2012 Annual Meeting of Stockholders Ryan Lance, Chairman and CEO May 9, 2012
2011 Accomplishments Continued strong safety performance Safety Performance Improvement 4.8 B in asset dispositions Incidents per 200,000 hours worked 20% dividend increase 1.6 Total Recordable Rate 48% increase in adjusted…
3-Year Repositioning Plan: 2010-2012 YTD Portfolio Optimization Balance Sheet LUKOIL interest sold for 9.5 B Debt reduced by 6 B2 12 B of noncore asset sales Debt / cap of 25%2 129% average organic RRR1 2010 / 2011 Liquidity3…
Total Shareholder Return Since Repositioning Plan Announcement Performance of 100 invested in October 2009 180 Annualized Return: 24% COP S&P 500 Peers 160 16% 140 8% 120 100 80 Oct 2009 Oct 2010 Oct 2011 Mar 2012…
A New Class of Investment Spin Benefits: Improve returns capital allocation April 30, 2012 May 1, 2012 Provide pure-play investment 100 Shares opportunity COP Strengthen strategic focus 100 Shares COP Increase transparency of…
A New Class of Investment Independent Exploration and Production May 9, 2012
Business Environment Key Drivers Global Regulatory / Economy Resource Political Competition Supply/ Demand Industry Technology Perception Services Human Costs Resources 9
Global Energy Demand Fossil fuels projected to meet 80% of energy demand in 2035 MMBOED MMBOED 400 400 50% 350 Growth 350 300 300 250 250 200 Coal 200 Non-OECD 150 150 Natural Gas 100 100 OECD 50 Liquids 50 0 0…
Industry Growth Megatrends Oil and Gas Production Production growth to 2025 + 45 MMBOED Growth LNG Deepwater Heavy Oil Unconventional Arctic Conventional 2011 2025 COP is well positioned for growth from megatrends…
The Shale Oil Revolution 8 History Forecast 7 Million Barrels per Day 6 5 4 3 2 US Shale Oil Production US Production 1 (excluding Shale) 0 1990 1995 2000 2005 2010 2015 2020 2025 Turnaround in U.S.…
Key Economic Drivers Supply and demand fundamentals drive strong oil prices Attractive gas prices continue in Europe and Asia Unconventional revolution drives significant change Resource access competition remains intense Global…
ConocoPhillips Today Largest North American-based independent Production 1.6 MMBOED (2011) Liquids Lower-risk, diversified international positions 26% LNG + International Gas 54% Majors asset base with compelling growth 20% North…
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 16
Disciplined Investment Approach Reinvest 75 80% of CFO for optimized growth Current Dividend Yield and returns 6.5% Sustainable production growth 5.0% 100%+ organic reserve replacement 5.0% COP Build inventory of future…
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 1.8 15% 2016+ 0.4 Appraisal Growth 0.2 Major Projects…
2012 2016 Margin Improvement Shift to high-margin production drives 3 5% cash margin CAGR Production MMBOED Production and Margin Growth 1.8 200 L48 Liquids Fields Production Growth MBOED 150 1.5 Asia 100 Pacific 1.2…
Focus on Returns 2011 ROCE Goal to continue absolute improvements 22.5% 21.0% Close gap and maintain strong relative 17.6% position 15.8% COP Upstream Estimate 13.6% Capital allocated to highest-return projects 13.0%…
Financial Strength Strong Financial Position 25% debt-to-capital after debt reduction1 22 B debt initially, decreasing to 18 B within one year Credit rating of A1/A with stable outlook Disciplined Investment 15 B annual capex…
Compelling Near-Term Growth Projects Five high-margin projects will account for 550+ MBOED by 2016 Lower-risk geographies and geologies; diversified plays 600 Canada North Sea SAGD conventional 80 MBOED 90 MBOED 500 Eagle Ford…
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…
Ongoing Commitments to Shareholders Maintain our SPIRIT Values afety Operations Excellence Emphasis on safe operations eople Dedication to environmental performance Respectful approach to communities ntegrity Focus on Returns…
2012 Annual Meeting of Stockholders May 9, 2012
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…
COP Non-GAAP Reconciliation Earnings per Share (EPS) 2011 2010 Earnings per Share 8.97 7.62 Noncore adjustments: Impairments 0.69 1.18 Cancelled projects 0.06 0.07 Net (gain)/loss on asset sales (1.17) (3.03) Severance accruals…
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