OXYCHEM Market Analysis and Guidance
Quarterly Pre-Tax Income ($ MM)
MIDSTREAM & MARKETING
GUIDANCE RECONCILIATION
$200
$150
$100
$50
$0
$(50)
$(100)
$(150)
$(200)
■ 2Q23 Guide
2Q23 Actuals
3Q23 Guide
31
PHYSICAL MIDSTREAM BUSINESS
2Q23 income exceeded guidance due to lower
gas processing costs and gains on
investments. 3Q23 guidance lower due to
lower margin expectations
PERMIAN TO GULF COAST SHIPPING
3Q23 guidance lower due to annual FERC
transportation rate escalations and outlook for
MID-MEH spread
CRUDE EXPORTS FROM GULF COAST
2Q23 income below guidance due to timing of
cargo sales (offset in MTM). 3Q23 guidance
increase due to expected timing impacts of
cargo sales
ALL OTHER MARKETING
2Q23 income below guidance with 3Q23
guidance expected to reduce further due to
narrowing gas transportation spreads
Physical
Midstream
Business¹
Permian to
Gulf Coast
Shipping
(MID-MEH
Spread)²
Crude
Exports
from Gulf
Coast³
All Other
Marketing4
Oxy's Share
of WES
EBIT5
Total
Midstream &
Marketing
EBIT
.
NOTE: ALL GUIDANCE SHOWN REPRESENTS MIDPOINT; MARK-TO-MARKET TREATED AS AN ITEM AFFECTING COMPARABILITY AND IS EXCLUDED FROM MIDSTREAM GUIDANCE
AND ADJUSTED ACTUALS 1PHYSICAL MIDSTREAM BUSINESS IS PRIMARILY COMPRISED OF THE DOLPHIN PIPELINE, AL HOSN, PERMIAN EOR GAS PROCESSING PLANTS,
AND OLCV 2PERMIAN TO GULF COAST SHIPPING INCLUDES OXY'S CONTRACTED CAPACITY ON SEVERAL 3RD PARTY PIPELINES. CURRENT CAPACITY IS ~850 MBOD WITH
PRIMARY DESTINATIONS OF CORPUS CHRISTI AND HOUSTON 3CRUDE EXPORTS FROM THE GULF COAST INCLUDE TERMINAL FEES OF $50 MM PER QUARTER. OTHER
EARNINGS DRIVERS INCLUDE THE DELTA BETWEEN OUR REALIZED PRICE OF EXPORTED CRUDE COMPARED TO MEH PRICING LESS THE COST OF SHIPPING, AS WELL AS
CRUDE PRICE VOLATILITY AND TIMING IMPACTS 4ALL OTHER MARKETING INCLUDES GAS AND NGL MARKETING, THE TIMING IMPACTS OF DOMESTIC AND
INTERNATIONAL CRUDE, AND GAS & NGL DEFICIENCY PAYMENTS WITH 3RD PARTIES (EXCLUDING WES) IN THE ROCKIES 5WES EBIT GUIDANCE IS NOT A FORWARD
PROJECTION BY OXY OR BASED ON WES'S CORPORATE GUIDANCE BUT IS AN AVERAGE OF THE LAST FOUR PUBLICLY AVAILABLE QUARTERS
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