EX-99.2 3 a6083914ex99_2.htm EXHIBIT 99.2

Exhibit 99.2

CONSOLIDATED STATEMENT OF OPERATIONS
 
Millions of Dollars
2008     2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
Revenues and Other Income
Sales and other operating revenues* 54,883 71,411 70,044 44,504 240,842 30,741 35,448 40,173 106,362
Equity in earnings of affiliates 1,359 1,812 1,214 (135 ) 4,250 415 1,076 1,015 2,506
Other income 310   130   115   535   1,090   124   106   117     347  
  56,552   73,353   71,373   44,904   246,182   31,280   36,630   41,305     109,215  
 
Costs and Expenses
Purchased crude oil, natural gas and products 37,820 51,214 49,608 30,021 168,663 19,759 24,609 28,008 72,376
Production and operating expenses 2,691 3,111 3,059 2,957 11,818 2,545 2,573 2,534 7,652
Selling, general and administrative expenses 526 629 513 561 2,229 475 476 427 1,378
Exploration expenses 309 288 267 473 1,337 225 243 386 854
Depreciation, depletion and amortization 2,209 2,178 2,361 2,264 9,012 2,230 2,347 2,327 6,904
Impairments
Goodwill - - - 25,443 25,443 - - - -
LUKOIL investment - - - 7,410 7,410 - - - -
Expropriated Assets - - - - - - 51 - 51
Other 6 19 57 1,604 1,686 3 - 56 59
Taxes other than income taxes* 5,155 5,796 5,619 4,067 20,637 3,464 3,715 4,205 11,384
Accretion on discounted liabilities 104 96 114 104 418 104 108 96 308
Interest and debt expense 207 210 239 279 935 310 268 336 914
Foreign currency transaction (gains) losses (43 ) -   54   106   117   131   (142 ) (17 )   (28 )
  48,984   63,541   61,891   75,289   249,705   29,246   34,248   38,358     101,852  
Income (loss) before income taxes 7,568 9,812 9,482 (30,385 ) (3,523 ) 2,034 2,382 2,947 7,363
Provision for income taxes 3,410   4,356   4,279   1,360   13,405   1,178   1,068   1,427     3,673  
Net Income (Loss) 4,158 5,456 5,203 (31,745 ) (16,928 ) 856 1,314 1,520 3,690
Less: net income attributable to
noncontrolling interests (19 ) (17 ) (15 ) (19 ) (70 ) (16 ) (16 ) (17 )   (49 )
Net Income (Loss) Attributable to ConocoPhillips 4,139   5,439   5,188   (31,764 ) (16,998 ) 840   1,298   1,503     3,641  
* Includes excise taxes on petroleum products sales: 3,857 4,091 4,022 3,448 15,418 3,060 3,316 3,538 9,914
 

Net income (loss) attributable to ConocoPhillips

per share of common stock (dollars)**

Basic 2.65 3.54 3.43 (21.37 ) (11.16 ) 0.57 0.87 1.00 2.44
Diluted 2.62 3.50 3.39 (21.37 ) (11.16 ) 0.56 0.87 1.00 2.43

Average common shares outstanding (in thousands)

Basic 1,562,198 1,534,975 1,510,897 1,486,204 1,523,432 1,485,890 1,486,496 1,488,352 1,486,922
Diluted 1,582,025   1,555,447   1,528,187   1,486,204   1,523,432     1,495,247   1,495,700   1,498,204     1,496,391  
** For the purpose of the earnings-per-share calculation only, third-quarter and nine-month 2009 net income attributable to ConocoPhillips has been reduced $12 million for the excess of the amount paid for the redemption of a noncontrolling interest over its carrying value, which was charged directly to retained earnings.
SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO CONOCOPHILLIPS BY SEGMENT
 
Millions of Dollars
    2008         2009    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P 1,349 1,852 1,606 181 4,988 173 336 327 836
International E&P 1,538 2,147 2,322 969 6,976 527 389 651 1,567
Goodwill Impairment - - - (25,443) (25,443) - - -   -
Total E&P 2,887 3,999 3,928 (24,293) (13,479) 700 725 978   2,403
 
Midstream 137 162 173 69 541 123 31 62   216
 
U.S. R&M 435 587 524 (6) 1,540 98 (38) 73 133
International R&M 85 77 325 295 782 107 (14) 26   119
Total R&M 520 664 849 289 2,322 205 (52) 99   252
 
LUKOIL Investment 710 774 438 (7,410) (5,488) 48 682 545 1,275
 
Chemicals 52 18 46 (6) 110 23 67 104 194
 
Emerging Businesses 12 8 35 (25) 30 - 2 (2) -
 
Corporate and Other (179) (186) (281) (388) (1,034) (259) (157) (283) (699)
                     
Consolidated 4,139 5,439 5,188 (31,764) (16,998) 840 1,298 1,503   3,641

Page 1 of 12

SUMMARY OF INCOME (LOSS) BEFORE TAXES* BY SEGMENT
 
 
Millions of Dollars
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Income (Loss) Before

Income Taxes

U.S. E&P 2,094 2,848 2,518 145 7,605 283 502 505 1,290
International E&P 3,832 5,222 5,143 2,442 16,639 1,498 1,311 1,855 4,664
Goodwill Impairment -   -   -   (25,443 ) (25,443 ) -   -   -     -  
Total E&P 5,926   8,070   7,661   (22,856 ) (1,199 ) 1,781   1,813   2,360     5,954  
 
Midstream 206   243   260   93   802   202   50   93     345  
 
U.S. R&M 717 938 852 (33 ) 2,474 163 13 116 292
International R&M 101   32   442   421   996   150   (37 ) 25     138  
Total R&M 818   970   1,294   388   3,470   313   (24 ) 141     430  
 
LUKOIL Investment 729 795 451 (7,414 ) (5,439 ) 42 687 557 1,286
 
Chemicals 54 - 64 7 125 32 82 131 245
 
Emerging Businesses 15 17 45 (53 ) 24 (5 ) (2 ) (6 ) (13 )
 
Corporate and Other (180 ) (283 ) (293 ) (550 ) (1,306 ) (331 ) (224 ) (329 ) (884 )
                     
Consolidated 7,568   9,812   9,482   (30,385 ) (3,523 ) 2,034   2,382   2,947     7,363  
* 2008 recasted to reflect adoption of SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements."
 
 
 
Effective Tax Rates
U.S. E&P 35.6 % 35.0 % 36.2 % -24.8 % 34.4 % 38.5 % 33.1 % 35.2 % 35.1 %
International E&P 59.6 % 58.7 % 54.7 % 59.8 % 57.8 % 64.1 % 69.4 % 64.1 %   65.6 %
Total E&P 51.1 % 50.3 % 48.6 % -6.2 % -1020.8 % 60.0 % 59.3 % 57.9 %   59.0 %
 
Midstream 33.5 % 33.3 % 33.5 % 25.8 % 32.5 % 39.1 % 40.0 % 33.3 %   37.4 %
 
U.S. R&M 39.2 % 37.4 % 38.6 % 81.8 % 37.8 % 39.9 % 384.6 % 35.3 % 53.4 %
International R&M 15.8 % -140.6 % 26.5 % 29.9 % 21.5 % 28.7 % 62.2 % 0.0 %   13.8 %
Total R&M 36.3 % 31.5 % 34.5 % 25.5 % 33.1 % 34.5 % -112.5 % 29.1 %   40.7 %
 
LUKOIL Investment 2.5 % 2.8 % 2.7 % 0.1 % -0.9 % -14.3 % 0.9 % 2.0 % 0.9 %
 
Chemicals 3.7 % - 28.1 % 185.7 % 12.0 % 28.1 % 17.1 % 21.4 % 20.8 %
 
Emerging Businesses 20.0 % 52.9 % 22.2 % 52.8 % -25.0 % 100.0 % 200.0 % 66.7 % 100.0 %
 
Corporate and Other 5.0 % 36.7 % 6.1 % 30.7 % 23.0 % 22.7 % 31.3 % 14.3 % 21.7 %
                     
Consolidated 45.1 % 44.4 % 45.1 % -4.5 % -380.5 % 57.9 % 44.8 % 48.4 %   49.9 %
ESTIMATED TAXES PAID
 
 
Millions of Dollars
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Cash income taxes paid 1,649 4,756 3,845 2,872 13,122 1,346 1,925 1,535 4,806
Taxes other than income taxes 5,155 5,796 5,619 4,067 20,637 3,464 3,715 4,205 11,384
Less: Excise taxes* (3,857 ) (4,091 ) (4,022 ) (3,448 ) (15,418 ) (3,060 ) (3,316 ) (3,538 )   (9,914 )
Estimated Taxes Paid 2,947   6,461   5,442   3,491   18,341   1,750   2,324   2,202     6,276  
* Represents taxes collected by ConocoPhillips and reimbursed to taxing authorities.

Page 2 of 12

CERTAIN ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO CONOCOPHILLIPS (AFTER-TAX)
 
Millions of Dollars
    2008           2009      
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 4 12 - 11 27 - - - -
Impairments - - - (403 ) (403 ) - - - -
Severance accrual -   -   -   (43 ) (43 ) -   -   20     20  
Total 4   12   -   (435 ) (419 ) -   -   20     20  
 
International E&P
Gain (loss) on asset sales 8 - 138 417 563 - - - -
Impairments - - (28 ) (196 ) (224 ) - (51 ) - (51 )
Severance accrual - - - (28 ) (28 ) - - 11 11
Asset retirement -   -   -   -   -   -   (37 ) -     (37 )
Total 8   -   110   193   311   -   (88 ) 11     (77 )
 
Goodwill impairment -   -   -   (25,443 ) (25,443 ) -   -   -     -  
 
Total E&P 12   12   110   (25,685 ) (25,551 ) -   (88 ) 31     (57 )
 
Midstream
Gain on subsidiary equity transaction -   -   -   -   -   88   -   -     88  
Total -   -   -   -   -   88   -   -     88  
 
U.S. R&M
Gain (loss) on asset sales 116 8 2 (5 ) 121 - - (1 ) (1 )
Impairments (3 ) (10 ) - (357 ) (370 ) - (72 ) - (72 )
Severance accrual - - - (23 ) (23 ) - - 6 6
Pending claims and settlements -   -   -   -   -   (25 ) -   (33 )   (58 )
Total 113   (2 ) 2   (385 ) (272 ) (25 ) (72 ) (28 )   (125 )
 
International R&M
Gain (loss) on asset sales - 1 - 102 103 - - - -
Impairments - - - (180 ) (180 ) - - - -
Severance accrual -   -   -   (1 ) (1 ) -   -   -     -  
Total -   1   -   (79 ) (78 ) -   -   -     -  
 
Total R&M 113   (1 ) 2   (464 ) (350 ) (25 ) (72 ) (28 )   (125 )
 
LUKOIL Investment
Impairment -   -   -   (7,410 ) (7,410 ) -   -   -     -  
Total -   -   -   (7,410 ) (7,410 ) -   -   -     -  
 
Chemicals
  -   -   -   -   -   -   -   -     -  
Total -   -   -   -   -   -   -   -     -  
 
Emerging Businesses
Impairments -   -   -   (85 ) (85 ) -   -   -     -  
Total -   -   -   (85 ) (85 ) -   -   -     -  
 
Corporate and Other
Pending claims and settlements 35 - - - 35 - - (7 ) (7 )
Impairments - - - (30 ) (30 ) - - - -
Severance accrual -   -   -   (4 ) (4 ) -   -   3     3  
Total 35   -   -   (34 ) 1   -   -   (4 )   (4 )
 
Total Company 160   11   112   (33,678 ) (33,395 ) 63   (160 ) (1 )   (98 )

Page 3 of 12

CASH FLOW INFORMATION
Millions of Dollars
    2008             2009      
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 (loss)* 4,158 5,455 5,204 (31,745 ) (16,928 ) 856 1,314 1,520 3,690
Depreciation, depletion and amortization 2,209 2,178 2,361 2,264 9,012 2,230 2,347 2,327 6,904
Impairments 6 19 57 34,457 34,539 3 51 56 110
Dry hole costs and leasehold impairments 154 127 118 299 698 123 115 233 471
Accretion on discounted liabilities 104 96 114 104 418 104 108 96 308
Deferred income taxes (17 ) 28 48 (487 ) (428 ) (219 ) (377 ) (268 ) (864 )
Undistributed equity earnings (987 ) (1,001 ) (542 ) 921 (1,609 ) (322 ) (770 ) (726 ) (1,818 )
Net gain on asset dispositions (181 ) (32 ) (133 ) (545 ) (891 ) (39 ) 3 (52 ) (88 )
Other* (183 ) 67 (69 ) (949 ) (1,134 ) (2 ) 177 (326 ) (151 )
Net working capital changes 1,324   (1,503 ) 357   (1,197 ) (1,019 ) (849 ) (401 ) 73     (1,177 )
Net Cash Provided by
Operating Activities 6,587   5,434   7,515   3,122   22,658   1,885   2,567   2,933     7,385  
 
Cash Flows from Investing Activities
Capital expenditures & investments (3,322 ) (3,398 ) (3,815 ) (8,564 ) (19,099 ) (2,906 ) (2,672 ) (2,598 ) (8,176 )
Proceeds from asset dispositions 370 71 288 911 1,640 86 146 706 938

Long-term advances to/collections from

affiliates and other investments (60 ) (83 ) (209 ) 195   (157 ) (106 ) (56 ) (29 )   (191 )
Net Cash Used for Investing Activities (3,012 ) (3,410 ) (3,736 ) (7,458 ) (17,616 ) (2,926 ) (2,582 ) (1,921 )   (7,429 )
Cash Flows from Financing Activities
Net issuance (repayment) of debt (202 ) 426 183 5,353 5,760 1,931 989 104 3,024
Issuance of stock 7 178 (3 ) 16 198 (21 ) - 10 (11 )
Repurchase of stock (2,496 ) (2,512 ) (2,492 ) (749 ) (8,249 ) - - - -
Dividends (730 ) (719 ) (710 ) (695 ) (2,854 ) (696 ) (697 ) (697 ) (2,090 )
Other (196 ) (44 ) (186 ) (193 ) (619 ) (203 ) (203 ) (685 )   (1,091 )
Net Cash Provided by (Used for)
Financing Activities (3,617 ) (2,671 ) (3,208 ) 3,732   (5,764 ) 1,011   89   (1,268 )   (168 )
 
Effect of Exchange Rate Changes 9   11   (242 ) 243   21   77   12   9     98  
 
Net Change in Cash
and Cash Equivalents (33 ) (636 ) 329 (361 ) (701 ) 47 86 (247 ) (114 )
Cash and cash equivalents
at beginning of period 1,456   1,423   787   1,116   1,456   755   802   888     755  
Cash and Cash Equivalents
at End of Period 1,423   787   1,116   755   755   802   888   641     641  
* 2008 recasted to reflect adoption of SFAS No. 160, "Noncontrolling Interests in Consolidated Financial Statements."
Millions of Dollars
    2008           2009    
Capital Program 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
E&P
Capital expenditures and investments 2,818 2,806 3,079 7,753 16,456 2,376 2,059 2,202 6,637
Loans and advances 67 85 26 (18 ) 160 88 33 32 153
Joint venture acquisition obligation--principal 145 148 149 151   593 153 156 157   466
E&P total 3,030 3,039 3,254 7,886   17,209 2,617 2,248 2,391   7,256
Midstream* - - - 4 4 1 3 - 4
R&M
Capital expenditures and investments 363 510 674 722 2,269 496 523 352 1,371
Loans and advances - 2 1 -   3 - - 150   150
R&M total 363 512 675 722   2,272 496 523 502   1,521
LUKOIL Investment* - - - - - - - - -
Chemicals* - - - - - - - - -
Emerging Businesses* 61 51 25 19 156 17 56 16 89
Corporate and Other* 80 31 37 66   214 16 31 28   75
Total Capital Program 3,534 3,633 3,991 8,697   19,855 3,147 2,861 2,937   8,945
* Capital expenditures and investments only.

Page 4 of 12

TOTAL E&P
 
    2008         2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
E&P Net Income (Loss) Attributable
to ConocoPhillips ($ Millions) 2,887   3,999 3,928 (24,293 ) (13,479 ) 700   725   978     2,403  
 
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,794   1,750 1,748 1,867   1,789   1,925   1,872   1,791     1,862  
E&P segment plus LUKOIL Investment segment: 2,253   2,198 2,170 2,318   2,234   2,364   2,314   2,215     2,297  
 
Crude Oil and Condensate (MB/D)
Consolidated 758 731 718 803 752 817 763 725 769
Equity affiliates 45   41 63 67   54   84   96   104     94  
Total 803   772 781 870   806   901   859   829     863  
Sales of Crude Oil Produced (MB/D) 773   803 776 853   801   911   860   846     872  
 
Natural Gas Liquids (MB/D) 154   156 148 155   153   153   155   146     151  
 
Natural Gas (MMCF/D)
Consolidated 4,900 4,818 4,769 4,854 4,836 5,011 4,957 4,658 4,874
Equity affiliates -   - - 45   11   76   94   88     86  
Total 4,900   4,818 4,769 4,899   4,847   5,087   5,051   4,746     4,960  
 
Canadian Syncrude (MB/D) 20   19 24 25   22   23   16   25     21  
 
Industry Prices (Platt's)
Crude Oil ($/bbl)
WTI spot 97.94 123.98 117.83 58.49 99.56 42.97 59.54 68.19 56.90
Brent dated 96.90 121.38 114.78 54.91 96.99 44.40 58.79 68.28 57.16
Natural Gas ($/mmbtu)
Henry Hub -- First of Month 8.03   10.94 10.25 6.95   9.04   4.91   3.51   3.39     3.93  
 
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Consolidated 94.71 119.24 114.20 55.11 95.15 42.36 56.11 67.01 54.80
Equity affiliates 62.78 93.20 88.32 25.35 63.89 33.61 51.89 58.07 48.85
Total 92.88   118.01 112.19 52.82   93.12   41.56   55.63   65.92     54.15  
 
Natural Gas Liquids ($/bbl) 60.14   68.42 68.81 32.57   57.43   27.53   28.73   34.62     30.33  
 
Natural Gas ($/MCF)
Consolidated 8.03 9.87 8.91 6.37 8.28 4.98 3.72 3.69 4.14
Equity affiliates - - - 2.04 2.04 2.10 2.10 2.57 2.26
Total 8.03   9.87 8.91 6.32   8.27   4.93   3.69   3.67     4.10  
 
Exploration Charges ($ Millions)
Dry holes 94 68 58 205 425 80 66 162 308
Lease impairments 60   59 60 94   273   43   49   71     163  
Total Noncash Charges 154 127 118 299 698 123 115 233 471
Other (G&G and Lease rentals) 155   161 149 174   639   102   128   153     383  
Total Exploration Charges 309   288 267 473   1,337   225   243   386     854  
 
Depreciation, Depletion and
Amortization (DD&A) ($ Millions) 1,946   1,940 2,123 2,019   8,028   1,994   2,127   2,082     6,203  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (10 ) 2 118 106   216   (98 ) (22 ) (11 )   (131 )

Page 5 of 12

U.S. E&P
 
    2008         2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

U.S. E&P Net Income (Loss) Attributable

to ConocoPhillips ($ Millions) 1,349 1,852 1,606 181   4,988 173   336   327     836  
 
Alaska ($ Millions) 603 700 556 456   2,315 244   404   356     1,004  
Lower 48 ($ Millions) 746 1,152 1,050 (275 ) 2,673 (71 ) (68 ) (29 )   (168 )
 
Production
Total U.S. (MBOE/D) 783 787 736 790   775 791   771   737     767  
 
Crude Oil and Condensate (MB/D)
Alaska 254 244 218 258 244 254 236 218 236
Lower 48 97 95 85 88   91 92   92   91     92  
Total 351 339 303 346   335 346   328   309     328  
Sales of Crude Oil Produced (MB/D) 344 353 299 340   334 358   349   304     337  
 
Natural Gas Liquids (MB/D)*
Alaska 19 17 13 20 17 21 16 11 16
Lower 48 69 76 74 75   74 71   78   77     75  
Total 88 93 87 95   91 92   94   88     91  
*Includes reinjection volumes sold lease-to-lease: 13 11 8 11   11 12   11   7     10  
 
Natural Gas (MMCF/D)
Alaska 100 98 102 88 97 92 83 105 93
Lower 48 1,963 2,034 1,971 2,007   1,994 2,027   2,012   1,938     1,992  
Total 2,063 2,132 2,073 2,095   2,091 2,119   2,095   2,043     2,085  
 
Average Realized Prices
Crude Oil and Condensate ($/bbl)
Alaska
North Slope 89.07 112.23 115.11 57.63   92.73 35.21   49.42   61.80     47.95  
West Coast 95.47 118.88 121.51 64.13   99.23 41.75   55.24   67.91     54.14  
Lower 48 90.35 118.06 112.36 49.36   92.77 37.32   54.81   62.27     51.51  
Total U.S. 94.02 118.66 118.90 60.32   97.47 40.60   55.13   66.22     53.43  
 
Natural Gas Liquids ($/bbl)
Alaska 94.27 117.24 119.29 64.23   94.29 41.76   55.68   67.45     51.75  
Lower 48 55.33 62.27 65.11 26.70   52.28 22.41   25.80   30.61     26.41  
Total U.S. 58.33 65.96 68.84 30.61   55.63 24.52   27.73   32.45     28.28  
 
Natural Gas ($/MCF)
Alaska 4.31 3.81 4.36 4.90   4.38 7.69   6.38   4.87     6.64  
Lower 48 7.67 9.74 8.67 4.76   7.71 3.76   2.97   2.98     3.24  
Total U.S. 7.63 9.69 8.64 4.76   7.67 3.82   3.00   2.99     3.27  
 
Kenai, Alaska LNG Sales
Volume (MMCF/D) 63 72 89 74   74 43   47   82     58  
Sales price per MCF 6.72 7.15 7.77 8.65   7.62 6.29   7.20   8.29     7.50  
 
U.S. Exploration Charges ($ Millions)
Dry holes 25 20 6 137 188 58 30 49 137
Lease impairments 42 40 43 65   190 26   28   27     81  
Total Noncash Charges 67 60 49 202 378 84 58 76 218
Other (G&G and Lease rentals) 39 50 42 61   192 30   35   58     123  
Total U.S. Exploration Charges 106 110 91 263   570 114   93   134     341  
Alaska Only 11 25 19 45   100 34   8   11     53  
 
DD&A ($ Millions)
Alaska 149 163 152 186 650 173 185 167 525
Lower 48 616 613 649 577   2,455 651   683   671     2,005  
Total U.S. 765 776 801 763   3,105 824   868   838     2,530  

Page 6 of 12

INTERNATIONAL E&P
 
    2008         2009    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

International E&P Net Income (Loss)

Attributable to ConocoPhillips ($ Millions) 1,538 2,147 2,322 969 6,976 527 389 651   1,567
 
Production
Total, Including Equity Affiliates
and Canadian Syncrude (MBOE/D) 1,011 963 1,012 1,077 1,014 1,134 1,101 1,054   1,095
 
Crude Oil and Condensate (MB/D)
Consolidated
Norway 153 145 164 163 156 161 147 143 150
United Kingdom 48 49 57 78 58 79 76 64 73
Canada 23 24 25 27 25 24 23 24 24
China 33 32 31 36 33 40 41 53 45
Indonesia 16 15 15 15 15 26 16 9 17
Vietnam 20 18 19 28 21 36 31 27 31
Timor Sea 23 21 22 20 22 21 21 21 21
Libya 47 48 42 50 47 43 43 45 44
Nigeria 20 18 18 17 18 17 16 16 17
Other 24 22 22 23 22 24 21 14 19
Total consolidated 407 392 415 457 417 471 435 416 441
Equity affiliates
Canada 29 25 32 35 30 35 41 45 40
Russia 16 16 31 32 24 49 55 59 54
Total equity affiliates 45 41 63 67 54 84 96 104   94
Total 452 433 478 524 471 555 531 520   535
Sales of crude oil produced (MB/D) 429 450 477 513 467 553 511 542   535
 
Natural Gas Liquids (MB/D)
Norway 13 11 9 11 11 11 8 7 9
United Kingdom 10 8 6 8 8 8 9 7 8
Indonesia - 3 4 2 2 3 3 3 3
Timor Sea 15 14 15 13 14 14 14 15 14
Canada 26 25 24 24 25 23 24 23 24
Nigeria 2 2 3 2 2 2 3 3   2
Total 66 63 61 60 62 61 61 58   60
 
Natural Gas (MMCF/D)
Consolidated
Norway 273 205 222 257 239 259 196 188 214
United Kingdom 695 623 581 757 664 742 653 514 636
China 10 9 - - 5 - - - -
Indonesia 314 360 361 336 343 449 451 443 447
Timor Sea 246 231 266 236 245 247 258 266 257
Vietnam 16 16 21 11 16 17 12 17 15
Canada 1,101 1,055 1,061 1,001 1,054 1,066 1,174 1,063 1,101
Libya 9 9 6 9 8 8 8 12 10
Nigeria 96 107 116 102 105 104 110 112 109
Other 77 71 62 50 66 - - - -
Total consolidated 2,837 2,686 2,696 2,759 2,745 2,892 2,862 2,615 2,789
Equity affiliates
Australia - - - 45 11 76 94 88   86
Total 2,837 2,686 2,696 2,804 2,756 2,968 2,956 2,703   2,875
 
Canadian Syncrude (MB/D) 20 19 24 25 22 23 16 25   21
 
Darwin, Australia LNG Sales (MMCF/D) 417 396 464 460 434 438 430 453   440

Page 7 of 12

INTERNATIONAL E&P (continued)
 
 
    2008         2009    
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 97.27 122.34 115.67 55.95 97.54 46.52 59.76 69.00 58.63
United Kingdom 93.96 118.79 107.54 51.14 90.67 43.62 55.62 67.27 54.72
Canada 84.49 108.43 99.77 34.36 80.18 33.76 47.46 56.78 46.05
China 93.69 120.63 111.93 46.41 91.51 38.17 57.72 65.97 55.12
Indonesia 92.48 109.83 108.47 53.08 90.98 42.71 56.00 86.28 54.71
Vietnam 98.31 126.11 122.45 54.02 96.57 42.75 58.00 70.27 55.90
Timor Sea 93.85 114.20 103.11 38.05 86.91 43.61 47.29 59.54 50.34
Libya 95.21 120.86 108.33 53.48 93.22 44.22 57.30 67.93 56.78
Nigeria 99.49 126.55 104.25 50.34 96.82 47.20 56.41 72.19 58.01
Other 95.73 112.85 103.11 48.42 89.53 43.15 61.26 64.67 55.06
Total consolidated 95.32 119.75 110.84 51.15 93.30 43.70 56.93 67.56 55.85
Equity affiliates
Canada 57.95 96.78 81.32 9.53 58.54 24.64 46.90 49.81 41.63
Russia 70.41 86.00 96.67 42.95 71.15 39.92 55.44 64.31 54.07
Total equity affiliates 62.78 93.20 88.32 25.35 63.89 33.61 51.89 58.07 48.85
Total 91.96 117.49 107.99 47.84 90.01 42.17 55.97 65.74   54.60
 
Natural Gas Liquids ($/bbl)
Norway 54.48 59.19 56.67 39.00 53.04 29.21 26.39 33.91 29.62
United Kingdom 55.88 66.90 60.43 28.48 53.65 23.76 31.65 41.75 33.49
Indonesia - 70.77 74.37 31.64 62.84 39.49 34.74 47.03 40.30
Timor Sea 69.79 74.03 73.79 41.61 64.54 37.99 35.81 46.26 40.26
Canada 68.84 83.57 77.49 35.19 66.40 31.38 29.17 33.42 31.30
Nigeria 8.46 8.46 8.56 8.56 8.51 8.78 8.79 8.69 8.75
Total 62.20 71.40 68.78 35.25 59.70 31.64 30.04 37.48   33.06
 
Natural Gas ($/mcf)
Consolidated
Norway 10.27 11.75 12.79 10.70 11.28 9.68 7.09 6.24 7.84
United Kingdom 9.20 10.48 10.20 11.07 10.26 8.75 5.60 5.74 6.85
China 3.60 3.69 - - 3.64 - - - -
Indonesia 10.33 12.14 12.35 6.17 10.36 4.74 5.91 7.15 5.94
Timor Sea 0.79 0.90 0.97 1.17 0.96 1.16 0.66 0.82 0.88
Vietnam 1.14 1.12 1.13 1.16 1.13 1.14 1.13 1.15 1.14
Canada 7.81 10.19 8.03 5.56 7.92 4.13 2.84 2.53 3.15
Libya 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09 0.09
Nigeria 0.98 1.19 1.25 1.09 1.13 0.84 0.83 0.73 0.80
Other 7.49 8.56 9.08 11.51 8.92 - - - -
Total consolidated 8.32 10.02 9.13 7.65 8.76 5.87 4.27 4.26 4.81
Equity affiliates
Australia - - - 2.04 2.04 2.10 2.10 2.57 2.26
Total 8.32 10.02 9.13 7.55 8.73 5.76 4.19 4.20   4.73

International Exploration Charges ($ Millions)

Dry holes 69 48 52 68 237 22 36 113 171
Lease impairments 18 19 17 29 83 17 21 44   82
Total Noncash Charges 87 67 69 97 320 39 57 157 253
Other (G&G and Lease rentals) 116 111 107 113 447 72 93 95   260
Total International Exploration Charges 203 178 176 210 767 111 150 252   513
 
DD&A ($ Millions) 1,181 1,164 1,322 1,256 4,923 1,170 1,259 1,244   3,673

Page 8 of 12

R&M
 
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
R&M Net Income (Loss) Attributable
to ConocoPhillips ($ Millions) 520   664   849   289   2,322   205   (52 ) 99     252  
 
United States ($ Millions) 435   587   524   (6 ) 1,540   98   (38 ) 73     133  
International ($ Millions) 85   77   325   295   782   107   (14 ) 26     119  
 
Market Indicators
U.S. East Coast Crack Spread ($/bbl) 7.79 10.93 10.43 5.66 8.70 10.43 9.13 8.14 9.23
U.S. Gulf Coast Crack Spread ($/bbl) 7.90 12.11 14.70 2.80 9.38 9.06 8.39 6.74 8.06
U.S. Group Central Crack Spread ($/bbl) 10.26 13.47 14.38 6.00 11.03 9.62 9.16 8.06 8.95
U.S. West Coast Crack Spread ($/bbl) 15.37 21.91 16.34 11.46 16.27 15.79 15.11 13.89 14.93
U.S. Weighted 3:2:1 Crack Spread ($/bbl) 9.94 14.19 14.07 5.89 11.02 10.88 10.12 8.81 9.94
NW Europe Crack Spread ($/bbl) 16.09 25.78 21.10 17.58 20.14 10.81 9.42 8.44 9.56
Singapore 3:1:2 Crack Spread ($/bbl) 19.90 29.35 19.10 13.01 20.34 9.45 7.88 7.63 8.32
 
Realized Margins
Refining Margin ($/bbl)
U.S. 8.00 10.29 9.03 6.96 8.57 7.55 4.85 4.69 5.59
International 6.42   6.70   11.24   8.31   8.07   6.23   3.01   3.66     4.36  
Integrated Margin ($/bbl)
U.S. 8.29 10.71 10.38 8.20 9.40 8.23 5.40 5.92 6.42
International 8.34   9.11   18.06   13.28   12.06   8.30   4.61   6.16     6.44  
 
DD&A ($ Millions) 208   206   211   214   839   211   198   220     629  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) 38   (13 ) (127 ) (71 ) (173 ) (10 ) 49   2     41  
 
Turnaround Expense ($ Millions) 90   170   73   70   403   207   121   62     390  
 
Eastern U.S.
Crude Oil Charge Input (MB/D) 340 405 412 390 387 346 376 393 372
Total Charge Input (MB/D) 400 441 450 445 434 363 427 443 411
Crude Oil Capacity Utilization (%) 80 % 96 % 97 % 92 % 91 % 82 % 89 % 93 % 88 %
Clean Product Yield (%) 89 % 87 % 86 % 90 % 88 % 83 % 87 % 89 %   87 %
 
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 659 720 572 686 659 470 711 660 614
Total Charge Input (MB/D) 732 810 641 773 739 534 773 725 678
Crude Oil Capacity Utilization (%) 90 % 98 % 78 % 94 % 90 % 64 % 97 % 90 % 84 %
Clean Product Yield (%) 81 % 76 % 77 % 82 % 79 % 81 % 83 % 80 %   81 %
 
Western U.S.
Crude Oil Charge Input (MB/D) 405 343 417 407 393 402 380 397 393
Total Charge Input (MB/D) 425 396 439 431 422 424 405 423 417
Crude Oil Capacity Utilization (%) 97 % 82 % 100 % 98 % 94 % 96 % 91 % 95 % 94 %
Clean Product Yield (%) 80 % 78 % 82 % 82 % 81 % 79 % 80 % 81 %   80 %
 
Central U.S. - Consolidated
Crude Oil Charge Input (MB/D) 177 182 184 163 177 172 184 179 179
Total Charge Input (MB/D) 179 184 187 166 179 175 188 182 181
Crude Oil Capacity Utilization (%) 95 % 97 % 98 % 87 % 94 % 92 % 98 % 96 % 96 %
Clean Product Yield (%) 88 % 89 % 93 % 91 % 90 % 90 % 91 % 93 %   91 %
 

Central U.S. - Equity Affiliates - Net Share*

Crude Oil Charge Input (MB/D) 225 241 228 239 233 199 202 212 204
Total Charge Input (MB/D) 241 258 246 253 250 213 215 224 218
Crude Oil Capacity Utilization (%) 91 % 97 % 92 % 96 % 94 % 88 % 89 % 94 % 90 %
Clean Product Yield (%) 84 % 84 % 85 % 84 % 84 % 81 % 84 % 85 %   83 %
 
TOTAL UNITED STATES
Crude Oil Charge Input (MB/D) 1,806 1,891 1,813 1,885 1,849 1,589 1,852 1,841 1,762
Total Charge Input (MB/D) 1,977 2,089 1,963 2,068 2,024 1,709 2,008 1,997 1,905
Crude Oil Capacity Utilization (%) 90 % 94 % 90 % 94 % 92 % 80 % 93 % 93 % 89 %
Clean Product Yield (%) 83 % 81 % 83 % 85 % 83 % 82 % 84 % 84 %   83 %
 
Refined Products Production (MB/D)
Gasoline 892 876 852 929 887 755 904 912 857
Distillates 719 775 743 791 757 623 748 725 699
Other 380   444   380   359   391   338   366   380     362  
Total 1,991   2,095   1,975   2,079   2,035   1,716   2,018   2,017     1,918  
 
Petroleum Products Sales (MB/D)
Gasoline 1,070 1,127 1,089 1,227 1,128 1,037 1,180 1,188 1,136
Distillates 869 912 858 934 893 749 924 906 860
Other 384   404   365   342   374   328   378   420     375  
Total 2,323   2,443   2,312   2,503   2,395   2,114   2,482   2,514     2,371  
* Amount reflects our 50 percent share of the Borger refinery effective January 1, 2009. We had a 65 percent share of Borger in 2008.

Page 9 of 12

R&M (continued)
 
    2008           2009      
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) 455 466 383 475 445 453 364 422 413
Total Charge Input (MB/D) 463 479 404 493 460 465 380 430 425
Crude Oil Capacity Utilization (%) 82 % 84 % 69 % 86 % 81 % 82 % 66 % 76 % 75 %
Clean Product Yield (%) 65 % 69 % 74 % 71 % 70 % 72 % 69 % 69 %   70 %
 

International - Equity Affiliates - Net Share**

Crude Oil Charge Input (MB/D) 123 123 122 122 122 114 121 119 118
Total Charge Input (MB/D) 124 124 124 127 125 122 129 126 126
Crude Oil Capacity Utilization (%) 104 % 104 % 103 % 103 % 104 % 96 % 102 % 101 % 99 %
Clean Product Yield (%) 86 % 83 % 89 % 85 % 86 % 87 % 81 % 85 %   84 %
 
TOTAL INTERNATIONAL
Crude Oil Charge Input (MB/D) 578 589 505 597 567 567 485 541 531
Total Charge Input (MB/D) 587 603 528 620 585 587 509 556 551
Crude Oil Capacity Utilization (%) 86 % 88 % 75 % 89 % 85 % 85 % 72 % 81 % 79 %
Clean Product Yield (%) 70 % 72 % 77 % 74 % 73 % 75 % 72 % 72 %   73 %
 
Refined Products Production (MB/D)
Gasoline 129 155 148 170 151 161 138 142 147
Distillates 274 274 255 285 272 276 226 254 252
Other 171   163   120   155   152   139   135   152     142  
Total 574   592   523   610   575   576   499   548     541  
 
Petroleum Products Sales (MB/D)
Gasoline 139 190 176 144 163 124 157 154 145
Distillates 321 324 324 336 326 343 289 298 310
Other 156   169   134   164   156   142   184   174     167  
Total 616   683   634   644   645   609   630   626     622  
 
 

Worldwide - Including Net Share of Equity Affiliates

Crude Oil Charge Input (MB/D) 2,384 2,480 2,318 2,482 2,416 2,156 2,337 2,382 2,293
Total Charge Input (MB/D) 2,564 2,692 2,491 2,688 2,609 2,296 2,517 2,553 2,456
Crude Oil Capacity Utilization (%) 89 % 93 % 87 % 93 % 90 % 81 % 88 % 90 % 86 %
Clean Product Yield (%) 80 % 79 % 82 % 82 % 81 % 80 % 82 % 81 %   81 %
 
Refined Products Production (MB/D)
Gasoline 1,021 1,031 1,000 1,099 1,038 916 1,042 1,054 1,004
Distillates 993 1,049 998 1,076 1,029 899 974 979 951
Other 551   607   500   514   543   477   501   532     504  
Total 2,565   2,687   2,498   2,689   2,610   2,292   2,517   2,565     2,459  
 
Petroleum Products Sales (MB/D)
Gasoline 1,209 1,317 1,265 1,371 1,291 1,161 1,337 1,342 1,281
Distillates 1,190 1,236 1,182 1,270 1,219 1,092 1,213 1,204 1,170
Other 540   573   499   506   530   470   562   594     542  
Total 2,939   3,126   2,946   3,147   3,040   2,723   3,112   3,140     2,993  
*Represents our Humber refinery in the United Kingdom, the Whitegate refinery in Ireland, and 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.

Page 10 of 12

LUKOIL INVESTMENT
 
    2008           2009    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

LUKOIL Investment Net Income (Loss)

Attributable to ConocoPhillips ($ Millions) 710   774 438   (7,410 ) (5,488 ) 48 682 545   1,275
 
Upstream
Production*
Net crude oil production (MB/D) 392 387 371 392 386 386 396 382 388
Net natural gas production (MMCF/D) 404 363 303 355 356 316 274 253 281
BOE Total (MBOE/D) 459   448 422   451   445   439 442 424   435
* Represents our estimated net share of LUKOIL's production.
 
Industry Prices
Crude Oil ($/bbl)
Urals crude (CIF Mediterranean) 93.01   117.34 113.54   54.66   94.79   43.73 58.49 67.89   56.80
 
Downstream
Refinery Throughput*
Crude Processed (MB/D)** 222   215 228   250   229   203 246 273   241
* Represents our estimated net share of LUKOIL's crude processed.
* *Second quarter of 2009 restated.
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (2 ) 3 (17 ) (11 ) (27 ) 2 12 5   19
 
 
 
 
 
MIDSTREAM
 
    2008           2009    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
 
Midstream Net Income Attributable
to ConocoPhillips ($ Millions) 137   162 173   69   541   123 31 62   216
 
U.S. Equity Affiliate ($ Millions)* 118   137 153   50   458   90 12 26   128
 
Natural Gas Liquids Extracted (MB/D)
Consolidated
United States - - - - - - - - -
International - - - - - - - - -
Equity Affiliates
United States* 190 188 169 175 180 165 180 186 177
International 8   8 7   7   8   7 8 8   8
Total 198   196 176   182   188   172 188 194   185
* Represents 50 percent interest in DCP Midstream.
 

Natural Gas Liquids Fractionated (MB/D)

United States* 141 149 166 150 151 144 157 147 149
International 13   13 15   15   14   16 17 17   17
Total 154   162 181   165   165   160 174 164   166
* Excludes DCP Midstream.
 
Product Prices
Weighted Average NGL ($/bbl)*
Consolidated 60.09 68.21 67.39 29.49 56.29 26.04 29.99 34.66 30.23
DCP Midstream 56.48   62.53 60.46   28.85   52.08   23.86 26.02 28.89   26.26
* 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) 2   1 2   1   6   2 1 1   4

Page 11 of 12

CHEMICALS
 
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Chemicals Net Income (Loss) Attributable

to ConocoPhillips ($ Millions) 52   18   46   (6 ) 110   23   67   104     194  
Industry Margins (Cents/Lb)*

 

Ethylene industry cash margin 10.6 10.2 16.0 15.3 13.0 7.0 6.7 8.4 7.3
HDPE industry contract sales margin 14.9 15.0 23.4 22.5 19.0 18.2 24.5 27.6 23.4
Styrene industry contract sales margin 11.6   11.3   14.4   16.0   13.3   14.8   13.9   11.5     13.4  
* 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
 
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Emerging Businesses Net Income (Loss)

Attributable to ConocoPhillips ($ Millions) 12   8   35   (25 ) 30   -   2   (2 )   -  
 
Detail of Net Income (Loss)

Attributable to ConocoPhillips ($ Millions)

Power 27 26 53 - 106 24 27 22 73
Other (15 ) (18 ) (18 ) (25 ) (76 ) (24 ) (25 ) (24 )   (73 )
Total 12   8   35   (25 ) 30   -   2   (2 )   -  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (1 ) 1   (2 ) (5 ) (7 ) (1 ) 4   (1 )   2  
 

 

 
 
CORPORATE AND OTHER
 
    2008           2009      
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD

Corporate and Other Net Income (Loss)

Attributable to ConocoPhillips ($ Millions) (179 ) (186 ) (281 ) (388 ) (1,034 ) (259 ) (157 ) (283 )   (699 )
 
Detail of Net Income (Loss)

Attributable to ConocoPhillips ($ Millions)

Net interest expense (108 ) (119 ) (149 ) (182 ) (558 ) (190 ) (175 ) (245 ) (610 )
Corporate overhead (44 ) (68 ) (41 ) (49 ) (202 ) (41 ) (31 ) (5 ) (77 )
Other (27 ) 1   (91 ) (157 ) (274 ) (28 ) 49   (33 )   (12 )
Total (179 ) (186 ) (281 ) (388 ) (1,034 ) (259 ) (157 ) (283 )   (699 )
 

Before-Tax Net Interest Expense ($ Millions)

Interest expense (319 ) (324 ) (326 ) (362 ) (1,331 ) (387 ) (360 ) (426 ) (1,173 )
Capitalized interest 157 157 130 125 569 118 131 129 378
Interest revenue 72 14 28 14 128 40 10 9 59
Premium on early debt retirement (14 ) -   -   (1 ) (15 ) (2 ) -   -     (2 )
Total (104 ) (153 ) (168 ) (224 ) (649 ) (231 ) (219 ) (288 )   (738 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (3 ) 41   (56 ) (54 ) (72 ) (1 ) 79   18     96  
 
Debt
Total Debt ($ Millions) 21,492 21,924 22,100 27,455 27,455 29,379 30,364 30,458 30,458
Debt-to-Capital Ratio 19 % 19 % 19 % 33 % 33 % 34 % 34 % 33 %   33 %
 
Common Stockholders' Equity ($ Millions) 89,575   92,398   92,876   55,165   55,165   55,095   58,929   61,510     61,510  

Page 12 of 12