ConocoPhillips · NYSE:COP
ConocoPhillips — Q4 2019 Earnings Presentation
15 slides from ConocoPhillips's earnings presentation, Feb 4, 2020
Slide 1: 4Q19 Earnings Conference Call
ConocoPhillips 4Q19 Earnings Conference Call FEBRUARY 4, 2020
Slide 2: Cautionary Statement
Cautionary Statement This presentation contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. Words and
Slide 3: 2019 Highlights; Focused on the Future
2019 Highlights; Focused on the Future > 8 &£ FINANCIALS OPERATIONS PORTFOLIO STRATEGY $4.0B adjusted earnings; Delivered underlying Generated $3B Returned 43% of CFO" $3.59 adjusted EPS production* growth of 5% of disposition proceeds; $2B of to shareholders dispositions pending> — Paid $1.5B in di
Slide 4: Questions & Answers
ConocoPhillips Questions & Answers
Slide 5: Appendix
ConocoPhillips Appendix
Slide 6: 4Q19 Earnings Summary
4Q19 Earnings Summary ADJUSTED EARNINGS (S$ MILLIONS) HIGHLIGHTS = Sequential adjusted earnings impacted by lower volumes as a result of dispositions = Year-over-year adjusted earnings decreased due to 11% lower realizations and lower volumes as a result of dispositions SEGMENT ED EARNINGS (SMM) 4Q1
Slide 7: 4Q19 Cash Flow Summary
4Q19 Cash Flow Summary $ BILLIONS ° 4Q19 MARKER PRICES 45% cro? ™ Brent $63.22/BBL = WTI $56.98/BBL RETURNED "Henry Hub $2.50/MMBTU TO SHAREHOLDERS 1.6 eat) peri ~$0.1B FOR vO INDONESIA PSC SIGNATURE BONUS $1.1B FREE CASH FLOW GENERATED FOURTH QUARTER 4Q19 BEGINNING CASH CFO? TOTAL WORKING DISPOSITI
Slide 8: 2019 Company Cash Flow
2019 Company Cash Flow $ BILLIONS INCLUDES: 2019 MARKER PRICES ~($0.48) = Brent $64,30/BBL Mesecalb tet! = WTI $57.02/BBL CONTRIBUTIONS = Henry Hub $2.63/MMBTU ~0.38 PDVSA ICC SETTLEMENT 43% cro2 RETURNED TO SHAREHOLDERS —A___ INCLUDES: ~$0.38 for acquisitions 5.0 ——— 0.4 2019 BEGINNING CASH cro TOT
Slide 9: 2019 Strong Operational Performance
2019 Strong Operational Performance DRIVERS RESULTS » 5% underlying production growth? ARGIDEEMNONY CESSES » 100% total reserve replacement; 117% organic replacement? » 22% Lower 48 Big 3 FY production growth; progressed V5 completion design pilots CCA ENTION AL DEV ECOEMENT: » Conducted appraisal d
Slide 10: 2019 Preliminary Reserve Replacement
2019 Preliminary Reserve Replacement steric 100% ORGANIC RRR? TOTAL RRR a ' 485 YE 2018 2019 EXTENSIONS & REVISIONS & ACQUISITIONS & YE 2019 RESERVES PRODUCTION? DISCOVERIES IMPROVED RECOVERY DISPOSITIONS RESERVES RRR represents reserve replacement ratio. All reserves are in MMBOE. ‘Organic reserve
Slide 11: 2019 Pro-Forma Production
2019 Pro-Forma Production (MBOED) 1,318 1,290 1,322 1,289 1,305 1Q 2a 3Q 4Q 2019 FY MREST OF PORTFOLIO BIG 3. m@PENDING DISPOSITONS CLOSED DISPOSITIONS Big 3 includes Eagle Ford, Bakken and Permian Unconventional (including Delaware, Midland and Northwest She 11
Slide 12: 2020 Operating Plan
2020 Operating Plan = $6.5 to $6.7B operating plan capital guidance = Full-year production guidance of 1,230 — 1,270 MBOED — Big 3 full-year production average of ~410 MBOED — 1Q guidance 1,240 — 1,280 MBOED = Exploration activity includes: - Largest Alaska exploration & appraisal winter season - Te
Slide 13: 2020 Guidance
2020 Guidance GUIDANCE OF FEB. 4, 2020) FULL-YEAR 2020 PRODUCTION 1,230 - 1,270 MBOED 1Q 2020 PRODUCTION 1,240 — 1,280 MBOED FULL-YEAR 2020 ADJUSTED OPERATING COSTS $5.9B FULL-YEAR 2020 CAPITAL EXPENDITURES — EXCLUDING ACQUISITIONS $6.5 - $6.7B FULL-YEAR 2020 $6.0B FULL-YEAR 2020 ADJUSTED CORPORATE
Slide 14: 2020 Annualized Net Income Sensitivities ($45-65/BBL WTI)
2020 Annualized Net Income Sensitivities ($45-65/BBL WTI) CRUDE Cn) = Brent/ANS: ~$135-155MM for $1/BBL change © = WTI: ~$30-40MM for $1/BBL change = WCS: ~$15-20MM for $1/BBL change — Does not incorporate contingent payment of CAS6MM quarterly for every CAS1 WCS price above CA$52/BBL =f) NORTH AMER
Slide 15: 2020 Annualized Cash Flow Sensitivities
2020 Annualized Cash Flow Sensitivities CONSOLIDATED OPERATIONS EQUITY AFFILIATES? ($45-S65/BBL WTI) i $65/BBL Brent) a] Expect distributions from all equity affiliates at >$45/BBL Brent tO = Brent: ~$30-40MM for $1/BBL change CRUDE NATURAL GAS = Distributions may not be ratable each = Brent/ANS: ~$