3 Year Repositioning Plan: 2010 2012 Portfolio Optimization Capital Structure Monetize noncore assets Reduce debt Position for Upstream growth Strengthen financial flexibility Focus capital toward E&P Reduce exposure to…
Progress through 2011 Right on Target B 2010 Based on actuals / 2011 First Call estimates 60 CFO exceeds Capex and Dividends by 5 B Asset sale proceeds used for 15 B share repurchase plus debt reduction 50 20 39% of funds returned…
Recent Highlights Strong third quarter financial performance 14 B in yeartodate cash from operations 3 B of additional share repurchases Repurchased a total of 12% of outstanding shares since 2010 Margin improvement year over year…
2012 Initiatives Portfolio Optimization Capital Structure 2012 asset sales of 5 to 10 B Phillips 66 to issue 8 B new debt Progress major E&P projects COP to retire 5 B debt 100%+ reserve replacement ratio Rationalize low margin…
Creation of Two Leading Energy Companies Special dividend of Phillips 66 shares to COP shareholders 1 share of Phillips 66 per 2 shares of COP owned at record date 6 B of cash transferred to COP, majority subsequently used for COP…
Positioned to Create Value ConocoPhillips a uniquely positioned E&P company Large, diversified, OECDbased portfolio Size, scale and technical capabilities to do any project globally High impact unconventional resource plays Growth…
Phillips 66 Capital Employed by Region2 New Approach to Downstream Europe/ Asia 4% R&M, Midstream & Chemicals Africa 12% Pro forma 2011 Capital Employed 29B U.S. Total Assets 50B 84% Employees1 15M Sector leading dividend Net…
Global Refining Position Average Refinery Size U.S. Refining Capacity MBD MBD 240 2500 2000 180 1500 120 1000 60 500 0 0 XOM Marathon NewCo Valero Chevron Tesoro HFC Valero Exxon NewCo MPC Chevron Tesoro HFC Nelson…
WellPositioned Chemicals Segment Chevron Phillips Chemical Company (CPChem) CPChem Net Capacity 40 B Pounds / yr 50:50 joint venture with Chevron Specialties, Aromatics Olefins / and Assets of 8 B at 12/31/10 Polyolefins…
Strong Midstream Segment DCP 50:50 JV with Spectra Largest U.S. NGL producer 2nd largest gas gatherer and processor 60 plants / 11 fractionators 62,000 miles of pipeline Liquids rich footprint Gas processing plant Propane…
The New ConocoPhillips Reserves YE 2010 Unique E&P Company Large, diversified and international 25% reserve and resource position OECD NonOECD 100%+ reserve replacement 75% Growing production and margins Returnsfocused Capital…
Global Portfolio Alaska North Sea Russia / Caspian 220 MBOED 280 MBOED 30 MBOED Largest oil & gas High value exploitation Large resource potential producer & major projects Canada 260 MBOED Asia Pacific Lower 48 World class SAGD…
Production from Major Projects Fuels Growth Asset / Production Peak Region Major Projects Startup MBOED 700 Jasmine Q4 2012 35 North Sea Ekofisk South Q4 2013 26 600 Eldfisk II Q4 2014 26 SAGD Christina L. (D/E/F/G/H) 2012 2016+…
Production Growth & Cash Margin Improvement Production MMBOED 2.0 Production growth of 34% CAGR from 2012 to 2016 1.5 Cash Margin < 30/BOE Shift towards higher margin production results in 34% CAGR 1.0 in cash margin 0.5…
Lower 48 Liquids Growth 7% annual production growth expected between 2011 and 2016 Shift to liquid production: 39% in 2011, 52% by 2016 L48 Production MBOED L48 Cash Margin /BOE Emerging Plays Flat Price (95, 4.4) 600 35 Bakken…
Malaysia Projects Generate Growth Major projects include Gumusut, KBB, Malikai and SNP Targeting 2012 SNP and Malikai sanctions 0.4 BBOE discovered resource Shell, Murphy and JOC operated Production MBOED Expect to invest 0.6 B…
Australia Pacific LNG Production1 MBOED 120 100 80 60 40 20 0 2012 2013 2014 2015 2016 Current production 23 MBOED (2011) Achieved Train 1 FID Captured economic realignment Signed largest LNG contract in Asia 4.2 mpta with…
Canada SAGD Production Growth Project Phase Startup1 Foster Creek AE 2002 SAGD Production MBOED Christina Lake AB 2002 250 Surmont 1 2007 CAGR 15% Christina Lake C 2011 Christina Lake D 2012 200 Christina Lake E 2014 Surmont 2…
Cash Flow Per Share Growth 3 4% 1 2% 3 4% 3 4% C AGR 5% 1 0 1 2012 CFPS Production Flat Price Margin Growth at Share 2015 CFPS Growth Margin Growth Forward Curve Repurchase 20
Executing 3Year Repositioning Plan 2010 2012 three year plan to position for long term value creation Plan execution on target after first two years 20 B in asset sales 15 B in share repurchase 24 B in capital expenditures Continued…
Jefferies Global Energy Conference Jeff Sheets Senior Vice President Finance and CFO November 30, 2011 Houston, TX
APPENDIX
Non GAAP Reconciliations 3Q10 3Q11 3Q10 3Q11 1 1 GAAP E&P Net Income - MM 1,564 1,762 GAAP R&M Net Income - MM 268 789 GAAP E&P Net Income1 - / BOE 9.90 12.45 GAAP R&M Net Income1 - / BBL 0.94 2.69 non-core earnings impacts - MM…
Non GAAP Reconciliations ROCE E&P - ROCE 3Q11 3Q11 Numerator (MM) Numerator (MM) Net income 2,631 Net income 1,762 After-tax interest expense 153 After-tax interest expense 20 GAAP ROCE earnings 2,784 GAAP ROCE earnings 1,782…
Loading...
