Conocophillips · NYSE:COP
Conocophillips — Credit Suisse 2013 Energy Summit
33 slides from Conocophillips's conference presentation, Feb 7, 2013
Slide 1: Credit Suisse 2013 Energy Summit – February 7, 2013
Credit Suisse 2013 Energy Summit – February 7, 2013 Ryan Lance, Chairman and CEO
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: Highlights and Accomplishments
Highlights and Accomplishments Completed separation of downstream business to emerge as North America’s largest independent E&P company Strategic Completed asset sales of $2.1 B and announced $9.6 B in agreements for additional dispositions Delivered strong total shareholder returns Met volume targe
Slide 4: 2012 Reserve Replacement
2012 Reserve Replacement Year‐end reserves of 8.6 BBOE Organic reserve additions of 942 MMBOE Total reserve additions of 859 MMBOE Production includes fuel gas. 83 MMBOE reduction reflects net dispositions completed in 2012. 4
Slide 5: Our Value Proposition
Our Value Proposition Sector‐leading distributions 3 – 5% production CAGR 3 – 5% margin CAGR Ongoing priority to improve returns Relentless focus on safety and execution 5
Slide 6: ConocoPhillips: Positioned for Success
ConocoPhillips: Positioned for Success Production: 1,578 MBOED (YE 2012) Largest North American‐based independent Liquids “Majors” asset base with compelling growth LNG + International Gas North American Gas High‐margin legacy assets Lower risk, diversified international portfolio Proved Reserve
Slide 7: Investing for Profitable Growth
Investing for Profitable Growth Disciplined allocation of ~$16 B annual capex generates 3 – 5% CAGR with high margins and lower risk • Estimated 2012 full‐year impact of disposition candidates. • 2012 – 2016 data effective as of Sept 2012. 7
Slide 8: Margin Improvement and Compelling Near-Term Growth
Margin Improvement and Compelling Near‐Term Growth Shift to high‐margin production drives 3 – 5% cash margin CAGR Five high‐margin projects will account for 550+ MBOED by 2016 Lower‐risk geographies and geologies; diversified plays Canada Canada North NorthSea Sea SAGD SAGD conventional conventional
Slide 9: Portfolio Overview: Impactful North American Position
Portfolio Overview: Impactful North American Position Largest independent producer in North America 3 – 5% production CAGR projected from high‐return programs Technical strengths in unconventional, heavy oil and arctic • 2012 – 2016 data effective as of Sept 2012. 9
Slide 10: Portfolio Overview: Lower Risk International Position
Portfolio Overview: Lower Risk International Position Majority of production in long‐lived assets in OECD countries 4 – 6% production CAGR expected from major projects Technical capabilities in conventional, deepwater, LNG, unconventional Production – MBOED YE 2011 Proved Reserves – BBOE Internation
Slide 11: Massive Land Position in L48 and Canada
Massive Land Position in L48 and Canada COP COP Acreage Acreage Lower 48: 15.8 MM Net Acres Williston Williston Western Canada: 5.9 MM Net Acres Total North America: ~22 MM Net Bakken Bakken Acres Rockies Rockies Niobrara Niobrara San San Juan Juan Panhandle Panhandle Barnett Barnett Permian Permian
Slide 12: Strong Unconventional Technology Capability
Strong Unconventional Technology Capability Sweet spot identification Reservoir & completion performance Field Optimization Pilot Well construction Well intervention Completions Optimization Life‐of‐field optimization Downhole Temperature Sensors 12
Slide 13: Eagle Ford – Best Position in Best Play
Eagle Ford – Best Position in Best Play 228 M net acres in liquids‐rich play (77% liquids) with 1.8 BBOE resources 2012 Program: ~$2.5 B investment; 50%+ return 1 Wells lead industry performance with $37/BBL breakeven WTI2 Production – MBOED COP Acreage 1 Project returns use internal forecast number
Slide 14: Permian – Emerging Liquids Growth
Permian – Emerging Liquids Growth 1.1 MM net acres in liquids‐rich play (60% liquids) with 1.1 BBOE resources 2012 program: ~$0.6 B investment; 40%+ return1 Exposure in every play; over 7,000 gross identified well locations Promising early results in Avalon and Wolfcamp plays Production – MBOED Yeso
Slide 15: Bakken – Legacy Oil in Heart of Trend
Bakken – Legacy Oil in Heart of Trend 207 M net lease / 419 M net mineral acres in oil play with 0.4 BBOE resources1 2012 program: ~$0.6 B investment; 25%+ return 2 Managed pace based on access to service and infrastructure Drilling inventory of 1,300 gross proved and probable locations Oil COP Acre
Slide 16: Margin Improvement and Compelling Near-Term Growth
Margin Improvement and Compelling Near‐Term Growth Shift to high‐margin production drives 3 – 5% cash margin CAGR Five high‐margin projects will account for 550+ MBOED by 2016 Lower‐risk geographies and geologies; diversified plays Canada Canada North SAGD NorthSea Sea SAGD conventional conventional
Slide 17: Future Growth from Unconventional Exploration
Future Growth from Unconventional Exploration North America: accessing and testing many high‐ quality, high‐value, liquids‐rich plays Canol Added >750,000 net acres in North America since 2011 Horn River Material working interest in liquids‐rich opportunities Montney Duvernay Numerous shale pi
Slide 18: Future Growth from Conventional Deepwater Exploration
Future Growth from Conventional Deepwater Exploration North America: 6th largest deepwater Gulf of COP leases Mexico lease owner Lower Tertiary Play Shenandoah ~1.9 MM net acres Currently participating in 2 wells: Coronado wildcat and Shenandoah appraisal Expecting to participate in 5 – 8 well
Slide 19: 2013 Priorities
2013 Priorities Ongoing focus on safety and operations excellence Complete announced divestitures Execute drilling programs and major growth projects Advance conventional and unconventional exploration activities Maintain commitment to shareholders 19
Slide 20: Credit Suisse 2013 Energy Summit – February 7, 2013
Credit Suisse 2013 Energy Summit – February 7, 2013 Ryan Lance, Chairman and CEO
Slide 21: Annualized Income Sensitivities
Annualized Income Sensitivities Crude Brent/ANS: $85‐95 MM change for $1/BBL change WTI: $20‐25 MM change for $1/BBL change WCS: $20‐25 MM change for $1/BBL change North American NGL Representative blend: $20‐25 MM change for $1/BBL change Natural Gas HH: $120‐125 MM change for $0.25/MCF c
Slide 22: Fourth-Quarter Volume and Realized Price Overview
Fourth‐Quarter Volume and Realized Price Overview 4Q12 4Q12 Sales Sales Volume Volume Mix Mix Realized Realized Prices Prices Q42012 4Q2011 Delta N.A. (WTI) $88 $93 ‐$6 Crude ($/Bbl) Intl & Alaskan $108 $109 ‐$1 Crude ($/Bbl) N.A. Nat Gas $3.14 $3.29 ‐$0.15 ($/Mcf) Intl Nat Gas $12.06 $12.22 ‐$0.16
Slide 23: Full-Year Volume and Realized Price Overview
Full‐Year Volume and Realized Price Overview 2012 2012 Sales Sales Volume Volume Mix Mix Realized Realized Prices Prices 2012 2011 Delta N.A. (WTI) $90 $92 ‐$2 Crude ($/Bbl) Intl & Alaskan $110 $108 $2 Crude ($/Bbl) N.A. Nat Gas $2.49 $3.80 ‐$1.31 ($/Mcf) Intl Nat Gas $12.31 $10.93 $1.38 ($/Mcf) 201
Slide 24: 2012 Performance – Production
2012 Performance – Production O T MBOED H E R Continuing Discontinued Operations Operations1 1 Reflects production from Algeria and Nigeria. 24
Slide 25: 2013 Production Outlook
2013 Production Outlook O T MBOED Total 1Q13 outlook: H E 1,580‐1,600 MBOED R 2013 outlook from continuing operations: 1,475‐1,525 MBOED Expect significant dip in 2Q/3Q 2013 Seasonality Planned maintenance Project tie‐ins Expect 4Q13 ramp up 1 1 Includes Vietnam, Statfjord, Alba and NMNG. 25
Slide 26: Lower 48 and Latin America
Lower 48 and Latin America Bakken Eagle Ford sets new production record Bakken Achieved 103 MBOED peak rate during 4Q12 11 operated rigs drilling at year‐end Bakken ramping up Averaged 24 MBOED in 4Q12 9 operated rigs drilling at year‐end Permian increasing conventional and unconventional ac
Slide 27: Canada
Canada Oil OilSands Sands Oil Sands projects executing well Exceeded 100 MBOED average in 4Q12 7 major project phases in execution across FCCL and Surmont Western Canada focused on liquids 2012‐13 programs targeting liquids/light oil 16 operated rigs currently drilling over winter program
Slide 28: Alaska
Alaska Kuparuk Production restored following successful 3Q12 turnarounds Development drilling innovation Octo‐lateral coiled tubing drilling Alpine West CD5 project sanctioned and progressing ANS Gas LNG concept selection to be Alpine complete in 1Q13 More capital investment could be pursued with
Slide 29: Asia Pacific and Middle East
Asia Pacific and Middle East Malaysia first oil Gumusut Gumusut start‐up through temporary facilities with a year‐end exit rate of 9 MBOED net Production sharing contract signed for operated, offshore exploration Block SB311 China performing Peng Lai maintained net production of 43 MBOED in 4Q
Slide 30: Europe
Europe Jasmine United Kingdom developments progressing Significant unplanned downtime in 4Q12 Projects progressing Katy development completed and producing Clair Ridge and Jasmine developments on track Awarded two licenses in the 27th round in Central North Sea Norway strong performance
Slide 31: Other International
Other International Angola Announced sales agreements for Kashagan, Nigeria and Algeria Expect close mid‐2013 2012 average production rate ~25 MBD liquids ~150 MMCFD natural gas Year‐end 2012 reserves ~180 MMBBL liquids ~830 BCF natural gas Nigeria unplanned downtime Niger River Prod
Slide 32: Abbreviations and Glossary
Abbreviations and Glossary 3‐D: three dimensional MM: million ANS: Alaska North Slope MBOED: thousand of barrels of oil equivalent per day B: billion MLN: Menzel Ledjmat North Base Production: production from existing infrastructure MMBOED: millions of barrels of oil equivalent per day BBL: barrel M
Slide 33: Shareholder Contacts
Shareholder Contacts Stock Ticker: NYSE: COP Headquarters: ConocoPhillips Company 600 N. Dairy Ashford Houston, Texas 77079 www.conocophillips.com/investor Investor Relations: +1.212.207.1996 Ellen DeSanctis ellen.r.desanctis@conocophillips.com Vladimir R. dela Cruz v.r.delacruz@conocophilli