RPC Inc. (NYSE:RES) Q4 2014 Earnings Conference Call - Final Transcript

Jan 28, 2015 • 09:00 am ET


RPC Inc. (NYSE:RES) Q4 2014 Earnings Conference Call - Final Transcript


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Good morning and welcome to the Occidental Petroleum Corporation Fourth Quarter Earnings Conference Call. All participants will be in a listen-only mode [Operator Instructions]. After today's presentation there will be a opportunity to ask question. Please note that event is being recorded. I would now like to turn the conference over to Chris Degner. Mr. Degner, please go ahead.

Chris Degner

Thank you, Emily. Good morning, everyone and thank you for participating in Occidental Petroleum's fourth quarter 2014 conference call. On the call with us today are Steve Chazen, Oxy's President and Chief Executive Officer, Chris Stavros, Chief Financial Officer, Vicki Hollub, President, Oil and Gas in the Americas, Willie Chiang, Executive Vice President of Operations and Sandy Lowe, President of our International Oil and Gas Operation.

In just a moment I will turn the call over to our CEO, Steve Chazen who will review our achievements in 2014 and provide an outlook for 2015. Our CFO, Chris Stavros will review our financial and operating results for the fourth quarter and also provide guidance for 2015. Then, Willie Chiang will review our 2015 capital plan followed by Vicki Hollub, who will provide an update of our activities in the Permian Basin. As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the Federal Securities Laws.

These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. Additional information on factors that could cause results to differ is available on the company's most recent Form 10-K. Our fourth quarter 2014 earnings press release and the investor relations supplemental schedules, our non-GAAP to GAAP reconciliation and the conference call presentation slides can be downloaded off of our website at www.oxy.com.

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

Steve Chazen

Thanks, Chris. I would like to start with some highlights from our accomplishments in the past year. We executed many of our strategic initiatives including the spin-off of California Resources, the sale of our Hugoton gas properties, BridgeTex pipeline and PAGP units. At the end of the year, our cash balance of $7.8 billion exceeded our total debt of $6.8 billion. We grew our domestic oil production by 11,000 barrels a day over 2013 to 181,000 a day. We grew our Permian resources production from 65,000 barrel equivalents a day over 2013 to 75,000 barrels a day this year.

The 2004 capital program added 395 million barrels of proved reserves, replacement ratio of 181% before dispositions. Our costs incurred with these reserve additions were about $6.7 billion, resulted in an apparent finding and development cost of under $17 a BOE. We added 363 million barrels of liquid proved reserves, a replacement ratio of 223%, before dispositions.

We completed the Al Hosn gas project on budget and on time which started production in early January. I have two comments about the macro environment. The confluence of US supply growth, weaker Asian demand and