ConocoPhillips · NYSE:COP
ConocoPhillips — Q1 2016 Earnings Presentation
17 slides from ConocoPhillips's earnings presentation, Apr 28, 2016
Slide 1: 1Q16 Conference Call
1Q16 Conference Call April 28, 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: Ryan Lance, Chairman & CEO
Ryan Lance Chairman & CEO
Slide 4: Creating Value Through the Cycles
Creating Value Through the Cycles Portfolio Attributes Allocation Principles Diverse, low-decline base production Strong Balance Growing Dividend Sheet Reduce debt to Target annual real growth less than $25B Large, low cost of supply resource base Flexible, short-cycle investment options + RETURNS L
Slide 5: Maintaining Discipline Across Time Horizons
Maintaining Discipline Across Time Horizons Longer Term Cycles and Volatility Medium Term Price Recovery * Protect against protracted downturn * Priority to strengthen balance sheet * Set dividend for lower end of cycle * Target annual real growth in dividend * Efficiently execute capital plans * Co
Slide 6: 1Q16 Summary
1Q16 Summary Strategic Operational Financial • Took actions to conserve • 2% year-over-year • $1.2B adjusted loss; cash and position for long production growth2 $0.95 adjusted EPS loss term • Enhanced strong liquidity • Loaded 11 cargoes from • $0.7B CFO3; $5.2B ending 4 position1 APLNG Train 1; exp
Slide 7: Don Wallette, Jr., EVP, Finance, Commercial and CFO
Don Wallette, Jr. EVP, Finance, Commercial and CFO
Slide 8: 1Q16 Performance — Adjusted Earnings
1Q16 Performance — Adjusted Earnings Highlights * Strong operational performance; 1Q16 production increased 2% vs. 1Q15 Adjusted * Sequential and year-over-year earnings negatively Earnings impacted by decrease in realized prices MM f T 1 1 ($ ) 222 * More than 20 percent year-over-year reduction in
Slide 9: Production Change 1Q15 to 1Q16
34 4 P| Liquids 15 Liquids 2 N.A. Gas 55 APLNG Gas 49 Total 70 Other Gas (17) 1,540 Total 34 r T T T T 1 1Q15 Dispositions' 1Q15 Adjusted for Downtime Net Increase 1Q16 Dispositions Canada and Polar Lights of 36 MBOED, 30 MBOED and 4 MBOED res
Slide 10: 1Q16 Performance — Company Cash Flow
1Q16 Performance — Company Cash Flow SB 1Q16 Marker Prices * Brent $33.89/BBL * WTI$33.27/BBL * Henry Hub $2.09/MMBTU 4.5 oie * Debt of $29.5B * Debt-to-capital ratio of 43% be 1.8 0.3 0.7 0.1 ee 0.4 2016 Beginning CFO Excluding Total Working Disposition Debt Capital Dividends 1016 Ending Cash Cash
Slide 11: Al Hirshberg, EVP, Production, Drilling and Projects
Al Hirshberg EVP, Production, Drilling and Projects
Slide 12: Lower 48 and Canada
Lower 48 and Canada Foster Creek Lower 48 Canada • 1Q16 production of 491 MBOED vs. 506 MBOED in 1Q151 • 1Q16 production of 293 MBOED vs. 288 MBOED in 1Q151 • Transitioned from 13 operated rigs at year-end 2015 to 3 • Bitumen production increased while gas volumes declined operated rigs in April • P
Slide 13: Alaska and Europe & North Africa
Alaska and Europe & North Africa Alaska • 1Q16 production of 191 MBOED vs. 186 MBOED in 1Q15 • Ramping up production at CD5 and Drill Site 2S • Project activity underway at GMT 1 Europe & North Africa • 1Q16 production of 216 MBOED vs. 209 MBOED in 1Q15 • Continuing development drilling at Greater E
Slide 14: Asia Pacific & Middle East and Other International
Asia Pacific & Middle East and Other International Asia Pacific & Middle East • 1Q16 production of 387 MBOED vs. 351 MBOED in 1Q15 • Loaded 11 cargoes from APLNG Train 1; expect first cargo from Train 2 in 4Q16 • Ramping up at Gumusut following gas and water injection • Progressing Malikai toward st
Slide 15: 2016 Operations Outlook
2016 Operations Outlook • Expect 2016 full-year production to be in line with 20151 SAFETY REMAINS TOP • 2Q16 production guidance: 1,500 to 1,540 MBOED PRIORITY • Reduced rig count in the Lower 48 $5.7B 2016 CAPITAL GUIDANCE • Major planned turnaround activity in 2Q/3Q 1,500 – 1,540 • Oil sands ramp
Slide 16: Appendix
Appendix
Slide 17: Annualized Net Income Sensitivities
Annualized Net Income Sensitivities • Crude • Brent/ANS: $100-120MM for $1/BBL change • WTI: $30-40MM 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: $65-75MM for $0.25/MCF change • International g