Occidental Petroleum Corp.

Analyst Listing

The following analysts provide coverage for the subject firm as of May 2016:

Broker	Analyst	Analyst Email
Atlantic Equities	Barry MacCarthy	b.maccarthy@atlantic-equities.com
Cowen & Company	Charles Robertson	charles.robertson@cowen.com
Evercore ISI	Douglas Terreson	doug.terreson@evercoreisi.com
Credit Suisse	Edward Westlake	edward.westlake@credit-suisse.com
IBERIA Capital Partners	Eric Fox	eric.fox@iberiabank.com
Piper Jaffray	Guy Baber	roger.read@wellsfargo.com
Jefferies	Jason Gammel	jason.gammel@jefferies.com
Tudor Pickering Holt & Co.	Matthew Portillo	mportillo@tphco.com
Wolfe Research	Paul Sankey	psankey@wolferesearch.com
Raymond James	Pavel Molchanov	pavel.molchanov@raymondjames.com
Scotia Howard Weil	Peter Kissel	peter.kissel@scotiabank.com
BMO Capital Markets	Phillip Jungwirth	phillip.jungwirth@bmo.com
Capital One Securities	Richard Tullis	richard.tullis@capitalone.com
GMP Securities	Robert Bakanauskas	bbakan@gmpsecurities.com
Wells Fargo Securities	Roger D. Read	roger.read@wellsfargo.com
Deutsche Bank Research	Ryan Todd	ryan.todd@db.com
CRT Capital Group	Tim Rezvan	trezvan@sterneageecrt.com

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Primary Input Data

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Derived Input Data

Derived Input	Label	2015 Value	2016 Value	Equational Form
Net Operating Profit Less Adjusted Taxes	NOPLAT	452	(877)	$NOPLAT\, =\, EBIT\, x\, (1 \,-\, Avg \,\,Tax\,\, Rate\,\, on\,\, EBIT)$
Free Cash Flow	FCF	(1,921)	666	$FCF\,=NOPLAT\,+\,Non-Cash\,Expenses-\Delta NWC\,-\,NCS$
Tax Shield	TS	21	116	$TS\,=\,Interest\,\,Paid\,\,x\,\, Avg \,\,Tax\,\,Rate\,\, on\,\, Pre-Tax\,\, Income$
Invested Capital	IC	36,595	36,747	$IC\,=\,Fixed\,\,Operating\,\,Assets\,\,+\,\,Net\,\, Working\,\, Capital$
Return on Invested Capital	ROIC	1.24%	-2.39%	$ROIC\,=\,\frac { NOPLAT }{ IC }$
Net Investment	NetInv	(6,866)	4,453	$NetInv\,=\,{ {IC}_{1}}-{{IC}_{0}}+Depreciation$
Investment Rate	IR	-1,517.68%	-507.64%	$IR\,=\,\frac {NetInv}{NOPLAT}$
Weighted Average Cost of Capital	WACC_Market	0.80%	3.18%	$WACC\,=\,\frac { E }{ V } { R }_{ E }\,+\,\frac { P }{ V } { R }_{ P }\,+\,\frac { D }{ V } { R }_{ D }\left( 1- Avg\,\, Tax\,\,Rate\,\,on\,\,Pre-Tax\,\,Income \right)$
Weighted Average Cost of Capital	WACC_Book	8.46%	6.57%
Enterprise value	EV_Market	55,775	62,434	$EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash$
Enterprise value	EV_Book	56,282	62,023
Long-Run Growth	g = IR x ROIC	-18.76%	12.12%	Long-run growth rates of the income variable are used in the Continuing Value portion of the valuation models.
Long-Run Growth	g = % $\Delta$ GDP	2.50%	2.50%
Margin from Operations	M	5.48%	-10.22%	$M\,\,=\,\,\frac{EBIT}{SALES}$
Depreciation/Amortization Rate	D	86.74%	131.57%	$D\,\,=\,\,\frac{D+A}{EBITDA}$

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Valuation Multiple Outcomes

The outcomes presented in this study are the result of original input data, derived data, and synthesized inputs.

Equational Form	Observed Value		Single-stage multiple g solution		Two-stage valuation model g solution
Equational Form	12/31/2015	12/31/2016	12/31/2015	12/31/2016	12/31/2015	12/31/2016
EV/SALES $\frac {EV}{Sales} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(M)$	4.39	6.19	-.02%	11.13%	5.86%	10.06%
EV/EBITDA $\frac {EV}{EBITDA} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)\,(1\,-\,D)$	10.62	19.10	-.02%	11.13%	5.86%	10.06%
EV/NOPLAT $\frac {EV}{NOPLAT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}$	123.29	-71.17	-.02%	11.13%	5.86%	10.06%
EV/FCF_OPS $\frac {EV}{FCF_{OPS}} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	-29.03	93.75	-.02%	11.13%	5.86%	10.06%
EV/EBIT $\frac {EV}{EBIT} \,= \,\frac{ROIC\, -\, g}{ROIC\,(WACC\,-\,g)}\,(1\,-\,T)$	80.14	-60.50	-.02%	11.13%	5.86%	10.06%
EV/IC $\frac {EV}{IC} \,= \,\frac{ROIC\, -\, g}{WACC\,-\,g}$	1.52	1.70	-.02%	11.13%	5.86%	10.06%

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