-----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, SEWtzj8tSzWFtNzTGQb7dlXJqahoUgvInH+4txUX90hAvBRun9RZDCRmn6uDArWA yAGobZL6h11XtTjpLiUpGg== 0001157523-07-010147.txt : 20071024 0001157523-07-010147.hdr.sgml : 20071024 20071024095508 ACCESSION NUMBER: 0001157523-07-010147 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20071024 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20071024 DATE AS OF CHANGE: 20071024 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: 071187064 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 a5525743.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): October 24, 2007 ConocoPhillips (Exact name of registrant as specified in its charter) Delaware 001-32395 01-0562944 (State or other jurisdiction of (Commission (I.R.S. Employer incorporation) File Number) Identification No.) 600 North Dairy Ashford Houston, Texas 77079 (Address of principal executive offices and zip code) Registrant's telephone number, including area code: (281) 293-1000 Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below): [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Item 2.02 Results of Operations and Financial Condition On October 24, 2007, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 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 Earning adjusted for the second-quarter 2007 Venezuela impairment. o Diluted earnings per share adjusted for the second-quarter 2007 Venezuela impairment. o E&P earnings adjusted for the second-quarter 2007 Venezuela impairment. o Effective tax rate adjusted for the second-quarter 2007 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 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 October 24, 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 October 24, 2007 3 EXHIBIT INDEX Exhibit No. Description - --- ----------- 99.1 Press release issued by ConocoPhillips on October 24, 2007. 99.2 Financial and operational tables. 99.3 Supplemental financial information. 4 EX-99.1 2 a5525743-ex991.txt EXHIBIT 99.1 EXHIBIT 99.1 ConocoPhillips Reports Third-Quarter Net Income of $3.7 Billion or $2.23 Per Diluted Share HOUSTON--(BUSINESS WIRE)--Oct. 24, 2007--ConocoPhillips (NYSE:COP): Earnings at a glance - ---------------------------------------------------------------------- Third Quarter Nine Months - ---------------------------------------------------------------------- 2007 2006 2007 2006 - ---------------------------------------------------------------------- $3,673 3,876 $7,520 12,353 Net income million million million million - ---------------------------------------------------------------------- Diluted income per share $2.23 2.31 $4.54 7.78 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- Earnings adjusted for the second-quarter 2007 Venezuela $3,673 3,876 $12,032 12,353 impairment million million million million - ---------------------------------------------------------------------- Diluted earnings per share adjusted for the second-quarter 2007 Venezuela impairment $2.23 2.31 $7.26 7.78 - ---------------------------------------------------------------------- - ---------------------------------------------------------------------- $46.1 48.1 $134.8 142.1 Revenues(a) 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 $3,673 million, or $2.23 per share. This compares with $3,876 million, or $2.31 per share, for the same quarter in 2006. Revenues were $46.1 billion, versus $48.1 billion a year ago. "During the third quarter, our upstream business produced 2.2 million BOE per day, including an estimated 0.4 million BOE per day from our LUKOIL Investment segment," said Jim Mulva, chairman and chief executive officer. "In the downstream business, our domestic refineries ran at 97 percent of capacity, an improvement from the previous quarter. Worldwide, our refining crude oil capacity utilization rate improved to 94 percent. "We ended the quarter with debt of $21.9 billion, a debt-to-capital ratio of 20 percent and a cash balance of $1.4 billion. During the quarter, we repurchased $2.5 billion of ConocoPhillips common stock, funded $2.8 billion of our capital program, reduced debt by $0.9 billion, and paid $0.7 billion in dividends. This was accomplished using $6.0 billion of cash generated from operations and $0.8 billion in proceeds from asset dispositions." For the first nine months of 2007, net income was $7,520 million, or $4.54 per share, including a second-quarter, after-tax impairment of $4,512 million in the Exploration and Production segment related to the expropriation of the company's Venezuelan oil projects. Earnings for the first nine months of 2007 adjusted for the Venezuela impairment were $12,032 million, or $7.26 per share, versus net income of $12,353 million, or $7.78 per share, for the same period a year ago. Revenues were $134.8 billion, versus $142.1 billion a year ago. The results for ConocoPhillips' business segments follow. Exploration and Production (E&P) Third-quarter financial results: E&P third-quarter net income was $2,082 million, compared to second-quarter earnings adjusted for the Venezuela impairment of $2,108 million, and third-quarter 2006 net income of $1,904 million. The decrease from the second quarter of 2007, adjusted for the Venezuela impairment, primarily was due to lower volumes, lower realized natural gas prices, and higher operating costs. These decreases were mostly offset by higher realized crude oil prices, a $203 million net benefit from the company's asset rationalization efforts, and a $94 million benefit related to retroactive adjustments for crude oil quality differentials on Trans-Alaska Pipeline System shipments. The increase from the third quarter of 2006 primarily was due to the negative impact of new tax legislation on third-quarter 2006 results, higher realized crude oil prices, the effect of the company's asset rationalization efforts, and the Alaska crude oil quality differential settlements. These increases were largely offset by lower volumes, lower realized natural gas prices, and higher operating costs. Daily production from the E&P segment, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 1.8 million barrels of oil equivalent (BOE) per day, a decline from 1.9 million BOE per day in the previous quarter and 2.0 million BOE per day in the third quarter of 2006. The production decrease from the previous quarter primarily was due to expropriation of the company's Venezuelan oil projects, unplanned downtime in the United Kingdom as a result of damage and repairs on a third-party pipeline, and planned downtime in the Timor Sea and United Kingdom. The production decrease from the third quarter of 2006 primarily was due to expropriation of the company's Venezuelan oil projects, the company's exit from Dubai, and the effect of asset dispositions. In addition, the decrease was attributed to normal field decline, unplanned downtime in the United Kingdom and Nigeria, planned downtime in the Timor Sea and Norway, production sharing contract impacts, and lift timing in Libya. This decrease was partially offset by volumes from the upstream business venture with EnCana, less downtime in Alaska, and new production from the Alpine satellite fields in Alaska. Before-tax exploration expenses were $218 million in the third quarter of 2007, compared with $259 million in the previous quarter and $197 million in the third quarter of 2006. Nine months financial results: E&P net income for the first nine months of 2007 was $2,007 million, or earnings of $6,519 million adjusted for the second-quarter 2007 Venezuela impairment. This compared to $7,761 million of net income for the same period in 2006. The decrease primarily was due to higher operating costs and taxes, increased depreciation, depletion and amortization expense, and lower realized prices. These impacts were partially offset by the company's asset rationalization efforts and net foreign exchange gains. Midstream Third-quarter financial results: The Midstream segment includes the company's 50 percent interest in DCP Midstream, LLC. Midstream third-quarter net income was $104 million, up slightly from $102 million in the previous quarter and down from $169 million in the third quarter of 2006. The increase from the previous quarter primarily was due to higher volumes. The decrease from the third quarter of 2006 primarily was due to a favorable third-quarter 2006 tax adjustment on an asset sale and lower volumes. Nine months financial results: Midstream net income for the first nine months of 2007 was $291 million, down from $387 million in 2006. The decrease primarily was due to lower volumes, higher operating costs, and the favorable third-quarter 2006 tax adjustment on an asset sale. This decrease was partially offset by higher realized natural gas liquids prices. Refining and Marketing (R&M) Third-quarter financial results: R&M net income was $1,307 million in the third quarter, down from $2,358 million in the previous quarter and $1,464 million in the third quarter of 2006. The decrease from the previous quarter primarily was due to significantly lower realized refining margins, partially offset by higher domestic refining volumes and a $141 million benefit from tax legislation enacted by Germany. The decrease from the third quarter of 2006 primarily was due to lower refining and marketing realized margins and a business interruption insurance benefit recognized in the prior year. The decrease is further attributed to the net impact associated with the contribution of assets to the downstream business venture with EnCana. These decreases were largely offset by a net benefit associated with the company's asset rationalization efforts, as well as the German tax legislation impact. The domestic refining crude oil capacity utilization rate for the third quarter increased to 97 percent, compared with 93 percent in the previous quarter, due in part to lower turnaround activity. The international crude oil capacity utilization rate decreased to 84 percent, compared with 93 percent in the previous quarter, primarily due to the economic shutdown of the Wilhelmshaven, Germany, refinery during the month of August. Worldwide, R&M's refining crude oil capacity utilization rate was 94 percent, up slightly from 93 percent in the previous quarter, and down slightly from 95 percent in the third quarter of 2006. Before-tax turnaround costs were $27 million in the third quarter of 2007, down from $58 million in the previous quarter and $42 million in the third quarter of 2006. Nine months financial results: R&M net income for the first nine months of 2007 was $4,801 million, up from $3,562 million in 2006. The increase primarily was due to the company's asset rationalization efforts, higher realized refining and marketing margins, higher Gulf and East Coast refining volumes, and the German tax legislation impact. This increase was partially offset by the net impact associated with the contribution of assets to the downstream business venture with EnCana, as well as the business interruption insurance benefit recognized in the prior year. LUKOIL Investment Third-quarter financial results: LUKOIL Investment segment net income was $387 million, down from $526 million in the previous quarter and $487 million in the third quarter of 2006. The results include ConocoPhillips' estimated equity share of OAO LUKOIL's (LUKOIL) income for the third quarter based on market indicators and historical production trends for LUKOIL. The decrease in net income from the previous quarter primarily was due to lower estimated realized prices, higher estimated operating costs, and the net impact from the alignment of estimated net income to LUKOIL's reported results. This decrease was partially offset by higher estimated volumes. The decrease from the third quarter of 2006 primarily was due to the net impact from the alignment of estimated net income to LUKOIL's reported results and higher estimated operating costs. This decrease was partially offset by higher estimated volumes, ConocoPhillips' increased equity ownership, and higher estimated realized prices. For the third quarter of 2007, ConocoPhillips estimated its equity share of LUKOIL production was 432,000 BOE per day and its share of LUKOIL daily refining crude oil throughput was 226,000 barrels per day. Nine months financial results: Net income for the first nine months of 2007 was $1,169 million, up from $1,123 million in 2006. The increase primarily was due to higher estimated volumes, ConocoPhillips' increased equity ownership, and higher estimated realized prices. This increase was mostly offset by the net impact from the alignment of estimated net income to LUKOIL's reported results and higher estimated operating costs. 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 $110 million, up from $68 million in the second quarter of 2007 and down from $142 million in the third quarter of 2006. The increase from the previous quarter primarily was due to a second-quarter asset retirement and lower utility costs. The decrease from the third quarter of 2006 was largely due to lower olefins and polyolefins margins and, to a lesser extent, lower aromatics and styrenics margins. Nine months financial results: Net income for the first nine months of 2007 was $260 million, down from $394 million in 2006. The decrease primarily was due to lower olefins and polyolefins margins and higher turnaround costs. Emerging Businesses The Emerging Businesses segment's third-quarter net income was $3 million, compared to a net loss of $12 million in the second quarter of 2007, and net income of $11 million in the third quarter of 2006. The increase from the previous quarter primarily was due to improved power generation results. Corporate and Other Third-quarter Corporate expenses were $320 million, after-tax, down from $337 million in the previous quarter and up from $301 million in the third quarter of 2006. The decrease from the previous quarter primarily was due to lower net interest expense, partially offset by deferred tax expense related to foreign currency impacts. The increase from the third quarter of 2006 primarily was due to net foreign exchange impacts, largely offset by lower net interest expense and acquisition-related costs. ConocoPhillips' third-quarter effective tax rate was 42.3 percent, compared with an effective tax rate of 91.4 percent in the second quarter of 2007. The second-quarter effective tax rate adjusted for the Venezuela impairment was 40.6 percent. Outlook Mr. Mulva concluded: "We continue to progress our long-term strategic investment plans, and we remain focused on improving our operations and financial flexibility. As planned, we repurchased $2.5 billion of our shares in the third quarter, and we anticipate fourth-quarter 2007 repurchases to be between $2 billion and $3 billion. The results from our asset rationalization program have met our expectations, with proceeds of approximately $3.5 billion since inception. We anticipate continued progress through the remainder of 2007 and into next year. "Operationally, we recently completed two key downstream projects. The commissioning of a coker and other modifications have enabled the Borger, Texas, refinery to efficiently produce ultra-low-sulfur diesel fuel, lower costs and process more heavy, sour crude oils. An expansion at the company's Ferndale, Wash., refinery has resulted in a 4 percent increase in the refinery's crude capacity and improved energy efficiency. In upstream, we achieved first commercial production earlier this month from the Surmont oil sands project in Canada. "We anticipate the company's fourth-quarter E&P segment production will be 50,000 to 60,000 BOE per day higher than the third quarter as a result of normal seasonality and the successful completion of our summer maintenance program. "In our downstream refining business, the fourth-quarter crude oil capacity utilization rate is expected to be in the mid-90 percent range. Turnaround costs are anticipated to be approximately $85 million before-tax for the quarter. "We recently announced an agreement with Archer Daniels Midland Company to collaborate on the development of renewable transportation fuels from biomass. We are hopeful this collaboration will provide innovative technology toward the large-scale production of biofuels that can be moved efficiently and affordably through existing infrastructure. ConocoPhillips believes the development of next-generation biofuels is a critical step in the diversification of our nation's energy sources." ConocoPhillips is an integrated petroleum company with interests around the world. Headquartered in Houston, the company had approximately 32,500 employees, $173 billion of assets, and $180 billion of annualized revenues as of September 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/financial_reports/earnings_reports 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 Becky Johnson, 281-293-6743 (media) or Gary Russell, 212-207-1996 (investors) EX-99.2 3 a5525743-ex992.txt EXHIBIT 99.2 EXHIBIT 99.2 ConocoPhillips Houston, Texas 77079 Preliminary FINANCIAL HIGHLIGHTS
Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 ------------ ------------ ------------- ------------ Revenues and Other Income Sales and other operating revenues* $ 46,062 48,076 $ 134,752 142,131 Equity in earnings of affiliates 1,314 1,196 3,749 3,320 Other income 557 313 1,696 537 ------------ ------------ ------------- ------------ 47,933 49,585 140,197 145,988 ------------ ------------ ------------- ------------ Costs and Expenses Purchased crude oil, natural gas and products 30,862 30,551 88,397 93,454 Production and operating expenses 2,620 2,640 7,669 7,549 Selling, general and administrative expenses 569 650 1,700 1,826 Exploration expenses 218 197 739 443 Depreciation, depletion and amortization 2,052 2,137 6,092 5,282 Impairment - expropriated assets - - 4,588 - Impairments 188 267 285 317 Taxes other than income taxes* 4,583 4,853 13,654 13,661 Accretion on discounted liabilities 81 74 241 207 Interest and debt expense 391 308 1,017 783 Foreign currency transaction gains (20) (50) (198) (10) Minority interests 25 21 65 60 ------------ ------------ ------------- ------------ 41,569 41,648 124,249 123,572 ------------ ------------ ------------- ------------ Income before income taxes 6,364 7,937 15,948 22,416 Provision for income taxes 2,691 4,061 8,428 10,063 ------------ ------------ ------------- ------------ Net Income 3,673 3,876 7,520 12,353 ============ ============ ============= ============ Net Income per share of common stock (dollars) Basic $ 2.26 2.35 $ 4.60 7.90 ============ ============ ============= ============ Diluted $ 2.23 2.31 $ 4.54 7.78 ============ ============ ============= ============ Average common shares outstanding (in thousands) Basic 1,622,456 1,652,623 1,635,128 1,564,423 Diluted 1,644,267 1,675,839 1,657,244 1,587,892 *Includes excise taxes on petroleum products sales: $ 3,954 4,098 $ 11,864 12,010
1 ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA Millions of Dollars Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 ----------- ----------- ---------- ----------- SUMMARY OF NET INCOME (LOSS) E&P United States $1,225 995 $ 3,196 3,476 International 857 909 (1,189) 4,285 ----------- ----------- ---------- ----------- Total E&P 2,082 1,904 2,007 7,761 ----------- ----------- ---------- ----------- Midstream 104 169 291 387 ----------- ----------- ---------- ----------- R&M United States 873 1,444 3,648 3,174 International 434 20 1,153 388 ----------- ----------- ---------- ----------- Total R&M 1,307 1,464 4,801 3,562 ----------- ----------- ---------- ----------- LUKOIL Investment 387 487 1,169 1,123 Chemicals 110 142 260 394 Emerging Businesses 3 11 (10) 7 Corporate and other (320) (301) (998) (881) ----------- ----------- ---------- ----------- Consolidated $3,673 3,876 $ 7,520 12,353 =========== =========== ========== =========== 2 ConocoPhillips Houston, Texas 77079 Preliminary SELECTED FINANCIAL DATA
Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 -------- -------- -------- ------- Effective tax rate % 42.3 % 51.2 52.8 % 44.9 Millions of Dollars FOREIGN CURRENCY GAINS (LOSSES) AFTER-TAX E&P $ 13 (20) $ 182 (47) Midstream - - (1) - R&M - (6) (2) 25 LUKOIL Investment 3 1 3 2 Chemicals - - - - Emerging Businesses 1 - 1 - Corporate and other (35) 48 (65) 4 -------- -------- -------- ------- $ (18) 23 $ 118 (16) ======== ======== ======== ======= CASH FLOWS FROM OPERATING ACTIVITIES Net Income $ 3,673 3,876 $ 7,520 12,353 Depreciation, depletion and amortization 2,052 2,137 6,092 5,282 Impairment - expropriated assets - - 4,588 - Impairments 188 267 285 317 Dry hole costs and leasehold impairments 74 56 355 141 Accretion on discounted liabilities 81 74 241 207 Deferred taxes (125) 495 55 273 Undistributed equity earnings (237) (253) (1,472) (1,007) Gain on asset dispositions (389) (8) (1,316) (64) Other (60) (282) 28 (296) Working capital adjustments 734 (127) 1,254 (1,327) -------- -------- -------- ------- Net cash provided by operating activities $ 5,991 6,235 $17,630 15,879 ======== ======== ======== ======= CAPITAL EXPENDITURES AND INVESTMENTS E&P United States $ 840 828 $ 2,556 2,003 International 1,337 1,626 4,339 4,829 -------- -------- -------- ------- 2,177 2,454 6,895 6,832 Midstream - - 2 2 R&M 276 374 752 2,484 LUKOIL Investment - 702 - 1,962 Chemicals - - - - Emerging Businesses 62 6 127 46 Corporate and other 45 61 131 187 -------- -------- -------- ------- $ 2,560 3,597 $ 7,907 11,513 ======== ======== ======== ======= OTHER At September 30, 2007 At December 31, 2006 --------------------- -------------------- Total debt $21,876 $27,134 Common stockholders' equity 86,933 82,646
3 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS BY SEGMENT Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 ------- -------- ------- --------- Thousands of Barrels Daily E&P Crude oil produced United States Alaska 241 234 261 265 Lower 48 103 119 104 101 ------- -------- ------- --------- 344 353 365 366 Norway 166 190 163 190 United Kingdom 37 50 47 56 Canada 17 26 19 25 China 29 36 33 32 Indonesia 11 11 12 13 Vietnam 22 24 22 25 Timor Sea 21 40 24 39 Libya 48 71 47 49 Other 35 64 43 60 ------- -------- ------- --------- Total consolidated 730 865 775 855 Equity affiliates Canada 29 - 27 - Russia 15 15 15 15 Venezuela - 89 56 102 ------- -------- ------- --------- Total Worldwide 774 969 873 972 ======= ======== ======= ========= Syncrude 27 23 24 20 ======= ======== ======= ========= Natural gas liquids produced United States Alaska* 15 11 18 18 Lower 48 73 75 71 58 ------- -------- ------- --------- 88 86 89 76 Norway 7 9 7 9 United Kingdom 4 2 5 3 Canada 26 28 29 23 Timor Sea 11 20 12 20 Other 3 1 3 1 ------- -------- ------- --------- Total Worldwide 139 146 145 132 ======= ======== ======= ========= *Includes reinjected volumes sold lease-to-lease. 11 7 14 11 Millions of Cubic Feet Daily Natural gas produced* United States Alaska 116 123 113 150 Lower 48 2,219 2,320 2,210 1,953 ------- -------- ------- --------- 2,335 2,443 2,323 2,103 Norway 226 260 225 263 United Kingdom 519 665 656 770 Canada 1,069 1,154 1,118 930 China 13 8 12 6 Timor Sea 194 300 229 232 Indonesia 349 342 336 320 Vietnam 19 20 15 21 Libya 9 - 7 - Other 183 187 195 173 ------- -------- ------- --------- Total consolidated 4,916 5,379 5,116 4,818 Equity affiliates Venezuela - 8 6 9 ------- -------- ------- --------- Total Worldwide 4,916 5,387 5,122 4,827 ======= ======== ======= ========= *Represents quantities available for sale. Excludes gas equivalent of NGL shown above. Liquefied natural gas sales 436 522 483 407 LUKOIL Investment Production (MBOE/D)* 432 436 450 388 Refinery crude oil throughput (MB/D)* 226 164 210 165 *Represents our estimated net share of LUKOIL. 4 ConocoPhillips Houston, Texas 77079 Preliminary OPERATING HIGHLIGHTS
Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 ---------- ----------- --------- ---------- E&P Per Unit Average sales prices Crude oil (per barrel) United States Alaska $73.57 69.66 $64.29 64.48 Lower 48 67.77 62.45 58.57 59.21 Total U.S. 72.00 67.25 62.70 63.05 International 74.03 67.45 65.19 65.27 Total consolidated 73.01 67.37 63.99 64.30 Equity affiliates* 44.60 46.98 44.30 47.36 Total Worldwide 71.34 65.04 61.80 62.18 Natural gas (per MCF) United States Alaska 2.15 3.36 3.50 3.47 Lower 48 5.38 6.00 6.03 6.25 Total U.S. 5.36 5.98 6.01 6.21 International 5.75 5.87 6.24 6.23 Total consolidated 5.56 5.92 6.13 6.22 Equity affiliates* - 0.32 0.30 0.30 Total Worldwide 5.56 5.91 6.13 6.21 *Excludes our equity share of LUKOIL reported in the LUKOIL Investment segment. Midstream Thousands of Barrels Daily Natural gas liquids extracted Consolidated United States 26 23 21 23 International - - - - Equity affiliates United States 182 180 179 180 International 8 7 8 6 ---------- ----------- --------- ---------- 216 210 208 209 ========== =========== ========= ========== Per Barrel U.S. product prices Weighted average NGL** Consolidated $48.62 44.10 $43.85 41.16 DCP 47.73 43.00 42.86 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.
5 ConocoPhillips Houston, Texas 77079
Three Months Ended Nine Months Ended September 30 September 30 2007 2006 2007 2006 ---------- ---------- ---------- ---------- Thousands of Barrels Daily Thousands of Barrels Daily R&M United States* Crude oil capacity** 2,037 2,208 2,034 2,208 Crude oil runs 1,980 2,127 1,938 1,990 Refinery production 2,177 2,334 2,139 2,173 International* Crude oil capacity** 687 693 693 637 Crude oil runs 574 617 616 586 Refinery production 593 643 634 613 U.S. petroleum products sales volumes Gasoline 1,212 1,369 1,256 1,309 Distillates 869 848 853 827 Other products 439 519 473 530 ---------- ---------- ---------- ---------- 2,520 2,736 2,582 2,666 International 629 749 694 772 ---------- ---------- ---------- ---------- 3,149 3,485 3,276 3,438 ========== ========== ========== ========== Per Gallon Per Gallon U.S. average sales prices*** Gasoline-wholesale $ 2.32 2.27 $ 2.23 2.13 Gasoline-retail 2.43 2.46 2.38 2.28 Distillates-wholesale 2.36 2.31 2.18 2.15 *Includes ConocoPhillips' share of equity affiliates, except for our share of LUKOIL, which is reported in the LUKOIL Investment segment. **Weighted-average crude oil capacity for the three-and nine-month periods. Actual capacity at September 30, 2007 and 2006, was 2,037,000 and 2,208,000 barrels per day, respectively, for our domestic refineries, 669,000 and 693,000 barrels per day, respectively, for our international refineries and 2,706,000 and 2,901,000 barrels per day, respectively, worldwide. ***Excludes excise taxes.
6 EX-99.3 4 a5525743-ex993.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 1,225 3,196 International E&P 1,372 2,004 909 1,215 5,500 1,413 (3,459) 857 (1,189) - --------------------------------------------------------------------------- --------------------------------------- Total E&P 2,553 3,304 1,904 2,087 9,848 2,329 (2,404) 2,082 2,007 - --------------------------------------------------------------------------- --------------------------------------- Midstream 110 108 169 89 476 85 102 104 291 - --------------------------------------------------------------------------- --------------------------------------- U.S. R&M 297 1,433 1,444 741 3,915 896 1,879 873 3,648 International R&M 93 275 20 178 566 240 479 434 1,153 - --------------------------------------------------------------------------- --------------------------------------- Total R&M 390 1,708 1,464 919 4,481 1,136 2,358 1,307 4,801 - --------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment 249 387 487 302 1,425 256 526 387 1,169 Chemicals 149 103 142 98 492 82 68 110 260 Emerging Businesses 8 (12) 11 8 15 (1) (12) 3 (10) Corporate and Other (168) (412) (301) (306) (1,187) (341) (337) (320) (998) - --------------------------------------------------------------------------- --------------------------------------- Consolidated 3,291 5,186 3,876 3,197 15,550 3,546 301 3,673 7,520 =========================================================================== ======================================= 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 1,225 3,196 International E&P 1,372 2,004 909 1,215 5,500 1,413 (3,459) 857 (1,189) - --------------------------------------------------------------------------- --------------------------------------- Total E&P 2,553 3,304 1,904 2,087 9,848 2,329 (2,404) 2,082 2,007 - --------------------------------------------------------------------------- --------------------------------------- Midstream 110 108 169 89 476 85 102 104 291 - --------------------------------------------------------------------------- --------------------------------------- U.S. R&M 297 1,433 1,444 741 3,915 896 1,879 873 3,648 International R&M 93 275 20 178 566 240 479 434 1,153 - --------------------------------------------------------------------------- --------------------------------------- Total R&M 390 1,708 1,464 919 4,481 1,136 2,358 1,307 4,801 - --------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment 249 387 487 302 1,425 256 526 387 1,169 Chemicals 149 103 142 98 492 82 68 110 260 Emerging Businesses 8 (12) 11 8 15 (1) (12) 3 (10) Corporate and Other (168) (412) (301) (306) (1,187) (341) (337) (320) (998) - --------------------------------------------------------------------------- --------------------------------------- Consolidated 3,291 5,186 3,876 3,197 15,550 3,546 301 3,673 7,520 =========================================================================== ======================================= 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 1,867 4,919 International E&P 2,862 3,814 3,460 2,948 13,084 2,894 (1,976) 2,357 3,275 ------------------------------------------------------------------------- --------------------------------------- Total E&P 4,715 5,876 5,058 4,328 19,977 4,319 (349) 4,224 8,194 ------------------------------------------------------------------------- --------------------------------------- Midstream 173 187 214 150 724 132 156 157 445 ------------------------------------------------------------------------- --------------------------------------- U.S. R&M 512 2,260 2,282 1,195 6,249 1,400 2,891 1,369 5,660 International R&M 112 343 107 222 784 218 633 403 1,254 ------------------------------------------------------------------------- --------------------------------------- Total R&M 624 2,603 2,389 1,417 7,033 1,618 3,524 1,772 6,914 ------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment 257 398 496 311 1,462 262 542 396 1,200 Chemicals 209 134 191 128 662 107 80 140 327 Emerging Businesses 9 (20) 14 11 14 (3) (20) (17) (40) Corporate and Other (190) (496) (425) (428) (1,539) (369) (415) (308) (1,092) ------------------------------------------------------------------------- --------------------------------------- Consolidated 5,797 8,682 7,937 5,917 28,333 6,066 3,518 6,364 15,948 ========================================================================= ======================================= 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% 34.4% 35.0% International E&P 52.1% 47.5% 73.7% 58.8% 58.0% 51.2% - 63.6% - ------------------------------------------------------------------------- --------------------------------------- Total E&P 45.9% 43.8% 62.4% 51.8% 50.7% 46.1% - 50.7% 75.5% ------------------------------------------------------------------------- --------------------------------------- Midstream 36.4% 42.2% 21.0% 40.7% 34.3% 35.6% 34.6% 33.8% 34.6% ------------------------------------------------------------------------- --------------------------------------- U.S. R&M 42.0% 36.6% 36.7% 38.0% 37.3% 36.0% 35.0% 36.2% 35.5% International R&M 17.0% 19.8% 81.3% 19.8% 27.8% -10.1% 24.3% -7.7% 8.1% ------------------------------------------------------------------------- --------------------------------------- Total R&M 37.5% 34.4% 38.7% 35.1% 36.3% 29.8% 33.1% 26.2% 30.6% ------------------------------------------------------------------------- --------------------------------------- LUKOIL Investment 3.1% 2.8% 1.8% 2.9% 2.5% 2.3% 3.0% 2.3% 2.6% Chemicals 28.7% 23.1% 25.7% 23.4% 25.7% 23.4% 15.0% 21.4% 20.5% Emerging Businesses 11.1% 40.0% 21.4% 27.3% -7.1% 66.7% 40.0% - 75.0% Corporate and Other 11.6% 16.9% 29.2% 28.5% 22.9% 7.6% 18.8% -3.9% 8.6% ------------------------------------------------------------------------- --------------------------------------- Consolidated 43.2% 40.3% 51.2% 46.0% 45.1% 41.5% 91.4% 42.3% 52.8% ========================================================================= ======================================= Page 2 of 12
- -------------------------------------------------------------------------------------------------------------------- CERTAIN ITEMS INCLUDED IN INCOME FROM CONTINUING OPERATIONS (AFTER-TAX) ConocoPhillips 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 FERC Rulings - - - - - - - 94 94 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 94 141 ------------------------------------------------------------------------- --------------------------------------- International E&P Gain (loss) on asset sales - 25 - - 25 407 (82) 164 489 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) (32) (153) Business interruption insurance claims recovery - - 11 3 14 - - - - Pending claims and settlements - - - 25 25 - - - - ------------------------------------------------------------------------- --------------------------------------- Total (10) 426 (273) (115) 28 357 (4,627) 132 (4,138) ------------------------------------------------------------------------- --------------------------------------- Total E&P (12) 417 (245) (96) 64 393 (4,616) 226 (3,997) ------------------------------------------------------------------------- --------------------------------------- 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 - - - - - - - 2 2 Impairments - - (35) (192) (227) (13) - 3 (10) 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) - 5 (8) ------------------------------------------------------------------------- --------------------------------------- International R&M Gain (loss) on asset sales - - - - - - 163 158 321 Impairments - - (214) - (214) 148 (5) (30) 113 Germany tax rate change - - - - - - - 141 141 Insurance premium adjustments (1) - (1) (1) (3) - - - - ------------------------------------------------------------------------- --------------------------------------- Total (1) - (215) (1) (217) 148 158 269 575 ------------------------------------------------------------------------- --------------------------------------- Total R&M (7) 34 (146) (199) (318) 135 158 275 568 ------------------------------------------------------------------------- --------------------------------------- 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) (11) (40) FERC Rulings - - - - - - - (14) (14) 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) (25) (68) ------------------------------------------------------------------------- --------------------------------------- Total Company (39) 377 (363) (315) (340) 501 (4,495) 475 (3,518) ========================================================================= ======================================= 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 3,673 7,520 DD&A and impairments 1,180 2,015 2,404 2,368 7,967 2,023 2,114 2,240 6,377 Impairment - expropriated assets - - - - - - 4,588 - 4,588 Dry hole costs and leasehold impairments 38 47 56 210 351 148 133 74 355 Accretion on discounted liabilities 60 73 74 74 281 79 81 81 241 Deferred income taxes 168 (390) 495 (56) 217 77 103 (125) 55 Undistributed equity earnings (67) (687) (253) 62 (945) (557) (678) (237) (1,472) Net gain on asset dispositions (3) (53) (8) (52) (116) (499) (428) (389) (1,316) Other (203) 189 (282) 95 (201) (94) 182 (60) 28 Net working capital changes 336 (1,536) (127) (261) (1,588) 2,150 (1,630) 734 1,254 - ----------------------------------------------------------------------------- -------------------------------------------- Net Cash Provided by Operating Activities 4,800 4,844 6,235 5,637 21,516 6,873 4,766 5,991 17,630 - ----------------------------------------------------------------------------- -------------------------------------------- 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) (2,177) (6,895) Midstream (1) (1) - (2) (4) - (2) - (2) R&M (1,635) (475) (374) (532) (3,016) (205) (271) (276) (752) LUKOIL Investment (612) (648) (702) (753) (2,715) - - - - Chemicals - - - - - - - - - Emerging Businesses (12) (28) (6) (37) (83) (31) (34) (62) (127) Corporate and Other (48) (78) (61) (78) (265) (41) (45) (45) (131) - ----------------------------------------------------------------------------- -------------------------------------------- Total capital expend. & investments (4,514) (3,402) (3,597) (4,083) (15,596) (2,847) (2,500) (2,560) (7,907) Acquisition of Burlington Resources Inc.* (14,190) (94) (1) - (14,285) - - - - Proceeds from asset dispositions 5 68 173 299 545 1,343 872 842 3,057 Long-term advances to/collections from affiliates and other investments (115) (151) (251) (140) (657) (144) (97) (118) (359) - ----------------------------------------------------------------------------- -------------------------------------------- Net Cash Used for Investing Activities (18,814) (3,579) (3,676) (3,924) (29,993) (1,648) (1,725) (1,836) (5,209) - ----------------------------------------------------------------------------- -------------------------------------------- Cash Flows from Financing Activities Net issuance (repayment) of debt 15,324 (2,756) (1,630) (706) 10,232 (3,491) (865) (961) (5,317) Issuance of stock 40 64 41 75 220 40 141 70 251 Repurchase of stock - (425) (250) (250) (925) (1,000) (1,000) (2,501) (4,501) Dividends (496) (595) (593) (593) (2,277) (674) (668) (667) (2,009) Other (27) (20) (76) (62) (185) (49) (104) (136) (289) - ----------------------------------------------------------------------------- -------------------------------------------- Net Cash Provided by (Used for) Financing Activities 14,841 (3,732) (2,508) (1,536) 7,065 (5,174) (2,496) (4,195) (11,865) - ----------------------------------------------------------------------------- -------------------------------------------- Effect of Exchange Rate Changes (33) 113 (9) (56) 15 (8) 6 8 6 - ----------------------------------------------------------------------------- -------------------------------------------- Net Change in Cash and Cash Equivalents 794 (2,354) 42 121 (1,397) 43 551 (32) 562 Cash and cash equivalents at beginning of period 2,214 3,008 654 696 2,214 817 860 1,411 817 - ----------------------------------------------------------------------------- -------------------------------------------- Cash and Cash Equivalents at End of Period 3,008 654 696 817 817 860 1,411 1,379 1,379 ============================================================================= ============================================ * 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) 2,082 2,007 ========================================================================= ======================================= Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 1,610 2,134 2,036 2,047 1,957 2,020 1,910 1,759 1,896 ------------------------------------------------------------------------- --------------------------------------- E&P segment plus LUKOIL Investment segment: 1,932 2,537 2,472 2,485 2,358 2,465 2,383 2,191 2,346 ------------------------------------------------------------------------- --------------------------------------- Crude Oil and Condensate (MB/D) Consolidated 777 924 865 859 856 840 760 730 775 Equity affiliates 126 121 104 113 116 120 128 44 98 ------------------------------------------------------------------------- --------------------------------------- Total 903 1,045 969 972 972 960 888 774 873 ========================================================================= ======================================= Sales of crude oil produced (MB/D) 913 1,040 953 988 973 949 876 803 875 ------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids (MB/D) 97 152 146 150 136 150 145 139 145 ------------------------------------------------------------------------- --------------------------------------- Natural Gas (MMCF/D) Consolidated 3,554 5,498 5,379 5,387 4,961 5,313 5,124 4,916 5,116 Equity affiliates 11 10 8 7 9 9 9 - 6 ------------------------------------------------------------------------- --------------------------------------- Total 3,565 5,508 5,387 5,394 4,970 5,322 5,133 4,916 5,122 ========================================================================= ======================================= Canadian Syncrude (MB/D) 16 19 23 26 21 23 21 27 24 ------------------------------------------------------------------------- --------------------------------------- Industry Prices (Platt's) Crude Oil ($/bbl) WTI spot 63.28 70.40 70.38 59.94 66.00 57.99 64.89 75.48 66.12 Brent dated 61.75 69.62 69.49 59.68 65.14 57.76 68.76 74.87 67.13 Natural Gas ($/mmbtu) Henry Hub -- First of Month 9.01 6.80 6.58 6.56 7.24 6.77 7.55 6.16 6.83 ------------------------------------------------------------------------- --------------------------------------- Average Realized Prices Crude Oil and Condensate ($/bbl) Consolidated 58.97 65.89 67.37 56.87 62.39 55.17 64.55 73.01 63.99 Equity affiliates 43.38 52.28 46.98 41.79 46.01 40.02 47.74 44.60 44.30 Total 56.63 64.34 65.04 55.10 60.37 53.38 61.97 71.34 61.80 ------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids ($/bbl) 43.13 41.75 43.62 38.23 41.50 38.56 44.80 48.09 43.71 ------------------------------------------------------------------------- --------------------------------------- Natural Gas ($/mcf) Consolidated 7.26 5.86 5.92 6.13 6.20 6.36 6.45 5.56 6.13 Equity affiliates 0.23 0.36 0.32 0.32 0.30 0.29 0.30 - 0.30 Total 7.24 5.85 5.91 6.12 6.19 6.35 6.44 5.56 6.13 ------------------------------------------------------------------------- --------------------------------------- Exploration Charges ($ Millions) Dry Holes 19 15 18 142 194 62 74 23 159 Lease Impairments 19 33 37 68 157 86 59 51 196 ------------------------------------------------------------------------- --------------------------------------- Total Non-Cash Charges 38 48 55 210 351 148 133 74 355 Other (G&G and Lease Rentals) 74 86 142 181 483 114 126 144 384 ------------------------------------------------------------------------- --------------------------------------- Total Exploration Charges 112 134 197 391 834 262 259 218 739 ========================================================================= ======================================= Depreciation, Depletion and Amortization (DD&A) ($ Millions) 910 1,659 1,860 1,703 6,132 1,802 1,790 1,828 5,420 ------------------------------------------------------------------------- --------------------------------------- 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 1,225 3,196 =========================================================================== ======================================= Alaska ($ Millions) 692 760 425 470 2,347 507 535 765 1,807 - --------------------------------------------------------------------------- --------------------------------------- Lower 48 ($ Millions) 489 540 570 402 2,001 409 520 460 1,389 - --------------------------------------------------------------------------- --------------------------------------- Production Total U.S. (MBOE/D) 636 894 846 856 808 855 848 821 841 - --------------------------------------------------------------------------- --------------------------------------- Crude Oil and Condensate (MB/D) Alaska 283 279 234 257 263 276 267 241 261 Lower 48 64 120 119 113 104 104 105 103 104 - --------------------------------------------------------------------------- --------------------------------------- Total 347 399 353 370 367 380 372 344 365 =========================================================================== ======================================= Sales of crude oil produced (MB/D) 363 398 355 371 371 372 370 380 374 - ------------------------------------------- ------ ------ ------ ------- ------- ------- ------ ------ ------- Natural Gas Liquids (MB/D)* Alaska 22 20 11 17 17 22 18 15 18 Lower 48 29 70 75 72 62 68 71 73 71 - --------------------------------------------------------------------------- --------------------------------------- Total 51 90 86 89 79 90 89 88 89 =========================================================================== ======================================= *Includes reinjection volumes sold lease-to-lease: 14 14 7 9 11 16 15 11 14 - --------------------------------------------------------------------------- --------------------------------------- Natural Gas (MMCF/D) Alaska 163 163 123 131 145 122 100 116 113 Lower 48 1,264 2,265 2,320 2,250 2,028 2,190 2,219 2,219 2,210 - --------------------------------------------------------------------------- --------------------------------------- Total 1,427 2,428 2,443 2,381 2,173 2,312 2,319 2,335 2,323 =========================================================================== ======================================= Average Realized Prices Crude Oil and Condensate ($/bbl) Alaska North Slope 52.92 59.89 62.85 51.11 56.47 48.83 56.31 66.54 57.40 - --------------------------------------------------------------------------- --------------------------------------- West Coast 58.87 66.02 69.66 57.00 62.66 55.50 63.26 73.57 64.29 - --------------------------------------------------------------------------- --------------------------------------- Lower 48 52.21 59.63 62.45 51.26 57.04 49.32 58.50 67.77 58.57 - --------------------------------------------------------------------------- --------------------------------------- Total U.S. 57.70 64.09 67.25 55.26 61.09 53.78 61.91 72.00 62.70 - --------------------------------------------------------------------------- --------------------------------------- Natural Gas Liquids ($/bbl) Alaska 58.88 65.25 67.12 57.03 61.06 55.27 63.52 73.40 63.02 - --------------------------------------------------------------------------- --------------------------------------- Lower 48 38.20 38.29 41.34 34.51 38.10 36.46 43.29 46.37 42.18 - --------------------------------------------------------------------------- --------------------------------------- Total U.S. 43.00 40.45 42.68 36.74 40.35 37.86 44.17 47.73 43.34 - --------------------------------------------------------------------------- --------------------------------------- Natural Gas ($/mcf) Alaska 3.58 3.42 3.36 4.05 3.59 4.19 4.04 2.15 3.50 - --------------------------------------------------------------------------- --------------------------------------- Lower 48 7.50 5.81 6.00 5.85 6.14 6.21 6.51 5.38 6.03 - --------------------------------------------------------------------------- --------------------------------------- Total U.S. 7.42 5.78 5.98 5.84 6.11 6.19 6.49 5.36 6.01 - --------------------------------------------------------------------------- --------------------------------------- Kenai, Alaska LNG Sales Volume (MMCF/D) 128 126 110 88 113 104 72 88 88 - --------------------------------------------------------------------------- --------------------------------------- Sales price per MCF 6.45 5.16 6.16 6.33 6.00 5.83 5.86 6.01 5.90 - --------------------------------------------------------------------------- --------------------------------------- U.S. Exploration Charges ($ Millions) Dry Holes 8 3 8 67 86 13 36 19 68 Lease Impairments 8 15 13 46 82 43 43 43 129 - --------------------------------------------------------------------------- --------------------------------------- Total Non-Cash Charges 16 18 21 113 168 56 79 62 197 Other (G&G and Lease Rentals) 14 1 66 55 136 26 40 57 123 - --------------------------------------------------------------------------- --------------------------------------- Total U.S. Exploration Charges 30 19 87 168 304 82 119 119 320 =========================================================================== ======================================= Alaska Only 18 (7) 50 21 82 17 32 31 80 - --------------------------------------------------------------------------- --------------------------------------- DD&A ($ Millions) Alaska 132 135 137 151 555 168 167 165 500 Lower 48 251 634 784 623 2,292 618 661 667 1,946 - --------------------------------------------------------------------------- --------------------------------------- Total U.S. 383 769 921 774 2,847 786 828 832 2,446 =========================================================================== ======================================= 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) 857 (1,189) ======================================================================== ===================================== Production Total, Including Equity Affiliates and Canadian Syncrude (MBOE/D) 974 1,240 1,190 1,191 1,149 1,165 1,062 938 1,055 - ------------------------------------------------------------------------ ------------------------------------- Crude Oil and Condensate (MB/D) Consolidated Norway 188 192 190 185 189 179 145 166 163 United Kingdom 62 57 50 56 56 55 48 37 47 Canada 22 27 26 27 25 21 19 17 19 China 25 34 36 36 33 38 32 29 33 Indonesia 14 14 11 10 12 13 13 11 12 Vietnam 31 22 24 23 25 23 22 22 22 Timor Sea 39 39 40 27 36 24 26 21 24 Libya - 74 71 56 50 45 47 48 47 Other 49 66 64 69 63 62 36 35 43 Equity affiliates Canada - - - - - 23 28 29 27 Russia 16 15 15 14 15 15 15 15 15 Venezuela 110 106 89 99 101 82 85 - 56 - ------------------------------------------------------------------------ ------------------------------------- Total 556 646 616 602 605 580 516 430 508 ======================================================================== ===================================== Sales of crude oil produced (MB/D) 550 642 598 617 602 577 506 423 501 - ------------------------------------------------------------------------ ------------------------------------- Natural Gas Liquids (MB/D) Norway 11 8 9 8 9 8 5 7 7 United Kingdom 4 4 2 6 4 6 6 4 5 Canada 9 30 28 31 25 31 28 26 29 Timor Sea 20 20 20 15 18 12 14 11 12 Other 2 - 1 1 1 3 3 3 3 - ------------------------------------------------------------------------ ------------------------------------- Total 46 62 60 61 57 60 56 51 56 ======================================================================== ===================================== Natural Gas (MMCF/D) Consolidated Norway 269 260 260 291 270 247 202 226 225 United Kingdom 851 796 665 734 761 785 668 519 656 Canada 424 1,204 1,154 1,140 983 1,152 1,133 1,069 1,118 China - 10 8 9 7 11 12 13 12 Timor Sea 144 251 300 243 235 243 250 194 229 Indonesia 294 323 342 315 319 331 329 349 336 Vietnam 24 19 20 20 21 15 12 19 15 Libya - - - 17 4 5 9 9 7 Other 121 207 187 237 188 212 190 183 195 Equity affiliates Canada - - - - - - - - - Russia - - - - - - - - - Venezuela 11 10 8 7 9 9 9 - 6 - ------------------------------------------------------------------------ ------------------------------------- Total 2,138 3,080 2,944 3,013 2,797 3,010 2,814 2,581 2,799 ======================================================================== ===================================== Canadian Syncrude (MB/D) 16 19 23 26 21 23 21 27 24 - ------------------------------------------------------------------------ ------------------------------------- Darwin, Australia LNG Sales (MMCF/D) 136 305 411 382 310 388 449 347 395 - ------------------------------------------------------------------------ ------------------------------------- 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 ($/bbl) Consolidated Norway 61.36 68.64 68.48 60.07 64.61 57.36 67.50 75.54 66.41 United Kingdom 59.13 65.32 64.67 58.71 62.08 55.52 66.99 72.98 64.27 Canada 44.28 60.86 61.00 49.28 54.25 48.70 58.42 67.75 57.74 China 57.90 66.68 64.68 51.06 60.00 54.93 66.39 71.79 63.71 Indonesia 57.94 58.15 62.69 52.21 57.80 54.66 65.46 72.46 64.32 Vietnam 62.34 68.53 71.35 56.77 64.75 57.88 67.03 75.14 66.36 Timor Sea 60.37 66.98 66.84 57.27 63.21 59.15 73.51 71.20 67.96 Libya - 68.07 67.75 58.19 65.11 56.19 67.39 73.88 65.85 Other 62.95 69.20 70.39 60.92 65.85 55.73 67.71 74.48 63.64 Equity affiliates Canada - - - - - 32.46 32.46 38.48 34.83 Russia 40.86 46.87 48.29 36.86 43.20 37.92 50.25 55.84 48.90 Venezuela 43.71 53.03 46.78 42.48 46.40 42.54 51.54 - 47.46 Total 55.92 64.50 63.73 55.00 59.92 53.12 62.02 70.75 61.13 - ------------------------------------------------------------------------ ------------------------------------- Natural Gas Liquids ($/bbl) Norway 42.55 40.99 43.91 39.46 41.61 38.82 45.72 46.77 43.34 United Kingdom 35.39 34.87 38.51 22.38 31.29 34.93 39.34 36.91 36.92 Canada 46.21 46.73 46.16 43.87 45.62 41.15 46.82 51.77 46.33 Timor Sea 46.68 41.35 45.63 41.62 43.95 44.13 49.43 48.71 47.24 Other 8.11 8.09 8.11 8.25 8.15 8.32 29.42 34.00 23.74 Total 43.25 43.28 44.89 40.25 42.89 39.38 45.64 48.63 44.21 - ------------------------------------------------------------------------ ------------------------------------- Natural Gas ($/mcf) Consolidated Norway 7.28 7.09 7.48 8.58 7.61 7.00 7.10 7.51 7.19 United Kingdom 8.81 6.84 7.08 8.52 7.85 8.14 7.23 6.69 7.45 Canada 6.28 5.47 5.43 5.91 5.67 6.38 6.60 5.13 6.05 China - 1.90 4.11 2.80 2.87 2.64 2.74 2.78 2.73 Timor Sea 0.67 0.65 0.69 0.74 0.69 0.76 0.68 0.66 0.70 Indonesia 7.45 7.53 6.71 5.78 6.86 6.04 6.99 7.78 6.96 Vietnam 1.07 1.07 1.07 1.05 1.06 1.10 1.09 1.12 1.10 Libya - - - 0.09 0.09 0.07 0.09 0.09 0.09 Other 0.82 2.57 2.04 2.02 1.98 2.71 2.53 2.41 2.55 Equity affiliates Canada - - - - - - - - - Russia - - - - - - - - - Venezuela 0.23 0.36 0.32 0.32 0.30 0.29 0.30 - 0.30 Total 7.13 5.90 5.85 6.36 6.25 6.47 6.40 5.75 6.22 - ------------------------------------------------------------------------ ------------------------------------- International Exploration Charges ($ Millions) Dry Holes 11 12 10 75 108 49 38 4 91 Lease Impairments 11 18 24 22 75 43 16 8 67 - ------------------------------------------------------------------------ ------------------------------------- Total Non-Cash Charges 22 30 34 97 183 92 54 12 158 Other (G&G and Lease Rentals) 60 85 76 126 347 88 86 87 261 - ------------------------------------------------------------------------ ------------------------------------- Total International Exploration Charges 82 115 110 223 530 180 140 99 419 ======================================================================== ===================================== DD&A ($ Millions) 527 890 939 929 3,285 1,016 962 996 2,974 - ------------------------------------------------------------------------ ------------------------------------- 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 1,307 4,801 ========================================================================= ======================================= United States ($ Millions) 297 1,433 1,444 741 3,915 896 1,879 873 3,648 ------------------------------------------------------------------------- --------------------------------------- International ($ Millions) 93 275 20 178 566 240 479 434 1,153 ------------------------------------------------------------------------- --------------------------------------- Market Indicators U.S. East Coast Crack Spread ($/bbl) 7.52 15.21 10.54 7.86 10.28 11.81 22.57 11.73 15.37 U.S. Gulf Coast Crack Spread ($/bbl) 8.28 17.26 11.00 6.77 10.83 10.06 24.28 11.74 15.36 U.S. Group Central Crack Spread ($/bbl) 9.81 19.60 17.75 10.11 14.32 14.84 31.26 20.92 22.34 U.S. West Coast Crack Spread ($/bbl) 18.87 32.47 21.70 20.36 23.35 28.68 34.32 16.22 26.40 U.S. Weighted 3:2:1 Crack Spread ($/bbl) 10.56 20.39 14.86 10.49 14.07 15.30 27.56 14.74 19.20 NW Europe Crack Spread ($/bbl) 10.18 15.20 14.18 11.46 12.75 12.06 15.56 13.37 13.66 Singapore 3:1:2 Crack Spread ($/bbl) 10.58 19.30 15.13 11.03 14.01 14.06 17.94 14.80 15.60 U.S. Wholesale Gasoline Mktg Mrgn ($/bbl) 0.71 1.83 5.75 1.81 2.52 1.15 2.09 0.65 1.30 ------------------------------------------------------------------------- --------------------------------------- Realized Margins Refining Margin ($/bbl) U.S. 10.18 17.23 14.10 11.39 13.29 11.87 19.59 10.86 14.04 International 5.30 7.64 6.46 6.22 6.50 5.06 9.68 6.05 6.99 ------------------------------------------------------------------------- --------------------------------------- Marketing Margin ($/bbl)* U.S. 0.12 0.48 2.92 1.34 1.23 1.31 2.36 2.20 1.96 International 6.07 6.67 11.17 9.50 8.38 7.08 7.68 9.49 7.99 ------------------------------------------------------------------------- --------------------------------------- DD&A ($ Millions) 239 253 246 266 1,004 191 196 194 581 ------------------------------------------------------------------------- --------------------------------------- Turnaround Expense ($ Millions) 163 115 42 94 414 75 58 27 160 ------------------------------------------------------------------------- --------------------------------------- Eastern U.S. Crude Oil Charge Input (MB/D) 354 281 377 411 356 411 404 383 399 Total Charge Input (MB/D) 359 309 418 457 386 460 447 414 440 Crude Oil Capacity Utilization (%) 84% 66% 89% 97% 84% 97% 96% 91% 94% Clean Product Yield (%) 90% 87% 88% 90% 89% 89% 86% 86% 87% ------------------------------------------------------------------------- --------------------------------------- U.S. Gulf Coast Crude Oil Charge Input (MB/D) 529 681 730 737 670 744 709 736 729 Total Charge Input (MB/D) 587 777 822 812 750 823 790 829 814 Crude Oil Capacity Utilization (%) 72% 93% 100% 101% 91% 102% 97% 100% 100% Clean Product Yield (%) 74% 81% 83% 80% 80% 81% 81% 80% 80% ------------------------------------------------------------------------- --------------------------------------- Western U.S. Crude Oil Charge Input (MB/D) 386 419 420 397 406 333 388 415 379 Total Charge Input (MB/D) 419 443 446 426 433 375 420 445 414 Crude Oil Capacity Utilization (%) 94% 101% 102% 96% 98% 81% 94% 100% 91% Clean Product Yield (%) 79% 81% 80% 79% 80% 79% 79% 80% 79% ------------------------------------------------------------------------- --------------------------------------- Central U.S. - Consolidated Crude Oil Charge Input (MB/D) 571 619 600 583 593 185 170 166 174 Total Charge Input (MB/D) 613 663 638 621 634 188 175 170 178 Crude Oil Capacity Utilization (%) 89% 97% 94% 91% 93% 99% 91% 89% 93% Clean Product Yield (%) 84% 86% 85% 85% 85% 88% 93% 88% 90% ------------------------------------------------------------------------- --------------------------------------- Central U.S. - Equity Affiliates - Net Share** Crude Oil Charge Input (MB/D) - - - - - 265 225 280 257 Total Charge Input (MB/D) - - - - - 288 250 301 279 Crude Oil Capacity Utilization (%) - - - - - 96% 81% 101% 93% Clean Product Yield (%) - - - - - 82% 85% 83% 83% ------------------------------------------------------------------------- --------------------------------------- TOTAL UNITED STATES Crude Oil Charge Input (MB/D) 1,840 2,000 2,127 2,128 2,025 1,938 1,896 1,980 1,938 Total Charge Input (MB/D) 1,978 2,192 2,324 2,316 2,203 2,134 2,082 2,159 2,125 Crude Oil Capacity Utilization (%) 83% 91% 96% 96% 92% 95% 93% 97% 95% Clean Product Yield (%) 81% 83% 84% 83% 83% 83% 83% 82% 83% ------------------------------------------------------------------------- --------------------------------------- Refined Products Production (MB/D) Gasoline 890 1,031 1,084 1,061 1,017 962 957 959 959 Distillates 684 764 821 824 774 762 736 779 759 Other 414 403 429 440 422 428 394 439 421 ------------------------------------------------------------------------- --------------------------------------- Total 1,988 2,198 2,334 2,325 2,213 2,152 2,087 2,177 2,139 ========================================================================= ======================================= Petroleum Products Sales (MB/D) Gasoline 1,258 1,300 1,369 1,416 1,336 1,258 1,300 1,212 1,256 Distillates 813 820 848 921 850 862 827 869 853 Other 517 555 519 535 531 480 503 439 473 ------------------------------------------------------------------------- --------------------------------------- Total 2,588 2,675 2,736 2,872 2,717 2,600 2,630 2,520 2,582 ========================================================================= ======================================= * 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
- -------------------------------------------------------------------------------------------------------------------- ConocoPhillips 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) 357 505 474 461 450 503 505 434 481 Total Charge Input (MB/D) 369 550 503 494 479 532 528 455 505 Crude Oil Capacity Utilization (%) 94% 92% 86% 83% 88% 91% 92% 79% 87% Clean Product Yield (%) 71% 64% 69% 72% 69% 68% 67% 71% 69% - --------------------------------------------------------------------------- ---------------------------------------- International - Equity Affiliates - Net Share** Crude Oil Charge Input (MB/D) 133 144 143 144 141 120 145 140 135 Total Charge Input (MB/D) 137 149 149 147 145 121 146 142 137 Crude Oil Capacity Utilization (%) 94% 102% 102% 102% 100% 83% 101% 104% 96% Clean Product Yield (%) 82% 82% 81% 80% 81% 77% 79% 81% 79% - --------------------------------------------------------------------------- ---------------------------------------- TOTAL INTERNATIONAL Crude Oil Charge Input (MB/D) 490 649 617 605 591 623 650 574 616 Total Charge Input (MB/D) 506 699 652 641 624 653 674 597 642 Crude Oil Capacity Utilization (%) 94% 94% 89% 87% 91% 90% 93% 84% 89% Clean Product Yield (%) 74% 68% 72% 74% 72% 70% 69% 74% 71% - --------------------------------------------------------------------------- ---------------------------------------- Refined Products Production (MB/D) Gasoline 142 165 165 172 161 160 159 160 160 Distillates 228 297 288 291 276 289 302 273 288 Other 130 233 190 170 181 195 203 160 186 - --------------------------------------------------------------------------- ---------------------------------------- Total 500 695 643 633 618 644 664 593 634 =========================================================================== ======================================== Petroleum Products Sales (MB/D) Gasoline 197 225 204 186 203 176 186 161 174 Distillates 339 397 374 399 377 381 379 328 363 Other 159 249 171 135 179 156 174 140 157 - --------------------------------------------------------------------------- ---------------------------------------- Total 695 871 749 720 759 713 739 629 694 =========================================================================== ======================================== 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 2,554 Total Charge Input (MB/D) 2,484 2,891 2,976 2,957 2,827 2,787 2,756 2,756 2,767 Crude Oil Capacity Utilization (%) 85% 91% 95% 94% 92% 94% 93% 94% 94% Clean Product Yield (%) 79% 80% 81% 81% 80% 80% 80% 80% 80% - --------------------------------------------------------------------------- ---------------------------------------- Refined Products Production (MB/D) Gasoline 1,032 1,196 1,249 1,233 1,178 1,122 1,116 1,119 1,119 Distillates 912 1,061 1,109 1,115 1,050 1,051 1,038 1,052 1,047 Other 544 636 619 610 603 623 597 599 607 - --------------------------------------------------------------------------- ---------------------------------------- Total 2,488 2,893 2,977 2,958 2,831 2,796 2,751 2,770 2,773 =========================================================================== ======================================== Petroleum Products Sales (MB/D) Gasoline 1,455 1,525 1,573 1,602 1,539 1,434 1,486 1,373 1,430 Distillates 1,152 1,217 1,222 1,320 1,227 1,243 1,206 1,197 1,216 Other 676 804 690 670 710 636 677 579 630 - --------------------------------------------------------------------------- ---------------------------------------- Total 3,283 3,546 3,485 3,592 3,476 3,313 3,369 3,149 3,276 =========================================================================== ======================================== * 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, and 47 percent interest in a refinery in Melaka, Malaysia. Through August 31, 2007, represents a 16.33 percent interest in two refineries in Kralupy and Litvinov, Czech Republic. We sold our interest in the two Czech refineries effective September 1, 2007. 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 1,425 256 526 387 1,169 ======================================================================= =========================================== Upstream Production* Net crude oil production (MB/D) 306 346 388 397 360 393 427 390 404 Net natural gas production (MMCF/D) 98 343 288 247 244 309 278 249 278 BOE Total (MBOE/D) 322 403 436 438 401 445 473 432 450 ----------------------------------------------------------------------- ------------------------------------------- * Represents our estimated net share of LUKOIL's production. Industry Prices Crude Oil ($/bbl) Urals crude (CIF Mediterranean) 58.25 64.85 65.81 56.48 61.35 53.96 65.30 72.21 64.02 ----------------------------------------------------------------------- ------------------------------------------- Downstream Refinery Throughput* Crude Processed (MB/D) 163 168 164 220 179 219 184 226 210 ----------------------------------------------------------------------- ------------------------------------------- * Represents our estimated net share of LUKOIL's crude processed. MIDSTREAM 2006 2007 ----------------------------------------- ------------------------------------------- 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD ----------------------------------------- ------------------------------------------- Midstream Net Income ($ Millions) 110 108 169 89 476 85 102 104 291 ======================================================================= =========================================== U.S. Equity Affiliate ($ Millions)* 93 91 128 73 385 50 76 90 216 ----------------------------------------------------------------------- ------------------------------------------- Natural Gas Liquids Extracted (MB/D) Consolidated United States 23 22 23 21 22 15 23 26 21 International - - - - - - - - - Equity Affiliates United States* 178 183 180 181 181 174 181 182 179 International 6 6 7 7 6 8 7 8 8 ----------------------------------------------------------------------- ------------------------------------------- Total 207 211 210 209 209 197 211 216 208 ======================================================================= =========================================== * Represents 50 percent interest in DCP Midstream. Natural Gas Liquids Fractionated (MB/D) United States* 141 125 124 136 131 161 163 155 160 International 11 14 14 12 13 13 13 13 13 ----------------------------------------------------------------------- ------------------------------------------- Total 152 139 138 148 144 174 176 168 173 ======================================================================= =========================================== * Excludes DCP Midstream. Product Prices Weighted Average NGL ($/bbl)* Consolidated 37.64 41.73 44.10 37.41 40.22 37.73 45.19 48.62 43.85 DCP Midstream 37.29 41.18 43.00 36.34 39.45 36.55 44.30 47.73 42.86 ----------------------------------------------------------------------- ------------------------------------------- * Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix. DD&A ($ Millions) 7 8 7 7 29 4 3 4 11 ----------------------------------------------------------------------- ------------------------------------------- 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 68 110 260 ========================================================================== ================================================= Industry Margins (Cents/Lb)* Ethylene industry cash margin 20.5 14.3 17.0 16.0 17.0 11.1 10.8 11.5 11.1 HDPE industry contract sales margin 15.9 14.0 13.9 11.9 13.9 13.5 14.6 14.8 14.3 Styrene industry contract sales margin 12.5 11.9 11.3 11.5 11.8 11.1 11.6 11.5 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) 3 (10) ======================================= ======== ======== ======== ======== ======== ======== ======== ======= ============== Detail of Net Income (Loss) ($ Millions) Power 31 3 26 22 82 13 (1) 21 33 Other (23) (15) (15) (14) (67) (14) (11) (18) (43) -------------------------------------------------------------------------- ------------------------------------------------- Total 8 (12) 11 8 15 (1) (12) 3 (10) ========================================================================== ================================================= 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) (320) (998) ========================================================================== ================================================= Detail of Net Income (Loss) ($ Millions) Net interest expense (93) (267) (242) (268) (870) (244) (224) (195) (663) Corporate overhead (26) (39) (35) (33) (133) (23) (54) (49) (126) Acquisition-related expenses (5) (39) (32) (22) (98) (13) (16) (11) (40) Other (44) (67) 8 17 (86) (61) (43) (65) (169) -------------------------------------------------------------------------- ------------------------------------------------- Total (168) (412) (301) (306) (1,187) (341) (337) (320) (998) ========================================================================== ================================================= Before-Tax Net Interest Expense ($ Millions) Interest expense (226) (468) (417) (434) (1,545) (395) (411) (485) (1,291) Capitalized interest 111 107 110 130 458 135 139 141 415 Interest revenue 30 35 38 2 105 31 24 153 208 Premium on early debt retirement - - - - - (17) - - (17) -------------------------------------------------------------------------- ------------------------------------------------- (85) (326) (269) (302) (982) (246) (248) (191) (685) ========================================================================== ================================================= Debt Total Debt ($ Millions) 32,193 29,510 27,807 27,134 27,134 23,668 22,812 21,876 21,876 Debt-to-Capital Ratio 30% 27% 25% 24% 24% 22% 21% 20% 20% -------------------------------------------------------------------------- ------------------------------------------------- Page 12 of 12
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