ConocoPhillips · NYSE:COP
ConocoPhillips — Q1 2012 Earnings Presentation
23 slides from ConocoPhillips's earnings presentation, Apr 23, 2012
Slide 1: 1st Quarter 2012 Conference Call
1st Quarter 2012 Conference Call April 23, 2012 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 opera
Slide 2: First-Quarter Overview
First-Quarter Overview Adjusted Earnings $2.02 Adjusted EPS / $3.23 CFPS $2.6 B 1.64 MMBOED production Cash from Operations 91% refining utilization $4.2 B $1.9 B in share repurchases Spinoff concludes May 1, 2012 Return on Capital Employed 12% 2
Slide 3: Company Adjusted Earnings
Company Adjusted Earnings 1Q12 vs. 1Q11 $MM 75 66 36 2,634 2,607 1Q11 Adjusted E&P R&M Other 1Q12 Adjusted Earnings Earnings 3
Slide 4: E&P Production
E&P Production 1Q12 vs. 1Q11 MBOED 47 52 22 20 18 1,702 1,637 1Q11 Operations Peng Lai Dispositions Russia NA Gas 1Q12 4
Slide 5: E&P Adjusted Earnings
E&P Adjusted Earnings 1Q12 vs. 1Q11 $MM 156 225 3 2,197 2,131 1Q11 Adjusted Prices & Other Sales Volumes Costs & Other 1Q12 Adjusted Earnings Market Impacts Earnings Adjusted 1Q12 1Q12 vs. Earnings 1Q11 1Q12 vs.1Q11 Realized Prices 1Q11 1Q12 1Q11 U.S. 712 870 158 Crude Oil/NGL $/BBL 91.55 101.56 10.
Slide 6: E&P per BOE Metrics
E&P per BOE Metrics E&P Income per BOE E&P Cash Contribution per BOE $ / BOE $ / BOE 30 30 25 25 20 20 15 15 26.29 29.35 26.98 27.27 25.04 10 10 14.34 17.09 15.49 15.99 14.31 5 5 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Based on total E&P BOE production. Income adjusted to exclude certa
Slide 7: R&M Adjusted Earnings
R&M Adjusted Earnings 1Q12 vs. 1Q11 $MM 48 29 37 18 480 444 1Q11 Adjusted Margins & Other Volumes Operating Other 1Q12 Adjusted Earnings Market Impacts Costs Earnings Adjusted 1Q12 vs. Realized 1Q12 vs. Earnings 1Q11 1Q12 1Q11 Margins $/BBL 1Q11 1Q12 1Q11 U.S. 400 365 (35) U.S. 10.16 10.87 0.71 Intl
Slide 8: R&M per BBL Metrics
R&M per BBL Metrics R&M Income per BBL R&M Cash Contribution per BBL $ / BBL $ / BBL 5 5 4 4 3 3 2 2 1 1 2.49 3.32 4.79 1.50 2.62 1.74 2.58 4.08 0.70 1.80 0 0 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Based on total petroleum product sales. Income adjusted to exclude certain non-core earning
Slide 9: Other Segments Adjusted Earnings
Other Segments Adjusted Earnings 1Q12 vs. 1Q11 $MM 1Q11 1Q12 218 193 73 93 (265) (304) Chemicals Midstream Corporate 9
Slide 10: Company Cash Flow
Company Cash Flow 1Q12 $B 1.1 4.4 4.2 5.8 6.1 2.7 Restricted Cash 0.1 6.4 4.2 1Q12 CFO Proceeds Capital Shareholder Other PSX Senior 1Q12 Beginning from Program Distributions Notes Ending Cash, Cash & Short- Dispositions Short-term term Investments Investments* & Restricted Cash** * Includes cash of
Slide 11: Capital Structure
Capital Structure 100 40 50 80 40 30 69 28 66 67 PSX 60 24 Debt 30 30 23 22* 26 20 25 25* 40 20 10 20 10 0 0 0 '10 '11 1Q12 '10 '11 1Q12 '10 '11 1Q12 Equity $B Balance Sheet Debt-to-Capital Debt $B Ratio % * Excludes $5.8 billion of PSX senior debt 11
Slide 12: ROCE/CROCE
ROCE/CROCE Return on Capital Employed Cash Return on Capital Employed 30% 30% 25% 25% 20% 20% 15% 15% 21% 24% 24% 21% 20% 10% 10% 12% 15% 16% 13% 12% 5% 5% 0% 0% 1Q11 2Q11 3Q11 4Q11 1Q12 1Q11 2Q11 3Q11 4Q11 1Q12 Adjusted to exclude LUKOIL. 12
Slide 13: Outlook
Outlook ConocoPhillips – E&P • Operations • Exploration and major projects Phillips 66 – R&M, Midstream, Chemicals • Operations • Major projects 13
Slide 14: Appendix
ConocoPhillips Appendix 14
Slide 15: 1Q12 vs. 4Q11
1Q12 vs. 4Q11 Total Company Adjusted Earnings ($MM) E&P Adjusted Earnings ($MM) 69 31 256 20 18 160 2,349 2,667 2,607 2,131 4Q11 Adjusted Earnings Prices, Margins & Other Volumes Other 1Q12 Adjusted Earnings 4Q11 Adjusted Earnings Prices & Other Market Sales Volumes Other 1Q12 Adjusted Earnings Mark
Slide 16: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations Millions of Dollars Except as Indicated 1st Quarter 2012 2011 Consolidated Earnings $ 2,937 3,028 Adjustments: Net gain on asset sales (987) (394) Impairments 562 - Repositioning costs 95 - Adjusted earnings $ 2,607 2,634 Earnings per share of common stock (dollars) $ 2.
Slide 17: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations Millions of Dollars 1st Quarter 2012 2011 R&M Earnings (loss) $ 452 482 Adjustments: Net gain on asset sales (50) (2) Impairments 42 - Adjusted earnings $ 444 480 U.S. R&M Earnings $ 415 402 Adjustment: Net gain on asset sales (50) (2) Adjusted earnings $ 365 400 Non U.S
Slide 18: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations Millions of Dollars Except as Indicated 4th Quarter 2011 Consolidated Earnings $ 3,390 Adjustments: Impairments 649 Net gain on asset sales (1,526) Cancelled projects 28 Bohai Bay incidents 101 Repositioning costs 25 Adjusted earnings $ 2,667 E&P Earnings $ 1,604 Adjustm
Slide 19: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations 1Q11 2Q11 3Q11 4Q11 1Q12 1 GAAP E&P Net Income - $MM 2,352 2,524 1,762 1,604 2,548 GAAP E&P Net Income1 - $ / BOE 15.35 16.91 12.45 10.92 17.10 non-core earnings impacts - $MM (gains) and losses on asset dispositions (155) (27) 280 15 (937) asset impairments / cancelled
Slide 20: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations 1Q11 2Q11 3Q11 4Q11 1Q12 1 GAAP R&M Net Income - $MM 482 766 789 1,714 452 GAAP R&M Net Income1 - $ / BBL 1.75 2.67 2.69 5.99 1.83 non-core earnings impacts - $MM (gains) and losses on asset dispositions (2) (26) 74 (1,541) (50) asset impairments / cancelled projects - -
Slide 21: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations ROCE 1Q11 2Q11 3Q11 4Q11 1Q12 Numerator ($MM) Net income 3,042 3,419 2,631 3,410 2,955 After-tax interest expense 170 160 153 148 136 GAAP ROCE earnings 3,212 3,579 2,784 3,558 3,091 Non-core earnings impacts (394) 1 837 (723) (330) Adjusted earnings 2,818 3,580 3,621 2,
Slide 22: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations CROCE 1Q11 2Q11 3Q11 4Q11 1Q12 Numerator ($MM) EBIDA1 5,282 5,654 4,653 5,477 4,929 Non-core earnings impacts (394) 1 837 (723) (330) Adjusted EBIDA 4,888 5,655 5,490 4,754 4,599 Adustment to exclude LUKOIL (2) - - - - Adjusted EBIDA excluding LUKOIL 4,886 5,655 5,490 4,
Slide 23: COP Non-GAAP Reconciliations
COP Non-GAAP Reconciliations E&P - ROCE Chemicals - ROCE 2011 1Q12 2011 1Q12 Numerator ($MM) Numerator ($MM) Net income 8,303 2,563 Net income 745 218 After-tax interest expense 79 18 After-tax interest expense - - GAAP ROCE earnings 8,382 2,581 GAAP ROCE earnings 745 218 Non-core earnings impacts 1