-----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, NTJfWELlLDTrPWq8WVKDlY3ui1mbUbDAs+KmGLBFK79ABydSvups/1a8ya1sa62E JVl21bdj6ADdfTfBBLpDCQ== 0001157523-07-007185.txt : 20070725 0001157523-07-007185.hdr.sgml : 20070725 20070725093944 ACCESSION NUMBER: 0001157523-07-007185 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070725 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070725 DATE AS OF CHANGE: 20070725 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: 07998159 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 a5454713.txt CONOCOPHILLIPS 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (date of earliest event reported): July 25, 2007 ConocoPhillips (Exact name of registrant as specified in its charter) Delaware 001-32395 01-0562944 (State or other jurisdiction (Commission (I.R.S. Employer of incorporation) File Number) Identification No.) 600 North Dairy Ashford Houston, Texas 77079 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (281) 293-1000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On July 25, 2007, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended June 30, 2007. 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 the following measures that are not calculated in accordance with U.S. generally accepted accounting principles (GAAP): o Earnings adjusted for the Venezuela impairment. o Diluted earnings per share adjusted for the Venezuela impairment. o E&P earnings adjusted for the Venezuela impairment. o Effective tax rate adjusted for the Venezuela impairment. We have included these non-GAAP financial measures because, in management's opinion, excluding the second-quarter 2007 charge associated with the complete impairment of our Venezuelan oil interests is a better indicator of the company's ongoing earnings, effective tax rate and earnings per share, and is therefore more useful in comparing the company's results with prior and future periods. Item 9.01 Financial Statements and Exhibits (d) Exhibits 99.1 -- Press release issued by ConocoPhillips on July 25, 2007. 99.2 -- Financial and operational tables. 99.3 -- Supplemental financial information. 2 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. CONOCOPHILLIPS /s/ Rand C. Berney ----------------------------- Rand C. Berney Vice President and Controller July 25, 2007 3 EXHIBIT INDEX Exhibit No. Description - --- ----------- 99.1 Press release issued by ConocoPhillips on July 25, 2007. 99.2 Financial and operational tables. 99.3 Supplemental financial information. 4 EX-99.1 2 a5454713ex991.txt EXHIBIT 99.1 Exhibit 99.1 ConocoPhillips Reports Second-Quarter Net Income of $301 Million or $0.18 Per Diluted Share Earnings of $4.8 billion or $2.90 per share, adjusted for Venezuela impairment of $4.5 billion ($2.72 per share) HOUSTON--(BUSINESS WIRE)--July 25, 2007--ConocoPhillips (NYSE:COP): Earnings at a glance Second Quarter Six Months - ---------------------------------------------------------------------- 2007 2006 2007 2006 - ---------------------------------------------------------------------- Net income $301 5,186 $3,847 8,477 million million million million - ---------------------------------------------------------------------- Diluted income per share $0.18 3.09 $2.31 5.49 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Earnings adjusted for Venezuela $4,813 5,186 $8,359 8,477 impairment million million million million - ---------------------------------------------------------------------- Diluted earnings per share adjusted for Venezuela impairment $2.90 3.09 $5.02 5.49 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Revenues(a) $47.4 47.1 $88.7 94.1 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 second-quarter net income of $301 million, or $0.18 per share. This compares with $5,186 million, or $3.09 per share, for the same quarter in 2006. Revenues were $47.4 billion, versus $47.1 billion a year ago. Second-quarter net income included an after-tax impairment of $4,512 million ($2.72 per share) in the Exploration & Production segment related to expropriation of the company's Venezuela oil projects. Earnings adjusted for the Venezuela impairment were $4,813 million, or $2.90 per share. "In our upstream business, we produced 2.4 million BOE per day, including an estimated 0.5 million BOE per day from our LUKOIL Investment segment, during the second quarter," said Jim Mulva, chairman and chief executive officer. "Our downstream business benefited from a strong market environment. During the second quarter our crude oil capacity utilization rate was 93 percent, despite planned downtime for maintenance and commissioning of a new coker at the Borger refinery. "We ended the quarter with debt of $22.8 billion, a debt-to-capital ratio of 21 percent and a cash balance of $1.4 billion. During the quarter, we funded $2.6 billion of our capital program, reduced debt by $0.9 billion, increased cash balance by $0.6 billion, repurchased an additional $1 billion of ConocoPhillips common stock, and paid $0.7 billion in dividends. This was accomplished using $4.8 billion of cash generated from operations and $0.9 billion in proceeds from asset dispositions." The results for ConocoPhillips' business segments follow. Exploration and Production (E&P) Second-quarter financial results: E&P second-quarter net loss was $2,404 million, reflecting the $4,512 million after-tax Venezuela impairment. E&P earnings adjusted for the Venezuela impairment were $2,108 million, down from $2,329 million of net income in the first quarter of 2007 and $3,304 million of net income in the second quarter of 2006. The decrease from the previous quarter primarily was due to the effect of the company's asset rationalization efforts and lower sales volumes. This decrease was offset partly by higher realized commodity prices. The decrease from the second quarter of 2006 primarily was due to higher taxes, lower sales volumes, the effect of the company's asset rationalization efforts, and lower crude oil prices. This decrease was offset partially by higher natural gas prices. Daily production from the E&P segment, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 1.9 million barrels of oil equivalent (BOE) per day, a decline from 2.0 million BOE per day in the previous quarter and 2.1 million BOE per day in the second quarter of 2006. The production decrease from the previous quarter primarily is due to scheduled maintenance in the North Sea, the company's exit from Dubai, and planned downtime and seasonality in Alaska. The production decrease from the second quarter of 2006 primarily was due to normal field decline, planned maintenance in the North Sea, the effect of asset dispositions, the company's exit from Dubai, production sharing contract impacts, OPEC reductions, and pipeline sabotage impacts in Nigeria. This decrease was offset slightly by volumes from the upstream business venture with EnCana and new production from Alpine satellite fields in Alaska. Before-tax exploration expenses were $259 million in the second quarter of 2007, compared with $262 million in the previous quarter and $134 million in the second quarter of 2006. Six months financial results: E&P net loss for the first six months of 2007 was $75 million. E&P earnings adjusted for the Venezuela impairment were $4,437 million over the same time frame, down from $5,857 million of net income in 2006. This decrease was due to higher taxes, lower crude oil sales volumes, lower commodity prices, and higher operating costs and depreciation, depletion and amortization expense. The decrease was offset partially by the inclusion of Burlington Resources' results for the entire six-month period in the current year and the effect of the company's asset rationalization efforts. Midstream Second-quarter financial results: The Midstream segment includes the company's 50 percent interest in DCP Midstream, LLC. Midstream second-quarter net income was $102 million, up from $85 million in the previous quarter and down from $108 million in the second quarter of 2006. The increase from the previous quarter primarily was due to higher realized natural gas liquids prices. The decrease from the second quarter of 2006 primarily was due to lower volumes partially offset by higher realized natural gas liquids prices. Six months financial results: Midstream net income for the first six months of 2007 was $187 million, down from $218 million in 2006. The decrease primarily was due to lower volumes partially offset by higher realized natural gas liquids prices. Refining and Marketing (R&M) Second-quarter financial results: R&M net income was $2,358 million in the second quarter, up from $1,136 million in the previous quarter and $1,708 million in the second quarter of 2006. The increase from the previous quarter was due to higher worldwide realized refining and marketing margins, including positive inventory impacts. The increase from the second quarter of 2006 primarily was due to higher worldwide realized refining and marketing margins, a net benefit associated with the company's asset rationalization efforts, and lower costs associated with turnarounds and Hurricane Katrina impacts in 2006. This increase was offset partially by lower volumes due to the contribution of assets to the downstream business venture with EnCana. The domestic refining crude oil capacity utilization rate for the second quarter was 93 percent, compared with 95 percent in the previous quarter. The international crude oil capacity utilization rate was 93 percent, compared with 90 percent in the previous quarter. Worldwide, R&M's refining crude oil capacity utilization rate was 93 percent, down slightly from 94 percent in the previous quarter, and up from 91 percent in the second quarter of 2006. Before-tax turnaround costs were $58 million in the second quarter of 2007, versus $75 million in the previous quarter and $115 million in the second quarter of 2006. Six months financial results: R&M net income for the first six months of 2007 was $3,494 million, up from $2,098 million in 2006. The increase was due primarily to higher worldwide realized refining and marketing margins, a net benefit associated with the company's asset rationalization efforts, and lower costs associated with turnarounds and Hurricane Katrina impacts in 2006. This increase was offset partially by lower volumes due to the contribution of assets to the downstream business venture with EnCana. LUKOIL Investment Second-quarter financial results: LUKOIL Investment segment net income was $526 million, up from $256 million in the previous quarter and $387 million in the second quarter of 2006. The results include ConocoPhillips' estimated equity share of OAO LUKOIL's (LUKOIL) income for the second quarter based on market indicators and historical production trends for LUKOIL. The company's equity ownership interest in LUKOIL at the end of the second quarter was 20 percent of LUKOIL's 851 million issued shares and 20.5 percent based on an estimated 831 million shares outstanding. The increase in net income from the previous quarter primarily was due to higher estimated realized prices, slightly offset by the net impact from the alignment of estimated net income to LUKOIL's reported results. The increase from the second quarter of 2006 primarily was due to higher estimated volumes and realized prices, as well as ConocoPhillips' increased equity ownership. This increase was offset partially by the net impact from the alignment of estimated net income to LUKOIL's reported results and higher estimated operating costs. For the second quarter of 2007, ConocoPhillips estimated its equity share of LUKOIL production was 473,000 BOE per day and its share of LUKOIL daily refining crude oil throughput was 184,000 barrels per day. Six months financial results: Net income for the first six months of 2007 was $782 million, up from $636 million in 2006. The increase primarily was due to higher estimated volumes and realized prices, and ConocoPhillips' increased equity ownership. This increase was offset partially by the net impact from the alignment of estimated net income to LUKOIL's reported results and higher estimated operating costs. Chemicals Second-quarter financial results: The Chemicals segment, which includes the company's 50 percent interest in Chevron Phillips Chemical Company LLC, reported net income of $68 million, down from $82 million in the first quarter of 2007 and $103 million in the second quarter of 2006. The decrease from the previous quarter primarily was due to a $21 million after-tax asset retirement, partially offset by lower turnaround costs. The decrease from the second quarter of 2006 was due largely to lower olefins and polyolefins margins and the asset retirement. Six months financial results: Net income for the first six months of 2007 was $150 million, down from $252 million in 2006. The decrease primarily was due to lower olefins and polyolefins margins, the asset retirement, and higher turnaround costs. This decrease was slightly offset by higher aromatics and styrenics margins. Emerging Businesses The Emerging Businesses segment second quarter net loss was $12 million compared to a net loss of $1 million in the first quarter of 2007, and a net loss of $12 million in the second quarter of 2006. The decrease from the previous quarter primarily was due to lower power generation results. Corporate and Other Second-quarter Corporate expenses were $337 million, after-tax, down slightly from $341 million in the previous quarter and down from $412 million in the second quarter of 2006. Compared to the previous quarter, lower net interest expense was offset by higher benefit-related charges. The decrease from the second quarter of 2006 primarily was due to lower net interest expense, lower acquisition-related charges and reduced foreign currency losses. This decrease was offset partially by higher benefit-related charges. Total debt at the end of the second quarter was $22.8 billion, a reduction of $0.9 billion during the quarter. The company's debt-to-capital ratio was 21 percent, compared to 22 percent at the end of the first quarter of 2006. The cash balance at the end of the quarter was $1.4 billion, an increase of $0.6 billion. ConocoPhillips' second-quarter effective tax rate was 91.4 percent. The effective tax rate adjusted for the Venezuela impairment was 40.6 percent, compared with an effective tax rate of 41.5 percent in the first quarter of 2007. Outlook Mr. Mulva concluded: "We remain focused on increasing shareholder value through operating excellence, project execution, capital discipline, and by improving our financial strength. As part of this focus, we recently announced a new share repurchase program of up to $15 billion through the end of 2008. We anticipate third-quarter 2007 share repurchases to be approximately $2 billion to $3 billion. "We anticipate the company's third-quarter E&P segment production will be lower due to the expropriation of our Venezuela oil projects, unplanned downtime in the U.K. as a result of damage and repairs on a third-party pipeline, and planned downtime in the Timor Sea and Alaska. "We continue negotiations with the Venezuela government concerning appropriate compensation for the expropriation of the company's oil projects and have preserved all legal rights, including international arbitration. "In our downstream refining business, the third-quarter crude oil capacity utilization rate is expected to be similar to the second quarter. Turnaround costs are anticipated to be approximately $40 million before-tax for the quarter. "We recently announced an agreement with Peabody Energy to explore development of a commercial scale coal-to-substitute natural gas facility using proprietary ConocoPhillips "E-GAS(TM)" technology. The project, which would utilize a mine-mouth facility at a U.S. location where Peabody has access to large reserves and existing infrastructure, is anticipated to annually produce 50 billion to 70 billion cubic feet of pipeline quality substitute natural gas from more than 3.5 million tons of Midwest sourced coal. This is another example of the company's commitment to proactively find solutions for both near- and long-term energy challenges. "Additionally in the U.S., we are urging American policymakers to outline a clear path to attain energy security and address climate change. A comprehensive, successful policy must achieve four major tenets: diversifying our energy sources, lowering the carbon intensity of our energy supplies, improving our energy efficiency, and encouraging investment in new technology. This will require a clear vision of the realities of the energy market with a commitment to act for the greater good." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 37,900 employees, $171 billion of assets, and $177 billion of annualized revenues as of June 30, 2007. 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 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; 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 Kristi DesJarlais, 281-293-4595 (media) or Gary Russell, 212-207-1996 (investors) EX-99.2 3 a5454713ex992.txt EXHIBIT 99.2 Exhibit 99.2 ConocoPhillips Houston, Texas 77079 Preliminary FINANCIAL HIGHLIGHTS
Millions of Dollars Three Months Ended Six Months Ended June 30 June 30 2007 2006 2007 2006 ----------- ----------- ----------- ----------- Revenues and Other Income Sales and other operating revenues* $47,370 47,149 $88,690 94,055 Equity in earnings of affiliates 1,506 1,164 2,435 2,124 Other income 521 163 1,139 224 ----------- ----------- ----------- ----------- 49,397 48,476 92,264 96,403 ----------- ----------- ----------- ----------- Costs and Expenses Purchased crude oil, natural gas and products 30,820 29,448 57,535 62,903 Production and operating expenses 2,557 2,694 5,049 4,909 Selling, general and administrative expenses 604 610 1,131 1,176 Exploration expenses 259 134 521 246 Depreciation, depletion and amortization 2,016 1,965 4,040 3,145 Impairment - expropriated assets 4,588 - 4,588 - Impairments 98 50 97 50 Taxes other than income taxes* 4,697 4,421 9,071 8,808 Accretion on discounted liabilities 81 73 160 133 Interest and debt expense 319 360 626 475 Foreign currency transaction (gains) losses (179) 18 (178) 40 Minority interests 19 21 40 39 ----------- ----------- ----------- ----------- 45,879 39,794 82,680 81,924 ----------- ----------- ----------- ----------- Income before income taxes 3,518 8,682 9,584 14,479 Provision for income taxes 3,217 3,496 5,737 6,002 ----------- ----------- ----------- ----------- Net Income 301 5,186 3,847 8,477 =========== =========== =========== =========== Net Income per share of common stock (dollars) Basic $0.18 3.13 $2.34 5.58 =========== =========== =========== =========== Diluted $0.18 3.09 $2.31 5.49 =========== =========== =========== =========== Average common shares outstanding (in thousands) Basic 1,635,848 1,654,758 1,641,569 1,519,593 Diluted 1,657,999 1,678,445 1,663,618 1,542,752 *Includes excise taxes on petroleum products sales: $4,069 3,922 $7,910 7,912
1 ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Millions of Dollars Three Months Six Months Ended Ended June 30 June 30 2007 2006 2007 2006 -------- ------- -------- ------- SUMMARY OF NET INCOME (LOSS) E&P United States $ 1,055 1,300 $ 1,971 2,481 International (3,459) 2,004 (2,046) 3,376 -------- ------- -------- ------- Total E&P (2,404) 3,304 (75) 5,857 -------- ------- -------- ------- Midstream 102 108 187 218 -------- ------- -------- ------- R&M United States 1,879 1,433 2,775 1,730 International 479 275 719 368 -------- ------- -------- ------- Total R&M 2,358 1,708 3,494 2,098 -------- ------- -------- ------- LUKOIL Investment 526 387 782 636 Chemicals 68 103 150 252 Emerging Businesses (12) (12) (13) (4) Corporate and other (337) (412) (678) (580) -------- ------- -------- ------- Consolidated $ 301 5,186 $ 3,847 8,477 ======== ======= ======== ======= 2 ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Three Months Six Months Ended Ended June 30 June 30 2007 2006 2007 2006 -------- -------- -------- ------- Effective tax rate % 91.4 % 40.3 59.9 % 41.5 Millions of Dollars FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX E&P $ 152 (34) $ 169 (27) Midstream (1) - (1) - R&M (2) 25 (2) 31 LUKOIL Investment - 1 - 1 Chemicals - - - - Emerging Businesses - - - - Corporate and other (16) (36) (30) (44) -------- -------- -------- ------- $ 133 (44) $ 136 (39) ======== ======== ======== ======= CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 301 5,186 $ 3,847 8,477 Depreciation, depletion and amortization 2,016 1,965 4,040 3,145 Impairment - expropriated assets 4,588 4,588 Impairments 98 50 97 50 Dry hole costs and leasehold impairments 133 47 281 85 Accretion on discounted liabilities 81 73 160 133 Deferred taxes 103 (390) 180 (222) Undistributed equity earnings (678) (687) (1,235) (754) Gain on asset dispositions (428) (53) (927) (56) Other 182 189 88 (14) Working capital adjustments (1,630) (1,536) 520 (1,200) -------- -------- -------- ------- Net cash provided by operating activities $ 4,766 4,844 $11,639 9,644 ======== ======== ======== ======= CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $ 873 756 $ 1,716 1,175 International 1,275 1,416 3,002 3,203 -------- -------- -------- ------- 2,148 2,172 4,718 4,378 Midstream 2 1 2 2 R&M 271 475 476 2,110 LUKOIL Investment - 648 - 1,260 Chemicals - - - - Emerging Businesses 34 28 65 40 Corporate and other 45 78 86 126 -------- -------- -------- ------- $ 2,500 3,402 $ 5,347 7,916 ======== ======== ======== ======= OTHER At June 30, At December 31, 2007 2006 ----------------- ---------------- Total debt $22,812 27,134 Common stockholders' equity $84,928 82,646 3 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS BY SEGMENT
Three Months Ended Six Months Ended June 30 June 30 2007 2006 2007 2006 ------- ------- ------- ------- Thousands of Barrels Daily E&P Crude oil produced United States Alaska 267 279 272 281 Lower 48 105 120 104 92 ------- ------- ------- ------- 372 399 376 373 Norway 145 192 162 190 United Kingdom 48 57 52 59 Canada 19 27 20 25 China 32 34 35 30 Indonesia 13 14 13 14 Vietnam 22 22 22 26 Timor Sea 26 39 25 39 Libya 47 74 46 37 Other 36 66 48 58 ------- ------- ------- ------- Total consolidated 760 924 799 851 Equity affiliates Canada 28 - 26 - Russia 15 15 15 15 Venezuela 85 106 83 108 ------- ------- ------- ------- Total Worldwide 888 1,045 923 974 ======= ======= ======= ======= Syncrude 21 19 22 18 ======= ======= ======= ======= Natural gas liquids produced United States Alaska* 18 20 20 21 Lower 48 71 70 70 50 ------- ------- ------- ------- 89 90 90 71 Norway 5 8 7 9 United Kingdom 6 4 5 4 Canada 28 30 30 20 Timor Sea 14 20 13 20 Other 3 - 2 1 ------- ------- ------- ------- Total Worldwide 145 152 147 125 ======= ======= ======= ======= *Includes reinjected volumes sold lease-to-lease. 15 14 16 14 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 100 163 111 163 Lower 48 2,219 2,265 2,205 1,767 ------- ------- ------- ------- 2,319 2,428 2,316 1,930 Norway 202 260 225 265 United Kingdom 668 796 726 823 Canada 1,133 1,204 1,142 816 China 12 10 11 5 Timor Sea 250 251 247 198 Indonesia 329 323 330 309 Vietnam 12 19 13 22 Libya 9 - 7 - Other 190 207 201 164 ------- ------- ------- ------- Total consolidated 5,124 5,498 5,218 4,532 Equity affiliates Venezuela 9 10 9 10 ------- ------- ------- ------- Total Worldwide 5,133 5,508 5,227 4,542 ======= ======= ======= ======= *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 521 432 506 349 LUKOIL Investment Production (MBOE/D)* 473 403 460 363 Refinery crude oil throughput (MB/D)* 184 168 202 165 *Represents our estimated net share of LUKOIL.
4 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS
Three Months Ended Six Months Ended June 30 June 30 2007 2006 2007 2006 ------ ------- ------- ------- E&P Per Unit Average sales prices Crude oil (per barrel) United States Alaska $ 63.26 66.02 $ 59.38 62.33 Lower 48 58.50 59.63 53.95 57.08 Total U.S. 61.91 64.09 57.86 61.06 International 67.16 67.27 61.16 64.12 Total consolidated 64.55 65.89 59.61 62.75 Equity affiliates* 47.74 52.28 44.24 47.53 Total Worldwide 61.97 64.34 57.53 60.76 Natural gas (per MCF) United States Alaska 4.04 3.42 4.12 3.50 Lower 48 6.51 5.81 6.36 6.41 Total U.S. 6.49 5.78 6.34 6.37 International 6.42 5.92 6.46 6.43 Total consolidated 6.45 5.86 6.41 6.40 Equity affiliates* 0.37 0.36 0.42 0.29 Total Worldwide 6.44 5.85 6.40 6.39 *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 22 19 22 International - - - - Equity affiliates United States 181 183 177 181 International 7 6 8 6 ------ ------- ------- ------- 211 211 204 209 ====== ======= ======= ======= Per Barrel U.S. product prices Weighted average NGL** Consolidated $ 45.19 41.73 $ 41.46 39.69 DCP 44.30 41.18 40.43 39.24 **Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix.
5 ConocoPhillips Houston, Texas 77079
Three Months Six Months Ended Ended June 30 June 30 2007 2006 2007 2006 ------ ------ ------ ------ Thousands of Thousands of Barrels Daily Barrels Daily R&M United States Crude oil capacity 2,033 2,208 2,033 2,208 Crude oil runs 1,896 2,000 1,917 1,921 Refinery production 2,087 2,198 2,119 2,093 International* Crude oil capacity 696 693 696 608 Crude oil runs 650 649 637 570 Refinery production 664 695 654 599 U.S. petroleum products sales volumes Gasoline 1,300 1,300 1,279 1,279 Distillates 827 820 845 817 Other products 503 555 491 536 ------ ------ ------ ------ 2,630 2,675 2,615 2,632 International 739 871 726 784 ------ ------ ------ ------ 3,369 3,546 3,341 3,416 ====== ====== ====== ====== Per Gallon Per Gallon U.S. average sales prices** Gasoline-wholesale $ 2.50 2.32 $ 2.19 2.06 Gasoline-retail 2.68 2.47 2.36 2.19 Distillates-wholesale 2.24 2.24 2.09 2.08 *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 a5454713ex993.txt EXHIBIT 99.3 Exhibit 99.3 ConocoPhillips
SUMMARY OF NET INCOME (LOSS) BY SEGMENT Millions of Dollars ------------------------------------------------------------------------------------- 2006 2007 ----------------------------------------- ------------------------------------------ 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 1,181 1,300 995 872 4,348 916 1,055 1,971 International E&P 1,372 2,004 909 1,215 5,500 1,413 (3,459) (2,046) ------------------------------------------------------------------------- ------------------------------------------ Total E&P 2,553 3,304 1,904 2,087 9,848 2,329 (2,404) (75) ------------------------------------------------------------------------- ------------------------------------------ Midstream 110 108 169 89 476 85 102 187 ------------------------------------------------------------------------- ------------------------------------------ U.S. R&M 297 1,433 1,444 741 3,915 896 1,879 2,775 International R&M 93 275 20 178 566 240 479 719 ------------------------------------------------------------------------- ------------------------------------------ Total R&M 390 1,708 1,464 919 4,481 1,136 2,358 3,494 ------------------------------------------------------------------------- ------------------------------------------ LUKOIL Investment 249 387 487 302 1,425 256 526 782 Chemicals 149 103 142 98 492 82 68 150 Emerging Businesses 8 (12) 11 8 15 (1) (12) (13) Corporate and Other (168) (412) (301) (306) (1,187) (341) (337) (678) ------------------------------------------------------------------------- ------------------------------------------ Consolidated 3,291 5,186 3,876 3,197 15,550 3,546 301 3,847 ========================================================================= ========================================== Cumulative Effect of Accounting Changes U.S. E&P - - - - - - - - International E&P - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ Total E&P - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ Midstream - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ U.S. R&M - - - - - - - - International R&M - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ Total R&M - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ LUKOIL Investment - - - - - - - - Chemicals - - - - - - - - Emerging Businesses - - - - - - - - Corporate and Other - - - - - - - - ------------------------------------------------------------------------- ------------------------------------------ Consolidated - - - - - - - - ========================================================================= ========================================== Income (Loss) from Discontinued Operations Corporate and Other - - - - - - - - ========================================================================= ========================================== Net Income (Loss) U.S. E&P 1,181 1,300 995 872 4,348 916 1,055 1,971 International E&P 1,372 2,004 909 1,215 5,500 1,413 (3,459) (2,046) ------------------------------------------------------------------------- ------------------------------------------ Total E&P 2,553 3,304 1,904 2,087 9,848 2,329 (2,404) (75) ------------------------------------------------------------------------- ------------------------------------------ Midstream 110 108 169 89 476 85 102 187 ------------------------------------------------------------------------- ------------------------------------------ U.S. R&M 297 1,433 1,444 741 3,915 896 1,879 2,775 International R&M 93 275 20 178 566 240 479 719 ------------------------------------------------------------------------- ----------------------------------------- Total R&M 390 1,708 1,464 919 4,481 1,136 2,358 3,494 ------------------------------------------------------------------------- ------------------------------------------ LUKOIL Investment 249 387 487 302 1,425 256 526 782 Chemicals 149 103 142 98 492 82 68 150 Emerging Businesses 8 (12) 11 8 15 (1) (12) (13) Corporate and Other (168) (412) (301) (306) (1,187) (341) (337) (678) ------------------------------------------------------------------------- ------------------------------------------ Consolidated 3,291 5,186 3,876 3,197 15,550 3,546 301 3,847 ========================================================================= ========================================== Page 1 of 12
ConocoPhillips
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES Millions of Dollars -------------------------------------------------------------------------------------- 2006 2007 -------------------------------------------------------------------------------------- 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 1,853 2,062 1,598 1,380 6,893 1,425 1,627 3,052 International E&P 2,862 3,814 3,460 2,948 13,084 2,894 (1,976) 918 - ---------------------------------------------------------------------------- ------------------------------------------ Total E&P 4,715 5,876 5,058 4,328 19,977 4,319 (349) 3,970 - ---------------------------------------------------------------------------- ------------------------------------------ Midstream 173 187 214 150 724 132 156 288 - ---------------------------------------------------------------------------- ------------------------------------------ U.S. R&M 512 2,260 2,282 1,195 6,249 1,400 2,891 4,291 International R&M 112 343 107 222 784 218 633 851 - ---------------------------------------------------------------------------- ------------------------------------------ Total R&M 624 2,603 2,389 1,417 7,033 1,618 3,524 5,142 - ---------------------------------------------------------------------------- ------------------------------------------ LUKOIL Investment 257 398 496 311 1,462 262 542 804 Chemicals 209 134 191 128 662 107 80 187 Emerging Businesses 9 (20) 14 11 14 (3) (20) (23) Corporate and Other (190) (496) (425) (428) (1,539) (369) (415) (784) - ---------------------------------------------------------------------------- ------------------------------------------ Consolidated 5,797 8,682 7,937 5,917 28,333 6,066 3,518 9,584 ============================================================================ ========================================== Income from Continuing Operations Effective Tax Rates U.S. E&P 36.3% 37.0% 37.7% 36.8% 36.9% 35.7% 35.2% 35.4% International E&P 52.1% 47.5% 73.7% 58.8% 58.0% 51.2% - - - ---------------------------------------------------------------------------- ------------------------------------------ Total E&P 45.9% 43.8% 62.4% 51.8% 50.7% 46.1% - - - ---------------------------------------------------------------------------- ------------------------------------------ Midstream 36.4% 42.2% 21.0% 40.7% 34.3% 35.6% 34.6% 35.1% - ---------------------------------------------------------------------------- ------------------------------------------ U.S. R&M 42.0% 36.6% 36.7% 38.0% 37.3% 36.0% 35.0% 35.3% International R&M 17.0% 19.8% 81.3% 19.8% 27.8% -10.1% 24.3% 15.5% - ---------------------------------------------------------------------------- ------------------------------------------ Total R&M 37.5% 34.4% 38.7% 35.1% 36.3% 29.8% 33.1% 32.0% - ---------------------------------------------------------------------------- ------------------------------------------ LUKOIL Investment 3.1% 2.8% 1.8% 2.9% 2.5% 2.3% 3.0% 2.7% Chemicals 28.7% 23.1% 25.7% 23.4% 25.7% 23.4% 15.0% 19.8% Emerging Businesses 11.1% 40.0% 21.4% 27.3% -7.1% 66.7% 40.0% 43.5% Corporate and Other 11.6% 16.9% 29.2% 28.5% 22.9% 7.6% 18.8% 13.5% - ---------------------------------------------------------------------------- ------------------------------------------ Consolidated 43.2% 40.3% 51.2% 46.0% 45.1% 41.5% 91.4% 59.9% ============================================================================ ========================================== Page 2 of 12
ConocoPhillips
CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX) Millions of Dollars --------------------------------------------------------------------------------------- 2006 2007 ------------------------------------------- ------------------------------------------ 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 - 15 - 33 48 36 11 47 Impairments - (26) - (10) (36) - - - Insurance premium adjustments (2) - (5) (4) (11) - - - Pending claims and settlements - - 18 - 18 - - - Business interruption insurance claims recovery - - 15 - 15 - - - Enacted tax legislation - 2 - - 2 - - - - -------------------------------------------------------------------------- ------------------------------------------ Total (2) (9) 28 19 36 36 11 47 - -------------------------------------------------------------------------- ------------------------------------------ International E&P Gain (loss) on asset sales - 25 - - 25 407 (82) 325 Insurance premium adjustments (10) - (10) (8) (28) - - - International tax law changes - 401 (270) (31) 100 38 - 38 Impairment - expropriated assets - - - - - - (4,512) (4,512) Impairments - - (4) (104) (108) (88) (33) (121) Business interruption insurance claims recovery - - 11 3 14 - - - Pending claims and settlements - - - 25 25 - - - - -------------------------------------------------------------------------- ------------------------------------------ Total (10) 426 (273) (115) 28 357 (4,627) (4,270) - -------------------------------------------------------------------------- ------------------------------------------ Total E&P (12) 417 (245) (96) 64 393 (4,616) (4,223) ========================================================================= ========================================== Midstream Business interruption insurance claims recovery - - - 5 5 - - - DCP Midstream's sale of TEPPCO general ptnr - - 30 - 30 - - - Enacted tax legislation - (6) - - (6) - - - - -------------------------------------------------------------------------- ------------------------------------------ Total - (6) 30 5 29 - - - - -------------------------------------------------------------------------- ------------------------------------------ U.S. R&M Gain (loss) on asset sales - - - - - - - - Impairments - - (35) (192) (227) (13) - (13) Insurance premium adjustments (6) - (7) (6) (19) - - - Business interruption insurance claims recovery - - 111 - 111 - - - Enacted tax legislation - 34 - - 34 - - - - -------------------------------------------------------------------------- ------------------------------------------ Total (6) 34 69 (198) (101) (13) - (13) - -------------------------------------------------------------------------- ------------------------------------------ International R&M Gain (loss) on asset sales - - - - - - 163 163 Impairments - - (214) - (214) 148 (5) 143 Insurance premium adjustments (1) - (1) (1) (3) - - - - -------------------------------------------------------------------------- ------------------------------------------ Total (1) - (215) (1) (217) 148 158 306 - -------------------------------------------------------------------------- ------------------------------------------ Total R&M (7) 34 (146) (199) (318) 135 158 293 ========================================================================= ========================================== LUKOIL Investment Ownership interest adjustment - - 23 - 23 - - - - -------------------------------------------------------------------------- ------------------------------------------ Total - - 23 - 23 - - - - -------------------------------------------------------------------------- ------------------------------------------ Chemicals Business interruption insurance claims recovery - - 7 13 20 - - - Asset retirements recorded by CPChem - - - (16) (16) - (21) (21) Enacted tax legislation - (5) - - (5) - - - - -------------------------------------------------------------------------- ------------------------------------------ Total - (5) 7 (3) (1) - (21) (21) - -------------------------------------------------------------------------- ------------------------------------------ Emerging Businesses Property write-down - (14) - - (14) - - - - -------------------------------------------------------------------------- ------------------------------------------ Total - (14) - - (14) - - - - -------------------------------------------------------------------------- ------------------------------------------ Corporate and Other Acquisition-related expenses (5) (39) (32) (22) (98) (13) (16) (29) Premium on early debt retirement - - - - - (14) - (14) Pending claims and settlements (15) - - - (15) - - - Canada tax law change - (10) - - (10) - - - - -------------------------------------------------------------------------- ------------------------------------------ Total (20) (49) (32) (22) (123) (27) (16) (43) - -------------------------------------------------------------------------- ------------------------------------------ Total Company (39) 377 (363) (315) (340) 501 (4,495) (3,994) ========================================================================= ========================================== Page 3 of 12
ConocoPhillips
CASH FLOW INFORMATION Millions of Dollars ------------------------------------------------------------------------------------- 2006 2007 ------------------------------------------ ----------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ========================================== ========================================= Cash Flows from Operating Activities Net income 3,291 5,186 3,876 3,197 15,550 3,546 301 3,847 DD&A and impairments 1,180 2,015 2,404 2,368 7,967 2,023 2,114 4,137 Impairment - expropriated assets - - - - - - 4,588 4,588 Dry hole costs and leasehold impairments 38 47 56 210 351 148 133 281 Accretion on discounted liabilities 60 73 74 74 281 79 81 160 Deferred income taxes 168 (390) 495 (56) 217 77 103 180 Undistributed equity earnings (67) (687) (253) 62 (945) (557) (678) (1,235) Net gain on asset dispositions (3) (53) (8) (52) (116) (499) (428) (927) Other (203) 189 (282) 95 (201) (94) 182 88 Net working capital changes 336 (1,536) (127) (261) (1,588) 2,150 (1,630) 520 - ------------------------------------------------------------------------- ----------------------------------------- Net Cash Provided by Operating Activities 4,800 4,844 6,235 5,637 21,516 6,873 4,766 11,639 ========================================================================= ========================================= Cash Flows from Investing Activities Capital expenditures and investments*: E&P (2,206) (2,172) (2,454) (2,681) (9,513) (2,570) (2,148) (4,718) Midstream (1) (1) - (2) (4) - (2) (2) R&M (1,635) (475) (374) (532) (3,016) (205) (271) (476) LUKOIL Investment (612) (648) (702) (753) (2,715) - - - Chemicals - - - - - - - - Emerging Businesses (12) (28) (6) (37) (83) (31) (34) (65) Corporate and Other (48) (78) (61) (78) (265) (41) (45) (86) - ------------------------------------------------------------------------- ----------------------------------------- Total capital expend. & investments (4,514) (3,402) (3,597) (4,083) (15,596) (2,847) (2,500) (5,347) Acquisition of Burlington Resources Inc.* (14,190) (94) (1) - (14,285) - - - Proceeds from asset dispositions 5 68 173 299 545 1,343 872 2,215 Long-term advances to/collections from affiliates and other investments (115) (151) (251) (140) (657) (144) (97) (241) - ------------------------------------------------------------------------- ----------------------------------------- Net Cash Used for Investing Activities (18,814) (3,579) (3,676) (3,924) (29,993) (1,648) (1,725) (3,373) ========================================================================= ========================================= Cash Flows from Financing Activities Net issuance (repayment) of debt 15,324 (2,756) (1,630) (706) 10,232 (3,491) (865) (4,356) Issuance of stock 40 64 41 75 220 40 141 181 Repurchase of stock - (425) (250) (250) (925) (1,000) (1,000) (2,000) Dividends (496) (595) (593) (593) (2,277) (674) (668) (1,342) Other (27) (20) (76) (62) (185) (49) (104) (153) - ------------------------------------------------------------------------- ----------------------------------------- Net Cash Provided by (Used for) Financing Activities 14,841 (3,732) (2,508) (1,536) 7,065 (5,174) (2,496) (7,670) ========================================================================= ========================================= Effect of Exchange Rate Changes (33) 113 (9) (56) 15 (8) 6 (2) - ------------------------------------------------------------------------- ----------------------------------------- Net Change in Cash and Cash Equivalents 794 (2,354) 42 121 (1,397) 43 551 594 Cash and cash equivalents at beginning of period 2,214 3,008 654 696 2,214 817 860 817 - ------------------------------------------------------------------------- ----------------------------------------- Cash and Cash Equivalents at End of Period 3,008 654 696 817 817 860 1,411 1,411 ========================================================================= ========================================= * Net of cash acquired. Page 4 of 12
ConocoPhillips
TOTAL E&P 2006 2007 ---------------------------------------- ------------------------------------------ 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ======================================== ========================================== E&P Net Income ($ Millions) 2,553 3,304 1,904 2,087 9,848 2,329 (2,404) (75) ======================================================================= ========================================== Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 1,610 2,134 2,036 2,047 1,957 2,020 1,910 1,963 - ----------------------------------------------------------------------- ------------------------------------------ E&P segment plus LUKOIL Investment segment: 1,932 2,537 2,472 2,485 2,358 2,465 2,383 2,423 - ----------------------------------------------------------------------- ------------------------------------------ Crude Oil and Condensate (MB/D) Consolidated 777 924 865 859 856 840 760 799 Equity affiliates 126 121 104 113 116 120 128 124 - ----------------------------------------------------------------------- ------------------------------------------ Total 903 1,045 969 972 972 960 888 923 ======================================================================= ========================================== Sales of crude oil produced (MB/D) 913 1,040 953 988 973 949 876 912 - ----------------------------------------------------------------------- ------------------------------------------ Natural Gas Liquids (MB/D) 97 152 146 150 136 150 145 147 - ----------------------------------------------------------------------- ------------------------------------------ Natural Gas (MMCF/D) Consolidated 3,554 5,498 5,379 5,387 4,961 5,313 5,124 5,218 Equity affiliates 11 10 8 7 9 9 9 9 - ----------------------------------------------------------------------- ------------------------------------------ Total 3,565 5,508 5,387 5,394 4,970 5,322 5,133 5,227 ======================================================================= ========================================== Canadian Syncrude (MB/D) 16 19 23 26 21 23 21 22 - ----------------------------------------------------------------------- ------------------------------------------ Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 63.28 70.40 70.38 59.94 66.00 57.99 64.89 61.44 Brent dated 61.75 69.62 69.49 59.68 65.14 57.76 68.76 63.26 Natural Gas ($/mmbtu) Henry Hub -- First of Month 9.01 6.80 6.58 6.56 7.24 6.77 7.55 7.16 - ----------------------------------------------------------------------- ------------------------------------------ Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 58.97 65.89 67.37 56.87 62.39 55.17 64.55 59.61 Equity affiliates 43.38 52.28 46.98 41.79 46.01 40.02 47.74 44.24 Total 56.63 64.34 65.04 55.10 60.37 53.38 61.97 57.53 - ----------------------------------------------------------------------- ------------------------------------------ Natural Gas Liquids ($/bbl) 43.13 41.75 43.62 38.23 41.50 38.56 44.80 41.60 - ----------------------------------------------------------------------- ------------------------------------------ Natural Gas ($/mcf) Consolidated 7.26 5.86 5.92 6.13 6.20 6.36 6.45 6.41 Equity affiliates 0.23 0.36 0.32 0.32 0.30 0.48 0.37 0.42 Total 7.24 5.85 5.91 6.12 6.19 6.35 6.44 6.40 - ----------------------------------------------------------------------- ------------------------------------------ Exploration Charges ($ Millions) Dry Holes 19 15 18 142 194 62 74 136 Lease Impairments 19 33 37 68 157 86 59 145 - ----------------------------------------------------------------------- ------------------------------------------ Total Non-Cash Charges 38 48 55 210 351 148 133 281 Other (G&G and Lease Rentals) 74 86 142 181 483 114 126 240 - ----------------------------------------------------------------------- ------------------------------------------ Total Exploration Charges 112 134 197 391 834 262 259 521 ======================================================================= ========================================== Depreciation, Depletion and Amortization (DD&A) ($ Millions) 910 1,659 1,860 1,703 6,132 1,802 1,790 3,592 - ----------------------------------------------------------------------- ------------------------------------------ Page 5 of 12
ConocoPhillips
U.S. E&P 2006 2007 ---------------------------------------- ----------------------------------------- 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) 1,181 1,300 995 872 4,348 916 1,055 1,971 ======================================================================= ========================================= Alaska ($ Millions) 692 760 425 470 2,347 507 535 1,042 - ----------------------------------------------------------------------- ----------------------------------------- Lower 48 ($ Millions) 489 540 570 402 2,001 409 520 929 - ----------------------------------------------------------------------- ----------------------------------------- Production Total U.S. (MBOE/D) 636 894 846 856 808 855 848 852 - ----------------------------------------------------------------------- ----------------------------------------- Crude Oil and Condensate (MB/D) Alaska 283 279 234 257 263 276 267 272 Lower 48 64 120 119 113 104 104 105 104 - ----------------------------------------------------------------------- ----------------------------------------- Total 347 399 353 370 367 380 372 376 ======================================================================= ========================================= Sales of crude oil produced (MB/D) 363 398 355 371 371 372 370 371 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas Liquids (MB/D)* Alaska 22 20 11 17 17 22 18 20 Lower 48 29 70 75 72 62 68 71 70 - ----------------------------------------------------------------------- ----------------------------------------- Total 51 90 86 89 79 90 89 90 ======================================================================= ========================================= *Includes reinjection volumes sold lease-to-lease: 14 14 7 9 11 16 15 16 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas (MMCF/D) Alaska 163 163 123 131 145 122 100 111 Lower 48 1,264 2,265 2,320 2,250 2,028 2,190 2,219 2,205 - ----------------------------------------------------------------------- ----------------------------------------- Total 1,427 2,428 2,443 2,381 2,173 2,312 2,319 2,316 ====================================================================== ======================================== Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 52.92 59.89 62.85 51.11 56.47 48.83 56.31 52.56 - ----------------------------------------------------------------------- ----------------------------------------- West Coast 58.87 66.02 69.66 57.00 62.66 55.50 63.26 59.38 - ----------------------------------------------------------------------- ----------------------------------------- Lower 48 52.21 59.63 62.45 51.26 57.04 49.32 58.50 53.95 - ----------------------------------------------------------------------- ----------------------------------------- Total U.S. 57.70 64.09 67.25 55.26 61.09 53.78 61.91 57.86 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas Liquids ($/bbl) Alaska 58.88 65.25 67.12 57.03 61.06 55.27 63.52 58.34 - -------------------------------------- ------- ------- ------- ------- ------- ------- ------- ------- -------- Lower 48 38.20 38.29 41.34 34.51 38.10 36.46 43.29 39.95 - ----------------------------------------------------------------------- ----------------------------------------- Total U.S. 43.00 40.45 42.68 36.74 40.35 37.86 44.17 41.04 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas ($/mcf) Alaska 3.58 3.42 3.36 4.05 3.59 4.19 4.04 4.12 - ----------------------------------------------------------------------- ----------------------------------------- Lower 48 7.50 5.81 6.00 5.85 6.14 6.21 6.51 6.36 - ----------------------------------------------------------------------- ----------------------------------------- Total U.S. 7.42 5.78 5.98 5.84 6.11 6.19 6.49 6.34 - ----------------------------------------------------------------------- ----------------------------------------- Kenai, Alaska LNG Sales Volume (MMCF/D) 128 126 110 88 113 104 72 88 - ----------------------------------------------------------------------- ----------------------------------------- Sales price per MCF 6.45 5.16 6.16 6.33 6.00 5.83 5.86 5.84 - ----------------------------------------------------------------------- ----------------------------------------- U.S. Exploration Charges ($ Millions) Dry Holes 8 3 8 67 86 13 36 49 Lease Impairments 8 15 13 46 82 43 43 86 - ----------------------------------------------------------------------- ----------------------------------------- Total Non-Cash Charges 16 18 21 113 168 56 79 135 Other (G&G and Lease Rentals) 14 1 66 55 136 26 40 66 - ----------------------------------------------------------------------- ----------------------------------------- Total U.S. Exploration Charges 30 19 87 168 304 82 119 201 ======================================================================= ========================================= Alaska Only 18 (7) 50 21 82 17 32 49 - ----------------------------------------------------------------------- ----------------------------------------- DD&A ($ Millions) Alaska 132 135 137 151 555 168 167 335 Lower 48 251 634 784 623 2,292 618 661 1,279 - ----------------------------------------------------------------------- ----------------------------------------- Total U.S. 383 769 921 774 2,847 786 828 1,614 ======================================================================= ========================================= Page 6 of 12
ConocoPhillips
INTERNATIONAL E&P 2006 2007 ---------------------------------------- ------------------------------------------ 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ======================================== ========================================== International E&P Net Income ($ Millions) 1,372 2,004 909 1,215 5,500 1,413 (3,459) (2,046) ======================================================================== ========================================== Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 974 1,240 1,190 1,191 1,149 1,165 1,062 1,111 - ------------------------------------------------------------------------ ------------------------------------------ Crude Oil and Condensate (MB/D) Consolidated Norway 188 192 190 185 189 179 145 162 United Kingdom 62 57 50 56 56 55 48 52 Canada 22 27 26 27 25 21 19 20 China 25 34 36 36 33 38 32 35 Indonesia 14 14 11 10 12 13 13 13 Vietnam 31 22 24 23 25 23 22 22 Timor Sea 39 39 40 27 36 24 26 25 Libya - 74 71 56 50 45 47 46 Other 49 66 64 69 63 62 36 48 Equity affiliates Canada - - - - - 23 28 26 Russia 16 15 15 14 15 15 15 15 Venezuela 110 106 89 99 101 82 85 83 - ------------------------------------------------------------------------ ------------------------------------------ Total 556 646 616 602 605 580 516 547 ======================================================================== ========================================== Sales of crude oil produced (MB/D) 550 642 598 617 602 577 506 541 - ------------------------------------------------------------------------ ------------------------------------------ Natural Gas Liquids (MB/D) Norway 11 8 9 8 9 8 5 7 United Kingdom 4 4 2 6 4 6 6 5 Canada 9 30 28 31 25 31 28 30 Timor Sea 20 20 20 15 18 12 14 13 Other 2 - 1 1 1 3 3 2 - ------------------------------------------------------------------------ ------------------------------------------ Total 46 62 60 61 57 60 56 57 ======================================================================= ========================================== Natural Gas (MMCF/D) Consolidated Norway 269 260 260 291 270 247 202 225 United Kingdom 851 796 665 734 761 785 668 726 Canada 424 1,204 1,154 1,140 983 1,152 1,133 1,142 China - 10 8 9 7 11 12 11 Timor Sea 144 251 300 243 235 243 250 247 Indonesia 294 323 342 315 319 331 329 330 Vietnam 24 19 20 20 21 15 12 13 Libya - - - 17 4 5 9 7 Other 121 207 187 237 188 212 190 201 Equity affiliates Canada - - - - - - - - Russia - - - - - - - - Venezuela 11 10 8 7 9 9 9 9 - ------------------------------------------------------------------------ ------------------------------------------ Total 2,138 3,080 2,944 3,013 2,797 3,010 2,814 2,911 ======================================================================== ========================================== Canadian Syncrude (MB/D) 16 19 23 26 21 23 21 22 - ------------------------------------------------------------------------ ------------------------------------------ Darwin, Australia LNG Sales (MMCF/D) 136 305 411 382 310 388 449 419 - ------------------------------------------------------------------------ ------------------------------------------ Page 7 of 12
ConocoPhillips
INTERNATIONAL E&P (continued) 2006 2007 ---------------------------------------- ----------------------------------------- 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 ($/bbl) Consolidated Norway 61.36 68.64 68.48 60.07 64.61 57.36 67.50 61.32 United Kingdom 59.13 65.32 64.67 58.71 62.08 55.52 66.99 62.30 Canada 44.28 60.86 61.00 49.28 54.25 48.70 58.42 53.36 China 57.90 66.68 64.68 51.06 60.00 54.93 66.39 59.69 Indonesia 57.94 58.15 62.69 52.21 57.80 54.66 65.46 60.06 Vietnam 62.34 68.53 71.35 56.77 64.75 57.88 67.03 62.23 Timor Sea 60.37 66.98 66.84 57.27 63.21 59.15 73.51 66.43 Libya - 68.07 67.75 58.19 65.11 56.19 67.39 61.76 Other 62.95 69.20 70.39 60.92 65.85 55.73 67.71 60.37 Equity affiliates Canada - - - - - 32.46 32.46 32.46 Russia 40.86 46.87 48.29 36.86 43.20 37.92 50.25 44.78 Venezuela 43.71 53.03 46.78 42.48 46.40 42.54 51.54 47.46 Total 55.92 64.50 63.73 55.00 59.92 53.12 62.02 57.31 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas Liquids ($/bbl) Norway 42.55 40.99 43.91 39.46 41.61 38.82 45.72 41.61 United Kingdom 35.39 34.87 38.51 22.38 31.29 34.93 39.34 36.92 Canada 46.21 46.73 46.16 43.87 45.62 41.15 46.82 43.87 Timor Sea 46.68 41.35 45.63 41.62 43.95 44.13 49.43 46.60 Other 8.11 8.09 8.11 8.25 8.15 8.32 29.42 18.86 Total 43.25 43.28 44.89 40.25 42.89 39.38 45.64 42.30 - ----------------------------------------------------------------------- ----------------------------------------- Natural Gas ($/mcf) Consolidated Norway 7.28 7.09 7.48 8.58 7.61 7.00 7.10 7.04 United Kingdom 8.81 6.84 7.08 8.52 7.85 8.14 7.23 7.72 Canada 6.28 5.47 5.43 5.91 5.67 6.38 6.60 6.49 China - 1.90 4.11 2.80 2.87 2.64 2.74 2.69 Timor Sea 0.67 0.65 0.69 0.74 0.69 0.76 0.68 0.72 Indonesia 7.45 7.53 6.71 5.78 6.86 6.04 6.99 6.52 Vietnam 1.07 1.07 1.07 1.05 1.06 1.10 1.09 1.09 Libya - - - 0.09 0.09 0.07 0.09 0.08 Other 0.82 2.57 2.04 2.02 1.98 2.71 2.53 2.62 Equity affiliates Canada - - - - - - - - Russia - - - - - - - - Venezuela 0.23 0.36 0.32 0.32 0.30 0.29 0.30 0.30 Total 7.13 5.90 5.85 6.36 6.25 6.47 6.40 6.44 - ----------------------------------------------------------------------- ----------------------------------------- International Exploration Charges ($ Millions) Dry Holes 11 12 10 75 108 49 38 87 Lease Impairments 11 18 24 22 75 43 16 59 - ----------------------------------------------------------------------- ----------------------------------------- Total Non-Cash Charges 22 30 34 97 183 92 54 146 Other (G&G and Lease Rentals) 60 85 76 126 347 88 86 174 - ----------------------------------------------------------------------- ----------------------------------------- Total International Exploration Charges 82 115 110 223 530 180 140 320 ======================================================================= ========================================= DD&A ($ Millions) 527 890 939 929 3,285 1,016 962 1,978 - ----------------------------------------------------------------------- ----------------------------------------- Page 8 of 12
ConocoPhillips
R&M 2006 2007 -------------------------------------- -------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ====================================== ====================================== R&M Net Income ($ Millions) 390 1,708 1,464 919 4,481 1,136 2,358 3,494 ================================================================================ ====================================== United States ($ Millions) 297 1,433 1,444 741 3,915 896 1,879 2,775 - -------------------------------------------------------------------------------- -------------------------------------- International ($ Millions) 93 275 20 178 566 240 479 719 - -------------------------------------------------------------------------------- -------------------------------------- Market Indicators U.S. East Coast Crack Spread ($/bbl) 7.52 15.21 10.54 7.86 10.28 11.81 22.57 17.19 U.S. Gulf Coast Crack Spread ($/bbl) 8.28 17.26 11.00 6.77 10.83 10.06 24.28 17.17 U.S. Group Central Crack Spread ($/bbl) 9.81 19.60 17.75 10.11 14.32 14.84 31.26 23.05 U.S. West Coast Crack Spread ($/bbl) 18.87 32.47 21.70 20.36 23.35 28.68 34.32 31.50 U.S. Weighted 3:2:1 Crack Spread ($/bbl) 10.56 20.39 14.86 10.49 14.07 15.30 27.56 21.43 NW Europe Crack Spread ($/bbl) 10.18 15.20 14.18 11.46 12.75 12.06 15.56 13.81 Singapore 3:1:2 Crack Spread ($/bbl) 10.58 19.30 15.13 11.03 14.01 14.06 17.94 16.00 U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 0.71 1.83 5.75 1.81 2.52 1.15 2.09 1.62 - -------------------------------------------------------------------------------- -------------------------------------- Realized Margins Refining Margin ($/bbl) U.S. 10.18 17.23 14.10 11.39 13.29 11.87 19.59 15.70 International 5.30 7.64 6.46 6.22 6.50 5.06 9.68 7.42 - -------------------------------------------------------------------------------- -------------------------------------- Marketing Margin ($/bbl)* U.S. 0.12 0.48 2.92 1.34 1.23 1.31 2.36 1.84 International 6.07 6.67 11.17 9.50 8.38 7.08 7.68 7.39 - -------------------------------------------------------------------------------- -------------------------------------- DD&A ($ Millions) 239 253 246 266 1,004 191 196 387 - -------------------------------------------------------------------------------- -------------------------------------- Turnaround Expense ($ Millions) 163 115 42 94 414 75 58 133 - -------------------------------------------------------------------------------- -------------------------------------- Eastern U.S. Crude Oil Charge Input (MB/D) 354 281 377 411 356 411 404 407 Total Charge Input (MB/D) 359 309 418 457 386 460 447 453 Crude Oil Capacity Utilization (%) 84% 66% 89% 97% 84% 97% 96% 96% Clean Product Yield (%) 90% 87% 88% 90% 89% 89% 86% 87% - -------------------------------------------------------------------------------- -------------------------------------- U.S. Gulf Coast Crude Oil Charge Input (MB/D) 529 681 730 737 670 744 709 726 Total Charge Input (MB/D) 587 777 822 812 750 823 790 807 Crude Oil Capacity Utilization (%) 72% 93% 100% 101% 91% 102% 97% 99% Clean Product Yield (%) 74% 81% 83% 80% 80% 81% 81% 81% - -------------------------------------------------------------------------------- -------------------------------------- Western U.S. Crude Oil Charge Input (MB/D) 386 419 420 397 406 333 388 361 Total Charge Input (MB/D) 419 443 446 426 433 375 420 398 Crude Oil Capacity Utilization (%) 94% 101% 102% 96% 98% 81% 94% 87% Clean Product Yield (%) 79% 81% 80% 79% 80% 79% 79% 79% - -------------------------------------------------------------------------------- -------------------------------------- Central U.S. - Consolidated Crude Oil Charge Input (MB/D) 571 619 600 583 593 185 170 178 Total Charge Input (MB/D) 613 663 638 621 634 188 175 182 Crude Oil Capacity Utilization (%) 89% 97% 94% 91% 93% 99% 91% 95% Clean Product Yield (%) 84% 86% 85% 85% 85% 88% 93% 91% - -------------------------------------------------------------------------------- -------------------------------------- Central U.S. - Equity Affiliates - Net Share** Crude Oil Charge Input (MB/D) - - - - - 265 225 245 Total Charge Input (MB/D) - - - - - 288 250 269 Crude Oil Capacity Utilization (%) - - - - - 96% 81% 88% Clean Product Yield (%) - - - - - 82% 85% 83% - -------------------------------------------------------------------------------- -------------------------------------- TOTAL UNITED STATES Crude Oil Charge Input (MB/D) 1,840 2,000 2,127 2,128 2,025 1,938 1,896 1,917 Total Charge Input (MB/D) 1,978 2,192 2,324 2,316 2,203 2,134 2,082 2,109 Crude Oil Capacity Utilization (%) 83% 91% 96% 96% 92% 95% 93% 94% Clean Product Yield (%) 81% 83% 84% 83% 83% 83% 83% 83% - -------------------------------------------------------------------------------- -------------------------------------- Refined Products Production (MB/D) Gasoline 890 1,031 1,084 1,061 1,017 962 957 959 Distillates 684 764 821 824 774 762 736 749 Other 414 403 429 440 422 428 394 411 - -------------------------------------------------------------------------------- -------------------------------------- Total 1,988 2,198 2,334 2,325 2,213 2,152 2,087 2,119 ================================================================================ ====================================== Petroleum Products Sales (MB/D) Gasoline 1,258 1,300 1,369 1,416 1,336 1,258 1,300 1,279 Distillates 813 820 848 921 850 862 827 845 Other 517 555 519 535 531 480 503 491 - -------------------------------------------------------------------------------- -------------------------------------- Total 2,588 2,675 2,736 2,872 2,717 2,600 2,630 2,615 ================================================================================ ====================================== * Represents marketing sales price less product costs for all distribution channels other than commercial product supply. ** Represents a 50 percent and 85 percent interest in the Wood River and Borger refineries, respectively. These refineries were contributed to a business venture with EnCana, effective January 1, 2007. Page 9 of 12
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R&M (continued) 2006 2007 -------------------------------------- --------------------------------------- 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) 357 505 474 461 450 503 505 504 Total Charge Input (MB/D) 369 550 503 494 479 532 528 530 Crude Oil Capacity Utilization (%) 94% 92% 86% 83% 88% 91% 92% 91% Clean Product Yield (%) 71% 64% 69% 72% 69% 68% 67% 67% - ------------------------------------------------------------------------------- --------------------------------------- International - Equity Affiliates - Net Share** Crude Oil Charge Input (MB/D) 133 144 143 144 141 120 145 133 Total Charge Input (MB/D) 137 149 149 147 145 121 146 134 Crude Oil Capacity Utilization (%) 94% 102% 102% 102% 100% 83% 101% 92% Clean Product Yield (%) 82% 82% 81% 80% 81% 77% 79% 78% - ------------------------------------------------------------------------------- --------------------------------------- TOTAL INTERNATIONAL Crude Oil Charge Input (MB/D) 490 649 617 605 591 623 650 637 Total Charge Input (MB/D) 506 699 652 641 624 653 674 664 Crude Oil Capacity Utilization (%) 94% 94% 89% 87% 91% 90% 93% 92% Clean Product Yield (%) 74% 68% 72% 74% 72% 70% 69% 69% - ------------------------------------------------------------------------------- --------------------------------------- Refined Products Production (MB/D) Gasoline 142 165 165 172 161 160 159 159 Distillates 228 297 288 291 276 289 302 296 Other 130 233 190 170 181 195 203 199 - ------------------------------------------------------------------------------- --------------------------------------- Total 500 695 643 633 618 644 664 654 =============================================================================== ======================================= Petroleum Products Sales (MB/D) Gasoline 197 225 204 186 203 176 186 181 Distillates 339 397 374 399 377 381 379 380 Other 159 249 171 135 179 156 174 165 - ------------------------------------------------------------------------------- --------------------------------------- Total 695 871 749 720 759 713 739 726 =============================================================================== ======================================= Worldwide - Including Net Share of Equity Affiliates Crude Oil Charge Input (MB/D) 2,330 2,649 2,744 2,733 2,616 2,561 2,546 2,554 Total Charge Input (MB/D) 2,484 2,891 2,976 2,957 2,827 2,787 2,756 2,773 Crude Oil Capacity Utilization (%) 85% 91% 95% 94% 92% 94% 93% 94% Clean Product Yield (%) 79% 80% 81% 81% 80% 80% 80% 80% - ------------------------------------------------------------------------------- --------------------------------------- Refined Products Production (MB/D) Gasoline 1,032 1,196 1,249 1,233 1,178 1,122 1,116 1,118 Distillates 912 1,061 1,109 1,115 1,050 1,051 1,038 1,045 Other 544 636 619 610 603 623 597 610 - ------------------------------------------------------------------------------- --------------------------------------- Total 2,488 2,893 2,977 2,958 2,831 2,796 2,751 2,773 =============================================================================== ======================================= Petroleum Products Sales (MB/D) Gasoline 1,455 1,525 1,573 1,602 1,539 1,434 1,486 1,460 Distillates 1,152 1,217 1,222 1,320 1,227 1,243 1,206 1,225 Other 676 804 690 670 710 636 677 656 - ------------------------------------------------------------------------------- --------------------------------------- Total 3,283 3,546 3,485 3,592 3,476 3,313 3,369 3,341 =============================================================================== ======================================= * 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. Page 10 of 12
ConocoPhillips
LUKOIL INVESTMENT 2006 2007 ------------------------------------- ------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ===================================== ===================================== LUKOIL Investment Net Income ($ Millions) 249 387 487 302 1,425 256 526 782 ================================================================================= ===================================== Upstream Production* Net crude oil production (MB/D) 306 346 388 397 360 393 427 411 Net natural gas production (MMCF/D) 98 343 288 247 244 309 278 293 BOE Total (MBOE/D) 322 403 436 438 401 445 473 460 - --------------------------------------------------------------------------------- ------------------------------------- * Represents our estimated net share of LUKOIL's production. Industry Prices Crude Oil ($/bbl) Urals crude (CIF Mediterranean) 58.25 64.85 65.81 56.48 61.35 53.96 65.30 59.72 - --------------------------------------------------------------------------------- ------------------------------------- Downstream Refinery Throughput* Crude Processed (MB/D) 163 168 164 220 179 219 184 202 - --------------------------------------------------------------------------------- ------------------------------------- * Represents our estimated net share of LUKOIL's crude processed. MIDSTREAM 2006 2007 ------------------------------------- ------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ===================================== ===================================== Midstream Net Income ($ Millions) 110 108 169 89 476 85 102 187 ================================================================================= ===================================== U.S. Equity Affiliate ($ Millions)* 93 91 128 73 385 50 76 126 - --------------------------------------------------------------------------------- ------------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States 23 22 23 21 22 15 23 19 International - - - - - - - - Equity Affiliates United States* 178 183 180 181 181 174 181 177 International 6 6 7 7 6 8 7 8 - --------------------------------------------------------------------------------- ------------------------------------- Total 207 211 210 209 209 197 211 204 ================================================================================= ===================================== * Represents 50 percent interest in DCP Midstream. Natural Gas Liquids Fractionated (MB/D) United States* 141 125 124 136 131 161 163 162 International 11 14 14 12 13 13 13 13 - --------------------------------------------------------------------------------- ------------------------------------- Total 152 139 138 148 144 174 176 175 ================================================================================= ===================================== * Excludes DCP Midstream. Product Prices Weighted Average NGL ($/bbl)* Consolidated 37.64 41.73 44.10 37.41 40.22 37.73 45.19 41.46 DCP Midstream 37.29 41.18 43.00 36.34 39.45 36.55 44.30 40.43 - --------------------------------------------------------------------------------- ------------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. DD&A ($ Millions) 7 8 7 7 29 4 3 7 - --------------------------------------------------------------------------------- ------------------------------------- Page 11 of 12
ConocoPhillips
CHEMICALS 2006 2007 --------------------------------------- --------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ======================================= ======================================= Chemicals Net Income (Loss) ($ Millions) 149 103 142 98 492 82 68 150 =============================================================================== ======================================= Industry Margins (Cents/Lb)* Ethylene industry cash margin 20.5 14.3 17.0 16.0 17.0 11.1 10.8 11.0 HDPE industry contract sales margin 15.9 14.0 13.9 11.9 13.9 13.5 14.6 14.1 Styrene industry contract sales margin 12.5 11.9 11.3 11.5 11.8 11.1 11.6 11.4 - ------------------------------------------------------------------------------- --------------------------------------- * 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 2006 2007 --------------------------------------- --------------------------------------- 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 (12) 11 8 15 (1) (12) (13) =============================================================================== ======================================= Detail of Net Income (Loss) ($ Millions) Power 31 3 26 22 82 13 (1) 12 Other (23) (15) (15) (14) (67) (14) (11) (25) - ------------------------------------------------------------------------------- --------------------------------------- Total 8 (12) 11 8 15 (1) (12) (13) =============================================================================== ======================================= CORPORATE AND OTHER 2006 2007 --------------------------------------- --------------------------------------- 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) (168) (412) (301) (306) (1,187) (341) (337) (678) =============================================================================== ======================================= Detail of Net Income (Loss) ($ Millions) Net interest expense (93) (267) (242) (268) (870) (244) (224) (468) Corporate overhead (26) (39) (35) (33) (133) (23) (54) (77) Acquisition-related expenses (5) (39) (32) (22) (98) (13) (16) (29) Other (44) (67) 8 17 (86) (61) (43) (104) - ------------------------------------------------------------------------------- --------------------------------------- Total (168) (412) (301) (306) (1,187) (341) (337) (678) =============================================================================== ======================================= Before-Tax Net Interest Expense ($ Millions) Interest expense (226) (468) (417) (434) (1,545) (395) (411) (806) Capitalized interest 111 107 110 130 458 135 139 274 Interest revenue 30 35 38 2 105 31 24 55 Premium on early debt retirement - - - - - (17) - (17) - ------------------------------------------------------------------------------- --------------------------------------- (85) (326) (269) (302) (982) (246) (248) (494) =============================================================================== ======================================= Debt Total Debt ($ Millions) 32,193 29,510 27,807 27,134 27,134 23,668 22,812 22,812 Debt-to-Capital Ratio 30% 27% 25% 24% 24% 22% 21% 21% - ------------------------------------------------------------------------------- --------------------------------------- Page 12 of 12
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