Occidental Petroleum 2001 Annual Report Download - page 26

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Write-down of assets in 2001 included the write-down of the Equistar equity
investment. The 2000 amount includes the write-down of certain oil and gas
investments and the write-down of the chemical intermediate businesses. The 1999
amount includes the write-down of the Peru producing operations and the
write-down of the chemical intermediate business.
Minority interest in 2001 and 2000 included preferred distributions to the
Altura partners of $104 million and $107 million, respectively.
Exploration expense in 2001 included expensing higher-cost exploration
wells, primarily the Gibraltar well in Colombia of $66 million.
The decrease in interest and debt expense in 2001, compared with 2000,
reflected lower outstanding debt levels and lower interest rates. The increase
in interest and debt expense, net in 2000, compared to 1999, reflected the
interest on the Altura non-recourse debt, partially offset by lower outstanding
corporate debt levels.
LIQUIDITY AND CAPITAL RESOURCES
OPERATING ACTIVITIES
In millions 2001 2000 1999
======= ======= =======
NET CASH PROVIDED $ 2,652 $ 2,401 $ 1,044
The higher operating cash flow in 2001, compared with 2000, resulted from
higher recurring non-cash charges, including depreciation, depletion and
amortization, exploration expenses and a loss from equity investments.
The higher operating cash flow in 2000, compared with 1999, resulted mainly
from higher earnings before special items. Depreciation, depletion and
amortization of assets increased due to the increase in property, plant and
equipment from the Altura acquisition.
Other non-cash charges in 2001 included the write-down of the Equistar
investment and environmental remediation accruals. Other non-cash charges in
2000
20
included the write-down of the chemical intermediate businesses and other
miscellaneous items. Other non-cash charges in 1999 included the write-down of
chemical assets and other miscellaneous items. See the "Special Items" table on
page 19. Each of the three years also included charges for employee benefit
plans and other items.
INVESTING ACTIVITIES
In millions 2001 2000 1999
======= ======= =======
NET CASH(USED) PROVIDED $ (736) $(3,097) $ 1,591
The 2001 amount included the gross proceeds of $863 million from the sale
of the entity that owns pipelines in Texas and the sale of Occidental's interest
in the Tangguh LNG project in Indonesia.
The 2000 amount included the gross proceeds of approximately $800 million
from the sale of the CanadianOxy investment, gross proceeds of $150 million from
the sale of the Durez business and approximately $342 million from the
monetization of the GOM assets. The 2000 amount also included approximately $3.7
billion for the purchases of Altura and THUMS.
The 1999 amount included the proceeds from the $1.4 billion note receivable
and the $775 million proceeds from the Chevron litigation settlement. The 1999
amount reflected lower capital expenditures and also reflected net cash used of
$113 million in connection with the formation of OxyVinyls.
CAPITAL EXPENDITURES