ConocoPhillips · NYSE:COP
ConocoPhillips — Q1 2009 Earnings Presentation
22 slides from ConocoPhillips's earnings presentation, Apr 23, 2009
Slide 1: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call April 23, 2009
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 The following presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities E
Slide 3: First-Quarter Overview
First-Quarter Overview Earnings $0.8 Billion in Earnings $0.8 B 2.36 MMBOED Production Cash From Operations $1.9 B 81% Refining Utilization Debt-to-Cap Lower Operating Costs 34% Page 3
Slide 4: Total Company Earnings
Total Company Earnings 1Q09 vs. 4Q08 $MM 1,669 1,914 125 516 840 310 264 4Q Adjusted Prices, Margins & Volumes Operating Costs Taxes Other 1Q09 Earnings* Other Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 4
Slide 5: Total Company Cash Flow
Total Company Cash Flow 1Q09 $MM 1,924 3,147 Beginning 755 Cash 1,885 696 81 802 Beginning Cash Debt Increase Capital Program Dividends Other Ending Cash and CFO Balance Page 5
Slide 6: Debt Ratio
Debt Ratio 100 40 50 90 84 80 40 29.4 30 27.1 27.5 34 33 34 60 56 56 30 54 21.7 26 20 24 44 17.8 40 15.0 20 19 19 35 12.5 10 20 10 0 0 0 '03 '04 '05 '06 '07 '081Q09 '03 '04 '05 '06 '07 '08 1Q09 '03 '04 '05 '06 '07 '08 1Q09 Equity $B Balance Sheet Debt-to-Capital Debt $B Ratio % Page 6
Slide 7: Exploration & Production
Exploration & Production 1Q09 vs. 4Q08 Lower crude oil and natural gas prices Reduced operating costs Higher production volumes Page 7
Slide 8: Total Company Production
Total Company Production 1Q09 vs. 4Q08 MBOED 439 31 17 9 8 7 2,364 1,867 1,925 4Q08 E&P Indonesia Russia Vietnam Australia Other 1Q09 E&P LUKOIL 1Q09 Page 8
Slide 9: E&P Earnings
E&P Earnings 1Q09 vs. 4Q08 $MM 1,015 73 1,392 153 50 193 700 4Q08 Adjusted Prices & Other Sales Volumes Operating Costs Production Taxes Other 1Q09 Earnings* Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 9
Slide 10: Refining & Marketing
Refining & Marketing 1Q09 vs. 4Q08 Lower worldwide marketing margins Reduced refining market capture Decreased capacity utilization Page 10
Slide 11: R&M Earnings
R&M Earnings 1Q09 vs. 4Q08 $MM 325 753 251 42 14 205 4Q08 Adjusted Prices, Margins & Volumes Operating Costs Other 1Q09 Earnings* Other Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 11
Slide 12: Other Segments
Other Segments 1Q09 vs. 4Q08 LUKOIL Investment ($48MM vs. $0MM*) Midstream ($123MM vs. $69MM) Chemicals ($23MM vs. $-6MM) Emerging Businesses ($0MM vs. $60MM*) Corporate ($-259MM vs. $-354MM*) * Amounts represent Adjusted Earnings. See Appendix for reconciliation of Page 12 Adjusted Earnings to Earn
Slide 13: E&P per BOE Metrics
E&P per BOE Metrics E&P Income per BOE E&P Cash Contribution per BOE $ / BOE $ / BOE 25.00 35.00 30.00 20.00 25.00 15.00 20.00 15.00 30.70 10.00 18.44 22.35 22.96 14.79 13.76 10.00 20.60 12.19 15.07 15.55 5.00 9.97 11.62 7.08 5.00 4.04 0.00 0.00 2003 2004 2005 2006 2007 2008 1Q09 2003 2004 2005 2006
Slide 14: R&M per BBL Metrics
R&M per BBL Metrics R&M Income per BBL R&M Cash Contribution per BBL $ / BBL $ / BBL 5.00 6.00 5.00 4.00 4.00 3.00 3.00 4.50 5.16 2.00 3.85 4.64 3.59 4.28 2.00 3.06 3.16 2.39 2.40 1.00 1.00 1.88 1.80 1.26 0.94 0.00 0.00 2003 2004 2005 2006 2007 2008 1Q09 2003 2004 2005 2006 2007 2008 1Q09 Peer Group
Slide 15: Return on Capital Employed
Return on Capital Employed 30% Peer Group COP 20% 10% 8% 5% 0% 4Q08 1Q09 All companies adjusted to exclude certain non-core earnings impacts. See Table 3 of Appendix for additional information. Page 15
Slide 16: Outlook
Outlook Full-year E&P production slightly higher than 2008 Higher second-quarter U.S. refining capacity utilization Continue cost discipline Execute capital program Page 16
Slide 17: 1st Quarter Earnings Conference Call
1st Quarter Earnings Conference Call April 23, 2009
Slide 18: Appendix
ConocoPhillips Appendix
Slide 19: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations 2003 2004 2005 2006 2007 2008 1Q09 GAAP E&P Net Income - $MM 4,302 5,702 8,430 9,848 4,615 (13,479) 700 GAAP E&P Net Income - $ / BOE 7.33 9.97 14.79 13.78 6.73 (20.59) 4.04 non-core earnings impacts - $MM gains and (losses) on asset dispositions 565 590 asset impairment
Slide 20: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations 2003 2004 2005 2006 2007 2008 1Q09 GAAP E&P CFOA - $MM 7,751 9,109 12,126 16,978 16,228 20,976 2,270 GAAP E&P CFOA - $ / BOE 13.20 15.92 21.27 23.77 23.65 32.04 13.10 excluded GAAP items - $MM non-cash working capital 356 221 31 244 393 389 (339) non-working capital adju
Slide 21: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations 4Q08 1Q09 GAAP ROCE -126% 5% non-core earnings impacts - $MM gains and (losses) on asset dispositions 525 - asset impairments (34,104) - tax legislation / regulatory / other (99) 63 ROCE 8% 5% Page 21 Table 3
Slide 22: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations Reconciliation of Adjusted Earnings to Earnings 4Q08 - $MM E&P R&M Lukoil Midstream Chem. Emerg. Bus. Corp. Consolidated Earnings (loss) ($24,293) $289 ($7,410) $69 ($6) ($25) ($388) ($31,764) Goodwill impairment (25,443) - - - - - - (25,443) Impairments - other (599) (5