-----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, BJQJeFvMCh++1KQ400dHoSKvNKz80K30daeuJu9e3yjMfpuyPa0nUywj0KlnNaO2 PmuQ5veasx98NZAJJ78WJA== 0001157523-06-010266.txt : 20061025 0001157523-06-010266.hdr.sgml : 20061025 20061025095043 ACCESSION NUMBER: 0001157523-06-010266 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20061025 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20061025 DATE AS OF CHANGE: 20061025 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: 061161684 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 a5257388.txt CONOCOPHILLIPS 8K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): October 25, 2006 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: [_] 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 October 25, 2006, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2006. 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. The press release contains a measure, "effective tax rate," that is not calculated in accordance with U.S. generally accepted accounting principles (GAAP). We have included this non-GAAP financial measure because, in management's opinion, excluding the third-quarter 2006 charge from United Kingdom tax legislation and the second-quarter 2006 favorable impact from tax legislation changes in Canada and Texas in calculating our effective tax rate is a better indicator of the company's ongoing effective tax rate and is therefore more useful in comparing the Company's effective tax rate with prior and future periods. Item 9.01 Financial Statements and Exhibits (c) Exhibits 99.1 -- Press release issued by ConocoPhillips on October 25, 2006. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CONOCOPHILLIPS /s/ Rand C. Berney ---------------------------------------------------------- Rand C. Berney Vice President and Controller October 25, 2006 EXHIBIT INDEX Exhibit No. Description 99.1 Press release issued by ConocoPhillips on October 25, 2006. 99.2 Financial and operational tables. 99.3 Supplemental financial information. EX-99.1 2 a5257388ex991.txt EXHIBIT 99.1 Exhibit 99.1 ConocoPhillips Reports Third-Quarter Net Income of $3.9 Billion or $2.31 Per Diluted Share Results include $0.37 per share reduction due to certain previously disclosed items HOUSTON--(BUSINESS WIRE)--Oct. 25, 2006--ConocoPhillips (NYSE:COP): Earnings at a glance Third Quarter Nine Months - ------------------------------------------------- -------------------- 2006 2005 2006 2005 - -------------------------------------- ---------- ---------- --------- Income from continuing operations $ 3,876 3,804 $ 12,353 9,858 million million million million Income (loss) from discontinued operations $ - (4) $ - (8) Net income $ 3,876 3,800 $ 12,353 9,850 - -------------------------------------- ---------- ---------- --------- Diluted income per share Income from continuing operations $ 2.31 2.68 $ 7.78 6.94 Net income $ 2.31 2.68 $ 7.78 6.94 - -------------------------------------- ---------- ---------- --------- Revenues(a) $ 48.4 48.7 $ 142.4 128.2 billion billion billion billion - -------------------------------------- ---------- ---------- --------- (a) Effective April 1, 2006, revenues no longer include the sales portion of buy/sell contracts, reflecting the adoption of EITF No. 04-13, "Accounting for Purchases and Sales of Inventory with the Same Counterparty." ConocoPhillips (NYSE:COP) today reported third-quarter net income of $3,876 million, or $2.31 per share, compared to $3,800 million, or $2.68 per share, for the same quarter in 2005. Revenues were $48.4 billion, versus $48.7 billion a year ago. "Overall, we had consistent operations for the quarter. We produced 2.47 million BOE per day, including an estimated 0.44 million BOE per day from our LUKOIL Investment segment," said Jim Mulva, chairman and chief executive officer. "Upstream results were negatively impacted by the unexpected partial shut-down of the partner-operated Prudhoe Bay oil field in Alaska, as well as planned downtime in other areas. "Our downstream crude oil capacity utilization rate improved to 95 percent, although we experienced downtime at our Wilhelmshaven and Wood River refineries. The improvement in utilization came from an overall decrease in turnaround activity and unplanned downtime during the quarter." Third-quarter net income was negatively impacted $0.37 per share by the following previously disclosed items: -- $400 million from new United Kingdom tax legislation impacting Exploration & Production (E&P), including $270 million related to the revaluation of deferred taxes and $130 million related to the company's operations for the first six months of 2006. -- $249 million impairment on certain Refining & Marketing (R&M) assets held for sale. -- $94 million from new Alaska tax legislation impacting the E&P segment related to the company's operations for April through June. -- $121 million net benefit from business interruption insurance, including $103 million related to the R&M segment. "We ended the quarter with debt of $27.8 billion and a debt-to-capital ratio of 25 percent," said Mulva. "During the quarter, we generated $6.2 billion in cash from operations; funded $3.8 billion in capital projects, investments and loans to affiliates; reduced debt by $1.7 billion; paid $600 million in dividends; and repurchased $250 million of ConocoPhillips common stock." For the first nine months of 2006, net income was $12,353 million, or $7.78 per share, versus $9,850 million, or $6.94 per share, for the same period a year ago. Revenues were $142.4 billion, versus $128.2 billion a year ago. The results for ConocoPhillips' business segments follow. Exploration and Production (E&P) Third-quarter financial results: E&P net income was $1,904 million, including the $494 million in charges associated with the U.K. and Alaska tax legislation noted above. Net income for the third quarter was down from $3,304 million in the second quarter of 2006 and $2,288 million in the third quarter of 2005. The decrease from the second quarter of 2006 reflects the negative impact of the tax legislation noted above and the absence of a $401 million second-quarter benefit related to Canadian tax legislation. Lower crude oil sales volumes and increased depreciation, depletion and amortization expense from the application of purchase accounting for the Burlington Resources acquisition at the operating-area level also negatively impacted net income. The decrease from the third quarter of 2005 primarily was due to the negative impact of recent tax legislation, partially offset by the inclusion of Burlington Resources' results. Daily production from the E&P segment, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 2.04 million barrels of oil equivalent (BOE) per day, a decline from 2.13 million BOE per day in the previous quarter and an increase from 1.52 million BOE per day in the third quarter of 2005. The decrease from the second quarter of 2006 primarily was due to the partial shut-down of the Prudhoe Bay field and lower volumes from the United Kingdom and Venezuela due to planned maintenance. The increase from the third quarter of 2005 primarily was due to the addition of the Burlington Resources assets and higher production from Libya and the Timor Sea, partially offset by lower production from the Prudhoe Bay field. Before-tax exploration expenses were $197 million in the third quarter of 2006, versus $134 million in the previous quarter and $140 million in the third quarter of 2005. Nine months financial results: E&P net income for the first nine months of 2006 was $7,761 million, up from $6,004 million in 2005, primarily from higher realized crude oil prices and the inclusion of Burlington Resources' results, partially offset by the net impact of recent tax legislation. Midstream Third-quarter financial results: The Midstream segment, which includes the company's 50 percent interest in Duke Energy Field Services, LLC (DEFS), reported net income of $169 million, up from $108 million in the previous quarter and up from $88 million in the third quarter of 2005. The increase from the previous quarter reflects the net impact of tax adjustments to gains on assets sold in 2005 and higher natural gas liquids prices. The increase from the third quarter of 2005 reflects a tax adjustment to the gain on assets sold in 2005 and higher natural gas liquids prices. Nine months financial results: Midstream net income for the first nine months of 2006 decreased to $387 million, from $541 million in 2005. The decrease primarily was due to the 2005 restructuring of ConocoPhillips' ownership in DEFS, partially offset by higher natural gas liquids prices. Refining and Marketing (R&M) Third-quarter financial results: R&M net income was $1,464 million, including a $249 million impairment on assets held for sale and a net benefit of $103 million from business interruption insurance, as noted above. Net income for the third quarter was down from $1,708 million in the previous quarter and up from $1,390 million in the third quarter of 2005. The decrease from the second quarter of 2006 primarily was the result of lower worldwide refining margins and the impairment on assets held for sale. This decrease was partially offset by higher worldwide marketing margins and domestic refining volumes, the business interruption insurance benefit and lower turnaround costs. The increase from the third quarter of 2005 primarily was due to higher worldwide marketing margins and domestic refining volumes and the business interruption insurance benefit. This increase was partially offset by lower worldwide refining margins, the impairment on assets held for sale, and higher depreciation expense and maintenance costs. The domestic refining crude oil capacity utilization rate for the third quarter was 96 percent, up from 91 percent in the previous quarter. The improvement primarily was due to the return to normal operations of the Trainer, Pa., refinery after an extended full plant turnaround, as well as the Lake Charles refinery in Westlake, La., which had second-quarter unplanned downtime. This improvement was partially offset by downtime at the Wood River refinery in Roxana, Ill., due to damage sustained during a severe storm. The Wood River refinery returned to normal operations during the quarter. The international crude oil capacity utilization rate was 89 percent, down from 94 percent in the previous quarter. The decrease primarily was due to planned downtime at the Wilhelmshaven, Germany, refinery. Worldwide, R&M's refining crude oil capacity utilization rate averaged 95 percent, compared with 91 percent in the previous quarter and 95 percent in the third quarter of 2005. Before-tax turnaround costs were $42 million in the third quarter of 2006, versus $115 million in the previous quarter and $53 million in the third quarter of 2005. Nine months financial results: R&M net income for the first nine months of 2006 increased to $3,562 million, compared with $3,200 million for the first nine months of 2005. The increased earnings were due to higher domestic refining and worldwide marketing margins and the business interruption insurance benefit. The increase was partially offset by the impairment on assets held for sale, lower domestic refining volumes and international refining margins, and higher depreciation expense and maintenance costs. The nine-month results for 2005 also included a gain on asset sales. LUKOIL Investment Third-quarter financial results: Net income was $487 million, up from $387 million in the previous quarter and up from $267 million in the third quarter of 2005. The results included ConocoPhillips' estimated weighted-average equity share of OAO LUKOIL's (LUKOIL) income for the third quarter, based on market indicators, historical production trends for LUKOIL and an adjustment reflecting the company's ownership interest based on shares outstanding in accordance with U.S. GAAP (second-quarter average of 830 million). The company's ownership interest in LUKOIL at the end of the third quarter was 19 percent of the 851 million authorized and issued shares. The increase in net income from the previous quarter mainly was due to the company's increased equity ownership and higher estimated commodity prices. The increase from the third quarter of 2005 primarily was due to the company's increased equity ownership, higher estimated volumes and commodity prices, and a net benefit from alignment of the company's estimate of second-quarter net income to LUKOIL's reported results. For the third quarter of 2006, ConocoPhillips estimated its equity share of LUKOIL production was 436,000 BOE per day and its share of LUKOIL daily refining crude oil throughput was 164,000 barrels per day. Nine months financial results: Net income for the first nine months of 2006 increased to $1,123 million, from $525 million in 2005. The increase primarily was due to the company's increased equity ownership, higher estimated prices and volumes, and a benefit from alignment of LUKOIL's estimated net income to actual results. Chemicals Third-quarter financial results: The Chemicals segment, which includes the company's 50 percent interest in Chevron Phillips Chemical Company LLC, reported net income of $142 million, compared with $103 million in the second quarter of 2006 and $13 million in the third quarter of 2005. The increase from the second quarter primarily was attributed to higher margins, a business interruption insurance benefit and the negative impact of tax legislation on the previous quarter results. The increase from the third quarter of 2005 was largely due to higher margins, lower utility costs, a business interruption insurance benefit, and 2005 hurricane-related downtime. Nine months financial results: Chemicals net income for the first nine months of 2006 increased to $394 million, compared with $209 million in the first nine months of 2005. The increase primarily was due to higher olefins and polyolefins margins and volumes and a business interruption insurance benefit. Emerging Businesses The Emerging Businesses segment had net income of $11 million in the third quarter of 2006, compared with a net loss of $12 million in the second quarter of 2006 and slightly positive results in the third quarter of 2005. The increase from the previous quarter primarily was due to the second-quarter write-down of a domestic power asset. The increase from the third quarter of 2005 was due to improved international power generation results. Corporate and Other Third-quarter Corporate expenses, after tax, were $301 million, down from $412 million in the previous quarter and up from $246 million in the third quarter of 2005. The decrease from the second quarter of 2006 primarily was due to favorable foreign exchange impacts and lower interest expense. The increase from the third quarter of 2005 is attributed to higher interest expense and acquisition-related charges. This increase was partially offset by favorable foreign exchange impacts and the absence in 2006 of premiums incurred in 2005 on the early retirement of debt. Total debt at the end of the third quarter was $27.8 billion, a reduction of $1.7 billion from the end of the second quarter. The company's debt-to-capital ratio was 25 percent, compared to 27 percent at the end of the second quarter. The cash balance was $0.7 billion at the end of the third quarter. The company's third-quarter tax provision included the $400 million charge from the U.K. tax legislation. Excluding this item, the tax provision was $3.7 billion, resulting in an effective tax rate of 46.1 percent, versus 51.2 percent including this item. This is compared with 45.1 percent in the previous quarter excluding second-quarter tax legislation impacts in Canada and Texas, and 40.3 percent including such impacts. Outlook Mr. Mulva concluded: "We continue to progress our long-term strategic investment plans. Our 2006 capital program remains on course, including the completion of our planned equity investment in LUKOIL. "Our asset rationalization program, anticipated to generate proceeds of approximately $3 billion to $4 billion when it is completed next year, is advancing as planned. We are actively marketing a number of assets identified for disposition. For example, in the third quarter we sold our remaining interest in the Permian Basin Royalty Trust. "We are pleased to have reached an agreement with EnCana Corporation (EnCana) to create an integrated, North American heavy oil business. This venture builds on our current and planned heavy-oil expansion work in our Wood River and Borger refineries and makes available a stable, long-term supply of bitumen. The venture also is expected to enhance ConocoPhillips' near- and long-term production growth, providing a steady, stable source of resource additions. We look forward to working closely with EnCana to make this venture a success. "Looking ahead to the fourth quarter, we expect our upstream production to increase, reflecting the resumption of operations at Prudhoe Bay, normal seasonality, and less scheduled downtime in the United Kingdom and Venezuela, partially offset by production sharing contract impacts in the Timor Sea. Downstream, we expect crude oil capacity utilization to be similar to the third quarter. "Our full-year exploration expense is expected to be approximately $800 million. Downstream, we expect full-year turnaround costs to be approximately $400 million." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 38,300 employees, $164 billion of assets, and $190 billion of year-to-date annualized revenues as of September 30, 2006. For more information, go to www.conocophillips.com. ConocoPhillips' quarterly conference call is scheduled for 11 a.m. Eastern time today. To listen to the conference call and to view related presentation materials, go to www.conocophillips.com and click on the "Investor Information" link. For financial and operational tables and detailed supplemental information, go to http://www.conocophillips.com/investor/reports/index.htm CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Forward-looking statements relate to future events and anticipated results of operations, business strategies, and other aspects of our operations or operating results. In many cases you can identify forward-looking statements by terminology such as "anticipate," "estimate," "believe," "continue," "could," "intend," "may," "plan," "potential," "predict," "should," "will," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, there can be no assurance that such expectation or belief will result or be achieved. The actual results of operations can and will be affected by a variety of risks and other matters including, but not limited to, crude oil and natural gas prices; refining and marketing margins; potential failure to achieve, and potential delays in achieving expected reserves or production levels from existing and future oil and gas development projects due to operating hazards, drilling risks, and the inherent uncertainties in interpreting engineering data relating to underground accumulations of oil and gas; unsuccessful exploratory drilling activities; lack of exploration success; potential disruption or unexpected technical difficulties in developing new products and manufacturing processes; potential failure of new products to achieve acceptance in the market; unexpected cost increases or technical difficulties in constructing or modifying company manufacturing or refining facilities; unexpected difficulties in manufacturing, transporting or refining synthetic crude oil; international monetary conditions and exchange controls; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; our ability to successfully negotiate and execute final definitive agreements with EnCana; general domestic and international economic and political conditions, as well as changes in tax and other laws applicable to our business. Other factors that could cause actual results to differ materially from those described in the forward-looking statements include other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission (SEC). Unless legally required, ConocoPhillips undertakes no obligation to update publicly any 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. The company uses certain terms in this release, such as "including Canadian Syncrude," and "resources" that the SEC's guidelines strictly prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the disclosures in the company's periodic filings with the SEC, available from the company at 600 North Dairy Ashford Road, Houston, Texas 77079 and the company's Web site at www.conocophillips.com/investor/sec. This information also can be obtained from the SEC by calling 1-800-SEC-0330. CONTACT: ConocoPhillips Becky Johnson, 281-293-6743 (media) or Gary Russell, 212-207-1996 (investors) EX-99.2 3 a5257388ex992.txt EXHIBIT 99.2 Exhibit 99.2 FINANCIAL AND OPERATIONAL TABLES Preliminary FINANCIAL HIGHLIGHTS
Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- Revenues and other income Sales and other operating revenues* $ 48,393 48,745 142,448 128,184 Equity in earnings of affiliates 1,196 872 3,320 2,626 Other income 314 42 538 381 ----------- ------ ------- ------- 49,903 49,659 146,306 131,191 ----------- ------ ------- ------- Costs and expenses Purchased crude oil, natural gas and products 30,869 34,508 93,772 88,603 Production and operating expenses 2,640 1,982 7,549 6,081 Selling, general and administrative expenses 650 612 1,826 1,690 Exploration expenses 197 140 443 432 Depreciation, depletion and amortization 2,137 1,049 5,282 3,075 Impairments 267 -- 317 31 Taxes other than income taxes* 4,853 4,606 13,661 13,758 Accretion on discounted liabilities 74 46 207 135 Interest and debt expense 308 122 783 387 Foreign currency transaction losses (gains) (50) 34 (10) 52 Minority interests 21 6 60 21 ----------- ------ ------- ------- 41,966 43,105 123,890 114,265 ----------- ------ ------- ------- Income from continuing operations before income taxes 7,937 6,554 22,416 16,926 Provision for income taxes 4,061 2,750 10,063 7,068 ----------- ------ ------- ------- Income from continuing operations 3,876 3,804 12,353 9,858 Income (loss) from discontinued operations -- (4) -- (8) ----------- ------ ------- ------- Net income $ 3,876 3,800 12,353 9,850 =========== ====== ======= ======== Income per share of common stock (dollars) Basic Continuing operations $ 2.35 2.73 7.90 7.06 Discontinued operations -- -- -- (0.01) Net income $ 2.35 2.73 7.90 7.05 Diluted Continuing operations $ 2.31 2.68 7.78 6.94 Discontinued operations -- -- -- -- Net income $ 2.31 2.68 7.78 6.94 Average common shares outstanding (in thousands) Basic 1,652,623 1,393,943 1,564,423 1,396,180 Diluted 1,675,839 1,417,796 1,587,892 1,419,898 *Includes excise taxes on petroleum products sales: $ 4,098 4,292 12,010 12,785
1 Preliminary SELECTED FINANCIAL DATA
Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- INCOME (LOSS) FROM CONTINUING OPERATIONS E&P United States $ 995 1,107 3,476 2,965 International 909 1,181 4,285 3,039 ------- ------- ----- ----- Total E&P 1,904 2,288 7,761 6,004 ------- ------- ----- ----- Midstream 169 88 387 541 ------- ------- ----- ----- R&M United States 1,444 1,096 3,174 2,602 International 20 294 388 598 ------- ------- ----- ----- Total R&M 1,464 1,390 3,562 3,200 ------- ------- ----- ----- LUKOIL Investment 487 267 1,123 525 Chemicals 142 13 394 209 Emerging Businesses 11 -- 7 (16) Corporate and other (301) (242) (881) (605) ------- ------- ----- ----- Consolidated $ 3,876 3,804 12,353 9,858 ======= ======= ====== ===== INCOME (LOSS) FROM DISCONTINUED OPERATIONS Corporate and other $ -- (4) -- (8) SUMMARY OF NET INCOME (LOSS) E&P United States $ 995 1,107 3,476 2,965 International 909 1,181 4,285 3,039 ------- ------- ----- ----- Total E&P 1,904 2,288 7,761 6,004 ------- ------- ----- ----- Midstream 169 88 387 541 ------- ------- ----- ----- R&M United States 1,444 1,096 3,174 2,602 International 20 294 388 598 ------- ------- ----- ----- Total R&M 1,464 1,390 3,562 3,200 ------- ------- ----- ----- LUKOIL Investment 487 267 1,123 525 Chemicals 142 13 394 209 Emerging Businesses 11 -- 7 (16) Corporate and other (301) (246) (881) (613) ------- ------- ----- ----- Net Income $ 3,876 3,800 12,353 9,850 ======= ======= ====== =====
2 Preliminary SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- INCOME FROM CONTINUING OPERATIONS Effective tax rate % 51.2 % 42.0 44.9 41.8 Millions of Dollars FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX E&P $ (20) 2 (47) 6 Midstream - - - 7 R&M (6) (13) 25 (49) LUKOIL Investment 1 (1) 2 (1) Chemicals - - - - Emerging Businesses - - - - Corporate and other 48 (23) 4 (27) -------- ----- ------ ----- $ 23 (35) (16) (64) ======== ===== ====== ===== CASH FLOWS FROM OPERATING ACTIVITIES Income from continuing operations $ 3,876 3,804 12,353 9,858 Depreciation, depletion and amortization 2,137 1,049 5,282 3,075 Impairments 267 - 317 31 Dry hole costs and leasehold impairments 56 55 141 211 Accretion on discounted liabilities 74 46 207 135 Deferred taxes 495 261 273 753 Undistributed equity earnings (253) (463) (1,007) (1,682) Net gain on asset dispositions (8) (22) (64) (264) Other (282) 192 (296) 1 Working capital adjustments (127) 1,177 (1,327) 841 -------- ----- ------ ----- Net cash provided by continuing operations 6,235 6,099 15,879 12,959 Net cash provided by discontinued operations - (3) - (6) Net cash provided by operating activities $ 6,235 6,096 15,879 12,953 ======== ===== ====== ===== CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $ 828 323 2,003 1,221 International 1,626 1,152 4,829 3,797 -------- ----- ------ ----- 2,454 1,475 6,832 5,018 Midstream - 838 2 839 R&M 374 440 2,484 1,075 LUKOIL Investment 702 815 1,962 1,523 Chemicals - - - - Emerging Businesses 6 2 46 5 Corporate and other 61 56 187 113 -------- ----- ------ ----- $ 3,597 3,626 11,513 8,573 ======== ===== ====== ===== OTHER At September 30, 2006 At December 31, 2005 Total debt $ 27,807 12,516 Common stockholders' equity $ 80,477 52,731
3 Preliminary OPERATING HIGHLIGHTS BY SEGMENT
Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- Thousands of Barrels Daily E&P Crude oil produced United States Alaska 234 281 265 296 Lower 48 119 56 101 60 --- --- --- --- 353 337 366 356 Norway 190 198 190 200 United Kingdom 50 56 56 59 Canada 26 22 25 23 China 36 22 32 23 Indonesia 11 10 13 16 Vietnam 24 30 25 27 Timor Sea 40 38 39 32 Libya 71 -- 49 -- Other 64 53 60 54 --- --- --- --- Total consolidated 865 766 855 790 Equity affiliates 104 124 117 122 --- --- --- --- Total Worldwide 969 890 972 912 === === === === Syncrude 23 21 20 19 === === === === Natural gas liquids produced United States Alaska* 11 18 18 19 Lower 48 75 30 58 30 --- --- --- --- 86 48 76 49 Norway 9 10 9 9 Canada 28 10 23 10 Timor Sea 20 20 20 15 Other 3 4 4 5 --- --- --- --- Total Worldwide 146 92 132 88 === === === === *Includes reinjected volumes sold lease-to-lease. 7 8 11 7 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 123 173 150 169 Lower 48 2,320 1,218 1,953 1,194 ----- ----- ----- ----- 2,443 1,391 2,103 1,363 Norway 260 259 263 275 United Kingdom 665 588 770 717 Canada 1,154 429 930 422 China 8 -- 6 -- Timor Sea 300 35 232 35 Indonesia 342 303 320 288 Vietnam 20 20 21 17 Other 187 74 173 77 ----- ----- ----- ----- Total consolidated 5,379 3,099 4,818 3,194 Equity affiliates 8 10 9 8 ----- ----- ----- ----- Total Worldwide 5,387 3,109 4,827 3,202 ===== ===== ===== ===== *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 522 123 407 117 LUKOIL Investment Production (MBOE/D)* 436 266 388 231 Refinery crude oil throughput (MB/D)* 164 138 165 110 *Represents our estimated net share of LUKOIL.
4 Preliminary OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- E&P Per Unit Average sales prices Crude oil (per barrel) United States Alaska $ 69.66 58.70 64.48 50.54 Lower 48 62.45 50.00 59.21 44.83 Total U.S. 67.25 57.31 63.05 49.59 International 67.45 59.52 65.27 51.46 Total consolidated 67.37 58.49 64.30 50.61 Equity affiliates* 46.98 45.25 47.36 37.45 Total Worldwide 65.04 56.64 62.18 48.80 Natural gas-lease (per MCF) United States Alaska 3.36 2.57 3.47 2.66 Lower 48 6.00 7.67 6.25 6.53 Total U.S. 5.98 7.48 6.21 6.40 International 5.87 5.60 6.23 5.25 Total consolidated 5.92 6.40 6.22 5.71 Equity affiliates* 0.32 0.20 0.30 0.25 Total Worldwide 5.91 6.38 6.21 5.70 *Excludes our equity share of LUKOIL reported in the LUKOIL Investment segment. Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 23 23 23 22 International - 5 - 34 Equity affiliates United States** 180 171 180 131 International 7 6 6 6 --- --- --- --- 210 205 209 193 === === === === **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 $ 44.10 39.60 41.16 34.68 DEFS 43.00 38.31 40.49 33.42 **Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by naural-gas-liquids component and location mix.
5
Three Months Ended Nine Months Ended September 30 September 30 2006 2005 2006 2005 ---- ---- ---- ---- Thousands of Barrels Daily R&M United States Crude oil capacity 2,208 2,182 2,208 2,179 Crude oil runs 2,127 2,040 1,990 2,044 Refinery production 2,334 2,223 2,173 2,238 International* Crude oil capacity 693 428 637 428 Crude oil runs 617 431 586 420 Refinery production 643 448 613 434 U.S. Petroleum products outside sales Automotive gasoline 1,369 1,397 1,309 1,376 Distillates 668 725 638 683 Aviation fuels 180 203 189 205 Other products 519 526 530 518 ----- ----- ----- ----- 2,736 2,851 2,666 2,782 International 749 470 772 481 ----- ----- ----- ----- 3,485 3,321 3,438 3,263 ===== ===== ===== ===== Per Gallon U.S. Average sales prices** Automotive gasoline-wholesale $ 2.27 2.00 2.13 1.71 Automotive gasoline-retail 2.46 2.14 2.28 1.86 Distillates-wholesale 2.31 1.97 2.15 1.71 *Includes ConocoPhillips' share of equity affiliates, except for our share of LUKOIL, which is reported in the LUKOIL Investment segment. **Excludes excise taxes.
6 EX-99.3 4 a5257388ex993.txt EXHIBIT 99.3 Exhibit 99.3
SUPPLEMENTAL FINANCIAL INFORMATION CONOCOPHILLIPS ================================================================================ SUMMARY OF NET INCOME (LOSS) BY SEGMENT Millions of Dollars ------------------------------------------------------------------------------------------- 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- Income (Loss) from Continuing Operations U.S. E&P 892 966 1,107 1,325 4,290 1,181 1,300 995 3,476 International E&P 895 963 1,181 1,105 4,144 1,372 2,004 909 4,285 - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P 1,787 1,929 2,288 2,430 8,434 2,553 3,304 1,904 7,761 - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream 385 68 88 147 688 110 108 169 387 - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M 570 936 1,096 805 3,407 297 1,433 1,444 3,174 International R&M 130 174 294 251 849 93 275 20 388 - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M 700 1,110 1,390 1,056 4,256 390 1,708 1,464 3,562 - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment 110 148 267 189 714 249 387 487 1,123 Chemicals 133 63 13 114 323 149 103 142 394 Emerging Businesses (8) (8) - (4) (20) 8 (12) 11 7 Corporate and Other (184) (179) (242) (150) (755) (168) (412) (301) (881) - ------------------------------------------------------------------------------------- -------------------------------------------- Consolidated 2,923 3,131 3,804 3,782 13,640 3,291 5,186 3,876 12,353 ===================================================================================== ============================================ Cumulative Effect of Accounting Changes U.S. E&P - - - (2) (2) - - - - International E&P - - - (2) (2) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P - - - (4) (4) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream - - - - - - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M - - - (78) (78) - - - - International R&M - - - (5) (5) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M - - - (83) (83) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment - - - - - - - - - Chemicals - - - - - - - - - Emerging Businesses - - - (1) (1) - - - - Corporate and Other - - - - - - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Consolidated - - - (88) (88) - - - - ===================================================================================== ============================================ Income (Loss) from Discontinued Operations Corporate and Other (11) 7 (4) (15) (23) - - - - ===================================================================================== ============================================ Net Income (Loss) U.S. E&P 892 966 1,107 1,323 4,288 1,181 1,300 995 3,476 International E&P 895 963 1,181 1,103 4,142 1,372 2,004 909 4,285 - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P 1,787 1,929 2,288 2,426 8,430 2,553 3,304 1,904 7,761 - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream 385 68 88 147 688 110 108 169 387 - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M 570 936 1,096 727 3,329 297 1,433 1,444 3,174 International R&M 130 174 294 246 844 93 275 20 388 - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M 700 1,110 1,390 973 4,173 390 1,708 1,464 3,562 - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment 110 148 267 189 714 249 387 487 1,123 Chemicals 133 63 13 114 323 149 103 142 394 Emerging Businesses (8) (8) - (5) (21) 8 (12) 11 7 Corporate and Other (195) (172) (246) (165) (778) (168) (412) (301) (881) - ------------------------------------------------------------------------------------- -------------------------------------------- Consolidated 2,912 3,138 3,800 3,679 13,529 3,291 5,186 3,876 12,353 ===================================================================================== ============================================
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CONOCOPHILLIPS ================================================================================ INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Millions of Dollars ------------------------------------------------------------------------------------------- 2005 2006 --------------------------------------------- -------------------------------------------- 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 1,388 1,504 1,728 2,019 6,639 1,853 2,062 1,598 5,513 International E&P 2,020 2,152 2,567 2,550 9,289 2,862 3,814 3,460 10,136 - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P 3,408 3,656 4,295 4,569 15,928 4,715 5,876 5,058 15,649 - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream 449 107 138 208 902 173 187 214 574 - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M 901 1,485 1,766 1,379 5,531 512 2,260 2,282 5,054 International R&M 160 203 368 330 1,061 112 343 107 562 - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M 1,061 1,688 2,134 1,709 6,592 624 2,603 2,389 5,616 - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment 115 153 275 196 739 257 398 496 1,151 Chemicals 187 84 (3) 148 416 209 134 191 534 Emerging Businesses (13) (13) (2) (10) (38) 9 (20) 14 3 Corporate and Other (267) (243) (283) (199) (992) (190) (496) (425) (1,111) - ------------------------------------------------------------------------------------- -------------------------------------------- Consolidated 4,940 5,432 6,554 6,621 23,547 5,797 8,682 7,937 22,416 ===================================================================================== ============================================ Income from Continuing Operations Effective Tax Rates U.S. E&P 35.7% 35.8% 35.9% 34.4% 35.4% 36.3% 37.0% 37.7% 36.9% International E&P 55.7% 55.3% 54.0% 56.7% 55.4% 52.1% 47.5% 73.7% 57.7% - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P 47.6% 47.2% 46.7% 46.8% 47.0% 45.9% 43.8% 62.4% 50.4% - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream 14.3% 36.4% 36.2% 29.3% 23.7% 36.4% 42.2% 21.0% 32.6% - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M 36.7% 37.0% 37.9% 41.6% 38.4% 42.0% 36.6% 36.7% 37.2% International R&M 18.8% 14.3% 20.1% 23.9% 20.0% 17.0% 19.8% 81.3% 31.0% - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M 34.0% 34.2% 34.9% 38.2% 35.4% 37.5% 34.4% 38.7% 36.6% - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment 4.3% 3.3% 2.9% 3.6% 3.4% 3.1% 2.8% 1.8% 2.4% Chemicals 28.9% 25.0% -- 23.0% 22.4% 28.7% 23.1% 25.7% 26.2% Emerging Businesses 38.5% 38.5% -- 60.0% 47.4% 11.1% 40.0% 21.4% -- Corporate and Other 31.1% 26.3% 14.5% 24.6% 23.9% 11.6% 16.9% 29.2% 20.7% - ------------------------------------------------------------------------------------- -------------------------------------------- Consolidated 40.8% 42.4% 42.0% 42.9% 42.1% 43.2% 40.3% 51.2% 44.9% ===================================================================================== ============================================
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CONOCOPHILLIPS ================================================================================ CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX) Millions of Dollars ------------------------------------------------------------------------------------------- 2005 2006 --------------------------------------------- -------------------------------------------- 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 - 15 - 15 Impairments - - - - - - (26) - (26) Insurance premium adjustments - (5) (4) (8) (17) (2) - (5) (7) Pending claims and settlements - 15 - (23) (8) - - 18 18 Business interruption insurance claims recovery - - - - - - - 15 15 Enacted tax legislation - - - - - - 2 - 2 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 90 10 (4) (31) 65 (2) (9) 28 17 - ------------------------------------------------------------------------------------- -------------------------------------------- International E&P Gain (loss) on asset sales - 15 - - 15 - 25 - 25 Insurance premium adjustments - (10) (12) (19) (41) (10) - (10) (20) International tax law changes - - - 38 38 - 401 (270) 131 Impairments - - - - - - - (4) (4) Business interruption insurance claims recovery - - - - - - - 11 11 Pending claims and settlements - - - - - - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Total - 5 (12) 19 12 (10) 426 (273) 143 - ------------------------------------------------------------------------------------- -------------------------------------------- Total E&P 90 15 (16) (12) 77 (12) 417 (245) 160 - ------------------------------------------------------------------------------------- -------------------------------------------- Midstream Impairments (6) (7) - - (13) - - - - DEFS' sale of TEPPCO general partnership 306 - - - 306 - - 30 30 Enacted tax legislation - - - - - - (6) - (6) - ------------------------------------------------------------------------------------- -------------------------------------------- Total 300 (7) - - 293 - (6) 30 24 - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. R&M Gain (loss) on asset sales 31 - - - 31 - - - - Impairments - - - - - - - (35) (35) Insurance premium adjustments - (7) (9) (14) (30) (6) - (7) (13) Discontinuation of a marketing incentive program - - (16) - (16) - - - - Hurricanes impact on maintenance & repairs - - - (57) (57) - - - - Business interruption insurance claims recovery - - - - - - - 111 111 Pending claims and settlements - - - - - - - - - Enacted tax legislation - - - - - - 34 - 34 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 31 (7) (25) (71) (72) (6) 34 69 97 - ------------------------------------------------------------------------------------- -------------------------------------------- International R&M Gain (loss) on asset sales - 25 - - 25 - - - - Impairments - - - - - - - (214) (214) Insurance premium adjustments - - - - - (1) - (1) (2) - ------------------------------------------------------------------------------------- -------------------------------------------- Total - 25 - - 25 (1) - (215) (216) - ------------------------------------------------------------------------------------- -------------------------------------------- Total R&M 31 18 (25) (71) (47) (7) 34 (146) (119) - ------------------------------------------------------------------------------------- -------------------------------------------- LUKOIL Investment Ownership interest adjustment - - - - - - - 23 23 - ------------------------------------------------------------------------------------- -------------------------------------------- Total - - - - - - - 23 23 - ------------------------------------------------------------------------------------- -------------------------------------------- Chemicals Business interruption insurance claims recovery - - - - - - - 7 7 Enacted tax legislation - - - - - - (5) - (5) - ------------------------------------------------------------------------------------- -------------------------------------------- Total - - - - - - (5) 7 2 - ------------------------------------------------------------------------------------- -------------------------------------------- Emerging Businesses Property write-down - - - - - - (14) - (14) - ------------------------------------------------------------------------------------- -------------------------------------------- Total - - - - - - (14) - (14) - ------------------------------------------------------------------------------------- -------------------------------------------- Corporate and Other Acquisition-related expenses - - - - - (5) (39) (32) (76) Premium on early debt retirement (8) - (42) (42) (92) - - - - Pending claims and settlements - - - - - (15) - - (15) Canada tax law change - - - - - - (10) - (10) - ------------------------------------------------------------------------------------- -------------------------------------------- Total (8) - (42) (42) (92) (20) (49) (32) (101) - ------------------------------------------------------------------------------------- -------------------------------------------- Total Company 413 26 (83) (125) 231 (39) 377 (363) (25) ===================================================================================== ============================================
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CONOCOPHILLIPS ================================================================================ CASH FLOW INFORMATION Millions of Dollars ------------------------------------------------------------------------------------------- 2005 2006 --------------------------------------------- -------------------------------------------- 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 2,923 3,131 3,804 3,782 13,640 3,291 5,186 3,876 12,353 DD&A and property impairments 1,063 994 1,049 1,189 4,295 1,180 2,015 2,404 5,599 Dry hole costs and leasehold impairments 109 47 55 138 349 38 47 56 141 Accretion on discounted liabilities 48 41 46 58 193 60 73 74 207 Deferred income taxes 123 369 261 348 1,101 168 (390) 495 273 Undistributed equity earnings (805) (414) (463) (92) (1,774) (67) (687) (253) (1,007) Net gain on asset dispositions (177) (65) (22) (14) (278) (3) (53) (8) (64) Other (78) (113) 192 (140) (139) (203) 189 (282) (296) Net working capital changes 888 (1,224) 1,177 (595) 246 336 (1,536) (127) (1,327) Discontinued operations (5) 2 (3) 1 (5) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Net Cash Provided by Operating Activities 4,089 2,768 6,096 4,675 17,628 4,800 4,844 6,235 15,879 - ------------------------------------------------------------------------------------- -------------------------------------------- Cash Flows from Investing Activities Capital expenditures and investments*: E&P (1,206) (2,337) (1,475) (1,666) (6,684) (2,206) (2,172) (2,454) (6,832) Midstream (1) - (838) - (839) (1) (1) - (2) R&M (275) (360) (440) (663) (1,738) (1,635) (475) (374) (2,484) LUKOIL Investment (324) (384) (815) (637) (2,160) (612) (648) (702) (1,962) Chemicals - - - - - - - - - Emerging Businesses 4 (7) (2) - (5) (12) (28) (6) (46) Corporate and Other (20) (37) (56) (81) (194) (48) (78) (61) (187) - ------------------------------------------------------------------------------------- -------------------------------------------- Total capital expend. & investments (1,822) (3,125) (3,626) (3,047) (11,620) (4,514) (3,402) (3,597) (11,513) Acquisition of Burlington Resources Inc.* - - - - - (14,190) (94) (1) (14,285) Proceeds from asset dispositions 87 221 300 160 768 5 68 173 246 Long-term advances to/collections from affiliates and other investments 25 4 (58) (135) (164) (115) (151) (251) (517) Discontinued operations - - - - - - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- Net Cash Used for Investing Activities (1,710) (2,900) (3,384) (3,022) (11,016) (18,814) (3,579) (3,676) (26,069) - ------------------------------------------------------------------------------------- -------------------------------------------- Cash Flows from Financing Activities Net issuance (repayment) of debt (986) (13) (513) (1,038) (2,550) 15,324 (2,756) (1,630) 10,938 Issuance of stock 155 108 114 25 402 40 64 41 145 Repurchase of stock (194) (382) (589) (759) (1,924) - (425) (250) (675) Dividends (348) (432) (430) (429) (1,639) (496) (595) (593) (1,684) Other 64 33 (10) (60) 27 (27) (20) (76) (123) - ------------------------------------------------------------------------------------- -------------------------------------------- Net Cash Provided by (Used for) Financing Activities (1,309) (686) (1,428) (2,261) (5,684) 14,841 (3,732) (2,508) 8,601 - ------------------------------------------------------------------------------------- -------------------------------------------- Effect of Exchange Rate Changes (36) (62) (22) 19 (101) (33) 113 (9) 71 - ------------------------------------------------------------------------------------- -------------------------------------------- Net Change in Cash and Cash Equivalents 1,034 (880) 1,262 (589) 827 794 (2,354) 42 (1,518) Cash and cash equivalents at beginning of period 1,387 2,421 1,541 2,803 1,387 2,214 3,008 654 2,214 - ------------------------------------------------------------------------------------- -------------------------------------------- Cash and Cash Equivalents at End of Period 2,421 1,541 2,803 2,214 2,214 3,008 654 696 696 ===================================================================================== ============================================ * Net of cash acquired.
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CONOCOPHILLIPS ================================================================================ TOTAL E&P 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- E&P Net Income ($ Millions) 1,787 1,929 2,288 2,426 8,430 2,553 3,304 1,904 7,761 ===================================================================================== ============================================ Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 1,600 1,537 1,521 1,590 1,562 1,610 2,134 2,036 1,929 - ------------------------------------------------------------------------------------- -------------------------------------------- E&P segment plus LUKOIL Investment segment:1,801 1,760 1,787 1,883 1,808 1,932 2,537 2,472 2,317 - ------------------------------------------------------------------------------------- -------------------------------------------- Crude Oil and Condensate (MB/D) Consolidated 822 780 766 777 786 777 924 865 855 Equity affiliates 120 123 124 116 121 126 121 104 117 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 942 903 890 893 907 903 1,045 969 972 ===================================================================================== ============================================ Sales of crude oil produced (MB/D) 940 932 883 916 918 913 1,040 953 969 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids (MB/D) 94 80 92 99 91 97 152 146 132 - ----------------------------------------------------------------------------------------------------------------------------------- Natural Gas (MMCF/D) Consolidated 3,295 3,191 3,099 3,468 3,263 3,554 5,498 5,379 4,818 Equity affiliates 5 7 10 3 7 11 10 8 9 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 3,300 3,198 3,109 3,471 3,270 3,565 5,508 5,387 4,827 ===================================================================================== ============================================ Canadian Syncrude (MB/D) 14 21 21 20 19 16 19 23 20 - ------------------------------------------------------------------------------------- -------------------------------------------- Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 49.70 53.03 63.05 59.99 56.44 63.28 70.40 70.38 68.02 Brent dated 47.50 51.59 61.54 56.90 54.38 61.75 69.62 69.49 66.96 Natural Gas ($/mmbtu) Henry Hub -- First of Month 6.27 6.74 8.53 13.00 8.64 9.01 6.80 6.58 7.47 - ------------------------------------------------------------------------------------- -------------------------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 44.89 48.88 58.49 55.06 51.74 58.97 65.89 67.37 64.30 Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 52.28 46.98 47.36 Total 43.15 46.93 56.64 53.05 49.87 56.63 64.34 65.04 62.18 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids ($/bbl) 33.44 35.10 41.54 42.75 38.32 43.13 41.75 43.62 42.78 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas ($/mcf) Consolidated 5.24 5.53 6.40 7.96 6.32 7.26 5.86 5.92 6.22 Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.36 0.32 0.30 Total 5.24 5.52 6.38 7.94 6.30 7.24 5.85 5.91 6.21 - ------------------------------------------------------------------------------------- -------------------------------------------- Exploration Charges ($ Millions) Dry Holes 88 30 32 83 233 19 15 18 52 Lease Impairments 20 18 23 55 116 19 33 37 89 - ------------------------------------------------------------------------------------- -------------------------------------------- Total Non-Cash Charges 108 48 55 138 349 38 48 55 141 Other (G&G and Lease Rentals) 63 73 85 91 312 74 86 142 302 - ------------------------------------------------------------------------------------- -------------------------------------------- Total Exploration Charges 171 121 140 229 661 112 134 197 443 ===================================================================================== ============================================ Depreciation, Depletion and Amortization (DD&A) ($ Millions) 819 755 823 915 3,312 910 1,659 1,860 4,429 - ------------------------------------------------------------------------------------- --------------------------------------------
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CONOCOPHILLIPS ================================================================================ U.S. E&P 2005 2006 --------------------------------------------- -------------------------------------------- 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) 892 966 1,107 1,323 4,288 1,181 1,300 995 3,476 ===================================================================================== ============================================ Alaska ($ Millions) 532 572 730 718 2,552 692 760 425 1,877 - ------------------------------------------------------------------------------------- -------------------------------------------- Lower 48 ($ Millions) 360 394 377 605 1,736 489 540 570 1,599 - ------------------------------------------------------------------------------------- -------------------------------------------- Production Total U.S. (MBOE/D) 648 631 617 636 633 636 894 846 793 - ------------------------------------------------------------------------------------- -------------------------------------------- Crude Oil and Condensate (MB/D) Alaska 309 297 281 291 294 283 279 234 265 Lower 48 62 63 56 54 59 64 120 119 101 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 371 360 337 345 353 347 399 353 366 ===================================================================================== ============================================ Sales of crude oil produced (MB/D) 386 352 352 337 357 363 398 355 372 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids (MB/D)* Alaska 24 16 18 21 20 22 20 11 18 Lower 48 27 31 30 31 30 29 70 75 58 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 51 47 48 52 50 51 90 86 76 ===================================================================================== ============================================ *Includes reinjection volumes sold lease-to-lease: 13 1 8 13 9 14 14 7 11 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas (MMCF/D) Alaska 185 148 173 172 169 163 163 123 150 Lower 48 1,169 1,195 1,218 1,264 1,212 1,264 2,265 2,320 1,953 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 1,354 1,343 1,391 1,436 1,381 1,427 2,428 2,443 2,103 ===================================================================================== ============================================ Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 38.93 43.92 53.30 52.34 46.95 52.92 59.89 62.85 58.43 - ------------------------------------------------------------------------------------- -------------------------------------------- West Coast 44.15 49.22 58.70 57.61 52.24 58.87 66.02 69.66 64.48 - ------------------------------------------------------------------------------------- -------------------------------------------- Lower 48 41.29 43.58 50.00 46.62 45.24 52.21 59.63 62.45 59.21 - ------------------------------------------------------------------------------------- -------------------------------------------- Total U.S. 43.69 48.21 57.31 55.86 51.09 57.70 64.09 67.25 63.05 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids ($/bbl) Alaska 44.33 49.20 57.11 57.58 51.30 58.88 65.25 67.12 62.77 - ------------------------------------------------------------------------------------- -------------------------------------------- Lower 48 30.96 31.22 39.92 42.89 36.43 38.20 38.29 41.34 39.60 - ------------------------------------------------------------------------------------- -------------------------------------------- Total U.S. 34.68 37.26 43.95 45.94 40.40 43.00 40.45 42.68 41.86 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas ($/mcf) Alaska 2.96 2.49 2.57 3.01 2.75 3.58 3.42 3.36 3.47 - ------------------------------------------------------------------------------------- -------------------------------------------- Lower 48 5.66 6.20 7.67 9.37 7.28 7.50 5.81 6.00 6.25 - ------------------------------------------------------------------------------------- -------------------------------------------- Total U.S. 5.57 6.07 7.48 9.17 7.12 7.42 5.78 5.98 6.21 - ------------------------------------------------------------------------------------- -------------------------------------------- Kenai, Alaska LNG Sales Volume (MMCF/D) 132 96 123 118 117 128 126 110 122 - ------------------------------------------------------------------------------------- -------------------------------------------- Sales price per MCF 5.27 5.24 5.90 6.36 5.71 6.45 5.16 6.16 5.91 - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. Exploration Charges ($ Millions) Dry Holes 74 8 (2) 3 83 8 3 8 19 Lease Impairments 10 9 9 10 38 8 15 13 36 - ------------------------------------------------------------------------------------- -------------------------------------------- Total Non-Cash Charges 84 17 7 13 121 16 18 21 55 Other (G&G and Lease Rentals) 12 17 19 7 55 14 1 66 81 - ------------------------------------------------------------------------------------- -------------------------------------------- Total U.S. Exploration Charges 96 34 26 20 176 30 19 87 136 ===================================================================================== ============================================ Alaska Only 85 13 11 1 110 18 (7) 50 61 - ------------------------------------------------------------------------------------- -------------------------------------------- DD&A ($ Millions) Alaska 133 134 126 142 535 132 135 137 404 Lower 48 219 172 243 231 865 251 634 784 1,669 - ------------------------------------------------------------------------------------- -------------------------------------------- Total U.S. 352 306 369 373 1,400 383 769 921 2,073 ===================================================================================== ============================================
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CONOCOPHILLIPS ================================================================================ INTERNATIONAL E&P 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- International E&P Net Income ($ Millions) 895 963 1,181 1,103 4,142 1,372 2,004 909 4,285 ===================================================================================== ============================================ Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 952 906 904 954 929 974 1,240 1,190 1,136 - ------------------------------------------------------------------------------------- -------------------------------------------- Crude Oil and Condensate (MB/D) Consolidated Norway 207 195 198 188 197 188 192 190 190 United Kingdom 61 60 56 62 60 62 57 50 56 Canada 23 23 22 22 23 22 27 26 25 China 22 25 22 23 23 25 34 36 32 Indonesia 21 16 10 13 15 14 14 11 13 Vietnam 27 26 30 37 29 31 22 24 25 Timor Sea 36 21 38 36 33 39 39 40 39 Libya - - - - - - 74 71 49 Other 54 54 53 51 53 49 66 64 60 Equity affiliates 120 123 124 116 121 126 121 104 117 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 571 543 553 548 554 556 646 616 606 ===================================================================================== ============================================ Sales of crude oil produced (MB/D) 554 580 531 579 561 550 642 598 597 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids (MB/D) Norway 10 9 10 11 9 11 8 9 9 Canada 10 10 10 10 10 9 30 28 23 Timor Sea 17 9 20 19 16 20 20 20 20 Other 6 5 4 7 6 6 4 3 4 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 43 33 44 47 41 46 62 60 56 ===================================================================================== ============================================ Natural Gas (MMCF/D) Consolidated Norway 298 268 259 264 272 269 260 260 263 United Kingdom 824 741 588 851 751 851 796 665 770 Canada 417 422 429 430 425 424 1,204 1,154 930 China - - - - - - 10 8 6 Timor Sea 35 35 35 33 34 144 251 300 232 Indonesia 273 287 303 330 298 294 323 342 320 Vietnam 18 14 20 19 18 24 19 20 21 Other 76 81 74 105 84 121 207 187 173 Equity affiliates 5 7 10 3 7 11 10 8 9 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 1,946 1,855 1,718 2,035 1,889 2,138 3,080 2,944 2,724 ===================================================================================== ============================================ Canadian Syncrude (MB/D) 14 21 21 20 19 16 19 23 20 - ------------------------------------------------------------------------------------- -------------------------------------------- Darwin, Australia LNG Sales (MMCF/D) - - - - - 136 305 411 285 - ------------------------------------------------------------------------------------- --------------------------------------------
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CONOCOPHILLIPS ================================================================================ INTERNATIONAL E&P (continued) 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated Norway 45.52 50.21 60.42 56.36 53.18 61.36 68.64 68.48 66.11 United Kingdom 49.47 48.02 60.83 54.87 53.13 59.13 65.32 64.67 63.61 Canada 36.96 41.09 54.74 46.44 44.70 44.28 60.86 61.00 56.03 China 41.51 46.95 51.89 49.86 47.85 57.90 66.68 64.68 63.70 Indonesia 46.51 47.57 61.77 47.00 49.45 57.94 58.15 62.69 59.34 Vietnam 47.77 53.32 58.52 52.77 53.23 62.34 68.53 71.35 67.00 Timor Sea 47.99 50.90 59.03 52.90 52.95 60.37 66.98 66.84 64.69 Libya - - - - - - 68.07 67.75 67.90 Other 44.56 50.11 60.99 57.03 52.93 62.95 69.20 70.39 67.80 Equity affiliates 30.38 36.11 45.25 38.90 37.79 43.38 52.28 46.98 47.36 Total 42.77 46.16 56.19 51.41 49.09 55.92 64.50 63.73 61.63 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids ($/bbl) Norway 30.63 28.20 37.29 33.81 32.45 42.55 40.99 43.91 42.39 Canada 37.37 37.66 44.22 49.63 42.20 46.21 46.73 46.16 46.42 Timor Sea 34.40 35.99 40.45 47.29 40.11 46.68 41.35 45.63 44.45 Other 21.34 22.30 26.63 20.30 22.17 27.16 33.82 26.79 29.59 Total 32.35 32.03 39.29 40.04 36.25 43.25 43.28 44.89 43.84 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas ($/mcf) Consolidated Norway 5.03 5.30 5.13 6.40 5.46 7.28 7.09 7.48 7.28 United Kingdom 5.54 5.01 4.92 7.64 5.89 8.81 6.84 7.08 7.63 Canada 5.33 6.14 7.54 9.86 7.25 6.28 5.47 5.43 5.57 China - - - - - - 1.90 4.11 2.91 Timor Sea 0.52 0.52 0.56 0.61 0.55 0.67 0.65 0.69 0.67 Indonesia 5.08 5.96 6.73 6.23 6.03 7.45 7.53 6.71 7.21 Vietnam 1.04 1.04 1.05 1.07 1.05 1.07 1.07 1.07 1.07 Other 0.70 0.59 0.66 0.72 0.67 0.82 2.57 2.04 1.97 Equity affiliates 0.25 0.32 0.20 0.28 0.26 0.23 0.36 0.32 0.30 Total 5.03 5.15 5.57 7.16 5.76 7.13 5.90 5.85 6.21 - ------------------------------------------------------------------------------------- -------------------------------------------- International Exploration Charges ($ Millions) Dry Holes 14 22 34 80 150 11 12 10 33 Lease Impairments 10 9 14 45 78 11 18 24 53 - ------------------------------------------------------------------------------------- -------------------------------------------- Total Non-Cash Charges 24 31 48 125 228 22 30 34 86 Other (G&G and Lease Rentals) 51 56 66 84 257 60 85 76 221 - ------------------------------------------------------------------------------------- -------------------------------------------- Total International Exploration Charges 75 87 114 209 485 82 115 110 307 ===================================================================================== ============================================ DD&A ($ Millions) 467 449 454 542 1,912 527 890 939 2,356 - ------------------------------------------------------------------------------------- --------------------------------------------
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CONOCOPHILLIPS ================================================================================ R&M 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- R&M Net Income ($ Millions) 700 1,110 1,390 973 4,173 390 1,708 1,464 3,562 ===================================================================================== ============================================ United States ($ Millions) 570 936 1,096 727 3,329 297 1,433 1,444 3,174 - ------------------------------------------------------------------------------------- -------------------------------------------- International ($ Millions) 130 174 294 246 844 93 275 20 388 - ------------------------------------------------------------------------------------- -------------------------------------------- Market Indicators U.S. East Coast Crack Spread ($/bbl) 6.40 8.80 14.81 9.32 9.83 7.52 15.21 10.54 11.09 U.S. Gulf Coast Crack Spread ($/bbl) 6.37 9.63 17.42 10.27 10.92 8.28 17.26 11.00 12.18 U.S. Group Central Crack Spread ($/bbl) 7.92 11.51 17.06 11.93 12.10 9.81 19.60 17.75 15.72 U.S. West Coast Crack Spread ($/bbl) 19.61 22.20 26.61 16.29 21.18 18.87 32.47 21.70 24.35 U.S. Weighted 3:2:1 Crack Spread ($/bbl) 9.24 12.35 18.51 11.69 12.95 10.56 20.39 14.86 15.27 NW Europe Crack Spread ($/bbl) 11.14 15.09 16.53 13.68 14.11 10.18 15.20 14.18 13.19 Singapore 3:1:2 Crack Spread ($/bbl) 13.23 13.95 16.70 12.43 14.08 10.58 19.30 15.13 15.00 U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 0.16 2.05 0.70 2.63 1.38 0.71 1.83 5.75 2.76 - ------------------------------------------------------------------------------------- -------------------------------------------- Realized Margins Refining Margin ($/bbl) U.S. 10.11 11.23 14.61 12.71 12.17 10.18 17.23 14.10 13.98 International 8.43 8.89 11.19 8.95 9.38 5.30 7.64 6.46 6.59 - ------------------------------------------------------------------------------------- -------------------------------------------- Marketing Margin ($/bbl) U.S. 0.46 2.01 0.18 2.52 1.28 0.12 0.48 2.81 1.16 International 5.61 8.56 6.80 8.62 7.43 6.07 6.67 11.17 8.00 - ------------------------------------------------------------------------------------- -------------------------------------------- DD&A ($ Millions) 194 197 197 230 818 239 253 246 738 - ------------------------------------------------------------------------------------- -------------------------------------------- Turnaround Expense ($ Millions) 108 106 53 86 353 163 115 42 320 - ------------------------------------------------------------------------------------- -------------------------------------------- Eastern U.S. Crude Oil Charge Input (MB/D) 403 414 409 416 410 354 281 377 337 Total Charge Input (MB/D) 449 454 456 446 451 359 309 418 362 Crude Oil Capacity Utilization (%) 95% 98% 97% 98% 97% 84% 66% 89% 80% Clean Product Yield (%) 92% 88% 89% 91% 90% 90% 87% 88% 88% - ------------------------------------------------------------------------------------- -------------------------------------------- U.S. Gulf Coast Crude Oil Charge Input (MB/D) 659 715 596 397 591 529 681 730 647 Total Charge Input (MB/D) 733 835 674 467 676 587 777 822 730 Crude Oil Capacity Utilization (%) 92% 100% 83% 55% 83% 72% 93% 100% 88% Clean Product Yield (%) 73% 79% 80% 80% 78% 74% 81% 83% 80% - ------------------------------------------------------------------------------------- -------------------------------------------- Central U.S. Crude Oil Charge Input (MB/D) 538 594 620 619 594 571 619 600 597 Total Charge Input (MB/D) 577 625 653 666 630 613 663 638 638 Crude Oil Capacity Utilization (%) 84% 93% 97% 97% 93% 89% 97% 94% 93% Clean Product Yield (%) 86% 84% 85% 85% 85% 84% 86% 85% 85% - ------------------------------------------------------------------------------------- -------------------------------------------- Western U.S. Crude Oil Charge Input (MB/D) 357 410 415 421 401 386 419 420 409 Total Charge Input (MB/D) 382 431 439 445 425 419 443 446 436 Crude Oil Capacity Utilization (%) 90% 101% 102% 104% 100% 94% 101% 102% 99% Clean Product Yield (%) 80% 82% 79% 79% 80% 79% 81% 80% 80% - ------------------------------------------------------------------------------------- -------------------------------------------- TOTAL UNITED STATES Crude Oil Charge Input (MB/D) 1,957 2,133 2,040 1,853 1,996 1,840 2,000 2,127 1,990 Total Charge Input (MB/D) 2,141 2,345 2,222 2,024 2,182 1,978 2,192 2,324 2,166 Crude Oil Capacity Utilization (%) 90% 98% 93% 85% 92% 83% 91% 96% 90% Clean Product Yield (%) 82% 83% 83% 84% 83% 81% 83% 84% 83% - ------------------------------------------------------------------------------------- -------------------------------------------- Refined Products Production (MB/D) Gasoline 968 1,071 1,030 949 1,004 890 1,031 1,084 1,002 Distillates 599 655 640 583 619 538 601 655 598 Aviation Fuel 166 174 153 135 157 146 163 166 158 Other 414 449 400 370 406 414 403 429 415 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 2,147 2,349 2,223 2,037 2,186 1,988 2,198 2,334 2,173 ===================================================================================== ============================================ Petroleum Products Sales (MB/D) Gasoline 1,302 1,426 1,397 1,368 1,374 1,258 1,300 1,369 1,309 Distillates 642 680 725 653 675 626 620 668 638 Aviation Fuel 198 214 203 189 201 187 200 180 189 Other 461 566 526 521 519 517 555 519 530 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 2,603 2,886 2,851 2,731 2,769 2,588 2,675 2,736 2,666 ===================================================================================== ============================================
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CONOCOPHILLIPS ================================================================================ R&M (continued) 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- International - Consolidated* Crude Oil Charge Input (MB/D) 294 259 289 291 283 357 505 474 446 Total Charge Input (MB/D) 307 266 305 310 297 369 550 503 474 Crude Oil Capacity Utilization (%) 101% 89% 99% 100% 97% 94% 92% 86% 90% Clean Product Yield (%) 79% 76% 82% 82% 80% 71% 64% 69% 68% - ------------------------------------------------------------------------------------- -------------------------------------------- International - Equity Affiliates - Net Share** Crude Oil Charge Input (MB/D) 134 143 142 144 141 133 144 143 140 Total Charge Input (MB/D) 137 147 145 145 144 137 149 149 145 Crude Oil Capacity Utilization (%) 98% 105% 105% 106% 103% 94% 102% 102% 99% Clean Product Yield (%) 83% 82% 80% 83% 82% 82% 82% 81% 82% - ------------------------------------------------------------------------------------- -------------------------------------------- TOTAL INTERNATIONAL Crude Oil Charge Input (MB/D) 428 402 431 435 424 490 649 617 586 Total Charge Input (MB/D) 444 413 450 455 441 506 699 652 619 Crude Oil Capacity Utilization (%) 100% 94% 101% 102% 99% 94% 94% 89% 92% Clean Product Yield (%) 80% 78% 81% 82% 80% 74% 68% 72% 71% - ------------------------------------------------------------------------------------- -------------------------------------------- Refined Products Production (MB/D) Gasoline 141 115 143 152 138 142 165 165 157 Distillates 186 178 191 191 186 215 284 271 257 Aviation Fuel 21 21 24 24 22 13 13 17 14 Other 95 96 90 91 93 130 233 190 185 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 443 410 448 458 439 500 695 643 613 ===================================================================================== ============================================ Petroleum Products Sales (MB/D) Gasoline 185 176 178 175 178 197 225 204 209 Distillates 221 212 216 224 218 319 379 352 350 Aviation Fuel 7 10 12 8 9 20 18 22 20 Other 82 79 64 83 77 159 249 171 193 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 495 477 470 490 482 695 871 749 772 ===================================================================================== ============================================ Worldwide - Including Net Share of Equity Affiliates Crude Oil Charge Input (MB/D) 2,385 2,535 2,471 2,288 2,420 2,330 2,649 2,744 2,576 Total Charge Input (MB/D) 2,585 2,758 2,672 2,479 2,623 2,484 2,891 2,976 2,785 Crude Oil Capacity Utilization (%) 92% 97% 95% 88% 93% 85% 91% 95% 91% Clean Product Yield (%) 82% 82% 83% 84% 82% 79% 80% 81% 80% - ------------------------------------------------------------------------------------- -------------------------------------------- Refined Products Production (MB/D) Gasoline 1,109 1,186 1,173 1,101 1,142 1,032 1,196 1,249 1,159 Distillates 785 833 831 774 805 753 885 926 855 Aviation Fuel 187 195 177 159 179 159 176 183 172 Other 509 545 490 461 499 544 636 619 600 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 2,590 2,759 2,671 2,495 2,625 2,488 2,893 2,977 2,786 ===================================================================================== ============================================ Petroleum Products Sales (MB/D) Gasoline 1,487 1,602 1,575 1,543 1,552 1,455 1,525 1,573 1,518 Distillates 863 892 941 877 893 945 999 1,020 988 Aviation Fuel 205 224 215 197 210 207 218 202 209 Other 543 645 590 604 596 676 804 690 723 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 3,098 3,363 3,321 3,221 3,251 3,283 3,546 3,485 3,438 ===================================================================================== ============================================ * Represents our Humber refinery in the United Kingdom, the Whitegate refinery in Ireland, and, effective March 1, 2006, our Wilhelmshaven refinery in Germany. ** Represents 18.75 percent interest in a refinery complex in Karlsruhe, Germany; 16.33 percent interest in two refineries in Kralupy and Litvinov, Czech Republic; and 47 percent interest in a refinery in Melaka, Malaysia.
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CONOCOPHILLIPS ================================================================================ LUKOIL INVESTMENT 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- LUKOIL Investment Net Income ($ Millions) 110 148 267 189 714 249 387 487 1,123 ===================================================================================== ============================================ Upstream Production* Net crude oil production (MB/D) 190 215 253 281 235 306 346 388 347 Net natural gas production (MMCF/D) 67 50 79 72 67 98 343 288 244 BOE Total (MBOE/D) 201 223 266 293 246 322 403 436 388 - ----------------------------------------------------------------------------------------------------------------------------------- * Represents our estimated net share of LUKOIL's production. Industry Prices Crude Oil ($/bbl) Urals crude (CIF Mediterranean) 43.21 48.49 57.39 54.07 50.87 58.25 64.85 65.81 62.97 - ------------------------------------------------------------------------------------- -------------------------------------------- Downstream Refinery Throughput* Crude Processed (MB/D) 92 101 138 156 122 163 168 164 165 - ------------------------------------------------------------------------------------- -------------------------------------------- * Represents our estimated net share of LUKOIL's crude processed.
MIDSTREAM 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- Midstream Net Income ($ Millions) 385 68 88 147 688 110 108 169 387 ===================================================================================== ============================================ U.S. Equity Affiliate ($ Millions)* 359 51 76 105 591 93 91 128 312 - ------------------------------------------------------------------------------------- -------------------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States 23 21 23 22 22 23 22 23 23 International 53 44 5 - 25 - - - - Equity Affiliates United States* 110 112 171 172 142 178 183 180 180 International 6 6 6 6 6 6 6 7 6 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 192 183 205 200 195 207 211 210 209 ===================================================================================== ============================================ * Represents 30.3 percent interest in Duke Energy Field Services, LLC (DEFS), through June 30, 2005, and 50 percent interest beginning in July 2005. Natural Gas Liquids Fractionated (MB/D) United States* 149 131 123 127 132 141 125 124 130 International 64 55 15 10 36 11 14 14 13 - ------------------------------------------------------------------------------------- -------------------------------------------- Total 213 186 138 137 168 152 139 138 143 ===================================================================================== ============================================ * Excludes DEFS. Product Prices Weighted Average NGL ($/bbl)* Consolidated 31.95 32.49 39.60 42.70 36.68 37.64 41.73 44.10 41.16 DEFS 30.61 31.33 38.31 41.84 35.52 37.29 41.18 43.00 40.49 - ------------------------------------------------------------------------------------- -------------------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. DD&A ($ Millions) 9 8 7 8 32 7 8 7 22 - ------------------------------------------------------------------------------------- --------------------------------------------
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CONOCOPHILLIPS ================================================================================ CHEMICALS 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- Chemicals Net Income (Loss) ($ Millions) 133 63 13 114 323 149 103 142 394 ===================================================================================== ============================================ Industry Margins (Cents/Lb)* Ethylene industry cash margin 18.1 12.8 8.8 21.1 15.2 20.5 14.3 17.0 17.3 HDPE industry contract sales margin 12.1 12.0 8.2 12.9 11.3 15.9 14.0 13.9 14.6 Styrene industry contract sales margin 13.9 13.6 12.4 12.3 13.1 12.5 11.9 11.3 11.9 - ------------------------------------------------------------------------------------- -------------------------------------------- * 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.
EMERGING BUSINESSES 2005 2006 --------------------------------------------- -------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD --------------------------------------------- -------------------------------------------- Emerging Businesses Net Income (Loss) ($ Millions) (8) (8) - (5) (21) 8 (12) 11 7 ===================================================================================== ============================================ Detail of Net Income (Loss) ($ Millions) Technology Solutions (2) (4) (5) (5) (16) (12) (4) (3) (19) Gas-to-Liquids (7) (7) (4) (5) (23) (4) (3) (4) (11) Power 2 9 17 15 43 31 3 26 60 Other (1) (6) (8) (10) (25) (7) (8) (8) (23) - ------------------------------------------------------------------------------------- -------------------------------------------- Total (8) (8) - (5) (21) 8 (12) 11 7 ===================================================================================== ============================================
CORPORATE AND OTHER
2005 2006 --------------------------------------------- -------------------------------------------- 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) (195) (172) (246) (165) (778) (168) (412) (301) (881) ===================================================================================== ============================================ Detail of Net Income (Loss) ($ Millions) Net interest expense * (106) (90) (139) (132) (467) (93) (267) (242) (602) Corporate overhead (58) (46) (64) (15) (183) (26) (39) (35) (100) Discontinued operations (11) 7 (4) (15) (23) - - - - Acquisition-related expenses - - - - - (5) (39) (32) (76) Accounting change - - - - - - - - - Other * (20) (43) (39) (3) (105) (44) (67) 8 (103) - ------------------------------------------------------------------------------------- -------------------------------------------- Total (195) (172) (246) (165) (778) (168) (412) (301) (881) ===================================================================================== ============================================ * Amounts in periods prior to 3rd Quarter 2006 have been reclassified to conform to current period presentation. Before-Tax Net Interest Expense ($ Millions) Interest expense (226) (219) (223) (224) (892) (226) (468) (417) (1,111) Capitalized interest 88 91 102 114 395 111 107 110 328 Interest revenue 25 24 28 36 113 30 35 38 103 Receivables monetization related (1) - - - (1) - - - - Premium on early debt retirement (9) - (50) (51) (110) - - - - - ------------------------------------------------------------------------------------- -------------------------------------------- (123) (104) (143) (125) (495) (85) (326) (269) (680) ===================================================================================== ============================================ Debt Total Debt ($ Millions) 14,012 14,013 13,497 12,516 12,516 32,193 29,510 27,807 27,807 Debt-to-Capital Ratio 23% 22% 21% 19% 19% 30% 27% 25% 25% - ------------------------------------------------------------------------------------- --------------------------------------------
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