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

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EX-99.1 - EXHIBIT 99.1 - CONOCOPHILLIPSa6696096ex99-1.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 56,530

Equity in earnings of affiliates

868 1,088 1,004 173 3,133 1,017 1,017
Gain on dispositions** 24 3,249 1,398 1,132 5,803 616 616

Other income**

  49     104     (61 )   186     278   84                 84  
Total Revenues and Other Income   45,762     50,127     49,549     53,217     198,655   58,247                 58,247  
 
Costs and Expenses
Purchased crude oil, natural gas and products 31,521 32,088 34,051 38,091 135,751 42,376 42,376
Production and operating expenses 2,527 2,619 2,583 2,906 10,635 2,628 2,628
Selling, general and administrative expenses 444 438 493 630 2,005 499 499
Exploration expenses 383 213 252 307 1,155 176 176
Depreciation, depletion and amortization 2,318 2,280 2,246 2,216 9,060 2,070 2,070
Impairments 91 1,532 59 98 1,780 - -
Taxes other than income taxes* 4,037 4,247 4,227 4,282 16,793 4,364 4,364
Accretion on discounted liabilities 114 113 110 110 447 112 112
Interest and debt expense 301 349 264 273 1,187 262 262
Foreign currency transaction (gains) losses   36     54     (10 )   12     92   (36 )               (36 )

Total Costs and Expenses

  41,772     43,933     44,275     48,925     178,905   52,451                 52,451  
Income before income taxes 3,990 6,194 5,274 4,292 19,750 5,796 5,796
Provision for income taxes   1,878     2,011     2,205     2,239     8,333   2,754                 2,754  
Net Income 2,112 4,183 3,069 2,053 11,417 3,042 3,042
Less: net income attributable to
noncontrolling interests   (14 )   (19 )   (14 )   (12 )   (59 ) (14 )               (14 )
Net Income Attributable to ConocoPhillips   2,098     4,164     3,055     2,041     11,358   3,028                 3,028  
*Includes excise taxes on petroleum products sales: 3,220 3,417 3,544 3,508 13,689 3,382 3,382
 
 
Net Income Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic 1.41 2.79 2.06 1.40 7.68 2.11 2.11
Diluted 1.40 2.77 2.05 1.39 7.62 2.09 2.09
 
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 1,432,285
Diluted   1,503,565     1,501,257     1,493,080     1,465,794     1,491,067   1,445,477                 1,445,477  
**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 2,768 863 863
International E&P   1,075     3,578     1,001     776     6,430   1,489                 1,489  
Total E&P   1,832     4,114     1,564     1,688     9,198   2,352                 2,352  
 
Midstream   77     61     77     91     306   73                 73  
 
U.S. R&M 12 782 199 29 1,022 402 402
International R&M   (16 )   (1,061 )   69     178     (830 ) 80                 80  
Total R&M   (4 )   (279 )   268     207     192   482                 482  
 
LUKOIL Investment 387 529 1,310 277 2,503 239 239
 
Chemicals 110 138 132 118 498 193 193
 
Emerging Businesses 6 (10 ) (20 ) (35 ) (59 ) (7 ) (7 )
 
Corporate and Other (310 ) (389 ) (276 ) (305 ) (1,280 ) (304 ) (304 )
                                                     
Consolidated   2,098     4,164     3,055     2,041     11,358   3,028                 3,028  
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 1,362
International E&P   2,632     5,145     2,539     2,291     12,607   3,248                 3,248  
Total E&P   3,781     5,978     3,418     3,768     16,945   4,610                 4,610  
 
Midstream   116     94     115     139     464   111                 111  
 
U.S. R&M 41 1,265 320 46 1,672 685 685
International R&M   (86 )   (1,452 )   76     218     (1,244 ) 114                 114  
Total R&M   (45 )   (187 )   396     264     428   799                 799  
 
LUKOIL Investment 395 546 1,653 424 3,018 362 362
 
Chemicals 135 198 182 165 680 260 260
 
Emerging Businesses 4 (18 ) (43 ) (56 ) (113 ) (15 ) (15 )
 
Corporate and Other (396 ) (417 ) (447 ) (412 ) (1,672 ) (331 ) (331 )
                                                     
Consolidated   3,990     6,194     5,274     4,292     19,750   5,796                 5,796  


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 % 36.6 %
International E&P   58.7 %   30.1 %   60.1 %   65.6 %   48.6 % 53.8 %               53.8 %
Total E&P   51.2 %   30.9 %   53.9 %   54.9 %   45.4 % 48.7 %               48.7 %
 
Midstream   33.6 %   35.1 %   33.9 %   33.8 %   34.1 % 34.2 %               34.2 %
 
U.S. R&M 68.3 % 38.1 % 37.5 % 32.6 % 38.6 % 41.0 % 41.0 %
International R&M   81.4 %   26.9 %   9.2 %   18.3 %   33.3 % 30.7 %               30.7 %
Total R&M   93.3 %   -48.7 %   32.1 %   20.8 %   54.0 % 39.5 %               39.5 %
 
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 % 25.8 %
 
Emerging Businesses -25.0 % 50.0 % 55.8 % 35.7 % 47.8 % 53.3 % 53.3 %
 
Corporate and Other 21.7 % 6.5 % 38.5 % 26.0 % 23.4 % 8.2 % 8.2 %
                                                     
Consolidated   47.1 %   32.5 %   41.8 %   52.2 %   42.2 % 47.5 %               47.5 %


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 2,722
Taxes other than income taxes 4,037 4,247 4,227 4,282 16,793 4,364 4,364
Less: Excise taxes*   (3,220 )   (3,417 )   (3,544 )   (3,508 )   (13,689 ) (3,382 )               (3,382 )
Estimated Taxes Paid   2,413     3,159     2,780     3,226     11,578   3,704                 3,704  
*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 - - 32 293 325 151 151
Pending claims and settlements   -     (82 )   -     -     (82 ) -               -
Total   -     (82 )   32     293     243   151               151
 
International E&P
Gain (loss) on asset sales - 2,679 - 147 2,826 4 4
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               4
 
Total E&P   (83 )   2,635     58     (166 )   2,444   155               155
 
Midstream
   

 

   

 

   

 

   

 

   

 

 

 

             

 

Total   -     -     -     -     -   -               -
 
U.S. R&M
Gain (loss) on asset sales - 116 - - 116 2 2
Impairments - (8 ) - - (8 ) - -
Pending claims and settlements   -     35     -     -     35   -               -
Total   -     143     -     -     143   2               2
 
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               2
 
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               394
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 3,042
Depreciation, depletion and amortization 2,318 2,280 2,246 2,216 9,060 2,070 2,070
Impairments 91 1,532 59 98 1,780 - -
Dry hole costs and leasehold impairments 133 72 122 150 477 50 50
Accretion on discounted liabilities 114 113 110 110 447 112 112
Deferred taxes (35 ) (508 ) (392 ) 57 (878 ) 87 87
Undistributed equity earnings (503 ) (686 ) (453 ) 569 (1,073 ) (523 ) (523 )
Gain on asset dispositions (24 ) (3,249 ) (1,398 ) (1,132 ) (5,803 ) (616 ) (616 )
Other (187 ) (356 ) 322 (28 ) (249 ) (185 ) (185 )
Net working capital changes   (979 )   94     654     2,098     1,867   (2,090 )               (2,090 )
Net Cash Provided by
Operating Activities   3,040     3,475     4,339     6,191     17,045   1,947                 1,947  
 
Cash Flows from Investing Activities
Capital expenditures and investments (2,071 ) (2,009 ) (2,291 ) (3,390 ) (9,761 ) (2,884 ) (2,884 )
Proceeds from asset dispositions 132 5,811 6,290 3,139 15,372 1,787 1,787
Net purchases of short-term investments - - - (982 ) (982 ) (1,170 ) (1,170 )
Long-term advances to/collections from
related parties and other investments   (218 )   38     102     114     36   56                 56  
Net Cash Provided by (Used in) Investing Activities   (2,157 )   3,840     4,101     (1,119 )   4,665   (2,211 )               (2,211 )
 
Cash Flows from Financing Activities
Net issuance (repayment) of debt 347 (2,717 ) (2,838 ) 6 (5,202 ) (373 ) (373 )
Issuance of company common stock 9 26 24 74 133 75 75
Repurchase of company common stock - (390 ) (868 ) (2,608 ) (3,866 ) (1,636 ) (1,636 )
Dividends paid on company common stock (744 ) (816 ) (816 ) (799 ) (3,175 ) (944 ) (944 )
Other   (186 )   (169 )   (189 )   (165 )   (709 ) (183 )               (183 )
Net Cash Used in
Financing Activities   (574 )   (4,066 )   (4,687 )   (3,492 )   (12,819 ) (3,061 )               (3,061 )
 
Effect of Exchange Rate Changes   4     16     123     (122 )   21   43                 43  
 
Net Change in Cash
and Cash Equivalents 313 3,265 3,876 1,458 8,912 (3,282 ) (3,282 )
Cash and cash equivalents
at beginning of period   542     855     4,120     7,996     542   9,454                 9,454  
Cash and Cash Equivalents
at End of Period   855     4,120     7,996     9,454     9,454   6,172                 6,172  


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 2,692
Loans and advances 48 21 27 17 113 (4 ) (4 )
Joint venture acquisition obligation--principal   161   164   166   168   659 170                 170  
E&P total   2,059   1,930   2,205   3,071   9,265 2,858                 2,858  
Midstream* - - 1 2 3 3 3
R&M
Capital expenditures and investments 192 226 241 397 1,056 156 156
Loans and advances   200   -   -   - 200   -                 -  
R&M total   392   226   241   397 1,256   156                 156  
LUKOIL Investment* - - - - - - -
Chemicals* - - - - - - -
Emerging Businesses* 1 4 2 20 27 6 6
Corporate and Other*   28   34   35   85   182 27                 27  
Total Capital Program   2,480   2,194   2,484   3,575   10,733 3,050                 3,050  

 *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                 2,352  
 
Production
 
Total, Including Equity Affiliates (MBOE/D)   1,828   1,733   1,717     1,729     1,752   1,702                 1,702  
E&P segment plus LUKOIL Investment segment:   2,271   2,176   2,139     1,729     2,078   1,702                 1,702  
 
Crude Oil and Natural Gas Liquids (NGL) (MB/D)
Consolidated operations 901 837 846 847 858 800 800
Equity affiliates   57   56   51     56     55   60                 60  
Total   958   893   897     903     913   860                 860  
Over/(Under) Lifting of Crude Oil (MB/D)   19   6   (16 )   (17 )   (1 ) 12                 12  
 
Synthetic Oil (MB/D)   22   25   -     -     12   -                 -  
 
Bitumen (MB/D)
Consolidated operations 8 10 10 11 10 11 11
Equity affiliates   52   48   49     50     49   53                 53  
Total   60   58   59     61     59   64                 64  
 
Natural Gas (MMCF/D)
Consolidated operations 4,635 4,431 4,431 4,252 4,437 4,162 4,162
Equity affiliates   91   110   134     339     169   507                 507  
Total   4,726   4,541   4,565     4,591     4,606   4,669                 4,669  
 
Industry Prices (Platt's)
Crude Oil ($/BBL)
WTI spot 78.67 77.78 76.03 85.06 79.39 93.98 93.98
Brent dated 76.24 78.30 76.86 86.48 79.47 104.97 104.97
Natural Gas ($/MMBTU)
Henry Hub -- First of Month   5.30   4.09   4.38     3.80     4.39   4.11                 4.11  
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Consolidated operations 71.89 71.00 69.22 78.53 72.63 91.30 91.30
Equity affiliates 71.30 72.46 72.95 81.95 74.81 94.95 94.95
Total   71.86   71.09   69.45     78.76     72.77   91.55                 91.55  
 
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 47.94
Equity affiliates 56.15 49.73 52.38 55.27 53.43 56.15 56.15
Total   56.57   49.19   51.50     54.79     53.06   54.77                 54.77  
 
Natural Gas ($/MCF)
Consolidated operations 5.63 4.64 4.86 5.13 5.07 5.54 5.54
Equity affiliates 2.67 3.02 2.82 2.73 2.79 2.59 2.59
Total   5.57   4.60   4.80     4.95     4.98   5.22                 5.22  
 
Exploration Charges ($ Millions)
Dry holes 93 28 26 89 236 9 9
Leasehold impairment   40   44   96     61     241   41                 41  
Total Noncash Charges 133 72 122 150 477 50 50
Other (G&A, G&G and Lease rentals)   250   141   130     157     678   126                 126  
Total Exploration Charges   383   213   252     307     1,155   176                 176  
 
Depreciation, Depletion and
Amortization (DD&A) ($ Millions)   2,071   2,033   2,017     1,975     8,096   1,830                 1,830  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions)   60   18   (20 )   2     60   (4 )               (4 )
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               863
 
Alaska ($ Millions)   517   381     361     476     1,735   549               549
Lower 48 ($ Millions)   240   155     202     436     1,033   314               314
 
Production
Total U.S. (MBOE/D)   703   686     678     676     686   629               629
 
Crude Oil and NGL (MB/D)
Alaska 247 221 215 238 230 214 214
Lower 48   156   161     160     160     160   150               150
Total   403   382     375     398     390   364               364
Over/(Under) Lifting of Crude Oil (MB/D)   9   4     (26 )   -     (3 ) 38               38
 
Natural Gas (MMCF/D)
Alaska 94 82 82 70 82 67 67
Lower 48   1,705   1,740     1,738     1,599     1,695   1,522               1,522
Total   1,799   1,822     1,820     1,669     1,777   1,589               1,589
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Alaska 77.25 77.44 75.87 83.54 78.61 95.56 95.56
Lower 48 59.54 55.70 54.07 61.53 57.69 69.34 69.34
Total U.S.   70.40   68.15     65.71     74.22     69.73   85.36               85.36
 
Natural Gas ($/MCF)
Alaska 4.33 4.76 4.89 4.55 4.62 3.93 3.93
Lower 48 5.21 3.93 4.06 3.82 4.25 4.11 4.11
Total U.S.   5.16   3.96     4.10     3.85     4.27   4.10               4.10
 
Kenai, Alaska LNG Sales
Volume (MMCF/D)   56   51     49     32     47   20               20
Sales price per MCF   11.70   12.08     12.84     11.86     12.13   12.94               12.94
 
U.S. Exploration Charges ($ Millions)
Dry holes - (1 ) (6 ) (1 ) (8 ) 6 6
Leasehold impairment   22   26     79     23     150   22               22
Total Noncash Charges 22 25 73 22 142 28 28
Other (G&A, G&G and Lease rentals)   32   48     39     64     183   41               41
Total U.S. Exploration Charges   54   73     112     86     325   69               69
Alaska Only   7   10     10     14     41   8               8
 
DD&A ($ Millions)
Alaska 152 152 151 166 621 136 136
Lower 48   585   589     549     540     2,263   513               513
Total U.S.   737   741     700     706     2,884   649               649
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                 1,489  
 
Production
Total, Including Equity Affiliates (MBOE/D)   1,125   1,047   1,039   1,053     1,066 1,073                 1,073  
 
Crude Oil and NGL (MB/D)
Consolidated operations
Canada 41 42 40 31 38 37 37
Norway 152 121 142 133 137 131 131
United Kingdom 83 77 65 72 74 65 65
Australia/Timor-Leste 34 25 34 30 31 32 32
China 71 67 66 66 68 77 77
Indonesia 17 20 19 14 17 11 11
Vietnam 22 24 25 24 24 22 22
Algeria 13 13 13 13 13 13 13
Libya 46 47 46 46 46 28 28
Nigeria   19   19   21   20     20 20                 20  
Total consolidated operations 498 455 471 449 468 436 436
Equity affiliates   57   56   51   56     55 60                 60  
Total   555   511   522   505     523 496                 496  
Over/(Under) Lifting of Crude Oil (MB/D)   10   2   10   (17 )   2 (26 )               (26 )
 
Synthetic Oil (MB/D)
Consolidated operations--Canada   22   25   -   -     12 -                 -  
 
Bitumen (MB/D)
Consolidated operations--Canada 8 10 10 11 10 11 11
Equity affiliates   52   48   49   50     49 53                 53  
Total   60   58   59   61     59 64                 64  
 
Natural Gas (MMCF/D)
Consolidated operations
Canada 1,021 1,043 974 902 984 944 944
Norway 249 182 185 219 209 208 208
United Kingdom 712 567 546 601 606 543 543
Australia/Timor-Leste 239 184 260 248 233 237 237
Indonesia 462 473 472 443 463 467 467
Vietnam 15 16 16 16 16 16 16
Libya 8 8 8 8 8 5 5
Nigeria   130   136   150   146     141 153                 153  
Total consolidated operations 2,836 2,609 2,611 2,583 2,660 2,573 2,573
Equity affiliates   91   110   134   339     169 507                 507  
Total   2,927   2,719   2,745   2,922     2,829 3,080                 3,080  
 
Darwin, Australia LNG Sales (MMCF/D)   401   297   458   455     403 420                 420  
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 62.27
Norway 75.47 76.16 76.12 86.54 78.20 104.90 104.90
United Kingdom 74.03 72.64 73.04 82.24 75.82 93.94 93.94
Australia/Timor-Leste 68.73 68.75 64.88 78.92 70.21 91.02 91.02
China 74.89 77.78 73.64 83.77 77.31 100.54 100.54
Indonesia 67.65 68.49 63.71 75.70 68.41 94.31 94.31
Vietnam 80.92 81.26 78.79 89.20 82.65 107.37 107.37
Algeria 74.39 79.92 77.45 89.31 80.68 105.21 105.21
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 91.53
Total consolidated operations 73.08 73.34 71.75 82.29 74.95 96.86 96.86
Equity affiliates 71.30 72.46 72.95 81.95 74.81 94.95 94.95
Total   72.91   73.24   71.87   82.25   74.94 96.62               96.62
 
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 47.94
Equity affiliates 56.15 49.73 52.38 55.27 53.43 56.15 56.15
Total   56.57   49.19   51.50   54.79   53.06 54.77               54.77
 
Natural Gas ($/MCF)
Consolidated operations
Canada 4.63 3.63 3.34 3.32 3.74 3.59 3.59
Norway 7.08 7.01 7.68 9.23 7.70 9.61 9.61
United Kingdom 6.66 5.61 6.27 8.02 6.67 8.18 8.18
Australia/Timor-Leste* 1.06 0.85 0.96 0.71 0.90 0.81 0.81
Indonesia 7.49 7.60 7.07 7.80 7.48 9.43 9.43
Vietnam 1.17 1.16 1.17 1.19 1.17 1.16 1.16
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 2.15
Total consolidated operations 5.92 5.10 5.38 5.96 5.60 6.43 6.43
Equity affiliates 2.67 3.02 2.82 2.73 2.79 2.59 2.59
Total   5.82   5.03   5.26   5.58   5.43 5.80               5.80
 
International Exploration Charges ($ Millions)
Dry holes 93 29 32 90 244 3 3
Leasehold impairment   18   18   17   38   91 19               19
Total Noncash Charges 111 47 49 128 335 22 22
Other (G&A, G&G and Lease rentals)   218   93   91   93   495 85               85
Total International Exploration Charges   329   140   140   221   830 107               107
 
DD&A ($ Millions)   1,334   1,292   1,317   1,269   5,212 1,181               1,181

*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                 482  
 
United States ($ Millions)   12     782     199     29     1,022   402                 402  
International ($ Millions)   (16 )   (1,061 )   69     178     (830 ) 80                 80  
 
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 2,145
Total Charge Input (MB/D) 2,226 2,448 2,383 2,235 2,323 2,315 2,315
Crude Oil Capacity Utilization (%) 78 % 86 % 84 % 77 % 81 % 89 % 89 %
Clean Product Yield (%)   84 %   84 %   83 %   83 %   83 % 83 %               83 %
 
Refined Products Production (MB/D)
Gasoline 986 1,038 996 927 987 986 986
Distillates 834 969 935 882 905 903 903
Other   418     457     468     452     449   442                 442  
Total   2,238     2,464     2,399     2,261     2,341   2,331                 2,331  
 
Petroleum Products Sales (MB/D)
Gasoline 1,249 1,319 1,280 1,321 1,292 1,270 1,270
Distillates 1,089 1,201 1,199 1,263 1,189 1,203 1,203
Other   471     524     627     613     559   587                 587  
Total   2,809     3,044     3,106     3,197     3,040   3,060                 3,060  
 
Market Indicators
U.S. East Coast Crack Spread ($/BBL) 8.21 10.71 8.84 11.83 9.90 19.09 19.09
U.S. Gulf Coast Crack Spread ($/BBL) 6.70 9.90 7.45 7.79 7.96 17.25 17.25
U.S. Group Central Crack Spread ($/BBL) 6.82 11.38 10.58 9.17 9.49 18.95 18.95
U.S. West Coast Crack Spread ($/BBL) 9.72 14.95 14.97 12.58 13.06 16.14 16.14
U.S. Weighted 3:2:1 Crack Spread ($/BBL) 7.68 11.44 9.97 9.95 9.76 17.76 17.76
NW Europe Crack Spread ($/BBL) 9.25 11.60 9.84 12.04 10.68 12.31 12.31
Singapore 3:1:2 Crack Spread ($/BBL)   10.17     10.68     11.13     12.25     11.06   16.33                 16.33  
 
Realized Margins
Refining Margin ($/BBL)
U.S. 5.62 8.82 6.53 7.06 7.05 10.05 10.05
International 8.73 10.27 4.41 12.20 8.90 8.28 8.28
Integrated Margin ($/BBL)
U.S. 6.07 10.40 7.21 7.55 7.87 10.16 10.16
International   11.60     13.82     7.68     14.37     11.85   9.34                 9.34  
 
DD&A ($ Millions)   214     211     199     208     832   207                 207  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions)   (47 )   (55 )   42     -     (60 ) 31                 31  
 
Turnaround Expense ($ Millions)   72     94     86     207     459   81                 81  
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) 379 410 387 269 361 392 392
Total Charge Input (MB/D) 406 457 433 347 411 443 443
Crude Oil Capacity Utilization (%) 90 % 97 % 91 % 64 % 85 % 93 % 93 %
Clean Product Yield (%)   89 %   89 %   89 %   90 %   89 % 91 %               91 %
 
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 641 730 664 636 668 614 614
Total Charge Input (MB/D) 731 804 730 701 741 685 685
Crude Oil Capacity Utilization (%) 87 % 100 % 90 % 87 % 91 % 84 % 84 %
Clean Product Yield (%)   82 %   82 %   81 %   78 %   81 % 80 %               80 %
 
Western U.S.
Crude Oil Charge Input (MB/D) 374 394 394 377 385 371 371
Total Charge Input (MB/D) 389 425 416 395 406 397 397
Crude Oil Capacity Utilization (%) 90 % 95 % 95 % 90 % 92 % 89 % 89 %
Clean Product Yield (%)   82 %   83 %   81 %   82 %   82 % 83 %               83 %
 
Central U.S. - Consolidated
Crude Oil Charge Input (MB/D) 170 189 187 152 175 177 177
Total Charge Input (MB/D) 172 191 190 153 177 179 179
Crude Oil Capacity Utilization (%) 91 % 101 % 100 % 81 % 93 % 94 % 94 %
Clean Product Yield (%)   91 %   92 %   92 %   92 %   92 % 91 %               91 %
 
Central U.S. - Equity Affiliates - Net Share*
Crude Oil Charge Input (MB/D) 178 190 201 205 193 181 181
Total Charge Input (MB/D) 189 202 205 218 203 194 194
Crude Oil Capacity Utilization (%) 79 % 84 % 89 % 91 % 86 % 80 % 80 %
Clean Product Yield (%)   83 %   82 %   79 %   82 %   82 % 80 %               80 %
 
Total U.S.
Crude Oil Charge Input (MB/D) 1,742 1,913 1,833 1,639 1,782 1,735 1,735
Total Charge Input (MB/D) 1,887 2,079 1,974 1,814 1,938 1,898 1,898
Crude Oil Capacity Utilization (%) 88 % 96 % 92 % 83 % 90 % 87 % 87 %
Clean Product Yield (%)   84 %   85 %   84 %   83 %   84 % 85 %               85 %
 
Refined Products Production (MB/D)
Gasoline 873 938 869 786 867 853 853
Distillates 679 785 746 683 723 717 717
Other   349     377     377     369     368   344                 344  
Total   1,901     2,100     1,992     1,838     1,958   1,914                 1,914  
 
Petroleum Products Sales (MB/D)
Gasoline 1,092 1,170 1,103 1,115 1,120 1,099 1,099
Distillates 807 921 874 890 873 852 852
Other   366     387     432     413     400   437                 437  
Total   2,265     2,478     2,409     2,418     2,393   2,388                 2,388  
*Represents 50 percent share of the Borger Refinery and Wood River Refinery.
 
International R&M
International - Consolidated*
Crude Oil Charge Input (MB/D) 276 255 285 280 274 272 272
Total Charge Input (MB/D) 288 262 295 288 283 279 279
Crude Oil Capacity Utilization (%) 50 % 46 % 52 % 51 % 50 % 93 % 93 %
Clean Product Yield (%)   80 %   75 %   77 %   79 %   78 % 75 %               75 %
 
International - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D) 48 107 114 130 100 138 138
Total Charge Input (MB/D) 51 107 114 133 102 138 138
Crude Oil Capacity Utilization (%) 41 % 90 % 96 % 109 % 84 % 103 % 103 %
Clean Product Yield (%)   81 %   87 %   83 %   87 %   85 % 84 %               84 %
 
Total International
Crude Oil Charge Input (MB/D) 324 362 399 410 374 410 410
Total Charge Input (MB/D) 339 369 409 421 385 417 417
Crude Oil Capacity Utilization (%) 48 % 54 % 60 % 61 % 56 % 96 % 96 %
Clean Product Yield (%)   81 %   78 %   79 %   82 %   80 % 78 %               78 %
 
Refined Products Production (MB/D)
Gasoline 113 100 127 141 120 133 133
Distillates 155 184 189 199 182 186 186
Other   69     80     91     83     81   98                 98  
Total   337     364     407     423     383   417                 417  
 
Petroleum Products Sales (MB/D)
Gasoline 157 149 177 206 172 171 171
Distillates 282 280 325 373 316 351 351
Other   105     137     195     200     159   150                 150  
Total   544     566     697     779     647   672                 672  
*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               73
 
U.S. Equity Affiliate ($ Millions)*   53   31   39   68   191 48               48
 
NGL Extracted (MB/D)
Equity Affiliates
United States* 176 181 189 191 184 179 179
International   10   9   9   8   9 9               9
Total   186   190   198   199   193 188               188
*Represents 50 percent interest in DCP Midstream.
 
NGL Fractionated (MB/D)
United States* 140 138 116 141 134 121 121
International   19   18   18   16   18 18               18
Total   159   156   134   157   152 139               139
*Excludes DCP Midstream.
 
Product Prices
Weighted Average NGL ($/BBL)*
Consolidated 48.93 43.21 40.55 48.98 45.42 53.55 53.55
DCP Midstream   45.65   38.11   36.66   44.68   41.28 47.64               47.64
*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               2
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               193
 
Industry Margins (Cents/Lb)*
Ethylene industry cash margin 18.2 19.6 11.2 12.1 15.2 16.7 16.7
HDPE industry contract sales margin 17.3 24.5 28.2 24.8 23.7 25.1 25.1
Styrene industry contract sales margin   10.3   12.3   10.1   12.0   11.2 11.7               11.7

*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 )               (7 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Power 29 17 8 (5 ) 49 22 22
Other   (23 )   (27 )   (28 )   (30 )   (108 ) (29 )               (29 )
Total   6     (10 )   (20 )   (35 )   (59 ) (7 )               (7 )
 
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 )               (304 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Net interest expense (222 ) (254 ) (285 ) (204 ) (965 ) (181 ) (181 )
Corporate overhead (36 ) (47 ) (37 ) (89 ) (209 ) (63 ) (63 )
Other   (52 )   (88 )   46     (12 )   (106 ) (60 )               (60 )
Total   (310 )   (389 )   (276 )   (305 )   (1,280 ) (304 )               (304 )
 
Before-Tax Net Interest Expense ($ Millions)
Interest expense (383 ) (433 ) (351 ) (351 ) (1,518 ) (342 ) (342 )
Capitalized interest 119 119 121 112 471 112 112
Interest revenue 6 14 13 31 64 39 39
Premium on early debt retirement   -     -     (146 )   -     (146 ) -                 -  
Total   (258 )   (300 )   (363 )   (208 )   (1,129 ) (191 )               (191 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions)   (19 )   (70 )   60     14     (15 ) (12 )               (12 )
 
Debt
Total Debt ($ Millions) 28,988 26,279 23,601 23,592 23,592 23,209 23,209
Debt-to-Capital Ratio (%)   31 %   28 %   25 %   25 %   25 % 25 %               25 %
 
Equity ($ Millions)   63,417     65,945     69,917     69,109     69,109   70,521                 70,521  


Page 12 of 12

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