ConocoPhillips · NYSE:COP
ConocoPhillips — Barclays Capital 2009 Energy & Power Conference
23 slides from ConocoPhillips's conference presentation, 2009
Slide 1: Barclays Capital 2009 Energy & Power Conference
Barclays Capital 2009 Energy & Power Conference Larry Archibald Vice President, Exploration
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: COP at a Glance
COP at a Glance Capital Operating Discipline & Shareholder Excellence Project Financial Value Execution Optimization Shareholder Technology & Innovation Value Portfolio of High-Quality Assets Competitive integrated, international energy firm Focus on resource access and migrating resource opport
Slide 4: Highlights – First Half 2009
Highlights – First Half 2009 $1.43 Earnings Per Share Earnings $2.1 B 2.34 MMBOED Production Cash From Operations 85% Refining Utilization $4.5 B >10% reduction in Controllable Debt-to-Cap Costs* compared to 2008 34% *Includes production and operating expenses, selling, general, and administrative e
Slide 5: E&P Production
E&P E&P Production Production E&P Production (MBOED) E&P Production Contribution YTD 2009 (% of total MBOE) US Gas 1,077 1,134 1,101 19% 963 1,012 32% Int’l Liquids Canada Gas 787 736 790 791 771 26% Int’l Gas 23% US Liquids 2Q08 3Q08 4Q08 1Q09 2Q09 US International 4
Slide 6: 2009 Capital Program
2009 Capital Program 2009 By Segment 2009 By Category 14 2% 16% 12 10 82% 8 E&P 6 R&M Other 4 2 2009 By Region 0 Maintenance Exploitation Major projects Strategic All Other 2009 capital projects 6% 9% 15% 54% YTD (June) spend of $6.0 Billion, 16% of which: Am ericas Asia Pacific • 81% for E&P Euro
Slide 7: 2009 Project Updates
2009 Project Updates New E&P developments adding 167 MBOED YTD June compared to same period last year • 2008 start ups of Brit Sats, YK, Alvheim, Su Tu Vang, and 2009 start up of Bohai Bay Phase 2 • Ramp-up of Canadian Oil Sands During remainder of year expect start up of North Belut field and S
Slide 8: Today's Exploration Messages
Today’s Exploration Messages 2009 - A successful year for COP’s Exploration program Selectively exploring higher impact “Big E” wildcat opportunities to test new plays Limiting exposure on riskiest plays via leveraged deals Capturing new, high quality, high impact, opportunities in proven pe
Slide 9: 2009 Exploration Spend
2009 Exploration Spend 2009 Drilling Capital ($1B) 1 ILX Total Exploration Spend Appraisal 15% 12% Capital $ 1.4 B Onshore L48 & Cash expense $ 0.6 B Canada Wildcats 31% 42% Total $ 2.0 B Increased focus and spend on more material wildcats 1 Infrastructure led exploration 8
Slide 10: 2009 Exploration Drilling Program
2009 Exploration Drilling Program 2 6 1 25 2 38 1 3 2 3 1 1 2 1 1 1 Exploration Wells 1 4 80 Other Exploration* 2 10 Appraisal 7 “Big E” Wildcats 97 Increasingly diversified and balanced exploration portfolio * Includes Offshore ILX, Onshore Conventional & Resource Plays 9
Slide 11: Browse Basin
Browse Basin Kontiki- Kontiki-1 Testing Browse Basin acreage position • WA-314-P & WA-315-P permits • COP operator, 51% interest with option Poseidon- Poseidon-1 to increase to 60% discovery Kronos- Kronos-1 • Karoon Gas 49% • One well commitment in each permit • WA-398-P permit: Poseidon- Poseido
Slide 12: Gulf of Mexico Exploration
Gulf of Mexico Exploration Focused on emerging Shenandoah Paleogene play Tiber 2009 discovery Les Paul 2009 discovery Kona Shenandoah Discovery • COP 40% interest owner • ~300 ft. pay in high quality sands • Late 2010 appraisal well Tiber Discovery • New drilling depth record @ 35,055 ft. • Al
Slide 13: Deepwater GOM Has Legs
Deepwater GOM Has Legs Deepwater GOM “Creaming” Curve Paleogene & Miocene Dominantly Subsalt Miocene “Bright spot” plays Royalty relief Area wide enacted leasing Steep creaming curve suggests material running room in Paleogene Source: Internal COP data 12
Slide 14: Alaska NPRA Exploration
Alaska NPRA Exploration Continuing successful NPRA exploration program 2009 Pioneer oil discovery follows Rendezvous oil discovery in Greater Moose’s Tooth Unit Both wells tested high quality light oil at rates up to 1,300 BPD Pioneer oil discovery Future development via Rendezvous oil disco
Slide 15: Norway & United Kingdom
Norway & United Kingdom Dalsnuten Snefrid & Haklang discoveries Strong position in Central Graben High Pressure High Heidrun Temperature (HPHT) plays Industry leader in North Sea HPHT drilling Visund ILX Clair Statfjord Troll At least two large wildcats in Oseberg area ILX 2010 Britannia • Cen
Slide 16: Block N – Caspian Sea, Kazakhstan
Block N – Caspian Sea, Kazakhstan Kashagan discovery Block N contains large, moderate risk, prospects in a proven world class KAZAKHSTAN petroleum system Aqtau Final documents signed June 2009 • Joint operating company (COP 24.5%) N Block with Mubadala & KMG TURKMENISTAN Activities underway vi
Slide 17: E. Coast Canada Laurentian Basin
E. Coast Canada Laurentian Basin Large licenses in untested deepwater basin between two proven petroleum systems • ~4 million acres • 30+ year legacy position Numerous mapped structures with multi-TCF running room • Success at Wolverine de-risks significant follow-on opportunities Wolverine Wo
Slide 18: Indonesia Arafura Sea
Indonesia Arafura Sea Large, unexplored basin offshore Indonesia Large structures with frontier play risk COP interest expected to be 51% • Finalizing partner participation agreements 2 wells expected by Q4 2010 Natural oil slicks Natural oil slicks Mapped structures Undrilled basin with gia
Slide 19: Alaska Chukchi Sea
Alaska Chukchi Sea Proprietary seismic data updated COP’s view of resource potential Drilling plans underway for Devil’s Paw prospect Popcorn #1 • Water depth 140 ft. Burger • Neocomian age objectives equivalent to onshore Kuparuk sands Crackerjack #1 Diamond #1 • Operational window (ice free) f
Slide 20: Poland Shale Gas Opportunity
Poland Shale Gas Opportunity Poland Exploration evaluation agreement with Lane Energy • Targeting Silurian aged shales • Agreement signed August 2009 • COP option to earn 70% and operate up to ~1MM acres • Operations in progress: • Seismic scheduled to finish Q4 2009 Poland • First well Q1 2010
Slide 21: Greka Energy Qinshui Basin CBM Opportunity
Greka Energy Qinshui Basin CBM Opportunity CBM exploration work program agreement with Greka Energy • Closed August 2009 • Option to earn 30-35% interest • ~1.1MM acres in 3 blocks Ye l • Production & infrastructure in place l o wBAOTOU HOHHOT Ri v e r DATONG BEIJING Yinchuan TANGSHAN Bohai Appl
Slide 22: Exploration Summary
Exploration Summary 2009 - A successful year for COP’s Exploration program Selectively exploring higher impact “Big E” wildcat opportunities to test new plays Capturing new, high quality, high impact, opportunities in proven petroleum systems Successful “Big E” wildcats and new opportunity cap
Slide 23: Positioned to Create Shareholder Value
Positioned to Create Shareholder Value Competitive integrated, international energy firm Consistent long-term strategy Portfolio of high quality assets Great opportunities for growth Committed and talented workforce 22
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