SECOND QUARTER 2019 RESULTS 08.02.19 NEIL HANSEN VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY RESTRICTED DISTRIBUTION UNTIL August 2, 2019 7:00am 8/1/2019 5:07 PM
FIRST HALF 2019 MOMENTUM FIRST HALF 2019 MOMENTUM 3
SECOND QUARTER 2019 KEY MESSAGES SECOND QUARTER 2019 KEY MESSAGES 4 1 See Supplemental Information for reconciliation and definition
DEVELOPMENTS SINCE FIRST QUARTER 2019 DEVELOPMENTS SINCE FIRST QUARTER 2019 5
EARNINGS 2Q19 VS. 1Q19 EARNINGS 2Q19 VS. 1Q19 6 Upstream: higher liquids realizations and one-time tax items, partly offset by lower natural gas prices Downstream: improved fuels margins, North American crude differentials, and…
UPSTREAM VOLUMES UPSTREAM VOLUMES Year-over-year volumes increased by 7% Growth driven by Permian (+129 Koebd, +89%), Hebron, and Kaombo Lower maintenance in Canada and absence of PNG earthquake Stronger seasonal gas demand in…
SECOND QUARTER 2019 CASH PROFILE SECOND QUARTER 2019 CASH PROFILE Cash flow from operating activities reflects industry market conditions Working capital/other driven by seasonal payables and non-cash tax items Asset-marketing…
CASH FLOW PERSPECTIVE CASH FLOW PERSPECTIVE Current margin environment consistent with historical experience and anticipated scenarios Recent chemical and refining start-ups accretive to earnings and cash flow Financial strength…
THIRD QUARTER 2019 OUTLOOK THIRD QUARTER 2019 OUTLOOK 10
THIRD QUARTER 2019 OUTLOOK THIRD QUARTER 2019 OUTLOOK 11 CHEMICAL SCHEDULED MAINTENANCE QUARTERLY EARNINGS IMPACT2 Million USD DOWNSTREAM SCHEDULED MAINTENANCE QUARTERLY EARNINGS IMPACT1 Million USD 1 Future estimates based on July…
MANAGEMENT PERSPECTIVES NEIL CHAPMAN SENIOR VICE PRESIDENT
SECOND QUARTER PERSPECTIVES SECOND QUARTER PERSPECTIVES 13 Industry refining margin1 /bbl 1 Source: S&P Global Platts Analytics, equal weighting of U.S. Gulf Coast (Maya Coking), Northwest Europe (Brent Catalytic Cracking), Singapore…
MAJOR GROWTH PROJECTS ON SCHEDULE MAJOR GROWTH PROJECTS ON SCHEDULE 14
Bakken Permian UNCONVENTIONAL BUSINESS UPDATE PERMIAN AND BAKKEN PRODUCTION, 2019 OUTLOOK1 Koebd net See Supplemental Information 1 Potential production as communicated at 2019 Investor Day Permian includes Midland and Delaware basins…
GUYANA UPDATE First FPSO Liza Destiny (120 Kbd) en route to Guyana 1Q 2020 start-up Liza Phase 2 (220 Kbd) completed FID in May On schedule for 2022 start-up Three discoveries in 1H19 Recoverable resource up from 5.5. to 6+ Boeb…
UPSTREAM PORTFOLIO MANAGEMENT UPSTREAM PORTFOLIO MANAGEMENT 17 2019 2021 divestment plan Highgrading portfolio based on strategic fit, materiality, and growth potential Anticipate asset sales of 15G by end of 2021 Marketing…
Baytown/Mont Belvieu steam cracker/polyethylene Started up 2017/18 Baytown exceeding design capacity by 10% Beaumont polyethylene started up July 2019 Ahead of schedule Performance polyethylene: higher margin vs. commodity 2Q19…
KEY MESSAGES KEY MESSAGES 19
Q&A
UPSTREAM VOLUMES 2Q19 VS. 1Q19 Higher scheduled maintenance at Kearl, Qatar, and Kashagan Growth includes increased U.S. unconventional liquids and Hebron ramp-up Permian production increased 48 Koebd (21%) Lower European seasonal…
UPSTREAM EARNINGS 2Q19 VS. 1Q19 UPSTREAM EARNINGS 2Q19 VS. 1Q19 22 Higher liquids realizations offset by lower gas prices Liquids growth offset by increased scheduled maintenance and lower seasonal gas demand Other includes one-time…
UPSTREAM EARNINGS 2Q19 VS. 2Q18 UPSTREAM EARNINGS 2Q19 VS. 2Q18 23 Lower liquids and gas realizations Growth in Permian and Hebron, higher seasonal gas demand, and absence of downtime in Canada and PNG Other includes one-time tax…
DOWNSTREAM EARNINGS 2Q19 VS. 1Q19 DOWNSTREAM EARNINGS 2Q19 VS. 1Q19 24 Stronger industry fuels margins in North America Increased North American crude differentials Absence of first quarter unfavorable mark-to-market derivative…
DOWNSTREAM EARNINGS 2Q19 VS. 2Q18 DOWNSTREAM EARNINGS 2Q19 VS. 2Q18 25 Lower industry refining fuels and basestocks margins Higher scheduled maintenance, partly offset by improved reliability Portfolio improvements with recent major…
CHEMICAL EARNINGS 2Q19 VS. 1Q19 CHEMICAL EARNINGS 2Q19 VS. 1Q19 26 Weaker paraxylene margins with lengthening supply on industry capacity additions Higher scheduled maintenance 518 188 EARNINGS Million USD (180) (120) (30) Maintenance
CHEMICAL EARNINGS 2Q19 VS. 2Q18 CHEMICAL EARNINGS 2Q19 VS. 2Q18 890 188 EARNINGS Million USD (440) (120) (30) Lower margins due to lengthening supply Higher scheduled maintenance Higher expenses related to growth projects Other…
SECOND QUARTER IDENTIFIED ITEMS 28 SECOND 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…
SUPPLEMENTAL INFORMATION 29 SUPPLEMENTAL INFORMATION The following information provides a more detailed view of the factors portrayed on slides 7 and 21. Other includes Entitlements / Divestments and Demand / Other, below.
SUPPLEMENTAL INFORMATION 30 SUPPLEMENTAL INFORMATION 1 Includes PP&E Adds of (6.2B) and net investments/advances of (0.7B) for 2Q19; includes PP&E Adds of (5.2B) and net investments/advances of (0.7B) for 1Q19; includes PP&E Adds of…
SUPPLEMENTAL INFORMATION 31 SUPPLEMENTAL INFORMATION DOWNSTREAM EARNINGS Billion USD CHEMICAL EARNINGS Billion USD
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