ConocoPhillips · NYSE:COP
ConocoPhillips — Merger or Acquisition (April 2017)
9 slides from ConocoPhillips's merger presentation, Apr 13, 2017
Slide 1: Transaction Impact Update
low breakeven price transformation SPIRIT Values smart growth Transaction Impact Update differentiation low cost of supply Canadian Transaction – March 29 San Juan Basin Transaction – April 13 acceleration April 13, 2017 superior returns flexibility Note: These slides summarize key portfolio metrics
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: Summary of Canadian Transaction
Summary of Canadian Transaction Scope & Terms Canada Assets – 2016 Actuals Assets Sold Transaction Scope Assets Retained Included FCCL, Deep Basin, Kaybob-Edson & Clearwater Excluded Surmont, Blueberry-Montney Blueberry Surmont ~35 MBOED 82 M acres Upfront Consideration Elements ($B) Cash 10.6 Cenov
Slide 4: Summary of San Juan Basin Transaction
Summary of San Juan Basin Transaction Transaction Terms San Juan Basin Assets – 2016 Actuals Consideration ($B) Cash 2.7 COLORADO Contingent Payment Over 6 Years San Juan Basin 1.3MM Acres Annual payment based on $7MM per month if the average 124 MBOED NEW monthly Henry Hub price is at or above $3.2
Slide 5: Reset the Base; Maintaining Portfolio Strength
Reset the Base; Maintaining Portfolio Strength 2017 Estimated Pro Forma Metrics1 Post Canadian Transaction Post Canadian and San Juan Pre-Transactions (Announced March 29, 2017) Basin Transactions 2017 NAR Production 1,540 – 1,570 MBOED 1,260 – 1,290 MBOED 1,145 – 1,175 MBOED Oil Oil Oil 15 10 20 Bi
Slide 6: Transactions Reduce Average Portfolio Cost of Supply to ~$35/BBL
Transactions Reduce Average Portfolio Cost of Supply to ~$35/BBL Impact of Transactions on Resource 14 BBOE with Cost of Supply <$50/BBL with Cost of Supply <$50/BBL 60 AVERAGE COST OF SUPPLY Cost of Supply ($/BBL) REDUCED FROM ~$40/BBL TO ~$35/BBL 40 BBOE 18 14 20 Investor Canadian San Juan Post Me
Slide 7: Delivering on the Strategy: Transformational Transactions
Delivering on the Strategy: Transformational Transactions • >$16B of anticipated proceeds in 20171 • Enables achievement of three-year plan in less than one year • Minimal impact to cash from operating activities • Provides catalyst for investors • Immediate deleveraging of balance sheet • Commitmen
Slide 8: Appendix
low breakeven price transformation SPIRIT Values smart growth Appendix differentiation low cost of supply acceleration superior returns flexibility
Slide 9: Reconciliation
Reconciliation ‘ConocoPhillips Reconciliation of Production and Operating Expenses to Adjusted Operating Costs $ Millions, Except as indicated FY2017 2017 Estimated Pro. 2017 Estimated Pro Guidance at Forma Post-Canadian Forma Post-Canadian 2/4/2017 Asset Dispositions! °"4 Sa" Juan Asset Disposition