Occidental Petroleum 2001 Annual Report Download - page 27

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IN MILLIONS 2001 2000 1999
=========================== ======= ======= =======
Oil and Gas $ 1,223 $ 791 $ 474
Chemical 120 155 116
Corporate and other 58 6 11
------- ------- -------
TOTAL $ 1,401 $ 952 $ 601
=========================== ======= ======= =======
Oil and gas capital expenditures were significantly higher in 2001
reflecting higher oil field service costs and higher development spending
resulting, primarily, from a larger asset base. Amounts from all three years
exclude any significant acquisitions.
Occidental's capital spending budget for 2002 is $1.1 billion. Of the
total, approximately $1 billion will be allocated to oil and gas, with Qatar,
Elk Hills and the Permian Basin receiving the highest priority.
FINANCING ACTIVITIES
In millions 2001 2000 1999
======= ======= =======
NET CASH (USED)PROVIDED $(1,814) $ 579 $(2,517)
The 2001 amount reflected the repayment of $2.3 billion of long-term and
non-recourse debt, partially offset by proceeds of $861 million from new
long-term debt.
The 2000 amount reflected the proceeds from the $2.4 billion non-recourse
debt offset by repayments of $1.4 billion on the long-term and non-recourse
debt. The 2000 amount also includes the first year of purchases made to satisfy
delivery commitments under the gas pre-sale commitment that was signed in 1998.
The 1999 amount reflected the repayment of commercial paper and long-term
debt.
Occidental paid common stock dividends of $372 million in 2001 and $369
million in 2000 and paid preferred and common stock dividends of $363 million in
1999. In 1999, a total of 4,847,130 shares of CXY-indexed convertible preferred
stock were converted by the holders into 15,708,176 shares of Occidental's
common stock. At the end of 2001, 2000 and 1999, Occidental had no preferred
stock outstanding. However, most of the Trust Preferred Securities issued in
January 1999 by Oxy Capital Trust I, a wholly-owned subsidiary of Occidental,
remain outstanding at December 31, 2001.
Occidental has a centralized cash-management system that funds the working
capital and capital expenditure requirements of its various subsidiaries. There
are no provisions under existing debt agreements that significantly restrict the
ability to move funds among operating entities.
ADDITIONAL CONSIDERATIONS REGARDING FUNDING AND LIQUIDITY
In the course of its business activities, Occidental pursues a number of
projects and transactions to meet its core business objectives. The accounting
and financial statement treatment of these transactions is a result of the
varying methods of funding employed. Occidental also makes commitments on behalf
of unconsolidated entities. These transactions, or groups of transactions, are
recorded in compliance with generally accepted accounting principles and, unless
otherwise noted, are not recorded on Occidental's balance sheets. The following
is a description of the business purpose and nature of these transactions.
>> CHEMICAL TRANSACTIONS
TAFT COGENERATION FACILITY
Occidental has undertaken certain commitments in connection with the
construction and leasing of a cogeneration facility in Taft, LA. This facility
will supply all the steam and electric power requirements for Occidental's Taft
chlor-alkali plant for less cost than if the plant were to generate its own
steam and purchase electricity from a public utility. An owner trust with
investors as participating beneficiaries owns the project, with Occidental