Occidental Petroleum 2003 Annual Report Download - page 26

TOTAL $ 1,601 $ 1,236 $ 1,308
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The 2003 chemical amount includes $180 million for the purchase of a
previously leased facility in LaPorte, Texas and $44 million related to the
exercise of purchase options for certain leased railcars.
Occidental's capital spending estimate for 2004 is approximately $1.4
billion. In addition, Occidental expects to spend $250 million to $300 million
on the Dolphin Project. A majority of the capital spending will be allocated to
oil and gas, with the main focus on Qatar, Elk Hills and the Permian Basin.
Commitments at December 31, 2003, for major capital expenditures during
2004 and thereafter were approximately $201 million. Occidental will fund these
commitments and capital expenditures with cash from operations and, as needed,
with proceeds from existing credit facilities.
ANALYSIS OF FINANCIAL POSITION
The changes in the following components of Occidental's balance sheet are
discussed below:
SELECTED BALANCE SHEET COMPONENTS
In millions 2003 2002
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Cash and cash equivalents $ 683 $ 146
Trade receivables, net $ 804 $ 608
Income tax receivable $ 20 $ 150
Investments in unconsolidated subsidiaries $ 1,155 $ 1,056
Property, plant and equipment, net $ 14,005 $ 13,036
Current maturities of long-term debt and capital
lease liabilities $ 23 $ 206
Accounts payable $ 909 $ 785
Accrued liabilities $ 877 $ 914
Dividends payable $ 101 $ 193
Trust preferred securities - current $ 453 $ --
Trust preferred securities - non-current $ -- $ 455
Other deferred credits and liabilities $ 2,407 $ 2,228
Stockholders' equity $ 7,929 $ 6,318
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The higher balance in cash and cash equivalents at December 31, 2003,
compared to December 31, 2002, reflects the build-up of cash, part of which was
used to redeem $453 million of trust preferred securities in January 2004. The
higher balance in trade receivables at December 31, 2003, compared with December
31, 2002, reflects higher product prices and sales volumes during the fourth
quarter of 2003 versus 2002 in the oil and gas segment. The decrease in income
tax receivable was due to a 2002 tax receivable from the Equistar sale that was
received in 2003. The higher balance in investments in unconsolidated entities
primarily reflects a capital contribution to the Ecuador OCP pipeline
investment, additional purchases of Lyondell and Premcor stock and
mark-to-market increases in the available-for-sale Premcor investment. The
increase in the net balance in property, plant and equipment reflects capital
spending, the addition of the acquired Permian Basin assets and the
consolidation of the OxyMar property, plant and equipment as a result of the
adoption of Financial Accounting Standards Board (FASB) Interpretation No. (FIN)
46, partially offset by depreciation, depletion and amortization.
The decrease in current maturities of long-term debt is due to the fact
that a lower level of debt will mature in 2004. The increase in accounts payable
is due to higher payable balances in the oil and gas marketing and trading
operations. The decrease in accrued liabilities is due to lower mark-to-market