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 ========================================================================== =======================================
Page 1 of 11
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% ========================================================================== =======================================
Page 2 of 11
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 ========================================================================== =======================================
Page 3 of 11
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 ===================================================================================== =======================================
Page 4 of 11
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 -------------------------------------------------------------------------- ---------------------------------------
Page 5 of 11
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 ================================================================================== ========================================
Page 6 of 11
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 -------------------------------------------------------------------------- ---------------------------------------
Page 7 of 11
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 ===================================================================================== ========================================
Page 8 of 11
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.
Page 9 of 11
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.
Page 10 of 11
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% -------------------------------------------------------------------------- ---------------------------------------
Page 11 of 11