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April 2012 Investor Update – ConocoPhillips

ConocoPhillips · Apr 16, 2012 · 42 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. April 2012 Investor Update – ConocoPhillips – slide 1
    A New Class of Investment April 2012
  2. April 2012 Investor Update – ConocoPhillips – slide 2
    Our Priorities Continue focus on safety and Dividend Growth (cents/share) 66 operations excellence 47 50 55 41 36 31 Finish repositioning 25 20 22 Invest with discipline '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Production…
  3. April 2012 Investor Update – ConocoPhillips – slide 3
    ConocoPhillips Today Largest North American-based independent Production 1.6 MMBOED (2011) Lower-risk, diversified international Liquids 26% LNG + International Gas positions 54% 20% North American Gas Majors asset base with…
  4. April 2012 Investor Update – ConocoPhillips – slide 4
    Our Value Proposition Sector-leading distributions 3 5% annual production growth 3 5% annual margins growth Ongoing priority to improve returns Relentless focus on safety and execution 5
  5. April 2012 Investor Update – ConocoPhillips – slide 5
    Disciplined Investment Approach Reinvest 75 80% of CFO for optimized Current Dividend Yield growth and returns 6.2% Sustainable production growth 5.0% 100%+ organic reserve replacement 4.6% Build inventory of future investment…
  6. April 2012 Investor Update – ConocoPhillips – slide 6
    2012 2016 Production Growth Disciplined allocation of 15 B annual capex generates 3 5% CAGR with high margins and low risk Capital Production MMBOED Exploration Prepares 1.8 15% 2016+ 0.4 & Appraisal Growth Major 0.2 1.5…
  7. April 2012 Investor Update – ConocoPhillips – slide 7
    2012 2016 Margin Improvement Shift to high-margin production drives 3 5% cash margin CAGR Production MMBOED Production and Margin Growth 2012 Flat-Price Conditions 2012 to 2016 1.8 200 L48 Liquids Production Growth MBOED…
  8. April 2012 Investor Update – ConocoPhillips – slide 8
    Focus on Returns Goal to continue absolute 2011 ROCE 22.5% improvements 21.0% Close gap and maintain strong 17.6% relative position 15.8% COP Upstream Estimate 13.6% Capital allocated to highest-return 13.0% projects…
  9. April 2012 Investor Update – ConocoPhillips – slide 9
    Cash Flow Growth B 15 B annual capex optimizes growth and returns 3 4 B allocated to dividends Cash position and strong balance sheet provide significant financial flexibility 3.5 22 2.5 3 5% Margin 16 3 5% CAGR Production…
  10. April 2012 Investor Update – ConocoPhillips – slide 10
    Unlocking Our Potential Commitment to Stakeholders Independent High Quality, Company Culture Lower-Risk Assets Track Record of Exclusive Operations Upstream Focus Excellence Technical and Execution Capability Legacy…
  11. April 2012 Investor Update – ConocoPhillips – slide 11
    Impactful North American Position Largest independent producer in North America 3 5% production CAGR projected from high-return programs Technical strengths in arctic, unconventional, heavy oil 2011 Production MBOED 2012 2016…
  12. April 2012 Investor Update – ConocoPhillips – slide 12
    Lower-Risk International Position Majority of production in long-lived assets in OECD countries 4 6% production CAGR expected from high-return major projects Technical capabilities in conventional, deepwater, LNG, unconventional…
  13. April 2012 Investor Update – ConocoPhillips – slide 13
    Compelling Near-Term Growth Projects Five high-margin projects will account for 550+ MBOED by 2016 Lower-risk geographies and geologies; diversified plays Production MBOED Canada North Sea 600 SAGD conventional 80 MBOED 90 MBOED…
  14. April 2012 Investor Update – ConocoPhillips – slide 14
    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; 2.3 B investment; 50%+ return Average cash margin: 48/BOE1; average F&D:…
  15. April 2012 Investor Update – ConocoPhillips – slide 15
    Eagle Ford Excellence Best-in-play results driven by acreage quality, drilling and completion performance Average Eagle Ford Well BOED Spud to Rig Release Days per 10,000 Feet 800 40 700 38 35 600 COP 30 500 29 25 26 26 400…
  16. April 2012 Investor Update – ConocoPhillips – slide 16
    Permian Emerging Liquids Growth 1.1 MM net acres in liquids-rich play (60% liquids) with 1.1 BBOE resources 2012 program: over 300 wells; 0.6 B investment; 40%+ return Average cash margin: 38/BOE1; average F&D: 16/BOE Exposure in…
  17. April 2012 Investor Update – ConocoPhillips – slide 17
    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 wells; 0.5 B investment; 25%+ return Average cash margin: 53/BOE2; average F&D: 24/BOE Managed…
  18. April 2012 Investor Update – ConocoPhillips – slide 18
    Canada SAGD World-Class Assets 2012 program: 2.3 B investment; average project returns of 13%+ Average cash margin: 44/BOE1; average F&D: 11/BOE Repeatable manufacturing improves capital efficiency and time to first oil Opportunity…
  19. April 2012 Investor Update – ConocoPhillips – slide 19
    Jasmine Phase 1 2 of 8 production wells drilled; subsurface results exceed expectations 2012 program: 0.4 B investment; project returns of 23%+ Average cash margin: 40/BOE1; project F&D: 22/BOE Additional near-field potential…
  20. April 2012 Investor Update – ConocoPhillips – slide 20
    Greater Ekofisk Area New Opportunity First Eldfisk II well completed Q1 2012; Ekofisk South progress on target 2012 program: 1.0 B investment; project returns of 22% Average cash margin: 42/BOE1; projects F&D: 24 27/BOE Future…
  21. April 2012 Investor Update – ConocoPhillips – slide 21
    Malaysia Projects Deepwater Growth Includes 3 sanctioned projects, with 4th sanction expected mid-2012 2012 program: 0.5 B investment; project returns of 17 20% Average cash margin: 56/BOE1; projects F&D: 23/BOE Appraisal and…
  22. April 2012 Investor Update – ConocoPhillips – slide 22
    Australia Pacific LNG Project Update Completed marketing for first two 4.5 MTPA LNG trains On schedule with first cargo targeted for June 2015 2012 program: 2.0 B investment; full-cycle project returns of 8 10% Average cash margin:…
  23. April 2012 Investor Update – ConocoPhillips – slide 23
    2012 2016 Growth Summary Compelling growth post-repositioning Production MMBOED 1.8 0.2 0.4 1.5 * Executing visible growth projects 0.4 1.2 0.6 High-return, lower-risk opportunities 0.9 0.6 Shift to liquids 0.3 - 2012 2014…
  24. April 2012 Investor Update – ConocoPhillips – slide 24
    2016+ Growth From Captured Resources Exploration & BD Resources 35 BBOE Expect to convert 8-10 BBOE to proved 43 BBOE Proved reserves over next 10 years Reserves 8 BBOE 25
  25. April 2012 Investor Update – ConocoPhillips – slide 25
    Exploration-Driven Long-Term Growth Unconventional exploration North America: added 600,000 net acres in liquids-rich plays in 2011 (including Niobrara and Wolfcamp) North America: pilot programs in 7 plays Australia: early entry…
  26. April 2012 Investor Update – ConocoPhillips – slide 26
    2012 Exploration and Appraisal Activity Diverse portfolio of conventional and liquids-rich unconventional Greenland: Baffin Bay seismic Alaska: Chukchi Sea Norway: Barents Sea Arctic North Sea: Triassic HPHT wildcat U.S.: Eagle…
  27. April 2012 Investor Update – ConocoPhillips – slide 27
    Our Value Proposition Sector-leading distributions 3 5% annual production growth 3 5% annual margins growth Ongoing priority to improve returns Relentless focus on safety and execution Unique combination of growth, returns and…
  28. April 2012 Investor Update – ConocoPhillips – slide 28
    High-Quality, Lower-Risk Upstream Portfolio Alaska 210 MBOED Arctic Technical Europe Canada Leadership 240 MBOED 27% 260 MBOED Assets That Keep 6 BBOE Tale of Two On Giving Mega-Assets 10% 40% 19 BBOE 2 BBOE Russia, Caspian,…
  29. April 2012 Investor Update – ConocoPhillips – slide 29
    Lower 48 Widely recognized leader in onshore shale revolution and expanding footprint in deepwater GOM Early mover in new unconventional plays Production MBOED Directing capital to high-margin assets: 600 Eagle Ford, Permian,…
  30. April 2012 Investor Update – ConocoPhillips – slide 30
    Canada Premier position in SAGD and large western Canada portfolio with liquids-rich potential Portfolio of low-F&D SAGD projects in Production MBOED Foster Creek, Christina Lake and Surmont 300 Directing capital to liquids-rich…
  31. April 2012 Investor Update – ConocoPhillips – slide 31
    Alaska Leading oil producer in resource-rich North Slope and recognized leader in arctic technology Focus on further developing core Production MBOED assets: Prudhoe, Kuparuk and Alpine 200 Significant additional investment…
  32. April 2012 Investor Update – ConocoPhillips – slide 32
    Europe 40 years experience in high-margin North Sea; 40 more years to go Focus on further developing core assets: Greater Ekofisk, J Block, Clair, Britannia, Production MBOED Alvheim and Heidrun 300 Execute on near-term,…
  33. April 2012 Investor Update – ConocoPhillips – slide 33
    Asia Pacific Emerging positions in high-value growth markets with renewed focus on exploration Focus on further developing assets in China, Production MBOED Indonesia and Australia 400 Execute on growth from APLNG and Malaysia…
  34. April 2012 Investor Update – ConocoPhillips – slide 34
    Russia/Caspian/Africa/Middle East Stable base with exploration options Efficient operations of all current assets Production MBOED Explore in Angola Blocks 36/37 200 30% operated WI, adjacent to recent Cameia discovery, 3-D seismic…
  35. April 2012 Investor Update – ConocoPhillips – slide 35
    North American Shale Plays Accessing and testing many high-quality, high-value, liquids- rich plays Added 600,000 net acres in North Canol America in 2011 Horn River Material working interest in liquids- Montney rich…
  36. April 2012 Investor Update – ConocoPhillips – slide 36
    International Shale Plays International shale plays offer low- cost entry for large acreage positions Australia Frontier shale play with significant liquids potential Farm-in to New Standard Energy assets Canning Basin (option for…
  37. April 2012 Investor Update – ConocoPhillips – slide 37
    Deepwater GOM and Angola Portfolio with exploration, appraisal, COP leases and new leasing opportunities Lower Tertiary Play Shenandoah Deepwater Gulf of Mexico 2011/2012 leasing Lease Sale 218, won top block in sale and 75% of…
  38. April 2012 Investor Update – ConocoPhillips – slide 38
    Conventional North Sea and Caspian Rigorous portfolio high-grading for the best conventional opportunities Lacewing Norway North Sea Lacewing Blocks 23/21, 23/22a&b United Kingdom 37% operated WI Jasmine North Sea Analogous to…
  39. April 2012 Investor Update – ConocoPhillips – slide 39
    Arctic Europe and Alaska Diverse portfolio avoiding most technically challenging ice conditions PL615 Barents Sea Skrugard PL605 151 M net acres Norway PL605 50% operated WI, PL615 25% WI Russia 2011 proprietary high-quality 3-D…
  40. April 2012 Investor Update – ConocoPhillips – slide 40
    LNG Asia Pacific Exploring internationally for high- Caldita-Barossa value gas opportunities Bayu-Undan Browse Basin Blocks WA-315 & 398-P Browse Blocks 869 M net acres 60% operated WI in both AUSTRALIA 2009 Poseidon discovery…
  41. April 2012 Investor Update – ConocoPhillips – slide 41
    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…
  42. April 2012 Investor Update – ConocoPhillips – slide 42
    COP Non GAAP Reconciliation Return on Capital Employed (ROCE) Millions except as indicated 2010 2011 Numerator: E&P segment net income 9,251 8,303 After-tax interest expense 91 79 E&P segment GAAP ROCE earnings 9,342 8,382 Less:…

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