-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Cqmga+S5vyf5bJ3a8kJT42a9IEyQb8gn/qlL5TOQiKq6wBDAtlH+cuGFP/Gn+hwR fUe5/hSEuJ1CU/2K2mLcJw== 0001157523-03-003470.txt : 20030730 0001157523-03-003470.hdr.sgml : 20030730 20030730125916 ACCESSION NUMBER: 0001157523-03-003470 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20030730 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030730 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CONOCOPHILLIPS CENTRAL INDEX KEY: 0001163165 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 010562944 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-49987 FILM NUMBER: 03810792 BUSINESS ADDRESS: STREET 1: CONOCOPHILLIPS STREET 2: 600 NORTH DAIRY ASHFORD ROAD CITY: HOUSTON STATE: TX ZIP: 77079 BUSINESS PHONE: 2812931000 MAIL ADDRESS: STREET 1: CONOCOPHILLIPS STREET 2: 600 NORTH DAIRY ASHFORD ROAD CITY: HOUSTON STATE: TX ZIP: 77079 FORMER COMPANY: FORMER CONFORMED NAME: CORVETTEPORSCHE CORP DATE OF NAME CHANGE: 20011204 8-K 1 a4444577.txt CONOCOPHILLIPS 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): July 30, 2003 ConocoPhillips (Exact name of registrant as specified in its charter) Delaware 000-49987 01-0562944 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation) File Number) Identification No.) 600 North Dairy Ashford Houston, Texas 77079 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (281) 293-1000 Item 7. Financial Statements and Exhibits (c) Exhibits 99.1 -- Press release issued by ConocoPhillips on July 30, 2003. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. Item 12. Results of Operations and Financial Condition On July 30, 2003, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2003. A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference. Additional financial and operating information about the quarter is furnished as Exhibits 99.2 and 99.3 to this report and incorporated by reference herein. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CONOCOPHILLIPS /s/ John A. Carrig ------------------------------------------- John A. Carrig Executive Vice President, Finance and Chief Financial Officer July 30, 2003 EXHIBIT INDEX Exhibit No. Description 99.1 -- Press release issued by ConocoPhillips on July 30, 2003. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. EX-99 3 a4444577ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 ConocoPhillips Reports Second Quarter Net Income of $1.1 Billion; Solid Operating Performance Drives Debt Reduction HOUSTON--(BUSINESS WIRE)--July 30, 2003--ConocoPhillips (NYSE:COP) Earnings at a glance Second Quarter Six Months ---------------------------- ---------------------------- 2003 2002 2003 2002 -------------- ------------ -------------- ------------ Income from continuing operations $1,079 million $312 million $2,349 million $214 million Income from discontinued operations $59 39 $81 35 Cumulative effect of change in accounting principle $- - $145 - Net income $1,138 351 $2,575 249 - ---------------------------------------------------------------------- Diluted income per share Income from continuing operations $1.58 0.81 $3.44 0.55 Net income $1.66 0.91 $3.77 0.65 - ---------------------------------------------------------------------- Revenues $25.6 billion $10.5 billion $52.7 billion $18.9 billion - ---------------------------------------------------------------------- ConocoPhillips (NYSE:COP) today reported second quarter net income of $1,138 million, or $1.66 per share, compared with $351 million, or 91 cents per share, for the same quarter in 2002, which was prior to the ConocoPhillips merger. Total revenues were $25.6 billion, versus $10.5 billion a year ago. Income from continuing operations for the second quarter was $1,079 million, or $1.58 per share, compared with $312 million, or 81 cents per share, for the same period a year ago. After-tax items impacting second quarter income from continuing operations included charges of $135 million for merger-related expenses and contingency accruals, as well as $25 million related to marketing lease-loss accruals. Also included were the benefits of an $87 million net gain from changes in certain international tax laws and $55 million related to the Bayu-Undan project in the Timor Sea. "We are pleased with our operating and financial performance during the second quarter," said Jim Mulva, president and chief executive officer. "Operationally, upstream production was 1.64 million barrels-of-oil-equivalent (BOE) per day during the quarter and 1.63 million BOE for the first half of 2003. Our refining and marketing business also had another solid quarter as our refineries ran at 96 percent of capacity. "This operating performance combined with solid commodity prices, disciplined capital spending, asset sales, and the financial benefits of our synergy initiatives contributed to continued strong earnings and allowed us to reduce our debt by $2.2 billion so far this year." For the first six months of 2003, net income was $2,575 million, or $3.77 per share, versus $249 million, or 65 cents per share, for 2002. Income from continuing operations was $2,349 million, or $3.44 per share, compared with $214 million, or 55 cents per share, for the same period a year ago. Total revenues were $52.7 billion, versus $18.9 billion a year ago. The ConocoPhillips merger was consummated on Aug. 30, 2002, and used purchase accounting to recognize the fair value of the Conoco assets and liabilities. While the results of the second quarter and first six months of 2003 reflect the operations of the combined company, the second quarter of 2002, as well as the first six months of 2002, reflect only Phillips' results, restated for discontinued operations. Definitive sales agreements for all asset dispositions required by the Federal Trade Commission (FTC) have now been executed and, pending FTC approval, these agreements are expected to close by the end of the third quarter. The results of ConocoPhillips' business segments follow. Exploration & Production (E&P) Second quarter financial results: E&P income from continuing operations in the second quarter was $1,070 million, down from $1,137 million in the first quarter of 2003 and up from $339 million in the second quarter of 2002. The decrease from the first quarter was primarily the result of lower realized crude oil and natural gas prices and foreign currency exchange losses, partially offset by tax law changes in certain jurisdictions and increased production. Improved results from the second quarter of 2002 were due to higher realized crude oil and natural gas prices, benefits from tax law changes in certain jurisdictions, and increased production resulting from the addition of the Conoco assets. Additionally, improvements from prior periods reflect progress made on the implementation of synergy initiatives. ConocoPhillips' daily production for the quarter was slightly above the first quarter, averaging 1.64 million BOE per day, including Canadian Syncrude. Increased production primarily in Venezuela was partially offset by seasonal declines in Alaska and the North Sea. ConocoPhillips' second quarter 2003 average worldwide crude oil sales price was $25.19 per barrel, down from $30.73 in the first quarter of 2003. The company's U.S. Lower 48 and worldwide natural gas prices averaged $4.72 and $3.93 per thousand cubic feet, respectively, compared with $5.47 and $4.49 in the first quarter of 2003. In June, the Norway Removal Grant Act (1986) was repealed. This resulted in a net after-tax benefit of $87 million in the second quarter. Also in the second quarter, in connection with the Bayu-Undan project, Australia and Timor-Leste ratified the treaty between the two nations governing fiscal and other arrangements in the Timor Sea, and the company received final approvals from the relevant authorities to proceed with the gas development phase of the project. The company recognized a $55 million benefit related to restructuring of ownership interest and other matters associated with the Bayu-Undan project. Six months financial results: E&P income from continuing operations for the first six months of 2003 was $2,207 million, up from $481 million in 2002, primarily due to additional volumes from the Conoco operations, higher realized worldwide crude oil and natural gas prices, and tax law changes. ConocoPhillips' average worldwide crude oil price was $27.82 per barrel for the first six months of 2003, compared with $21.90 for 2002. The company's U.S. Lower 48 and worldwide natural gas prices averaged $5.10 and $4.21 per thousand cubic feet, respectively, versus $2.26 and $2.27 in 2002. Midstream Second quarter financial results: Midstream income from continuing operations was $25 million, down from $31 million in the first quarter of 2003 and up from $12 million in the second quarter of 2002. The decrease from the first quarter was due primarily to lower natural gas liquids prices. The increase over the second quarter of 2002 was primarily due to higher natural gas liquids prices for Duke Energy Field Services, LLC (DEFS). Six months financial results: Midstream operating results increased to $56 million, from $24 million in 2002. Contributing to the increase were higher equity earnings from DEFS and the addition of the Conoco midstream operations. Refining and Marketing (R&M) Second quarter financial results: R&M income from continuing operations was $301 million, down from $371 million in the previous quarter and improved from $68 million in the second quarter of 2002. The decline in second quarter R&M earnings compared with the first quarter of 2003 was primarily driven by lower worldwide refining margins. These lower margins were partially offset by higher sales volumes, higher U.S. and international marketing margins, and lower utility and turnaround costs. The improved results over the second quarter of 2002 were attributable to the addition of the Conoco assets, higher refining and marketing margins, and business improvements, which included the benefits from progress made on implementing synergy initiatives. These improvements were partially offset by higher refining utility costs and marketing lease-loss accruals. The refinery crude oil capacity utilization rate averaged 96 percent, compared with 92 percent last quarter. After-tax turnaround costs were $26 million and $40 million in the second quarter and first quarter of 2003, respectively. Six months financial results: R&M income from continuing operations for the first six months of 2003 increased to $672 million, compared with a loss of $19 million in the first half of 2002. The addition of the Conoco assets, as well as increased refining and marketing margins, contributed to the increase. These increases were partly offset by higher utility costs and lease-loss accruals on the company's marketing operations. Chemicals Second quarter financial results: The Chemicals segment, which reflects the company's 50 percent interest in Chevron Phillips Chemical Company LLC, reported income from continuing operations of $12 million, compared with a loss of $23 million in the first quarter of 2003 and income of $7 million in the second quarter of 2002. Improvements from the first quarter were the result of higher margins as feedstock and utility costs trended downward. Second quarter 2003 results included approximately $6 million of after-tax charges related to severance and contingency accruals. The increase from the second quarter of 2002 primarily reflects higher margins, particularly in olefins and polyolefins. Six months financial results: During the first six months of 2003, the Chemicals segment had a loss from continuing operations of $11 million, compared with a loss of $4 million for the same period a year ago. The increased loss was primarily due to higher feedstock and utility costs in 2003, especially in the first quarter. Emerging Businesses The Emerging Businesses segment had a loss from continuing operations of $23 million in the second quarter of 2003, compared with losses of $34 million in the first quarter of 2003 and $3 million in the second quarter of 2002. The improvement from the first quarter was primarily attributable to a reduction in carbon fibers expenses, as well as reduced costs associated with a gas-to-liquids plant. The increased costs from the second quarter of 2002 resulted from the addition of the Conoco assets. Corporate and Other Second quarter after-tax Corporate expenses from continuing operations were $306 million, compared with $212 million in the previous quarter and $111 million in the second quarter of 2002. Contributing to the increase over the first quarter was a $39 million charge to accelerate the recognition of certain pension costs, which was required by accounting rules due to the number of employee retirements associated with the merger. In addition, Corporate expenses increased due to a $35 million charge for restructuring accruals and $41 million of additional merger-related expenses. Corporate charges were reduced by lower interest expense and gains on foreign currency transactions. The increase over the second quarter of 2002 included expenses associated with the addition of the Conoco assets, pension charges and other merger-related expenses. Total debt at the end of the second quarter was $17.6 billion, $600 million lower than the end of the previous quarter and $2.2 billion below year-end 2002. This improvement resulted from strong operating performance, solid commodity prices, disciplined capital spending and asset sales. At the end of the second quarter, the company's debt-to-capital ratio was 35 percent, down from 36 percent at the end of the first quarter. The company's second quarter effective tax rate of 38.4 percent was lower than that of the first quarter primarily due to the impact of changes in tax legislation in Norway and a higher proportion of income from lower-tax-rate jurisdictions in the second quarter. Discontinued Operations Second quarter 2003 earnings from discontinued operations were $59 million, compared with $22 million in the first quarter. The improvement was primarily related to higher marketing margins. Both first and second quarter earnings were negatively impacted by approximately $25 million due to lease-loss accruals on the company's downstream marketing operations. Outlook Mr. Mulva concluded: "A strong operating performance during the first half of the year, combined with above-average crude oil and natural gas prices and solid refining and marketing margins, allowed us to generate net cash from operating activities of $5.4 billion. This enabled us to fund $2.9 billion in capital expenditures, reduce debt by $2.2 billion, and pay $540 million in dividends. During this period, we improved our debt-to-capital ratio from 39 percent to 35 percent. As previously reported, implementation of two new accounting rules in the third quarter will increase our balance sheet debt by about $3 billion, however we expect our off-balance-sheet debt and minority interest to concurrently decrease by a similar amount. Our debt targets remain unchanged, and we still plan to reduce our debt-to-capital ratio to 30 percent over the next several years. "We continue to strengthen our upstream portfolio through legacy project advancement and planned asset dispositions, as well as through efforts aimed at growing our worldwide natural gas business. For example, we announced a major integrated liquefied natural gas project in Qatar, and the Mackenzie Delta participants submitted a Preliminary Information Package, in connection with a pipeline, required for the ultimate development of this area. "Downstream, we continue to make progress toward achieving higher mid-cycle margin returns through cost reduction and integration efforts. We are also looking to optimize capital spending required for clean fuels projects through implementing best practices. As announced, we reached an agreement to sell certain retail and dealer marketing sites in the Northeast, and are on track with our plan to rationalize a substantial portion of our U.S. retail marketing assets." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 55,800 employees, $81 billion of assets, and $105 billion of annualized revenues as of June 30, 2003. For more information, go to www.conocophillips.com. ConocoPhillips' quarterly conference call is scheduled for noon Central today. To listen to the conference call and to view related presentation materials, go to www.conocophillips.com and click on the "Second Quarter Earnings" link. For financial and operational tables, go to www.conocophillips.com/news/nr/earnings/highlights/2q03earnings.html. For detailed supplemental information, go to www.conocophillips.com/news/nr/earnings/detail/2q03summary.xls. CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This update contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. The forward-looking statements, such as "however we expect our off-balance-sheet debt and minority interest to concurrently decrease by a similar amount" and "we still plan to reduce our debt-to-capital ratio to 30 percent over the next several years" involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect ConocoPhillips' business are generally as set forth in ConocoPhillips' filings with the Securities and Exchange Commission (SEC). ConocoPhillips is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Cautionary Note to U.S. Investors -- The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Production is distinguished from oil and gas production because SEC regulations define Syncrude as mining-related and not part of conventional oil and natural gas reserves. We use certain terms in this release, such as "including Canadian Syncrude" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in the company's periodic filings with the SEC, available from the company at 600 North Dairy Ashford Road, Houston, Texas 77079. This information can also be obtained from the SEC by calling 1-800-SEC-0330. CONTACT: ConocoPhillips, Houston Kristi DesJarlais (media), 281-293-4595 or Clayton Reasor (investors), 212-207-1996 EX-99 4 a4444577ex992.txt EXHIBIT 99.2 FINANCIAL AND OPERATIONAL TABLES Exhibit 99.2 ConocoPhillips Houston, Texas 77079
FINANCIAL HIGHLIGHTS Millions of Dollars Three Months Ended Six Months Ended June 30 June 30 2003 2002** 2003 2002** Revenues Sales and other operating revenues* $25,347 10,414 52,289 18,845 Equity in earnings of affiliates 156 29 205 49 Other income 92 22 178 51 ---------- --------- --------- ----------- 25,595 10,465 52,672 18,945 ---------- --------- --------- ----------- Costs and expenses Purchased crude oil and products 16,377 7,154 34,063 12,793 Production and operating expenses 1,847 882 3,496 1,799 Selling, general and administrative expenses 675 207 1,184 471 Exploration expenses 142 67 258 230 Depreciation, depletion and amortization 847 395 1,696 791 Property impairments 146 8 174 18 Taxes other than income taxes* 3,624 977 7,046 1,891 Accretion on discounted contingent liabilities 35 6 68 11 Interest and debt expense 184 106 393 213 Foreign currency transaction gains (20) (6) (23) (5) Preferred dividend requirements of capital trusts and minority interests 13 12 27 25 ---------- --------- --------- ----------- 23,870 9,808 48,382 18,237 ---------- --------- --------- ----------- Income from continuing operations before income taxes and subsidiary equity transactions 1,725 657 4,290 708 Gain on subsidiary equity transactions 28 - 28 - ---------- --------- --------- ----------- Income from continuing operations before income 1,753 657 4,318 708 taxes Provision for income taxes 674 345 1,969 494 ---------- --------- --------- ----------- Income from continuing operations 1,079 312 2,349 214 Income from discontinued operations, net of income taxes 59 39 81 35 ---------- --------- --------- ----------- Income before cumulative effect of change in accounting principle 1,138 351 2,430 249 Cumulative effect of change in accounting principle - - 145 - ---------- --------- --------- ----------- Net income $1,138 351 2,575 249 ========== ========= ========= =========== Income per share of common stock Basic Continuing operations $1.59 0.81 3.46 0.56 Discontinued operations 0.08 0.10 0.12 0.09 Before cumulative effect of change in accounting principle 1.67 0.91 3.58 0.65 Cumulative effect of change in accounting principle - - 0.21 - Net income $1.67 0.91 3.79 0.65 Diluted Continuing operations $1.58 0.81 3.44 0.55 Discontinued operations 0.08 0.10 0.12 0.10 Before cumulative effect of change in accounting principle 1.66 0.91 3.56 0.65 Cumulative effect of change in accounting principle - - 0.21 - Net income $1.66 0.91 3.77 0.65 Average common shares outstanding (in thousands) Basic 680,028 383,913 679,784 383,130 Diluted 684,188 386,711 683,867 385,927 *Includes excise taxes on petroleum products sales: $3,387 819 6,535 1,583 **Restated for discontinued operations.
1-1 ConocoPhillips Houston, Texas 77079
SELECTED FINANCIAL DATA Millions of Dollars Three Months Ended Six Months Ended June 30 June 30 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE E&P United States $516 280 1,192 435 International 554 59 1,015 46 ---------- ----------- ---------- ----------- Total E&P 1,070 339 2,207 481 ---------- ----------- ---------- ----------- Midstream 25 12 56 24 ---------- ----------- ---------- ----------- R&M United States 227 73 484 (19) International 74 (5) 188 - ---------- ----------- ---------- ----------- Total R&M 301 68 672 (19) ---------- ----------- ---------- ----------- Chemicals 12 7 (11) (4) Emerging Businesses (23) (3) (57) (8) Corporate and other (306) (111) (518) (260) ---------- ----------- ---------- ----------- Consolidated $1,079 312 2,349 214 ========== =========== ========== =========== CUMULATIVE EFFECT OF ACCOUNTING CHANGE E&P United States $- - 161 - International - - (15) - ---------- ----------- ---------- ----------- Total E&P - - 146 - ---------- ----------- ---------- ----------- Midstream - - - - ---------- ----------- ---------- ----------- R&M United States - - (1) - International - - - - ---------- ----------- ---------- ----------- Total R&M - - (1) - ---------- ----------- ---------- ----------- Chemicals - - - - Emerging Businesses - - - Corporate and other - - - - ---------- ----------- ---------- ----------- Consolidated $- - 145 - ========== =========== ========== =========== INCOME FROM DISCONTINUED OPERATIONS Corporate and other 59 39 81 35 SUMMARY OF NET INCOME/(LOSS) E&P United States $516 280 1,353 435 International 554 59 1,000 46 ---------- ----------- ---------- ----------- Total E&P 1,070 339 2,353 481 ---------- ----------- ---------- ----------- Midstream 25 12 56 24 ---------- ----------- ---------- ----------- R&M United States 227 73 483 (19) International 74 (5) 188 - ---------- ----------- ---------- ----------- Total R&M 301 68 671 (19) ---------- ----------- ---------- ----------- Chemicals 12 7 (11) (4) Emerging Businesses (23) (3) (57) (8) Corporate and other (247) (72) (437) (225) ---------- ----------- ---------- ----------- Net income/(loss) $1,138 351 2,575 249 ========== =========== ========== =========== 1-2
ConocoPhillips Houston, Texas 77079
SELECTED FINANCIAL DATA Three Months Ended Six Months Ended June 30 June 30 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS Effective tax rate % 38.4 % 52.5 45.6 69.8 Millions of Dollars FOREIGN CURRENCY GAINS/(LOSSES) AFTER-TAX E&P $(24) (7) (14) (5) Midstream - - - - R&M 10 2 11 5 Chemicals - - - - Emerging Businesses 1 - - - Corporate and other 18 12 19 8 ---------- ----------- ---------- ----------- $5 7 16 8 ========== =========== ========== =========== CASH FLOWS FROM OPERATING ACTIVITIES Income from continuing operations $1,079 312 2,349 214 Depreciation, depletion and amortization 847 395 1,696 791 Property impairments 146 8 174 18 Dry hole costs and leasehold impairment 54 32 94 141 Accretion on discounted liabilities 35 6 68 11 Deferred taxes (1) 146 235 65 Other (149) (27) (82) 120 Working capital changes 91 (385) 803 (301) ---------- ----------- ---------- ----------- Net cash provided by continuing operations 2,102 487 5,337 1,059 Net cash provided by discontinued operations 158 43 102 50 ---------- ----------- ---------- ----------- Net cash provided by operating activities $2,260 530 5,439 1,109 ========== =========== ========== =========== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $381 257 707 526 Foreign 786 444 1,472 692 ---------- ----------- ---------- ----------- 1,167 701 2,179 1,218 Midstream 2 - 4 - R&M 257 130 460 234 Chemicals - 9 - 19 Emerging Businesses 98 - 164 - Corporate and other 50 34 76 48 ---------- ----------- ---------- ----------- $1,574 874 2,883 1,519 ========== =========== ========== =========== OTHER At June 30, 2003 At December 31, 2002 Total debt $17,569 19,766 Common stockholders' equity $32,032 29,517 1-3
ConocoPhillips Houston, Texas 77079
OPERATING HIGHLIGHTS BY SEGMENT Three Months Ended Six Months Ended June 30 June 30 2003 2002 2003 2002 Thousands of Barrels Daily E&P Crude oil produced United States Alaska 331 339 334 346 Lower 48 57 31 58 32 ---------- ----------- ----------- ---------- 388 370 392 378 Norway 214 119 220 118 United Kingdom 82 18 85 18 Canada 31 1 32 1 Nigeria 39 23 38 25 China 27 11 25 12 Indonesia 17 - 19 - Other 52 4 54 4 ---------- ----------- ----------- ---------- Total consolidated 850 546 865 556 Equity affiliates 117 4 86 5 ---------- ----------- ----------- ---------- Total Worldwide 967 550 951 561 ========== =========== =========== ========== Syncrude 19 - 18 - ========== =========== =========== ========== Natural gas liquids produced United States Alaska* 23 25 24 26 Lower 48 21 1 20 1 ---------- ----------- ----------- ---------- 44 26 44 27 Norway 7 4 8 5 Canada 11 - 11 - Other 5 4 4 3 ---------- ----------- ----------- ---------- Total Worldwide 67 34 67 35 ========== =========== =========== ========== *Includes reinjected volumes sold lease-to- lease. 14 14 14 15 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 162 160 175 164 Lower 48 1,311 689 1,324 711 ---------- ----------- ----------- ---------- 1,473 849 1,499 875 Norway 273 131 289 133 United Kingdom 952 189 977 181 Canada 424 22 430 21 Indonesia 246 - 235 - Other 117 95 115 107 ---------- ----------- ----------- ---------- Total consolidated 3,485 1,286 3,545 1,317 Equity affiliates 11 - 11 - ---------- ----------- ----------- ---------- Total Worldwide 3,496 1,286 3,556 1,317 ========== =========== =========== ========== *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 91 114 111 116 1-4
ConocoPhillips Houston, Texas 77079
OPERATING HIGHLIGHTS Three Months Ended Six Months Ended June 30 June 30 2003 2002 2003 2002 E&P (continued) Per Unit Average sales prices Crude oil (per barrel) United States Alaska $27.19 24.40 29.32 21.55 Lower 48 27.34 24.53 29.44 21.64 Total U.S. 27.21 24.41 29.34 21.55 International 25.62 24.58 28.30 22.74 Total consolidated 26.33 24.46 28.76 21.93 Equity affiliates 16.85 21.06 18.02 17.91 Total Worldwide 25.19 24.44 27.82 21.90 Natural gas-lease (per MCF) United States Alaska 1.88 1.80 1.92 1.94 Lower 48 4.72 2.56 5.10 2.26 Total U.S. 4.58 2.51 4.96 2.25 International 3.47 2.20 3.70 2.31 Total consolidated 3.92 2.40 4.21 2.27 Equity affiliates 4.89 - 4.85 - Total Worldwide 3.93 2.40 4.21 2.27 Midstream* Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 53 - 52 - International 35 - 41 - Equity affiliates United States* 110 119 112 118 International 11 - 11 - ---------- ----------- ---------- ----------- 209 119 216 118 ========== =========== ========== =========== *Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS) Per Barrel U.S. product prices Weighted average NGL** Consolidated $20.99 - 23.29 - DEFS 20.53 15.59 22.53 14.21 * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural-gas-liquids component and location mix.
1-5 ConocoPhillips Houston, Texas 77079
Three Months Ended Six Months Ended June 30 June 30 2003 2002 2003 2002 Thousands of Barrels Daily R&M United States Crude oil capacity 2,168 1,660 2,168 1,651 Crude oil runs 2,128 1,576 2,068 1,496 Refinery production 2,357 1,732 2,305 1,654 International* Crude oil capacity 442 72 442 72 Crude oil runs 376 67 386 66 Refinery production 407 63 421 63 U.S. Petroleum products outside sales Gasoline 1,381 1,159 1,356 1,122 Distillates 590 424 595 432 Aviation fuels 164 185 164 174 Other products 493 341 501 368 ---------- ----------- ---------- -------------------- 2,628 2,109 2,616 2,096 International 448 50 438 52 ---------- ----------- ---------- -------------------- 3,076 2,159 3,054 2,148 ========== =========== ========== ==================== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $1.02 0.87 1.06 0.77 Automotive gasoline-retail 1.34 1.00 1.35 0.91 Distillates-wholesale 0.85 0.69 0.95 0.64 * Includes ConocoPhillips' share of equity affiliates. ** Excludes excise taxes.
1-6 EX-99 5 a4444577ex993.txt EXHIBIT 99.3 SUPPLEMENTAL FINANCIAL INFORMATION Exhibit 99.3
SUMMARY OF NET INCOME (LOSS) BY SEGMENT Millions of Dollars ---------------------------------------------------------------- 2002 2003 --------------------------------- ------------------------------ 1st 2nd Qtr 3rd 4th Qtr YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr --------------------------------- ------------------------------ Income from Continuing Operations Before Accounting Change U.S. E&P 155 280 306 415 1,156 676 516 1,192 International E&P (13) 59 154 393 593 461 554 1,015 ----------------------------------------------------------- ------------------------------ Total E&P 142 339 460 808 1,749 1,137 1,070 2,207 ----------------------------------------------------------- ------------------------------ Midstream 12 12 11 20 55 31 25 56 ----------------------------------------------------------- ------------------------------ U.S. R&M (92) 73 44 113 138 257 227 484 International R&M 5 (5) 13 (8) 5 114 74 188 ----------------------------------------------------------- ------------------------------ Total R&M (87) 68 57 105 143 371 301 672 ----------------------------------------------------------- ------------------------------ Chemicals (11) 7 3 (13) (14) (23) 12 (11) Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (57) Corporate and Other (149) (111) (343) (322) (925) (212) (306) (518) ----------------------------------------------------------- ------------------------------ Consolidated (98) 312 (74) 558 698 1,270 1,079 2,349 =========================================================== ============================== Cumulative Effect of Accounting Change U.S. E&P - - - - - 161 - 161 International E&P - - - - - (15) - (15) ----------------------------------------------------------- ------------------------------ Total E&P - - - - - 146 - 146 ----------------------------------------------------------- ------------------------------ Midstream - - - - - - - - ----------------------------------------------------------- ------------------------------ U.S. R&M - - - - - (1) - (1) International R&M - - - - - - - - ----------------------------------------------------------- ------------------------------ Total R&M - - - - - (1) - (1) ----------------------------------------------------------- ------------------------------ Chemicals - - - - - - - - Emerging Businesses - - - - - - - - Corporate and Other - - - - - - - - ----------------------------------------------------------- ------------------------------ Consolidated - - - - - 145 - 145 =========================================================== ============================== Income (Loss) from Discontinued Operations Corporate and Other (4) 39 (42) (986) (993) 22 59 81 =========================================================== ============================== Net Income (Loss) U.S. E&P 155 280 306 415 1,156 837 516 1,353 International E&P (13) 59 154 393 593 446 554 1,000 ----------------------------------------------------------- ------------------------------ Total E&P 142 339 460 808 1,749 1,283 1,070 2,353 ----------------------------------------------------------- ------------------------------ Midstream 12 12 11 20 55 31 25 56 ----------------------------------------------------------- ------------------------------ U.S. R&M (92) 73 44 113 138 256 227 483 International R&M 5 (5) 13 (8) 5 114 74 188 ----------------------------------------------------------- ------------------------------ Total R&M (87) 68 57 105 143 370 301 671 ----------------------------------------------------------- ------------------------------ Chemicals (11) 7 3 (13) (14) (23) 12 (11) Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (57) Corporate and Other (153) (72) (385)(1,308)(1,918) (190) (247) (437) ----------------------------------------------------------- ------------------------------ Consolidated (102) 351 (116) (428) (295) 1,437 1,138 2,575 =========================================================== ============================== Page 1 of 13
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Millions of Dollars ------------------------------------------------------------------ 2002 2003 -------------------------------- --------------------------------- 1st 2nd Qtr 3rd 4th YTD 1st Qtr 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- --------------------------------- Income from Continuing Operations Before Income Taxes U.S. E&P 223 419 450 536 1,628 1,048 799 1,847 International E&P 167 260 555 949 1,931 1,280 960 2,240 ---------------------------------------------------------- --------------------------------- Total E&P 390 679 1,005 1,485 3,559 2,328 1,759 4,087 ---------------------------------------------------------- --------------------------------- Midstream 20 20 23 35 98 51 42 93 ---------------------------------------------------------- --------------------------------- U.S. R&M (140) 118 75 175 228 411 361 772 International R&M 5 (5) 19 (25) (6) 150 94 244 ---------------------------------------------------------- --------------------------------- Total R&M (135) 113 94 150 222 561 455 1,016 ---------------------------------------------------------- --------------------------------- Chemicals (18) 3 (1) (16) (32) (44) 15 (29) Emerging Businesses (8) (5) (274) (62) (349) (51) (34) (85) Corporate and Other (198) (153) (535) (471)(1,357) (280) (484) (764) ---------------------------------------------------------- --------------------------------- Consolidated 51 657 312 1,121 2,141 2,565 1,753 4,318 ========================================================== ================================= Income from Continuing Operations Effective Tax Rates U.S. E&P 30.5% 33.2% 32.0% 22.6% 29.0% 35.5% 35.4% 35.5% International E&P 107.8% 77.3% 72.3% 58.6% 69.3% 64.0% 42.3% 54.7% ---------------------------------------------------------- --------------------------------- Total E&P 63.6% 50.1% 54.2% 45.6% 50.9% 51.2% 39.2% 46.0% ---------------------------------------------------------- --------------------------------- Midstream 40.0% 40.0% 52.2% 42.9% 43.9% 39.2% 40.5% 39.8% ---------------------------------------------------------- --------------------------------- U.S. R&M 34.3% 38.1% 41.3% 35.4% 39.5% 37.5% 37.1% 37.3% International R&M 0.0% 0.0% 31.6% 68.0% 183.3% 24.0% 21.3% 23.0% ---------------------------------------------------------- --------------------------------- Total R&M 35.6% 39.8% 39.4% 30.0% 35.6% 33.9% 33.8% 33.9% ---------------------------------------------------------- --------------------------------- Chemicals 38.9%-133.3%400.0% 18.8% 56.3% 47.7% 20.0% 62.1% Emerging Businesses 37.5% 40.0% 4.4% 35.5% 11.2% 33.3% 32.4% 32.9% Corporate and Other 24.7% 27.5% 35.9% 31.6% 31.8% 24.3% 36.8% 32.2% ---------------------------------------------------------- --------------------------------- Consolidated 292.2% 52.5%123.7% 50.2% 67.4% 50.5% 38.4% 45.6% ========================================================== ================================= Page 2 of 13
CERTAIN ITEMS AFFECTING NET INCOME (AFTER-TAX) Millions of Dollars ------------------------------------------------------------------- 2002 2003 --------------------------------- --------------------------------- 1st 2nd 3rd 4th Qtr YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr --------------------------------- --------------------------------- U.S. E&P Asset sales - - (5) - (5) 2 17 19 Property impairments - (3) (5) - (8) - (14) (14) Dry hole charges (9) (2) (1) (38) (50) (10) (1) (11) - ----------------------------------------------------------- --------------------------------- Total (9) (5) (11) (38) (63) (8) 2 (6) - ----------------------------------------------------------- --------------------------------- International E&P Asset sales - - - 17 17 (1) (3) (4) Property impairments (7) (2) - (14) (23) (12) (32) (44) Foreign currency transaction gains (losses) 2 (7) (6) (23) (34) 10 (24) (14) Dry hole charges (2) (7) (1) (48) (58) (5) (6) (11) - ----------------------------------------------------------- --------------------------------- Total (7) (16) (7) (68) (98) (8) (65) (73) - ----------------------------------------------------------- --------------------------------- Total E&P (16) (21) (18) (106) (161) (16) (63) (79) - ----------------------------------------------------------- --------------------------------- Midstream Asset sales - - - - - - - - Property impairments - - - - - - - - - ----------------------------------------------------------- --------------------------------- Total - - - - - - - - - ----------------------------------------------------------- --------------------------------- U.S. R&M Asset sales - - - - - - 1 1 Impairments and lease loss accruals - - - (88) (88) (25) (25) (50) Maintenance turnaround expense (46) (19) (29) (16) (110) (39) (23) (62) - ----------------------------------------------------------- --------------------------------- Total (46) (19) (29) (104) (198) (64) (47) (111) - ----------------------------------------------------------- --------------------------------- International R&M Asset sales - - - - - - - - Maintenance turnaround expense - - - (1) (1) (1) (3) (4) Foreign currency transaction gains (losses) 3 2 3 1 9 1 10 11 Property impairments - - - - - - - - - ----------------------------------------------------------- --------------------------------- Total 3 2 3 - 8 - 7 7 - ----------------------------------------------------------- --------------------------------- Total R&M (43) (17) (26) (104) (190) (64) (40) (104) - ----------------------------------------------------------- --------------------------------- Chemicals - - - - - - - - - ----------------------------------------------------------- --------------------------------- Total - - - - - - - - - ----------------------------------------------------------- --------------------------------- Emerging Businesses Asset sales - - - - - - - - Foreign currency transaction gains (losses) - - - - - (1) 1 - - ----------------------------------------------------------- --------------------------------- Total - - - - - (1) 1 - - ----------------------------------------------------------- --------------------------------- Corporate and Other Discontinued operations Impairments and lease loss accruals - - (69)(1,008) (1,077) (25) (24) (49) Other results (4) 39 27 22 84 47 83 130 Asset sales - - - - - - - - Foreign currency transaction gains (losses) (4) 12 5 8 21 1 18 19 Merger-related expenses (2) (1) (221) (83) (307) (27) (115) (142) Premium on early debt retirement - (15) - (1) (16) (10) (9) (19) - ----------------------------------------------------------- --------------------------------- Total (10) 35 (258)(1,062) (1,295) (14) (47) (61) - ----------------------------------------------------------- --------------------------------- The above financial information represents certain items of a recurring nature that are included in the reporting segments' net income. These items often result in variability in the company's revenues or expenses. Non-recurring items that may affect comparability between periods, such as the company's write-off of in-process research and development costs of $246 million in the third quarter of 2002, are not included above. Page 3 of 13
CASH FLOW INFORMATION Millions of Dollars ------------------------------------------------------------------- 2002 2003 ---------------------------------- -------------------------------- 1st 2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd 4th YTD Qtr Qtr Qtr ---------------------------------- -------------------------------- DD&A (including property impairments) included in net cash provided by operating activities 406 402 557 1,035 2,400 877 993 1,870 ============================================================ ================================ Net Cash Provided by Operating Activities 579 530 1,878 1,982 4,969 3,179 2,260 5,439 - ------------------------------------------------------------ -------------------------------- Cash Flows from Investing Activities Capital expenditures and investments: E&P (517) (701) (715)(1,343)(3,276) (1,012)(1,167) (2,179) Midstream - - (2) (3) (5) (2) (2) (4) R&M (104) (130) (191) (415) (840) (203) (257) (460) Chemicals (10) (9) (10) (31) (60) - - - Emerging Businesses - - (35) (87) (122) (66) (98) (164) Corporate and Other (14) (34) (7) (30) (85) (26) (50) (76) - ------------------------------------------------------------ -------------------------------- Total capital expend. & investments (645) (874) (960)(1,909)(4,388) (1,309)(1,574) (2,883) Acquisitions, net of cash acquired - - 1,242 (62) 1,180 - - - Proceeds from asset dispositions 45 36 19 715 815 121 373 494 Long-term advances to affiliates and other investments (12) 14 (83) (11) (92) (28) (8) (36) Discontinued operations (12) (12) (23) (52) (99) (17) (1) (18) - ------------------------------------------------------------ -------------------------------- Net Cash Used for Investing Activities (624) (836) 195 (1,319)(2,584) (1,233)(1,210) (2,443) - ------------------------------------------------------------ -------------------------------- Cash Flows from Financing Activities Net issuance (repayment) of debt 204 725 (1,432) (587)(1,090) (1,556) (626) (2,182) Redemption of preferred stock - (300) - - (300) - - - Dividends (138) (137) (138) (271) (684) (271) (272) (543) Other 7 (7) (131) (15) (146) (3) 36 33 - ------------------------------------------------------------ -------------------------------- Net Cash Provided by (Used for) Financing Activities 73 281 (1,701) (873)(2,220) (1,830) (862) (2,692) - ------------------------------------------------------------ -------------------------------- Net Change in Cash and Cash Equivalents 28 (25) 372 (210) 165 116 188 304 Cash and cash equivalents at beginning of period 142 170 145 517 142 307 423 307 - ------------------------------------------------------------ -------------------------------- Cash and Cash Equivalents at End of Period 170 145 517 307 307 423 611 611 ============================================================ ================================ Page 4 of 13
TOTAL E&P 2002 2003 -------------------------------- ------------------------------ 1st 2nd Qtr 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- ------------------------------ E&P Net Income ($ Millions) 142 339 460 808 1,749 1,283 1,070 2,353 ========================================================== ============================== Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 833 798 1,046 1,623 1,077 1,622 1,636 1,629 ---------------------------------------------------------- ------------------------------ Crude Oil and Condensate (MB/D) Consolidated 566 546 620 854 647 880 850 865 Equity affiliates 5 4 44 87 35 55 117 86 ---------------------------------------------------------- ------------------------------ Total 571 550 664 941 682 935 967 951 ========================================================== ============================== Sales of crude oil produced (MB/D) 566 557 664 918 677 911 996 954 ---------------------------------------------------------- ------------------------------ Natural Gas Liquids (MB/D) 37 34 43 70 46 67 67 67 ----------------------------------------------------------------------------------------- Natural Gas (MMCF/D) Consolidated 1,349 1,286 1,982 3,529 2,043 3,605 3,485 3,545 Equity affiliates - - 4 13 4 12 11 11 ---------------------------------------------------------- ------------------------------ Total 1,349 1,286 1,986 3,542 2,047 3,617 3,496 3,556 ========================================================== ============================== Canadian Syncrude (MB/D) - - 8 22 8 17 19 18 ---------------------------------------------------------- ------------------------------ Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 21.56 26.27 28.31 28.20 26.09 34.06 29.02 31.54 Brent dated 21.14 25.04 26.94 26.78 24.98 31.51 26.03 28.77 Natural Gas--Henry Hub 1st of month ($/mcf) 2.34 3.38 3.16 3.97 3.21 6.58 5.40 5.99 ---------------------------------------------------------- ------------------------------ Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 19.41 24.46 26.38 26.12 24.38 31.27 26.33 28.76 Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 18.02 Total 19.37 24.44 25.97 25.31 24.07 30.73 25.19 27.82 ---------------------------------------------------------- ------------------------------ Natural Gas Liquids ($/bbl) 16.00 20.36 19.42 19.32 18.93 24.73 19.17 21.86 ---------------------------------------------------------- ------------------------------ Natural Gas ($/mcf) Consolidated 2.15 2.40 2.49 3.27 2.77 4.49 3.92 4.21 Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.85 Total 2.15 2.40 2.49 3.27 2.77 4.49 3.93 4.21 ---------------------------------------------------------- ------------------------------ Exploration Charges ($ Millions) Dry Holes 16 17 4 124 161 20 30 50 Lease Impairments 93 16 15 22 146 20 24 44 ---------------------------------------------------------- ------------------------------ Total Non-Cash Charges 109 33 19 146 307 40 54 94 Other (G&G and Lease Rentals) 54 34 66 131 285 76 88 164 ---------------------------------------------------------- ------------------------------ Total Exploration Charges 163 67 85 277 592 116 142 258 ========================================================== ============================== Depreciation, Depletion & Amortization Producing operations ($ millions) 274 278 398 666 1,616 641 628 1,269 ---------------------------------------------------------- ------------------------------ Page 5 of 13
U.S. E&P 2002 2003 -------------------------------- ------------------------------ 1st 2nd Qtr 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- ------------------------------ U.S. E&P Net Income ($ Millions) 155 280 306 415 1,156 837 516 1,353 ========================================================== ============================== Alaska ($ Millions) 123 223 246 278 870 525 301 826 - ---------------------------------------------------------- ------------------------------ Lower 48 ($ Millions) 32 57 60 137 286 312 215 527 - ---------------------------------------------------------- ------------------------------ Production Total U.S. (MBOE/D) 564 538 562 684 587 696 678 686 - ---------------------------------------------------------- ------------------------------ Crude Oil and Condensate (MB/D) Alaska 353 339 310 323 331 337 331 334 Lower 48 33 31 38 58 40 60 57 58 - ---------------------------------------------------------- ------------------------------ Total 386 370 348 381 371 397 388 392 ========================================================== ============================== Sales of crude oil produced (MB/D) 383 374 360 370 372 391 389 390 - ---------------------------------------------------------- ------------------------------ Natural Gas Liquids (MB/D)* Alaska 27 25 21 24 24 25 23 24 Lower 48 1 1 9 21 8 19 21 20 - ---------------------------------------------------------- ------------------------------ Total 28 26 30 45 32 44 44 44 ========================================================== ============================== *Includes reinjection volumes sold lease-to- lease: 15 14 13 15 14 15 14 14 - ---------------------------------------------------------- ------------------------------ Natural Gas (MMCF/D) Alaska 168 160 183 186 175 189 162 175 Lower 48 734 689 922 1,362 928 1,338 1,311 1,324 - ---------------------------------------------------------- ------------------------------ Total 902 849 1,105 1,548 1,103 1,527 1,473 1,499 ========================================================== ============================== Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 13.58 18.96 20.42 21.10 18.42 25.95 21.70 23.81 - ---------------------------------------------------------- ------------------------------ West Coast 18.72 24.40 25.83 26.43 23.75 31.47 27.19 29.32 - ---------------------------------------------------------- ------------------------------ Lower 48 18.86 24.53 26.87 26.00 24.48 31.48 27.34 29.44 - ---------------------------------------------------------- ------------------------------ Total U.S. 18.73 24.41 25.94 26.36 23.83 31.47 27.21 29.34 - ---------------------------------------------------------- ------------------------------ . . Natural Gas Liquids ($/bbl) Alaska 18.67 24.40 25.68 26.48 23.48 31.32 27.24 29.32 - ---------------------------------------------------------- ------------------------------ Lower 48 12.75 16.74 14.62 16.17 15.66 21.91 15.89 18.68 - ---------------------------------------------------------- ------------------------------ Total U.S. 18.13 23.61 20.17 19.27 20.00 25.13 19.33 22.11 - ---------------------------------------------------------- ------------------------------ Natural Gas ($/mcf) Alaska 2.13 1.80 1.58 1.95 1.85 1.97 1.88 1.92 - ---------------------------------------------------------- ------------------------------ Lower 48 1.99 2.56 2.65 3.43 2.79 5.47 4.72 5.10 - ---------------------------------------------------------- ------------------------------ Total U.S. 1.99 2.51 2.60 3.38 2.75 5.34 4.58 4.96 - ---------------------------------------------------------- ------------------------------ Kenai, Alaska LNG Sales Volume (MMCF/D) 117 114 128 128 122 130 91 111 - ---------------------------------------------------------- ------------------------------ Sales price per MCF 4.00 3.74 4.21 4.30 4.07 4.38 4.56 4.45 - ---------------------------------------------------------- ------------------------------ U.S. Exploration Charges ($ Millions) Dry Holes 14 3 1 61 79 16 3 19 Lease Impairments 13 12 10 14 49 13 12 25 - ---------------------------------------------------------- ------------------------------ Total Non-Cash Charges 27 15 11 75 128 29 15 44 Other (G&G and Lease Rentals) 17 10 20 39 86 28 22 50 - ---------------------------------------------------------- ------------------------------ Total U.S. Exploration Charges 44 25 31 114 214 57 37 94 ========================================================== ============================== Alaska Only 27 12 11 45 95 25 10 35 - ---------------------------------------------------------- ------------------------------ Depreciation, Depletion & Amortization Producing operations ($ millions) Alaska 156 157 136 140 589 110 122 232 Lower 48 54 48 93 149 344 148 148 296 - ---------------------------------------------------------- ------------------------------ Total U.S. 210 205 229 289 933 258 270 528 ========================================================== ============================== Page 6 of 13
INTERNATIONAL E&P 2002 2003 -------------------------------- ------------------------------ 1st 2nd Qtr 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- ------------------------------ International E&P Net Income (Loss) ($ Millions) (13) 59 154 393 593 446 554 1,000 ========================================================== ============================== Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 269 261 484 939 490 926 958 943 - ---------------------------------------------------------- ------------------------------ Crude Oil and Condensate (MB/D) Consolidated Norway 118 119 156 233 157 226 214 220 United Kingdom 17 18 35 86 39 87 82 85 Canada 1 1 14 37 13 33 31 32 Nigeria 27 23 29 38 29 38 39 38 China 13 11 12 11 12 23 27 25 Indonesia - - 6 13 5 21 17 19 Other 4 4 20 55 21 55 52 54 Equity affiliates 5 4 44 87 35 55 117 86 - ---------------------------------------------------------- ------------------------------ Total 185 180 316 560 311 538 579 559 ========================================================== ============================== Sales of crude oil produced (MB/D) 183 183 304 548 306 520 607 564 - ---------------------------------------------------------- ------------------------------ Natural Gas Liquids (MB/D) Norway 5 4 6 7 6 8 7 8 Canada - - 3 14 4 11 11 11 Other 4 4 4 4 4 4 5 4 - ---------------------------------------------------------- ------------------------------ Total 9 8 13 25 14 23 23 23 ========================================================== ============================== Natural Gas (MMCF/D) Consolidated Norway 135 131 183 232 171 305 273 289 United Kingdom 173 189 349 975 424 1,002 952 977 Canada 19 22 172 442 165 436 424 430 Indonesia - - 68 220 72 224 246 235 Other 120 95 105 112 108 111 117 115 Equity affiliates - - 4 13 4 12 11 11 - ---------------------------------------------------------- ------------------------------ Total 447 437 881 1,994 944 2,090 2,023 2,057 ========================================================== ============================== Canadian Syncrude (MB/D) - - 8 22 8 17 19 18 - ---------------------------------------------------------- ------------------------------ Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated Norway 21.04 24.49 27.19 26.35 25.21 32.72 26.28 29.39 United Kingdom 21.21 24.14 26.88 25.98 25.33 30.11 24.34 27.25 Canada 20.03 24.85 27.20 21.26 22.87 28.40 23.61 26.07 Nigeria 21.14 24.95 27.51 26.97 25.37 31.94 26.35 28.87 China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 27.57 Indonesia - - 24.89 30.59 28.10 29.35 24.54 27.20 Other 15.00 25.18 25.75 25.18 24.94 29.10 25.38 27.25 Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 18.02 Total 20.71 24.51 26.01 24.60 24.36 30.17 23.90 26.77 - ---------------------------------------------------------- ------------------------------ Natural Gas Liquids ($/bbl) Norway 12.88 15.48 15.64 20.69 16.51 21.85 18.13 19.90 Canada - - 29.12 18.42 20.39 26.11 20.78 23.49 Other 12.58 13.29 13.74 20.51 15.29 23.40 16.73 19.88 Total 12.76 14.58 18.42 19.39 17.47 24.22 18.96 21.54 - ---------------------------------------------------------- ------------------------------ Natural Gas ($/mcf) Consolidated Norway 3.22 3.02 3.16 3.33 3.20 3.66 3.86 3.75 United Kingdom 3.18 2.55 2.22 3.20 2.92 3.55 3.17 3.36 Canada 2.23 2.21 2.32 3.37 3.03 5.42 4.34 4.89 Indonesia - - 4.18 4.11 4.12 4.66 4.16 4.40 Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.48 Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.85 Total 2.41 2.20 2.37 3.20 2.79 3.92 3.48 3.70 - ---------------------------------------------------------- ------------------------------ International Exploration Charges ($ Millions) Dry Holes 2 14 3 63 82 4 27 31 Lease Impairments 80 4 5 8 97 7 12 19 - ---------------------------------------------------------- ------------------------------ Total Non-Cash Charges 82 18 8 71 179 11 39 50 Other (G&G and Lease Rentals) 37 24 46 92 199 48 66 114 - ---------------------------------------------------------- ------------------------------ Total International Exploration Charges 119 42 54 163 378 59 105 164 ========================================================== ============================== Depreciation, Depletion & Amortization Producing operations ($ millions) 64 73 169 377 683 383 358 741 - ---------------------------------------------------------- ------------------------------ Page 7 of 13
R&M 2002 2003 ------------------------------- ------------------------------ 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------------- ------------------------------ R&M Net Income (Loss) ($ Millions) (87) 68 57 105 143 370 301 671 ======================================================================================== United States ($ Millions) (92) 73 44 113 138 256 227 483 - --------------------------------------------------------- ------------------------------ International ($ Millions) 5 (5) 13 (8) 5 114 74 188 - --------------------------------------------------------- ------------------------------ Market Indicators U.S. East Coast Crack Spread ($/bbl) 2.90 2.86 3.06 4.58 3.35 6.16 3.46 4.81 U.S. Gulf Coast Crack Spread ($/bbl) 2.78 3.70 2.79 3.74 3.25 5.64 3.65 4.64 U.S. Group Central Spread ($/bbl) 3.88 5.07 5.16 5.69 4.95 6.12 6.96 6.54 U.S. West Coast Crack Spread ($/bbl) 9.67 9.53 8.58 8.40 9.04 12.79 11.39 12.09 NW Europe Crack Spread ($/bbl) 0.74 1.38 1.70 2.72 1.64 5.68 3.17 4.42 - --------------------------------------------------------- ------------------------------ Realized Margins Refining Margin ($/bbl) U.S. n/a n/a n/a 5.07 n/a 6.50 5.34 5.90 International n/a n/a n/a 2.98 n/a 5.63 3.98 4.82 - --------------------------------------------------------- ------------------------------ Marketing Margin ($/gal) U.S. n/a n/a n/a 0.04 n/a 0.04 0.06 0.05 International n/a n/a n/a 0.16 n/a 0.17 0.22 0.19 - --------------------------------------------------------- ------------------------------ Depreciation, Depletion & Amortization ($ Millions) 102 98 119 167 486 162 171 333 - --------------------------------------------------------- ------------------------------ Consolidated EASTERN U.S. Charge Barrels Input (MB/D) Crude Oil 348 404 338 399 372 415 435 425 Other Feed and Blending Stocks 53 47 16 61 44 51 53 52 - --------------------------------------------------------- ------------------------------ Total 401 451 354 460 416 466 488 477 ========================================================= ============================== Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 99% - --------------------------------------------------------- ------------------------------ Refined Products Production (MB/D) Gasoline 214 247 187 260 227 244 249 246 Distillates 111 114 88 116 107 138 131 135 Aviation Fuel 35 37 37 37 36 32 29 30 Other 46 52 36 51 47 55 85 71 - --------------------------------------------------------- ------------------------------ Total 406 450 348 464 417 469 494 482 ========================================================= ============================== U.S. GULF COAST Charge Barrels Input (MB/D) Crude Oil 414 428 509 652 501 668 702 685 Other Feed and Blending Stocks 80 67 87 101 85 103 95 99 - --------------------------------------------------------- ------------------------------ Total 494 495 596 753 586 771 797 784 ========================================================= ============================== Percentage Utilization 90% 92% 93% 91% 92% 93% 98% 96% - --------------------------------------------------------- ------------------------------ Refined Products Production (MB/D) Gasoline 213 211 236 300 240 289 277 283 Distillates 146 144 172 247 177 242 249 245 Aviation Fuel 37 39 52 62 48 70 63 67 Other 102 116 148 181 137 221 242 231 - --------------------------------------------------------- ------------------------------ Total 498 510 608 790 602 822 831 826 ========================================================= ============================== CENTRAL U.S. Charge Barrels Input (MB/D) Crude Oil 348 424 466 633 469 631 663 647 Other Feed and Blending Stocks 34 32 39 46 37 32 24 28 - --------------------------------------------------------- ------------------------------ Total 382 456 505 679 506 663 687 675 ========================================================= ============================== Percentage Utilization 84% 98% 90% 92% 91% 92% 96% 94% - --------------------------------------------------------- ------------------------------ Refined Products Production (MB/D) Gasoline 200 235 269 389 274 367 375 371 Distillates 64 74 76 148 91 144 152 148 Aviation Fuel 50 49 58 64 55 59 57 58 Other 61 98 99 91 87 96 110 103 - --------------------------------------------------------- ------------------------------ Total 375 456 502 692 507 666 694 680 ========================================================= ============================== n/a = not available. Page 8 of 13
R&M (continued) 2002 2003 --------------------------------- --------------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr --------------------------------- --------------------------------- WESTERN U.S. Charge Barrels Input (MB/D) Crude Oil 306 320 330 320 319 294 328 311 Other Feed and Blending Stocks (3) 16 13 16 11 9 13 11 - ----------------------------------------------------------- --------------------------------- Total 303 336 343 336 330 303 341 322 =========================================================== ================================= Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 93% - ----------------------------------------------------------- --------------------------------- Refined Products Production (MB/D) Gasoline 137 148 175 174 159 160 176 168 Distillates 71 77 78 81 77 66 83 75 Aviation Fuel 27 31 33 30 30 29 24 26 Other 61 60 51 48 55 42 55 48 - ----------------------------------------------------------- --------------------------------- Total 296 316 337 333 321 297 338 317 =========================================================== ================================= TOTAL UNITED STATES Charge Barrels Input (MB/D) Crude Oil 1,416 1,576 1,643 2,004 1,661 2,008 2,128 2,068 Other Feed and Blending Stocks 164 162 155 224 177 195 185 190 - ----------------------------------------------------------- --------------------------------- Total 1,580 1,738 1,798 2,228 1,838 2,203 2,313 2,258 =========================================================== ================================= Percentage Utilization 86% 95% 90% 93% 91% 93% 98% 95% - ----------------------------------------------------------- --------------------------------- Refined Products Production (MB/D) Gasoline 764 841 867 1,123 900 1,060 1,077 1,068 Distillates 392 409 414 592 452 590 615 603 Aviation Fuel 149 156 180 193 169 190 173 181 Other 270 326 334 371 326 414 492 453 - ----------------------------------------------------------- --------------------------------- Total 1,575 1,732 1,795 2,279 1,847 2,254 2,357 2,305 =========================================================== ================================= UNITED KINGDOM and IRELAND Charge Barrels Input (MB/D) Crude Oil 65 67 126 177 109 262 244 253 Other Feed and Blending Stocks - - 15 30 11 39 42 41 - ----------------------------------------------------------- --------------------------------- Total 65 67 141 207 120 301 286 294 =========================================================== ================================= Percentage Utilization 90% 92% 85% 58% 73% 86% 80% 83% - ----------------------------------------------------------- --------------------------------- Refined Products Production (MB/D) Gasoline 15 16 42 64 34 99 91 95 Distillates 26 26 56 76 46 125 118 122 Aviation Fuel - - 4 6 3 14 7 10 Other 21 21 32 77 38 54 59 56 - ----------------------------------------------------------- --------------------------------- Total 62 63 134 223 121 292 275 283 =========================================================== ================================= Equity Affiliates - Net Share International* Charge Barrels Input (MB/D) Crude Oil - - 42 130 43 134 132 133 Other Feed and Blending Stocks - - 1 3 1 2 3 2 - ----------------------------------------------------------- --------------------------------- Total - - 43 133 44 136 135 135 =========================================================== ================================= Percentage Utilization - - 95% 95% 95% 98% 97% 98% - ----------------------------------------------------------- --------------------------------- Refined Products Production (MB/D) Gasoline - - 13 41 14 43 41 42 Distillates - - 18 58 19 58 59 58 Aviation Fuel - - 4 7 3 10 8 9 Other - - 9 19 7 33 24 29 - ----------------------------------------------------------- --------------------------------- Total - - 44 125 43 144 132 138 =========================================================== ================================= * Represents 18.75 percent interest in a refinery complex at Karlsruhe, Germany; 16.33 percent interest in two refineries in Kralupy and Litvinov, Czech Republic; and 47 percent interest in a refinery at Melaka, Malaysia. Page 9 of 13
R&M (continued) 2002 2003 --------------------------------- -------------------------------- 1st 2nd 3rd Qtr 4th YTD 1st Qtr 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr --------------------------------- -------------------------------- Worldwide - Including Share of Equity Affiliates Charge Barrels Input (MB/D) Crude Oil 1,481 1,643 1,811 2,311 1,813 2,404 2,504 2,454 Other Feed and Blending Stocks 164 162 171 257 189 236 230 233 - ----------------------------------------------------------- -------------------------------- Total 1,645 1,805 1,982 2,568 2,002 2,640 2,734 2,687 =========================================================== ================================ Percentage Utilization 86% 95% 90% 89% 90% 92% 96% 94% - ----------------------------------------------------------- -------------------------------- Refined Products Production (MB/D) Gasoline 779 857 922 1,228 948 1,202 1,209 1,205 Distillates 418 435 488 726 517 773 792 783 Aviation Fuel 149 156 188 206 175 214 188 200 Other 291 347 375 467 371 501 575 538 - ----------------------------------------------------------- -------------------------------- Total 1,637 1,795 1,973 2,627 2,011 2,690 2,764 2,726 =========================================================== ================================ U.S. PETROLEUM PRODUCTS SALES (MB/D)* Gasoline 1,084 1,159 1,195 1,478 1,230 1,331 1,381 1,356 Distillates 439 424 449 692 502 600 590 595 Aviation Fuel 162 185 219 172 185 164 164 164 Other 398 341 350 403 372 509 493 501 - ----------------------------------------------------------- -------------------------------- Total 2,083 2,109 2,213 2,745 2,289 2,604 2,628 2,616 =========================================================== ================================ *2002 amounts restated. INTERNATIONAL PETROLEUM PRODUCTS SALES (MB/D) Gasoline 12 12 78 163 67 202 190 196 Distillates 20 21 84 147 69 181 199 190 Aviation Fuel - - 2 6 2 5 7 6 Other 22 17 37 24 24 40 52 46 - ----------------------------------------------------------- -------------------------------- Total 54 50 201 340 162 428 448 438 =========================================================== ================================ SPECIALTIES Base Oil Production(MB/D) United States - Equity Affiliate - - 3 10 3 10 7 8 - ----------------------------------------------------------- -------------------------------- Petroleum Coke Sales (MMT)* United States Fuel coke 297 311 500 565 1,673 683 653 1,336 Specialty coke 56 57 196 292 601 276 282 558 - ----------------------------------------------------------- -------------------------------- International Fuel coke - - 12 54 66 57 50 107 Specialty coke - - 68 180 248 176 180 356 - ----------------------------------------------------------- -------------------------------- Finished Lubes Sales (MB/D)* United States 8 9 9 10 9 10 10 10 - ----------------------------------------------------------- -------------------------------- International - - - 1 - 1 - 1 - ----------------------------------------------------------- -------------------------------- *Included in "Other" in the petroleum products sales statistics above. Page 10 of 13
MIDSTREAM 2002 2003 ---------------------------------- -------------------------------- 1st 2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd 4th YTD Qtr Qtr Qtr ---------------------------------- -------------------------------- Midstream Net Income ($ Millions) 12 12 11 20 55 31 25 56 ============================================================================================= U.S. Equity Affiliate ($ Millions)* 5 7 6 5 23 13 23 36 - ------------------------------------------------------------ -------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States - - 19 56 19 51 53 52 International - - 15 45 15 47 35 41 Equity Affiliates United States* 118 119 120 119 119 114 110 112 International - - 3 10 3 10 11 11 - ------------------------------------------------------------ -------------------------------- Total 118 119 157 230 156 222 209 216 ============================================================ ================================ * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Natural Gas Liquids Fractionated (MB/D) United States 107 104 139 179 133 168 158 163 - ------------------------------------------------------------ -------------------------------- Product Prices Weighted Average NGL ($/bbl)* Consolidated - - 18.57 19.24 19.07 25.59 20.99 23.29 DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 22.53 - ------------------------------------------------------------ -------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. Depreciation, Depletion & Amortization ($ Millions) 1 - 5 13 19 14 14 28 - ------------------------------------------------------------ -------------------------------- EMERGING BUSINESSES 2002 2003 ---------------------------------- -------------------------------- 1st 2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd 4th YTD Qtr Qtr Qtr ---------------------------------- -------------------------------- Emerging Businesses Net Income (Loss) ($ Millions)* (5) (3) (262) (40) (310) (34) (23) (57) ============================================================================================= Detail of Net Income (Loss) ($ Millions) Carbon Fibers - - (4) (11) (15) (6) - (6) Fuels Technology (5) (3) (4) (4) (16) (5) (6) (11) Gas-to-Liquids* - - (253) (20) (273) (20) (13) (33) Power - - (1) (2) (3) 1 (1) - Other - - - (3) (3) (4) (3) (7) - ------------------------------------------------------------ -------------------------------- Total (5) (3) (262) (40) (310) (34) (23) (57) ============================================================ ================================ * Third quarter 2002 results include a $246 million write down of acquired in- process R&D. CORPORATE AND OTHER 2002 2003 ---------------------------------- -------------------------------- 1st 2nd Qtr3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd 4th YTD Qtr Qtr Qtr ---------------------------------- -------------------------------- Corporate and Other Net Income (Loss) ($ Millions) (153) (72) (385)(1,308)(1,918) (190) (247) (437) ============================================================================================= Detail of Net Income (Loss) ($ Millions) Net Interest Expense (78) (91) (83) (160) (412) (167) (137) (304) Corporate Overhead (47) (27) (32) (67) (173) (35) (38) (73) Discontinued operations Impairments and loss accruals - - (69)(1,008)(1,077) (25) (24) (49) Operating results (4) 39 27 22 84 47 83 130 Merger-related costs (2) (1) (221) (83) (307) (27) (115) (142) Other (22) 8 (7) (12) (33) 17 (16) 1 - ------------------------------------------------------------ -------------------------------- Total (153) (72) (385)(1,308)(1,918) (190) (247) (437) ============================================================ ================================ Before-Tax Net Interest Expense ($ Millions) Interest Expense (158) (157) (193) (291) (799) (283) (268) (551) Capitalized Interest 51 51 59 72 233 74 83 157 Interest Revenue 4 2 13 21 40 3 1 4 Premium on early debt retirement - (21) - (3) (24) (12) (11) (23) - ------------------------------------------------------------ -------------------------------- (103) (125) (121) (201) (550) (218) (195) (413) ============================================================ ================================ Debt Total Debt ($ Millions) 8,902 9,635 20,453 19,766 19,766 18,240 17,569 17,569 Debt-to-Capital Ratio 37.6% 39.4% 39.8% 39.3% 39.3% 36.4% 34.7% 34.7% - ------------------------------------------------------------ -------------------------------- Page 11 of 13
SELECTED PRO FORMA STATISTICS (E&P) 2002 2003 -------------------------------- ---------------------------------- 1st 2nd 3rd Qtr 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- ---------------------------------- E&P E&P Production Total Including Equity Affiliates and Canadian Syncrude (MBOE/D) 1,676 1,619 1,546 1,623 1,616 1,622 1,636 1,629 - ---------------------------------------------------------- ---------------------------------- Crude Oil and Condensate (MB/D) Consolidated U.S. 424 406 370 381 395 397 388 392 Norway 200 208 219 233 215 226 214 220 United Kingdom 81 78 63 86 77 87 82 85 Canada 46 45 42 37 42 33 31 32 Nigeria 40 34 35 38 37 38 39 38 China 13 11 12 11 12 23 27 25 Indonesia 26 23 22 13 21 21 17 19 Other 52 50 48 55 51 55 52 54 Equity affiliates 91 84 104 87 92 55 117 86 - ---------------------------------------------------------- ---------------------------------- Total 973 939 915 941 942 935 967 951 ========================================================== ================================== Natural Gas Liquids (MB/D) U.S. 48 46 42 45 45 44 44 44 International 24 22 24 25 24 23 23 23 - ---------------------------------------------------------- ---------------------------------- Total 72 68 66 70 69 67 67 67 ========================================================== ================================== Natural Gas (MMCF/D) Consolidated U.S. 1,635 1,566 1,578 1,548 1,581 1,527 1,473 1,499 Norway 291 290 252 232 266 305 273 289 United Kingdom 869 856 603 975 826 1,002 952 977 Canada 548 565 512 442 517 436 424 430 Indonesia 179 169 189 220 189 224 246 235 Other 120 95 105 112 108 111 117 115 Equity affiliates 12 13 13 13 13 12 11 11 - ---------------------------------------------------------- ---------------------------------- Total 3,654 3,554 3,252 3,542 3,500 3,617 3,496 3,556 ========================================================== ================================== Canadian Syncrude (MB/D) 22 20 23 22 22 17 19 18 - ---------------------------------------------------------- ---------------------------------- E&P Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated U.S. 18.66 24.33 25.85 26.36 23.69 31.47 27.21 29.34 Norway 20.77 24.42 26.78 26.35 24.61 32.72 26.28 29.39 United Kingdom 19.78 23.69 26.15 25.98 23.99 30.11 24.34 27.25 Canada 19.39 21.79 24.96 21.26 21.82 28.40 23.61 26.07 Nigeria 21.33 25.16 27.40 26.97 25.12 31.94 26.35 28.87 China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 27.57 Indonesia 19.38 24.46 24.21 30.59 23.51 29.35 24.54 27.20 Other 19.39 24.66 25.55 25.18 23.58 29.10 25.38 27.25 Equity affiliates 13.40 18.26 19.06 17.50 17.14 20.97 16.85 18.02 Total 18.93 23.71 25.24 25.31 23.26 30.73 25.19 27.82 - ---------------------------------------------------------- ---------------------------------- Natural Gas Liquids ($/bbl) U.S. 12.92 17.05 16.78 19.27 16.44 25.13 19.33 22.11 International 9.86 15.62 18.56 19.39 15.95 24.22 18.96 21.54 Total 11.67 16.49 17.57 19.32 16.24 24.73 19.17 21.86 - ---------------------------------------------------------- ---------------------------------- Natural Gas ($/mcf) Consolidated U.S. 2.26 2.80 2.71 3.38 2.78 5.34 4.58 4.96 Norway 3.20 2.99 3.26 3.33 3.19 3.66 3.86 3.75 United Kingdom 3.43 2.37 1.95 3.20 2.81 3.55 3.17 3.36 Canada 1.74 2.50 2.13 3.37 2.40 5.42 4.34 4.89 Indonesia 3.16 4.13 4.13 4.11 3.89 4.66 4.16 4.40 Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.48 Equity affiliates 2.17 2.60 1.78 3.00 2.39 4.82 4.89 4.85 Total 2.53 2.66 2.52 3.27 2.75 4.49 3.93 4.21 - ---------------------------------------------------------- ---------------------------------- Note: Pro forma information derived by summing the historical Phillips and Conoco data for the period indicated. Page 12 of 13
SELECTED PRO FORMA STATISTICS (Midstream and R&M) 2002 2003 --------------------------------- --------------------------------- 1st 2nd Qtr 3rd 4th Qtr YTD 1st 2nd Qtr 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr --------------------------------- --------------------------------- Midstream Natural Gas Liquids Extracted (MB/D) Consolidated United States 49 52 50 56 52 51 53 52 International 42 42 46 45 44 47 35 41 Equity Affiliates United States* 118 119 120 119 119 114 110 112 International 9 9 9 10 9 10 11 11 - ----------------------------------------------------------- --------------------------------- Total 218 222 225 230 224 222 209 216 =========================================================== ================================= * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Natural Gas Liquids Fractionated (MB/D) United States 166 159 177 179 170 168 158 163 - ----------------------------------------------------------- --------------------------------- Product Prices Weighted Average NGL ($/bbl)* Consolidated 13.23 15.99 16.69 19.24 16.31 25.59 20.99 23.29 DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 22.53 - ----------------------------------------------------------- --------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. R&M Charge Barrels Input (MB/D) Eastern U.S. Crude Oil 348 404 338 399 372 415 435 425 Other Feed and Blending Stocks 53 47 16 61 44 51 53 52 - ----------------------------------------------------------- --------------------------------- Total 401 451 354 460 416 466 488 477 =========================================================== ================================= Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 99% - ----------------------------------------------------------- --------------------------------- U.S. Gulf Coast Crude Oil 648 669 675 652 661 668 702 685 Other Feed and Blending Stocks 116 96 90 101 101 103 95 99 - ----------------------------------------------------------- --------------------------------- Total 764 765 765 753 762 771 797 784 =========================================================== ================================= Percentage Utilization 91% 94% 94% 91% 93% 93% 98% 96% - ----------------------------------------------------------- --------------------------------- Central U.S. Crude Oil 568 664 624 633 622 631 663 647 Other Feed and Blending Stocks 25 23 22 46 29 32 24 28 - ----------------------------------------------------------- --------------------------------- Total 593 687 646 679 651 663 687 675 =========================================================== ================================= Percentage Utilization 85% 96% 91% 92% 91% 92% 96% 94% - ----------------------------------------------------------- --------------------------------- Western U.S. Crude Oil 306 320 330 320 319 294 328 311 Other Feed and Blending Stocks (3) 16 13 16 11 9 13 11 - ----------------------------------------------------------- --------------------------------- Total 303 336 343 336 330 303 341 322 =========================================================== ================================= Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 93% - ----------------------------------------------------------- --------------------------------- Total U.S. Crude Oil 1,870 2,057 1,967 2,004 1,975 2,008 2,128 2,068 Other Feed and Blending Stocks 191 182 141 224 184 195 185 190 - ----------------------------------------------------------- --------------------------------- Total 2,061 2,239 2,108 2,228 2,159 2,203 2,313 2,258 =========================================================== ================================= Percentage Utilization 87% 95% 91% 93% 92% 93% 98% 95% - ----------------------------------------------------------- --------------------------------- United Kingdom and Ireland Crude Oil 279 260 273 177 247 262 244 253 Other Feed and Blending Stocks 18 27 43 30 30 39 42 41 - ----------------------------------------------------------- --------------------------------- Total 297 287 316 207 277 301 286 294 =========================================================== ================================= Percentage Utilization 92% 86% 90% 58% 81% 86% 80% 83% - ----------------------------------------------------------- --------------------------------- Equity Affiliates -- Net Share -- International* Crude Oil 119 127 127 130 126 134 132 133 Other Feed and Blending Stocks 4 6 4 3 4 2 3 2 - ----------------------------------------------------------- --------------------------------- Total 123 133 131 133 130 136 135 135 =========================================================== ================================= Percentage Utilization 88% 93% 93% 94% 92% 98% 97% 98% - ----------------------------------------------------------- --------------------------------- * Represents 18.75 percent interest in a refinery complex at Karlsruhe, Germany; 16.33 percent interest in two refineries in Kralupy and Litvinov, Czech Republic; and 47 percent interest in a refinery at Melaka, Malaysia. Worldwide -- Including Net Share of Equity Affiliates Crude Oil 2,268 2,444 2,367 2,311 2,348 2,404 2,504 2,454 Other Feed and Blending Stocks 213 215 188 257 218 236 230 233 - ----------------------------------------------------------- --------------------------------- Total 2,481 2,659 2,555 2,568 2,566 2,640 2,734 2,687 =========================================================== ================================= Percentage Utilization 88% 94% 91% 89% 90% 92% 96% 94% - ----------------------------------------------------------- --------------------------------- U.S. Petroleum Products Sales (MB/D) Gasoline 1,375 1,461 1,417 1,478 1,433 1,331 1,381 1,356 Distillates 653 650 602 692 649 600 590 595 Aviation Fuel 231 259 268 172 232 164 164 164 Other 524 479 456 403 465 509 493 501 - ----------------------------------------------------------- --------------------------------- Total 2,783 2,849 2,743 2,745 2,780 2,604 2,628 2,616 =========================================================== ================================= Note: Pro forma information derived by summing the historical Phillips and Conoco data for the period indicated. Page 13 of 13
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