ConocoPhillips Investor Day Notes

1.5m barrels per day, 8.9B barrel reserve base

“Today we’re about 1.5 million barrels a day. We produce that from an 8.9 billion barrel reserve base and a 44 billion barrel resource base. We have multiple sources of growth from a growing inventory of low cost to supply opportunities. We have some key significant resources in some key resource trends around the world today like oil sands, LNG, conventional oil and North American Gas. We’re 80% OECD which we think lowers the execution risk in the portfolio”

We always plan for a range of prices

“At ConocoPhillips we don’t plan on just one particular price path, we run scenarios on those supply and demand factors and we want to be resilient to a broad range of prices and that’s how we’re running the company. But as we think about that going forward what does that mean? We’re planning on lower more volatile prices over the next three years, but we think we have a way to win in that environment and how do you do that? You do that through the portfolio.”

Planning to drop capex and then keep capital spend flat and expect to grow the company still

“So while we’re keeping capital flat at $11.5 billion there are some internal workings that are freeing up more flexibility for the company as we think about the capital program and we’re going risk to the commodity price environment over the next couple of years. But even at this lower capital spend we still are going to grow the company. So you see here our plan is to take the company to 1.7 million BOE per day by 2017 and that’s from the base today of about 1.532 million BOE per day.”

The dividend is a top priority

“So here is what you should listen to for today and I don’t want to sound like broken record but I am just sounding like a broken record. The dividends are top priority use of our cash; we will pay our shareholders first.”

People are still working under the assumption of $75 oil in 2017

” the difficulty about talking about cash flow is that you have to do it relative to a certain price level, and this morning we’re going to talk about cash flow in terms of 2017 price level that is $75 Brent, $70 WTI and $3.50 Henry Hub. And you remember just on Ryan’s presentation few slides back he showed a range of analyst projections out there people who’re making forecast about all the prices and this is kind of midpoint to below midpoint of where those ranges are.”