Conocophillips · NYSE:COP
Conocophillips — Investor Presentation (August 2016)
15 slides from Conocophillips's investor presentation, Aug 4, 2016
Slide 1: Investor Update
Investor Update Last Updated: Aug. 4, 2016
Slide 2: Cautionary Statement
Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations, operating results or the industries or markets in which
Slide 3: Maintaining Discipline Across Time Horizons
Maintaining Discipline Across Time Horizons Short Term Medium Term Longer Term Weaker Prices Price Recovery Cycles and Volatility • Protect against protracted downturn • Priority to strengthen balance sheet • Achieve target debt level; target ‘A’ credit rating • Set dividend for lower end of cycle •
Slide 4: Financial Priorities
Creating Value Through Cycles Financial Priorities Value Proposition Principles Cash Allocation Priorities & Targets Strong Balance 1st Existing dividend and capital to Growing Dividend Sheet maintain production base Reduce debt to Target annual real growth less than $25B 2nd Target annual real divi
Slide 5: Exercising Flexibility
Exercising Flexibility Capital Adjusted Operating Costs1 Production2 $11.6B $2.9B 1-3% PRODUCTION REDUCTION REDUCTION GROWTH $20 $12 1,600 2016E vs. 2015 $10 $16 1,200 $8 $12 $6 800 $8 $17.1B $9.7B $4 $8.0B $10.1B $6.8B 400 $4 $2 $5.5B $0 $0 0 2014 2015 2016E 2014 2015 2016E 2014 2015 2016E 2016E: $
Slide 6: High-Quality Global Portfolio
High-Quality Global Portfolio 26% Portfolio Attributes 32% Production 1,546 MBOED1 Diverse, low-decline base production 18% 12% 12% Large, low cost of supply resource base 22% 19% Reserves 8.2 BBOE2 17% Flexible, short-cycle investment options 32% 10% 10% Lower-risk, medium-cycle projects 22% Resour
Slide 7: Diversified Portfolio Provides a Unique Advantage
Diversified Portfolio Provides a Unique Advantage Capital Canada Europe $10.1B 279 MBOED2 187 MBOED2 New projects Europe Surmont 2 on line, and drilling adding to low Alaska offset decline $5.5B decline base APME Canada Europe Alaska APME Lower 48 Canada Lower 48 2015 Actual 2016E APME 398 MBOED2 Al
Slide 8: Lower 48 and Canada
Lower 48 and Canada Foster Creek Lower 48 Canada • Executing 3-rig program in the unconventionals • Continuing to ramp up production at Surmont 2 • Continuing to realize drilling and completion efficiencies • Achieved first production at Foster Creek Phase G in Eagle Ford and Bakken • Progressing to
Slide 9: Alaska and Europe & North Africa
Alaska and Europe & North Africa Alaska • Production from major projects offsetting decline • Strong production at CD5 and Drill Site 2S • Completed sale of Beluga River in 2Q16 Europe & North Africa • Continuing development drilling at Greater Ekofisk Area • Progressing projects at Alder, Clair Rid
Slide 10: Asia Pacific & Middle East and Other International
Asia Pacific & Middle East and Other International Asia Pacific & Middle East • Operating above expectations at APLNG Train 1; expect first cargo from Train 2 in 4Q16 • Gumusut production exceeding expectations • KBB production increasing with third-party commissioning underway • Progressing Malikai
Slide 11: Key Takeaways
Key Takeaways LOWERING • ConocoPhillips well positioned for lower, more volatile prices BREAKEVEN PRICE • Defined principles, priorities and targets for cash allocation ~70% CAPITAL REDUCTION 2016E VS 2014 • Goal to lower breakeven price of the business ~30% ADJUSTED OPERATING • Exercised significan
Slide 12: Appendix
Appendix
Slide 13: Annualized Net Income Sensitivities
Annualized Net Income Sensitivities • Crude • Brent/ANS : $100-120MM for $1/BBL change • WTI: $30-40MM for $1/BBL change • WCS¹: $35-45MM for $1/BBL change • North American NGL • Representative blend: $5-10MM for $1/BBL change • Natural Gas • Henry Hub: $65-75MM for $0.25/MCF change • International
Slide 14: 2016 Outlook Guidance
2016 Outlook Guidance • Full-year 2016 production guidance of 1,540-1,570 MBOED • 2016 DD&A of ~$9.2B • Adjusted Operating Costs of ~$6.8B • Exploration Dry Hole and Leasehold Impairment Expense of ~$0.8B • Corporate Segment Net Loss of ~$1B Guidance excludes special items. Adjusted operating costs
Slide 15: Investor Information
Investor Information Stock Ticker Investor Relations Contacts: NYSE: COP Telephone: +1 281.293.5000 Website: www.conocophillips.com/investor Ellen DeSanctis: [email protected] Sidney J. Bassett: [email protected] Headquarters Vladimir R. dela Cruz: v.r.delacruz@conoco