ConocoPhillips · NYSE:COP
ConocoPhillips — Q4 2018 Earnings Presentation
17 slides from ConocoPhillips's earnings presentation, Jan 31, 2019
Slide 1: 4Q18 Earnings Conference Call
ConocoPhillips 4Q18 Earnings Conference Call January 31, 2019
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: Ryan Lance, Chairman & CEO
ConocoPhillips RYAN LANCE Chairman & CEO
Slide 4: 2018 Highlights — Delivering on Our New Order Value Proposition
2018 Highlights — Delivering on Our New Order Value Proposition Strategy Financials Operations ConocoPhillips Portfolio Delivered on priorities » Achieved 12.6% ROCE » Increased dividend 15% » Achieved $15B debt target 18 monthsahead of plan >» Executed $3B of buybacks; increased total authorization
Slide 5: 2019 Operating Plan on a Page
2019 Operating Plan on a Page ConocéPhillips >» Maintain discipline & continued focus on free cash flow generation > $6.1B capital expenditures budget > Deliver per-share cash flow expansion from low-CoS investments >» FY19 production 1,300 -1,350 MBOED » Achieve total shareholder payout >30% of CFO
Slide 6: Question & Answer Session
ConocoPhillips Question & Answer Session
Slide 7: Appendix
Appendix
Slide 8: 4Q18 Earnings Summary
4Q18 Earnings Summary Adjusted Earnings ($ Millions) Highlights * Sequential adjusted earnings decreased due to volumes Segment Lower 48 Canada Alaska 4Q17 3Q18 4Q18 Europe & North Africa Asia Pacific & Middle East Other International Adjusted EPS ($) $0.45 $1.36 $1.13 Average Realized Corporate & O
Slide 9: 4Q18 Performance — Company Cash Flow
4Q18 Performance — Company Cash Flow ConocoPhillips snp 4Q18 Marker Prices S Billions * Brent $67.76/BBL * WTI $59.09/BBL * Henry Hub $3.65/MMBTU Po ue $1.6B FREE CASH FLOW NZ GENERATEDIN THE FOURTH QUARTER 4Q18 Beginning Cash & CFO Total Working Disposition Capital Dividends Repurchase of 4Q18 Shor
Slide 10: 2018 Performance — Company Cash Flow
2018 Performance — Company Cash Flow S$ Billions ConocoPhillips 2018 Marker Prices * Brent $71.04/BBL * WTI $64.92/BBL Includes * Henry Hub $3.09/MMBTU Includes ~$0.68 from ~$0.4B from 1.1 acquisitions PDVSA ICC settlement 0. 6 — a ~ 9 35% cro? 12.3 V RETURN TO SHAREHOLDERS S5.5B FREE CASH FLOW NZ G
Slide 11: 2018 Preliminary Reserve Replacement
2018 Preliminary Reserve Replacement ConocoPhillips 147% TOTAL RRR 109% ORGANIC RRR 52 | sz — Alaska +289 Lower48 (69) UK Clair (38) YE 2017 2018 Extensions & Revisions & Acquisitions & YE 2018 Reserves Production’ Discoveries Improved Recovery Dispositions Reserves 11
Slide 12: 2018 Strong Operational Performance
2018 Strong Operational Performance ConocoPhillips Value Drivers 2018 Results >5% underlying production growth from high-margin areas Delivered 18% underlying growth; benefited by acceleration of debt repaymentand higher share buybacks Grew Big 3 production 37% versus 2017; 4Q18 production of 335 MB
Slide 13: Recent Operational Highlights — Lower 48, Alaska and Canada
Recent Operational Highlights — Lower 48, Alaska and Canada ConocoPhillips Lower 48 > Big 3 production of 335 MBOED?in 4Q18 >» Completed sale of Barnett for $230MM2, bringing full year disposition proceeds to ~$700MM >» Spudded the first Louisiana Austin Chalk exploration well » Eagle Ford dropped o
Slide 14: Recent Operational Highlights — Europe and Asia Pacific & Middle East
Recent Operational Highlights — Europe and Asia Pacific & Middle East ConocoPhillips Europe >» Completed sale of partial interest in Clair Field >» Achieved first production from Aasta Hansteen and Clair Ridge >» U.K. marketing effort ongoing Asia Pacific & Middle East » Resumed KBB gas exports; pro
Slide 15: 2019 Guidance
2019 Guidance Full-Year 2019 Adjusted Corporate Segment Net Loss Full-Year 2019 Exploration Dry Hole and Leasehold Impairment Expense ConocoPhillips 1,300 — 1,350 MBOED 1,290 — 1,330 MBOED $6.1B $6.1B $6.3B $1.0B $0.2B
Slide 16: 2019 Annualized Net Income Sensitivities
2019 Annualized Net Income Sensitivities ConocoPhillips * Crude: * Brent/ANS: ~$155-175MM for $1/BBL change * WTI: ~$30-40MM for $1/BBL change * WCS: ~$10-15MM for $1/BBL change * Does not incorporate contingent payment of CAS6MM quarterly for every CAS1 WCS price above CAS$52/BBL $45-S75/BBL + Nort
Slide 17: 2019 Annualized Cash Flow Sensitivities
2019 Annualized Cash Flow Sensitivities Consolidated Operations ($45-$75/BBL WTI) * Crude * Brent/ANS: ~$155-165MM for $1/BBL change * WTI: ~$40-50MM for $1/BBL change * WCS: ~$15-20MM for $1/BBL change * Lower 48 NGL * Representative Blend: ~$15-20MM for $1/BBL change * Natural Gas * Henry Hub: ~$4