ConocoPhillips · NYSE:COP
ConocoPhillips — Investor Presentation (August 2019)
25 slides from ConocoPhillips's investor presentation, August 2019
Slide 1: 2019 Capital Budget & Operating Plan
ConocoPhillips 2019 Capital Budget & Operating Plan i Supplemental Information & Investor Update UPDATED AS OF AUGUST 2019
Slide 2: Cautionary Statement
Cautionary Statement ConocoPhillips This presentation contains forward-looking statements. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-l
Slide 3: 2019 Highlights
2019 Capital Budget & Operating Plan ConocoPhillips 2019 Highlights Capital! (B) Production (MBOED) Pro-forma? for * 2019 operating plan capital Comp & Other pilates guidance of $6.3B! APME acquisitions and dispositions Europe & * 2019 production 1,310 — 1,340; North Africa Noxtn Site ~5% production
Slide 4: 2019 Capital Allocation Underscores Low-Risk, High-Value Portfolio
2019 Capital Allocation Underscores Low-Risk, High-Value Portfolio 100% LNG & Oil Sands Major Projects 75% 50% Development 25% Conventional Capital Asset Class Buid-Up 2019 Capital Allocation Cost of Supply (wT!) ConocoPhillips ~70% directed toward development programs ~70% to be spent in the U.S. ~
Slide 5: Recommitting to Our Priorities & Portfolio
ConocoPhillips Recommitting to Our Priorities & Portfolio
Slide 6: 2Q19 Summary: Consistent, Strong Performance Across Cycles
> 2Q19 Summary: Consistent, Strong Performance Across Cycles ConocoPhillips EE Financial Operational Strategic NL » $1.1B adjusted earnings; $1.01 >» 2Q production of 1,290 MBOED » Increased 2019 planned buybacks adjusted EPS to $3.5B » Successfully completed 2Q » Generated $3.4B in CFO! and turnaro
Slide 7: "New Order" Value Proposition Is Right For the Business We're In
“New Order” Value Proposition Is Right For the Business We’re In ConocoPhillips Today’s E&P Industry Is... Capital Intensive Mature Cyclical To Win, A Strategy Framework Must Address These Realities What portfolio do we How do we allocate How do we manage choose to have? capital? uncertainty? » Glob
Slide 8: Our Value Proposition Delivers Superior Returns Through Cycles
Our Value Proposition Delivers Superior Returns Through Cycles THE RIGHT PORTFOLIO == CONSISTENT PRINCIPLES = DISCIPLINED PRIORITIES Low Cost ae Sustaining of Supply Capital 16 BBOE RESOURCE BASE <$40/BBL CoS? Advantaged Diverse Pricing & Asset Margins Classes *Resource for year end 2018. Reflects W
Slide 9: Winning Value Proposition for a Cyclical Business
> Winning Value Proposition for a Cyclical Business ConocoPhillips Delivering superior returns to shareholders through cycles DISCIPLINED PRIORITIES ‘includes Brent markers that correlate closely to Brent with 2019 guidance volumes. Sustain production and pay existing dividend Grow dividend annually
Slide 10: Growing Resource Base, While Lowering Cost of Supply
Growing Resource Base, While Lowering Cost of Supply Low Cost of Supply! Resource Base 1 BBOE 0.5BBOE? 16 BBOE 15BBOE 0.5 BBOE — so /BBL 7% INCREASE In Resource Base 2018 vs. 2017 Cost of Supply Production Additions 2018 Cost of Supply 2017 Announced 2018 A&D +Fully-burdened cost of supply Incudes a
Slide 11: Peer-Leading Sustaining Price: Key to "New Order" Value Proposition
S3.8B/vr = <S40/ssL SUSTAINING CAPITAL SUSTAINING PRICE 2019 - 2021 ¢ Modest sustaining capital increase with higher base production, but sustaining price is maintained * Cash flow at $40/BBL exceeds sustaining capital and dividend ¢ Low capital intensity represents significant competitive advantage
Slide 12: 2019 Operating Plan on a Page
ConocoPhillips 2019 Operating Plan on a Page » Maintain discipline & continued focus on free cash flow generation > $6.3B capital expenditures budget » Deliver per-share cash flow expansion from low-CoS investments >» FY19 production 1,310 -1,340 MBOED » Achieve total shareholder payout >30% of CFO
Slide 13: Alaska: Significant Future Exploration & Appraisal Planned
Alaska: Significant Future Exploration & Appraisal Planned ConocoPhillips 2019 Program Focused on Existing Discoveries 2020+ Program Focused on Remaining Potential Resolve Remaining Uncertainties to Sanction Test Full Prospect Inventory Western Greater Willow Appraisal North Slope * Evaluate horizon
Slide 14: 2019 Montney Appraisal: Expanded Liquids-Rich Resource Base
2019 Montney Appraisal: Expanded Liquids-Rich Resource Base ConocoPhillips @ 2013 COP acreage ®@ 2013-2017 acquisitions @ 2018 acquisitions * 14-well pad to be drilled and completed in 2019; © 2017 appraisal wells testing well spacing and stacking A 14-well pad —_;kz—e—e * >2 BBOE of <S40/BBL cost o
Slide 15: 2019 Lower 48 Big 3 Unconventionals: Maximizing Value
2019 Lower 48 Big 3 Unconventionals: Maximizing Value ConocoPhillips Big 3 Production: (MBOED) ~360 >29% CAG R / BIG 3 PRODUCTION 2017 to 2019 298 ¢ Significant outperformance in 2018 vs 217 2017 AIM * Expect to run 10-11 operated rigs * Willing to shift capital among the Big 3 to maximize value * M
Slide 16: Continuous Learning & Optimization of Completions Drives Value
Continuous Learning & Optimization of Completions Drives Value ConocoPhillips Evolution of ConocoPhillips Eagle Ford Completion Design Vintage 1 Vintage 2 Vintage 3 Vintage 4 2012 2014 2016 2017+ 400 c ized 3.8 MMIbs 7.5 MMlbs 10.5 MMIbs aaa Specific Area (14-17 MMibs) 300 w ° a = g 8 200 =| = 5 oO
Slide 17: 2019 Cash Sources & Uses
ConocoPhillips 2019 Cash Sources & Uses at $50/BBL WTI
Slide 18: 2019 Plan at $50/BBL: Commitment to Shareholder Payout
2019 Plan at $50/BBL: Commitment to Shareholder Payout Estimated Sources and Uses of Cash (2019) at $50/BBL WTI Starting Cash! & ~ 5 0% Proceeds” cFO@ $50/BBL CFO return to shareholders <$40/BBL CFO at sustainin $40/BBL : 8 $3.8B price Sources of Cash Sustaining Capital Base Dividend Dividend Growth
Slide 19: Production & Margin Growth Drive Cash Flow Expansion
Production & Margin Growth Drive Cash Flow Expansion ConocéPhillips Cash Flow Sensitivities for $1/BBL Change Cash flow price sensitivity ~$235MM | | An~5% increased S30MM per nae ae sta $1/BBL change driven by: ET Production Growth hel Growth International Gas * ~7% increase in year over year ji FF
Slide 20: ConocoPhillips
ConocoPhillips
Slide 21: 2019 Guidance
> 2019 Guidance ConocoPhillips 1,310 — 1,340 MBOED 1,290 — 1,330 MBOED $6.1B $6.3B $6.1B te Segment Net Loss $1.0B fear 2019 Exploration Dry Hole and Leasehold Impairment Expense $0.2B Guidance excludes special items and, with the exception of DD&A, impacts from the announced U.K. divestiture agreem
Slide 22: 2019 Annualized Net Income Sensitivities
jonally, t 2019 Annualized Net Income Sensitivities ConocoPhillips * Crude: * Brent/ANS: ~$155-175MM for $1/BBL change * WTI: *$30-40MM for $1/BBL change * WCS: ~$10-15MM for $1/BBL change * Does not incorporate contingent payment of CAS6MM quarterly for every CAS1 WCS price above CA$52/BBL $45-$75/
Slide 23: 2019 Annualized Cash Flow Sensitivities
2019 Annualized Cash Flow Sensitivities ConocoPhillips Consolidated Operations Equity Affiliates? ($45-$75/BBL WTI) ($45-$75/BBL Brent) * Crude * Expect distributions from all equity affiliates at * Brent/ANS: ~$155-165MM for $1/BBL change >$45/BBL Brent * WTI: ~$40-SOMM for $1/BBL change * Brent: ~
Slide 24: ConocoPhillips Definitions
ConocoPhillips Definitions ConocoPhillips Cash from operations (CFO): Cash provided by operating activities less the impact from operating working capital. Estimated CFO based on sensitivities assumes no operating working capital changes, and therefore CFO equals cash provided by operating activitie
Slide 25: ConocoPhillips Abbreviations
ConocoPhillips Abbreviations ConocoPhillips B: billion BBL: barrel BBOE: billions of barrels of oil equivalent BOE: barrels of oil equivalent BOED: barrels of oil equivalent per day CAGR: compound annual growth rate CFO: cash provided by operations CoS: cost of supply DASh: debt-adjusted share FID: