EX-99.2 3 a5003527ex99_2.txt EXHIBIT 99.2 Exhibit 99.2 ConocoPhillips Houston, Texas 77079 Preliminary FINANCIAL HIGHLIGHTS
Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Revenues Sales and other operating revenues* $ 48,745 34,350 128,184 95,691 Equity in earnings of affiliates 872 389 2,626 980 Other income 42 2 381 173 --------- --------- --------- --------- 49,659 34,741 131,191 96,844 --------- --------- --------- --------- Costs and expenses Purchased crude oil, natural gas and products 34,508 23,100 88,603 63,198 Production and operating expenses 1,982 1,807 6,081 5,312 Selling, general and administrative expenses 612 529 1,690 1,513 Exploration expenses 140 205 432 511 Depreciation, depletion and amortization 1,049 938 3,075 2,768 Property impairments - 12 31 63 Taxes other than income taxes* 4,606 4,336 13,758 12,878 Accretion on discounted liabilities 46 49 135 126 Interest and debt expense 122 101 387 405 Foreign currency transaction losses (gains) 34 (4) 52 (53) Minority interests 6 8 21 29 --------- --------- --------- --------- 43,105 31,081 114,265 86,750 --------- --------- --------- --------- Income from continuing operations before income taxes 6,554 3,660 16,926 10,094 Provision for income taxes 2,750 1,649 7,068 4,467 --------- --------- --------- --------- Income from continuing operations 3,804 2,011 9,858 5,627 Income (loss) from discontinued operations (4) (5) (8) 70 --------- --------- --------- --------- Net income $ 3,800 2,006 9,850 5,697 ========= ========= ========= ========= Income per share of common stock (dollars)** Basic Continuing operations $ 2.73 1.45 7.06 4.08 Discontinued operations - - (0.01) 0.05 Net income $ 2.73 1.45 7.05 4.13 Diluted Continuing operations $ 2.68 1.43 6.94 4.03 Discontinued operations - - - 0.05 Net income $ 2.68 1.43 6.94 4.08 Average common shares outstanding (in thousands)** Basic 1,393,943 1,383,652 1,396,180 1,378,428 Diluted 1,417,796 1,403,432 1,419,898 1,397,038 * Includes excise, value added and other similar taxes on petroleum products sales: $ 4,292 4,079 12,785 12,073 ** 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 Nine Months Ended September 30 September 30 2005 2004 2005 2004 INCOME (LOSS) FROM CONTINUING OPERATIONS E&P United States $ 1,107 701 2,965 2,007 International 1,181 719 3,039 2,024 --------- --------- --------- --------- Total E&P 2,288 1,420 6,004 4,031 --------- --------- --------- --------- Midstream 88 38 541 135 --------- --------- --------- --------- R&M United States 1,096 505 2,602 1,642 International 294 203 598 348 --------- --------- --------- --------- Total R&M 1,390 708 3,200 1,990 --------- --------- --------- --------- LUKOIL Investment 267 - 525 - Chemicals 13 81 209 166 Emerging Businesses - (27) (16) (78) Corporate and other (242) (209) (605) (617) --------- --------- --------- --------- Consolidated $ 3,804 2,011 9,858 5,627 ========= ========= ========= ========= INCOME (LOSS) FROM DISCONTINUED OPERATIONS Corporate and other (4) (5) (8) 70 SUMMARY OF NET INCOME (LOSS) E&P United States $ 1,107 701 2,965 2,007 International 1,181 719 3,039 2,024 --------- --------- --------- --------- Total E&P 2,288 1,420 6,004 4,031 --------- --------- --------- --------- Midstream 88 38 541 135 --------- --------- --------- --------- R&M United States 1,096 505 2,602 1,642 International 294 203 598 348 --------- --------- --------- --------- Total R&M 1,390 708 3,200 1,990 --------- --------- --------- --------- LUKOIL Investment 267 - 525 - Chemicals 13 81 209 166 Emerging Businesses - (27) (16) (78) Corporate and other (246) (214) (613) (547) --------- --------- --------- --------- Net income $ 3,800 2,006 9,850 5,697 ========= ========= ========= =========
2 ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 INCOME FROM CONTINUING OPERATIONS Effective tax rate % 42.0 % 45.1 41.8 44.3 Millions of Dollars FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX E&P $ 2 (4) 6 15 Midstream - - 7 - R&M (13) (5) (49) 1 LUKOIL Investment (1) - (1) - Chemicals - - - - Emerging Businesses - (1) - - Corporate and other (23) 15 (27) 21 -------- -------- -------- -------- $ (35) 5 (64) 37 ======== ======== ======== ======== CASH FLOWS FROM OPERATING ACTIVITIES Income from continuing operations $ 3,804 2,011 9,858 5,627 Depreciation, depletion and amortization 1,049 938 3,075 2,768 Property impairments - 12 31 63 Dry hole costs and leasehold impairment 55 150 211 342 Accretion on discounted liabilities 46 49 135 126 Deferred income taxes 261 328 753 998 Undistributed equity earnings (463) (263) (1,682) (541) Net (gain) loss on asset dispositions (22) 6 (264) (82) Other 192 (30) 1 105 Working capital changes 1,177 1,267 841 (611) -------- -------- -------- -------- Net cash provided by continuing operations 6,099 4,468 12,959 8,795 Net cash provided by (used in) discontinued operations (3) (55) (6) (33) -------- -------- -------- -------- Net cash provided by operating activities $ 6,096 4,413 12,953 8,762 ======== ======== ======== ======== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $ 323 332 1,221 946 International 1,152 916 3,797 2,751 -------- -------- -------- -------- 1,475 1,248 5,018 3,697 Midstream 838 1 839 6 R&M 440 277 1,075 770 LUKOIL Investment 815 - 1,523 - Chemicals - - - - Emerging Businesses 2 19 5 74 Corporate and other* 56 49 113 112 -------- -------- -------- -------- $ 3,626 1,594 8,573 4,659 ======== ======== ======== ======== *Excludes discontinued operations OTHER At September 30, 2005 At December 31, 2004 Total debt $13,497 15,002 Common stockholders' equity $49,838 42,723
3 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS BY SEGMENT
Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 Thousands of Barrels Daily E&P Crude oil produced United States Alaska 281 253 296 293 Lower 48 56 50 60 51 -------- -------- -------- -------- 337 303 356 344 Norway 198 189 200 205 United Kingdom 56 59 59 64 Canada 22 24 23 25 China 22 25 23 28 Indonesia 10 14 16 15 Vietnam 30 35 27 32 Timor Sea 38 29 32 17 Other 53 55 54 60 -------- -------- -------- -------- Total consolidated 766 733 790 790 Equity affiliates 124 111 122 109 -------- -------- -------- -------- Total Worldwide 890 844 912 899 ======== ======== ======== ======== Syncrude 21 22 19 22 ======== ======== ======== ======== Natural gas liquids produced United States Alaska* 18 19 19 23 Lower 48 30 26 30 25 -------- -------- -------- -------- 48 45 49 48 Norway 10 8 9 8 Canada 10 10 10 11 Timor Sea 20 14 15 6 Other 4 10 5 8 -------- -------- -------- -------- Total Worldwide 92 87 88 81 ======== ======== ======== ======== * Includes reinjected volumes sold lease-to-lease. 8 10 7 14 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 173 164 169 166 Lower 48 1,218 1,220 1,194 1,226 -------- -------- -------- -------- 1,391 1,384 1,363 1,392 Norway 259 274 275 299 United Kingdom 588 720 717 807 Canada 429 425 422 430 Timor Sea 35 35 35 35 Indonesia 303 248 288 244 Vietnam 20 15 17 16 Other 74 78 77 75 -------- -------- -------- -------- Total consolidated 3,099 3,179 3,194 3,298 Equity affiliates 10 4 8 5 -------- -------- -------- -------- Total Worldwide 3,109 3,183 3,202 3,303 ======== ======== ======== ======== * Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 123 115 117 105 LUKOIL Investment Production (MBOE/D)* 266 - 231 - Refinery crude oil throughput (MB/D)* 138 - 110 - * Represents our estimated net share of LUKOIL.
4 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended September 30 September 30 2005 2004 2005 2004 E&P Per Unit Average sales prices Crude oil (per barrel) United States Alaska $ 58.70 40.48 50.54 36.41 Lower 48 50.00 39.56 44.83 35.21 Total U.S. 57.31 40.33 49.59 36.23 International 59.52 40.47 51.46 35.64 Total consolidated 58.49 40.41 50.61 35.90 Equity affiliates 45.25 26.19 37.45 23.43 Total Worldwide 56.64 38.78 48.80 34.40 Natural gas-lease (per MCF) United States Alaska 2.57 2.22 2.66 2.38 Lower 48 7.67 5.29 6.53 5.26 Total U.S. 7.48 5.19 6.40 5.14 International 5.60 3.98 5.25 3.97 Total consolidated 6.40 4.48 5.71 4.44 Equity affiliates 0.20 0.31 0.25 2.59 Total Worldwide 6.38 4.48 5.70 4.44 Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 23 28 22 35 International 5 49 34 43 Equity affiliates United States* 171 111 131 111 International 6 6 6 6 --------- --------- --------- --------- 205 194 193 195 ========= ========= ========= ========= * Represents 30.3 percent interest in Duke Energy Field Services LLC (DEFS), through June 30, 2005, and 50 percent interest beginning in July 2005. Per Barrel U.S. product prices Weighted average NGL** Consolidated $ 39.60 31.03 34.68 27.71 DEFS 38.31 30.27 33.42 26.90 **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 Nine Months Ended September 30 September 30 2005 2004 2005 2004 Thousands of Barrels Daily R&M United States Crude oil capacity 2,182 2,160 2,179 2,165 Crude oil runs 2,040 2,011 2,044 2,078 Refinery production 2,223 2,198 2,238 2,248 International* Crude oil capacity 428 428 428 441 Crude oil runs 431 425 420 381 Refinery production 448 439 434 389 U.S. Petroleum products outside sales Gasoline 1,397 1,366 1,376 1,337 Distillates 725 544 683 551 Aviation fuels 203 200 205 190 Other products 526 553 518 548 -------- -------- -------- -------- 2,851 2,663 2,782 2,626 International 470 472 481 470 -------- -------- -------- -------- 3,321 3,135 3,263 3,096 ======== ======== ======== ======== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $ 2.00 1.37 1.71 1.31 Automotive gasoline-retail 2.14 1.51 1.86 1.48 Distillates-wholesale 1.97 1.30 1.71 1.18
* Includes ConocoPhillips' share of equity affiliates. ** Excludes excise taxes. 6