UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

ý   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2003

 

o   TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from              to             

 

Commission file no. 333-59054-01

 

Chevron Phillips Chemical Company LLC

(Exact name of the Registrant as specified in its charter)

 

 

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   o       No   ý

 

Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Act).

 

Yes   o      No   ý

 

 

Chevron Phillips Chemical Company LLC

Index

 

			Page
Part I.	Financial Information (Unaudited)
	Item 1.	Financial Statements
		Condensed Consolidated Statement of Operations for the three and six months ended June 30, 2003 and 2002	3
		Condensed Consolidated Balance Sheet at June 30, 2003 and December 31, 2002	4
		Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2003 and 2002	5
		Notes to Condensed Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
	Item 3.	Quantitative and Qualitative Disclosures about Market Risk	25
	Item 4.	Controls and Procedures	25
Part II.	Other Information
	Item 1.	Legal Proceedings	25
	Item 5.	Other Information	26
	Item 6.	Exhibits and Reports on Form 8-K	26

 

2

 

PART I.     FINANCIAL INFORMATION

 

ITEM 1.               Financial Statements

 

Chevron Phillips Chemical Company LLC

Condensed Consolidated Statement of Operations

(Unaudited)

 

			Three months ended June 30,						Six months ended June 30,
Millions			2003			2002			2003			2002
Revenue
Net sales			$	1,701		$	1,387		$	3,497		$	2,534
Equity in income of affiliates, net			16			9			22			8
Other income			13			13			31			27
Total revenue			1,730			1,409			3,550			2,569
Costs and Expenses
Cost of goods sold			1,539			1,272			3,314			2,335
Selling, general and administrative			127			98			227			189
Research and development			12			13			23			24
Total costs and expenses			1,678			1,383			3,564			2,548
Income (Loss) Before Interest and Taxes			52			26			(14		)	21
Interest income			3			2			4			4
Interest expense			(19		)	(14		)	(35		)	(32		)
Income (Loss) Before Taxes			36			14			(45		)	(7		)
Income taxes			(1		)	(3		)	(2		)	(4		)
Net Income (Loss)			35			11			(47		)	(11		)
Distributions on members’ preferred interests			(5		)	—			(11		)	—
Income (Loss) Attributed to Members’ Interests			$	30		$	11		$	(58	)	$	(11	)

 

See Notes to Condensed Consolidated Financial Statements.

 

3

 

Chevron Phillips Chemical Company LLC

Condensed Consolidated Balance Sheet

(Unaudited)

 

Millions			June 30, 2003			December 31, 2002
ASSETS
Current assets
Cash and cash equivalents			$	65		$	39
Accounts receivable, net			870			797
Inventories			679			702
Other current assets			16			23
Total current assets			1,630			1,561
Property, plant and equipment, net			3,901			3,950
Investments in and advances to affiliates			612			515
Other assets and deferred charges			71			83
Total Assets			$	6,214		$	6,109
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