The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Leo Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst
: Guys, wanted to hear, it looks like your first quarter CapEx did come in quite a bit below expectations. And if you just annualize that number, it
looks like it's quite a bit below budget on the year. Just wanted to get a sense, what was driving the lower first quarter CapEx? And just wasn't sure
if maybe there were some costs or some expenditures that shifted from 1Q into other quarters? And kind of how you guys are feeling about this
$2.9 billion budget?
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MAY 11, 2021 / 5:00PM, OXY.N - Q1 2021 Occidental Petroleum Corp Earnings Call
Question: Leo Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst
: Okay. That's very clear.
Question: Leo Mariani - KeyBanc Capital Markets Inc., Research Division - Analyst
: Okay. That's very clear. And then just a question on the Midstream for the year. Obviously, a very strong first quarter. You guys enumerated some
of the reasons why in the press release and in the prepared comments. But just looking at your second quarter Midstream guide, obviously, you're
expecting a loss. When I look at it, it's not a big loss, kind of a small one. If I just add kind of the first quarter benefit, the second quarter loss, you're
expecting, let's call it, roughly breakeven.
When I look at your full year Midstream guidance, you're still expecting a very large loss, kind of implying significant loss in the second half of '21.
Can you kind of just explain a little bit the dynamic there in terms of what you might be expecting later this year?
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: Looking in Permian, I think one of your competitors talking about they're going to move more into the 3 miles wells. Just curious that in your plan,
is that something that you guys were trying to do or that you don't think is suitable for you?
And also, your talk about on the CO2 spotting in the unconventional side. So when we're looking at your prospect inventory, what percentage of
your inventory that you think is applicable in here? So that's the first question.
The second question is that at some point that you would bring down your debt and once you reach that mid-$20 billion range, what's the objective
for your Oman, Algeria and Gulf of Mexico operation? Is that still trying to just maintain the production relatively steady? Or are you trying to grow
over there?
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MAY 11, 2021 / 5:00PM, OXY.N - Q1 2021 Occidental Petroleum Corp Earnings Call
Question: Paul Cheng - Scotiabank Global Banking and Markets, Research Division - Analyst
: At least one of your competitors is talking about they are drilling the lateral length, that 3 miles or 15,000 feet well. So just curious that given your
position, is that something you guys found that is capital-efficient and productive for use to push for the 3 miles? Or that you don't think it's
applicable to you?
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