Conocophillips · NYSE:COP
Conocophillips — Howard Weil 2010 Energy Conference
18 slides from Conocophillips's conference presentation, Mar 22, 2010
Slide 1: Howard Weil 2010 Energy Conference
Howard Weil 2010 Energy Conference Jim Mulva Chairman & Chief Executive Officer March 22, 2010
Slide 2: Cautionary Statement
CAUTIONARY CAUTIONARY STATEMENT STATEMENT FOR FOR THE THE PURPOSES PURPOSES OF OF THE THE “SAFE “SAFE HARBOR” HARBOR” PROVISIONS PROVISIONS OF OF THE PRIVATE SECURITIES LITIGATION REFORM ACT THE PRIVATE SECURITIES LITIGATION REFORM ACT OF OF 1995 1995 The following presentation includes forward-look
Slide 3: 2009 Highlights
2009 Highlights Adjusted 2.29 MMBOED production Earnings* 84% Refining utilization $5.4B Exceeded full year cost Cash From reduction target Operations 141% reserve replacement $12.5B Exploration success Debt-to-Cap 6% quarterly dividend 31% increase * See Appendix for reconciliation of a
Slide 4: 2009 Financials
2009 Financials $MM Cash From Operations Adjusted Earnings* 6,000 5,000 LUKOIL 4,000 34% 34% $1.7B 33% Upstream 3,000 $4.1B 31% B CPChem $0.25 3B $0.2 2,000 B Midstream .12 $0 R&M 1,000 0 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Excludes Corporate & Other Segment adjusted loss of (1.0B) CFOA Debt to Capital
Slide 5: Total Company Cash Flow
Total Company Cash Flow 2009 Asset Sales $B & Other* Debt Dividends 1.1 1.2 2.8 Capital Program CFOA 12.0 12.5 Sources of Cash Total Uses of Cash $14.8 * Includes reduction in cash balance 5
Slide 6: Controllable Cost Reductions
Controllable Cost** Reductions Controllable Cost Reductions 2009 2009 vs. vs. 2008 2008 $B 14.7 12.7 2008 Currency Rates Market Factors New Projects Severance Operations 2009 Costs *Includes production and operating expenses, selling, general, and administrative expenses, and exploration expenses ex
Slide 7: E&P Production
E&P E&P Production Production E&P Production (MBOED) E&P Production Contribution 2009 (% of total MBOE) US Gas 1,134 1,101 18% 1,014 1,054 1,106 33% Int’l Liquids 26% 775 791 771 737 722 Int’l Gas 23% US Liquids 2008 1Q09 2Q09 3Q09 4Q09 US International 2009 Full Year Production of 1.85 MMBOED 7
Slide 8: E&P Production
E&P Production 2009 vs. 2008 MBOED 50 17 15 4 13 1,789 1,854 2008 Market Factors Portfolio Planned 2008 Hurricanes Operations 2009 Changes Maintenance 8
Slide 9: Total Company Reserves
Total Company Reserves 2009 vs. 2008 MMBOE 18 638 865 248 312 9,975 10,326 YE 2008 Syncrude Revisions Performance* Purchases/Sales Production YE 2009 Total Reserve Replacement of 141%; 112% excluding Syncrude * Includes improved recovery and extensions and discoveries 9
Slide 10: 2009 E&P Project Updates
2009 E&P Project Updates Oil Sands Expansions in Canada • 2009 Production growth of 14% compared to 2008 • Approval of Christina Lake and Surmont expansions • Continued advancement of technology applications Major Project startups in Bohai Bay and North Belut Exploration Program: • Discoveries
Slide 11: R&M Utilization
R&M R&M Utilization Utilization 11.02 10.88 Maintaining operating excellence 10.12 8.81 Reducing costs Optimizing run plans US Gas 92% 93% 93% 85% 85% 81% 83% 80% 72% 58% Minimizing Int’l Liquids 5.95 investments Int’l Gas Completing asset US Liquids 2008 1Q09 2Q09 3Q09 4Q09 upgrades US In
Slide 12: 2010 Focus
2010 Focus Portfolio Operational Capital Discipline Rationalization Excellence ¾Reduce spending ¾$10B asset sales ¾Operate safely & level to $11.2B over 2 years reliably ¾Increase allocation ¾Initial targets ¾Ensure environmental to Upstream identified and stewardship process underway ¾Maintain Expl
Slide 13: E&P Production
E&P Production $12.4 $9.7 $9.7 1.79 1.85 ~1.8 2008 2009 2010 MMBOED Capital Spend* $B Expect 2010 production to return near 2008 levels *Excludes 2008 transaction with Origin 13
Slide 14: Capital Spending
Capital Spending 2010 Capital Program Selected Upstream Investments $11.2 Billion Project Phase First Production Selective Ongoing Various Exploitation Oil Sands Ongoing Continued Growth Ramp-up QG3 Construction Second half 2010 Downstream Upstream Kashagan Construction 2012/2013 12% 87% Gumusut Con
Slide 15: 2010 Exploration Focus Areas
2010 Exploration Focus Areas North Atlantic UK & Norway Central Graben: New HPHT Triassic and subsalt wildcats Mid-Norway Jurassic well Eastern Canada: Laurentian basin wildcat Poland Shale Caspian Sea Kazakhstan: N Block Deepwater Gulf of Mexico Lower Tertiary North America onshore Fo
Slide 16: Creating Shareholder Value
Creating Shareholder Value Focusing on returns Optimizing the portfolio Strengthening financial position Increasing shareholder distributions Positioning for the future 16
Slide 17: Appendix
Appendix Se —conocsPhilips 17
Slide 18: COP Reconciliation of Earnings to Adjusted Earnings
COP Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings Millions of dollars, except per share amounts 2009 1Q 2Q 3Q 4Q 2009 Consolidated Adjusted earnings (loss) $ 840 1,298 1,503 1,217 $ 4,858 Less: Impairments - 123 33 573 729 Net gain on asset sales/sha