000116316512-312024Q2falsehttp://fasb.org/us-gaap/2024#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2024#OtherAssetsNoncurrentP1Y4.5xbrli:sharesiso4217:USDiso4217:USDxbrli:sharesxbrli:pureiso4217:CADcop:lawsuitcop:wellutr:Bcfiso4217:USDutr:Boecop:segment00011631652024-01-012024-06-300001163165us-gaap:CommonStockMember2024-01-012024-06-300001163165cop:SevenPercentDebenturesDueTwentyTwentyNineMember2024-01-012024-06-3000011631652024-06-3000011631652024-04-012024-06-3000011631652023-04-012023-06-3000011631652023-01-012023-06-3000011631652023-12-310001163165us-gaap:NonrelatedPartyMember2024-06-300001163165us-gaap:NonrelatedPartyMember2023-12-310001163165us-gaap:RelatedPartyMember2024-06-300001163165us-gaap:RelatedPartyMember2023-12-3100011631652022-12-3100011631652023-06-300001163165cop:SurmontMember2023-10-040001163165cop:SurmontMember2023-10-042023-10-040001163165cop:SurmontMember2024-01-012024-06-300001163165cop:SurmontMember2023-04-012023-06-300001163165srt:ProFormaMember2023-04-012023-06-300001163165cop:SurmontMember2023-01-012023-06-300001163165srt:ProFormaMember2023-01-012023-06-300001163165cop:AustraliaPacificAplngMember2024-06-300001163165cop:PortArthurLNGMember2023-03-310001163165cop:PortArthurLNGMember2024-06-300001163165cop:QatarEnergyLNGN3Member2024-06-300001163165cop:QatarEnergyMembercop:QatarEnergyLNGN3Member2024-06-300001163165cop:MitsuiCoLtdMembercop:QatarEnergyLNGN3Member2024-06-300001163165cop:QatarEnergyLNGNFE4Member2024-06-300001163165cop:QatarEnergyMembercop:QatarEnergyLNGNFE4Member2024-06-300001163165cop:QatarEnergyLNGNFE4Membercop:ChinaNationalPetroleumCorporationMember2024-06-300001163165cop:QatarEnergyLNGNFS3Member2024-06-300001163165cop:QatarEnergyMembercop:QatarEnergyLNGNFS3Member2024-06-300001163165cop:QatarLiquifiedGasCompanyMember2024-06-300001163165cop:QatarEnergyMembercop:QatarEnergyLNGNFE4Member2024-04-012024-06-300001163165cop:A2125NoteDue2024Memberus-gaap:NotesPayableToBanksMember2024-01-012024-03-310001163165cop:A2125NoteDue2024Memberus-gaap:NotesPayableToBanksMember2024-03-310001163165us-gaap:RevolvingCreditFacilityMember2024-06-300001163165srt:MaximumMemberus-gaap:LetterOfCreditMember2024-06-300001163165us-gaap:RevolvingCreditFacilityMember2023-12-310001163165cop:VariableRateDebtBondsMember2024-06-300001163165us-gaap:CommonStockMember2024-03-310001163165us-gaap:AdditionalPaidInCapitalMember2024-03-310001163165us-gaap:TreasuryStockCommonMember2024-03-310001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001163165us-gaap:RetainedEarningsMember2024-03-3100011631652024-03-310001163165us-gaap:RetainedEarningsMember2024-04-012024-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-04-012024-06-300001163165us-gaap:TreasuryStockCommonMember2024-04-012024-06-300001163165us-gaap:AdditionalPaidInCapitalMember2024-04-012024-06-300001163165us-gaap:CommonStockMember2024-06-300001163165us-gaap:AdditionalPaidInCapitalMember2024-06-300001163165us-gaap:TreasuryStockCommonMember2024-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-06-300001163165us-gaap:RetainedEarningsMember2024-06-300001163165us-gaap:CommonStockMember2023-12-310001163165us-gaap:AdditionalPaidInCapitalMember2023-12-310001163165us-gaap:TreasuryStockCommonMember2023-12-310001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-310001163165us-gaap:RetainedEarningsMember2023-12-310001163165us-gaap:RetainedEarningsMember2024-01-012024-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-06-300001163165us-gaap:TreasuryStockCommonMember2024-01-012024-06-300001163165us-gaap:AdditionalPaidInCapitalMember2024-01-012024-06-300001163165us-gaap:CommonStockMember2023-03-310001163165us-gaap:AdditionalPaidInCapitalMember2023-03-310001163165us-gaap:TreasuryStockCommonMember2023-03-310001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-03-310001163165us-gaap:RetainedEarningsMember2023-03-3100011631652023-03-310001163165us-gaap:RetainedEarningsMember2023-04-012023-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-04-012023-06-300001163165us-gaap:TreasuryStockCommonMember2023-04-012023-06-300001163165us-gaap:AdditionalPaidInCapitalMember2023-04-012023-06-300001163165us-gaap:CommonStockMember2023-06-300001163165us-gaap:AdditionalPaidInCapitalMember2023-06-300001163165us-gaap:TreasuryStockCommonMember2023-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-06-300001163165us-gaap:RetainedEarningsMember2023-06-300001163165us-gaap:CommonStockMember2022-12-310001163165us-gaap:AdditionalPaidInCapitalMember2022-12-310001163165us-gaap:TreasuryStockCommonMember2022-12-310001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-12-310001163165us-gaap:RetainedEarningsMember2022-12-310001163165us-gaap:RetainedEarningsMember2023-01-012023-06-300001163165us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-01-012023-06-300001163165us-gaap:TreasuryStockCommonMember2023-01-012023-06-300001163165us-gaap:AdditionalPaidInCapitalMember2023-01-012023-06-300001163165cop:AustraliaPacificAplngMembercop:FinanceReserveGuaranteeMember2024-01-012024-06-300001163165cop:AustraliaPacificAplngMembercop:FinanceReserveGuaranteeMember2024-06-300001163165cop:AustraliaPacificAplngMembercop:MaxPotentialFuturePaymentsProrataShareMember2024-06-300001163165cop:AustraliaPacificAplngMembercop:MaxPotentialFuturePaymentsRecklessBreachMember2024-06-300001163165srt:MinimumMembercop:AustraliaPacificAplngMembercop:AplngContinuedDevelopmentMemberMember2024-01-012024-06-300001163165srt:MaximumMembercop:AustraliaPacificAplngMembercop:AplngContinuedDevelopmentMemberMember2024-01-012024-06-300001163165cop:AustraliaPacificAplngMembercop:AplngContinuedDevelopmentMemberMember2024-06-300001163165cop:QatarEnergyLNGNFEAndQatarEnergyLNGNFS3Membercop:JointVentureObligationGuaranteeMember2024-01-012024-06-300001163165cop:QatarEnergyLNGNFEAndQatarEnergyLNGNFS3Membercop:JointVentureObligationGuaranteeMember2024-06-300001163165cop:OtherGuaranteesMember2024-06-300001163165srt:MinimumMembercop:OtherGuaranteesMember2024-01-012024-06-300001163165srt:MaximumMembercop:OtherGuaranteesMember2024-01-012024-06-300001163165us-gaap:IndemnificationGuaranteeMember2024-06-300001163165cop:CleanupRemediationActivitiesMembercop:UnitedStatesAndCanadaMember2024-01-012024-06-300001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuelaMember2019-03-012019-03-310001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuelaMember2019-08-290001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuelaMember2024-06-300001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuela2Member2018-04-012018-04-300001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuela2Member2018-08-012018-08-310001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuela2Member2024-06-300001163165country:VEcop:ConocoPhillipsVersusPetroleosDeVenezuela2Member2019-08-022019-08-020001163165cop:SeveralLouisianaParishesAndTheStateOfLouisianaAgainstOilAndGasCompaniesMembercop:ConocoPhillipsEntitiesMember2017-01-012017-12-310001163165cop:OuterContinentalShelfLeaseMembercop:PhillipsPetroleumCompanyMember2020-10-310001163165cop:OuterContinentalShelfLeaseMembercop:PhillipsPetroleumCompanyMember2020-10-012020-10-310001163165cop:BustaPL782SMember2024-01-012024-03-310001163165us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CommodityContractMember2024-06-300001163165us-gaap:PrepaidExpensesAndOtherCurrentAssetsMemberus-gaap:CommodityContractMember2023-12-310001163165us-gaap:OtherAssetsMemberus-gaap:CommodityContractMember2024-06-300001163165us-gaap:OtherAssetsMemberus-gaap:CommodityContractMember2023-12-310001163165us-gaap:CommodityContractMembercop:OtherAccrualsMember2024-06-300001163165us-gaap:CommodityContractMembercop:OtherAccrualsMember2023-12-310001163165us-gaap:OtherLiabilitiesMemberus-gaap:CommodityContractMember2024-06-300001163165us-gaap:OtherLiabilitiesMemberus-gaap:CommodityContractMember2023-12-310001163165us-gaap:SalesMemberus-gaap:CommodityContractMember2024-04-012024-06-300001163165us-gaap:SalesMemberus-gaap:CommodityContractMember2023-04-012023-06-300001163165us-gaap:SalesMemberus-gaap:CommodityContractMember2024-01-012024-06-300001163165us-gaap:SalesMemberus-gaap:CommodityContractMember2023-01-012023-06-300001163165us-gaap:OtherIncomeMemberus-gaap:CommodityContractMember2024-04-012024-06-300001163165us-gaap:OtherIncomeMemberus-gaap:CommodityContractMember2023-04-012023-06-300001163165us-gaap:OtherIncomeMemberus-gaap:CommodityContractMember2024-01-012024-06-300001163165us-gaap:OtherIncomeMemberus-gaap:CommodityContractMember2023-01-012023-06-300001163165us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2024-04-012024-06-300001163165us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2023-04-012023-06-300001163165us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2024-01-012024-06-300001163165us-gaap:CostOfSalesMemberus-gaap:CommodityContractMember2023-01-012023-06-300001163165us-gaap:ShortMemberus-gaap:CommodityContractMembercop:NaturalGasPowerAndCarbonDioxideEmissionsFlatPriceMember2024-01-012024-06-300001163165us-gaap:ShortMemberus-gaap:CommodityContractMembercop:NaturalGasPowerAndCarbonDioxideEmissionsFlatPriceMember2023-01-012023-12-310001163165us-gaap:LongMembercop:NaturalGasPowerAndCarbonDioxideEmissionsBasisMemberus-gaap:CommodityContractMember2024-01-012024-06-300001163165cop:NaturalGasPowerAndCarbonDioxideEmissionsBasisMemberus-gaap:ShortMemberus-gaap:CommodityContractMember2023-01-012023-12-310001163165us-gaap:InterestRateSwapMember2024-04-012024-06-300001163165us-gaap:InterestRateSwapMember2024-01-012024-06-300001163165us-gaap:CashMember2024-06-300001163165us-gaap:CashMember2023-12-310001163165us-gaap:DemandDepositsMember2024-06-300001163165us-gaap:DemandDepositsMember2023-12-310001163165cop:RemainingMaturities1To90DaysMemberus-gaap:BankTimeDepositsMember2024-06-300001163165cop:RemainingMaturities1To90DaysMemberus-gaap:BankTimeDepositsMember2023-12-310001163165us-gaap:BankTimeDepositsMembercop:RemainingMaturities91To180DaysMember2024-06-300001163165us-gaap:BankTimeDepositsMembercop:RemainingMaturities91To180DaysMember2023-12-310001163165us-gaap:BankTimeDepositsMembercop:RemainingMaturitiesWithinOneYearMember2024-06-300001163165us-gaap:BankTimeDepositsMembercop:RemainingMaturitiesWithinOneYearMember2023-12-310001163165cop:RemainingMaturities1To90DaysMemberus-gaap:USGovernmentDebtSecuritiesMember2024-06-300001163165cop:RemainingMaturities1To90DaysMemberus-gaap:USGovernmentDebtSecuritiesMember2023-12-310001163165us-gaap:CorporateDebtSecuritiesMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165us-gaap:CorporateDebtSecuritiesMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165us-gaap:CorporateDebtSecuritiesMembercop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165us-gaap:CorporateDebtSecuritiesMembercop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165us-gaap:CommercialPaperMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165us-gaap:CommercialPaperMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USGovernmentDebtSecuritiesMember2024-06-300001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USGovernmentDebtSecuritiesMember2023-12-310001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USGovernmentDebtSecuritiesMember2024-06-300001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:USGovernmentDebtSecuritiesMember2023-12-310001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165us-gaap:ForeignGovernmentDebtMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165us-gaap:ForeignGovernmentDebtMembercop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:ForeignGovernmentDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:ForeignGovernmentDebtMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:AssetBackedSecuritiesMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesWithinOneYearMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165cop:RemainingMaturitiesGreaterThanOneYearThroughEightYearsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165srt:MinimumMember2024-01-012024-06-300001163165srt:MaximumMember2024-01-012024-06-300001163165us-gaap:CorporateDebtSecuritiesMember2024-06-300001163165us-gaap:CorporateDebtSecuritiesMember2023-12-310001163165us-gaap:CommercialPaperMember2024-06-300001163165us-gaap:CommercialPaperMember2023-12-310001163165us-gaap:USGovernmentDebtSecuritiesMember2024-06-300001163165us-gaap:USGovernmentDebtSecuritiesMember2023-12-310001163165us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2024-06-300001163165us-gaap:USGovernmentCorporationsAndAgenciesSecuritiesMember2023-12-310001163165us-gaap:ForeignGovernmentDebtMember2024-06-300001163165us-gaap:ForeignGovernmentDebtMember2023-12-310001163165us-gaap:AssetBackedSecuritiesMember2024-06-300001163165us-gaap:AssetBackedSecuritiesMember2023-12-3100011631652023-01-012023-12-310001163165srt:MaximumMemberus-gaap:AccountsReceivableMember2024-01-012024-06-300001163165cop:InEventOfDowngradeBelowInvestmentGradeMember2024-06-300001163165us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300001163165us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2024-06-300001163165us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2024-06-300001163165us-gaap:FairValueMeasurementsRecurringMember2024-06-300001163165us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001163165us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMember2023-12-310001163165us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel3Member2023-12-310001163165us-gaap:FairValueMeasurementsRecurringMember2023-12-310001163165srt:MinimumMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2024-06-300001163165srt:MaximumMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2024-06-300001163165srt:ArithmeticAverageMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2024-06-300001163165srt:MinimumMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2023-12-310001163165srt:MaximumMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2023-12-310001163165srt:ArithmeticAverageMemberus-gaap:FairValueMeasurementsRecurringMembercop:MeasurementInputCommodityPriceOutlookMemberus-gaap:ValuationTechniqueDiscountedCashFlowMemberus-gaap:FairValueInputsLevel3Member2023-12-310001163165us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CommodityContractMember2024-06-300001163165us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CommodityContractMember2023-12-310001163165us-gaap:CommodityContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2024-06-300001163165us-gaap:CommodityContractMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163165us-gaap:CarryingReportedAmountFairValueDisclosureMember2024-06-300001163165us-gaap:CarryingReportedAmountFairValueDisclosureMember2023-12-310001163165us-gaap:EstimateOfFairValueFairValueDisclosureMember2024-06-300001163165us-gaap:EstimateOfFairValueFairValueDisclosureMember2023-12-310001163165us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2023-12-310001163165us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2023-12-310001163165us-gaap:AccumulatedTranslationAdjustmentMember2023-12-310001163165us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2023-12-310001163165us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-01-012024-06-300001163165us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-01-012024-06-300001163165us-gaap:AccumulatedTranslationAdjustmentMember2024-01-012024-06-300001163165us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-01-012024-06-300001163165us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2024-06-300001163165us-gaap:AccumulatedNetUnrealizedInvestmentGainLossMember2024-06-300001163165us-gaap:AccumulatedTranslationAdjustmentMember2024-06-300001163165us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2024-06-300001163165us-gaap:PensionPlansDefinedBenefitMembercountry:US2024-04-012024-06-300001163165us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2024-04-012024-06-300001163165us-gaap:PensionPlansDefinedBenefitMembercountry:US2023-04-012023-06-300001163165us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-04-012023-06-300001163165us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-04-012024-06-300001163165us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-04-012023-06-300001163165us-gaap:PensionPlansDefinedBenefitMembercountry:US2024-01-012024-06-300001163165us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2024-01-012024-06-300001163165us-gaap:PensionPlansDefinedBenefitMembercountry:US2023-01-012023-06-300001163165us-gaap:PensionPlansDefinedBenefitMemberus-gaap:ForeignPlanMember2023-01-012023-06-300001163165us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2024-01-012024-06-300001163165us-gaap:OtherPostretirementBenefitPlansDefinedBenefitMember2023-01-012023-06-300001163165country:US2024-01-012024-06-300001163165us-gaap:ForeignPlanMember2024-01-012024-06-300001163165country:US2024-06-300001163165us-gaap:ForeignPlanMember2024-06-300001163165us-gaap:RelatedPartyMember2024-04-012024-06-300001163165us-gaap:RelatedPartyMember2023-04-012023-06-300001163165us-gaap:RelatedPartyMember2024-01-012024-06-300001163165us-gaap:RelatedPartyMember2023-01-012023-06-300001163165cop:PhysicalGasContractsMember2024-04-012024-06-300001163165cop:PhysicalGasContractsMember2023-04-012023-06-300001163165cop:PhysicalGasContractsMember2024-01-012024-06-300001163165cop:PhysicalGasContractsMember2023-01-012023-06-300001163165cop:FinancialDerivativeContractsMember2024-04-012024-06-300001163165cop:FinancialDerivativeContractsMember2023-04-012023-06-300001163165cop:FinancialDerivativeContractsMember2024-01-012024-06-300001163165cop:FinancialDerivativeContractsMember2023-01-012023-06-300001163165cop:PhysicalGasContractsMembercop:LowerFortyEightSegmentMember2024-04-012024-06-300001163165cop:PhysicalGasContractsMembercop:LowerFortyEightSegmentMember2023-04-012023-06-300001163165cop:PhysicalGasContractsMembercop:LowerFortyEightSegmentMember2024-01-012024-06-300001163165cop:PhysicalGasContractsMembercop:LowerFortyEightSegmentMember2023-01-012023-06-300001163165cop:PhysicalGasContractsMembercop:CanadaSegmentMember2024-04-012024-06-300001163165cop:PhysicalGasContractsMembercop:CanadaSegmentMember2023-04-012023-06-300001163165cop:PhysicalGasContractsMembercop:CanadaSegmentMember2024-01-012024-06-300001163165cop:PhysicalGasContractsMembercop:CanadaSegmentMember2023-01-012023-06-300001163165cop:PhysicalGasContractsMembercop:EuropeMiddleEastAndNorthAfricaMember2024-04-012024-06-300001163165cop:PhysicalGasContractsMembercop:EuropeMiddleEastAndNorthAfricaMember2023-04-012023-06-300001163165cop:PhysicalGasContractsMembercop:EuropeMiddleEastAndNorthAfricaMember2024-01-012024-06-300001163165cop:PhysicalGasContractsMembercop:EuropeMiddleEastAndNorthAfricaMember2023-01-012023-06-300001163165cop:CrudeOilProductLineMember2024-04-012024-06-300001163165cop:CrudeOilProductLineMember2023-04-012023-06-300001163165cop:CrudeOilProductLineMember2024-01-012024-06-300001163165cop:CrudeOilProductLineMember2023-01-012023-06-300001163165cop:NaturalGasProductLineMember2024-04-012024-06-300001163165cop:NaturalGasProductLineMember2023-04-012023-06-300001163165cop:NaturalGasProductLineMember2024-01-012024-06-300001163165cop:NaturalGasProductLineMember2023-01-012023-06-300001163165cop:OtherProductsMember2024-04-012024-06-300001163165cop:OtherProductsMember2023-04-012023-06-300001163165cop:OtherProductsMember2024-01-012024-06-300001163165cop:OtherProductsMember2023-01-012023-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:LowerFortyEightMember2024-04-012024-06-300001163165cop:LowerFortyEightMember2023-04-012023-06-300001163165cop:LowerFortyEightMember2024-01-012024-06-300001163165cop:LowerFortyEightMember2023-01-012023-06-300001163165cop:LowerFortyEightMemberus-gaap:IntersegmentEliminationMember2024-04-012024-06-300001163165cop:LowerFortyEightMemberus-gaap:IntersegmentEliminationMember2023-04-012023-06-300001163165cop:LowerFortyEightMemberus-gaap:IntersegmentEliminationMember2024-01-012024-06-300001163165cop:LowerFortyEightMemberus-gaap:IntersegmentEliminationMember2023-01-012023-06-300001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:CanadaOperatingSegmentMember2024-04-012024-06-300001163165cop:CanadaOperatingSegmentMember2023-04-012023-06-300001163165cop:CanadaOperatingSegmentMember2024-01-012024-06-300001163165cop:CanadaOperatingSegmentMember2023-01-012023-06-300001163165us-gaap:IntersegmentEliminationMembercop:CanadaOperatingSegmentMember2024-04-012024-06-300001163165us-gaap:IntersegmentEliminationMembercop:CanadaOperatingSegmentMember2023-04-012023-06-300001163165us-gaap:IntersegmentEliminationMembercop:CanadaOperatingSegmentMember2024-01-012024-06-300001163165us-gaap:IntersegmentEliminationMembercop:CanadaOperatingSegmentMember2023-01-012023-06-300001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:CorporateAndReconcilingItemsMember2024-04-012024-06-300001163165cop:CorporateAndReconcilingItemsMember2023-04-012023-06-300001163165cop:CorporateAndReconcilingItemsMember2024-01-012024-06-300001163165cop:CorporateAndReconcilingItemsMember2023-01-012023-06-300001163165us-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165us-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165us-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165us-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165country:US2024-04-012024-06-300001163165country:US2023-04-012023-06-300001163165country:US2024-01-012024-06-300001163165country:US2023-01-012023-06-300001163165country:CA2024-04-012024-06-300001163165country:CA2023-04-012023-06-300001163165country:CA2024-01-012024-06-300001163165country:CA2023-01-012023-06-300001163165country:CN2024-04-012024-06-300001163165country:CN2023-04-012023-06-300001163165country:CN2024-01-012024-06-300001163165country:CN2023-01-012023-06-300001163165country:LY2024-04-012024-06-300001163165country:LY2023-04-012023-06-300001163165country:LY2024-01-012024-06-300001163165country:LY2023-01-012023-06-300001163165country:MY2024-04-012024-06-300001163165country:MY2023-04-012023-06-300001163165country:MY2024-01-012024-06-300001163165country:MY2023-01-012023-06-300001163165country:NO2024-04-012024-06-300001163165country:NO2023-04-012023-06-300001163165country:NO2024-01-012024-06-300001163165country:NO2023-01-012023-06-300001163165country:GB2024-04-012024-06-300001163165country:GB2023-04-012023-06-300001163165country:GB2024-01-012024-06-300001163165country:GB2023-01-012023-06-300001163165us-gaap:NonUsMember2024-04-012024-06-300001163165us-gaap:NonUsMember2023-04-012023-06-300001163165us-gaap:NonUsMember2024-01-012024-06-300001163165us-gaap:NonUsMember2023-01-012023-06-300001163165srt:CrudeOilMember2024-04-012024-06-300001163165srt:CrudeOilMember2023-04-012023-06-300001163165srt:CrudeOilMember2024-01-012024-06-300001163165srt:CrudeOilMember2023-01-012023-06-300001163165srt:NaturalGasReservesMember2024-04-012024-06-300001163165srt:NaturalGasReservesMember2023-04-012023-06-300001163165srt:NaturalGasReservesMember2024-01-012024-06-300001163165srt:NaturalGasReservesMember2023-01-012023-06-300001163165srt:NaturalGasLiquidsReservesMember2024-04-012024-06-300001163165srt:NaturalGasLiquidsReservesMember2023-04-012023-06-300001163165srt:NaturalGasLiquidsReservesMember2024-01-012024-06-300001163165srt:NaturalGasLiquidsReservesMember2023-01-012023-06-300001163165cop:OtherProductsMember2024-04-012024-06-300001163165cop:OtherProductsMember2023-04-012023-06-300001163165cop:OtherProductsMember2024-01-012024-06-300001163165cop:OtherProductsMember2023-01-012023-06-300001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2024-04-012024-06-300001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2023-04-012023-06-300001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2024-01-012024-06-300001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2023-01-012023-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:AlaskaSegmentMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:LowerFortyEightMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:CanadaOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:EuropeMiddleEastAndNorthAfricaMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:AsiaPacificOperatingSegmentMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2024-06-300001163165cop:OtherInternationalMemberus-gaap:OperatingSegmentsMember2023-12-310001163165cop:CorporateAndReconcilingItemsMember2024-06-300001163165cop:CorporateAndReconcilingItemsMember2023-12-3100011631652024-01-012024-03-310001163165srt:ScenarioForecastMembercop:MarathonOilCorporationMember2024-10-012024-12-31
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2024
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________________ to ___________________
Commission file number: 001-32395
ConocoPhillips_2023_Logo.jpg
ConocoPhillips
(Exact name of registrant as specified in its charter)
Delaware01-0562944
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
925 N. Eldridge Parkway, Houston, TX 77079
(Address of principal executive offices) (Zip Code)
281-293-1000
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
Trading symbols
Name of each exchange on which registered
Common Stock, $.01 Par Value
COP
New York Stock Exchange
7% Debentures due 2029
CUSIP—718507BK1
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer        Accelerated filer        Non-accelerated filer        Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No
The registrant had 1,161,249,790 shares of common stock, $.01 par value, outstanding at June 30, 2024.


Table of Contents
Page


Commonly Used Abbreviations
Commonly Used Abbreviations
The following industry-specific, accounting and other terms, and abbreviations may be commonly used in this report.
Currencies
Accounting
$ or USD
U.S. dollar
ARO
asset retirement obligation
CAD
Canadian dollar
ASC
accounting standards codification
EUR
Euro
ASU
accounting standards update
GBP
NOK
British pound
Norwegian kroner
DD&A
depreciation, depletion and amortization
FASB
Financial Accounting Standards
Board
Units of Measurement
BBL
barrel
FIFO
first-in, first-out
BCF
billion cubic feet
G&A
general and administrative
BOE
barrel of oil equivalent
GAAP
generally accepted accounting principles
MBD
thousand barrels per day
MCF
thousand cubic feet
LIFO
last-in, first-out
MM
million
NPNS
normal purchase normal sale
MMBOE
million barrels of oil equivalent
PP&E
properties, plants and equipment
MBOED
thousand barrels of oil equivalent per day
VIE
variable interest entity
MMBOED
million barrels of oil equivalent
per day
MMBTU
million British thermal units
Miscellaneous
MMCFD
MTPA
million cubic feet per day
million tonnes per annum
CERCLAFederal Comprehensive Environmental Response Compensation and Liability Act
DEI
diversity, equity and inclusion
Industry
EPA
Environmental Protection Agency
BLM
Bureau of Land Management
ESG
environmental, social and governance
CBM
coalbed methane
EU
European Union
CCS
carbon capture and storage
FERC
Federal Energy Regulatory Commission
E&P
exploration and production
FEED
front-end engineering and design
GHG
greenhouse gas
FIDfinal investment decision
HSE
health, safety and environment
FPS
floating production system
ICC
International Chamber of Commerce
FPSOfloating production, storage and
ICSID
World Bank’s International

offloading
Centre for Settlement of
G&G
geological and geophysical
Investment Disputes
JOA
joint operating agreement
IRS
Internal Revenue Service
LNG
liquefied natural gas
OTC
over-the-counter
NGLs
natural gas liquids
NYSE
New York Stock Exchange
OPEC
Organization of Petroleum
SEC
U.S. Securities and Exchange
Exporting Countries
Commission
PSC
production sharing contract
TSR
total shareholder return
PUDs
proved undeveloped reserves
U.K.
United Kingdom
SAGD
steam-assisted gravity drainage
U.S.
United States of America
WCS
Western Canadian Select
VROCvariable return of cash
WTI
West Texas Intermediate
1
ConocoPhillips      2024 Q2 10-Q

Financial Statements
PART I. Financial Information
Item 1.    Financial Statements
Consolidated Income Statement
ConocoPhillips

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Revenues and Other Income
Sales and other operating revenues
$13,620 12,351 27,468 27,162 
Equity in earnings of affiliates
403 412 824 911 
Gain (loss) on dispositions
(5)(1)88 92 
Other income
118 122 232 236 
Total Revenues and Other Income
14,136 12,884 28,612 28,401 
Costs and Expenses


Purchased commodities
4,858 4,616 10,192 10,754 
Production and operating expenses
2,164 1,886 4,179 3,665 
Selling, general and administrative expenses
164 205 342 364 
Exploration expenses
102 83 214 221 
Depreciation, depletion and amortization
2,334 2,010 4,545 3,952 
Impairments
34  34 1 
Taxes other than income taxes
536 512 1,091 1,088 
Accretion on discounted liabilities
80 68 160 136 
Interest and debt expense
198 179 403 367 
Foreign currency transaction (gain) loss
9 (14)(9)(58)
Other expenses
(2)(23)(6)(13)
Total Costs and Expenses
10,477 9,522 21,145 20,477 
Income (loss) before income taxes
3,659 3,362 7,467 7,924 
Income tax provision (benefit)
1,330 1,130 2,587 2,772 
Net Income (Loss)
$2,329 2,232 4,880 5,152 
Net Income (Loss) Per Share of Common Stock (dollars)
Basic$1.99 1.84 4.15 4.23 
Diluted1.98 1.84 4.14 4.22 
Weighted-Average Common Shares Outstanding (in thousands)
Basic1,168,198 1,207,443 1,173,410 1,213,800 
Diluted1,170,299 1,210,342 1,175,595 1,216,743 
See Notes to Consolidated Financial Statements.
ConocoPhillips      2024 Q2 10-Q
2

Financial Statements
Consolidated Statement of Comprehensive Income
ConocoPhillips
Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Net Income (Loss)
$2,329 2,232 4,880 5,152 
Other comprehensive income (loss)
Defined benefit plans
Reclassification adjustment for amortization of prior service cost (credit) included in net income (loss)
(10)(10)(19)(19)
Net change(10)(10)(19)(19)
Reclassification adjustment for amortization of net actuarial losses (gains) included in net income (loss)
16 19 32 42 
Net change16 19 32 42 
Income taxes on defined benefit plans
(2)(3)(4)(6)
Defined benefit plans, net of tax
4 6 9 17 
Unrealized holding gain (loss) on securities
(1)(3)(5)3 
Reclassification adjustment for (gain) loss included in net income (loss) (1) (2)
Income taxes on unrealized holding gain (loss) on securities
 1 1  
Unrealized holding gain (loss) on securities, net of tax
(1)(3)(4)1
Foreign currency translation adjustments, net of tax
(73)99 (303)57 
Unrealized gain (loss) on hedging activities33  13  
Income taxes on unrealized gain (loss) on hedging activities(7) (3) 
Unrealized gain (loss) on hedging activities, net of tax26  10  
Other Comprehensive Income (Loss), Net of Tax
(44)102 (288)75 
Comprehensive Income (Loss)
$2,285 2,334 4,592 5,227 
See Notes to Consolidated Financial Statements.
3
ConocoPhillips      2024 Q2 10-Q

Financial Statements
Consolidated Balance Sheet
ConocoPhillips
Millions of Dollars

June 30
2024
December 31
2023
Assets


Cash and cash equivalents
$4,294 5,635 
Short-term investments
1,723 971 
Accounts and notes receivable (net of allowance of $4 and $3, respectively)
5,285 5,461 
Accounts and notes receivable—related parties
22 13 
Inventories
1,447 1,398 
Prepaid expenses and other current assets
963 852 
Total Current Assets
13,734 14,330 
Investments and long-term receivables
9,304 9,130 
Net properties, plants and equipment (net of accumulated DD&A of $77,911 and $74,361, respectively)
70,226 70,044 
Other assets
2,730 2,420 
Total Assets
$95,994 95,924 
Liabilities

Accounts payable
$5,065 5,083 
Accounts payable—related parties
91 34 
Short-term debt
1,312 1,074 
Accrued income and other taxes
2,016 1,811 
Employee benefit obligations
516 774 
Other accruals
1,324 1,229 
Total Current Liabilities
10,324 10,005 
Long-term debt
17,040 17,863 
Asset retirement obligations and accrued environmental costs
7,238 7,220 
Deferred income taxes
8,927 8,813 
Employee benefit obligations
990 1,009 
Other liabilities and deferred credits
1,730 1,735 
Total Liabilities
46,249 46,645 
Equity

Common stock (2,500,000,000 shares authorized at $0.01 par value)
Issued (2024—2,106,906,457 shares; 2023—2,103,772,516 shares)
Par value
21 21 
Capital in excess of par
61,381 61,303 
Treasury stock (at cost: 2024—945,656,667 shares; 2023—925,670,961 shares)
(68,005)(65,640)
Accumulated other comprehensive income (loss)
(5,961)(5,673)
Retained earnings
62,309 59,268 
Total Equity
49,745 49,279 
Total Liabilities and Equity
$95,994 95,924 
See Notes to Consolidated Financial Statements.
ConocoPhillips      2024 Q2 10-Q
4

Financial Statements
Consolidated Statement of Cash Flows
ConocoPhillips

Millions of Dollars

Six Months Ended
June 30

20242023
Cash Flows From Operating Activities
Net income (loss)
$4,880 5,152 
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation, depletion and amortization
4,545 3,952 
Impairments
34 1 
Dry hole costs and leasehold impairments
48 102 
Accretion on discounted liabilities
160 136 
Deferred taxes
211 489 
Distributions more (less) than income from equity affiliates
364 652 
(Gain) loss on dispositions
(88)(92)
Other
10 (7)
Working capital adjustments

Decrease (increase) in accounts and notes receivable
148 2,246 
Decrease (increase) in inventories
(57)(23)
Decrease (increase) in prepaid expenses and other current assets
(147)295 
Increase (decrease) in accounts payable
(183)(1,614)
Increase (decrease) in taxes and other accruals
(21)(2,032)
Net Cash Provided by Operating Activities
9,904 9,257 
Cash Flows From Investing Activities

Capital expenditures and investments
(5,885)(5,820)
Working capital changes associated with investing activities
173 86 
Acquisition of businesses, net of cash acquired
49  
Proceeds from asset dispositions
178 426 
Net sales (purchases) of investments
(794)1,549 
Other
(13)(5)
Net Cash Used in Investing Activities
(6,292)(3,764)
Cash Flows From Financing Activities
Issuance of debt
 1,093 
Repayment of debt
(563)(1,200)
Issuance of company common stock
(57)(95)
Repurchase of company common stock
(2,346)(3,000)
Dividends paid
(1,839)(2,838)
Other
(63)(11)
Net Cash Used in Financing Activities
(4,868)(6,051)
Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash
(69)(162)
Net Change in Cash, Cash Equivalents and Restricted Cash
(1,325)(720)
Cash, cash equivalents and restricted cash at beginning of period
5,899 6,694 
Cash, Cash Equivalents and Restricted Cash at End of Period
$4,574 5,974 
Restricted cash of $280 million and $264 million is included in the "Other assets" line of our Consolidated Balance Sheet as of June 30, 2024 and December 31, 2023, respectively.
See Notes to Consolidated Financial Statements.
5
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Notes to Consolidated Financial Statements
Note 1—Basis of Presentation
The interim-period financial information presented in the financial statements included in this report is unaudited and, in the opinion of management, includes all known accruals and adjustments necessary for a fair presentation of the consolidated financial position of ConocoPhillips, its results of operations and cash flows for such periods. All such adjustments are of a normal and recurring nature unless otherwise disclosed. Certain notes and other information have been condensed or omitted from the interim financial statements included in this report. Therefore, these financial statements should be read in conjunction with the consolidated financial statements and notes included in our 2023 Annual Report on Form 10-K.

Note 2—Inventories
Millions of Dollars
June 30
2024
December 31
2023
Crude oil and natural gas
$723 676 
Materials and supplies
724 722 
Total inventories
$1,447 1,398 
Inventories valued on the LIFO basis
$409 401 

Note 3—Acquisitions and Dispositions
Marathon Oil Corporation Announced Acquisition
For discussion regarding our announced acquisition of Marathon Oil Corporation (Marathon Oil), see Note 20.

Surmont Acquisition
In October 2023, we completed our acquisition of the remaining 50 percent working interest in Surmont, an asset in our Canada segment, from TotalEnergies EP Canada Ltd. The final consideration for the all-cash transaction was $3.0 billion after customary adjustments (CAD $4.1 billion):

Fair value of considerationMillions of Dollars
Cash paid$2,635 
Contingent consideration320 
Final Consideration$2,955 

The contingent consideration arrangement requires additional consideration to be paid to TotalEnergies EP Canada Ltd. up to $0.4 billion CAD over a five-year term. The contingent payments represent $2 million for every dollar that WCS pricing exceeds $52 per barrel during the month, subject to certain production targets being achieved. The undiscounted amount we could pay under this arrangement is up to $0.3 billion USD. The fair value of the contingent consideration on the acquisition date was $320 million and estimated by applying the income approach. For the six-month period ended June 30, 2024, we have made payments of $67 million USD under this arrangement, reflected in the "Other" line within the Financing Activities section of our Consolidated Statement of Cash Flows. See Note 11.

The transaction was accounted for as a business combination under FASB ASC Topic 805 using the acquisition method, which requires assets acquired and liabilities assumed to be measured at their acquisition date fair values. By the end of the first quarter of 2024, we finalized the allocation of the purchase price to specific assets and liabilities. It was based on the fair value of final consideration and the conclusion of the fair value determination of long-lived assets and all other assets acquired and liabilities assumed.

ConocoPhillips      2024 Q2 10-Q
6

Notes to Consolidated Financial Statements
Oil and gas properties were valued using a discounted cash flow approach incorporating market participant and internally generated price assumptions, production profiles and operating and development cost assumptions. The fair values of other assets acquired and liabilities assumed, which included accounts receivable, accounts payable, and most other current assets and current liabilities, were determined to be equivalent to the carrying value due to their short-term nature. The total consideration of $3.0 billion was allocated to the identifiable assets and liabilities based on fair values as of the acquisition date of October 4, 2023.

Recognized amounts of identifiable assets acquired and liabilities assumedMillions of Dollars
Oil and gas properties$3,082 
Asset retirement obligations(112)
Other(15)
Total identifiable net assets$2,955 

With the completion of the transaction, we have acquired proved and unproved properties of approximately $2.9 billion and $0.2 billion, respectively.

Supplemental Pro Forma (unaudited)
The following table summarizes the unaudited supplemental pro forma financial information for the three- and six-month periods ended June 30, 2023, as if we had completed the acquisition on January 1, 2022.

Millions of Dollars
Three Months Ended
June 30, 2023
Six Months Ended
June 30, 2023
Supplemental Pro Forma (unaudited)As ReportedPro Forma SurmontPro Forma CombinedAs ReportedPro Forma SurmontPro Forma Combined
Total Revenues and Other Income$12,884 689 13,573 28,401 1,292 29,693 
Income (loss) before income taxes3,362 159 3,521 7,924 229 8,153 
Net Income (Loss)2,232 121 2,353 5,152 174 5,326 
Earnings per share ($ per share):
Basic net income (loss)$1.84 1.94 4.23 4.37 
Diluted net income (loss)1.84 1.94 4.22 4.36 
The unaudited supplemental pro forma financial information is presented for illustration purposes only and is not necessarily indicative of the operating results that would have occurred had the transaction been completed on January 1, 2022, nor is it necessarily indicative of future operating results of the combined entity. The unaudited pro forma financial information for the three- and six-month periods ended June 30, 2023, is a result of combining the consolidated income statement of ConocoPhillips with the results of the assets acquired from TotalEnergies EP Canada Ltd. The pro forma results do not include transaction-related costs, nor any cost savings anticipated as a result of the transaction. The pro forma results include adjustments which relate primarily to DD&A, which is based on the unit-of-production method, resulting from the purchase price allocated to oil and gas properties. We believe the estimates and assumptions are reasonable, and the relative effects of the transaction are properly reflected.

Note 4—Investments and Long-Term Receivables
Australia Pacific LNG Pty Ltd. (APLNG)
In Australia, we hold a 47.5 percent shareholding interest in APLNG. At June 30, 2024, the outstanding balance of APLNG's debt was $4.3 billion under various previously entered facilities. The last principal and interest payment on these facilities is due in September 2030. See Note 7.
At June 30, 2024, the carrying value of our equity method investment in APLNG was approximately $5.1 billion.
7
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Port Arthur LNG (PALNG)
In March 2023, we acquired a 30 percent direct equity investment in PALNG, a joint venture for the development of a large-scale LNG facility. At June 30, 2024, the carrying value of our equity method investment in PALNG was approximately $1.5 billion.
Qatar LNG Projects
Our equity method investments in Qatar include the following:
QatarEnergy LNG N(3) (N3)—30 percent owned joint venture with an affiliate of QatarEnergy (68.5 percent) and Mitsui & Co., Ltd. (1.5 percent)—produces and liquefies natural gas from Qatar’s North Field, as well as exports LNG.
QatarEnergy LNG NFE(4) (NFE4)—25 percent owned joint venture with affiliates of QatarEnergy (70 percent) and China National Petroleum Corporation (5 percent)—participant in the North Field East LNG project.
QatarEnergy LNG NFS(3) (NFS3)—25 percent owned joint venture with an affiliate of QatarEnergy (75 percent)—participant in the North Field South LNG project.

At June 30, 2024, the carrying value of our equity method investments in Qatar was approximately $1.2 billion.

During the second quarter of 2024, we were notified that an affiliate of QatarEnergy transferred a 5 percent joint venture interest in NFE4 to an affiliate of China National Petroleum Corporation. As a result, we have concluded NFE4 is a VIE and we are not the primary beneficiary of the VIE because we do not have the power to direct the activities that most significantly impact economic performance of NFE4.

Note 5—Debt
Our debt balance at June 30, 2024 was $18.4 billion, compared with $18.9 billion at December 31, 2023.

In the first quarter of 2024, the company retired $461 million principal amount of our 2.125% Notes at maturity.

Our revolving credit facility provides a total borrowing capacity of $5.5 billion with an expiration date of February 2027. Our revolving credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million, or as support for our commercial paper program. The revolving credit facility is broadly syndicated among financial institutions and does not contain any material adverse change provisions or any covenants requiring maintenance of specified financial ratios or credit ratings. The facility agreement contains a cross-default provision relating to the failure to pay principal or interest on other debt obligations of $200 million or more by ConocoPhillips, or any of its consolidated subsidiaries. The amount of the facility is not subject to redetermination prior to its expiration date.
Credit facility borrowings may bear interest at a margin above the Secured Overnight Financing Rate (SOFR). The facility agreement calls for commitment fees on available, but unused, amounts. The facility agreement also contains early termination rights if our current directors or their approved successors cease to be a majority of the Board of Directors.
The revolving credit facility supports our ability to issue up to $5.5 billion of commercial paper. Commercial paper is generally limited to maturities of 90 days and is included in short-term debt on our consolidated balance sheet. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at June 30, 2024, and at December 31, 2023.

We do not have any ratings triggers on any of our corporate debt that would cause an automatic default, and thereby impact our access to liquidity upon downgrade of our credit ratings. If our credit ratings are downgraded from their current levels, it could increase the cost of corporate debt available to us and restrict our access to the commercial paper markets. If our credit ratings were to deteriorate to a level prohibiting us from accessing the commercial paper market, we would still be able to access funds under our revolving credit facility.
At June 30, 2024, we had $283 million of certain variable rate demand bonds (VRDBs) outstanding with maturities ranging through 2035. The VRDBs are redeemable at the option of the bondholders on any business day. If they are ever redeemed, we have the ability and intent to refinance on a long-term basis; therefore, the VRDBs are included in the “Long-term debt” line on our consolidated balance sheet.
ConocoPhillips      2024 Q2 10-Q
8

Notes to Consolidated Financial Statements
Note 6—Changes in Equity
Millions of Dollars
Common Stock
Par
Value
Capital in
Excess of
Par
Treasury
Stock
Accum. Other
Comprehensive
Income (Loss)
Retained
Earnings
Total
For the three months ended June 30, 2024
Balances at March 31, 2024$21 61,300 (66,974)(5,917)60,895 49,325 
Net income (loss)2,329 2,329 
Other comprehensive income (loss)(44)(44)
Dividends declared
Ordinary ($0.58 per common share)
(680)(680)
Variable return of cash ($0.20 per common share)
(235)(235)
Repurchase of company common stock(1,021)(1,021)
Excise tax on share repurchases(10)(10)
Distributed under benefit plans81 81 
Balances at June 30, 2024$21 61,381 (68,005)(5,961)62,309 49,745 
For the six months ended June 30, 2024
Balances at December 31, 2023
$21 61,303 (65,640)(5,673)59,268 49,279 
Net income (loss)
4,880 4,880 
Other comprehensive income (loss)
(288)(288)
Dividends declared
Ordinary ($1.16 per common share)
(1,368)(1,368)
Variable return of cash ($0.40 per common share)
(471)(471)
Repurchase of company common stock
(2,346)(2,346)
Excise tax on share repurchases(19)(19)
Distributed under benefit plans
78 78 
Balances at June 30, 2024
$21 61,381 (68,005)(5,961)62,309 49,745 
Millions of Dollars
Common Stock
Par
Value
Capital in
Excess of
Par
Treasury
Stock
Accum. Other
Comprehensive
Income (Loss)
Retained
Earnings
Total
For the three months ended June 30, 2023
Balances at March 31, 2023$21 61,100 (61,904)(6,027)54,593 47,783 
Net income (loss)2,232 2,232 
Other comprehensive income (loss)102 102 
Dividends declared
Ordinary ($0.51 per common share)
(620)(620)
Variable return of cash ($0.60 per common share)
(723)(723)
Repurchase of company common stock(1,300)(1,300)
Excise tax on share repurchases(13)(13)
Distributed under benefit plans
69 69 
Other1 1 
Balances at June 30, 2023
$21 61,169 (63,217)(5,925)55,483 47,531 
For the six months ended June 30, 2023
Balances at December 31, 2022
$21 61,142 (60,189)(6,000)53,029 48,003 
Net income (loss)
5,152 5,152 
Other comprehensive income (loss)
75 75 
Dividends declared
Ordinary ($1.02 per common share)
(1,245)(1,245)
Variable return of cash ($1.20 per common share)
(1,454)(1,454)
Repurchase of company common stock
(3,000)(3,000)
Excise tax on share repurchases(28)(28)
Distributed under benefit plans
27 27 
Other
1 1 
Balances at June 30, 2023
$21 61,169 (63,217)(5,925)55,483 47,531 
9
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Note 7—Guarantees
At June 30, 2024, we were liable for certain contingent obligations under various contractual arrangements as described below. We recognize a liability, at inception, for the fair value of our obligation as a guarantor for newly issued or modified guarantees. Unless the carrying amount of the liability is noted below, we have not recognized a liability because the fair value of the obligation is immaterial. In addition, unless otherwise stated, we are not currently performing with any significance under the guarantee and expect future performance to be either immaterial or have only a remote chance of occurrence.
APLNG Guarantees
At June 30, 2024, we had multiple guarantees outstanding in connection with our 47.5 percent ownership interest in APLNG. The following is a description of the guarantees with values calculated utilizing June 2024 exchange rates:
During the third quarter of 2016, we issued a guarantee to facilitate the withdrawal of our pro-rata portion of the funds in a project finance reserve account. We estimate the remaining term of this guarantee to be seven years. Our maximum exposure under this guarantee is approximately $210 million and may become payable if an enforcement action is commenced by the project finance lenders against APLNG. At June 30, 2024, the carrying value of this guarantee was approximately $14 million.

In conjunction with our original purchase of an ownership interest in APLNG from Origin Energy Limited in October 2008, we agreed to reimburse Origin Energy Limited for our share of the existing contingent liability arising under guarantees of an existing obligation of APLNG to deliver natural gas under several sales agreements. The final guarantee expires in the fourth quarter of 2041. Our maximum potential liability for future payments, or cost of volume delivery, under these guarantees is estimated to be $680 million ($1.1 billion in the event of intentional or reckless breach) and would become payable if APLNG fails to meet its obligations under these agreements and the obligations cannot otherwise be mitigated. Future payments are considered unlikely, as the payments, or cost of volume delivery, would only be triggered if APLNG does not have enough natural gas to meet these sales commitments and if the co-venturers do not make necessary equity contributions into APLNG.
We have guaranteed the performance of APLNG with regard to certain other contracts executed in connection with the project’s continued development. The guarantees have remaining terms of 13 to 21 years or the life of the venture. Our maximum potential amount of future payments related to these guarantees is approximately $490 million and would become payable if APLNG does not perform. At June 30, 2024, the carrying value of these guarantees was approximately $34 million.

QatarEnergy LNG Guarantees
We have guaranteed our portion of certain fiscal and other joint venture obligations as a shareholder in NFE4 and NFS3. These guarantees have an approximate 30-year term with no maximum limit. At June 30, 2024, the carrying value of these guarantees was approximately $14 million.

Other Guarantees
We have other guarantees with maximum future potential payment amounts totaling approximately $620 million, which consist primarily of guarantees of the residual value of leased office buildings and guarantees of the residual value of corporate aircraft. These guarantees have remaining terms of one to five years and would become payable if certain asset values are lower than guaranteed amounts at the end of the lease or contract term, business conditions decline at guaranteed entities, or as a result of nonperformance of contractual terms by guaranteed parties. At June 30, 2024, there was no carrying value associated with these guarantees.
Indemnifications
Over the years, we have entered into agreements to sell ownership interests in certain legal entities, joint ventures and assets that gave rise to qualifying indemnifications. These agreements include indemnifications for taxes and environmental liabilities. The carrying amount recorded for these indemnification obligations at June 30, 2024, was approximately $20 million. Those related to environmental issues have terms that are generally indefinite, and the maximum amounts of future payments are generally unlimited. Although it is reasonably possible future payments may exceed amounts recorded, due to the nature of the indemnifications, it is not possible to make a reasonable estimate of the maximum potential amount of future payments. See Note 8 for additional information about environmental liabilities.
ConocoPhillips      2024 Q2 10-Q
10

Notes to Consolidated Financial Statements
Note 8—Contingencies, Commitments and Accrued Environmental Costs
A number of lawsuits involving a variety of claims arising in the ordinary course of business have been filed against ConocoPhillips. We also may be required to remove or mitigate the effects on the environment of the placement, storage, disposal or release of certain chemical, mineral and petroleum substances at various active and inactive sites. We regularly assess the need for accounting recognition or disclosure of these contingencies. In the case of all known contingencies (other than those related to income taxes), we accrue a liability when the loss is probable and the amount is reasonably estimable. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the low end of the range is accrued. We do not reduce these liabilities for potential insurance or third-party recoveries. We accrue receivables for insurance or other third-party recoveries when applicable. With respect to income tax-related contingencies, we use a cumulative probability-weighted loss accrual in cases where sustaining a tax position is less than certain.
Based on currently available information, we believe it is remote that future costs related to known contingent liability exposures will exceed current accruals by an amount that would have a material adverse impact on our consolidated financial statements. As we learn new facts concerning contingencies, we reassess our position both with respect to accrued liabilities and other potential exposures. Estimates particularly sensitive to future changes include contingent liabilities recorded for environmental remediation, tax and legal matters. Estimated future environmental remediation costs are subject to change due to such factors as the uncertain magnitude of cleanup costs, the unknown time and extent of such remedial actions that may be required, and the determination of our liability in proportion to that of other responsible parties. Estimated future costs related to tax and legal matters are subject to change as events evolve and as additional information becomes available during the administrative and litigation processes.
Environmental
We are subject to international, federal, state and local environmental laws and regulations and record accruals for environmental liabilities based on management’s best estimates. These estimates are based on currently available facts, existing technology, and presently enacted laws and regulations, taking into account stakeholder and business considerations. When measuring environmental liabilities, we also consider our prior experience in remediation of contaminated sites, other companies’ cleanup experience, and data released by the U.S. EPA or other organizations. We consider unasserted claims in our determination of environmental liabilities, and we accrue them in the period they are both probable and reasonably estimable.
Although liability of those potentially responsible for environmental remediation costs is generally joint and several for federal sites and frequently so for other sites, we are usually only one of many companies cited at a particular site. Due to the joint and several liabilities, we could be responsible for all cleanup costs related to any site at which we have been designated as a potentially responsible party. We have been successful to date in sharing cleanup costs with other financially sound companies. Many of the sites at which we are potentially responsible are still under investigation by the EPA or the agency concerned. Prior to actual cleanup, those potentially responsible normally assess the site conditions, apportion responsibility and determine the appropriate remediation. In some instances, we may have no liability or may attain a settlement of liability. Where it appears that other potentially responsible parties may be financially unable to bear their proportional share, we consider this inability in estimating our potential liability, and we adjust our accruals accordingly. As a result of various acquisitions in the past, we assumed certain environmental obligations. Some of these environmental obligations are mitigated by indemnifications made by others for our benefit, and some of the indemnifications are subject to dollar limits and time limits.
We are currently participating in environmental assessments and cleanups at numerous CERCLA and other comparable state and international sites. After an assessment of environmental exposures for cleanup and other costs, we make accruals on an undiscounted basis (except those acquired in a purchase business combination, which we record on a discounted basis) for planned investigation and remediation activities for sites where it is probable future costs will be incurred and these costs can be reasonably estimated. We have not reduced these accruals for possible insurance recoveries.
For remediation activities in the U.S. and Canada, our consolidated balance sheet included a total environmental accrual of $184 million at both June 30, 2024 and December 31, 2023. We expect to incur a substantial amount of these expenditures within the next 30 years. In the future, we may be involved in additional environmental assessments, cleanups and proceedings.
11
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Litigation and Other Contingencies
We are subject to various lawsuits and claims including, but not limited to, matters involving oil and gas royalty and severance tax payments, gas measurement and valuation methods, contract disputes, environmental damages, climate change, personal injury and property damage. Our primary exposures for such matters relate to alleged royalty and tax underpayments on certain federal, state and privately owned properties, claims of alleged environmental contamination and damages from historic operations and climate change. We will continue to defend ourselves vigorously in these matters.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required.
We have contingent liabilities resulting from throughput agreements with pipeline and processing companies not associated with financing arrangements. Under these agreements, we may be required to provide any such company with additional funds through advances and penalties for fees related to throughput capacity not utilized. In addition, at June 30, 2024, we had performance obligations secured by letters of credit of $262 million (issued as direct bank letters of credit) related to various purchase commitments for materials, supplies, commercial activities and services incident to the ordinary conduct of business.
In 2007, ConocoPhillips was unable to reach agreement with respect to the empresa mixta structure mandated by the Venezuelan government’s Nationalization Decree. As a result, Venezuela’s national oil company, Petróleos de Venezuela, S.A. (PDVSA), or its affiliates, directly assumed control over ConocoPhillips’ interests in the Petrozuata and Hamaca heavy oil ventures and the offshore Corocoro development project. In response to this expropriation, ConocoPhillips initiated international arbitration on November 2, 2007, with the ICSID. On September 3, 2013, an ICSID arbitration tribunal ("Tribunal") held that Venezuela unlawfully expropriated ConocoPhillips’ significant oil investments in June 2007. On January 17, 2017, the Tribunal reconfirmed the decision that the expropriation was unlawful. In March 2019, the Tribunal unanimously ordered the government of Venezuela to pay ConocoPhillips approximately $8.7 billion in compensation for the government’s unlawful expropriation of the company’s investments in Venezuela in 2007. On August 29, 2019, the Tribunal issued a decision rectifying the award and reducing it by approximately $227 million. The award now stands at $8.5 billion plus interest. The government of Venezuela sought annulment of the award, which automatically stayed enforcement of the award. On September 29, 2021, the ICSID annulment committee lifted the stay of enforcement of the award. The annulment proceedings are underway.
In 2014, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Petrozuata and Hamaca projects. The ICC Tribunal issued an award in April 2018, finding that PDVSA owed ConocoPhillips approximately $2 billion under their agreements in connection with the expropriation of the projects and other pre-expropriation fiscal measures. In August 2018, ConocoPhillips entered into a settlement with PDVSA to recover the full amount of this ICC award, plus interest through the payment period, including initial payments totaling approximately $500 million within a period of 90 days from the time of signing the settlement agreement. The balance of the settlement was to be paid quarterly over a period of four and a half years. Per the settlement, PDVSA recognized the ICC award as a judgment in various jurisdictions, and ConocoPhillips agreed to suspend its legal enforcement actions. ConocoPhillips sent notices of default to PDVSA on October 14 and November 12, 2019, and to date PDVSA has failed to cure its breach. As a result, ConocoPhillips has resumed legal enforcement actions. To date, ConocoPhillips has received approximately $784 million in connection with the ICC award. ConocoPhillips has ensured that the settlement and any actions taken in enforcement thereof meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela.
In 2016, ConocoPhillips filed a separate and independent arbitration under the rules of the ICC against PDVSA under the contracts that had established the Corocoro Project. On August 2, 2019, the ICC Tribunal awarded ConocoPhillips approximately $33 million plus interest under the Corocoro contracts. ConocoPhillips is seeking recognition and enforcement of the award in various jurisdictions. ConocoPhillips has ensured that all the actions related to the award meet all appropriate U.S. regulatory requirements, including those related to any applicable sanctions imposed by the U.S. against Venezuela.

ConocoPhillips      2024 Q2 10-Q
12

Notes to Consolidated Financial Statements
Beginning in 2017, governmental and other entities in several states/territories in the U.S. have filed lawsuits against oil and gas companies, including ConocoPhillips, seeking compensatory damages and equitable relief to abate alleged climate change impacts. Additional lawsuits with similar allegations are expected to be filed. The legal and factual issues are unprecedented, therefore, there is significant uncertainty about the scope of the claims and alleged damages and any potential impact on the Company’s financial condition. ConocoPhillips believes these lawsuits are factually and legally meritless and are an inappropriate vehicle to address the challenges associated with climate change and will vigorously defend against such lawsuits.

Several Louisiana parishes and the State of Louisiana have filed numerous lawsuits under Louisiana’s State and Local Coastal Resources Management Act (SLCRMA) against oil and gas companies, including ConocoPhillips, seeking compensatory damages for contamination and erosion of the Louisiana coastline allegedly caused by historical oil and gas operations. ConocoPhillips entities are defendants in 22 of the lawsuits and will vigorously defend against them. On October 17, 2022, the Fifth Circuit affirmed remand of the lead case to state court and the subsequent request for rehearing was denied. On February 27, 2023, the Supreme Court denied a certiorari petition from the defendants regarding the Fifth Circuit ruling. Accordingly, the federal district courts have issued remands to state court. Because Plaintiffs’ SLCRMA theories are unprecedented, there is uncertainty about these claims (both as to scope and damages) and we continue to evaluate our exposure in these lawsuits.
In October 2020, the Bureau of Safety and Environmental Enforcement (BSEE) ordered the prior owners of Outer Continental Shelf (OCS) Lease P-0166, including ConocoPhillips, to decommission the lease facilities, including two offshore platforms located near Carpinteria, California. This order was sent after the current owner of OCS Lease P-0166 relinquished the lease and abandoned the lease platforms and facilities. BSEE’s order to ConocoPhillips is premised on its connection to Phillips Petroleum Company, a legacy company of ConocoPhillips, which held a historical 25 percent interest in this lease and operated these facilities but sold its interest approximately 30 years ago. ConocoPhillips continues to evaluate its exposure in this matter.

In July 2021, a federal securities class action was filed against Concho, certain of Concho’s officers, and ConocoPhillips as Concho’s successor in the United States District Court for the Southern District of Texas. On October 21, 2021, the court issued an order appointing Utah Retirement Systems and the Construction Laborers Pension Trust for Southern California as lead plaintiffs (Lead Plaintiffs). On January 7, 2022, the Lead Plaintiffs filed their consolidated complaint alleging that Concho made materially false and misleading statements regarding its business and operations in violation of the federal securities laws and seeking unspecified damages, attorneys’ fees, costs, equitable/injunctive relief, and such other relief that may be deemed appropriate. The defendants filed a motion to dismiss the consolidated complaint on March 8, 2022. On June 23, 2023, the court denied defendants’ motion as to most defendants including Concho/ConocoPhillips. We believe the allegations in the action are without merit and are vigorously defending this litigation.

ConocoPhillips is involved in pending disputes with commercial counterparties relating to the propriety of its force majeure notices following Winter Storm Uri in 2021. We believe these claims are without merit and are vigorously defending them.

Note 9—Suspended Wells and Exploration Expenses
The capitalized cost of suspended wells at June 30, 2024 was $164 million, a decrease of $20 million from December 31, 2023. In the first quarter of 2024, after further evaluation, we recognized dry hole expenses of $18 million for the suspended Busta discovery well on license PL782S in the North Sea.

Exploration Expenses
In the second quarter of 2024, we recognized $22 million as dry hole expense primarily for two partner operated exploration wells in the Alvheim area of the Norwegian sector of the North Sea.
13
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Note 10—Derivative and Financial Instruments
We use futures, forwards, swaps and options in various markets to meet our customers' needs, capture market opportunities and manage foreign exchange currency risk.
Commodity Derivative Instruments
Our commodity business primarily consists of natural gas, crude oil, bitumen, NGLs, LNG and power.
Commodity derivative instruments are held at fair value on our consolidated balance sheet. Where these balances have the right of setoff, they are presented on a net basis. Related cash flows are recorded as operating activities on our consolidated statement of cash flows. On our consolidated income statement, gains and losses are recognized either on a gross basis if directly related to our physical business or a net basis if held for trading. Gains and losses related to contracts that meet and are designated with the NPNS exception are recognized upon settlement. We generally apply this exception to eligible crude contracts and certain gas contracts. We do not apply hedge accounting for our commodity derivatives.
The following table presents the gross fair values of our commodity derivatives, excluding collateral, on our consolidated balance sheet:
Millions of Dollars
June 30
2024
December 31
2023
Assets
Prepaid expenses and other current assets
$512 611 
Other assets
123 113 
Liabilities
Other accruals
483 567 
Other liabilities and deferred credits
104 80 
The gains (losses) from commodity derivatives included in our consolidated income statement are presented in the following table:
Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Sales and other operating revenues
$32 (16)86 12 
Other income
 (2) (1)
Purchased commodities
(29)16 (79)(56)
The table below summarizes our net exposures resulting from outstanding commodity derivative contracts:
Open Position
Long (Short)
June 30
2024
December 31
2023
Commodity
Natural gas and power (billions of cubic feet equivalent)
Fixed price(18)(12)
Basis9 (2)
ConocoPhillips      2024 Q2 10-Q
14

Notes to Consolidated Financial Statements
Interest Rate Derivative Instruments
For the three- and six-month periods ended June 30, 2024, we recognized an unrealized gain of $33 million and $13 million, respectively in other comprehensive income (loss) related to our share of PALNG's interest rate swaps designated as a cash flow hedge. For the three- and six-month periods ended June 30, 2023, the impact of these instruments on our financial statements was negligible.

Financial Instruments
We invest in financial instruments with maturities based on our cash forecasts for the various accounts and currency pools we manage. The types of financial instruments in which we currently invest include:
Time deposits: Interest bearing deposits placed with financial institutions for a predetermined amount of time.
Demand deposits: Interest bearing deposits placed with financial institutions. Deposited funds can be withdrawn without notice.
Commercial paper: Unsecured promissory notes issued by a corporation, commercial bank or government agency purchased at a discount, reaching par value at maturity.
U.S. government or government agency obligations: Securities issued by the U.S. government or U.S. government agencies.
Foreign government obligations: Securities issued by foreign governments.
Corporate bonds: Unsecured debt securities issued by corporations.
Asset-backed securities: Collateralized debt securities.
The following investments are carried on our consolidated balance sheet at cost, plus accrued interest, and the table reflects remaining maturities at June 30, 2024, and December 31, 2023:
Millions of Dollars
Carrying Amount
Cash and Cash Equivalents
Short-Term Investments
June 30
2024
December 31
2023
June 30
2024
December 31
2023
Cash$662 474 
Demand Deposits
1,157 1,424 
Time Deposits
1 to 90 days
1,539 3,713 1,270 511 
91 to 180 days
20 22 
Within one year
6 3 
U.S. Government Obligations
1 to 90 days
918 24   
$4,276 5,635 1,296 536 
15
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
The following investments in debt securities classified as available for sale are carried at fair value on our consolidated balance sheet at June 30, 2024, and December 31, 2023:
Millions of Dollars
Carrying Amount
Cash and Cash EquivalentsShort-Term InvestmentsInvestments and Long-Term
Receivables
June 30
2024
December 31
2023
June 30
2024
December 31
2023
June 30
2024
December 31
2023
Major Security Type
Corporate Bonds
$1  247 201 650 606 
Commercial Paper
17  112 131 
U.S. Government Obligations  43 89 172 189 
U.S. Government Agency Obligations
 5 7 7 
Foreign Government Obligations
7 7 4 4 
Asset-Backed Securities
18 2 201 183 
$18  427 435 1,034 989 
Cash and Cash Equivalents and Short-Term Investments have remaining maturities within one year. Investments and Long-Term Receivables have remaining maturities greater than one year through five years.
The following table summarizes the amortized cost basis and fair value of investments in debt securities classified as available for sale:
Millions of Dollars
Amortized Cost Basis
Fair Value
June 30
2024
December 31
2023
June 30
2024
December 31
2023
Major Security Type
Corporate Bonds
$900 806 898 807 
Commercial Paper
129 131 129 131 
U.S. Government Obligations
217 278 215 278 
U.S. Government Agency Obligations
7 12 7 12 
Foreign Government Obligations
11 11 11 11 
Asset-Backed Securities
219 184 219 185 
$1,483 1,422 1,479 1,424 
As of June 30, 2024 total unrealized losses for debt securities classified as available for sale with net losses were $5 million. As of December 31, 2023, total unrealized gains for debt securities classified as available for sale with net gains were $5 million. No allowance for credit losses has been recorded on investments in debt securities which are in an unrealized loss position.
For the three- and six-month periods ended June 30, 2024, proceeds from sales and redemptions of investments in debt securities classified as available for sale were $231 million and $455 million, respectively. For the three- and six-month periods ended June 30, 2023, proceeds from sales and redemptions of investments in debt securities classified as available for sale were $251 million and $551 million, respectively. Gross realized gains and losses included in earnings from those sales and redemptions were negligible. The cost of securities sold and redeemed is determined using the specific identification method.
ConocoPhillips      2024 Q2 10-Q
16

Notes to Consolidated Financial Statements
Credit Risk
Financial instruments potentially exposed to concentrations of credit risk consist primarily of cash equivalents, short-term investments, long-term investments in debt securities, OTC derivative contracts and trade receivables. Our cash equivalents and short-term investments are placed in high-quality commercial paper, government money market funds, U.S. government and government agency obligations, time deposits with major international banks and financial institutions, high-quality corporate bonds, foreign government obligations and asset-backed securities. Our long-term investments in debt securities are placed in high-quality corporate bonds, asset-backed securities, U.S. government and government agency obligations, and foreign government obligations.
The credit risk from our OTC derivative contracts, such as forwards, swaps and options, derives from the counterparty to the transaction. Individual counterparty exposure is managed within predetermined credit limits and includes the use of cash-call margins when appropriate, thereby reducing the risk of significant nonperformance. We also use futures, swaps and option contracts that have a negligible credit risk because these trades are cleared primarily with an exchange clearinghouse and subject to mandatory margin requirements until settled; however, we are exposed to the credit risk of those exchange brokers for receivables arising from daily margin cash calls, as well as for cash deposited to meet initial margin requirements.
Our trade receivables result primarily from our petroleum operations and reflect a broad national and international customer base, which limits our exposure to concentrations of credit risk. The majority of these receivables have payment terms of 30 days or less, and we continually monitor this exposure and the creditworthiness of the counterparties. We may require collateral to limit the exposure to loss including letters of credit, prepayments and surety bonds, as well as master netting arrangements to mitigate credit risk with counterparties that both buy from and sell to us, as these agreements permit the amounts owed by us or owed to others to be offset against amounts due to us.
Certain of our derivative instruments contain provisions that require us to post collateral if the derivative exposure exceeds a threshold amount. We have contracts with fixed threshold amounts and other contracts with variable threshold amounts that are contingent on our credit rating. The variable threshold amounts typically decline for lower credit ratings, while both the variable and fixed threshold amounts typically revert to zero if we fall below investment grade. Cash is the primary collateral in all contracts; however, many also permit us to post letters of credit as collateral, such as transactions administered through the New York Mercantile Exchange.
The aggregate fair value of all derivative instruments with such credit risk-related contingent features that were in a liability position at June 30, 2024, and December 31, 2023, was $134 million and $181 million, respectively. For these instruments, collateral posted at June 30, 2024 was $8 million and no collateral was posted at December 31, 2023. If our credit rating had been downgraded below investment grade at June 30, 2024, we would have been required to post $92 million of additional collateral, either with cash or letters of credit.
17
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Note 11—Fair Value Measurement
We carry a portion of our assets and liabilities at fair value that are measured at the reporting date using an exit price (i.e., the price that would be received to sell an asset or paid to transfer a liability) and disclosed according to the quality of valuation inputs under the fair value hierarchy.
The classification of an asset or liability is based on the lowest level of input significant to its fair value. Those that are initially classified as Level 3 are subsequently reported as Level 2 when the fair value derived from unobservable inputs is inconsequential to the overall fair value, or if corroborated market data becomes available. Assets and liabilities initially reported as Level 2 are subsequently reported as Level 3 if corroborated market data is no longer available. There were no material transfers into or out of Level 3 during the six-month period ended June 30, 2024, nor during the year ended December 31, 2023.
Recurring Fair Value Measurement
Financial assets and liabilities reported at fair value on a recurring basis include our investments in debt securities classified as available for sale, commodity derivatives and our contingent consideration arrangement related to the Surmont acquisition. See Note 3.
Level 1 derivative assets and liabilities primarily represent exchange-traded futures and options that are valued using unadjusted prices available from the underlying exchange. Level 1 financial assets also include our investments in U.S. government obligations classified as available for sale debt securities, which are valued using exchange prices.
Level 2 derivative assets and liabilities primarily represent OTC swaps, options and forward purchase and sale contracts that are valued using adjusted exchange prices, prices provided by brokers or pricing service companies that are all corroborated by market data. Level 2 financial assets also include our investments in debt securities classified as available for sale, including investments in corporate bonds, commercial paper, asset-backed securities, U.S. government agency obligations and foreign government obligations that are valued using pricing provided by brokers or pricing service companies that are corroborated with market data.
Level 3 derivative assets and liabilities consist of OTC swaps, options and forward purchase and sale contracts where a significant portion of fair value is calculated from underlying market data that is not readily available. The derived value uses industry standard methodologies that may consider the historical relationships among various commodities, modeled market prices, time value, volatility factors and other relevant economic measures. The use of these inputs results in management’s best estimate of fair value. Level 3 commodity derivative activity was not material for all periods presented.
Level 3 liabilities include the fair value of future quarterly contingent payments to TotalEnergies EP Canada Ltd. in connection with the acquisition of the remaining 50 percent working interest in Surmont completed in 2023. Contingent consideration consists of total payments up to approximately $0.4 billion CAD over a five-year term ending in the fourth quarter of 2028. The contingent payments represent $2 million for every dollar that the monthly WCS average pricing exceeds $52 per barrel. The terms include adjustments related to not achieving certain production targets. During the six-month period ended June 30, 2024, we made payments of approximately $67 million USD to TotalEnergies EP Canada Ltd. under this arrangement. These payments are recognized in the "Other" line within the Financing Activities section of our Consolidated Statement of Cash Flows. The fair value of the remaining contingent consideration as of June 30, 2024 is calculated using the income approach and is largely based on the estimated commodity price outlook using a combination of external pricing service companies' and our internal price outlook (unobservable input) and a discount rate consistent with those used by principal market participants (observable input). The impact of other unobservable inputs on the fair value as of June 30, 2024 was not significant.
ConocoPhillips      2024 Q2 10-Q
18

Notes to Consolidated Financial Statements
The following table summarizes the fair value hierarchy for gross financial assets and liabilities (i.e., unadjusted where the right of setoff exists for commodity derivatives accounted for at fair value on a recurring basis):
Millions of Dollars
June 30, 2024December 31, 2023
Level 1
Level 2
Level 3
Total
Level 1
Level 2
Level 3
Total
Assets
Investments in debt securities
$215 1,264  1,479 278 1,146  1,424 
Commodity derivatives
298 287 50 635 308 301 115 724 
Total assets
$513 1,551 50 2,114 586 1,447 115 2,148 
Liabilities
Commodity derivatives$333 240 14 587 350 283 14 647 
Contingent consideration  249 249   312 312 
Total liabilities
$333 240 263 836 350 283 326 959 
The range and arithmetic average of the significant unobservable input used in the Level 3 fair value measurement was as follows:
Fair Value
(Millions of
Dollars)
Valuation
Technique
Unobservable
Input
Range
(Arithmetic Average)
Contingent consideration - Surmont as of:
June 30, 2024
$249 Discounted cash flowCommodity price outlook* ($/BOE)
$59.99 - $67.34 ($62.38)
December 31, 2023
312 
$45.48 - $63.04 ($57.45)
*Commodity price outlook based on a combination of external pricing service companies' outlooks and our internal outlook.

The following table summarizes those commodity derivative balances subject to the right of setoff as presented on our consolidated balance sheet. We have elected to offset the recognized fair value amounts for multiple derivative instruments executed with the same counterparty in our financial statements when a legal right of setoff exists.
Millions of Dollars
Amounts Subject to Right of Setoff
Gross
Amounts
Recognized
Amounts Not
Subject to
Right of Setoff
Gross
Amounts
Gross
Amounts
Offset
Net
Amounts
Presented
Cash
Collateral
Net
Amounts
June 30, 2024
Assets$635 16 619 368 251 1 250 
Liabilities587 16 571 368 203 41 162 
December 31, 2023
Assets$724 39 685 375 310 4 306 
Liabilities647 34 613 375 238 47 191 
At June 30, 2024 and December 31, 2023, we did not present any amounts gross on our consolidated balance sheet where we had the right of setoff.

19
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Reported Fair Values of Financial Instruments
We used the following methods and assumptions to estimate the fair value of financial instruments:
Cash and cash equivalents and short-term investments: The carrying amount reported on the balance sheet approximates fair value. For those investments classified as available for sale debt securities, the carrying amount reported on the balance sheet is fair value.
Accounts and notes receivable (including long-term and related parties): The carrying amount reported on the balance sheet approximates fair value.
Investments in debt securities classified as available for sale: The fair value of investments in debt securities categorized as Level 1 in the fair value hierarchy is measured using exchange prices. The fair value of investments in debt securities categorized as Level 2 in the fair value hierarchy is measured using pricing provided by brokers or pricing service companies that are corroborated with market data. See Note 10.
Accounts payable (including related parties) and floating-rate debt: The carrying amount of accounts payable and floating-rate debt reported on the balance sheet approximates fair value.
Fixed-rate debt: The estimated fair value of fixed-rate debt is measured using prices available from a pricing service that is corroborated by market data; therefore, these liabilities are categorized as Level 2 in the fair value hierarchy.
Commercial paper: The carrying amount of our commercial paper instruments approximates fair value and is reported on the balance sheet as short-term debt.
The following table summarizes the net fair value of financial instruments (i.e., adjusted where the right of setoff exists for commodity derivatives):
Millions of Dollars
Carrying Amount
Fair Value
June 30
2024
December 31
2023
June 30
2024
December 31
2023
Financial assets
Commodity derivatives
266 345 266 345 
Investments in debt securities
1,479 1,424 1,479 1,424 
Financial liabilities
Total debt, excluding finance leases
17,318 17,808 17,321 18,621 
Commodity derivatives
178 225 178 225 
ConocoPhillips      2024 Q2 10-Q
20

Notes to Consolidated Financial Statements
Note 12—Accumulated Other Comprehensive Income (Loss)
Accumulated other comprehensive income (loss) in the equity section of our consolidated balance sheet includes:

Millions of Dollars

Defined Benefit
Plans
Unrealized Holding Gain/(Loss) on
Securities
Foreign
Currency
Translation
 Unrealized Gain/(Loss) on Hedging Activities
Accumulated
Other
Comprehensive
Income/(Loss)
December 31, 2023$(393)2 (5,344)62 (5,673)
Other comprehensive income (loss)
9 (4)(303)10 (288)
June 30, 2024$(384)(2)(5,647)72 (5,961)
The following table summarizes reclassifications out of accumulated other comprehensive income (loss) and into net income (loss):

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30

2024202320242023
Defined benefit plans*
$4 6 9 17 
*The above amounts are included in the computation of net periodic benefit cost and are presented net of tax expense of $2 million and $3 million for the three-month periods ended June 30, 2024 and June 30, 2023, respectively, and $4 million and $6 million for the six-month periods ended
June 30, 2024 and June 30, 2023, respectively. See Note 14.

Note 13—Cash Flow Information

Millions of Dollars

Six Months Ended
June 30
20242023
Cash Payments
Interest
$404 358 
Income taxes
2,067 3,202 
Net Sales (Purchases) of Investments
Short-term investments purchased
$(1,502)(783)
Short-term investments sold
971 2,676 
Long-term investments purchased
(347)(414)
Long-term investments sold
84 70 

$(794)1,549 
21
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Note 14—Employee Benefit Plans
Pension and Postretirement Plans
Millions of Dollars
Pension Benefits
Other Benefits
2024202320242023
U.S.
Int'l.
U.S.
Int'l.
Components of Net Periodic Benefit Cost
Three Months Ended June 30
Service cost
$13 9 13 9 1  
Interest cost
19 28 20 29 2 2 
Expected return on plan assets
(17)(40)(14)(37)
Amortization of prior service credit
    (10)(10)
Recognized net actuarial loss (gain)
2 14 3 17  (1)
Settlements
    
Net periodic benefit cost
$17 11 22 18 (7)(9)
Six Months Ended June 30
Service cost$25 19 26 19 1  
Interest cost
38 57 39 57 3 3 
Expected return on plan assets
(33)(81)(29)(74)
Amortization of prior service credit
    (19)(19)
Recognized net actuarial loss (gain)
4 28 6 34  (2)
Settlements
  4  
Net periodic benefit cost$34 23 46 36 (15)(18)
The components of net periodic benefit cost, other than the service cost component, are included in the "Other expenses" line of our consolidated income statement.
During the first six months of 2024, we contributed $9 million to our domestic benefit plans and $46 million to our international benefit plans. We expect our total contributions in 2024 to be approximately $100 million to our domestic qualified and unqualified pension and postretirement benefit plans and $85 million to our international qualified and nonqualified pension and postretirement benefit plans.

Note 15—Related Party Transactions
Our related parties primarily include equity method investments and certain trusts for the benefit of employees.

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Significant Transactions with Equity Affiliates
Operating revenues and other income
$23 23 41 44 
Operating expenses and selling, general and administrative expenses
57 72 112 150 
ConocoPhillips      2024 Q2 10-Q
22

Notes to Consolidated Financial Statements
Note 16—Sales and Other Operating Revenues
Revenue from Contracts with Customers
The following table provides further disaggregation of our consolidated sales and other operating revenues:

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30

2024202320242023
Revenue from contracts with customers
$12,660 11,015 24,967 22,979 
Revenue from contracts outside the scope of ASC Topic 606
Physical contracts meeting the definition of a derivative
1,003 1,465 2,568 4,592 
Financial derivative contracts
(43)(129)(67)(409)
Consolidated sales and other operating revenues
$13,620 12,351 27,468 27,162 
Revenues from contracts outside the scope of ASC Topic 606 relate primarily to physical gas contracts at market prices, which qualify as derivatives accounted for under ASC Topic 815, “Derivatives and Hedging,” and for which we have not elected NPNS. There is no significant difference in contractual terms or the policy for recognition of revenue from these contracts and those within the scope of ASC Topic 606. The following disaggregation of revenues is provided in conjunction with Note 18—Segment Disclosures and Related Information:

Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Revenue from Contracts Outside the Scope of ASC Topic 606 by Segment
Lower 48
$743 1,081 2,002 3,589 
Canada91 204 308 771 
Europe, Middle East and North Africa
169 180 258 232 
Physical contracts meeting the definition of a derivative
$1,003 1,465 2,568 4,592 

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Revenue from Contracts Outside the Scope of ASC Topic 606 by Product
Crude oil
$53 96 53 143 
Natural gas
715 1,123 1,914 3,848 
Other
235 246 601 601 
Physical contracts meeting the definition of a derivative
$1,003 1,465 2,568 4,592 
Practical Expedients
Typically, our commodity sales contracts are less than 12 months in duration; however, in certain specific cases may extend longer, which may be out to the end of field life. We have long-term commodity sales contracts which use prevailing market prices at the time of delivery, and under these contracts, the market-based variable consideration for each performance obligation (i.e., delivery of commodity) is allocated to each wholly unsatisfied performance obligation within the contract. Accordingly, we have applied the practical expedient allowed in ASC Topic 606 and do not disclose the aggregate amount of the transaction price allocated to performance obligations or when we expect to recognize revenues that are unsatisfied (or partially unsatisfied) as of the end of the reporting period.
23
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Receivables and Contract Liabilities
Receivables from Contracts with Customers
At June 30, 2024, the “Accounts and notes receivable” line on our consolidated balance sheet included trade receivables of $4,323 million compared with $4,414 million at December 31, 2023, and included both contracts with customers within the scope of ASC Topic 606 and those that are outside the scope of ASC Topic 606. We typically receive payment within 30 days or less (depending on the terms of the invoice) once delivery is made. Revenues that are outside the scope of ASC Topic 606 relate primarily to physical gas sales contracts at market prices for which we do not elect NPNS and are therefore accounted for as a derivative under ASC Topic 815. There is little distinction in the nature of the customer or credit quality of trade receivables associated with gas sold under contracts for which NPNS has not been elected compared to trade receivables where NPNS has been elected.
Contract Liabilities from Contracts with Customers
We have entered into certain agreements under which we license our proprietary technology, including the Optimized Cascade® process technology, to customers to maximize the efficiency of LNG plants. These agreements typically provide for milestone payments to be made during and after the construction phases of the LNG plant. The payments are not directly related to our performance obligations under the contract and are recorded as deferred revenue to be recognized when the customer is able to benefit from their right to use the applicable licensed technology. Revenue recognized during the three- and six-month periods ended June 30, 2024 was immaterial. No revenue was recognized during the three- and six-month periods ended June 30, 2023. We expect to recognize the outstanding contract liabilities of $45 million as of June 30, 2024, as revenue during the years 2026, 2028 and 2029.


Note 17—Earnings Per Share
The following table presents the calculation of net income (loss) available to common shareholders and basic and diluted EPS. For the periods presented in the table below, diluted EPS calculated under the two-class method was more dilutive.

Millions of Dollars
(except per share amounts)
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Basic earnings per share
Net Income (Loss)$2,329 2,2324,8805,152
Less: Dividends and undistributed earnings
allocated to participating securities781517
Net Income (Loss) available to common shareholders$2,322 2,2244,8655,135
Weighted-average common shares outstanding (in millions)1,1681,2071,1731,214
Net Income (Loss) Per Share of Common Stock$1.99 1.844.154.23
Diluted earnings per share
Net Income (Loss) available to common shareholders$2,322 2,2244,8655,135
Weighted-average common shares outstanding (in millions)1,1681,2071,1731,214
Add: Dilutive impact of options and unvested
non-participating RSU/PSUs (in millions)2333
Weighted-average diluted shares outstanding (in millions)1,1701,2101,1761,217
Net Income (Loss) Per Share of Common Stock$1.98 1.844.144.22
ConocoPhillips      2024 Q2 10-Q
24

Notes to Consolidated Financial Statements
Note 18—Segment Disclosures and Related Information
We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. We manage our operations through six operating segments, which are primarily defined by geographic region: Alaska; Lower 48; Canada; Europe, Middle East and North Africa; Asia Pacific; and Other International.
Corporate and Other represents income and costs not directly associated with an operating segment, such as most interest income and expense; impacts from certain debt transactions; consolidating tax adjustments; corporate overhead and certain technology activities, including licensing revenues; and unrealized holding gains or losses on equity securities. All cash and cash equivalents and short-term investments are included in Corporate and Other.
We evaluate performance and allocate resources based on net income (loss). Intersegment sales are at prices that approximate market.
Analysis of Results by Operating Segment

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Sales and Other Operating Revenues
Alaska
$1,783 1,709 3,453 3,444 
Lower 48
9,053 8,389 18,362 18,438 
Intersegment eliminations
 (1)(1)(5)
Lower 48
9,053 8,388 18,361 18,433 
Canada
1,553 850 2,997 2,033 
Intersegment eliminations
(612)(401)(1,120)(741)
Canada
941 449 1,877 1,292 
Europe, Middle East and North Africa
1,296 1,369 2,753 3,071 
Asia Pacific
543 432 1,017 896 
Corporate and Other
4 4 7 26 
Consolidated sales and other operating revenues
$13,620 12,351 27,468 27,162 
Sales and Other Operating Revenues by Geographic Location(1)
U.S.
$10,776 10,040 21,756 21,842 
Canada
941 449 1,877 1,292 
China
275 244 488 446 
Libya470 447 970 817 
Malaysia
268 189 529 450 
Norway
514 577 1,138 1,228 
U.K.
374 404 707 1,085 
Other foreign countries
2 1 3 2 
Worldwide consolidated
$13,620 12,351 27,468 27,162 
Sales and Other Operating Revenues by Product
Crude oil
$10,112 8,965 19,674 17,867 
Natural gas
1,175 1,860 3,057 6,272 
Natural gas liquids
662 582 1,342 1,277 
Other(2)
1,671 944 3,395 1,746 
Consolidated sales and other operating revenues by product
$13,620 12,351 27,468 27,162 
(1)Sales and other operating revenues are attributable to countries based on the location of the selling operation.
(2)Includes bitumen and power.
25
ConocoPhillips      2024 Q2 10-Q

Notes to Consolidated Financial Statements
Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Net Income (Loss)
Alaska
$360 372 706 788 
Lower 48
1,259 1,230 2,640 3,082 
Canada261 32 441 38 
Europe, Middle East and North Africa
251 264 555 629 
Asia Pacific
444 387 956 909 
Other International
3 (4)2 (3)
Corporate and Other
(249)(49)(420)(291)
Consolidated net income (loss)
$2,329 2,232 4,880 5,152 
Millions of Dollars
June 30
2024
December 31
2023
Total Assets
Alaska
$17,124 16,174 
Lower 48
42,659 42,415 
Canada10,047 10,277 
Europe, Middle East and North Africa
7,968 8,396 
Asia Pacific
8,483 8,903 
Other International
5  
Corporate and Other
9,708 9,759 
Consolidated total assets
$95,994 95,924 
Note 19—Income Taxes
Our effective tax rate for the three-month periods ended June 30, 2024, and 2023, was 36.3 percent and 33.6 percent, respectively, and our effective tax rate for the six-month periods ended June 30, 2024, and 2023, was 34.6 percent and 35.0 percent, respectively. The change in the effective tax rate for the three-month period ended June 30, 2024, is primarily due to a shift in our mix of income among taxing jurisdictions. The change in the effective tax rate for the six-month period ended June 30, 2024, is primarily due to the recognition of a Malaysian tax benefit, described below, and a shift in our mix of income among our tax jurisdictions.

During the first quarter of 2024, we recorded a $76 million tax benefit associated with a deepwater investment tax incentive for Malaysia Blocks J and G.

The Company has ongoing income tax audits in a number of jurisdictions. The government agents in charge of these audits regularly request additional time to complete audits, which we generally grant, and conversely occasionally close audits unpredictably. Within the next twelve months, we may have audit periods close that could significantly impact our total unrecognized tax benefits. The amount of such change is not estimable but could be significant when compared with our total unrecognized tax benefits.
ConocoPhillips      2024 Q2 10-Q
26

Notes to Consolidated Financial Statements
Note 20—Announced Acquisition of Marathon Oil Corporation
On May 28, 2024, we entered into a definitive agreement (the Merger Agreement) with Marathon Oil to acquire all of its outstanding shares in an all-stock transaction, pursuant to which Marathon Oil stockholders will receive 0.255 shares of ConocoPhillips common stock for each Marathon Oil share. The transaction was unanimously approved by the boards of directors of both companies.

Marathon Oil is expected to hold a special meeting on August 29, 2024, for the purpose of obtaining stockholder approval for the merger proposal and other related proposals. We are working to complete the merger as soon as practicable and continue to anticipate obtaining all the requisite stockholder and regulatory approvals by late in the fourth quarter of 2024. See Item 1A. Risk Factors.


Note 21—New Accounting Standards
In November 2023, the FASB issued ASU No. 2023-07, “Improvements to Reportable Segment Disclosures” which sets forth improvements to the current segment disclosure requirements in accordance with Topic 280 “Segment Reporting.” The amendments do not change how we identify our operating segments. On adoption, the disclosure improvements will be applied retrospectively to prior periods presented. The ASU is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU.

In December 2023, the FASB issued ASU No. 2023-09, “Improvements to Income Tax Disclosures” which enhances the disclosure requirements within Topic 740 “Income Taxes.” The enhancements will impact our financial statement disclosures only and will be applied prospectively with retrospective application permitted. The ASU is effective for annual periods beginning after December 15, 2024, and early adoption is permitted. We are currently evaluating the impact of the adoption of this ASU.
27
ConocoPhillips      2024 Q2 10-Q

Management’s Discussion and Analysis
Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations
Management’s Discussion and Analysis is the company’s analysis of its financial performance and of significant trends that may affect future performance. It should be read in conjunction with the financial statements and notes. It contains forward-looking statements including, without limitation, statements relating to the company’s plans, strategies, objectives, expectations and intentions that are made pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. The words “ambition," “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “goal,” “guidance,” “intend,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would” and similar expressions identify forward-looking statements. The company does not undertake to update, revise or correct any of the forward-looking information unless required to do so under the federal securities laws. Readers are cautioned that such forward-looking statements should be read in conjunction with the company’s disclosures under the heading: “CAUTIONARY STATEMENT FOR THE PURPOSES OF THE ‘SAFE HARBOR’ PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995,” beginning on page 48.
The terms “earnings” and “loss” as used in Management’s Discussion and Analysis refer to net income (loss).
Business Environment and Executive Overview
ConocoPhillips is one of the world’s leading E&P companies based on production and reserves, with operations and activities in 13 countries. Our diverse, low cost of supply portfolio includes resource-rich unconventional plays in North America; conventional assets in North America, Europe, Africa and Asia; global LNG developments; oil sands in Canada; and an inventory of global exploration prospects. Headquartered in Houston, Texas, at June 30, 2024, we employed approximately 10,200 people worldwide and had total assets of $96 billion.

Announced Acquisition of Marathon Oil Corporation
In May 2024, we announced a definitive agreement (the Merger Agreement) to acquire Marathon Oil Corporation (Marathon Oil) in an all-stock transaction (the Marathon Oil acquisition) with an enterprise value of approximately $22.5 billion based upon closing share prices on May 28, 2024, and inclusive of Marathon Oil's debt of approximately $5.4 billion at March 31, 2024. Under the terms of the Merger Agreement, which has been unanimously approved by the boards of directors of each company, Marathon Oil stockholders will receive 0.255 shares of ConocoPhillips common stock for each Marathon Oil share. We expect that the Marathon oil acquisition will add high-quality, low cost of supply, development opportunities to our existing U.S. onshore portfolio and additional LNG capacity to our global LNG portfolio. We anticipate closing in the fourth quarter of 2024, subject to the approval of Marathon Oil stockholders, regulatory clearances and other customary closing conditions. See Item 1A. Risk Factors.

Within the first full year following the close of the transaction, we expect our annualized cost and capital expenditure rates to reflect at least $500 million of synergies. Concurrent with our Marathon Oil acquisition announcement, we detailed a plan to repurchase over $7 billion of shares in the first full year following the closing of the transaction and over $20 billion of shares in total over the first three years, in each case at recent commodity prices. Through this plan we expect to retire the equivalent amount of newly issued equity from the transaction in two to three years at recent commodity prices. Further, in conjunction with the Marathon Oil acquisition announcement, we announced a plan to dispose of approximately $2 billion of assets across the portfolio pursuant to ongoing high-grading and optimization efforts.
ConocoPhillips      2024 Q2 10-Q
28

Management’s Discussion and Analysis
Overview
At ConocoPhillips, we anticipate that commodity prices will continue to be cyclical and volatile, and our view is that a successful business strategy in the E&P industry must be resilient in lower price environments, while also retaining upside during periods of higher prices. As such, we are unhedged, remain committed to our disciplined investment framework and continually monitor market fundamentals, including the impacts associated with geopolitical tensions and conflicts, OPEC Plus supply updates, global demand for our products, oil and gas inventory levels, governmental policies, inflation and supply chain disruptions.
The macro-environment of the global energy industry, including the energy transition, continues to evolve. We believe ConocoPhillips will continue to play an essential role by executing on three objectives: responsibly meeting energy transition pathway demand, delivering competitive returns on and of capital and progressing toward our net-zero operational emissions ambition. We call this our Triple Mandate, and it represents our commitment to create long-term value for our stakeholders.

Our Triple Mandate and our foundational principles guide our differential value proposition to deliver competitive returns to stockholders through price cycles. Our foundational principles consist of maintaining balance sheet strength, providing peer-leading distributions, making disciplined investments and demonstrating responsible and reliable ESG performance.

In May, we announced plans to increase our quarterly ordinary dividend from $0.58 per share to $0.78 per share starting in the fourth quarter, representing a 34 percent increase, which will incorporate the current VROC of $0.20 per share into the ordinary dividend. In August, we declared a third-quarter ordinary dividend of $0.58 per share and a VROC payment of $0.20 per share. In August, we also reconfirmed our 2024 planned return of capital to shareholders of at least $9 billion.

In July, we announced further growth to our global LNG portfolio. We entered into an 18-year agreement securing regasification capacity at the Zeebrugge LNG terminal in Belgium which includes regasification services for approximately 0.75 MTPA of LNG beginning in 2027. We also entered into a long-term LNG sales agreement for approximately 0.5 MTPA into Asia starting in 2027. These agreements provide additional access to the European and Asian natural gas markets.

Operationally, we remain focused on safely executing the business while also progressing key strategic initiatives. At Willow, we successfully completed our first major winter construction season. Internationally, we continue to see production growth through project ramp up and new wells online in projects that reached first production at the end of 2023. In Norway, we reached first production at Eldfisk North ahead of schedule, and in China, we celebrated the one thousandth Penglai cargo lift.

Production was 1,945 MBOED in the second quarter of 2024, an increase of 140 MBOED from the same period a year ago. After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2024 production increased by 76 MBOED or four percent from the same period a year ago.

Second-quarter 2024 production resulted in $4.9 billion of cash provided by operating activities. We returned $1.0 billion to shareholders through share repurchases and $0.9 billion through our ordinary dividend and a VROC. We ended the quarter with cash, cash equivalents, restricted cash and short-term investments totaling $6.3 billion and long-term investments in debt securities of $1.0 billion.

Also in the second quarter of 2024, we re-invested $3.0 billion into the business in the form of capital expenditures and investments, with over half of the expenditures related to flexible, short-cycle unconventional plays in the Lower 48 segment, where our production has access to both domestic and export markets.
29
ConocoPhillips      2024 Q2 10-Q

Management’s Discussion and Analysis
Business Environment
Commodity prices are the most significant factor impacting our profitability and related returns on and of capital to our shareholders. Dynamics that could influence world energy markets and commodity prices include, but are not limited to, global economic health, supply or demand disruptions or fears thereof caused by civil unrest, global pandemics, military conflicts, actions taken by OPEC Plus and other major oil producing countries, environmental laws, tax regulations, governmental policies and weather-related disruptions. Our strategy is to create value through price cycles by delivering on the financial, operational and ESG priorities that underpin our value proposition.
Our earnings and operating cash flows generally correlate with price levels for crude oil and natural gas, which are subject to factors external to the company and over which we have no control. The following graph depicts the trend in average benchmark prices for WTI crude oil, Brent crude oil and Henry Hub natural gas:

1034
Brent crude oil prices averaged $84.94 per barrel in the second quarter of 2024, an increase of 8 percent compared with $78.39 per barrel in the second quarter of 2023. WTI at Cushing crude oil prices averaged $80.57 per barrel in the second quarter of 2024, an increase of 9 percent compared with $73.78 per barrel in the second quarter of 2023. Oil prices in the second quarter of 2024 were supported by global oil demand growth and continued voluntary production cuts by OPEC Plus members.
Henry Hub natural gas prices averaged $1.89 per MMBTU in the second quarter of 2024, a decrease of 10 percent compared with $2.09 per MMBTU in the second quarter of 2023. Henry Hub prices decreased due to mild winter weather resulting in excess North American natural gas storage levels.
Our realized bitumen price averaged $54.59 per barrel in the second quarter of 2024, an increase of 33 percent compared with $41.01 per barrel in the second quarter of 2023. The increase in the second quarter of 2024 was driven by strengthening WTI, narrowing WCS differentials with new heavy oil egress via the Trans Mountain pipeline expansion and an improving sales mix with a lower allocation to rail.
For the second quarter of 2024, our total average realized price was $56.56 per BOE compared with $54.50 per BOE in the second quarter of 2023.
ConocoPhillips      2024 Q2 10-Q
30

Management’s Discussion and Analysis
Key Operating and Financial Summary
Significant items during the second quarter of 2024 and recent announcements included the following:
Reported second-quarter 2024 earnings per share of $1.98;
Generated cash provided by operating activities of $4.9 billion;
Declared ordinary dividend of $0.58 per share and VROC of $0.20 per share payable in the third quarter;
Announced agreement to acquire Marathon Oil in an all-stock transaction;
Delivered total company and Lower 48 production of 1,945 MBOED and 1,105 MBOED, respectively;
Reached first production ahead of schedule at Eldfisk North in Norway;
Achieved significant milestones at Willow with arrival of Operations Center modules in Alaska and commencement of the Central Facility fabrication earlier than planned;
Advanced global LNG strategy by signing a long-term regasification agreement at Zeebrugge LNG terminal in Belgium and a long-term LNG sales agreement in Asia, both commencing in 2027;
Distributed $1.9 billion to shareholders, including $1.0 billion through share repurchases and $0.9 billion through the ordinary dividend and VROC; and
Ended the quarter with cash, cash equivalents, restricted cash and short-term investments of $6.3 billion and long-term investments in debt securities of $1.0 billion.

Outlook
Production, Capital and DD&A
Third-quarter 2024 production is expected to be 1.87 to 1.91 MMBOED, inclusive of approximately 90 MBOED of turnaround impacts in Canada, Lower 48, Alaska, Norway, Malaysia and Qatar. Full-year production is expected to be approximately 1.93 to 1.94 MMBOED, as compared with prior guidance of 1.91 to 1.95 MMBOED, reflecting strong second-quarter results.

Full-year capital expenditures guidance is updated to approximately $11.5 billion versus prior range of $11.0 to $11.5 billion, due to strong progress on Willow and increased Lower 48 partner-operated activity.

Full-year DD&A guidance is lowered to $9.3 to $9.4 billion versus prior guidance of $9.4 to $9.6 billion.
31
ConocoPhillips      2024 Q2 10-Q

Results of Operations
Results of Operations
Unless otherwise indicated, discussion of consolidated results for the three- and six-month periods ended June 30, 2024, is based on a comparison with the corresponding period of 2023.
Consolidated Results

Summary Operating Statistics
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Average Net Production
Crude oil (MBD)
Consolidated operations
942 918 934 922 
Equity affiliates
13 13 15 12 
Total crude oil
955 931 949 934 
Natural gas liquids (MBD)
Consolidated operations
287 275 279 270 
Equity affiliates
8 8 
Total natural gas liquids
295 283 287 277 
Bitumen (MBD)
133 66 131 67 
Natural gas (MMCFD)
Consolidated operations
2,123 1,896 2,079 1,909 
Equity affiliates
1,247 1,251 1,257 1,209 
Total natural gas
3,370 3,147 3,336 3,118 
Total Production (MBOED)
1,945 1,805 1,923 1,798 
Total Production (MMBOE)
177 164 350 325 

Dollars Per Unit
Average Sales Prices
Crude oil (per bbl)
Consolidated operations
$81.31 74.18 80.00 75.85 
Equity affiliates
80.34 75.10 78.47 77.90 
Total crude oil
81.30 74.19 79.98 75.88 
Natural gas liquids (per bbl)
Consolidated operations21.84 20.05 22.57 22.41 
Equity affiliates
49.83 43.62 51.00 50.13 
Total natural gas liquids
22.60 20.72 23.40 23.18 
Bitumen (per bbl)
54.59 41.01 49.44 34.93 
Natural gas (per MCF)
Consolidated operations1.88 2.89 2.39 4.27 
Equity affiliates
7.98 8.23 8.12 9.06 
Total natural gas
4.22 5.04 4.61 6.16 
ConocoPhillips      2024 Q2 10-Q
32

Results of Operations
Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Exploration Expenses
General administrative, geological and geophysical,
   lease rental and other
$73 49 166 119 
Leasehold impairment
4 11 4 30 
Dry holes
25 23 44 72 
$102 83 214 221 

Total Company Production

We explore for, produce, transport and market crude oil, bitumen, natural gas, LNG and NGLs on a worldwide basis. At June 30, 2024, our operations were producing in the U.S., Norway, Canada, Australia, China, Malaysia, Qatar and Libya.
Total production in the second quarter of 2024 was 1,945 MBOED, an increase of 140 MBOED or eight percent. Total production in the six-month period of 2024 was 1,923 MBOED, an increase of 125 MBOED or seven percent. Production increases include:
New wells online in the Lower 48, Alaska, Australia, Canada, China, Libya and Norway.
Our Surmont acquisition, which closed in October 2023. See Note 3.
Production increases were partially offset by normal field decline.
After adjusting for impacts from closed acquisitions and dispositions, second-quarter 2024 production increased by 76 MBOED or four percent from the same period a year ago.
Production for the first six months of 2024 was 1,923 MBOED, an increase of 125 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, production increased 60 MBOED or three percent from the same period a year ago.
33
ConocoPhillips      2024 Q2 10-Q

Results of Operations
Income Statement Analysis
Unless otherwise indicated, all results in Income Statement Analysis are before-tax.

Below is select financial data provided on a consolidated basis. The full Income Statement can be found in Item 1. Financial Statements.

Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Sales and other operating revenues$13,620 12,351 27,468 27,162 
Equity in earnings of affiliates403 412 824 911 
Purchased commodities4,858 4,616 10,192 10,754 
Production and operating expenses2,164 1,886 4,179 3,665 
Depreciation, depletion and amortization2,334 2,010 4,545 3,952 
Taxes other than income taxes536 512 1,091 1,088 
Sales and other operating revenues increased $1,269 million in the second quarter of 2024 and increased $306 million in the six-month period of 2024, respectively. Increases in the second quarter were due to higher volumes of $573 million and higher realized prices of $548 million. Increases in the six-month period of 2024 were due to higher volumes of $949 million and higher realized prices of $227 million, partially offset by lower commercial performance.
Equity in earnings of affiliates for the six-month period of 2024 decreased $87 million due to lower earnings primarily driven by lower LNG prices.

Purchased commodities for the three- and six-month periods of 2024 increased $242 million and decreased $562 million, respectively. The second quarter of 2024 increase was driven by higher purchased volumes across all commodities and higher crude prices, partially offset by lower natural gas and power prices. The six-month period of 2024 decrease was driven by lower natural gas and power prices, partially offset by higher crude prices and higher purchased volumes across all commodities.
Production and operating expenses for the three- and six-month periods of 2024 increased $278 million and $514 million, respectively, due to higher lease operating expenses, transportation related costs and well work activities in our Lower 48 and Alaska segments in addition to higher production volumes primarily in our Canada segment.

DD&A expenses for the three- and six-month periods of 2024 increased $324 million and $593 million, respectively, mainly due to higher rates in our Lower 48 and Alaska segments and higher volumes primarily in our Canada segment.
ConocoPhillips      2024 Q2 10-Q
34

Results of Operations
Segment Results
Unless otherwise indicated, discussion of segment results for the three- and six-month periods ended June 30, 2024, is based on a comparison with the corresponding period of 2023 and are shown after-tax.

A summary of the company's net income (loss) by business segment follows:
Millions of Dollars
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Alaska
$360 372 706 788 
Lower 48
1,259 1,230 2,640 3,082 
Canada
261 32 441 38 
Europe, Middle East and North Africa
251 264 555 629 
Asia Pacific
444 387 956 909 
Other International
3 (4)2 (3)
Corporate and Other
(249)(49)(420)(291)
Net income (loss)
$2,329 2,232 4,880 5,152 
For further discussion of segment results, see the following pages.
35
ConocoPhillips      2024 Q2 10-Q

Results of Operations
Alaska

Three Months Ended
June 30
Six Months Ended
June 30

2024202320242023
Select financial data by segment before-tax ($MM)
Sales and other operating revenues$1,783 1,709 3,453 3,444 
Production and operating expenses490 460 969 900 
Depreciation, depletion and amortization321 267 645 527 
Taxes other than income taxes131 122 264 275 
Net Income (Loss) ($MM)
$360 372 706 788 
Average Net Production
Crude oil (MBD)
170 176 175 177 
Natural gas liquids (MBD)
14 16 14 18 
Natural gas (MMCFD)
36 34 39 38 
Total Production (MBOED)
190 198 196 201 
Total Production (MMBOE)
17 18 36 36 
Average Sales Prices
Crude oil ($ per bbl)
$86.44 76.09 85.08 79.08 
Natural gas ($ per MCF)
4.03 4.38 3.96 4.49 
The Alaska segment primarily explores for, produces, transports and markets crude oil, NGLs and natural gas. As of June 30, 2024, Alaska contributed 14 percent of our consolidated liquids production and two percent of our consolidated natural gas production.
Net Income (Loss)
Alaska reported earnings of $360 million and $706 million in the three- and six-month periods of 2024, respectively, compared with earnings of $372 million and $788 million in the three- and six-month periods of 2023, respectively.

Earnings in the second quarter of 2024 included higher sales revenues resulting from higher realized prices of $131 million, partially offset by lower volumes of $45 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $22 million driven by higher well work activity, higher DD&A expenses of $39 million due to higher rates as a result of prior year-end downward reserve revisions and higher impairments of $24 million due to a project cancellation.

Earnings in the six-month period of 2024 included higher sales revenues resulting from higher realized prices of $152 million, partially offset by lower volumes of $55 million. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $51 million, driven by higher well work activity and higher transportation related costs, higher DD&A expenses of $86 million due to higher rates as a result of year-end downward reserve revisions and higher impairments of $24 million due to a project cancellation.

Production
Average production decreased 8 MBOED and 5 MBOED in the three- and six-month periods of 2024, respectively. Decreases to production were primarily due to normal field decline and higher planned downtime related to turnaround activity in the second quarter of 2024.
Production decreases were partly offset by new wells online and improved performance.
ConocoPhillips      2024 Q2 10-Q
36

Results of Operations
Lower 48
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Select financial data by segment before-tax ($MM)
Sales and other operating revenues$9,053 8,388 18,361 18,433 
Production and operating expenses1,158 1,029 2,240 1,989 
Depreciation, depletion and amortization1,557 1,407 2,989 2,726 
Taxes other than income taxes340 340 690 702 
Net Income (Loss) ($MM)
$1,259 1,230 2,640 3,082 
Average Net Production
Crude oil (MBD)
575 565 564 563 
Natural gas liquids (MBD)
264 252 255 245 
Natural gas (MMCFD)
1,597 1,478 1,539 1,448 
Total Production (MBOED)
1,105 1,063 1,075 1,049 
Total Production (MMBOE)
101 97 196 190 
Average Sales Prices
Crude oil ($ per bbl)
$78.72 72.06 77.14 73.19 
Natural gas liquids ($ per bbl)
21.57 19.61 22.10 22.01 
Natural gas ($ per MCF)
0.32 1.43 0.92 2.16 
The Lower 48 segment consists of operations located in the U.S. Lower 48 states, as well as producing properties in the Gulf of Mexico. As of June 30, 2024, the Lower 48 contributed 61 percent of our consolidated liquids production and 74 percent of our consolidated natural gas production.
Net Income (Loss)
Lower 48 reported earnings of $1,259 million and $2,640 million in the three- and six-month periods of 2024, respectively, compared with earnings of $1,230 million and $3,082 million in the three- and six-month periods of 2023, respectively.
Earnings in the second quarter of 2024 included higher revenues resulting from higher overall realized prices of $184 million, inclusive of a $116 million impact from lower realized gas prices, and higher volumes of $76 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $100 million, driven by increased lease operating expenses of $51 million and increased transportation related costs of $32 million, as well as higher DD&A expenses of $116 million, driven by higher rates of $85 million and higher production volumes of $33 million.
Earnings in the six-month period of 2024 included lower revenues resulting from lower commercial performance and timing, partially offset by higher volumes of $93 million and higher overall realized prices of $63 million, inclusive of a $253 million impact from lower realized gas prices. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $195 million, driven by increased lease operating expenses of $87 million and increased transportation related costs of $65 million, higher DD&A expenses of $205 million, driven by higher rates of $170 million and higher production volumes of $25 million.
Production
Average production increased 42 MBOED and 26 MBOED in the three- and six-month periods of 2024, respectively. Increases to production were primarily due to new wells online from our development programs in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.
Production increases were partly offset by normal field decline.
37
ConocoPhillips      2024 Q2 10-Q

Results of Operations
Canada
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Select financial data by segment before-tax ($MM)
Sales and other operating revenues$941 449 1,877 1,292 
Production and operating expenses223 126 440 263 
Depreciation, depletion and amortization166 84 324 175 
Taxes other than income taxes8 19 12 
Net Income (Loss) ($MM)
$261 32 441 38 
Average Net Production
Crude oil (MBD)
17 17 
Natural gas liquids (MBD)
6 6 
Bitumen (MBD)
133 66 131 67 
Natural gas (MMCFD)
121 58 110 61 
Total Production (MBOED)
176 85 173 87 
Total Production (MMBOE)
16 31 16 
Average Sales Prices
Crude oil ($ per bbl)
$68.90 59.40 66.57 62.56 
Natural gas liquids ($ per bbl)
27.01 17.11 31.23 22.94 
Bitumen ($ per bbl)
54.59 41.01 49.44 34.93 
Natural gas ($ per MCF)*
0.36 0.56 0.66 2.70 
*Average sales prices include unutilized transportation costs.
Our Canadian operations consist of the Surmont oil sands development in Alberta and the Montney unconventional play in British Columbia. As of June 30, 2024, Canada contributed 12 percent of our consolidated liquids production and five percent of our consolidated natural gas production.
Net Income (Loss)
Canada reported earnings of $261 million and $441 million in the three- and six-month periods of 2024, respectively, compared with earnings of $32 million and $38 million in the three- and six-month periods of 2023, respectively.

Earnings in the second quarter of 2024 included higher sales revenues resulting from higher volumes of $310 million, driven by our increased working interest in Surmont, and realized prices of $67 million. Earnings decreases in the second quarter of 2024 included higher production and operating expenses of $73 million, driven by our increased working interest in Surmont, and higher DD&A expenses of $62 million.

Earnings in the six-month period of 2024 included higher sales revenues resulting from higher volumes of $558 million, driven by our increased working interest in Surmont, and realized prices of $123 million. Earnings decreases in the six-month period of 2024 included higher production and operating expenses of $134 million, driven by our increased working interest in Surmont, and higher DD&A expenses of $113 million.
Production
Average production increased 91 MBOED and 86 MBOED in the three- and six-month periods of 2024, respectively. Increases to production resulted from our increased working interest in Surmont as well as new wells online in the Montney and Surmont. See Note 3.
Production increases were partly offset by normal field decline.
ConocoPhillips      2024 Q2 10-Q
38

Results of Operations
Europe, Middle East and North Africa
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Select financial data by segment before-tax ($MM)
Sales and other operating revenues$1,296 1,369 2,753 3,071 
Production and operating expenses162 145 317 291 
Depreciation, depletion and amortization175 139 355 292 
Taxes other than income taxes10 21 19 
Net Income (Loss) ($MM)
$251 264 555 629 
Consolidated Operations
Average Net Production
Crude oil (MBD)
119 113 118 116 
Natural gas liquids (MBD)
3 4 
Natural gas (MMCFD)
328 286 343 313 
Total Production (MBOED)
177 165 179 172 
Total Production (MMBOE)
16 15 33 31 
Average Sales Prices


Crude oil ($ per bbl)
$84.62 79.64 84.74 81.48 
Natural gas liquids ($ per bbl)
39.60 37.06 43.99 40.63 
Natural gas ($ per MCF)
9.59 10.83 9.18 14.31 
Production and sales prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.
The Europe, Middle East and North Africa segment consists of operations principally located in the Norwegian sector of the North Sea and the Norwegian Sea, Qatar, Libya and commercial and terminalling operations in the U.K. As of June 30, 2024, our Europe, Middle East and North Africa operations contributed nine percent of our consolidated liquids production and 17 percent of our consolidated natural gas production.
Net Income (Loss)
Europe, Middle East and North Africa reported earnings of $251 million and $555 million in the three- and six-month periods of 2024, respectively, compared with earnings of $264 million and $629 million in the three- and six-month periods of 2023, respectively.
Earnings in the second quarter of 2024 included lower sales revenues of $20 million. Earnings decreases in the second quarter of 2024 included lower foreign exchange gains of approximately $21 million related to NOK to USD exchange rate fluctuations.
Earnings in the six-month period of 2024 included lower sales revenues resulting from lower realized prices of $61 million partially offset by higher volumes of $26 million. Earnings decreases in the six-month period of 2024 included lower foreign exchange gains of approximately $40 million related to NOK to USD exchange rate fluctuations.
Consolidated Production
Average consolidated production increased 12 MBOED and 7 MBOED in the three- and six-month periods of 2024, respectively. Increases to production were primarily due to new wells online and improved performance in both Norway and Libya.
Production increases were partly offset by normal field decline.
Eldfisk North First Production in Norway
In May 2024, we reached first production ahead of schedule at Eldfisk North in Norway.

39
ConocoPhillips      2024 Q2 10-Q

Results of Operations
Exploration Activity
In the second quarter of 2024, we charged $22 million before-tax as dry hole expenses primarily for two partner operated exploration wells in the Alvheim area in the Norwegian sector of the North Sea. Additionally, in the first quarter of 2024, we charged $18 million before-tax as dry hole expense for the Busta suspended discovery well on license PL782S that was drilled in 2019.

Asia Pacific
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Select financial data by segment before-tax ($MM)
Sales and other operating revenues$543 432 1,017 896 
Production and operating expenses92 95 171 179 
Depreciation, depletion and amortization107 108 217 221 
Taxes other than income taxes36 24 65 51 
Net Income (Loss) ($MM)
$444 387 956 909 
Consolidated Operations
Average Net Production
Crude oil (MBD)61 58 60 60 
Natural gas (MMCFD)
41 40 48 49 
Total Production (MBOED)
68 65 68 68 
Total Production (MMBOE)
6 12 12 
Average Sales Prices
Crude oil ($ per bbl)
$86.47 78.64 85.81 81.07 
Natural gas ($ per MCF)
3.98 4.10 3.81 4.22 
Production and sales prices exclude equity affiliates. See Summary Operating Statistics for equity affiliate totals.
The Asia Pacific segment has operations in China, Malaysia, Australia and commercial operations in China, Singapore and Japan. As of June 30, 2024, Asia Pacific contributed four percent of our consolidated liquids production and two percent of our consolidated natural gas production.
Net Income (Loss)
Asia Pacific reported earnings of $444 million and $956 million in the three- and six-month periods of 2024, respectively, compared with earnings of $387 million and $909 million in the three- and six-month periods of 2023, respectively.
Earnings in the second quarter of 2024 included higher sales revenues resulting from higher realized prices of $34 million and higher volumes of $20 million.
Earnings in the six-month period of 2024 included higher sales revenues resulting from higher realized prices of $43 million. Earnings increases in the six-month period of 2024 included a $76 million tax benefit associated with a deepwater investment tax incentive for Malaysia Blocks J & G. Offsetting these increases were lower earnings from equity affiliates of $87 million, primarily due to lower LNG sales prices. See Note 19.
Consolidated Production
Average consolidated production increased 3 MBOED in the three-month period of 2024 and was flat in the six-month period of 2024. Increases to production were primarily due to Bohai Bay development activity in China and lower downtime in Malaysia.
Production increases were partly offset by normal field decline.
ConocoPhillips      2024 Q2 10-Q
40

Results of Operations
Other International
Three Months Ended
June 30
Six Months Ended
June 30
2024202320242023
Net Income (Loss) ($MM)
$3 (4)2 (3)
The Other International segment consists of activities associated with prior operations in other countries.

Corporate and Other

Millions of Dollars

Three Months Ended
June 30
Six Months Ended
June 30

2024202320242023
Net Income (Loss)
Net interest expense
$(89)(86)(182)(176)
Corporate general and administrative expenses
(78)(96)(183)(186)
Technology
(44)(11)(68)(5)
Other income (expense)
(38)144 13 76 

$(249)(49)(420)(291)
Net interest expense consists of interest and financing expense, net of interest income and capitalized interest.
Corporate G&A expenses include compensation programs and staff costs. Corporate G&A expenses decreased in both the three- and six-month periods of 2024 due to mark to market adjustments associated with certain compensation programs.
Technology includes our investments in low-carbon and other new technologies or businesses and licensing revenues. Other new technologies or businesses and licensing activities are focused on both conventional and tight oil reservoirs, shale gas, oil sands, enhanced oil recovery, as well as LNG. Earnings in Technology for both the three- and six-month periods of 2024 decreased due to increased costs in low-carbon and other new technologies and lower licensing revenues.
Other income (expense) or “Other” includes certain consolidating tax-related items, foreign currency transaction gains and losses, environmental costs associated with sites no longer in operation, other costs not directly associated with an operating segment, gains/losses on the early retirement of debt, holding gains or losses on equity securities and pension settlement expense. “Other” decreased in both the three- and six-month periods of 2024 primarily due to the absence of a 2023 consolidating tax adjustment, absence of a 2023 gain on the early retirement of debt, and foreign currency exchange impacts.


41
ConocoPhillips      2024 Q2 10-Q

Capital Resources and Liquidity
Capital Resources and Liquidity
Financial Indicators
Millions of Dollars
June 30
2024
December 31
2023
Cash and cash equivalents$4,294 5,635 
Short-term investments1,723 971 
Total debt18,352 18,937 
Total equity49,745 49,279 
Percent of total debt to capital*27 %28 
Percent of floating-rate debt to total debt2 %
*Capital includes total debt and total equity.
To meet our short-term and long-term liquidity requirements, we look to a variety of funding sources, including cash generated from operating activities, our commercial paper and credit facility programs, and our ability to sell securities using our shelf registration statement. During the first six months of 2024, the primary uses of our available cash were $5.9 billion to support our ongoing capital expenditures and investments program, $2.3 billion to repurchase common stock, $1.8 billion to pay the ordinary dividend and VROC, $0.6 billion to retire debt at maturity and $0.8 billion net purchases of investments.
At June 30, 2024, we had total liquidity of $11.5 billion, comprised of cash and cash equivalents of $4.3 billion, short-term investments of $1.7 billion and available borrowing capacity under our credit facility of $5.5 billion. In addition, we have $1.0 billion of long-term investments in debt securities. We believe current cash balances and cash generated by operating activities, together with access to external sources of funds as described below in the “Significant Changes in Capital” section, will be sufficient to meet our funding requirements in the near- and long-term, including our capital spending program, acquisitions, dividend payments and debt obligations.

Significant Changes in Capital
Operating Activities
Cash provided by operating activities was $9.9 billion for the first six months of 2024, compared with $9.3 billion for the corresponding period of 2023. The increase is primarily due to changes in operational working capital driven by lower Norway tax payments, higher production from the Surmont 50 percent working interest acquired in the fourth quarter of 2023, higher realized crude and bitumen prices, partly offset by lower realized gas and LNG prices and higher operating costs.
Our short-term and long-term operating cash flows are highly dependent upon prices for crude oil, bitumen, natural gas, LNG and NGLs. Prices and margins in our industry have historically been volatile and are driven by market conditions over which we have no control. Absent other mitigating factors, as these prices and margins fluctuate, we would expect a corresponding change in our operating cash flows.
The level of production volumes, as well as product and location mix, impacts our cash flows. Future production is subject to numerous uncertainties, including, among others, the volatile crude oil and natural gas price environment, which may impact investment decisions; the effects of price changes on production sharing and variable-royalty contracts; acquisition and disposition of fields; field production decline rates; new technologies; operating efficiencies; timing of startups and major turnarounds; political instability; impacts of a global pandemic; weather-related disruptions; and the addition of proved reserves through exploratory success and their timely and cost-effective development. While we actively manage for these factors, production levels can cause variability in cash flows, although generally this variability has not been as significant as that caused by commodity prices.
To maintain or grow our production volumes, we must continue to add to our proved reserve base. See the “Capital Expenditures and Investments” section.
ConocoPhillips      2024 Q2 10-Q
42

Capital Resources and Liquidity
Investing Activities
For the first six months of 2024, we invested $5.9 billion in capital expenditures and investments. Our 2024 operating plan capital expenditures are currently expected to be approximately $11.5 billion. Our 2023 capital expenditures and investments were $11.2 billion. See the “Capital Expenditures and Investments” section.

In the first six months of 2024, we invested $0.5 billion in LNG projects, including Port Arthur Liquefaction Holdings, LLC (PALNG), QatarEnergy LNG NFE(4) (NFE4) and QatarEnergy LNG NFS(3) (NFS3).

We invest in short-term and long-term investments as part of our cash investment strategy, the primary objective of which is to protect principal, maintain liquidity and provide yield and total returns. These investments include time deposits, commercial paper and debt securities classified as available for sale. Short-term funds needed to support our operating plan and provide resiliency to react to short-term price volatility are invested in highly liquid instruments with maturities less than one year. Funds we consider available to maintain resiliency in longer term price downturns and to capture opportunities outside a given operating plan may be invested in instruments with maturities greater than one year.
Investing activities in the first six months of 2024 included net purchases of $794 million of investments. We had net purchases of $531 million of short-term investments and net purchases of $263 million of long-term investments. See Note 13.
Financing Activities
We have a revolving credit facility totaling $5.5 billion with an expiration date of February 2027. The credit facility may be used for direct bank borrowings, the issuance of letters of credit totaling up to $500 million or as support for our commercial paper program. With no commercial paper outstanding and no direct borrowings or letters of credit, we had access to $5.5 billion in available borrowing capacity under our revolving credit facility at June 30, 2024.

Our debt balance at June 30, 2024 was $18.4 billion compared with $18.9 billion at December 31, 2023. The current portion of debt, including future payments for finance leases, is $1.3 billion at June 30, 2024. In the first quarter of 2024, the company retired $461 million principal amount of our 2.125% Notes at maturity. Debt payments are expected to be made using current cash balances and cash provided by operating activities.
In June 2024, S&P affirmed our long-term credit rating. The current long-term debt credit ratings are:

Fitch: “A” with a “stable” outlook
S&P: “A-” with a “stable” outlook
Moody's: "A2" with a "stable" outlook

See Note 5 for additional information on debt and the revolving credit facility.
Certain of our project-related contracts, commercial contracts and derivative instruments contain provisions requiring us to post collateral. Many of these contracts and instruments permit us to post either cash or letters of credit as collateral. At June 30, 2024, and December 31, 2023, we had direct bank letters of credit of $262 million and $340 million, respectively, which secured performance obligations related to various purchase commitments incident to the ordinary conduct of business. In the event of a credit rating downgrade, we may be required to post additional letters of credit.
Shelf Registration
We have a universal shelf registration statement on file with the SEC under which we have the ability to issue and sell an indeterminate number of various types of debt and equity securities.
43
ConocoPhillips      2024 Q2 10-Q

Capital Resources and Liquidity
Capital Requirements
For information about our capital expenditures and investments, see the “Capital Expenditures and Investments” section.

We believe in delivering value to our shareholders through our current three-tier return of capital framework. The framework is structured to deliver a compelling, growing ordinary dividend, a discretionary VROC payment and through-cycle share repurchases. In connection with the pending transaction with Marathon Oil, share repurchases have been restricted pursuant to SEC regulations; however, we still anticipate achieving at least $9 billion return of capital in 2024. See Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

In the first six months of 2024, we paid ordinary dividends of $1.16 per share and VROC payments of $0.40 per share. In the first six months of 2023, we paid ordinary dividends of $1.02 per share and VROC payments of $1.30 per share. In May, we announced plans to increase our quarterly ordinary dividend from $0.58 per share to $0.78 per share starting in the fourth quarter, representing a 34 percent increase, which will incorporate the current VROC of $0.20 per share into the ordinary dividend. In August 2024, we declared an ordinary dividend of $0.58 per share and a VROC payment of $0.20 per share, payable September 3, 2024, to shareholders of record on August 12, 2024.

In late 2016, we initiated our current share repurchase program. As of October 2022, we had announced a total authorization to repurchase up to $45 billion of our common stock. Repurchases are made at management’s discretion, at prevailing prices, subject to market conditions and other factors. As of June 30, 2024, share repurchases since the inception of our current program totaled 403.4 million shares and $31.2 billion. In the six months ended June 30, 2024, we repurchased 20.0 million shares for a cost of $2.3 billion.

See Part I—Item 1A—Risk Factors –Our ability to execute our capital return program is subject to certain considerations” in our 2023 Annual Report on Form 10-K.

Capital Expenditures and Investments

Millions of Dollars

Six Months Ended
June 30

20242023
Alaska$1,411 769 
Lower 483,265 3,357 
Canada283 228 
Europe, Middle East and North Africa446 567 
Asia Pacific135 142 
Corporate and Other345 757 
Capital expenditures and investments$5,885 5,820 
During the first six months of 2024, capital expenditures and investments supported key operating activities and acquisitions, primarily:
Appraisal and development activities in Alaska related to the Western North Slope, inclusive of Willow, and development activities in the Greater Kuparuk Area.
Development activities in the Lower 48, primarily in the Delaware Basin, Eagle Ford, Midland Basin and Bakken.
Appraisal and development activities in the Montney as well as development and optimization of Surmont in Canada.
Development activities across assets in Norway.
Continued development activities in Malaysia and China.
Investments in PALNG, NFE4 and NFS3.
Our 2024 operating plan capital expenditure guidance is currently expected to be approximately $11.5 billion. Our operating plan capital was $11.2 billion in 2023.
ConocoPhillips      2024 Q2 10-Q
44

Capital Resources and Liquidity
Guarantor Summarized Financial Information
We have various cross guarantees among our Obligor Group; ConocoPhillips, ConocoPhillips Company and Burlington Resources LLC, with respect to publicly held debt securities. ConocoPhillips Company is 100 percent owned by ConocoPhillips. Burlington Resources LLC is 100 percent owned by ConocoPhillips Company. ConocoPhillips and/or ConocoPhillips Company have fully and unconditionally guaranteed the payment obligations of Burlington Resources LLC, with respect to its publicly held debt securities. Similarly, ConocoPhillips has fully and unconditionally guaranteed the payment obligations of ConocoPhillips Company with respect to its publicly held debt securities. In addition, ConocoPhillips Company has fully and unconditionally guaranteed the payment obligations of ConocoPhillips with respect to its publicly held debt securities. All guarantees are joint and several.
The following tables present summarized financial information for the Obligor Group, as defined below:
The Obligor Group will reflect guarantors and issuers of guaranteed securities consisting of ConocoPhillips, ConocoPhillips Company and Burlington Resources LLC.
Consolidating adjustments for elimination of investments in and transactions between the collective guarantors and issuers of guaranteed securities are reflected in the balances of the summarized financial information.
Non-Obligated Subsidiaries are excluded from the presentation.
Transactions and balances reflecting activity between the Obligors and Non-Obligated Subsidiaries are presented below:
Summarized Income Statement Data

Millions of Dollars

Six Months Ended
June 30, 2024
Revenues and Other Income
$18,162 
Income (loss) before income taxes*
4,786 
Net Income (Loss)
4,880 
*Includes approximately $4.1 billion of purchased commodities expense for transactions with Non-Obligated Subsidiaries.
Summarized Balance Sheet Data

Millions of Dollars

June 30
2024
December 31
2023
Current Assets
$7,341 8,008 
Amounts due from Non-Obligated Subsidiaries, current
1,472 1,565 
Noncurrent Assets
98,272 91,155 
Amounts due from Non-Obligated Subsidiaries, noncurrent
9,962 8,936 
Current Liabilities
10,050 7,337 
Amounts due to Non-Obligated Subsidiaries, current
6,256 3,990 
Noncurrent Liabilities
52,283 49,105 
Amounts due to Non-Obligated Subsidiaries, noncurrent
35,107 31,241 
45
ConocoPhillips      2024 Q2 10-Q

Capital Resources and Liquidity
Contingencies
We are subject to legal proceedings, claims and liabilities that arise in the ordinary course of business. We accrue for losses associated with legal claims when such losses are considered probable and the amounts can be reasonably estimated. See Note 8.
Legal and Tax Matters
We are subject to various lawsuits and claims, including, but not limited to, matters involving oil and gas royalty and severance tax payments, gas measurement and valuation methods, contract disputes, environmental damages, climate change, personal injury and property damage. Our primary exposures for such matters relate to alleged royalty and tax underpayments on certain federal, state and privately owned properties, claims of alleged environmental contamination and damages from historic operations and climate change. We will continue to defend ourselves vigorously in these matters.
Our legal organization applies its knowledge, experience and professional judgment to the specific characteristics of our cases, employing a litigation management process to manage and monitor the legal proceedings against us. Our process facilitates the early evaluation and quantification of potential exposures in individual cases. This process also enables us to track those cases that have been scheduled for trial and/or mediation. Based on professional judgment and experience in using these litigation management tools and available information about current developments in all our cases, our legal organization regularly assesses the adequacy of current accruals and determines if adjustment of existing accruals, or establishment of new accruals, is required.
Environmental
We are subject to the same numerous international, federal, state and local environmental laws and regulations as other companies in our industry. For a discussion of the most significant of these environmental laws and regulations, including those with associated remediation obligations, see the “Environmental” section in Management’s Discussion and Analysis of Financial Condition and Results of Operations on pages 56–58 of our 2023 Annual Report on Form 10-K.
We occasionally receive requests for information or notices of potential liability from the EPA and state environmental agencies alleging that we are a potentially responsible party under the CERCLA or an equivalent state statute. On occasion, we also have been made a party to cost recovery litigation by those agencies or by private parties. These requests, notices and lawsuits assert potential liability for remediation costs at various sites that typically are not owned by us, but allegedly contain waste attributable to our past operations. As of June 30, 2024, there were 15 sites around the U.S. in which we were identified as a potentially responsible party under CERCLA and comparable state laws.
For remediation activities in the U.S. and Canada, our consolidated balance sheet included a total environmental accrual of $184 million at both June 30, 2024, and December 31, 2023. We expect to incur a substantial amount of these expenditures within the next 30 years.
Notwithstanding any of the foregoing, and as with other companies engaged in similar businesses, environmental costs and liabilities are inherent concerns in our operations and products, and there can be no assurance that material costs and liabilities will not be incurred. However, we currently do not expect any material adverse effect upon our results of operations or financial position as a result of compliance with current environmental laws and regulations.
See Part I—Item 1A—Risk Factors – "We expect to continue to incur substantial capital expenditures and operating costs as a result of our compliance with existing and future environmental laws and regulations," in our 2023 Annual Report on Form 10-K and Note 8 for information on environmental litigation.
Climate Change
Continuing political and social attention to the issue of global climate change has resulted in a broad range of proposed or promulgated state, national and international laws and regulations focusing on GHG or methane emissions reduction. These proposed or promulgated laws apply or could apply in countries where we have interests or may have interests in the future. Laws in this field continue to evolve, and while it is not possible to accurately estimate either a timetable for implementation or our future compliance costs relating to implementation, such laws, if enacted, could have a material impact on our results of operations and financial condition. For examples of legislation and precursors for possible regulation that do or could affect our operations, see the “Climate Change” section in Management’s Discussion and Analysis of Financial Condition and Results of Operations on pages 58–59 of our 2023 Annual Report on Form 10-K.
ConocoPhillips      2024 Q2 10-Q
46

Capital Resources and Liquidity
Company Response to Climate-Related Risks
In 2020, we adopted a Paris-aligned climate-related risk framework with an ambition to reduce our operational (Scope 1 and 2) emissions to net-zero by 2050. The objective of our Climate Risk Strategy is to manage climate-related risk, optimize opportunities and equip the company to respond to changes in key uncertainties, including government policies around the world, technologies for emissions reduction, alternative energy technologies and changes in consumer trends. The strategy sets out our choices around portfolio composition, emissions reductions, targets and incentives, emissions-related technology development, and our climate-related policy and finance sector engagement.
An important component of our Climate Risk Strategy is the Plan for the Net-Zero Energy Transition (the 'Plan'). The Plan outlines how we intend to play a valued role in the energy transition by executing on our Triple Mandate to: reliably and responsibly meet energy transition pathway demand, deliver competitive returns on and of capital and progress toward our net-zero operational emissions ambition. The Plan also outlines how we intend to apply our strategic capabilities and resources to meet the challenges posed by climate change in an economically viable, accountable and actionable way that balances the interests of our stakeholders.
Key elements of the Plan include:
Maintaining strategic flexibility
Building a resilient asset portfolio with a focus on low cost of supply and low GHG intensity to meet transition pathway energy demand.
Committing to capital discipline through use of a fully burdened cost of supply, including cost of carbon, as the basis for capital allocation.
Reducing Scope 1 and 2 emissions
Setting targets for emissions over which we have ownership and control, with an ambition to become a net-zero company for Scope 1 and 2 emissions by 2050.
Addressing Scope 3 emissions
Advocating for a well-designed, economy-wide price on carbon and engaging in development of other policy and legislation to address end-use emissions.
Working with our suppliers for alignment on GHG emissions reductions.
Contributing to an orderly transition
Building an attractive LNG portfolio.
Evaluating potential investments in emerging energy transition and low-carbon technologies.
Our Plan does not include a Scope 3 (end-use) emissions target. We recognize that end-use emissions must be reduced to meet global climate objectives. However, it is our view that supply-side constraints through Scope 3 targets for North American and European upstream oil and gas producers would be counterproductive to climate goals. In the absence of policy measures that address global demand and with the shape and pace of technology and policy yet to be determined, setting and meeting Scope 3 targets would require a shift of production to other global operators that have established less ambitious targets or no targets to reduce their own operational emissions or do not have any other ambitions or plans to manage climate-related risks, potentially eroding energy security and affordability as well as undercutting global climate change objectives. This is why we have consistently taken a prominent role in advocating for a well-designed, economy-wide price on carbon and engaged in development of other policies or legislation that could address end-use emissions from high-carbon intensity energy use. We have also expanded policy advocacy beyond carbon pricing to include regulatory action, such as support for the direct regulation of methane.
In support of addressing our Scope 1 and 2 emissions, in 2023, we made progress in several key areas:
Continued to refine our Paris-aligned climate risk strategy.
Accelerated our GHG intensity reduction target to 50-60 percent by 2030 from a 2016 baseline for both gross operated and net equity emissions.
Achieved the Gold Standard Pathway in the Oil and Gas Methane Partnership 2.0 Initiative.
Implemented our new near-zero 2030 methane emissions intensity target of approximately 1.5 kilogram carbon dioxide equivalent per BOE or of 0.15 percent of gas produced.
Our emissions reduction efforts and net-zero ambition are supported by our multi-disciplinary Low-Carbon Technology organization. See Part I—Item 1A—Risk Factors – "Existing and future laws, regulations and internal initiatives relating to global climate changes, such as limitations on GHG emissions, may impact or limit our business plans, result in significant expenditures, promote alternative uses of energy or reduce demand for our products," and "Broader investor and societal attention to and efforts to address global climate change may limit who can do business with us or our access to financial markets and could subject us to litigation," in our 2023 Annual Report on Form 10-K and Note 8 for information on climate change litigation.
47
ConocoPhillips      2024 Q2 10-Q

Cautionary Statement for the Purposes of the “Safe Harbor” Provisions of the Private Securities Litigation Reform Act of 1995
This report includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements other than statements of historical fact included or incorporated by reference in this report, including, without limitation, statements regarding our future financial position, business strategy, budgets, projected revenues, projected costs and plans, objectives of management for future operations, the anticipated benefits of the Marathon Oil acquisition, the anticipated impact of the proposed transaction on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the proposed transaction and the anticipated closing date for the proposed transaction are forward-looking statements. Examples of forward-looking statements contained in this report include our expected production growth and outlook on the business environment generally, our expected capital budget and capital expenditures, and discussions concerning future dividends. You can often identify our forward-looking statements by the words “ambition,” “anticipate,” “believe,” “budget,” “continue,” “could,” “effort,” “estimate,” “expect,” “forecast,” “intend,” “goal,” “guidance,” “may,” “objective,” “outlook,” “plan,” “potential,” “predict,” “projection,” “seek,” “should,” “target,” “will,” “would” and similar expressions.
We based the forward-looking statements on our current expectations, estimates and projections about ourselves and the industries in which we operate in general. We caution you these statements are not guarantees of future performance as they involve assumptions that, while made in good faith, may prove to be incorrect, and involve risks and uncertainties we cannot predict. In addition, we based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, our actual outcomes and results may differ materially from what we have expressed or forecast in the forward-looking statements. Any differences could result from a variety of factors and uncertainties, including, but not limited to, the following:
Fluctuations in crude oil, bitumen, natural gas, LNG and NGLs prices, including a prolonged decline in these prices relative to historical or future expected levels.
Global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East, and the global response to such conflict; security threats on facilities and infrastructure; a public health crisis; from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries; or the resulting company or third-party actions in response to such changes.
The impact of significant declines in prices for crude oil, bitumen, natural gas, LNG and NGLs, which may result in recognition of impairment charges on our long-lived assets, leaseholds and nonconsolidated equity investments.
The potential for insufficient liquidity or other factors, such as those described herein, that could impact our ability to repurchase shares and declare and pay dividends, whether fixed or variable.
Potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks and the inherent uncertainties in predicting reserves and reservoir performance.
Reductions in reserves replacement rates, whether as a result of the significant declines in commodity prices or otherwise.
Unsuccessful exploratory drilling activities or the inability to obtain access to exploratory acreage.
Unexpected changes in costs, inflationary pressures or technical requirements for constructing, modifying or operating E&P facilities.
Legislative and regulatory initiatives addressing environmental concerns, including initiatives addressing the impact of global climate change or further regulating hydraulic fracturing, methane emissions, flaring, water disposal or LNG exports.
Significant operational or investment changes imposed by existing or future environmental statutes and regulations, including international agreements and national or regional legislation and regulatory measures to limit or reduce GHG emissions.
Substantial investment in and development of or use of competing or alternative energy sources, including as a result of existing or future environmental rules and regulations.
The impact of broader societal attention to and efforts to address climate change may impact our access to capital and insurance.
Potential failures or delays in delivering on our current or future low-carbon strategy, including our inability to develop new technologies.
ConocoPhillips      2024 Q2 10-Q
48

The impact of public health crises, including pandemics (such as COVID-19) and epidemics, and any related company or government policies or actions.
Lack of, or disruptions in, adequate and reliable transportation for our crude oil, bitumen, natural gas, LNG and NGLs.
Inability to timely obtain or maintain permits, including those necessary for construction, drilling and/or development, or inability to make capital expenditures required to maintain compliance with any necessary permits or applicable laws or regulations.
Failure to complete definitive agreements and feasibility studies for, and to complete construction of, announced and future E&P and LNG development in a timely manner (if at all) or on budget.
Potential disruption or interruption of our operations and any resulting consequences due to accidents, extraordinary weather events; supply chain disruptions; civil unrest; political events; war; terrorism; cybersecurity threats and information technology failures, constraints or disruptions.
Changes in international monetary conditions and foreign currency exchange rate fluctuations.
Changes in international trade relationships, including the imposition of trade restrictions or tariffs relating to crude oil, bitumen, natural gas, LNG, NGLs, carbon and any materials or products (such as aluminum and steel) used in the operation of our business, including any sanctions imposed as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East.
Liability for remedial actions, including removal and reclamation obligations, under existing and future environmental regulations and litigation.
Liability resulting from litigation, including litigation directly or indirectly related to the transaction with Concho Resources Inc., or our failure to comply with applicable laws and regulations.
General domestic and international economic and political developments, including armed hostilities; expropriation of assets; changes in governmental policies relating to crude oil, bitumen, natural gas, LNG, NGLs and carbon pricing, including the imposition of price caps; regulation or taxation; and other political, economic or diplomatic developments, including as a result of any ongoing military conflict, including the conflicts in Ukraine and the Middle East.
Volatility in the commodity futures markets.
Changes in tax and other laws, regulations (including alternative energy mandates) or royalty rules applicable to our business.
Competition and consolidation in the oil and gas E&P industry, including competition for personnel and equipment.
Any limitations on our access to capital or increase in our cost of capital, including as a result of illiquidity or uncertainty in domestic or international financial markets or investment sentiment, including as a result of increased societal attention to and efforts to address climate change.
Our inability to execute, or delays in the completion of, the Marathon Oil acquisition or any other asset dispositions or acquisitions we elect to pursue.
Potential failure to obtain, or delays in obtaining, any necessary regulatory approvals, consents or authorizations for the Marathon Oil acquisition or for any other pending or future asset dispositions or acquisitions, or that such approvals, consents or authorizations for such disposition or acquisition may be subject to conditions neither we nor Marathon Oil anticipated or may require modification to the terms of the transactions or the operation of our remaining business.
Our or Marathon Oil’s inability to receive other requisite approvals for the Marathon Oil acquisition, including the approval of Marathon Oil stockholders, the satisfaction of other closing conditions on a timely basis or at all or the failure of the Marathon Oil acquisition to close for any other reason or to close on anticipated terms, including the anticipated tax treatment.
Potential disruption of our operations as a result of the Marathon Oil acquisition or other pending or future asset dispositions or acquisitions, including the diversion of management time and attention.
Our inability to realize anticipated cost savings and capital expenditure reductions, including our inability to achieve the expected benefits and synergies from the Marathon Oil acquisition in a timely manner, or at all.
Our inability to successfully integrate Marathon Oil’s business and technologies, which may result in the combined company not operating as effectively and efficiently as expected.
Unanticipated difficulties or expenditures relating to the Marathon Oil acquisition.
Negative effects of the announcement, pendency or completion of the Marathon Oil acquisition on our or Marathon Oil’s business relationships and business operations generally.
Our inability to deploy the net proceeds from any asset dispositions that are pending or that we elect to undertake in the future in the manner and timeframe we currently anticipate, if at all.
49
ConocoPhillips      2024 Q2 10-Q

The operation and financing of our joint ventures.
The ability of our customers and other contractual counterparties to satisfy their obligations to us, including our ability to collect payments when due from the government of Venezuela or PDVSA.
The inadequacy of storage capacity for our products, and ensuing curtailments, whether voluntary or involuntary, required to mitigate this physical constraint.
The risk that we or Marathon Oil will be unable to retain and hire key personnel.
Uncertainty as to the long-term value of our common stock.
The factors generally described in Part I—Item 1A in our 2023 Annual Report on Form 10-K and any additional risks described in our other filings with the SEC.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk
Information about market risks for the six months ended June 30, 2024 does not differ materially from that discussed under Item 7A in our 2023 Annual Report on Form 10-K.

Item 4.    Controls and Procedures
We maintain disclosure controls and procedures designed to ensure information required to be disclosed in reports we file or submit under the Securities Exchange Act of 1934, as amended (the Act), is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms, and that such information is accumulated and communicated to management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. At June 30, 2024, with the participation of our management, our Chairman and Chief Executive Officer (principal executive officer) and our Executive Vice President and Chief Financial Officer (principal financial officer) carried out an evaluation, pursuant to Rule 13a-15(b) of the Act, of ConocoPhillips’ disclosure controls and procedures (as defined in Rule 13a-15(e) of the Act). Based upon that evaluation, our Chairman and Chief Executive Officer and our Executive Vice President and Chief Financial Officer concluded our disclosure controls and procedures were operating effectively at June 30, 2024.
In the third quarter of 2023, we began a multi-year implementation of an updated global enterprise resource planning system (ERP). As a result, we have made corresponding changes to our business processes and information systems, updating applicable internal controls over financial reporting where necessary. As the phased implementation of the ERP system progresses, we expect to continue to modify or change certain processes and procedures which may result in further changes to our internal controls over financial reporting.

There have been no other changes in our internal control over financial reporting, as defined in Rule 13a-15(f) of the Act, in the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PART II. Other Information
Item 1.    Legal Proceedings

ConocoPhillips has elected to use a $1 million threshold for disclosing certain proceedings arising under federal, state or local environmental laws when a governmental authority is a party. ConocoPhillips believes proceedings under this threshold are not material to ConocoPhillips' business and financial condition. Applying this threshold, there are no such proceedings to disclose for the quarter ended June 30, 2024. See Note 8 for information regarding other legal and administrative proceedings.
ConocoPhillips      2024 Q2 10-Q
50

Item 1A.    Risk Factors
Other than the risk factors set forth below, there have been no material changes to the risk factors disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

Risks Related to the Proposed Acquisition of Marathon Oil

Our ability to complete the Marathon Oil acquisition is subject to various closing conditions, including approval by Marathon Oil stockholders and regulatory clearances, which may impose conditions that could adversely affect us or cause the acquisition not to be completed.
On May 28, 2024, we entered into the Merger Agreement to acquire Marathon Oil. The Marathon Oil acquisition is subject to a number of conditions to closing as specified in the Merger Agreement. These closing conditions include, among others:
The receipt of the required approval from Marathon Oil stockholders;
The expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the HSR Act) and certain non-U.S. antitrust approvals; and
The absence of any governmental order or law that makes consummation of the Marathon Oil acquisition illegal or otherwise prohibited.
On July 11, 2024, both ConocoPhillips and Marathon Oil each received a request for additional information and documentary materials (Second Request) from the Federal Trade Commission (FTC) in connection with the FTC's review of the merger. Issuance of the Second Request extends the waiting period imposed by the HSR Act until 30 days after both companies have substantially complied with the Second Request, unless that period is terminated sooner by the FTC.
No assurance can be given that the required stockholder approval and regulatory clearances be obtained or that the other required conditions to closing will be satisfied, and, if all required approvals and clearances are obtained and the required conditions are satisfied, no assurance can be given as to the terms, conditions and timing of such approvals and clearances, including whether any required conditions will materially adversely affect the combined company following the acquisition. Any delay in completing the Marathon Oil acquisition could cause the combined company not to achieve, or to be delayed in achieving, some or all of the expected benefits and synergies from the acquisition. We can provide no assurance that these conditions will not result in the abandonment or delay of the acquisition. The occurrence of any of these events individually or in combination could have a material adverse effect on our results of operations and the trading price of our common stock.

The termination of the Merger Agreement could negatively impact our business.
If the Marathon Oil acquisition is not completed for any reason, including as a result of a failure to obtain the required approval from Marathon Oil stockholders, our ongoing business may be adversely affected and, without realizing any of the expected benefits of having completed the Marathon Oil acquisition, we would be subject to a number of
risks, including the following:
We may experience negative reactions from the financial markets, including negative impacts on our stock price;
We may experience negative reactions from our commercial and vendor partners and employees; and
Despite our rights to receive termination fees under certain circumstances, we may be required to pay certain costs relating to the Marathon Oil acquisition, such as financial advisory, legal, financing and accounting costs and associated fees and expenses, whether or not the Marathon Oil acquisition is completed, and such termination fees, if any, we receive may be insufficient to cover all such expenses.

Whether or not the Marathon Oil acquisition is completed, the announcement and pendency of the Marathon Oil acquisition could cause disruptions in our business, which could have an adverse effect on our business and financial results.
Whether or not the Marathon Oil acquisition is completed, the announcement and pendency of the Marathon Oil acquisition could cause disruptions in our business. Specifically:
Our and Marathon Oil’s current and prospective employees will experience uncertainty about their future roles with the combined company, which might adversely affect the two companies’ abilities to retain key managers and other employees;
51
ConocoPhillips      2024 Q2 10-Q

Uncertainty regarding the completion of the Marathon Oil acquisition may cause our and Marathon Oil’s commercial and vendor partners or others that deal with us or Marathon Oil to delay or defer certain business decisions or to decide to seek to terminate, change or renegotiate their relationships with us or Marathon Oil, which could negatively affect our respective revenues, earnings and cash flows; and
The attention of our and Marathon Oil’s management may be directed toward the completion of the Marathon Oil acquisition, as well as integration planning, which could otherwise have been devoted to day-to-day operations or to other opportunities that may have been beneficial to our business.

We have and will continue to divert significant management resources in an effort to complete the Marathon Oil acquisition and are subject to restrictions contained in the Merger Agreement on the conduct of our business. If the Marathon Oil acquisition is not completed, we will have incurred significant costs, including the diversion of management resources, for which we will have received little or no benefit.

The market value of our common stock could decline if large amounts of our common stock are sold
following the Marathon Oil acquisition.
If the Marathon Oil acquisition is consummated, ConocoPhillips will issue shares of ConocoPhillips common stock to former Marathon Oil stockholders. Former Marathon Oil stockholders may decide not to hold the shares of ConocoPhillips common stock that they will receive in the Marathon Oil acquisition, and ConocoPhillips stockholders may decide to reduce their investment in ConocoPhillips as a result of the changes to ConocoPhillips’ investment profile as a result of the Marathon Oil acquisition. Other Marathon Oil stockholders, such as funds with limitations on their permitted holdings of stock in individual issuers, may be required to sell the shares of ConocoPhillips common stock that they receive in the Marathon Oil acquisition. Such sales of ConocoPhillips common stock could have the effect of depressing the market price for ConocoPhillips common stock.

Combining our business with Marathon Oil’s may be more difficult, costly or time-consuming than expected and
the combined company may fail to achieve the expected benefits and synergies of the Marathon Oil acquisition, which may adversely affect the combined company’s business results and negatively affect the value of the combined company’s common stock.
The success of the Marathon Oil acquisition will depend on, among other things, the ability of the two companies to combine their businesses in a manner that facilitates growth opportunities and realizes expected cost savings. The combined company may encounter difficulties in integrating our and Marathon Oil’s businesses and realizing the expected benefits and synergies of the Marathon Oil acquisition. If the combined company is not able to successfully achieve these objectives, the anticipated benefits of the Marathon Oil acquisition may not be realized fully, or at all, or may take longer to realize than expected.
The Marathon Oil acquisition involves the combination of two companies which currently operate, and until the completion of the Marathon Oil acquisition will continue to operate, as independent public companies. There can be no assurances that our respective businesses can be integrated successfully. It is possible that the integration process could result in the loss of key employees from both companies; the loss of commercial and vendor partners; the disruption of our, Marathon Oil’s or both companies’ ongoing businesses; inconsistencies in standards, controls, procedures and policies; unexpected integration issues; higher than expected integration costs and an overall post-completion integration process that takes longer than originally anticipated. The combined company will be required to devote management attention and resources to integrating its business practices and operations, and prior to the Marathon Oil acquisition, management attention and resources will be required to plan for such integration.
An inability to realize the full extent of the anticipated benefits of the Marathon Oil acquisition and the other transactions contemplated by the Merger Agreement, as well as any delays encountered in the integration process, could have an adverse effect upon the revenues, level of expenses and operating results of the combined company, which may adversely affect the value of the common stock of the combined company.
In addition, the actual integration may result in additional and unforeseen expenses, and the anticipated benefits of the integration plan may not be realized. There are a large number of processes, policies, procedures, operations and technologies and systems that must be integrated in connection with the Marathon Oil acquisition and the integration of Marathon Oil’s business. Although we expect that the elimination of duplicative costs, strategic benefits, and additional income, as well as the realization of other efficiencies related to the integration of the business, may offset incremental transaction and acquisition-related costs over time, any net benefit may not be achieved in the near term or at all. If we and Marathon Oil are not able to adequately address integration challenges, we may be unable to successfully integrate operations or realize the anticipated benefits of the integration of the two companies.
ConocoPhillips      2024 Q2 10-Q
52

Item 2.    Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities




Millions of Dollars
Period
Total Number of
 Shares
Purchased*
Average Price Paid
 per Share
Total Number of
 Shares Purchased as
Part of Publicly
Announced Plans or
 Programs
Approximate Dollar
Value of Shares That
May Yet Be Purchased
Under the Plans or
 Programs
April 1 - 30, 20242,452,769 $130.20 2,452,769 $14,546 
May 1 - 31, 20243,505,683 121.44 3,505,683 14,121 
June 1 - 30, 20242,454,730 112.36 2,454,730 13,845 
8,413,182 8,413,182 
*There were no repurchases of common stock from company employees in connection with the company's broad-based employee incentive plans.

In late 2016, we initiated our current share repurchase program. As of October 2022, we had announced a total authorization to repurchase up to $45 billion of our common stock. As of June 30, 2024, we had repurchased $31.2 billion of shares. Repurchases are made at management’s discretion, at prevailing prices, subject to market conditions and other factors. Except as limited by applicable legal requirements, repurchases may be increased, decreased or discontinued at any time without prior notice. Shares of stock repurchased under the plan are held as treasury shares. In connection with the pending transaction with Marathon Oil, share repurchases are restricted pursuant to SEC regulations; however, we expect such restrictions will end during the third quarter of 2024. See Part I—Item 1A—Risk Factors –Our ability to execute our capital return program is subject to certain considerations” in our 2023 Annual Report on Form 10-K.

Item 5.    Other Information

Insider Trading Arrangements
During the three-month period ended June 30, 2024, no officer or director of the company adopted or terminated any Rule 10b5-1 trading arrangement or non-Rule 10b5-1 trading arrangement.
53
ConocoPhillips      2024 Q2 10-Q

Item 6.     Exhibits
2.1
101.INS*
Inline XBRL Instance Document.
101.SCH*
Inline XBRL Schema Document.
101.CAL*
Inline XBRL Calculation Linkbase Document.
101.LAB*
Inline XBRL Labels Linkbase Document.
101.PRE*
Inline XBRL Presentation Linkbase Document.
101.DEF*
Inline XBRL Definition Linkbase Document.
104*
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).
* Filed herewith.
**Furnished herewith.
ConocoPhillips      2024 Q2 10-Q
54

Signature
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 thereunto duly authorized.
CONOCOPHILLIPS
/s/ Christopher P. Delk
Christopher P. Delk
Vice President, Controller
and General Tax Counsel
August 1, 2024
55
ConocoPhillips      2024 Q2 10-Q