CONOCOPHILLIPS - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - July 27, 2011

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EX-99.1 - EXHIBIT 99.1 - CONOCOPHILLIPSa6807065ex99_1.htm

Exhibit 99.2

CONSOLIDATED INCOME STATEMENT
                   
Millions of Dollars
2010   2011  

 

1st Qtr

   

2nd Qtr

   

3rd Qtr

   

4th Qtr

   

YTD

 

1st Qtr

   

2nd Qtr

   

3rd Qtr

 

4th Qtr

 

YTD

 
 

Revenues and Other Income

Sales and other operating revenues* 44,821 45,686 47,208 51,726 189,441 56,530 65,627 122,157
Equity in earnings of affiliates 868 1,088 1,004 173 3,133 1,017 1,160 2,177
Gain on dispositions** 24 3,249 1,398 1,132 5,803 616 78 694
Other income**   49     104     (61 )   186     278   84     96             180  
Total Revenues and Other Income   45,762     50,127     49,549     53,217     198,655   58,247     66,961             125,208  
 
Costs and Expenses
Purchased crude oil, natural gas and products 31,521 32,088 34,051 38,091 135,751 42,376 50,133 92,509
Production and operating expenses 2,527 2,619 2,583 2,906 10,635 2,628 2,606 5,234
Selling, general and administrative expenses 444 438 493 630 2,005 499 514 1,013
Exploration expenses 383 213 252 307 1,155 176 264 440
Depreciation, depletion and amortization 2,318 2,280 2,246 2,216 9,060 2,070 2,075 4,145
Impairments 91 1,532 59 98 1,780 - 2 2
Taxes other than income taxes* 4,037 4,247 4,227 4,282 16,793 4,364 4,830 9,194
Accretion on discounted liabilities 114 113 110 110 447 112 115 227
Interest and debt expense 301 349 264 273 1,187 262 247 509
Foreign currency transaction (gains) losses   36     54     (10 )   12     92   (36 )   (17 )           (53 )
Total Costs and Expenses   41,772     43,933     44,275     48,925     178,905   52,451     60,769             113,220  
Income before income taxes 3,990 6,194 5,274 4,292 19,750 5,796 6,192 11,988
Provision for income taxes   1,878     2,011     2,205     2,239     8,333   2,754     2,773             5,527  
Net Income 2,112 4,183 3,069 2,053 11,417 3,042 3,419 6,461
Less: net income attributable to
noncontrolling interests   (14 )   (19 )   (14 )   (12 )   (59 ) (14 )   (17 )           (31 )
Net Income Attributable to ConocoPhillips   2,098     4,164     3,055     2,041     11,358   3,028     3,402             6,430  
*Includes excise taxes on petroleum products sales: 3,220 3,417 3,544 3,508 13,689 3,382 3,554 6,936
 
 
Net Income Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic 1.41 2.79 2.06 1.40 7.68 2.11 2.43 4.54
Diluted 1.40 2.77 2.05 1.39 7.62 2.09 2.41 4.50
 
Average Common Shares Outstanding (in thousands)
Basic 1,492,861 1,489,814 1,481,522 1,453,532 1,479,330 1,432,285 1,399,473 1,415,788
Diluted   1,503,565     1,501,257     1,493,080     1,465,794     1,491,067   1,445,477     1,412,147             1,428,760  
**2010 has been reclassified to conform to current-year presentation.

SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO CONOCOPHILLIPS BY SEGMENT
   
Millions of Dollars
2010   2011  

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

YTD

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

4th Qtr

YTD

 
 
U.S. E&P 757 536 563 912 2,768 863 817 1,680
International E&P   1,075   3,578   1,001   776   6,430   1,489   1,707       3,196  
Total E&P   1,832   4,114   1,564   1,688   9,198   2,352   2,524       4,876  
 
Midstream   77   61   77   91   306   73   130       203  
 
U.S. R&M 12 782 199 29 1,022 402 692 1,094
International R&M   (16 ) (1,061 ) 69   178   (830 ) 80   74       154  
Total R&M   (4 ) (279 ) 268   207   192   482   766       1,248  
 
LUKOIL Investment 387 529 1,310 277 2,503 239 - 239
 
Chemicals 110 138 132 118 498 193 199 392
 
Emerging Businesses 6 (10 ) (20 ) (35 ) (59 ) (7 ) (14 ) (21 )
 
Corporate and Other (310 ) (389 ) (276 ) (305 ) (1,280 ) (304 ) (203 ) (507 )
                       
Consolidated   2,098   4,164   3,055   2,041   11,358   3,028   3,402       6,430  

Page 1 of 12

SUMMARY OF INCOME (LOSS) BEFORE TAXES BY SEGMENT
                   
Millions of Dollars
2010   2011  

1st Qtr

   

2nd Qtr

   

3rd Qtr

   

4th Qtr

   

YTD

 

1st Qtr

   

2nd Qtr

   

3rd Qtr

 

4th Qtr

 

YTD

 
 
U.S. E&P 1,149 833 879 1,477 4,338 1,362 1,291 2,653
International E&P   2,632     5,145     2,539     2,291     12,607   3,248     3,535             6,783  
Total E&P   3,781     5,978     3,418     3,768     16,945   4,610     4,826             9,436  
 
Midstream   116     94     115     139     464   111     192             303  
 
U.S. R&M 41 1,265 320 46 1,672 685 1,129 1,814
International R&M   (86 )   (1,452 )   76     218     (1,244 ) 114     93             207  
Total R&M   (45 )   (187 )   396     264     428   799     1,222             2,021  
 
LUKOIL Investment 395 546 1,653 424 3,018 362 - 362
 
Chemicals 135 198 182 165 680 260 265 525
 
Emerging Businesses 4 (18 ) (43 ) (56 ) (113 ) (15 ) (25 ) (40 )
 
Corporate and Other (396 ) (417 ) (447 ) (412 ) (1,672 ) (331 ) (288 ) (619 )
                                       
Consolidated   3,990     6,194     5,274     4,292     19,750   5,796     6,192             11,988  

EFFECTIVE TAX RATES
   
2010   2011  
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P 34.0 % 35.7 % 35.8 % 38.3 % 36.2 % 36.6 % 36.7 % 36.7 %
International E&P   58.7 % 30.1 % 60.1 % 65.6 % 48.6 % 53.8 % 51.3 %     52.5 %
Total E&P   51.2 % 30.9 % 53.9 % 54.9 % 45.4 % 48.7 % 47.4 %     48.0 %
 
Midstream   33.6 % 35.1 % 33.9 % 33.8 % 34.1 % 34.2 % 32.3 %     33.0 %
 
U.S. R&M 68.3 % 38.1 % 37.5 % 32.6 % 38.6 % 41.0 % 38.6 % 39.5 %
International R&M   81.4 % 26.9 % 9.2 % 18.3 % 33.3 % 30.7 % 19.4 %     25.6 %
Total R&M   93.3 % -48.7 % 32.1 % 20.8 % 54.0 % 39.5 % 37.2 %     38.1 %
 
LUKOIL Investment 1.8 % 3.3 % 20.8 % 34.7 % 17.1 % 34.0 % - 34.0 %
 
Chemicals 18.5 % 29.8 % 28.0 % 28.5 % 26.8 % 25.8 % 24.9 % 25.3 %
 
Emerging Businesses -25.0 % 50.0 % 55.8 % 35.7 % 47.8 % 53.3 % 44.0 % 47.5 %
 
Corporate and Other 21.7 % 6.5 % 38.5 % 26.0 % 23.4 % 8.2 % 29.5 % 18.1 %
                       
Consolidated   47.1 % 32.5 % 41.8 % 52.2 % 42.2 % 47.5 % 44.8 %     46.1 %

ESTIMATED TAXES PAID
   
Millions of Dollars
2010   2011  

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

YTD

1st Qtr

 

2nd Qtr

 

3rd Qtr

4th Qtr

YTD

 
 
Cash income taxes paid 1,596 2,329 2,097 2,452 8,474 2,722 2,730 5,452
Taxes other than income taxes 4,037 4,247 4,227 4,282 16,793 4,364 4,830 9,194
Less: Excise taxes*   (3,220 ) (3,417 ) (3,544 ) (3,508 ) (13,689 ) (3,382 ) (3,554 )     (6,936 )
Estimated Taxes Paid   2,413   3,159   2,780   3,226   11,578   3,704   4,006       7,710  
*Represents taxes collected by ConocoPhillips and reimbursed to taxing authorities.

Page 2 of 12

SPECIAL ITEMS INCLUDED IN NET INCOME ATTRIBUTABLE TO CONOCOPHILLIPS (AFTER-TAX)
   
Millions of Dollars
2010   2011  

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

YTD

 

1st Qtr

2nd Qtr

 

3rd Qtr

4th Qtr

YTD

 
 

U.S. E&P

Gain (loss) on asset sales - - 32 293 325 151 (1 ) 150
Cancelled projects - - - - - - (54 ) (54 )
Pending claims and settlements   -   (82 ) -   -   (82 ) - -       -  
Total   -   (82 ) 32   293   243   151 (55 )     96  
 
International E&P
Gain (loss) on asset sales - 2,679 - 147 2,826 4 28 32
Impairments - - - (638 ) (638 ) - - -
Cancelled projects (83 ) (2 ) - - (85 ) - - -
Deferred tax adjustment - 40 - - 40 - - -
Pending claims and settlements   -   -   26   32   58   - -       -  
Total   (83 ) 2,717   26   (459 ) 2,201   4 28       32  
 
Total E&P   (83 ) 2,635   58   (166 ) 2,444   155 (27 )     128  
 
Midstream
                       
Total   -   -   -   -   -   - -       -  
 
U.S. R&M
Gain (loss) on asset sales - 116 - - 116 2 26 28
Impairments - (8 ) - - (8 ) - - -
Pending claims and settlements   -   35   -   -   35   - -       -  
Total   -   143   -   -   143   2 26       28  
 
International R&M
Impairments - (1,110 ) - - (1,110 ) - - -
Cancelled projects (25 ) (4 ) - - (29 ) - - -
Severance accrual   -   (28 ) -   -   (28 ) - -       -  
Total   (25 ) (1,142 ) -   -   (1,167 ) - -       -  
 
Total R&M   (25 ) (999 ) -   -   (1,024 ) 2 26       28  
 
LUKOIL Investment
Gain (loss) on asset sales   -   99   874   278   1,251   237 -       237  
Total   -   99   874   278   1,251   237 -       237  
 
Chemicals
                       
Total   -   -   -   -   -   - -       -  
 
Emerging Businesses
                       
Total   -   -   -   -   -   - -       -  
 
Corporate and Other
Pending claims and settlements - (24 ) - - (24 ) - - -
Cancelled projects (2 ) 2 - - - - - -
Premium on early debt retirement   -   -   (114 ) -   (114 ) - -       -  
Total   (2 ) (22 ) (114 ) -   (138 ) - -       -  
 
Total Company   (110 ) 1,713   818   112   2,533   394 (1 )     393  

Page 3 of 12

CASH FLOW INFORMATION
   
Millions of Dollars
2010   2011  

1st Qtr

 

2nd Qtr

 

3rd Qtr

 

4th Qtr

 

YTD

 

1st Qtr

 

2nd Qtr

 

3rd Qtr

4th Qtr

YTD

 
 

Cash Flows from Operating Activities

Net income 2,112 4,183 3,069 2,053 11,417 3,042 3,419 6,461
Depreciation, depletion and amortization 2,318 2,280 2,246 2,216 9,060 2,070 2,075 4,145
Impairments 91 1,532 59 98 1,780 - 2 2
Dry hole costs and leasehold impairments 133 72 122 150 477 50 89 139
Accretion on discounted liabilities 114 113 110 110 447 112 115 227
Deferred taxes (35 ) (508 ) (392 ) 57 (878 ) 87 429 516
Undistributed equity earnings (503 ) (686 ) (453 ) 569 (1,073 ) (523 ) (570 ) (1,093 )
Gain on asset dispositions (24 ) (3,249 ) (1,398 ) (1,132 ) (5,803 ) (616 ) (78 ) (694 )
Other (187 ) (356 ) 322 (28 ) (249 ) (185 ) (67 ) (252 )
Net working capital changes   (979 ) 94   654   2,098   1,867   (2,090 ) 860       (1,230 )
Net Cash Provided by
Operating Activities   3,040   3,475   4,339   6,191   17,045   1,947   6,274       8,221  
 
Cash Flows from Investing Activities
Capital expenditures and investments (2,071 ) (2,009 ) (2,291 ) (3,390 ) (9,761 ) (2,884 ) (2,893 ) (5,777 )
Proceeds from asset dispositions 132 5,811 6,290 3,139 15,372 1,787 162 1,949
Net purchases of short-term investments - - - (982 ) (982 ) (1,170 ) (424 ) (1,594 )
Long-term advances to/collections from
related parties and other investments   (218 ) 38   102   114   36   56   472       528  
Net Cash Provided by (Used in) Investing Activities   (2,157 ) 3,840   4,101   (1,119 ) 4,665   (2,211 ) (2,683 )     (4,894 )
 
Cash Flows from Financing Activities
Net issuance (repayment) of debt 347 (2,717 ) (2,838 ) 6 (5,202 ) (373 ) (19 ) (392 )
Issuance of company common stock 9 26 24 74 133 75 24 99
Repurchase of company common stock - (390 ) (868 ) (2,608 ) (3,866 ) (1,636 ) (3,149 ) (4,785 )
Dividends paid on company common stock (744 ) (816 ) (816 ) (799 ) (3,175 ) (944 ) (917 ) (1,861 )
Other   (186 ) (169 ) (189 ) (165 ) (709 ) (183 ) (174 )     (357 )
Net Cash Used in
Financing Activities   (574 ) (4,066 ) (4,687 ) (3,492 ) (12,819 ) (3,061 ) (4,235 )     (7,296 )
 
Effect of Exchange Rate Changes   4   16   123   (122 ) 21   43   (23 )     20  
 
Net Change in Cash
and Cash Equivalents 313 3,265 3,876 1,458 8,912 (3,282 ) (667 ) (3,949 )
Cash and cash equivalents
at beginning of period   542   855   4,120   7,996   542   9,454   6,172       9,454  
Cash and Cash Equivalents
at End of Period   855   4,120   7,996   9,454   9,454   6,172   5,505       5,505  
CAPITAL PROGRAM
   
Millions of Dollars
2010 2011

1st Qtr

2nd Qtr

3rd Qtr

4th Qtr

YTD

1st Qtr

 

2nd Qtr

3rd Qtr

4th Qtr

YTD

E&P

Capital expenditures and investments 1,850 1,745 2,012 2,886 8,493 2,692 2,627 5,319
Loans and advances 48 21 27 17 113 (4 ) 7 3
Joint venture acquisition obligation--principal   161 164 166 168 659 170   173     343
E&P total   2,059 1,930 2,205 3,071 9,265 2,858   2,807     5,665
Midstream* - - 1 2 3 3 1 4
R&M
Capital expenditures and investments 192 226 241 397 1,056 156 222 378
Loans and advances   200 - - - 200 -   -     -
R&M total   392 226 241 397 1,256 156   222     378
LUKOIL Investment* - - - - - - - -
Chemicals* - - - - - - - -
Emerging Businesses* 1 4 2 20 27 6 8 14
Corporate and Other*   28 34 35 85 182 27   35     62
Total Capital Program   2,480 2,194 2,484 3,575 10,733 3,050   3,073     6,123
*Capital expenditures and investments only.

Page 4 of 12

E&P
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
E&P Net Income Attributable
to ConocoPhillips ($ Millions) 1,832 4,114 1,564   1,688   9,198   2,352   2,524       4,876  
 
Production
 
Total, Including Equity Affiliates (MBOE/D) 1,828 1,733 1,717   1,729   1,752   1,702   1,640       1,672  
E&P segment plus LUKOIL Investment segment: 2,271 2,176 2,139   1,729   2,078   1,702   1,640       1,672  
 
Crude Oil and Natural Gas Liquids (NGL) (MB/D)
Consolidated operations 901 837 846 847 858 800 758 779
Equity affiliates     57 56 51   56   55   60   56       58  
Total       958 893 897   903   913   860   814       837  
Over/(Under) Lifting of Crude Oil (MB/D) 19 6 (16 ) (17 ) (1 ) 12   9       10  
 
Synthetic Oil (MB/D)   22 25 -   -   12   -   -       -  
 
Bitumen (MB/D)
Consolidated operations 8 10 10 11 10 11 8 9
Equity affiliates     52 48 49   50   49   53   59       57  
Total       60 58 59   61   59   64   67       66  
 
Natural Gas (MMCF/D)
Consolidated operations 4,635 4,431 4,431 4,252 4,437 4,162 4,031 4,097
Equity affiliates     91 110 134   339   169   507   521       514  
Total       4,726 4,541 4,565   4,591   4,606   4,669   4,552       4,611  
 
Industry Prices (Platt's)
Crude Oil ($/BBL)
WTI spot 78.67 77.78 76.03 85.06 79.39 93.98 102.44 98.21
Brent dated 76.24 78.30 76.86 86.48 79.47 104.97 117.36 111.16
Natural Gas ($/MMBTU)
Henry Hub -- First of Month 5.30 4.09 4.38   3.80   4.39   4.11   4.32       4.21  
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Consolidated operations 71.89 71.00 69.22 78.53 72.63 91.30 103.91 97.45
Equity affiliates 71.30 72.46 72.95 81.95 74.81 94.95 103.82 99.35
Total       71.86 71.09 69.45   78.76   72.77   91.55   103.90       97.58  
 
Synthetic Oil ($/BBL)   78.67 76.60 -   -   77.56   -   -       -  
 
Bitumen ($/BBL)
Consolidated operations 59.18 45.81 47.96 52.37 51.10 47.94 56.91 51.99
Equity affiliates 56.15 49.73 52.38 55.27 53.43 56.15 67.05 61.90
Total       56.57 49.19 51.50   54.79   53.06   54.77   65.74       60.44  
 
Natural Gas ($/MCF)
Consolidated operations 5.63 4.64 4.86 5.13 5.07 5.54 5.79 5.67
Equity affiliates 2.67 3.02 2.82 2.73 2.79 2.59 3.28 2.94
Total       5.57 4.60 4.80   4.95   4.98   5.22   5.50       5.36  
 
Exploration Charges ($ Millions)
Dry holes 93 28 26 89 236 9 48 57
Leasehold impairment   40 44 96   61   241   41   41       82  
Total Noncash Charges 133 72 122 150 477 50 89 139
Other (G&A, G&G and Lease rentals) 250 141 130   157   678   126   175       301  
Total Exploration Charges 383 213 252   307   1,155   176   264       440  
 
Depreciation, Depletion and
Amortization (DD&A) ($ Millions) 2,071 2,033 2,017   1,975   8,096   1,830   1,829       3,659  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) 60 18 (20 ) 2   60   (4 ) (5 )     (9 )



Page 5 of 12


U.S. E&P
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P Net Income Attributable
to ConocoPhillips ($ Millions) 757 536   563   912   2,768   863 817     1,680
 
Alaska ($ Millions)   517 381   361   476   1,735   549 490     1,039
Lower 48 ($ Millions)   240 155   202   436   1,033   314 327     641
 
Production
Total U.S. (MBOE/D)   703 686   678   676   686   629 658     644
 
Crude Oil and NGL (MB/D)
Alaska 247 221 215 238 230 214 223 219
Lower 48       156 161   160   160   160   150 160     155
Total       403 382   375   398   390   364 383     374
Over/(Under) Lifting of Crude Oil (MB/D) 9 4   (26 ) -   (3 ) 38 6     22
 
Natural Gas (MMCF/D)
Alaska 94 82 82 70 82 67 62 65
Lower 48       1,705 1,740   1,738   1,599   1,695   1,522 1,589     1,556
Total       1,799 1,822   1,820   1,669   1,777   1,589 1,651     1,621
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Alaska 77.25 77.44 75.87 83.54 78.61 95.56 113.75 104.26
Lower 48 59.54 55.70 54.07 61.53 57.69 69.34 77.99 73.83
Total U.S.     70.40 68.15   65.71   74.22   69.73   85.36 98.43     91.83
 
Natural Gas ($/MCF)
Alaska 4.33 4.76 4.89 4.55 4.62 3.93 4.66 4.28
Lower 48 5.21 3.93 4.06 3.82 4.25 4.11 4.22 4.16
Total U.S.     5.16 3.96   4.10   3.85   4.27   4.10 4.23     4.17
 
Kenai, Alaska LNG Sales
Volume (MMCF/D)   56 51   49   32   47   20 18     19
Sales price per MCF   11.70 12.08   12.84   11.86   12.13   12.94 9.95     11.48
 
U.S. Exploration Charges ($ Millions)
Dry holes - (1 ) (6 ) (1 ) (8 ) 6 10 16
Leasehold impairment   22 26   79   23   150   22 22     44
Total Noncash Charges 22 25 73 22 142 28 32 60
Other (G&A, G&G and Lease rentals) 32 48   39   64   183   41 76     117
Total U.S. Exploration Charges 54 73   112   86   325   69 108     177
Alaska Only     7 10   10   14   41   8 6     14
 
DD&A ($ Millions)
Alaska 152 152 151 166 621 136 151 287
Lower 48       585 589   549   540   2,263   513 530     1,043
Total U.S.       737 741   700   706   2,884   649 681     1,330



Page 6 of 12


INTERNATIONAL E&P
 
    2010         2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
International E&P Net Income
Attributable to ConocoPhillips ($ Millions) 1,075 3,578 1,001 776   6,430 1,489   1,707     3,196  
 
Production
Total, Including Equity Affiliates (MBOE/D) 1,125 1,047 1,039 1,053   1,066 1,073   982     1,027  
 
Crude Oil and NGL (MB/D)
Consolidated operations
Canada 41 42 40 31 38 37 36 37
Norway 152 121 142 133 137 131 117 124
United Kingdom 83 77 65 72 74 65 63 64
Australia/Timor-Leste 34 25 34 30 31 32 28 30
China 71 67 66 66 68 77 70 73
Indonesia 17 20 19 14 17 11 11 11
Vietnam 22 24 25 24 24 22 19 20
Algeria 13 13 13 13 13 13 13 13
Libya 46 47 46 46 46 28 - 14
Nigeria       19 19 21 20   20 20   18     19  
Total consolidated operations 498 455 471 449 468 436 375 405
Equity affiliates     57 56 51 56   55 60   56     58  
Total       555 511 522 505   523 496   431     463  
Over/(Under) Lifting of Crude Oil (MB/D) 10 2 10 (17 ) 2 (26 ) 3     (12 )
 
Synthetic Oil (MB/D)
Consolidated operations--Canada 22 25 - -   12 -   -     -  
 
Bitumen (MB/D)
Consolidated operations--Canada 8 10 10 11 10 11 8 9
Equity affiliates     52 48 49 50   49 53   59     57  
Total       60 58 59 61   59 64   67     66  
 
Natural Gas (MMCF/D)
Consolidated operations
Canada 1,021 1,043 974 902 984 944 947 946
Norway 249 182 185 219 209 208 130 169
United Kingdom 712 567 546 601 606 543 457 500
Australia/Timor-Leste 239 184 260 248 233 237 236 236
Indonesia 462 473 472 443 463 467 445 456
Vietnam 15 16 16 16 16 16 13 14
Libya 8 8 8 8 8 5 - 2
Nigeria       130 136 150 146   141 153   152     153  
Total consolidated operations 2,836 2,609 2,611 2,583 2,660 2,573 2,380 2,476
Equity affiliates     91 110 134 339   169 507   521     514  
Total       2,927 2,719 2,745 2,922   2,829 3,080   2,901     2,990  
 
Darwin, Australia LNG Sales (MMCF/D) 401 297 458 455   403 420   410     415  



Page 7 of 12


INTERNATIONAL E&P (continued)
 
    2010         2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Consolidated operations
Canada 57.58 54.56 50.58 61.50 55.70 62.27 71.06 66.65
Norway 75.47 76.16 76.12 86.54 78.20 104.90 116.79 110.45
United Kingdom 74.03 72.64 73.04 82.24 75.82 93.94 107.82 102.25
Australia/Timor-Leste 68.73 68.75 64.88 78.92 70.21 91.02 100.09 95.53
China 74.89 77.78 73.64 83.77 77.31 100.54 116.85 108.18
Indonesia 67.65 68.49 63.71 75.70 68.41 94.31 108.04 101.12
Vietnam 80.92 81.26 78.79 89.20 82.65 107.37 121.92 114.07
Algeria 74.39 79.92 77.45 89.31 80.68 105.21 120.09 114.15
Libya 76.17 77.81 76.22 86.63 79.22 98.30 - 98.30
Nigeria 71.76 61.61 70.29 66.70 68.04 91.53 107.50 98.57
Total consolidated operations 73.08 73.34 71.75 82.29 74.95 96.86 109.35 102.86
Equity affiliates 71.30 72.46 72.95 81.95 74.81 94.95 103.82 99.35
Total       72.91 73.24 71.87 82.25 74.94 96.62 108.62     102.41
 
Synthetic Oil ($/BBL)
Consolidated operations--Canada 78.67 76.60 - - 77.56 - -     -
 
Bitumen ($/BBL)
Consolidated operations--Canada 59.18 45.81 47.96 52.37 51.10 47.94 56.91 51.99
Equity affiliates 56.15 49.73 52.38 55.27 53.43 56.15 67.05 61.90
Total       56.57 49.19 51.50 54.79 53.06 54.77 65.74     60.44
 
Natural Gas ($/MCF)
Consolidated operations
Canada 4.63 3.63 3.34 3.32 3.74 3.59 3.74 3.67
Norway 7.08 7.01 7.68 9.23 7.70 9.61 10.57 9.99
United Kingdom 6.66 5.61 6.27 8.02 6.67 8.18 9.25 8.68
Australia/Timor-Leste* 1.06 0.85 0.96 0.71 0.90 0.81 0.90

0.86

Indonesia 7.49 7.60 7.07 7.80 7.48 9.43 10.98 10.19
Vietnam 1.17 1.16 1.17 1.19 1.17 1.16 1.11 1.14
Libya 0.09 0.09 0.09 0.09 0.09 0.09 - 0.09
Nigeria 2.04 1.88 1.76 1.80 1.86 2.15 2.10 2.12
Total consolidated operations 5.92 5.10 5.38 5.96 5.60 6.43 6.86 6.64
Equity affiliates 2.67 3.02 2.82 2.73 2.79 2.59 3.28 2.94
Total       5.82 5.03 5.26 5.58 5.43 5.80 6.22     6.00
 
International Exploration Charges ($ Millions)
Dry holes 93 29 32 90 244 3 38 41
Leasehold impairment   18 18 17 38 91 19 19     38
Total Noncash Charges 111 47 49 128 335 22 57 79
Other (G&A, G&G and Lease rentals) 218 93 91 93 495 85 99     184
Total International Exploration Charges 329 140 140 221 830 107 156     263
 
DD&A ($ Millions)   1,334 1,292 1,317 1,269 5,212 1,181 1,148     2,329
*Excludes transfers to Darwin LNG plant.



Page 8 of 12


R&M
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
R&M Net Income (Loss) Attributable
to ConocoPhillips ($ Millions) (4 ) (279 ) 268   207   192   482   766       1,248  
 
United States ($ Millions) 12   782   199   29   1,022   402   692       1,094  
International ($ Millions) (16 ) (1,061 ) 69   178   (830 ) 80   74       154  
 
Worldwide - Including Net Share of Equity Affiliates
Crude Oil Charge Input (MB/D) 2,066 2,275 2,232 2,049 2,156 2,145 2,196 2,171
Total Charge Input (MB/D) 2,226 2,448 2,383 2,235 2,323 2,315 2,398 2,357
Crude Oil Capacity Utilization (%) 78 % 86 % 84 % 77 % 81 % 89 % 91 % 90 %
Clean Product Yield (%) 84 % 84 % 83 % 83 % 83 % 83 % 83 %     83 %
 
Refined Products Production (MB/D)
Gasoline 986 1,038 996 927 987 986 1,013 1,000
Distillates 834 969 935 882 905 903 932 918
Other       418   457   468   452   449   442   463       453  
Total       2,238   2,464   2,399   2,261   2,341   2,331   2,408       2,371  
 
Petroleum Products Sales (MB/D)
Gasoline 1,249 1,319 1,280 1,321 1,292 1,270 1,409 1,340
Distillates 1,089 1,201 1,199 1,263 1,189 1,203 1,177 1,191
Other       471   524   627   613   559   587   568       577  
Total       2,809   3,044   3,106   3,197   3,040   3,060   3,154       3,108  
 
Market Indicators
U.S. East Coast Crack Spread ($/BBL) 8.21 10.71 8.84 11.83 9.90 19.09 25.30 22.19
U.S. Gulf Coast Crack Spread ($/BBL) 6.70 9.90 7.45 7.79 7.96 17.25 25.25 21.25
U.S. Group Central Crack Spread ($/BBL) 6.82 11.38 10.58 9.17 9.49 18.95 27.26 23.10
U.S. West Coast Crack Spread ($/BBL) 9.72 14.95 14.97 12.58 13.06 16.14 15.86 16.00
U.S. Weighted 3:2:1 Crack Spread ($/BBL) 7.68 11.44 9.97 9.95 9.76 17.76 23.70 20.73
NW Europe Crack Spread ($/BBL) 9.25 11.60 9.84 12.04 10.68 12.31 11.88 12.10
Singapore 3:1:2 Crack Spread ($/BBL) 10.17   10.68   11.13   12.25   11.06   16.33   17.75       17.04  
 
Realized Margins
Refining Margin ($/BBL)
U.S. 5.62 8.82 6.53 7.06 7.05 10.05 10.55 10.31
International 8.73 10.27 4.41 12.20 8.90 8.28 4.21 6.22
Integrated Margin ($/BBL)
U.S. 6.07 10.40 7.21 7.55 7.87 10.16 11.70 10.95
International     11.60   13.82   7.68   14.37   11.85   9.34   7.75       8.53  
 
DD&A ($ Millions)   214   211   199   208   832   207   213       420  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (47 ) (55 ) 42   -   (60 ) 31   22       53  
 
Turnaround Expense ($ Millions) 72   94   86   207   459   81   82       163  



Page 9 of 12


R&M (continued)
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
U.S. R&M
Eastern U.S.
Crude Oil Charge Input (MB/D) 379 410 387 269 361 392 376 384
Total Charge Input (MB/D) 406 457 433 347 411 443 432 438
Crude Oil Capacity Utilization (%) 90 % 97 % 91 % 64 % 85 % 93 % 89 % 91 %
Clean Product Yield (%) 89 % 89 % 89 % 90 % 89 % 91 % 90 %     90 %
 
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 641 730 664 636 668 614 664 639
Total Charge Input (MB/D) 731 804 730 701 741 685 758 721
Crude Oil Capacity Utilization (%) 87 % 100 % 90 % 87 % 91 % 84 % 91 % 87 %
Clean Product Yield (%) 82 % 82 % 81 % 78 % 81 % 80 % 82 %     81 %
 
Western U.S.
Crude Oil Charge Input (MB/D) 374 394 394 377 385 371 353 362
Total Charge Input (MB/D) 389 425 416 395 406 397 381 389
Crude Oil Capacity Utilization (%) 90 % 95 % 95 % 90 % 92 % 89 % 85 % 87 %
Clean Product Yield (%) 82 % 83 % 81 % 82 % 82 % 83 % 81 %     82 %
 
Central U.S. - Consolidated
Crude Oil Charge Input (MB/D) 170 189 187 152 175 177 189 183
Total Charge Input (MB/D) 172 191 190 153 177 179 191 185
Crude Oil Capacity Utilization (%) 91 % 101 % 100 % 81 % 93 % 94 % 101 % 98 %
Clean Product Yield (%) 91 % 92 % 92 % 92 % 92 % 91 % 93 %     92 %
 
Central U.S. - Equity Affiliates - Net Share*
Crude Oil Charge Input (MB/D) 178 190 201 205 193 181 203 192
Total Charge Input (MB/D) 189 202 205 218 203 194 213 204
Crude Oil Capacity Utilization (%) 79 % 84 % 89 % 91 % 86 % 80 % 90 % 85 %
Clean Product Yield (%) 83 % 82 % 79 % 82 % 82 % 80 % 80 %     80 %
 
Total U.S.
Crude Oil Charge Input (MB/D) 1,742 1,913 1,833 1,639 1,782 1,735 1,785 1,760
Total Charge Input (MB/D) 1,887 2,079 1,974 1,814 1,938 1,898 1,975 1,937
Crude Oil Capacity Utilization (%) 88 % 96 % 92 % 83 % 90 % 87 % 90 % 89 %
Clean Product Yield (%) 84 % 85 % 84 % 83 % 84 % 85 % 84 %     84 %
 
Refined Products Production (MB/D)
Gasoline 873 938 869 786 867 853 886 870
Distillates 679 785 746 683 723 717 738 728
Other       349   377   377   369   368   344   362       353  
Total       1,901   2,100   1,992   1,838   1,958   1,914   1,986       1,951  
 
Petroleum Products Sales (MB/D)
Gasoline 1,092 1,170 1,103 1,115 1,120 1,099 1,218 1,159
Distillates 807 921 874 890 873 852 861 857
Other       366   387   432   413   400   437   385       411  
Total       2,265   2,478   2,409   2,418   2,393   2,388   2,464       2,427  
*Represents 50 percent share of the Borger Refinery and Wood River Refinery.
 
International R&M
International - Consolidated*
Crude Oil Charge Input (MB/D) 276 255 285 280 274 272 281 277
Total Charge Input (MB/D) 288 262 295 288 283 279 293 286
Crude Oil Capacity Utilization (%) 50 % 46 % 52 % 51 % 50 % 93 % 96 % 95 %
Clean Product Yield (%) 80 % 75 % 77 % 79 % 78 % 75 % 76 %     75 %
 
International - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D) 48 107 114 130 100 138 130 134
Total Charge Input (MB/D) 51 107 114 133 102 138 130 134
Crude Oil Capacity Utilization (%) 41 % 90 % 96 % 109 % 84 % 103 % 97 % 100 %
Clean Product Yield (%) 81 % 87 % 83 % 87 % 85 % 84 % 79 %     82 %
 
Total International
Crude Oil Charge Input (MB/D) 324 362 399 410 374 410 411 411
Total Charge Input (MB/D) 339 369 409 421 385 417 423 420
Crude Oil Capacity Utilization (%) 48 % 54 % 60 % 61 % 56 % 96 % 96 % 96 %
Clean Product Yield (%) 81 % 78 % 79 % 82 % 80 % 78 % 77 %     77 %
 
Refined Products Production (MB/D)
Gasoline 113 100 127 141 120 133 127 130
Distillates 155 184 189 199 182 186 194 190
Other       69   80   91   83   81   98   101       100  
Total       337   364   407   423   383   417   422       420  
 
Petroleum Products Sales (MB/D)
Gasoline 157 149 177 206 172 171 191 181
Distillates 282 280 325 373 316 351 316 334
Other       105   137   195   200   159   150   183       166  
Total       544   566   697   779   647   672   690       681  
*Represents our Humber Refinery in the United Kingdom and Whitegate Refinery in Ireland. Prior to January 1, 2011, also represented our Wilhelmshaven Refinery in Germany.
**Represents 18.75 percent interest in a refinery complex in Karlsruhe, Germany, and 47 percent interest in a refinery in Melaka, Malaysia.



Page 10 of 12


LUKOIL INVESTMENT
 
    2010         2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
LUKOIL Investment Net Income
Attributable to ConocoPhillips ($ Millions) 387   529   1,310 277   2,503   239 -     239
 
Upstream
Production
Net crude oil production (MB/D) 391 382 366 - 284 - - -
Net natural gas production (MMCF/D) 312 368 338 - 254 - - -
Total (MBOE/D)     443   443   422 -   326   - -     -
 
Industry Prices
Crude Oil ($/BBL)
Urals crude (CIF Mediterranean) (one-quarter lag) 74.26   75.41   76.86 -   -   - -     -
 
Downstream
Refinery Throughput
Crude Processed (MB/D) 246   248   263 -   189   - -     -
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (2 ) (16 ) 5 (2 ) (15 ) 2 -     2
 
 
 
 
 
 
MIDSTREAM
 
    2010         2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Midstream Net Income Attributable
to ConocoPhillips ($ Millions) 77   61   77 91   306   73 130     203
 
U.S. Equity Affiliate ($ Millions)* 53   31   39 68   191   48 86     134
 
NGL Extracted (MB/D)
Equity Affiliates
United States* 176 181 189 191 184 179 189 184
International     10   9   9 8   9   9 9     9
Total       186   190   198 199   193   188 198     193
*Represents 50 percent interest in DCP Midstream.
 
NGL Fractionated (MB/D)
United States* 140 138 116 141 134 121 127 124
International     19   18   18 16   18   18 17     17
Total       159   156   134 157   152   139 144     141
*Excludes DCP Midstream.
 
Product Prices
Weighted Average NGL ($/BBL)*
Consolidated 48.93 43.21 40.55 48.98 45.42 53.55 59.14 56.35
DCP Midstream     45.65   38.11   36.66 44.68   41.28   47.64 52.24     49.94
*Prices are based on index prices from the Mont Belvieu and Conway market hubs that are weighted by natural gas liquids component and location mix.
 
DD&A ($ Millions)   1   2   1 2   6   2 1     3



Page 11 of 12


CHEMICALS
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Chemicals Net Income Attributable
to ConocoPhillips ($ Millions) 110   138   132   118   498   193   199       392  
 
Industry Margins (Cents/Lb)*
Ethylene industry cash margin 18.2 19.6 11.2 12.1 15.2 16.7 26.9 21.8
HDPE industry contract sales margin 17.3 24.5 28.2 24.8 23.7 25.1 21.1 23.1
Benzene domestic contract margin 16.1   12.1   8.2   9.6   11.5   16.4   7.2       11.8  

*Prices, economics and views expressed by CMAI are strictly the opinion of CMAI and Purvin & Gertz and are based on information collected within the public sector and on assessments by CMAI and Purvin & Gertz staff utilizing reasonable care consistent with normal industry practice. CMAI and Purvin & Gertz make no guarantee or warranty and assume no liability as to their use.

 

 
 
 
 
 
EMERGING BUSINESSES
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Emerging Businesses Net Income (Loss)
Attributable to ConocoPhillips ($ Millions) 6   (10 ) (20 ) (35 ) (59 ) (7 ) (14 )     (21 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Power 29 17 8 (5 ) 49 22 17 39
Other       (23 ) (27 ) (28 ) (30 ) (108 ) (29 ) (31 )     (60 )
Total       6   (10 ) (20 ) (35 ) (59 ) (7 ) (14 )     (21 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) -   (1 ) -   -   (1 ) -   -       -  
 
 
 
 
CORPORATE AND OTHER
 
    2010           2011    
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Corporate and Other Net Income (Loss)
Attributable to ConocoPhillips ($ Millions) (310 ) (389 ) (276 ) (305 ) (1,280 ) (304 ) (203 )     (507 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Net interest expense (222 ) (254 ) (285 ) (204 ) (965 ) (181 ) (165 ) (346 )
Corporate overhead (36 ) (47 ) (37 ) (89 ) (209 ) (63 ) (46 ) (109 )
Other       (52 ) (88 ) 46   (12 ) (106 ) (60 ) 8       (52 )
Total       (310 ) (389 ) (276 ) (305 ) (1,280 ) (304 ) (203 )     (507 )
 
Before-Tax Net Interest Expense ($ Millions)
Interest expense (383 ) (433 ) (351 ) (351 ) (1,518 ) (342 ) (330 ) (672 )
Capitalized interest 119 119 121 112 471 112 115 227
Interest revenue 6 14 13 31 64 39 27 66
Premium on early debt retirement -   -   (146 ) -   (146 ) -   -       -  
Total       (258 ) (300 ) (363 ) (208 ) (1,129 ) (191 ) (188 )     (379 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (19 ) (70 ) 60   14   (15 ) (12 ) 19       7  
 
Debt
Total Debt ($ Millions) 28,988 26,279 23,601 23,592 23,592 23,209 23,196 23,196
Debt-to-Capital Ratio (%) 31 % 28 % 25 % 25 % 25 % 25 % 25 %     25 %
 
Equity ($ Millions)   63,417   65,945   69,917   69,109   69,109   70,521   70,578       70,578  



Page 12 of 12

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