Conocophillips · NYSE:COP
Conocophillips — Conference Presentation (November 2015)
15 slides from Conocophillips's conference presentation, Nov 18, 2015
Slide 1: ConocoPhillips Alaska: Positioning for the Future
ConocoPhillips Alaska: Positioning for the Future Joe Marushack, President ‐ Alaska November 18, 2015
Slide 2: Cautionary Statement & Safe Harbor
Cautionary Statement & Safe Harbor 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 ma
Slide 3: Safety
Safety Total Recordable Incident Rate Achieving an Incident‐Free Culture is a core value for ConocoPhillips 0.67 0.59 0.53 0.33 0.32 0.28 The collective efforts of our 0.22 contractors have helped us achieve a significant change in safety performance 2009 2010 2011 2012 2013 2014 2015 YTD Note: 2015
Slide 4: ConocoPhillips Leading Through Industry Downturn
ConocoPhillips Leading Through Industry Downturn Brent Price $/BBL $120 • Scenario planning used to assess low price/high output possibility $100 2014 BoD Strategy • Tidal Wave considered – more extreme than 2015 Capex ‐ $ 16.5B anticipated $80 • Action – COP reduced “long” exposure; focus on conven
Slide 5: Actions Taken
Actions Taken • Established Margin Improvement Team to improve how we operate • Partnering with suppliers and other stakeholders to find additional efficiencies • Workforce rationalization COP is positioning to deal with price volatility 5
Slide 6: ConocoPhillips' Capital Program Spend
ConocoPhillips’ Capital Program Spend ConocoPhillips Capital Spend ($B) $17.1 $15.5 33% Decrease $14.2 $11.5 Recently lowered 2015 Alaska Capital Spend ($B) Capex projection to $10.2B 2012 2013 2014 2015 Budget $1.6 $1.4 $1.1 $0.8 2012 2013 2014 2015 Budget Alaska Development projects ~$3 billion gr
Slide 7: More Drilling Rigs Since SB21 Passed
More Drilling Rigs Since SB21 Passed 7
Slide 8: Greater Kuparuk Area Projects: Drill Site 2S and 1H NEWS
Greater Kuparuk Area Projects: Drill Site 2S and 1H NEWS DS‐2S 1H NEWS Multi‐phase meter 8
Slide 9: Alpine Drill Site CD5
Alpine Drill Site CD5 Project Status • Total gross cost approximately $1.1 B • Peak gross production ~16,000 BOPD (2016) • 6‐mile gravel road with 4 bridges, 11.7 acre gravel pad, and drillsite facilities • 15‐well development with potential for up to 33 wells • First oil achieved October 27, 2015 9
Slide 10: CD5 Nigliq Channel Bridge - Video
CD5 Nigliq Channel Bridge ‐ Video 10
Slide 11: Greater Mooses Tooth 1 (GMT1) – Funding Approved
Greater Mooses Tooth 1 (GMT1) – Funding Approved • First drill site in Greater Mooses Tooth Unit – roaded NPR‐A Development: CD5, GMT1, & GMT2 development approved • Project scope • Potential for up to 33 well MWAG development • Connected to CD5 via 7.7 mile road and 2 bridges • Capital cost ~$900 M
Slide 12: Upcoming NPRA Projects: GMT2 and Exploration
Upcoming NPRA Projects: GMT2 and Exploration GMT2 12
Slide 13: AKLNG Update
AKLNG Update Project Status • Pre‐FEED technical work progressing well • Commercial and fiscal negotiations underway • Current market creates economic headwinds Potential North Slope Gas Treatment Plant (GTP) LNG Plant Conceptual Layout 13
Slide 14: AKLNG - Near Term Focus
AKLNG ‐ Near Term Focus LNG Operating Plants & Proposed Projects $25 Cost of Service $20 Key Elements to Project Viability $ / mmbtu $15 • Continue Pre‐Feed Work $10 $50 / bbl Brent Price • Focus on reducing cost of project $5 • Address State specific questions $0 • Align on commercial agreements •
Slide 15: How Do We Keep Up Investment Momentum?
How Do We Keep Up Investment Momentum? • Stable investment climate • Tax policy impacts investment decisions • Rational, factual discussions on State fiscal challenges • Alignment – everyone pulling in same direction • Producers, labor, contractors, Native corps, public • State and Producers work in
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