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CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips

ConocoPhillips · Jun 1, 2012 · 42 slides

Investor presentation from the Shale Experts oil & gas presentation and slide database. Every page is imaged and its text indexed for search across operators, plays, basins and time.

Slides

  1. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 1
    Credit Suisse London Energy Conference June 2012 Ryan Lance Chairman & CEO
  2. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 2
    Our Priorities Continue focus on safety and Dividend Growth (cents/share) 66 operations excellence 47 50 55 41 36 31 Finish repositioning 25 20 22 Invest with discipline '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Production…
  3. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 3
    ConocoPhillips Today Largest North American-based independent Production 1.6 MMBOED (2011) Lower-risk, diversified international Liquids positions LNG + International Gas North American Gas Majors asset base with compelling…
  4. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 4
    Our Value Proposition Sector-leading distributions 3 5% annual production growth 3 5% annual margins growth Ongoing priority to improve returns Relentless focus on safety and execution 5
  5. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 5
    Disciplined Investment Approach Reinvest 75 80% of CFO for optimized Current Dividend Yield growth and returns 7.0% Sustainable production growth 5.5% 100%+ organic reserve replacement Build inventory of future investment options…
  6. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 6
    2012 2016 Production Growth Disciplined allocation of 15 B annual capex generates 3 5% CAGR with high margins and low risk Capital Production MMBOED Exploration Prepares 15% & Appraisal 2016+ Growth Major Projects * Provides…
  7. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 7
    2012 2016 Margin Improvement Shift to high-margin production drives 3 5% cash margin CAGR Production MMBOED Production and Margin Growth 2012 Flat-Price Conditions 2012 to 2016 L48 Liquids Production Growth MBOED Fields…
  8. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 8
    Focus on Returns Goal to continue absolute 2011 ROCE improvements Close gap and maintain strong relative position COP Upstream Estimate Capital allocated to highest-return projects Diligence on cost structure and…
  9. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 9
    Impactful North American Position Largest independent producer in North America 3 5% production CAGR projected from high-return programs Technical strengths in arctic, unconventional, heavy oil 2011 Production MBOED 2012 2016…
  10. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 10
    Lower-Risk International Position Majority of production in long-lived assets in OECD countries 4 6% production CAGR expected from high-return major projects Technical capabilities in conventional, deepwater, LNG, unconventional…
  11. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 11
    Compelling Near-Term Growth Projects Five high-margin projects will account for 550+ MBOED by 2016 Lower-risk geographies and geologies; diversified plays Production MBOED Canada North Sea SAGD conventional 80 MBOED 90 MBOED…
  12. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 12
    Eagle Ford Best Position in Best Play 228 M net acres in liquids-rich play (77% liquids) with 1.8 BBOE resources 2012 program: over 180 wells with 16 rigs; 2.3 B investment; 50%+ return 1 Average cash margin: 48/BOE2; average F&D:…
  13. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 13
    Eagle Ford Excellence Best-in-play results driven by acreage quality, drilling and completion performance Average Eagle Ford Well BOED Spud to Rig Release Days per 10,000 Feet COP Eagle Ford Average Eagle Ford…
  14. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 14
    Permian Emerging Liquids Growth 1.1 MM net acres in liquids-rich play (60% liquids) with 1.1 BBOE resources 2012 program: over 300 wells; 0.6 B investment; 40%+ return1 Average cash margin: 38/BOE2; average F&D: 16/BOE Exposure in…
  15. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 15
    Bakken Legacy Oil in Heart of Trend 207 M net lease / 419 M net mineral acres in oil play with 0.4 BBOE resources1 2012 program: over 120 wells; 0.5 B investment; 25%+ return 2 Average cash margin: 53/BOE3; average F&D: 24/BOE…
  16. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 16
    Canada SAGD World-Class Assets 2012 program: 2.3 B investment; average project returns1 of 13%+ Average cash margin: 44/BOE2; average F&D: 11/BOE Repeatable manufacturing improves capital efficiency and time to first oil Opportunity…
  17. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 17
    Jasmine Phase 1 2 of 8 production wells drilled; subsurface results exceed expectations 2012 program: 0.4 B investment; project returns1 of 23%+ Average cash margin: 40/BOE2; project F&D: 22/BOE Additional near-field potential…
  18. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 18
    Greater Ekofisk Area New Opportunity First Eldfisk II well completed Q1 2012; Ekofisk South progress on target 2012 program: 1.0 B investment; project returns1 of 22% Average cash margin: 42/BOE2; projects F&D: 24 27/BOE Future…
  19. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 19
    Malaysia Projects Deepwater Growth Includes 3 sanctioned projects, with 4th sanction expected mid-2012 2012 program: 0.5 B investment; project returns1 of 17 20% Average cash margin: 56/BOE2; projects F&D: 17/BOE Appraisal and…
  20. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 20
    Australia Pacific LNG Project Update Completed marketing for first two 4.5 MTPA LNG trains On schedule with first cargo targeted for June 2015 2012 program: 2.0 B investment; full-cycle project returns1 of 8 10% Average cash margin:…
  21. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 21
    2012 2016 Growth Summary Compelling growth post-repositioning Production MMBOED * Executing visible growth projects High-return, lower-risk opportunities Shift to liquids Margins expand from 27/BOE to Major projects…
  22. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 22
    2016+ Growth From Captured Resources Exploration & BD Resources 35 BBOE Expect to convert 8-10 BBOE to proved 43 BBOE Proved reserves over next 10 years Reserves 8 BBOE 23
  23. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 23
    Exploration-Driven Long-Term Growth Unconventional exploration North America: added 600,000 net acres in liquids-rich plays in 2011 (including Niobrara and Wolfcamp) North America: pilot programs in 7 plays Australia: early entry…
  24. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 24
    2012 Exploration and Appraisal Activity Diverse portfolio of conventional and liquids-rich unconventional Greenland: Baffin Bay seismic Alaska: Chukchi Sea Norway: Barents Sea Arctic North Sea: Triassic HPHT wildcat U.S.: Eagle…
  25. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 25
    Our Value Proposition Sector-leading distributions 3 5% annual production growth 3 5% annual margins growth Ongoing priority to improve returns Relentless focus on safety and execution Unique combination of growth, returns and…
  26. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 26
    Q&A
  27. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 27
    Additional Technical Slides Regions overview: Lower 48 Canada Alaska Europe Asia Pacific Russia, Caspian, Africa, Middle East Exploration focus: North American shale plays International shale plays Deepwater GOM and Angola…
  28. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 28
    High-Quality, Lower-Risk Upstream Portfolio Alaska 210 MBOED Europe Arctic Technical Canada Leadership 240 MBOED 260 MBOED Assets That Keep 27% Tale of Two 6 BBOE Mega-Assets On Giving 10% 40% 19 BBOE 2 BBOE Russia, Caspian,…
  29. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 29
    Lower 48 Widely recognized leader in onshore shale revolution and expanding footprint in deepwater GOM Early mover in new unconventional plays Production MBOED Directing capital to high-margin assets: Eagle Ford, Permian, Bakken,…
  30. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 30
    Canada Premier position in SAGD and large western Canada portfolio with liquids-rich potential Portfolio of low-F&D SAGD projects in Production MBOED Foster Creek, Christina Lake and Surmont Directing capital to liquids-rich plays…
  31. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 31
    Alaska Leading oil producer in resource-rich North Slope and recognized leader in arctic technology Focus on further developing core Production MBOED assets: Prudhoe, Kuparuk and Alpine Significant additional investment…
  32. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 32
    Europe 40 years experience in high-margin North Sea; 40 more years to go Focus on further developing core assets: Greater Ekofisk, J Block, Clair, Britannia, Production MBOED Alvheim and Heidrun Execute on near-term, high-return…
  33. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 33
    Asia Pacific Emerging positions in high-value growth markets with renewed focus on exploration Focus on further developing assets in China, Production MBOED Indonesia and Australia Execute on growth from APLNG and Malaysia Explore…
  34. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 34
    Russia/Caspian/Africa/Middle East Stable base with exploration options Efficient operations of all current assets Production MBOED Explore in Angola Blocks 36/37 30% operated WI, adjacent to recent Cameia discovery, 3-D seismic…
  35. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 35
    North American Shale Plays Accessing and testing many high-quality, high-value, liquids- rich plays Added 600,000 net acres in North Canol America in 2011 Horn River Material working interest in liquids- Montney rich…
  36. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 36
    International Shale Plays International shale plays offer low- cost entry for large acreage positions Australia Frontier shale play with significant liquids potential Farm-in to New Standard Energy assets Canning Basin (option for…
  37. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 37
    Deepwater GOM and Angola Portfolio with exploration, appraisal, COP leases and new leasing opportunities Lower Tertiary Play Shenandoah Deepwater Gulf of Mexico 2011/2012 leasing Lease Sale 218, won top block in sale and 75% of…
  38. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 38
    Conventional North Sea and Caspian Rigorous portfolio high-grading for the best conventional opportunities Lacewing Norway North Sea Lacewing Blocks 23/21, 23/22a&b United Kingdom 37% operated WI Jasmine North Sea Analogous to…
  39. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 39
    Arctic Europe and Alaska Diverse portfolio avoiding most technically challenging ice conditions PL615 Barents Sea Skrugard PL605 151 M net acres Norway PL605 50% operated WI, PL615 25% WI Russia 2011 proprietary high-quality 3-D…
  40. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 40
    LNG Asia Pacific Exploring internationally for high- Caldita-Barossa value gas opportunities Bayu-Undan Browse Basin Blocks WA-315 & 398-P Browse Blocks 869 M net acres 60% operated WI in both AUSTRALIA 2009 Poseidon discovery…
  41. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 41
    COP Non GAAP Reconciliation Return on Capital Employed (ROCE) Millions except as indicated 2011 Upstream estimated ROCE earnings 9,174 E&P segment special items (1,047) Non-E&P segment ROCE earnings 255 E&P segment GAAP ROCE…
  42. CREDIT SUISSE LONDON ENERGY CONFERENCE – ConocoPhillips – slide 42
    COP Non GAAP Reconciliation Return on Capital Employed (ROCE) Millions except as indicated 2010 2011 Numerator: E&P segment net income 9,251 8,303 After-tax interest expense 91 79 E&P segment GAAP ROCE earnings 9,342 8,382 Less:…

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