ConocoPhillips · NYSE:COP

ConocoPhillips — Q2 2013 Earnings Presentation

26 slides from ConocoPhillips's earnings presentation, Aug 1, 2013

  1. Slide 1: Second-Quarter 2013 Conference Call

    Second-Quarter 2013 CONFERENCE CALL Ryan Lance, Chairman & CEO Jeff Sheets, EVP, Finance & CFO Matt Fox, EVP, Exploration & Production Aug. 1, 2013

  2. 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

  3. Slide 3: CEO Comments

    ConocoPhillips CEO COMMENTS

  4. Slide 4: Second-Quarter 2013 Highlights

    Second-Quarter 2013 Highlights Operational Financial Strategic  Total production of  $1.8 B adjusted  Progressing asset 1,552 MBOED1; earnings, $1.41 sales; high level of raising full-year adjusted EPS exploration activity guidance  Delivered on base  $4.4 B CFO,  Capital outlook maintenance a

  5. Slide 5: 2Q13 Performance – Adjusted Earnings

    2Q13 Performance – Adjusted Earnings  2Q13 adjusted earnings increased 17% vs. 2Q12; flat vs. 1Q13  Adjusted EPS up 19% vs. 2Q12; includes the impact from 2012 share repurchases  2Q13 adjusted earnings benefitted from margin enhancements due to higher-value liquids  Average realized price flat v

  6. Slide 6: 2Q13 Performance – Production Growth

    2Q13 Performance – Production Growth 1 1 Discontinued operations variance of 11 MBOED reflects downtime and decline. 2 Reflects production from Algeria and Nigeria. 6

  7. Slide 7: Growth From Higher-Margin Production

    Growth From Higher-Margin Production  Growth comes from areas with higher margins than the company average  Significant growth in North American liquids  Asia Pacific and Middle East liquids growth mainly from China and Malaysia  Normal field decline impacts in Alaska, Europe and North American

  8. Slide 8: 2Q13 Performance – Cash Margin Improvement

    2Q13 Performance – Cash Margin Improvement Operating segments only. 1 Price normalized using published sensitivities. 8

  9. Slide 9: Lower 48 and Latin America

    Lower 48 and Latin America Highlights  Production growth continues  Total production up 11% vs. 2Q12; 3% vs. 1Q13  Liquids increased 20% vs. 2Q12  2Q13 production from Eagle Ford, Bakken and Permian of 203 MBOED  Up 47% vs. 2Q12  2Q13 adjusted earnings negatively impacted by Thorn dry hole ~$7

  10. Slide 10: Canada

    Canada Highlights  2Q13 production flat vs. 2Q12  Liquids production up 12%  2Q13 production impacted by planned downtime at Christina Lake  2Q13 benefits from stronger pricing environment 10

  11. Slide 11: Alaska

    Alaska Highlights  2Q13 production impacted by turnaround activity at Prudhoe and Kuparuk and normal field decline  Adjusted earnings impacted by lift timing differences  1Q13 adversely impacted  2Q13 favorably impacted  Evaluating increased investment due to SB21 11

  12. Slide 12: Asia Pacific and Middle East

    Asia Pacific and Middle East Highlights  Production increased 20% year over year  Bohai resumption and Panyu growth project in China  Gumusut early production in Malaysia  2Q13 adjusted earnings negatively impacted by weakening prices  No significant timing impact in 2Q13 1 Realized prices are

  13. Slide 13: Europe

    Europe Highlights  2Q13 production impacted by major planned downtime at Greater Ekofisk Area and J-Area  Production remains shut in at Calder Field in East Irish Sea (~10 MBOED)  2Q13 adjusted earnings negatively impacted by lift timing and prices 13

  14. Slide 14: YTD13 Performance – Company Cash Flow

    YTD13 Performance – Company Cash Flow $B 1 Beginning cash and restricted cash include cash and cash equivalents of $3.62 B and restricted cash of $0.75 B. 2 Includes discontinued operations. 3 Ending cash and short-term investments include cash and cash equivalents of $3.9 B and short-term investmen

  15. Slide 15: 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 progressing on plan  Turnarounds at Greater Ekofisk Area completed ahead of schedule  J-Area turnaround completed  Lower 48 planned turnarounds successfully completed

  16. Slide 16: Development Programs Continue Strong Growth

    Development Programs Continue Strong Growth High-Margin Worldwide Development Program Inventory  Legacy conventional development programs on track  Lower 48: Activity and production continues to grow  Bakken: 11 drilling rigs at the end of 2Q13; production 30 MBOED, up 15% vs. 2Q12; up 3% vs. 1Q1

  17. Slide 17: Several Major Project Startups By Year End

    Several Major Project Startups By Year End High-Margin Major Growth Projects in Execution  Oil sands progressing on schedule  Seven project phases in execution  Christina Lake Phase E startup in July  Surmont 2 now 40% complete  Alaska: CD5 on track; progressing additional satellite projects 

  18. Slide 18: Growing Exploration Inventory and Drilling Activity

    Growing Exploration Inventory and Drilling Activity 2013 Exploration Activity  Deepwater GOM exploration  Ardennes well drilling  Gila: Acquired 20% working interest; currently drilling well  Tiber and Deep Nansen wells to spud 3Q13  Australia: Browse and Canning basins  Proteus-1 Browse explo

  19. Slide 19: 2013 Production Outlook – Raising Guidance

    2013 Production Outlook – Raising Guidance 1 Includes production for Cedar Creek Anticline. 19

  20. Slide 20: 2013 – 2014: Positioned for Success

    2013 – 2014: Positioned for Success 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  Foc

  21. Slide 21: Q&A

    ConocoPhillips Q&A

  22. Slide 22: Appendix

    ConocoPhillips APPENDIX

  23. Slide 23: 2Q13 Performance – Company Cash Flow

    2Q13 Performance – Company Cash Flow 1 Includes discontinued operations. 2 Ending cash and short-term investments include cash and cash equivalents of $3.9 B and short-term investments of $0.1 B. 23

  24. Slide 24: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings ($ Millions) 2012 2013 2Q 1Q 2Q Consolidated Earnings 2,267 2,139 2,050 Adjustments: Impairments 30 - - Net (gain)/loss on asset sales (285) (279) (47) Bohai Bay incidents 89 - - Tax loss carryforward realization - 21 (22) Defe

  25. Slide 25: Non-GAAP Reconciliations

    Non-GAAP Reconciliations Reconciliation of Earnings to Adjusted Earnings Reconciliation of Earnings to Adjusted Earnings ($ Millions) ($ Millions) 2012 2013 2012 2013 2Q 1Q 2Q 2Q 1Q 2Q Alaska Asia Pacific and Middle East Earnings 551 543 682 Earnings 772 918 1,017 Adjustments: Adjustments: Pending c

  26. Slide 26: 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 2Q 1Q 2Q 2Q 1Q 2Q $ Millions, except per BOE amounts Cash Margin 3,281 3,712 3,723 Net Income Attributable to ConocoPhillips 2,267 2,139 2,050 Price adjustmen

ConocoPhillips — Q2 2013 Earnings Presentation on 6ix