Conocophillips · NYSE:COP
Conocophillips — NAPE Convention 2012
21 slides from Conocophillips's conference presentation, Aug 22, 2012
Slide 1: A New Class of Investment for a New E&P Game
A New Class of Investment for a New E&P Game Matt Fox – EVP, Exploration & Production NAPE Convention – Aug. 22, 2012
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
Slide 3: The New E&P Game
The New E&P Game Abundant unconventional reservoir plays High price volatility and uncertainty Strong, ambitious National Oil Companies Intensified competition for portfolio, people and partners Source: U.S. Department of Energy, EIA 3
Slide 4: What it Takes to Win in New E&P Game
What it Takes to Win in New E&P Game Being a company of choice Being a Company of Choice A high‐quality, diverse portfolio Distinctive Value Proposition for High‐Quality, Diverse Portfolio Strong technical Shareholders capabilities Financial Strong Technical Financial discipline and Discipline and F
Slide 5: ConocoPhillips Now Repositioned to Win
ConocoPhillips Now Repositioned to Win Divested non‐core assets Spun‐off Phillips 66 Built unconventional and deepwater portfolios New management and culture 5
Slide 6: The New ConocoPhillips
The New ConocoPhillips Production – 1.54 MMBOED (2Q12) Largest North American‐based independent Liquids Lower‐risk, diversified international positions LNG + International Gas North American Gas “Majors” asset base with compelling growth Existing assets drive 5+ years of low‐risk growth Proved Res
Slide 7: Low-Risk International Position
Low‐Risk International Position Majority of production in long‐lived assets in OECD countries 4 – 6% production CAGR expected from high‐return major projects Production – MBOED YE 2011 Proved Reserves – BBOE International Global International excludes Canada; * 2012 full‐year impact of disposition c
Slide 8: Impactful North American Position
Impactful North American Position Largest independent producer in North America 3 – 5% production CAGR projected from high‐return program 2011 Production – MBOED 2012 – 2016 Production – MBOED U.S. & Canada U.S. & Canada Source: Evaluate Energy 8
Slide 9: Massive Land Position in North America
Massive Land Position in North America COP Acreage* Total Lower 48: 15.3 MM Net Acres Williston Western Canada: 5.9 MM Net Acres Bakken Rockies San Juan Panhandle Barnett Permian Eagle Ford Asset Areas Fee Minerals 21 MM net acres for organic growth in prolific, liquids‐rich plays As of August 2012
Slide 10: Eagle Ford – Best Position in Best Play
Eagle Ford – Best Position in Best Play 228 M net acres in liquids‐rich play (77% liquids) with 1.8 BBOE resources 2012 program: over 180 wells with 16 rigs; $2.5 B investment; 50%+ return 1 Wells lead industry performance with $37/BBL breakeven WTI2 Production – MBOED COP Acreage 1 Project returns
Slide 11: Permian – Emerging Liquids Growth
Permian – Emerging Liquids Growth 1.1 MM net acres in liquids‐rich play (60% liquids) with 1.1 BBOE resources 2012 program: over 300 wells; $0.6 B investment; 40%+ return1 Exposure in every play; over 7,000 gross identified well locations Promising early results in Avalon and Wolfcamp plays Producti
Slide 12: Bakken – Legacy Oil in Heart of Trend
Bakken – Legacy Oil in Heart of Trend 207 M net lease / 419 M net mineral acres in oil play with 0.4 BBOE resources1 2012 program: over 120 wells; $0.6 B investment; 25%+ return 2 Managed pace based on access to service and infrastructure Drilling inventory of 1,300 gross proved and probable locatio
Slide 13: 2012 – 2016 Production Growth
2012 – 2016 Production Growth Disciplined allocation of ~$15 B annual capex generates 3 – 5% CAGR with high margins and low risk * 2012 full‐year impact of disposition candidates 13
Slide 14: Production Growth – MBOED
Near‐term Growth and Margin Improvement Five high‐margin projects will account for 550+ MBOED by 2016 Lower‐risk geographies and geologies; diversified plays North Sea Production and Margin Growth Canada SAGD conventional 2012 to 2016 ~90 MBOED Production Growth – MBOED ~80 MBOED L48 Liquids Fields
Slide 15: Future Growth from Unconventional Exploration
Future Growth from Unconventional Exploration North America: Accessing and testing many high‐ quality, high‐value, liquids‐rich plays Canol Added 600,000 net acres in North America since Horn River December 2010 Montney Material working interest in liquids‐rich opportunities Duvernay Numerous
Slide 16: Future Growth from Conventional Deepwater Exploration
Future Growth from Conventional Deepwater Exploration North America: 6th largest deepwater Gulf of COP leases Mexico lease owner Lower Tertiary Play Shenandoah 1.5 MM‐acre position Currently participating in 3 wells: Coronado and Bioko wildcats, and Shenandoah appraisal Expect to participate i
Slide 17: Strong Technology Capability
Strong Technology Capability Seismic Advanced technologies focused on value creation Unconventionals Deepwater LNG Oil Sands Unconventionals Arctic Research and Development spans oil and gas life cycle Advanced seismic capabilities Field optimization, well construction & LNG Technology
Slide 18: Disciplined Investment Approach
Disciplined Investment Approach 75‐80% of CFO allocated to capex for growth and Current Dividend Yield returns 5.5% 50% to base and exploitation; 50% to major projects and exploration 4.9% Sustainable production growth 4.6% COP 100%+ organic reserve replacement Build inventory of future inve
Slide 19: Our Value Proposition
Our Value Proposition Sector‐leading distributions 3 – 5% annual production growth 3 – 5% annual margins growth Ongoing priority to improve returns Relentless focus on safety and execution 19
Slide 20: A New Class of Investment for a New E&P Game
A New Class of Investment for a New E&P Game A high quality, diverse portfolio Strong technical capabilities and compelling culture Capital discipline and financial strength A clear and distinctive value proposition for shareholders 20
Slide 21: Questions and Answers
ConocoPhillips. Questions and Answers