Occidental Petroleum 2002 Annual Report Download - page 97

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results.
The year-end prices used to calculate future cash flows vary by producing
area and market conditions. For the 2002, 2001 and 2000 disclosures, the West
Texas Intermediate oil prices used were $31.17/bbl, $19.84/bbl and $26.80/bbl,
respectively. The NYMEX gas prices used for the 2002, 2001 and 2000 disclosures
were $4.75/MMBtu, $2.57/MMBtu and $9.78/MMBtu, respectively.
STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS
In millions
Consolidated Subsidiaries
------------------------------------------------------------
Middle East
and Other
United Latin Eastern Other
States America Hemisphere Total Interests(a)
=================================================== ============ ============ ============ ============ ============
AT DECEMBER 31, 2002
Future cash flows $ 46,806 $ 3,407 $ 9,183 $ 59,396 $ 429
Future costs
Production costs and other operating expenses (18,288) (907) (2,329) (21,524) (286)
Development costs (b) (1,997) (165) (997) (3,159) (40)
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS BEFORE INCOME TAXES 26,521 2,335 5,857 34,713 103
Future income tax expense (7,929) (906) (523) (9,358) --
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS 18,592 1,429 5,334 25,355 103
Ten percent discount factor (10,342) (440) (2,144) (12,926) (22)
------------ ------------ ------------ ------------ ------------
STANDARDIZED MEASURE $ 8,250 $ 989 $ 3,190 $ 12,429 $ 81
=================================================== ============ ============ ============ ============ ============
AT DECEMBER 31, 2001
Future cash flows $ 28,146 $ 2,259 $ 6,010 $ 36,415 $ 469
Future costs
Production costs and other operating expenses (14,404) (868) (1,882) (17,154) (321)
Development costs (b) (2,282) (204) (575) (3,061) (32)
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS BEFORE INCOME TAXES 11,460 1,187 3,553 16,200 116
Future income tax expense (2,224) (483) (396) (3,103) (26)
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS 9,236 704 3,157 13,097 90
Ten percent discount factor (5,088) (199) (1,276) (6,563) (22)
------------ ------------ ------------ ------------ ------------
STANDARDIZED MEASURE $ 4,148 $ 505 $ 1,881 $ 6,534 $ 68
=================================================== ============ ============ ============ ============ ============
AT DECEMBER 31, 2000
Future cash flows $ 53,195 $ 2,923 $ 6,207 $ 62,325 $ 482
Future costs
Production costs and other operating expenses (13,236) (823) (1,599) (15,658) (130)
Development costs (b) (1,962) (51) (490) (2,503) (45)
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS BEFORE INCOME TAXES 37,997 2,049 4,118 44,164 307
Future income tax expense (11,023) (969) (468) (12,460) (82)
------------ ------------ ------------ ------------ ------------
FUTURE NET CASH FLOWS 26,974 1,080 3,650 31,704 225
Ten percent discount factor (14,608) (408) (1,508) (16,524) (61)
------------ ------------ ------------ ------------ ------------
STANDARDIZED MEASURE $ 12,366 $ 672 $ 2,142 $ 15,180 $ 164
=================================================== ============ ============ ============ ============ ============
(a) Includes future net cash flows applicable to equity investees in Russia and
Yemen, partially offset by minority interests for a Colombian affiliate.
(b) Includes dismantlement and abandonment costs.
77
CHANGES IN THE STANDARDIZED MEASURE OF DISCOUNTED FUTURE
NET CASH FLOWS FROM PROVED RESERVE QUANTITIES
In millions
For the years ended December 31, 2002 2001 2000
=================================================================================================== ======= ======= =======
BEGINNING OF YEAR $ 6,534 $15,180 $ 7,249
------- ------- -------
Sales and transfers of oil and gas produced, net of production costs and other operating expenses (2,910) (3,383) (3,455)
Net change in prices received per barrel, net of production costs and other operating expenses 9,731 (12,737) 6,196
Extensions, discoveries and improved recovery, net of future production and development costs 1,496 1,238 1,222
Change in estimated future development costs (538) (931) (78)
Revisions of quantity estimates (87) 58 1,315
Development costs incurred during the period 954 902 569