Supplementary Information - Condensed Consolidating Financial Information

12 Months Ended

Dec. 31, 2018

Supplementary Information - Condensed Consolidating Financial Information [Abstract]

Supplementary Information - Condensed Consolidating Financial Information

Supplementary Information—Condensed Consolidating Financial Information

We have various cross guarantees among 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 condensed consolidating financial information presents the results of operations, financial position and cash flows for:

ConocoPhillips, ConocoPhillips Company and Burlington Resources LLC (in each case, reflecting investments in subsidiaries utilizing the equity method of accounting).
All other nonguarantor subsidiaries of ConocoPhillips.
The consolidating adjustments necessary to present ConocoPhillips’ results on a consolidated basis.

In December 2018, ConocoPhillips Canada Funding Company I’s guaranteed, publicly held debt securities were assumed by Burlington Resources LLC. The assumption did not significantly change the nature of the outstanding debt or the terms of the parental guarantees, which remain full and unconditional, as well as joint and several. The assumption did not impact our consolidated financial position, results of operations or cash flows. Financial information for ConocoPhillips Canada Funding Company I is presented in the “All Other Subsidiaries” column of our condensed consolidating financial information. The prior year comparative periods have been restated to reflect the current period condensed consolidating financial information presentation.

In 2016, ConocoPhillips received a $2.3 billion return of capital from ConocoPhillips Company to settle certain accumulated intercompany balances. The transaction had no impact on our consolidated financial statements.

In 2016, ConocoPhillips Canada Funding Company I repaid $1.25 billion of external debt. This transaction was reflected in the full-year 2016 condensed consolidating financial statements.

In 2017, ConocoPhillips Company received a $9.8 billion return of capital and a $1.4 billion loan repayment from nonguarantor subsidiaries to settle certain accumulated intercompany balances. These transactions had no impact on our consolidated financial statements.

In 2017, ConocoPhillips received a $7.8 billion return of capital and a $0.2 billion return of earnings from ConocoPhillips Company to settle certain accumulated intercompany balances. These transactions had no impact on our consolidated financial statements.

In 2018, ConocoPhillips Company received a $4.8 billion return of earnings and a $2.4 billion loan repayment from nonguarantor subsidiaries to settle certain accumulated intercompany balances. These transactions had no impact on our consolidated financial statements.

In 2018, ConocoPhillips received a $3.5 billion return of capital and a $1.0 billion return of earnings from ConocoPhillips Company to settle certain accumulated intercompany balances. These transactions had no impact on our consolidated financial statements.

This condensed consolidating financial information should be read in conjunction with the accompanying consolidated financial statements and notes.

	Millions of Dollars
	Year Ended December 31, 2018
Income Statement	ConocoPhillips		ConocoPhillips Company	BurlingtonResources LLC	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated

Revenues and Other Income
Sales and other operating revenues	$	-	16,113	-	20,304	-	36,417
Equity in earnings of affiliates		6,503	8,142	1,953	1,072	(16,596)	1,074
Gain on dispositions		-	239	-	824	-	1,063
Other income (loss)		-	(384)	-	557	-	173
Intercompany revenues		35	162	43	5,627	(5,867)	-
Total Revenues and Other Income		6,538	24,272	1,996	28,384	(22,463)	38,727

Costs and Expenses
Purchased commodities		-	14,591	-	5,131	(5,428)	14,294
Production and operating expenses		-	1,023	4	4,245	(59)	5,213
Selling, general and administrative expenses		8	289	-	109	(5)	401
Exploration expenses		-	170	-	199	-	369
Depreciation, depletion and amortization		-	584	-	5,372	-	5,956
Impairments		-	(10)	-	37	-	27
Taxes other than income taxes		-	143	-	905	-	1,048
Accretion on discounted liabilities		-	17	-	336	-	353
Interest and debt expense		295	613	46	156	(375)	735
Foreign currency transaction (gains) losses		46	(12)	116	(167)	-	(17)
Other expenses		-	349	6	20	-	375
Total Costs and Expenses		349	17,757	172	16,343	(5,867)	28,754
Income before income taxes		6,189	6,515	1,824	12,041	(16,596)	9,973
Income tax provision (benefit)		(68)	12	(41)	3,765	-	3,668
Net income		6,257	6,503	1,865	8,276	(16,596)	6,305
Less: net income attributable to noncontrolling interests		-	-	-	(48)	-	(48)
Net Income Attributable to ConocoPhillips	$	6,257	6,503	1,865	8,228	(16,596)	6,257

Comprehensive Income Attributable to ConocoPhillips	$	5,654	5,900	1,364	7,961	(15,225)	5,654

Income Statement	Year Ended December 31, 2017*

Revenues and Other Income
Sales and other operating revenues	$	-	12,433	-	16,673	-	29,106
Equity in earnings (losses) of affiliates		(454)	2,047	886	770	(2,477)	772
Gain on dispositions		-	916	-	1,261	-	2,177
Other income		2	35	-	492	-	529
Intercompany revenues		48	291	13	3,369	(3,721)	-
Total Revenues and Other Income		(404)	15,722	899	22,565	(6,198)	32,584

Costs and Expenses
Purchased commodities		-	11,145	-	4,580	(3,250)	12,475
Production and operating expenses		-	813	-	4,366	(17)	5,162
Selling, general and administrative expenses		9	342	-	82	(6)	427
Exploration expenses		-	542	-	392	-	934
Depreciation, depletion and amortization		-	855	-	5,990	-	6,845
Impairments		-	1,159	-	5,442	-	6,601
Taxes other than income taxes		-	140	1	668	-	809
Accretion on discounted liabilities		-	32	-	330	-	362
Interest and debt expense		420	664	52	410	(448)	1,098
Foreign currency transaction (gains) losses		(43)	11	(137)	204	-	35
Other expenses		267	190	-	(6)	-	451
Total Costs and Expenses		653	15,893	(84)	22,458	(3,721)	35,199
Income (Loss) before income taxes		(1,057)	(171)	983	107	(2,477)	(2,615)
Income tax provision (benefit)		(202)	283	(337)	(1,566)	-	(1,822)
Net income (loss)		(855)	(454)	1,320	1,673	(2,477)	(793)
Less: net income attributable to noncontrolling interests		-	-	-	(62)	-	(62)
Net Income (Loss) Attributable to ConocoPhillips	$	(855)	(454)	1,320	1,611	(2,477)	(855)

Comprehensive Income (Loss) Attributable to ConocoPhillips	$	(180)	221	1,672	2,275	(4,168)	(180)
*Certain amounts have been reclassified to conform to the current-period presentation resulting from the adoption of ASU No. 2017-07. See Note 2—Changes in Accounting Principles, for additional information.See Notes to Consolidated Financial Statements.

	Millions of Dollars
	Year Ended December 31, 2016*
Income Statement		ConocoPhillips	ConocoPhillips Company	BurlingtonResources LLC	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated

Revenues and Other Income
Sales and other operating revenues	$	-	10,352	-	13,341	-	23,693
Equity in earnings (losses) of affiliates		(3,351)	(1,051)	(2,270)	61	6,663	52
Gain on dispositions		-	120	-	240	-	360
Other income (loss)		1	(11)	-	265	-	255
Intercompany revenues		88	277	21	2,995	(3,381)	-
Total Revenues and Other Income		(3,262)	9,687	(2,249)	16,902	3,282	24,360

Costs and Expenses
Purchased commodities		-	9,144	-	3,562	(2,712)	9,994
Production and operating expenses		-	754	1	5,130	(242)	5,643
Selling, general and administrative expenses		8	331	-	140	(6)	473
Exploration expenses		-	1,229	-	683	-	1,912
Depreciation, depletion and amortization		-	1,178	-	7,884	-	9,062
Impairments		-	67	-	72	-	139
Taxes other than income taxes		-	162	-	577	-	739
Accretion on discounted liabilities		-	46	-	379	-	425
Interest and debt expense		506	622	37	501	(421)	1,245
Foreign currency transaction (gains) losses		(19)	2	(110)	108	-	(19)
Other expenses		-	277	-	-	-	277
Total Costs and Expenses		495	13,812	(72)	19,036	(3,381)	29,890
Loss before income taxes		(3,757)	(4,125)	(2,177)	(2,134)	6,663	(5,530)
Income tax benefit		(142)	(774)	(92)	(963)	-	(1,971)
Net loss		(3,615)	(3,351)	(2,085)	(1,171)	6,663	(3,559)
Less: net income attributable to noncontrolling interests		-	-	-	(56)	-	(56)
Net Loss Attributable to ConocoPhillips	$	(3,615)	(3,351)	(2,085)	(1,227)	6,663	(3,615)

Comprehensive Loss Attributable to ConocoPhillips	$	(3,561)	(3,297)	(1,641)	(1,149)	6,087	(3,561)
*Certain amounts have been reclassified to conform to the current-period presentation resulting from the adoption of ASU No. 2017-07. See Note 2—Changes in Accounting Principles, for additional information.See Notes to Consolidated Financial Statements.

		Millions of Dollars
		At December 31, 2018
Balance Sheet		ConocoPhillips	ConocoPhillips Company	BurlingtonResources LLC	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated

Assets
Cash and cash equivalents	$	-	1,428	-	4,487	-	5,915
Short-term investments		-	-	-	248	-	248
Accounts and notes receivable		28	5,646	78	6,707	(8,392)	4,067
Investment in Cenovus Energy		-	1,462	-	-	-	1,462
Inventories		-	184	-	823	-	1,007
Prepaid expenses and other current assets		1	267	-	307	-	575
Total Current Assets		29	8,987	78	12,572	(8,392)	13,274
Investments, loans and long-term receivables*		29,942	47,062	15,199	16,926	(99,465)	9,664
Net properties, plants and equipment		-	4,367	-	41,796	(465)	45,698
Other assets		4	642	227	1,269	(798)	1,344
Total Assets	$	29,975	61,058	15,504	72,563	(109,120)	69,980

Liabilities and Stockholders’ Equity
Accounts payable	$	-	5,098	76	7,113	(8,392)	3,895
Short-term debt		(3)	12	13	99	(9)	112
Accrued income and other taxes		-	85	-	1,235	-	1,320
Employee benefit obligations		-	638	-	171	-	809
Other accruals		85	587	35	552	-	1,259
Total Current Liabilities		82	6,420	124	9,170	(8,401)	7,395
Long-term debt		3,791	7,151	2,143	2,249	(478)	14,856
Asset retirement obligations and accrued environmental costs		-	415	-	7,273	-	7,688
Deferred income taxes		-	-	-	5,819	(798)	5,021
Employee benefit obligations		-	1,340	-	424	-	1,764
Other liabilities and deferred credits*		725	9,277	839	8,126	(17,775)	1,192
Total Liabilities		4,598	24,603	3,106	33,061	(27,452)	37,916
Retained earnings		27,512	18,511	1,113	9,764	(22,890)	34,010
Other common stockholders’ equity		(2,135)	17,944	11,285	29,613	(58,778)	(2,071)
Noncontrolling interests		-	-	-	125	-	125
Total Liabilities and Stockholders’ Equity	$	29,975	61,058	15,504	72,563	(109,120)	69,980

Balance Sheet	At December 31, 2017

Assets
Cash and cash equivalents	$	-	234	3	6,088	-	6,325
Short-term investments		-	-	-	1,873	-	1,873
Accounts and notes receivable		24	2,214	294	4,910	(3,122)	4,320
Investment in Cenovus Energy		-	1,899	-	-	-	1,899
Inventories		-	163	-	897	-	1,060
Prepaid expenses and other current assets		1	277	24	763	(30)	1,035
Total Current Assets		25	4,787	321	14,531	(3,152)	16,512
Investments, loans and long-term receivables*		29,400	47,974	12,273	14,547	(94,134)	10,060
Net properties, plants and equipment		-	4,230	-	41,930	(477)	45,683
Other assets		15	1,146	672	1,043	(1,769)	1,107
Total Assets	$	29,440	58,137	13,266	72,051	(99,532)	73,362

Liabilities and Stockholders’ Equity
Accounts payable	$	-	3,094	264	3,794	(3,122)	4,030
Short-term debt		(5)	2,505	7	77	(9)	2,575
Accrued income and other taxes		-	65	-	973	-	1,038
Employee benefit obligations		-	554	-	171	-	725
Other accruals		85	314	17	642	(29)	1,029
Total Current Liabilities		80	6,532	288	5,657	(3,160)	9,397
Long-term debt		3,787	9,321	500	3,998	(478)	17,128
Asset retirement obligations and accrued environmental costs		-	432	-	7,199	-	7,631
Deferred income taxes		-	-	-	6,490	(1,208)	5,282
Employee benefit obligations		-	1,335	-	519	-	1,854
Other liabilities and deferred credits*		1,528	5,229	1,446	10,135	(17,069)	1,269
Total Liabilities		5,395	22,849	2,234	33,998	(21,915)	42,561
Retained earnings		22,892	13,342	(753)	7,669	(13,759)	29,391
Other common stockholders’ equity		1,153	21,946	11,785	30,190	(63,858)	1,216
Noncontrolling interests		-	-	-	194	-	194
Total Liabilities and Stockholders’ Equity	$	29,440	58,137	13,266	72,051	(99,532)	73,362
*Includes intercompany loans.

	Millions of Dollars
	Year Ended December 31, 2018
Statement of Cash Flows	ConocoPhillips		ConocoPhillips Company	BurlingtonResources LLC	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated

Cash Flows From Operating Activities
Net Cash Provided by Operating Activities	$	4,317	4,183	2,764	14,132	(12,462)	12,934

Cash Flows From Investing Activities
Capital expenditures and investments		-	(980)	(603)	(5,777)	610	(6,750)
Working capital changes associated with investing activities		-	(110)	-	42	-	(68)
Proceeds from asset dispositions		-	502	-	705	(125)	1,082
Net sales of short-term investments		-	-	-	1,620	-	1,620
Long-term advances/loans—related parties		-	(126)	(173)	(10)	309	-
Collection of advances/loans—related parties		589	3,432	212	129	(4,243)	119
Intercompany cash management		(803)	3,504	(2,150)	(551)	-	-
Other		-	151	-	3	-	154
Net Cash Provided by (Used in) Investing Activities		(214)	6,373	(2,714)	(3,839)	(3,449)	(3,843)

Cash Flows From Financing Activities
Issuance of debt		-	10	-	299	(309)	-
Repayment of debt		-	(4,865)	(53)	(4,320)	4,243	(4,995)
Issuance of company common stock		254	-	-	-	(133)	121
Repurchase of company common stock		(2,999)	-	-	-	-	(2,999)
Dividends paid		(1,363)	(1,043)	-	(6,057)	7,100	(1,363)
Other		5	(3,468)	-	(1,670)	5,010	(123)
Net Cash Used in Financing Activities		(4,103)	(9,366)	(53)	(11,748)	15,911	(9,359)

Effect of Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash		-	4	-	(121)	-	(117)

Net Change in Cash, Cash Equivalents and Restricted Cash		-	1,194	(3)	(1,576)	-	(385)
Cash, cash equivalents and restricted cash at beginning of period*		-	234	3	6,299	-	6,536
Cash, Cash Equivalents and Restricted Cash at End of Period	$	-	1,428	-	4,723	-	6,151

Statement of Cash Flows	Year Ended December 31, 2017

Cash Flows From Operating Activities
Net Cash Provided by Operating Activities	$	71	1,183	2,971	5,904	(3,052)	7,077

Cash Flows From Investing Activities
Capital expenditures and investments		-	(1,663)	(4,351)	(3,795)	5,218	(4,591)
Working capital changes associated with investing activities		-	194	-	(62)	-	132
Proceeds from asset dispositions		7,765	11,146	12,178	12,796	(30,025)	13,860
Net purchases of short-term investments		-	-	-	(1,790)	-	(1,790)
Long-term advances/loans—related parties		-	(214)	(65)	(20)	299	-
Collection of advances/loans—related parties		658	1,527	389	2,196	(4,655)	115
Intercompany cash management		1,151	101	(1,341)	89	-	-
Other		-	(8)	-	44	-	36
Net Cash Provided by Investing Activities		9,574	11,083	6,810	9,458	(29,163)	7,762

Cash Flows From Financing Activities
Issuance of debt		-	20	-	279	(299)	-
Repayment of debt		(5,459)	(4,411)	-	(2,661)	4,655	(7,876)
Issuance of company common stock		115	-	-	-	(178)	(63)
Repurchase of company common stock		(3,000)	-	-	-	-	(3,000)
Dividends paid		(1,305)	(235)	-	(2,995)	3,230	(1,305)
Other		4	(7,765)	(9,781)	(7,377)	24,807	(112)
Net Cash Used in Financing Activities		(9,645)	(12,391)	(9,781)	(12,754)	32,215	(12,356)

Effect of Exchange Rate Changes on Cash and Cash Equivalents		-	1	(2)	233	-	232

Net Change in Cash and Cash Equivalents		-	(124)	(2)	2,841	-	2,715
Cash and cash equivalents at beginning of period		-	358	5	3,247	-	3,610
Cash and Cash Equivalents at End of Period	$	-	234	3	6,088	-	6,325
*Restated to include $211 million of restricted cash at January 1, 2018. See Note 2—Changes in Accounting Principles for additional information relating to the adoption of ASU No. 2016-18.
Restricted cash totaling $236 million is included in the "Other assets" line of our Consolidated Balance Sheet as of December 31, 2018.

	Millions of Dollars
	Year Ended December 31, 2016
Statement of Cash Flows	ConocoPhillips		ConocoPhillips Company	BurlingtonResources LLC	All Other Subsidiaries	Consolidating Adjustments	Total Consolidated

Cash Flows From Operating Activities
Net Cash Provided by (Used in) Operating Activities	$	(306)	(322)	799	5,902	(1,670)	4,403

Cash Flows From Investing Activities
Capital expenditures and investments		-	(989)	(1,714)	(4,281)	2,115	(4,869)
Working capital changes associated with investing activities		-	(126)	-	(205)	-	(331)
Proceeds from asset dispositions		2,300	266	-	1,114	(2,394)	1,286
Net purchases of short-term investments		-	-	-	(51)	-	(51)
Long-term advances/loans—related parties		-	(812)	-	-	812	-
Collection of advances/loans—related parties		-	391	-	272	(555)	108
Intercompany cash management		(2,214)	1,433	912	(131)	-	-
Other		-	1	-	(3)	-	(2)
Net Cash Provided by (Used in) Investing Activities		86	164	(802)	(3,285)	(22)	(3,859)

Cash Flows From Financing Activities
Issuance of debt		1,600	2,994	-	812	(812)	4,594
Repayment of debt		(150)	(164)	-	(2,492)	555	(2,251)
Issuance of company common stock		148	-	-	-	(211)	(63)
Repurchase of company common stock		(126)	-	-	-	-	(126)
Dividends paid		(1,253)	-	-	(1,881)	1,881	(1,253)
Other		1	(2,315)	-	1,898	279	(137)
Net Cash Provided by (Used in) Financing Activities		220	515	-	(1,663)	1,692	764

Effect of Exchange Rate Changes on Cash and Cash Equivalents		-	(3)	2	(65)	-	(66)

Net Change in Cash and Cash Equivalents		-	354	(1)	889	-	1,242
Cash and cash equivalents at beginning of period		-	4	6	2,358	-	2,368
Cash and Cash Equivalents at End of Period	$	-	358	5	3,247	-	3,610