OXYCHEM Market Analysis and Guidance slide image

OXYCHEM Market Analysis and Guidance

DJ BASIN - WELL DESIGN CHANGES DRIVING CAPITAL EFFICIENCY 24 Subsurface Design Niobrara Benches Codell Niobrara Benches Codell Previous 18 WPS Niobrara: 27 bpf/800 ppf Codell: 18 bpf/550 ppf Enhanced 8-12 WPS Execution Driving Innovation and Efficiency • • Oxy's ingenuity in well design and execution enabling the development of unique locations in a cost-effective manner Set new drilling cycle time records in all lateral length categories 2Q23 including 32% improvement in ft/d Highest pumping hours in June for two major frac providers' fleets across all basins Production uptime increase of 10% relative to 2019 due to: о Optimized artificial-lift timing Niobrara: 40 bpf/1,500 ppf Codell: 35 bpf/1,100 ppf о Gas lift utilization о о Full bulk-and-test facility design • Optimized spacing, landings, and right-sized completions to improve productivity and limit interference Development designs optimized with machine learning and Oxy's proprietary workflows Al-driven plunger lift optimization Electric, CNG, and battery (BESS) powered rig utilization and capability driving down emissions intensity Performance Development Optimization • • Cumulative bo/ft Smaller surface impacts and accelerated time-to-market Resilient economics at lower commodity prices Developing the same reserves for 20% less capital 20 15 10 5 Enhanced Design Previous Design 0 0 4 8 12 Months 16 20 24 OXY NOTE: WELLS PER SECTION (WPS); BARRELS PER FOOT (BPF); POUNDS PER FOOT (PPF); COMPRESSED NATURAL GAS (CNG); BATTERY ENERGY STORAGE SYSTEM (BESS)
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