EX-99.2 3 a5591134ex992.htm EXHIBIT 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
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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  
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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
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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.
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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.
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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.

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