AGM 2021

May 6, 2021

Good morning, and welcome to the virtual webcast of the 2021 Annual Meeting of Shareholders of the Good morning, and welcome to the virtual webcast of the 2021 Annual Meeting of Shareholders of the Occidental Petroleum Corporation. We do not expect any technical difficulties today. However, in the event we lose audio or webcast connection, Office. I would now like to introduce Occidental's Vice President, Deputy General Counsel and Corporate Secretary, Nicole Clark, to begin the meeting. Good morning, everyone, and thank you for joining Occidental's 2021 Annual Meeting. During the webcast today, We may make certain projections or other forward looking statements within the meaning of federal securities laws. These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. Please refer to Occidental's 2020 Annual Report on Form 10 ks filed with the U. S. Securities and Exchange Commission and our subsequent SEC filings for additional information regarding risks and uncertainties that could cause such differences. With that, I'll turn the call over to Occidental's President and Chief Executive Officer, Vicki Hollub, to share a few opening remarks before we call the business meeting to order. Thank you, Nicole, and good morning, everyone. Thank you all for joining us. Health and safety are of paramount importance at Occidental and in light of the risk posed by COVID-nineteen pandemic to our shareholders and employees, we're holding a virtual annual meeting again this year. We hope that you find this format to be efficient and we appreciate the opportunity to engage with our shareholders. Looking back at 2020, we and the stakeholders and communities that we serve faced significant challenges. With the oversight of our board, the swift action taken by members of senior management and the dedication of our employees, We overcame the adversity presented and entered 2021 with an improved financial position. Our employees also continue to meet and expectations safely, which is help Occidental navigate the COVID-nineteen pandemic and severe weather events such as winter storm Yuri. As we adapted to the macroeconomic challenges of the past year, we remained focused on building a sustainable business. We recognize that climate change must be addressed and accordingly, we were the 1st U. S. Oil and gas company to announce a target to reach net 0 emissions associated with our operations before 2,040 and an ambition to achieve net zero emissions associated with the use of our products by 2,050. Occidental's 40 plus years of experience in enhanced oil recovery uniquely positions us to achieve our net zero ambitions and to provide solutions for others looking to do the same through large scale carbon capture, utilization and sequestration. Our Oxy Low Carbon Ventures team leverages this experience enhance existing carbon capture methods, develop new technologies and form partnerships to advance our low carbon strategy. We recently announced that we are beginning the front end engineering and design on our first direct air capture facility, which when fully built We'll capture 1,000,000 metric tons of carbon dioxide a year from the atmosphere and permanently sequester it underground. Earlier this year, we also sold our 1st cargo of net zero oil. Making net zero oil available to be refined into net zero products can be a significant near term solution for hard to decarbonize industries such as aviation and maritime transportation. Events of the past year also emphasized the importance of our commitment to providing a safe and inclusive workplace for all of our employees. Occidental unequivocally condemns hate and violence of all forms, including violence against women and minorities and racial bias against any community. To further our commitment to a culture of diversity, inclusion and belonging, we created a Diversity and Inclusion Advisory Board to centralize and oversee Occidental's diversity and inclusion efforts informed the Diversity and Inclusion Ambassador Committee to deploy diversity and inclusion initiatives throughout our company and to advocate for a collaborative and diverse vision. And I want to add that I'm proud of our employees as they're actively engaged in these important initiatives. I'll now turn it over to Steve Chazen, Chairman of the Board, to call the meeting to order. Thank you, Vicki, and good morning to everyone. On behalf of the Board, I'm pleased to welcome you to our 2021 Annual Meeting of Shareholders. The meeting is officially called to order. At this time, I'd like to introduce the other director nominees who are on the call with us today. In addition to Vicki, Andrew Gould, Carlos Butares, Gary Hsu, Bill Klessy, Andrew Langham, Jack Moore, Maggie Pauley Hernandez, Dick Piladian and Bob Shearer. Our independent auditor, KPMG is represented here today by partners Jeff Urban and John Also joining us is Natalie Hairston from the American Election Services, who will serve as the Inspector of Election for this meeting. As the Secretary of the meeting, Ms. Clark will now provide brief remarks on certain procedural matters related to today's meeting and review the matters to be voted on. Thank you, Steve. The format of today's meeting is outlined on the agenda, which is shown in the center of the meeting portal, And the rules of conduct may be accessed by clicking on the materials button at the bottom right corner of the meeting portal. These procedures are designed to ensure we have a fair and orderly meeting. Please note that this meeting is being recorded. However, no one attending via the webcast or by telephone is permitted to use any audio recording device. The polls were opened at 8 am Central Time. If you are a shareholder and you have not already voted or you wish to change your vote, you should have logged into the meeting using your control number, which will allow you to vote online during the meeting. Your control number may be found on your proxy card, voting instruction card or electronic notice to vote. You may vote by clicking on the voting button at the bottom right corner of the meeting portal. If you have already submitted your proxy card or voted by Internet or telephone, Your shares have been voted accordingly. You do not need to vote today unless you are voting for the first time or you wish to change your vote. The Board of Directors fixed March 12, 2021 as the record date for the determination of shareholders entitled to receive notice of and to vote at this meeting. We began delivering the notice of Internet availability of the proxy materials, the proxy statement and our annual report on Form 10 ks on March 26 to holders of record as of the record date. We have received an affidavit of mailing establishing that notice of this meeting was duly given. A copy of the materials described above and the affidavit of mailing will be incorporated into the minutes of this meeting. The oath of office of Natalie Hairston, our independent third party inspector of election, will also be included in the minutes. The proxy statement, our 2020 Annual Report and a list of shareholders entitled to vote at this meeting are available to shareholders electronically during the meeting. We have a preliminary report from the Inspector of Election that there are shareholders representing more than 80% of the outstanding shares of common stock of Occidental entitled to vote at this meeting present in person or by proxy. I therefore declare that a quorum is present and this meeting is duly convened for the purpose of transacting such business as may properly come before the meeting. Under the company's bylaws, the only matters properly before our shareholders today are those set forth in the notice of annual meeting and proxy statement. The bylaws also provide the procedures a shareholder must follow to nominate directors. This period in which shareholders can nominate directors at this meeting has passed. I will now review the matters to be voted on at today's meeting. The first proposal is the election of 11 directors to serve for a 1 year term ending at the 2022 annual meeting. But in any event, until his or her respective successor is elected and qualified unless ended earlier due to his or her death, resignation, disqualification or removal from office. The Board is nominating the following persons to serve as directors of the company: Steve Chazen, Andrew Gould, Carlos Gutierrez, Vicki Hollub, Gary Hugh, Bill Klessy, Andrew Langham, Jack Moore, Maggie Palau Hernandez, Dick Palladian and Bob Scherer. The biography of each director nominee is included in the proxy statement. The second proposal is the advisory vote to approve named executive officer compensation as described in the proxy statement. The 3rd proposal is the ratification of the selection of KPMG as Occidental's independent auditor for the fiscal year ending December 31, of 2021. Thanks, Nicole. For the reasons discussed in the proxy statement, The Board recommends a vote for each of the Director nominees and 4 proposals 23. We will now address any shareholder questions Relating to the proposals. We've received one question relating to the proposals. Why is the executive compensation vote non binding? This question relates to Proposal 2. Occidental has a say on pay policy, which is adopted in 2009 prior to the SEC releasing rules in 2011, Implementing certain provisions of the Dodd Frank Act. The rules require public companies to obtain non binding shareholder advisory votes regarding approval of executive compensation known as say on pay and how frequently shareholders will hold say on pay votes concerning the approval of the compensation of Occidental's named executive officers. Each time shareholders overwhelmingly supported A frequency of approving executive compensation each year. We believe that these votes, though non binding, are very important because they have fostered greater dialogue regarding executive compensation internally and with our investors and other stakeholders. Britney, do we have any other questions regarding the proposals? No, we do not. Thanks, Britney. That concludes the question and answer session regarding the proposals. Thank you, Nicole. I now declare the polls closed. Ms. Park, can you provide a preliminary report on the voting results? Thanks, Steve. We will reflect that the polls closed at 8:12 a. M. Central Time. The Inspector of Election reports on a preliminary basis The shareholders have approved the election of each of the 11 director nominees named in Proposal 1, and shareholders have approved Proposal 2 and ratified Proposal 3. The final voting results will become part of the 5 Proposal 3. The final voting results will become part of the record of the meeting and will be reported in a Form 8 Since there is no further formal business, the official business portion of the meeting is now adjourned. With that, I'll turn the call back to Nicole. Thanks, Steve. Before turning to more shareholder questions, I'd like to introduce Mark Van Ball from Follow This, So we engaged with on a proposal they submitted on behalf of 1 of our shareholders, Benta BV, regarding adoption of medium term Scope 3 emissions targets. After a series of constructive conversations underpinned by our shared vision of a low carbon world, We committed to announce a medium term net emission reduction target as part of our pathway to a 2,050 net zero ambition before our 2022 annual meeting. To allow ample time for further Q and A, we ask you, Mr. VanVall, Mr. VanVald, are you on the line? Hi. Unfortunately, we've lost the line of Marc Van Vahl at this time. I do apologize. I'm still around. I'm still Great. Yes. Mark, can you go ahead with your comments, please? Yes, please. Thank you very much for this opportunity to address you, Mr. Salat, other shareholders, esteemed members of the Board. The mission of all of this is that shareholders support all measures to drive the energy transition. We need big oil. Big oil can make or break the Paris Accord to limit global warming. Occidental stands apart from their U. S. Counterparts. Our company is only the only U. S. Oil major to take responsibility by 2,050. We believe that long term goals will not be met without interim targets. Therefore, we filed Climate resolutions at 4 U. S. Dollar majors, requesting emission reductions short, medium and long term. After a number of meaningful conversations With a large team of Occidental, this led to the commitment from Occidental to set a medium term target which we then withdrew. So we look forward to next week when shareholders will vote for emission reductions at your peers, Scientific consensus indicates that to reach the goal of the Paris Climate Agreement, emissions must fall by 25% to 45% within this decade. Occidental's mastery of enhanced oil recovery will allow them to take full advantage of carbon capture and storage. However, exclusive reliance on CCS will put Occidental in a precarious position. We therefore encourage the company not to place Olex in one basket, and we support Occidental to explore other emission reduction strategies such as a shift in investments towards renewables. We look forward to continuing our engagement with Occidental in the coming years. It is our hope that shareholders will be able to express their support Hello shareholders, let me conclude. This would not only save the world from devastating climate change, but also save your company from disruption by new technologies. Shareholders, Board members and the whole team of Accidental, I'd like to conclude with the final words of our climate resolutions. You have our support. Thank you for your attention. Thanks, Mark. We appreciate you joining us today and look forward to engaging with you and your team in the future. I'll hand the call over to Vicki for additional Q and A. Thank you, Nicole, and thank you, Mark. As Nicole mentioned, we've appreciated our engagements with you and other stakeholders on the global challenge of climate change, and we look forward to publicly announcing a medium term net reduction target as part of our pathway to 2,050 net zero ambition before next year's annual meeting. I will add though that we completely agree with you that the development of renewables is critically important for the world to achieve Our target of limiting global warming to 1.5 degrees. The part of the reason that we focused on carbon capture and sequestration is it's a gap that's not being And it's a gap that if it doesn't get filled, we have no way to get there. But recognizing Your recognition that the renewables are a key part of it, we do use renewables in our operations. We've installed a 16 megawatt we should continue to consider using renewables to power other parts of our operations too. And we're committed to with an investment in net power, which is a form of technology that generates electricity Actually no emission electricity, we'll be using that in the future as well. So, Mark, we want to continue the dialogue Because we think dialogue with you and others that have the same commitment that we do will enhance our ability to think outside the box and to Further expand our thoughts about how we can accomplish this. So thank you again. We'll now address shareholder questions that relate to matters other than the proposals. Brittany, do we have any additional questions? Yes. We received several questions regarding when the Board plans to increase the dividend. Can you speak to that? Yes, we announced yesterday that the Board declared a regularly quarterly dividend of $0.01 per share on common stock payable on July 15, 2021 to stockholders of record as of June 10. We understand that many shareholders would like us to increase the dividend in the near future. While we are encouraged by the improving macro environment, we'll continue to improve our balance sheet until we reach the point where our financial position will support a more meaningful return of to our common shareholders throughout the commodity cycle. The next question is, How will you prioritize the allocation of excess cash flow among debt reduction, share repurchases, Dividends and capital expenditures for production growth. Our focus is to maintain our production and reduce debt. In 2020, we refinanced approximately $7,000,000,000 of near term maturities and reduced our debt by approximately $2,400,000,000 As discussed earlier, after strengthening our balance sheet, we plan to prioritize returning additional capital to shareholders in the form of a sustainable dividend, as well as potentially allocating some capital to increasing production. Over the longer term, we intend to allocate excess cash to shares and retiring the preferred equity. Our cash flow priorities are structured with the aim of positioning our company for future success. We received several questions regarding the change in presidential administration, the continuing political and social attention on climate change And how both of those will affect our strategy and investment. Can you address that? Certainly. 1st and foremost, I'm proud of the unwavering commitment our employees to safety and the environment. This commitment is reflected in the way in which we have transparently engaged with regulators at all levels of government. We expect to continue to work cohesively with regulators in the Biden administration. We also welcome the opportunity to be collaborative to achieve our shared objectives, which has been key to reaching reasonable outcomes for Oxy and for the communities in which we operate. Our management and the Board understand that climate issues, Like other business concerns are dynamic and challenging. We're proud to be a part of the solution with our low carbon strategy. As discussed earlier, Oxylocarbon Ventures, our business unit dedicated to advancing cutting edge low carbon technology solutions, is working to create a marketplace for CO2 and low carbon fuels. OLCV has announced several key OLCV is exploring new initiatives with the goal of making our business more sustainable. As the solar plant that I mentioned earlier is our Goldsmith solar plant began operating in 2019 and immediately reduced our indirect Scope 2 greenhouse gas emissions for office. Yes. Our Board is committed to achieving a diverse membership, including in terms of gender, race and ethnicity as well as skill set and experience to meet Occidental's current and future needs and strategic priorities. We anticipate that enhancing diversity will be a key priority in future director additions. Our last question is, how is the company actively trying to incorporate diversity and inclusion initiatives? We continually strive to create a more collaborative and inclusive workplace. And as I discussed at the start of the meeting, we created a diversity and inclusion advisory board programs including sessions on inclusive leadership and unconscious bias and hope to introduce more programs that are responsive to employee feedback. That concludes the question and answer session relating to non proposal matters. On behalf of the Board and senior management, Thank you for your continued support and ownership of Occidental. Ladies and gentlemen,