ConocoPhillips · NYSE:COP
ConocoPhillips — Q2 2018 Earnings Presentation
16 slides from ConocoPhillips's earnings presentation, Jul 26, 2018
Slide 1: 2Q18 Earnings Conference Call
2Q18 Earnings Conference Call July 26, 2018
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: Don Wallette, EVP, Finance, Commercial & CFO
D O N WA L L E T T E EVP, Finance, Commercial & CFO
Slide 4: 2Q18 Summary: Delivering Cash Flow Expansion; Keeping Our Discipline
2Q18 Summary: Delivering Cash Flow Expansion; Keeping Our Discipline Strategic Financial Operational Delivering on disciplined priorities Delivering strong free cash flow Delivering our operational plan ► Achieved stated debt target of ► $1.3B adjusted earnings; $1.09 ► Second quarter production of
Slide 5: 2Q18 Earnings Summary: Power of a Diversified Portfolio
2Q18 Earnings Summary: Power of a Diversified Portfolio Highlights • Sequential adjusted earnings benefited from 1,291 Adjusted 1,136 improved realized prices, partially offset by operating cost increases related to seasonal Earnings turnarounds and maintenance activity ($MM) • Year-over-year adjust
Slide 6: Focus on Free Cash Flow Generation & Differential Return of Capital
Focus on Free Cash Flow Generation & Differential Return of Capital 2Q18 $B 2Q18 Marker Prices • Brent $74.35/BBL • WTI $67.99/BBL 0.1 0.1 • Henry Hub $2.80/MMBTU 2.0 3.2 Includes $0.4B Alaska WNS 2.1 bolt-on acquisition moved from 0.2 Other 0.3 0.6 5.5 $1.2B FREE CASH FLOW ~30% CFO2 4.1 GENERATED I
Slide 7: Al Hirshberg, EVP, Production, Drilling & Projects
AL HIRSHBERG EVP, Production, Drilling & Projects
Slide 8: 2Q18 Operations Highlights: Another Quarter of Strong Execution
2Q18 Operations Highlights: Another Quarter of Strong Execution • 2Q18 production of 1,211 MBOED; includes 5 MBOED for Alaska Western North Slope acquisition • Grew 5% vs. 2Q17 underlying production1 of 1,153 MBOED • Lower 48 Big 3 unconventional plays production up 37% year-over-year • Successful e
Slide 9: 2018 Operations Outlook
2018 Operations Outlook Production (MBOED) • Operated capital scope unchanged; $6B capital reflects partner- 1,356 ~20% operated activity, execution efficiency and inflation PRODUCTION PER DEBT- • Excludes acquisitions of Alaska WNS bolt-on and Montney acreage ADJUSTED 1,225 - 1,255 SHARE 181 GROWTH
Slide 10: Question & Answer Session
ConocoPhillips Question & Answer Session
Slide 11: Appendix
Appendix
Slide 12: 2018 Production Guidance (MBOED)
2018 Production Guidance (MBOED) 1,215 - 1,255 ~27% 1,356 ~20% PRODUCTION PRODUCTION 1,202 PER DEBT- PER DEBT- ADJUSTED ADJUSTED 52 SHARE 181 1,225 - 1,255 SHARE GROWTH2 Dispositions1 GROWTH2 Dispositions1 ~12% ~9% PRODUCTION PRODUCTION PER-SHARE PER-SHARE GROWTH3 GROWTH3 1,150 ~7% 1,175 ~6% UNDERLY
Slide 13: Full-Year 2018 Guidance
Full-Year 2018 Guidance • Full-year 2018 production: 1,225 – 1,255 MBOED • 3Q18 production: 1,215 – 1,255 MBOED • Adjusted operating costs: $5.7B • Capital expenditures: $6B; excludes announced acquisitions of $0.4B Alaska Western North Slope bolt-on transaction and $0.1B Montney acreage • DD&A: $5.
Slide 14: 1H18 Performance – Company Cash Flow
1H18 Performance – Company Cash Flow $B 1H18 Marker Prices • Brent $70.55/BBL • WTI $65.43/BBL • Henry Hub $2.90/MMBTU 0.3 3.5 5.7 Includes $0.4B Alaska bolt-on and $0.1B 5.0 Montney acreage acquisition 8.4 0.7 1.1 4.1 2018 Beginning CFO² Disposition Capital Debt Dividends Repurchase of 2Q18 Ending
Slide 15: 2018 Annualized Net Income Sensitivities
2018 Annualized Net Income Sensitivities Crude • Brent/ANS: $105-125MM for $1/BBL change • WTI: $45-55MM for $1/BBL change • WCS¹: $10-15MM for $1/BBL change • Does not incorporate contingent payment of CA$6MM quarterly for every CA$1 WCS price above CA$52/BBL $45-$75/BBL North American NGL WTI • Re
Slide 16: 2018 Annualized Cash Flow Sensitivities
2018 Annualized Cash Flow Sensitivities Consolidated Operations Equity Affiliates1 ($45-$75/BBL WTI) ($50-$75/BBL WTI) Crude: • Expect distributions from equity affiliates at >$50/BBL • Brent/ANS: ~$100-110MM for $1/BBL change • $1/BBL movement in Brent: ~$30-40MM • WTI: ~$55-65MM for $1/BBL change