ConocoPhillips · NYSE:COP
ConocoPhillips — Q3 2018 Earnings Presentation
14 slides from ConocoPhillips's earnings presentation, Oct 25, 2018
Slide 1: 3Q18 Earnings Conference Call
ConocoPhillips 3Q18 Earnings Conference Call October 25, 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: Ryan Lance, Chairman & CEO
ConocoPhillips RYAN LANCE Chairman & CEO
Slide 4: 3Q18 Summary: Staying Disciplined; Focus on Free Cash Flow; Strong Execution
> 3Q18 Summary: Staying Disciplined; Focus on Free Cash Flow; Strong Execution — ConocoPhillips ~~, LE ————“— Strategic Delivering on disciplined priorities > Announced quarterly dividend increase of 7% in October Increased 2018 buybacks to $3B and total authorization to $15B Returned ~35% of CFO? t
Slide 5: Question & Answer Session
ConocoPhillips Question & Answer Session
Slide 6: Appendix
Appendix
Slide 7: 3Q18 Earnings Summary
3Q18 Earnings Summary ConocéPhillips Adjusted Earnings (SMM) Highlights * Sequential adjusted earnings benefited from improved realized prices and higher sales volumes $1.4B HIGHER ADJUSTED EARNINGS YEAR-OVER-YEAR * Year-over-year adjusted earnings benefited from a 46% improvement in realizations an
Slide 8: 3Q18 Performance — Company Cash Flow
3Q18 Performance — Company Cash Flow $B Includes $0.3B from PDVSA settlement ~35% CFO2 a oe TO SHAREHOLDERS $1.9B FREE CASH FLOW ~ GENERATEDIN THE THIRD QUARTER ConocoPhillips 3Q18 Marker Prices * Brent $75.27/BBL * = WTIS$69.71/BBL * Henry Hub $2.91/MMBTU 3Q18 Beginning Cash & cro Disposition Capit
Slide 9: 3Q18 YTD Performance — Company Cash Flow
3Q18 YTD Performance — Company Cash Flow ConocoPhillips SB 3Q18 YTD Marker Prices * Brent $72.13/BBL * WTIS66.86/BBL * Henry Hub $2.90/MMBTU 5.1 Includes $0.48 ~35% CFO2 Alaska bolt-on and $0.1B Ww Montney RETURN TO SHAREHOLDERS acreage acquisition a S4.0B FREE CASH FLOW 24 w~ GENERATED YEAR-TO DATE
Slide 10: 3Q18 Operations Highlights
Alaska GMT-1 3Q18 Operations Highlights ConocoPhillips 3Q18 production of 1,224 MBOED; up 6% versus 3Q17 underlying production! of 1,150 MBOED Lower 48 Big 3 unconventional production up 48% year-over-year Successfully executed Alaska and APME turnarounds Recently achieved first production from Boha
Slide 11: Full-Year 2018 Guidance
Full-Year 2018 Guidance ConocoPhillips * Capital expenditures: $6.1B; excludes announced acquisitions of $0.4B Alaska Western North Slope bolt-on transaction and $0.1B Montney acreage ¢ Full-year 2018 production: 1,235 — 1,245 MBOED * 4Q18 production: 1,275— 1,315 MBOED * Adjusted operating costs: $
Slide 12: 2018 Production Guidance (MBOED)
2018 Production Guidance (MBOED) 1,219 1,215 1,275 - 1,315 4Q17 4Q18E ~22% PRODUCTION PER DEBT- ADJUSTED SHARE GROWTH? ~10% PRODUCTION PER-SHARE GROWTH? “7% UNDERLYING PRODUCTION? GROWTH Bh Underlying Production* 1,356 1,235 - 1,245 roduction FY17 FY18E BB Closed Dispositions? ConocoPhillips ~21% PR
Slide 13: 2018 Annualized Net Income Sensitivities
2018 Annualized Net Income Sensitivities ConocoPhillips $45-$75/BBL WTl Crude ¢ Brent/ANS: $105-125MM for $1/BBL change * WTI: $45-55MM for $1/BBL change * WCS': $10-15MM for $1/BBL change * Does not incorporate contingent payment of CAS6MM quarterly for every CAS1 WCS price above CAS52/BBL North Am
Slide 14: 2018 Annualized Cash Flow Sensitivities
2018 Annualized Cash Flow Sensitivities Consolidated Operations ($45-$75/BBL WTI) Crude: * Brent/ANS: ~$100-110MM for $1/BBL change * WTI: ~$55-65MM for $1/BBL change * WCS: ~$15-20MM for $1/BBL change Lower 48 NGL * Representative Blend: ~$10-15MM for $1/BBL change Natural Gas * Henry Hub: ~$35-45M