“Keeping Houston the
Energy Capital of the
World”
June 15, 2004
Terry Lucht
Manager, Drilling Engineering & Operations
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.
ConocoPhillips
• 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
2003 Performance
• Solid operations
Net Income
• Synergy capture
• ROCE improvement
• Portfolio optimization
$4.735 B
Cash From
Operations
$9.36 B
• Enhanced opportunities
• Improved financial strength
Debt Balance
$17.8 B
First Quarter 2004 Progress
Net Income
Strong Production Volumes
$1.616 B
Cash From
Operations
High Refining Utilization
$2.07 B
Improving Economy
Debt Balance
$17.1 B
Synergy Capture
YTD Total Shareholder Return
January 1, 2004 - May 3, 2004
Peer Group
ConocoPhillips
S&P 500
Peer Average
COP STOCK PRICE
January 1, 2004
May 3, 2004
13.4
8.9
8.8
7.2
$65.57
$73.90
Peer Group Average = 4.1%
1.7
1.0
(5.9)
COP
BP
CVX
XOM
TOT
S&P
RD
Legacy Asset Development
• Maintaining mature area production
- Alaska, Canada, Lower 48, Norway, UK
• Key growth areas
- Venezuela
- Timor Sea
- Indonesia
- Vietnam
- China
- Kazakhstan
- Qatar
Deepwater Projects
Magnolia
• Other projects & discoveries
– Ursa / Princess
– K2
• Leveraging skills in
West Africa & Asia Pacific
•
Operator, WI 75%
•
First oil 2004
•
World’s deepest TLP
•
55 MBOED net peak rate
New Legacy Projects - Heavy Oil
Hamaca
• WI 40%
• Upgrader online 2004
• Production increasing to
70 MBOED net
Surmont
• WI 43%
• First oil 2006
• Production increasing to
50 MBOED net
Leader in Heavy Oil to North America
Legacy Projects - Asia Pacific Oil
Bohai Bay
•
•
•
•
Operator, WI 49%
Current 17 MBOED net
Phase II first oil 2008
80 MBOED net peak rate
in 2009
Su Tu Den
• WI 23.3%
• First oil Oct 2003, ahead of
schedule
• 20 MBOED net peak rate
in 2008
LNG Supply for U.S. Market
Qatar LNG
Brass LNG
East Venezuela LNG
LNG
TRINIDAD
IRAN
COROCORO
QATAR LNG
NIGERIA
SAUDI
ARABIA OMAN
PLATAFORMA
DELTANA
YEMEN
VENEZUELA
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
Legacy Projects - Asia Pacific Gas
Bayu-Undan
•
•
•
•
W. Natuna Sea
Operator, WI 56.7%
17 year LNG contract
First LNG cargo 2006
90 MBOED net peak
rate in 2009
•
•
•
Operator, WI 40%
Long-term sales to
Singapore and Malaysia
60 MBOED net peak
rate in 2007
S. Sumatra - Corridor
•
•
•
Operator, WI 54%
Substantial resource
75 MBOED net peak
rate in 2009
Major Gas Supplier to Key Markets
2004 Drilling Program
48 Wells : 31 Wildcat & 17 Appraisal Wells
(excludes Asset Exploration)
Alaska
Mackenzie
North
Sea
Canada
Foothills
Caspian
China
DW
GOM
Vietnam
Malaysia
Venezuela
West
Africa
Indonesia
Capturing Value of Integration
• 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
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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