Barclays Energy Conference September 5, 2012 Ryan Lance Chairman and CEO
Our Value Proposition Sector-leading distributions 3 5% production CAGR 3 5% margin CAGR Ongoing priority to improve returns Relentless focus on safety and execution 3
ConocoPhillips: Positioned for Success Production: 1,565-1,585 MBOED (2012e) Largest North American-based independent Majors asset base with compelling growth High-margin legacy assets Lower risk, diversified international…
Disciplined Investment Approach 75-80% of CFO allocated to capex for growth Current Dividend Yield and returns Sustainable production growth 100%+ organic reserve replacement Build inventory of future investment options 20-25% of…
Investing for Profitable Growth Disciplined allocation of 15 B annual capex generates 3 5% CAGR with high margins and lower risk Capital Production MMBOED * 2012 full-year impact of disposition candidates 6
Visible Improvement in Margins Margins increase Production and Margin Growth 5/BOE by 2016 Mix shifts to high-value liquids Additional benefits from Divestitures Decline in North American Gas Fields Growth in favorable tax…
Focused on Absolute and Relative Returns Capital allocation optimized for 2011 ROCE growth and returns Goal to continue absolute improvement in returns Close gap and maintain strong relative position Diligence on cost…
2012-2013: Investment Priorities and Actions Sources of Cash Uses of Cash by Priority June 2012 Cash Balance1 Annual Dividend 6 billion 3 billion Cash From Operations2 Annual Capital Program 12-14 billion 15 billion Asset…
Portfolio Overview: Impactful North American Position Largest independent producer in North America 3 5% production CAGR projected from high-return programs Technical strengths in unconventional, heavy oil and arctic 2011 Production…
Portfolio Overview: Lower Risk International Position Majority of production in long-lived assets in OECD countries 4 6% production CAGR expected from major projects Technical capabilities in conventional, deepwater, LNG,…
Compelling Near-Term Growth Projects Five high-margin projects will account for 550+ MBOED by 2016 Lower risk geographies and geologies; diversified plays Canada Europe SAGD 90 MBOED 80 MBOED Eagle Ford Malaysia Permian…
Massive Land Position in L48 and Canada COP Acreage Lower 48: 15.3 MM Net Acres Williston Western Canada: 5.9 MM Net Acres Total North America: 21 MM Net Acres Bakken Rockies San Juan Panhandle Barnett Permian Eagle Ford…
Strong Unconventional Technology Capability Sweet spot identification Reservoir & completion performance Field Optimization Pilot Well construction Well intervention Completions Optimization Life-of-field optimization…
Eagle Ford Best Position in Best Play 228 M net acres in liquids-rich play (77% liquids) with 1.8 BBOE resources 2012 program: over 180 wells with 16 rigs; 2.5 B investment; 50%+ return 1 Wells lead industry performance with 37/BBL…
Permian Emerging Liquids Growth 1.1 MM net acres in liquids-rich play (60% liquids) with 1.1 BBOE resources 2012 program: over 300 gross wells; 0.6 B investment; 40%+ return1 Exposure in every play; over 7,000 gross identified well…
Bakken Legacy Oil in Heart of Trend 207 M net lease / 419 M net mineral acres in oil play with 0.4 BBOE resources1 2012 program: over 120 gross wells; 0.6 B investment; 25%+ return 2 Managed pace based on access to service and…
Canada SAGD World-Class Assets 2012 program: 2.3 B investment; average project returns of 13%+1 Repeatable manufacturing improves capital efficiency and time to first oil Opportunity to unlock additional 8.6 BBOE resources with…
Europe New Opportunities Near-term, high-return projects: Eldfisk II, Ekofisk South, Jasmine, Clair Ridge 2012 major project program: 2.2 B investment; returns of 20%+1 Future opportunities include Tor Redevelopment ,Tommeliten Alpha…
Malaysia Projects Deepwater Growth Includes 3 sanctioned projects, with 4th sanction expected late 2012 2012 program: 0.5 B investment; project returns of 17 20%1 Appraisal and development planning underway on 4 additional…
Australia Pacific LNG Project Update On schedule with first cargo targeted for June 2015 2012 program: 2.0 B; full-cycle project returns of 8 10%1 Current ownership: 37.5%; FID achieved on both 4.5 MTPA trains Project financing…
Future Growth from Unconventional Exploration North America: accessing and testing many high- quality, high-value, liquids-rich plays Canol Added 700,000 net acres in North America since 2011 Horn River Material working interest in…
Future Growth from Conventional Deepwater Exploration North America: 6th largest deepwater Gulf of COP leases Mexico lease owner Lower Tertiary Play Shenandoah 1.5 MM net acres Currently participating in 2 wells: Coronado wildcat and…
Our Value Proposition Sector-leading distributions 3 5% production CAGR 3 5% margin CAGR Ongoing priority to improve returns Relentless focus on safety and execution Unique combination of growth, returns and yield 25
Q&A
Annualized Income Sensitivities Crude Brent/ANS: 85-95 MM change for 1/BBL change WTI: 20-25 MM change for 1/BBL change WCS: 20-25 MM change for 1/BBL change North American NGL Representative blend: 20-25 MM change for 1/BBL…
Asset Sales Provide Flexibility Selection criteria Asset Total Non-strategic Mature, high-cost properties Vietnam Ability to achieve fair value Alba North Sea Tax efficient 3.0 B Statfjord North Sea Limited growth potential…
Captured Resource Potential YE 2011 Resource by Region Exploration & BD Resources 35 BBOE 43 BBOE Proved Reserves 8 BBOE Resource includes probable, and possible reserves and contingent resource; excludes prospective…
COP Non GAAP Reconciliation Return on Capital Employed (ROCE) Millions except as indicated 2011 Upstream estimated ROCE earnings 9,174 E&P segment special items (1,047) Non-E&P segment ROCE earnings 255 E&P segment GAAP ROCE…
COP Non-GAAP Reconciliations E&P - ROCE 2010 Numerator (MM) Net income 9,251 After-tax interest expense 91 GAAP ROCE earnings 9,342 Non-core earnings impacts (2,444) Adjusted earnings 6,898 Denominator (MM) GAAP average…
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