Conocophillips · NYSE:COP
Conocophillips — Investor Presentation (February 2016)
11 slides from Conocophillips's investor presentation, Feb 22, 2016
Slide 1: Investor Update
Investor Update Last Updated: Feb. 22, 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: Market Environment: The World Has Changed
Market Environment: The World Has Changed Brent Price $/BBL Macro Environment $70 • Continued deterioration in near-term price outlook $60 • Supply/demand imbalance expected to last longer 2015 Average Price $50 • Greater concern about global economic and oil demand growth $40 2016 Average YTD Price
Slide 4: Exercising Further Flexibility, Maintaining Flat Production
Exercising Further Flexibility, Maintaining Flat Production Capital Production Operating Costs $3.7B REDUCTION 2015 LEVELS $1B REDUCTION $12 1,600 $8 1,500 1,400 $8 1,300 $7 $8.0B $7.7B $10.1B 1,200 $7.7B $7.0B $6.4B 1,100 $4 1,000 $6 2015 2016 (Dec 15) 2016E 2015 2016 (Dec 15) 2016E 2015 2016 (Dec
Slide 5: Setting a Sustainable Dividend for the Cycles
Setting a Sustainable Dividend for the Cycles • Dividend level results in competitive yield Prior Breakeven Price ~$60/bbl • Preserves balance sheet strength Prior New Breakeven Price Dividend • Provides financial flexibility through current cycle ~$45/bbl New CFO Dividend • Lowers breakeven price C
Slide 6: Balance Sheet Strength Maintained
Balance Sheet Strength Maintained • Industry-wide credit downgrades occurring Rating Agency • Debt capacity within a given rating level shrinking across the industry Review • Dividend reduction mitigates balance sheet usage • $8 billion of liquidity at year-end 2015 Liquidity • No significant near-t
Slide 7: Financial Fundamentals Priorities
ConocoPhillips Value Creation Tenets Portfolio Characteristics FinancialFundamentals Priorities Diverse, low-decline base Shareholder production DISTRIBUTIONS Large, low cost of supply resource base Strong DISCIPLINED BALANCE Capital Flexible, short-cycle investment SHEET Allocation RETURNS options
Slide 8: Appendix
Appendix
Slide 9: Annualized Net Income Sensitivities
Annualized Net Income Sensitivities • Crude • Brent/ANS: $100-120MM for $1/BBL change • WTI: $35-45MM 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: $75-85MM for $0.25/MCF change • International g
Slide 10: 2016 Outlook Guidance
2016 Outlook Guidance • 2016 DD&A of ~$8.5B • Reflects reduction in consolidated volumes • Operating Costs of ~$7.0B • Production and SG&A expense of ~$6.4B • Exploration G&A and G&G of ~$0.6B • Exploration Dry Hole and Impairment Expense of ~$0.8B • Corporate Segment Net Loss of ~$1B 10
Slide 11: 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
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