2019 Capital Budget & Operating Plan Supplemental Information & Investor Update DECEMBER 2018
2019 Capital Budget & Operating Plan 2019 Highlights Capital (B) Production (MBOED) Pro-forma 1,300 - 1,350 6.11 6.1 1,260 - 1,270 Pro-forma for Capital flat to 2018E1 Corp & Other Corp & Other announced 25 APME acquisitions and…
2019 Capital Allocation Underscores Low-Risk, High-Value Portfolio 2019 Capital Allocation LNG & Oil Sands 100% 40-50 Exploration 70% directed toward Major Projects development programs 75% Unconventional 30-40 70% to be spent…
Recommitting to Our Priorities & Portfolio
2018 Highlights Provide Strong Momentum for 2019 Operating Plan Market Accelerated Strengthened Strengthened Fundamentals Returns Balance Sheet Portfolio Ongoing price Increased dividend by Achieved 15B debt 16 BBOE resource base…
New Order Value Proposition Is Right For the Business Were In Todays E&P Industry Is Capital Intensive Mature Cyclical To Win, A Strategy Framework Must Address These Realities What portfolio do we How do we allocate How do we…
Our Value Proposition Delivers Superior Returns Through Cycles THE RIGHT PORTFOLIO CONSISTENT PRINCIPLES DISCIPLINED PRIORITIES Invest capital to sustain Low Returns Focused 1st production and pay Low Cost RETURNS PRIORITY…
Our Value Proposition Delivers Superior Returns Through Cycles RESILIENCE, WITH UPSIDE ConocoPhillips Works ConocoPhillips Works at Lower Prices at Higher…
Growing Resource Base, While Lowering Cost of Supply Low Cost of Supply1 Resource Base YE2018 Resource…
Peer-Leading Sustaining Price: Key to New Order Value Proposition Cash Sources Cash Uses…
2019 Plan Advances High-Impact Opportunities Willow Bohai Phase 4 2019 appraisal drilling to assess project size Expect FID in 2019 Montney QG Expansion Progress multi-well Decision expected by appraisal drilling mid-2019 Lower 48…
Alaska: Significant Future Exploration & Appraisal Planned 2019 Program Focused on Existing Discoveries 2020+ Program Focused on Remaining Potential Resolve Remaining Uncertainties to Sanction Test Full Prospect Inventory N AT I O N A…
2019 Montney Appraisal: Expanded Liquids-Rich Resource Base 2013 COP acreage 2013-2017 acquisitions 2018 acquisitions 14-well pad to be drilled and completed in 2019; 2017 appraisal wells testing well spacing and stacking 14-well…
2019 Lower 48 Big 3 Unconventionals: Maximizing Value Big 3 Production1 (MBOED) 350 25% CAGR BIG 3 PRODUCTION 2017 to 2019 295 Significant outperformance in 2018 vs 217 2017 AIM Expect to run 10-11 operated rigs Willing to…
Continuous Learning & Optimization of Completions Drives Value Evolution of ConocoPhillips Eagle Ford Completion Design Eagle Ford Cumulative Production1 Vintage 1 Vintage 2 Vintage 3 Vintage 4 2012 2014 2016 2017+ 400 Vintage 4…
Louisiana Austin Chalk: Emerging Liquids Play Currently hold 225 M net acres; acquired MS TEXAS LA…
2019 Cash Sources & Uses at 50/BBL WTI
2019 Plan at 50/BBL: Commitment to Shareholder Payout Estimated Sources and Uses of Cash (2019) at 50/BBL WTI Starting Cash1 & Proceeds2 50% 4B Available Cash CFO return to shareholders Investment for CFO Expansion (2.3B)…
Production & Margin Growth Drive Cash Flow Expansion Cash Flow Sensitivities for 1/BBL Change 265MM WCS Cash flow price sensitivity 235MM 5% NA Gas L48 NGL increased 30MM per WCS NA Gas 7% Margin WTI 1/BBL change driven by: L48…
Appendix:
2019 Annualized Cash Flow Sensitivities Consolidated Operations Equity Affiliates1 (45-65/BBL WTI) (50-70/BBL Brent) Crude Expect distributions from all equity affiliates at 45/BBL Brent Brent/ANS: 155-165MM for 1/BBL change WTI:…
Non-GAAP Reconciliation Reconciliation of Capital Expenditures and Investments to Sustaining Capital ( Billions) 2019 Guidance Capital Expenditures and Investments 6.1 Growth Capital (Future Major Projects, Exploration and…
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