ConocoPhillips · NYSE:COP
ConocoPhillips — Q1 2018 Earnings Presentation
16 slides from ConocoPhillips's earnings presentation, Apr 26, 2018
Slide 1: 1Q18 Earnings Conference Call
1Q18 Earnings Conference Call April 26, 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: Don Wallette, EVP, Finance, Commercial & CFO
D O N WA L L E T T E EVP, Finance, Commercial & CFO
Slide 4: 1Q18 Summary: It's All About Strong Execution
1Q18 Summary: It’s All About Strong Execution Strategic Financial Operational Delivering on disciplined priorities Delivering strong free cash flow Delivering our operational plan ► Increased quarterly dividend by ► $1.1B adjusted earnings; $0.96 ► First quarter production of 7.5% adjusted EPS 1,224
Slide 5: Strong Momentum on Improving Profitability
Strong Momentum on Improving Profitability Highlights • Sequential adjusted earnings benefited from Adjusted ~$600MM 1,136 improved realized prices, lower depreciation IMPROVEMENT expense and reduced operating costs Earnings SINCE 4Q17 ($MM) • Year-over-year adjusted earnings benefited from 540 a 40
Slide 6: Leverage to Upside Drives Earnings and Cash Flow Expansion
Leverage to Upside Drives Earnings and Cash Flow Expansion Higher-Margin Product Mix Improved Product Mix Capturing Price Upside Brent $70 $66.76/BBL N.A. Gas 8% Brent N.A. Gas 17% Bitumen 5% $60 $53.78/BBL NGL 8% Bitumen 14% $50 $8.01 NGL 8% Intl Gas 29% $40 $6.30 Intl Gas 23% IMPROVED $30 Realized
Slide 7: Focus on Free Cash Flow Generation; Differential Return of Capital
Focus on Free Cash Flow Generation; Differential Return of Capital 1Q18 $B 1Q18 Marker Prices • Brent $66.76/BBL 0.2 • WTI $62.88/BBL Includes $0.1B • Henry Hub $3.01/MMBTU 0.1 Montney 2.5 2.9 acreage acquisition Includes $0.4B 1.5 Alaska bolt-on transaction 0.3 0.5 0.3 8.4 $1.0B FREE CASH FLOW 34%
Slide 8: Al Hirshberg, EVP, Production, Drilling & Projects
AL HIRSHBERG EVP, Production, Drilling & Projects
Slide 9: 1Q18 Operating Highlights: Plan on Track
1Q18 Operating Highlights: Plan on Track • Production of 1,224 MBOED in 1Q18 vs. 1,182 MBOED underlying production1 in 1Q17; grew 4% overall and 26% on a production per debt-adjusted share2 basis • Production from Lower 48 Big 3 unconventional plays of 250 MBOED in 1Q18 vs. 209 MBOED in 1Q17; 20% ye
Slide 10: 2018 Operations Outlook: Maintain Discipline, Deliver Our Plan
2018 Operations Outlook: Maintain Discipline, Deliver Our Plan • Focused on delivering $5.5B capital plan; excludes announced Production (MBOED) acquisitions of Alaska bolt-on and Montney acreage 1,356 ~14% PRODUCTION PER DEBT- • Expect 2018 full-year underlying production1 per debt-adjusted share A
Slide 11: Question & Answer Session
ConocoPhillips Question & Answer Session
Slide 12: Appendix
Appendix
Slide 13: 2018 Production Guidance (MBOED)
2018 Production Guidance (MBOED) 1,425 ~28% 1,356 ~14% PRODUCTION PRODUCTION PER DEBT- PER DEBT- ADJUSTED ADJUSTED SHARE 181 1,200 - 1,240 SHARE 272 GROWTH2 Dispositions1 GROWTH2 1,170 - 1,210 Dispositions1 ~8% ~7% PRODUCTION PRODUCTION PER-SHARE PER-SHARE GROWTH3 GROWTH3 1,153 ~3% 1,175 ~5% UNDERLY
Slide 14: Full-Year 2018 Guidance
Full-Year 2018 Guidance • Full-year 2018 production: 1,200 – 1,240 MBOED • 2Q18 production: 1,170 – 1,210 MBOED • Adjusted operating costs: $5.7B • Capital expenditures: $5.5B; excludes announced acquisitions of $0.4B Alaska bolt-on transaction and $0.1B Montney acreage • DD&A: $5.8B • Adjusted corp
Slide 15: 2018 Annualized Net Income Sensitivities
2018 Annualized Net Income Sensitivities Crude • Brent/ANS: $105-125MM for $1/BBL change • WTI: $45-55MM for $1/BBL change • WCS¹: $10-15MM for $1/BBL change • Does not incorporate contingent payment of CA$6MM quarterly for every CA$1 WCS price above CA$52/BBL $45-$65/BBL North American NGL WTI • Re
Slide 16: 2018 Annualized Cash Flow Sensitivities
2018 Annualized Cash Flow Sensitivities Consolidated Operations Equity Affiliates1 ($45-$65/BBL WTI) ($50-$65/BBL WTI) Crude: • Expect distributions from all equity affiliates at >$50/BBL • Brent/ANS: ~$100-110MM for $1/BBL change • $1/BBL movement in Brent: ~$30-40MM • WTI: ~$55-65MM for $1/BBL cha