FIRST QUARTER 2019 RESULTS 04.26.19 NEIL HANSEN VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
FIRST QUARTER 2019 KEY MESSAGES FIRST QUARTER 2019 KEY MESSAGES 3 1 Includes Proceeds Associated with Asset Sales; see slide 10 for reconciliation and Supplemental Information for definition 2 See Supplemental Information for…
DEVELOPMENTS SINCE FOURTH QUARTER 2018 DEVELOPMENTS SINCE FOURTH QUARTER 2018 4
UPSTREAM VOLUMES UPSTREAM VOLUMES 1Q19 vs. 4Q18 Volumes in line with fourth quarter Permian production increased by 36 koebd (19%), more than offset by Kearl and natural field decline Other includes higher European seasonal gas demand…
EARNINGS 1Q19 VS. 4Q18 EARNINGS 1Q19 VS. 4Q18 6 Upstream: fewer sales days, higher maintenance, and absence of various one-time items Downstream: narrowed differentials, lower refining margins, absence of asset sales, and derivative…
DOWNSTREAM EARNINGS 1Q19 VS. 4Q18 DOWNSTREAM EARNINGS 1Q19 VS. 4Q18 7 Absence of Germany and Augusta asset sales Narrowed North American differentials Lower industry refining margins with excess gasoline supply and tightened clean /…
CHEMICAL MARGIN ENVIRONMENT POLYETHYLENE SUPPLY/DEMAND GROWTH Mta Demand Growth CHEMICAL MARGIN ENVIRONMENT 9 Polyethylene (PE) demand remains strong, growing at 3.3% per year, 1.2 times global GDP Industry PE capacity additions…
FIRST QUARTER 2019 CASH PROFILE FIRST QUARTER 2019 CASH PROFILE 10 Working capital release driven by favorable seasonal payables balances Additions to PP&E in line with 2019 capex guidance Utilized strong financial capacity to…
SECOND QUARTER 2019 OUTLOOK SECOND QUARTER 2019 OUTLOOK 11
SECOND QUARTER 2019 OUTLOOK SECOND QUARTER 2019 OUTLOOK 12 Gas demand in Europe highly seasonal, driven by weather Second quarter gas demand lower by an average of 200 koebd relative to first quarter EUROPE GAS VOLUMES, 2Q vs. 1Q…
SECOND QUARTER 2019 OUTLOOK SECOND QUARTER 2019 OUTLOOK 13 Heavy turnaround activities in 2018/19, including preparation for IMO 2020 Impact from Downstream scheduled maintenance similar to first quarter Chemical scheduled…
MANAGEMENT PERSPECTIVES JACK WILLIAMS SENIOR VICE PRESIDENT
FIRST QUARTER PERSPECTIVES FIRST QUARTER PERSPECTIVES 15 Challenging Downstream and Chemical margin environment (verbalize) Committed to a reliable and growing dividend (verbalize)
Bakken Permian UNCONVENTIONAL BUSINESS UPDATE PERMIAN AND BAKKEN PRODUCTION, 2019 OUTLOOK1 Koebd net See Supplemental Information On plan to reach 1 Moebd by 2024 Advancing unique development across Midland and Delaware Extensive…
GUYANA UPDATE Adding to recoverable resource with successful exploration Yellowtail-1 well marked 13th discovery on Stabroek block Fifth discovery in Turbot area; major development hub, similar to Liza Adds to estimated 5.5 Boeb…
SINGAPORE RESID UPGRADE 90 kbd - High-sulfur fuel oil SINGAPORE RESID UPGRADE 18 Leverages proprietary process and catalyst technology to upgrade resid to higher-value products Refinery and chemical plant integration provides project…
FAWLEY HYDROFINER FAWLEY HYDROFINER 19 EM pipelines Fawley refinery Gatwick LHR / WLT EM terminals Increases production of higher-value products Strengthens integration with chemical operations Improves yield to better align with…
OPTIMIZING VALUE CHAIN OPTIMIZING VALUE CHAIN 20 Extensive network of assets spanning full value chain Leveraging asset-backed trading to maximize value as products move through value chain Optimizing investment in existing…
KEY MESSAGES KEY MESSAGES 21
Q&A
DOWNSTREAM MARGIN ENVIRONMENT DOWNSTREAM MARGIN ENVIRONMENT 23 North American differentials narrowed with increased takeaway capacity and production curtailments Industry margins declined as mogas oversupply more than offset strong…
UPSTREAM EARNINGS 1Q19 VS. 4Q18 UPSTREAM EARNINGS 1Q19 VS. 4Q18 24 Improved North American differentials more than offset lower crude and natural gas prices Higher maintenance and fewer sales days negatively impacted volumes Absence…
UPSTREAM EARNINGS 1Q19 VS. 1Q18 UPSTREAM EARNINGS 1Q19 VS. 1Q18 25 Lower crude prices partly offset by higher gas realizations Higher volumes with Permian growth and absence of downtime / maintenance, partly offset by lower European…
DOWNSTREAM EARNINGS 1Q19 VS. 1Q18 DOWNSTREAM EARNINGS 1Q19 VS. 1Q18 26 Lower industry refining fuels and basestocks margins Relative change in mark-to-market derivatives impacts Higher scheduled maintenance, partly offset by improved…
CHEMICAL EARNINGS 1Q19 VS. 4Q18 CHEMICAL EARNINGS 1Q19 VS. 4Q18 27 Lower realizations outpaced lower feed costs, with continued supply length Lower expenses with completion of scheduled maintenance Other reflects the absence of…
CHEMICAL EARNINGS 1Q19 VS. 1Q18 CHEMICAL EARNINGS 1Q19 VS. 1Q18 28 Lower margins due to lengthening supply Higher polyethylene volumes supported by new projects Unfavorable forex mainly due to weaker Euro Other items include higher…
FIRST QUARTER IDENTIFIED ITEMS 29 FIRST QUARTER IDENTIFIED ITEMS 1 Earnings excluding identified items are earnings excluding significant ( 250 million) non-operational events. We believe this information is useful to assist investors…
SUPPLEMENTAL INFORMATION 30 SUPPLEMENTAL INFORMATION The following information provides a more detailed view of the factors portrayed on slide 5. Other includes Entitlements / Divestments and Demand / Other, below.
SUPPLEMENTAL INFORMATION 31 SUPPLEMENTAL INFORMATION 1 Includes PP&E Adds of (5.2B) and net investments/advances of (0.7B) for 1Q19; includes PP&E Adds of (3.3 B) and net investments/advances of (0.0 B) for 1Q18; includes PP&E Adds…
Loading...
