CrownRock Acquisition Synergies
Q: What are the synergies and production outlook for CrownRock?
A: Management is enthusiastic about the CrownRock assets, considering them among the best they've seen. " Despite some operational downtime and a softer production guide, they still aim to reach 170,000 barrels per day, though this may be delayed. " They see significant synergies in well costs, operational efficiencies, and water management that can improve performance and reduce costs. " Capital spending is expected to remain steady at around $950 million with 5 rigs. "

Debt Reduction and Asset Sales
Q: What's the progress on deleveraging and asset sales?
A: Management is confident in achieving their debt reduction target of $15 billion by the end of 2026 or early 2027. " They have a deep inventory of assets and are evaluating further divestitures but are not ready to discuss details. " They believe they can maximize value without compromising their ability to meet debt targets. "

Ecopetrol JV and CrownRock
Q: Why didn't Ecopetrol participate in CrownRock, and what's the impact?
A: Oxy initially wanted to acquire 100% of CrownRock but had an agreement allowing Ecopetrol to purchase up to 49% in the area. " They negotiated a 30% interest, but the deal was not approved by the Colombian government. " As a result, Oxy retains full ownership of CrownRock. If the JV were discontinued, interests would be divided 51% Oxy and 49% Ecopetrol. " The JV production is around 40,000 barrels per day net to Oxy. "

Capital Allocation and Share Buybacks
Q: What's the plan for capital allocation, including share buybacks and preferred stock?
A: Management states that capital allocation depends on the macro environment. " Acquisitions like CrownRock can deliver better value than share buybacks. " Once debt is reduced to $15 billion, they plan to resume share repurchases. " If they can buy enough shares back to trigger the $4 per share dividend threshold, they would also start buying back the preferred stock. "

STRATOS Project and Microsoft Deal
Q: What is the update on the STRATOS direct air capture project?
A: The STRATOS project is on track for start-up next summer, with 1,200 people currently on-site. " They recently signed a significant agreement with Microsoft, marking the largest carbon dioxide removal sale to date. " They are incorporating learnings to improve performance and reduce costs, and see future opportunities for cost reductions and operational synergies. "

2025 CapEx and Production Guidance
Q: What's the outlook for CapEx and production in 2025?
A: While it's early to provide specific numbers, management indicates that activity levels at CrownRock will remain the same next year. " They believe they can do more with less through operational efficiencies. " The company continues to evaluate capital allocation and development plans, aiming to optimize returns. "

Gulf of Mexico Activities
Q: What's the plan for Gulf of Mexico tiebacks and exploration?
A: Exploration activity will not be as aggressive due to the use of data analytics and AI to better understand subsurface complexities. " They have ongoing projects, including recent discoveries at Ocotillo and Tiberius, which can tie back to existing facilities. " They are also designing waterflood projects capable of commencing execution next year, potentially adding substantial low-cost reserves. "

Rockies Production Outlook
Q: How is the Rockies production and activity expected to progress?
A: The Rockies have contributed strongly, but activity will be lower in the second half as they rework development plans, especially in the Powder River Basin. " They anticipate steady activity in the DJ Basin and plan to present a competitive case for the Powder River Basin in 2025. "

Service Costs and CapEx Efficiency
Q: Are you seeing any softness in oilfield service costs?
A: The company is seeing improvements in capital efficiency and well costs, with a 10% reduction year-to-date in well costs. " Onshore U.S., they see deflation continuing, expecting over 10% reduction in drilling and completion costs between last summer and the end of this year. " They also note significant deflation in OCTG costs and improvements due to contractor efficiency and technologies. "

Midstream Business and Matterhorn Start-up
Q: What's the expectation for Matterhorn's start-up in the midstream business?
A: Management expects the Matterhorn project to start up mid- to late quarter, based on the last update they've received. "

Asset Sale Program and Lost Cash Flow
Q: What can you say about lost cash flow from asset sales?
A: Management cannot provide details yet because they have not made decisions on the next set of divestitures and are still evaluating them. "