ConocoPhillips · NYSE:COP

ConocoPhillips — Q2 2011 Earnings Presentation

25 slides from ConocoPhillips's earnings presentation, Jul 27, 2011

  1. Slide 1: 2nd Quarter 2011 Conference Call

    2 Quarter 2011 nd Conference Call July 27, 2011

  2. 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

  3. Slide 3: Second-Quarter Overview

    Second‐Quarter Overview Adjusted Earnings $3.4 B $2.41 EPS / $4.44 CFPS Cash from 1.64 MMBOED production Operations $6.3 B 91% refining utilization 3% of shares repurchased Return on Capital Employed 15% 2

  4. Slide 4: ConocoPhillips Economic Contribution

    ConocoPhillips Economic Contribution 2011 Year‐to‐Date  30,000 jobs at  Local, state, and federal ConocoPhillips governments  Additional jobs with  Income, production, our suppliers and and severance taxes Operating Taxes paid to contractors Expenses Governments $6.5 B $7.7 B Capital Program Sha

  5. Slide 5: Company Adjusted Earnings

    Company Adjusted Earnings 2Q11 vs. 2Q10 $MM 20 430 290 1,072 3,403 2,451 2Q10 Adjusted E&P R&M LUKOIL Other 2Q11 Adjusted Earnings Earnings 4

  6. Slide 6: E&P Production

    E&P Production 2Q11 vs. 2Q10 MBOED 46 16 48 45 Asset Dispositions 28 1,733 1,623 1,640 2Q10 Liquid & Int. N.A. Gas Libya Adjusted for N.A. Gas Liquids & Int. 2Q11 Gas Asset Gas Dispositions and Libya 5

  7. Slide 7: E&P Adjusted Earnings

    E&P Adjusted Earnings 2Q11 vs. 2Q10 $MM 29 103 1,146 2,551 1,479 2Q10 Adjusted Prices & Other Market Sales Volumes Costs & Other 2Q11 Adjusted Earnings Impacts Earnings Adjusted 2Q11 vs. 2Q11 vs. Earnings 2Q10 2Q11 2Q10 Realized Prices 2Q10 2Q11 2Q10 U.S. 618 872 254 Crude Oil/NGL $/BBL 71.09 103.90

  8. Slide 8: E&P per BOE Metrics

    E&P per BOE Metrics E&P Income per BOE E&P Cash Contribution per BOE $ / BOE $ / BOE 30 30 25 25 20 20 15 15 22.28 22.30 24.07 26.29 29.35 10 10 5 9.38 9.53 11.66 14.34 17.09 5 0 0 2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11 Based on total E&P BOE production. Income adjusted to exclude certain

  9. Slide 9: R&M Adjusted Earnings

    R&M Adjusted Earnings 2Q11 vs. 2Q10 $MM 63 21 18 4 720 740 2Q10 Adjusted Margins & Other Volumes Operating Other 2Q11 Adjusted Earnings Market Impacts Costs Earnings 456 Adjusted 2Q11 vs. Realized 2Q11 vs. Earnings 2Q10 2Q11 2Q10 Margins $/BBL 2Q10 2Q11 2Q10 U.S. 639 666 27 U.S. 10.40 11.70 1.30 Int

  10. Slide 10: R&M per BBL Metrics

    R&M per BBL Metrics R&M Income per BBL R&M Cash Contribution per BBL $ / BBL $ / BBL 4 4 3 3 2 2 1 1 2.60 0.94 1.74 2.58 3.36 1.63 1.41 2.49 3.32 0.70 0 0 2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11 Based on total petroleum product sales. Income adjusted to exclude certain non‐core earnings im

  11. Slide 11: Other Segments Adjusted Earnings

    Other Segments Adjusted Earnings 2Q11 vs. 2Q10 $MM 2Q10 2Q11 199 138 130 61 (203) (367) Chemicals Midstream Corporate 10

  12. Slide 12: Company Cash Flow

    Company Cash Flow 2Q11 $B 0.2 0.9 3.1 5.4 3.1 0.9 0.3 8.4 8.1 2Q11 CFO excl Working Proceeds from Capital Share Dividends Other 2Q11 Beginning Working Capital Dispositions Program Repurchase Ending Cash & Cash & Short- Capital** Short-term term Investments*** Investments* * Includes cash of $6.2 bil

  13. Slide 13: Capital Structure

    Capital Structure 100 40 50 80 40 71 30 29 69 27 33 63 31 60 24 23 30 56 25 25 20 40 20 10 20 10 0 0 0 '08 '09 '10 2Q11 '08 '09 '10 2Q11 '08 '09 '10 2Q11 Equity $B Balance Sheet Debt‐to‐Capital Debt $B Ratio % 12

  14. Slide 14: ROCE/CROCE

    ROCE/CROCE Return on Capital Employed Cash Return on Capital Employed 35% 35% 30% 30% 25% 25% 20% 20% 15% 15% 10% 10% 24% 21% 19% 19% 21% 5% 11% 9% 9% 12% 15% 5% 0% 0% 2Q10 3Q10 4Q10 1Q11 2Q11 2Q10 3Q10 4Q10 1Q11 2Q11 Adjusted to exclude LUKOIL. 13

  15. Slide 15: Outlook

    Outlook  Operations  Exploration and Project Updates  Asset Dispositions  Share Repurchase  Repositioning of ConocoPhillips 14

  16. Slide 16: Transaction Summary

    Transaction Summary  Pursuing tax‐free spin off of Downstream business  Creates leading independent Downstream company  ConocoPhillips becomes major pure‐play E&P company  Progress and key milestones • Transition management team in place • Announcement of CEOs and Board of Directors by year‐end

  17. Slide 17: Appendix

    Appendix ConocoPhillips 16

  18. Slide 18: 2Q11 vs. 1Q11

    2Q11 vs. 1Q11 Total Company Adjusted Earnings ($MM) E&P Adjusted Earnings ($MM) 109 32 27 38 507 94 698 3,403 2,551 2,197 2,634 1Q11 Adjusted Earnings Prices, Margins & Other Volumes Other 2Q11 Adjusted Earnings 1Q11 Adjusted Prices & Other Sales Volumes Operating Costs Other 2Q11 Adjusted Market Im

  19. Slide 19: COP Non-GAAP Reconciliations

    COP Non‐GAAP Reconciliations Millions of dollars, except per share amounts 2011 2010 1Q 2Q 1Q 2Q Consolidated Earnings $ 3,028 3,402 2,098 4,164 Adjustments: Impairments - - - 1,118 Cancelled projects - 54 110 4 Net gain on asset sales (394) (53) - (2,894) Severance accruals - - - 28 Pending claims

  20. Slide 20: COP Non-GAAP Reconciliations

    COP Non‐GAAP Reconciliations Millions of dollars 2011 2010 1Q 2Q 1Q 2Q R&M Earnings (loss) $ 482 766 (4) (279) Adjustments: Impairments - - - 1,118 Cancelled project - - 25 4 Net gain on asset sales (2) (26) - (116) Severance accruals - - - 28 Pending claims and settlements - - - (35) Adjusted earni

  21. Slide 21: COP Non-GAAP Reconciliations

    COP Non‐GAAP Reconciliations 2Q10 3Q10 4Q10 1Q11 2Q11 1 GAAP E&P Net Income - $MM 4,114 1,564 1,688 2,352 2,524 GAAP E&P Net Income1 - $ / BOE 26.09 9.90 10.61 15.35 16.91 non-core earnings impacts - $MM (gains) and losses on asset dispositions (2,679) (32) (440) (155) (27) asset impairments / cance

  22. Slide 22: COP Non-GAAP Reconciliations

    COP Non‐GAAP Reconciliations 2Q10 3Q10 4Q10 1Q11 2Q11 GAAP R&M Net Income1 - $MM (279) 268 207 482 766 GAAP R&M Net Income1 - $ / BBL (1.01) 0.94 0.70 1.75 2.67 non-core earnings impacts - $MM (gains) and losses on asset dispositions (116) - - (2) (26) asset impairments / cancelled projects 1,122 -

  23. Slide 23: COP Non-GAAP Reconciliations: ROCE

    COP Non‐GAAP Reconciliations ROCE 2Q10 3Q10 4Q10 1Q11 2Q11 Numerator ($MM) Net income 4,183 3,069 2,053 3,042 3,419 After-tax interest expense 227 172 177 170 160 GAAP ROCE earnings 4,410 3,241 2,230 3,212 3,579 Non-core earnings impacts (1,713) (818) (112) (394) 1 Adjusted earnings 2,697 2,423 2,11

  24. Slide 24: COP Non-GAAP Reconciliations: CROCE

    COP Non‐GAAP Reconciliations CROCE 2Q10 3Q10 4Q10 1Q11 2Q11 Numerator ($MM) EBIDA1 6,690 5,487 4,446 5,282 5,654 Non-core earnings impacts (1,713) (818) (112) (394) 1 Adjusted EBIDA 4,977 4,669 4,334 4,888 5,655 Adustment to exclude LUKOIL (430) (436) 1 (2) - Adjusted EBIDA excluding LUKOIL 4,547 4,

  25. Slide 25: COP Non-GAAP Reconciliations: E&P and R&M ROCE

    COP Non‐GAAP Reconciliations E&P - ROCE 1Q11 2Q11 Numerator ($MM) Net income 2,352 2,524 After-tax interest expense 21 20 GAAP ROCE earnings 2,373 2,544 Non-core earnings impacts (155) 27 Adjusted earnings 2,218 2,571 Denominator ($MM) GAAP average capital employed 1 58,527 59,988 Annualized ROCE 15

ConocoPhillips — Q2 2011 Earnings Presentation on 6ix