ConocoPhillips · NYSE:COP
ConocoPhillips — Investor Presentation (February 2015)
16 slides from ConocoPhillips's investor presentation, Feb 3, 2015
Slide 1: Investor Update
Investor Update Updated as of Feb. 3, 2015.
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: Unmatched Position Today
Unmatched Position Today 1,532 MBOED Production1 – FY14 • Diversified asset base with scope and scale North Liquids • Multiple sources of growth American 25% Gas • Growing inventory of low cost of supply opportunities 57% • Large positions in key resource trends 18% LNG + • Relatively low execution
Slide 4: 2014 Highlights
2014 Highlights Operational Financial Strategic • 4% production growth • $6.6 B adjusted earnings; • 124% organic reserve year-over-year1 $5.30 adjusted EPS replacement ratio • Five major project startups; • $15.8 B CFO2; $5.1 B • Completed announced 37% production growth ending cash asset dispositi
Slide 5: Flexible & Resilient – Response to Weak Prices in 2015
Flexible & Resilient – Response to Weak Prices in 2015 DIVIDEND • Dividend is top priority for capital allocation • Focus remains on cash flow neutrality in 2017 REMAINS TOP PRIORITY • Further reducing 2015 capital expenditures by $2 billion to $11.5 billion • Preserving future investment opportunit
Slide 6: Exercising Capital Flexibility
Exercising Capital Flexibility 13.5 1.8 11.5 (1.4) (0.3) (0.3) 1.5 4.8 Rig counts: Lower 48 • Eagle Ford ~6 unconventional 4.5 • Bakken ~3 appraisal • Permian ~4 5.0 3.6 1.9 1.9 Original 2015 Base Development Major Projects Exploration Revised 2015 Capital Guidance Capital Guidance Base Development
Slide 7: Exercising Financial Flexibility
Exercising Financial Flexibility • Funding of dividend remains highest priority New Debt Issuance Rates1 • Expect to achieve cash flow neutrality in 2017 5% 4% • Increasing capital flexibility 3% • Balance sheet strength to weather price downturn 2% • $5.1 billion of cash at year-end 2014 1% • Debt
Slide 8: Committed to Shareholder Returns
Committed to Shareholder Returns Dividend Yield • Competitive dividend is appropriate and remains key to our value proposition • Highest priority use of cash 4.5% • Enhances capital discipline • Predictable portion of shareholder returns • Differential to independent peers • Dividend increased 5.8 p
Slide 9: 2014 Operating Highlights
2014 Operating Highlights Gumusut • Full-year production of 1,532 MBOED from continuing operations, excluding 8 MBOED from Libya • Completed major turnarounds across the portfolio; strong underlying base performance • 35% growth in Eagle Ford and Bakken production year-over-year • Major project star
Slide 10: 2014 Reserve Replacement
2014 Reserve Replacement 124% Organic RRR 97% Total RRR 9,065 (159) 8,906 742 742 (598) 583 8,921 8,323 8,323 8,323 YE 2013 2014 Production¹ 2014 Reserves Organic Growth YE 2014 Organic Acquisitions and YE 2014 Reserves Start Reserves Dispositions Reserves RRR represents reserve replacement ratio. A
Slide 11: 2015 Operational Priorities
2015 Operational Priorities • Expect full-year production growth of 2 to 3 percent Eldfisk II • 1Q15: 1,570 to 1,610 MBOED • Alaska: Progressing CD-5 and Drill Site 2S major projects • Lower 48: Upper Eagle Ford pilot testing; ongoing exploration and appraisal in deepwater GOM • Canada: First steam
Slide 12: 2015: Testing Global Portfolio
2015: Testing Global Portfolio Norway Greenland Barents Chukchi NPR-A Muskwa UK & Norway Montney North Sea Poland Baltic Basin Nova Scotia Azerbaijan China Niobrara Bohai Delaware Gulf of Mexico Bangladesh Senegal Myanmar1 Malaysia Colombia Middle Indonesia Magdalena Bonaparte Angola Kwanza Browse A
Slide 13: Appendix
conocStips Appendix
Slide 14: Annualized Sensitivities for Net Income
Annualized Sensitivities for Net Income • Crude • Brent/ANS: $80-90MM change for $1/BBL change • WTI: $35-40MM change for $1/BBL change • WCS¹: $30-40MM change for $1/BBL change • North American NGL • Representative blend: $10-15MM change for $1/BBL change • Natural Gas • Henry Hub: $100-110MM chang
Slide 15: Abbreviations and Glossary
Abbreviations and Glossary • 4-D: four dimensional • MM: million • ANS: Alaska North Slope • MBOED: thousands of barrels of oil equivalent per day • Average Cash Margin (2014-2017): Average cash margin represents the projected cash flow from operating activities, excluding working capital, • MMBOE:
Slide 16: Investor Information
Investor Information Stock Ticker Investor Relations Contacts: NYSE: COP Telephone: +1 212.207.1996 Website: www.conocophillips.com/investor Ellen DeSanctis: ellen.r.desanctis@conocophillips.com Sidney J. Bassett: sid.bassett@conocophillips.com Headquarters Vladimir R. dela Cruz: v.r.delacruz@conoco
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