2016 Market Environment & Business Plan

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2 Cautionary Statement The following presentation includes forward-looking statements. These statements relate to future events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations, operating results or the industries or markets in which we operate or participate in general. Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that may prove to be incorrect and are difficult to predict such as oil and gas prices; 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 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 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). We caution you not to place undue reliance on our forwardlooking statements, which are only as of the date of this presentation or as otherwise indicated, and we expressly disclaim any responsibility for updating such information. Use of non-gaap financial information This presentation may include non-gaap financial measures, which help facilitate comparison of company operating performance across periods and with peer companies. Any non-gaap measures included herein will be accompanied by a reconciliation to the nearest corresponding GAAP measure on our website at Cautionary Note to U.S. Investors 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 presentation 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 disclosures in our Form 0-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

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4 Agenda 205 Review Market Environment & Business Plan 3 Value Proposition & Portfolio 4 Closing Remarks 4

5 Challenging Environment in 205 $20 Brent Price $/BBL Macro Environment Continued production increases/oversupply in market $00 $80 $60 $40 $20 $0 204 Average Price ~50% LOWER OIL PRICE 205 VS. 204 AVERAGE 205 Average Price Resilient U.S. tight oil production Significant commodity price deterioration through 205 Industry Environment Deeper, more extended downturn than industry expected Investments in major projects and drilling programs reduced Strong deflation response, particularly in U.S. onshore ConocoPhillips Response Reduced capital spending by ~40% relative to 204 Reduced operating costs by $.7B, exceeding $B target Secured $2.2B 2 of disposition proceeds, primarily gas assets Operating costs excludes special items and is a non-gaap measure. A non-gaap reconciliation is available on our website. 2 Includes ~$0.3B from liquidation of certain deferred compensation investments accounted for as cash from investing activities and ~$0.B from QG3 return of capital. 5

6 205: Continued Strong Operating Performance Financial Strategic Operational 44% 4% 4% $2.2B 7 5% 30% Lower Revenue 205 vs. 204 Capital Reduction 205 vs. 204 Operating Cost Reduction 205 vs. 204 Disposition Proceeds Major Project Startups 205 Production Growth Incident Rate Improvement 205 vs. 204 Operating costs include special items and is a non-gaap measure. A non-gaap reconciliation is available on our website. 2 Includes ~$0.3B from liquidation of certain deferred compensation investments accounted for as cash from investing activities and ~$0.B from QG3 return of capital. 3 Production growth is from continuing operations, adjusted for Libya, downtime and dispositions. 6

7 Relentless Focus on Safety and Execution Delivering Results Personal safety performance, best on record in 205 Life Saving Rules Improved process safety performance in 205 Implementation and verification of Life Saving Rules delivering results Focused on strengthening safety barriers and learning from incidents Environmental strategy focused on reducing spills & greenhouse gasses 0.8 ConocoPhillips Total Recordable Rate Sector Total Recordable Rates Construction Industry Utilities Mining, Quarry, Oil & Gas Total Recordable Rate is defined as the number of safety incidents per 200,000 hours data represents Upstream business from previously integrated ConocoPhillips. 2 U.S. Bureau of Labor Statistics. Incidence rates and numbers of nonfatal occupational injuries by private industry sector, % INCIDENT RATE IMPROVEMENT 205 vs

8 Sustainability: Economic, Environmental and Social Performance Core part of our SPIRIT Values Reducing emissions across portfolio Continuing to engage stakeholders EMISSION REDUCTIONS Action plans provide focus on performance External recognition of performance ] 6.8 MILLION TONNES OF GHG EMISSIONS REDUCED SINCE 2009 STAKEHOLDER ENGAGEMENT 8

9 Total Shareholder Return, Goal to Outperform Through Cycles Total Shareholder Return 205 Total Shareholder Return 2 Since Spin 0.3% -29% -34% -8% ConocoPhillips Integrated Peer Independent Peer S&P 500 E&P Companies Period covers Jan, 205 Dec 3, 205 and assumes all dividends re-invested. 2 Period covers May, 202 Dec 3, 205 and assumes all dividends re-invested. 9

10 Period of Lower Prices Continues $20 Brent Price $/BBL Macro Environment Weak commodity price environment continued into 206 $00 Significant oversupply in market continues Ongoing concern about global economic & oil demand growth $80 $60 $40 $20 $0 As of 04/29/206 2 As of 05/06/206 Historical Prices ~$36/BBL AVERAGE OIL PRICE 206 YTD Forward Curve Industry Environment Rating agencies materially lowered long-term price outlooks Significant industry credit downgrades Shrinking debt capacity within ratings across industry ConocoPhillips Response Exercised capital flexibility Continued to reduce operating costs Reduced the dividend 0

11 Exercising Flexibility, Maintaining Flat Production $20 $6 $2 $8 $4 $0 $7.B Capital Operating Costs $0.B $.4B REDUCTION $5.7B E $2 $0 206E: $5.7B 206E: $7.0B $8 $6 $4 $2 $0 $9.7B $8.0B $2.7B REDUCTION $7.0B E,600, Production E FLAT PRODUCTION 206 vs E:,500,540 MBOED Cut discretionary programs across portfolio Retaining acreage and future optionality Driving sustainable reduction Maintaining core capabilities Major project ramp ups offsetting decline Significant growth inventory for upcycle Operating costs exclude special items and is a non-gaap measure. A non-gaap reconciliation is available on our website. 2 Production excludes Libya and is normalized for impacts from asset sales completed in 205.

12 Setting a Sustainable Dividend for the Cycles Dividend competitive with E&P s Remains core part of our offering Provides financial flexibility through current cycle Significant reduction in portfolio breakeven price Positions for the recovery; increases financial flexibility 2

13 Creating Value Through the Cycles Financial Priorities Portfolio Attributes Allocation Principles Diverse, low-decline base production Large, low cost of supply resource base Growing Dividend Target annual real growth Strong Balance Sheet Reduce debt to less than $25B Flexible, short-cycle investment options + RETURNS Lower-risk, medium-cycle projects Sustained low cost structure Disciplined Growth Per share competes with absolute growth; focused on returns 3

14 High-Quality Global Portfolio Production Reserves Resources,525 MBOED 8.2 BBOE 2 44 BBOE 3 33% 23% 22% 9% 22% 0% 2% 4% 8% 7% 0% 32% 6% 6% 46% APME Canada Europe & North Africa Alaska Lower Production normalized for 205 asset sales. 2 YE 205 Reserves 3 YE 204 Resources 4

15 Diversified Portfolio Provides a Unique Advantage Canada ~280 MBOED Surmont 2 on line, adding to low decline base Europe ~205 MBOED New projects and drilling offset decline Alaska ~80 MBOED New projects and drilling offset decline Lower 48 ~50 MBOED Exercising flexibility, focusing on highest return options APME ~350 MBOED APLNG on line and production ramping up 205 Production. Excludes Libya, normalized for 205 asset sales 5

16 Focused on Delivering Value in Challenging Environment DIVIDEND SUSTAINABLE LEVEL FOR NEW ENVIRONMENT LOWERING PORTFOLIO BREAKEVEN PRICE Exercising a prudent plan in weak price environment Safely and responsibly executing on our plans Focused on lowering the break-even cost of the business ~30% OPERATING COST REDUCTION 206E VS BBOE RESOURCE BASE SUSTAINS LONG- TERM GROWTH 2 Commitment to return cash to shareholders through the cycles Focused on disciplined growth, strong balance sheet & financial returns Operating costs excludes special items and is a non-gaap measure. A non-gaap reconciliation is available on our website. 2 YE 204 Resources 6

17 Committed to SPIRIT Values 7