-----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, CEHY3bAev5tzlUi0B5iTltepz2BtytCj2gYp7thxLyRKJ6qEH9PfP7L5v7036xRO FOlj/HENqAEaJUgdEQvoiw== 0001157523-03-005991.txt : 20031029 0001157523-03-005991.hdr.sgml : 20031029 20031029120708 ACCESSION NUMBER: 0001157523-03-005991 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20031029 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031029 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: 03962751 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 a4504391.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): October 29, 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 October 29, 2003. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. Item 12. Results of Operations and Financial Condition On October 29, 2003, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 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. 2 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/ Rand C. Berney ------------------------------------------- Rand C. Berney Vice President and Controller October 29, 2003 3 EXHIBIT INDEX Exhibit No. Description 99.1 -- Press release issued by ConocoPhillips on October 29, 2003. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. 4 EX-99 3 a4504391ex99.txt EXHIBIT 99.1 PRESS RELEASE Exhibit 99.1 ConocoPhillips Reports Third Quarter Net Income of $1.3 Billion; Strong Refining & Marketing Results HOUSTON--(BUSINESS WIRE)--Oct. 29, 2003--ConocoPhillips (NYSE:COP): Earnings at a glance Third Quarter Nine Months ----------------------------- ---------------------------- 2003 2002 2003 2002 -------------- -------------- -------------- ------------- Income (loss) from continuing operations $1,249 million $(74) million $3,607 million $140 million Income (loss) from discontinued operations $57 (42) $201 (7) Cumulative effect of changes in accounting principles $ - - $(113) - Net income (loss) $1,306 (116) $3,695 133 - ---------------------------------------------------------------------- Diluted income per share Income (loss) from continuing operations $1.82 $(0.15) $5.28 $0.34 Net income (loss) $1.90 $(0.24) $5.40 $0.32 - ---------------------------------------------------------------------- Revenues $26.5 billion $14.7 billion $79.1 billion $33.7 billion - ---------------------------------------------------------------------- ConocoPhillips (NYSE:COP) today reported third quarter net income of $1,306 million, or $1.90 per share, compared with a net loss of $116 million, or 24 cents per share, for the same quarter in 2002, which included only one month of the combined company. Total revenues were $26.5 billion, versus $14.7 billion a year ago. Income from continuing operations for the third quarter was $1,249 million, or $1.82 per share, compared with a loss of $74 million, or 15 cents per share, for the same period a year ago. "Our performance in the third quarter was solid," said Jim Mulva, president and chief executive officer. "We operated as expected and benefited from market conditions in both upstream and downstream. Upstream production was 1.56 million barrels-of-oil-equivalent (BOE) per day during the quarter. The downstream business generated a significant portion of our total earnings by maintaining high utilization rates, allowing us to realize the benefit of strong refining margins. "Net cash from operating activities for the first nine months of this year totaled $7.4 billion. This, along with cash from asset sales, enabled us to fund $4.4 billion in capital expenditures, reduce debt by $3.7 billion, and improve our debt-to-capital ratio to 36 percent. "We have completed asset sales of $2.2 billion since the merger, and we expect to complete another estimated $1.3 billion by the end of the year. This will meet our announced divestiture program target of $3 billion to $4 billion by the end of 2004. During the third quarter, we made significant progress with the announced agreement to sell The Circle K Corporation and the completion of the sale of our New York and New England retail marketing assets." For the first nine months of 2003, net income was $3,695 million, or $5.40 per share, versus $133 million, or 32 cents per share, for the corresponding period in 2002. Income from continuing operations was $3,607 million, or $5.28 per share, compared with $140 million, or 34 cents per share, for the same period a year ago. The company's return on capital employed remained strong and, after adjusting for purchase to pooling accounting, is comparable with the largest companies in the industry. Total revenues were $79.1 billion, versus $33.7 billion a year ago. In the third quarter, the company elected to adopt Financial Accounting Standards Board Interpretation No. 46, "Consolidation of Variable Interest Entities," for synthetic leases and other financing structures, with retroactive application to Jan. 1, 2003. As a result, all prior 2003 periods reflect the application of this accounting change. 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 third quarter and first nine months of 2003 reflect the operations of the combined company, the third quarter of 2002 includes two months' activity for Phillips and one month's activity for ConocoPhillips. Similarly, results for the first nine months of 2002 include eight months' activity for Phillips and one month of activity for ConocoPhillips, restated for discontinued operations. All asset dispositions required by the Federal Trade Commission have now been completed. The results of ConocoPhillips' business segments follow. Exploration & Production (E&P) Third quarter financial results: E&P income from continuing operations in the third quarter was $967 million, down from $1,077 million in the second quarter of 2003 and up from $460 million in the third quarter of 2002. The decrease from the second quarter was primarily the result of impacts from one-time benefits associated with international tax legislation changes in the second quarter, decreased production due to normal seasonal declines and scheduled maintenance activity, and the impact of asset dispositions. These decreases were partially offset by higher realized crude oil prices and gains from asset sales. Improved results from the third quarter of 2002 were due to higher realized crude oil and natural gas prices and increased production resulting from a full quarter of production from the Conoco assets. ConocoPhillips' daily production for the quarter was lower than that of the second quarter, averaging 1.56 million BOE per day, including Canadian Syncrude. Decreased production was primarily the result of seasonal declines and scheduled maintenance activity in Alaska and the North Sea, as well as asset dispositions in the Lower 48. Disposition proceeds of approximately $400 million during the third quarter bring total E&P asset sales for 2003 to approximately $750 million. These dispositions, together with those expected to close in the fourth quarter, represent a production rate decrease of approximately 50,000 BOE per day. ConocoPhillips' third quarter 2003 average worldwide crude oil sales price was $27.00 per barrel, up from $25.19 in the second quarter of 2003. The company's U.S. Lower 48 and worldwide natural gas prices averaged $4.56 and $3.80 per thousand cubic feet, respectively, compared with $4.72 and $3.93 in the second quarter of 2003. Nine months financial results: E&P income from continuing operations for the first nine months of 2003 was $3,169 million, up from $941 million in 2002, primarily due to additional volumes from the Conoco operations, higher realized worldwide crude oil and natural gas prices, and one-time benefits associated with international tax legislation changes. ConocoPhillips' average worldwide crude oil price was $27.55 per barrel for the first nine months of 2003, compared with $23.43 for the same period in 2002. The company's U.S. Lower 48 and worldwide natural gas prices averaged $4.92 and $4.08 per thousand cubic feet, respectively, versus $2.42 and $2.37 in 2002. Midstream Third quarter financial results: Midstream income from continuing operations was $31 million, up from $25 million in the second quarter of 2003 and up from $11 million in the third quarter of 2002. The increase from the second quarter was due primarily to improved margins, partially offset by a second quarter gain on asset sales in equity earnings from Duke Energy Field Services, LLC (DEFS). The increase over the third quarter of 2002 was primarily due to higher natural gas liquids prices and a full quarter of operations from the Conoco assets. Nine months financial results: Midstream operating results increased to $87 million, from $35 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) Third quarter financial results: R&M income from continuing operations was $485 million, improved from $321 million in the previous quarter and up from $57 million in the third quarter of 2002. The improvement in third quarter R&M earnings, compared with the second quarter of 2003, was primarily driven by higher refining margins (net of narrowing light-heavy differentials) throughout the United States. Additionally, earnings benefited from lower utility and turnaround costs. Increased refining results were partially offset by lower U.S. and international marketing margins, as well as an estimated $30 million impact related to decreased utilization at the Ponca City refinery. The improved results over the third quarter of 2002 were attributable to higher refining and marketing margins, a full quarter of operations from the Conoco assets, and business improvements, which included the benefits from progress made on implementing synergy initiatives. The company's crude oil capacity utilization rate averaged 95 percent, compared with 96 percent last quarter. After-tax turnaround costs were $13 million and $26 million in the third quarter and second quarter of 2003, respectively. Nine months financial results: R&M income from continuing operations for the first nine months of 2003 increased to $1,195 million, compared with $38 million for the first nine months of 2002. Increased refining and marketing margins, as well as the addition of the Conoco assets, contributed to the increase. Chemicals Third 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 $7 million, compared with $12 million in the second quarter of 2003 and $3 million in the third quarter of 2002. Decreases from the second quarter were the result of lower margins, partially offset by higher sales volumes. The increase from the third quarter of 2002 primarily reflects third quarter 2002 losses from asset retirements and higher margins in the third quarter of 2003, particularly in aromatics and styrenics. Nine months financial results: During the first nine months of 2003, the Chemicals segment had a loss from continuing operations of $4 million, compared with $1 million for the same period a year ago. The increased loss was primarily due to slightly lower margins, as well as higher employee severance accruals, partially offset by third quarter 2002 losses from asset retirements. Emerging Businesses The Emerging Businesses segment had a loss from continuing operations of $18 million in the third quarter of 2003, compared with losses of $23 million in the second quarter of 2003 and $262 million in the third quarter of 2002. The improvement from the second quarter was primarily attributable to reduced costs associated with a gas-to-liquids plant. The decrease in costs from the third quarter of 2002 primarily resulted from a 2002 write-off of purchased in-process research and development costs. Corporate and Other Third quarter after-tax Corporate expenses from continuing operations were $223 million, compared with $317 million in the previous quarter and $343 million in the third quarter of 2002. Contributing to the decrease during the third quarter from the second quarter of 2003 were reduced merger-related expenses, from $115 million to $41 million. The decrease from the third quarter of 2002 also primarily resulted from lower merger-related expenses, partially offset by a full quarter of expenses associated with the Conoco assets. The company's balance sheet debt level at the end of the third quarter was $18.9 billion. This reflects debt reductions of $1.4 billion during the third quarter, as well as accounting changes that increased balance sheet debt by $2.9 billion. These accounting changes reflect the adoption of Financial Accounting Standards Board (FASB) Interpretation No. 46 (FIN 46), "Consolidation of Variable Interest Entities," for synthetic leases and other financing structures, as permitted by FASB Staff Position No. FIN 46-6, and the adoption of FASB Statement No. 150 (SFAS 150), "Accounting for Certain Financial Instruments with Characteristics of Both Liabilities and Equity." The third quarter implementation of FIN 46 was retroactive to Jan. 1, 2003, while SFAS 150 was adopted and applied as of July 1, 2003. The FASB continues to issue guidance related to variable interest entities, which the company will monitor in connection with its implementation of FIN 46 and SFAS 150. The company's third quarter effective tax rate of 46 percent was higher than that of the second quarter primarily due to the one-time impact in the second quarter of tax law changes in certain international jurisdictions, partially offset by a higher proportion of income in lower-tax-rate jurisdictions. Discontinued Operations Third quarter 2003 earnings from discontinued operations were $57 million, compared with $91 million in the second quarter. The decrease was primarily related to lower marketing margins and asset dispositions. Outlook Mr. Mulva concluded: "During the quarter, we celebrated our first anniversary as ConocoPhillips. We remain committed to deliver superior returns to our shareholders through continued strong earnings, debt reduction, cost and capital discipline, and a competitive dividend. We recently announced an increase of 7.5 percent to our dividend rate. "Upstream, we continue to strengthen our portfolio through legacy project advancement and planned asset dispositions, which are progressing as expected. In addition, we are continuing to pursue expansion of our portfolio of worldwide natural gas opportunities in places such as Qatar, Venezuela and Australia. "Downstream, we are on track with our plan to rationalize a substantial portion of our U.S. retail marketing assets. During the fourth quarter, we expect higher turnaround activity and scheduled maintenance than in the previous two quarters, and we anticipate crude oil utilization rates to exceed 90 percent. "These and the other plans we are implementing are designed to achieve higher long-term returns on capital employed. We remain committed to this objective and look forward to updating the investment community on the status of our operating and investment plans at our November security analyst meeting." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 54,800 employees, $82 billion of assets, and $106 billion of annualized revenues as of Sept. 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 "Third Quarter Earnings" link. For financial and operational tables, go to www.conocophillips.com/news/nr/earnings/highlights/3q03earnings.html. For detailed supplemental information, go to www.conocophillips.com/news/nr/earnings/detail/3q03summary.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 "...we expect higher turnaround activity and scheduled maintenance than in the previous two quarters"; "we anticipate crude oil utilization rates to exceed 90 percent"; and "these and the other plans we are implementing are designed to achieve higher long-term returns on capital employed," 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 Kristi DesJarlais, 281-293-4595 (media) or Clayton Reasor, 212-207-1996 (investors) www.conocophillips.com EX-99 4 a4504391ex992.txt EXHIBIT 99.2 FINANCIAL AND OPERATIONAL TABLES Exhibit 99.2
ConocoPhillips Houston, Texas 77079 Preliminary FINANCIAL HIGHLIGHTS Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2003 2002** 2003 2002** Revenues Sales and other operating revenues* $26,105 14,557 78,366 33,402 Equity in earnings of affiliates 186 89 391 138 Other income 202 85 378 136 -------- -------- -------- -------- 26,493 14,731 79,135 33,676 -------- -------- -------- -------- Costs and expenses Purchased crude oil and products 16,815 9,904 50,848 22,697 Production and operating expenses 1,736 1,203 5,262 3,002 Selling, general and administrative expenses 551 795 1,601 1,266 Exploration expenses 132 85 390 315 Depreciation, depletion and amortization 858 548 2,574 1,339 Property impairments 18 8 192 26 Taxes other than income taxes* 3,807 1,733 10,853 3,624 Accretion on discounted liabilities 39 6 107 17 Interest and debt expense 190 134 647 347 Foreign currency transaction (gains)/losses 34 (6) 14 (11) Minority interests and preferred dividend requirements of capital trusts 3 9 16 34 -------- -------- -------- -------- 24,183 14,419 72,504 32,656 -------- -------- -------- -------- Income from continuing operations before income taxes and subsidiary equity transactions 2,310 312 6,631 1,020 Gain on subsidiary equity transactions - - 28 - -------- -------- -------- -------- Income from continuing operations before income 2,310 312 6,659 1,020 taxes Provision for income taxes 1,061 386 3,052 880 -------- -------- -------- -------- Income (loss) from continuing operations 1,249 (74) 3,607 140 Income (loss) from discontinued operations, net of income taxes 57 (42) 201 (7) -------- -------- -------- -------- Income (loss) before cumulative effect of changes in accounting principles 1,306 (116) 3,808 133 Cumulative effect of changes in accounting principles - - (113) - -------- -------- -------- -------- Net income (Loss) $1,306 (116) 3,695 133 ======== ======== ======== ======== Income (loss) per share of common stock Basic Continuing operations $1.84 (0.15) 5.30 0.34 Discontinued operations 0.08 (0.09) 0.30 (0.02) Before cumulative effect of changes in accounting principles 1.92 (0.24) 5.60 0.32 Cumulative effect of changes in accounting principles - - (0.17) - Net income (loss) $1.92 (0.24) 5.43 0.32 Diluted Continuing operations $1.82 (0.15) 5.28 0.34 Discontinued operations 0.08 (0.09) 0.29 (0.02) Before cumulative effect of changes in accounting principles 1.90 (0.24) 5.57 0.32 Cumulative effect of changes in accounting principles - - (0.17) - Net income (loss) $1.90 (0.24) 5.40 0.32 Average common shares outstanding (in thousands) Basic 680,689 480,701 680,089 416,293 Diluted 686,263 484,777 684,248 422,212 *Includes excise taxes on petroleum products sales: $3,580 1,560 10,115 3,143 **Restated for certain discontinued operations.
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ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE E&P United States $546 306 1,741 741 International 421 154 1,428 200 -------- ----- -------- ----- Total E&P 967 460 3,169 941 -------- ----- -------- ----- Midstream 31 11 87 35 -------- ----- -------- ----- R&M United States 416 44 939 25 International 69 13 256 13 -------- ----- -------- ----- Total R&M 485 57 1,195 38 -------- ----- -------- ----- Chemicals 7 3 (4) (1) Emerging Businesses (18) (262) (75) (270) Corporate and other (223) (343) (765) (603) -------- ----- -------- ----- Consolidated $1,249 (74) 3,607 140 ======== ===== ======== ===== CUMULATIVE EFFECT OF ACCOUNTING CHANGES E&P United States $- - 142 - International - - (13) - -------- ----- -------- ----- Total E&P - - 129 - -------- ----- -------- ----- Midstream - - - - -------- ----- -------- ----- R&M United States - - (125) - International - - - - -------- ----- -------- ----- Total R&M - - (125) - -------- ----- -------- ----- Chemicals - - - - Emerging Businesses - - - Corporate and other - - (117) - -------- ----- -------- ----- Consolidated $- - (113) - ======== ===== ======== ===== INCOME (LOSS) FROM DISCONTINUED OPERATIONS Corporate and other 57 (42) 201 (7) SUMMARY OF NET INCOME/(LOSS) E&P United States $546 306 1,883 741 International 421 154 1,415 200 -------- ----- -------- ----- Total E&P 967 460 3,298 941 -------- ----- -------- ----- Midstream 31 11 87 35 -------- ----- -------- ----- R&M United States 416 44 814 25 International 69 13 256 13 -------- ----- -------- ----- Total R&M 485 57 1,070 38 -------- ----- -------- ----- Chemicals 7 3 (4) (1) Emerging Businesses (18) (262) (75) (270) Corporate and other (166) (385) (681) (610) -------- ----- -------- ----- Net income/(loss) $1,306 (116) 3,695 133 ======== ===== ======== =====
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ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS Effective tax rate % 45.9 %123.7 45.8 86.3 Millions of Dollars FOREIGN CURRENCY GAINS/(LOSSES) AFTER-TAX E&P $(12) (6) (28) (11) Midstream - - - - R&M (7) 3 4 8 Chemicals - - - - Emerging Businesses (1) - (1) - Corporate and other 2 5 21 13 -------- ------ -------- ------ $(18) 2 (4) 10 ======== ====== ======== ====== CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) from continuing operations $1,249 (74) 3,607 140 Depreciation, depletion and amortization 858 548 2,574 1,339 Property impairments 18 8 192 26 Dry hole costs and leasehold impairment 75 20 169 161 Accretion on discounted liabilities 39 6 107 17 In-process research and development - 246 - 246 Deferred taxes 36 (20) 289 45 Other (631) (62) (729) 58 Working capital changes 323 1,137 975 836 -------- ------ -------- ------ Net cash provided by continuing operations 1,967 1,809 7,184 2,868 Net cash provided by discontinued operations 74 68 174 118 -------- ------ -------- ------ Net cash provided by operating activities $2,041 1,877 7,358 2,986 ======== ====== ======== ====== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $353 233 1,060 756 Foreign 756 482 2,228 1,177 -------- ------ -------- ------ 1,109 715 3,288 1,933 Midstream 2 1 6 2 R&M 298 192 740 425 Chemicals - 10 - 29 Emerging Businesses 60 35 224 35 Corporate and other* 51 7 127 55 -------- ------ -------- ------ $1,520 960 4,385 2,479 ======== ====== ======== ====== *Excludes discontinued operations OTHER At September At December 31, 30, 2003 2002 Total debt $18,887 19,766 Common stockholders' equity $32,965 29,517
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ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS BY SEGMENT Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 Thousands of Barrels Daily E&P Crude oil produced United States Alaska 314 310 327 334 Lower 48 51 38 56 34 ---------- ----------- ----------- ---------- 365 348 383 368 Norway 207 156 215 131 United Kingdom 67 35 79 24 Canada 29 14 31 5 Nigeria 36 29 38 26 China 25 12 25 12 Indonesia 16 6 18 2 Other 48 20 52 9 ---------- ----------- ----------- ---------- Total consolidated 793 620 841 577 Equity affiliates 120 44 97 18 ---------- ----------- ----------- ---------- Total Worldwide 913 664 938 595 ========== =========== =========== ========== Syncrude 22 8 19 3 ========== =========== =========== ========== Natural gas liquids produced United States Alaska* 19 21 22 24 Lower 48 20 9 20 4 ---------- ----------- ----------- ---------- 39 30 42 28 Norway 7 6 8 5 Canada 9 3 10 1 Other 2 4 4 4 ---------- ----------- ----------- ---------- Total Worldwide 57 43 64 38 ========== =========== =========== ========== *Includes reinjected volumes sold lease-to- lease. 13 13 14 14 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 180 183 177 171 Lower 48 1,271 922 1,306 782 ---------- ----------- ----------- ---------- 1,451 1,105 1,483 953 Norway 216 183 265 150 United Kingdom 853 349 935 238 Canada 448 172 436 72 Indonesia 275 68 248 23 Other 130 105 120 106 ---------- ----------- ----------- ---------- Total consolidated 3,373 1,982 3,487 1,542 Equity affiliates 11 4 11 1 ---------- ----------- ----------- ---------- Total Worldwide 3,384 1,986 3,498 1,543 ========== =========== =========== ========== *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 121 128 114 120
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ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 E&P (continued) Per Unit Average sales prices Crude oil (per barrel) United States Alaska $28.31 25.83 28.99 22.92 Lower 48 27.94 26.87 28.98 23.61 Total U.S. 28.26 25.94 28.99 22.98 International 28.05 27.00 28.22 24.55 Total consolidated 28.15 26.38 28.57 23.54 Equity affiliates 19.90 20.29 18.84 19.88 Total Worldwide 27.00 25.97 27.55 23.43 Natural gas-lease (per MCF) United States Alaska 1.33 1.58 1.71 1.81 Lower 48 4.56 2.65 4.92 2.42 Total U.S. 4.41 2.60 4.78 2.39 International 3.38 2.37 3.59 2.34 Total consolidated 3.80 2.49 4.07 2.37 Equity affiliates 4.12 1.78 4.61 1.78 Total Worldwide 3.80 2.49 4.08 2.37 Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 50 19 51 7 International 47 15 44 5 Equity affiliates United States* 111 119 111 118 International 12 3 11 1 ---------- ----------- ---------- ----------- 220 156 217 131 ========== =========== ========== =========== *Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS) Per Barrel U.S. product prices Weighted average NGL** Consolidated $20.94 18.57 22.51 18.57 DEFS 20.67 16.32 21.91 14.91 **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.
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Three Months Ended Nine Months Ended September 30 September 30 2003 2002 2003 2002 Thousands of Barrels Daily R&M United States Crude oil capacity 2,168 1,825 2,168 1,710 Crude oil runs 2,083 1,643 2,073 1,546 Refinery production 2,322 1,795 2,311 1,702 International* Crude oil capacity 442 192 442 112 Crude oil runs 387 168 387 100 Refinery production 413 178 419 101 U.S. Petroleum products outside sales Automotive gasoline 1,398 1,195 1,370 1,146 Distillates 580 449 590 437 Aviation fuels 197 219 176 189 Other products 497 350 499 363 ---------- ----------- ---------- -------------------- 2,672 2,213 2,635 2,135 International 441 201 439 102 ---------- ----------- ---------- -------------------- 3,113 2,414 3,074 2,237 ========== =========== ========== ==================== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $1.09 0.93 1.07 0.86 Automotive gasoline-retail 1.42 1.02 1.38 0.95 Distillates-wholesale 0.88 0.81 0.93 0.73 *Includes ConocoPhillips' share of equity affiliates. **Excludes excise taxes.
1-6 EX-99 5 a4504391ex993.txt EXHIBIT 99.3 SUPPLEMENTAL FINANCIAL INFORMATION Exhibit 99.3
ConocoPhillips SUMMARY OF NET INCOME (LOSS) BY SEGMENT Millions of Dollars -------------------------------------------------------------------------------------------- 2002 2003 --------------------------------------------------- -------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------------- ------------------------------------------ Income (Loss) from Continuing Operations Before Accounting Changes U.S. E&P 155 280 306 415 1,156 678 517 546 1,741 International E&P (13) 59 154 393 593 447 560 421 1,428 - --------------------------------------------------------------------------------------- ----------------------------------------- Total E&P 142 339 460 808 1,749 1,125 1,077 967 3,169 - --------------------------------------------------------------------------------------- ------------------------------------------ Midstream 12 12 11 20 55 31 25 31 87 - ------------------------------------------------------------------------------------------- -------------------------------------- U.S. R&M (92) 73 44 113 138 275 248 416 939 International R&M 5 (5) 13 (8) 5 114 73 69 256 - ------------------------------------------------------------------------------------------- -------------------------------------- Total R&M (87) 68 57 105 143 389 321 485 1,195 - ------------------------------------------------------------------------------------------- -------------------------------------- Chemicals (11) 7 3 (13) (14) (23) 12 7 (4) Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (18) (75) Corporate and Other (149) (111) (343) (322) (925) (225) (317) (223) (765) - ------------------------------------------------------------------------------------------- -------------------------------------- Consolidated (98) 312 (74) 558 698 1,263 1,095 1,249 3,607 =========================================================================================== ====================================== Cumulative Effect of Accounting Changes U.S. E&P - - - - - 142 - - 142 International E&P - - - - - (13) - - (13) - ------------------------------------------------------------------------------------------- -------------------------------------- Total E&P - - - - - 129 - - 129 - ------------------------------------------------------------------------------------------- -------------------------------------- Midstream - - - - - - - - - - ------------------------------------------------------------------------------------------- -------------------------------------- U.S. R&M - - - - - (125) - - (125) International R&M - - - - - - - - - - ------------------------------------------------------------------------------------------- -------------------------------------- Total R&M - - - - - (125) - - (125) - ------------------------------------------------------------------------------------------- -------------------------------------- Chemicals - - - - - - - - - Emerging Businesses - - - - - - - - - Corporate and Other - - - - - (117) - - (117) - ------------------------------------------------------------------------------------------- -------------------------------------- Consolidated - - - - - (113) - - (113) ========================================================================================= ======================================= Income (Loss) from Discontinued Operations Corporate and Other (4) 39 (42) (986) (993) 53 91 57 201 =========================================================================================== ====================================== Net Income (Loss) U.S. E&P 155 280 306 415 1,156 820 517 546 1,883 International E&P (13) 59 154 393 593 434 560 421 1,415 - ------------------------------------------------------------------------------------------- -------------------------------------- Total E&P 142 339 460 808 1,749 1,254 1,077 967 3,298 - ------------------------------------------------------------------------------------------- -------------------------------------- Midstream 12 12 11 20 55 31 25 31 87 - ------------------------------------------------------------------------------------------- -------------------------------------- U.S. R&M (92) 73 44 113 138 150 248 416 814 International R&M 5 (5) 13 (8) 5 114 73 69 256 - ------------------------------------------------------------------------------------------- -------------------------------------- Total R&M (87) 68 57 105 143 264 321 485 1,070 - ------------------------------------------------------------------------------------------- -------------------------------------- Chemicals (11) 7 3 (13) (14) (23) 12 7 (4) Emerging Businesses (5) (3) (262) (40) (310) (34) (23) (18) (75) Corporate and Other (153) (72) (385) (1,308) (1,918) (289) (226) (166) (681) - ------------------------------------------------------------------------------------------- -------------------------------------- Consolidated (102) 351 (116) (428) (295) 1,203 1,186 1,306 3,695 =========================================================================================== ====================================== Page 1 of 13
ConocoPhillips INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Millions of Dollars -------------------------------------------------------------- 2002 2003 -------------------------------- ----------------------------- 1st 2nd Qtr 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr -------------------------------- ----------------------------- Income from Continuing Operations Before Income Taxes U.S. E&P 223 419 450 536 1,628 1,050 802 853 2,705 International E&P 167 260 555 949 1,931 1,260 967 1,029 3,256 - ------------------------------------------------------------------------------------------ ----------------------------- Total E&P 390 679 1,005 1,485 3,559 2,310 1,769 1,882 5,961 - ------------------------------------------------------------------------------------------ ----------------------------- Midstream 20 20 23 35 98 51 42 50 143 - ------------------------------------------------------------------------------------------ ----------------------------- U.S. R&M (140) 118 75 175 228 453 396 639 1,488 International R&M 5 (5) 19 (25) (6) 150 94 86 330 - ------------------------------------------------------------------------------------------ ----------------------------- Total R&M (135) 113 94 150 222 603 490 725 1,818 - ------------------------------------------------------------------------------------------ ----------------------------- Chemicals (18) 3 (1) (16) (32) (44) 15 10 (19) Emerging Businesses (8) (5) (274) (62) (349) (51) (34) (29) (114) Corporate and Other (198) (153) (535) (471)(1,357) (300) (502) (328) (1,130) - ------------------------------------------------------------------------------------------ ----------------------------- Consolidated 51 657 312 1,121 2,141 2,569 1,780 2,310 6,659 ========================================================================================== ============================= Income from Continuing Operations Effective Tax Rates U.S. E&P 30.5% 33.2% 32.0% 22.6% 29.0% 35.4% 35.5% 36.0% 35.6% International E&P 107.8% 77.3% 72.3% 58.6% 69.3% 64.5% 42.1% 59.1% 56.1% - ------------------------------------------------------------------------------------------ ----------------------------- Total E&P 63.6% 50.1% 54.2% 45.6% 50.9% 51.3% 39.1% 48.6% 46.8% - ------------------------------------------------------------------------------------------ ----------------------------- Midstream 40.0% 40.0% 52.2% 42.9% 43.9% 39.2% 40.5% 38.0% 39.2% - ------------------------------------------------------------------------------------------ ----------------------------- U.S. R&M 34.3% 38.1% 41.3% 35.4% 39.5% 39.3% 37.4% 34.9% 36.9% International R&M 0.0% 0.0% 31.6% 68.0% 183.3% 24.0% 22.3% 19.8% 22.4% - ------------------------------------------------------------------------------------------ ----------------------------- Total R&M 35.6% 39.8% 39.4% 30.0% 35.6% 35.5% 34.5% 33.1% 34.3% - ------------------------------------------------------------------------------------------ ----------------------------- Chemicals 38.9%-133.3%400.0% 18.8% 56.3% 47.7% 20.0% 30.0% 78.9% Emerging Businesses 37.5% 40.0% 4.4% 35.5% 11.2% 33.3% 32.4% 37.9% 34.2% Corporate and Other 24.7% 27.5% 35.9% 31.6% 31.8% 25.0% 36.9% 32.0% 32.3% - ------------------------------------------------------------------------------------------ ----------------------------- Consolidated 292.2% 52.5%123.7% 50.2% 67.4% 50.8% 38.5% 45.9% 45.8% ========================================================================================== ============================= Page 2 of 13
ConocoPhillips CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX) Millions of Dollars ------------------------------------------------- 2002 2003 ------------------------- ----------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------- ----------------------- U.S. E&P Gain (loss) on asset sales - - - - - - 16 65 81 Property impairments - (3) (5) - (8) - (14) (10) (24) Pending claims and settlements - - - - - - (20) - (20) - ------------------------------------------------------------------------------------------------ ----------------------- Total - (3) (5) - (8) - (18) 55 37 - ------------------------------------------------------------------------------------------------ ----------------------- International E&P Gain (loss) on asset sales - - - 17 17 - - 33 33 Property impairments (7) (3) - (14) (24) (12) (32) - (44) U.K. tax law change - - (24) - (24) - - - - Norway Removal Grant Act (1986) repeal* - - - - - - 87 - 87 Bayu-Undan ownership realignment - - - - - - 51 - 51 Angola leasehold impairment (77) - - - (77) - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total (84) (3) (24) 3 (108) (12) 106 33 127 - ------------------------------------------------------------------------------------------------ ----------------------- Total E&P (84) (6) (29) 3 (116) (12) 88 88 164 - ------------------------------------------------------------------------------------------------ ----------------------- Midstream - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- U.S. R&M Gain (loss) on asset sales - - - - - - - - - Property impairments - - - (83) (83) - - - - Other - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total - - - (83) (83) - - - - - ------------------------------------------------------------------------------------------------ ----------------------- International R&M Gain (loss) on asset sales - - - - - - - - - Property impairments - - - - - - - - - Other - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total R&M - - - (83) (83) - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Chemicals - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Emerging Businesses Write-off of in-process R&D - - (246) - (246) - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total - - (246) - (246) - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Corporate and Other Insurance demutualization benefits - - - - - 34 - - 34 Property impairments - - - - - - (3) - (3) Merger-related expenses (2) (1)(221) (83)(307) (27)(115) (41) (183) Premium on early debt retirement - (15) - (1) (16) (10) (9) - (19) Other - - - - - - - - - - ------------------------------------------------------------------------------------------------ ----------------------- Total (2)(16)(221) (84)(323) (3)(127) (41) (171) - ------------------------------------------------------------------------------------------------ ----------------------- Total Company (86)(22)(496)(164)(768) (15) (39) 47 (7) ======================================================================================================================== * Net of $21 million of property impairments. Page 3 of 13
ConocoPhillips CASH FLOW INFORMATION Millions of Dollars ---------------------------------------------------------------- 2002 2003 ------------------------------- -------------------------------- 1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr 3rd Qtr 4th YTD Qtr Qtr Qtr ------------------------------- -------------------------------- DD&A (including property impairments) included in net cash provided by operating activities 406 402 557 1,035 2,400 887 1,003 876 2,766 ======================================================================================= ================================ Net Cash Provided by Operating Activities 579 530 1,877 1,983 4,969 3,164 2,153 2,041 7,358 - --------------------------------------------------------------------------------------- -------------------------------- Cash Flows from Investing Activities Capital expenditures and investments: E&P (517)(701) (715)(1,343)(3,276) (1,012)(1,167)(1,109) (3,288) Midstream - (1) (1) (3) (5) (2) (2) (2) (6) R&M (104)(129) (192) (415) (840) (202) (240) (298) (740) Chemicals (10) (9) (10) (31) (60) - - - - Emerging Businesses - - (35) (87) (122) (66) (98) (60) (224) Corporate and Other (14) (34) (7) (30) (85) (26) (50) (51) (127) - --------------------------------------------------------------------------------------- -------------------------------- Total capital expend. & investments (645)(874) (960)(1,909)(4,388) (1,308)(1,557)(1,520) (4,385) Acquisitions, net of cash acquired - - 1,242 (62) 1,180 - - - - Acquisitions - adoption of FIN 46 - - - - - 225 - - 225 Proceeds from asset dispositions 45 36 19 715 815 126 465 913 1,504 Long-term advances to affiliates and other investments (12) 14 (83) (11) (92) (28) (9) 39 2 Discontinued operations (12) (12) (22) (53) (99) (14) 3 (38) (49) - --------------------------------------------------------------------------------------- -------------------------------- Net Cash Used for Investing Activities (624)(836) 196 (1,320)(2,584) (999)(1,098) (606) (2,703) - --------------------------------------------------------------------------------------- -------------------------------- Cash Flows from Financing Activities Net issuance (repayment) of debt 204 725 (1,432) (587)(1,090) (1,569) (708)(1,515) (3,792) Redemption of preferred stock - (300) - - (300) - - - - Dividends (138)(137) (138) (271) (684) (271) (272) (272) (815) Other 7 (7) (131) (15) (146) 11 32 85 128 - --------------------------------------------------------------------------------------- -------------------------------- Net Cash Provided by (Used for) Financing Activities 73 281 (1,701) (873)(2,220) (1,829) (948)(1,702) (4,479) - --------------------------------------------------------------------------------------- -------------------------------- Net Change in Cash and Cash Equivalents 28 (25) 372 (210) 165 336 107 (267) 176 Cash and cash equivalents at beginning of period 142 170 145 517 142 307 643 750 307 - --------------------------------------------------------------------------------------- -------------------------------- Cash and Cash Equivalents at End of Period 170 145 517 307 307 643 750 483 483 ======================================================================================= ================================ Page 4 of 13
TOTAL E&P 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------------ ---------------------------- E&P Net Income ($ Millions) 142 339 460 808 1,749 1,254 1,077 967 3,298 =========================================================================================== ============================ Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 833 798 1,046 1,623 1,077 1,622 1,636 1,556 1,604 - ------------------------------------------------------------------------------------------- ---------------------------- Crude Oil and Condensate (MB/D) Consolidated 566 546 620 854 647 880 850 793 841 Equity affiliates 5 4 44 87 35 55 117 120 97 - ------------------------------------------------------------------------------------------- ---------------------------- Total 571 550 664 941 682 935 967 913 938 =========================================================================================== ============================ Sales of crude oil produced (MB/D) 566 557 664 918 677 911 996 917 941 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids (MB/D) 37 34 43 70 46 67 67 57 64 - ------------------------------------------------------------------------------------------------------------------------ Natural Gas (MMCF/D) Consolidated 1,349 1,286 1,982 3,529 2,043 3,605 3,485 3,373 3,487 Equity affiliates - - 4 13 4 12 11 11 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 1,349 1,286 1,986 3,542 2,047 3,617 3,496 3,384 3,498 =========================================================================================== ============================ Canadian Syncrude (MB/D) - - 8 22 8 17 19 22 19 - ------------------------------------------------------------------------------------------- ---------------------------- Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 21.56 26.27 28.31 28.20 26.09 34.06 29.02 30.18 31.09 Brent dated 21.14 25.04 26.94 26.78 24.98 31.51 26.03 28.41 28.65 Natural Gas--Henry Hub 1st of month ($/mcf) 2.34 3.38 3.16 3.97 3.21 6.58 5.40 4.97 5.65 - ------------------------------------------------------------------------------------------- ---------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 19.41 24.46 26.38 26.12 24.38 31.27 26.33 28.15 28.57 Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 19.90 18.84 Total 19.37 24.44 25.97 25.31 24.07 30.73 25.19 27.00 27.55 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids ($/bbl) 16.00 20.36 19.42 19.32 18.93 24.73 19.17 19.72 21.22 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas ($/mcf) Consolidated 2.15 2.40 2.49 3.27 2.77 4.49 3.92 3.80 4.07 Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.12 4.61 Total 2.15 2.40 2.49 3.27 2.77 4.49 3.93 3.80 4.08 - ------------------------------------------------------------------------------------------- ---------------------------- Exploration Charges ($ Millions) Dry Holes 16 17 4 124 161 20 30 39 89 Lease Impairments 93 16 15 22 146 20 24 36 80 - ------------------------------------------------------------------------------------------- ---------------------------- Total Non-Cash Charges 109 33 19 146 307 40 54 75 169 Other (G&G and Lease Rentals) 54 34 66 131 285 76 88 57 221 - ------------------------------------------------------------------------------------------- ---------------------------- Total Exploration Charges 163 67 85 277 592 116 142 132 390 =========================================================================================== ============================ Depreciation, Depletion & Amortization Producing operations ($ millions) 274 278 398 666 1,616 643 630 636 1,909 - ------------------------------------------------------------------------------------------- ---------------------------- Page 5 of 13
ConocoPhillips U.S. E&P 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------------ ---------------------------- U.S. E&P Net Income ($ Millions) 155 280 306 415 1,156 820 517 546 1,883 =========================================================================================== ============================ Alaska ($ Millions) 123 223 246 278 870 508 302 302 1,112 - ------------------------------------------------------------------------------------------- ---------------------------- Lower 48 ($ Millions) 32 57 60 137 286 312 215 244 771 - ------------------------------------------------------------------------------------------- ---------------------------- Production Total U.S. (MBOE/D) 564 538 562 684 587 696 678 646 672 - ------------------------------------------------------------------------------------------- ---------------------------- Crude Oil and Condensate (MB/D) Alaska 353 339 310 323 331 337 331 314 327 Lower 48 33 31 38 58 40 60 57 51 56 - ------------------------------------------------------------------------------------------- ---------------------------- Total 386 370 348 381 371 397 388 365 383 =========================================================================================== ============================ Sales of crude oil produced (MB/D) 383 374 360 370 372 391 389 369 383 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids (MB/D)* Alaska 27 25 21 24 24 25 23 19 22 Lower 48 1 1 9 21 8 19 21 20 20 - ------------------------------------------------------------------------------------------- ---------------------------- Total 28 26 30 45 32 44 44 39 42 =========================================================================================== ============================ *Includes reinjection volumes sold lease-to-lease: 15 14 13 15 14 15 14 13 14 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas (MMCF/D) Alaska 168 160 183 186 175 189 162 180 177 Lower 48 734 689 922 1,362 928 1,338 1,311 1,271 1,306 - ------------------------------------------------------------------------------------------- ---------------------------- Total 902 849 1,105 1,548 1,103 1,527 1,473 1,451 1,483 =========================================================================================== ============================ Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 13.58 18.96 20.42 21.10 18.42 25.95 21.70 22.82 23.49 - ------------------------------------------------------------------------------------------- ---------------------------- West Coast 18.72 24.40 25.83 26.43 23.75 31.47 27.19 28.31 28.99 - ------------------------------------------------------------------------------------------- ---------------------------- Lower 48 18.86 24.53 26.87 26.00 24.48 31.48 27.34 27.94 28.98 - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. 18.73 24.41 25.94 26.36 23.83 31.47 27.21 28.26 28.99 - ------------------------------------------------------------------------------------------- ---------------------------- . . . Natural Gas Liquids ($/bbl) Alaska 18.67 24.40 25.68 26.48 23.48 31.32 27.24 28.42 29.12 - ------------------------------------------------------------------------------------------- ---------------------------- Lower 48 12.75 16.74 14.62 16.17 15.66 21.91 15.89 18.76 18.71 - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. 18.13 23.61 20.17 19.27 20.00 25.13 19.33 20.87 21.74 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas ($/mcf) Alaska 2.13 1.80 1.58 1.95 1.85 1.97 1.88 1.33 1.71 - ------------------------------------------------------------------------------------------- ---------------------------- Lower 48 1.99 2.56 2.65 3.43 2.79 5.47 4.72 4.56 4.92 - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. 1.99 2.51 2.60 3.38 2.75 5.34 4.58 4.41 4.78 - ------------------------------------------------------------------------------------------- ---------------------------- Kenai, Alaska LNG Sales Volume (MMCF/D) 117 114 128 128 122 130 91 121 114 - ------------------------------------------------------------------------------------------- ---------------------------- Sales price per MCF 4.00 3.74 4.21 4.30 4.07 4.38 4.56 4.46 4.46 - ------------------------------------------------------------------------------------------- ---------------------------- U.S. Exploration Charges ($ Millions) Dry Holes 14 3 1 61 79 16 3 9 28 Lease Impairments 13 12 10 14 49 13 12 10 35 - ------------------------------------------------------------------------------------------- ---------------------------- Total Non-Cash Charges 27 15 11 75 128 29 15 19 63 Other (G&G and Lease Rentals) 17 10 20 39 86 28 22 23 73 - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. Exploration Charges 44 25 31 114 214 57 37 42 136 =========================================================================================== ============================ Alaska Only 27 12 11 45 95 25 10 11 46 - ------------------------------------------------------------------------------------------- ---------------------------- Depreciation, Depletion & Amortization Producing operations ($ millions) Alaska 156 157 136 140 589 113 124 118 355 Lower 48 54 48 93 149 344 148 148 153 449 - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. 210 205 229 289 933 261 272 271 804 =========================================================================================== ============================ Page 6 of 13
ConocoPhillips INTERNATIONAL E&P 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------------ ---------------------------- International E&P Net Income (Loss) ($ Millions) (13) 59 154 393 593 434 560 421 1,415 =========================================================================================== ============================ Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 269 261 484 939 490 926 958 910 932 - ------------------------------------------------------------------------------------------- ---------------------------- Crude Oil and Condensate (MB/D) Consolidated Norway 118 119 156 233 157 226 214 207 215 United Kingdom 17 18 35 86 39 87 82 67 79 Canada 1 1 14 37 13 33 31 29 31 Nigeria 27 23 29 38 29 38 39 36 38 China 13 11 12 11 12 23 27 25 25 Indonesia - - 6 13 5 21 17 16 18 Other 4 4 20 55 21 55 52 48 52 Equity affiliates 5 4 44 87 35 55 117 120 97 - ------------------------------------------------------------------------------------------- ---------------------------- Total 185 180 316 560 311 538 579 548 555 =========================================================================================== ============================ Sales of crude oil produced (MB/D) 183 183 304 548 306 520 607 548 558 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids (MB/D) Norway 5 4 6 7 6 8 7 7 8 Canada - - 3 14 4 11 11 9 10 Other 4 4 4 4 4 4 5 2 4 - ------------------------------------------------------------------------------------------- ---------------------------- Total 9 8 13 25 14 23 23 18 22 =========================================================================================== ============================ Natural Gas (MMCF/D) Consolidated Norway 135 131 183 232 171 305 273 216 265 United Kingdom 173 189 349 975 424 1,002 952 853 935 Canada 19 22 172 442 165 436 424 448 436 Indonesia - - 68 220 72 224 246 275 248 Other 120 95 105 112 108 111 117 130 120 Equity affiliates - - 4 13 4 12 11 11 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 447 437 881 1,994 944 2,090 2,023 1,933 2,015 =========================================================================================== ============================ Canadian Syncrude (MB/D) - - 8 22 8 17 19 22 19 - ------------------------------------------------------------------------------------------- ---------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated Norway 21.04 24.49 27.19 26.35 25.21 32.72 26.28 29.08 29.29 United Kingdom 21.21 24.14 26.88 25.98 25.33 30.11 24.34 28.32 27.50 Canada 20.03 24.85 27.20 21.26 22.87 28.40 23.61 24.15 25.47 Nigeria 21.14 24.95 27.51 26.97 25.37 31.94 26.35 28.48 28.75 China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 26.38 27.16 Indonesia - - 24.89 30.59 28.10 29.35 24.54 26.32 26.95 Other 15.00 25.18 25.75 25.18 24.94 29.10 25.38 26.58 27.05 Equity affiliates 15.86 21.06 20.29 17.50 18.41 20.97 16.85 19.90 18.84 Total 20.71 24.51 26.01 24.60 24.36 30.17 23.90 26.15 26.57 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids ($/bbl) Norway 12.88 15.48 15.64 20.69 16.51 21.85 18.13 18.50 19.39 Canada - - 29.12 18.42 20.39 26.11 20.78 23.55 23.51 Other 12.58 13.29 13.74 20.51 15.29 23.40 16.73 14.18 15.37 Total 12.76 14.58 18.42 19.39 17.47 24.22 18.96 18.23 20.55 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas ($/mcf) Consolidated Norway 3.22 3.02 3.16 3.33 3.20 3.66 3.86 4.21 3.88 United Kingdom 3.18 2.55 2.22 3.20 2.92 3.55 3.17 2.88 3.22 Canada 2.23 2.21 2.32 3.37 3.03 5.42 4.34 4.17 4.64 Indonesia - - 4.18 4.11 4.12 4.66 4.16 4.35 4.38 Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.50 0.49 Equity affiliates - - 1.78 3.00 2.71 4.82 4.89 4.12 4.61 Total 2.41 2.20 2.37 3.20 2.79 3.92 3.48 3.38 3.60 - ------------------------------------------------------------------------------------------- ---------------------------- International Exploration Charges ($ Millions) Dry Holes 2 14 3 63 82 4 27 30 61 Lease Impairments 80 4 5 8 97 7 12 26 45 - ------------------------------------------------------------------------------------------- ---------------------------- Total Non-Cash Charges 82 18 8 71 179 11 39 56 106 Other (G&G and Lease Rentals) 37 24 46 92 199 48 66 34 148 - ------------------------------------------------------------------------------------------- ---------------------------- Total International Exploration Charges 119 42 54 163 378 59 105 90 254 =========================================================================================== ============================ Depreciation, Depletion & Amortization Producing operations ($ millions) 64 73 169 377 683 383 358 364 1,105 - ------------------------------------------------------------------------------------------- ---------------------------- Page 7 of 13
ConocoPhillips 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 57 105 143 264 321 485 1,070 =========================================================================================== ============================ United States ($ Millions) (92) 73 44 113 138 150 248 416 814 - ------------------------------------------------------------------------------------------- ---------------------------- International ($ Millions) 5 (5) 13 (8) 5 114 73 69 256 - ------------------------------------------------------------------------------------------- ---------------------------- Market Indicators U.S. East Coast Crack Spread ($/bbl) 2.90 2.86 3.06 4.58 3.35 6.16 3.46 6.37 5.33 U.S. Gulf Coast Crack Spread ($/bbl) 2.78 3.70 2.79 3.74 3.25 5.64 3.65 5.38 4.89 U.S. Group Central Spread ($/bbl) 3.88 5.07 5.16 5.69 4.95 6.12 6.96 8.32 7.14 U.S. West Coast Crack Spread ($/bbl) 9.67 9.53 8.58 8.40 9.04 12.79 11.39 14.00 12.73 NW Europe Crack Spread ($/bbl) 0.74 1.38 1.70 2.72 1.64 5.68 3.17 3.11 3.99 - ------------------------------------------------------------------------------------------- ---------------------------- Realized Margins Refining Margin ($/bbl) U.S. n/a n/a n/a 5.07 n/a 6.50 5.34 6.39 6.07 International n/a n/a n/a 2.98 n/a 5.63 3.98 3.98 4.54 - ------------------------------------------------------------------------------------------- ---------------------------- Marketing Margin ($/gal) U.S. n/a n/a n/a 0.04 n/a 0.04 0.06 0.05 0.05 International n/a n/a n/a 0.16 n/a 0.17 0.22 0.19 0.19 - ------------------------------------------------------------------------------------------- ---------------------------- Depreciation, Depletion & Amortization ($ Millions) 102 98 119 167 486 167 174 174 515 - ------------------------------------------------------------------------------------------- ---------------------------- Maintenance Turnaround Expense ($ Millions) 71 29 47 29 176 61 41 19 121 - ------------------------------------------------------------------------------------------- ---------------------------- Consolidated EASTERN U.S. Charge Barrels Input (MB/D) Crude Oil 348 404 338 399 372 415 435 428 426 Other Feed and Blending Stocks 53 47 16 61 44 51 53 40 48 - ------------------------------------------------------------------------------------------- ---------------------------- Total 401 451 354 460 416 466 488 468 474 =========================================================================================== ============================ Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 100% 99% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 214 247 187 260 227 244 249 243 245 Distillates 111 114 88 116 107 138 131 117 129 Aviation Fuel 35 37 37 37 36 32 29 37 33 Other 46 52 36 51 47 55 85 75 72 - ------------------------------------------------------------------------------------------- ---------------------------- Total 406 450 348 464 417 469 494 472 479 =========================================================================================== ============================ U.S. GULF COAST Charge Barrels Input (MB/D) Crude Oil 414 428 509 652 501 668 702 708 693 Other Feed and Blending Stocks 80 67 87 101 85 103 95 95 98 - ------------------------------------------------------------------------------------------- ---------------------------- Total 494 495 596 753 586 771 797 803 791 =========================================================================================== ============================ Percentage Utilization 90% 92% 93% 91% 92% 93% 98% 99% 97% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 213 211 236 300 240 289 277 288 284 Distillates 146 144 172 247 177 242 249 265 252 Aviation Fuel 37 39 52 62 48 70 63 71 68 Other 102 116 148 181 137 221 242 228 230 - ------------------------------------------------------------------------------------------- ---------------------------- Total 498 510 608 790 602 822 831 852 834 =========================================================================================== ============================ CENTRAL U.S. Charge Barrels Input (MB/D) Crude Oil 348 424 466 633 469 631 663 618 637 Other Feed and Blending Stocks 34 32 39 46 37 32 24 33 30 - ------------------------------------------------------------------------------------------- ---------------------------- Total 382 456 505 679 506 663 687 651 667 =========================================================================================== ============================ Percentage Utilization 84% 98% 90% 92% 91% 92% 96% 90% 93% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 200 235 269 389 274 367 375 367 370 Distillates 64 74 76 148 91 144 152 123 139 Aviation Fuel 50 49 58 64 55 59 57 64 60 Other 61 98 99 91 87 96 110 102 103 - ------------------------------------------------------------------------------------------- ---------------------------- Total 375 456 502 692 507 666 694 656 672 =========================================================================================== ============================ n/a = not available. Page 8 of 13
ConocoPhillips 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 306 320 330 320 319 294 328 329 317 Other Feed and Blending Stocks (3) 16 13 16 11 9 13 12 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 303 336 343 336 330 303 341 341 328 =========================================================================================== ============================ Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 99% 95% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 137 148 175 174 159 160 176 172 170 Distillates 71 77 78 81 77 66 83 86 79 Aviation Fuel 27 31 33 30 30 29 24 28 27 Other 61 60 51 48 55 42 55 56 50 - ------------------------------------------------------------------------------------------- ---------------------------- Total 296 316 337 333 321 297 338 342 326 =========================================================================================== ============================ TOTAL UNITED STATES Charge Barrels Input (MB/D) Crude Oil 1,416 1,576 1,643 2,004 1,661 2,008 2,128 2,083 2,073 Other Feed and Blending Stocks 164 162 155 224 177 195 185 180 187 - ------------------------------------------------------------------------------------------- ---------------------------- Total 1,580 1,738 1,798 2,228 1,838 2,203 2,313 2,263 2,260 =========================================================================================== ============================ Percentage Utilization 86% 95% 90% 93% 91% 93% 98% 96% 96% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 764 841 867 1,123 900 1,060 1,077 1,070 1,069 Distillates 392 409 414 592 452 590 615 591 599 Aviation Fuel 149 156 180 193 169 190 173 200 188 Other 270 326 334 371 326 414 492 461 455 - ------------------------------------------------------------------------------------------- ---------------------------- Total 1,575 1,732 1,795 2,279 1,847 2,254 2,357 2,322 2,311 =========================================================================================== ============================ UNITED KINGDOM and IRELAND Charge Barrels Input (MB/D) Crude Oil 65 67 126 177 109 262 244 258 255 Other Feed and Blending Stocks - - 15 30 11 39 42 38 39 - ------------------------------------------------------------------------------------------- ---------------------------- Total 65 67 141 207 120 301 286 296 294 =========================================================================================== ============================ Percentage Utilization 90% 92% 85% 58% 73% 86% 80% 84% 83% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 15 16 42 64 34 99 91 99 96 Distillates 26 26 56 76 46 125 118 128 124 Aviation Fuel - - 4 6 3 14 7 10 10 Other 21 21 32 77 38 54 59 45 53 - ------------------------------------------------------------------------------------------- ---------------------------- Total 62 63 134 223 121 292 275 282 283 =========================================================================================== ============================ Equity Affiliates - Net Share International* Charge Barrels Input (MB/D) Crude Oil - - 42 130 43 134 132 129 132 Other Feed and Blending Stocks - - 1 3 1 2 3 5 3 - ------------------------------------------------------------------------------------------- ---------------------------- Total - - 43 133 44 136 135 134 135 =========================================================================================== ============================ Percentage Utilization - - 95% 95% 95% 98% 97% 95% 97% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline - - 13 41 14 43 41 40 41 Distillates - - 18 58 19 58 59 57 58 Aviation Fuel - - 4 7 3 10 8 9 9 Other - - 9 19 7 33 24 25 28 - ------------------------------------------------------------------------------------------- ---------------------------- Total - - 44 125 43 144 132 131 136 =========================================================================================== ============================ * 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
ConocoPhillips R&M (continued) 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr 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 2,470 2,460 Other Feed and Blending Stocks 164 162 171 257 189 236 230 223 229 - ------------------------------------------------------------------------------------------- ---------------------------- Total 1,645 1,805 1,982 2,568 2,002 2,640 2,734 2,693 2,689 =========================================================================================== ============================ Percentage Utilization 86% 95% 90% 89% 90% 92% 96% 95% 94% - ------------------------------------------------------------------------------------------- ---------------------------- Refined Products Production (MB/D) Gasoline 779 857 922 1,228 948 1,202 1,209 1,209 1,206 Distillates 418 435 488 726 517 773 792 776 781 Aviation Fuel 149 156 188 206 175 214 188 219 207 Other 291 347 375 467 371 501 575 531 536 - ------------------------------------------------------------------------------------------- ---------------------------- Total 1,637 1,795 1,973 2,627 2,011 2,690 2,764 2,735 2,730 =========================================================================================== ============================ U.S. PETROLEUM PRODUCTS SALES (MB/D)* Gasoline 1,084 1,159 1,195 1,478 1,230 1,331 1,381 1,398 1,370 Distillates 439 424 449 692 502 600 590 580 590 Aviation Fuel 162 185 219 172 185 164 164 197 176 Other 398 341 350 403 372 509 493 497 499 - ------------------------------------------------------------------------------------------- ---------------------------- Total 2,083 2,109 2,213 2,745 2,289 2,604 2,628 2,672 2,635 =========================================================================================== ============================ *2002 amounts restated. INTERNATIONAL PETROLEUM PRODUCTS SALES (MB/D) Gasoline 12 12 78 163 67 202 190 181 191 Distillates 20 21 84 147 69 181 199 192 190 Aviation Fuel - - 2 6 2 5 7 14 9 Other 22 17 37 24 24 40 52 54 49 - ------------------------------------------------------------------------------------------- ---------------------------- Total 54 50 201 340 162 428 448 441 439 =========================================================================================== ============================ SPECIALTIES Base Oil Production(MB/D) United States - Equity Affiliate - - 3 10 3 10 7 11 9 - ------------------------------------------------------------------------------------------- ---------------------------- Petroleum Coke Sales (MMT)* United States Fuel coke 297 311 500 565 1,673 683 653 653 1,989 Specialty coke 56 57 196 292 601 276 282 253 811 - ------------------------------------------------------------------------------------------- ---------------------------- International Fuel coke - - 12 54 66 57 50 35 142 Specialty coke - - 68 180 248 176 180 171 527 - ------------------------------------------------------------------------------------------- ---------------------------- Finished Lubes Sales (MB/D)* United States 8 9 9 10 9 10 10 12 11 - ------------------------------------------------------------------------------------------- ---------------------------- International - - - 1 - 1 - 1 - - ------------------------------------------------------------------------------------------- ---------------------------- *Included in "Other" in the petroleum products sales statistics above. Page 10 of 13
ConocoPhillips MIDSTREAM 2002 2003 --------------------------------- -------------------------------- 1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD Qtr Qtr Qtr --------------------------------- -------------------------------- Midstream Net Income ($ Millions) 12 12 11 20 55 31 25 31 87 ======================================================================================================================== U.S. Equity Affiliate ($ Millions)* 5 7 6 5 23 13 23 18 54 - --------------------------------------------------------------------------------------- -------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States - - 19 56 19 51 53 50 51 International - - 15 45 15 47 35 47 44 Equity Affiliates United States* 117 119 119 119 119 114 110 111 111 International - - 3 10 3 10 11 12 11 - --------------------------------------------------------------------------------------- -------------------------------- Total 117 119 156 230 156 222 209 220 217 ======================================================================================= ================================ * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Natural Gas Liquids Fractionated (MB/D) United States 107 104 139 179 133 168 158 172 166 - --------------------------------------------------------------------------------------- -------------------------------- Product Prices Weighted Average NGL ($/bbl)* Consolidated - - 18.57 19.24 19.07 25.59 20.99 20.94 22.51 DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 20.67 21.91 - --------------------------------------------------------------------------------------- -------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. Depreciation, Depletion & Amortization ($ Millions) 1 - 5 13 19 14 14 13 41 - --------------------------------------------------------------------------------------- -------------------------------- EMERGING BUSINESSES 2002 2003 --------------------------------- -------------------------------- 1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD Qtr Qtr Qtr --------------------------------- -------------------------------- Emerging Businesses Net Income (Loss) ($ Millions)* (5) (3) (262) (40) (310) (34) (23) (18) (75) ======================================================================================================================== Detail of Net Income (Loss) ($ Millions) Technology Solutions (5) (3) (4) (4) (16) (5) (6) (5) (16) Gas-to-Liquids* - - (253) (20) (273) (20) (13) (7) (40) Power - - (1) (2) (3) 1 (1) (3) (3) Other - - (4) (14) (18) (10) (3) (3) (16) - --------------------------------------------------------------------------------------- -------------------------------- Total (5) (3) (262) (40) (310) (34) (23) (18) (75) ======================================================================================= ================================ * Third quarter 2002 results include a $246 million write down of acquired in- process R&D. CORPORATE AND OTHER 2002 2003 --------------------------------- -------------------------------- 1st 2nd 3rd Qtr4th Qtr YTD 1st Qtr2nd Qtr3rd Qtr4th YTD Qtr Qtr Qtr --------------------------------- -------------------------------- Corporate and Other Net Income (Loss) ($ Millions) (153) (72) (385)(1,308)(1,918) (289) (226) (166) (681) ======================================================================================================================== Detail of Net Income (Loss) ($ Millions) Net interest expense (78) (91) (83) (160) (412) (190) (145) (134) (469) Corporate overhead (47) (27) (32) (67) (173) (30) (43) (33) (106) Discontinued operations (4) 39 (42) (986) (993) 53 91 57 201 Merger-related costs (2) (1) (221) (83) (307) (27) (115) (41) (183) Accounting change - - - - - (117) - - (117) Other (22) 8 (7) (12) (33) 22 (14) (15) (7) - --------------------------------------------------------------------------------------- -------------------------------- Total (153) (72) (385)(1,308)(1,918) (289) (226) (166) (681) ======================================================================================= ================================ Before-Tax Net Interest Expense ($ Millions) Interest expense (158) (157) (193) (291) (799) (339) (306) (314) (959) Capitalized interest 51 51 59 72 233 73 78 98 249 Interest revenue 4 2 13 21 40 29 31 27 87 Premium on early debt retirement - (21) - (3) (24) (12) (11) - (23) - --------------------------------------------------------------------------------------- -------------------------------- (103) (125) (121) (201) (550) (249) (208) (189) (646) ======================================================================================= ================================ Debt Total Debt ($ Millions)* 8,902 9,635 20,453 19,766 19,766 21,015 20,262 18,887 18,887 Debt-to-Capital Ratio* 37.6% 39.4% 39.8% 39.3% 39.3% 40.1% 38.3% 36.0% 36.0% - --------------------------------------------------------------------------------------- -------------------------------- * 2003 amounts reflect the January 1, 2003, adoption of FIN 46. Page 11 of 13
ConocoPhillips SELECTED PRO FORMA STATISTICS (E&P) 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr 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 1,556 1,604 - ------------------------------------------------------------------------------------------- ---------------------------- Crude Oil and Condensate (MB/D) Consolidated U.S. 424 406 370 381 395 397 388 365 383 Norway 200 208 219 233 215 226 214 207 215 United Kingdom 81 78 63 86 77 87 82 67 79 Canada 46 45 42 37 42 33 31 29 31 Nigeria 40 34 35 38 37 38 39 36 38 China 13 11 12 11 12 23 27 25 25 Indonesia 26 23 22 13 21 21 17 16 18 Other 52 50 48 55 51 55 52 48 52 Equity affiliates 91 84 104 87 92 55 117 120 97 - ------------------------------------------------------------------------------------------- ---------------------------- Total 973 939 915 941 942 935 967 913 938 =========================================================================================== ============================ Natural Gas Liquids (MB/D) U.S. 48 46 42 45 45 44 44 39 42 International 24 22 24 25 24 23 23 18 22 - ------------------------------------------------------------------------------------------- ---------------------------- Total 72 68 66 70 69 67 67 57 64 =========================================================================================== ============================ Natural Gas (MMCF/D) Consolidated U.S. 1,635 1,566 1,578 1,548 1,581 1,527 1,473 1,451 1,483 Norway 291 290 252 232 266 305 273 216 265 United Kingdom 869 856 603 975 826 1,002 952 853 935 Canada 548 565 512 442 517 436 424 448 436 Indonesia 179 169 189 220 189 224 246 275 248 Other 120 95 105 112 108 111 117 130 120 Equity affiliates 12 13 13 13 13 12 11 11 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 3,654 3,554 3,252 3,542 3,500 3,617 3,496 3,384 3,498 =========================================================================================== ============================ Canadian Syncrude (MB/D) 22 20 23 22 22 17 19 22 19 - ------------------------------------------------------------------------------------------- ---------------------------- E&P Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated U.S. 18.66 24.33 25.85 26.36 23.69 31.47 27.21 28.26 28.99 Norway 20.77 24.42 26.78 26.35 24.61 32.72 26.28 29.08 29.29 United Kingdom 19.78 23.69 26.15 25.98 23.99 30.11 24.34 28.32 27.50 Canada 19.39 21.79 24.96 21.26 21.82 28.40 23.61 24.15 25.47 Nigeria 21.33 25.16 27.40 26.97 25.12 31.94 26.35 28.48 28.75 China 19.57 25.27 26.31 29.64 25.03 28.87 26.51 26.38 27.16 Indonesia 19.38 24.46 24.21 30.59 23.51 29.35 24.54 26.32 26.95 Other 19.39 24.66 25.55 25.18 23.58 29.10 25.38 26.58 27.05 Equity affiliates 13.40 18.26 19.06 17.50 17.14 20.97 16.85 19.90 18.84 Total 18.93 23.71 25.24 25.31 23.26 30.73 25.19 27.00 27.55 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas Liquids ($/bbl) U.S. 12.92 17.05 16.78 19.27 16.44 25.13 19.33 20.87 21.74 International 9.86 15.62 18.56 19.39 15.95 24.22 18.96 18.23 20.55 Total 11.67 16.49 17.57 19.32 16.24 24.73 19.17 19.72 21.22 - ------------------------------------------------------------------------------------------- ---------------------------- Natural Gas ($/mcf) Consolidated U.S. 2.26 2.80 2.71 3.38 2.78 5.34 4.58 4.41 4.78 Norway 3.20 2.99 3.26 3.33 3.19 3.66 3.86 4.21 3.88 United Kingdom 3.43 2.37 1.95 3.20 2.81 3.55 3.17 2.88 3.22 Canada 1.74 2.50 2.13 3.37 2.40 5.42 4.34 4.17 4.64 Indonesia 3.16 4.13 4.13 4.11 3.89 4.66 4.16 4.35 4.38 Other 0.41 0.39 0.41 0.45 0.42 0.48 0.48 0.50 0.49 Equity affiliates 2.17 2.60 1.78 3.00 2.39 4.82 4.89 4.12 4.61 Total 2.53 2.66 2.52 3.27 2.75 4.49 3.93 3.80 4.08 - ------------------------------------------------------------------------------------------- ---------------------------- Note: Pro forma information derived by summing the historical Phillips and Conoco data for the period indicated. Page 12 of 13
ConocoPhillips SELECTED PRO FORMA STATISTICS (Midstream and R&M) 2002 2003 ------------------------------ ---------------------------- 1st 2nd 3rd 4th YTD 1st 2nd 3rd 4th YTD Qtr Qtr Qtr Qtr Qtr Qtr Qtr Qtr ------------------------------ ---------------------------- Midstream Natural Gas Liquids Extracted (MB/D) Consolidated United States 49 52 50 56 52 51 53 50 51 International 42 42 46 45 44 47 35 47 44 Equity Affiliates United States* 117 119 119 119 119 114 110 111 111 International 9 9 9 10 9 10 11 12 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 217 222 224 230 223 222 209 220 217 =========================================================================================== ============================ * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Natural Gas Liquids Fractionated (MB/D) United States 166 159 177 179 170 168 158 172 166 - ------------------------------------------------------------------------------------------- ---------------------------- Product Prices Weighted Average NGL ($/bbl)* Consolidated 13.23 15.99 16.69 19.24 16.31 25.59 20.99 20.94 22.51 DEFS 12.83 15.59 16.32 18.95 15.92 24.53 20.53 20.67 21.91 - ------------------------------------------------------------------------------------------- ---------------------------- * 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 348 404 338 399 372 415 435 428 426 Other Feed and Blending Stocks 53 47 16 61 44 51 53 40 48 - ------------------------------------------------------------------------------------------- ---------------------------- Total 401 451 354 460 416 466 488 468 474 =========================================================================================== ============================ Percentage Utilization 81% 94% 79% 93% 87% 97% 101% 100% 99% - ------------------------------------------------------------------------------------------- ---------------------------- U.S. Gulf Coast Crude Oil 648 669 675 652 661 668 702 708 693 Other Feed and Blending Stocks 116 96 90 101 101 103 95 95 98 - ------------------------------------------------------------------------------------------- ---------------------------- Total 764 765 765 753 762 771 797 803 791 =========================================================================================== ============================ Percentage Utilization 91% 94% 94% 91% 93% 93% 98% 99% 97% - ------------------------------------------------------------------------------------------- ---------------------------- Central U.S. Crude Oil 568 664 624 633 622 631 663 618 637 Other Feed and Blending Stocks 25 23 22 46 29 32 24 33 30 - ------------------------------------------------------------------------------------------- ---------------------------- Total 593 687 646 679 651 663 687 651 667 =========================================================================================== ============================ Percentage Utilization 85% 96% 91% 92% 91% 92% 96% 90% 93% - ------------------------------------------------------------------------------------------- ---------------------------- Western U.S. Crude Oil 306 320 330 320 319 294 328 329 317 Other Feed and Blending Stocks (3) 16 13 16 11 9 13 12 11 - ------------------------------------------------------------------------------------------- ---------------------------- Total 303 336 343 336 330 303 341 341 328 =========================================================================================== ============================ Percentage Utilization 92% 96% 99% 96% 96% 88% 99% 99% 95% - ------------------------------------------------------------------------------------------- ---------------------------- Total U.S. Crude Oil 1,870 2,057 1,967 2,004 1,975 2,008 2,128 2,083 2,073 Other Feed and Blending Stocks 191 182 141 224 184 195 185 180 187 - ------------------------------------------------------------------------------------------- ---------------------------- Total 2,061 2,239 2,108 2,228 2,159 2,203 2,313 2,263 2,260 =========================================================================================== ============================ Percentage Utilization 87% 95% 91% 93% 92% 93% 98% 96% 96% - ------------------------------------------------------------------------------------------- ---------------------------- United Kingdom and Ireland Crude Oil 279 260 273 177 247 262 244 258 255 Other Feed and Blending Stocks 18 27 43 30 30 39 42 38 39 - ------------------------------------------------------------------------------------------- ---------------------------- Total 297 287 316 207 277 301 286 296 294 =========================================================================================== ============================ Percentage Utilization 92% 86% 90% 58% 81% 86% 80% 84% 83% - ------------------------------------------------------------------------------------------- ---------------------------- Equity Affiliates -- Net Share -- International* Crude Oil 119 127 127 130 126 134 132 129 132 Other Feed and Blending Stocks 4 6 4 3 4 2 3 5 3 - ------------------------------------------------------------------------------------------- ---------------------------- Total 123 133 131 133 130 136 135 134 135 =========================================================================================== ============================ Percentage Utilization 88% 93% 93% 94% 92% 98% 97% 95% 97% - ------------------------------------------------------------------------------------------- ---------------------------- * 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 2,470 2,460 Other Feed and Blending Stocks 213 215 188 257 218 236 230 223 229 - ------------------------------------------------------------------------------------------- ---------------------------- Total 2,481 2,659 2,555 2,568 2,566 2,640 2,734 2,693 2,689 =========================================================================================== ============================ Percentage Utilization 88% 94% 91% 89% 90% 92% 96% 95% 94% - ------------------------------------------------------------------------------------------- ---------------------------- U.S. Petroleum Products Sales (MB/D) Gasoline 1,375 1,461 1,417 1,478 1,433 1,331 1,381 1,398 1,370 Distillates 653 650 602 692 649 600 590 580 590 Aviation Fuel 231 259 268 172 232 164 164 197 176 Other 524 479 456 403 465 509 493 497 499 - ------------------------------------------------------------------------------------------- ---------------------------- Total 2,783 2,849 2,743 2,745 2,780 2,604 2,628 2,672 2,635 =========================================================================================== ============================ 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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