8-K

UNITED STATESSECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORTPursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): January 23, 2008

ConocoPhillips(Exact name of registrant as specified in its charter)

Delaware	001-32395	01-0562944
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

600 North Dairy Ashford
Houston, Texas 77079

(Address of principal executive offices and zip code)

Registrant’s telephone number, including area code: (281) 293-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

⃞ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

⃞ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

⃞ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

⃞ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02     Results of Operations and Financial Condition.

On January 23, 2008, ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended December 31, 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):

• Earnings adjusted for the second-quarter 2007 Venezuela impairment.
• Diluted earnings per share adjusted for the second-quarter 2007 Venezuela impairment.
• E&P earnings 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 useful indicator of the company's ongoing earnings 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 January 23, 2008.

99.2 — Financial and operational tables.

99.3 — Supplemental financial information.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	CONOCOPHILLIPS
	/s/ Rand C. Berney
	Rand C. Berney
	Vice President and Controller
January 23, 2008

EXHIBIT INDEX

ExhibitNo.	Description
99.1	Press release issued by ConocoPhillips on January 23, 2008.
99.2	Financial and operational tables.
99.3	Supplemental financial information.

EX-99.1

Exhibit 99.1

ConocoPhillips Reports Fourth-Quarter Net Income of $4.4 Billion Or $2.71 Per Diluted Share

HOUSTON--(BUSINESS WIRE)--ConocoPhillips (NYSE:COP):

Earnings at a glance
	Fourth Quarter		Twelve Months
	2007	2006	2007	2006
Net income	$4,371 million	3,197 million	$11,891 million	15,550 million
Diluted income per share	$2.71	1.91	$7.22	9.66
Earnings adjusted for the second-quarter 2007 Venezuela impairment	$4,371 million	3,197 million	$16,403 million	15,550 million
Diluted earnings per share adjusted for the second-quarter 2007 Venezuela impairment	$2.71	1.91	$9.97	9.66
Revenues*	$52.7 billion	41.5 billion	$187.4 billion	183.7 billion
* 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 fourth-quarter net income of $4,371 million, or $2.71 per share. This compared with $3,197 million, or $1.91 per share, for the same quarter in 2006. Revenues were $52.7 billion, versus $41.5 billion a year ago.

“During the fourth quarter, our upstream business produced 2.26 million BOE per day, including our share of LUKOIL’s production,” said Jim Mulva, chairman and chief executive officer. “In the downstream business, our worldwide refining crude oil capacity utilization rate improved to 95 percent.

“We ended the quarter with debt of $21.7 billion, a debt-to-capital ratio of 19 percent and a cash balance of $1.5 billion. During the quarter, we repurchased $2.5 billion of ConocoPhillips common stock, funded $4.3 billion of our capital program, reduced debt by $0.2 billion, and paid $0.7 billion in dividends. This was accomplished using $6.9 billion of cash generated from operations and $0.5 billion in proceeds from asset dispositions.”

For 2007, net income was $11,891 million, or $7.22 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 2007 adjusted for the Venezuela impairment were $16,403 million, or $9.97 per share, versus net income of $15,550 million, or $9.66 per share, for 2006. Revenues were $187.4 billion, versus $183.7 billion a year ago.

The results for ConocoPhillips’ business segments follow.

Exploration and Production (E&P)

Fourth-quarter financial results: E&P fourth-quarter net income was $2,608 million, compared with third-quarter net income of $2,082 million, and fourth-quarter 2006 net income of $2,087 million. The increase from the third quarter of 2007 was primarily due to higher realized commodity prices, a deferred tax benefit from a federal rate reduction recently enacted in Canada, and the release of escrowed funds in connection with the extinguishment of the Hamaca project financing. This increase was partially offset by increased production taxes, primarily due to legislation enacted by the state of Alaska; lower net gains from asset rationalization efforts; and the absence of a benefit related to retroactive adjustments for crude oil quality differentials on Trans-Alaska Pipeline System shipments. The Alaska production tax legislation impact was $234 million after-tax, of which $95 million is associated with periods prior to the fourth quarter of 2007.

The increase from the fourth quarter of 2006 was primarily due to higher realized commodity prices, the Canadian tax-rate reduction, and the benefit from the release of the escrowed funds. This increase was partially offset by higher production taxes, including the Alaska production tax legislation impact, and lower volumes.

Daily production from the E&P segment, including Canadian Syncrude and excluding the LUKOIL Investment segment, averaged 1.84 million barrels of oil equivalent (BOE) per day, an increase from 1.76 million BOE per day in the previous quarter, and a decrease from 2.05 million BOE per day in the fourth quarter of 2006. The production increase from the previous quarter was primarily due to increased volumes from the United Kingdom and Alaska, reflecting seasonality and less planned and unplanned downtime.

The production decrease from the fourth quarter of 2006 was primarily due to expropriation of the company’s Venezuelan oil projects, ConocoPhillips’ exit from Dubai, the effect of asset dispositions, planned maintenance in the Timor Sea, and unplanned downtime in Nigeria.

Before-tax exploration expenses were $268 million in the fourth quarter of 2007, compared with $218 million in the previous quarter and $391 million in the fourth quarter of 2006.

Twelve-month financial results: E&P net income for 2007 was $4,615 million, or earnings of $9,127 million adjusted for the second-quarter 2007 Venezuela impairment. This compared with $9,848 million of net income for 2006. The decrease in earnings adjusted for the Venezuela impairment was primarily due to lower volumes; higher operating costs and taxes; and increased depreciation, depletion and amortization expense. These impacts were partially offset by higher realized prices and the net benefit from the company’s asset rationalization efforts.

Midstream

Fourth-quarter financial results: The Midstream segment had fourth-quarter net income of $162 million, up from $104 million in the previous quarter and $89 million in the fourth quarter of 2006. The increases from the previous quarter and the fourth quarter of 2006 were primarily due to higher realized natural gas liquids prices.

Twelve-month financial results: Midstream net income for 2007 was $453 million, down from $476 million in 2006. The decrease was primarily due to lower realized processing margins, partially offset by higher realized natural gas liquids prices.

Refining and Marketing (R&M)

Fourth-quarter financial results: R&M net income was $1,122 million in the fourth quarter, down from $1,307 million in the previous quarter and up from $919 million in the fourth quarter of 2006. The decrease from the previous quarter was primarily due to a lower net benefit from the company’s asset rationalization efforts and the absence of a third-quarter German tax legislation benefit. This decrease was partially offset by slightly higher realized worldwide refining margins. In the United States, although market indicators were lower, the company’s realized margins benefited from planned inventory reductions and improved refining market capture due to crude differentials and clean product yield.

The increase from the fourth quarter of 2006 was primarily due to higher realized worldwide refining margins and net benefits from the company’s asset rationalization efforts. This increase was partially offset by lower volumes due to the contribution of assets to the downstream business venture with EnCana and foreign currency impacts.

The domestic refining crude oil capacity utilization rate for the fourth quarter was 96 percent, a 1 percent decrease from the previous quarter due to higher turnaround activity, partially offset by lower unplanned downtime. The international crude oil capacity utilization rate was 92 percent, up from 84 percent in the previous quarter. The increase was primarily due to the return of the Wilhelmshaven, Germany, refinery to a full quarter of production.

Worldwide, R&M’s refining crude oil capacity utilization rate was 95 percent, up slightly from 94 percent in both the previous quarter and the fourth quarter of 2006. Before-tax turnaround costs were $80 million in the fourth quarter of 2007, up from $27 million in the previous quarter and down from $94 million in the fourth quarter of 2006.

Twelve-month financial results: R&M net income for 2007 was $5,923 million, up from $4,481 million in 2006. The increase was primarily due to the company’s asset rationalization efforts and higher realized worldwide refining margins. The benefits from higher market cracks and planned inventory reductions were partially offset by the impact of specific refinery configurations and crude differentials on the company’s market capture. In addition, net income benefited from higher Gulf and East Coast refining volumes and the German tax legislation benefit. The improvement in net income was partially offset by the net impact associated with the contribution of assets to the downstream business venture with EnCana, foreign currency impacts, and lower marketing sales volumes due to the marketing disposition program.

LUKOIL Investment

Fourth-quarter financial results: LUKOIL Investment segment net income was $649 million, up from $387 million in the previous quarter and $302 million in the fourth quarter of 2006. The results include ConocoPhillips’ estimated equity share of OAO LUKOIL’s (LUKOIL) income for the fourth quarter based on market indicators and LUKOIL’s publicly available operating results.

The increase in net income from the previous quarter was primarily due to higher estimated realized prices and the net impact from the alignment of estimated net income to LUKOIL’s reported results. This increase was partially offset by higher estimated extraction and export taxes and lower estimated volumes. The increase from the fourth quarter of 2006 was primarily due to higher estimated realized prices, partially offset by the higher estimated taxes, the net impact from the alignment of estimated net income to LUKOIL’s reported results, and higher estimated operating costs.

For the fourth quarter of 2007, ConocoPhillips estimated its equity share of LUKOIL production was 426,000 BOE per day and its share of LUKOIL daily refining crude oil throughput was 227,000 barrels per day.

Twelve-month financial results: Net income for 2007 was $1,818 million, up from $1,425 million in 2006. The increase was primarily due to higher estimated realized prices, higher estimated volumes, and ConocoPhillips’ increased equity ownership. This increase was partially offset by the higher estimated taxes and operating costs, as well as the net impact from the alignment of estimated net income to LUKOIL’s reported results.

Chemicals

Fourth-quarter financial results: The Chemicals segment had fourth-quarter net income of $99 million, which included a one-time, capital-loss tax benefit of $65 million. Net income for the segment was $110 million in the third quarter of 2007 and $98 million in the fourth quarter of 2006. Excluding the one-time tax benefit, the decreases from the previous quarter and the fourth quarter of 2006 were primarily due to lower olefins and polyolefins margins, and to a lesser extent, lower margins for aromatics and styrenics.

Twelve-month financial results: Net income for 2007 was $359 million, down from $492 million in 2006. The decrease was primarily due to lower olefins and polyolefins margins and higher turnaround and repair costs, partially offset by the one-time tax benefit.

Emerging Businesses

The Emerging Businesses segment had net income of $2 million in the fourth quarter, down from $3 million in the previous quarter and $8 million in the fourth quarter of 2006. The decrease from the fourth quarter of 2006 was primarily due to higher spending associated with the company’s alternative energy programs.

Corporate and Other

Fourth-quarter Corporate expenses were $271 million after-tax, down from $320 million in the previous quarter and $306 million in the fourth quarter of 2006. The decreases from the previous quarter and the fourth quarter of 2006 were primarily due to lower net interest expense and lower acquisition-related charges, partially offset by net foreign exchange losses.

The company’s effective tax rate for the quarter was 40.3 percent. This compared with 42.3 percent in the previous quarter and 46.0 percent in the fourth quarter of 2006.

Outlook

Mr. Mulva concluded:

“We had another solid quarter, which contributed to a strong year in terms of operating performance and market conditions, enabling us to achieve positive financial results. We are delivering on our commitments, and we remain focused on continuous improvement in all of our operations.

“We were pleased to recently advance two important initiatives. Before year-end, ConocoPhillips acquired a 50 percent equity interest in the Keystone crude oil pipeline. This pipeline will play a critical role in supplying North American crude oil to refineries in the U.S. mid-continent region. In addition, we signed a Memorandum of Understanding with Qatar Petroleum International to pursue and develop international energy projects outside of Qatar, which represents an exciting opportunity for both companies.

“ConocoPhillips also recently announced its decision to join and support the World Bank’s Global Gas Flaring Reduction partnership. We are committed to minimizing the environmental impact and improving the energy and material efficiency of our operations, and are confident this partnership will lead to major progress in reducing gas flaring around the world.

“As planned, we repurchased $7 billion of ConocoPhillips common stock during the year, and the number of weighted-average diluted shares outstanding during the fourth quarter was 1,612 million. For the first quarter of 2008, we anticipate share repurchases will be between $2 billion and $3 billion.

“Our asset rationalization program remains on target, with proceeds of approximately $3.8 billion since inception. We expect to continue our rationalization efforts in 2008, including the completion of the disposition of our U.S. retail assets. We will evaluate additional opportunities to optimize and strengthen our asset portfolio as the year progresses.

“We anticipate the company’s first-quarter E&P segment production will be approximately 1.8 million BOE per day, and we expect exploration expenses to be in the range of $250 million to $300 million for the quarter. Downstream, we anticipate the worldwide refining crude oil capacity utilization rate in the first quarter to be in the mid-90-percent range. Turnaround costs are expected to be approximately $125 million before-tax for the quarter.

“Our previously announced capital program of $15.3 billion for 2008 supports our value-generating growth strategies, as well as a complementary financial strategy designed to strengthen distributions to shareholders through increased dividends and continued share repurchases.

“We look forward to discussing our 2008 capital and operating plans in greater detail when we meet with the investment community on March 12 in New York.”

ConocoPhillips is an international, integrated energy company with interests around the world. Headquartered in Houston, the company had approximately 32,600 employees, $178 billion of assets, and $187 billion of revenues as of December 31, 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, Houston
Becky Johnson, 281-293-6743 (media)
or
Gary Russell, 212-207-1996 (investors)

EX-99.2

Exhibit 99.2

ConocoPhillips Houston, Texas 77079
Preliminary
FINANCIAL HIGHLIGHTS
	Millions of Dollars
	Three Months Ended					Twelve Months Ended
	December 31					December 31
		2007		2006			2007		2006
Revenues and Other Income
Sales and other operating revenues*	$	52,685		41,519		$	187,437		183,650
Equity in earnings of affiliates		1,338		868			5,087		4,188
Other income		275		148			1,971		685
		54,298		42,535			194,495		188,523
Costs and Expenses
Purchased crude oil, natural gas and products		35,032		25,445			123,429		118,899
Production and operating expenses		3,014		2,864			10,683		10,413
Selling, general and administrative expenses		606		650			2,306		2,476
Exploration expenses		268		391			1,007		834
Depreciation, depletion and amortization		2,206		2,002			8,298		7,284
Impairment - expropriated assets		-		-			4,588		-
Impairments		157		366			442		683
Taxes other than income taxes*		5,336		4,526			18,990		18,187
Accretion on discounted liabilities		100		74			341		281
Interest and debt expense		236		304			1,253		1,087
Foreign currency transaction gains		(3	)	(20	)		(201	)	(30	)
Minority interests		22		16			87		76
		46,974		36,618			171,223		160,190
Income before income taxes		7,324		5,917			23,272		28,333
Provision for income taxes		2,953		2,720			11,381		12,783
Net Income		4,371		3,197			11,891		15,550
Net Income per share of common stock (dollars)
Basic	$	2.75		1.94		$	7.32		9.80
Diluted	$	2.71		1.91		$	7.22		9.66
Average common shares outstanding (in thousands)
Basic		1,590,957		1,649,960			1,623,994		1,585,982
Diluted		1,612,179		1,672,375			1,645,919		1,609,530
*Includes excise taxes on petroleum products sales:	$	4,073		4,062		$	15,937		16,072

1

ConocoPhillips Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
	Millions of Dollars
	Three Months Ended					Twelve Months Ended
	December 31					December 31
		2007		2006			2007		2006
SUMMARY OF NET INCOME (LOSS)
E&P
United States	$	1,052		872		$	4,248		4,348
International		1,556		1,215			367		5,500
Total E&P		2,608		2,087			4,615		9,848
Midstream		162		89			453		476
R&M
United States		967		741			4,615		3,915
International		155		178			1,308		566
Total R&M		1,122		919			5,923		4,481
LUKOIL Investment		649		302			1,818		1,425
Chemicals		99		98			359		492
Emerging Businesses		2		8			(8	)	15
Corporate and other		(271	)	(306	)		(1,269	)	(1,187	)
Consolidated	$	4,371		3,197		$	11,891		15,550

2

ConocoPhillips Houston, Texas 77079
Preliminary
SELECTED FINANCIAL DATA
	Three Months Ended						Twelve Months Ended
	December 31						December 31
		2007			2006			2007			2006
Effective tax rate %		40.3		%	46.0			48.9		%	45.1
	Millions of Dollars
FOREIGN CURRENCY GAINS (LOSSES)
AFTER-TAX
E&P	$	34			3		$	216			(44	)
Midstream		(1	)		-			(2	)		-
R&M		(11	)		35			(13	)		60
LUKOIL Investment		2			(2	)		5			-
Chemicals		-			-			-			-
Emerging Businesses		-			1			1			1
Corporate and other		(55	)		61			(120	)		65
	$	(31	)		98		$	87			82
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	4,371			3,197		$	11,891			15,550
Depreciation, depletion and amortization		2,206			2,002			8,298			7,284
Impairment - expropriated assets		-			-			4,588			-
Impairments		157			366			442			683
Dry hole costs and leasehold impairments		108			210			463			351
Accretion on discounted liabilities		100			74			341			281
Deferred taxes		(212	)		(10	)		(157	)		263
Undistributed equity earnings		(351	)		62			(1,823	)		(945	)
Gain on asset dispositions		(32	)		(52	)		(1,348	)		(116	)
Other		77			95			105			(201	)
Working capital adjustments		496			(307	)		1,750			(1,634	)
Net cash provided by operating activities	$	6,920			5,637		$	24,550			21,516
CAPITAL EXPENDITURES AND INVESTMENTS
E&P
United States	$	1,232			825		$	3,788			2,828
International		1,808			1,856			6,147			6,685
		3,040			2,681			9,935			9,513
Midstream		3			2			5			4
R&M		634			532			1,386			3,016
LUKOIL Investment		-			753			-			2,715
Chemicals		-			-			-			-
Emerging Businesses		130			37			257			83
Corporate and other		77			78			208			265
	$	3,884			4,083		$	11,791			15,596
OTHER
	At December 31, 2007						At December 31, 2006
Total debt	$21,687							27,134
Common stockholders' equity	88,983							82,646

3

ConocoPhillips Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
BY SEGMENT
	Three Months Ended		Twelve Months Ended
	December 31		December 31
	2007	2006	2007	2006
	Thousands of Barrels Daily
E&P
Crude oil produced
United States
Alaska	257	257	261	263
Lower 48	98	113	102	104
	355	370	363	367
Norway	158	185	162	189
United Kingdom	50	56	48	56
Canada	21	27	19	25
China	25	36	31	33
Indonesia	11	10	12	12
Vietnam	22	23	22	25
Timor Sea	19	27	22	36
Libya	47	56	47	50
Other	44	69	44	63
Total consolidated	752	859	770	856
Equity affiliates
Canada	27	-	27	-
Russia	16	14	15	15
Venezuela	-	99	42	101
Total Worldwide	795	972	854	972
Syncrude	23	26	23	21
Natural gas liquids produced
United States
Alaska*	19	17	19	17
Lower 48**	106	72	79	62
	125	89	98	79
Norway	12	8	8	9
United Kingdom	8	6	6	4
Canada	25	31	27	25
Timor Sea	12	15	12	18
Other	5	1	4	1
Total Worldwide	187	150	155	136
*Includes reinjected volumes sold lease-to-lease:	13	9	14	11
**Fourth quarter of 2007 includes 22 MBD related to out-of-period adjustments for the first three quarters in 2007. The amounts attributable to the first, second and third quarters were 5, 8, and 9 MBD, respectively. Fourth quarter NGL production in L48 was 84 MBD excluding the adjustment.
	Millions of Cubic Feet Daily
Natural gas produced*
United States
Alaska	102	131	110	145
Lower 48	2,101	2,250	2,182	2,028
	2,203	2,381	2,292	2,173
Norway	270	291	236	270
United Kingdom	723	734	673	761
Canada	1,073	1,140	1,106	983
China	8	9	11	7
Timor Sea	207	243	223	235
Indonesia	310	315	330	319
Vietnam	14	20	15	21
Libya	9	17	8	4
Other	164	237	188	188
Total consolidated	4,981	5,387	5,082	4,961
Equity affiliates
Venezuela	-	7	5	9
Total Worldwide	4,981	5,394	5,087	4,970
*Represents quantities available for sale. Excludes gas equivalent of NGL shown above.
Liquefied natural gas sales	426	470	468	423
LUKOIL Investment
Production (MBOE/D)*	426	438	444	401
Refinery crude oil throughput (MB/D)*	227	220	214	179
*Represents our estimated net share of LUKOIL.

4

ConocoPhillips Houston, Texas 77079
Preliminary
OPERATING HIGHLIGHTS
	Three Months Ended		Twelve Months Ended
	December 31		December 31
	2007	2006	2007	2006
E&P
	Per Unit
Average sales prices
Crude oil (per barrel)
United States
Alaska	$87.88	57.00	$69.75	62.66
Lower 48	78.98	51.26	63.49	57.04
Total U.S.	85.31	55.26	68.00	61.09
International	87.09	58.06	70.79	63.38
Total consolidated	86.28	56.87	69.47	62.39
Equity affiliates*	52.45	41.79	45.31	46.01
Total Worldwide	84.53	55.10	67.11	60.37
Natural gas (per MCF)
United States
Alaska	$4.12	4.05	$3.68	3.59
Lower 48	5.88	5.85	5.99	6.14
Total U.S.	5.86	5.84	5.98	6.11
International	7.31	6.38	6.51	6.27
Total consolidated	6.66	6.13	6.26	6.20
Equity affiliates*	-	0.32	0.30	0.30
Total Worldwide	6.66	6.12	6.26	6.19
*Excludes our equity share of LUKOIL reported in the LUKOIL Investment segment.
Midstream
	Thousands of Barrels Daily
Natural gas liquids extracted
Consolidated
United States	24	21	22	22
International	-	-	-	-
Equity affiliates
United States	189	181	181	181
International	8	7	8	6
	221	209	211	209
	Per Barrel
U.S. product prices
Weighted average NGL**
Consolidated	$ 60.19	37.41	$ 47.93	40.22
DCP	58.60	36.34	46.80	39.45
**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		Twelve Months Ended
	December 31		December 31
	2007	2006	2007	2006
	Thousands of Barrels Daily		Thousands of Barrels Daily
R&M
United States*
Crude oil capacity**	2,037	2,208	2,035	2,208
Crude oil runs	1,961	2,128	1,944	2,025
Refinery production	2,165	2,325	2,146	2,213
International*
Crude oil capacity**	669	693	687	651
Crude oil runs	617	605	616	591
Refinery production	633	633	633	618
U.S. petroleum products sales volumes
Gasoline	1,207	1,416	1,244	1,336
Distillates	929	921	872	850
Other products	309	535	432	531
	2,445	2,872	2,548	2,717
International	710	720	697	759
	3,155	3,592	3,245	3,476
	Per Gallon		Per Gallon
U.S. average sales prices***
Gasoline-wholesale	$ 2.41	1.74	$ 2.27	2.04
Gasoline-retail	2.54	1.89	2.42	2.18
Distillates-wholesale	2.67	1.95	2.29	2.11
*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 twelve-month periods.
Actual capacity at December 31, 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

Exhibit 99.3

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		1,052		4,248
International E&P	1,372		2,004		909		1,215		5,500		1,413		(3,459	)	857		1,556		367
Total E&P	2,553		3,304		1,904		2,087		9,848		2,329		(2,404	)	2,082		2,608		4,615
Midstream	110		108		169		89		476		85		102		104		162		453
U.S. R&M	297		1,433		1,444		741		3,915		896		1,879		873		967		4,615
International R&M	93		275		20		178		566		240		479		434		155		1,308
Total R&M	390		1,708		1,464		919		4,481		1,136		2,358		1,307		1,122		5,923
LUKOIL Investment	249		387		487		302		1,425		256		526		387		649		1,818
Chemicals	149		103		142		98		492		82		68		110		99		359
Emerging Businesses	8		(12	)	11		8		15		(1	)	(12	)	3		2		(8	)
Corporate and Other	(168	)	(412	)	(301	)	(306	)	(1,187	)	(341	)	(337	)	(320	)	(271	)	(1,269	)
Consolidated	3,291		5,186		3,876		3,197		15,550		3,546		301		3,673		4,371		11,891
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		1,052		4,248
International E&P	1,372		2,004		909		1,215		5,500		1,413		(3,459	)	857		1,556		367
Total E&P	2,553		3,304		1,904		2,087		9,848		2,329		(2,404	)	2,082		2,608		4,615
Midstream	110		108		169		89		476		85		102		104		162		453
U.S. R&M	297		1,433		1,444		741		3,915		896		1,879		873		967		4,615
International R&M	93		275		20		178		566		240		479		434		155		1,308
Total R&M	390		1,708		1,464		919		4,481		1,136		2,358		1,307		1,122		5,923
LUKOIL Investment	249		387		487		302		1,425		256		526		387		649		1,818
Chemicals	149		103		142		98		492		82		68		110		99		359
Emerging Businesses	8		(12	)	11		8		15		(1	)	(12	)	3		2		(8	)
Corporate and Other	(168	)	(412	)	(301	)	(306	)	(1,187	)	(341	)	(337	)	(320	)	(271	)	(1,269	)
Consolidated	3,291		5,186		3,876		3,197		15,550		3,546		301		3,673		4,371		11,891
																	Page 1 of 12

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		1,560		6,479
International E&P	2,862		3,814		3,460		2,948		13,084		2,894		(1,976	)	2,357		3,464		6,739
Total E&P	4,715		5,876		5,058		4,328		19,977		4,319		(349	)	4,224		5,024		13,218
Midstream	173		187		214		150		724		132		156		157		245		690
U.S. R&M	512		2,260		2,282		1,195		6,249		1,400		2,891		1,369		1,526		7,186
International R&M	112		343		107		222		784		218		633		403		167		1,421
Total R&M	624		2,603		2,389		1,417		7,033		1,618		3,524		1,772		1,693		8,607
LUKOIL Investment	257		398		496		311		1,462		262		542		396		663		1,863
Chemicals	209		134		191		128		662		107		80		140		20		347
Emerging Businesses	9		(20	)	14		11		14		(3	)	(20	)	(17	)	(2	)	(42	)
Corporate and Other	(190	)	(496	)	(425	)	(428	)	(1,539	)	(369	)	(415	)	(308	)	(319	)	(1,411	)
Consolidated	5,797		8,682		7,937		5,917		28,333		6,066		3,518		6,364		7,324		23,272
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	%	32.6	%	34.4	%
International E&P	52.1	%	47.5	%	73.7	%	58.8	%	58.0	%	51.2	%	-		63.6	%	55.1	%	94.6	%
Total E&P	45.9	%	43.8	%	62.4	%	51.8	%	50.7	%	46.1	%	-		50.7	%	48.1	%	65.1	%
Midstream	36.4	%	42.2	%	21.0	%	40.7	%	34.3	%	35.6	%	34.6	%	33.8	%	33.9	%	34.3	%
U.S. R&M	42.0	%	36.6	%	36.7	%	38.0	%	37.3	%	36.0	%	35.0	%	36.2	%	36.6	%	35.8	%
International R&M	17.0	%	19.8	%	81.3	%	19.8	%	27.8	%	-10.1	%	24.3	%	-7.7	%	7.2	%	8.0	%
Total R&M	37.5	%	34.4	%	38.7	%	35.1	%	36.3	%	29.8	%	33.1	%	26.2	%	33.7	%	31.2	%
LUKOIL Investment	3.1	%	2.8	%	1.8	%	2.9	%	2.5	%	2.3	%	3.0	%	2.3	%	2.1	%	2.4	%
Chemicals	28.7	%	23.1	%	25.7	%	23.4	%	25.7	%	23.4	%	15.0	%	21.4	%	-		-3.5	%
Emerging Businesses	11.1	%	40.0	%	21.4	%	27.3	%	-7.1	%	66.7	%	40.0	%	-		-		81.0	%
Corporate and Other	11.6	%	16.9	%	29.2	%	28.5	%	22.9	%	7.6	%	18.8	%	-3.9	%	15.0	%	10.1	%
Consolidated	43.2	%	40.3	%	51.2	%	46.0	%	45.1	%	41.5	%	91.4	%	42.3	%	40.3	%	48.9	%
																	Page 2 of 12

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		-		25		72
FERC Rulings	-		-		-		-		-		-		-		94		-		94
Impairments	-		(26	)	-		(10	)	(36	)	-		-		-		(45	)	(45	)
Insurance premium adjustments	(2	)	-		(5	)	(4	)	(11	)	-		-		-		-		-
Pending claims and settlements	-		-		18		-		18		-		-		-		-		-
Business interruption insurance claims recovery	-		-		15		-		15		-		-		-		13		13
Enacted tax legislation	-		2		-		-		2		-		-		-		-		-
Total	(2	)	(9	)	28		19		36		36		11		94		(7	)	134
International E&P
Gain (loss) on asset sales	-		25		-		-		25		407		(82	)	164		147		636
Insurance premium adjustments	(10	)	-		(10	)	(8	)	(28	)	-		-		-		-		-
International tax law changes	-		401		(270	)	(31	)	100		38		-		-		171		209
Impairment - expropriated assets	-		-		-		-		-		-		(4,512	)	-		-		(4,512	)
Impairments	-		-		(4	)	(104	)	(108	)	(88	)	(33	)	(32	)	(75	)	(228	)
Business interruption insurance claims recovery	-		-		11		3		14		-		-		-		-		-
Pending claims and settlements	-		-		-		25		25		-		-		-		28		28
Total	(10	)	426		(273	)	(115	)	28		357		(4,627	)	132		271		(3,867	)
Total E&P	(12	)	417		(245	)	(96	)	64		393		(4,616	)	226		264		(3,733	)
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		14		16
Impairments	-		-		(35	)	(192	)	(227	)	(13	)	-		3		(2	)	(12	)
Enacted tax legislation	-		34		-		-		34		-		-		-		-		-
Insurance premium adjustments	(6	)	-		(7	)	(6	)	(19	)	-		-		-		-		-
Business interruption insurance claims recovery	-		-		111		-		111		-		-		-		10		10
Total	(6	)	34		69		(198	)	(101	)	(13	)	-		5		22		14
International R&M
Gain (loss) on asset sales	-		-		-		-		-		-		163		158		2		323
Impairments	-		-		(214	)	-		(214	)	148		(5	)	(30	)	11		124
Germany tax rate change	-		-		-		-		-		-		-		141		-		141
Insurance premium adjustments	(1	)	-		(1	)	(1	)	(3	)	-		-		-		-		-
Total	(1	)	-		(215	)	(1	)	(217	)	148		158		269		13		588
Total R&M	(7	)	34		(146	)	(199	)	(318	)	135		158		275		35		603
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	)
Tax benefit on capital loss	-		-		-		-		-		-		-		-		65		65
Enacted tax legislation	-		(5	)	-		-		(5	)	-		-		-		-		-
Total	-		(5	)	7		(3	)	(1	)	-		(21	)	-		65		44
Emerging Businesses
Property write-down	-		(14	)	-		-		(14	)	-		-		-		-		-
Total	-		(14	)	-		-		(14	)	-		-		-		-		-
Corporate and Other
Acquisition-related expenses	(5	)	(39	)	(32	)	(22	)	(98	)	(13	)	(16	)	(11	)	(4	)	(44	)
FERC Rulings	-		-		-		-		-		-		-		(14	)	-		(14	)
Premium on early debt retirement	-		-		-		-		-		(14	)	-		-		-		(14	)
Pending claims and settlements	(15	)	-		-		-		(15	)	-		-		-		-		-
Canada tax law change	-		(10	)	-		-		(10	)	-		-		-		15		15
Total	(20	)	(49	)	(32	)	(22	)	(123	)	(27	)	(16	)	(25	)	11		(57	)
Total Company	(39	)	377		(363	)	(315	)	(340	)	501		(4,495	)	475		375		(3,143	)
																	Page 3 of 12

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		4,371		11,891
DD&A and impairments	1,180		2,015		2,404		2,368		7,967		2,023		2,114		2,240		2,363		8,740
Impairment - expropriated assets	-		-		-		-		-		-		4,588		-		-		4,588
Dry hole costs and leasehold impairments	38		47		56		210		351		148		133		74		108		463
Accretion on discounted liabilities	60		73		74		74		281		79		81		81		100		341
Deferred income taxes	168		(390	)	495		(10	)	263		77		103		(125	)	(212	)	(157	)
Undistributed equity earnings	(67	)	(687	)	(253	)	62		(945	)	(557	)	(678	)	(237	)	(351	)	(1,823	)
Net gain on asset dispositions	(3	)	(53	)	(8	)	(52	)	(116	)	(499	)	(428	)	(389	)	(32	)	(1,348	)
Other	(203	)	189		(282	)	95		(201	)	(94	)	182		(60	)	77		105
Net working capital changes	336		(1,536	)	(127	)	(307	)	(1,634	)	2,150		(1,630	)	734		496		1,750
Net Cash Provided by
Operating Activities	4,800		4,844		6,235		5,637		21,516		6,873		4,766		5,991		6,920		24,550
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	)	(3,040	)	(9,935	)
Midstream	(1	)	(1	)	-		(2	)	(4	)	-		(2	)	-		(3	)	(5	)
R&M	(1,635	)	(475	)	(374	)	(532	)	(3,016	)	(205	)	(271	)	(276	)	(634	)	(1,386	)
LUKOIL Investment	(612	)	(648	)	(702	)	(753	)	(2,715	)	-		-		-		-		-
Chemicals	-		-		-		-		-		-		-		-		-		-
Emerging Businesses	(12	)	(28	)	(6	)	(37	)	(83	)	(31	)	(34	)	(62	)	(130	)	(257	)
Corporate and Other	(48	)	(78	)	(61	)	(78	)	(265	)	(41	)	(45	)	(45	)	(77	)	(208	)
Total capital expend. & investments	(4,514	)	(3,402	)	(3,597	)	(4,083	)	(15,596	)	(2,847	)	(2,500	)	(2,560	)	(3,884	)	(11,791	)
Acquisition of Burlington Resources Inc.*	(14,190	)	(94	)	(1	)	-		(14,285	)	-		-		-		-		-
Proceeds from asset dispositions	5		68		173		299		545		1,343		872		842		515		3,572
Long-term advances to/collections from
affiliates and other investments	(115	)	(151	)	(251	)	(140	)	(657	)	(144	)	(97	)	(118	)	16		(343	)
Net Cash Used for Investing Activities	(18,814	)	(3,579	)	(3,676	)	(3,924	)	(29,993	)	(1,648	)	(1,725	)	(1,836	)	(3,353	)	(8,562	)
Cash Flows from Financing Activities
Net issuance (repayment) of debt	15,324		(2,756	)	(1,630	)	(706	)	10,232		(3,491	)	(865	)	(961	)	(202	)	(5,519	)
Issuance of stock	40		64		41		75		220		40		141		70		34		285
Repurchase of stock	-		(425	)	(250	)	(250	)	(925	)	(1,000	)	(1,000	)	(2,501	)	(2,500	)	(7,001	)
Dividends	(496	)	(595	)	(593	)	(593	)	(2,277	)	(674	)	(668	)	(667	)	(652	)	(2,661	)
Other	(27	)	(20	)	(76	)	(62	)	(185	)	(49	)	(104	)	(136	)	(155	)	(444	)
Net Cash Provided by (Used for)
Financing Activities	14,841		(3,732	)	(2,508	)	(1,536	)	7,065		(5,174	)	(2,496	)	(4,195	)	(3,475	)	(15,340	)
Effect of Exchange Rate Changes	(33	)	113		(9	)	(56	)	15		(8	)	6		8		(15	)	(9	)
Net Change in Cash
and Cash Equivalents	794		(2,354	)	42		121		(1,397	)	43		551		(32	)	77		639
Cash and cash equivalents
at beginning of period	2,214		3,008		654		696		2,214		817		860		1,411		1,379		817
Cash and Cash Equivalents
at End of Period	3,008		654		696		817		817		860		1,411		1,379		1,456		1,456
* Net of cash acquired.
																	Page 4 of 12

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 (Loss) ($ Millions)	2,553	3,304	1,904	2,087	9,848	2,329	(2,404	)	2,082	2,608	4,615
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	1,835	1,880
E&P segment plus LUKOIL Investment segment:	1,932	2,537	2,472	2,485	2,358	2,465	2,383		2,191	2,261	2,324
Crude Oil and Condensate (MB/D)
Consolidated	777	924	865	859	856	840	760		730	752	770
Equity affiliates	126	121	104	113	116	120	128		44	43	84
Total	903	1,045	969	972	972	960	888		774	795	854
Sales of crude oil produced (MB/D)	913	1,040	953	988	973	949	876		803	792	854
Natural Gas Liquids (MB/D)	97	152	146	150	136	150	145		139	187	155
Natural Gas (MMCF/D)
Consolidated	3,554	5,498	5,379	5,387	4,961	5,313	5,124		4,916	4,981	5,082
Equity affiliates	11	10	8	7	9	9	9		-	-	5
Total	3,565	5,508	5,387	5,394	4,970	5,322	5,133		4,916	4,981	5,087
Canadian Syncrude (MB/D)	16	19	23	26	21	23	21		27	23	23
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot	63.28	70.40	70.38	59.94	66.00	57.99	64.89		75.48	90.66	72.25
Brent dated	61.75	69.62	69.49	59.68	65.14	57.76	68.76		74.87	88.69	72.52
Natural Gas ($/mmbtu)
Henry Hub -- First of Month	9.01	6.80	6.58	6.56	7.24	6.77	7.55		6.16	6.97	6.86
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated	58.97	65.89	67.37	56.87	62.39	55.17	64.55		73.01	86.28	69.47
Equity affiliates	43.38	52.28	46.98	41.79	46.01	40.02	47.74		44.60	52.45	45.31
Total	56.63	64.34	65.04	55.10	60.37	53.38	61.97		71.34	84.53	67.11
Natural Gas Liquids ($/bbl)	43.13	41.75	43.62	38.23	41.50	38.56	44.80		48.09	54.82	47.13
Natural Gas ($/mcf)
Consolidated	7.26	5.86	5.92	6.13	6.20	6.36	6.45		5.56	6.66	6.26
Equity affiliates	0.23	0.36	0.32	0.32	0.30	0.29	0.30		-	-	0.30
Total	7.24	5.85	5.91	6.12	6.19	6.35	6.44		5.56	6.66	6.26
Exploration Charges ($ Millions)
Dry Holes	19	15	18	142	194	62	74		23	50	209
Lease Impairments	19	33	37	68	157	86	59		51	58	254
Total Non-Cash Charges	38	48	55	210	351	148	133		74	108	463
Other (G&G and Lease Rentals)	74	86	142	181	483	114	126		144	160	544
Total Exploration Charges	112	134	197	391	834	262	259		218	268	1,007
Depreciation, Depletion and
Amortization (DD&A) ($ Millions)	910	1,659	1,860	1,703	6,132	1,802	1,790		1,828	1,971	7,391
										Page 5 of 12

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	1,052	4,248
Alaska ($ Millions)	692	760		425	470	2,347	507	535	765	448	2,255
Lower 48 ($ Millions)	489	540		570	402	2,001	409	520	460	604	1,993
Production
Total U.S. (MBOE/D)	636	894		846	856	808	855	848	821	847	843
Crude Oil and Condensate (MB/D)
Alaska	283	279		234	257	263	276	267	241	257	261
Lower 48	64	120		119	113	104	104	105	103	98	102
Total	347	399		353	370	367	380	372	344	355	363
Sales of crude oil produced (MB/D)	363	398		355	371	371	372	370	380	340	365
Natural Gas Liquids (MB/D)*
Alaska	22	20		11	17	17	22	18	15	19	19
Lower 48**	29	70		75	72	62	68	71	73	106	79
Total	51	90		86	89	79	90	89	88	125	98
*Includes reinjection volumes sold lease-to-lease:	14	14		7	9	11	16	15	11	13	14
Natural Gas (MMCF/D)
Alaska	163	163		123	131	145	122	100	116	102	110
Lower 48	1,264	2,265		2,320	2,250	2,028	2,190	2,219	2,219	2,101	2,182
Total	1,427	2,428		2,443	2,381	2,173	2,312	2,319	2,335	2,203	2,292
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope	52.92	59.89		62.85	51.11	56.47	48.83	56.31	66.54	81.17	62.91
West Coast	58.87	66.02		69.66	57.00	62.66	55.50	63.26	73.57	87.88	69.75
Lower 48	52.21	59.63		62.45	51.26	57.04	49.32	58.50	67.77	78.98	63.49
Total U.S.	57.70	64.09		67.25	55.26	61.09	53.78	61.91	72.00	85.31	68.00
Natural Gas Liquids ($/bbl)
Alaska	58.88	65.25		67.12	57.03	61.06	55.27	63.52	73.40	88.12	71.85
Lower 48***	38.20	38.29		41.34	34.51	38.10	36.46	43.29	46.37	48.88	44.43
Total U.S.	43.00	40.45		42.68	36.74	40.35	37.86	44.17	47.73	51.23	46.00
Natural Gas ($/mcf)
Alaska	3.58	3.42		3.36	4.05	3.59	4.19	4.04	2.15	4.12	3.68
Lower 48	7.50	5.81		6.00	5.85	6.14	6.21	6.51	5.38	5.88	5.99
Total U.S.	7.42	5.78		5.98	5.84	6.11	6.19	6.49	5.36	5.86	5.98
Kenai, Alaska LNG Sales
Volume (MMCF/D)	128	126		110	88	113	104	72	88	78	85
Sales price per MCF	6.45	5.16		6.16	6.33	6.00	5.83	5.86	6.01	7.28	6.21
U.S. Exploration Charges ($ Millions)
Dry Holes	8	3		8	67	86	13	36	19	14	82
Lease Impairments	8	15		13	46	82	43	43	43	40	169
Total Non-Cash Charges	16	18		21	113	168	56	79	62	54	251
Other (G&G and Lease Rentals)	14	1		66	55	136	26	40	57	50	173
Total U.S. Exploration Charges	30	19		87	168	304	82	119	119	104	424
Alaska Only	18	(7	)	50	21	82	17	32	31	26	106
DD&A ($ Millions)
Alaska	132	135		137	151	555	168	167	165	167	667
Lower 48	251	634		784	623	2,292	618	661	667	642	2,588
Total U.S.	383	769		921	774	2,847	786	828	832	809	3,255
**Fourth quarter of 2007 includes 22 MBD related to out-of-period adjustments for the first three quarters in 2007. The amounts attributable to Q1, Q2, and Q3 2007 were 5, 8, and 9 MBD, respectively. Fourth-quarter 2007 NGL production in L48 was 84 MBD excluding the adjustments.
***Fourth quarter of 2007 includes $6.36/bbl related to out-of-period adjustments for the first three quarters in 2007. The amounts attributable to Q1, Q2, and Q3 2007 were $1.64/bbl, $2.23/bbl, and $2.49/bbl, respectively. Fourth-quarter 2007 NGL realized price in L48 was $55.24/bbl excluding the adjustments.
										Page 6 of 12

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 (Loss) ($ Millions)	1,372	2,004	909	1,215	5,500	1,413	(3,459	)	857	1,556	367
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D)	974	1,240	1,190	1,191	1,149	1,165	1,062		938	988	1,037
Crude Oil and Condensate (MB/D)
Consolidated
Norway	188	192	190	185	189	179	145		166	158	162
United Kingdom	62	57	50	56	56	55	48		37	50	48
Canada	22	27	26	27	25	21	19		17	21	19
China	25	34	36	36	33	38	32		29	25	31
Indonesia	14	14	11	10	12	13	13		11	11	12
Vietnam	31	22	24	23	25	23	22		22	22	22
Timor Sea	39	39	40	27	36	24	26		21	19	22
Libya	-	74	71	56	50	45	47		48	47	47
Other	49	66	64	69	63	62	36		35	44	44
Equity affiliates
Canada	-	-	-	-	-	23	28		29	27	27
Russia	16	15	15	14	15	15	15		15	16	15
Venezuela	110	106	89	99	101	82	85		-	-	42
Total	556	646	616	602	605	580	516		430	440	491
Sales of crude oil produced (MB/D)	550	642	598	617	602	577	506		423	452	489
Natural Gas Liquids (MB/D)
Norway	11	8	9	8	9	8	5		7	12	8
United Kingdom	4	4	2	6	4	6	6		4	8	6
Canada	9	30	28	31	25	31	28		26	25	27
Timor Sea	20	20	20	15	18	12	14		11	12	12
Other	2	-	1	1	1	3	3		3	5	4
Total	46	62	60	61	57	60	56		51	62	57
Natural Gas (MMCF/D)
Consolidated
Norway	269	260	260	291	270	247	202		226	270	236
United Kingdom	851	796	665	734	761	785	668		519	723	673
Canada	424	1,204	1,154	1,140	983	1,152	1,133		1,069	1,073	1,106
China	-	10	8	9	7	11	12		13	8	11
Timor Sea	144	251	300	243	235	243	250		194	207	223
Indonesia	294	323	342	315	319	331	329		349	310	330
Vietnam	24	19	20	20	21	15	12		19	14	15
Libya	-	-	-	17	4	5	9		9	9	8
Other	121	207	187	237	188	212	190		183	164	188
Equity affiliates
Canada	-	-	-	-	-	-	-		-	-	-
Russia	-	-	-	-	-	-	-		-	-	-
Venezuela	11	10	8	7	9	9	9		-	-	5
Total	2,138	3,080	2,944	3,013	2,797	3,010	2,814		2,581	2,778	2,795
Canadian Syncrude (MB/D)	16	19	23	26	21	23	21		27	23	23
Darwin, Australia LNG Sales (MMCF/D)	136	305	411	382	310	388	449		347	348	383
										Page 7 of 12

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 ($/bbl)
Consolidated
Norway	61.36	68.64	68.48	60.07	64.61	57.36	67.50	75.54	88.75	72.04
United Kingdom	59.13	65.32	64.67	58.71	62.08	55.52	66.99	72.98	86.26	71.01
Canada	44.28	60.86	61.00	49.28	54.25	48.70	58.42	67.75	73.08	61.77
China	57.90	66.68	64.68	51.06	60.00	54.93	66.39	71.79	85.51	67.69
Indonesia	57.94	58.15	62.69	52.21	57.80	54.66	65.46	72.46	89.26	69.99
Vietnam	62.34	68.53	71.35	56.77	64.75	57.88	67.03	75.14	89.64	72.54
Timor Sea	60.37	66.98	66.84	57.27	63.21	59.15	73.51	71.20	83.95	71.50
Libya	-	68.07	67.75	58.19	65.11	56.19	67.39	73.88	88.11	72.02
Other	62.95	69.20	70.39	60.92	65.85	55.73	67.71	74.48	87.54	69.76
Equity affiliates
Canada	-	-	-	-	-	32.46	32.46	38.48	46.90	37.94
Russia	40.86	46.87	48.29	36.86	43.20	37.92	50.25	55.84	63.05	52.29
Venezuela	43.71	53.03	46.78	42.48	46.40	42.54	51.54	-	-	47.46
Total	55.92	64.50	63.73	55.00	59.92	53.12	62.02	70.75	83.94	66.44
Natural Gas Liquids ($/bbl)
Norway	42.55	40.99	43.91	39.46	41.61	38.82	45.72	46.77	56.25	48.36
United Kingdom	35.39	34.87	38.51	22.38	31.29	34.93	39.34	36.91	52.79	41.78
Canada	46.21	46.73	46.16	43.87	45.62	41.15	46.82	51.77	66.27	50.85
Timor Sea	46.68	41.35	45.63	41.62	43.95	44.13	49.43	48.71	72.60	52.63
Other	8.11	8.09	8.11	8.25	8.15	8.32	29.42	34.00	42.30	31.17
Total	43.25	43.28	44.89	40.25	42.89	39.38	45.64	48.63	61.56	48.80
Natural Gas ($/mcf)
Consolidated
Norway	7.28	7.09	7.48	8.58	7.61	7.00	7.10	7.51	9.08	7.74
United Kingdom	8.81	6.84	7.08	8.52	7.85	8.14	7.23	6.69	9.19	7.92
Canada	6.28	5.47	5.43	5.91	5.67	6.38	6.60	5.13	6.20	6.09
China	-	1.90	4.11	2.80	2.87	2.64	2.74	2.78	3.37	2.85
Timor Sea	0.67	0.65	0.69	0.74	0.69	0.76	0.68	0.66	0.74	0.71
Indonesia	7.45	7.53	6.71	5.78	6.86	6.04	6.99	7.78	8.51	7.31
Vietnam	1.07	1.07	1.07	1.05	1.06	1.10	1.09	1.12	1.13	1.11
Libya	-	-	-	0.09	0.09	0.07	0.09	0.09	0.09	0.09
Other	0.82	2.57	2.04	2.02	1.98	2.71	2.53	2.41	3.43	2.75
Equity affiliates
Canada	-	-	-	-	-	-	-	-	-	-
Russia	-	-	-	-	-	-	-	-	-	-
Venezuela	0.23	0.36	0.32	0.32	0.30	0.29	0.30	-	-	0.30
Total	7.13	5.90	5.85	6.36	6.25	6.47	6.40	5.75	7.31	6.50
International Exploration Charges ($ Millions)
Dry Holes	11	12	10	75	108	49	38	4	36	127
Lease Impairments	11	18	24	22	75	43	16	8	18	85
Total Non-Cash Charges	22	30	34	97	183	92	54	12	54	212
Other (G&G and Lease Rentals)	60	85	76	126	347	88	86	87	110	371
Total International Exploration Charges	82	115	110	223	530	180	140	99	164	583
DD&A ($ Millions)	527	890	939	929	3,285	1,016	962	996	1,162	4,136
									Page 8 of 12

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		1,122		5,923
United States ($ Millions)	297		1,433		1,444		741		3,915		896		1,879		873		967		4,615
International ($ Millions)	93		275		20		178		566		240		479		434		155		1,308
Market Indicators
U.S. East Coast Crack Spread ($/bbl)	7.52		15.21		10.54		7.86		10.28		11.81		22.57		11.73		8.47		13.64
U.S. Gulf Coast Crack Spread ($/bbl)	8.28		17.26		11.00		6.77		10.83		10.06		24.28		11.74		6.55		13.16
U.S. Group Central Crack Spread ($/bbl)	9.81		19.60		17.75		10.11		14.32		14.84		31.26		20.92		9.37		19.10
U.S. West Coast Crack Spread ($/bbl)	18.87		32.47		21.70		20.36		23.35		28.68		34.32		16.22		16.58		23.95
U.S. Weighted 3:2:1 Crack Spread ($/bbl)	10.56		20.39		14.86		10.49		14.07		15.30		27.56		14.74		9.65		16.81
NW Europe Crack Spread ($/bbl)	10.18		15.20		14.18		11.46		12.75		12.06		15.56		13.37		15.55		14.14
Singapore 3:1:2 Crack Spread ($/bbl)	10.58		19.30		15.13		11.03		14.01		14.06		17.94		14.80		17.13		15.98
U.S. Wholesale Gasoline Mktg Mrgn ($/bbl)	0.71		1.83		5.75		1.81		2.52		1.15		2.09		0.65		(0.43	)	0.87
Realized Margins
Refining Margin ($/bbl)
U.S.	10.18		17.23		14.10		11.39		13.29		11.87		19.59		10.86		11.56		13.41
International	5.30		7.64		6.46		6.22		6.50		5.06		9.68		6.05		6.72		6.92
Marketing Margin ($/bbl)*
U.S.	0.12		0.48		2.92		1.34		1.23		1.31		2.36		2.20		1.43		1.83
International	6.07		6.67		11.17		9.50		8.38		7.08		7.68		9.49		7.69		7.92
DD&A ($ Millions)	239		253		246		266		1,004		191		196		194		203		784
Turnaround Expense ($ Millions)	163		115		42		94		414		75		58		27		80		240
Eastern U.S.
Crude Oil Charge Input (MB/D)	354		281		377		411		356		411		404		383		412		402
Total Charge Input (MB/D)	359		309		418		457		386		460		447		414		453		443
Crude Oil Capacity Utilization (%)	84	%	66	%	89	%	97	%	84	%	97	%	96	%	91	%	97	%	95	%
Clean Product Yield (%)	90	%	87	%	88	%	90	%	89	%	89	%	86	%	86	%	90	%	88	%
U.S. Gulf Coast
Crude Oil Charge Input (MB/D)	529		681		730		737		670		744		709		736		712		726
Total Charge Input (MB/D)	587		777		822		812		750		823		790		829		794		810
Crude Oil Capacity Utilization (%)	72	%	93	%	100	%	101	%	91	%	102	%	97	%	100	%	97	%	99	%
Clean Product Yield (%)	74	%	81	%	83	%	80	%	80	%	81	%	81	%	80	%	82	%	81	%
Western U.S.
Crude Oil Charge Input (MB/D)	386		419		420		397		406		333		388		415		395		383
Total Charge Input (MB/D)	419		443		446		426		433		375		420		445		433		418
Crude Oil Capacity Utilization (%)	94	%	101	%	102	%	96	%	98	%	81	%	94	%	100	%	95	%	92	%
Clean Product Yield (%)	79	%	81	%	80	%	79	%	80	%	79	%	79	%	80	%	80	%	80	%
Central U.S. - Consolidated
Crude Oil Charge Input (MB/D)	571		619		600		583		593		185		170		166		175		174
Total Charge Input (MB/D)	613		663		638		621		634		188		175		170		179		178
Crude Oil Capacity Utilization (%)	89	%	97	%	94	%	91	%	93	%	99	%	91	%	89	%	94	%	93	%
Clean Product Yield (%)	84	%	86	%	85	%	85	%	85	%	88	%	93	%	88	%	92	%	90	%
Central U.S. - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D)	-		-		-		-		-		265		225		280		267		259
Total Charge Input (MB/D)	-		-		-		-		-		288		250		301		288		282
Crude Oil Capacity Utilization (%)	-		-		-		-		-		96	%	81	%	101	%	96	%	94	%
Clean Product Yield (%)	-		-		-		-		-		82	%	85	%	83	%	84	%	84	%
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		1,961		1,944
Total Charge Input (MB/D)	1,978		2,192		2,324		2,316		2,203		2,134		2,082		2,159		2,147		2,131
Crude Oil Capacity Utilization (%)	83	%	91	%	96	%	96	%	92	%	95	%	93	%	97	%	96	%	96	%
Clean Product Yield (%)	81	%	83	%	84	%	83	%	83	%	83	%	83	%	82	%	84	%	83	%
Refined Products Production (MB/D)
Gasoline	890		1,031		1,084		1,061		1,017		962		957		959		978		964
Distillates	684		764		821		824		774		762		736		779		795		768
Other	414		403		429		440		422		428		394		439		392		414
Total	1,988		2,198		2,334		2,325		2,213		2,152		2,087		2,177		2,165		2,146
Petroleum Products Sales (MB/D)
Gasoline	1,258		1,300		1,369		1,416		1,336		1,258		1,300		1,212		1,207		1,244
Distillates	813		820		848		921		850		862		827		869		929		872
Other	517		555		519		535		531		480		503		439		309		432
Total	2,588		2,675		2,736		2,872		2,717		2,600		2,630		2,520		2,445		2,548
* 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

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		493		484
Total Charge Input (MB/D)	369		550		503		494		479		532		528		455		517		508
Crude Oil Capacity Utilization (%)	94	%	92	%	86	%	83	%	88	%	91	%	92	%	79	%	89	%	88	%
Clean Product Yield (%)	71	%	64	%	69	%	72	%	69	%	68	%	67	%	71	%	65	%	68	%
International - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D)	133		144		143		144		141		120		145		140		124		132
Total Charge Input (MB/D)	137		149		149		147		145		121		146		142		125		134
Crude Oil Capacity Utilization (%)	94	%	102	%	102	%	102	%	100	%	83	%	101	%	104	%	106	%	98	%
Clean Product Yield (%)	82	%	82	%	81	%	80	%	81	%	77	%	79	%	81	%	84	%	80	%
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D)	490		649		617		605		591		623		650		574		617		616
Total Charge Input (MB/D)	506		699		652		641		624		653		674		597		642		642
Crude Oil Capacity Utilization (%)	94	%	94	%	89	%	87	%	91	%	90	%	93	%	84	%	92	%	90	%
Clean Product Yield (%)	74	%	68	%	72	%	74	%	72	%	70	%	69	%	74	%	69	%	70	%
Refined Products Production (MB/D)
Gasoline	142		165		165		172		161		160		159		160		160		160
Distillates	228		297		288		291		276		289		302		273		277		285
Other	130		233		190		170		181		195		203		160		196		188
Total	500		695		643		633		618		644		664		593		633		633
Petroleum Products Sales (MB/D)
Gasoline	197		225		204		186		203		176		186		161		173		174
Distillates	339		397		374		399		377		381		379		328		366		363
Other	159		249		171		135		179		156		174		140		171		160
Total	695		871		749		720		759		713		739		629		710		697
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		2,578		2,560
Total Charge Input (MB/D)	2,484		2,891		2,976		2,957		2,827		2,787		2,756		2,756		2,789		2,773
Crude Oil Capacity Utilization (%)	85	%	91	%	95	%	94	%	92	%	94	%	93	%	94	%	95	%	94	%
Clean Product Yield (%)	79	%	80	%	81	%	81	%	80	%	80	%	80	%	80	%	81	%	80	%
Refined Products Production (MB/D)
Gasoline	1,032		1,196		1,249		1,233		1,178		1,122		1,116		1,119		1,138		1,124
Distillates	912		1,061		1,109		1,115		1,050		1,051		1,038		1,052		1,072		1,053
Other	544		636		619		610		603		623		597		599		588		602
Total	2,488		2,893		2,977		2,958		2,831		2,796		2,751		2,770		2,798		2,779
Petroleum Products Sales (MB/D)
Gasoline	1,455		1,525		1,573		1,602		1,539		1,434		1,486		1,373		1,380		1,418
Distillates	1,152		1,217		1,222		1,320		1,227		1,243		1,206		1,197		1,295		1,235
Other	676		804		690		670		710		636		677		579		480		592
Total	3,283		3,546		3,485		3,592		3,476		3,313		3,369		3,149		3,155		3,245
* 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

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	649	1,818
Upstream
Production*
Net crude oil production (MB/D)	306	346	388	397	360	393	427	390	395	401
Net natural gas production (MMCF/D)	98	343	288	247	244	309	278	249	188	256
BOE Total (MBOE/D)	322	403	436	438	401	445	473	432	426	444
* Represents our estimated net share of LUKOIL's production.
Industry Prices
Crude Oil ($/bbl)
Urals crude (CIF Mediterranean)	58.25	64.85	65.81	56.48	61.35	53.96	65.30	72.21	85.90	69.49
Downstream
Refinery Throughput*
Crude Processed (MB/D)	163	168	164	220	179	219	184	226	227	214
* Represents our estimated net share of LUKOIL's crude processed.
MIDSTREAM
			2006					2007
	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD	1st Qtr	2nd Qtr	3rd Qtr	4th Qtr	YTD
Midstream Net Income ($ Millions)	110	108	169	89	476	85	102	104	162	453
U.S. Equity Affiliate ($ Millions)*	93	91	128	73	385	50	76	90	120	336
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States	23	22	23	21	22	15	23	26	24	22
International	-	-	-	-	-	-	-	-	-	-
Equity Affiliates
United States*	178	183	180	181	181	174	181	182	189	181
International	6	6	7	7	6	8	7	8	8	8
Total	207	211	210	209	209	197	211	216	221	211
* Represents 50 percent interest in DCP Midstream.
Natural Gas Liquids Fractionated (MB/D)
United States*	141	125	124	136	131	161	163	155	160	160
International	11	14	14	12	13	13	13	13	13	13
Total	152	139	138	148	144	174	176	168	173	173
* Excludes DCP Midstream.
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated	37.64	41.73	44.10	37.41	40.22	37.73	45.19	48.62	60.19	47.93
DCP Midstream	37.29	41.18	43.00	36.34	39.45	36.55	44.30	47.73	58.60	46.80
* Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix.
DD&A ($ Millions)	7	8	7	7	29	4	3	4	3	14
									Page 11 of 12

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		99		359
Industry Margins (Cents/Lb)*
Ethylene industry cash margin	20.5		14.3		17.0		16.0		17.0		11.1		10.8		11.5		9.7		10.8
HDPE industry contract sales margin	15.9		14.0		13.9		11.9		13.9		13.5		14.6		14.8		13.6		14.1
Styrene industry contract sales margin	12.5		11.9		11.3		11.5		11.8		11.1		11.6		11.5		10.7		11.2
* 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		2		(8	)
Detail of Net Income (Loss) ($ Millions)
Power	31		3		26		22		82		13		(1	)	21		20		53
Other	(23	)	(15	)	(15	)	(14	)	(67	)	(14	)	(11	)	(18	)	(18	)	(61	)
Total	8		(12	)	11		8		15		(1	)	(12	)	3		2		(8	)
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	)	(271	)	(1,269	)
Detail of Net Income (Loss) ($ Millions)
Net interest expense	(93	)	(267	)	(242	)	(268	)	(870	)	(244	)	(224	)	(195	)	(157	)	(820	)
Corporate overhead	(26	)	(39	)	(35	)	(33	)	(133	)	(23	)	(54	)	(49	)	(50	)	(176	)
Acquisition-related expenses	(5	)	(39	)	(32	)	(22	)	(98	)	(13	)	(16	)	(11	)	(4	)	(44	)
Other	(44	)	(67	)	8		17		(86	)	(61	)	(43	)	(65	)	(60	)	(229	)
Total	(168	)	(412	)	(301	)	(306	)	(1,187	)	(341	)	(337	)	(320	)	(271	)	(1,269	)
Before-Tax Net Interest Expense ($ Millions)
Interest expense	(226	)	(468	)	(417	)	(434	)	(1,545	)	(395	)	(411	)	(485	)	(340	)	(1,631	)
Capitalized interest	111		107		110		130		458		135		139		141		150		565
Interest revenue	30		35		38		2		105		31		24		153		38		246
Premium on early debt retirement	-		-		-		-		-		(17	)	-		-		-		(17	)
	(85	)	(326	)	(269	)	(302	)	(982	)	(246	)	(248	)	(191	)	(152	)	(837	)
Debt
Total Debt ($ Millions)	32,193		29,510		27,807		27,134		27,134		23,668		22,812		21,876		21,687		21,687
Debt-to-Capital Ratio	30	%	27	%	25	%	24	%	24	%	22	%	21	%	20	%	19	%	19	%
																	Page 12 of 12