ConocoPhillips · NYSE:COP
ConocoPhillips — Investor Presentation (2009)
14 slides from ConocoPhillips's investor presentation, Dec 22, 2009
Slide 1: Sig Cornelius, Senior Vice President Finance & CFO
Sig Cornelius Senior Vice President Finance & Chief Financial Officer
Slide 2: Financial Priorities
Financial Priorities Fund capital program Disciplined cost management Pay competitive dividends Preserve balance sheet strength and financial flexibility
Slide 3: Capital Program
Capital Program $B 19.9 16.4 12.9 12.5 11.9 2005 2006* 2007 2008 2009 Estimate E&P R&M Other Balanced and flexible investment portfolio *Excludes purchase price for Burlington Resources, but includes its capital program from purchase date of March 31, 2006 forward
Slide 4: Distributions & Reinvestment Rate
Distributions & Reinvestment Rate 2006 - 2008 Average 2009E 140% 121% 117% 109% 102% 101% 101% 29% 98% 28% 23% 19% 11% 22% 82% 88% 68% 59% COP Peer Average COP Peer Average Share Repurchases/CFOA Dividends/CFOA Dividends/CFOA Capex/CFOA Capex/CFOA Peer range Peer range Source: First Call estimates a
Slide 5: Controllable Cost Structure
Controllable Cost Structure $B 14.7 13.4 13.5 13.3 11.1 2005 2006 2007 2008 2009 Estimate Responsive to market environment 2006 reflects only 9 months of BR
Slide 6: 2009 Cash Sources and Uses
2009 Cash Sources and Uses Cash From Operations 20 $B 15 Capital Program $15.2 $17.2 ($12.5 B) 10 $12.5 5 Dividends ($2.8 B) 0 First Call Crude - WTI $40 $52.35 $60 Gas - HH $4 $6.04 $7 Crack – GC $4 $4.67* $6 Sources: First Call (3/5/2009) and company sensitivities *Actuals & Goldman Sachs forward
Slide 7: 2009 Sensitivities
2009 Sensitivities $MM EPS $1/BBL $1/BBL Crude Crude Worldwide Worldwide E&P E&P 150 150 $0.10 $0.10 Worldwide Worldwide R&M R&M (secondary (secondary products) products) (45) (45) ($0.03) ($0.03) Net Net Crude Crude Impact Impact 105 105 $0.07 $0.07 $1/MMBtu $1/MMBtu Natural Natural Gas Gas Worldwi
Slide 8: 2009 Other Drivers
2009 Other Drivers Selected Items Estimates Pre-Tax Expense Estimates Corporate: $1.2 B (after-tax) Turnaround costs: $0.6 B Pension funding: $1.0 B Exploration expenses*: $1.4 B • US: $0.9 B DD&A: $9.3 B • Int’l: $0.1 B *Includes dry hole and lease impairment costs
Slide 9: Return on Capital Employed
Return on Capital Employed 25% Peer Group 20% 15% 22% 10% 17% 15% 15% 14% 5% 10% 0% 2003 2004 2005 2006 2007 2008 Delivering competitive returns All companies Income adjusted to exclude certain non-core earnings impacts (based solely on publicly available information). Purchase accounting basis. See
Slide 10: Financial Performance – Income per BOE/BBL
Financial Performance – Income per BOE/BBL E&P R&M $ / BOE $ / BBL 5.00 25.00 4.00 20.00 3.00 15.00 4.50 10.00 2.00 3.85 2.40 18.44 3.59 14.79 13.76 12.19 2.39 5.00 9.97 1.00 7.08 1.26 0.00 0.00 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Peer Group Delivering competitive returns E&P
Slide 11: Financial Performance – Cash per BOE/BBL
Financial Performance – Cash per BOE/BBL E&P R&M $ / BOE $ / BBL 35.00 6.00 30.00 5.00 25.00 30.70 4.00 20.00 5.16 3.00 22.96 4.64 15.00 3.16 22.35 20.60 2.00 4.28 10.00 3.06 15.07 5.00 11.62 1.00 1.88 0.00 0.00 2003 2004 2005 2006 2007 2008 2003 2004 2005 2006 2007 2008 Peer Group Delivering compet
Slide 12: Competitive Dividend Yield
Competitive Dividend Yield 10% Peer Group 5% 4% 3% 2% 2% 2% 2% 0% 2003 2004 2005 2006 2007 2008
Slide 13: Balance Sheet Strength & Financial Flexibility
Balance Sheet Strength & Financial Flexibility Senior unsecured debt ratings: • Moody’s – A1 • S&P – A • Fitch – A Debt-to-capital ratio: 33% • Target range: 20-25% Debt market access and flexibility • $6 billion January bond placement • Planning additional access in Q2/Q3 Debt-to-capital rati
Slide 14: Positioned to Create Shareholder Value
Positioned to Create Shareholder Value Capital Operating Discipline & Shareholder Excellence Project Financial Value Execution Optimization Shareholder Technology & Innovation Value Portfolio of High-Quality Assets Balanced and flexible capital program Disciplined cost management Balance sheet