Your SlideShare is downloading. ×
0
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Q1 2009 Earning Report of Conocophillips
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Q1 2009 Earning Report of Conocophillips

461

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
461
On Slideshare
0
From Embeds
0
Number of Embeds
1
Actions
Shares
0
Downloads
6
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. 1st Quarter Earnings Conference Call April 23, 2009
  • 2. CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 The following presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. You can identify our forward-looking statements by words such as “anticipates,” “expects,” “intends,” “plans,” “projects,” “believes,” “estimates,” and similar expressions. Forward-looking statements relating to ConocoPhillips’ operations are based on management’s expectations, estimates and projections about ConocoPhillips and the petroleum industry in general on the date these presentations were given. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based upon assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Factors that could cause actual results or events to differ materially include, but are not limited to, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas; unsuccessful exploratory activities; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions, as well as changes in tax, environmental and other laws applicable to ConocoPhillips’ business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting ConocoPhillips’ business generally as set forth in ConocoPhillips’ filings with the Securities and Exchange Commission (SEC), including our Form 10-K for the year ending December 31, 2008, as updated by our subsequent periodic and current reports on Forms 10-Q and 8-K, respectively. ConocoPhillips is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. This presentation includes certain non-GAAP financial measures, as indicated. Such non-GAAP measures are intended to supplement, not substitute for, comparable GAAP measures. Investors are urged to consider closely the comparable GAAP measure and the reconciliation to that measure provided in the Appendix or on our website at www.conocophillips.com. In this presentation, peer group “non-core earnings impacts” include publicly- disclosed gains and losses on asset dispositions, asset impairments, changes in litigation accruals, write-offs, uninsured losses, and restructuring charges, in each case, to the extent such items are in excess of >$249 million as well as all cumulative effect of accounting changes and discontinued operations, regardless of amount. Page 2
  • 3. First-Quarter Overview First-Quarter Overview $0.8 Billion in Earnings Earnings $0.8 B 2.36 MMBOED Production Cash From Operations 81% Refining Utilization $1.9 B Debt-to-Cap Lower Operating Costs 34% Page 3
  • 4. Total Company Earnings Total Company Earnings 1Q09 vs. 4Q08 1Q09 vs. 4Q08 $MM 1,669 1,914 125 516 840 310 264 4Q Adjusted Prices, Margins & Volumes Operating Costs Taxes Other 1Q09 Earnings* Other Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 4
  • 5. Total Company Cash Flow Total Company Cash Flow 1Q09 1Q09 $MM 1,924 3,147 Beginning 755 Cash 696 81 1,885 802 Beginning Cash Debt Increase Capital Program Dividends Other Ending Cash and CFO Balance Page 5
  • 6. Debt Ratio Debt Ratio 100 40 50 90 84 80 40 29.4 30 27.5 27.1 34 33 34 60 30 56 56 54 21.7 26 24 20 44 17.8 19 19 40 15.0 20 35 12.5 10 20 10 0 0 0 '03 '04 '05 '06 '07 '081Q09 '03 '04 '05 '06 '07 '08 1Q09 '03 '04 '05 '06 '07 '08 1Q09 Equity $B Balance Sheet Debt-to-Capital Debt $B Ratio % Page 6
  • 7. Exploration & Production Exploration & Production 1Q09 vs. 4Q08 1Q09 vs. 4Q08 Lower crude oil and natural gas prices Reduced operating costs Higher production volumes Page 7
  • 8. Total Company Production Total Company Production 1Q09 vs. 4Q08 1Q09 vs. 4Q08 MBOED 439 8 9 17 7 31 2,364 1,867 1,925 4Q08 E&P Indonesia Russia Vietnam Australia Other 1Q09 E&P LUKOIL 1Q09 Page 8
  • 9. E&P Earnings E&P Earnings 1Q09 vs. 4Q08 1Q09 vs. 4Q08 $MM 1,015 73 153 1,392 193 50 700 4Q08 Adjusted Prices & Other Sales Volumes Operating Costs Production Taxes Other 1Q09 Earnings* Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 9
  • 10. Refining & Marketing Refining & Marketing 1Q09 vs. 4Q08 1Q09 vs. 4Q08 Lower worldwide marketing margins Reduced refining market capture Decreased capacity utilization Page 10
  • 11. R&M Earnings R&M Earnings 1Q09 vs. 4Q08 1Q09 vs. 4Q08 $MM 325 753 251 42 14 205 4Q08 Adjusted Prices, Margins & Volumes Operating Costs Other 1Q09 Earnings* Other Market Impacts * See Appendix for reconciliation of Adjusted Earnings to Earnings Page 11
  • 12. Other Segments Other Segments 1Q09 vs. 4Q08 1Q09 vs. 4Q08 LUKOIL Investment ($48MM vs. $0MM*) Midstream ($123MM vs. $69MM) Chemicals ($23MM vs. $-6MM) Emerging Businesses ($0MM vs. $60MM*) Corporate ($-259MM vs. $-354MM*) * Amounts represent Adjusted Earnings. See Appendix for reconciliation of Page 12 Adjusted Earnings to Earnings.
  • 13. E&P per BOE Metrics E&P per BOE Metrics E&P Income per BOE E&P Cash Contribution per BOE $ / BOE $ / BOE 35.00 25.00 30.00 20.00 25.00 15.00 20.00 30.70 15.00 10.00 18.44 22.96 22.35 20.60 14.79 10.00 13.76 12.19 15.55 15.07 9.97 5.00 11.62 5.00 7.08 4.04 0.00 0.00 2003 2004 2005 2006 2007 2008 1Q09 2003 2004 2005 2006 2007 2008 1Q09 Peer Group Based on total E&P BOE production. All companies Income adjusted to exclude certain non-core earnings impacts (based solely on publicly available information). Cash Contribution is calculated as Income plus Page 13 DD&A. See Tables 1 and 2 of Appendix for additional information.
  • 14. R&M per BBL Metrics R&M per BBL Metrics R&M Income per BBL R&M Cash Contribution per BBL $ / BBL $ / BBL 6.00 5.00 5.00 4.00 4.00 3.00 3.00 4.50 5.16 2.00 4.64 3.85 4.28 3.59 2.00 3.16 3.06 2.39 2.40 1.00 1.00 1.88 1.80 1.26 0.94 0.00 0.00 2003 2004 2005 2006 2007 2008 1Q09 2003 2004 2005 2006 2007 2008 1Q09 Peer Group Based on total petroleum product sales. All companies Income adjusted to exclude certain non-core earnings impacts (based solely on publicly available information). Cash Contribution is calculated as Page 14 Income plus DD&A. See Tables 1 and 2 of Appendix for additional information.
  • 15. Return on Capital Employed Return on Capital Employed Peer Group COP 30% 20% 10% 8% 5% 0% 4Q08 1Q09 All companies adjusted to exclude certain non-core earnings impacts. See Table 3 of Appendix for additional information. Page 15
  • 16. Outlook Outlook Full-year E&P production slightly higher than 2008 Higher second-quarter U.S. refining capacity utilization Continue cost discipline Execute capital program Page 16
  • 17. 1st Quarter Earnings Conference Call April 23, 2009
  • 18. Appendix
  • 19. COP Non-GAAP Reconciliations COP Non-GAAP Reconciliations 2003 2004 2005 2006 2007 2008 1Q09 GAAP E&P Net Income - $MM 4,302 5,702 8,430 9,848 4,615 (13,479) 700 GAAP E&P Net Income - $ / BOE 7.33 9.97 14.79 13.78 6.73 (20.59) 4.04 non-core earnings impacts - $MM gains and (losses) on asset dispositions 565 590 asset impairments (118) (4,752) (26,070) tax legislation / regulatory / other 142 (4) 133 436 (71) E&P Income - $ / BOE 7.08 9.97 14.79 13.76 12.19 18.44 4.04 E&P DD&A - $ / BOE 4.54 5.10 5.81 8.59 10.77 12.26 11.51 E&P Cash Contribution - $ / BOE 11.62 15.07 20.60 22.35 22.96 30.70 15.55 2003 2004 2005 2006 2007 2008 1Q09 GAAP R&M Net Income - $MM 1,272 2,743 4,173 4,481 5,923 2,322 205 GAAP R&M Net Income - $ / BBL 1.14 2.39 3.52 3.53 5.00 2.09 0.84 non-core earnings impacts - $MM gains and (losses) on asset dispositions 339 224 asset impairments (441) 112 (550) tax legislation / regulatory / other (125) (83) 34 141 (24) (25) R&M Income - $ / BBL 1.26 2.39 3.59 3.85 4.50 2.40 0.94 R&M DD&A - $ / BBL 0.62 0.67 0.69 0.79 0.66 0.76 0.86 R&M Cash Contribution - $ / BBL 1.88 3.06 4.28 4.64 5.16 3.16 1.80 Table 1 Page 19
  • 20. COP Non-GAAP Reconciliations COP Non-GAAP Reconciliations 2003 2004 2005 2006 2007 2008 1Q09 GAAP E&P CFOA - $MM 7,751 9,109 12,126 16,978 16,228 20,976 2,270 GAAP E&P CFOA - $ / BOE 13.20 15.92 21.27 23.77 23.65 32.04 13.10 excluded GAAP items - $MM non-cash working capital 356 221 31 244 393 389 (339) non-working capital adjustments* 573 267 350 770 78 488 (86) E&P Cash Contribution - $ / BOE 11.62 15.07 20.60 22.35 22.96 30.70 15.55 2003 2004 2005 2006 2007 2008 1Q09 GAAP R&M CFOA - $MM 2,208 2,671 4,914 4,625 6,757 1,903 (698) GAAP R&M CFOA - $ / BBL 1.99 2.32 4.14 3.65 5.70 1.71 (2.85) excluded GAAP items - $MM non-cash working capital (104) (702) 267 (1,095) 1,188 (1,294) (1,044) non-working capital adjustments* 225 (142) (427) (172) (546) (314) (95) R&M Cash Contribution - $ / BBL 1.88 3.06 4.28 4.64 5.16 3.16 1.80 *Includes items such as deferred tax, accretion on discounted liabilities, and undistributed equity earnings. For Peer Companies, Cash Contribution is calculated as adjusted Income plus DD&A for each full year 2003 through 2008. Table 2 Page 20
  • 21. COP Non-GAAP Reconciliations COP Non-GAAP Reconciliations 4Q08 1Q09 GAAP ROCE -126% 5% non-core earnings impacts - $MM gains and (losses) on asset dispositions 525 - asset impairments (34,104) - tax legislation / regulatory / other (99) 63 ROCE 8% 5% Table 3 Page 21
  • 22. COP Non-GAAP Reconciliations COP Non-GAAP Reconciliations Reconciliation of Adjusted Earnings to Earnings Reconciliation of Adjusted Earnings to Earnings 4Q08 - $MM E&P R&M Lukoil Midstream Chem. Emerg. Bus. Corp. Consolidated Earnings (loss) ($24,293) $289 ($7,410) $69 ($6) ($25) ($388) ($31,764) Goodwill impairment (25,443) - - - - - - (25,443) Impairments - other (599) (537) - - - (85) (30) (1,251) LUKOIL Investment impairment - - (7,410) - - - - (7,410) Total Impairments (26,042) (537) (7,410) - - (85) (30) (34,104) Gain (loss) on asset sales 428 97 - - - - - 525 Severance accruals (71) (24) - - - - (4) (99) Total Adjustments (25,685) (464) (7,410) - - (85) (34) (33,678) Adjusted earnings $1,392 $753 - $69 ($6) $60 ($354) $1,914 Table 4 Page 22

×