8/9/2019 2010 q2 Quarter Review
1/11
8/9/2019 2010 q2 Quarter Review
2/11
8/9/2019 2010 q2 Quarter Review
3/11
3SECOND QUARTER REVIEW
Second-Quarter 2010 Highlights
6% Increase in Sales Volumes Over 2Q09
15% Improvement in LOE Over 2Q09
Shale Plays on Significant Growth Trajectory
Ongoing Appraisal Success
Mega Projects Remain On-Time and On-Budget
8/9/2019 2010 q2 Quarter Review
4/11
4SECOND QUARTER REVIEW
Strong Performance
Achieved Strong Quarterly Sales Volumes
59 MMBOE in 2Q10 vs. 56 MMBOE in 2Q09
75% Growth From Shale Plays vs. 1Q1010% Growth From the Rockies Region vs. 2Q09
16% Increase in Liquids Volumes vs. 2Q09
Reduced LOE per BOE by ~15% Year-over-Year
$3.32 per BOE in 2Q10 vs. $3.89 per BOE in 2Q09
Continued to Improve Drilling Efficiencies
8/9/2019 2010 q2 Quarter Review
5/11
5SECOND QUARTER REVIEW
North American Shales
Eagleford (~400,000 Gross Acres)
Achieved Record Cycle Time of 13 Days
Running 6 Operated RigsRealizing EURs of 300,000+ BOE
~2,000 Drilling Opportunities
Marcellus (~760,000 Gross Acres)
Achieved Record Cycle Time of 23 Days
Running 6 Operated Rigs (15 Non-Operated)
Realizing EURs of >4 Bcf per Well
>1 BBOE of Net Risked Captured Resource Potential
Reaching Critical Mass
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6/116SECOND QUARTER REVIEW
Enhancing Margins w ith Higher Liquids
Bone Spring
Ramping Activity (4 Operated Rigs)
Achieved IPs of >1,000 BOPDNatural Gas Component with High BTU Content
Additional Potential in the Avalon Shale
Horizontal Niobrara
Control More Than 500,000 Net Acres
Land Grant Fee Acreage Owned in Perpetuity
Plan to Drill 6 to 10 Wells Beginning in 3Q10
Received Data Through Farm-Out Agreements
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7/117SECOND QUARTER REVIEW
Advancing Sanctioned Mega P rojects
Jubilee (Ghana)FPSO Moored on Location
Completions and Installations Under Way
Caesar/Tonga (GOM)All Heavy Topsides Lifts Completed
Subsea Installations Under Way
El Merk (Algeria)Drilled >50% of 140 PlannedDevelopment Wells
Construction Progressing
ElEl MerkMerk
Caesar/TongaCaesar/Tonga
JubileeJubilee
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8/118SECOND QUARTER REVIEW
Deepwater Update
Announced 3 Successful Appraisal WellsLucius (GOM): 650+ Net Feet of PayVito (GOM): ~250 Net Feet of Pay
M-5 (Ghana): ~75 Net Feet of PayCompleted Callisto and Merganser Wells at I-Hub
Successful DST at Wahoo#1
Capable of Producing at a Sustained Rate of >15,000 b/dAnnounced Significant New Discovery in Ghana
Owo-1 Well: ~174 Net Feet of High-Quality Oil Pay
Gulf of MexicoGulf of Mexico
MozambiqueMozambique
GhanaGhana
BrazilBrazil
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9/119SECOND QUARTER REVIEW
Financial Results
$ Millions
Net Income (Loss) Attributable toCommon Stockholders Cash Flow**
Per Share Diluted$(0.48)$(0.08) $0.49 $(0.57)
Per Share Diluted
** Discretionary cash flow from continuing operations: Cash flow before changes in assets and liabilities. See earnings release for detail andreconciliation to GAAP.
* Excludes certain items affecting comparability. See page 6 in the Aug. 3, 2010 earnings release for details.
Reported Reported Adjusted* Adjusted*
$(40) $(226)
2Q10
$244
$(265)
2Q10 2Q09 2Q10 2Q09
$1,278 $1,516
2Q09
8/9/2019 2010 q2 Quarter Review
10/1110SECOND QUARTER REVIEW
Enhancing Liquidity and Financial Flexibility
Ended 2Q10 with ~$3.4 Billion of Cash on Hand
Fully Underwritten $5 Billion 5-Year Credit FacilityWill Replace $1.3 Billion Undrawn Revolver Expiring in 2013
Fully Underwritten $1.5 Billion 6-Year Term LoanWill Refinance $1.3 Billion of Debt Scheduled to Mature in 2012
Received Incremental ~$450 Million from WES Dropdown
8/9/2019 2010 q2 Quarter Review
11/1111SECOND QUARTER REVIEW
Keeping Our Eye on the Future
Raising Sales Volumes Guidance Without Increasing Capital
New Full-Year Sales-Volumes Guidance is 232 - 236 MMBOE
Reaffirming Full-Year Capital Spending of $5.3 - $5.6 Billion
Focused on 5-Year Plan7% - 9% Production CAGR
3 BBOE of Proved Reserves in 5 Years
Deliver Next Generation of Mega Projects
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