ConocoPhillips · NYSE:COP
ConocoPhillips — Q4 2013 Earnings Presentation
29 slides from ConocoPhillips's earnings presentation, Jan 30, 2014
Slide 1: Fourth-Quarter 2013 Conference Call
Fourth-Quarter 2013 CONFERENCE CALL Ryan Lance, Chairman & CEO Jeff Sheets, EVP, Finance & CFO Matt Fox, EVP, Exploration & Production Jan. 30, 2014
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: 2013 Highlights
2013 Highlights Operational Financial Strategic Met production $7.1 B adjusted Closed 2013 target for the year; earnings, $5.70 dispositions for achieved 179% adjusted EPS proceeds of $10.2 B organic RRR1 Growth from major $15.8 B CFO; $6.5 B Increased dividend project startups ending ca
Slide 4: 4Q13 Performance – Adjusted Earnings
4Q13 Performance – Adjusted Earnings Highlights Weaker liquids pricing environment in the quarter; stronger North American gas realizations Adjusted Production volumes impacted by Earnings 1,755 1,821 1,738 Libya curtailment and weather ($MM) 4Q13 benefited from changes in tax estimates and FX
Slide 5: 2013 Annual Performance – Adjusted Earnings
2013 Annual Performance – Adjusted Earnings Highlights FY13 adjusted earnings increased 5% vs. FY12 Adjusted 7,061 Margins growing with portfolio shift Earnings 6,734 ($MM) Met production expectations for 2013; set for growth in 2014 2013 Adjusted Earnings ($MM) 2012 2013 Alaska $2,177 Lower 4
Slide 6: 4Q13 Production From Continuing Operations
4Q13 Production From Continuing Operations MBOED 10 43 189 36 1,566 1,513 193 1,473 4Q12 Dispositions Libya 4Q12 Downtime Decline Growth & Other 4Q13 Normalized for Dispositions & Libya 6
Slide 7: 2013 Growth From Continuing Operations
2013 Growth From Continuing Operations MBOED 207 26 13 16 1,527 177 1,488 1,502 2012 Dispositions Libya 2012 Downtime Decline Growth & Other 2013 Normalized for Dispositions & Libya 7
Slide 8: Growth In Higher-Margin Production
Growth In Higher-Margin Production 2013 vs. 2012 Production 1 (MBOED) Lower 48 Liquids 49 Growth comes from areas with higher margins than the company average Canada Liquids 21 APME Liquids 11 Significant growth in North American liquids APME Natural Gas 3 Alaska Liquids -15 Alaska and Europe
Slide 9: 2013 Performance – Cash Margin Improvement
2013 Performance – Cash Margin Improvement Cash Price 28.55 27.99 Margin 25.64 Normalized 25.64 ($/BOE) Cash Margin ($/BOE) 1 2012 2013 2012 2013 Average Price Normalized Based On 2012 Realized Price $67.68 $67.62 ($/BOE) WTI $94 / Brent $112 / HH $2.79 Operating segments only. Numbers have been adj
Slide 10: 2013 Performance – Company Cash Flow
2013 Performance – Company Cash Flow $B Year-end 2013 • Debt of $21.7 B 10.2 • Debt-to-capital ratio of 29% 15.8 16.3 3.3 2.8 1.5 6.5 4.4 2013 Beginning CFO² Proceeds from Capital Program Dividends FCCL Debt 4Q13 Ending Cash & Dispositions Prepayment & Other³ Cash & Short- Restricted Cash¹ Term 4 In
Slide 11: 2013 Reserve Replacement
2013 Reserve Replacement Reserve Additions (MMBOE)1 Year-end reserves of 8.9 BBOE Organic reserve replacement ratio of 179% Other 150 Total reserve replacement ratio of 147%; asset sales reduced reserves by 188 MMBOE APME 190 Lower 48 470 Organic reserve additions of approximately 1.1 BBOE,
Slide 12: Alaska
Alaska Nabors 7ES at Kuparuk Full-Year 2013 Highlights Successfully completed major turnarounds at Kuparuk and Prudhoe New rig added at Kuparuk Initiated additional development activity after passage of MAPA 4Q 2013 Highlights What to Watch in 2014 Applied for new LNG export license for Ma
Slide 13: Lower 48 and Latin America
Lower 48 and Latin America Bakken Full-Year 2013 Highlights Production up 7% year-over-year; 24% increase in crude oil Major growth in unconventional plays Continued to drill and test in Permian and Niobrara with encouraging results Deepwater GOM success at Coronado, Gila and Shenandoah 4Q 2
Slide 14: Canada
Canada Surmont Full-Year 2013 Highlights Production up 1% year-over-year; 13% increase in liquids Strong performance at Christina Lake Construction over 60% complete at Surmont Phase 2 Progress on drilling programs 4Q 2013 Highlights What to Watch in 2014 Production at Christina Lake Phase
Slide 15: Europe
Europe Jasmine Full-Year 2013 Highlights Completed major turnarounds at Greater Ekofisk, J-Area and Clair Continued progress on additional major projects Awarded 4 licenses in the Barents Sea 4Q 2013 Highlights What to Watch in 2014 Winter weather impacted North Sea Ekofisk South, Jasmine
Slide 16: Asia Pacific and Middle East
Asia Pacific and Middle East APLNG at Curtis Island Full-Year 2013 Highlights Progress SNP and Gumusut toward startup Significant progress at APLNG reaching ~60% project completion Proteus-1 gas discovery in Browse Basin 4Q 2013 Highlights What to Watch in 2014 Planned turnaround completed a
Slide 17: 2014: Set for Growth
2014: Set for Growth Operational Financial Strategic Continued ramp up Ongoing margin Focus on executing of unconventional improvement our current plan drilling programs Growth from major Focus on improving Positioning for projects financial returns long-term success Exploration Comm
Slide 18: Q&A
ConocoPhillips Q&A
Slide 19: Appendix
ConocoPhillips APPENDIX
Slide 20: Alaska
Alaska Production (MBOED) Realized Prices Liquids Gas Sales 4Q12 1Q13 2Q13 3Q13 4Q13 222 218 197 205 Crude 178 $107 $111 $106 $111 $104 ($/Bbl) 4Q12 1Q13 2Q13 3Q13 4Q13 Adjusted Earnings ($MM) Highlights Production benefit from completion of 595 585 the summer turnaround and 555 543 494 maintenanc
Slide 21: Lower 48 and Latin America
Lower 48 and Latin America Production (MBOED) Realized Prices Liquids Gas 475 475 491 499 497 4Q12 1Q13 2Q13 3Q13 4Q13 Crude $89 $94 $94 $100 $88 ($/Bbl) NGL $31 $30 $29 $33 $34 ($/Bbl) Nat Gas $3.24 $3.19 $3.85 $3.39 $3.55 ($/Mcf) 4Q12 1Q13 2Q13 3Q13 4Q13 Adjusted Earnings ($MM) Highlights 17% in
Slide 22: Canada
Canada Production (MBOED) Realized Prices Liquids Gas 281 283 4Q12 1Q13 2Q13 3Q13 4Q13 271 274 276 Crude $78 $73 $81 $92 $73 ($/Bbl) Bitumen $48 $39 $56 $76 $44 ($/Bbl) Nat Gas $2.92 $2.89 $3.28 $2.42 $3.09 ($/Mcf) 4Q12 1Q13 2Q13 3Q13 4Q13 Adjusted Earnings ($MM) Highlights 181 FY13 liquids produc
Slide 23: Europe
Europe Production (MBOED) Realized Prices Liquids Gas Sales 4Q12 1Q13 2Q13 3Q13 4Q13 216 207 197 Crude 173 176 $112 $114 $103 $112 $111 ($/Bbl) Nat Gas $10.56 $10.81 $10.26 $10.48 $11.11 ($/Mcf) 4Q12 1Q13 2Q13 3Q13 4Q13 Adjusted Earnings ($MM) Highlights Sequential growth reflects resumption of pr
Slide 24: Asia Pacific and Middle East
Asia Pacific and Middle East Production (MBOED) Realized Prices1 Liquids Gas Sales 322 318 324 317 4Q12 1Q13 2Q13 3Q13 4Q13 292 Crude $103 $109 $98 $105 $106 ($/Bbl) Nat Gas $10.15 $11.20 $10.62 $10.81 $9.83 ($/Mcf) 4Q12 1Q13 2Q13 3Q13 4Q13 Adjusted Earnings ($MM) Highlights 918 871 857 856 4Q13 t
Slide 25: Corporate and Other Guidance
Corporate and Other Guidance Adjusted Earnings ($MM) Highlights 2013 Corporate & Other expense of $781MM (177) (173) (164) Lower licensing revenue in 4Q13 (203) (241) Lower capitalized interest in 4Q13 Expect 2014 to be at 4Q13 run rate 4Q12 1Q13 2Q13 3Q13 4Q13 25
Slide 26: 4Q13 Performance – Company Cash Flow
4Q13 Performance – Company Cash Flow $B Year-end 2013 7.0 • Debt of $21.7 B • Debt-to-capital ratio of 29% 4.5 0.9 3.9 2.8 0.1 6.5 3.9 4Q13 CFO¹ Proceeds from Capital Dividends FCCL Debt & Other² 4Q13 Ending Beginning Dispositions Program Prepayment Cash³ Cash 1 The impact of working capital was $0.
Slide 27: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings ($ Millions) 2012 2013 4Q FY 3Q 4Q FY Consolidated Earnings 1,426 8,428 2,480 2,487 9,156 Adjustments: Impairments 351 901 - 269 269 Net (gain)/loss on asset sales - (1,532) (749) - (1,075) Bohai Bay incidents - 89 - - - Tax lo
Slide 28: Non-GAAP Reconciliations
Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings ($ Millions) ($ Millions) 2012 2013 2012 2013 4Q 3Q 4Q 4Q 3Q 4Q Alaska Asia Pacific and Middle East Earnings 570 494 555 Earnings 749 741 856 Adjustments: Adjustments: Pending cla
Slide 29: Non-GAAP Reconciliations
Non-GAAP Reconciliations Cash Margin per BOE Price Normalized Cash Margin per BOE 2 Operating Segments Operating Segments 2012 2013 2012 2013 FY FY FY FY $ Millions, except per BOE amounts Cash Margin 14,328 15,650 Net Income Attributable to ConocoPhillips 8,428 9,156 Price adjustment (using publish