Occidental Petroleum Company Profile Report: Key Insights & Overview
January 5, 2023
Occidental Petroleum Corporation
5 Greenway Plaza
Houston, TX 77046-0521
Phone: (713) 215-7000
Industry Sector: Energy - Oil & Gas E&P
Full Time Employees: 11,973
Annual Revenue: $29.3 Billion
Fortune Rank: #110 in 2023
CEO: Vicki A. Hollub, President, CEO & Director
What is Occidental Petroleum and what does it do?
Occidental Petroleum is a multinational company engaged in the exploration, production, and marketing of oil and gas. It is one of the largest producers of oil in the United States and operates globally. Occidental Petroleum also has investments in chemical manufacturing and midstream operations.
What is Occidental doing with its midstream operations?
Occidental Petroleum's midstream operations involve the transportation and processing of oil and gas. The company focuses on managing pipelines and infrastructure to move hydrocarbons efficiently from production sites to end-users. This includes the gathering, transportation, and storage of crude oil and natural gas, enhancing the overall value chain of Occidental Petroleum's energy assets.
What is the Occidental Petroleum Mission Statement and Business Philosophy?
Occidental Petroleum's Mission Statement and Business Philosophy
Occidental Petroleum has two key elements that frame their approach to business:
- "Develop energy resources safely, profitably and responsibly to maximize value."
This concise statement emphasizes three key aspects:
- Resource development: Their focus is on exploring and extracting energy resources like oil and gas.
- Safety and responsibility: They prioritize operating in a safe and responsible manner, minimizing environmental impact and ensuring worker well-being.
- Profitability and value creation: They aim to generate profit and maximize value for stakeholders, including shareholders and investors.
- "Dare to do what others won't. Will lead the industry by reaching for the impossible, then achieving it."
This philosophy reflects a more aspirational and audacious approach:
- Innovation and risk-taking: They aim to push boundaries and be pioneers in the energy industry, taking calculated risks to achieve ambitious goals.
- Excellence and leadership: They strive to be the best in the industry, setting high standards and leading by example.
- People-centric: They emphasize the importance of "remarkable people" and believe their passion and talent are key to success.
- While the mission statement emphasizes responsible development, Oxy has faced criticism for environmental impact and controversies surrounding acquisitions.
- Their recent focus on carbon capture and storage (CCS) technology aligns with their goal of responsible development and transitioning to a lower-carbon future.
Overall, Occidental Petroleum's mission statement and business philosophy highlight their focus on resource development, profitability, safety, and ambition. However, their actions and choices will determine how effectively they balance these aspects and navigate the increasingly complex energy landscape.
What are Occidental Petroleum’ growth strategies for 2023 and beyond?
While 2023 is nearing its end, Occidental Petroleum's growth strategies remain relevant for the future, including beyond 2023. Here are some key aspects of their plan:
- Expanding core oil and gas production:
- Permian Basin focus: Continued focus on optimizing production in the highly profitable Permian Basin shale play, utilizing technological advancements and cost-reduction initiatives.
- International growth: Exploring and developing opportunities in areas like Guyana and Suriname, with potential for significant resource discoveries.
- Strategic acquisitions: Identifying potential acquisitions to bolster reserves and production.
- Embracing low-carbon initiatives:
- Carbon capture and storage (CCS): Leading the way in CCS technology, building the world's first large-scale direct air capture facility and aiming to expand in this emerging market.
- Clean hydrogen production: Investing in clean hydrogen production through its Oxy Low Carbon Ventures arm,targeting both industrial and transportation applications.
- Renewable energy: Exploring investment opportunities in renewable energy sources like wind and solar,potentially through partnerships or acquisitions.
- Financial discipline and shareholder returns:
- Debt reduction: Prioritizing debt reduction to improve financial flexibility and creditworthiness.
- Sustainable dividend growth: Maintaining a steady dividend while seeking opportunities for gradual and meaningful increases in the future.
- Share buybacks: Utilizing excess cash flow to repurchase shares, potentially boosting shareholder value.
- Operational Excellence and Innovation:
- Continuously improving efficiency: Implementing technological advancements and operational best practices to optimize production and cost-effectiveness.
- Focus on safety and sustainability: Upholding high safety standards and minimizing environmental impact through responsible operations.
- Developing and deploying new technologies: Investing in research and development of next-generation technologies for exploration, production, and emissions reduction.
Challenges and uncertainties:
While the strategies hold promise, some challenges and uncertainties may impact their success:
- Volatile oil and gas prices: Fluctuations in energy prices can affect profitability and investment decisions.
- Regulation and policy changes: Evolving regulations and policies related to emissions and climate change could impact demand for traditional oil and gas and create opportunities for low-carbon solutions.
- Execution risks: Successful implementation of the strategies requires effective execution across various aspects of the business.
Overall, Occidental Petroleum's growth strategies for 2023 and beyond emphasize a blend of traditional expansion, low-carbon initiatives, financial discipline, and operational excellence. Their success will depend on navigating market and policy challenges while effectively executing their plans.
What does Occidental Petroleum's mergers and acquisitions activity look like over the past 5 years?
Occidental Petroleum: A Five-Year M&A Journey (2019-2023)
Occidental Petroleum's recent M&A activity reflects a deliberate and transformative strategy centered on solidifying its position as a leading integrated energy player. Over the past five years, a series of bold acquisitions and strategic divestments have shaped the company's portfolio, with a particular focus on the burgeoning Permian Basin.
2019: The Anadarko Acquisition - A Defining Move:
- • Transformational Deal: The $57 billion acquisition of Anadarko Petroleum reshaped Occidental's landscape, strategically positioning it as a major Permian Basin player. The deal yielded significant acreage, boosted production, and secured valuable midstream infrastructure, establishing a strong foundation for integrated operations.
- • Strategic Rationale: CEO Vicki Hollub's vision was to create a diversified, vertically integrated energy powerhouse capitalizing on Anadarko's Permian assets and upstream-downstream synergy.
2020-2021: Portfolio Optimization and Diversification:
- • Debt Management Through Divestments: To manage the Anadarko acquisition debt, Occidental implemented a strategic divestment program, exceeding $10 billion in proceeds from non-core assets in marketing & logistics, midstream, and international operations. This streamlined the company's focus and improved capital allocation.
- • Eagle Ford Entry: Diversifying beyond the Permian, Occidental acquired BHP's Eagle Ford Shale assets for $5.6 billion, gaining a foothold in another promising US shale play and mitigating overreliance on a single basin.
2022: Permian Doubling Down:
- • Pioneer Permian Expansion: In a targeted move, Occidental acquired Permian assets from Pioneer Natural Resources for $2.7 billion, strategically augmenting its Delaware Basin footprint and production capacity.
- • Securing Pipeline Infrastructure: Further strengthening its Permian reach, Occidental acquired the WTI pipeline from Kinder Morgan for $1.7 billion, securing crucial transportation capacity for its expanding production.
2023: CrownRock Consolidation Reinforces Dominance:
- • Permian Continued Growth: Occidental's $12 billion acquisition of Permian producer CrownRock LP solidified its basin dominance, adding high-growth assets and significantly bolstering drilling inventory.
Strategic Outcomes and Continued Challenges:
Occidental's M&A strategy has yielded considerable progress towards its goal of becoming a diversified, integrated energy leader with a dominant Permian presence. The Anadarko acquisition, while initially challenging due to debt burden, provided the core assets and synergy potential. Subsequent acquisitions and divestments demonstrate a disciplined approach to optimizing the portfolio, managing debt, and expanding strategically.
Navigating volatile oil markets and optimizing capital allocation remain key challenges moving forward. However, Occidental's recent M&A activities have positioned the company for continued growth in the dynamic energy landscape.
What does the Occidental Petroleum organizational structure look like in 2023?
Occidental Petroleum's organizational structure in 2023 is multi-layered with distinct operating segments reporting to the executive team. Here's a breakdown:
- Vicki Hollub: President and Chief Executive Officer
- Robert Peterson: Executive Vice President, Essential Chemistry
- Sunil Mathew: Senior Vice President and Chief Financial Officer
- Sylvia Kerrigan: Senior Vice President and Chief Legal Officer
- Other Executive Vice Presidents and SVPs: Leading key functions like Human Resources, Investor Relations, Land, Regulatory, etc.
- OxyChem: Led by Wade Alleman, responsible for Occidental's global chemical manufacturing and product lines.
- U.S. Onshore Resources and Carbon Management: Divided into two sections:
- Operations: Led by Richard Jackson, manages oil and gas production in the Permian Basin and other U.S.onshore resources.
- Commercial Development: Led by Jeff Bennett, focuses on acquiring, developing, and optimizing new onshore energy properties.
- International Oil and Gas Operations: Led by Kenneth Dillon, oversees exploration, development, and production activities in countries like Algeria, Colombia, Oman, and others.
- Oxy Energy Services: Led by Fred Forthuber, provides oilfield services and technologies to Oxy's own operations and external clients.
- Oxy Low Carbon Ventures: Led by Neil Ackerman, focuses on developing and investing in low-carbon technologies like carbon capture and storage, clean hydrogen production, and renewable energy.
- Technical Planning and Evaluation: Led by Jeff Simmons, provides technical expertise and support for exploration, development, and production activities.
- Business Support: Led by Glenn Vangolen, handles corporate IT, procurement, supply chain management, and other administrative functions.
- Each segment and function has further sub-divisions with Vice Presidents and Directors managing specific areas.
- Regional teams operate within larger segments, overseeing activities in specific geographical locations.
- The structure reflects Oxy's focus on both traditional oil and gas production and emerging low-carbon initiatives.
- OxyChem operates as a distinct business unit within the overall structure.
- The U.S. Onshore division highlights Oxy's commitment to the Permian Basin while emphasizing commercial development for future growth.
- Oxy Low Carbon Ventures showcases their strategic shift towards decarbonization efforts.
Who is the current CEO of Occidental Petroleum?
Vicki Hollub remains the CEO of Occidental Petroleum as of today, December 29, 2023. She has held this position since April 2016, making her the first woman to head a major American oil company.
Who are Occidental Petroleum’ top competitors in the marketplace?
Occidental Petroleum faces competition in several different areas of the energy market, depending on the specific segment they're operating in. Here's a breakdown of their top competitors:
Traditional Oil and Gas Production:
- Major integrated oil and gas companies: ExxonMobil, Chevron, ConocoPhillips, Shell, BP, TotalEnergies. These companies compete with Oxy in all aspects of the oil and gas industry, from exploration and production to refining and marketing.
- Independent exploration and production companies: EOG Resources, Pioneer Natural Resources, Devon Energy, Diamondback Energy. These companies focus primarily on oil and gas production, often in specific regions like the Permian Basin where Oxy also operates.
- National oil companies: Saudi Aramco, Petrobras, Pemex. These state-owned companies often have vast resources and low production costs, making them formidable competitors in some markets.
- Major chemical companies: Dow, BASF, DuPont, LyondellBasell. These companies compete with OxyChem in various industrial and consumer chemical markets.
- Specialty chemical companies: Albemarle, FMC, Eastman Chemical. These companies focus on niche markets with specialized products, potentially overlapping with some of OxyChem's offerings.
Emerging Low-Carbon Technologies:
- Carbon capture and storage: ExxonMobil, Chevron, Shell, BP, Equinor. These major oil and gas companies are also investing heavily in CCS technology, posing competition for Oxy Low Carbon Ventures.
- Clean hydrogen production: Linde, Air Liquide, Air Products. These industrial gas companies have established expertise in hydrogen production and distribution, potentially competing with Oxy in this space.
- Renewable energy developers: Ørsted, Iberdrola, NextEra Energy. While Oxy might not directly compete with them currently, renewable energy sources increasingly challenge the demand for traditional fossil fuels in the long run.
Additional factors to consider:
- Regional competition: Depending on the specific location of Oxy's operations, they might face additional competition from smaller regional players.
- Technological advancements: New technologies and solutions can disrupt the marketplace and create new competitors in unexpected ways.
- Government policies and regulations: Changes in regulatory frameworks can impact the relative competitiveness of different energy sources and technologies.
Overall, Occidental Petroleum operates in a highly competitive market with diverse players across various segments. Their success will depend on their ability to adapt to changing market dynamics, leverage their strengths, and navigate the energy transition effectively.
Who currently sits on the Occidental Petroleum Board of Directors?
As of today, December 29, 2023, the Board of Directors at Occidental Petroleum comprises ten members:
- Vicki Hollub, President & Chief Executive Officer (Director since 2015)
- Avedick B. Poladian, Director since 2008
- Carlos M. Gutierrez, Director since 2009
- William R. Klesse, Director since 2013
- Robert M. Shearer, Director since 2019
- Andrew F. Gould, Director since 2020
- Vicky A. Bailey, Director since 2022
- Claire O'Neill, Director since 2023
- Ken Robinson, Director since 2023
- Jack B. Moore, Independent Chairman since 2022
Who are the executive decision-makers at Occidental Petroleum as of November 2023?
Sunil Mathew, Chief Financial Officer
Sylvia Kerrigan, Chief Legal Officer & Senior VP
Robert Peterson, Executive VP, Essential Chemistry, Occidental Chemical Corporation
Thomas Janiszewski, Land Vice President, Regulatory
Fred Forthuber, President, Oxy Energy Services
Wade Alleman, President, OxyChem
Jeff Bennett, President, U.S. Onshore Resources & Carbon Management, Commercial Development
Jeff Simmons, Senior Vice President, Chief Petrotechnical Officer
Neil Ackerman, Senior Vice President, New Venture Operations
Kenneth Dillon, Senior VP & President, International Oil & Gas Operations
Richard Jackson, Senior VP, Operations Support
Yanni Charalambous, Vice President and Chief Information Officer
Christopher Champion, Vice President CAO and Controller - Oxy
Nicole Clark, Vice President, Corporate Secretary, Chief Compliance Officer and Deputy General Counsel
Angela Johnson, Vice President, Diversity & Inclusion
Karen Sinard, Vice President, Environmental and Sustainability
Darin Moss, Vice President, Human Resources
Neil Backhouse, Vice President, Investor Relations
Vicki Hollub, President & Chief Executive Officer (Director since 2015)
What Technology Platforms have been deployed at Occidental Petroleum?
Occidental Petroleum invests in and deploys a variety of technology platforms across its different business segments, aiming to optimize operations, improve efficiency, and drive growth. Here's a glimpse into some notable ones:
Digital Upstream Platforms:
- i-Well: An integrated well performance platform providing real-time data and analytics for production optimization, drilling efficiency, and reservoir management.
- Genesis 2.0: A next-generation seismic imaging and interpretation platform for enhanced field characterization and exploration success.
- Geospatial Analytics Platform: Utilizing AI and machine learning to analyze wellbore data, seismic surveys, and geological information for informed decision-making.
Production Automation and Optimization:
- Wellbore and Facility Automation Systems: Employing sensors, controls, and data analytics to automate production processes, increase uptime, and reduce operating costs.
- Advanced Visualization Tools: Creating real-time visualizations of field operations, enabling quick identification of issues and optimization opportunities.
- Production Optimization Software: Utilizing data analysis and predictive models to optimize production rates,reservoir pressure, and artificial lift methods.
Chemical Manufacturing and Supply Chain:
- Plant Information Management Systems (PIMS): Integrating production data, quality control, and operational processes for efficient plant management and optimization.
- Advanced Supply Chain Management Systems: Optimizing logistics, inventory management, and transportation across the chemical value chain.
- Digital Marketing and Analytics Platforms: Leveraging data insights to target customer needs and customize product offerings.
- Carbon Capture, Utilization, and Storage (CCUS) Platform: Integrating a suite of technologies for capturing,transporting, and storing CO2 emissions, including Oxy's proprietary CO2 Capture technology and AIR TO FUELS™ for converting CO2 into fuel.
- Clean Hydrogen Production Platform: Utilizing various technologies, including steam reforming and electrolysis, to produce clean hydrogen for industrial and transportation applications.
- Renewable Energy Investment Platforms: Exploring partnerships and investments in solar, wind, and other renewable energy technologies.
Other Notable Platforms:
- Enterprise Resource Planning (ERP) Systems: Streamlining financial, procurement, and logistical processes across the company.
- Cybersecurity and IT Infrastructure: Robust systems to protect against cyber threats and ensure business continuity.
- Data Analytics and Visualization Tools: Analyzing data across various operations to gain insights, improve decision-making, and identify opportunities for innovation.
This list is not exhaustive, and Oxy likely utilizes various other platforms and technologies specific to different functions and projects. The company continues to invest in research and development, adopting and evaluating new technologies for potential future deployments.
Occidental Petroleum SWOT Analysis
- Financial Resilience: Oxy demonstrated resilience with a net income of $1.375 billion for Q3 2023 despite market volatility. Strategic asset sales and debt reduction boosted their financial standing.
- Strong Operational Performance: Continued focus on optimization and technological advancements in the Permian Basin led to efficient production and cost reduction.
- Strategic Asset Management: The sale of non-core assets and acquisitions like Anadarko assets in Appalachia enhanced portfolio value and strategic focus.
- Diversification: Presence in both traditional oil & gas and emerging low-carbon sectors like carbon capture and storage (CCS) and clean hydrogen provides options for future growth.
- Talented Workforce: Oxy cultivates a strong safety culture and invests in employee development, fostering a dedicated and skilled workforce.
- Dependence on Fossil Fuels: Oxy’s core business remains heavily reliant on oil & gas, exposing them to price fluctuations and potential future decline in demand due to energy transition.
- Limited Renewable Energy Footprint: Oxy's current renewable energy investments are minimal compared to major competitors, potentially hindering their long-term competitiveness.
- Environmental Impact: Past controversies and ongoing concerns about environmental impact related to emissions and spills could damage their reputation and attract regulatory scrutiny.
- High Debt Levels: Despite recent debt reduction, Oxy's debt-to-equity ratio remains higher than some competitors, limiting financial flexibility and potentially impacting borrowing costs.
- Talent Retention in Transition: Attracting and retaining talent for both traditional and low-carbon sectors amidst the energy transition might pose challenges.
- Growing Demand for Energy: Global energy demand is expected to continue increasing, particularly in developing economies, presenting potential market growth for Oxy's core business.
- CCS and Clean Hydrogen Leadership: Oxy's investments in CCS and clean hydrogen position them as potential leaders in these emerging markets, with significant growth potential.
- Partnerships and Acquisitions: Collaborations with other energy companies or technology providers can accelerate innovation and expand market reach.
- Favorable Policy Environment for Low-Carbon Technologies: Government incentives and carbon pricing initiatives could create lucrative opportunities for Oxy's low-carbon ventures.
- Technological Advancements: Continued advancements in areas like AI, data analytics, and automation can further optimize operations and drive cost efficiencies.
- Volatile Oil & Gas Prices: Geopolitical events, economic fluctuations, and increasing adoption of renewables can cause significant price swings in oil & gas markets, impacting Oxy's revenue and profitability.
- Regulation and Policy Changes: Evolving regulations regarding emissions, environmental standards, and carbon pricing could impose additional costs and limit Oxy's operations.
- Competition from Renewable Energy: Increasing adoption of renewable energy sources like solar and wind can erode demand for traditional fossil fuels and challenge Oxy's market share.
- Technological Disruption: New technologies in energy storage, alternative fuels, or carbon capture could bypass existing solutions and create unforeseen competition.
- Climate Change Risks: Physical impacts of climate change, such as extreme weather events, can disrupt operations and infrastructure, impacting Oxy's business continuity.
Overall, Occidental Petroleum Corporation (OXY) faces a complex landscape with both significant strengths and weaknesses. Their strategic focus on both low-carbon initiatives and optimizing their traditional business could position them for success in the evolving energy market. However, navigating ongoing challenges and effectively capitalizing on emerging opportunities in the Middle East, Latin America, North Africa, Houston, Texas, and the United States, and other regions where Occidental Petroleum Corporation and its subsidiaries operate, including Texas and Occidental Petroleum Corp, will be crucial for their long-term sustainability and competitiveness in the gas segment explores, condensate segment, natural gas liquids (NGLs) segment, carbon dioxide segment, power segment, and chemical segment manufactures basic chemicals, including vinyls, polyvinyl chloride, sodium silicates, calcium chloride, and caustic soda. Additionally, Occidental Petroleum Corporation is listed on the NYSE American as OXY:ASE.
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The Oxy company profile report contains more than 45 PowerPoint slides with insights to their corporate growth strategies, investments they're making in their business & technology operations, executive changes, along with comprehensive Org Charts, a Contact Information spreadsheet, a 2024 IT Budgets spreadsheet with detailed line items, and a Technographic profile with more than 1,000 IT Vendors & Products. Collectively, the content in the Oxy company profile represents more than 50 hours of research time.
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