Occidental Petroleum

Occidental Petroleum said it would use high oil prices to send more money to investors rather than grow production 

Occidental Petroleum’s CEO: “If oil prices remain supportive this year, our intent is to follow our cash flow priorities and capital framework that we will share with you today. We have no need and no intent to invest in production growth this year.” “Vicki Hollub — President and Chief Executive Officer: Within six months or less, if necessary, we can reduce capital spending to sustaining levels. And if oil prices remain supportive this year, our intent is to follow our cash flow priorities and capital framework that we will share with you today. We have no need and no intent to invest in production growth this year. Having a flexible capital budget that includes investment and cash flow longevity provides us and puts us in a strong position to implement shareholder return framework that will benefit shareholders over the long term.” (Occidental Petroleum Q4 2021 Earnings Call, 2/25/2022)

Occidental Petroleum CEO: “The objective of strengthening our financial position remains the same: Enable us to confidently increase the amount of capital that we may sustainably return to shareholders throughout the cycle.”“Vicki Hollub — President and Chief Executive Officer : With respect to cash flow priorities, our priorities for 2022 remain largely unchanged, with a continuing emphasis on reducing debt while maintaining our asset base integrity and sustainability. The objective of strengthening our financial position remains the same: Enable us to confidently increase the amount of capital that we may sustainably return to shareholders throughout the cycle. As we expect net debt to fall below $25 billion by the end of the first quarter, our focus has expanded to returning capital to shareholders, beginning with the increase in our common dividend to $0.13 per share and the reactivation and expansion of our share repurchase program. The increase in the dividend to $0.13 per share is consistent with our intention to initially increase the dividend to a level that approximates the yield of the S&P 500.” (Occidental Petroleum Q4 2021 Earnings Call, 2/25/2022)

Occidental CEO: “we do not intend to grow production in 2022…Any future production growth will be limited to an average annual rate of approximately 5%.”“We believe establishing framework for returning capital to shareholders through a sustainable common dividend, combined with an active share repurchase program and continued debt reduction, creates an attractive value proposition for shareholders while also improving the company’s long-term financial position. For the first phase of our shareholder return framework initiated, we have the options in future years to invest in cash flow growth. We have the ability to grow oil and gas cash flow through higher production, but also have multiple investment opportunities across our other businesses. As evidenced by our guidance for 2022, we do not intend to grow production in 2022. At the point where it is appropriate to invest in future cash flow growth, we will only do so if supported by long-term demand. Any future production growth will be limited to an average annual rate of approximately 5%. I’ll now turn the call over to Rob, who will walk you through our shareholder return framework.” (Occidental Petroleum Q4 2021 Earnings Call, 2/25/2022)

Occidental CEO said “we try to design our capital programs to deliver the best returns… build the facilities that require a pace of development that delivers the maximum return.”“Vicki Hollub — President and Chief Executive Officer: Well, it really depends on the projects. And what we always do is we try to design our capital programs to deliver the best returns. And so, it’s always — as we develop our areas, it’s always with that in mind and to build the facilities that require a pace of development that delivers the maximum return. So we could have lumpy — a little bit lumpy growth going out.” (Occidental Petroleum Q4 2021 Earnings Call, 2/25/2022)