Second quarter 2018 earnings call Neil Hansen Vice President, Investor Relations and Secretary July 27, 2018
Developments since first quarter 2018
Second quarter 2018 earnings results
Upstream earnings 2Q18 vs. 1Q18 3,497 (420) (180) (210) 3,040 Millions of Dollars 540 (190) Earnings decreased by 457 million Crude realizations up 13%, consistent with markers Other volume driven by seasonally lower gas demand in…
koebd 3,889 (210) (15) 3,647 45 (65) Upstream volumes 2Q18 vs. 1Q18 Liquids essentially flat, Natural gas down 14% (-238 koebd) Downtime mainly driven by scheduled maintenance in Canada European gas demand down seasonally Growth in…
Upstream earnings 2Q18 vs. 2Q17 1,184 2,380 (120) (230) 3,040 Millions of Dollars (170) Earnings increased by 1.9 billion Crude realizations up 49%, consistent with markers Other volume driven by lower entitlements from higher…
Upstream volumes 2Q18 vs. 2Q17 koebd 3,922 (120) (75) 3,647 Liquids down 3% (-57 kbd), Natural gas down 13% (-218 koebd) Lower entitlements with higher prices; portfolio highgraded through divestments Increase in downtime largely…
940 630 50 724 (210) (30) (620) Millions of Dollars Downstream earnings 2Q18 vs. 1Q18 Earnings decreased by 216 million Stronger margins in NA and Europe on seasonal demand, maintenance, and Brent-WTI spread Growth in sales,…
1,385 260 100 724 (240) (130) (620) Millions of Dollars Downstream earnings 2Q18 vs. 2Q17 Earnings decreased by 661 million Stronger margins in NA, capturing benefit of increased regional crude differentials Growth in sales,…
Chemical earnings 2Q18 vs. 1Q18 Millions of Dollars Earnings decreased by 121 million Weaker margins on higher feed and energy costs Higher volumes from Mont Belvieu, Jurong Aromatics, and absence of Yanpet turnaround Unfavorable…
Chemical earnings 2Q18 vs. 2Q17 Millions of Dollars Earnings decreased by 95 million Weaker margins on higher feed and energy costs Volumes up due to Mont Belvieu start-up, Jurong Aromatics, and strong demand
Second quarter 2018 financial results 1 Includes Proceeds associated with Asset Sales of 0.3B; see slide 14 2 See Supplemental Information
2018 sources and uses of cash Key Themes First half cash flow from operations and asset sales used to fund investments and shareholder distributions, and reduce debt Second quarter PP&E Adds / Investments and Advances included…
Second quarter 2018 management perspectives Neil Chapman Senior Vice President
Reconnect to March Analyst Meeting LNG Guyana, Brazil Deep water Unconventional U.S. tight oil PNG, Mozambique Strongest portfolio of opportunities since the merger Attractive across range of prices All producing by 2025 50% of 2025…
Guyana: continued exploration success Liza Ph 1 Turbot + Potential Production KBD gross Payara Liza Ph 2 Recoverable resource increased to 4 BOEB 8th discovery on Stabroek block: Longtail Third rig mobilizing in October Potential for…
Brazil: high-quality resource potential Source: Wood Mackenzie Net acreage positions YE 2017 1H 2018 Completed purchase of interest in BM-S-8 High-quality, 2 billion barrel Carcara field (gross) 10% return at 40/bbl Encountered oil…
Unconventional: growing U.S. liquids 30% increase vs. 2Q17 Permian1 and Bakken production KOEBD net Permian production growth up 45% vs. 1Q Over 50 new wells on-line in quarter Currently 34 operated rigs in Permian Secured crude…
LNG: progressing world-class opportunities Mozambique Coral Floating LNG progressing on schedule Co-venture agreement for 2 x 7.6 MTA on-shore trains Development plan submitted Targeting FID in 2019 with first LNG in 2024 Marketing…
Other highlights 1 Completed in first quarter 2018
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