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
WACCMarket 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)
 WACCBook     8.46%    6.57%
Enterprise value
EVMarket 55,775 62,434 EV\,=\,Market\,\,Cap\,\,Equity\,+\,\,Long\,\,Term\,\,Debt\,-\,Cash
 EVBook    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.
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

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/FCFOPS

\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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