ConocoPhillips · NYSE:COP
ConocoPhillips — Q4 2017 Earnings Presentation
19 slides from ConocoPhillips's earnings presentation, Feb 1, 2018
Slide 1: 4Q17 Earnings Conference Call
4Q17 Earnings Conference Call FEBRUARY 1, 2018
Slide 2: Cautionary Statement
Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations, operating results or the industries or markets in which
Slide 3: Ryan Lance, Chairman & CEO
ConocoPhillips RYAN LANCE Chairman & CEO
Slide 4: Delivering on Our Disciplined, Returns-Focused Value Proposition
Delivering on Our Disciplined, Returns-Focused Value Proposition 2017: Full Activation of our Plan 2018: Execute the Plan, Plus ► Portfolio reset; ~$16B dispositions; ► Maintain capital scope; Portfolio strong organic RRR1 bolt-on transaction in Alaska ► CFO2 > capital by $2.5B; improving ► Focus on
Slide 5: Don Wallette, EVP, Finance, Commercial & CFO
D O N WA L L E T T E EVP, Finance, Commercial & CFO
Slide 6: Strong Momentum on Improving Profitability
Strong Momentum on Improving Profitability Highlights • Full-year 2017 adjusted earnings of $0.7B 540 Adjusted • 4Q17 adjusted earnings benefited from improved Earnings realized prices, higher underlying production1, ($MM) 198 and lower depreciation expense • Focused on increasing returns (318) 4Q17
Slide 7: Strong Financial Position Entering 2018
Strong Financial Position Entering 2018 4Q17 $B 4Q17 Marker Prices • Brent $61.39/BBL • WTI $55.35/BBL • Henry Hub $2.93/MMBTU 0.1 0.1 1.3 2.5 1.5 0.3 1.0 Includes Includes $0.2B $0.3B from from L48 Ecuador acreage settlement acquisitions 9.6 8.2 4Q17 Beginning CFO Excluding Total Working Dispositio
Slide 8: Focused on Free Cash Flow Generation and Delivering Priorities
Focused on Free Cash Flow Generation and Delivering Priorities $B 2017 Marker Prices • Brent $54.27/BBL • WTI $50.90/BBL • Henry Hub $3.11/MMBTU $2.5B 10.9 FREE CASH FLOW 3.0 • CFO1 exceeded capital expenditures and Buybacks investments by $2.5B 7.1 13.9 • Generated cash proceeds from asset sales 4.
Slide 9: Al Hirshberg, EVP, Production, Drilling & Projects
AL HIRSHBERG EVP, Production, Drilling & Projects
Slide 10: 2017 Preliminary Reserve Replacement
2017 Preliminary Reserve Replacement 200% organic reserve replacement ratio (1,904) (168%) 117% Total RRR replacement from net additions 431 6,424 Canada 67% 605 518 Lower 48 33% 5,038 4,520 YE 2016 Dispositions YE 2016 Excluding 2017 Production¹ Net Additions Market Factors YE 2017 Reserves Disposi
Slide 11: 2017 Operating Highlights
2017 Operating Highlights • Strong operational and safety performance • Delivered 3% underlying production growth1 for $4.6B of capital; 19% growth on a per debt-adjusted share basis • Successfully activated Lower 48 Big 3 growth engine • 236 MBOED in 4Q17 vs 214 MBOED in 4Q16; 10% growth • $0.2B Lo
Slide 12: What to Watch For in 2018 – Deliver with Discipline
What to Watch For in 2018 – Deliver with Discipline Production (MBOED) • $5.5B capital plan unchanged 1,356 ~13% PRODUCTION PER DEBT- • Expect 2018 full-year underlying production per debt-adjusted ADJUSTED share growth2 of ~13% vs. 2017 191 SHARE GROWTH2 Dispositions1 1,195 - 1,235 • 1Q18 productio
Slide 13: Question & Answer Session
ConocoPhillips Question & Answer Session
Slide 14: Appendix
Appendix
Slide 15: 2017 Performance – Company Cash Flow
2017 Performance – Company Cash Flow $B 2017 Marker Prices • Brent $54.27/BBL • WTI $50.90/BBL • Henry Hub $3.11/MMBTU 13.9 7.9 7.1 0.1 4.6 1.3 0.2 3.0 8.2 3.7 2017 Beginning CFO Excluding Total Working Disposition Debt Capital Dividends Repurchase of Other 2017 Ending Cash & Short- Operating Capita
Slide 16: 2018 Production Guidance
2018 Production Guidance Analyst and Investor Meeting 2018 Guidance 2018 Guidance 1,355 1,356 185 Dispositions 191 3 1,195 – 1,235 1,180 – 1,220 20 1,150 1,165 2017 2018E AIM 2017 2018E Production (MBOED) Production (MBOED) 2017 Dispositions1 Dispositions in Progress1 Underlying Production1 Closed a
Slide 17: Full-Year 2018 Guidance
Full-Year 2018 Guidance • Full-year 2018 production: 1,195 – 1,235 MBOED • 1Q18 production: 1,180 – 1,220 MBOED • Adjusted operating costs: $5.7B • Capital expenditures: $5.5B • DD&A: $5.8B • Adjusted corporate segment net loss: $1.0B • Exploration dry hole and leasehold impairment expense: $0.2B Ba
Slide 18: 2018 Annualized Net Income Sensitivities
2018 Annualized Net Income Sensitivities Crude • Brent/ANS: $105-125MM for $1/BBL change • WTI: $45-55MM for $1/BBL change • WCS¹: $10-15MM for $1/BBL change • Does not incorporate contingent payment of CA$6MM quarterly for every CA$1 WCS price above CA$52/BBL $45-$65/BBL North American NGL WTI • Re
Slide 19: 2018 Annualized Cash Flow Sensitivities
2018 Annualized Cash Flow Sensitivities Consolidated Operations Equity Affiliates1 ($45-$65/BBL WTI) ($50-$65/BBL WTI) Crude: • Expect distributions from all equity affiliates at >$50/BBL • Brent/ANS: ~$100-110MM for $1/BBL change • $1/BBL movement in Brent: ~$30-40MM • WTI: ~$55-65MM for $1/BBL cha