Strategy on a Page Disciplined and Resilient, Yet Flexible 60/BBL Value-based cash flow allocation Maintain discipline on costs and capital Strong balance sheet Our goal is to deliver Cash flow allocations balanced 50-60/BBL…
The Case For ConocoPhillips Transformation Acceleration Differentiation Reduced breakeven price 16B asset sale program2 Focused on free cash flow from 75/BBL…
The Plan We Presented in November Achieved All Priorities by 2019 Estimated Sources and Uses of Cash (2017-2019) at 50/BBL Brent Leverage Cash Allocated to Maximize 50/BBL to Upside Brent Total Shareholder Returns Modest…
Announced Transactions Achieves Priorities in 1 Year Estimated Sources and Uses of Cash (2017-2019) at 50/BBL Brent Leverage Contingent to Upside payment & 50/BBL Cash Allocated to Maximize Additional Disps. Total Shareholder…
Disciplined, Returns-Focused Strategy Tied to Financial Priorities Generate free cash flow Low breakeven price Low capital intensity Differential upside as prices recover Maintain a strong balance sheet Balance sheet a…
Prepared for Commodity Cycles Replacing Base Decline…
Reduce Debt to 20 Billion in 2017 and 15 Billion in 2019 DELEVERAGING Planned Maturity Profile ACHIEVED 6 Maturities retired by YE…
Highly Differentiated Shareholder Payout Shareholder Yield from Peers Dividend Yield + 2017 Announced Share Repurchases Current dividend can withstand low 2.3% 5.2% prices, with room for annual increases Targeting annual growth in…
Returns Matter. A Lot. Absolute Improvement in ROCE Consensus 2016 to 2017 Differential improvement in returns 10% as prices recover 7% 5% Significant, sustainable cost 4% reductions mitigate impact of lower prices 4% 4%…
Financial Priorities Make ConocoPhillips Truly Distinctive Managing the business to generate free cash flow Low breakeven price Low capital intensity Significant upside as prices recover Viable plan to strengthen balance sheet…
Reset the Base; Maintaining Portfolio Strength 2017 Estimated Pro Forma Metrics1 Post Canadian Transaction Post Canadian and San Juan Pre-Transactions (Announced March 29, 2017) Basin Transactions 2017 NAR Production 1,540 1,570…
Announced Transactions Reduce Average Cost of Supply to 35/BBL Impact of Transactions on Resource 14 BBOE with Cost of…
Fully Burdened Cost of Supply: Everything Including the Kitchen Sink Fully Burdened Cost of Supply by Component (/BBL) Cost of supply represents the flat, real commodity price that yields an after-tax return of 10% on a point-…
Low Cost of Supply Portfolio = High-Return Investment…
Our Portfolio is Designed to Create Strategic Flexibility Stay-Flat Capital Production Over Time 14 BBOE Resources 5-Year Capital Flexibility 35/BBL Average Cost of Per Year Supply1 100% Exploration 1B 6 BBOE Unconventionals…
Power of Diversification: Predictable LNG and Oil Sands Portfolio 14 BBOE Resources Production Over Time 35/BBL Average Cost of Supply1 Flat production for decades with low sustaining capex Unconventional 6 BBOE Megaproject…
Oil Sands & LNG: Projects Complete and Ramping APLNG: Two Train Delivery APLNG APLNG Net Production Train 1 performance exceeding design nameplate (MBOED) capacity Australia 100 Train 2 first production achieved in September 2016…
Power of Diversification: Low-Risk Conventional Portfolio Production Over Time 14 BBOE Resources 35/BBL Average Cost of Supply1 Short-cycle development drilling in Unconventional 6 BBOE legacy assets expected to add 140 MBOED…
New Conventional Projects: Low-Risk, High-Value, Weve Got It Alaska CD5 / DS-2S 1H NEWS / GMT1 GMT2 Europe Ekofisk South Clair Ridge Aasta Hansteen Tor II 130 MBOED INCREMENTAL PRODUCTION APME Bohai / Gumusut Malikai Bohai 3 Suban…
Power of Diversification: Low-Risk Unconventional Portfolio 14 BBOE Resource Production Over Time 35/BBL Average Cost of Supply1 Flexible source of production growth Unconventional 6 BBOE Industry-leading returns Optimizing…
Eagle Ford: Match and Raise Our Eagle Ford is Best in Class Significant Remaining Resource with Low Cost of Supply ConocoPhillips Eagle Ford Acreage Position Optimal Optimal 3 BBOE T TeE xX AaS s Gonzales Spacing & Completions…
Eagle Ford: Measured Pace Pays Off Texas Gonzales Bexar Medina TEXAS Wilson De Witt Eagle Ford Frio Atascosa Karnes Goliad Bee La Salle McMullen Live Oak ConocoPhillips Acreage 3,500 REMAINING…
Eagle Ford: Advanced Technical Analysis Increases EUR and Returns Pilot Stimulated Rock Volume (SRV) Time-Lapse Geochemistry What We Utilized cores, image logs, in-well and cross- Gathered extensive database of oil samples over past…
Eagle Ford: NPV of Learning Curve NPV of Acceleration Customized Spacing and Stacking to Geology 2014 vs. 2016 Completion Design Testing the Austin Chalk 7.5 MMlbs 15.5 MMlbs Upper Eagle Ford Lower Eagle Ford 100 Clusters 300…
Bakken: Increasing EUR While Driving Down Costs Lowest Well Cost/BOE1 Middle Bakken 300 2014-2015 Completion Optimization 40% Well Cost (/BOE) Cumulative Oil 200 INCREASE (MBO) 100 0 0 100 200 300 400 Days Online…
Permian: We Have a Shiny Object, Too Competitive Permian Basin Position with 1 MM Acres NW Shelf and Midland Basin Central Basin Platform Midland 163 M net acres Basin Legacy conventional position and emerging unconventional…
Delaware: 1.8 BBOE Resource and Just Getting Started Wolfcamp 1 6 Month Cum. (MBOE) ConocoPhillips Focus Areas Coring Up Multi- 1.8 BBOE 80% Acreage for Zone Net Resource INCREASE IN 10,000 laterals…
Announced Transactions Achieves Priorities in 1 Year Estimated Sources and Uses of Cash (2017-2019) at 50/BBL Brent Leverage Contingent to Upside payment & 50/BBL Cash Allocated to Maximize Additional Disps. Total Shareholder…
Core Portfolio Strength + Transformational Transactions Low cost, low capital intensity high-margin portfolio 14 BBOE of resource…
Appendix
YTD Announced Transaction Metrics Full-Year 2017 Estimated Disposition Impacts Canadian San Juan Basin Post-Transactions Pre-Transactions Disposition Disposition Pro Forma1 Full-Year 2017 Production 1,540-1,570 MBOED 280 MBOED 115…
2017 Annualized Net Income Sensitivities 45-65/BBL Brent Full-Year Pre-Transactions Full-Year Post-Transactions Pro Forma Crude Crude Brent/ANS: 100-120MM for 1/BBL change Brent/ANS: 100-120MM for 1/BBL change WTI: 30-40MM for…
2017 Annualized Cash Flow Sensitivities Full-Year Pre-Transactions Full-Year Pro Forma Post-Transactions CFO from Consolidated Operations (45-65/BBL Brent) CFO from Consolidated Operations (45-65/BBL Brent) Crude Crude: Brent/ANS:…
Investor Information Stock Ticker Investor Relations Contacts: NYSE: COP Telephone: +1 281.293.5000 Website: www.conocophillips.com/investor Ellen DeSanctis: ellen.r.desanctisconocophillips.com Andy OBrien:…
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