ConocoPhillips · NYSE:COP
ConocoPhillips — Shareholder Meeting (May 2017)
14 slides from ConocoPhillips's shareholder meeting presentation, May 15, 2017
Slide 1: SPIRIT Values
SPIRIT Values smart growth differentiation acceleration superior returns
Slide 2: Agenda
Agenda 1 2016 Review 2 Business Plan Update 3 Delivering on the Plan 4 Closing Remarks 2
Slide 3: 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 4: 2016 Operating Performance
2016 Operating Performance Financial Strategic Operational 52% 19% $3B $1.3B 6 3% 11% Capital Adjusted Initiated share Disposition Project Startups Production Incident Rate Reduction Operating Cost buyback Proceeds Achieved Growth2 Improvement 2016 vs. 2015 Reduction1 program in mid- 2016 2016 2016
Slide 5: Delivering Results With a Relentless Focus on Safety and Execution
Delivering Results With a Relentless Focus on Safety and Execution Life Saving • Personal safety performance best on record in 2016 Rules • Improved process safety performance • A safety leader in peer group • Life Saving Rules embedded in culture and showing positive impact • Focus on process safet
Slide 6: Environment and Sustainable Development
Environment and Sustainable Development • Record year for the West Arnhem Land Fire Abatement project 1.9 MILLION TONNES CO2 EMISSIONS OFFSET TO DATE BY THE WEST ARNHEM LAND FIRE • New water gathering facility commissioned in the ABATEMENT PROJECT IN AUSTRALIA Permian • Recognized as an industry lea
Slide 7: Total Shareholder Return
Total Shareholder Return Total Shareholder Return1 – 2016 33% 10% Total Shareholder Return2 – Since Spin 1% -3% Independent Peer S&P 500 E&P Companies ConocoPhillips Integrated Peer 1 Period from Jan. 1, 2016 – Dec. 31, 2016 2 Period from May 1, 2012 – April 28, 2017 7
Slide 8: Transforming the Company for a Cyclical and Volatile Future
Transforming the Company for a Cyclical and Volatile Future Brent Price ($/BBL) • A view that prices will be lower and more volatile 140 Annual Average • Positioning the business for cycles, but not Volatile chasing them up or down 120 60 50 Daily • Mindset shift to manage the business for free 100
Slide 9: Strategy on a Page – Disciplined and Resilient, Yet Flexible
Strategy on a Page – Disciplined and Resilient, Yet Flexible >$60/BBL Brent • Value-based cash flow allocation • Maintain discipline on costs and capital • Strong balance sheet Our goal is to deliver $50-$60/BBL • Cash flow allocations balanced between distributions and double-digit total Brent orga
Slide 10: Taking Action to Accelerate and Deliver the Plan
Taking Action to Accelerate and Deliver the Plan $5B CAPITAL PROGRAM IN 2017 Maintaining Discipline. Up to 2% production growth in 2017 6% DIVIDEND INCREASE IN Q1 2017 Delivering annual dividend growth >$16B OF STRATEGIC DISPOSITIONS IN 2017 Improved underlying margins $7B DEBT REDUCTION PLANNED IN
Slide 11: Market Response to Actions Taken
Market Response to Actions Taken Total Shareholder Return1 – Since Nov. 2016 8% -4% Independent Peer S&P 500 E&P Companies ConocoPhillips Integrated Peer 1 Period from Nov. 10, 2016 (Analyst & Investor Meeting) – April 28, 2017 11
Slide 12: Size, Scale & Scope – A Global E&P Company
Size, Scale & Scope – A Global E&P Company Largest Independent E&P Alaska 1.16 MMBOED1 Norway Canada U.K. U.S. Lower 48 Libya China World Class Gulf of Mexico Resource Qatar 14 BBOE Brunei Malaysia <$50/BBL CoS2 Colombia Indonesia Timor-Leste Australia Chile $5B Capital in 2017 Largest US Independen
Slide 13: Positioned for Differential Value Creation
Positioned for Differential Value Creation SMART GROWTH • Disciplined growth, within cash flows • Enabled by a world class portfolio; 14 BBOE with a cost of supply under $50/BBL Brent1 SUPERIOR RETURNS • Double-digit total returns goal • Balance sheet strength to deliver through the cycles SPIRIT VA
Slide 14: Committed to SPIRIT Values
Committed to SPIRIT Values 14