Occidental Petroleum Corporation: Capture the Moment on CO₂ EOR Potential

We see an increasingly favorable set-up for CO₂ EOR, supported by shale maturation, better recovery technology and growing captured CO₂ supply. Our visit to Occidental Petroleum's Midland Enhanced Oil Recovery operations reinforced both the scale of the opportunity and the company's differentiated position to capture it. After decades building CO₂ supply, infrastructure and operating know-how in mature conventional fields, OXY is now applying that platform to shale. Conventional EOR is moving from decline management toward growth, while unconventional EOR could create another development cycle from assets OXY already owns, with more than 2 BBoe of resource potentially converting into a new organic inventory class. Our 60-well base case generates roughly 35% after-tax IRR and about $72MM PV-10 at $65 WTI, comfortably within management's 30-40%+ framework, and already assumes the first EOR cycle peaks about 45% below the well's original IP. At $70 WTI, we estimate roughly 30 unconvention