“keeping houston the energy capital of the world” june 15, 2004 terry lucht manager, drilling...
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“Keeping Houston the Energy Capital of the
World”June 15, 2004
Terry LuchtManager, Drilling Engineering & Operations
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Forward Looking Cautionary Statement Forward Looking Cautionary Statement
CAUTIONARY STATEMENT FOR THE PURPOSES OF THE “SAFE HARBOR” PROVISIONS 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 and Section 21E of the Securities Exchange Act of 1934. You can identify our forward-looking statements by the words “expects,” “anticipates,” “intends,” “plans,” “projects,” “believes,” “estimates,” and similar expressions.
For risks related to these forward-looking statements, please review our SEC filings, including our recently filed Form 10-K for the year ending December 31, 2003.
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ConocoPhillipsConocoPhillips
• Competitive Integrated Energy Company
- Operate in more than 40 countries
- 2003 Revenues of $105 B / Assets of $82 B
- Approximately 37,200 employees
• Diversified Integrated Portfolio of Legacy Assets
- E&P: 1.6 MM BOE/d produced / 8.1 B BOE reserves*
- R&M: 2.6 MM B/d refining capacity
- Joint Ventures in Chemicals and Midstream
• $50B market cap / “A-” credit rating
* Includes Syncrude
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2003 Performance2003 Performance
• Solid operations
• Synergy capture
• ROCE improvement
• Portfolio optimization
• Enhanced opportunities
• Improved financial strength
Net Income
$4.735 B
Net Income
$4.735 B
Cash From Operations
$9.36 B
Cash From Operations
$9.36 B
Debt Balance
$17.8 B
Debt Balance
$17.8 B
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First Quarter 2004 ProgressFirst Quarter 2004 Progress
Net Income
$1.616 B
Net Income
$1.616 B
Cash From Operations
$2.07 B
Cash From Operations
$2.07 B
Debt Balance
$17.1 B
Debt Balance
$17.1 B
High Refining Utilization
Improving Economy
Strong Production Volumes
Synergy Capture
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YTD Total Shareholder ReturnYTD Total Shareholder ReturnJanuary 1, 2004 - May 3, 2004
1.7
8.8 7.28.9
(5.9)
13.4
1.0
COP BP CVX XOM TOT S&P RD
Peer Group ConocoPhillips S&P 500 Peer Average
Peer Group Average = 4.1%
COP STOCK PRICE
January 1, 2004 $65.57
May 3, 2004 $73.90
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Legacy Asset DevelopmentLegacy Asset Development• Maintaining mature area production
- Alaska, Canada, Lower 48, Norway, UK
• Key growth areas- Venezuela - Timor Sea - Indonesia - Vietnam - China - Kazakhstan
- Qatar
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• Operator, WI 75%
• First oil 2004
• World’s deepest TLP
• 55 MBOED net peak rate
Deepwater Projects
Magnolia
• Other projects & discoveries– Ursa / Princess – K2
• Leveraging skills in
West Africa & Asia Pacific
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• WI 43%• First oil 2006• Production increasing to
50 MBOED net
• WI 40%
• Upgrader online 2004• Production increasing to
70 MBOED net
New Legacy Projects - Heavy OilSurmontHamaca
Leader in Heavy Oil to North America
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Legacy Projects - Asia Pacific Oil
Bohai Bay Su Tu Den
• Operator, WI 49%• Current 17 MBOED net• Phase II first oil 2008• 80 MBOED net peak rate
in 2009
• WI 23.3%• First oil Oct 2003, ahead of
schedule• 20 MBOED net peak rate
in 2008
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LNG Supply for U.S. MarketEast Venezuela LNGQatar LNG Brass LNG
• HOA signed 2003• WI 30%• Giant North Dome field • 1 BCFD gross sales
volume • Startup 2008-2009
• HOA signed 2003• WI 17%• 2 Trains • 680 MMCFD gross
per train• Startup 2008-2010
• Existing discovery • WI 40%• Appraisal drilling in 2004• Startup 2009-2011
IRAN
SAUDIARABIA
YEMEN
OMAN
QATAR LNG
TRINIDAD
PLATAFORMADELTANA
VENEZUELA
NIGERIA
BRASS LNG
LNG
COROCORO
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Major Gas Supplier to Key Markets
• Operator, WI 40% • Long-term sales to
Singapore and Malaysia• 60 MBOED net peak
rate in 2007
• Operator, WI 54% • Substantial resource• 75 MBOED net peak
rate in 2009
Legacy Projects - Asia Pacific GasW. Natuna Sea S. Sumatra - CorridorBayu-Undan
• Operator, WI 56.7% • 17 year LNG contract• First LNG cargo 2006 • 90 MBOED net peak
rate in 2009
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2004 Drilling Program
48 Wells : 31 Wildcat & 17 Appraisal Wells (excludes Asset Exploration)
DW DW GOMGOM
VenezuelaVenezuela West West AfricaAfrica
CaspianCaspian
VietnamVietnam
ChinaChina
North North SeaSea
MalaysiaMalaysia
IndonesiaIndonesia
Canada Canada FoothillsFoothills
AlaskaAlaskaMackenzieMackenzie
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• Canada – US Midcontinent refining- Syncrude and Surmont production- Billings and Wood River refineries- Recent Hartford acquisition
• Venezuela – USGC refining- Petrozuata and Hamaca heavy
oil production- Lake Charles and Sweeny refineries- PDVSA joint ventures
Capturing Value of IntegrationCapturing Value of Integration
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Building Momentum
• Addressing future global energy concerns
• Capturing value through integration
• Developing legacy asset areas with project execution focus
• Financial discipline
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