Occidental Petroleum 2002 Annual Report Download - page 24

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LIQUIDITY AND CAPITAL RESOURCES
OPERATING ACTIVITIES
In millions 2002 2001 2000
======== ======== ========
NET CASH PROVIDED $ 2,100 $ 2,566 $ 2,348
The lower operating cash flow in 2002, compared with 2001, results from
lower core earnings and higher working capital usage.
The higher operating cash flow in 2001, compared with 2000, results from
lower core earnings and higher working capital usage more than offset by
additional significant non-cash items.
Other non-cash charges in 2002 include environmental remediation accruals
and the asset writedown for two chemical facilities. Other non-cash charges in
2001 include environmental remediation accruals. Other non-cash charges in 2000
include the write-down of the chemical intermediate businesses and other
miscellaneous items. Each of the three years also includes charges for employee
benefit plans and other items.
INVESTING ACTIVITIES
In millions 2002 2001 2000
======== ======== ========
NET CASH USED $ (1,696) $ (651) $ (3,044)
The 2002 amount includes approximately $349 million for a 24.5-percent
interest in DEL, the operator of the Dolphin Project.
The 2001 amount includes the gross proceeds of $863 million from the sale
of the entity that owns a Texas intrastate pipeline system and the sale of
Occidental's interest in the Tangguh LNG project in Indonesia.
The 2000 amount includes 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 GOM asset
transactions. The 2000 amount also includes approximately $3.7 billion for the
purchases of Altura and THUMS.
CAPITAL EXPENDITURES
In millions 2002 2001 2000
========================== ======== ======== ========
Oil and Gas $ 1,038 $ 1,138 $ 738
Chemical 109 112 148
Corporate and other 89 58 6
-------- -------- --------
TOTAL $ 1,236 $ 1,308 $ 892
========================== ======== ======== ========
Occidental's capital spending estimate for 2003 is $1.3 billion. Of the
total, approximately $1.2 billion will be allocated to oil and gas, with Qatar,
Elk Hills and the Permian Basin receiving the highest priority.
FINANCING ACTIVITIES