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AnalystMeeting July14,2011
CautionaryStatement
FORTHEPURPOSESOFTHE SAFEHARBOR PROVISIONS FOR THE PURPOSES OF THE SAFE HARBORPROVISIONS OFTHEPRIVATESECURITIESLITIGATIONREFORMACTOF1995
The following presentation includes forwardlooking statements These statements relate to future events forward looking statements. events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. Actual outcomes and results may differ materially from what is expressed or forecast in such forwardlooking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict such as oil and gas prices; refining and marketing margins; operational hazards and drilling risks; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects; unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining or modifying company facilities; international monetary conditions and exchange g, g y g p y ; y g controls; potential liability for remedial actions under existing or future environmental regulations or 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 p , g , pp ConocoPhillips business and 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).
HistoricalStrategy
KeyPremises i
Execution
E&P,R&M,MidstreamandChemicals
Ledtosignificantvaluecreation L d i ifi l i
2
CurrentFocus
CashfromOperations
16%
84% NonOECD
$92BCapitalEmployed
9% 25% 66%
Increasingshareholdervalue
2010cashfromoperationsandaveragecapitalemployed.Corporatecapitalemployeddistributedacrosssegments.
CurrentStrategicObjectives
ImproveROCE
ExpandmarginsperBOE Maintaincapitaldiscipline i i i l di i li Portfoliooptimization
Growpershare
Reservesandproduction Earningsandcashflow Earnings and cash flow
Increasedistributions
Annualdividendincreases Sharerepurchases
Creatingshareholdervalue
4
Key2011/2012Initiatives
Disciplined$28Bcapitalprogram Additional$510Binassetsales $10+Binsharerepurchases 100%+reservereplacement 100%+ reserve replacement Reducerefiningcapacity
ImproveROCE
5
StrategyAssessment
IntegratedStrategyhasbeeneffective Inte rated Strate has been effe ti e
Environmenthaschanged
Downstreamcapabilitynotkeytoresourceaccess Downstream capability not key to resource access ResourceNationalismandNOCcompetition Movementtoserviceagreements
ValueofIOCassetsnotreflectedinequityvalue
Transparencyandpotentialofbusinessesnotasclearaspureplays IncreasinglydifficulttocreatedifferentialvaluetolargerIntegrateds Emphasisonadditionalvolumesnotalwaysvaluecreating Continuallytestingandassessingexecutionofstrategy
6
TransactionSummary
PursuingtaxfreespinofDownstreambusiness NewindependentpureplaypubliclyheldDownstreamcompany ConocoPhillipsbecomesleadingpureplayE&Pcompany p gp p y p y Expecttransactioncompletioninfirsthalf2012
Createstwostrongindependentcompanies C t t t i d d t i
7
StrategicRationale
Createtwoprofitableandindependentcompanies
E&PStrategyunchanged Downstreamgivenopportunitytoaddvaluethroughportfoliooptimization D i i dd l h h f li i i i Independentbutconsistentstrategies Independent but consistent strategies Bothcompaniescontinuetobenefitfromsizeandscale Bothcompaniestohavestrongfinancialflexibility Both companies to have strong financial flexibility Transparencyofpureplayoverintegratedbusinessmodel Managementfocus g Abilitytoattractandretaintalent
Greatestopportunitytocreatedifferentialvalue
NewConocoPhillipsDescription
LargestU.S.pureplayE&Pcompany
ImproveROCE Improve ROCE Persharegrowthinproductionandreserves Completeportfoliostrengthening Capitaldiscipline CompetitiveF&D ImprovemarginsperBOE Improve margins per BOE
Assetdispositionandsharerepurchaseplansunchanged
9
E&POverview
Alaska 240MBOED
Largestoil&gas producer
NorthSea 350MBOED
Highvalueexploitation &majorprojects
Russia/Caspian 50MBOED
Largeresourcepotential
AsiaPacific 280MBOED
Diverse&expanding Diverse & expanding legacyposition
InternationalgrowthopportunitiesunderpinnedbyOECDposition
1
SteamAssistedGravityDrainage
10
ConocoPhillipsProduction
Q12011WorldwideProduction MMBD
4.8
PeerGroup DomesticIntegrated
3.6 3.5 2.8 2.4 1.7
DomesticPurePlays
0.7
0.7
0.7
0.6
0.4
0.4
0.4
0.2
th on
CV X
ch e
BP
da rk o
vo n
RD S
TO
CO
ss
An a
G Re
Source:Companyreports
EO
ur ph yO
OX
so ur ce
XO
Ap a
De
ar a
He
il
11
ProductionOutlook
ProductionbyProduct MMBOED
2.5
Liquids LNG Int'lgas NAmericagas
SourcesofGrowth
AsiaPacific
2.0
APLNG,Malaysia,Indonesia
NorthSea
1.5
Jasmine,Clair,Ekofisk,Eldfisk J i Cl i Ek fi k Eldfi k
Caspian
1.0 10
Kashagan
L48liquids
0.5
EagleFord,Bakken,Barnett,Permian
CanadaSAGD
0.0 2010 2015E
FCCL,Surmont
Strongportfolioofinvestmentsleadstoproductiongrowth
Excludesimpactoffuturedispositions.
12
20112015NewProduction
MBOED Asset/Region RestofWorld OtherL48& WCanada NorthSea N th S 2010CashMargins Various $14 $40/BOE
800
600
400
SAGD L48liquidsgrowth
200
AsiaPacific
$35/BOE
Qatargas3
Attractive
Improvingmarginsthroughmajorprojectsandexploitation
13
NewDownstreamCompany
GlobalRefining&Marketingleader
Significantpositioninmidcontinent ExposuretoallPADDs
InsertDownstreamPicture I D Pi
14
U.S.Refining
Q12011U.S.RefiningCapacity MMBD
2.2 2.0 20 1.9
Valero
COP
XOM
BP
Marathon
CVX
RDS
Tesoro
Sunoco
HOC/FTO
TOT
Murphy
Leadingdomesticrefiningcompanywithportfoliooftopquartileassets Leading domestic refining company with portfolio of top quartile assets
Source:Companyreports
15
DownstreamROCEImprovement
Selectiveassetsales FinalizationofWoodRiverCOREproject Finalization of Wood River CORE project Capitaldiscipline
Implementingselectivehighreturnprojects
Optimizationinitiatives
KeyMilestones
DetailedseparationplanningfollowedbyIRStaxrulingrequest Announcementofnewboardandleadershipteams Announcement of new board and leadership teams FavorableIRSruling FinalCOPBoardapproval Expectedclosingfirsthalfof2012 Expected closing first half of 2012
17
DeliveringShareholderValue
Restructuringconsistentwithcommitmenttoshareholderreturns
18