Conocophillips · NYSE:COP
Conocophillips — Merger or Acquisition (September 2008)
14 slides from Conocophillips's merger presentation, Sep 8, 2008
Slide 1: Creating a long-term Australasian natural gas business
Creating a long-term Australasian natural gas business September 7, 2008
Slide 2: Cautionary Statement for Safe Harbor Provisions
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: ConocoPhillips and Origin Energy Transaction Summary
ConocoPhillips and Origin Energy to create long-term Australasia natural gas business Transaction Summary 50/50 participants in 42 TCF gross resource base* 50/50 Coal Bed Methane (CBM) - to - Liquefied Natural Gas (LNG) project Multi-train LNG development in Queensland, Australia Cash transaction US
Slide 4: Transaction Structure
Transaction Structure 50% interest Joint Venture Company 50/50 Governance US$5 B upfront AU$1.15 B carry Milestone payments (up to US$2B) Upstream CBM assets Upstream Origin Operated LNG Operations ConocoPhillips Operated LNG Marketing Joint ConocoPhillips Led* Project Director ConocoPhillips Second
Slide 5: Strategic Rationale
Strategic Rationale High-quality, material resource in OECD country Generates competitive long-term cash and earnings Complements oil portfolio weighting Creates additional Australia LNG hub serving Asia-Pacific Leverages ConocoPhillips strengths in project management, coal bed methane, LNG technolo
Slide 6: Origin's Leading CBM Position
Origin's Leading CBM Position Largest Australian CBM resource position Over 8.1 million Origin net acres Estimated 42 TCF gross resource* High-quality CBM resource Well characterized and appraised 3P base 28% in Bowen basin 72% in Surat basin June 2008 independent reserves assessment 1&2P 3P Conting
Slide 7: ConocoPhillips' Leading CBM Position
ConocoPhillips' Leading CBM Position Over 25 years' working experience in coal bed methane Current production and operations in San Juan and Uinta Basins (USA) and Horseshoe Canyon (Canada) Largest producer and acreage holder in San Juan Basin Conventional and CBM production (1.2 bcfed) 1.6 million
Slide 8: ConocoPhillips' LNG Expertise
ConocoPhillips' LNG Expertise Over 39 years' working experience in LNG Equity portfolio Kenai, Alaska Darwin, Australia QG3, Qatar (under construction) Pioneer in LNG technology - ConocoPhillips Optimized CascadeSM Process Licensed and/or operating in: Alaska Australia Angola Egypt Equatorial Guinea
Slide 9: Current Development Plan
Current Development Plan Upstream ~20,500 wells to support four LNG trains + domestic market over 40+ years Gas gathering and centralized gas processing and compression Dewatering and water treatment facilities Pipeline ~ 250-mile 30" transmission line to plant Liquefaction Location: Targeting Glads
Slide 10: Transaction Metrics
Domestic Sales 2 Trains (est.) 4 Trains (est.) Additional trains Transaction Metrics Resource exposure: 21 TCF / 3.5 BBOE** Estimated 2008 net bookable reserves: ~100 MMBOE*** Income and cash / barrel: Competitive in portfolio Impact on global portfolio mix: Increases gas mix * Excludes effects of p
Slide 11: Net Production and Capital
Net Production and Capital Four LNG Trains and Domestic * Net after royalty. Excludes effects of possible reversions. 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Origin 2.6 10.6 12.1 16.3 22.4 29.1 39.8 60.8 90.3 117.2 137.6 155.1 163.9 170.7 174 17
Slide 12: Financial Plan
Financial Plan Cash transaction US$5 billion upfront AU$1.15 billion (~US$1 billion) capex "carry" in support of first LNG train FID* Up to four US$500 million FID milestone payments Anticipate no impact to current dividend, capital, operating or multi-year share repurchase programs Debt-to-capital
Slide 13: Path Forward
Path Forward Origin Shareholder vote October 2008 If required as a result of an outstanding offer by BG to purchase all outstanding shares of Origin Energy stock Secure Australia Foreign Investment Review Board approval Closing expected in October
Slide 14: Creating Shareholder Value
Creating Shareholder Value Operating Excellence Capital Discipline & Project Execution Financial Optimization Shareholder Value Shareholder Value Portfolio of High-Quality Assets Strong portfolio enables long-term opportunities Operational excellence creates leading performance Disciplined capital p
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