2010 q2 Quarter Review

8/9/2019 2010 q2 Quarter Review

1/11


2/11


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


4/11


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


5/11


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


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



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



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



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



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



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

Documents

2010 q2 Quarter Review