Conocophillips · NYSE:COP
Conocophillips — Q1 2017 Earnings Presentation
14 slides from Conocophillips's earnings presentation, May 4, 2017
Slide 1: Updated 1Q17 Earnings
low breakeven price transformation SPIRIT Values smart growth Updated 1Q17 Earnings differentiation low cost of supply May 4, 2017 acceleration superior returns flexibility 1Q17 earnings have been updated as a result of a subsequent filing and information from the operator of Shenandoah, disclosing
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: Don Wallette, Jr., EVP, Finance, Commercial and CFO
low breakeven price transformation SPIRIT Values smart growth Don Wallette, Jr. differentiation low cost of supply EVP, Finance, Commercial and CFO acceleration superior returns flexibility
Slide 4: 1Q17 Summary
1Q17 Summary Strategic Financial Operational • Increased quarterly dividend • ($0.2B) adjusted earnings; • Continued strong underlying by 6% ($0.14) adjusted EPS business performance • Reduced debt by $0.8B • $1.8B CFO1; $3.4B ending cash2 • Production of 1,584 MBOED; 2% year-over-year growth3 • Rep
Slide 5: 1Q17 Performance – Adjusted Earnings
1Q17 Performance – Adjusted Earnings Highlights (177) • Year-over-year adjusted earnings benefited from a (318) 58% improvement in realizations Adjusted • Sequential adjusted earnings benefited from a 10% Earnings (1,179) improvement in realizations and lower depreciation ($MM) expense, partially of
Slide 6: 1Q17 Performance – Company Cash Flow
1Q17 Performance – Company Cash Flow 1Q17 Marker Prices $B • Brent $53.78/BBL • WTI $51.83/BBL • Henry Hub $3.32/MMBTU 1.8 1Q17 0.1 • Debt of $26.4B • Debt-to-capital ratio of 43% 0.8 0.2 1.0 0.3 0.1 3.7 3.4 2017 Beginning CFO Excluding Total Working Debt Capital Dividends Repurchase of Other 1Q17 E
Slide 7: Al Hirshberg, EVP, Production, Drilling and Projects
low breakeven price transformation SPIRIT Values smart growth Al Hirshberg differentiation low cost of supply EVP, Production, Drilling and Projects acceleration superior returns flexibility
Slide 8: 1Q17 Operational Highlights – 1 of 2
1Q17 Operational Highlights – 1 of 2 • Exceeded top end of 1Q17 production guidance • Lower 48 unconventional production of 221 MBOED vs. 252 MBOED in 1Q161 and 226 MBOED in 4Q16 • Expect 1Q to be the low point for 2017 • 12 operated rigs in Lower 48 in April • 5 Eagle Ford, 4 Bakken and 3 Permian •
Slide 9: 1Q17 Operational Highlights – 2 of 2
1Q17 Operational Highlights – 2 of 2 • Surmont production curtailed by third-party facility fire • Commissioning work underway at Clair Ridge production platform • Aasta Hansteen spar sailaway achieved in April • APLNG Train 1 turnaround completed in April; loaded 27 LNG cargoes in 1Q • Successful a
Slide 10: 2017 Operational Outlook
2017 Operational Outlook YTD Announced Transaction Metrics Post-Transactions Pre-Transactions Pro Forma1 • Underlying business exceeding expectations CAPITAL 5.0 5.0 ($B) • Expect Lower 48 unconventional exit rate of ADJUSTED ~250 MBOED OPERATING 6.0 5.3 COSTS ($B) • Turnarounds scheduled in APME, E
Slide 11: Appendix
low breakeven price transformation SPIRIT Values smart growth Appendix differentiation low cost of supply acceleration superior returns flexibility
Slide 12: YTD Announced Transaction Metrics
YTD Announced Transaction Metrics Full-Year 2017 Estimated Disposition Impacts Canadian San Juan Basin Post-Transactions Pre-Transactions Disposition Disposition Pro Forma1 Full-Year 2017 Production 1,540-1,570 MBOED 280 MBOED 115 MBOED 1,145-1,175 MBOED 2Q17 Production 1,495-1,535 MBOED 265 MBOED 1
Slide 13: 2017 Annualized Net Income Sensitivities
2017 Annualized Net Income Sensitivities $45-$65/BBL Brent Full-Year Pre-Transactions Full-Year Post-Transactions Pro Forma • Crude • Crude • Brent/ANS: $100-120MM for $1/BBL change • Brent/ANS: $100-120MM for $1/BBL change • WTI: $30-40MM for $1/BBL change • WTI: $30-40MM for $1/BBL change • WCS¹:
Slide 14: 2017 Annualized Cash Flow Sensitivities
2017 Annualized Cash Flow Sensitivities Full-Year Pre-Transactions Full-Year Pro Forma Post-Transactions CFO from Consolidated Operations ($45-$65/BBL Brent) CFO from Consolidated Operations ($45-$65/BBL Brent) • Crude • Crude: • Brent/ANS: ~$105-115MM for $1/BBL change • Brent/ANS: ~$105-115MM for