-----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, AGNaM0N9LK5WeFuL7jrZJTsy7f2GhkcNjSJBYYOlQKwriSyQzh4Gh8jHfs9vnlqs 91vcJcW8nAhdVzSN2Cc2Iw== 0001157523-05-006575.txt : 20050727 0001157523-05-006575.hdr.sgml : 20050727 20050727100928 ACCESSION NUMBER: 0001157523-05-006575 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20050727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20050727 DATE AS OF CHANGE: 20050727 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: 001-32395 FILM NUMBER: 05975808 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 a4939009.txt CONOCOPHILLIPS 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): July 27, 2005 ConocoPhillips (Exact name of registrant as specified in its charter) Delaware 001-32395 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 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On July 27, 2005, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2005. 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 hereto and incorporated herein by reference. Item 9.01 Financial Statements and Exhibits (c) Exhibits 99.1 -- Press release issued by ConocoPhillips on July 27, 2005. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. 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 July 27, 2005 3 EXHIBIT INDEX Exhibit No. Description 99.1 Press release issued by ConocoPhillips on July 27, 2005. 99.2 Financial and operational tables. 99.3 Supplemental financial information. 4 EX-99.1 2 a4939009ex991.txt EXHIBIT 99.1 Exhibit 99.1 ConocoPhillips Reports Second Quarter Net Income of $3.1 Billion HOUSTON--(BUSINESS WIRE)--July 27, 2005--ConocoPhillips (NYSE:COP) Earnings at a glance Second Quarter Six Months - ---------------------------------------------------------------------- 2005 2004 2005 2004 - ---------------------------------------------------------------------- Income from continuing operations $3,131 million 2,013 million $6,054 million 3,616 million Income from discontinued opera- tions $ 7 62 $ (4) 75 Net income $3,138 2,075 $6,050 3,691 - ---------------------------------------------------------------------- Diluted income per share Income from continuing opera- tions(a) $2.21 1.44 $4.26 2.60 Net income(a) $2.21 1.48 $4.26 2.65 - ---------------------------------------------------------------------- Revenues $42.6 billion 31.9 billion $81.5 billion 62.1 billion - ---------------------------------------------------------------------- (a) Per-share amounts in all periods reflect the impact of a 2-for-1 stock split on June 1, 2005. ConocoPhillips (NYSE:COP) today reported second-quarter net income of $3,138 million, or $2.21 per share, compared with $2,075 million, or $1.48 per share, for the same quarter in 2004. Total revenues were $42.6 billion, versus $31.9 billion a year ago. Income from continuing operations for the second quarter was $3,131 million, or $2.21 per share, compared with $2,013 million, or $1.44 per share, for the same period a year ago. "We had a strong quarter," said Jim Mulva, chairman and chief executive officer. "Upstream, we ran as expected. The total company produced 1.76 million BOE per day, including 1.54 million BOE per day from our Exploration and Production segment and an estimated 0.22 million BOE per day from our LUKOIL Investment segment. At the same time, we completed planned and unplanned maintenance in our E&P business and finalized the formation of the Naryanmarneftegaz joint venture to develop resources in the Timan-Pechora region of Russia. "Downstream benefited from a strong market environment in refining, partially offset by narrowing light-heavy differentials. Worldwide crude oil capacity utilization was at 97 percent, as expected, with our U.S. refining system running near stated capacity. In addition, worldwide marketing margins improved over the previous quarter. "Our financial position continues to improve, and our return on capital employed remains strong and competitive. We ended the quarter with a debt-to-capital ratio of 22 percent. During the quarter, we generated $2.8 billion in cash from operations, invested $3.1 billion in capital projects and investments, paid $432 million in dividends and repurchased $382 million of ConocoPhillips common stock. In addition, the previously announced 24 percent dividend increase and 2-for-1 stock split occurred during the second quarter." For the first six months of 2005, net income was $6,050 million, or $4.26 per share, versus $3,691 million, or $2.65 per share, for 2004. Income from continuing operations was $6,054 million, or $4.26 per share, compared with $3,616 million, or $2.60 per share, for the same period a year ago. Total revenues were $81.5 billion, versus $62.1 billion a year ago. The results for ConocoPhillips' business segments follow. Exploration & Production (E&P) Second-quarter financial results: E&P income from continuing operations was $1,929 million, up from $1,787 million in the first quarter of 2005 and up from $1,354 million in the second quarter of 2004. The increase from the first quarter was primarily the result of higher realized prices, partially offset by lower volumes and lower gains on asset sales. In addition, second-quarter results benefited from lower exploration expenses. Improved results from the second quarter of 2004 were due primarily to higher realized crude oil and natural gas prices, partially offset by benefits last year from Canadian tax law changes, higher production taxes in a higher price environment and reduced foreign exchange gains. As expected, ConocoPhillips' E&P daily production, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 1.54 million barrels of oil equivalent (BOE) per day, down from 1.60 million BOE per day for the first quarter and down slightly from 1.56 million BOE per day in the second quarter of 2004. Compared with the previous quarter, the company experienced greater output during the second quarter of 2005 from the Lower 48, Canada and Venezuela. These increases were more than offset by approximately 45,000 BOE per day of planned downtime, primarily in the Timor Sea, Alaska and Norway, as well as approximately 25,000 BOE per day of unscheduled downtime in Norway, Alaska and the United Kingdom. The decrease from the second quarter of 2004 was due primarily to lower production in the North Sea and Alaska partially offset by increased production in Venezuela, the Timor Sea and the Lower 48. During the quarter, ConocoPhillips completed the acquisition of a 30 percent interest in the Naryanmarneftegaz joint venture to develop resources in the Timan-Pechora region of Russia. The amount incurred to complete the transaction was approximately $512 million. Six months financial results: E&P income from continuing operations for the first six months of 2005 was $3,716 million, up from $2,611 million in 2004, primarily due to higher realized crude oil and natural gas prices, partially offset by higher depreciation, depletion and amortization, higher production taxes and last year's benefits from tax law changes. Midstream Second-quarter financial results: Midstream income from continuing operations was $68 million, down from $385 million in the first quarter of 2005 and up from $42 million in the second quarter of 2004. The decrease from the previous quarter was primarily the result of the first-quarter net benefit to ConocoPhillips associated with a restructuring of its ownership in Duke Energy Field Services, LLC (DEFS), including DEFS' sale of its interest in TEPPCO. The increase over the second quarter of 2004 was due primarily to higher natural gas liquids prices in both DEFS and the company's consolidated operations. Six months financial results: Midstream income from continuing operations for the first six months of 2005 increased to $453 million, from $97 million in 2004. The increase was due primarily to higher equity earnings from DEFS, which included the first-quarter benefit to ConocoPhillips associated with the restructuring of its ownership in DEFS. In addition, natural gas liquids prices in both DEFS and the company's consolidated operations were higher in the first six months of 2005, compared with the first six months of 2004. Refining and Marketing (R&M) Second-quarter financial results: R&M income from continuing operations was $1,110 million, up from $700 million in the previous quarter and $818 million in the second quarter of 2004. The increase in second-quarter 2005 R&M earnings over the previous quarter was primarily the result of higher U.S. refining market cracks driven by higher gasoline and distillate demand, as well as increased throughput. Although light-heavy crude differentials remain strong, they decreased from high first-quarter levels. Worldwide marketing margins and sales volumes also improved over the previous quarter. The improved results from the second quarter of 2004 were due primarily to increased worldwide refining margins and volumes, and increased U.S. marketing margins, partially offset by higher turnaround and utility costs. Domestically, second-quarter 2005 realized refining margins improved 11 percent over the first quarter, while the refineries ran at 98 percent of crude oil capacity. Successful completion of first-quarter turnaround activity benefited second-quarter throughputs while unplanned downtime remained flat quarter-over-quarter. Turnaround costs were 39 percent lower in the second quarter, compared with the previous quarter. Marketing margins and volumes also increased from the previous quarter primarily due to a return to positive margins on the West Coast during the early part of the second quarter. Internationally, second-quarter 2005 marketing margins and sales volumes improved over the previous quarter. While northwest Europe refining market cracks were higher, the turnaround activity at the Humber refinery during the second quarter did not allow the company to fully benefit from the favorable market. As a result, international crude oil capacity utilization was down 6 percent to 94 percent. Overall, R&M's refinery crude oil capacity utilization rate averaged 97 percent, compared with 92 percent in the previous quarter and 93 percent in the second quarter of 2004. Before-tax turnaround costs were $106 million, versus $108 million in the first quarter of 2005. Six months financial results: R&M income from continuing operations for the first six months of 2005 increased to $1,810 million, compared with $1,282 million in the first half of 2004. The increased earnings were driven by higher worldwide refining margins, partially offset by higher turnaround activity and utility costs. LUKOIL Investment Second-quarter financial results: Income from continuing operations in the second quarter of 2005 was $148 million, up from $110 million in the prior quarter. This represents ConocoPhillips' estimate of the company's 11.9 percent weighted average equity share of LUKOIL's income for the second quarter based on market indicators and historical production trends for LUKOIL. The increase from the prior quarter was attributable to higher realized price estimates and an increased equity ownership position. At the end of the second quarter of 2005, the company's equity ownership in LUKOIL was 12.6 percent. ConocoPhillips' share of estimated BOE production was 223,000 per day and its share of estimated daily refining crude oil throughput was 102,000 barrels per day. Chemicals Second-quarter financial results: The Chemicals segment, which includes the company's 50 percent interest in Chevron Phillips Chemical Company LLC (CPChem), reported income from continuing operations of $63 million, compared with $133 million in the first quarter of 2005 and $46 million in the second quarter of 2004. The decrease from the first quarter was largely due to lower margins from olefins and polyolefins, as well as lower margins and volumes from aromatics and styrenics. In addition, second-quarter results were impacted by higher utility costs due to higher natural gas prices. The increase from the second quarter of 2004 reflects higher margins from olefins and polyolefins, partially offset by lower margins and volumes from aromatics and styrenics, as well as higher utility costs. Six months financial results: During the first six months of 2005, the Chemicals segment had income from continuing operations of $196 million, compared with $85 million for the same period a year ago. The improvement was due primarily to higher margins in olefins and polyolefins. Emerging Businesses The Emerging Businesses segment incurred a loss from continuing operations of $8 million in the second quarter of 2005, compared with losses of $8 million in the first quarter of 2005 and $29 million in the second quarter of 2004. Improved international and domestic power operations and the timing of certain expenses contributed to the reduced operating losses compared with the second quarter of 2004. Corporate and Other Second-quarter after-tax Corporate expenses from continuing operations were $179 million, compared with $184 million in the previous quarter and $218 million in the second quarter of 2004. The improvement from the first quarter was driven primarily by lower net interest charges and lower benefit-related charges, partially offset by reduced foreign exchange gains. The decrease in second-quarter net interest charges was due primarily to lower average debt levels and an early debt retirement premium paid during the first quarter. The improvement from the second quarter of 2004 was primarily the result of reduced net interest expense, partially offset by foreign exchange losses. Total debt at the end of the second quarter was $14.0 billion, unchanged from the previous quarter and $1.0 billion below year-end 2004. At the end of the second quarter, the company's debt-to-capital ratio was 22 percent, down from 23 percent at the end of the first quarter. The company's tax provision for the second quarter of 2005 was $2.3 billion, resulting in an effective tax rate of 42 percent. This is compared with 41 percent in the previous quarter and 42 percent in the second quarter of 2004. Discontinued Operations Second-quarter financial results: Second-quarter 2005 earnings from discontinued operations were $7 million, compared with an $11 million loss in the first quarter and income of $62 million in the second quarter of 2004. The improvement from the first quarter is related primarily to higher margins and the impacts of asset sales. The decrease from the second quarter of 2004 is related primarily to the impacts of asset sales. Six months financial results: During the first six months of 2005, discontinued operations had a loss of $4 million, compared with income of $75 million for the same period a year ago. The decrease is attributable primarily to the impacts of asset sales. Outlook Mr. Mulva concluded: "Our operating performance, combined with above-average crude oil and natural gas prices and strong refining margins, contributed to strong earnings and cash flows. "The company continues to grow its asset base through disciplined capital spending. Compared with our peers, we are redeploying a higher proportion of our cash flows into projects. These investments are made possible due to our portfolio of attractive investment opportunities. Some of these projects are in emerging areas that have high reserve potential and the possibility to provide long-term value accretion for our shareholders. One such example is the completion of our E&P joint venture with LUKOIL in the Timan-Pechora region late in the second quarter. "We expect stronger oil and gas production in the second half of 2005, with full-year production to be approximately 3 percent higher than that of 2004, excluding the impacts of LUKOIL. "As announced earlier this month, we increased our ownership in DEFS from 30.3 percent to 50 percent. This increase in our strategic interest emphasizes our commitment, along with Duke Energy, to make DEFS the industry's top performing U.S. midstream gas company. "With respect to downstream, we expect a strong margin environment and continued high utilization rates in the near term. Our focus is on continuous improvement and execution of our five-year, $2 billion clean fuels program. In addition, the five-year, $3 billion incremental refining investment program that we announced in the first quarter will result in expanded capacity, stronger processing flexibility and higher clean product yields throughout our domestic and international refining network." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 36,100 employees, $97 billion of assets, and $163 billion of annualized revenues as of June 30, 2005. For more information, go to www.conocophillips.com. ConocoPhillips' quarterly conference call is scheduled for 10:00 a.m. Central today. To listen to the conference call and to view related presentation materials, go to www.conocophillips.com and click on the "Second-Quarter Earnings" link. For financial and operational tables, go to www.conocophillips.com/news/nr/earnings/highlights/2q05earnings.html For detailed supplemental information, go to www.conocophillips.com/news/nr/earnings/detail/2q05summary.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 stronger oil and gas production in the second half of 2005, with full year production to be approximately 3 percent higher than that of 2004, excluding the impacts of LUKOIL"; "with respect to downstream, we expect a strong margin environment and continued high utilization rates in the near term"; "our focus is on continuous improvement and execution of our five-year, $2 billion clean fuels program"; and "the five-year, $3 billion incremental refining investment program that we announced in the first quarter will result in expanded capacity, stronger processing flexibility and higher clean product yields throughout our domestic and international refining network" involve certain risks, uncertainties and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect ConocoPhillips' business are generally as set forth in ConocoPhillips' filings with the Securities and Exchange Commission (SEC). ConocoPhillips is under no obligation (and expressly disclaims any such obligation) to update or alter its forward-looking statements whether as a result of new information, future events or otherwise. Cautionary Note to U.S. Investors -- The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved reserves that a company has demonstrated by actual production or conclusive formation tests to be economically and legally producible under existing economic and operating conditions. Production is distinguished from oil and gas production because SEC regulations define Syncrude as mining-related and not part of conventional oil and natural gas reserves. We use certain terms in this release, such as "including Canadian Syncrude" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosure in the company's periodic filings with the SEC, available from the company at 600 North Dairy Ashford Road, Houston, Texas 77079. This information can also be obtained from the SEC by calling 1-800-SEC-0330. CONTACT: ConocoPhillips, Houston Laura Hopkins, 281-293-6030 (media) or Gary Russell, 212-207-1996 (investors) EX-99.2 3 a4939009ex992.txt EXHIBIT 99.2 Exhibit 99.2 ConocoPhillips Houston, Texas 77079
Preliminary FINANCIAL HIGHLIGHTS Millions of Dollars --------------------------------------------------- Three Months Ended Six Months Ended June 30 June 30 ----------------------- ----------------------- 2005 2004 2005 2004 ---------- ---------- --------- --------- Revenues Sales and other operating revenues* $ 41,808 31,528 79,439 61,341 Equity in earnings of affiliates 701 322 1,754 591 Other income 105 36 339 171 ---------- ------ ------ ------ 42,614 31,886 81,532 62,103 ---------- ------ ------ ------ Costs and expenses Purchased crude oil, natural gas and products 28,523 20,363 54,095 40,098 Production and operating expenses 2,147 1,840 4,099 3,505 Selling, general and administrative expenses 539 516 1,078 984 Exploration expenses 121 163 292 306 Depreciation, depletion and amortization 985 912 2,026 1,830 Property impairments 9 20 31 51 Taxes other than income taxes* 4,664 4,428 9,152 8,542 Accretion on discounted liabilities 41 41 89 77 Interest and debt expense 127 159 265 304 Foreign currency transaction losses (gains) 21 (33) 18 (49) Minority interests 5 7 15 21 ---------- ------ ------ ------ 37,182 28,416 71,160 55,669 ---------- ------ ------ ------ Income from continuing operations before income taxes 5,432 3,470 10,372 6,434 Provision for income taxes 2,301 1,457 4,318 2,818 ---------- ------ ------ ------ Income from continuing operations 3,131 2,013 6,054 3,616 Income (loss) from discontinued operations 7 62 (4) 75 ---------- ------ ------ ------ Net income $ 3,138 2,075 6,050 3,691 ========== ====== ====== ====== Income per share of common stock (dollars)** Basic Continuing operations $ 2.24 1.46 4.33 2.63 Discontinued operations 0.01 0.04 -- 0.05 Net income $ 2.25 1.50 4.33 2.68 Diluted Continuing operations $ 2.21 1.44 4.26 2.60 Discontinued operations -- 0.04 -- 0.05 Net income $ 2.21 1.48 4.26 2.65 Average common shares outstanding (in thousands)** Basic 1,396,724 1,379,380 1,397,305 1,375,788 Diluted 1,419,288 1,398,022 1,420,022 1,393,528 *Includes excise, value added and other similar taxes on petroleum products sales: $ 4,338 4,172 8,493 7,994 ** Per-share amounts and average number of common shares outstanding in all periods reflect a two-for-one stock split effected as a 100 percent stock dividend on June 1, 2005.
1 ConocoPhillips Houston, Texas 77079
Preliminary SELECTED FINANCIAL DATA Millions of Dollars --------------------------------------- Three Months Ended Six Months Ended June 30 June 30 --------------------- ----------------- 2005 2004 2005 2004 INCOME (LOSS) FROM CONTINUING OPERATIONS E&P United States $ 966 671 1,858 1,306 International 963 683 1,858 1,305 ------- ----- ----- ----- Total E&P 1,929 1,354 3,716 2,611 ------- ----- ----- ----- Midstream 68 42 453 97 ------- ----- ----- ----- R&M United States 936 734 1,506 1,137 International 174 84 304 145 ------- ----- ----- ----- Total R&M 1,110 818 1,810 1,282 ------- ----- ----- ----- LUKOIL Investment 148 -- 258 -- Chemicals 63 46 196 85 Emerging Businesses (8) (29) (16) (51) Corporate and other (179) (218) (363) (408) ------- ----- ----- ----- Consolidated $ 3,131 2,013 6,054 3,616 ======= ===== ===== ===== INCOME (LOSS) FROM DISCONTINUED OPERATIONS Corporate and other 7 62 (4) 75 SUMMARY OF NET INCOME (LOSS) E&P United States $ 966 671 1,858 1,306 International 963 683 1,858 1,305 ------- ----- ----- ----- Total E&P 1,929 1,354 3,716 2,611 ------- ----- ----- ----- Midstream 68 42 453 97 ------- ----- ----- ----- R&M United States 936 734 1,506 1,137 International 174 84 304 145 ------- ----- ----- ----- Total R&M 1,110 818 1,810 1,282 ------- ----- ----- ----- LUKOIL Investment 148 -- 258 -- Chemicals 63 46 196 85 Emerging Businesses (8) (29) (16) (51) Corporate and other (172) (156) (367) (333) ------- ----- ----- ----- Net income $ 3,138 2,075 6,050 3,691 ======= ===== ===== =====
2
ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Three Months Ended Six Months Ended June 30 June 30 ------------------ ------------------ 2005 2004 2005 2004 ------- ------ ----- ---- INCOME (LOSS) FROM CONTINUING OPERATIONS Effective tax rate % 42.4 % 42.0 41.6 43.8 Millions of Dollars FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX E&P $ (8) 14 4 19 Midstream 7 -- 7 -- R&M (18) 5 (36) 6 LUKOIL Investment -- -- -- -- Chemicals -- -- -- -- Emerging Businesses -- 1 -- 1 Corporate and other (11) -- (4) 6 -------- ----- ----- ----- $ (30) 20 (29) 32 ======== ===== ===== ===== CASH FLOWS FROM OPERATING ACTIVITIES Income from continuing operations $ 3,131 2,013 6,054 3,616 Depreciation, depletion and amortization 985 912 2,026 1,830 Property impairments 9 20 31 51 Dry hole costs and leasehold impairment 47 105 156 192 Accretion on discounted liabilities 41 41 89 77 Deferred income taxes 369 310 492 670 Undistributed equity earnings (414) (97) (1,219) (278) Net (gain) loss on asset dispositions (65) (6) (242) (88) Other (113) 65 (191) 135 Working capital changes (1,224) (1,101) (336) (1,878) -------- ----- ----- ----- Net cash provided by continuing operations 2,766 2,262 6,860 4,327 Net cash provided by discontinued operations 2 14 (3) 22 -------- ----- ----- ----- Net cash provided by operating activities $ 2,768 2,276 6,857 4,349 ======== ===== ===== ===== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $ 576 308 898 614 International 1,761 931 2,645 1,835 -------- ----- ----- ----- 2,337 1,239 3,543 2,449 Midstream -- 2 1 5 R&M 360 278 635 493 LUKOIL Investment 384 -- 708 -- Chemicals -- -- -- -- Emerging Businesses 7 27 3 55 Corporate and other* 37 38 57 63 -------- ----- ----- ----- $ 3,125 1,584 4,947 3,065 ======== ===== ===== ===== *Excludes discontinued operations OTHER At June 30, 2005 At December 31, 2004 Total debt $ 14,013 15,002 Common stockholders' equity $ 47,300 42,723
3 ConocoPhillips Houston, Texas 77079
Preliminary OPERATING HIGHLIGHTS BY SEGMENT Three Months Ended Six Months Ended June 30 June 30 ------------------ ---------------- 2005 2004 2005 2004 ---- ---- ---- ---- Thousands of Barrels Daily E&P Crude oil produced United States Alaska 297 307 303 314 Lower 48 63 52 62 52 --- --- --- --- 360 359 365 366 Norway 195 212 201 213 United Kingdom 60 64 60 66 Canada 23 25 23 26 China 25 28 24 30 Indonesia 16 14 19 15 Vietnam 26 31 26 31 Timor Sea 21 15 29 10 Other 54 61 54 61 --- --- --- --- Total consolidated 780 809 801 818 Equity affiliates 123 104 122 109 --- --- --- --- Total Worldwide 903 913 923 927 === === === === Syncrude 21 20 18 22 === === === === Natural gas liquids produced United States Alaska* 16 23 20 25 Lower 48 31 26 29 25 --- --- --- --- 47 49 49 50 Norway 9 8 9 8 Canada 10 10 10 10 Timor Sea 9 4 13 2 Other 5 8 6 8 --- --- --- --- Total Worldwide 80 79 87 78 === === === === *Includes reinjected volumes sold lease-to-lease 1 15 7 15 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 148 147 166 166 Lower 48 1,195 1,226 1,182 1,229 ----- ----- ----- ----- 1,343 1,373 1,348 1,395 Norway 268 303 283 312 United Kingdom 741 821 782 850 Canada 422 437 420 432 Timor Sea 35 32 35 36 Indonesia 287 237 280 243 Vietnam 14 15 16 16 Other 81 81 78 73 ----- ----- ----- ----- Total consolidated 3,191 3,299 3,242 3,357 Equity affiliates 7 4 7 6 ----- ----- ----- ----- Total Worldwide 3,198 3,303 3,249 3,363 ===== ===== ===== ===== *Represents quantities available for sale Excludes gas equivalent of NGL shown above Liquefied natural gas sales 96 82 114 100 LUKOIL Investment Production (MBOE/D)* 223 -- 213 -- Refinery crude oil throughput (MB/D)* 102 -- 97 -- *Represents our estimated net share of LUKOIL
4 ConocoPhillips Houston, Texas 77079
Preliminary OPERATING HIGHLIGHTS Three Months Ended Six Months Ended June 30 June 30 --------------------- --------------------- 2005 2004 2005 2004 ---- ---- ---- ---- E&P Per Unit Average sales prices Crude oil (per barrel) United States Alaska $ 49.22 36.53 46.55 34.68 Lower 48 43.58 34.39 42.45 33.11 Total U.S. 48.21 36.22 45.86 34.45 International 49.41 34.58 47.68 33.02 Total consolidated 48.88 35.32 46.85 33.68 Equity affiliates 36.11 25.48 33.59 22.17 Total Worldwide 46.93 34.17 45.04 32.27 Natural gas-lease (per MCF) United States Alaska 2.49 2.31 2.72 2.43 Lower 48 6.20 5.49 5.93 5.25 Total U.S. 6.07 5.35 5.83 5.11 International 5.16 3.81 5.10 3.96 Total consolidated 5.53 4.43 5.38 4.42 Equity affiliates 0.32 0.31 0.30 3.14 Total Worldwide 5.52 4.43 5.38 4.42 Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 21 24 22 38 International 44 33 48 40 Equity affiliates United States* 112 112 111 111 International 6 5 6 6 ------ ----- ---- --- 183 174 187 195 ====== ===== ==== === *Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS). Per Barrel U.S. product prices Weighted average NGL** Consolidated $ 32.49 26.42 32.22 26.05 DEFS 31.33 25.61 30.97 25.21 **Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural-gas-liquids component and location mix.
5 ConocoPhillips Houston, Texas 77079
Three Months Ended Six Months Ended June 30 June 30 ------------------------- ----------------------- 2005 2004 2005 2004 -------- ------- ------- ------ Thousands of Barrels Daily R&M United States Crude oil capacity 2,182 2,168 2,178 2,168 Crude oil runs 2,133 2,119 2,046 2,112 Refinery production 2,349 2,300 2,247 2,273 International* Crude oil capacity 428 447 428 447 Crude oil runs 402 309 415 359 Refinery production 410 318 427 364 U.S. Petroleum products outside sales Automotive Gasoline 1,426 1,328 1,364 1,321 Distillates 680 538 662 554 Aviation fuels 214 191 206 185 Other products 566 573 514 545 ------ ----- ------ ----- 2,886 2,630 2,746 2,605 International 477 440 486 472 ------ ----- ------ ----- 3,363 3,070 3,232 3,077 ====== ===== ====== ===== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $ 1.67 1.40 1.56 1.28 Automotive gasoline-retail 1.85 1.61 1.70 1.47 Distillates-wholesale 1.66 1.17 1.57 1.09 *Includes ConocoPhillips' share of equity affiliates except LUKOIL. **Excludes excise taxes.
6 EX-99.3 4 a4939009ex993.txt EXHIBIT 99.3 Exhibit 99.3 [LOGO CONOCOPHILLIPS]
SUMMARY OF NET INCOME (LOSS) BY SEGMENT Millions of Dollars ---------------------------------------------------------------------------------- 2004 2005 ----------------------------------------- --------------------------------------- 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 635 671 701 935 2,942 892 966 1,858 International E&P 622 683 719 736 2,760 895 963 1,858 -------------------------------------------------------------------------- --------------------------------------- Total E&P 1,257 1,354 1,420 1,671 5,702 1,787 1,929 3,716 -------------------------------------------------------------------------- --------------------------------------- Midstream 55 42 38 100 235 385 68 453 -------------------------------------------------------------------------- --------------------------------------- U.S. R&M 403 734 505 484 2,126 570 936 1,506 International R&M 61 84 203 269 617 130 174 304 -------------------------------------------------------------------------- --------------------------------------- Total R&M 464 818 708 753 2,743 700 1,110 1,810 -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment - - - 74 74 110 148 258 Chemicals 39 46 81 83 249 133 63 196 Emerging Businesses (22) (29) (27) (24) (102) (8) (8) (16) Corporate and Other (190) (218) (209) (177) (794) (184) (179) (363) -------------------------------------------------------------------------- --------------------------------------- Consolidated 1,603 2,013 2,011 2,480 8,107 2,923 3,131 6,054 ========================================================================== ======================================= Cumulative Effect of Accounting Changes U.S. E&P - - - - - - - - International E&P - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total E&P - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Midstream - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- U.S. R&M - - - - - - - - International R&M - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total R&M - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment - - - - - - - - Chemicals - - - - - - - - Emerging Businesses - - - - - - - - Corporate and Other - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Consolidated - - - - - - - - ========================================================================== ======================================= Income (Loss) from Discontinued Operations Corporate and Other 13 62 (5) (48) 22 (11) 7 (4) ========================================================================== ======================================= Net Income (Loss) U.S. E&P 635 671 701 935 2,942 892 966 1,858 International E&P 622 683 719 736 2,760 895 963 1,858 -------------------------------------------------------------------------- --------------------------------------- Total E&P 1,257 1,354 1,420 1,671 5,702 1,787 1,929 3,716 -------------------------------------------------------------------------- --------------------------------------- Midstream 55 42 38 100 235 385 68 453 -------------------------------------------------------------------------- --------------------------------------- U.S. R&M 403 734 505 484 2,126 570 936 1,506 International R&M 61 84 203 269 617 130 174 304 -------------------------------------------------------------------------- --------------------------------------- Total R&M 464 818 708 753 2,743 700 1,110 1,810 -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment - - - 74 74 110 148 258 Chemicals 39 46 81 83 249 133 63 196 Emerging Businesses (22) (29) (27) (24) (102) (8) (8) (16) Corporate and Other (177) (156) (214) (225) (772) (195) (172) (367) -------------------------------------------------------------------------- --------------------------------------- -------------------------------------------------------------------------- --------------------------------------- Consolidated 1,616 2,075 2,006 2,432 8,129 2,912 3,138 6,050 ========================================================================== =======================================
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INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Millions of Dollars ---------------------------------------------------------------------------------- 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- Income from Continuing Operations Before Income Taxes U.S. E&P 987 1,049 1,057 1,433 4,526 1,388 1,504 2,892 International E&P 1,410 1,360 1,654 1,684 6,108 2,020 2,152 4,172 -------------------------------------------------------------------------- --------------------------------------- Total E&P 2,397 2,409 2,711 3,117 10,634 3,408 3,656 7,064 -------------------------------------------------------------------------- --------------------------------------- Midstream 86 66 62 158 372 449 107 556 -------------------------------------------------------------------------- --------------------------------------- U.S. R&M 636 1,149 803 772 3,360 901 1,485 2,386 International R&M 79 111 268 356 814 160 203 363 -------------------------------------------------------------------------- --------------------------------------- Total R&M 715 1,260 1,071 1,128 4,174 1,061 1,688 2,749 -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment - - - 74 74 115 153 268 Chemicals 49 56 99 109 313 187 84 271 Emerging Businesses (34) (42) (44) (34) (154) (13) (13) (26) Corporate and Other (249) (279) (239) (277) (1,044) (267) (243) (510) -------------------------------------------------------------------------- --------------------------------------- Consolidated 2,964 3,470 3,660 4,275 14,369 4,940 5,432 10,372 ========================================================================== ======================================= Income from Continuing Operations Effective Tax Rates U.S. E&P 35.7% 36.0% 33.7% 34.8% 35.0% 35.7% 35.8% 35.8% International E&P 55.9% 49.8% 56.5% 56.3% 54.8% 55.7% 55.3% 55.5% -------------------------------------------------------------------------- --------------------------------------- Total E&P 47.6% 43.8% 47.6% 46.4% 46.4% 47.6% 47.2% 47.4% -------------------------------------------------------------------------- --------------------------------------- Midstream 36.0% 36.4% 38.7% 36.7% 36.8% 14.3% 36.4% 18.5% -------------------------------------------------------------------------- --------------------------------------- U.S. R&M 36.6% 36.1% 37.1% 37.3% 36.7% 36.7% 37.0% 36.9% International R&M 22.8% 24.3% 24.3% 24.4% 24.2% 18.8% 14.3% 16.3% -------------------------------------------------------------------------- --------------------------------------- Total R&M 35.1% 35.1% 33.9% 33.2% 34.3% 34.0% 34.2% 34.2% -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment n/a n/a n/a 0.0% 0.0% 4.3% 3.3% 3.7% Chemicals 20.4% 17.9% 18.2% 23.9% 20.4% 28.9% 25.0% 27.7% Emerging Businesses 35.3% 31.0% 38.6% 29.4% 33.8% 38.5% 38.5% 38.5% Corporate and Other 23.7% 21.9% 12.6% 36.1% 23.9% 31.1% 26.3% 28.8% -------------------------------------------------------------------------- --------------------------------------- Consolidated 45.9% 42.0% 45.1% 42.0% 43.6% 40.8% 42.4% 41.6% ========================================================================== =======================================
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CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX) Millions of Dollars ---------------------------------------------------------------------------------- 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- U.S. E&P Gain (loss) on asset sales - - - - - 90 - 90 Property impairments (3) - - (9) (12) - - - Tax credit utilization - - 22 28 50 - - - Insurance premium adjustment - - - (17) (17) - (5) (5) Pending claims and settlements - - - - - - 15 15 -------------------------------------------------------------------------- --------------------------------------- Total (3) - 22 2 21 90 10 100 -------------------------------------------------------------------------- --------------------------------------- International E&P Gain (loss) on asset sales 56 (13) - - 43 - 15 15 Property impairments - - (1) (29) (30) - - - Insurance premium adjustment - - - (17) (17) - (10) (10) Canada tax law change - 31 - 41 72 - - - Pending claims and settlements - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total 56 18 (1) (5) 68 - 5 5 -------------------------------------------------------------------------- --------------------------------------- Total E&P 53 18 21 (3) 89 90 15 105 -------------------------------------------------------------------------- --------------------------------------- Midstream Property impairments (12) (10) - - (22) (6) (7) (13) DEFS' sale of TEPPCO general partnership - - - - - 306 - 306 -------------------------------------------------------------------------- --------------------------------------- Total (12) (10) - - (22) 300 (7) 293 -------------------------------------------------------------------------- --------------------------------------- U.S. R&M Gain (loss) on asset sales - - - - - 31 - 31 Property impairments (5) - (6) (28) (39) - - - Insurance premium adjustment - - - (6) (6) - (7) (7) Pending claims and settlements - - (34) - (34) - - - -------------------------------------------------------------------------- --------------------------------------- Total (5) - (40) (34) (79) 31 (7) 24 -------------------------------------------------------------------------- --------------------------------------- International R&M Gain (loss) on asset sales - - - - - - 25 25 Property impairments - - - - - - - - Other - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total - - - - - - 25 25 -------------------------------------------------------------------------- --------------------------------------- Total R&M (5) - (40) (34) (79) 31 18 49 -------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Chemicals - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Emerging Businesses - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Corporate and Other Property impairments - - - - - - - - Merger-related expenses (14) - - - (14) - - - Premium on early debt retirement - - (43) - (43) (8) - (8) Other - - - - - - - - -------------------------------------------------------------------------- --------------------------------------- Total (14) - (43) - (57) (8) - (8) -------------------------------------------------------------------------- --------------------------------------- Total Company 22 8 (62) (37) (69) 413 26 439 ========================================================================== =======================================
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CASH FLOW INFORMATION Millions of Dollars ---------------------------------------------------------------------------------- 2004 2005 ---------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ---------------------------------------- --------------------------------------- Cash Flows from Operating Activities Income from continuing operations 1,603 2,013 2,011 2,480 8,107 2,923 3,131 6,054 DD&A and property impairments 949 932 950 1,131 3,962 1,063 994 2,057 Dry hole costs and leasehold impairments 87 105 150 75 417 109 47 156 Accretion on discounted liabilities 36 41 49 45 171 48 41 89 Deferred income taxes 360 310 328 27 1,025 123 369 492 Undistributed equity earnings (181) (97) (263) (236) (777) (805) (414) (1,219) Net (gain) loss on asset dispositions (82) (6) 6 (34) (116) (177) (65) (242) Other 70 65 (30) (295) (190) (78) (113) (191) Net working capital changes (777) (1,101) 1,267 10 (601) 888 (1,224) (336) Discontinued operations 8 14 (55) (6) (39) (5) 2 (3) ------------------------------------------------------------------------------------- --------------------------------------- Net Cash Provided by Operating Activities 2,073 2,276 4,413 3,197 11,959 4,089 2,768 6,857 ------------------------------------------------------------------------------------- --------------------------------------- Cash Flows from Investing Activities Capital expenditures and investments: E&P (1,210) (1,239) (1,248) (1,552) (5,249) (1,206) (2,337) (3,543) Midstream (3) (2) (1) (1) (7) (1) - (1) R&M (215) (278) (277) (574) (1,344) (275) (360) (635) LUKOIL Investment - - - (2,649) (2,649) (324) (384) (708) Chemicals - - - - - - - - Emerging Businesses (28) (27) (19) (1) (75) 4 (7) (3) Corporate and Other (25) (38) (49) (60) (172) (20) (37) (57) ------------------------------------------------------------------------------------- --------------------------------------- Total capital expend. & investments (1,481) (1,584) (1,594) (4,837) (9,496) (1,822) (3,125) (4,947) Acquisitions - adoption & application of FIN 46 - - 11 - 11 - - - Proceeds from asset dispositions 449 905 73 164 1,591 87 221 308 Long-term advances to/collections from affiliates and other investments (44) 9 30 112 107 25 4 29 Discontinued operations (1) (1) - 1 (1) - - - ------------------------------------------------------------------------------------- --------------------------------------- Net Cash Used for Investing Activities (1,077) (671) (1,480) (4,560) (7,788) (1,710) (2,900) (4,610) ------------------------------------------------------------------------------------- --------------------------------------- Cash Flows from Financing Activities Net issuance (repayment) of debt (722) (1,361) (221) (471) (2,775) (986) (13) (999) Issuance of stock 112 95 62 161 430 155 108 263 Repurchase of stock - - - - - (194) (382) (576) Dividends (294) (296) (296) (346) (1,232) (348) (432) (780) Other 89 94 (66) 61 178 64 33 97 ------------------------------------------------------------------------------------- --------------------------------------- Net Cash Provided by (Used for) Financing Activities (815) (1,468) (521) (595) (3,399) (1,309) (686) (1,995) ------------------------------------------------------------------------------------- --------------------------------------- Effect of Exchange Rate Changes (12) 8 47 82 125 (36) (62) (98) ------------------------------------------------------------------------------------- --------------------------------------- Net Change in Cash and Cash Equivalents 169 145 2,459 (1,876) 897 1,034 (880) 154 Cash and cash equivalents at beginning of period 490 659 804 3,263 490 1,387 2,421 1,387 ------------------------------------------------------------------------------------- --------------------------------------- Cash and Cash Equivalents at End of Period 659 804 3,263 1,387 1,387 2,421 1,541 1,541 ===================================================================================== =======================================
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TOTAL E&P 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- E&P Net Income ($ Millions) 1,257 1,354 1,420 1,671 5,702 1,787 1,929 3,716 ========================================================================== ======================================= Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 1,611 1,563 1,484 1,596 1,563 1,600 1,537 1,570 -------------------------------------------------------------------------- --------------------------------------- E&P segment plus LUKOIL Investment Segment: 1,611 1,563 1,484 1,755 1,603 1,801 1,760 1,783 -------------------------------------------------------------------------- --------------------------------------- Crude Oil and Condensate (MB/D) Consolidated 828 809 733 821 797 822 780 801 Equity affiliates 113 104 111 103 108 120 123 122 -------------------------------------------------------------------------- --------------------------------------- Total 941 913 844 924 905 942 903 923 ========================================================================== ======================================= Sales of crude oil produced (MB/D) 927 888 875 903 898 940 932 936 -------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids (MB/D) 76 79 87 92 84 94 80 87 ------------------------------------------------------------------------------------------------------------------- Natural Gas (MMCF/D) Consolidated 3,415 3,299 3,179 3,356 3,312 3,295 3,191 3,242 Equity affiliates 9 4 4 4 5 5 7 7 -------------------------------------------------------------------------- --------------------------------------- Total 3,424 3,303 3,183 3,360 3,317 3,300 3,198 3,249 ========================================================================== ======================================= Canadian Syncrude (MB/D) 23 20 22 20 21 14 21 18 -------------------------------------------------------------------------- --------------------------------------- Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 35.23 38.31 43.86 48.29 41.42 49.70 53.03 51.37 Brent dated 31.95 35.36 41.54 44.00 38.21 47.50 51.59 49.55 Natural Gas--Henry Hub 1st of month ($/MCF) 5.69 6.00 5.75 7.07 6.13 6.27 6.74 6.51 -------------------------------------------------------------------------- --------------------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 32.08 35.32 40.41 42.79 37.65 44.89 48.88 46.85 Equity affiliates 19.27 25.48 26.19 26.55 24.18 30.38 36.11 33.59 Total 30.44 34.17 38.78 40.96 36.06 43.15 46.93 45.04 -------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids ($/bbl) 25.43 26.71 30.73 35.37 30.02 33.44 35.10 34.26 -------------------------------------------------------------------------- --------------------------------------- Natural Gas ($/mcf) Consolidated 4.41 4.43 4.48 5.13 4.62 5.24 5.53 5.38 Equity affiliates 3.91 0.31 0.31 0.25 2.19 0.25 0.32 0.30 Total 4.41 4.43 4.48 5.13 4.61 5.24 5.52 5.38 -------------------------------------------------------------------------- --------------------------------------- Exploration Charges ($ Millions) Dry Holes 67 42 82 51 242 88 30 118 Lease Impairments 20 63 68 24 175 20 18 38 -------------------------------------------------------------------------- --------------------------------------- Total Non-Cash Charges 87 105 150 75 417 108 48 156 Other (G&G and Lease Rentals) 56 58 55 117 286 63 73 136 -------------------------------------------------------------------------- --------------------------------------- Total Exploration Charges 143 163 205 192 703 171 121 292 ========================================================================== ======================================= Depreciation, Depletion and Amortization (DD&A) ($ Millions) 704 720 711 783 2,918 819 755 1,574 -------------------------------------------------------------------------- ---------------------------------------
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U.S. E&P 2004 2005 ----------------------------------------- ---------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- ---------------------------------------- U.S. E&P Net Income ($ Millions) 635 671 701 935 2,942 892 966 1,858 ================================================================================== ======================================== Alaska ($ Millions) 403 397 451 581 1,832 532 572 1,104 ---------------------------------------------------------------------------------- ---------------------------------------- Lower 48 ($ Millions) 232 274 250 354 1,110 360 394 754 ---------------------------------------------------------------------------------- ---------------------------------------- Production Total U.S. (MBOE/D) 659 637 579 642 629 648 631 639 ---------------------------------------------------------------------------------- ---------------------------------------- Crude Oil and Condensate (MB/D) Alaska 320 307 253 313 298 309 297 303 Lower 48 53 52 50 50 51 62 63 62 ---------------------------------------------------------------------------------- ---------------------------------------- Total 373 359 303 363 349 371 360 365 ================================================================================== ======================================== Sales of crude oil produced (MB/D) 373 354 312 356 349 386 352 369 ---------------------------------------------------------------------------------- ---------------------------------------- Natural Gas Liquids (MB/D)* Alaska 26 23 19 24 23 24 16 20 Lower 48 24 26 26 26 26 27 31 29 ---------------------------------------------------------------------------------- ---------------------------------------- Total 50 49 45 50 49 51 47 49 ================================================================================== ======================================== *Includes reinjection volumes sold lease-to-lease: 16 15 10 14 14 13 1 7 ---------------------------------------------------------------------------------- ---------------------------------------- Natural Gas (MMCF/D) Alaska 185 147 164 163 165 185 148 166 Lower 48 1,233 1,226 1,220 1,214 1,223 1,169 1,195 1,182 ---------------------------------------------------------------------------------- ---------------------------------------- Total 1,418 1,373 1,384 1,377 1,388 1,354 1,343 1,348 ================================================================================== ======================================== Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 28.00 31.69 35.66 39.53 33.61 38.93 43.92 41.30 ---------------------------------------------------------------------------------- ---------------------------------------- West Coast 32.93 36.53 40.48 44.37 38.47 44.15 49.22 46.55 ---------------------------------------------------------------------------------- ---------------------------------------- Lower 48 31.86 34.39 39.56 42.30 36.95 41.29 43.58 42.45 ---------------------------------------------------------------------------------- ---------------------------------------- Total U.S. 32.78 36.22 40.33 44.08 38.25 43.69 48.21 45.86 ---------------------------------------------------------------------------------- ---------------------------------------- Natural Gas Liquids ($/bbl) Alaska 32.93 36.38 40.52 43.78 38.64 44.33 49.20 47.24 ---------------------------------------------------------------------------------- ---------------------------------------- Lower 48 24.19 25.82 29.40 32.80 28.14 30.96 31.22 31.10 ---------------------------------------------------------------------------------- ---------------------------------------- Total U.S. 26.80 28.38 32.22 36.21 31.05 34.68 37.26 36.11 ---------------------------------------------------------------------------------- ---------------------------------------- Natural Gas ($/mcf) Alaska 2.54 2.31 2.22 2.23 2.35 2.96 2.49 2.72 ---------------------------------------------------------------------------------- ---------------------------------------- Lower 48 5.00 5.49 5.29 6.04 5.46 5.66 6.20 5.93 ---------------------------------------------------------------------------------- ---------------------------------------- Total U.S. 4.88 5.35 5.19 5.92 5.33 5.57 6.07 5.83 ---------------------------------------------------------------------------------- ---------------------------------------- Kenai, Alaska LNG Sales Volume (MMCF/D) 118 82 115 107 105 132 96 114 ---------------------------------------------------------------------------------- ---------------------------------------- Sales price per MCF 4.51 4.80 5.06 5.25 4.90 5.27 5.24 5.26 ---------------------------------------------------------------------------------- ---------------------------------------- U.S. Exploration Charges ($ Millions) Dry Holes 32 32 (5) - 59 74 8 82 Lease Impairments 11 11 10 10 42 10 9 19 ---------------------------------------------------------------------------------- ---------------------------------------- Total Non-Cash Charges 43 43 5 10 101 84 17 101 Other (G&G and Lease Rentals) 15 19 15 37 86 12 17 29 ---------------------------------------------------------------------------------- ---------------------------------------- Total U.S. Exploration Charges 58 62 20 47 187 96 34 130 ================================================================================== ======================================== Alaska Only 17 43 7 14 81 85 13 98 ---------------------------------------------------------------------------------- ---------------------------------------- DD&A ($ Millions) Alaska 119 125 122 144 510 133 134 267 Lower 48 146 145 157 150 598 219 172 391 ---------------------------------------------------------------------------------- ---------------------------------------- Total U.S. 265 270 279 294 1,108 352 306 658 ================================================================================== ========================================
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INTERNATIONAL E&P 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- International E&P Net Income ($ Millions) 622 683 719 736 2,760 895 963 1,858 ========================================================================== ======================================= Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 952 926 905 954 934 952 906 931 -------------------------------------------------------------------------- --------------------------------------- Crude Oil and Condensate (MB/D) Consolidated Norway 215 212 189 211 207 207 195 201 United Kingdom 67 64 59 66 64 61 60 60 Canada 27 25 24 24 25 23 23 23 China 32 28 25 17 25 22 25 24 Indonesia 15 14 14 18 15 21 16 19 Vietnam 31 31 35 33 33 27 26 26 Timor Sea 5 15 29 34 21 36 21 29 Other 63 61 55 55 58 54 54 54 Equity affiliates 113 104 111 103 108 120 123 122 -------------------------------------------------------------------------- --------------------------------------- Total 568 554 541 561 556 571 543 558 ========================================================================== ======================================= Sales of crude oil produced (MB/D) 554 534 563 547 549 554 580 567 -------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids (MB/D) Norway 9 8 8 9 8 10 9 9 Canada 10 10 10 11 10 10 10 10 Timor Sea - 4 14 16 9 17 9 13 Other 7 8 10 6 8 6 5 6 -------------------------------------------------------------------------- --------------------------------------- Total 26 30 42 42 35 43 33 38 ========================================================================== ======================================= Natural Gas (MMCF/D) Consolidated Norway 319 303 274 306 301 298 268 283 United Kingdom 879 821 720 852 818 824 741 782 Canada 428 437 425 442 433 417 422 420 Timor Sea 40 32 35 35 35 35 35 35 Indonesia 248 237 248 266 250 273 287 280 Vietnam 17 15 15 19 16 18 14 16 Other 66 81 78 59 71 76 81 78 Equity affiliates 9 4 4 4 5 5 7 7 -------------------------------------------------------------------------- --------------------------------------- Total 2,006 1,930 1,799 1,983 1,929 1,946 1,855 1,901 ========================================================================== ======================================= Canadian Syncrude (MB/D) 23 20 22 20 21 14 21 18 -------------------------------------------------------------------------- --------------------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated Norway 32.13 34.72 40.70 41.82 37.55 45.52 50.21 48.14 United Kingdom 31.27 34.19 39.57 44.79 37.00 49.47 48.02 48.96 Canada 28.95 30.58 36.16 38.44 32.92 36.96 41.09 39.02 China 29.91 33.02 37.99 32.87 33.31 41.51 46.95 44.74 Indonesia 32.21 36.20 42.71 45.43 39.21 46.51 47.57 46.94 Vietnam 31.76 36.42 41.36 42.94 38.31 47.77 53.32 50.46 Timor Sea 35.49 37.32 46.65 45.95 43.91 47.99 50.90 49.17 Other 30.89 34.87 39.54 39.28 36.05 44.56 50.11 47.52 Equity affiliates 19.27 25.48 26.19 26.55 24.18 30.38 36.11 33.59 Total 28.86 32.81 37.92 38.93 34.67 42.77 46.16 44.51 -------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids ($/bbl) Norway 24.34 24.22 27.79 37.64 28.92 30.63 28.20 29.44 Canada 26.38 28.58 31.15 36.61 30.77 37.37 37.66 37.51 Timor Sea - 29.13 33.96 37.11 34.94 34.40 35.99 34.92 Other 18.43 18.03 22.76 19.64 19.99 21.34 22.30 21.79 Total 23.53 24.69 29.53 34.59 28.96 32.35 32.03 32.21 -------------------------------------------------------------------------- --------------------------------------- Natural Gas ($/mcf) Consolidated Norway 4.37 3.99 4.12 4.45 4.24 5.03 5.30 5.16 United Kingdom 4.04 3.47 3.79 4.76 4.03 5.54 5.01 5.29 Canada 4.88 5.01 4.64 5.43 5.00 5.33 6.14 5.74 Timor Sea 0.43 0.45 0.46 0.49 0.46 0.52 0.52 0.52 Indonesia 4.38 4.28 5.02 4.74 4.61 5.08 5.96 5.53 Vietnam 1.10 0.99 1.01 1.05 1.04 1.04 1.04 1.04 Other 0.66 0.59 0.62 0.97 0.69 0.70 0.59 0.64 Equity affiliates 3.91 0.31 0.31 0.25 2.19 0.25 0.32 0.30 Total 4.11 3.81 3.98 4.63 4.14 5.03 5.15 5.09 -------------------------------------------------------------------------- --------------------------------------- International Exploration Charges ($ Millions) Dry Holes 35 10 87 51 183 14 22 36 Lease Impairments 9 52 58 14 133 10 9 19 -------------------------------------------------------------------------- --------------------------------------- Total Non-Cash Charges 44 62 145 65 316 24 31 55 Other (G&G and Lease Rentals) 41 39 40 80 200 51 56 107 -------------------------------------------------------------------------- --------------------------------------- Total International Exploration Charges 85 101 185 145 516 75 87 162 ========================================================================== ======================================= DD&A ($ Millions) 439 450 432 489 1,810 467 449 916 -------------------------------------------------------------------------- ---------------------------------------
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R&M 2004 2005 ----------------------------------------- ---------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- ---------------------------------------- R&M Net Income ($ Millions) 464 818 708 753 2,743 700 1,110 1,810 ===================================================================================== ======================================== United States ($ Millions) 403 734 505 484 2,126 570 936 1,506 ------------------------------------------------------------------------------------- ---------------------------------------- International ($ Millions) 61 84 203 269 617 130 174 304 ------------------------------------------------------------------------------------- ---------------------------------------- Market Indicators U.S. East Coast Crack Spread ($/bbl) 6.87 9.14 7.00 5.73 7.19 6.40 8.80 7.60 U.S. Gulf Coast Crack Spread ($/bbl) 6.36 9.17 6.33 4.09 6.49 6.37 9.63 8.00 U.S. Group Central Crack Spread ($/bbl) 6.91 11.65 8.09 5.52 8.04 7.92 11.51 9.72 U.S. West Coast Crack Spread ($/bbl) 16.10 24.13 17.92 17.25 18.85 19.61 22.20 20.90 U.S. Weighted 3:2:1 Crack Spread ($/bbl) 8.39 12.60 9.10 7.24 9.33 9.24 12.35 10.80 NW Europe Crack Spread ($/bbl) 7.78 10.43 11.76 15.24 11.30 11.14 15.09 13.12 Singapore 3:2:1 Crack Spread ($/bbl) 10.33 9.48 13.11 17.22 12.54 13.23 13.95 13.59 U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 0.69 1.83 1.50 1.97 1.50 0.16 2.20 1.18 ------------------------------------------------------------------------------------- ---------------------------------------- Realized Margins Refining Margin ($/bbl) U.S. 7.12 9.88 8.84 8.38 8.56 10.11 11.23 10.70 International* 4.51 6.57 8.36 10.03 7.56 8.26 8.79 8.52 ------------------------------------------------------------------------------------- ---------------------------------------- Marketing Margin ($/bbl) U.S. 1.08 1.49 1.15 1.85 1.39 0.46 2.01 1.23 International 6.50 8.20 7.69 8.13 7.66 5.61 8.56 7.14 ------------------------------------------------------------------------------------- ---------------------------------------- * 2004 and first-quarter 2005 amounts restated to include equity affiliates. DD&A ($ Millions) 186 172 202 212 772 194 197 391 ------------------------------------------------------------------------------------- ---------------------------------------- Turnaround Expense ($ Millions) 59 78 57 73 267 108 106 214 ------------------------------------------------------------------------------------- ---------------------------------------- Eastern U.S. Crude Oil Charge Input (MB/D) 413 375 368 346 375 403 414 408 Total Charge Input (MB/D) 440 421 415 407 421 449 454 452 Crude Oil Capacity Utilization (%) 96% 87% 87% 82% 88% 95% 98% 97% Clean Product Yield (%) 87% 84% 87% 90% 87% 92% 88% 90% ------------------------------------------------------------------------------------- ---------------------------------------- U.S. Gulf Coast Crude Oil Charge Input (MB/D) 699 709 617 689 678 659 715 688 Total Charge Input (MB/D) 774 789 717 779 765 733 835 783 Crude Oil Capacity Utilization (%) 97% 99% 88% 98% 96% 92% 100% 96% Clean Product Yield (%) 79% 75% 78% 82% 78% 73% 79% 76% ------------------------------------------------------------------------------------- ---------------------------------------- Central U.S. Crude Oil Charge Input (MB/D) 601 638 634 583 614 538 594 566 Total Charge Input (MB/D) 636 673 669 614 648 577 625 601 Crude Oil Capacity Utilization (%) 96% 102% 99% 91% 97% 84% 93% 89% Clean Product Yield (%) 83% 83% 85% 84% 84% 86% 84% 85% ------------------------------------------------------------------------------------- ---------------------------------------- Western U.S. Crude Oil Charge Input (MB/D) 392 397 392 387 392 357 410 384 Total Charge Input (MB/D) 409 419 409 409 412 382 431 407 Crude Oil Capacity Utilization (%) 100% 101% 99% 98% 99% 90% 101% 96% Clean Product Yield (%) 81% 81% 82% 83% 82% 80% 82% 81% ------------------------------------------------------------------------------------- ---------------------------------------- TOTAL UNITED STATES Crude Oil Charge Input (MB/D) 2,105 2,119 2,011 2,005 2,059 1,957 2,133 2,046 Total Charge Input (MB/D) 2,259 2,302 2,210 2,209 2,246 2,141 2,345 2,243 Crude Oil Capacity Utilization (%) 97% 98% 93% 93% 95% 90% 98% 94% Clean Product Yield (%) 82% 80% 82% 84% 82% 82% 83% 82% ------------------------------------------------------------------------------------- ---------------------------------------- Refined Products Production (MB/D) Gasoline 1,059 1,043 1,060 1,072 1,059 968 1,071 1,019 Distillates 604 591 574 619 597 599 655 627 Aviation Fuel 167 177 164 158 167 166 174 170 Other 415 489 400 383 422 414 449 431 ------------------------------------------------------------------------------------- ---------------------------------------- Total 2,245 2,300 2,198 2,232 2,245 2,147 2,349 2,247 ===================================================================================== ======================================== Petroleum Products Sales (MB/D) Gasoline 1,315 1,328 1,366 1,415 1,356 1,302 1,426 1,364 Distillates 570 538 544 562 553 642 680 662 Aviation Fuel 178 191 200 195 191 198 214 206 Other 517 573 553 613 564 461 566 514 ------------------------------------------------------------------------------------- ---------------------------------------- Total 2,580 2,630 2,663 2,785 2,664 2,603 2,886 2,746 ===================================================================================== ========================================
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R&M (continued) 2004 2005 --------------------------------------- -------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------- -------------------------------------- International - Consolidated - United Kingdom and Ireland Crude Oil Charge Input (MB/D) 289 197 291 298 269 294 259 277 Total Charge Input (MB/D) 299 216 300 308 280 307 266 286 Crude Oil Capacity Utilization (%) 94% 64% 100% 102% 90% 101% 89% 95% Clean Product Yield (%) 84% 81% 83% 81% 82% 79% 76% 78% - ---------------------------------------------------------------------------------------- -------------------------------------- International - Equity Affiliates - Net Share* Crude Oil Charge Input (MB/D) 120 112 134 140 127 134 143 138 Total Charge Input (MB/D) 121 113 138 145 130 137 147 142 Crude Oil Capacity Utilization (%) 87% 81% 99% 103% 92% 98% 105% 102% Clean Product Yield (%) 82% 83% 81% 81% 82% 83% 82% 82% ----------------------------------------------------------------------------------------- -------------------------------------- TOTAL INTERNATIONAL Crude Oil Charge Input (MB/D) 409 309 425 438 396 428 402 415 Total Charge Input (MB/D) 420 329 438 453 410 444 413 428 Crude Oil Capacity Utilization (%) 92% 69% 99% 102% 91% 100% 94% 97% Clean Product Yield (%) 84% 82% 82% 81% 82% 80% 78% 79% ----------------------------------------------------------------------------------------- -------------------------------------- Refined Products Production (MB/D) Gasoline 124 109 138 144 129 141 115 128 Distillates 181 136 190 190 174 186 178 182 Aviation Fuel 24 16 22 25 22 21 21 21 Other 81 57 89 94 80 95 96 96 ----------------------------------------------------------------------------------------- -------------------------------------- Total 410 318 439 453 405 443 410 427 ========================================================================================= ====================================== Petroleum Products Sales (MB/D) Gasoline 185 180 173 180 180 185 176 181 Distillates 228 184 207 222 210 221 212 217 Aviation Fuel 6 9 10 8 8 7 10 8 Other 82 67 82 83 79 82 79 80 ----------------------------------------------------------------------------------------- -------------------------------------- Total 501 440 472 493 477 495 477 486 ========================================================================================= ====================================== Worldwide - Including Net Share of Equity Affiliates Crude Oil Charge Input (MB/D) 2,514 2,428 2,436 2,443 2,455 2,385 2,535 2,461 Total Charge Input (MB/D) 2,679 2,631 2,648 2,662 2,656 2,585 2,758 2,671 Crude Oil Capacity Utilization (%) 96% 93% 94% 94% 94% 92% 97% 94% Clean Product Yield (%) 82% 80% 82% 84% 82% 82% 82% 82% ----------------------------------------------------------------------------------------- -------------------------------------- Refined Products Production (MB/D) Gasoline 1,183 1,152 1,198 1,216 1,188 1,109 1,186 1,147 Distillates 785 727 764 809 771 785 833 809 Aviation Fuel 191 193 186 183 189 187 195 191 Other 496 546 489 477 502 509 545 527 ----------------------------------------------------------------------------------------- -------------------------------------- Total 2,655 2,618 2,637 2,685 2,650 2,590 2,759 2,674 ========================================================================================= ====================================== Petroleum Products Sales (MB/D) Gasoline 1,500 1,508 1,539 1,595 1,536 1,487 1,602 1,545 Distillates 798 722 751 784 763 863 892 879 Aviation Fuel 184 200 210 203 199 205 224 214 Other 599 640 635 696 643 543 645 594 ----------------------------------------------------------------------------------------- -------------------------------------- Total 3,081 3,070 3,135 3,278 3,141 3,098 3,363 3,232 ========================================================================================= ====================================== * 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.
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LUKOIL INVESTMENT 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- LUKOIL Investment Net Income ($ Millions) - - - 74 74 110 148 258 ========================================================================== ======================================= Upstream Production* Net crude oil production (MB/D) - - - 150 38 190 215 203 Net natural gas production (MMCF/D) - - - 51 13 67 50 58 BOE Total (MBOE/D) - - - 159 40 201 223 213 ------------------------------------------------------------------------------------------------------------------- * Represents our estimated net share of LUKOIL's production. Industry Prices Crude Oil ($/bbl) Urals crude (CIF Mediterranean) - - - 38.82 38.82 43.21 48.49 45.87 -------------------------------------------------------------------------- --------------------------------------- Downstream Refinery Throughput* Crude Processed (MB/D) - - - 77 19 92 102 97 ------------------------------------------------------------------------------------------------------------------- * Represents our estimated net share of LUKOIL's crude processed.
MIDSTREAM 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- Midstream Net Income ($ Millions) 55 42 38 100 235 385 68 453 ========================================================================== ======================================= U.S. Equity Affiliate ($ Millions)* 33 33 26 51 143 359 51 410 -------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States 54 24 28 23 32 23 21 22 International 47 33 49 49 45 53 44 48 Equity Affiliates United States* 109 112 111 113 111 110 112 111 International 6 5 6 7 6 6 6 6 -------------------------------------------------------------------------- --------------------------------------- Total 216 174 194 192 194 192 183 187 ========================================================================== ======================================= * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS). Natural Gas Liquids Fractionated (MB/D) United States* 158 144 145 140 147 149 131 140 International 63 43 62 62 58 64 55 59 -------------------------------------------------------------------------- --------------------------------------- Total 221 187 207 202 205 213 186 199 ========================================================================== ======================================= * Excludes DEFS. Product Prices Weighted Average NGL ($/bbl)* Consolidated 25.68 26.42 31.03 34.40 29.38 31.95 32.49 32.22 DEFS 24.81 25.61 30.27 33.69 28.60 30.61 31.33 30.97 -------------------------------------------------------------------------- --------------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. DD&A ($ Millions) 13 9 11 10 43 9 8 17 -------------------------------------------------------------------------- ---------------------------------------
CHEMICALS 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- Chemicals Net Income (Loss) ($ Millions) 39 46 81 83 249 133 63 196 ========================================================================== ======================================= Industry Margins (Cents/Lb)* Ethylene industry cash margin 9.38 10.70 8.27 12.22 10.14 18.11 12.76 15.44 HDPE industry contract sales margin 9.43 9.21 9.23 11.68 9.89 12.09 12.01 12.05 Styrene industry contract sales margin 13.06 13.33 13.73 13.40 13.38 13.91 13.63 13.77 ------------------------------------------------------------------------------------------------------------------- * Prices, economics and views expressed by CMAI are strictly the opinion of CMAI and Purvin & Gertz and are based on information collected within the public sector and on assessments by CMAI and Purvin & Gertz staff utilizing reasonable care consistent with normal industry practice. CMAI and Purvin & Gertz make no guarantee or warranty and assume no liability as to their use.
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EMERGING BUSINESSES 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- Emerging Businesses Net Income (Loss) ($ Millions) (22) (29) (27) (24) (102) (8) (8) (16) ========================================================================== ======================================= Detail of Net Income (Loss) ($ Millions) Technology Solutions (4) (4) (3) (7) (18) (2) (4) (6) Gas-to-Liquids (9) (7) (9) (8) (33) (7) (7) (14) Power (4) (16) (8) (3) (31) 2 9 11 Other (5) (2) (7) (6) (20) (1) (6) (7) -------------------------------------------------------------------------- --------------------------------------- Total (22) (29) (27) (24) (102) (8) (8) (16) ========================================================================== =======================================
CORPORATE AND OTHER 2004 2005 ----------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- --------------------------------------- Corporate and Other Net Income (Loss) ($ Millions) (177) (156) (214) (225) (772) (195) (172) (367) ========================================================================== ======================================= Detail of Net Income (Loss) ($ Millions) Net interest expense (113) (143) (149) (109) (514) (101) (84) (185) Corporate overhead (48) (52) (51) (61) (212) (58) (46) (104) Discontinued operations 13 62 (5) (48) 22 (11) 7 (4) Merger-related costs (14) - - - (14) - - - Accounting change - - - - - - - - Other (15) (23) (9) (7) (54) (25) (49) (74) -------------------------------------------------------------------------- --------------------------------------- Total (177) (156) (214) (225) (772) (195) (172) (367) ========================================================================== ======================================= Before-Tax Net Interest Expense ($ Millions) Interest expense (260) (263) (222) (231) (976) (226) (219) (445) Capitalized interest 115 104 121 90 430 88 91 179 Interest revenue 16 12 8 11 47 25 24 49 Receivables monetization related (1) (1) 3 1 2 (1) - (1) Premium on early debt retirement - - (58) - (58) (9) - (9) -------------------------------------------------------------------------- --------------------------------------- (130) (148) (148) (129) (555) (123) (104) (227) ========================================================================== ======================================= Debt Total Debt ($ Millions) 17,109 15,619 15,486 15,002 15,002 14,012 14,013 14,013 Debt-to-Capital Ratio 32% 29% 28% 26% 26% 23% 22% 22% -------------------------------------------------------------------------- ---------------------------------------
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