $XXX the of of thinking cadence back are how to you

operator. updates that the Yes. to on We're leaving the

And that. on rest done. their any giving the because not so we year, them to With to we're making comments of continue close of to room flush get we're may we that you normal. respect of the rest have to the And add? business from year expect have, to that back online a we're on as the expect And get and pretty said. up is our we we'll hopefully, production Do anything back what for bit running, target when getting we've date up little

a It's Ken of can add here. couple I Maybe things.

So date. for finish offshore for our the about operations. we crews the example, full lining feeling we're pretty to start-up And good tomorrow specialist facilities out sending

for that process. The shape. in the think feel I gives where in plants you a great are we are

crews the outage and operations in with full well. year our turnarounds also Our enhancement carried XXXX for as completed out projects our parallel the

a good So avoiding gives outages in really XXXX us shot.

So we're forward looking it. to

it, use Appreciate do. needed we spent. timed of the all That do they They you. very well made Thank that time had to Neil. to things that was

America. Doug The question Bank is from with next Leggate of

the guess you to Ken. on of Conoco's are the call retirement. great number latest after shrinking, It's hear Scotts I

So for as thanks, on Vicki, well. getting

for were any of sale. to course, like you had ended recall Anadarko to packages XX I having and I want to give not do to want do may. seem So detail, I I I I a realize the bought those. it, don't of you you to lot And to have had a on is, couple this. come up back you When of question. I first I guess but were that one to want questions, you delever, hardly frame if trying different the it hate disposal but about of

I or that. a think like it was about something dozen

that So seems to of already it you've that me lot a got you've things scrubbed.

you my there to on associated whether to being specific without billion, some free is, give with is as the $X of the range significant color So come what's flow along cash billion can us $X.X assets, question that would number? flow cash

on give depending what we is Well, really today. of what divested, that estimate is you an can't actually

what are changing at. terms in of things Some looking we're

number So difficult this put that point. the would at there to very think it I be out

you significant? consider Would it material, Is Vicki? it

flow there cash we to here minimize flow flow. already Anything that We're that any it's cash done we some to some be haven't will do. appraisal maintain said, trying going that's material, because out at With likely our cash wouldn't ensure to the to cash generate sold assets work flow. on sell can least that hard we

on follow-up sustaining is capital. My Okay.

You've to is But growth -- this to about stepped little $X.X is out figure trying up way billion. we're X%. we a bit the what year's

$X.X is Battleground of spending DAC, gets which about $X to which $X.X billion You're and billion, billion. you

of rate trying out So think I'm bit seems growth to correlate about help me growth the is what It that? seems billion. you how about $X.X to understand seems I with X% Can a figure -- spending the just should of off. ratio

-- the about EOR, after the at that is date. investing that projects generate in So our mid-cycle -- of spent we've mentioned, later oil be if in and the that on, part some oil gas we we'll we oil generate billion third as and billion started. spend a in what year Permian production the from to for at said gas that That would That's look you XXXX. $X production of $X.X is will example,

that be those of delayed. bit will Gulf future. the for also us of preparing Mexico, a So some are

based operations that price, what's X.X mid-cycle our increase year's And not Potentially So ]. being that you investments you of that [ the the still facilities. XXX will if you oil impact [ at be gas less then have the look in forward and amount, when the of minus X.X% spent this ] on mid-cycle will spending production. going use some

some have wells actually that and So what's to of I oil getting and billion be that of think will mentioned then it that can than done really you half $X less speaks on productivity more spend the respect the we gas activities well to teams what facilities. and that out for with

we're some then flowing of the our getting to getting we're from out a what So of X% XXXX growth developments. rate that developed actually in XXXX and over high we've productivity

miles. the great still a answer, most efficient It's Vicki, portfolio capital by

done, I know exciting the thank the it's have you teams what question. and really for

is Royall from question Next John JPMorgan. with

midstream. on my So first question is

characterize thinking year I full a that slides surprised one full you $XXX million million year the structurally then full bridging pieces the guide, to moving midstream good you XQ gave spoken on And you area color How year. us kind business under conditions, can kind the from do mid-cycle think what from just bridging $XXX XQ. about the you've about? 'XX? maybe to year the was bit would some think do to savings excess full 'XX of of midstream But

Yes.

main lower transportation the of the relatively is year spread for assumption this one an contracts. on gas the for drivers for guidance So the

year, So captured several we last gas optimization transportation opportunities. capacity

when quarter. cold in example, event occurred first For West in the Coast the the weather

So obviously, we this cannot predict event.

present itself, So assumes transportation market when gas our But compressed well to opportunities. positioned these capture does are guidance we the spreads.

So that factors. the main one of is

one other The in Hosn. Al is

We have sulfur 'XX pricing for lower a to year. compared last assumed

sulfur per a sale inventories weak also built-up sulfur $XX primarily fertilizer are by due demand of to prices that around regional of major Now tonne, and near-term low is and Asian at market second from during a pickup demand improvement sulfur potential on we and unwinding based the But the producers. of we trends, in think see also inventory. -- the half prices

of low point say terms And we think thing the is, income. would sort midstream the the of last is this in I

prepared start the transportation We a year, to mentioned spread the are next crude going remarks. of the expiring, X And benefit we transportation starting in narrow have getting contracts like my year. gas assumed this for I also for

X forward, in a income. see significant midstream you uplift X years, the our looking should So or next

this on bit the especially reserves. just pretty It's number, then big little maybe And XXX of of an Great. BOE additions acquisition million year. adding considering hoping a a when to for detail you're

from? and the just where So on they're coming maybe of sources some those additions color

Resources I the the of Permian from the onshore, if had think areas, was pretty it I most ratio, bulk the your reserve where was. think, essentially but Richard, other from think We some think I EOR, addition just is was -- Permian improvements bulk look significant. of that for you at revisions productivity just business, replacement in our I from

focus, Yes. near highlights of mean benches we're just add the I some some that I term, that. outperformance while on these in that But the of that the to developing obviously, putting to put been mean, on call we've trying primary are or benches in more these prevalent the driving been highlights becoming secondary production. of some to the in our program. we've

If in highlights some or on highlighting at line, of you Bone look those chart at year-on-year outperforming benches Delaware, a Spring we've Bone that average. [indiscernible] Spring the you are our secondary the look performance that at those Delaware the XXXX production, Xnd got

and which it's think we have more of projects increase reserves processing reliability of driving to to that us that do they some that's our we there's the highlighted, in capacity some -- also well. but it, near-term, these those I facilities so in or as giving Seminole, unconventional. EOR of those, interest, develop going operability in gas production. really if there the we the on like delineate the in of continues call more are And really Talk detail

Vicki production, COX is as noted develop to of couple the So a of barrels future. of on incremental barrels some year of that the also say, to base for providing improved that we're capacity driving, those this bring that's low development able some day investment thousand cost but a

as near-term about we're story, plays long the outperformance, and reserve of thinking sort reserves picking term that's So out but well. is on how it up the it in

And team's to contracts and into is the a as then XX of add extended. X I where did all place reserves get the significant Algeria would other work the merged result add we

that of add reserves was But Permian and Algeria, the the sources the So most from is, those by while thing Algeria proud X quite had came from bit team the of to a of increased the get of work great where bulk I'm except done and reserves little bit because we booked [indiscernible] of to Hosn refined. already unit modeling for estimate a we every that reserves business reserves the Al DJ, more have the there.

from TD question Cowen. is next The Deckelbaum with David

you're around follow I up to growth build I just capacity STRATOS. of how you base wanted in conversation being built you're relative to the terms large a the sense out in intending guess to some anticipated I give another prior coming out? rate of thought us guess, way, with next from just X the what the out EOR. production over be volumes where a anticipate this sort years? Can conjunction EOR to XX on today, Or is do production the at to of little you of

I would over part tell significant that, of going a X you development. the be next years, to to it's portfolio XX our

the will believe world. and that and We resources be as sustainable oil atmosphere, is just And reservoirs to the conventional needs to leave remaining not most to XX% of the be we get acceptable. have oil to XX% going going X resource barrels ultimately in in it's out XX% or world build -- of we developed. a of to of air get shale COX a reservoirs billion the barrels of be that to result our direct capture that facilities It's

for to our do would equation of affordable able States, United we're to that sure game world the EOR not the to oil. ready for EOR believe produce barrels part carbon be net without transition be to have And continue ultimately. zero is that the of climate to the because being we energy way be a independence, the ahead We're going here getting of

what parts on Richard only our forecast a value, world. huge to we and shareholders. that. a on strategy add It ultimately data will not and some term, the And of our has part this for but important, is So the of U.S. to other to can near do. the

lot lower I'll perfect. of EOR the the production is I mean around decline. that talk the we about really like that. a Yes, we one attributes tie

We last And development than with years we decline, started really being flat, to X%, able through lower maintain so that that flow. year. lot was -- several of less help especially downturn a the the with last free came us of flatter prices, of some to have as cash to restoration commodity able

that we triples day this online, this have as year. we'll we XX about will double third about go we'll which mid-cycle, barrels wells talk when benefit production. that And year, year But in forward, new of EOR X,XXX well of the a the next bring about and add and

years hit on production your based that peak around X you XX,XXX So now. investment day of a barrels really today from

will other but about a I a in The we'll just little plant that more that's thousand day Seminole production. our base couple expect this a million XX gas year, mentioned capacity Again, we'll day million that thing for color, add add a expansion, $XX about shortly, of provide of in barrels the terms

So if the investment kind intensity, these Vicki's in our business in anthropogenic intensity, decline. given point, it we're on return our what you projects. competitive a or the portfolio, of capital But very are to is does, that's able good about to got competitive portfolio. bring think COX be They'll very a especially we've future, COX, lower the cash for

Seminole, say, type to to 'XX, when we so for minimal another day that's, that 'XX just XX,XXX look barrels opportunity at we look XX,XXX And as a capital.

as great EOR, in of capital the opportunity sort year of building COX. bring we're to of spending more And we wedges on so that this within more do we're those with sort range

long. that hopefully, and short the helps So tie

facility, a second the DAC think for year you appreciate some in is as the grants -- resolution sort spending just Maybe talked Is contingent in conversations of I around are I theme budget part bit this is about with I sticking a details, you the And little a still DOE? on the -- with Richard. the this just follow-up, funding expecting and Kleberg. finality of guess, year? progression of that any

of beyond then that and working there going with the dependent getting a be DOE completion we're those engineering well some and start timing discussions we of continue through. quite on are for discussions. of the -- will there is line And of time where the prepared that of design the front-end the will on continuing the construction, that start but the discussions The

direct air anchor but I'll hubs. X an capability the are of spend to question year. for asked Class is COX. a XX that our just Ranch the submitted submit and We've work Maybe couple out King the this continue that subsurface another Gulf of lot is since we that. Obviously, on A for Coast to expected capture continuing you other details on build X area, add to

of of -- you been scale there. work going that kind what of just type those has So giving

So more to on Ken well. and I'm obviously the then with the with really through is been that progress going and going pleased and development more work will work really to getting that Carbon Engineering, work. that happy with fulfill project R&D end really that we've development work with

from is Fargo Roger Wells question with The Securities. Read next

to things, like back I'd X Vicki. please, come

integrated sort with one what more the can the a company. offer on understand upstream-oriented more just there's I'm of more some of FTC preface little for kind CrownRock, you if I'll asking And you anything of First second of the a concern companies, request. is the surprised were us a on I in concentration.

anything help us can you So there? with

the are teams can asked them with they working you, the Well, answers some tell to like at FTC diligently felt But team need. of all I that our the get our teams everything. for to they'd work

to to, able progressing -- as hope we of second the and So this be in it's close year. half said, we're

for ask they and everything else? So the moon

I not didn't but did we're moon well, the there, see -- done on yet. I

Fair enough. right. All

these capital where why thinking Like make rather the other Permian built growth EOR maybe the the we was was into in the said The through growth the of the businesses. the The some been opportunities? and, but still the a the other the Rockies capital had somewhat why delivering at allocate and you're in the it, the corporate are decline conditions there, more call in wellhead structure, calls Rockies growth than of XXXX and mid-cycle than returns more part the says, I on decision modest -- capital yesterday, here? other in of you've Permian best how obviously, follow-up efficiencies the of business when terms the all part had I is rather lean kind from it obviously among wondering during to performance question businesses, let's of well, for it. to Permian. in increasing Permian kind you not you the When we're rate coming of regular, just lower

full we in to investments on differentiates we've level, us, it part -- can different at dividend. chime on makes what take so we on for it time look and views think us. critical balance we're companies, is a to you other and over a of what corporate and balance than do I want their want really And is sustainable to got many it. because And trying our advantage it this growing of that let a this when So Sunil Richard that unique it I have

we're unconventional I of Yes. nice XX% the flow year, we've in mean, about with free being talked a the can It No, from a high together short the acquisition development opportunity. and also but growth decline. provides term obviously, about long margin, wedge a growth, mature attributes basis. a term that lot think this positive growth a it both immediately adds, really more Roger, and you of basis, mind, CrownRock I appreciate putting from cash a with decline standpoint,

ahead just X of to that drilled The About uncompleted year. sort those drilling. on has Rockies, on that last there. Rockies a capital wells. levels we the year, The I'll last pick really activity the from do of year lot in complete to the then of of XX% on year carried activity resumed this with this had wells cadence And point that beginning got

you we're what look that intensity the capital at to of amount when add production low for standpoint, very very, able there. So from spending that's we're a

we have margins the high in -- that's Obviously, Rockies.

We royalties. there. There's drive returns competitive have other that very things

the net balance, point, sustainable say, allowing half to we'll kind of rig actually a as we pull activity as of kind count, And quarter that's about then mid-XXs mid-XXs to a from level. more more and the us just last of data so DAC to back go year like fourth Rockies a that in of

just across of little Rockies, company. pick the so kind read So and X talk much on then too But don't can up color just we that year. the maybe Sunil into a

Yes.

we trying between when So gas base we're think flexibility. do about decline trying to capital to and segment, allocation is balance margin, you're and oil in what capital the

with So And heard high unconventional returns. it's far, better we margin, so each on with you start getting based U.S. high start margin, with the you've year. if everything cash

look margin which And is if of you in then because And helps we basis, of one portfolio. price Mexico, has even production fixed. mitigate lower you Gulf are overall on operating of cost have cash higher margin. a the the commodity our some an highest prices, higher it's the incremental you And large cash and the protect assets, then mostly and of risk which international production share share a get this of at [indiscernible] have where part

base Rock, And our when I that Crown of So think is unconventional. around production XX% today, you XX%. point from about going our to decline, of production, get to approximately mean with a so margin view. it's is

balance we cycle, what the conventional high-end to So unconventional, and investments. decline mid-cycle decline are trying the short between then do is shallower

like the And portfolio. said, lowest our in Permian decline Richard is one EOR, of base

that, decline. of the typical So if production. is almost Xx third you by EOR year, the peak And after production peak year production the it look then we at first get the a Permian shallow a project, to is and

ultimately helps the what helps sustaining and with which the which it breakeven. is manage So decline, capital, does with corporate our helps this overall

of part it third the flexibility. capital is And

even this we you U.S. is depending the upstream where if change year, onshore, for around CapEx flexibility on at So activity CapEx to conditions. our look have XX% of macro

of plan we year. in this if rigs U.S. had the in operate XXXX, back like you to XX% onshore, So that look we around

do were can efficiently, we macro if quickly and the we and able demands to that. So ramp this up

are attributes and we allocation. that capital at So look X these oil we gas the look when at

and is So providing macro flexibility respond both to conditions. to also diverse of conventional different while unconventional a summarize manage we and I assets have the decline, say helps base our returns what also would portfolio to that maximizing our

Neal Securities. is next with Truist The from Dingmann question

Vicki, question, plan? me just all the while where you first potential you remind saw wondering then My think, wondering, -- all sit concerned shape. your on sit, total DJ you proponents to you some in DJ. I where about D&C all I pertaining latest are Colorado I'm good permits on the early, is just could I'm And bills?

that pass Richard. I'll to Yes.

Yes.

of years. over I think permit standpoint, couple very a last the just productive it's from been

little current activity. So over we a year XXX But the today XXX another through. stand In -- months, ]. or in X rig [ XX [ gotten next about we kind months, we've of a last ] our expect the X.Xx

a well. larger big ones we've from some that of that are there gone package been standpoint So kind working have through really

the of kind part question. helps That team there of -- and second your I hope this

state the the drop important We to and continue communities to around emissions. things are that

doing Our transportation on make very easier. and programs things safety good. We've consolidating are to facilities it around worked

things positive have around or the permit add into we've those the of really development received on. positive lot a these comments things to so that very And plans permits able we've been been

hitting we're permit as sustainable more we're there, activity in terms sort So we we're like of in we a continuing on. Again, outlook. long of up time been position a good in stable, as feel and have

not And I'm would incur Richard. wondering, just on return shareholder now Very late follow-up on just the redemptions preferred a [indiscernible] assume I then M&A. helpful, until 'XX.

any flow that in now the than or offset mitigated So for free the factored any incremental is would production at to year that you acquisition looking it when the so? were fair or CrownRock another you -- that fact assume cash CrownRock payments more

that. a acquisition, of [indiscernible] robust to on But to be the CrownRock get debt common more the we what key of program down $XX repurchase preferred. ultimately, a of that once does the back part resumption we us going both billion, to helping Yes. That's and start -- share our the that's then

is The Josh with next UBS. Silverstein question from

debt shareholder and just bit a Is don't have now year of on the out, I into ask pushed asset the $XX billion return profile, supports was that faster? sales are into similar yet. kind topic going the and you base there just you loan this number the that term to kind dividend get of that coming

loan accumulate to flow No, we actually, of cash because toward CrownRock be our the as pay continue down coming. that debt maturities would used cash work part are deal both going to we and we're the will help to flow -- term closing

cash So we've the for repurchases where share those would goals. not to flow used be we achieved until point get

to the XXXX. I was that out project Battleground then pushed And saw it. Got

And drivers and Battleground the was the the that time what maybe million was like of sort any other of the enhancement needed projects? through go status uplift just projects extra of look what that other $XXX and could of plant EBITDA the split you the between of kind like? If

going -- think there's also of like chain other with inflation. this at little point. things many issues were and I started progress pushed the bit well out just bit are supply those projects, we and a because projects those there in those a dealing and But

on the to flows I'd So flow see we'll won't expansion cash when see though actual half those until come the from the Battleground from XXXX. of cash importance that projects, second that those the be of cash from we're like say The starting flow projects. enhancement to already plant

million reduction about as talked got we contract we'll and our earlier, you with in XXXX combine that, we've thing of half $XXX full But the plant to prices the all billion uplift had the exciting well. both where by uplift the you that's a about the so which of this when will second OxyChem the that, expansion, what in mid-cycle billion that is of Sunil $XXX XXXX, the deliver that $XXX the enhancement add 'XX, projects, see projects full and have in

least when assuming cash in at along that. WTI with the and billion than price $X.X we puts expect, so combine And that of that $X a us $XX, in you potentially with incremental those XXXX more billion

X and in to of we for we to just have reduction, forward -- better significant through about. and where a little in these able a are something point that we're to projects years, and billion that's get cash to terms looking So cost be flow, really where pretty excited us over $X.X

from The Stephens. Scialla is next with question Michael

ships. year part gave December, the mid-cycle is detail to the I which about ask direct on specifically on you planning X all appreciate in capital you to wanted decision of Mexico, this to drill just Gulf that. investments. the more Back of I the were

seeing there be is Or mid-cycle given investment see to thinking you that can there what it be what And will you're to of than and a else? onshore, part talk third add changed there to this just wanted something your whole thesis? So drillship, are seem there about was targeting? tighter specifically that services drillship especially they third

of terms we're planning on in And drillships this drillships, X only year.

last the in X.X is I pumping, into waterflood, GoM assets. artificial mentioned plays [indiscernible] GoM project. I we're see mentioned stimulation, which work the for horizontals, characterization that, detailed [indiscernible] overall, Based GoM upside potential subsea we can out portfolio, of terms In lift operational on time significant already and counting our us.

way also in when while If you water is improvements in appropriate barrels, bit significantly water original already high-margin, barrels. oil operate XX%, in fields reducing I injection, a injection of adding little numbers low-development Typical about with XX% talk recovery economical of billions place really a recovery factors reservoirs and of can cost decline. increasing between on be

in So that it Richard successful things the been highly returns. Analogs EOR. Scale and development very plays to was about into GoM. have in costs lead of talking good developments these the low

activity that define well since and scale we're targets, we it's moment. really we've these are. the and that every working and operate seismic OBN country we're do locations in domestic also planning at That's we on of in know, like is them the them to highlight in, As you I'd We technologies. assisting who foundation world XXXX. the done leaders the these up in well helped that

that question. the a place, we the the great we company. as portfolio technology but optionality entire that existing answers across hope infrastructure also using GoM think skills have that I see with I in to your grow we have

acquisition it call. that, Ken. CrownRock on the Yes, -- Appreciate your on does. And

any been on in the years. with bearing the acquisition? CrownRock You have I did in to you've the the if expand Midland Richard that near And just pilot there's a any your working EOR that mentioned plans Basin -- term? on Midland think mentioned couple wonder for I your decision of

far in made those Ranch, its asset. Midland the how the it The stood X Crown Midland the were that Curtis acquisition our of not which from on Rock the we terms quality too portfolio within Basin conducted some in on South of and But in own stronger. fit that is pilots and Basin asset

using we now. with Midland a that of to in we're enhanced believe way do going development also areas Basin one is doing anthropogenic But same the Delaware we big be So that an that's oil thing atmospheric. the would the in recovery Basin or the target

there. a at potentially develop pilot to will going have to That We help on us another look ultimately. as that place

both So options. we have

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

like to Just participating say today. call for our thank day. all a Have you good in

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

disconnect. now may You