CONOCOPHILLIPS Fourth Quarter 2011 Repositioning: The future takes shape Aviation achieves higher altitudes of service ConocoPhillips honors the military service of employees “America needs cleaner energy.” “America needs affordable energy.” Who’s right? They both are. That’s why, at ConocoPhillips, we’re helping to power America’s economy by safely accessing one of America’s most abun- dant energy resources: natural gas. Which creates jobs. Has less emissions. And answers both their concerns. To find out why natural gas is the right answer, visit PowerInCooperation.com © CoCononococoPhhilillilipss Como paanyny. 20201111. AlA l riighhtst rese ere veved.d Sharing Insights Ryan Lance, future Chairman and CEO of the new ConocoPhillips We are entering a new era for ConocoPhillips, and I am excited to be the designated chairman and CEO at such an important time. I realize that the repositioning effort is often tedious – with many moving parts and pieces – and appreciate the patience and focus employees have demonstrated as all the vital ele- ments gradually come together. It will take our combined efforts to complete this transition as smoothly as possible, and I couldn’t be more confident in our success. As I think about our future, opportunities to pursue new exploration plays, grow production of nonconventional oil and gas, and find better ways to do our jobs together go through my mind. Our possibilities are amazing. As a pure-play company, we will be more agile – able to act faster and with greater focus – to capture these opportuni- ties. I look forward to working with both the current and future skilled and talented ConocoPhillips employees, as we embark on this journey. Throughout my career, I have experienced a great deal of change and have learned that change drives progress and achievement. Our future is bright, and together, we can help ConocoPhillips become not only the largest player in the independent exploration and production sector, but the acknowledged leader in efficiency and competitiveness. I believe that the best is yet to come for our company. Greg Garland, future Chairman and CEO of Phillips 66 This is an exciting time in our history, and it was with great enthusiasm that I accepted the role as future chairman and CEO of Phillips 66. Before returning to ConocoPhillips in 2010, I had the pleasure of being the CEO of Chevron Phillips Chemical, our chemicals co-venture that contributes substantially to our com- pany’s profitability by extending our presence in the energy value chain. But far from being a newcomer, I began my career with Phillips in 1980 and worked more than 20 years in a variety of technical and management positions in the plastics, planning, technology, and exploration and production arenas. So, like many of my fellow employees, my connections to ConocoPhillips run deep. It is those strong connections that give me confidence in our ability to successfully reposition our company and provide Phillips 66 with the capability to prosper as a separate entity. The businesses that will make up Phillips 66 – refining and marketing, chemicals, and midstream – are already leaders in their industry segments. As always, our job remains supplying consumers and business with the fuels and petrochemicals that are essential to modern life. With such strong positions in all our businesses, I look forward to the opportunities and the challenges that tomorrow will bring and to leading a highly experienced, capable, diverse and knowledgeable global workforce during the years ahead. Editor’s Note: In addition to the latest news on repositioning, this issue of spirit Magazine delivers profiles of Corporate Aviation, Kuparuk and the 2011 Subsurface Symposium; a heartfelt testimonial to our military reservists and veterans; vibrant pictorials of the San Juan Business Unit’s recent Native American Appreciation Day and the Tour de Timor bicycle rally; two new Faces of ConocoPhillips profiles; and 15 pages of timely company news. The staff of spirit Magazine would like to wish all of our readers Happy Holidays and best wishes for a safe, productive and exciting 2012. spirit Magazine 1 spirit Magazine Fourth Quarter 2011 Contents ConocoPhillips in Photos 4 Albuquerque International Balloon Fiesta Repositioning efforts gain momentum 6 Kristi Richardson Milestones bring the future into focus Corporate Aviation Services | Janet Hardy 14 Achieving higher altitudes of service Kuparuk | Amy Jennings Burnett 24 Alaska oil field celebrates a rite of passage Military Service | Monica Silva 32 Reservists and veterans deliver value from sea to shining sea Twin Otter plane leaving Deadhorse, Alaska, hangar San Juan Powwow | Patrick Currey 40 Native American Appreciation Day Tour de Timor | Catherine Biss Faces of ConocoPhillips 46 Australia Business Unit participation gets 56 The Wall Family: Leaving a legacy bigger, better and tougher David Berryman: Fretting to relieve stress Subsurface Symposium | Nellie Betzen In the News 50 Geologists, geophysicists and reservoir 62 A compilation of news from around engineers connect ConocoPhillips’ world On the Cover | photography by Hall Puckett ConocoPhillips Chairman and CEO Jim Mulva with Ryan Lance, future chairman and CEO of the new ConocoPhillips, and Greg Garland, future chairman and CEO of Phillips 66 Then & now Teesside by Garth Hannum moved forward and the techniques the analysts During a recent trip to ConocoPhillips’ use are much improved. The main difference North Sea assets, Senior Videographer Garth between the two photos is the focus on safety, in Hannum noticed a photograph hanging on the particular the PPE, or lack thereof, in the early wall near the entrance to the lab at the Teesside photo, which is missing eye protection, flame- Terminal on the U.K.’s east coast. “I thought it retardant coveralls and protective footwear. would be interesting if we could recreate the The photo gives further proof of how original photograph using the lab as it looks today.” Volunteers John Bell, Paul Rovardi, Mike Dietz and Philip McConnell studied the photo, found the necessary props and struck a pose. With the help of Technical Analyst Paul Rovardi, the original photo was found to have been taken in the early 1980s and featured employees Brian Henderson Tynne, John Fitzgibbon, John Spink and Chris Williams. The lab is a gas chromatography laboratory where natural gas liquids (NGLs) are analyzed. Today, the function of the labo- ratory remains basically the same, although the technology has CConocoPhillips,o aandn the industry as a wwhole, has taken sseriouse measures ttoo improve worker ssafetya standards that hhave become part of oour everyday culture aand SPIRIT values at wwork and at home. ConocoPhillips in Photos Albuquerque | photography by Garth Hannum For the first time, the Phillips 66® brand flew its logo balloon at the Albuquerque International Balloon Fiesta (AIBF) Oct. 1-9. Hundreds of thousands of people attended the fiesta and were treated to more than 500 colorful hot air balloons floating through the picturesque Albuquerque sky. In addition to the Phillips 66 balloon located in the prominent position in front of the local NBC and ABC affiliates stages, Phillips 66 ban- ners were seen around the field, and thousands of Phillips 66 Frisbees were given away to help build brand affinity in that market. Phillips 66 Street Teams roamed the field to help consumers learn more about the Phillips 66 Local Legends promo- Above: Phillips 66 balloon pilot Sean Askrew fires tion and encourage participation and traffic back the propane burner during the Sunday Night Balloon Glow. Left: Balloons known as special shapes are to Phillips 66 stations. always a crowd favorite. Below: Phillips 66 Frisbees Leading up to the AIBF, Phillips 66 ran a were a popular giveaway at the 40th AIBF. Balloon Trading Card promotion in stores with an instant-win scratch-off on the back of each The Albuquerque International Balloon Fiesta card. Consumers were encouraged to come in was a great way to build brand awareness, sup- each week during September leading up to the port our customers and promote the new Local AIBF to collect all four trading cards. Legends campaign. Left: Every morning, spectators arrive before sunrise for the mass ascension. It features hundreds of balloons launching in several waves and lasts up to two hours. Below left: The Phillips 66 balloon lifts off during mass ascension. Below right: Kimberly Dunman, associate promotions director, prepares for her first balloon ride with help from Dave Wright, senior sales representative, and Tami Walker, manager, Brand Management. REPOSITIONING Focus 64 ConocoPhillips ConocoPhillips moves toward a new era by Kristi Richardson with Aftab Ahmed and James Bartlett ConocoPhillips is moving toward a new era in its rich history. Since announcing plans to reposition into two leading energy firms, the company has focused on a promising future. “We’re creating these two companies out of the ConocoPhillips we know today because we believe this is the best way to succeed and be competitive over the long term,” Chairman and CEO Jim Mulva said. “By adapting to shifting markets and political environments, winning companies put themselves in the best position to succeed.” on the future REACHING MAJOR MILESTONES Repositioning is a complex process, and early on, the transition steering committee laid out progressive milestones that had to be met to enable completion of the transition during the second quarter of 2012. Their efforts, with the help of eight transition teams, employ a highly organized, deliberate approach that has achieved steady progress since the initial announce- ment on July 14. One of the most significant milestones was the naming of chairman and CEO designees for the two future companies. Greg Garland, senior vice president, Exploration and Produc- tion, Americas, will lead the new downstream company, Phillips 66. It will be headquartered in Houston. The future ConocoPhillips will also remain in Houston under the leadership of Ryan Lance, senior vice president, Exploration and Production, International.