Entering text into the input field will update the search result below

Occidental Petroleum Corporation (OXY) CEO Vicki Hollub on Q2 2021 Results - Earnings Call Transcript

SA Transcripts profile picture
SA Transcripts

Occidental Petroleum Corporation (NYSE:OXY) Q2 2021 Earnings Conference Call August 4, 2021 1:00 PM ET

Company Participants

Vicki Hollub – President and CEO

Jeff Alvarez – Vice President of Investor Relations

Rob Peterson – Senior Vice-President and CFO

Conference Call Participants

Neil Mehta – Goldman Sachs

Doug Leggate – Bank of America

Roger Read – Wells Fargo

Phil Gresh – J.P. Morgan

Paul Cheng – Scotiabank

Neal Dingmann – Truist

Leo Mariani – KeyBanK


Good afternoon, and welcome to Occidental's Second Quarter 2021 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions.

[Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Jeff Alvarez, Vice President of Investor Relations. Please go ahead.

Jeff Alvarez

Thank you, Chad. Good afternoon everyone. And thank you for participating in Occidental's Second Quarter 2021 Conference Call. On the call with us today, are Vicki Hollub, President and Chief Executive Officer, and Rob Peterson, Senior Vice-President and Chief Financial Officer.

This afternoon, we will refer to slides available on the Investors section of our website. The presentation includes a cautionary statement on Slide 2 regarding forward-looking statements that will be made on the call this afternoon. I'll now turn the call over to Vicki. Vicki, please go ahead.

Vicki Hollub

Thank you, Jeff, and good afternoon everyone. Our strong operational performance in the second quarter continued to drive robust financial performance as we marked our second consecutive quarter of generating the highest level of free cash flow in over a decade.

As was the case last quarter, our cost structure and capital intensity leadership were catalysts for our strong results and continue to provide a solid foundation for free cash flow

Recommended For You

Comments (21)

Big Boom profile picture
Good to see that the DAC growth option is getting some attention.
2 Bn FCF per quarter plus divestitures, div increase in Q3 or Q4 2022, am I right?
I hope that the conference call transcription people did a poor job of getting the spoken words correct

Because if they did a good job and got it correct

Then there are a number of people at OXY that can’t complete a thought with a clear sentence without stammering or making any sense.
05 Aug. 2021
@2020short Both but Hollub and Peterson, CFO, do not provide solid answers to the analysts' questions, which happens every quarter, they are horrible and the calls are pure spin.

The main and most important question for me, the GS analyst Mehta asked about paying a dividend again, and the non-answer response by Peterson was a complete disgrace for a guy in his position.

There are always transcription errors, probably use a program with weak speech recognition, but you can interpret the just of his pathetic answer. I am pissed that Mehta did not ask the questions again, even pose it to Hollub.
@jac9 I think they did answer the question although it comes at the end of a soliloquy. "So, use of cash for dividends, growth, et cetera, will also be viewed in the near-term unfavorably. So that's why we remain focused on deleveraging process. And once we reach that more sustainable debt level, we will start resuming greater amount of cash to shareholders."
I wish someone had asked what safeguards did you install to ensure another fiasco like the Andarko purchase does not occur again? Has anyone at least been admonished for that purchase?
05 Aug. 2021
@nothamilton GS analyst: "And the follow-up is one of the key takeaways from earnings season, is the emphasis investors continue to place on cash returns. And at this point, Occidental is more focused on deleveraging the business, which makes a lot of sense.

Can you just remind us what your absolute debt target is? And then at what point or what milestones should we be thinking about the Company shifting from a deleveraging approach to one of where you can reintroduce something like a dividend?"
Moats and Income profile picture
Fantastic performance by OXY….they will get to mid-20s debt by this time next year with WTI >= $60 and asset sales….
sjfaris profile picture
They did a poor job of explaining how they reduce debt to 22-28 B. Breakdown

12/31/2020 12/31/2019 12/31/2018 12/31/2017n

Total Debt 37,299,000 40,011,000 10,317,000 9,828,0. However, OXY debt is around 35 B. Thats why investors will not give them a lift.
@sjfaris i think over 2b in fcf / qtr speaks for itself
sjfaris profile picture
@proctormap Can you say how much of FCF will go to debt reduction?
The stock is dead money around 30-32Max. I notice they payed their execs but not the stock holders. May as well buy XLE at least you get a dividend.
05 Aug. 2021
@sjfaris Or DVN, PXD, FANG...management is a joke. The CFO cannot even answer that direct question from the GS analyst, his answer is the most inept response from a guy in his position.

Hollub does not care about the shareholders.
To report an error in this transcript, .Contact us to add your company to our coverage or use transcripts in your business. Learn more about Seeking Alpha transcripts here. Your feedback matters to us!
To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.