Occidental Petroleum Replaces Nearly 190 Percent of 2016 Production
February 06 2017 - 4:05PM
Business Wire
- 2016 year-end proved reserves of 2.4
billion BOE, an increase of over 9 percent
- Total company reserves replacement
ratio of nearly 190 percent, with Permian Resources replacing
approximately 290 percent
Occidental Petroleum Corporation (NYSE:OXY) announced today that
at year-end 2016, the company's preliminary worldwide proved
reserves totaled 2.4 billion barrels of oil equivalent (BOE)
compared to 2.2 billion BOE at the end of 2015. In 2016, the
company had proved reserve additions from all sources of 437
million BOE, compared to production of 231 million BOE, for a
reserves replacement ratio of nearly 190 percent.
Preliminary domestic proved reserves totaled 1.4 billion BOE
compared to 1.3 billion BOE at the end of 2015. In 2016,
Occidental’s domestic operations had proved reserves additions from
all sources of 192 million BOE, compared to production of 110
million BOE, for a reserves replacement ratio of 175 percent.
"We have had an exceptionally strong year for reserves with
almost 190 percent reserve replacement at a finding and development
cost of $9.65 per BOE company-wide. Domestically, we replaced about
210 percent of our Permian Basin production with Permian Resources
replacing 290 percent of its production. The 2016 reserves program
additions for Permian Resources came in at historically low finding
and development costs of less than $9.00 per BOE. We expect
continued improvement in 2017 based on this trend," said President
and Chief Executive Officer, Vicki Hollub.
As of December 31, 2016, the company's proved reserves consisted
of 56 percent oil, 17 percent NGL and 27 percent gas. Of the total
proved reserves, approximately 56 percent is in the United States
and 44 percent in international locations. Approximately 77 percent
of the proved reserves are developed and 23 percent are
undeveloped. Total company revisions were net positive 159 million
BOE, which included 68 million BOE of negative revisions related to
price. Total company proved additions, excluding revisions, were
278 million BOE.
About Occidental
Petroleum
Occidental Petroleum Corporation is an international oil and gas
exploration and production company with operations in the United
States, Middle East and Latin America. Headquartered in Houston,
Occidental is one of the largest U.S. oil and gas companies, based
on equity market capitalization. Occidental’s midstream and
marketing segment gathers, processes, transports, stores, purchases
and markets hydrocarbons and other commodities. The company’s
wholly owned subsidiary OxyChem manufactures and markets basic
chemicals and vinyls. Occidental posts or provides links to
important information on its website at www.oxy.com.
Non-GAAP
Measures
This press release and the accompanying attachments refer to
“finding and development cost” (F&D Cost) and “reserves
replacement,” which are non-GAAP measures that Occidental believes
are widely used in our industry, as well as by analysts and
investors, to measure and evaluate the cost of replacing annual
production and adding proved reserves. Occidental’s definitions of
these non-GAAP measures may differ from similarly titled measures
provided by other companies and as a result may not be comparable.
F&D Cost – All-In is calculated by dividing total costs
incurred for the year as defined by GAAP by the sum of proved
reserve revisions, improved recovery, extensions and discoveries
and purchases of minerals in place for the year. F&D Cost –
Organic is F&D Cost – All-In excluding both the property
acquisition costs and purchases of minerals in place, and F&D –
Program Additions further excludes reserve revisions. Reserves
Replacement – All-In is calculated by dividing the sum of proved
reserve revisions, improved recovery, extensions and discoveries
and purchases and sales of minerals in place for the year by
current year production. Reserves Replacement – Organic is Reserves
Replacement – All-In, excluding purchases and sales of minerals in
place for the year.
Forward-Looking
Statements
Portions of this press release contain forward-looking
statements and involve risks and uncertainties that could
materially affect expected results of operations, liquidity, cash
flows and business prospects. Actual results may differ from
anticipated results, sometimes materially, and reported results
should not be considered an indication of future performance.
Factors that could cause results to differ include, but are not
limited to: global commodity pricing fluctuations; supply and
demand considerations for Occidental’s products;
higher-than-expected costs; the regulatory approval environment;
reorganization or restructuring of Occidental’s operations; not
successfully completing, or any material delay of, field
developments, expansion projects, capital expenditures, efficiency
projects, acquisitions or dispositions; uncertainties about the
estimated quantities of oil and natural gas reserves;
lower-than-expected production from development projects or
acquisitions; exploration risks; general economic slowdowns
domestically or internationally; political conditions and events;
liability under environmental regulations including remedial
actions; litigation; disruption or interruption of production or
manufacturing or facility damage due to accidents, chemical
releases, labor unrest, weather, natural disasters, cyber-attacks
or insurgent activity; failure of risk management; changes in law
or regulations; or changes in tax rates. Words such as “estimate,”
“project,” “predict,” “will,” “would,” “should,” “could,” “may,”
“might,” “anticipate,” “plan,” “intend,” “believe,” “expect,”
“aim,” “goal,” “target,” “objective,” “likely” or similar
expressions that convey the prospective nature of events or
outcomes generally indicate forward-looking statements. You should
not place undue reliance on these forward-looking statements, which
speak only as of the date of this release. Unless legally required,
Occidental does not undertake any obligation to update any
forward-looking statements, as a result of new information, future
events or otherwise. Material risks that may affect Occidental’s
results of operations and financial position appear in Part I, Item
1A “Risk Factors” of the 2015 Form 10-K.
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version on businesswire.com: http://www.businesswire.com/news/home/20170206006002/en/
Occidental Petroleum CorporationMedia:Melissa E.
Schoeb713-366-5615melissa_schoeb@oxy.comorInvestors:Christopher M.
Degner212-603-8111christopher_degner@oxy.comOn the web:
www.oxy.com
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