a new class of E&P INVESTMENT Barclays CEO Energy Conference Ryan Lance, Chairman & CEO Sept.12, 2013
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
ConocoPhillips: Unmatched as an Independent E&P Today Production: 1,5151,530 MBOED1 (2013e) Largest independent E&P Liquids company LNG + International Gas North American Gas Diverse asset base with scope and scale Multiple…
Our Strategy is Aligned with Our View of the Environment Diversification, scale and capability are a competitive advantage Disciplined investment strategy Focus on organic growth Invest in highmargin programs and projects…
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…
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 Exploration Delivers 15% 2017+ & Appraisal growth Major Projects * Peak spend Major for named 30% Projects projects Development occurs…
Our Commitment to Margin Improvement Five significant areas ramping up between 20122017 Incremental growth comes from highmargin investments Lowerrisk geographies and geologies; diversified plays Oil Sands Europe Lower 48…
Margin Improvement from Strong Growth and Mix Shift Investment strategy drives strong organic growth Visible growth by end of 2013 Highmargin growth creates 6 B of incremental cash flow 4045 per BOE average cash margin1 Liquids…
Focused on Continuously Improving Returns Ongoing focus on cost structure and efficiency Asset divestitures improve portfolio returns Shortterm returns impacted by capital investments in major projects Highmargin growth…
HighQuality Legacy Base Production and Capability Focused on systematic Operations Excellence programs to mitigate risk, improve production efficiency and preserve value: Asset and operating integrity Planning and scheduling…
HighMargin Worldwide Development Program Inventory Development programs will account for 600 MBOED by 2017 60% of production growth from highimpact Lower 48 programs Development Program Growth (20122017) MBOED Alaska Europe 35…
Permian Conventional: Decades of Legacy Field Inventory Permian Basin 5year investment: 3 B New Mexico Texas BORDEN Incremental F&D: 15/BOE DAWSON GAINES EDDY LEA ANDREWS MARTIN 1 MM net acres; 0.8 BBOE resource HOWARD…
Bakken: Growth from Development in Heart of Trend Bakken 5year 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 5year investment: 8 B GUADALUPE BEXAR GONZALES Incremental F&D: 20/BOE 227 M net acres; 1.8 BBOE resource WILSON DE WITT Highestquality position in sweet spot,…
Unconventional Reservoirs: Sweet Spot Identification Early mover in best parts of plays yields bestinclass results Multidisciplinary approach Eagle Ford, Bakken and Permian successful outcomes Securing additional liquidsrich sweet…
HighMargin Major Growth Projects in Execution Major projects will account for 400 MBOED by 2017 Lowerrisk geographies and geologies; diversified market exposure Major Projects Growth (20122017) MBOED Oil Sands Norway 100 MBOED1…
Oil Sands: Significant Growth from Projects in Execution Christina Lake 5year investment: 5 B1 Fullcycle 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 5year investment: 2.5 B Fullcycle F&D: 20/BOE Jasmine: Largest recent discovery in U.K. sector; on track for late4Q startup Highvalue exploration opportunities can…
Norway: Major Projects Drive Another 40 Years of Production Ekofisk South 5year investment: 4 B Fullcycle 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 5year investment: 2.5 B South China Sea Fullcycle F&D: 15/BOE KBBC PSC Ubah KME 4 developments in execution: Gumusut, SNP, G KBB G KBB and Malikai SB311 Pisagan SNP G…
APLNG: Project Progressing On Schedule APLNG 5year investment: 2.5 B1 Fullcycle F&D: 25/BOE Initial focus on two 4.5 MTPA LNG trains Project on schedule for first cargo mid2015 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…
International Conventionals: Deepwater Angola Angola Play identified as a probable analog to Brazil pre salt play ANGOLA Recent discoveries derisk play concept in Kwanza Basin Luanda ConocoPhillipsoperated 2.5 MM acre…
Exploration Catalysts in Deepwater GOM 2013 Gulf of Mexico Exploration Two significant discoveries Texas Louisiana announced Shenandoah appraisal well Gila Tiber Shenandoah WI: 20% WI: 18% WI: 30% Target: L Tertiary Non…
2013 2014: Positioned for Success Operational Financial Strategic Significant Maintain strong Delivering on value inflection point balance sheet proposition Visible results from Demonstrate Complete exploration margin…
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…
Appendix
2013 Production Outlook 1 Includes production for Cedar Creek Anticline. 30
Annualized Net Income Sensitivities Crude Brent/ANS: 7585 MM change for 1/BBL change WTI: 3040 MM change for 1/BBL change WCS1: 2025 MM change for 1/BBL change North American NGL Representative blend: 1015 MM change for 1/BBL…
Substantial Progress on Portfolio HighGrading Asset sale criteria Announced Expected Nonstrategic Transactions1 Proceeds B1 Mature, limited growth potential Ability to achieve fair value Kashagan 5.4 Taxefficient transactions…
Segment Production (MBOED) * Reflects production from 20122013 closed and announced dispositions. 33
NonGAAP Reconciliations 2012 Return on Capital Employed Numerator (MM) Net Income Attributable to ConocoPhillips 8,428 Adjustment to exclude special items (1,694) Net income attributable to noncontrolling interests 70 Aftertax…
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,…
Loading...
