ConocoPhillips · NYSE:COP

ConocoPhillips — Investor Day (March 2009)

20 slides from ConocoPhillips's investor day presentation, Mar 10, 2009

  1. Slide 1: Willie Chiang, Senior Vice President, Refining, Marketing & Transportation

    3/10/2009 12:29 PM Willie Chiang Senior Vice President Refining, Marketing & Transportation

  2. Slide 2: Strong Portfolio of High-Quality Assets

    Strong Portfolio of High-Quality Assets  Interest in 12 refineries  2,000 MBD refining capacity  Market through 8,000+ branded wholesale sites  28,000 miles of pipelines, 60+ terminals  Operate five crude tankers  Specialty lubricants and coke  Interest in one refinery  Interest in four refi

  3. Slide 3: R&M Strategy

    R&M Strategy  Operating Excellence • Top safety performance • Environmental stewardship • Outstanding reliability  Cost Management / Margin Enhancement • Improve crude advantage • Continuously reduce operating expenses • Increase clean product yields  Profitable Growth / Portfolio Management • Se

  4. Slide 4: Consistent Refining Reliability

    Consistent Refining Reliability Crude Oil Capacity Availability (%) 96.9  U.S. utilization industry- 94.8 94.6 leading for seven years 92.8 92.8 94.0  Focus on asset integrity and 91.5 90.2 risk reduction  Optimize turnaround cycles and duration  Minimize lost profit opportunities 2005 2006 2007

  5. Slide 5: Lower Crude Costs

    Lower Crude Costs Feedstock Slate* Operating Costs 43% Sweet 55% Feedstock Costs 27% Medium Sour 17% 28% 30% Heavy Sour 2008 Future  Upgrading facilities to handle cost-advantaged crudes  Increasing integration with Canadian oil sands Improving margins through high-conversion refineries *See Appen

  6. Slide 6: Manage Operating Costs

    Manage Operating Costs Operating Expenses $/Bbl  Focus on reliability  Reduce material, service, and supply costs  Improve energy efficiency  Streamline organization 2008 2009 2010 2011 R&M Disposition Impact Maintaining cost structure without impacting safety and reliability

  7. Slide 7: Increase Clean Product Yield

    Increase Clean Product Yield Global Clean Product Yield 100% ~85% 82% 80% 81% Other 80% Gasoline 60% Distillate 40% Operational Flexibility 20% 36% 37% 39% 44% 0% 2004 2006 2008 Future  Modifying operations provides yield flexibility • Optimization through fractionation • Fully utilize and expand p

  8. Slide 8: 2009 Capital Program

    2009 Capital Program 2009 Capital Investments 2009 Capital Allocation* $2.0B Base Strategic Projects International U.S. Investments 29% 71% $1.2B $0.8B Marketing & Other  Base capital focused on safety, reliability 9% and environmental compliance  Strategic investments improve Transportation 16% R

  9. Slide 9: Strategic Investments

    Strategic Investments San Francisco Wood River Wilhelmshaven Yanbu Keystone Melaka Clean Products Advantaged Crude Energy Efficiency Integration Growth

  10. Slide 10: San Francisco Hydrocracker

    San Francisco Hydrocracker Investment Impact – Net Basis MBD Advantaged Crude +7 Clean Products +22 Crude Capacity +7  20 MBD hydrocracker complex  Increases conversion capability  Improves energy efficiency Enhances competitive position

  11. Slide 11: Wood River Coker

    Wood River Coker Joint Venture Investment Impact – Net Basis MBD Advantaged Crude +65 Clean Products +40 Crude Capacity +25  Increases bitumen-based capability by 130 MBD*  Upgrades 40 MBD* of asphalt production  Improves energy efficiency  Ownership: 50% Increases integration with Canadian prod

  12. Slide 12: Wilhelmshaven Refinery Upgrade Project

    Wilhelmshaven Refinery Upgrade Project Investment Impact – Net Basis MBD Advantaged Crude +223 Clean Products +63 Crude Capacity -37  New coker, hydrocracker and hydrogen units  Regionally advantaged feedstock  Clean products yield increases from 55% to 80%  High yield of ultra-low-sulfur diesel

  13. Slide 13: Yanbu Refinery

    Yanbu Refinery Joint Venture Investment Impact – Net Basis MBD Advantaged Crude +150 Clean +133 Yanbu Products Crude Capacity +150  400 MBD complex refinery Source: Google Earth  Processes Arab Heavy crude  Provides significant Commercial and Marine opportunities  Ownership expected: 37.5% COP 

  14. Slide 14: Keystone Pipeline

    Keystone Pipeline Joint Venture  3,800 mile Canadian heavy crude pipeline  1.1 MMBD capacity  Enhances E&P integration  Ownership: 20.01%* Secures advantaged crudes to Midcontinent and Gulf Coast *End of third-quarter 2009.

  15. Slide 15: Strategic Investments: Distillation Capacity

    Strategic Investments Conversion Capability* Hydrocracking Investment Impact – Net Basis Cat Cracking MBD Coking 80% Investment Impact Distillation Capacity Advantaged Industry Average Crude +464 60% % of Crude Clean 40% Products +275 Crude 20% Capacity +164 0% U.S. U.S. U.S. U.S. U.S. NW Asia East

  16. Slide 16: Strengthened Portfolio

    Strengthened Portfolio COP Refineries Crude Keystone JV Refinery in Development Refined Products Keystone Pipeline Pipeline Upstream Production Wilhelmshaven Wilhelmshaven San SanFrancisco Francisco Wood WoodRiver River Yanbu Yanbu Melaka Melaka Enhances commercial opportunities

  17. Slide 17: Integrated Refining, Marketing, and Transportation

    Integrated Refining, Marketing, and Transportation Market Share >20% 10-20% <10%  Reducing capital employed while maintaining long-term supply agreements  Growing branded wholesale in integrated refining regions Focused on refinery pull-through and low-cost structure

  18. Slide 18: Renewable Fuels

    Renewable Fuels  Key Issues • Increasing renewable mandates • Consistent policy to encourage advanced technology development  ConocoPhillips Response • Expand supply of renewable fuels through industry and academic technology partnerships • Optimize renewable fuels distribution and blending • Acti

  19. Slide 19: Portfolio Optimization

    Portfolio Optimization Net Property, Plant and Equipment* 100% Marketing 80% 60% Transportation 40% 86% 92% and Other 74% 20% Refining 0% 2002 2008 2013  2003–2008 asset sales proceeds ~$4.4B; primarily Marketing  Investing majority of capital in refining business Portfolio focused on refining bus

  20. Slide 20: Keys to Success

    Keys to Success  Operating Excellence • Operate safely, reliably, and environmentally compliant • Scrutinize operating costs  Cost Management / Margin Enhancement • Aggressively optimize refineries • Increase conversion capability and product flexibility  Profitable Growth / Portfolio Management

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