Conocophillips · NYSE:COP
Conocophillips — Q1 2014 Earnings Presentation
17 slides from Conocophillips's earnings presentation, May 1, 2014
Slide 1: 1Q14 Conference Call
1Q14 CONFERENCE CALL Jeff Sheets, EVP, Finance & CFO Matt Fox, EVP, Exploration & Production May 1, 2014
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 or operating results. Actual outcomes and results may di
Slide 3: Jeff Sheets, EVP, Finance & CFO
Jeff Sheets, EVP, Finance & CFO
Slide 4: 1Q14 Highlights
1Q14 Highlights Operational Financial Strategic • 1,530 MBOED continuing • $2.3 B adjusted earnings; • Achieved production and operations production, $1.81 adjusted EPS cash margin growth excluding Libya • Significant growth from • $4.4 B CFO, excluding • Expanding inventory of unconventionals and $
Slide 5: 1Q14 Performance – Adjusted Earnings
1Q14 Performance – Adjusted Earnings Highlights • Strong operational performance and continued cash margin improvement Adjusted • Improved pricing environment and higher North Earnings 2,253 American natural gas and bitumen realizations ($MM) 1,752 1,738 • Earnings benefited ~$100 MM from marketing
Slide 6: 1Q14 Production From Continuing Operations
1Q14 Production From Continuing Operations MBOED PRODUCTION 3% GROWTH 41 11 6 Lower 48 Liquids 50 Canada Liquids 11 APME Gas 9 Europe Liquids 5 1,506 N.A. Gas -14 1,530 1,495 Alaska Liquids -19 Other -1 Total 41 1 1 1Q13 Dispositions 1Q13 Normalized Downtime Net Growth 1Q14 1 for Dispositions 1 Excl
Slide 7: 1Q14 Performance – Cash Margin Improvement
1Q14 Performance – Cash Margin Improvement 5% MARGIN GROWTH ATTRIBUTED TO PORTFOLIO SHIFT2 Cash Price Margin 32.07 Normalized 30.24 29.07 28.88 ($/BOE) 26.80 Cash Margin 26.80 ($/BOE)1 1Q13 4Q13 1Q14 1Q13 4Q13 1Q14 Average Price Normalized Based On 1Q13 Realized Price $68.57 $65.41 $71.21 ($/BOE) WT
Slide 8: 1Q14 Performance – Company Cash Flow
1Q14 Performance – Company Cash Flow $B 0.6 1Q14 1.3 • Debt of $21.2 B 4.4 • Debt-to-capital ratio of 28% 3.9 0.9 0.3 7.7 6.5 2014 Beginning CFO Excluding FCCL FCCL Distribution Working Capital Capital Dividends Debt 1Q14 Ending Cash Cash & Short-Term Distribution Expenditures & & Other² & Short-Ter
Slide 9: Matt Fox, EVP, Exploration & Production
Matt Fox, EVP, Exploration & Production
Slide 10: Lower 48 and Latin America First-Quarter Highlights
Lower 48 and Latin America First-Quarter Highlights • 1Q14 production of 507 MBOED • 16% increase in crude oil production vs. 1Q13; 8% increase vs. 4Q13 • Achieved a new peak daily production rate of 163 MBOED in Eagle Ford; 54 MBOED in Bakken Bakken • Drilling and testing continues in the Delaware
Slide 11: Canada First-Quarter Highlights
Canada First-Quarter Highlights • 1Q14 production of 280 MBOED • 68% complete at Surmont 2 • Successfully executed western Canada winter drilling program Northwest Territories • Christina Lake Phase E approaching full capacity West Central Alberta • Foster Creek Phase F on track for first production
Slide 12: Alaska First-Quarter Highlights
Alaska First-Quarter Highlights • 1Q14 production of 200 MBOED • Additional drilling rig added at Kuparuk in January • CD5 on track for late-2015 startup • Progress continues at Drill Site 2S, GMT1 and 1H NEWS Kenai LNG • Kenai LNG Plant exports resume; LNG contract signed for 6 cargoes in 2014 KENA
Slide 13: Europe First-Quarter Highlights
Europe First-Quarter Highlights • 1Q14 production of 220 MBOED • Jasmine averaged 25 MBOED; East Irish Sea continues to ramp up • Ekofisk South drilling program continues; 4 wells currently on production Poland • Eldfisk II onshore commissioning nearing completion; Major Turnaround Activity heavy li
Slide 14: Asia Pacific and Middle East First-Quarter Highlights
Asia Pacific and Middle East First-Quarter Highlights • 1Q14 production of 319 MBOED • Qatargas Train 7 planned turnaround completed ahead of schedule • Achieved first gas in April at South Belut Project in Indonesia SNP • SNP achieved first oil in February; Gumusut FPS progressing toward first oil
Slide 15: 2014 Production Guidance: Continuing Operations
2014 Production Guidance: Continuing Operations Annual Planned Turnarounds Major Turnarounds 2Q14 • J-Area 3Q14 • Prudhoe Bay • Surmont • Britannia Area • East Irish Sea • Southern North Sea • Bayu-Undan 1Q14 2Q14 3Q14 4Q14 FY14 Continuing Operations 1,530 1,490 – 1,540 1,435 – 1,485 1,590 – 1,640 1
Slide 16: What to Watch in 2014
What to Watch in 2014 • Major project startups expected at Gumusut, Foster Creek Phase F, Kebabangan and Britannia LTC • Growing production in Eagle Ford, Bakken and Permian • Pilot testing and appraisal in the Lower 48 unconventionals • Testing acreage in Poland and exploration drilling in Colombia
Slide 17: ConocoPhillips Q&A
ConocoPhillips SAFETY North Sea Margin Gro. REPUTATION set FOP Portioiic Optimization GROWTH innovation ENERGY technology BAKKEN SPIRIT Values COLLABORATION Ekofisk South Q&A