ConocoPhillips · NYSE:COP

ConocoPhillips — Investor Day (March 2011)

113 slides from ConocoPhillips's investor day presentation, Mar 23, 2011

1. Slide 1: 2011 Analyst Meeting

   2011 Analyst Meeting March 23, 2011 New York, NY

2. Slide 2: Cautionary Statement

   Cautionary Statement FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 The following presentation includes forward‐looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competi

3. Slide 3: Agenda

   Agenda 8:30 – 8:50 a.m. Corporate Strategy Jim Mulva – Chairman & Chief Executive Officer 8:50 – 9:10 Corporate Initiatives Al Hirshberg – Senior Vice President, Planning & Strategy 9:10 – 9:55 Exploration & Production ‐ International Ryan Lance – Senior Vice President, E&P International Exploration

4. Slide 4: Jim Mulva

   Jim Mulva Chairman & Chief Executive Officer

5. Slide 5: 2010 Decisive Actions

   2010 Decisive Actions  Increase ROCE / CROCE  Constrain capital to highest return projects  Sell assets and reduce debt  10 BBOE resources to reserves in 10 years  Grow production per share  Reduce refining capacity  Increase shareholder distributions Creating shareholder value 4

6. Slide 6: Delivering Shareholder Value

   Delivering Shareholder Value  ROCE increased from 7% to 10%  Delivered constrained capital program  Executed ~$7 B in asset sales  Sold ~$9 B in LUKOIL shares  Debt reduced by ~$5 B  On track to deliver per share growth  E&P organic reserve replacement 138%  Share repurchases ~$4 B  Increas

7. Slide 7: Uniquely Positioned to Create Value

   Uniquely Positioned to Create Value Cash from Operations  Strong OECD‐based cash flow 16%  Continued non‐core asset sales OECD  Pipeline of growth projects Non‐OECD 84%  Disciplined capital investment $92 B Capital Employed  Improving margins and returns 9% E&P 25%  Shareholder focus R&M 66% O

8. Slide 8: Strategic Objectives

   Strategic Objectives  Improve returns on capital employed  Increase production per share  Expand margins per BOE  Organically replace reserves at competitive F&D  Enhance exploration portfolio  Reduce downstream exposure  Increase shareholder distributions Restructuring portfolio to enhance m

9. Slide 9: Key 2011 / 2012 Initiatives

   Key 2011 / 2012 Initiatives  Disciplined $28 B capital program  Additional $5‐10 B in asset sales  $10+ B in share repurchases  100%+ reserve replacement  Reduce refining capacity Continued ROCE and CROCE improvement 8

10. Slide 10: Asset Sales Program

    Asset Sales Program  Announced $10 B program for 2010/11  $7 B in 2010 proceeds 2010 results  Expect 2011/12 assets sales of $5‐10 B  ~$114,000/BOED production  Total of $12‐17 B over 3‐year period  ~$19/BOE reserves  Selection criteria: • Non‐strategic • Mature, high cost properties • Abilit

11. Slide 11: Capital Program

    Capital Program $B 16 12 14 ‐ 15 8 per year 13.5 12.0 10.7 4 0 2009 2010 2011E 2012E ‐ 2015E Growth driven by higher‐return projects 10

12. Slide 12: Production per Share Growth

    Production per Share Growth BOE Production / Share 0.58  Near‐term production A GR C decrease offset by share 0.54 5% repurchase program 0.50  Absolute production 0.46 growth expected long term 0.42 0.38 2011E 2012E 2013E 2014E 2015E 11

13. Slide 13: Annual Dividend Increases

    Annual Dividend Increases COP Quarterly Dividend Growth 66  14% CAGR Quarterly dividend (cents/share) 55 47 50  Nine consecutive annual increases 41 36  Current yield = 3.5% 31 22 25  ~20% of operating cash flow 20  Annual increases expected '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 Current yield

14. Slide 14: 2011 / 2012 Cash Sources and Uses

    2011 / 2012 Cash Sources and Uses $B 70 60 50 5‐10 28 40 ‐ Additional Share 30 38 Repurchases 7 2 ‐ Additional Capex 20 11 10 10 5‐10 0 Beginning Cash Cash from Asset Sales Capital Program Debt Reduction Share Available Cash & ST Operations & Dividends Repurchase Investments First Call estimates use

15. Slide 15: Growth in Returns

    Growth in Returns Capital Efficiency ‐ ROCE and CROCE  Reduced NA gas and refining 30% ROCE CROCE  Continued capital discipline 25%  Improved cash margins 20%  Increased prices and margins 15%  Repurchased shares accelerate 10% improvement 5% 0% 2009 2011E 2013E 2009 2011E 2013E Continued focus

16. Slide 16: Strategy Implementation

    Strategy Implementation Long‐Term Key Metrics 2010 Position 2013 Outlook Expectation E&P 5‐year Reserve Replacement 111% 100%+ 100%+ E&P Production ‐ MMBOED 1.75 1.6 – 1.7 2 – 3% growth Annual E&P Production per Share1 .45 ~5% growth 3 – 5% growth E&P 5‐year F&D Cost / BOE $17 ~$16 – $18 ~$16 – $18

17. Slide 17: Delivering Shareholder Value

    Delivering Shareholder Value  100%+ reserves replacement Strong OECD‐based cash flow Continued asset sales  Production/share growth Pipeline of growth projects  Improved returns Disciplined capital investment  EPS/CFPS growth Strengthening asset portfolio  Increased distributions Unique approac

18. Slide 18: Al Hirshberg

    Al Hirshberg Senior Vice President – Planning & Strategy

19. Slide 19: Business Environment

    Business Environment  Long‐term hydrocarbon demand expected to increase; supply challenged  Strong near‐term oil demand growth with economic recovery  Improved international natural gas markets; near‐term surplus in North America  Increased refining margins  Difficult political environment 18

20. Slide 20: Global Energy Demand

    Global Energy Demand 400 Forecast 350 50% Growth 300 a bles ew 250 Ren clear Nu MMBOED 200 Coal 150 Natural Gas 100 50 Liquids 0 1965 1975 1985 1995 2005 2015 2025 2035 Fossil fuels projected to meet 80% of energy demand in 2035 Source: U.S. Department of Energy, International Energy Outlook & BP St

21. Slide 21: Changes in World Oil Demand

    Changes in World Oil Demand Million Barrels per Day, Y/Y, 3‐month moving average 4 3 2 1 0 ‐1 ‐2 ‐3 Jan‐10 Jan‐11 Jan‐05 Jan‐06 Jan‐07 Jan‐08 Jan‐09 Jan‐01 Jan‐02 Jan‐03 Jan‐04 Jul‐10 Jul‐04 Jul‐05 Jul‐06 Jul‐07 Jul‐08 Jul‐09 Jul‐01 Jul‐02 Jul‐03 Strong global oil demand growth reverses impact of re

22. Slide 22: Global LNG Supply / Demand Balance

    Global LNG Supply / Demand Balance 80 70 60 LNG demand 50 Risked Announced Projects BCFD 40 2011 ‐ 2015 30 2008 ‐ 2010 20 Start up 2000 ‐ 2007 dates for sanctioned 10 1990 ‐ 1999 projects 1980 ‐ 1989 pre‐1980 0 2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030 New supplies needed Source: COP In

23. Slide 23: U.S. Natural Gas Supply Sources

    U.S. Natural Gas Supply Sources Unconventional natural gas will dominate new U.S. supply Source: COP. Existing production includes observed decline rate, including reinvestment. 22

24. Slide 24: Summary of Consensus Forecasts

    Summary of Consensus Forecasts Short‐Term:  Oil prices to remain strong from Crude Oil $90 ‐ 105/BBL increasing demand and higher WTI Long‐Term: reserve replacement cost $80 ‐ 110/BBL Short‐Term: Natural Gas $4 ‐ 5/MMbtu  North American natural gas prices will remain weak due to rapid Henry Hub Lo

25. Slide 25: Resource Addition and Conversion

    Resource Addition and Conversion Exploration and Business Development  Effective capital allocation  Project execution excellence Resources 35 BBOE  Strengthened procurement  New technology integration 43 BBOE  Exploration and BD success Reserves 8 BBOE 24

26. Slide 26: Capital Program Principles

    Capital Program Principles  Ensure maintenance capital provided  Fully fund high‐margin exploitation  Disciplined funding of major projects  Consistently fund exploration  Consider targeted asset acquisitions  Cash from operations funds capital program Optimized through centralized decision‐ma

27. Slide 27: 2011 Capital Program

    2011 Capital Program By Segment By Region By Type $13.5 B $13.5 B $13.5 B R&M Refining & Other Asia $1.5 $1.2 Pacific Maintenance $2.8 $1.5 Exploration Europe, $1.7 Africa & Mideast $3.6 Exploitation $2.6 E&P $12.0 North Major Projects America $6.2 $6.8 All figures in $B. Capital program by segment

28. Slide 28: Project Execution Excellence

    Project Execution Excellence  Project Development functional Project Performance Improved Significantly organization established in 2006 120% 121% • Lower unit development cost 100% 116% 105% • Faster commercialization of 80% 95% resources 60%  Key challenges 40% Cost • Upward cost pressures 20% S

29. Slide 29: Procurement Cost Savings

    Procurement Cost Savings  Captured cost reductions in downturn  Improved cost structure in 2010  Broadened scope of procurement capabilities ~$600 MM1 Annualized Savings in 2010 Logistics Well Ops Corporate Contracting Maintenance Equipment Catalyst & Chemicals 1 Includes ~$400 million of avoided

30. Slide 30: Leveraging Technology to Unlock Value

    Leveraging Technology to Unlock Value  Maximize resource value Technology R&D ‐ $MM • Oil sands • 4D seismic enhancements 400 • Shale oil 350 300  Enable challenged resource 250 development 200 • Arctic 150 100 • Deepwater 50 • Heavy oil 0 • Oil shale extraction 2009 2010 2011E 2012E Increasing fo

31. Slide 31: Improving Capital Investment Execution

    Improving Capital Investment Execution  Disciplined capital allocation  Improved project execution  Procurement strategy lowering costs  Increased technology integration Maximizing value of reinvested capital 30

32. Slide 32: Ryan Lance

    Ryan Lance Senior Vice President – E&P International

33. Slide 33: Exploration & Production Strategy

    Exploration & Production Strategy  Safety and operational excellence  100%+ organic reserve replacement  2 ‐ 3% long‐term production growth  Convert 10 BBOE resources to reserves over 10 years  Competitive F&D cost  High‐impact exploration  Consistently high‐grade portfolio  Improve returns

34. Slide 34: Funding Growth and Enhancing Returns

    Funding Growth and Enhancing Returns  Progressing major projects • 12 key sanctions in 2011 • 500 MBOED from startups by 2015  Growing North America liquids production • 170 MBOED from L48 shale and Permian by 2013  Maintaining gas price upside optionality  Building and high‐grading exploration

35. Slide 35: Safety & Operational Excellence

    Safety & Operational Excellence Total Recordable Incident Rate Other 2010 Achievements vs. 2008 1.0  Process safety incidents reduced 77% 0.8 51% reduction  Hydrocarbon spill volumes reduced 93%  E&P uptime increased ~1.5% 0.6 Marine Well Containment Company 0.4  Founding member 0.2  60 MBPD ea

36. Slide 36: Global Overview

    Global Overview Alaska North Sea Russia / Caspian 240 MBOED 350 MBOED 50 MBOED Largest oil & gas High value exploitation Large resource potential producer & major projects Canada 270 MBOED Asia Pacific Lower 48 World class SAGD1 280 MBOED portfolio & new Diverse & expanding 440 MBOED resource plays

37. Slide 37: E&P Cash Margins

    E&P Cash Margins 5‐year ‐ $/BOE 2010 ‐ $/BOE 2010 COP Detail ‐ $/BOE 30 30 60 COP Peers COP Peers O&O Taxes & other Cash 25 25 50 $23 20 20 40 15 15 30 10 10 20 5 5 10 0 0 0 Consistent delivery of competitive margins Cash margin is calculated as income plus DD&A based on total BOE production. All co

38. Slide 38: Discovered Resource

    Discovered Resource YE2010 Resource by Product YE2010 Resource by Location Russia Middle East Caspian & Africa Lower 48 Gas 25% Asia Pacific Non conventional Alaska North Sea LNG 8% Canada Liquids Arctic Conventional 67% W. Canada gas Gas Canada Conventional oil SAGD 43 BBOE discovered resource Reso

39. Slide 39: Proved Reserves Replacement

    Proved Reserves Replacement Reserves Replacement 2011 ‐ 2015 Reserve Additions 200% Russia Exploration Caspian 2010 Organic Middle East RRR = 138% & Africa 150% Lower 48 100% Asia Pacific Alaska 50% North Sea Canada 0% 2006 ‐ 2010 2011 ‐ 2015E F&D ($/BOE) 17 ~16 ‐ 18 Reserves replacement >100% at co

40. Slide 40: Production Outlook

    Production Outlook Production by Product ‐ MMBOED Sources of Growth 2.5 Liquids LNG Int'l gas N America gas  Asia Pacific • APLNG, Malaysia, Indonesia 2.0  North Sea • Jasmine, Clair, Ekofisk, Eldfisk 1.5  Caspian 1.0 • Kashagan  L48 liquids 0.5 • Eagle Ford, Bakken, Barnett, Permian  Canada SA

41. Slide 41: 2011-2015 New Production Volumes

    2011‐2015 New Production Volumes MBOED Asset / Region 2010 Cash Margins 800 Rest of World Various Other L48 & $14 ‐ $40 / BOE 600 W Canada North Sea $29 / BOE 400 SAGD $30 / BOE L48 liquids growth $31 / BOE 200 Asia Pacific $35 / BOE Qatargas 3 Attractive 0 2010 2011E 2012E 2013E 2014E 2015E Exploit

42. Slide 42: 2011 Capital Program

    2011 Capital Program Capital ‐ $B Major Projects Maintenance Major projects Other Exploitation Exploration & appraisal 14 12 Eagle Ford Caspian 10 1 Malaysia C MWC 8 6 Canada SAGD APLNG 4 North Sea 2 0 2009 2010 2011E Increased investment to fund attractive projects 1 Marine Well Containment Company

43. Slide 43: Qatargas 3

    Qatargas 3  Accelerated startup and ramp‐up • First LNG produced November 2010 • Current production >80 MBOED net • 30% liquids yield  Future LNG deliveries targeted toward Europe, China and SE Asia  Low F&D and attractive cash margins 42

44. Slide 44: Asia Pacific

    Asia Pacific 2010 Cash Margins ‐ $/BOE 80 60 $35 40 $23 20 0 Asia Pacific E&P avg. 2 O&O Taxes & other Cash  Expanding high margin legacy position Production ‐ MBOED  Investing $2.4 B in 20111 600 CAGR ~8% 450  Future growth driven by 300 77% • APLNG, Sunrise, Poseidon 150 • Malaysia deepwater 0

45. Slide 45: Australia Pacific LNG

    Australia Pacific LNG  Leading reserves and resource position  Focused on capital reduction  Growing Asia LNG demand  Largest domestic gas supplier  Returns consistent with long‐life, low‐decline project 44

46. Slide 46: APLNG Project Metrics

    APLNG Project Metrics Cash Margins ‐ $/BOE2 80 60 40 $41 20 $6 0 2010 2017E O&O Taxes & other Cash  Investing $1.4 B in 2011 Production ‐ MBOED  Project F&D = $10 ‐ $14 / BOE1 200 CAGR ~30% • Upstream = $7 ‐ $9 / BOE 150 • Pipeline & LNG = $3 ‐ $5 / BOE 100 50  Project sanction ‐ mid 2011 0 2010

47. Slide 47: Other Asia Pacific Major Projects

    Other Asia Pacific Major Projects Malaysia Indonesia  Multiple deepwater developments  S Belut and Bawal: Block B expansions  KBB/Malikai sanction in Q2 2011  Caltex 3 and Suban: Corridor Block PSC  ~80 MBOED net peak production  ~25 MBOED net peak production  Investing $0.4 B in 2011  Inves

48. Slide 48: North Sea

    North Sea 2010 Cash Margins ‐ $/BOE 80 60 $29 40 $23 20 0 North Sea E&P avg. O&O Taxes & other Cash  Investing $1.5 B in 20111 Norway Production ‐ MBOED • Jasmine, Clair Ridge, Ekofisk S, Eldfisk II 200 • Avg. project F&D = $16 ‐ $20 / BOE2 150 • Full cycle IRRs >20% 77% 100  Future major projects

49. Slide 49: Major Project Startups

    Major Project Startups Alaska Canada Arctic North Sea Alpine West (CD5) Parsons Lake Jasmine Lookout (CD6) Amaluigak Britannia LTCP1 ANS gas Umiak Ekofisk South Ugnu Eldfisk II Clair Ridge Canada SAGD Rivers Phase II Caspian China Christina Lake C Tor Redevelopment Kashagan 12 Bohai Phase II Christi

50. Slide 50: Greg Garland

    Greg Garland Senior Vice President – E&P Americas

51. Slide 51: North America Business Overview

    North America Business Overview Western North Slope Greater Kuparuk Greater Prudhoe North Slope Gas  5 BBOE+ proved reserves Cook Inlet Mackenzie Delta  HBP acreage with significant Horn River Montney Thornbury / Clyden / Saleski upside potential Surmont Deep Basin Foster Creek / Christina Lake 

52. Slide 52: 2011 L48 & W Canada Programs

    2011 L48 & W Canada Programs Drilling Program = $2.9 B1 2011 Total Production Other Other Offshore GOM Panhandle/Anadarko Cedar Creek Anticline Cedar Creek Anticline Offshore GOM Permian WCG Permian San Juan Conventional d l e For WCG Deep Other Eag en Basin Bakk Barnett Horn Lobo River Barnett Bakk

53. Slide 53: 2011 L48 Drilling Activity

    2011 L48 Drilling Activity Cedar Creek 109 Bakken Anticline 4 San Juan 195 Panhandle / 24 Anadarko 60 Barnett Permian 141 2011 Target gross wells 144 # Liquids growth areas Lobo 14 Eagle Ford # Other core area 4 GOM 52

54. Slide 54: Eagle Ford

    Eagle Ford 2010 Cash Margins ‐ $/BOE 80 60 40 $23 $45 20 0 Eagle Ford E&P avg. O&O Taxes & other Cash Latest Well Results ‐ 30 day average  ~220 M core acres in liquids rich fairway  Early mover with low acreage costs Well Liquids BPD Wet gas BOED Total BOED  Current liquids yield of ~75% Esse 1

55. Slide 55: Bakken

    Bakken 2010 Cash Margins ‐ $/BOE 80 60 40 $40 $23 20 0 Bakken E&P avg. O&O Taxes & other Cash  460 M net acres in high‐liquids play Latest Well Results ‐ 30 day average Liquids Wet gas Total  Continued performance improvements Well BPD BOED BOED  2010 EUR1 41% higher than 2009 Cleo 2‐1 H 866 166

56. Slide 56: Permian and Barnett

    Permian and Barnett 2010 Cash Margins ‐ $/BOE 80 60 40 $23 $28 20 0 Permian/Barnett E&P avg. O&O Taxes & other Cash Permian Barnett  1,040 M net acres HBP  65 M net acres with majority HBP  Current liquids yield of ~65%  Current liquids yield of ~45% 77%  Low‐decline production  Expanding nort

57. Slide 57: Liquids Growth Summary

    Liquids Growth Summary Early mover 2010 Cash Margins ‐ $/BOE Low‐cost acreage in 80 Eagle Ford & Bakken 60 + 40 $31 $23 Material position 20 0 ~1.8 MM acres Liquids growth E&P avg. ~2.3 BBOE resource O&O Taxes & other Cash + Best part of plays Production ‐ MBOED Good rocks 250 CAGR ~25% Liquids rich

58. Slide 58: San Juan

    San Juan 2010 Cash Margins ‐ $/BOE 80 60 40 $23 20 $14 0 San Juan E&P avg. O&O Taxes & other Cash  1,300 M acres HBP; 1.7 BBOE resource Production ‐ MBOED  Lowest cost and largest producer in basin 250 200  27% liquids with low base decline 150  Operating 10,000+ wells 77% 100 50  Strong econom

59. Slide 59: Western Canada

    Western Canada 2010 Cash Margins ‐ $/BOE 80 60 40 $23 20 $19 0 W Canada E&P avg. O&O Taxes & other Cash Production ‐ MBOED  6,800 M net acres; 1.7 BBOE resource 250  Geologically diverse portfolio 200  137 M net acres in Cardium 150 100  Deep Basin horizontal well program 50 0 exceeding expectat

60. Slide 60: L48 and W Canada Production Outlook

    L48 and W Canada Production Outlook Product Type ‐ % Production ‐ MBOED 100% 800 80% 600 60% 400 40% 200 20% 0% 0 2010 2011E 2012E 2013E 2010 2011E 2012E 2013E Liquids Gas Increasing liquids yield driving improved cash margins Excludes impact of future dispositions. 59

61. Slide 61: Canadian SAGD Portfolio

    Canadian SAGD Portfolio 2010 Cash Margins1 ‐ $/BOE Cumulative Steam Oil Ratios3 ‐ BBL/BBL 80 60 8 40 $23 $30 20 0 6 SAGD E&P avg. O&O Taxes & other Cash Foster Creek Surmont lifecycle 4 Christina Lake Surmont 1  Significant 15+ BBOE resource  2nd largest SAGD producer in Canada  Investing $1.2 B

62. Slide 62: SAGD Production Growth

    SAGD Production Growth Project Phase Start‐up1 SAGD Production ‐ MBOED Foster Creek A‐E 2002 CAGR ~15% 300 Christina Lake A‐B 2002 Surmont 1 2007 250 Christina Lake C 2011 Christina Lake D 2013 200 Surmont 2 2015 Foster Creek F 2014 150 Foster Creek G 2016 Foster Creek H 2017 100 Christina Lake E 20

63. Slide 63: Alaska

    Alaska  Largest producer & reserves holder  Strong cash margins  Future growth driven by • In‐field drilling opportunities • Western North Slope satellites Drilling Program Capital ‐ $MM • Unlocking heavy oil potential 400 300 • ANS gas commercialization 200 100 0 2009 2010 2011E 62

64. Slide 64: North America Summary

    North America Summary North America Cash Flow  Develop liquids rich areas 26%  Grow SAGD production 2015E 74% ~40% ~5%  Exploit legacy position in Alaska increase in cash from increase in ROCE ops 14%  Advance new technology 2010 86%  Maintain gas optionality L48 liquids growth areas Other N Am

65. Slide 65: Larry Archibald

    Larry Archibald Senior Vice President – Exploration & BD

66. Slide 66: Exploration

    Exploration  Increased focus on high‐impact exploration • Discovered resources exceed production • Increased appraisal spend for recent successes  Building and high grading portfolio • Expand deepwater footprint • Add conventional opportunities • Grow unconventional position Material resource addi

67. Slide 67: Exploration & Appraisal Capital

    Exploration & Appraisal Capital Capital Distribution  Lease access ~5% ~20% • Includes Angola deepwater and shale plays 2011 ~40% >$1.7 B ~35%  Appraisal drilling • Includes Australia, GOM, Indonesia, Eagle Ford, Bakken and Barnett 8% 20% 31% 2010  Exploration drilling $1.3 B 41% • Includes wildc

68. Slide 68: 2011 Exploration & Appraisal Activity

    2011 Exploration & Appraisal Activity North Atlantic & Europe  Greenland: Baffin Bay seismic North America onshore  Norway: Peking Duck HPHT wildcat  Canada: Deep Basin, Horn River, Montney…  Poland: Shale pilot program  US: Eagle Ford, Bakken, Barnett, Avalon… Caspian Sea  Kazakhstan: N Block

69. Slide 69: Deepwater Angola

    Deepwater Angola Angola  Negotiating terms for 30% WI & operatorship of Blocks 36 & 37 Luanda 36  Analogous to Brazil pre‐salt play 37  3D seismic – 2011/2012  Drilling from 2013+ 200 Kms Securing position in promising pre‐salt deepwater play 68

70. Slide 70: Caspian Sea Exploration

    Caspian Sea Exploration NCPSA Kazakhstan Russia Kazakhstan N Block Rak More discovery  Rak More discovery N Block Nursultan wildcat  Further appraisal planned  Nursultan wildcat – late 2011 / early 2012 Azerbaijan Turkmenistan Turkmenistan Block 19  Negotiating PSC terms for Block 19 Iran Contin

71. Slide 71: Gulf of Mexico Deepwater

    Gulf of Mexico Deepwater  Good opportunities to expand Gulf of Mexico position Lower Tertiary Play Area  Coronado wildcat Tiber 1000 ft 5000 ft 8000 ft  Tiber and Shenandoah appraisal 10000 ft Coronado Shenandoah COP leases Resume wildcat and appraisal drilling in Lower Tertiary play 70

72. Slide 72: North Sea Exploration

    North Sea Exploration Peking Duck  Wildcats to test deep Triassic prospects Pelikan • Analogous to UK J‐Block discoveries Jackdaw Jade  Peking Duck wildcat in 2011 Norw  Pelikan wildcat in 2012 UK ay Jasmine Judy Joanne Triassic fields & discoveries Triassic prospects Exploring for Triassic J‐Blo

73. Slide 73: Australia Browse Basin

    Australia Browse Basin  Kronos‐1 well confirmed commercial flow rate capability Poseidon‐1 Kronos‐1 Poseidon‐2  Multi‐well exploration and appraisal program in 2011/2012 • Additional Poseidon prospectivity COP discovery Other discoveries COP prospect Continuing to explore greater Poseidon area 72

74. Slide 74: North American Shale Plays

    North American Shale Plays Horn River Montney  Liquids rich opportunities Bakken  Early access  Technology Barnett  Established and emerging shale plays Avalon Shale plays Eagle Ford Liquids rich Material COP position Gas Accessing high quality opportunities 73

75. Slide 75: Poland Shale Play

    Poland Shale Play  Accessed 1 MM acre position Lebien vertical pilot well – 2010 Re‐entry and horizontal test – May 2011  Continuing pilot program  Drilled 2 vertical pilot wells Damnica vertical pilot well and  Horizontal pilots in 2011 horizontal test – Aug 2011 Legowo vertical pilot well – 20

76. Slide 76: Exploration & Production Summary

    Exploration & Production Summary  Unique OECD‐based portfolio  Competitive programs and projects  Growing North America liquids production  Maintaining North America gas optionality  Increasing margins per BOE  Enhancing exploration portfolio Improving returns and growing cash flow 75

77. Slide 77: Willie Chiang

    Willie Chiang Senior Vice President – RMT & Commercial

78. Slide 78: Downstream Strategic Objectives

    Downstream Strategic Objectives Global Refining Capacity ‐ MMBD  Drive operational excellence  Improve ROCE 2.7 2.4 2.2 1.9  Reduce refining capacity 2010 2011E 2012E 2013E  Maximize upstream Downstream ROCE integration value  Improve utilization 11% 13% 8%  Increase clean product yield 5% 201

79. Slide 79: 2010 Peer Comparison

    2010 Peer Comparison U.S. Operations Income ‐ $/BBL 6 Peer Range  Reliable operations 5 4  Advantaged crude 3 2  Low‐cost, integrated 1 value chains 0 (1) 2006 2007 2008 2009 2010 Strong relative performance in all cycles 78

80. Slide 80: Sources of Improved Returns

    Sources of Improved Returns ROCE Improvement  Optimization initiatives  Portfolio restructuring 5+% 4+% 15+%  Market improvements 2+% 5% 2010 2011 Restructuring/ Market Long‐term Initiatives Improvements Impacts Restructured portfolio generates mid‐teens returns on capital 79

81. Slide 81: 2011 Operating Initiatives

    2011 Operating Initiatives Clean Product Yield  Maintain safe and reliable operations 83.3% 84.1% 81.6%  Control costs 2009 2010 2011E  Increase clean product yield 2011 Crude Advantage LLS/HLS 9% Heavy/Acid  Optimize margins 23% 34% Brent 16%  Capture feed stock advantage 6% 12% WTS ANS WTI De

82. Slide 82: Downstream Portfolio Management

    Downstream Portfolio Management Asset Sales ‐ $B  Asset sales • $6+ B of assets sold since 2003 2 • $1 B in asset sales in 2011  Implement portfolio options 1 • Asset sales • Refinery joint ventures • Convert to terminal 0 '03 '04 '05 '06 '07 '08 '09 '10 '11E Positioning portfolio for superior per

83. Slide 83: Downstream Portfolio Restructuring

    Downstream Portfolio Restructuring  Reduce 500 MBD capacity Top  Screening criteria • Upstream integration • Financial performance Strategic Fit Middle • Competitive position ROCE by Refining System Bottom ROCE Threshold Competitive Position Core Non‐core Remaining business expected to generate mi

84. Slide 84: Market Outlook

    Market Outlook Global Light Oil Crack1 ‐ $/BBL  Global economy strengthening 20 External Range 15  Challenging market, regulatory 10 and legislative environment 5 0 2003 2005 2007 2009 2011 2013 2015  Geopolitical environment LLS–Maya Crude Differential ‐ $/BBL driving volatility 20 External  Fu

85. Slide 85: 2011 Capital Program

    2011 Capital Program  Improving reliability and asset RMT Capital Program integrity $2.1B  Completing committed $1.3B regulatory projects $1.2B 2010  Implementing selective high‐ DD&A return projects 2009 2010 2011E  Targeting base capital at DD&A Sustaining / Reliability Regulatory levels Retur

86. Slide 86: Wood River CORE Project

    Wood River CORE Project January 2010  Upstream integration  Increases heavy crude gross capability by 130 MBD February 2011  Improves clean product yield by 5%  Start‐up Q4 2011 Project improves realized margin ~$4/BBL 85

87. Slide 87: Creating Value

    Creating Value  Drive operations excellence  Reduce refining capacity  Improve realized margins  Capture market opportunities Generate mid‐teens returns and free cash flow 86

88. Slide 88: Jeff Sheets

    Jeff Sheets Senior Vice President – Finance & Chief Financial Officer

89. Slide 89: DCP Midstream Joint Venture

    DCP Midstream Joint Venture  50 / 50 JV with Spectra Energy  Largest U.S. NGL producer  Increased demand for natural gas infrastructure  $500 MM/year average distribution to COP over last five years  COP 2010 ROCE > 30% Includes DCP Midstream Partners. 88

90. Slide 90: Chevron Phillips Chemical JV

    Chevron Phillips Chemical JV  50 / 50 JV with Chevron  QChem II (2010) and Saudi Polymers (2011) start up  2010 strongest year since formation in 2000  $300 MM/year average distribution to COP over last five years  COP 2010 ROCE > 20% 89

91. Slide 91: Creating Shareholder Value

    Creating Shareholder Value Improved Strengthened production per balance sheet share Improved E&P Share price Higher capital income and cash appreciation efficiency flow per BOE Improved R&M Consistent and other distribution earnings growth 90

92. Slide 92: Asset Dispositions Impacts

    Asset Dispositions Impacts Asset Value Production Reserves 2011 ‐ 2012 E&P assets 50‐100 200‐400 Downstream assets $5‐10 B MBOED MMBOE Other assets Potential Dispositions  Non‐strategic North Sea assets  Additional North America rationalization  15% APLNG  Selective country exits  Non‐core down

93. Slide 93: Improved Financial Flexibility

    Improved Financial Flexibility Debt‐to‐Capital Ratio 35% 30%  20 ‐ 25% debt‐to‐capital target 25% 20%  ~90% fixed‐rate debt 15%  Well‐structured debt 10% maturity profile 5%  Strong liquidity position 0% XOM CVX RDS COP BP TOT No need for substantial debt reduction 92

94. Slide 94: Controllable Costs

    Controllable Costs $B 2% reduction 15 targeted for 2011 2011 cost reductions driven by: 10 • Dispositions • Procurement savings 5 • Operations optimization 0 2010 2011E Targeting cost reduction in 2011 despite rising industry costs 93

95. Slide 95: Growing Income from Constant Capital Base

    Growing Income from Constant Capital Base Adjusted Earnings ‐ $ B Average Capital Employed ‐ $ B (excluding LUKOIL segment) 12 100 90 10 80 8 70 60 6 50 40 4 30 2 20 10 0 0 2009 2010 2011E 2012E 2009 2010 2011E 2012E 2011 & 2012 earnings calculated using first call EPS as of 3/4/2011. 94

96. Slide 96: Improving Return on Capital Employed

    Improving Return on Capital Employed % of Total Capital Employed 100% 90% 80% 52% 70% 58% 62% All Other 60% 50% 40% 26% 30% 24% 20% R&M 20% 10% 22% 18% 18% L48 & Canada Gas 0% 2009 2011E 2013E 7% ROCE 10% ROCE 15% ROCE Portfolio shift helps drive returns improvement First Call estimates used for 201

97. Slide 97: Growth in Returns

    Growth in Returns Capital Efficiency ‐ ROCE and CROCE  Reduced NA gas and refining 30% ROCE CROCE  Continued capital discipline 25%  Improved cash margins 20%  Increased prices and margins 15%  Repurchased shares accelerate 10% improvement 5% 0% 2009 2011E 2013E 2009 2011E 2013E Continued focus

98. Slide 98: Shareholder Distributions

    Shareholder Distributions 12 Share Repurchase Dividend 10 8 $ per share 6 4 2 0 2006 2007 2008 2009 2010 2011E Dividend/Share $1.44 $1.64 $1.88 $1.91 $2.15 $2.64 Dividend $2.3 B $2.7 B $2.9 B $2.8 B $3.2 B $3.6 B Share Repurchase $0.9 B $7.0 B $8.2 B 0 $3.9 B $5‐10 B 97

99. Slide 99: Competitive Shareholder Distributions

    Competitive Shareholder Distributions Total Distributions as % of Cash from Operations 80% 2004 ‐ 2009 80% 2010 70% 70% Net Share Repurchase Dividends 60% 60% 50% Peer Average = 48% 50% 40% 40% 30% 30% Peer Average = 29% 20% 20% 10% 10% 0% 0% COP COP Target 40% of cash flow distributed to shareholde

100. Slide 100: Delivering Shareholder Value

     Delivering Shareholder Value  100%+ reserves replacement Strong OECD‐based cash flow Continued asset sales  Production/share growth Pipeline of growth projects  Improved returns Disciplined capital investment  EPS/CFPS growth Strengthening asset portfolio  Increased distributions Unique approac

101. Slide 101: 2011 Analyst Meeting Appendix

     2011 Analyst Meeting Appendix March 23, 2011 New York, NY

102. Slide 102: 2011 Sensitivities

     2011 Sensitivities $MM $1/BBL Crude Worldwide E&P 140 Worldwide R&M (fixed & other co‐products) (20) Net Crude Impact 120 $1/MMBtu Natural Gas Worldwide E&P 600 Worldwide R&M (utilities) (100) Net Gas Impact 500 $1/BBL Refining Margins (95% utilization) 500 1¢/Gal U.S. Wholesale Marketing Margin 90

103. Slide 103: Other Drivers

     Other Drivers 2011 2012 Selected Items Estimates Selected Items Estimates  Corporate $1.1 B (after‐tax)  Corporate $1.1 B (after‐tax)  Pension funding: $0.9 B  Pension funding: $0.7 B • US: $0.7 B • US: $0.5 B • Int’l: $0.2 B • Int’l: $0.2 B Pre‐Tax Expense Estimates Pre‐Tax Expense Estimates 

104. Slide 104: COP Non-GAAP Reconciliations

     COP Non‐GAAP Reconciliations CROCE 2009 2010 Numerator EBIDA 1 14,624 21,248 LUKOIL Undistributed Equity Earnings 935 1,025 non-core earnings impacts (616) 2,533 adjusted EBIDA 14,305 17,690 GAAP CFOA 2 12,479 17,045 3 difference (1,826) (645) Denominator GAAP average capital employeed 4 87,493 91,9

105. Slide 105: COP Non-GAAP Reconciliations

     COP Non‐GAAP Reconciliations Capital Program Earnings $MM 2011 2009 2010 2009 2010 Budget Consolidated E&P Earnings ($MM) 2 $4,414 $11,358 Capital expenditures and investments $ 8,899 $ 8,493 $ 11,300 Adjustments: Loans and advances 175 113 - Impairments 729 1,756 Joint venture acquisition obligatio

106. Slide 106: COP Non-GAAP Reconciliations - Year

     COP Non‐GAAP Reconciliations 5 - Year 2010 2006-2010 1 GAAP E&P Net Income - $MM 9,198 13,786 GAAP E&P Net Income1 - $ / BOE 14.38 4.09 non-core earnings impacts - $MM gains and (losses) on asset dispositions 3,151 4,361 asset impairments (723) (32,276) tax legislation / regulatory / other 16 508 E&

107. Slide 107: COP Non-GAAP Reconciliations

     COP Non‐GAAP Reconciliations 2 Lower 48 Asia Pacific 2010 2010 GAAP CFOA - $MM 3,198 GAAP CFOA - $MM 2,656 GAAP CFOA - $ / BOE 19.82 GAAP CFOA - $ / BOE 38.61 excluded GAAP items - $MM excluded GAAP items - $MM asset impairments 19 asset impairments 0 non-cash working capital (423) non-cash working

108. Slide 108: COP Non-GAAP Reconciliations

     COP Non‐GAAP Reconciliations 2006 2007 2008 2009 2010 1 GAAP R&M U.S. Net Income - $MM 3,915 4,615 1,540 (192) 1,022 GAAP R&M U.S. Net Income - $ / BBL 3.95 4.96 1.76 (0.22) 1.17 non-core earnings impacts - $MM gains and (losses) on asset dispositions - 16 121 32 116 asset impairments (227) (12) (37

109. Slide 109: Major Projects

     Major Projects Gross Peak Current Project Startup Region Significant Project WI% Production Phase MBOED Eagle Ford 95 TBD1 Execute/Operate Lower 48 Golden Pass 12 ‐ Execute Canada Christina Lake C 50 402 Execute United Kingdom Jasmine 37 90 – 110 Execute 2011‐ Libya Faregh 2 16 40 Execute 2012 West

110. Slide 110: Major Projects

     Major Projects Gross Peak Current Project Startup Region Significant Project WI% Production Phase MBOED Lower 48 Tiber 18 TBD1 Appraise Christina Lake D 50 402 Execute Foster Creek F/G/H 50 902 Define Christina Lake E 50 402 Define Christina Lake F/G/H 50 1202 Optimize Narrows Lake 50 1302 Appraise

111. Slide 111: Major Projects

     Major Projects Gross Peak Current Project Startup Region Significant Project WI% Production Phase MBOED Alpine West (CD5) 78 10 – 15 Define Lookout (CD6) 78 15 ‐ 20 Optimize Alaska ANS Gas 36 600 – 700 Appraise Ugnu 56 20 – 30 Appraise Clair Ridge 24 80 – 100 Define 2013+ United Kingdom Britannia LT

112. Slide 112: Major Projects

     Major Projects Gross Peak Current Project Startup Region Significant Project WI% Production Phase MBOED APLNG 42.51 280 – 3702 Define Australia Sunrise 30 130 – 150 Appraise Poseidon 60 TBD3 Appraise Panyu Growth 25 40 – 50 Execute China Bohai III 49 20 – 30 Appraise South Belut 40 15 – 25 Define In

113. Slide 113: Major Projects

     Major Projects Gross Peak Current Project Start‐Up Region Significant Project WI% Production Phase MBOED Su Tu Nau 23 20 – 30 Appraise Vietnam Su Tu Trang 23 30 – 50 Appraise Kashagan 11 8 4502 Execute Russia / Caspian Kashagan 2+ 8 1,0503 Optimize 2013+ North Gialo 16 80 – 120 Appraise Libya NC98 1

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