a new class of E&P INVESTMENT Credit Suisse 19th Annual Energy Summit Jeff Sheets, EVP, Finance & CFO Feb. 12, 2014
ConocoPhillips: A New Class of E&P Investment We offer the marketplace a new class of E&P investment. Our goal is to consistently deliver strong, predictable returns to shareholders. 3
2013 Highlights Operational Financial Strategic Met production 7.1 B adjusted Closed 2013 target for the year; earnings, 5.70 dispositions for achieved 179% adjusted EPS proceeds of 10.2 B organic RRR1 Growth from major 15.8 B…
ConocoPhillips: Unmatched as an Independent E&P Today Production: 1,490 1,530 MBOED1 (1Q14e) Largest independent E&P Liquids company 25% LNG + International Gas 57% 18% North American Gas Diverse asset base with scope and…
What Will We Deliver Relentless focus on safety and execution Compelling dividend 3 5% production growth rate 3 5% margin growth rate Ongoing priority to improve financial returns Production and margin reflect compound…
A Compelling Dividend is Key to Our Value Proposition Dividend Yield1 Highest priority use of cash flow Enhances capital discipline 4.2% Predictable portion of shareholder returns Differential compared to range of peers…
Commitment to Capital Discipline and Growth Annual Capital Production MMBOED 16 B 2.0 Exploration Exploration Delivers 1.8 15% & Appraisal Appraisal 2017+ & growth 1.6 Major Projects * Major Peak spend Major for named 1.4…
Our Commitment to Margin Improvement Five significant areas ramping up between 2012-2017 Incremental growth comes from high-margin investments Lower-risk geographies and geologies; diversified plays Oil Sands Europe Lower 48…
2013 Performance Cash Margin Improvement Operating segments only. Numbers have been adjusted for special items. A reconciliation is available in the appendix. 1 Price normalized using published sensitivities. 10
Growth In Higher-Margin Production Growth comes from areas with higher margins than the company average Significant growth in North American liquids Alaska and Europe liquids and North American natural gas impacted by…
2013 Reserve Replacement Reserve Additions (MMBOE)1 Year-end reserves of 8.9 BBOE Organic reserve replacement ratio of 179% Total reserve replacement ratio of 147%; asset sales reduced reserves by 188 MMBOE Organic reserve…
Alaska Nabors 7ES at Kuparuk Full-Year 2013 Highlights Successfully completed major turnarounds at Kuparuk and Prudhoe New rig added at Kuparuk Initiated additional development activity after passage of MAPA 4Q 2013…
Lower 48 and Latin America Bakken Full-Year 2013 Highlights Production up 7% year-over-year; 24% increase in crude oil Major growth in unconventional plays Continued to drill and test in Permian and Niobrara with encouraging…
Canada Surmont Full-Year 2013 Highlights Production up 1% year-over-year; 13% increase in liquids Strong performance at Christina Lake Construction over 60% complete at Surmont Phase 2 Progress on drilling programs 4Q 2013…
Europe Jasmine Full-Year 2013 Highlights Completed major turnarounds at Greater Ekofisk, J-Area and Clair Continued progress on additional major projects Awarded 4 licenses in the Barents Sea 4Q 2013 Highlights What to Watch…
Asia Pacific and Middle East APLNG at Curtis Island Full-Year 2013 Highlights Progress SNP and Gumusut toward startup Significant progress at APLNG reaching 60% project completion Proteus-1 gas discovery in Browse Basin 4Q…
Diverse Unconventional and Conventional Exploration Portfolio West Duvernay, Greenland Barents Sea Muskwa, & North Sea Montney & Canol Poland Wolfcamp, Sichuan Niobrara & Gulf of Avalon Mexico Azerbaijan Bangladesh Senegal…
2014: Set for Growth Operational Financial Strategic Continued ramp up Ongoing margin Focus on executing of unconventional improvement our current plan drilling programs Growth from major Focus on improving Positioning for…
Our Value Proposition Relentless focus on safety and execution Compelling dividend 3 5% production growth rate 3 5% margin growth rate Ongoing priority to improve financial returns Production and margin reflect…
Supplemental Slides
Margin Improvement from Strong Growth and Mix Shift Investment strategy drives strong organic growth Visible growth by end of 2013 High-margin growth creates 6 B of incremental cash flow 40-45 per BOE average cash margin1 Liquids…
High-Margin Worldwide Development Program Inventory Development programs will account for 600 MBOED by 2017 60% of production growth from high-impact Lower 48 programs Development Program Growth (2012-2017) MBOED Alaska Europe…
Permian Conventional: Decades of Legacy Field Inventory Permian Basin 5-year investment: 3 B New Mexico Texas BORDEN Incremental F&D: 15/BOE DAWSON GAINES EDDY LEA ANDREWS MARTIN Central 1 MM net acres; 0.8 BBOE resource…
Bakken: Growth from Development in Heart of Trend Bakken 5-year investment: 4 B Montana North Dakota Incremental F&D: 20/BOE WILLIAMS MOUNTRAIL Nesson WARD 626 M net acres1; 0.6 BBOE resource ROOSEVELT Anticline RICHLAND 1,400…
Eagle Ford: Nearing Full Field Development Phase Eagle Ford 5-year investment: 8 B GUADALUPE BEXAR GONZALES Incremental F&D: 20/BOE 227 M net acres; 1.8 BBOE resource WILSON DE WITT Highest-quality position in sweet spot,…
Unconventional Reservoirs: Technology Leadership Proven ability to identify, secure and develop highest-value unconventional acreage Sweet spot identification Development plan optimization Efficient drilling and completions…
Unconventional Reservoirs: Sweet Spot Identification Early mover in best parts of plays yields best-in-class results Multi-disciplinary approach Eagle Ford, Bakken and Permian successful outcomes Securing additional liquids-rich…
High-Margin Major Growth Projects in Execution Major projects will account for 400 MBOED by 2017 Lower-risk geographies and geologies; diversified market exposure Major Projects Growth (2012-2017) MBOED Oil Sands Norway 100…
Oil Sands: Significant Growth from Projects in Execution Christina Lake 5-year investment: 5 B1 Full-cycle F&D: 15/BOE Surmont Phase 2 first steam in 2015 FCCL: Executing projects at Foster Creek, Christina Lake and Narrows Lake…
United Kingdom: Strong Production Growth from Projects Jasmine 5-year investment: 2.5 B Full-cycle F&D: 20/BOE Jasmine: Largest recent discovery in U.K. sector; started production in 4Q13 High-value exploration opportunities can…
Norway: Major Projects Drive Another 40 Years of Production Ekofisk South 5-year investment: 4 B Full-cycle F&D: 25/BOE Ekofisk South and Eldfisk II will continue to improve oil recovery from the Greater Ekofisk Area Additional…
Malaysia: Projects Ramping Up, with Upside Malaysia 5-year investment: 2.5 B Full-cycle F&D: 15/BOE 4 developments in execution: Gumusut, SNP, KBB and Malikai Gumusut full field and SNP first oil expected 1H14 Additional growth…
APLNG: Project Progressing On Schedule APLNG 5-year investment: 2.5 B1 Full-cycle F&D: 25/BOE Initial focus on two 4.5 MTPA LNG trains Project on schedule for first cargo mid-2015 Permitted for two additional trains Phase 1…
Diverse Unconventional and Conventional Exploration Portfolio West Duvernay, Greenland Barents Sea Muskwa, & North Sea Montney & Canol Poland Wolfcamp, Sichuan Niobrara & Gulf of Avalon Mexico Azerbaijan Bangladesh Senegal…
Permian Unconventional: Emerging Growth Active exploration across Permian Basin that leverages existing 1 MM net acre position High-grading positions around and within core legacy producing area Measured approach as infrastructure is…
International Conventionals: Deepwater Angola Angola Play identified as a probable analog to Brazil pre-salt play Recent discoveries de-risk play concept in Kwanza Basin ConocoPhillips-operated 2.5 MM acre position 2012-2013: 3-D…
Exploration Catalysts in Deepwater GOM 2013 Gulf of Mexico Exploration Three deepwater successes Texas Louisiana announced Gila Tiber Shenandoah Shenandoah appraisal well discovery WI: 20% Target: L Tertiary WI: 18% Target: L…
Appendix
Annualized Net Income Sensitivities Crude Brent/ANS: 75-85 MM change for 1/BBL change WTI: 30-40 MM change for 1/BBL change WCS1: 20-25 MM change for 1/BBL change North American NGL Representative blend: 10-15 MM change for 1/BBL…
Unconventional Reservoirs: Optimizing Full Field Development Science-based experimentation to optimize unconventional recovery Rapid experimentation with disciplined science Eagle Ford EUR growth more than 100% since 2010 Bakken EUR…
Top-Tier Oil Sands Position with Massive Resource Base Oil Sands 8 7 Competitive Resource Cumulative Steam-to-Oil Ratio1 6 5 4 Industry Average 3 2 2.7 2.0 2.3 1 0 Foster Creek Christina Lake Surmont…
Oil Sands: Unlocking the Value in Major Projects Game-changing technology to reduce oil sands cost of supply Advances based on modeling, Fish Hook lab and field work Infill Well Better returns with lower emissions Fish hook and…
International Conventionals: Offshore Senegal Senegal Farmed in to the Rufisque, Sangomar and Sangomar Deep blocks in the Mauritania-Senegal-Guinea-Bissau Basin in July 2013 Approximately 650,000 net acres Acreage covered by…
Segment Production (MBOED) * Reflects production from 2012-2013 closed and announced dispositions. 45
A Diverse Portfolio Delivering Production and Margin Growth Diverse, resource-rich global portfolio High-quality legacy base Profitable worldwide development programs Major projects in execution Compelling exploration…
Non-GAAP Reconciliations Cash Margin per BOE Price Normalized Cash Margin per BOE 2 Operating Segments Operating Segments 2012 2013 2012 2013 FY FY FY FY Millions, except per BOE amounts Cash Margin 14,328 15,650 Net Income…
Investor Information Stock Ticker: NYSE: COP www.conocophillips.com/investor Headquarters: New York IR Office: ConocoPhillips ConocoPhillips 600 N. Dairy Ashford Road 375 Park Avenue, Suite 3702 Houston, Texas 77079 New York,…
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