a new class of E&P INVESTMENT Analyst Meeting Feb. 28, 2013
a new class of E&P INVESTMENT Ryan Lance, Chairman & CEO
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. 4
2012: ConocoPhillips First Year as an Independent E&P Strategic Operational Financial Milestones Milestones Milestones Completed Met volume Maintained separation of targets strong balance downstream sheet business Organic…
ConocoPhillips: Unmatched as an Independent E&P Today Production: 1,475-1,525 MBOED1 (2013e) Largest independent E&P Liquids company 26% LNG + International Gas 55% 19% North American Gas Diverse asset base with scope and scale…
Looking Ahead: Navigating an Uncertain Environment Brent (/bbl) Wide range of views on oil prices Higher case: geopolitical supply risks; rise of global middle class Lower case: OECD economies; growth from shale plays WTI (/bbl)…
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…
Commitment to Capital Discipline and Growth is Unchanged Annual Capital Production MMBOED 16 B 2.0 Exploration Exploration Delivers 1.8 15% & Appraisal Appraisal 2017+ & growth 1.6 Major Projects * Major Generates Major 1.4…
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 Production and…
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…
Today We Will Show Our Plan for Growing Volumes and Margins from a Diverse Portfolio Strong base of production Multi-year development program inventory Major projects in execution Upside from unconventional and conventional…
growing a diverse PORTFOLIO Matt Fox, EVP, Exploration & Production
Commitment to Capital Discipline and Growth is Unchanged Annual Capital Production MMBOED 16 B 2.0 Exploration Exploration Delivers 1.8 15% & Appraisal Appraisal 2017+ & growth 1.6 Major Projects * Major Generates Major 1.4…
High-Quality Legacy Base Production and Capability Focused on systematic Operations Excellence programs to mitigate risk, improve production efficiency and preserve value: Asset and operating integrity Planning and scheduling…
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 600 Other North…
Alaska: Successful High-Tech Drilling Alaska North Slope 5-year investment: 2.5 B Incremental F&D: 25/BOE Opportunities in Prudhoe, Kuparuk and Alpine Applying coiled tubing and liner drilling guided by 4-D seismic Additional…
Western Canada: Focus on High-Value Legacy Inventory Western Canada Legacy 5-year investment: 5.5 B Incremental F&D: 15/BOE Targeting numerous plays, including: Glauconite, Lower Cretaceous, Cardium Oil and development of the…
Europe: Extending Legacy Fields Via Drilling and Optimization Ekofisk 5-year investment: 2.5 B Incremental F&D: 20/BOE Improving recovery through drilling and optimization Leveraging 4-D seismic and intelligent well installations…
Asia Pacific & Middle East: New Production in Existing Fields Bayu-Undan 5-year investment: 1 B Incremental F&D: 10/BOE High-value gas drilling in Indonesia Bohai drilling and waterflood optimization Bayu-Undan Phase 3 drilling…
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,…
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…
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 600 Other North…
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 450 Oil Sands Norway 400…
Top-Tier Oil Sands Position with Massive Resource Base Oil Sands 8 Competitive Resource 7 Cumulative Steam-to-Oil Ratio1 Saleski 6 CANADA 5 Surmont Thornbury 4 Industry Average 3 Narrows Lake 2 2.7 2.0 2.3 1 Christina…
Oil Sands: Significant Growth from Projects in Execution Christina Lake 5-year investment: 5 B1 Full-cycle F&D: 15/BOE Surmont Phase 2 first steam in 2015 FCCL: Executing projects at Foster Creek, Christina Lake and Narrows Lake…
United Kingdom: Strong Production Growth from Projects Jasmine 5-year investment: 2.5 B Full-cycle F&D: 20/BOE Jasmine: Largest recent discovery in U.K. sector; on track for late-2013 startup High-value exploration opportunities…
Norway: Major Projects Drive Another 40 Years of Production Ekofisk South 5-year investment: 4 B Full-cycle F&D: 25/BOE Ekofisk South and Eldfisk II will continue to improve oil recovery from the Greater Ekofisk Area Additional…
Malaysia: Projects Ramping Up, with Upside Malaysia 5-year investment: 2.5 B South China Sea Full-cycle F&D: 15/BOE KBBC PSC Ubah KME 4 developments in execution: Gumusut, SNP, KBB G G KBB and Malikai SB-311 Pisagan SNP G…
APLNG: Project Progressing On Schedule APLNG 5-year investment: 2.5 B1 Full-cycle F&D: 25/BOE Initial focus on two 4.5 MTPA LNG trains Project on schedule for first cargo mid-2015 Permitted for two additional trains Phase 1…
Other Projects: High-Value Opportunities in Legacy Fields Indonesia 5-year investment: 4 B Full-cycle F&D: 20/BOE Expanding and offsetting existing developments Includes projects in Alaska China Indonesia Other Projects…
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 450 Oil Sands Norway 400…
Diverse Unconventional and Conventional Exploration Portfolio Chukchi Sea West 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 130 M consolidated net acres over Colorado newly identified sweet spot Drilled 4 horizontal wells in 2012 ADAMS Rock properties and early production rates in line with…
Canada: New Plays in a Legacy Basin Canadian Unconventional Plays Focused exploration in the liquids- rich Duvernay (115 M net acres) Recent encouraging results in the liquids-rich portion of the Montney play; large upside…
International Unconventionals: Poland and Australia Poland Poland Low-cost early entry Baltic Sea Karwia 500 M acre position with a 70% WI Lebork Drilled 4 wells (vertical and horizontal) Damnica Optimizing completions and…
International Unconventionals: China and Colombia China China: Sichuan Basin Neijiang-Dazu Access to high-quality shale plays through CHINA cooperation with NOCs Beijing Sinopec: Qijiang Joint Study Agreement 1 MM acres…
International Conventionals: Asia Pacific Australia: Browse Basin Australia: Browse Basin WA-314-P Currently appraising the 2009 Poseidon gas discovery WA-315-P Kronos-1 Poseidon-1 Boreas-1 1.5 MM acres with 40% WI (blocks…
International Conventionals: Deepwater Angola Angola Play identified as a probable analog to Brazil pre- salt play ANGOLA Recent discoveries de-risk play concept in Kwanza Basin Luanda ConocoPhillips-operated 2.5 MM acre…
A Top 5 Leaseholder in Deepwater GOM Nearly doubled acreage position to 2 MM net acres in the deepwater GOM since 2011 Second-largest leaseholder for primary-term acreage blocks Focused on accessing emerging plays with material…
2013 Ramp Up of Gulf of Mexico 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% Target:…
Shenandoah and Coronado: Encouraging Results with Running Room Shenandoah and Coronado Shenandoah appraisal 2009 discovery with 300 net pay in Garden Banks Area Lower Tertiary Appraisal well results encouraging Coronado…
Diverse Unconventional and Conventional Exploration Portfolio Chukchi Sea West Duvernay, Greenland Barents Sea Muskwa, & North Sea Montney & Canol Poland Wolfcamp, Sichuan Niobrara & Gulf of Avalon Mexico Azerbaijan…
A Diverse Portfolio Delivering Production and Margin Growth Production MMBOED 2.0 1.8 1.6 * Major Projects * 1.4 Development 1.2 Programs 1.0 0.8 Diverse, resource-rich global portfolio 0.6 High-quality legacy base…
A Diverse Portfolio Delivering Production and Margin Growth Production MMBOED 2.0 1.8 * 1.6 * Oil 1.4 1.2 1.0 Oil Sands 0.8 LNG Diverse, resource-rich global portfolio 0.6 NGL High-quality legacy base Intl Gas…
creating value through INNOVATION Al Hirshberg, EVP, Technology & Projects
Competitive Advantage and Value Creation with Technology Technology leadership where it matters most Spending focused on growing production and margins Capability to compete for access globally 2012 Year-End Resources Arctic…
Conventional: Base Optimization Improves Recovery Demonstrated ability to extend the life and increase value of existing fields Mitigate declines in mature fields Opportunities to access 2+ BBOE resource from existing assets…
Conventional: Developing Low-Cost Reserves with CTD Profitably applying new technology to existing wells to increase recovery Industry leader in coiled tubing drilling (CTD) Target multiple zones in fault blocks guided by 4-D…
Conventional: Development Expertise in SDL Developing technology to access new resources in challenging environments Recognized leader in casing drilling Pioneering steerable drilling liner (SDL) technology in Alaska Evaluating for…
Unconventional Reservoirs: Technology Leadership Proven ability to identify, secure and develop highest-value unconventional acreage Eagle Ford: Premium Acreage and Significant Value1 40 Sweet spot identification 35 Development…
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: Optimizing Full Field Development Science-based experimentation to optimize unconventional recovery Rapid experimentation with disciplined science Eagle Ford EUR growth more than 100% since 2010 Bakken EUR…
Unconventional Reservoirs: Operations Excellence Setting the standard for operations excellence with integrated approach Eagle Ford Spud to Rig Release Days per 10,000 Feet1 30 ConocoPhillips Eagle Ford Competitors 25 20 22 22 20…
Oil Sands: Unlocking the Value in Major Projects Game-changing technology to reduce oil sands cost of supply Advances based on modeling, Fish Hook lab and field work Infill Well Better returns with lower emissions Fish hook and…
Deepwater: Technology-Led Exploration Capability Deepwater program supported by significant technical capabilities and investments Proprietary expanded in-house Example: Deepwater Prospect Evaluation seismic imaging capabilities…
Competitive Advantage and Value Creation with Technology Technology leadership where it matters most Spending focused on growing production and margins Capability allows us to compete for access globally 62
growing margins and RETURNS Jeff Sheets, EVP, Finance & CFO
Financial Strategy to Create Shareholder Value Cash flow from operations and asset sales fund profitable growth Production growth and margin improvement drive cash flow growth Moving toward balance of cash flow, capital and…
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…
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 Production and…
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…
Focused on Continuously Improving Returns 2012 ROCE Compared to Independent E&Ps Ongoing focus on cost 11% structure and efficiency 11% Asset divestitures improve portfolio returns Short-term returns impacted by capital…
Balance Sheet Strength Provides Flexibility Year-End 2012 Debt-to-Capital Ratio 4.4 B total cash at year-end 2012 9.6 B of announced proceeds from asset sales in 2013 31% A1/A rating reflects substantial financial flexibility…
A Compelling Dividend is Key to Our Value Proposition Dividend Yield1 Highest priority use of cash flow Enhances capital discipline 4.5% Predictable portion of shareholder returns Differential compared to range of peers…
closing COMMENTS Ryan Lance, Chairman & CEO
Today We Will Show Our Plan for Growing Volumes and Margins from a Diverse Portfolio Strong base of production Multi-year development program inventory Major projects in execution Upside from unconventional and conventional…
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…
Q&A Ryan Lance, Chairman & CEO
a new class of E&P INVESTMENT Analyst Meeting Feb. 28, 2013
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…
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:…
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…
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