COP - Earnings call transcript Q4 2019

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning. And welcome to the ConocoPhillips Fourth Quarter 2019 Earnings Conference Call. My name is Zanera and I'll be the operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. that is note recorded. Please Instructions] this being conference [Operator to the I turn over Ms. will now call Ellen DeSanctis. Ellen, begin. you may

Ellen DeSanctis

Thanks Zanera. are Hello EVP EVP today's Chairman call. and to today. CEO. and Asia-Pacific, our listeners me Alaska Dominic and Michael Hatfield Officer; also Matt the and Chief of in Chief Financial our room Fox, Canada Wallette, Operating Bullock, today Lower Don Europe was And Ryan with President Officer, our With XX Lance, our our welcome our to the unable today's Macklon, region. us President of our to Middle East of call. are and the region region President Bill join

contains cautionary presentation X the Page statement. our of deck

could slide We described SEC. the will make also forward-looking and during some filings results due on differ factors statements with this this our Actual in periodic to the call. morning's

to will on to I'm to GAAP turn over nearest Ryan. corresponding reconciliations also financial morning's the going We release and be this refer measures with today call that the website. in And press can some measure to non-GAAP found our and

Ryan Lance

Ellen welcome Thanks our to listeners. and all again

shareholder on start. While can is already full to built for volatile the resilience framework lower it's certainly clear New works to sector friendly not a in to that higher company prices, another upside be it. early and off if or Well, we're the Year an through prices tough the you're for industry Volatility built it. cycles. and With

remarks we're found today's results our published usual be short. materials, of but prepared to our and going in outlook can details keep All pretty

cyclical we that's to why to XXXX. ConocoPhillips we reflect the future. look invest to key is in an offers goal as reinforce attractive main the And forward on theme way business, a Our

transformed XXXX our a in performance the improve X-year business. underlying capped we entire business drivers which across successful and our model significantly period off

$X we earnings we financial Slide this to generated cash of $XX.X transformation. X billion. the over strong results XXXX those operations delivered In cash billion, free and summarizes column, from of delivering that contributed flow

got Our lowered $X stronger. asset almost cash largely over balance ended and by retirement investments XX% in dispositions. obligation We due with our XXXX to of sheet billion short-term

employed volume our our for exploration We on XX%. base the portfolio XX% capital strong year Star projections return on across X% we underlying including projects our an with and delivered delivered was the growth unconventionals, Big progressed new our the At of rest roughly North regions. performance and growth, X opportunities from

last like did year we XXX% to the disciplined supply the add And and through closed for disposition XX, of resources of portfolio generated the have organically. we shareholder Alaska production low billion expect in on getting we're dispositions as But of billion $X keeps of and lookout We're selling. portfolio XXXX. opportunities over efforts for our also world-class on year was the delivering better proceeds another another internationally. part we year, early replaced XXXX outstanding close in we that our Our reserves friendly high just Lower strategy. when $X to we our cost grading for not announced have

That's XX% a to repurchased dividends, in dividend billion and increase returned in of $X.X quarterly paid essentially our we CFO shares. our We our billion shareholders. of We flow. cash including of XX% our free all $X.X

$XX an long-term billion. consistent a In commitment to of This repurchase billion $XX our a our increase our approved program. demonstrates Board today's of existing you by total announcement, to saw buyback authorization executing

Finally, focus numbers. execution goes the beyond our just

and in governance role to target environmental, engagement, advocacy social take a matters leadership disclosure setting, through and stakeholder continue We alignment.

We with and call an it's performance purpose this imperative.

consistent from the a gates powerful for all deliver A investors XX-year in we're elements; capital. out new ourselves that's we on in disciplined set can That's That's framework, cash do again plan path New Year delivered for what November, the strong and want over In ready compelling free to XXXX. we we're returns And and a and we that XXXX. is sector. strategy what So decade. starting XXXX. and in flow and of this we in on XXXX returns execution, believe the XXXX, laid XXXX

investors. right focused We're that right we believe strategy ConocoPhillips a executing on our and the certainly for industry is future of for and our

So with that let's go to your questions.

Operator

Instructions] [Operator

your question Leggate first Doug Please is ahead, comes America. from go line our from of Bank open. And

DougLeggate

for a Thank Good appreciate I everybody. you. session. lengthy morning, opportunity the Q&A

have a a a I the first you quite tax the little now And let got through there presented in from around jump number Alaska else this of couple. guess back and been headlines someone just I've different November. while last on. for now So circulating obviously a of time all, is that's

just offer perspectives. you I'm your wondering if So can

Just signatures to you that. the get how do think is respond on how how implications and plays what you going and out what there do that to think could be you as you whether they think, the

outlook on XXXX. appears on pipeline table the production second my really back for is issue Obviously, be one And Malaysia the to the again.

of year. So the there. expect walk leave us how I'll I'm cadence you could production it should Thank you. to wondering just evolve we through if through the

MichaelHatfield

this Yes. about Michael. first answer Thanks, Alaska Doug, is question I'll the the tax.

were of elections We They November asked initiative the signatures is Alaska as certified this initiatives you we of ballot. balance. be of The where the are in So process. that in gathered part part this the currently anticipate for now. division

in So of those the process they are certifying now.

we're tax. currently of as $XX years XX invest decline the we to production investments next capital billion and current Alaska. These will November, through planning increase the state's about in in showed the mitigate over And

our In spend On Alaska total OpEx in a fact, expected billion. industry capital and capital to is expected billion. about $X.X spend roughly net gross be basis to in Alaska be XXXX XXXX, in is $X and OpEx alone in

this there regime. if change a Now, fiscal is in negative

will as comes and at we Our cost proposition, that investment in years. understand risky state's investment over understand Alaskans of the if change, dollars will coming revenue the been know of it we've believe Alaskans gain It’s the plans the for of fleeting XX the We Alaska billions but short-term of industry. lifeblood economy; over a years.

impacted few economy. Alaska past After of that challenges that all our them. measure ballot voters issues negatively Alaska's on have years would the voted the understanding no and had over business We've

part about of jobs, the production oil of long-term to the benefits group an we're revenue the information state. Now investment, on provide fiscal voters that of will has industry regime, current that benefits it and the

this hard under people line Alaskans the of to we're benefits the working the structure. understand the ensure So bottom by and brings investment the that Alaska is state fiscal significant current industry to

DougLeggate

see right your stand in no So plans, a type more change situation. as current of things wait now, and

MichaelHatfield

correct. That's

we're fiscal current plans, We're executing see. the current gearing and Alaskans our brings we the state up benefits are view our help on of terms our waiting at in people. plans, to current structure understand to the as but So to

DougLeggate

Okay, thank that. on production you for And the cadence.

MattFox

production KBB know so - our Malaysia. party give the gas the KBBs the as as Hey, plant. you with And on - of its through plant from was third update Doug, can is in you is update most this The that most Sabah-Sarawak the exported and sold production in to guidance, Malaysia I LNG an pipeline that the significant Matt. you mentioned associated

even the year, there weren’t of day through a XXXX at being So pipeline, we via XX,XXX the but for exported Sabah-Sarawak condition the anticipated rate barrels have MLNG normal operating about the our a that, we significant for expectation was operational - year. be The issue operate not don't given expectation might all is pipeline. the a so year, repeated through the that our at the with that beginning

but gas get So off-take, to is we at hopeful the the long magnitude and last how uncertain. we're might that's what some access it assuming moment. domestic that we're of That might

majority vast the the of to that's So guidance. adjustment

had of on are our the aX% that's moment guess for should XXXX for also to this the XXXX about basis. business puts best year We at also timing we the range and expectation dispositions. what and And underlying of takes new But some an and growth across we units. expect adjusted

DougLeggate

press topic, don't in I the go are cadence the any quarterly but to year. we there particular through dips Okay. as the want

MattFox

into turnaround we year. obviously we middle of as have we the go the Well, a

in in as as We the and quarter. the have we quarter we have, second through elsewhere and go then Alaska third And one Qatar. the usual in turnarounds first

a So years. previous profile similar to

Operator

Thank you.

ahead, from Please from comes Our go open. is next line Doug question Terreson your Evercore ISI.

DouglasTerreson

everybody. morning, Good

your you returns row not the higher in stock in few, lot return only been better peers has rather guys time, have in guys multiyear At investment capital normalized top meaningful if valuation than basically outlined Energy equity while cash and that reason, one for view, you're peers big E&P a other position November, strategic on without your than is with suggested your can better and than you in the performer strong, strategic compelling lower action. in five you So, attain same plan or the Ryan, positioned a activity. S&P so of your years recent my are of your years which building profile pretty for and X this even a you a

So, you So forward to to on effect with this for area? what and that guys? they ongoing my on in capital have values appealing E&P, is employed upstream question public Are decline guys compelling we've more questions. private is seen two actions more in in strategic and you move become the needed one, return

RyanLance

our flow distributions, Well, free on on are capital on return profile right a our you describe employed. generation terms with thanks, hyper-focused the Doug. of in we're what we shareholder what doing believe on we Yes, return in on I think track cash focused focused

As that our about is the I we're said business. was think how executing guiding North we As XXXX XX% Star

we're little We believe we volatility, the the marketplace. have bit experiencing needed sheet, we a for in the on built balance of cash

of January Just the alone month. look in early month the at

was going a now think barrel $XX thinking people be to I it it a people are barrel. thinking $XX were to and added might

we're see sheet. So balance business in volatility keeping this of the kind and that's the we

So our we fee our capital back the can Pay to buybacks our consistent programs, from shareholders. dividend. pay execute our

go just decade; year the we So described have out it that's the on November that's that plan plan. We that's and that not two to on and and a next everybody program. is plan. we we legs and of what believe to got for do in it's in people one what that execute to can or lot we're executing the portfolio This consistent a set

of about think consistent buyers in you how I in We needs we keep my business. There see But kinds we reported sellers both on assets and is lookout I and some Analyst kinds pretty laid but I opportunities. gap about consolidation in big opening this those in have be our and between business. there. of to a we others we Meeting we the been a of have in And game. also the what think still November, Now framework remarks, bolt-on described had think pretty that there out at acquisition for opportunities, the some

what of do terms do we don't to either. this got not what's are on to a anything we solid in are applying have going going industry we've we to So the because plan around in and

resource how think as we to consistent layout of inorganically about through within framework conversion So when try channel, we and as exploration organically both our well. a we resource pretty piece portfolio and that about business think

where obviously at are So but with we we are we very everything closely. happy watch

Operator

you. Thank

question Sachs. go next Neil comes Mehta from Goldman Please Our from ahead.

Your open. line is

NeilMehta

Good on recognizing thanks Venezuela the around to The sensitivities a the are for can about and today. you steps the forward think is securing question are morning, time what collected? that taking we How ensure the basis modeling be team. opening to should flow cash that the taking around there that's And company. own are go cash I had

DonWallette

is this question. Don. that Neil, I'll Okay. address

would I thing the of first that which what the kind or said forecasted repeat payments I've seven just the quarters we because we've think six is be involved. those never receiving risk is of say last of I would

to result October, no cleared PDVSA or have into And so we would well. is receive installments to We breach. as to but done after six we else as the as default quarterly not fourth did forecast anybody from notices November delve of and of payments we've the received manage issued never encourage what quarter a they the today as PDVSA. And seven and we that

And we resumed as enforcement that legal consequence our actions. of

competitive a the course, creditor it's marketplace. not we're out Of only there,

I I pursue us actions But enforcement go remedies to what vigorously details about can't we in think understand you'll those at all have so into And to that you that saw us. XXXX, any as expect legal all can you available entail. from us

NeilMehta

checks about affect in context thinking demand you've the demand how some of weakness business, your if be does hoping, some that demand how was The you could of just in we seen the other should And you put is issues that around and all. follow-up Ryan, think just way into I about at that. appreciate And Asia. the Matt and context it we question of

RyanLance

Yes. And Neil, oil say you're LNG. talking about as opposed to for demand

NeilMehta

Both would be interesting actually.

RyanLance

yes. well, Both,

mean And that the demand reduction the in of go - we're we in we demand factoring translates year. course in I first some we through this year. So quarter some the loss some. as do see into of full in

I on the we the at think barrels as estimates look order something X still still at markets of projecting go million global a as day economies. demand XXXX. look growth the our through and We're we of

orXXX, the with issues XXX,XXX Coronavirus day current XXX down to we're barrels because barrels probably a facing of that's in Now that China. XXX,XXX

we do So of it that, some impact the will the to side through equation. of see flow storage

building believe countries in and US We around storage. the So as we'll well. the in see world non-OPEC some the

of of up in on that in US and obviously eats prices. coming we the around. coming of some still liquids the demand from pretty year coming supply put terms out see see growth the will see most later that probably pressure we So though We draws total that inventory good growth

the to the demand might it's preaching create X January an because the X pretty year as supply changes warm that's to or here some seen in in going oil-supplied or that well. We do OPEC small - volatile been and it's we've spot it's what had the any years will side some seen So another for that in we've be what do changes world world. see market in around winters others last in LNG volatility spades and for weakness

the in for LNG demand So course But of the demand it long in terms itself - in manifests that seen how been still we've lags flows and company. the softness we has see side our of how markets. cash LNG growth, term over the

market that channel -term the still we LNG in still and but So are belief long growth the of participating the business. in

Operator

Thank you.

Please line Our question from next ahead, is your open. from JP comes Phil go Gresh Morgan.

PhilipGresh

were around we Big X. questions, some Bakken effects and any XXX,XXX was I mix but look to first, thoughts the as - day in XXXX The in of looking declines just in your Hi, saw oil NGLs gas yes. up, guidance the well that barrels share and there. quick XX, production for presume at could quarter-over-quarter the that a Ford the the quarter Couple Eagle down just Lower and as we out you mostly

Just any provide production can cadence for count you X. around specifically and rig color Big the Thanks.

MattFox

Yes. here. Matt it's Phil, Yes,

flat. growth the it aggregates timing a think probably the than our in saw gassier Ford on production. the for of just X There wells Eagle was and the production Big Ford -Eagle was Permian. In you for little a bit bit down I individually the of bringing So Permian because there in numbers in was relatively was the when we're production

crews. X and and Ford, supported So was the we and and the terms that - in -those the X.X averaged that's of were activity, Big in was the slight frac there across mix year Permian in rigs by last Bakken, shift why that it's in Eagle in and XX.X the seven X X

seen capital activity into to is our of in go last the aggregate as cost capital have XX in Lower XXXX the the much same year. pretty we same level You'll that for as

PhilipGresh

great. Okay,

quarter for question cash Second light The a bit flows the there. Don. looked in little

things. should I some think pieces about for is think could what how there might if just bucket it's had XXXX, moving in we other been bucket generally we there just flow think or any that headwinds, another Whether that if you distributions have cash and elaborate about.

about Thanks. You PDVSA should already think talked we about. else but anything

DonWallette

items look we an come Yes. $X.X that explain items about we cash take quarter, And way with can our CFO. sensitivities up $X.X cash may do in about publish of estimate of at ratable the flow a it, a you point and the that with else, you to results think the I Phil, I few that billion, guidance along our flow a in the at we and billion. actual Whereas came that. lot analysts number to if were nothing similar help

than what months a about were we pricing. million $XXX X predicted sensitivities LNG Brent have start lag incorporate to would don't realizations to lower So because our

Brent about fell up $X. quarter-on-quarter JCC was $X but

So impact. that's that what's causing

year at to billion costs In in controllable $X.X our adjustable versus the guidance $X.XX of that, for came billion. addition our

about that's the equally compensation. through things on basically that was SG&A $XX quarter-on-quarter was that drove million and split, that a you that an on on, mark-to-market that the and was up to in increase about and And the items So share the or incentive $X.XX accrual so made two and all have that came SG&A good what because compensation employee-based related was fourth quarter stock to enjoyed quarter. other due of the the noticed

US probably a of contribution run what kind we the than qualified rate were million our those unusual pension items higher was and plan quarterly made also $XX to that typical about So was.

at not think items you that if payment. encourage and try million PDVSA don't I $XX so And people even know we to include the -we do. to those look though We some

been may that for have some so contributing And folks. a factor

as been changed buybacks, $X far I XXXX, on are billion pretty plans our think distribution has As that. clear about nothing of what we've

rate dividend probably the Our is our of that won't towards until rate is so what adjusted end have much dividend consider impact. it the year, we

$XX As far the benchmark to of published updated as the far would as new got been WTI. that expect say, that current $X about for as a CFO billion in expectation at CFO, CFO. today. has you've And appendix sensitivity say we We on of billion I materials some prices would XXXX around $X.X

PhilipGresh

very that's great, helpful. Okay,

might Thanks. billion. clarification assume net I from gross. with one that $X a amount the there proceeds have that? you Just that's the Is distributions, for

DonWallette

would we quarter. close closing at expect to our to are billion. that that. you XXX then, about about Niobrara, proceeds. then XXX, West net of I that, X.X to is on would of on on And end Australia haven't. the it based expectation this I be And proceeds be round headline, to Australia a the would close the going but on the to smaller provide I just cash haven't $X assets off number seen I I to will but the the X.X do headline estimates can I and be on our of that don't know about know is that there proceeds cash expect remainder

Operator

you. Thank

Read question comes Please Fargo. from Roger next ahead. go Our Wells from

Your line is open.

RogerRead

years. good last that management and been I've think call least morning. the And you introduction, shortest at several I was on the Thank and probably for

follow in maybe been congrats So to and specifically demand reports China there. some kind of about that. Asia LNG Neil's they're more of that's on There in market, going issues questions just-in-time on the issues. buyers Couple question the to clear made on and of on. up that some One I majeure not they're getting a it get that. other force so into run offtake If have

are So then with it. the the curious you to China LNG about on as second expansion everything. direct was and update an question exposure Qatar just think And where the we of front, I

BillBullock

Roger, take Hi, Bullock, one. this it's I'll Bill

similar raised the into heard haven't majeure Asia. any force had about we've declarations. concerns First, market majeure With we a in date, force

So sales addressing spot be continuing we see domestic or those managing do, and appropriately. with market we the watch we'll and the are to if sales market in

we So heard concerns similar nothing date, to but have

Qatar, to very interested respect With to we in Qatar. be continue

with that is great low well serves placed. and and are location global Asia. is location for We a Europe by both Qatar strategic well cost resources a works with that market the

they is at Petroleum pace as can't by at process process. this We're control and I say really any in very moving being that of hopeful. provide on along What say That we're can Qatar managed are in are We that the still more they is time. that pace.

a supply an our additions is of and lay to attractive competitive to competitive cost supply of November, in as out be opportunity needs it to cost going be addition. we The be a to portfolio

where for So that's of at Qatar. kind we're

RogerRead

Thanks.

any to late Just of think changed Analyst a when picked in material last is there the quick summer November? in projects has it and follow-up, reason certainly the anything Day kind since up

BillBullock

continues a good No, no, manage GP very project. to

Operator

Thank you.

Wai Jeanine Barclays. Please from from ahead. comes question go next Our

is open. line Your

JeanineWai

calls question first WTI year XX% a for My and everyone. XX-year morning, X% with first X% ROCE for assuming you're so plan My about Good on some ROCE is ROCE. good XXXX. the strong very XX%, $XX is per Hi, to question in improvement on was morning. inflation XXXX

ROCE So in So ROCE the may Alaska incremental terms you Can have on this is about in achieving projects perhaps or production what projects. the the of maybe addition, of what of future talk improvement. Big today? you're to adds other relative the any the X or conventional you incremental some contributing color to absolute

DonWallette

I'll Jeanine. is Yes, This address Don. question. the ROCE

the we're between Analyst real. because working ROCE period Day we X% at production at XX-year primarily and and being WTI X% So, the that's by $XX showed over driven growth November, yes, in growing

that there to thing a So point there. is But would other of is capital efficiency. little I contribution bit our the

very production actually DD&A Our going is flat is while our up.

point drivers being the behind would to I improvement. primary So those two the

JeanineWai

these about result the thank I'm my X are push otherwise. we Okay, slowed for because activities Alaska on or that think that assume those exploration That's what Q further Alaska question, the already you. And guessing optimized other plan. and event talk exploration reasons as Can all either are in the and you second right in Montney, your I move Big it's activity XX-year either of opportunities activity for very regulatory helpful. is mainly or to may the the into a

DonWallette

we or we to the what referring are elsewhere you would what do globe? Alaska in do Jeanine, in

JeanineWai

globe? the in Elsewhere

DonWallette

is this Alaska half exploration Yes, half and elsewhere. going capital year our so into is going about of

activity outside Day, of Norway shelf we Argentina, the also the exploration And that So Those Sarawak. Analyst we have the country in that the on and explorations the both program discussed. of south the in primary too and the in Alaska. outside are going activity Vaca program exploration and new Malaysia going areas Muerta. water in shallow and at primary November exploration have we on our discusses And an Michael the

JeanineWai

Okay, great thank you very much.

RyanLance

the on to exploration that for and supply our that have allocation. we've for we allocated add, of channel. we're opportunities don't I spending, But $XXX the that if today to an cost allocation set the we exploration million Jeanine, bring we we'd down spending would that compete said,

Operator

you. Thank

Cheng from Scotiabank. comes ahead. go question next Please from Paul Our

Your open. line is

PaulCheng

morning, good guys. Hi,

is stream we it big we lumpiness maybe should I question Matt, Matt. the normal a think in the sequentially, that the starting Permian, years? well is to comparing beginning year in the first this fourth development accelerating should coming just this and last that the of or see assume will of of on jump couple is accelerating we for pace a quarter because look at growth signaling be

MattFox

Yes. you very Yes, pads a quarter-on-quarter but It XX% we the sort growth as was comply on that this Thanks, bring Paul. strong did of is, new in growth and Permian. about real lumpiness we as there.

we Permian rest flat lumpy in production. be the the relatively So will growth year. resume first through an We then fourth the quarter expect to actually again and quarter had of unusually

PaulCheng

take Matt, of more would for when on in think that infrastructure and Permian you will the growth the and sufficient that have delineation you when that pace that think a to you happen. accelerated the

MattFox

Yes.

we what this at about - leave was and So rig in piece. we X.X November were running

as get Montney. X and but in Permian, be will we're years make we confidence over sure stacking right the few the the we the running rigs We in design. the the about to growth will in completion Eagle that doing we're at did like that the X and and Ford We next Bakken measured and build spacing much the

optimum the ramp to bit in rigs still we're of the we'll be next mode years. X, a a there X over up So learning and and

a completion be is the the hope and optimize growth and we which spacing learning that but significant pace a - piece there consistent the to with coming is So and we're in of stacking. will Permian, is

PaulCheng

Thank you, Matt.

some companies for at low and and lay transitioning for Ryan. we are mean, the low a lot guys off doing I that how over in is The making that. last carbon integrate oil of last American that investment and second the the transitioning fuel, going into or far low transitioning. signed supplement have in all for X you international evaluating months or investor. oil standpoint, among was XX I also X-year, you be the carbon are stick to the say North And on on oil to Ryan, opportunity question seen in From that other the topics become more that gas of look sudden investor you do world, to with and a what will we are outside you think, carbon, move active the even ESG transitioning the the of ConocoPhillips essentially set were guys gas the that the

RyanLance

now guess we're on Paul. I have think piece, that's doing. on a Yes, we in of what how about the E&P company of And are. we that And strong kind how business, the record that's focused we terms transparency, right we we're ESG our I that on focused we're years. tons transition, the business. We're done only X We've eliminating of is that manage target the over from emissions has last emissions Company; out number there operations. the that million over an E&P believe our for

stance, think our climate about when how how we're it in and that gas we're external recognition our action -what that, business. about we we we business report make doing and sustainability climate how our our oil doing sustainable think on. doing for we're describe how the I'm focused So more get a to we report,

low a our supply greenhouse of taking our of emissions, we're terms aspect gas this do doing reduce That's fugitive yes, our of really cost are of being our we're own care footprint. flaring trying all on focused methane in managing in business that's how what And to the activities we're company. that's So, to the and and we we're what emissions, about. mission above,

Operator

you. Thank

from ahead. Tudor, Please Holt go Jeoffrey Our Lambujon from next question Pickering, comes

open. is line Your

JeoffreyLambujon

questions. from is taking Thanks standpoint. first my morning. Good an My one on op Alaska for

on can give learnings you then us helping be any ongoing a operations the from appraisal focus as As reminder helpful continue to ballot well. over XXXX inform will you measure, voters potential the just of of Alaska? ramifications on And on what color will in

RyanLance

quarter in continue base to starting smaller that's got execute we Yes, second execute rig our Alpine. Alpine as got got this as up to both in as at be going We've Matt that and we've we've the big mentioned, some we've so also to operation [Indiscernible] ERD far year, that operations. a turnarounds got the

going So got lot we've now. got of that's a lot drilling a we've and on

the exploration that addition, asked of about program in In our now. and we're you middle

we're We wells So our tests got X going we'll that that spud of Willow wells appraisal we've four conduct. January. end first and drill one Willow at at the at flow to well

now. that's So going on

exploration spud going end we towards In two programs. the three Harpoon so expect to Willow between well to running February, addition, of at we'll the we're the wells rigs Harpoon and first and be drill

up had and had that central through well addition, that monitor we well in from Norwell we our and we floated production about opportunity that X,XXX facilities. that back in we from in you to as then Now And drilled We buildup. to where have was November tested we pressure shut the well our day a produced spoke the and well that. production barrels

Since back that reach recently injection flow and in also December. that TD that those well well drilled just We to encouraged it with we're early we've quite an time clean results. up

around I drilled. In barrels fact, interference a mentioned that day flow our previously was with now the back we X,XXX wells tests prepared peak an that for injection being producer

to optimize lot planning. to see in an tests wells information So we're two those help how that interference to each do as is we other going future and a development going to injection us test are talking

with the encouraged quite Norwell. seen that we're in we've results So

that at So we're short, Prudhoe program in assets Bay. our non-op big a we've including our Alaska, across in got executing assets in the

JeoffreyLambujon

you second that. the all come to portfolio on on thank discussion those at look mix. and follow-up a how my to potential inorganic you the for Great, into the for But just the adds question, detail

what there the look look there the different existing on just are quality base. could parameters potentially lastly, international at opportunities, potential A&D and Is lack of disconnects of you between Are today. exposure? the valuation? you at doesn't? key as you What add in think them asset say packages areas guys between As landscape Thanks. with would you then availability And to what clearly are where assets the a you you compare domestic seeing fit any at differences markets look and

MattFox

Hi, Jeff.

clear portfolio a the all-in guidelines out Alaska $XXX Matt. and - laid cost make I'll internally And of we'll some about an have a capital. this the additions inorganic for supply has think hope $XX barrel barrel and on very have I Yes, year to it you inorganic take of to the And $XX say acquisition internationally. in is below has to order alluded to the take it to we front, This Ryan did below saw cost of the lay certainly to we the a of cost and Lower would out addition that. what clear a including attractive. million we compete development last earlier inorganic bit as we've an XX, in to that

that portfolio. we've on conversion for have very within criteria It is the for and achieve. So for program would and criteria scale the clear the been we larger to activity resource same corporate exploration

portfolio time. we we as to additions moment. we some could much year, stage any last like the not are still be incremental as consummating there we portfolio, that out of did And look through at so bolt-ons but the the there go we're around attractive for can But of see potential the opportunities those at

as two that long mentioned they criteria As those ago. minute a I meet

Operator

Thank you.

Our Scott next RBC. from go ahead. from question Hanold Please comes

open. Your line is

ScottHanold

Thanks.

that with the Don, discuss is relative does as what whole? one a how the that basis think this Conoco for you KBB pipeline down, mean does relative to flow the say on I can how generate impact cash I a financials?

DonWallette

on yes that as of Sabah, of for not the resumption Sarawak Matt and we're Yes, gas counting Scott, XXXX pipeline. said,

built sensitivities our impact that's $XX into financial on morning. the that we income and of is estimating cash million the in about $XX published flow and - So and that's, this million that about net we're okay,

ScottHanold

Okay, find has the the considering XXXX on in progress obviously propositions bit that the of out quickly color. there? get that How down ballot going more in a something are done? Do process front November And I be to really evaluating to or with Alaska little again. asset it's turning back that challenging you to the sell appreciate a going

DonWallette

Yes, Scott.

through production So outlook. you our that at retain provided level second point, the this back ownership in would for And current we a Meeting I'll just we Analyst that capital and November at take preliminary reflected when to XXXX our year. we

resolved this results XXXX and the uncertainty through to sell exploration concept we the has fully after only been the we initiative appraisal related of Willow and XXXX program. through So citizens’ when through progress our at point, gate. interpreted select and plan to after And down we the

sell that plan investment So after sell down we've the down in year. when to the this most We satisfied that that's to pace. a those execute next into so pushes execute us three current control down sell likely causes criteria we won't well a of way lose

assets. equal cash, these a strategic open sense. confident that quality great parties are or transaction to interested multiple an that would swap if makes be We value that rather than already there We're in are

resolve So and then that's where going are market. the the approach uncertainties these of we'll we're in we some to process,

Operator

Thank you.

from question Joe Baird. next comes go Our from Allman ahead. Please

line open. Your is

JoeAllman

in Thank the you. on your assuming production basically your are what is cash point level having outlook? zero production now production guidance? flow? thoughts But What you this the any situation assuming you know Libya. terms guide at is don't for are of On I and you for cash in And you with Libya Libya in flow

RyanLance

Yes.

for So you're don't we Libya. in guide right, production

because guidance excluding is project has our force Right now majeure conflict, process company and so disruptions down Libya. with Libya Libya company of the the Oil in just production. our of Our the we're National associated declared tapering and this

expect quite zero now, to but fairly are we We soon. be at not

and is we hope our soon. operations parties right resolve But down that can we're So this can conflict, tapering restart producing. not these now, towards then

JoeAllman

flattish offline an level? are terms Libya kind for quarter is flow assuming year, production assuming the you you guidance of for that from cash period fourth In of your extended or this

RyanLance

it Yes, that we're be will assuming offline just then.

JoeAllman

you're around is XXXX. each in and $XXX that Okay, million defined was that's that for million contribution. fourth the about it quarter $XXX My And quarter helpful. through benefit guiding understanding on the

constant the assume contribution And we kind is up? should same five just or XXXX like the catch beyond of impact? kind cash quarter talk this a So of sort of quarterly could about you

DonWallette

is this Don. Joe, Yes,

that. address me Let

So at contributions I to pace probably million, for that continue $XX We plan our to to to $XXX the plan quarters. million. US in we contribution believe rounded but up was fourth quarter, the close three the next

the liability our contributions two in so here are XXXX equities we're one, this year make we liability what's that to quarter So time, a is and three the contributions strategy derisk occurring that's in implemented and that management intended over pension we've reduce the allow as into more plan us how forward. going and assets shift hopefully from that's fixed go income, we to to de-risk of going and be to so

that to after expect XXXX go we quite will small and the So continue then hopefully rates should you and into significantly quarter, our interest on asset as third depending beyond. be performance and contributions reduce

Operator

you. Thank

questions I this the Ellen. call turn like to time. would further no have We at to over back

Ellen DeSanctis

Thank Zanera. you, everybody. you thank And again

If of the seeing you all have to any out Thank Relations free next calls, Investor to please over several months. you. you reach forward feel look and to

Operator

for conference. you. and you gentlemen. And thank participating. And ladies thank you, Thank today's concludes This

You may disconnect. now

Ellen DeSanctis	Senior Vice President, Corporate Relations
Ryan Lance	Chairman and Chief Executive Officer
Don Wallette	Executive Vice President and Chief Financial Officer
Matt Fox	Executive Vice President and Chief Operating Officer
Bill Bullock	President, Asia Pacific, Middle East
Michael Hatfield	President, Alaska, Canada and Europe
Doug Leggate	Bank of America
Douglas Terreson	Evercore
Neil Mehta	Goldman Sachs
Philip Gresh	JP Morgan
Roger Read	Wells Fargo
Jeanine Wai	Barclays
Paul Cheng	Scotia Howard Weil
Jeoffrey Lambujon	Tudor, Pickering, Holt & Co.
Scott Hanold	RBC Capital Markets
Joe Allman	Baird

ConocoPhillips (COP) 4 Feb 202019 Q4 Earnings call transcript