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October 2015 Investor Overview – ConocoPhillips

ConocoPhillips · Oct 20, 2015 · 45 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. October 2015 Investor Overview – ConocoPhillips – slide 1
    Investor Overview Last updated: Oct. 20, 2015
  2. October 2015 Investor Overview – ConocoPhillips – slide 2
    Company Overview 1,595 MBOED Production1 2Q15 North Diversified asset base with significant scope and scale American 24% Liquids Gas Multiple sources of growth LNG + Large inventory of low cost of supply opportunities International…
  3. October 2015 Investor Overview – ConocoPhillips – slide 3
    Core Energy Holding Compelling dividend + Affordable growth + Financial strength 4
  4. October 2015 Investor Overview – ConocoPhillips – slide 4
    ConocoPhillips Leading Through Industry Downturn Deeper downturn than expected 120 Exercised capital flexibility, especially 100 Anticipated 2015 in Lower 48 unconventionals Capex of 16.5B 80 Aggressively reduced operating…
  5. October 2015 Investor Overview – ConocoPhillips – slide 5
    All Time Horizons Matter Short Term Medium Term Long Term Safely execute the Meet cost targets Maintain capital business across the business flexibility Deliver current year Maintain balance sheet Shorten investment plan for…
  6. October 2015 Investor Overview – ConocoPhillips – slide 6
    Leading in Volatile Times External Average Brent Price Probabilities1 350 300 p100 Uncertainty about future prices Real 2015 per Barrel 250 200 150 p90 Prepared for lower mid-cycle 100 MEAN prices with more volatility 50…
  7. October 2015 Investor Overview – ConocoPhillips – slide 7
    Winning Portfolio: Increasing Flexibility and Returns, Decreasing Cost of…
  8. October 2015 Investor Overview – ConocoPhillips – slide 8
    Diverse, Flexible, Low Cost of Supply Capital Allocation % Capital Allocation Example Total Resources 44 BBOE 100% Oil Sands LNG Europe Today Proved Flexible Reserves APME Development Unconventional Canada Alaska Unsanctioned…
  9. October 2015 Investor Overview – ConocoPhillips – slide 9
    What Wins in a Lower, More Volatile Price Environment Asset Characteristics Role in Portfolio Stable source of funding to Diverse, low-decline base sustain dividend Investment returns resilient Low cost of supply to lower…
  10. October 2015 Investor Overview – ConocoPhillips – slide 10
    Lower 48 Unconventionals: Prudent Pace Preserves Value & Optionality Priority on protecting value Reducing Cost of Supply Prudent to defer programs in current market Drilling & Completions Efficiency Expect to ramp up activity as…
  11. October 2015 Investor Overview – ConocoPhillips – slide 11
    Eagle Ford: Industry-Leading Performance LOWEST COST OF SUPPLY 220 M net acres; 2.5 BBOE net Lowest Cost of Supply2 Highest NPV per Acre3 resource1 70 90 80 60 Developing on 80-acre high/low 70 spacing WTI Breakeven…
  12. October 2015 Investor Overview – ConocoPhillips – slide 12
    Bakken: Growth from Highest Value Part of Play 620 M net acres; mostly HBP or mineral fee 0.6 BBOE net resource1 Developing at 160-acre combined spacing2 10 years of drilling inventory remaining MCKENZIE Average 5 operated rigs…
  13. October 2015 Investor Overview – ConocoPhillips – slide 13
    Permian Unconventional: Appraising Long-Term Opportunity High-graded acreage position NEW MEXICO 100 M net acres of stacked play opportunity TEXAS Midland 1 BBOE net resource1 25 years of drilling inventory remaining Average 2…
  14. October 2015 Investor Overview – ConocoPhillips – slide 14
    Western Canada: Appraising and Developing Unconventional Plays North Central South ConocoPhillips Acreage Mix of mature and emerging unconventionals Alberta 6,000 feet of stacked pay Applying learnings from Lower 48 Falher/…
  15. October 2015 Investor Overview – ConocoPhillips – slide 15
    Oil Sands: Surmont 2 Startup in 2015 FIRST OIL ACHIEVED IN 3Q15 First oil achieved in 3Q15 Total Surmont Capital Total Surmont Production Ramping up through 2017 1 80 Increases gross capacity to 150 MBOED 60 MBOED…
  16. October 2015 Investor Overview – ConocoPhillips – slide 16
    APME: Long-Term Cash Flow Generation from APLNG FIRST CARGO EXPECTED IN 4Q15 First cargo expected in 4Q15 APLNG Capital APLNG Production 120 2 Commenced loading refrigerants to LNG 100 facility in July 1.5 80 MBOED B…
  17. October 2015 Investor Overview – ConocoPhillips – slide 17
    Deepwater Exploration: Reducing Future Spend 2015 exploration and appraisal program Vernaccia spud in the Gulf of Mexico in 3Q15; Melmar and Gibson expected to spud in 4Q15 Appraisal activity ongoing at Gila, Shenandoah and Tiber…
  18. October 2015 Investor Overview – ConocoPhillips – slide 18
    Key Takeaways: Creating Value Through the Cycles Focused on short-, medium- and long-term horizons DIVIDEND REMAINS TOP PRIORITY Dividend is highest priority use of cash CASH FLOW Sustained cash flow neutrality at range of prices…
  19. October 2015 Investor Overview – ConocoPhillips – slide 19
    Annualized Net Income Sensitivities Crude Brent/ANS: 85-95MM for 1/BBL change WTI: 40-45MM for 1/BBL change WCS: 30-40MM for 1/BBL change North American NGL Representative blend: 5-10MM for 1/BBL change Natural Gas Henry Hub:…
  20. October 2015 Investor Overview – ConocoPhillips – slide 20
    2015 Outlook Guidance (as of 2Q15) Capital Expenditures of 11.0B DD&A of 9.0B Operating Costs of 8.9B Exploration Dry Hole and Impairment Expense of 0.8B Corporate segment net loss of 0.9B 22
  21. October 2015 Investor Overview – ConocoPhillips – slide 21
    Capital Allocation for a Lower, More Volatile Price Environment Prior Plan 16B/year Exploration Reduce & Re-allocate Execute Plan with Growing Flexibility Major Projects Strategy Drivers 11.5B 11.5B Exploration: Limiting new access…
  22. October 2015 Investor Overview – ConocoPhillips – slide 22
    Flexibility, Resilience and Growth for 11.5B 2-3% PRODUCTION GROWTH 2014-2015 Average Capital 11.5B Production 1.7 MMBOED 1.8 Exploration 1.5 MMBOED 1.6 Major Projects 1.4 1.2 MMBOED Development 1.0 0.8 0.6 0.4 Base…
  23. October 2015 Investor Overview – ConocoPhillips – slide 23
    Completion of Major Projects Increases Capital Flexibility 5 Projects in Execution 4 Canada 90% Future Major Projects COMPLETE Capital Spend (B) SURMONT 2 3 APLNG APME Canada Canada 2 APME APME Europe Europe 1…
  24. October 2015 Investor Overview – ConocoPhillips – slide 24
    Capital Flexibility Directed Toward Development Drilling 7 FLEXIBLE Other SHORT-CYCLE 6 LOW COST OF SUPPLY Other Canada Canada Permian 5 Permian Capital Spend (B) Canada Bakken Bakken 4 Permian Bakken 3 Eagle Ford Eagle…
  25. October 2015 Investor Overview – ConocoPhillips – slide 25
    Diversified, Low Cost of Supply Portfolio Delivering 1.7 MMBOED in 2017 2015-2017 Average Capital 11.5B Alaska Europe 11% of Production Alaska New projects Canada Europe APME offsetting decline 21% of 12% of Production Production…
  26. October 2015 Investor Overview – ConocoPhillips – slide 26
    Delivering Capital and Operating Cost Efficiencies Integrated Operations Centers Lowering Costs Operating Cost Reductions 80% 1B Production Under Management1 UK Australia Reduce lifting costs globally 60% Alaska Continue…
  27. October 2015 Investor Overview – ConocoPhillips – slide 27
    Aggressively Pursuing Operating Cost Reductions 2014 Operating Costs 9.7B Cost reduction programs underway to source 1B of reductions in 2016 compared to 2014 SG&A Exploration G&A and G&G Internal costs account for 1/3 of total…
  28. October 2015 Investor Overview – ConocoPhillips – slide 28
    On Track to Achieve Significant Savings in 2015+ Deflation Realized in-line with Expectations 870MM Savings Identified To Date1 600MM capital savings identified to date In Progress 8% Operating Other 10% Expense Final 31% Europe…
  29. October 2015 Investor Overview – ConocoPhillips – slide 29
    Capturing Benefit from Rapid Cost Deflation 9 Land Rigs LAG TIME Highly SHRINKING Stimulation Sensitive Shallow Well Services Water Rigs Midwater Floaters Tubulars Deepwater Rigs 6 Helicopters Sensitivity of Steel Activity…
  30. October 2015 Investor Overview – ConocoPhillips – slide 30
    Eagle Ford: Driving Drilling and Completion Efficiencies 2013 2015 Continued drilling and completion efficiencies Job Size Job Size 3.8 MM lbs 7.7 MM lbs Pilot studies optimizing recovery DEEP implementation to reduce drilling days…
  31. October 2015 Investor Overview – ConocoPhillips – slide 31
    Eagle Ford: Optimizing Field Development Through Pilot Programs Transition to High/Low Completed 2015: Testing Tighter Spacing and Triple Stack Development 2015 Pilot Program Focus Areas Triple stack pilot tests GR BVI 80-acre1…
  32. October 2015 Investor Overview – ConocoPhillips – slide 32
    Bakken: Optimizing Field Development Through Pilot Programs North Dakota Current Testing Tighter Spacing Evaluating Further Upside WILLIAMS MOUNTRAIL 160-acre1 in Bakken / 80-acre1 in Bakken/ Additional Wells in GR BVH Upper Three…
  33. October 2015 Investor Overview – ConocoPhillips – slide 33
    Canada: Growth from Two Vast Resource Positions 2017 Product Mix 1B capital focused on unconventionals and oil sands NGL 7% Exploration drilling offshore Nova Scotia Gas Shift to development programs as Surmont 2 completed 29%…
  34. October 2015 Investor Overview – ConocoPhillips – slide 34
    Asia Pacific & Middle East: High-Margin Growth Underway APLNG: Two 4.5 MTPA trains; long-term Asia sales 2017 Product Mix Beijing LNG Oil Bohai Bay Attractive opportunities in Malaysia 38% 27% CHINA High-return developments in…
  35. October 2015 Investor Overview – ConocoPhillips – slide 35
    Alaska: New Projects Maintain Strong Performance in Alaska Beaufort Product Mix - 2017 Beaufort Sea Sea LNG 2% 1H NEWS NGL Colville River Unit Alaska 6% CD5 Gas Oil DS-2S Prudhoe Bay Unit 87% GMT1 5% Nuiqsut Kuparuk River…
  36. October 2015 Investor Overview – ConocoPhillips – slide 36
    Europe: Optimizing Performance in Mature Assets PL720 PL615B 3 major project startups in 2015 2017 Product Mix PL615 PL603 PL718 PL218 Drilling from new infrastructure offsets decline NGL Barents Sea Heidrun 4% NORWAY Norwegian…
  37. October 2015 Investor Overview – ConocoPhillips – slide 37
    Growing Our Low Cost of Supply Resource Base 7 BBOE RESOURCE…
  38. October 2015 Investor Overview – ConocoPhillips – slide 38
    Conventional Resources: Substantial Inventory for Growth North Sea Aasta Conventional Resources Hansteen 24 BBOE 8.7 BBOE 60-75/BOE 45-60/BOE Alaska North Slope Clair Bohai Bay Proved Fiord West NEWS Bear CD5 China…
  39. October 2015 Investor Overview – ConocoPhillips – slide 39
    Unconventional Resources: Top-Tier, Low Cost of Supply Resource Unconventional Resources 25% of resources with cost of…
  40. October 2015 Investor Overview – ConocoPhillips – slide 40
    Unconventional Resources: Unlocking Upside with Technology Common Industry Interpretations Stimulated rock volume (SRV) drives production and recovery Logged and cored fracture-stimulated reservoir Results challenge common…
  41. October 2015 Investor Overview – ConocoPhillips – slide 41
    Oil Sands: Reducing Cost of Supply in Massive Captured Resource 12/BOE COST OF SUPPLY REDUCTION1 ALREADY PROVEN Targeting 25/BOE Reduction in Cost of Supply1 Oil Sands Resources 24 BBOE 5.2 BBOE 60-75/BOE 12/BOE Oil Sands…
  42. October 2015 Investor Overview – ConocoPhillips – slide 42
    Oil Sands: Technology and Optimization Reducing Cost of Supply Proven Technology and Optimizations In Development Technology and Optimizations Central Central Processing Processing Wells Wells 12 Facility 13 Facility /BOE…
  43. October 2015 Investor Overview – ConocoPhillips – slide 43
    LNG: Evaluating Monetization Opportunities Attractive options to backfill or expand LNG Resources Darwin LNG 24 BBOE 3.4 BBOE LNG 60-75/BOE Pre-FEED studies underway to commercialize 1 BBOE net of North Slope gas 45-60/BOE…
  44. October 2015 Investor Overview – ConocoPhillips – slide 44
    Global Deepwater: Developing Low Cost of Supply Discoveries 2015 Drilling Deepwater Resources Previous Drilling 24 BBOE 0.9 BBOE ConocoPhillips Lease 45-60/BOE Gila ConocoPhillips Prospect or Discovery Gibson Tiber…
  45. October 2015 Investor Overview – ConocoPhillips – slide 45
    Large, Diverse, Low Cost of Supply Resource Base YE 2014 Total Resource 44 BBOE Today 8.9 BBOE proved reserves Proved Reserves 16 year R/P from existing proved reserves…

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