CITI GLOBAL ENERGY CONFERENCE Ryan Lance, Chairman and CEO May 14, 2014
Our Objective is to Deliver Double-Digit Returns to Shareholders We offer the marketplace an E&P investment that delivers sustainable double-digit returns annually to shareholders through cash flow growth and a compelling…
Our Value Proposition is Unchanged 3 5% production growth rate 3 5% margin growth rate Compelling dividend Ongoing priority to improve financial returns Relentless focus on safety and execution Production and cash margin…
Unmatched Position Today 1,530 MBOED Production1 1Q14 North Liquids Diversified asset base with scope and scale American 24% Gas Multiple sources of growth LNG + 58% International 18% Massive positions in key resource trends Gas…
2014: Set for Growth Average Capital Significant shift in capital toward development 16B programs Exploration & Exploration & Appraisal Appraisal 2013: 1,472 MBOED1 is base for growth Major Projects 2014: Expect 3-5% production…
Capital Allocation Drives Profitable Growth Average Capital Production1 16B 2.0 100% 1.8 90% North American 1.6 40/BOE 80% Margin Unconventional 45% of Capital 1.4 70% 1.2 LNG MMBOED 60% Oil Sands 1.0 50%…
High-Margin Production Growth Drives Cash Margin Improvement 2017 Production1 Cash Margin Production CAGR1 /BOE 2013-2017 North American 2013 Production1 North American Unconventional 40 22% Unconventional North American…
High-Margin Growth Generates Long-Term Cash Flow Improvements Cash From Continuing Operations Continued cash margin growth in 2014+ B Ongoing production mix shift Increased production in areas with more favorable fiscal regimes…
Committed to Shareholder Returns Dividend Yield Compelling dividend remains key to our value proposition Highest priority use of cash 3.7% Enhances capital discipline Predictable portion of shareholder returns Differential to…
The Power of Portfolio: Margins, Decline Rates and Returns 10-15/BOE Margins 30-40/BOE Margins 40/BOE Margins North American Short-cycle cash flow High 25% Unconventionals Avoid over capitalizing Increases capital intensity…
North American Unconventionals: Unmatched Portfolio and Capabilities Montney Duvernay Great positions in proven and emerging plays Eagle Ford and Bakken sweet spots Bakken Exceptional growth in high-margin resource base Niobrara…
Eagle Ford: Significant Resource Increase 221 M net acres; acreage capture complete 96% average operated working interest 1.8 BBOE to 2.5 BBOE net EUR increase 3,000 identified drilling locations Outlook based on 12-rig program…
Eagle Ford: Premium Value from Best Wells in the Play 250 Highest Oil Rates per Well1 60 Industry-Leading Value2 50 200 Gross Operated Production (BPD) 40 NPV10 per Acre (M) 150 30 100 20 50 10 0 0…
Bakken: High-Margin Growth 620 M net acres; mostly HBP or mineral fee 45% average operated working interest 600 MMBOE net EUR 1,800 identified gross drilling locations Outlook based on average 10-rig program 20-25/BOE full-cycle…
Bakken: Advantaged Position in the Heart of the Trend Montana North Dakota Bakken Acreage Values by Area (NPV10 per Acre)1 VALLEY ROOSEVELT WILLIAMS MOUNTRAIL Nesson Anticline Anticline Parshall-Sanish Fort Berthold Williams Core…
Permian Unconventional: Early Appraisal Results Encouraging New Mexico Texas 150 M net acres in Delaware Basin; 90 M net acres in Midland Basin Central Delaware Basin Platform Midland Basin Thick column of both shale and tight rock…
Niobrara: Early Appraisal Results Encouraging ADAMS ADAMS 130 M net acres in the DJ Basin DENVER Appraisal program ongoing; 2 rigs running ARAPAHOE 18 horizontal wells planned for 2014 ARAPAHOE Optimization of drilling and…
LNG: Positioned in High-Margin Markets AKLNG Oil-linked contracts; robust cash flows Kenai Darwin and Qatar: High-liquids yield; premium markets Kenai: Restarting for seasonal exports Qatar Darwin LNG AKLNG: Studying feasibility…
Oil Sands: Significant Growth from World Class SAGD Portfolio Saleski Fort McMurray Second largest net SAGD producer Surmont Thornbury Narrows Top quartile steam-to-oil ratio Lake Crow Lake Christina Lake Executing 7 major…
International Oil & Gas: Major Projects Driving Growth Norway U.K. Strong legacy positions 130 MBOED major projects growth expected by 2017 Libya 2013: Ekofisk South and Jasmine started on schedule China 2014: 5 projects in Europe…
North American Conventional Oil: Protecting and Growing the Base Development drilling and major projects in Alaska ALASKA Infill drilling and waterflood expansion in the Permian Drilling and expanded waterflood recovery at Ursa…
2014: Testing Global Portfolio Norway Greenland Barents Chukchi NPR-A Canol Montney, UK & Norway Duvernay Poland Baltic Basin Azerbaijan China Bohai Niobrara China Delaware & Sichuan Midland Gulf of Mexico Bangladesh…
Appraising Gulf of Mexico Discoveries TEXAS LOUISIANA Tiber 18% working interest Lower Tertiary oil discovery in 2009 Multiple reservoir intervals Appraisal commenced in 2013; continues in 2014 Shenandoah Gila Tiber Coronado…
Angola: Deepwater Exploration Atlantic Block 36: 50% working interest; operator Ocean Luanda Block 37: 30% working interest; operator Block 36 Orca Pre-salt lacustrine carbonate play in Kwanza Basin Lontra Kamoxi-1 Block 20…
Key Messages Value proposition unchanged Growth underway in 2014 Significant identified resource upside in unconventionals Visible options and choices for organic growth beyond 2017 Strategic linkage between capex, volume growth…
Appendix 27
Annualized Net Income Sensitivities Crude Brent/ANS: 80-90MM change for 1/BBL change WTI: 35-40MM change for 1/BBL change WCS: 30-40MM change for 1/BBL change North American NGL Representative blend: 10-15MM change for 1/BBL…
2014 Production Guidance: Continuing Operations Annual Planned Turnarounds Major Turnarounds 2Q14 J-Area 3Q14 Prudhoe Bay Surmont Britannia Area East Irish Sea Southern North Sea Bayu-Undan 1Q14 2Q14 3Q14 4Q14 FY14…
2014 Outlook Guidance 2014 DD&A of 8.5 B Higher DD&A from Jasmine and Gumusut startup Reflects reserve booking schedule in unconventionals Expenses from continuing operations Production and SG&A expense of 8.5B 1 Exploration…
Margin Class Categorization North American International North American North American Unconventionals LNG Oil Sands Oil & Gas Conventional Oil Gas Bakken AKLNG Christina Lake China Alaska North Slope Lobo Barnett APLNG Foster Creek…
Investor Information Stock Ticker Investor Relations Contacts: NYSE: COP Telephone: +1 281.207.1996 Website: www.conocophillips.com/investor Ellen DeSanctis: ellen.r.desanctisconocophillips.com Sidney J. Bassett:…
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