Conocophillips · NYSE:COP
Conocophillips — Investor Presentation (May 2015)
74 slides from Conocophillips's investor presentation, May 14, 2015
Slide 1: Investor Update
Investor Update Last updated: May 14, 2015
Slide 2: Cautionary Statement
Cautionary Statement The following presentation includes forward-looking statements. All statements included in this presentation other than statements of historical fact, including, without limitation, statements regarding production forecasts, anticipated production mix, estimates of operating cos
Slide 3: Company Overview
Company Overview 1,610 MBOED Production1 – 1Q15 North • Diversified asset base with significant scope and scale American 24% Liquids Gas • Multiple sources of growth LNG + • Growing inventory of low cost of supply opportunities International 18% Gas 58% • Large positions in key resource trends • Rel
Slide 4: Core Energy Holding
Core Energy Holding We offer attractive annual returns to shareholders through a compelling dividend, predictable growth and a priority on margins and financial returns. 4
Slide 5: Disciplined Approach for the New World
Disciplined Approach for the New World 2012-2014 Plan 2015-2017 Plan Compelling dividend = Compelling dividend Cash flow neutrality in 2017 = Cash flow neutrality in 2017 Improve financial returns = Improve financial returns Maintain “A” credit rating = Maintain “A” credit rating Annual capital of ~
Slide 6: Capital Allocation for a Lower, More Volatile Price Environment
Capital Allocation for a Lower, More Volatile Price Environment Prior Plan ~$16B/year Exploration Reduce & Re-allocate Execute Plan with Growing Flexibility Major Projects Strategy Drivers ~$11.5B ~$11.5B • Exploration: Limiting new access Exploration Exploration Development Major Projects Major Pro
Slide 7: Flexibility, Resilience and Growth for ~$11.5B
Flexibility, Resilience and Growth for ~$11.5B 2-3% PRODUCTION GROWTH 2014-2015 Average Capital ~$11.5B Production 1.7 MMBOED 1.8 Exploration 1.5 MMBOED 1.6 Major Projects 1.4 1.2 MMBOED Development 1.0 0.8 0.6 0.4 Base 0.2 - 2015-2017 2014 2017 Production represents continuing operations, excluding
Slide 8: What Wins in a Lower, More Volatile Price Environment?
What Wins in a Lower, More Volatile Price Environment? Asset Characteristics Role in Portfolio Stable source of funding to Diverse, low-decline base sustain dividend Investment returns resilient Low cost of supply to lower prices Scalable growth in response to Flexible investment options higher or l
Slide 9: Winning Portfolio: Increasing Flexibility and Returns
Winning Portfolio: Increasing Flexibility and Returns, Decreasing Cost of Supply <$60/BOE Average Cost of Supply >$60/BOE Average Cost of Supply • Lowest cost of supply High >25% North American Unconventionals • Source of flexible growth Full-Cycle Project Returns North American Medium 15-25% Conven
Slide 10: Financial Priorities
Financial Priorities • Return cash to shareholders through a compelling dividend • Achieve cash flow neutrality in 2017 • Growth from high-margin liquids • Aggressively pursuing cost reductions • Exercise increasing capital flexibility • Focus on financial returns • Maintain strong balance sheet to
Slide 11: Committed to Compelling Dividend
Committed to Compelling Dividend Dividend Yield • Cash dividend is key to our value proposition • Highest priority use of funds 4.2% • Enhances capital discipline • Predictable portion of shareholder returns • Differential compared to independent peers Integrated Peers Independent Peers ConocoPhilli
Slide 12: 2014-2017: Cash Flow Growth
2014-2017: Cash Flow Growth Cash From Operations – $B ~$3B of Cash ~30 MBOED $1B Operating Flow Growth Net Decline Cost Reductions ~200 MBOED Net Growth 16.3 ~15.5 ~12.5 2014 Actual 2014 Normalized Liquid and LNG Gas Decline Costs 2017 CFO¹ CFO² Growth CFO $99 Brent $75 Brent $75 Brent $93 WTI $70 W
Slide 13: Committed to Cash Flow Neutrality in 2017
Committed to Cash Flow Neutrality in 2017 FLEXIBILITY IN 2017 Capital to • Significant capital flexibility in 2017 Maintain Flat ~$15.5B Production 2017+ • Production growth a function of capital • $11.5B for predictable growth • ~$9B to maintain flat production 2017+ Dividend • Flexibility for divi
Slide 14: Focus on Financial Returns
Focus on Financial Returns 2014 Cash Return on 2014 Return on Capital Employed¹ Capital Employed¹ • Competitive ROCE and CROCE performance 20.4% • Continued focus on improving returns 9.4% • Improve 2014 to 2017 flat price ROCE by ~1.5% • High-margin liquid and LNG growth • Sustained cost reductions
Slide 15: Balance Sheet Strength and Flexibility is Core Priority
Balance Sheet Strength and Flexibility is Core Priority New Debt Issuance Rates1 • Capacity to fund 2015 and 2016 spending 5% • Balance sheet strength to weather price 4% downturn • $2.7B of cash at the end of 1Q15 3% • $6.2B of unused revolving credit capacity 2% • No near-term debt maturities 1% •
Slide 16: Diversified, Low Cost of Supply Portfolio Delivering 1.7 MMBOED in 2017
Diversified, Low Cost of Supply Portfolio Delivering 1.7 MMBOED in 2017 2015-2017 Average Capital ~$11.5B Alaska Europe ~11% of Production Alaska New projects Canada Europe APME offsetting decline ~21% of ~12% of Production Production Canada Completed major High-quality oil sands and unconventional
Slide 17: Lower 48: Low Cost of Supply with High-Value Mix Shift
Lower 48: Low Cost of Supply with High-Value Mix Shift Product Mix Shift to Liquids • $4-5B annual investment in 2015-2017 Bakken Gas • Focus on Eagle Ford, Bakken and Permian Gas 40% Green Wind River Basin 47% River Basin NGL • Profitable liquids growth NGL 16% Uinta Basin Niobrara 18% 13% Liquids
Slide 18: Lower 48 Unconventionals: Industry-Leading Cost of Supply
Lower 48 Unconventionals: Industry-Leading Cost of Supply INDUSTRY LEADING COST OF SUPPLY UNCONVENTIONALS Rystad1 Wood Mackenzie2 ITG Investment Research3 Eagle Ford Eagle 80 80 80 Bakken Independent Companies Ford Eagle Ford Average Wellhead Breakeven Price ($/BBL) 75 Integrated Companies 75 75 70
Slide 19: Lower 48 Unconventionals: Prudent Pace Preserves Value & Optionality
Lower 48 Unconventionals: Prudent Pace Preserves Value & Optionality • Priority on protecting value Reducing Cost of Supply • Prudent to defer programs in current market Drilling & Completions Efficiency • Expect to ramp up activity through 2017 Cost Focus & Deflation Capture • Continuing pilots, op
Slide 20: Eagle Ford: Value-Driven Approach to Full-Field Development
Eagle Ford: Value-Driven Approach to Full-Field Development • ~220 M net acres; 2.5 BBOE net resource1 2017 Product Mix NGL • Developing on 80-acre high/low spacing 19% • Testing triple stack development potential • >15 years of drilling inventory remaining Gas • Average 7 rigs in 2015; ~12 rigs in
Slide 21: Eagle Ford: Industry-Leading Performance
Eagle Ford: Industry-Leading Performance LOWEST COST OF SUPPLY Lowest Cost of Supply1 Highest Oil Rates per Well2 Highest NPV per Acre3 70 200 90 180 80 Gross Operated Production (BPD) 60 160 70 WTI Breakeven ($/BBL) 50 140 NPV10 per Acre ($M) 60 120 40 50 100 30 40 80 30 20 60 40 20 10 20 10 0 0 0
Slide 22: Bakken: Growth from Highest Value Part of Play
Bakken: Growth from Highest Value Part of Play North Dakota MOUNTRAIL • ~620 M net acres; mostly HBP or mineral fee 2017 Product Mix ConocoPhillips Acreage Minerals • 0.6 BBOE net resource1 NGL WILLIAMS 6% • Developing at 160-acre combined spacing2 • >10 years of drilling inventory remaining Gas 10%
Slide 23: Permian Unconventional: Appraising Long-Term Opportunity
Permian Unconventional: Appraising Long-Term Opportunity • High-graded acreage position 2017 Product Mix NGL • ~100 M net acres of stacked play opportunity 23% • 1 BBOE net resource1 • >25 years of drilling inventory remaining Oil 50% Gas • Average 2 rigs in 2015; ~4 rigs in 2017 27% Capital Product
Slide 24: Canada: Growth from Two Vast Resource Positions
Canada: Growth from Two Vast Resource Positions 2017 Product Mix • >$1B capital focused on unconventionals and oil sands NGL 7% • Exploration drilling offshore Nova Scotia Gas • Surmont 2 on track for 2015 startup 29% • Production through 2017 grows by 80 MBOED Oil Bitumen 2% 62% Oil Sands Capital P
Slide 25: Oil Sands: Surmont On Track for 2015 Startup
Oil Sands: Surmont 2 On Track for 2015 Startup >90% Complete • First steam expected in mid-2015 Total Surmont Capital Total Surmont Production • First production 3Q15; ramping up through 1 80 2017 • Increases gross capacity to 150 MBOED 60 MBOED $B • Optimization and debottlenecking studies 0.5 40 S
Slide 26: Asia Pacific & Middle East: High-Margin Growth Underway
Asia Pacific & Middle East: High-Margin Growth Underway • Capital profile reflects completion of several major 2017 Product Mix projects Beijing LNG Oil Bohai Bay • Attractive opportunities in Malaysia, China and 38% 27% CHINA Indonesia Hong Kong North Field • Steady LNG volumes from Qatar and Bayu
Slide 27: APME: Long-Term Cash Flow Generation from APLNG
APME: Long-Term Cash Flow Generation from APLNG >90% Complete • Startup expected in 3Q15 APLNG Capital APLNG Production 120 2 • APLNG JV self funding from 2016 forward 100 1.5 80 MBOED • >20 years of long-life, flat production $B 60 1 SELF 40 • ~$25/BOE full-cycle F&D cost 0.5 FUNDING APLNG JV 20 20
Slide 28: Alaska: New Projects Maintain Strong Performance in Alaska
Alaska: New Projects Maintain Strong Performance in Alaska Beaufort Product Mix - 2017 Beaufort Sea Sea LNG 2% 1H NEWS NGL Colville River Unit Alaska 6% CD5 Gas Oil DS-2S Prudhoe Bay Unit 87% GMT1 5% Nuiqsut Kuparuk River Unit Alaska Capital Production • Largest producer in Alaska 2 200 • Improved f
Slide 29: Europe: Optimizing Performance in Mature Assets
Europe: Optimizing Performance in Mature Assets PL720 PL615B • 3 major project startups in 2015 2017 Product Mix PL615 PL603 PL718 PL218 • Drilling from new infrastructure offsets decline NGL Barents Sea Heidrun 4% NORWAY Norwegian Sea • Clair Ridge & Aasta Hansteen provide future volumes SWEDEN FIN
Slide 30: Global Exploration: 2015 Exploration and Appraisal Drilling
Global Exploration: 2015 Exploration and Appraisal Drilling $0.9B Exploration North Slope $1.5B UK & E&A Western Canada Norway Unconventionals $0.6B Appraisal Nova China Lower 48 Scotia Unconventionals Gulf of Mexico Senegal Malaysia Colombia Indonesia Australia Angola Unconventional Deepwater Other
Slide 31: Diverse Long-Term Growth from Low Cost of Supply Resource Base
Diverse Long-Term Growth from Low Cost of Supply Resource Base Total Resources – 44 BBOE Reserves 8.9 BBOE Challenged Resource • Stakeholder Challenged <$75/BOE Brent Cost of Supply Resources • Example: Sunrise • Does not reflect recent deflation • Technologically Challenged Challenged <$75/BOE • Co
Slide 32: Growing Our Low Cost of Supply Resource Base
Growing Our Low Cost of Supply Resource Base 7 BBOE RESOURCE ADDITIONS <$75 COST OF SUPPLY 2014 VS. 2011 2011 vs. 2014 Resources <$75/BOE 2014 Resources By Megatrend 24 BBOE 24 BBOE Deepwater 7 BBOE $60-$75/BOE Deepwater: Development of discovered LNG 20 BBOE Added resources globally $60-$75/BOE Sin
Slide 33: Unconventional Resources: Top-Tier, Low Cost of Supply Resource
Unconventional Resources: Top-Tier, Low Cost of Supply Resource Unconventional Resources • 25% of resources with cost of supply <$75/BOE 24 BBOE 6.0 BBOE are unconventionals $60-$75/BOE • Only 0.9 BBOE booked as proved reserves $45-$60/BOE Unconventional • Consistent track record of adding resources
Slide 34: Large, Diverse, Low Cost of Supply Resource Base
Large, Diverse, Low Cost of Supply Resource Base YE 2014 Total Resource – 44 BBOE Today • 8.9 BBOE proved reserves Proved Reserves • 16 year R/P from existing proved reserves Challenged <$75/BOE 20 BBOE Cost of Supply 24 BBOE Conventional • Unbooked resource base provides diverse source of new reser
Slide 35: Key Takeaways
Key Takeaways DIVIDEND • Dividend is highest priority use of cash REMAINS TOP PRIORITY • Cash flow neutrality in 2017 2017 CASH FLOW • Predictable growth with disciplined ~$11.5B capital program NEUTRALITY • Ongoing focus on margins and returns; $1B operating cost reduction underway FLEXIBLE PLAN DE
Slide 36: Appendix
conocStips Appendix
Slide 37: 2012-2014: Successfully Delivered on Our Commitments
2012-2014: Successfully Delivered on Our Commitments Operational Financial Strategic • 3% production compound • 9% cash margin compound • Completed $14B in non-core annual growth rate1 annual growth rate2 asset sales • 9 major project startups • 10% operating cash flow • Increased inventory of compo
Slide 38: 2012-2014: Track Record of Value Creation
2012-2014: Track Record of Value Creation Total Shareholder Return Since April 30, 2012 14.1% ConocoPhillips Integrated 6.2% Peer Average 4.1% Independent Peer Average S&P 500 Energy -6.1% Peers include: APA, APC, BG, BP, CVX, DVN, OXY, RDS, TOT and XOM. Period covers April 30, 2012 – Dec. 31, 2014
Slide 39: 2015-2017: Uncertain Price Outlook
2015-2017: Uncertain Price Outlook 140 Brent ($/bbl) • Wide range of outlooks based on differing 120 views of macro factors 100 112 109 80 99 • Global economic outlook 60 • Supply and demand response to low oil prices 40 • Industry cost deflation 140 WTI ($/bbl) • Technology change impacting supply
Slide 40: Capital Allocation for a Lower, More Volatile Price Environment
Capital Allocation for a Lower, More Volatile Price Environment Execute Plan with Growing Flexibility Delivering Profitable Growth 1.7 MMBOED 1.8 1.5 MMBOED 1.6 ~$11.5B ~$11.5B Exploration Exploration Future Projects Future Projects 1.4 Major Projects in Execution 45% Reduction Major Projects in Exe
Slide 41: Completion of Major Projects Increases Capital Flexibility
Completion of Major Projects Increases Capital Flexibility 5 Projects in Execution 4 Canada >90% Future Major Projects COMPLETE Capital Spend ($B) SURMONT 2 3 APLNG APME Canada Canada 2 APME APME Europe Europe 1 Europe Alaska 45% CAPITAL Alaska Alaska Future Projects Future Projects Future Projects
Slide 42: Capital Flexibility Directed Toward Development Drilling
Capital Flexibility Directed Toward Development Drilling 7 FLEXIBLE Other SHORT-CYCLE 6 LOW COST OF SUPPLY Other Canada Canada Permian 5 Permian Capital Spend ($B) Canada Bakken Bakken 4 Permian Bakken 3 Eagle Ford Eagle Ford Eagle Ford 2 1 Conventional Conventional Conventional 50% CAPITAL 0 INCREA
Slide 43: Growth in High-Margin Liquids
Growth in High-Margin Liquids Production (MBOED) 1.8 • Liquids growth from major projects at APLNG, Canadian oil sands and Malaysia 1.6 North American Unconventional 1.4 Oil • Liquids growth from flexible, low cost of supply Oil ~200 1.2 unconventional developments MBOED LNG Liquids Growth NGL 1.0 O
Slide 44: Eagle Ford: Driving Drilling and Completion Efficiencies
Eagle Ford: Driving Drilling and Completion Efficiencies 2013 2015 • Continued drilling and completion efficiencies Job Size Job Size 3.8 MM lbs 7.7 MM lbs • Pilot studies optimizing recovery • DEEP implementation to reduce drilling days even further Drilling Execution Efficiency Platform (DEEP) ~30
Slide 45: Eagle Ford: Maximizing Operating Efficiencies
Eagle Ford: Maximizing Operating Efficiencies 43% LIFTING COST ADVANTAGE COMPARED WITH COMPETITOR AVERAGE Leading Total Production Efficiency Lifting Cost per BOE • Top-tier production efficiency and reliability • Integrated operations center • Data analytics deliver improved diagnostics • Leveragin
Slide 46: Eagle Ford: Optimizing Field Development Through Pilot Programs
Eagle Ford: Optimizing Field Development Through Pilot Programs Transition to High/Low Completed 2015: Testing Tighter Spacing and Triple Stack Development 2015 Pilot Program Focus Areas Triple stack pilot tests GR BVI 80-acre1 high/low spacing Horizontal spacing pilot tests AC Upper Eagle Ford Texa
Slide 47: Upper Eagle Ford: Pilot Test Results Exceeding Expectations
Upper Eagle Ford: Pilot Test Results Exceeding Expectations CONFIRMED UPPER EAGLE FORD POTENTIAL Triple Stack Development Strategy Production Performance1 • Performance analogous to Lower Eagle Ford Evaluating Austin Upper Eagle Chalk Ford Well • Testing stacked development concept in multiple locat
Slide 48: Bakken: Driving Drilling & Completion Efficiencies
Bakken: Driving Drilling & Completion Efficiencies Wood Mackenzie: Sub-Play Acreage Values (NPV10 per Acre)1 Nesson Anticline TOP Parshall Sanish PRODUCER 1 Fort Berthold Three Forks NESSON ANTICLINE Williams Core Bakken $0 $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 Drilling Cost
Slide 49: Bakken: Optimizing Field Development Through Pilot Programs
Bakken: Optimizing Field Development Through Pilot Programs North Dakota Current Testing Tighter Spacing Evaluating Further Upside WILLIAMS MOUNTRAIL 160-acre1 in Bakken / 80-acre1 in Bakken/ Additional Wells in GR BVH Upper Three Forks Upper Three Forks Middle Three Forks 1 test well 3 test wells U
Slide 50: Middle Three Forks: Encouraging Results
Middle Three Forks: Encouraging Results CONFIRMED MIDDLE THREE FORKS POTENTIAL Three-Layer Development Strategy Production Performance1 • Well performance comparable to Upper Three Forks Upper Three Forks Well Middle • Executing pilots to test well placement Bakken and spacing Upper Cumulative Produ
Slide 51: Permian Unconventional: Appraising Multiple Stacked Pays
Permian Unconventional: Appraising Multiple Stacked Pays • Potential for multiple stacked horizontal wells NEW MEXICO • Appraisal results confirming expectations TEXAS Midland • Focused on the lowest cost of supply zones • Targeting development wells with >1,000 BOED • Lowering cost of supply throug
Slide 52: Niobrara: Continued Improvement in Performance
Niobrara: Continued Improvement in Performance • ~120 M net acres in the DJ Basin 2017 Product Mix NGL 23% • Encouraging results in liquids-rich basin • Continuing to appraise acreage • Optimizing completion design and well lateral length Gas 24% • Provides significant optionality Oil 53% 4Q14 ADAMS
Slide 53: Lower 48 Unconventionals: High-Value Position with Upside
Lower 48 Unconventionals: High-Value Position with Upside RETURNS REMAIN ATTRACTIVE Similar Returns Expected at Lower Prices • Offsetting impacts of lower prices • Optimizing full-field development programs Oil Price Deflation Technology & Cost Efficiencies • Aggressive cost control and deflation ca
Slide 54: Western Canada: Appraising and Developing Unconventional Plays
Western Canada: Appraising and Developing Unconventional Plays North Central South ConocoPhillips Acreage • Mix of mature and emerging unconventionals Alberta • >6,000 feet of stacked pay • Applying learnings from Lower 48 Falher/ unconventionals Cretaceous Wilrich Alberta 6,000ft • Predominately ex
Slide 55: Oil Sands: Significant Growth from World-Class SAGD Portfolio
Oil Sands: Significant Growth from World-Class SAGD Portfolio • Second largest SAGD producer • Top-tier steam-to-oil ratio • 100 MBOED growth through 2017 • Slowing sanction of new project phases • Optimizing production through existing facilities Fort McMurray • Lowering cost of supply of new devel
Slide 56: APME: High-Margin Developments in Malaysia
APME: High-Margin Developments in Malaysia • SNP and Gumusut on production South KBB Cluster PSC China Ubah KME • KBB complete; awaiting third-party pipeline Sea KBB Malikai SB 311 Pisagan SNP • Malikai oil field online in 2017 3E Limbayong SOGT Gumusut • 60 MBOED production in 2017 Sabah Sarawak BR
Slide 57: Gulf of Mexico: 2015 Appraisal Drilling
Gulf of Mexico: 2015 Appraisal Drilling 2015 Appraisal Drilling ConocoPhillips Lease Gila – Paleogene Appraisal 4Q15 Shenandoah Gila Tiber Shenandoah – Paleogene Appraisal 3Q15 Tiber – Paleogene 2 appraisal wells in 2015 Lower 48 Canada APME Alaska Europe Exploration 57
Slide 58: Gulf of Mexico: 2015 Exploration Drilling
Gulf of Mexico: 2015 Exploration Drilling 2015 Exploration Drilling Vernaccia – Miocene 2015 Appraisal Drilling ConocoPhillips Lease Spud 2Q15 Gibson – Paleogene Spud 2015/2016 Shenandoah Gibson Gila Tiber Melmar Socorro Melmar – Paleogene Socorro – Paleogene ConocoPhillips Operated ConocoPhillips O
Slide 59: West Africa: Exploration and Appraisal Drilling
West Africa: Exploration and Appraisal Drilling Angola BASIN • Pre-salt lacustrine carbonate play in Kwanza Basin SENEGAL OPENING • Vali-1 spud in April 2015 Atlantic DISCOVERIES Ocean Senegal AFRICA • FAN-1 Discovery – 3Q14 • Cretaceous stratigraphic trap • 95 feet net oil bearing sandstone Rufisqu
Slide 60: East Canada: Nova Scotia and Newfoundland Exploration Drilling
East Canada: Nova Scotia and Newfoundland Exploration Drilling Nova Scotia NEWFOUNDLAND • Cheshire-1 planned spud 4Q15 • Targeting Lower Cretaceous and Jurassic 4-way Atlantic Ocean closure NOVA SCOTIA • Monterey Jack-1 planned to follow with spud in 2016 NEWFOUNDLAND Newfoundland Bay Du Nord • Situ
Slide 61: Aggressively Pursuing Operating Cost Reductions
Aggressively Pursuing Operating Cost Reductions 2014 Operating Costs – $9.7B¹ • Cost reduction programs underway to source $1B of reductions in 2016 compared to 2014 SG&A Exploration G&A and G&G • Internal costs account for ~1/3 of total • Implemented salary freeze; headcount reduction Production an
Slide 62: Delivering Capital and Operating Cost Efficiencies
Delivering Capital and Operating Cost Efficiencies Integrated Operations Centers Lowering Costs Operating Cost Reductions 80% $1B Production Under Management1 UK Australia • Reduce lifting costs globally 60% Alaska • Continue focus on operations excellence OPERATING Eagle Ford COST REDUCTION 40% Ind
Slide 63: Capturing Benefit from Rapid Cost Deflation
Capturing Benefit from Rapid Cost Deflation 9 Land Rigs LAG TIME Highly SHRINKING Stimulation Sensitive Shallow Well Services Water Rigs Midwater Floaters Tubulars Deepwater Rigs 6 Helicopters Sensitivity of Steel Activity Levels Fabricated Moderate Oil & Gas Field to Oil/Gas Price Equipment Equipme
Slide 64: Adding It Up: On Track to Achieve Significant Savings in 2015+
Adding It Up: On Track to Achieve Significant Savings in 2015+ Deflation Materializing In-line with Expectations $715MM Savings Identified To Date1 • Line of sight to $715MM savings in 2015 In Progress Operating Other • ~$500MM capital savings identified to date 23% Expense 22% 27% • ~$200MM operati
Slide 65: Conventional Resources: Substantial Inventory for Growth
Conventional Resources: Substantial Inventory for Growth North Sea Aasta Conventional Resources Hansteen 24 BBOE 8.7 BBOE $60-$75/BOE $45-$60/BOE Alaska North Slope Clair Bohai Bay Proved Fiord West NEWS Bear CD5 China Conventional Tooth Jade Prudhoe West End Eldfisk, Tor, Unit GMT1 DS-2S Developmen
Slide 66: Unconventional Resources: Unlocking Upside with Technology
Unconventional Resources: Unlocking Upside with Technology Common Industry Interpretations • Stimulated rock volume (SRV) drives production and recovery • Logged and cored fracture-stimulated reservoir • Results challenge common industry RECOVERY Map View assumptions and interpretations Low High Cum
Slide 67: Oil Sands: Reducing Cost of Supply in Massive Captured Resource
Oil Sands: Reducing Cost of Supply in Massive Captured Resource $12/BOE COST OF SUPPLY REDUCTION1 ALREADY PROVEN Targeting $25/BOE Reduction in Cost of Supply1 Oil Sands Resources 24 BBOE 5.2 BBOE $60-$75/BOE $12/BOE Oil Sands $13/BOE Proved Megatrend Cost of Supply Cost of supply reflects Brent pri
Slide 68: Oil Sands: Technology and Optimization Reducing Cost of Supply
Oil Sands: Technology and Optimization Reducing Cost of Supply Proven Technology and Optimizations In Development Technology and Optimizations Central Central Processing Processing Wells Wells $12 Facility ~$13 Facility /BOE Captured /BOE Potential Reduction Reduction Pads Pads Accelerating Recovery
Slide 69: LNG: Evaluating Monetization Opportunities
LNG: Evaluating Monetization Opportunities • Attractive options to backfill or expand LNG Resources Darwin LNG 24 BBOE 3.4 BBOE LNG $60-$75/BOE • Pre-FEED studies underway to commercialize >1 BBOE net of North Slope gas $45-$60/BOE • Significant APLNG unbooked resource Proved • Proprietary Optimized
Slide 70: Global Deepwater: Developing Low Cost of Supply Discoveries
Global Deepwater: Developing Low Cost of Supply Discoveries 2015 Drilling Deepwater Resources Previous Drilling 24 BBOE 0.9 BBOE ConocoPhillips Lease $45-$60/BOE Gila ConocoPhillips Prospect or Discovery Gibson Tiber Shenandoah North Keathley Canyon Proved Walker Ridge Megatrend Cost of Supply Cost
Slide 71: Annualized Net Income Sensitivities
Annualized Net Income Sensitivities • Crude • Brent/ANS: $85-95MM for $1/BBL change • WTI: $40-45MM for $1/BBL change • WCS¹: $30-40MM for $1/BBL change • North American NGL • Representative blend: $5-10MM for $1/BBL change • Natural Gas • Henry Hub: $90-100MM for $0.25/MCF change • International ga
Slide 72: 2015 Outlook Guidance
2015 Outlook Guidance • 2015 DD&A of ~$9.0B • Reflects reserve booking schedule in unconventionals • Higher DD&A from major project startups • Operating Costs of ~$9.2B • Production and SG&A expense of ~$8.4B • Exploration G&A and G&G of ~$0.8B • Exploration Dry Hole and Impairment Expense of ~$0.8B
Slide 73: Abbreviations and Glossary
Abbreviations and Glossary • ANS: Alaska North Slope • MM: million • B: billion • MBOED: thousands of barrels of oil equivalent per day • BBL: barrel • MMBOE: millions of barrels of oil equivalent • BBOE: billions of barrels of oil equivalent • MMBOED: millions of barrels of oil equivalent per day •
Slide 74: Investor Information
Investor Information Stock Ticker Investor Relations Contacts: NYSE: COP Telephone: +1 281.293.5000 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