Occidental Petroleum Corporation (OXY) Q4 2022 Earnings Call Transcript

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Occidental Petroleum Corporation (NYSE:OXY) Q4 2022 Results Conference Call February 28, 2022 1:00 PM ET

Company Participants

Neil Backhouse - VP, IR

Vicki Hollub - President, CEO

Robert Peterson - SVP, CFO

Richard Jackson - President, Operations, U.S. Onshore Resources & Carbon Management

Conference Call Participants

Raphaël DuBois - Societe Generale

Roger Read - Wells Fargo

David Deckelbaum - Cowen

Jeanine Wai - Barclays

Matt Portillo - TPH

Doug Leggate - Bank of America

Paul Cheng - Scotiabank

John Royall - JP Morgan


Good afternoon, and invited to Occidental's Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, today's arena is being recorded.

I would now for illustration to move nan convention complete to Neil Backhouse, Vice President of Investor Relations. Please spell ahead.

Neil Backhouse

Thank you, Rocco. Good afternoon, everyone, and convey you for participating successful Occidental's Fourth Quarter 2022 Conference Call. On nan telephone pinch america coming are Vicki Hollub, President and Chief Executive Officer; Rob Peterson, Senior Vice President and Chief Financial Officer; and Richard Jackson, President, Operations, U.S. Onshore Resources and Carbon Management.

This afternoon, we will mention to slides disposable connected nan Investors conception of our website. The position includes a cautionary connection connected Slide 2 regarding forward-looking statements that will beryllium made connected nan telephone this afternoon. We'll besides reference a fewer non-GAAP financial measures today. Reconciliations to nan nearest corresponding GAAP measurement tin beryllium recovered successful nan schedules to our net merchandise and connected our website.

I'll now move nan telephone complete to Vicki. Vicki, please spell ahead.

Vicki Hollub

Thank you, Neil, and bully afternoon, everyone. On today's call, I'll statesman pinch highlights of our 2022 achievements, including an lipid and state update followed by our 4th fourth performance. Next, I'll talk our 2023 rate travel priorities, our enhanced shareholder return model and our 2023 superior plan. Rob will then supply an update connected nan position and mechanics of Oxy's preferred equity redemption earlier reviewing our 4th fourth financial results and 2023 guidance.

In 2022, our grounds nett income of $12.5 billion, generated a return connected superior employed of 28%, which is nan highest return we person achieved since earlier 2005. We besides delivered grounds free rate travel earlier moving superior of $13.6 billion, which enabled america to discontinue much than $10.5 cardinal of indebtedness and to repurchase $3 cardinal of communal shares. Our return connected superior employed was enhanced by exceptional capacity arsenic our squad group aggregate operational and productivity records crossed our U.S. onshore, Gulf of Mexico and International businesses. OxyChem generated grounds net successful our Midstream business approximated guidance.

Also successful 2022, our high-return Permian accumulation grew by 90,000 BOE per day, propelled by outstanding good results. We delivered our champion twelvemonth ever successful Delaware caller good productivity, 2022, nan seventh twelvemonth successful a statement that we were capable to summation our mean good productivity, arsenic shown successful our presentation's appendix connected Slide 29. Our teams accomplished this by applying our proprietary work modeling and completion designs to our high-quality reservoirs.

Well performance, on pinch our Oxy drilling dynamics and logistics efficiencies, enabled america to execute reserves replacement ratio driven by our superior programs of complete 140% astatine a costs of $6.50 per BOE, which was little than half of our existent DD&A per barrel. With value revisions included, nan full reserves replacement ratio was 172%, which accrued our year-end 2022 reserves to astir 3.8 cardinal BOE.

Except for nan years of nan value illness successful 2015 successful nan pandemic successful 2020, we person replaced much than 100% of our accumulation for astatine slightest nan past 20 years. With nan extent and value of our shale good inventory and 2 cardinal barrels of remaining imaginable successful our Permian enhanced lipid betterment business, we person nan standard to proceed our history of reserves replacement.

A heavy inventory, on pinch our unsocial portfolio of short-cycle, high-return unconventional assets paired pinch debased diminution accepted assets, OxyChem and our Midstream businesses, we person nan capacity for semipermanent sustainability and nan elasticity to allocate superior to maximize returns for our shareholders. In 2022, we besides made important advancement successful processing nan capabilities and assets needed to unafraid a low-carbon future, which is nan different cardinal to our sustainability.

We started tract mentation connected our first nonstop aerial seizure works and executed respective breathtaking agreements to waste c dioxide removal credits to prospective purchasers and manufacture -- divers manufacture sectors. We besides secured complete 4th cardinal acres of onshore aliases astir 400 quadrate miles to create c sequestration hubs. The 4th fourth of 2022 was a fitting measurement to wrap up a twelvemonth of continued operational and financial success. We generated complete $2.6 cardinal of free rate flow, which supported astir $1.6 cardinal of equilibrium expanse improvements.

We besides repurchased $562 cardinal of communal shares successful nan quarter, completing our 2022 stock repurchase program. In our business segments, Oil & Gas approximated nan midpoint of guidance, contempt wintertime large wind Elias impact. Outperformance from nan Gulf of Mexico and Al Hosn partially offset large wind impacts knowledgeable successful nan Permian and Rockies. OxyChem exceeded guidance, driven by stronger-than-expected marketplace dynamics, while Midstream and trading net were wrong guidance.

In December, Oxy participated successful nan recapitalization of NET Power. This is simply a exertion that generates emission-free powerfulness procreation and has nan imaginable to accelerate emissions simplification efforts successful our existing operations and to proviso energy to our nonstop aerial seizure plants and sequestration hubs. Ultimately, NET Power could beryllium an important emission-free powerfulness generator anyplace that has entree to earthy gas.

Among nan grounds group successful 2022 were lateral lengths successful nan Delaware Basin, DJ Basin, Oman and astir notably successful nan Midland Basin wherever our good Lulu 3641 DP exceeded 18,000 feet to go our longest lateral connected record. Remarkably, this good was drilled successful somewhat complete 12 days. Milestones for illustration this showcase our team's attraction connected safely and efficiently expanding nan boundaries of drilling technology. Our teams besides achieved an Oxy Delaware Basin grounds for wedge productivity, averaging a 30-day first accumulation complaint of complete 3,000 BOE per time from each wells that came online successful 2022.

We judge that 2 of our wells successful nan First Bone Spring successful New Mexico and 6 of our wells successful nan Barnett statement of nan Midland Basin achieved first 30-day accumulation records amongst each operators successful their respective formations. In addition, we are continuing to consolidate acreage via waste and acquisition that alteration much capital-efficient, longer laterals, which thief to optimize nan required infrastructure. The longer laterals, exceptional good productivity and optimized infrastructure, partially offset ostentation impacts successful 2022, and we expect akin benefits arsenic we advancement done 2023.

After highlighting 2 of our Gulf of Mexico assets, Horn Mountain and Caesar-Tonga connected erstwhile net calls, I'm pleased to denote different Oxy accumulation grounds successful our offshore operations. Our Lucius level surpassed 150 cardinal BOE of gross accumulation successful little than 8 years from first oil, becoming nan fastest Oxy developed Gulf of Mexico level to scope this milestone.

Internationally, we, on pinch our partner, ADNOC, achieved grounds quarterly accumulation astatine Al Hosn pinch 85,500 BOE per time nett to Oxy. The Al Hosn description task is progressing good and remains connected way for mid-2023 completion. We expect Oxy's Al Hosn nett accumulation to yet scope astir 94,000 BOE per day. We are pleased pinch nan full worth we've created for shareholders successful 2022, including nan indebtedness simplification of $10.5 cardinal and nan $3 cardinal of stock repurchases, on pinch a successful superior programme of $4.5 billion.

With our indebtedness from outstanding bonds down to little than $18 cardinal and accordant pinch our shareholder framework, we will displacement our attraction to stock repurchases, dividend maturation and a superior programme that further strengthens our sustainability. Over nan agelong term, we intend to repay maturities and opportunistically discontinue indebtedness to further trim our costs building and fortify our equilibrium sheet.

In early years, we will activity to turn our rate travel and net to support increases of our dividend and nan continuation of our stock repurchase program. While we do intend to turn nan absolute worth of nan company, arsenic portion of our worth proposition, we besides want to summation worth per stock for our shareholders done dividend maturation and nan simplification of outstanding shares.

Accordingly, our Board of Directors authorized an complete 38% summation successful our communal dividend and a caller $3 cardinal stock repurchase authorization, which will trigger a redemption of a information of nan preferred equity. Future rate and net maturation opportunities could travel from our shale and accepted lipid & state assets arsenic good arsenic our chemicals business and ultimately, our Low Carbon ventures business.

Turning now to 2023. Our business scheme is designed to maximize return connected superior and return of superior to our shareholders while besides strengthening our early sustainability by prioritizing asset-enhancing investments to support nan resilience of Oxy's early rate flows. These investments see $500 cardinal for debased diminution mid-cycle projects, including nan antecedently announced modernization and description of OxyChem's Battleground chlor-alkali works and a caller OxyChem works enhancement on pinch Permian EOR successful nan gulf of Mexico.

Of nan $500 cardinal that I conscionable mentioned, we scheme to walk $350 cardinal connected OxyChem projects, which upon completion, we expect will make a mixed yearly EBITDA of $300 cardinal to $400 million. We expect nan Battleground task to beryllium online successful early 2026. The different OxyChem works enhancement will present higher accumulation volumes, enhanced operational ratio and improved logistics costs. We look guardant to providing much item astir this task connected a early call.

The remainder of nan $500 cardinal will beryllium spent successful EOR successful nan Gulf of Mexico. EOR remains a halfway constituent of Oxy's plus portfolio and will beryllium basal for our early strategy, truthful we are gladsome to return to sustaining superior finance level this year. In nan Gulf of Mexico, infrastructure projects, including subsea pumping initiatives to summation nan tieback radius and productivity of nan existing platforms, will thrust higher superior spending compared to caller years.

We're besides focused connected our high-return short-cycle businesses. I returned to a 2-rig programme successful nan DJ Basin precocious past twelvemonth requires further finance but should statesman to mean accumulation diminution by nan mediate of 2023. In our Permian unconventional business, we intend to tally an activity programme akin to nan 2nd half of past year. Our Permian unconventional assets are champion placed to present accumulation maturation to offset marginal declines elsewhere successful our portfolio.

Overall, 2023 Permian unconventional superior is expected to diminution somewhat from 2022 owed to nan first superior inflow from nan Delaware Basin JV. We expect that ostentation will proceed to beryllium a situation for our manufacture this year. In 2023, we expect astir 15% ostentation effect connected our home Oil & Gas business compared to 2022. As always, we will proceed our efforts to trim and offset ostentation by leveraging our proviso concatenation competencies and focusing connected continued superior efficiency.

Another important facet of sustainability is nan c strength of our operations and what we're doing to reside it. We attraction connected reducing emissions each time arsenic we advancement our pathway to nett zero. And we've made important advancement complete nan past fewer years. Since 2020, our emissions reductions projects person focused connected capturing methane and reducing venting and flaring. These projects resulted successful a 33% alteration successful our estimated company-wide methane emissions from 2020 to 2021 and a 24% alteration successful methane emissions strength of our marketed state production.

We were nan first U.S. lipid & state institution to endorse nan World Bank's Zero regular Flaring by 2030 initiative, and I'm pleased to denote that our U.S. Oil & Gas operations achieved Zero Routine Flaring 8 years up of that target. That was a awesome achievement. Our world operations person implemented projects to importantly trim regular flaring, and we're connected way to meet nan World Bank's target good up of 2030.

In 2023, we besides intend to put successful respective unsocial and compelling Low Carbon business opportunities to beforehand our nett zero pathway. Ongoing building of our nonstop aerial seizure installation successful nan Permian and nan improvement of our ample Gulf Coast sequestration hubs, including Pore abstraction certification, will beryllium among our expected investments. We expect that our first nonstop aerial capture, aliases DAC, works will complete commissioning and statesman to seizure c successful precocious 2024 and beryllium commercially operational successful mid-2025.

This timing is simply a fewer months later than our original target. As we navigate nan existent proviso concatenation situation and attraction connected building sequencing to support faster optimization and nan exertion of caller technologies and innovation. Our 2023 superior finance successful these Low Carbon businesses is expected to full $200 cardinal to $600 million, taxable to third-party backing optionality for nan DAC and nan timing of projects.

We mentioned connected our anterior telephone that our nett zero ambitions will our backing extracurricular of Oxy's humanities superior allocation program. However, we are prepared to money our first stack ourselves if utilizing our superior preserves nan astir worth for our shareholders. Our superior scheme includes investments successful our c sequestration business, some done nan improvement of nan Gulf Coast hubs we antecedently announced and done drilling appraisal wells.

Investments successful different projects that trim Oxy Scope 1 and 2 emissions will besides continue. As portion of our strategy to create Gulf Coast sequestration hubs, we're pleased to denote that we will beryllium moving pinch power transportation low-carbon improvement to build a pipeline web from constituent root emitters successful nan area done our Magnolia sequestration tract successful Allen Parish, Louisiana. This pipeline will support our constituent root c seizure and sequestration business, which we intend to create on pinch our DACs, to thief medium- and semipermanent greenhouse state emanation simplification goals for Oxy and our customers.

Before turning it complete to Rob, I want to reiterate that our 2023 superior scheme focuses connected projects that champion position Oxy for semipermanent success. As successful past years, we retained a precocious grade of flexibility, which allows america to accommodate to commodity value fluctuations and trim spending if necessary.

Now I'll move nan telephone complete to Rob.

Robert Peterson

Thank you, Vicki, and bully afternoon, everyone. Last year, we repaid complete $10.5 cardinal of indebtedness and retired each remaining liking complaint swaps, breaking connected our equilibrium expanse and improving our in installments metrics arsenic we activity to regain investment-grade ratings. The completion of our $3 cardinal stock repurchase programme moved america person to returning complete $4 per stock to our communal shareholders, which will statesman to trigger a redemption of nan preferred equity.

Our fasting improved financial position, moreover compared to 1 twelvemonth ago, enables america to statesman allocating a greater proportionality of excess free rate travel to our shareholders successful 2023. Today, I'll statesman by explaining wherever we are successful position of partially redeeming nan preferred equity, I'll past item our redemption mechanics successful a script wherever nan $4 trigger is met.

The mandatory redemption of deferred equity is triggered pinch a rolling 12-month communal shareholder distribution, which a cumulative $4 per share. This trigger is evaluated regular based connected shares outstanding connected nan time superior has returned. As of today, we person distributed $3.70 per stock further $0.22 per stock is required to scope nan $4 trigger. In our presentation, we person included an schematic illustration of a $100 cardinal distribution to communal shareholders aft nan $4 stock trigger is reached.

In conjunction pinch nan communal distribution, a $100 cardinal mandatory matching distribution versus a half that will beryllium made, of which $91 cardinal will redeem preferred equity main pinch a $9 cardinal aliases 10% premium. In this example, Oxy would incur a $200 cardinal full rate outlay. This process of mandatory redemption repeats arsenic agelong arsenic nan trailing -- or, stock trailing 12-month distribution to communal shareholders is greater than $4. There is nary limit to exceeding nan $4 per stock trigger done further distribution to communal shareholders.

Consequently, moreover if nan trailing 12-month distribution decline, further distribution to communal shareholders will still trigger partial preferred equity redemption. We expect our refreshed stock repurchase programme to harvester pinch our $0.18 per stock quarterly dividend to alteration america to transcend nan $4 per stock trigger to statesman redeeming nan preferred equity. While nan magnitude and gait of nan partial preferred redemption and resulting endeavor worth balancing will yet driven by commodity prices, we expect our shareholders to use successful a akin measurement to nan worth created successful 2022 done indebtedness reduction.

I'll now move to our 4th fourth results. We posted an adjusted profit of $1.61 per diluted stock and a reported profit of $1.74 per diluted share. Difference betwixt adjusted and reported profit was already driven by a noncash taxation use related to caller statement of ineligible entities. As Vicki mentioned, our Board precocious authorized a caller $3 cardinal stock repurchase programme pursuing nan repurchase of astir 47.7 cardinal shares past twelvemonth for a weighted mean costs of beneath $63 per share.

We exited nan 4th to astir $1 cardinal of unrestricted rate aft paying $1.1 cardinal of indebtedness and retiring $450 cardinal successful notional liking complaint swaps. For nan year, we completed complete $10.5 cardinal of indebtedness repayment, which eliminated 37% of outstanding main and resulted successful a sizable simplification successful liking complaint -- liking burden. We estimate that nan equilibrium expanse improvements executing successful 2022 will trim liking and financing costs by complete $400 cardinal per year.

Our proactive indebtedness simplification efforts leveled nan company's floor plan of early maturities and truthful that we now -- truthful we person little than $2 cardinal of indebtedness maturing successful immoderate azygous twelvemonth for nan remainder of this decade. Going forward, we intend to repay indebtedness arsenic it matures and whitethorn besides trim indebtedness opportunistically. We repaid astir $22 cardinal successful January and do not person further maturities until nan 3rd 4th of 2024, providing america pinch a clear runway to attraction connected returning rate to shareholders and partially redeeming nan preferred.

In nan 4th quarter, we generated astir $2.6 cardinal of free rate flow, moreover pinch ostentation continuing to unit costs and superior spending. Domestic operating expenses were higher than expected, chiefly owed to nan effect of wintertime large wind Elliott, instrumentality upgrades and level life hold activity successful nan Gulf of Mexico and inflation. Overhead accrued arsenic a consequence of higher accruals related to compensation and yearly biology remediation.

Capital spending successful nan 4th was higher than expected owed to inflationary impacts, investments successful charismatic OBO projects, scheduled changes starring to activity successful higher moving areas and rig starts for our Delaware JV. We further improved our liquidity position erstwhile Oxy became nan first institution ever to securitize offshore lipid & state receivables and an amendment to summation our accounts receivable installation by 50% to $600 million.

In 2022, we paid U.S. national rate taxes of astir $940 million, successful statement pinch our erstwhile estimate. As we move into 2023, we expect to person afloat U.S. national rate payer arsenic we've utilized each our NOLs and U.S. wide business carryforward credits. We expect our afloat twelvemonth accumulation to mean 1.18 cardinal BOE per time successful 2023. As it was nan lawsuit past year, accumulation successful nan first 4th is expected to beryllium little than nan preceding 4th owed to scheduled attraction turnarounds, chiefly successful our world operations.

We'll person less wells travel online successful our U.S. onshore business successful nan 4th quarter, pinch only astir 15% of our Permian wells and 6% of our Rocky wells for nan twelvemonth turning complete to production. That said, our wide accumulation trajectory is expected to beryllium smoother successful 2023 than nan anterior year. Throughout 2022, we worked pinch Colorado regulators and section communities to successfully navigate nan permitting process. Our activity positioned america to adhd backmost 2 rigs successful nan DJ by nan extremity of 2022. Given nan reduced activity levels complete nan past fewer years, our Rockies accumulation is apt to beryllium little successful 2023 past year. Production is expected to stabilize successful nan 2nd half of 2023 erstwhile nan benefits from nan further rig picked up successful nan 4th fourth of past twelvemonth afloat materialize.

rules successful Colorado typically lead to a pad improvement attack pinch a linear clip to marketplace rhythm arsenic compared to simultaneous operations successful different shale plays. This operating situation creates negligible further costs for our development, but this twelvemonth is expected to person a noticeable effect connected clip to marketplace arsenic our activity ramps up. The DJ Basin remains an exceptionally precocious return plus for Oxy, and we invited nan return of sustaining superior levels to that business, which was predicated by nan regulatory certainty and permitting ratio we are now experiencing successful Colorado.

The accumulation sharing statement we announced past twelvemonth pinch Algeria is expected to return effect successful March. Once nan statement is successful place, nett barrels to Oxy will alteration by astir 15,000 BOE per day, which is reflected successful our 2023 guidance. We do not expect a worldly alteration successful operating rate travel because nan taxation complaint were besides reset nether nan caller PSC Operating costs crossed our Oil & Gas business are expected to approximate nan 2nd half of 2022 arsenic inflationary pressures stay successful our lower-cost DJ Basin accumulation declines.

In nan Gulf of Mexico, attraction activity to further trim scheme clip -- planned downtime and widen level lives will effect operating costs. We are besides expanding EOR downhole attraction activity and CO2 purchases. On a BOE basis, operating costs whitethorn summation internationally owed to little reported barrels of nan caller Algeria contract. 2022 was an exceptional twelvemonth for OxyChem arsenic nan business exceeded $2.5 cardinal successful income. We expect 2023 to beryllium different beardown twelvemonth by humanities standards, that is improbable to lucifer 2022.

Caustic soda prices reached all-time highs successful nan 4th fourth of 2022, but we are now making downward pricing pressures arsenic nan macroeconomic situation remains uncertain. PVC pricing fell sharply successful nan 2nd half of 2022, but has begun to stabilize. As I've mentioned before, OxyChem's integration crossed aggregate chlorine derivatives enables america to optimize our accumulation operation to what nan marketplace demands. We stay optimistic astir nan business, and our superior investments will further fortify our margins and competitory position.

Looking guardant to nan remainder of 2023 and beyond, we stay dedicated to extending nan occurrence of 2022 and advancing our enhanced return framework. I will now move nan telephone backmost complete to Vicki.

Vicki Hollub

We're now fresh to return your questions.

Question-and-Answer Session


[Operator Instructions] And today's first mobility comes from Raphaël DuBois pinch Societe Generale.

Raphaël DuBois

The first 1 is astir nan DAC 1 timing, which seems to person slipped a small spot pinch operating position now to beryllium reached mid-2025 alternatively of extremity 2024. And I was wondering if we should see that it's -- it intends that different DACs, nan ones that travel could besides beryllium delayed. That will beryllium my first question, please.

Vicki Hollub

No, we don't expect delays successful nan different DACs. The hold came because of nan proviso business that we're experiencing today. We expect that since those are further out, we'll person much clip to hole and to reside immoderate of nan proviso concatenation challenges that we person today. So we don't expect nan schedule to change.

Raphaël DuBois

Great. And my follow-up is connected nan $200 cardinal to $600 cardinal CapEx for nan Low Carbon. Can you possibly thief america amended understand why is dedicated for that one? And what is near for different projects?

Vicki Hollub

We haven't surgery retired nan -- that $200 cardinal to $600 cardinal astatine this point. Richard, do you person anything?

Richard Jackson

Yes. I was conscionable going to add, I mean, to benignant of thief springiness you immoderate colour connected nan program. I mean, certainly, immoderate of that is allocated arsenic we started building for DAC 1 this twelvemonth and evidently proceed connected nan adjacent mates of years pinch our building pace. We do proceed to create our CCUS hubs astir nan Gulf Coast that we've antecedently disclosed, and we announced pinch nan Midstream business today.

And past nan different piece, and I deliberation it partially answers your first mobility is continuing to look astatine our DAC Pre-FEED and FEED activity arsenic we spell into nan South Texas hub. We deliberation that's meaningful. And truthful while we're progressing and optimizing nan schedule for DAC 1, successful parallel, we're moving pinch nan aforesaid innovations and learnings and applying that to our South Texas Hub, which we deliberation we'll beryllium capable to support america connected gait for that improvement arsenic well.


And ladies and gentlemen, our adjacent mobility coming comes from David Deckelbaum pinch Cowen.

David Deckelbaum

I wanted to excavation successful a small spot more. You talked a spot astir reaching this $4 per stock return connected superior period and now looking astatine nan preferreds arsenic this trigger arsenic a priority. How do we deliberation astir your position connected nan returns of superior connected retiring preferred versus, say, supplementing that pinch plus income arsenic we activity done nan year, particularly arsenic you get beyond nan 2nd 4th of '23 and that trailing 12 months $4 a stock use benignant of rolls off, particularly from that notable lump successful nan 2nd 4th of '22?

How do you deliberation astir navigating that? And should we expect you to benignant of propulsion guardant different sources of rate to effort to enactment supra that threshold?

Vicki Hollub

Hitting nan period has been really not a target, but an result of a scheme that we wanted to execute anyway. Share repurchases is specified a captious portion of our worth proposition that this is nan measurement it has evolved. We're not really judge what nan macro is going to do towards nan extremity of this year. So successful position of what if immoderate plus income we would do to support nan pace, that really is limited connected nan worth -- what worth we spot successful doing that and what we person available.

But I would opportunity correct now, we don't person thing connected nan database to sell. Of course, thing we person is for sale, it's for nan correct price. But there's thing that we're actively trading correct now. And we judge that nan 2nd half of nan twelvemonth could perchance bring a macro situation that allows america to proceed without engaging successful immoderate further plus sales.

David Deckelbaum

That's helpful. Maybe if I could move conscionable to nan 2nd quickly astir Low Carbon ventures and DAC. There's evidently immoderate backing that's been made disposable nether nan Bipartisan Infrastructure Law. It seemed for illustration you alluded to immoderate elasticity successful nan budgeting astir DAC for perchance different sources of funding.

Can you locomotion america done possibly nan exertion process and nan clip statement for really we mightiness deliberation astir immoderate imaginable loans that would beryllium coming done aliases erstwhile we mightiness person immoderate much accusation astir different sources of funding?

Richard Jackson

David, this is Richard. I'll effort to reply a portion of that. Really, 2 pieces, arsenic you described. I mean we proceed to person bully discussions pinch superior partners, not only for DAC 1, but arsenic we look astatine capitalization complete nan life of our improvement plan. And truthful that's an important portion that we want to enactment caller with.

The 2nd portion is, arsenic you mentioned, immoderate of nan assistance programs that are straight associated pinch CCUS and DAC specifically. We're not successful a position to talk successful item connected that today, but we are and -- person communicated before, we deliberation our projects fresh very well. The intent of that program. We deliberation nan -- really nan precocious creation and really authorities that we're successful arsenic we spell into DAC 1 and past into nan South Texas Hub puts america successful a really bully position for that type of program.

I deliberation nan South Texas Hub, arsenic you look astatine that, successful particular, it's conscionable a unsocial opportunity to look astatine benignant of nan large-scale build-out erstwhile we've contemplated nan 30 DACs for that area. So to straight reply your mobility connected updates, I deliberation we'll person much arsenic we spell this year, but we'll time off it astatine that for now.


And our adjacent mobility coming comes from Jeanine Wai pinch Barclays.

Jeanine Wai

I person 2 questions, I guess, astir nan Permian, if we could. The first one, possibly connected inventory. The 2nd 1 connected sustaining CapEx. On inventory, we compared your updated descent versus nan anterior version. And aft adjusting for wells to income successful '22, it looks for illustration nan location count for nan wells that break moreover for nether 60. It really isn't each that different, which implies astir a 16-year inventory astatine nan existent pace.

So conscionable wondering if you tin talk astir immoderate of nan differences successful assumptions betwixt nan aged and nan caller inventory calculations, whether it's connected costs aliases connected improvement strategy? For example, we saw successful nan footnote location that your updated inventory uses nan '22 budgeted good cost. And really different would that look if you usage existent costs?

Richard Jackson

Great. Jeanine, this is Richard. I'll effort to thief reply a fewer of those. I mean very proud of our inventory evidently bully acreage position that we person and person accumulated, but very pleased pinch nan team's expertise to proceed to beforehand that. So arsenic you noted, particularly successful Permian resources beardown little than $60 breakeven pinch agelong activity, I'd opportunity immoderate of nan changes that person occurred, we tried to item 1 moreover successful that descent is really reasoning astir longer laterals. So capable to proceed to halfway up acreage wherever we're astatine beryllium diligent successful improvement areas to let that to hap and really series our developments to execute nan longer lateral.

So arsenic we were capable to do that, obviously, that whitethorn spell down one, but we've made a overmuch much valuable azygous good inventory. The different point I would opportunity is conscionable really nan situation complete nan past mates of years, arsenic we restated superior aliases began to put superior backmost into nan programme since 2020. That's allowed america to really create immoderate caller areas successful zone.

So for example, nan First Bone Springs wells that we noted, very proud of those. What happened during that nether finance cycle, we proceed to activity nan exertion and nan improvement plans to really beforehand those zones. And truthful those type advancements successful areas and zones for illustration that besides are adding to our inventory. But that restoration and capital, we judge this twelvemonth particularly will let america to further beforehand our inventory. For example, we person 40 target wells successful 2023 that we judge will afloat replenish nan wells we drill this year. And truthful we're beautiful thoughtful successful position of really we're expanding that and approaching that inventory. And truthful hopefully, arsenic we go, that will proceed to turn successful nan Permian. But moreover successful areas for illustration nan Powder River Basin, we're resuming immoderate activity this year.

Jeanine Wai

Okay. Great. Moving to nan sustaining CapEx In nan $3.5 cardinal sustaining CapEx estimate, really overmuch of that is allocated to nan Permian? And does that support Permian accumulation level versus '23 levels? We cognize Oxy has sewage a ton of different operating areas, and there's a batch of different ways to support accumulation level there?

Vicki Hollub

Yes. When we deliberation astir sustaining superior levels, it's really really do we maximize nan return connected superior employed for each of nan assets that we have, while ensuring that we could do that for connected a multiyear basis. And for example, erstwhile you talk astir nan Permian, there's nan resources portion of nan business and nan EOR part. The EOR part, nan measurement we've been capable to maximize return connected superior employed for it is to really support nan accommodation afloat loaded each of nan time.

So we're not -- we don't person unused capacity and keeping those accommodation afloat loaded requires a definite level of capital. We surely person nan imaginable to proceed to turn nan EOR business beyond that. But up to this point, that's what we've been capable to do to get nan astir worth retired of it. The Resources business, mixed pinch nan AUR business, would require astir $1.8 cardinal for sustaining capital. And this year, we did summation nan EOR and that's portion of nan logic to do that is that nan little diminution of our EOR business, nan little diminution of nan chemicals business and our state travel assets successful nan Middle East those are critically important to us.

And arsenic you know, we're expanding Al Hosn, which will very -- not by very much. will that summation nan sustaining superior there, but will supply america further debased diminution rate travel from that plus arsenic well. And that's what we astir for illustration astir our portfolio is that this diverseness of having nan little diminution assets mixed pinch nan higher decline, but higher rate travel generating assets successful slightest initially is very complementary. So we person nan champion of each worlds, I think, successful nan divers portfolio that we have.


And our adjacent mobility coming comes from Matt Portillo pinch TPH.

Matt Portillo

Just possibly to commencement out, I was hoping to spot if you could springiness america an update possibly really things person progressed since nan LCB Day connected nan PointSource business, possibly immoderate of nan conversations you're having pinch nan IRA Bill coming out? And immoderate colour that we whitethorn beryllium capable to look done connected erstwhile nan first task mightiness commencement up and really you guys are reasoning astir benignant of nan full volumes you've secured truthful acold for sequestration connected constituent source.

Vicki Hollub

Okay. Thank you for nan question. I'll walk that to Richard.

Richard Jackson

Yes. Great. Matt, I deliberation things for galore of america successful CCUS and surely successful nan U.S. are progressing good station IRA. I deliberation tons of activity going connected pinch emitters to carrier to sequestration. Our attraction really has been benignant of akin to lipid & gas, really moving to unafraid nan champion sequestration sites and create those successful a measurement to beryllium some ample scale, truthful we tin get nan economies of scale, but besides beryllium capable to supply that certainty arsenic these deals are putting together.

So we person really 5 hubs that we're moving that we've talked about. We've sewage respective Class VI wells successful advancement arsenic good arsenic characterization of these sites. The Midstream providers are very important. And truthful being capable to unafraid those partnerships early, I think, aligns really nan downstream from nan seizure tract to beryllium capable to do that.

So arsenic we deliberation astir benignant of really this plays retired complete nan adjacent mates of years, we're hopeful that arsenic we spell this twelvemonth much projects will beryllium capable to harvester that seizure to carrier nan sequestration and really deed FID and past statesman building complete nan adjacent mates of years. I deliberation our activity moreover going backmost to immoderate of nan activity that we've done successful nan Permian complete nan past respective years astir immoderate of nan seizure projects location really helped pass us.

Hopefully, arsenic a bully partner astir really do you negociate that benignant of crossed nan worth chain.

And truthful our attraction is, again, really connected that sequestration. That really puts america successful a bully position to return together nan synergies pinch DAC arsenic we create that. And truthful we're playing that domiciled and having bully conversations towards those projects. And again, expect this twelvemonth to person much updates.

Matt Portillo

Great. And past arsenic my follow-up, conscionable astir OxyChem, a beardown commencement to nan twelvemonth pinch nan Q1 guide. Just funny if you each are emotion astir nan outlook for caustic and PVC and possibly what's baked into nan guidance expectations arsenic we advancement done 2023?

Robert Peterson

Yes, sure, Matt. So what we extremity for nan twelvemonth was home PVC request was really down astir 6.8% successful '22 comparative to '21. But what we did -- was we saw arsenic an manufacture that export request ended up being astir 46% higher nan full PVC request really grew almost 7% year-over-year successful '22. And truthful we're looking into what's going connected and what's successful our guidance is we saw that softness successful PVC done nan 4th quarter, but it appears that bottomed retired precocious 2022, early 2023.

So each PVC purchaser adjustments we judge were mostly completed arsenic prices were falling. And we judge that, arsenic we beryllium present today, that galore buyers inventories are debased arsenic we participate building season. We've besides seen PVC export prices not only bottomed but are really starting to inclination upward astir recently. And successful nan home market, each nan producers person importantly announced value increases successful nan home marketplace for PVC.

So reasoning astir nan guidance successful PVC, it reflects nan uncertainty of nan trajectory of nan home and world system that's going to thrust that business. And truthful while there's still this immense pent-up request we spot successful building and nan debased inventories, there's still headwinds from nan effect of nan higher liking rates, which now whitethorn not highest arsenic early aliases statesman to subside arsenic quickly arsenic anticipated. And of course, nan gait of economical activity increases successful China is conscionable going to proceed to beryllium an effect to nan DTC business globally impacting waste and acquisition flows for PVC.

So that's what's factored into this benignant of murky outlook for PVC. The caustic soda business, we saw export prices, I discussed successful my early comments decline, not conscionable from nan effect of nan world system from nan China taking, again, longer to restart, but besides European markets stocked up importantly connected caustic soda arsenic we went into winter. That surely has started to loosen from tight marketplace conditions to looser marketplace conditions and we operating costs travel down dramatically successful Europe arsenic power prices person fallen.

Our guidance connected nan caustic broadside of nan business, this assumes it's going to return clip for this unwinding of European inventories and a gradual opening of nan Chinese economy. So -- but again, I would say, arsenic we've talked successful nan past, our chemic business is truthful dense weighted successful home building and world GDP. We're going to cognize a batch much astir nan full trajectory of nan twelvemonth than we do and sitting present successful February than we will, possibly successful May aliases June astatine that time. We've sewage a mates much months to look astatine it.

So Overall, that guidance for nan twelvemonth conscionable reflects that uncertainty astir some sides of nan business astatine this point.


And our adjacent mobility coming comes from Doug Leggate pinch Bank of America.

Doug Leggate

First of all, apologies. I was a small precocious getting on, truthful I dream my questions haven't been asked already, but a batch going connected today. Vicki, I want to inquire astir nan Gulf of Mexico trajectory and nan rate operating cost. It seems to maine astatine slightest that this is an area wherever we've ever had a small spot of -- it's been a spot murky to understand conscionable what nan diminution successful nan improvement backlog looks for illustration from nan bequest portfolio.

But it seems that you are doing a batch amended connected nan accumulation guideline and nan trade-off possibly is simply a small spot higher OpEx. Can you springiness america your latest thoughts connected what you spot arsenic nan trajectory longer word for nan Gulf?

Vicki Hollub

Our scheme for nan Gulf of Mexico is to proceed to support it astatine astir nan accumulation complaint that it's astatine correct now. It's, arsenic you know, a important rate travel generator for us. So we person nan inventory, and we person nan scheme laid retired to guarantee that we tin -- we person nan improvement fresh to to support nan existent level of accumulation wherever it is. We don't intend to importantly turn production. That could beryllium portion of nan result of what immoderate of nan exploration and improvement will lead to.

But it's our intent and it will beryllium lumpy. As we've said before, superior location will dangle connected our exploration successes, really those spell and timing. But connected nan average, our accumulation level should beryllium astir wherever it is today.

Doug Leggate

For what period?

Vicki Hollub

I would opportunity that we conscionable picked up immoderate leases, arsenic you know. We're now doing nan preliminary activity connected those leases. I would opportunity that our trajectory is surely betwixt -- location betwixt 5 and 10 years of imaginable inventory to support what we person today.

Doug Leggate

That's helpful. My follow-up is simply a favourite mobility of to beryllium predictable, but I want to inquire astir your breakeven, but caller onset a small bit. Obviously, we've had immoderate inflation, your breakeven capital. What you've recognized today? And I guess, what I'm really trying to understand is really you deliberation astir dividend capacity arsenic portion of that breakeven, let's say, it's $40. Has that go for illustration a ceiling for your dividend thoughts? And I conjecture nan explanation point, if I may, Vicki, there's been a batch of questions coming astir DAC, obviously. When you deliberation astir that breakeven, are you including nan superior aliases sustaining superior for nan DAC business arsenic well?

Vicki Hollub

Well, certainly, I would opportunity that we are not including nan superior for nan DAC arsenic a portion of our breakeven aliases sustaining capital. If we were successful a script wherever we were down successful a $40 environment, unless we had important superior inflow from location else, we would importantly trim backmost our improvement connected nan DACs unless that improvement was supported by others.

So I would opportunity that erstwhile you deliberation astir nan breakeven for america and I benignant of wish we had ne'er brought that word up because it's truthful misleading to people. We -- I would opportunity nan quality successful wherever we are today, wherever possibly we've been successful anterior times is that we support a exemplary of what it's going to return to support our dividend astatine various lipid value levels. And what we've said is still existent that we want to guarantee that we're adjacent to a $40 breakeven aliases little truthful that if we're successful that situation that we tin still prolong nan dividend.

I ne'er want to spell done a script wherever we would person to trim it again. But what that breakeven really is, what would nan value and nan world look for illustration astatine $40. So you can't return our numbers correct now and backmost into what it would beryllium and expect it to beryllium $40. We've evidently elevated our superior finance higher than than what it would be, what nan calculation would show nan breakeven is today. So breakeven for america intends that if you're successful a $40 environment, past nan proviso chain, nan services and materials, each of those things would beryllium adjusted to that benignant of situation to that cost. And successful that environment, our costs would past beryllium little than it is coming connected OpEx and moreover labour cost, services materials -- So successful that environment, we look astatine what would it return to guarantee that we could prolong our dividend growth.

And that's really we would cipher that. So -- and that -- and sustaining superior is different. As I explained earlier, sustaining superior is wherever you person each asset, nan finance level astatine nan constituent wherever you're generating nan champion returns that you tin make from nan infrastructure and accommodation that you person and nan resources that you have. So pinch what we're doing today, arsenic we proceed to trim our costs building arsenic we proceed to little our liking from our indebtedness reduction, and we've arsenic we will bargain backmost immoderate of nan preferred, we'll little that costs arsenic well.

We usage those 2 measures arsenic nan superior measurement we tin cipher really overmuch we tin turn our dividend. So arsenic we're continuing to trim liking arsenic we're continuing to trim nan preferred dividend, that will beryllium nan capacity disposable for nan maturation of nan dividend. And to further get it to summation it connected a per stock basis, our stock repurchase programme is intended to thief pinch that arsenic well. So it's an absolute number headdress that we person arsenic good arsenic a stock repurchase programme that allows that dividend per stock to proceed to summation complete time.


And our adjacent mobility coming comes from Paul Cheng pinch Scotiabank.

Paul Cheng

Two questions, please. If -- I person to apologize. I want to spell backmost into nan inventory. That number, really that will alteration for those that little than $50 WTI and we changed nan Henry Hub state by to 2 50 and nan soul measurement of return to, say, 15%, 20% and besides for nan cost, I mean really that is going to get changed? That's nan first question.

And nan 2nd mobility that I deliberation a batch of your peers that -- aliases astatine slightest immoderate of them person signed nan LNG proviso statement and 1 of your largest adjacent really make finance -- equity finance successful nan LNG plan. Want to spot if Oxy deliberation that, that will beryllium a suitable finance for you? And what is nan crippled scheme there?

Vicki Hollub

I'll return nan LNG mobility first arsenic Richard is pondering nan different question. The LNG question, 1 of nan things that we've ever tried to do is make judge that we do things that are wrong our halfway competence. And truthful our halfway competence is getting nan astir retired of lipid & state reservoirs and handling CO2. So LNG is not thing that we would want to beryllium a builder of. And if it's thing that we don't want to beryllium a builder of aliases usage arsenic a portion of our strategy successful our lipid & state improvement and [indiscernible]. If it's not a portion of that, that's not thing that we would put our finance dollars in. We're not going to spell excessively acold from what we cognize really to do nan best.

Richard Jackson

Paul, this is Richard. I effort to reply your mobility connected nan inventory. I mean, arsenic you deliberation astir benignant of a discount complaint against that inventory, obviously, if it's higher, that would alteration nan numbers a bit, but we are still very beardown successful that inventory. For example, successful nan DJ arsenic we deliberation astir that programme and we look astatine state value fluctuations, we look astatine positive 50% type programme returns moreover astatine a little state value than what we show there. So it will effect things.

But I deliberation successful position of nan beardown returns that we person will transcend benignant of our expectations connected return connected capital. And we proceed to negociate that inventory to thrust really what we create into those little breakeven categories. Probably nan different point to opportunity connected that, basically, nan inventory this twelvemonth pinch nan wells that we drill are each little than $40 breakeven.

So we've been capable to precocious people up of clip to make judge that we person sustainability of those returns. And arsenic I mentioned earlier, nan wells that we targeted to replenish 100% of our drilled wells this year, we'll expect to transportation that aforesaid result.


And our adjacent mobility coming comes from Roger Read pinch Wells Fargo.

Roger Read

I'd for illustration to travel up really, I guess, connected nan Gulf of Mexico, possibly secondarily, connected nan EOR side. Relative superior subject aliases possibly moreover fierce superior subject complete nan past mates of years for nan evident reasons. Just wonderment really you're comfortable successful position of nan outlook for nan Gulf and besides for EOR, conscionable that immoderate your guidelines declines are now, immoderate benignant of catch-up superior possibly to attraction aliases thing for illustration that, but it sets you up level successful nan Gulf and possibly level to increasing successful nan EOR complete nan adjacent mates of years. Just what you did to get comfortable pinch that outlook?

Vicki Hollub

I deliberation conscionable starting to reconstruct nan superior to some of those assets person been helpful. And it is things that we ne'er stopped doing was investing and making each of those operations better. And that's why a small spot of nan summation successful OpEx is making successful nan EOR business getting immoderate of nan wells that had gone down during nan pandemic, putting those wells backmost online, which accrued our good attraction budget. But those are very inexpensive and high-return barrels.

So starting to do that. And we didn't unopen down immoderate benignant of attraction astir nan infrastructure, nary benignant of decreases successful superior astir nan attraction of our equipment. So really, it was much from nan standpoint of conscionable getting wells backmost online for EOR. And successful nan Gulf of Mexico, we've taken nan opportunity to activity connected nan -- not only nan aboveground to guarantee that we could summation our tally clip location pinch reduced superior and not being arsenic fierce pinch drilling wells retired there, we were still improving productivity by spending dollars connected improving tally clip and besides putting successful subsurface pumping instrumentality to grow nan radius of our spars and to besides summation productivity and widen our reserve lives retired there.

So nan activity that we've done successful nan Gulf of Mexico has really kept america prepared to get backmost to sustaining levels, some successful nan Gulf and EOR, without immoderate benignant of issues beyond nan adjacent twelvemonth aliases 2.

Roger Read

Okay. And conscionable arsenic a speedy follow-up. Any issues pinch permitting anyplace connected national lands aliases successful national waters?

Vicki Hollub

I'm sorry, what was that? Permitting --

Roger Read

Yes, permitting since you're not truthful overmuch national onshore, but national offshore.

Vicki Hollub

Federal offshore, we've had -- not had issues permitting frankincense far. Even erstwhile nan permitting moratorium came out, we were capable to still get things done and get things approved. And truthful I don't spot nan permitting constituent to beryllium an rumor for america offshore astatine this point.


And our adjacent mobility coming comes from John Royall pinch JPMorgan.

John Royall

So conscionable looking astatine your guidance for home OpEx per tube successful 2023. It looks for illustration it's up astir 6.5% from past year. And much successful statement pinch nan 2H of '22, which I deliberation Rob said successful nan prepared comments. Just comparing that pinch nan 15% ostentation connected nan superior side, tin you talk astir nan spread location connected why nan OpEx ostentation complaint is truthful overmuch amended than nan CapEx ostentation rate?

Vicki Hollub

Yes. I'll conscionable reiterate nan comments I made astir nan and past Richard's sewage immoderate accusation connected onshore. But for nan Gulf of Mexico, arsenic I was saying, immoderate of nan activity that we did was conscionable to beryllium up our expertise to summation our tally clip there. And that successful and of itself is going to summation your OpEx a small spot this twelvemonth and a small spot for adjacent year, but it's delivering successful position of barrels because, arsenic you've seen, nan Gulf of Mexico has helped to offset immoderate of nan declines from different areas and immoderate of nan storms. So we're amended prepared offshore now for higher productivity. Richard, do you person immoderate connected nan permits?

Richard Jackson

Yes. Maybe conscionable a small spot connected onshore OpEx. I mean, 1 awesome quality erstwhile you look astatine superior connected that 15% and past benignant of what we're seeing successful OpEx is OCTG. While we person immoderate vulnerability to that successful our benignant of attraction activities, it's acold little pronounced, and that was nan azygous biggest class really past twelvemonth for us.

So really, OpEx, it's been a mates of things. We break it down into ostentation and past scope and scope would beryllium immoderate of nan attraction activities for illustration Vicki's describing for nan GoM truthful really 2022 from an OpEx perspective, U.S. onshore, astir of it was really WTI aliases benignant of value indexed inflation, things for illustration power, CO2 value which were a small unsocial there, state processing, things for illustration that.

And really scope was beautiful good managed. We -- our attraction activities picked up a spot astatine nan extremity of nan year, chiefly downhole attraction and EOR. As Vicki said, arsenic you spell into 2023, it's overmuch much balanced. If you spot nan increase, location is simply a small spot of benignant of ostentation carryover successful position of processing and CO2 volumes are up a spot this twelvemonth for EOR arsenic we've resumed activity there, but it's a batch much scope.

So arsenic we statesman to resume accumulation activities, h2o management, compression, these type of things show up. But by and large, we've been capable to clasp that costs building for OpEx beautiful well. We spell backmost really benignant of first 4th '20 and look astatine those type of tally rates, and we've been very bully holding our costs building since that. Probably nan past point I'd opportunity benignant of to nan attraction activity akin to nan GoM, for us, successful U.S. onshore, it's a batch astir uptime improvement.

So continuing to activity pinch a third-party gathering and processing companies and past wrong our fields to beryllium capable to beryllium resilient done upwind and conscionable benignant of negociate this accumulation successful a bully way. So adding that uptime adds important worth to nan year. And truthful immoderate of our OpEx-related activities person been focused location arsenic well.

John Royall

Great. And past adjacent 1 is conscionable connected nan quarterly progression of production. And apologies if I missed thing here, but I spot that nan midpoint of accumulation guidance stays nan aforesaid successful 1Q versus nan afloat year, but you do person nan Permian ramping and you person nan Al Hosn task starting later successful nan year. So what are immoderate of nan moving pieces location that are benignant of pulling things nan different way? And past really do you expect accumulation to advancement passim nan year?

Richard Jackson

Maybe I'll commencement conscionable benignant of a U.S. onshore perspective. Permian being capable to ramp up to nan extremity of past twelvemonth and really unafraid nan resources by nan extremity of nan twelvemonth puts america successful a overmuch amended position for benignant of steady-state growth. However, nan first quarter, arsenic we noted, is simply a small lumpy. We had astir 40% little wells online versus benignant of different quarters successful nan twelvemonth aliases moreover against 4th quarter. It's a small lumpy connected nan Permian --

And past really nan moving portion is nan Rockies. We've been underinvested from sustaining superior complete nan past respective years. And truthful arsenic we talked, resuming immoderate activity there. We person astir a 4th fourth '22 to first 4th '23 astir 15,000 tube a time diminution and that benignant of steadies retired into nan 2nd quarter. And past we really commencement increasing successful nan Rockies successful nan 2nd half of nan year. And truthful that, from an onshore perspective, is simply a large portion of that moving part. And past nan different 1 is really our GoM upwind assumption. So I deliberation that's nan different portion to see erstwhile you look astatine nan trajectory connected total.

Vicki Hollub

Yes. In total, arsenic Richard mentioned, GoM will beryllium down a small bit, world up a small spot Al Hosn comes connected and comes connected stronger towards nan extremity of nan year.


And ladies and gentlemen, successful nan liking of time, this concludes our question-and-answer session. I'd for illustration to move nan convention backmost complete to Vicki Hollub for immoderate closing remarks.

Vicki Hollub

Thank you. I'll first by expressing my gratitude to our astonishing teams for their diligent attraction and pioneering activity that contributed to truthful galore advancements successful our halfway rate generating and emerging Low Carbon businesses truthful overmuch admit each that you do and for ever going supra and beyond. Thank you each to nan remainder of you for joining our telephone coming for your questions. Have a bully afternoon.


Thank you. This concludes today's convention call. We convey you each for attending today's presentation. You whitethorn now disconnect your lines, and person a awesome day.

Editor: Naga

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