ConocoPhillips · NYSE:COP

ConocoPhillips — Q1 2013 Earnings Presentation

25 slides from ConocoPhillips's earnings presentation, Apr 25, 2013

  1. Slide 1: 1st quarter 2013 Conference Call

    1st quarter 2013 CONFERENCE CALL Jeff Sheets, EVP, Finance & CFO Matt Fox, EVP, Exploration & Production April 25, 2013

  2. 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 or operating results. Actual outcomes and results may di

  3. Slide 3: First-Quarter 2013 Highlights

    First-Quarter 2013 Highlights Strategic Operational Financial  Progressing asset  Total production of  $1.8 B adjusted sales 1,596 MBOED1 earnings, $1.42 adjusted EPS  Closed Cedar Creek  Delivering on  $3.6 B CFO, Anticline for $1 B growth programs excluding working and projects capital2  Ex

  4. Slide 4: 1Q13 Performance – Adjusted Earnings

    1Q13 Performance – Adjusted Earnings Adjusted Earnings ($MM)  1Q13 adjusted earnings flat vs. 4Q12; down 2% vs. 1Q12  Adjusted EPS up 3% vs. 1Q12, reflecting 2012 share repurchases 1,779 1,755 1,752  Average realized price up ~$1/BOE vs. 4Q12; down ~$2/BOE vs. 1Q12  Bitumen prices remained weak

  5. Slide 5: 1Q13 Performance – Production Growth

    1Q13 Performance – Production Growth MBOED 1,637 1,592 219 1,596 45 15 30 170 1,581 1,536 1,555 1Q12 2012 1Q12 Discontinued Downtime Decline Growth & Other 1Q13 Dispositions Normalized Operations 1 for Dispositions Continuing Discontinued Operations Operations2 1 Discontinued operations variance of

  6. Slide 6: 1Q13 Performance – Cash Margin Improvement

    1Q13 Performance – Cash Margin Improvement Cash Margin ($BOE)  Weakening commodity price environment year-over-year  Cash margin growth  6% year-over-year  4% sequentially 25.62 26.53 25.05  Visible portfolio shift to liquids  Liquids production increased from 55% in 1Q12 to 57% in 1Q13 1Q12 4

  7. Slide 7: Lower 48 and Latin America

    Lower 48 and Latin America Production (MBOED) Realized Prices Liquids Gas 475 475 1Q12 2Q12 3Q12 4Q12 1Q13 451 441 462 Crude $99 $90 $90 $89 $94 ($/Bbl) NGL $45 $35 $31 $31 $30 ($/Bbl) Nat Gas $2.65 $2.10 $2.64 $3.24 $3.19 ($/Mcf) 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted Earnings ($MM)  Production growth

  8. Slide 8: Canada

    Canada Production (MBOED) Realized Prices Liquids Gas 277 281 283 1Q12 2Q12 3Q12 4Q12 1Q13 266 268 Crude $84 $75 $77 $78 $73 ($/Bbl) Bitumen $61 $51 $57 $48 $39 ($/Bbl) Nat Gas $1.98 $1.61 $2.05 $2.92 $2.89 ($/Mcf) 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted Earnings ($MM)  Production continues to increase 

  9. Slide 9: Alaska

    Alaska Production (MBOED) Realized Prices Liquids Gas Sales 236 1Q12 2Q12 3Q12 4Q12 1Q13 215 222 218 176 Crude $112 $112 $107 $107 $111 ($/Bbl) 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted Earnings ($MM)  Lower production in 1Q13 reflects normal field decline 620 595 551 535 543  1Q13 earnings adversely impa

  10. Slide 10: Asia Pacific and Middle East

    Asia Pacific and Middle East Production (MBOED) Realized Prices1 Liquids Gas Sales 322 318 1Q12 2Q12 3Q12 4Q12 1Q13 303 306 270 Crude $118 $109 $105 $103 $109 ($/Bbl) Nat Gas $10.40 $11.47 $10.64 $10.15 $10.71 ($/Mcf) 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted Earnings ($MM)  Production increased 5% year-ov

  11. Slide 11: Europe

    Europe Production (MBOED) Realized Prices Liquids Gas Sales 271 236 1Q12 2Q12 3Q12 4Q12 1Q13 216 191 207 Crude $121 $110 $110 $112 $114 ($/Bbl) Nat Gas $9.98 $9.52 $8.87 $10.56 $10.81 ($/Mcf) 1Q12 2Q12 3Q12 4Q12 1Q13 Adjusted Earnings ($MM)  1Q13 production impacted by normal field decline and unpl

  12. Slide 12: 1Q13 Performance – Company Cash Flow

    1Q13 Performance – Company Cash Flow $B End Q1 2013 • Debt of $21.7 B 1.1 • Debt-to-capital ratio of 31% 1.0 3.6 3.6 0.8 0.3 5.4 4.4 2013 Beginning CFO excl. Working Capital Proceeds from Capital Dividends Debt & Other 2 Ending Cash Cash & Working Capital Dispositions Program 1Q13 1 Restricted Cash

  13. Slide 13: ConocoPhillips operations review

    ConocoPhillips operations REVIEW

  14. Slide 14: Base Operations Running to Plan

    Base Operations Running to Plan High-Quality Legacy Base Production and Capability  Worldwide base operations performing according to plan  Winter weather impacts at San Juan  Production shut in at Calder Field in East Irish Sea  Major turnaround and tie-in activity planned for 2Q13/3Q13 Permian

  15. Slide 15: Strong Performance from Development Programs

    Strong Performance from Development Programs High-Margin Worldwide Development Program Inventory  Legacy conventional programs on plan  Coiled tubing drilling continuing at Kuparuk  Production optimization and drilling/completion benefits in western Canada  Lower 48 growth continues  Eagle Ford

  16. Slide 16: Major Projects on Track to Deliver Growth

    Major Projects on Track to Deliver Growth High-Margin Major Growth Projects in Execution  Oil sands continuing to ramp up  Averaged 109 MBOED  Christina Lake Phase E production startup on schedule for 3Q13  Asia Pacific projects on plan  8 Panyu growth wells on line in China  Malaysia on track

  17. Slide 17: Exploration Catalysts in Deepwater GOM

    Exploration Catalysts in Deepwater GOM 2013 Gulf of Mexico Exploration  Two significant discoveries announced Texas Louisiana  Shenandoah appraisal well discovery Tiber Shenandoah Ardennes >1,000 feet net pay WI: 18% Target: L Tertiary WI: 30% Target: L Tertiary WI: 30% Target: L Tertiary  Corona

  18. Slide 18: Progressing Worldwide Exploration Opportunities

    Progressing Worldwide Exploration Opportunities Conventional and Unconventional Exploration Activity  Emerging unconventional plays  Canada: Canol Shale NPR-A  2 vertical wells logged and cored Canol  Lower 48: Niobrara  Drilled 3 wells in 1Q13 Niobrara  Colombia: La Luna Shale La Luna  Drill

  19. Slide 19: 2013 – 2014: Positioned for Success

    2013 – 2014: Positioned for Success Strategic Operational Financial  Delivering on value  Significant  Maintain strong proposition inflection point balance sheet  Complete  Visible results from  Demonstrate announced asset exploration margin sales programs improvement  Dividend remains  Comm

  20. Slide 20: Q&A

    ConocoPhillips Q&A

  21. Slide 21: Appendix

    ConocoPhillips APPENDIX

  22. Slide 22: 2013 Production Outlook – On Track

    2013 Production Outlook – On Track Cedar Creek Anticline Continuing Operations 1Q13 2Q13 3Q13 4Q13 FY2013 MBOED 1Q13 2Q13 3Q13 4Q13 FY13 Continuing Operations 1,5551 1,440 - 1,470 1,425 - 1,475 1,525 - 1,575 1,485 - 1,520 Discontinued Operations 41 40 0 - 40 0 - 40 20 - 40 Total Production 1,596 1,4

  23. Slide 23: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings $ Millions 2012 2013 1Q 4Q 1Q Consolidated Earnings 2,937 1,426 2,139 Adjustments: Impairments 520 351 - Net (gain)/loss on asset sales (937) - (279) Tax loss carryforward realization - (236) 21 Separation costs 33 4 - Pension

  24. Slide 24: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings $ Millions $ Millions 2012 2013 2012 2013 1Q 4Q 1Q 1Q 4Q 1Q Alaska Asia Pacific and Middle East Earnings 620 570 543 Earnings 1,738 749 918 Adjustments: Adjustments: Pending claim

  25. Slide 25: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Cash Margin per BOE – Operating Segments Cash Margin per BOE - Operating Segments 1Q12 4Q12 1Q13 $ Millions, except per BOE amounts Net Income Attributable to ConocoPhillips 2,937 1,426 2,139 Adjustment to exclude special items (1,158) 329 (387) Adjusted Earnings 1,779 1,755

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