ConocoPhillips · NYSE:COP
ConocoPhillips — Q4 2009 Earnings Presentation
19 slides from ConocoPhillips's earnings presentation, Jan 27, 2010
Slide 1: 4th Quarter 2009 Conference Call
4th Quarter 2009 Conference Call January 27, 2010
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 The following presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities E
Slide 3: Fourth-Quarter Overview
Fourth-Quarter Overview Adjusted $1.16 Adjusted earnings Earnings per share $1.7B 2.26 MMBOED production Cash From 76% Refining utilization Operations Exceeded full year cost $5.1B reduction target Asset impairments of $573 Debt-to-Cap million 31% Earnings adjusted to exclude certain non-core earnin
Slide 4: Total Company Adjusted Earnings
Total Company Adjusted Earnings 4Q09 vs. 4Q08 $MM 316 957 74 388 1,914 1,735 4Q08 E&P R&M LUKOIL Other 4Q09 Adjusted Adjusted Earnings Earnings Earnings adjusted to exclude certain non-core earnings impacts; see Table 1 & Table 2 of Appendix for additional information. Page 4
Slide 5: Controllable Cost Reductions
Controllable Cost* Reductions 2009 vs. 2008 $B 14.7 12.7 2008 Currency Rates Market Factors New Projects Severance Operations 2009 Costs *Includes production and operating expenses, selling, general, and administrative expenses, and exploration expenses excluding dry hole costs and lease impairments
Slide 6: Total Company Cash Flow
Total Company Cash Flow 4Q09 $MM 639 3,066 4,455 1,805 641 742 420 542 4Q09 CFO excl Working Capital Debt Dividends Other 4Q09 Ending Beginning Working Capital* Program Reduction Cash Cash Capital* * Cash provided by operating activities was $5,094 million in the fourth quarter of 2009 Page 6
Slide 7: Total Company Cash Flow
Total Company Cash Flow 2009 $B Asset Sales & Other* Debt Dividends 1.1 1.2 2.8 Capital Program CFOA 12.0 12.5 Sources of Cash Total Uses of Cash $14.8 * Includes reduction in cash balance Page 7
Slide 8: Debt-to-Capital Ratio
Debt-to-Capital Ratio 40% 35% 31% 30% 25% Target Range 20% 15% 4Q08 1Q09 2Q09 3Q09 4Q09 Page 8
Slide 9: Total Company Production
Total Company Production 4Q09 vs. 4Q08 MBOED 431 6 20 37 16 12 2,259 1,867 1,828 4Q08 E&P Market Portfolio Planned 2008 Operations 4Q09 E&P LUKOIL 4Q09 Factors Changes Maintenance Hurricanes Page 9
Slide 10: Total Company Production
Total Company Production 2009 vs. 2008 MBOED 434 50 17 15 4 13 2,288 1,789 1,854 2008 E&P Market Portfolio Planned 2008 Operations 2009 E&P LUKOIL 2009 Factors Changes Maintenance Hurricanes Page 10
Slide 11: E&P Adjusted Earnings
E&P Adjusted Earnings 4Q09 vs. 4Q08 $MM 95 157 501 123 1,708 1,392 4Q08 Adjusted Prices & Other Sales Volumes Operating Costs Other 4Q09 Adjusted Earnings Market Impacts Earnings Adjusted 4Q09 vs. Realized 4Q09 vs. Earnings 4Q08 4Q09 4Q08 Prices 4Q08 4Q09 4Q08 U.S. 616 696 80 Oil $/BBL 52.82 72.05 1
Slide 12: R&M Adjusted Earnings
R&M Adjusted Earnings 4Q09 vs. 4Q08 $MM 753 807 169 (204) 47 28 4Q08 Adjusted Margins & Other Volumes Operating Costs Other 4Q09 Adjusted Earnings Market Impacts Earnings Adjusted 4Q09 vs. Realized 4Q09 vs. Earnings 4Q08 4Q09 4Q08 Margins $/BBL 4Q08 4Q09 4Q08 U.S. 379 (314) (693) U.S 8.20 3.48 (4.72
Slide 13: Other Segments Adjusted Earnings
Other Segments Adjusted Earnings 4Q08 vs. 4Q09 $MM 388 4Q08 4Q09 97 69 60 54 3 0 (6) Midstream Chemicals Emerging Businesses LUKOIL • Corporate: ($354 MM) vs. ($311 MM) Earnings adjusted to exclude certain non-core earnings impacts; see Table 1 & Table 2 of Appendix for additional information. Page
Slide 14: Summary
Summary Exceeded E&P production goals Beat cost reduction targets Delivered exploration success Upgrading portfolio Responding to downstream market Page 14
Slide 15: Appendix
ConocoPhillips Appendix
Slide 16: COP Reconciliation of Earnings to Adjusted Earnings
COP Reconciliation of Earnings to Adjusted Earnings Millions of Dollars Except Per Share Amounts Fourth Quarter Year Ended 2009 2008 2009 2008 Consolidated Earnings (loss) $ 1,217 $ (31,764) $ 4,858 $ (16,998) Less: Goodwill impairment - 25,443 - 25,443 LUKOIL investment impairment - 7,410 - 7,410 I
Slide 17: COP Reconciliation of Earnings to Adjusted Earnings
COP Reconciliation of Earnings to Adjusted Earnings Millions of Dollars Fourth Quarter Year Ended 2009 2008 2009 2008 R&M Earnings (loss) $ (215) $ 289 $ 37 $ 2,322 Less: Impairments 11 537 116 550 Net gain on asset sales - (97) (32) (224) Severance accruals - 24 (6) 24 Adjusted earnings (loss) $ (2
Slide 18: COP Reconciliation of Earnings to Adjusted Earnings
COP Reconciliation of Earnings to Adjusted Earnings Millions of Dollars Third Quarter 2009 Consolidated Earnings (loss) $ 1,503 Less: Impairments 33 Net gain on asset sales (32) Severance accruals (40) Adjusted earnings $ 1,464 E&P Earnings (loss) 978 Less: Severance accruals (31) Adjusted earnings
Slide 19: 4Q09 vs. 3Q09
4Q09 vs. 3Q09 Total Company Adjusted Earnings ($MM) E&P Adjusted Earnings ($MM) 134 51 63 15 476 113 41 579 1,708 1,735 1,464 947 3Q09 Adjusted Prices & Other Sales Volumes Operating Costs Other 4Q09 Adjusted 3Q09 Adjusted Prices, Margins & Volumes Operating Costs Other 4Q09 Adjusted Earnings Market