a new class of E&P INVESTMENT IPAA OGIS New York April 17, 2013 Don Hrap, President, Lower 48 & Latin America
ConocoPhillips: A New Class of E&P Investment We offer the marketplace a new class of E&P investment. Our goal is to consistently deliver strong, predictable returns to shareholders. 3
ConocoPhillips: Unmatched as an Independent E&P Today Largest independent E&P company Diverse asset base with scope and scale Multiple sources of growth Positioned in key resource trends globally Significant technical…
Our Strategy is Aligned with Our View of the Environment Diversification, scale and capability are a competitive advantage Disciplined investment strategy Focus on organic growth Invest in high-margin programs and projects…
What Will We Deliver Our Value Proposition is Unchanged Relentless focus on safety and execution Compelling dividend 3 5% production growth rate 3 5% margin growth rate Ongoing priority to improve financial returns…
Our Priorities for Cash Flow are Unchanged Predictable returns to shareholders Dividends Enhance capital discipline Investing for margins and cash flows Capital Program Funds profitable growth Capacity to fund growth Balance…
Commitment to Capital Discipline and Growth is Unchanged * Reflects production from 2012-2013 closed and announced dispositions. 8
Our Commitment to Margin Improvement is Unchanged Five significant areas ramping up between 2012-2017 Incremental growth comes from high-margin investments Lower-risk geographies and geologies; diversified plays Oil Sands…
Margin Improvement from Strong Growth and Mix Shift Investment strategy drives strong organic growth Visible growth by end of 2013 High-margin growth creates 6 B of incremental cash flow 40-45 per BOE average cash margin1 Liquids…
High-Margin Worldwide Development Program Inventory Development programs will account for 600 MBOED by 2017 60% of production growth from high-impact Lower 48 programs Development Program Growth (2012-2017) MBOED Alaska Europe…
Lower 48: A New Era of Development Lower 48 5-year investment: 25 B Incremental F&D: 20/BOE Includes: Eagle Ford, Permian and Bakken Other Lower 48 legacy development: San Juan, Barnett and GOM Development of Niobrara and…
Permian Conventional: Decades of Legacy Field Inventory Permian Basin 5-year investment: 3 B New Mexico Texas BORDEN Incremental F&D: 15/BOE DAWSON GAINES EDDY LEA ANDREWS MARTIN Central 1 MM net acres; 0.8 BBOE resource…
Bakken: Growth from Development in Heart of Trend Bakken 5-year investment: 4 B Montana North Dakota Incremental F&D: 20/BOE WILLIAMS MOUNTRAIL Nesson WARD 626 M net acres1; 0.6 BBOE resource ROOSEVELT Anticline RICHLAND 1,400…
Eagle Ford: Nearing Full Field Development Phase Eagle Ford 5-year investment: 8 B GUADALUPE BEXAR GONZALES Incremental F&D: 20/BOE 227 M net acres; 1.8 BBOE resource WILSON DE WITT Highest-quality position in sweet spot,…
Unconventional Reservoirs: Technology Leadership Proven ability to identify, secure and develop highest-value unconventional acreage Sweet spot identification Development plan optimization Efficient drilling and completions…
Unconventional Reservoirs: Sweet Spot Identification Early mover in best parts of plays yields best-in-class results Multi-disciplinary approach Eagle Ford, Bakken and Permian successful outcomes Securing additional liquids-rich…
Unconventional Reservoirs: Operations Excellence Setting the standard for operations excellence with integrated approach Eagle Ford Spud to Rig Release Days per 10,000 Feet1 Leader in drilling efficiency Private Wi-Fi Enabled…
High-Margin Major Growth Projects in Execution Major projects will account for 400 MBOED by 2017 Lower-risk geographies and geologies; diversified market exposure Major Projects Growth (2012-2017) MBOED Oil Sands Norway 100…
Diverse Unconventional and Conventional Exploration Portfolio West Chukchi Sea Duvernay, Greenland Barents Sea Muskwa, & North Sea Montney & Canol Poland Wolfcamp, Sichuan Niobrara & Gulf of Avalon Mexico Azerbaijan…
Permian Unconventional: Emerging Growth Active exploration across Permian Basin that leverages existing 1 MM net acre position High-grading positions around and within core legacy producing area Measured approach as infrastructure is…
Niobrara: Early Mover in the New Sweet Spot Niobrara Colorado 130 M consolidated net acres over newly identified sweet spot ADAMS Drilled 4 horizontal wells in 2012 Rock properties and early production rates in line with…
Top 5 Leaseholder in Deepwater Ramp Up of GOM Activity Deepwater GOM 2013 Drilling Plan Louisiana 5 wells planned; up to 3 additional wells possible Ardennes WI: 30% Target: Paleocene/Eocene Tiber Non Operated WI: 18%…
Shenandoah and Coronado: Significant Recent Discoveries Shenandoah and Coronado Shenandoah appraisal Garden Banks Area Encountered 1000 net pay Coronado wildcat Encountered 400 net pay Further appraisal in 2013 Green…
What Will We Deliver Our Value Proposition is Unchanged Relentless focus on safety and execution Compelling dividend 3 5% production growth rate 3 5% margin growth rate Ongoing priority to improve financial returns…
Appendix
2013 Guidance Production from continuing operations Annual average of 1,475-1,525 MBOED 1Q and 4Q 50 MBOED above annual average 2Q and 3Q 50 MBOED below annual average due to seasonality, maintenance and project tie-ins Strong…
Annualized Net Income Sensitivities Crude Brent/ANS: 75-85 MM change for 1/BBL change WTI: 30-40 MM change for 1/BBL change WCS: 20-25 MM change for 1/BBL change North American NGL Representative blend: 10-15 MM change for 1/BBL…
Substantial Progress on Portfolio High-Grading Announced Announced Asset sale criteria Transactions Proceeds B Nonstrategic Mature, limited growth potential Kashagan 5.0 Ability to achieve fair value Tax-efficient transactions…
Segment Production (MBOED) * Reflects production from 2012-2013 closed and announced dispositions. 30
A Diverse Portfolio Delivering Production and Margin Growth Diverse, resource-rich global portfolio High-quality legacy base Profitable worldwide development programs Major projects in execution Compelling exploration…
Non-GAAP Reconciliations 2012 Return on Capital Employed Numerator (MM) Net Income Attributable to ConocoPhillips 8,428 Adjustment to exclude special items (1,694) Net income attributable to noncontrolling interests 70 After-tax…
Investor Information Stock Ticker: NYSE: COP Headquarters: ConocoPhillips 600 N. Dairy Ashford Road Houston, Texas 77079 www.conocophillips.com/investor Investor Relations: Telephone: +1 212-207-1996 Ellen DeSanctis:…
Loading...
