Occidental Petroleum 2002 Annual Report Download - page 20

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CONSOLIDATED SUBSIDIARIES (MBOE) 492 452 440
Less: Colombia-minority interest (5) (3) (5)
Add: Russia-Occidental net interest 27 27 26
Add: Yemen-Occidental net interest 1 -- --
-------- -------- --------
TOTAL WORLDWIDE PRODUCTION 515 476 461
======== ======== ========
AVERAGE SALES PRICES
CRUDE OIL PRICES ($ per barrel)
U.S. $ 23.47 $ 21.74 $ 26.66
Latin America $ 23.14 $ 20.10 $ 26.07
Middle East and
Other Eastern Hemisphere (e) $ 24.01 $ 22.97 $ 26.92
Total consolidated subsidiaries $ 23.56 $ 21.91 $ 26.62
Other interests $ 14.80 $ 15.57 $ 18.60
Total worldwide $ 22.91 $ 21.41 $ 25.99
GAS PRICES ($ per thousand cubic feet)
U.S. $ 2.89 $ 6.40 $ 3.66
Middle East and
Other Eastern Hemisphere $ 2.08 $ 2.29 $ 1.99
Total worldwide $ 2.81 $ 6.09 $ 3.53
EXPENSED EXPLORATION (b) $ 176 $ 184 $ 94
CAPITAL EXPENDITURES
Development $ 897 $ 918 $ 582
Exploration $ 55 $ 86 $ 79
Acquisitions and other (c, d) $ 86 $ 134 $ 77
----------------------------------------- -------- -------- --------
(a) Occidental's results of operations often include the effects of significant
transactions and events affecting earnings that vary widely and
unpredictably in nature, timing and amount. Therefore, management uses a
measure called "core earnings", which excludes those items. This non-GAAP
measure is not meant to disassociate those items from management's
performance, but rather is meant to provide useful information to investors
interested in comparing Occidental's earnings performance between periods.
Core earnings is not considered to be an alternative to operating income in
accordance with generally accepted accounting principles.
(b) The 2002 amount includes a $33 million write-off for Lost Hills leases and
a $25 million write-off of the Thunderball well, both in California, and
the 2001 amount includes a $66 million write-off of the Gibraltar well in
Colombia.
(c) Includes mineral acquisitions but excludes significant acquisitions
individually discussed in this report.
(d) Includes capitalized portion of injected CO2 of $42 million, $48 million
and $44 million in 2002, 2001 and 2000, respectively.
(e) These amounts exclude implied taxes.
Occidental explores for and produces oil and natural gas, domestically and
internationally. Occidental seeks long-term growth and improvement in
profitability and cash flow through a combination of increased operating
efficiencies in core assets, enhanced oil recovery projects, focused exploration
opportunities and complementary property acquisitions.
Core earnings in 2002 were $1.7 billion compared with $2.4 billion in 2001.
The decrease in core earnings primarily reflects the impact of lower natural gas
prices and production volumes, partially offset by higher crude oil prices and
production volumes.
CHEMICAL
In millions, except as indicated 2002 2001 2000
========================================== ======== ======== ========
SEGMENT SALES $ 2,704 $ 2,968 $ 3,629
SEGMENT EARNINGS (LOSS) $ 275 $ (399) $ 141
CORE EARNINGS (a) $ 111 $ 13 $ 281