Conocophillips · NYSE:COP
Conocophillips — Q3 2013 Earnings Presentation
25 slides from Conocophillips's earnings presentation, Oct 31, 2013
Slide 1: Third-Quarter 2013 Conference Call
Third‐Quarter 2013 CONFERENCE CALL Jeff Sheets, EVP, Finance & CFO Matt Fox, EVP, Exploration & Production Oct. 31, 2013
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: Third-Quarter 2013 Highlights
Third‐Quarter 2013 Highlights Operational Financial Strategic Total production of $1.8 B adjusted Closed sales of 1,514 MBOED1; in earnings, $1.47 Clyden and Phoenix line with guidance adjusted EPS Park for $1.3 B Successful $3.8 B CFO, Exploration completion of excluding working momentu
Slide 4: 3Q13 Performance – Adjusted Earnings
3Q13 Performance – Adjusted Earnings Highlights 3Q13 adjusted earnings increased 7% vs. 3Q12; 4% vs. 2Q13 Adjusted Strong liquids pricing environment in the quarter; weaker North Earnings 1,750 1,821 American gas realizations 1,700 ($MM) Production volumes in line with expectation 3Q13 Adjuste
Slide 5: 3Q13 Growth From Continuing Operations
3Q13 Growth From Continuing Operations MBOED Net growth +29 215 11 12 28 1,470 1,458 186 1,470 3Q12 Dispositions 3Q12 Libya Impact Downtime Decline Growth & Other 3Q13 Normalized for Dispositions 5
Slide 6: Growth In Higher-Margin Production
Growth In Higher‐Margin Production 3Q13 vs. 3Q12 Production 1 (MBOED) Lower 48 Liquids 54 Growth comes from areas with higher margins than the company average Canada Liquids 26 Alaska Liquids ‐15 Significant growth in North American liquids APME Liquids 1 Europe Liquids ‐13 North American and
Slide 7: 3Q13 Performance – Cash Margin Improvement
3Q13 Performance – Cash Margin Improvement Cash 28.84 Price 27.09 Normalized 26.52 26.43 Margin 25.62 25.62 ($/BOE) Cash Margin ($/BOE) 1 3Q12 2Q13 3Q13 3Q12 2Q13 3Q13 Average Price Normalized Based On 3Q12 Realized Price $65.62 $66.82 $69.68 ($/BOE) WTI $92 / Brent $110 / HH $2.80 Operating segment
Slide 8: YTD13 Performance – Company Cash Flow
YTD13 Performance – Company Cash Flow $B End 3Q13 • Debt of $21.7 B • Debt‐to‐capital ratio of 30% 3.2 11.8 0.1 11.9 2.5 1.2 4.4 3.9 2 2013 Beginning CFO excl. Working Capital Proceeds from Capital Dividends Debt & Other 3Q13 Ending Cash & Working Capital Dispositions Program Cash 1 Restricted Cash
Slide 9: Base Operations and Turnarounds On Plan
Base Operations and Turnarounds On Plan High‐Quality Legacy Base Production and Capability Major turnaround and tie‐in activity continued in 3Q13 Planned turnarounds completed in Alaska, Lower 48, Britannia and SNS Foster Creek turnaround completed in early October Turnarounds at Greater Eko
Slide 10: Development Programs Delivering Production Growth
Development Programs Delivering Production Growth High‐Margin Worldwide Development Program Inventory Alaska: Sourcing additional rigs to increase development activity in 2014 Lower 48: Achieved 500 MBOED production in 3Q13 Bakken: 11 drilling rigs at the end of 3Q13; production 34 MBOED, up 3
Slide 11: Major Projects in Execution
Major Projects in Execution High‐Margin Major Growth Projects in Execution Alaska: Progress continues on CD5, Shark Tooth and Greater Moose’s Tooth 1; site selection complete for AKLNG Oil sands: Six project phases in execution and on schedule Christina Lake Phase E startup in July Surmont 2
Slide 12: Exploration Momentum Continues
Exploration Momentum Continues 2013 Exploration Activity Deepwater GOM exploration West Greenland Barents Sea Gila and Deep Nansen wildcats currently North Sea drilling Canada Poland Tiber appraisal currently drilling China Lower 48 GOM Azerbaijan Apparent high bidder on 29 tracts in Banglad
Slide 13: 2013 Production Guidance – Unchanged Except For Libya
2013 Production Guidance – Unchanged Except For Libya 4Q13 guidance excludes Libya (50 MBOED) Libya Continuing Operations 1 1Q13 2Q13 3Q13 4Q13 FY13 MBOED 1Q13 2Q13 3Q13 4Q13 FY13 Continuing Operations 1,555 1,510 1,470 1,485 – 1,525 1,505 – 1,515 Discontinued Operations 41 42 44 15 – 45 35 – 45 Tot
Slide 14: 2013 – 2014: Positioned for Growth
2013 – 2014: Positioned for Growth Operational Financial Strategic Significant Maintain strong Delivering on value inflection point balance sheet proposition Visible results from Demonstrate Complete exploration margin announced asset programs improvement sales Committed to safe Focu
Slide 15: Q&A
ConocoPhillips Q&A
Slide 16: Appendix
ConocoPhillips APPENDIX
Slide 17: Alaska
Alaska Production (MBOED) Realized Prices Liquids Gas Sales 3Q12 4Q12 1Q13 2Q13 3Q13 222 218 197 Crude 176 178 $107 $107 $111 $106 $111 ($/Bbl) 3Q12 4Q12 1Q13 2Q13 3Q13 Adjusted Earnings ($MM) Highlights 3Q13 production impacted by planned 595 585 turnaround activity at Prudhoe and 535 543 Kuparuk
Slide 18: Lower 48 and Latin America
Lower 48 and Latin America Production (MBOED) Realized Prices Liquids Gas 475 475 491 499 3Q12 4Q12 1Q13 2Q13 3Q13 462 Crude $90 $89 $94 $94 $100 ($/Bbl) NGL $31 $31 $30 $29 $33 ($/Bbl) Nat Gas $2.64 $3.24 $3.19 $3.85 $3.39 ($/Mcf) 3Q12 4Q12 1Q13 2Q13 3Q13 Adjusted Earnings ($MM) Highlights Produc
Slide 19: Canada
Canada Production (MBOED) Realized Prices Liquids Gas 281 283 3Q12 4Q12 1Q13 2Q13 3Q13 277 271 274 Crude $77 $78 $73 $81 $92 ($/Bbl) Bitumen $57 $48 $39 $56 $76 ($/Bbl) Nat Gas $2.05 $2.92 $2.89 $3.28 $2.42 ($/Mcf) 3Q12 4Q12 1Q13 2Q13 3Q13 Adjusted Earnings ($MM) Highlights 3Q13 production flat vs
Slide 20: Europe
Europe Production (MBOED) Realized Prices Liquids Gas Sales 3Q12 4Q12 1Q13 2Q13 3Q13 216 207 Crude 191 $110 $112 $114 $103 $112 173 176 ($/Bbl) Nat Gas $8.87 $10.56 $10.81 $10.26 $10.48 ($/Mcf) 3Q12 4Q12 1Q13 2Q13 3Q13 Adjusted Earnings ($MM) Highlights Resumption of production from Greater 388 Ek
Slide 21: Asia Pacific and Middle East
Asia Pacific and Middle East Production (MBOED) Realized Prices 1 Liquids Gas Sales 322 318 324 317 306 3Q12 4Q12 1Q13 2Q13 3Q13 Crude $105 $103 $109 $98 $105 ($/Bbl) Nat Gas $10.64 $10.15 $11.20 $10.62 $10.81 ($/Mcf)2 3Q12 4Q12 1Q13 2Q13 3Q13 Adjusted Earnings ($MM) Highlights 918 871 857 Segment
Slide 22: 3Q13 Performance – Company Cash Flow
3Q13 Performance – Company Cash Flow $B End 3Q13 1.5 • Debt of $21.7 B • Debt‐to‐capital ratio of 30% 3.8 0.2 4.4 0.1 0.9 4.0 3.9 3Q13 Beginning CFO excl. Working Capital Proceeds from Capital Dividends Debt & Other 2 3Q13 Ending Cash & Working Capital Dispositions Program Cash Short‐Term Investment
Slide 23: Non-GAAP Reconciliations
Non‐GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings ($ Millions) 2012 2013 3Q 2Q 3Q Consolidated Earnings 1,798 2,050 2,480 Adjustments: Net (gain)/loss on asset sales (310) (47) (749) Tax loss carryforward realization ‐ (22) ‐ International tax law changes 167 ‐ ‐ Separation co
Slide 24: Non-GAAP Reconciliations
Non‐GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings ($ Millions) ($ Millions) 2012 2013 2012 2013 3Q 2Q 3Q 3Q 2Q 3Q Alaska Asia Pacific and Middle East Earnings 535 682 494 Earnings 669 1,017 741 Adjustments: Adjustments: Pending c
Slide 25: Non-GAAP Reconciliations
Non‐GAAP Reconciliations Cash Margin per BOE Price Normalized Cash Margin per BOE 1 Operating Segments Operating Segments 2012 2013 2012 2013 3Q 2Q 3Q 3Q 2Q 3Q $ Millions, except per BOE amounts Cash Margin 3,465 3,723 3,900 Net Income Attributable to ConocoPhillips 1,798 2,050 2,480 Price adjustmen