John LoweExecutive Vice President, Planning & Strategic Transactions

John LoweExecutive Vice President, Planning & Strategic TransactionsMeet Alaska Conference

January 24, 2003

Meet Alaska Conference

January 24, 2003

A New Integrated Major

2000 2001 2002

DEFSDEFS

ARCO AlaskaARCO Alaska

CPChem JVCPChem JV

Gulf CanadaGulf Canada

TOSCOTOSCO

Who We Are

• 58,000 employees and $77 billion of assets

• Diversified portfolio of legacy E&P assets based predominately in OECD nations

• Large presence in U.S. refining and marketing

• Joint Ventures in worldwide chemicals and North America midstream

• A- Credit Rating

• 58,000 employees and $77 billion of assets

• Diversified portfolio of legacy E&P assets based predominately in OECD nations

• Large presence in U.S. refining and marketing

• Joint Ventures in worldwide chemicals and North America midstream

• A- Credit Rating

What Do We Want To Look Like

• Increased portfolio of E&P legacy assets with improved returns

• Rationalized RM&T with higher returns

• Lower cost structure

• Reduced debt

• Increased portfolio of E&P legacy assets with improved returns

• Rationalized RM&T with higher returns

• Lower cost structure

• Reduced debt

Higher overall company ROCE

Strategic Objectives

100% replacement plus100% replacement plusReservesReserves

65% of portfolio65% of portfolioUpstream assetsUpstream assets

+$1.25 billion/yr+$1.25 billion/yrSynergiesSynergies

Low 30%Low 30%Debt ratioDebt ratio

12-14%12-14%Mid-cycle* ROCEMid-cycle* ROCE

TargetTarget

*Normalized assumptions: $20 WTI, $3.25 HH, $3.25 GC Crack

How Do We Get There

DisciplinedApproach

DisciplinedApproach

Costs Capital

BalanceSheet

Upstream Strategy

•Rationalize & high-grade portfolio

•Build new legacy positions through focused BD and

exploration

•Profitably grow production and reserves

•Increase ROCE

•Rationalize & high-grade portfolio

•Build new legacy positions through focused BD and

exploration

•Profitably grow production and reserves

•Increase ROCE

Portfolio Management

ModeratePerformingBusinesses

HighPerformingBusinesses

LowerPerformingBusinesses

MajorProject

Investments

DisposeDispose

ImproveImprove

Performance Criteria• High returns• Strategic fit• Growth potential

Performance Criteria• High returns• Strategic fit• Growth potential

Upstream Today

Operating in 15 countries

Exploring in 12 others

Legacy Positions

• Production 1.6 MMBOED• Production 65% Oil, 35% Gas• Reserves 8.7 BBOE *• U.S. reserves 42%, International 58%

Year-end 2001 Pro Forma * Includes proven Canadian Syncrude reserves of 280 MMBOE

AlaskaAlaska

0.00.20.40.6

0.81.01.21.4

2003 2004 2005 2006

0.00.20.40.6

0.81.01.21.4

2003 2004 2005 2006

ProductionProduction

MM

BO

ED

MM

BO

ED UK / NorwayUK / Norway

Lower 48Lower 48

CanadaCanada

AlaskaAlaska

North America And Europe Legacy Businesses

Strong foundation for worldwide growth

CanadaCanada

Lower 48Lower 48

EuropeEurope

Production Growth

0.00.20.40.60.81.01.21.41.61.8

2002* 2003 2004 2005 2006

MM

BO

ED

0

100

200

300

400

500

600

MM

BO

E

NorthAmerica

Europe

Rest ofWorld

CAGR 3%

* Adjusted for dispositions

Exploration Focus

UK / Norway UK / Norway

NW North America

West AfricaWest AfricaVenezuelaVenezuela

Gulf of Mexico Gulf of Mexico

Asia Pacific

Asia Pacific

Caspian Caspian

• Concentrating in 7 areas• Rationalizing portfolio• Further improve positioning

New venture option

Downstream Strategy•Operating reliability with

low cost structure

•Rationalize assets

•Superior execution of clean fuels projects

•Capitalize on proprietary technology positions

•Improve ROCE

•Operating reliability with low cost structure

•Rationalize assets

•Superior execution of clean fuels projects

•Capitalize on proprietary technology positions

•Improve ROCE

Global Downstream Portfolio

17000 branded outlets

$10.0 B capital employed

12 refineries – 2166 MBD

United States

2900 outlets in 17 countries

$1.5 B capital employed

6 refineries – 440 MBD

International

CommercialStrategy

• Maximize value through supply chain

• Add value through trading around assets

• Disciplined processes

• Maximize value through supply chain

• Add value through trading around assets

• Disciplined processes

Commercial Business Scope

HoustonHouston

LondonLondon

SingaporeSingapore

Calgary Calgary

Equity Liquids Production 1.0 MMBD

Equity Gas Production 3.5 BCFD

Crude Processed 2.5 MMBD

Light Oils Marketed 2.4 MMBD

NGL’s Marketed 0.5 MMBD

Employees 550

The great scale of our Upstream and Downstream operations creates significant commercial opportunities

The great scale of our Upstream and Downstream operations creates significant commercial opportunities

Our Strategy

• Enhance profitability and returns

– Cost discipline / synergy capture

– Capital discipline and portfolio rationalization

• Reduce debt

• Strengthen portfolio of upstream growth opportunities

• Significantly improve downstream returns

• Enhance profitability and returns

– Cost discipline / synergy capture

– Capital discipline and portfolio rationalization

• Reduce debt

• Strengthen portfolio of upstream growth opportunities

• Significantly improve downstream returns

The presentation at this meeting contained forward-looking statements about ConocoPhillips’ consolidated business and the following operating groups: petroleum exploration and production; natural gas gathering, processing and marketing; petroleum refining, marketing and transportation; and chemical and plastics manufacturing. Where, in any forward-looking statement, the company expressed an expectation or belief as to future results, such expectation or belief was expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that the statement of expectation or belief will result or be achieved. The actual results may be affected by a variety of risks which could cause the stated expectation or belief to differ materially.

The important risk factors, but not necessarily all such factors that may cause expectations or results to differ, are set forth in ConocoPhillips’ reports filed with the U.S. Securities Exchange Commission.

Cautionary Statement for the Purposes of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995

Cautionary Statement for the Purposes of the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995