Conocophillips · NYSE:COP

Conocophillips — 2009 Analyst Presentation

17 slides from Conocophillips's conference presentation, March 2009

  1. Slide 1: Jim Mulva, Chairman & Chief Executive Officer

    Jim Mulva Chairman & Chief Executive Officer

  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 within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities E

  3. Slide 3: A Year Ago – March 2008

    A Year Ago – March 2008 Business Environment  Strong global economic growth  Energy demand outpacing supply  Record commodity prices ConocoPhillips Outlook  Cash flow in excess of optimal reinvestment levels  2008 share repurchases of $10 billion  Long-term production growth ~2%  100% reserve

  4. Slide 4: The World Has Changed

    The World Has Changed Energy Commodity Demand Price Destruction Collapse  Worst recession in recent history Credit Financial Global Market  No indication of Crisis Downturn Collapse a bottom  No confidence in markets Sharp Equity Declines Adjusting to near-term environment, maintaining long-term

  5. Slide 5: Declining Global Economic Growth & Oil Demand

    Declining Global Economic Growth & Oil Demand Global Real GDP Global Oil Demand Growth in Percent Avg. Annual Growth / Decline Percent MMbbls/day 6 3.0 Emerging 2.5 Developed 5 Net Change 2.0 4 1.5 3 1.0 2 0.5 0.0 1 -0.5 0 -1.0 Range of estimates -1 -1.5 -2 -2.0 2004 2005 2006 2007 2008 2009F 2010F

  6. Slide 6: Sharp Declines in Commodity Expectations

    Sharp Declines in Commodity Expectations Forward Curve Comparison $/bbl WTI Crude $/mmbtu Henry Hub Natural Gas $120 $12 $100 $10 $80 $8 $60 $6 $40 $4 $20 $2 $0 $0 4/2008 4/2009 4/2010 4/2011 4/2012 4/2013 4/2008 4/2009 4/2010 4/2011 4/2012 4/2013 $/bbl USGC Crack Spread $14 $12 $10 $8 March 1, 2008

  7. Slide 7: S&P Index Historical Returns

    S&P Index Historical Returns 2007 2005 1994 1993 2006 1992 2004 1987 1988 1984 1986 2003 2000 1978 1979 1999 1990 1970 1972 1998 1981 1960 1971 1996 1977 1956 1968 1983 1969 1948 1965 1982 1962 1947 1964 1976 1953 1923 1959 1967 1997 1946 1916 1952 1963 1995 1940 1912 1949 1961 1991 1939 1911 1944 1

  8. Slide 8: Impact on ConocoPhillips

    Impact on ConocoPhillips  Operating performance according to plan  Commodity price declines  Lower income and cash flow  Share price decline (July 2008 – present) • ConocoPhillips -63% • LUKOIL -67%  Non-cash LUKOIL / goodwill impairments

  9. Slide 9: Challenging Political Environment

    Challenging Political Environment  Fiscal actions taken during high 2006 U.S. Greenhouse Gas Emissions Million Metric Tons CO2 Equivalent price environment unlikely to be 8,000 Natural Gas Combustion reversed Petroleum Combustion 7,000 Coal Combustion  Increased taxation / regulation 6,000 propose

  10. Slide 10: Response to the Current Environment

    Response to the Current Environment  Adjusted operating plans and capital program  Implemented appropriate cost reduction  Focused on maintaining balance sheet strength and financial flexibility  Suspended share repurchase program  Increased engagement in public policy debate / formulation

  11. Slide 11: Creation of an International, Integrated Major

    Creation of an International, Integrated Major  Scope achieved over past decade: • >50 BBOE captured resources • >10 BBOE proven reserves • 2.2 MMBOED production • 3.0 MMBPD refining capacity • 2008 revenues of $241 billion • Operations in nearly 40 countries Resources, reserves, production and ref

  12. Slide 12: $65 B in Strategic Transactions

    $65 B in Strategic Transactions 1999 – 2008 Paid Transaction Achieved Metric* Legacy Upstream position in Alaska Premise: $18/bbl $7 B Added proved reserves of 2 BBOE and 1.1 MM net Actual: $52/bbl ARCO Alaska exploration acres Legacy Upstream position in Canada Premise: $3.84/mcf $5 B Added proved

  13. Slide 13: Organic Growth

    Organic Growth 1999 – 2008  $73 billion invested in organic growth • Enabled resource capture, reserve development, and expansion of production base • Increased refining capacity and conversion capability  Significant value to ConocoPhillips’ shareholders • $13.5 billion returned via dividends • $

  14. Slide 14: Strategic Objectives Unchanged

    Strategic Objectives Unchanged Market position International, integrated energy major 70 - 75% E&P ~20 - 25% R&M Portfolio balance 5% in Midstream, Chemicals, Alternatives and Renewables Capital program $12.5 billion (2009) Dividend Competitive with peers Cash and Income per BOE Competitive with pee

  15. Slide 15: 2009 Capital Program

    2009 Capital Program 2009 By Segment 2% $ Billions 16% 19.9 16.4 82% E&P 12.9 12.5 R&M 11.9 Other 2009 By Region 6% 9% 15% 54% 16% 2005 2006* 2007 2008 2009 Estimate Am ericas E&P R&M Other Asia Pacific Europe Middle East & Africa Russia & Caspian *Excludes purchase price for Burlington Resources, b

  16. Slide 16: Capex & Shareholder Distributions

    Capex & Shareholder Distributions 2006 – 2008 Average 2009E 140% 131% 121% 35% Peer avg. 117% 116% 24% Peer avg. 109% 105% 108% 30% 16% 104% 101% 103% 102% 101% 98% 22% 13% 19% 28% 23% 25% 35% 21% 29% 58% 11% 26% 18% 105% 107% 15% 77% 82% 80% 75% 70% 68% 62% 63% 62% 31% BP RDS XOM CVX COP TOT BP RDS

  17. Slide 17: Positioned to Create Shareholder Value

    Positioned to Create Shareholder Value Capital Operating Discipline & Shareholder Excellence Project Financial Value Execution Optimization Shareholder Technology & Innovation Value Portfolio of High-Quality Assets  Competitive integrated, international energy firm  Consistent long term strategy 

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