EX-99 4 a4559656ex992.txt EXHIBIT 99.2 Exhibit 99.2 Preliminary FINANCIAL HIGHLIGHTS Millions of Dollars Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 Revenues Sales and other operating revenues* $25,830 23,346 104,196 56,748 Equity in earnings of affiliates 151 123 542 261 Other income (19) 56 359 192 --------- ---------- --------- ---------- 25,962 23,525 105,097 57,201 --------- ---------- --------- ---------- Costs and expenses Purchased crude oil and products 16,577 15,126 67,424 37,823 Production and operating expenses 1,946 1,696 7,208 4,698 Selling, general and administrative expenses 565 684 2,166 1,950 Exploration expenses 211 277 601 592 Depreciation, depletion and amortization 911 884 3,485 2,223 Property impairments 60 151 252 177 Taxes other than income taxes* 3,826 3,313 14,679 6,937 Accretion on discounted liabilities 38 5 145 22 Interest and debt expense 197 219 844 566 Foreign currency transaction (gains)/losses (50) 35 (36) 24 Minority interests and preferred dividend requirements of capital trusts 4 14 20 48 --------- ---------- --------- ---------- 24,285 22,404 96,788 55,060 --------- ---------- --------- ---------- Income from continuing operations before income taxes and subsidiary equity transactions 1,677 1,121 8,309 2,141 Gain on subsidiary equity transactions - - 28 - --------- ---------- --------- ---------- Income from continuing operations before income taxes 1,677 1,121 8,337 2,141 Provision for income taxes 692 563 3,744 1,443 --------- ---------- --------- ---------- Income from continuing operations 985 558 4,593 698 Income (loss) from discontinued operations before cumulative effect of changes in accounting principles 36 (986) 237 (993) --------- ---------- --------- ---------- Income (loss) before cumulative effect of changes in accounting principles 1,021 (428) 4,830 (295) Cumulative effect of changes in accounting principles - - (95) - --------- ---------- --------- ---------- Net income (Loss) $1,021 (428) 4,735 (295) ========= ========== ========= ========== Income (loss) per share of common stock Basic Continuing operations $1.45 0.82 6.75 1.45 Discontinued operations 0.05 (1.45) 0.35 (2.06) Before cumulative effect of changes in accounting principles 1.50 (0.63) 7.10 (0.61) Cumulative effect of changes in accounting principles - - (0.14) - Net income (loss) $1.50 (0.63) 6.96 (0.61) Diluted Continuing operations $1.43 0.82 6.70 1.44 Discontinued operations 0.05 (1.45) 0.35 (2.05) Before cumulative effect of changes in accounting principles 1.48 (0.63) 7.05 (0.61) Cumulative effect of changes in accounting principles - - (0.14) - Net income (loss) $1.48 (0.63) 6.91 (0.61) Average common shares outstanding (in thousands) Basic 681,681 678,431 680,490 482,082 Diluted 688,516 681,525 685,195 485,505 *Includes excise taxes on petroleum products sales: $3,590 3,093 13,705 6,236
Preliminary SELECTED FINANCIAL DATA Millions of Dollars Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS BEFORE ACCOUNTING CHANGE E&P United States $491 415 2,232 1,156 International 500 393 1,928 593 ---------- ----------- ---------- ----------- Total E&P 991 808 4,160 1,749 ---------- ----------- ---------- ----------- Midstream 43 20 130 55 ---------- ----------- ---------- ----------- R&M United States 176 113 1,115 138 International 26 (8) 282 5 ---------- ----------- ---------- ----------- Total R&M 202 105 1,397 143 ---------- ----------- ---------- ----------- Chemicals 11 (13) 7 (14) Emerging Businesses (24) (40) (99) (310) Corporate and other (238) (322) (1,002) (925) ---------- ----------- ---------- ----------- Consolidated $985 558 4,593 698 ========== =========== ========== =========== CUMULATIVE EFFECT OF ACCOUNTING CHANGES E&P United States $- - 142 - International - - - - ---------- ----------- ---------- ----------- Total E&P - - 142 - ---------- ----------- ---------- ----------- Midstream - - - - ---------- ----------- ---------- ----------- R&M United States - - (125) - International - - - - ---------- ----------- ---------- ----------- Total R&M - - (125) - ---------- ----------- ---------- ----------- Chemicals - - - - Emerging Businesses - - - Corporate and other - - (112) - ---------- ----------- ---------- ----------- Consolidated $- - (95) - ========== =========== ========== =========== INCOME (LOSS) FROM DISCONTINUED OPERATIONS Corporate and other 36 (986) 237 (993) SUMMARY OF NET INCOME/(LOSS) E&P United States $491 415 2,374 1,156 International 500 393 1,928 593 ---------- ----------- ---------- ----------- Total E&P 991 808 4,302 1,749 ---------- ----------- ---------- ----------- Midstream 43 20 130 55 ---------- ----------- ---------- ----------- R&M United States 176 113 990 138 International 26 (8) 282 5 ---------- ----------- ---------- ----------- Total R&M 202 105 1,272 143 ---------- ----------- ---------- ----------- Chemicals 11 (13) 7 (14) Emerging Businesses (24) (40) (99) (310) Corporate and other (202) (1,308) (877) (1,918) ---------- ----------- ---------- ----------- Net income/(loss) $1,021 (428) 4,735 (295) ========== =========== ========== ===========
Preliminary SELECTED FINANCIAL DATA Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 INCOME/(LOSS) FROM CONTINUING OPERATIONS Effective tax rate % 41.3 % 50.2 44.9 67.4 Millions of Dollars FOREIGN CURRENCY GAINS/(LOSSES) AFTER-TAX E&P $(22) (23) (50) (34) Midstream - - - - R&M 14 1 18 9 Chemicals - - - - Emerging Businesses - - (1) - Corporate and other 46 8 67 21 ---------- ---------- ---------- ---------- $38 (14) 34 (4) ========== ========== ========== ========== CASH FLOWS FROM OPERATING ACTIVITIES Income (loss) from continuing operations $985 558 4,593 698 Depreciation, depletion and amortization 911 884 3,485 2,223 Property impairments 60 151 252 177 Dry hole costs and leasehold impairment 131 146 300 307 Accretion on discounted liabilities 38 5 145 22 In-process research and development - - - 246 Deferred taxes 84 97 417 142 Undistributed equity earnings 132 46 (59) 18 Net (gain)/loss on asset dispositions 15 (15) (211) (7) Other (264) (109) (390) (32) Working capital changes (79) 146 624 982 ---------- ---------- ---------- ---------- Net cash provided by continuing operations 2,013 1,909 9,156 4,776 Net cash provided by discontinued operations 8 84 189 202 ---------- ---------- ---------- ---------- Net cash provided by operating activities $2,021 1,993 9,345 4,978 ========== ========== ========== ========== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $358 449 1,418 1,204 International 851 894 3,079 2,072 ---------- ---------- ---------- ---------- 1,209 1,343 4,497 3,276 Midstream 4 3 10 5 R&M 429 415 1,179 840 Chemicals - 31 - 60 Emerging Businesses 60 87 284 122 Corporate and other* 71 30 188 85 ---------- ---------- ---------- ---------- $1,773 1,909 6,158 4,388 ========== ========== ========== ========== *Excludes discontinued operations OTHER At December 31, 2003 At December 31, 2002 Total debt $17,780 19,766 Common stockholders' equity $34,366 29,517
Preliminary OPERATING HIGHLIGHTS BY SEGMENT Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 Thousands of Barrels Daily E&P Crude oil produced United States Alaska 318 323 325 331 Lower 48 50 58 54 40 ----------- ----------- ----------- ---------- 368 381 379 371 Norway 205 233 213 157 United Kingdom 72 86 77 39 Canada 28 37 30 13 Nigeria 35 38 37 29 China 28 11 26 12 Indonesia 10 13 16 5 Other 60 55 54 21 ----------- ----------- ----------- ---------- Total consolidated 806 854 832 647 Equity affiliates 116 87 102 35 ----------- ----------- ----------- ---------- Total Worldwide 922 941 934 682 =========== =========== =========== ========== Syncrude 18 22 19 8 =========== =========== =========== ========== Natural gas liquids produced United States Alaska* 24 24 23 24 Lower 48 27 21 25 8 ----------- ----------- ----------- ---------- 51 45 48 32 Norway 8 7 7 6 Canada 10 14 10 4 Other 3 4 4 4 ----------- ----------- ----------- ---------- Total Worldwide 72 70 69 46 =========== =========== =========== ========== *Includes reinjected volumes sold lease-to-lease: 16 15 15 14 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 205 186 184 175 Lower 48 1,264 1,362 1,295 928 ----------- ----------- ----------- ---------- 1,469 1,548 1,479 1,103 Norway 307 232 275 171 United Kingdom 954 975 940 424 Canada 431 442 435 165 Indonesia 275 220 255 72 Other 145 112 126 108 ----------- ----------- ----------- ---------- Total consolidated 3,581 3,529 3,510 2,043 Equity affiliates 12 13 12 4 ----------- ----------- ----------- ---------- Total Worldwide 3,593 3,542 3,522 2,047 =========== =========== =========== ========== *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 140 128 121 122
Preliminary OPERATING HIGHLIGHTS Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 E&P (continued) Per Unit Average sales prices Crude oil (per barrel) United States Alaska $28.51 26.43 28.87 23.75 Lower 48 28.02 26.00 28.76 24.48 Total U.S. 28.45 26.36 28.85 23.83 International 28.42 25.93 28.27 25.14 Total consolidated 28.43 26.12 28.54 24.38 Equity affiliates 17.86 17.50 18.58 18.41 Total Worldwide 27.24 25.31 27.47 24.07 Natural gas--lease (per MCF) United States Alaska 1.88 1.95 1.76 1.85 Lower 48 4.27 3.43 4.76 2.79 Total U.S. 4.13 3.38 4.62 2.75 International 4.03 3.20 3.71 2.79 Total consolidated 4.07 3.27 4.07 2.77 Equity affiliates 3.96 3.00 4.44 2.71 Total Worldwide 4.07 3.27 4.07 2.77 Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 54 56 52 19 International 50 45 45 15 Equity affiliates United States* 110 119 111 119 International 11 10 11 3 ---------- ----------- ---------- ----------- 225 230 219 156 ========== =========== ========== =========== *Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Per Barrel U.S. product prices Weighted average NGL** Consolidated $23.14 19.24 22.67 19.07 DEFS 22.76 18.95 22.12 15.92 **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.
Preliminary OPERATING HIGHLIGHTS Three Months Ended Twelve Months Ended December 31 December 31 2003 2002 2003 2002 Thousands of Barrels Daily R&M United States Crude oil capacity 2,168 2,166 2,168 1,829 Crude oil runs 2,074 2,004 2,074 1,661 Refinery production 2,270 2,279 2,301 1,847 International* Crude oil capacity 442 440 442 195 Crude oil runs 381 307 385 152 Refinery production 395 348 412 164 U.S. Petroleum products outside sales Automotive gasoline 1,365 1,478 1,369 1,230 Distillates 530 692 575 502 Aviation fuels 193 172 180 185 Other products 474 403 492 372 ---------- ----------- ---------- -------------------- 2,562 2,745 2,616 2,289 International 403 340 430 162 ---------- ----------- ---------- -------------------- 2,965 3,085 3,046 2,451 ========== =========== ========== ==================== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $1.00 0.92 1.05 0.96 Automotive gasoline-retail 1.25 1.02 1.35 1.03 Distillates-wholesale 0.92 0.86 0.92 0.77 *Includes ConocoPhillips' share of equity affiliates. **Excludes excise taxes.