ConocoPhillips · NYSE:COP
ConocoPhillips — Q2 2016 Earnings Presentation
17 slides from ConocoPhillips's earnings presentation, Jul 28, 2016
Slide 1: 2Q16 Conference Call
2Q16 Conference Call July 28, 2016
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: Ryan Lance, Chairman & CEO
Ryan Lance Chairman & CEO
Slide 4: 2Q16 Summary
2Q16 Summary Operational Financial Strategic • 3% production growth v. 2Q151 • $1.0B adjusted loss; • Progressed exit from $0.79 adjusted EPS loss deepwater exploration • Turnaround activity continues; Surmont back to pre-fire rates • $1.2B CFO2; $4.2B ending • Continued to improve our cash3 cost st
Slide 5: Financial Priorities
Creating Value Through Cycles Financial Priorities Value Proposition Principles Cash Allocation Priorities & Targets Strong Balance 1st Existing dividend and capital to Growing Dividend Sheet maintain production base Reduce debt to Target annual real growth less than $25B 2nd Target annual real divi
Slide 6: Don Wallette, Jr., EVP Finance, Commercial and CFO
Don Wallette, Jr. EVP, Finance, Commercial and CFO
Slide 7: 2Q16 Performance – Adjusted Earnings
2Q16 Performance – Adjusted Earnings Highlights • Strong operational performance; 2Q16 production increased 3% vs. 2Q15 Adjusted • Year-over-year earnings negatively impacted by decrease in realizations; sequential earnings benefited from Earnings 81 improved realizations ($MM) (985) • 18 percent ye
Slide 8: 2Q16 Production
2Q16 Production 46 72 23 Liquids 16 Liquids 31 N.A. Gas 56 APLNG Gas 48 Total 72 Other Gas (33) 1,595 1,523 Total 46 1,546 2Q15 Dispositions¹ 2Q15 Adjusted for Downtime Net Increase 2Q16 Dispositions All volumes in MBOED. 1 Dispositions reflect impact from assets sales in Lower 48, Canada, Polar Lig
Slide 9: 1H16 Performance – Company Cash Flow
1H16 Performance – Company Cash Flow 1H16 Marker Prices $B • Brent $39.73/BBL • WTI $39.38/BBL • Henry Hub $2.02/MMBTU 3.8 2Q16 • Debt of $28.7B • Debt-to-capital ratio of 43% 1.9 0.4 3.0 0.6 0.1 0.6 4.2 2.4 2016 Beginning CFO Excluding Total Working Disposition Debt Capital Dividends Other 2Q16 End
Slide 10: Al Hirshberg, EVP Production, Drilling and Projects
Al Hirshberg EVP, Production, Drilling and Projects
Slide 11: Lower 48 and Canada
Lower 48 and Canada Lower 48 • 2Q16 production of 503 MBOED vs. 520 MBOED in 2Q151 • Unconventional production of 262 MBOED vs. 272 MBOED in 2Q15 • Continuing to run 3 operated rigs • Successful results from Shenandoah appraisal well Canada • 2Q16 production of 279 MBOED vs. 275 MBOED in 2Q151 • Bit
Slide 12: Alaska and Europe & North Africa
Alaska and Europe & North Africa Alaska • 2Q16 production of 179 MBOED vs. 173 MBOED in 2Q151 • Strong production from CD5 and Drill Site 2S; additional phase approved at CD5 • Planned 3Q16 turnaround activity underway • Completed sale of Beluga River in 2Q16 Europe & North Africa • 2Q16 production
Slide 13: Asia Pacific & Middle East and Other International
Asia Pacific & Middle East and Other International Asia Pacific & Middle East • 2Q16 production of 398 MBOED vs. 349 MBOED in 2Q15 • Operating above expectations at APLNG Train 1; expect first cargo from Train 2 in 4Q16 • Gumusut production exceeding expectations • KBB production increasing with thi
Slide 14: 2H16 Operations Outlook
2H16 Operations Outlook • Expect 2016 full-year production of 1,540 to 1,570 MBOED $5.5B • 3Q16 production guidance: 1,510 to 1,550 MBOED 2016 CAPITAL GUIDANCE • Continue major planned turnaround activity through 3Q16 $6.8B 2016 ADJUSTED • Ongoing ramp up in Canadian oil sands at FCCL and Surmont OP
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix
Slide 17: 2016 Outlook Guidance
2016 Outlook Guidance • 2016 DD&A of ~$9.2B • Reflects increased volumes and impacts from price-related reserve revisions • Adjusted Operating Costs of ~$6.8B • Exploration Dry Hole and Leasehold Impairment Expense of ~$0.8B • Corporate Segment Net Loss of ~$1B Guidance excludes special items. Adjus