Occidental Petroleum Corporation (NYSE:OXY) Q1 2015 Earnings Conference Call Transcript

May 06, 2015 • 10:00 am ET

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Occidental Petroleum Corporation (NYSE:OXY) Q1 2015 Earnings Conference Call Transcript

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Presentation
Operator
operator

Good morning, and welcome to the Occidental Petroleum Corp. first quarter 2015 earnings conference call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation there will be an opportunity to ask questions. Please note this event is being recorded.

I would now like to turn the conference over to Mr. Chris Degner, Senior Director of Investor Relations. Please go ahead, sir.

Executive
Christopher M. Degner

Thank you, Rocco. Good morning, everyone, and thank you for participating in Occidental Petroleum's first quarter 2015 conference call.

On the call with us today are Steve Chazen, OXY's President and Chief Executive Officer; Vicki Hollub, Senior Executive Vice of Occidental and President, OXY Oil and Gas; Chris Stavros, Chief Financial Officer; Willie Chiang, Executive Vice President of Operations; and Sandy Lowe, President of our International Oil and Gas Operations.

In just a moment I will turn the call over to our CEO, Steve Chazen, who will provide an updated outlook for 2015. Our CFO, Chris Stavros, will review our financial and operating results for the first quarter and also provide some guidance for 2015; followed by Vicki Hollub who will provide an update of our activities in the Permian Basin.

(Forward-Looking Cautionary Statements)

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

Executive
Stephen I. Chazen

Thank you, Chris. Yesterday we announced that Vicki Hollub has been named to head our worldwide oil company and will succeed me as CEO when I retire. Both of us will be visiting shareholders either at conferences or in their offices over the next few months. My commitment is to remain in place until the board and Vicki feel it is time for me to move on but not any longer. Vicki has worked for OXY for over 30 years. She's had a number of very challenging assignments over the years including operations manager in Ecuador and Russia.

In our California assets, she reorganized the business and changed its processes so that it would be stable in a wide range of product prices. She has built our Permian Resources business into a sustainable, profitable growth engine for OXY. She's an accomplished team builder, has the confidence of executives and employees throughout the business. She also has had the misfortune of officing next to me for the last couple of years.

The Board, of which I'm a part, has worked on this succession plan for the last two years. The directors interviewed a number of executives and considered both internal and external candidates. In the current volatile business climate, our view is that an experienced, successful executive who knows our business well is the best choice. You will find Vicki to be a thoughtful, engaging and agent of change for OXY.

Yesterday we also announced a dividend increase of just over 4%. This is our 13th consecutive year that we've raised our dividend. We carefully considered our future capital needs and likely cash flows. Our current estimates are that we should be able to continue to grow our dividend for many