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CreatingTwoLeading EnergyCompanies

AnalystMeeting July14,2011

CautionaryStatement
FORTHEPURPOSESOFTHE SAFEHARBOR PROVISIONS FOR THE PURPOSES OF THE SAFE HARBORPROVISIONS OFTHEPRIVATESECURITIESLITIGATIONREFORMACTOF1995
The following presentation includes forwardlooking statements These statements relate to future events forward looking statements. events, such as anticipated revenues, earnings, business strategies, competitive position or other aspects of our operations or operating results. Actual outcomes and results may differ materially from what is expressed or forecast in such forwardlooking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions that are difficult to predict such as oil and gas prices; refining and marketing margins; 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 g, g y g p y ; y g 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 p , g , pp 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).

HistoricalStrategy
KeyPremises i

Integrationcreatesvalue Scaleandscopeneededtocompete p p Growthinhydrocarbondemand Resourcecapturewillbemoredifficultandexpensive

Execution

Positionedeachbusinesslinetocompeteeffectively Positioned each business line to compete effectively

E&P,R&M,MidstreamandChemicals

Qualityassets butportfoliooptimizationneeded M&Aintegrationandcostsynergiescaptured

Ledtosignificantvaluecreation L d i ifi l i
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CurrentFocus
CashfromOperations

ROCEimprovement Marginenhancement Persharegrowth Shareholderdistributions


E&P R&M Other OECD

16%

84% NonOECD

$92BCapitalEmployed
9% 25% 66%

Increasingshareholdervalue
2010cashfromoperationsandaveragecapitalemployed.Corporatecapitalemployeddistributedacrosssegments.

CurrentStrategicObjectives
ImproveROCE

ExpandmarginsperBOE Maintaincapitaldiscipline i i i l di i li Portfoliooptimization

Growpershare

Reservesandproduction Earningsandcashflow Earnings and cash flow

Increasedistributions

Annualdividendincreases Sharerepurchases

Creatingshareholdervalue
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Key2011/2012Initiatives
Disciplined$28Bcapitalprogram Additional$510Binassetsales $10+Binsharerepurchases 100%+reservereplacement 100%+ reserve replacement Reducerefiningcapacity

ImproveROCE
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StrategyAssessment
IntegratedStrategyhasbeeneffective Inte rated Strate has been effe ti e

Increasedreservesandproduction Generatedcompetitiveshareholderreturns Generated competitive shareholder returns

Environmenthaschanged
Downstreamcapabilitynotkeytoresourceaccess Downstream capability not key to resource access ResourceNationalismandNOCcompetition Movementtoserviceagreements

ValueofIOCassetsnotreflectedinequityvalue
Transparencyandpotentialofbusinessesnotasclearaspureplays IncreasinglydifficulttocreatedifferentialvaluetolargerIntegrateds Emphasisonadditionalvolumesnotalwaysvaluecreating Continuallytestingandassessingexecutionofstrategy
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TransactionSummary
PursuingtaxfreespinofDownstreambusiness NewindependentpureplaypubliclyheldDownstreamcompany ConocoPhillipsbecomesleadingpureplayE&Pcompany p gp p y p y Expecttransactioncompletioninfirsthalf2012

Createstwostrongindependentcompanies C t t t i d d t i
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StrategicRationale
Createtwoprofitableandindependentcompanies

E&PStrategyunchanged Downstreamgivenopportunitytoaddvaluethroughportfoliooptimization D i i dd l h h f li i i i Independentbutconsistentstrategies Independent but consistent strategies Bothcompaniescontinuetobenefitfromsizeandscale Bothcompaniestohavestrongfinancialflexibility Both companies to have strong financial flexibility Transparencyofpureplayoverintegratedbusinessmodel Managementfocus g Abilitytoattractandretaintalent

Greatestopportunitytocreatedifferentialvalue

NewConocoPhillipsDescription
LargestU.S.pureplayE&Pcompany

1.7MMBOED2011production 8.5BBOEreserves/43BBOEcapturedresource 8 5 B BOE reserves / 43 B BOE captured resource StrongOECDposition


InsertUpstreamPicture I U Pi

Financialandtechnicalcapabilityonparwith largerintegratedmajors Nochangeinupstreamstrategy

ImproveROCE Improve ROCE Persharegrowthinproductionandreserves Completeportfoliostrengthening Capitaldiscipline CompetitiveF&D ImprovemarginsperBOE Improve margins per BOE

Assetdispositionandsharerepurchaseplansunchanged
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E&POverview
Alaska 240MBOED
Largestoil&gas producer

NorthSea 350MBOED
Highvalueexploitation &majorprojects

Russia/Caspian 50MBOED
Largeresourcepotential

Canada 270MBOED Lower48 440MBOED 440 MBOED


Competitive opportunityset WorldclassSAGD1 portfolio&new portfolio & new resourceplays

AsiaPacific 280MBOED
Diverse&expanding Diverse & expanding legacyposition

Total2010Production 1.75MMBOED 1 75 MMBOED


~80%OECD
2011Exploration&appraisalactivity

MiddleEast&Africa Middle East & Africa 120MBOED


Oilproducingbaseassets withLNGgrowth

InternationalgrowthopportunitiesunderpinnedbyOECDposition
1

SteamAssistedGravityDrainage

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ConocoPhillipsProduction
Q12011WorldwideProduction MMBD
4.8

PeerGroup DomesticIntegrated
3.6 3.5 2.8 2.4 1.7

DomesticPurePlays

0.7

0.7

0.7

0.6

0.4

0.4

0.4

0.2

th on

CV X

ch e

BP

da rk o

vo n

RD S

TO

CO

ss

An a

G Re

Source:Companyreports

EO

ur ph yO

OX

so ur ce

XO

Ap a

De

ar a

He

il

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ProductionOutlook
ProductionbyProduct MMBOED
2.5
Liquids LNG Int'lgas NAmericagas

SourcesofGrowth
AsiaPacific

2.0

APLNG,Malaysia,Indonesia

NorthSea
1.5

Jasmine,Clair,Ekofisk,Eldfisk J i Cl i Ek fi k Eldfi k

Caspian
1.0 10

Kashagan

L48liquids
0.5

EagleFord,Bakken,Barnett,Permian

CanadaSAGD
0.0 2010 2015E

FCCL,Surmont

Strongportfolioofinvestmentsleadstoproductiongrowth
Excludesimpactoffuturedispositions.

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20112015NewProduction
MBOED Asset/Region RestofWorld OtherL48& WCanada NorthSea N th S 2010CashMargins Various $14 $40/BOE

800

600

$29/BOE $29 / BOE $30/BOE $31/BOE

400

SAGD L48liquidsgrowth

200

AsiaPacific

$35/BOE

0 2010 2011E 2012E 2013E 2014E 2015E

Qatargas3

Attractive

Improvingmarginsthroughmajorprojectsandexploitation
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NewDownstreamCompany
GlobalRefining&Marketingleader

2.4MMBPDworldwiderefiningcapacity Lowcost,integratedMarketingandTransportation 2MMBPDdomesticcapacity

Significantpositioninmidcontinent ExposuretoallPADDs
InsertDownstreamPicture I D Pi

Stronginvestmentgradecreditwithsignificant financialflexibility Strategyfocusedonvaluecreation

ImproveROCEtomidteens Sellorjointventurelesscompetitiveassets Disciplinedreinvestmentoffreecashflow p LTAssets Competitiveshareholderdistributions Earningsandcashflowgrowthpotential Operatingexcellence Operating excellence

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U.S.Refining
Q12011U.S.RefiningCapacity MMBD
2.2 2.0 20 1.9

PeerGroup DomesticIntegrated DomesticPurePlays


1.5 1.1 0.9 0.8 0.7 0.5 0.4 0.2 0.2

Valero

COP

XOM

BP

Marathon

CVX

RDS

Tesoro

Sunoco

HOC/FTO

TOT

Murphy

Leadingdomesticrefiningcompanywithportfoliooftopquartileassets Leading domestic refining company with portfolio of top quartile assets
Source:Companyreports

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DownstreamROCEImprovement
Selectiveassetsales FinalizationofWoodRiverCOREproject Finalization of Wood River CORE project Capitaldiscipline

Implementingselectivehighreturnprojects

Optimizationinitiatives

Increaseutilizationandcleanproductyield Lowercoststructure Lower cost structure Capturefeedstockadvantage Generatemidteensreturnsandfreecashflow


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KeyMilestones
DetailedseparationplanningfollowedbyIRStaxrulingrequest Announcementofnewboardandleadershipteams Announcement of new board and leadership teams FavorableIRSruling FinalCOPBoardapproval Expectedclosingfirsthalfof2012 Expected closing first half of 2012

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DeliveringShareholderValue

Continuedassetsales StrongOECDbasedcashflow Enhancedqueueofgrowthprojects Disciplinedcapitalinvestment Strengthenedportfolio

100%+reservesreplacement p Productionpersharegrowth Improvedreturns EPS/CFPSgrowth / g Increaseddistributions

Restructuringconsistentwithcommitmenttoshareholderreturns
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