ConocoPhillips · NYSE:COP
ConocoPhillips — Q2 2015 Earnings Presentation
16 slides from ConocoPhillips's earnings presentation, Jul 30, 2015
Slide 1: 2Q15 Conference Call
2Q15 Conference Call July 30, 2015
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
conocStips Ryan Lance Chairman & CEO
Slide 4: All Time Horizons Matter
All Time Horizons Matter Short Term Medium Term Long Term • Safely execute the • Manage path to cash • Maintain capital business flow neutrality flexibility • Deliver current year • Maintain balance sheet • Lower the cost of plan for lower cost strength supply • Increase the dividend • Meet cost tar
Slide 5: Long-Term Performance
Long-Term Performance Cash Flow Neutrality Sustainable Growth Reserves • Ability to achieve cash flow neutrality at 8.9 BBOE ~$60/BOE Brent in 2017 and beyond • Additional capital and operating cost flexibility • Deflation capture Challenged Low 20 BBOE Cost of Supply • Discretion in development pro
Slide 6: Jeff Sheets, EVP Finance and CFO
Jeff Sheets EVP, Finance and CFO
Slide 7: 2Q15 Performance – Adjusted Earnings
2Q15 Performance – Adjusted Earnings Highlights • Strong operational performance; year-over-year production growth of 4% Adjusted • 14% year-over-year lower operating costs, adjusted for Earnings 2,003 pension settlement and restructuring costs ($MM) • 1H15 earnings negatively impacted by realized p
Slide 8: 2Q15 Production From Continuing Operations
2Q15 Production From Continuing Operations 4% PRODUCTION GROWTH 69 30 Liquids 37 APLNG Gas 18 Other Gas 14 1,556 1,595 Total 69 2Q14¹ Downtime & Dispositions² Net Growth 2Q15 All volumes in MBOED. 1 Excludes Libya volumes of 1 MBOED in 2Q14. 2 Dispositions reflect Canada and Lower 48 asset sales. 8
Slide 9: 1H15 Performance – Company Cash Flow
1H15 Performance – Company Cash Flow $B 1H15 Marker Prices 2.4 • Brent $57.95/BBL • WTI $53.20/BBL 4.4 • Henry Hub $2.82/MMBTU 0.6 2Q15 1.1 • Debt of $24.9B • Debt-to-capital ratio of 34% 5.7 1.8 0.1 5.1 3.8 2015 Beginning CFO Excluding Total Working Disposition Debt Capital Dividends Other 2Q15 End
Slide 10: 2015 Guidance Update
2015 Guidance Update • Expect to achieve higher end of full-year 2-3% production growth target • 3Q production range of 1,510 – 1,550 MBOED • Guidance reductions provide a net cash flow benefit of ~$0.9B • Capital expenditures lowered from ~$11.5B to ~$11.0B • Operating costs lowered from ~$9.2B to
Slide 11: Matt Fox, EVP Exploration & Production
Matt Fox EVP, Exploration & Production
Slide 12: Lower 48 and GOM Exploration Update
Lower 48 and GOM Exploration Update Lower 48 Surmont • 2Q15 production of 556 MBOED; increased 3% vs. 2Q14 • Crude oil production increased 9% vs. 2Q14 • Currently running 13 rigs • 6 in Eagle Ford, 4 in Bakken and 3 in Permian • Pilot testing ongoing in Eagle Ford and Bakken • Appraisal activity at
Slide 13: Canada and Alaska
Canada and Alaska CD5 AND DRILL SITE 2S SPUD FIRST WELLS CD5 Canada Alaska • 2Q15 production of 306 MBOED; increased 8% vs. 2Q14 • 2Q15 production of 174 MBOED • Surmont 2 first steam in May; on track for first production • First wells spud at CD5 and Drill Site 2S; first oil expected in 3Q from bot
Slide 14: Europe and Asia Pacific & Middle East
Europe and Asia Pacific & Middle East Europe • 2Q15 production of 206 MBOED • Achieved first production at Enochdhu; Alder topsides module installed • Eldfisk II and Ekofisk South continuing to ramp up • Successfully completed turnaround activity at J-Area and Greater Ekofisk Area; additional turnar
Slide 15: Ryan Lance, Chairman & CEO
conocStips Ryan Lance Chairman & CEO
Slide 16: Closing Comments and Q&A
conocStips Closing Comments and Q&A