Occidental Petroleum Corp. (OXY)

Free Cash Flow to The Firm (FCFF)

Occidental Petroleum Corp., FCFF calculation

USD $ in millions

12 months ended	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Net income attributable to common stock	4,598	6,771	4,530	2,915	6,857
Net income attributable to noncontrolling interest	–	–	72	51	116
Net noncash charges	7,501	5,195	4,032	4,067	3,760
Changes in operating assets and liabilities	(751)	340	505	(1,177)	(104)
Net cash provided by operating activities	11,348	12,306	9,139	5,856	10,629
Interest paid, net of tax	113	194	97	99	50
Capital expenditures	(10,226)	(7,518)	(3,940)	(3,581)	(4,664)
Free cash flow to the firm (FCFF)	1,235	4,982	5,296	2,374	6,015

Item	Description	The company
FCFF	Free cash flow to the firm is the cash flow available to the Occidental Petroleum Corp.'s suppliers of capital after all operating expenses have been paid and necessary investments in working and fixed capital have been made.	Occidental Petroleum Corp.'s FCFF declined from 2010 to 2011 and from 2011 to 2012.

Occidental Petroleum Corp., current EV/FCFF

	Occidental Petroleum Corp.	Oil & Gas
Selected Financial Data (USD $ in millions)
Enterprise value (EV)	81,024
Free cash flow to the firm (FCFF)	1,235
Ratio
EV/FCFF	65.59	48.91

If company EV/FCFF is lower then the EV/FCFF of benchmark then company is relatively undervalued.

Otherwise, if company EV/FCFF is higher then the EV/FCFF of benchmark then company is relatively overvalued.

Occidental Petroleum Corp., EV/FCFF calculation

	Dec 31, 2012	Dec 31, 2011	Dec 31, 2010	Dec 31, 2009	Dec 31, 2008
Selected Financial Data (USD $ in millions)
Enterprise value (EV)¹	71,938	86,983	85,249	65,813	41,891
Free cash flow to the firm (FCFF)²	1,235	4,982	5,296	2,374	6,015
EV/FCFF, Comparison to Industry
Occidental Petroleum Corp.³	58.24	17.46	16.10	27.72	6.96
Industry, Oil & Gas	47.30	25.17	32.73	115.30	15.01

2012 Calculations

³ EV/FCFF = EV ÷ FCFF
= 71,938 ÷ 1,235 = 58.24

Ratio	Description	The company
EV/FCFF	Enterprise value to free cash flow to the firm is whole company valuation indicator.	Occidental Petroleum Corp.'s EV/FCFF ratio increased from 2010 to 2011 and from 2011 to 2012.