ConocoPhillips Highlights Progress on Plans for Production and Margin Growth at Annual Meeting of Stockholders

  ConocoPhillips Highlights Progress on Plans for Production and Margin Growth
  at Annual Meeting of Stockholders

Business Wire

HOUSTON -- May 14, 2013

ConocoPhillips (NYSE: COP) is making significant progress on delivering its
plans for growth in volumes and margins, the company said today at its Annual
Meeting of Stockholders. The company reaffirmed its goal to consistently
deliver strong, predictable returns to shareholders.

“We believe we represent a new class of E&P investment – one that will strive
to achieve the organic growth of an independent with the yield of a major,”
said Chairman and Chief Executive Officer Ryan Lance. “We have the diverse
asset base, technical capability, world-class workforce and financial strength
to deliver on our unique value proposition.”

The company highlighted several achievements from the past year, including
progress on portfolio high-grading through closed and announced dispositions,
exploration success that included two significant discoveries in the deepwater
Gulf of Mexico, and peer-leading total shareholder returns.

“The ConocoPhillips asset base reflects our legacy as a major company in terms
of its size and breadth, yet offers the compelling organic growth more common
to independent companies,” said Lance. “It also reflects important
diversification between a resource-rich North American portfolio, a lower-risk
diversified worldwide portfolio and an emerging conventional and
unconventional global exploration prospect inventory.”

The company also outlined five ongoing strategic priorities to drive its
long-term performance:

  *Maintain a relentless focus on safety and execution, while renewing focus
    on organic growth, applying technology and delivering functional
    excellence. Keys to successful execution include flawless environmental
    performance, proactive stakeholder engagement and integrated sustainable
  *Offer a compelling dividend, which provides investors a predictable annual
    return while enforcing capital discipline within the company.
    ConocoPhillips targets consistent growth in its dividend;
  *Deliver 3 to 5 percent compound annual production growth, as well as
    growth in reserves, through drilling programs in legacy assets and
    sanctioned major projects globally. The company is also actively pursuing
    conventional and unconventional opportunities that can sustain growth well
    into the future;
  *Generate 3 to 5 percent compound annual margin growth, over the next five
    years at flat prices by divesting lower-margin assets and shifting the
    company’s production mix to higher-value products; and
  *Focus on improving financial returns, through capital discipline,
    high-grading the asset portfolio, minimizing investment in North American
    natural gas and optimizing processes and practices.

Over the next five years, ConocoPhillips plans to execute a disciplined
capital program of approximately $16 billion per year, supporting the
company’s organic reserve replacement target of more than 100 percent. The
company expects to generate 3 to 5 percent compound annual production growth
and margin growth from major development programs and projects already under
way in unconventional plays in the U.S. Lower 48, Canadian oil sands, United
Kingdom and Norwegian North Sea, Malaysia and Australia.

“We have the talent and technical capabilities to operate globally in any
resource trend,” added Lance. “Our strong balance sheet provides the financial
flexibility to withstand business cycles and to invest in the development of
our 43 billion barrel resource base. We will see a significant inflection
point at the end of 2013, as we core up and rebalance the portfolio through
asset dispositions and deliver on our growth plans from our worldwide
development programs and startups at several high-margin international major
projects.This will position ConocoPhillips for ongoing success. Our
transformation into an independent E&P company is just beginning and we have
an exciting future ahead.”

Final voting results will be reported on Form 8-K, which will be filed with
the Securities and Exchange Commission. These results and other information,
including presentation materials and a recorded webcast of the meeting, will
also be available at

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About ConocoPhillips

ConocoPhillips is the world’s largest independent E&P company based on
production and proved reserves. Headquartered in Houston, Texas,
ConocoPhillips had operations and activities in 30 countries, $57 billion in
annualized revenue, $118 billion of total assets, and approximately 17,100
employees as of March 31, 2013. Production from continuing operations averaged
1,555 MBOED for the three months ended March 31, 2013, and proved reserves
were 8.6 billion BOE as of Dec. 31, 2012. For more information, go to


This news release contains forward-looking statements. Forward-looking
statements relate to future events and anticipated results of operations,
business strategies, and other aspects of our operations or operating results.
In many cases you can identify forward-looking statements by terminology such
as "anticipate," "estimate," "believe," "continue," "could," "intend," "may,"
"plan," "potential," "predict," "should," "will," "expect," "objective,"
"projection," "forecast," "goal," "guidance," "outlook," "effort," "target"
and other similar words. However, the absence of these words does not mean
that the statements are not forward-looking. Where, in any forward-looking
statement, the company expresses an expectation or belief as to future
results, such expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, there can be no assurance that such
expectation or belief will result or be achieved. The actual results of
operations can and will be affected by a variety of risks and other matters
including, but not limited to, changes in commodity prices; changes in
expected levels of oil and gas reserves or production; operating hazards,
drilling risks, unsuccessful exploratory activities; difficulties in
developing new products and manufacturing processes; unexpected cost
increases; international monetary conditions; 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; and general
domestic and international economic and political conditions; as well as
changes in tax, environmental and other laws applicable to our 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 our business generally as set
forth in our filings with the Securities and Exchange Commission. Unless
legally required, ConocoPhillips undertakes no obligation to update publicly
any forward-looking statements, whether as a result of new information, future
events or otherwise.

Definition of resources: ConocoPhillips uses the term “resources” in this news
release. The company estimates its total resources based on a system developed
by the Society of Petroleum Engineers that classifies recoverable hydrocarbons
into six categories based on their status at the time of reporting. Three
(proved, probable and possible reserves) are deemed commercial and three
others are deemed noncommercial or contingent. The company’s resource estimate
encompasses volumes associated with all six categories. The SEC permits oil
and gas companies, in their filings with the SEC, to disclose only proved,
probable and possible reserves. We use the term “resource” in this news
release that the SEC’s guidelines prohibit us from including in filings with
the SEC. U.S. investors are urged to consider closely the oil and gas
disclosure in our Form 10-K and other reports and filings with the SEC.


Aftab Ahmed (media)
Daren Beaudo (media)
Vladimir R. dela Cruz (investors)
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