Conocophillips · NYSE:COP
Conocophillips — Q3 2009 Earnings Presentation
17 slides from Conocophillips's earnings presentation, Oct 28, 2009
Slide 1: 3rd Quarter 2009 Conference Call
3rd Quarter 2009 Conference Call October 28, 2009
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT FOR FOR THE THE PURPOSES PURPOSES OF OF THE THE “SAFE “SAFE HARBOR” HARBOR” PROVISIONS PROVISIONS OF OF THE THE PRIVATE PRIVATE SECURITIES SECURITIES LITIGATION LITIGATION REFORM REFORM ACT ACT OF OF 1995 1995 The following presentation includes forward-looking statements within
Slide 3: Overview
Overview Overview Capital Operating Discipline & Shareholder Excellence Project Financial Value Execution Optimization Shareholder Technology & Innovation Value Portfolio of High-Quality Assets Global environment improving but challenges remain Delivering strong operational results Modifying future
Slide 4: Macro Environment
Macro Macro Environment Environment Major Drivers Status Oil Prices Higher than expected + Upward demand revisions + Weak US dollar +/- OPEC compliance - Excess capacity & inventory NA Natural Gas Seasonal rebound - Record inventory levels Prices - Weak industrial demand - Impact of shale plays + Cu
Slide 5: Third-Quarter Overview
Third-Quarter Third-Quarter Overview Overview Earnings $1.00 Earnings Per Share $1.5B 2.2MMBOED Production Cash From Operations $2.9B 90% Refining Utilization Debt-to-Cap Lower Operating Costs 33% Page 5
Slide 6: Total Company Earnings
Total Total Company Company Earnings Earnings 3Q09 3Q09 vs. vs. 3Q08 3Q08 $MM Major Variances Price, Margin, Other Market Impacts* (4,384) Volumes* 382 2,950 Operating Costs 419 5,188 750 107 92 1,503 3Q08 E&P R&M LUKOIL Other 3Q09 *Excludes LUKOIL price and volume impacts Page 6
Slide 7: Total Company Cash Flow
Total Total Company Company Cash Cash Flow Flow 3Q09 3Q09 $MM 73 2,860 2,937 888 697 454 641 3Q09 Beginning CFO excl Working Capital Dividends Other 3Q09 Ending Cash Working Capital* Program Cash Balance Capital* * Cash provided by operating activities was $2,933 million in the third quarter of 2009
Slide 8: Total Company Production
Total Total Company Company Production Production 3Q09 3Q09 vs. vs. 3Q08 3Q08 MBOED 424 8 57 21 3 2,215 40 1,748 1,791 3Q08 E&P Market Portfolio Planned 2008 Operations 3Q09 E&P LUKOIL 3Q09 Factors Changes Maintenance Hurricanes Page 8
Slide 9: E&P Earnings
E&P E&P Earnings Earnings 3Q09 3Q09 vs. vs. 3Q08 3Q08 $MM 3,143 3,928 198 354 349 978 3Q08 Prices & Other Sales Volumes Operating Costs Other 3Q09 Market Impacts 3Q09 vs. Realized 3Q09 vs. Earnings 3Q08 3Q09 3Q08 Prices 3Q08 3Q09 3Q08 U.S. 1,606 327 (1,279) Oil $/BBL 112.19 65.92 (46.27) Non U.S. 2,
Slide 10: R&M Earnings
R&M R&M Earnings Earnings 3Q09 3Q09 vs. vs. 3Q08 3Q08 $MM 849 1,010 84 99 182 6 3Q08 Margins & Other Volumes Operating Costs Other 3Q09 Market Impacts 3Q09 vs. Realized 3Q09 vs. Earnings 3Q08 3Q09 3Q08 Margins $/BBL 3Q08 3Q09 3Q08 U.S. 524 73 (451) U.S 10.38 5.92 (4.46) Non U.S. 325 26 (299) Non U.S
Slide 11: LUKOIL Segment Earnings
LUKOIL LUKOIL Segment Segment Earnings Earnings 3Q09 3Q09 vs. vs. 3Q08 3Q08 $MM 75 14 135 89 545 438 3Q08 Realizations & True-up Basis Other 3Q09 Volumes Amortization Page 11
Slide 12: Other Segments
Other Other Segments Segments 3Q09 3Q09 vs. vs. 3Q08 3Q08 $MM 173 104 62 46 35 Corporate (2) Midstream Chemicals Emerging Businesses (281) (283) 3Q08 3Q09 Page 12
Slide 13: Executing 2009 Business Plan
Executing Executing 2009 2009 Business Business Plan Plan Capital Cost Operational Optimization Reduction Excellence “Live within means” Drive below 2007 Operate safely & levels reliably Reduce spending level to $12.5B Workforce Ensure environmental optimization stewardship Maintain op
Slide 14: Delivering Results
Delivering Delivering Results Results E&P Higher production Production up >5%* Operating cost reductions achieved Operating Costs down by 14%* Progressing major projects Increased Dividend Exploration success *September year-to-date 2009 versus September year-to-date 2008 Page 14
Slide 15: Outlook
Outlook Outlook Expected full-year E&P production of 1.85 MMBOED Fourth-quarter refining utilization in the upper-70- percent range Anticipated fourth-quarter benefits from reduction of discretionary inventory Near-Term Projects Start up of N. Belut Commissioning of San Francisco hydrocracker Final
Slide 16: Appendix
ConocoPhillips Appendix
Slide 17: 3Q09 vs. 2Q09
3Q09 3Q09 vs. vs. 2Q09 2Q09 Total Company Earnings ($MM) E&P Earnings ($MM) 151 137 253 62 53 23 86 369 1,503 1,298 978 725 2Q09 E&P R&M LUKOIL Other 3Q09 2Q09 Prices & Sales Operating Other 3Q09 Other Market Volumes Costs Impacts R&M Earnings ($MM) Production (MBOED) 424 3 32 9 8 50 2,215 14 1,872