CONOCOPHILLIPS - FORM 8-K - EX-99.2 - EXHIBIT 99.2 - April 23, 2012

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Exhibit 99.2

CONSOLIDATED INCOME STATEMENT

Millions of Dollars
2011   2012
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* 56,530 65,627 62,784 59,872 244,813 56,132 56,132
Equity in earnings of affiliates 1,017 1,160 1,298 602 4,077 1,220 1,220
Gain on dispositions 616 78 (480 ) 1,793 2,007 942 942
Other income 84   96   27   122   329   60         60  
Total Revenues and Other Income 58,247   66,961   63,629   62,389   251,226   58,354         58,354  
 
Costs and Expenses
Purchased crude oil, natural gas and products 42,376 50,133 47,597 45,761 185,867 41,889 41,889
Production and operating expenses 2,628 2,606 2,768 2,768 10,770 2,696 2,696
Selling, general and administrative expenses 499 514 466 599 2,078 685 685
Exploration expenses 176 264 266 360 1,066 679 679
Depreciation, depletion and amortization 2,070 2,075 1,870 1,919 7,934 1,838 1,838
Impairments - 2 486 304 792 259 259
Taxes other than income taxes* 4,364 4,830 4,579 4,534 18,307 4,521 4,521
Accretion on discounted liabilities 112 115 114 114 455 114 114
Interest and debt expense 262 247 235 228 972 209 209
Foreign currency transaction (gains) losses (36 ) (17 ) 68   (31 ) (16 ) (11 )       (11 )
Total Costs and Expenses 52,451   60,769   58,449   56,556   228,225   52,879         52,879  
Income before income taxes 5,796 6,192 5,180 5,833 23,001 5,475 5,475
Provision for income taxes 2,754   2,773   2,549   2,423   10,499   2,520         2,520  
Net Income 3,042 3,419 2,631 3,410 12,502 2,955 2,955
Less: net income attributable to
noncontrolling interests (14 ) (17 ) (15 ) (20 ) (66 ) (18 )       (18 )
Net Income Attributable to ConocoPhillips 3,028   3,402   2,616   3,390   12,436   2,937         2,937  
*Includes excise taxes on petroleum products sales: 3,382 3,554 3,596 3,422 13,954 3,321 3,321
 
 
Net Income Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic 2.11 2.43 1.93 2.58 9.04 2.29 2.29
Diluted 2.09   2.41   1.91   2.56   8.97   2.27         2.27  
 
Average Common Shares Outstanding (in thousands)
Basic 1,432,285 1,399,473 1,357,710 1,312,184 1,375,035 1,283,493 1,283,493
Diluted 1,445,477   1,412,147   1,369,562   1,322,773   1,387,100   1,293,104         1,293,104  

SUMMARY OF INCOME (LOSS) ATTRIBUTABLE TO CONOCOPHILLIPS BY SEGMENT
 
Millions of Dollars
2011 2012
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P 863 817 816 758 3,254 870 870
International E&P 1,489   1,707   946   846   4,988   1,678         1,678  
Total E&P 2,352   2,524   1,762   1,604   8,242   2,548         2,548  
 
Midstream 73   130   137   118   458   93         93  
 
U.S. R&M 402 692 789 1,712 3,595 415 415
International R&M 80   74   -   2   156   37         37  
Total R&M 482   766   789   1,714   3,751   452         452  
 
LUKOIL Investment 239 - - - 239 - -
 
Chemicals 193 199 197 156 745 218 218
 
Emerging Businesses (7 ) (14 ) (2 ) (3 ) (26 ) (14 ) (14 )
 
Corporate and Other (304 ) (203 ) (267 ) (199 ) (973 ) (360 ) (360 )
                     
Consolidated 3,028   3,402   2,616   3,390   12,436   2,937         2,937  

SUMMARY OF INCOME (LOSS) BEFORE TAXES BY SEGMENT

Millions of Dollars
2011   2012
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P 1,362 1,291 1,276 1,226 5,155 1,394 1,394
International E&P 3,248   3,535   2,644   2,551   11,978   3,425         3,425  
Total E&P 4,610   4,826   3,920   3,777   17,133   4,819         4,819  
 
Midstream 111   192   208   183   694   140         140  
 
U.S. R&M 685 1,129 1,218 2,046 5,078 596 596
International R&M 114   93   (94 ) 1   114   80         80  
Total R&M 799   1,222   1,124   2,047   5,192   676         676  
 
LUKOIL Investment 362 - - - 362 - -
 
Chemicals 260 265 263 182 970 300 300
 
Emerging Businesses (15 ) (25 ) (27 ) (9 ) (76 ) (24 ) (24 )
 
Corporate and Other (331 ) (288 ) (308 ) (347 ) (1,274 ) (436 ) (436 )
                     
Consolidated 5,796   6,192   5,180   5,833   23,001   5,475         5,475  

EFFECTIVE TAX RATES
 
2011 2012
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
U.S. E&P 36.6 % 36.7 % 36.0 % 38.3 % 36.9 % 37.6 % 37.6 %
International E&P 53.8 % 51.3 % 63.7 % 66.1 % 57.8 % 50.6 %       50.6 %
Total E&P 48.7 % 47.4 % 54.7 % 57.1 % 51.5 % 46.8 %       46.8 %
 
Midstream 34.2 % 32.3 % 33.7 % 36.1 % 34.0 % 33.6 %       33.6 %
 
U.S. R&M 41.0 % 38.6 % 35.1 % 16.2 % 29.1 % 30.1 % 30.1 %
International R&M 30.7 % 19.4 % 100.0 % -100.0 % -36.8 % 53.8 %       53.8 %
Total R&M 39.5 % 37.2 % 29.7 % 16.2 % 27.6 % 32.8 %       32.8 %
 
LUKOIL Investment 34.0 % - - - 34.0 % - -
 
Chemicals 25.8 % 24.9 % 25.1 % 14.3 % 23.2 % 27.3 % 27.3 %
 
Emerging Businesses 53.3 % 44.0 % 88.9 % 66.7 % 64.5 % 41.7 % 41.7 %
 
Corporate and Other 8.2 % 29.5 % 13.3 % 42.7 % 23.6 % 17.4 % 17.4 %
                     
Consolidated 47.5 % 44.8 % 49.2 % 41.6 % 45.6 % 46.0 %       46.0 %

ESTIMATED TAXES PAID
 
Millions of Dollars
2011 2012
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
 
Cash income taxes paid 2,722 2,730 2,251 2,858 10,561 1,462 1,462
Taxes other than income taxes 4,364 4,830 4,579 4,534 18,307 4,521 4,521
Less: Excise taxes* (3,382 ) (3,554 ) (3,596 ) (3,422 ) (13,954 ) (3,321 )       (3,321 )
Estimated Taxes Paid 3,704   4,006   3,234   3,970   14,914   2,662         2,662  
*Represents taxes collected by ConocoPhillips and reimbursed to taxing authorities.

SPECIAL ITEMS INCLUDED IN NET IMOME ATTRIBUTABLE TO CONOCOPHILLIPS (AFTER-TAX)

Millions of Dollars
2011   2012
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 151 (1 ) (1 ) (3 ) 146 - -
Impairments - - - (44 ) (44 ) - -
Cancelled projects - (54 ) -   -   (54 ) -         -  
Total 151 (55 ) (1 ) (47 ) 48   -         -  
 
International E&P
Gain (loss) on asset sales 4 28 (279 ) (12 ) (259 ) 937 937
Impairments - - - (585 ) (585 ) (520 ) (520 )
Bohai Bay incident - - (41 ) (101 ) (142 ) - -
International tax law changes - -   (109 ) -   (109 ) -         -  
Total 4 28   (429 ) (698 ) (1,095 ) 417         417  
 
Total E&P 155 (27 ) (430 ) (745 ) (1,047 ) 417         417  
 
Midstream
                     
Total - -   -   -   -   -         -  
 
U.S. R&M
Gain (loss) on asset sales 2 26 6 1,545 1,579 50 50
Impairments - - (314 ) - (314 ) - -
Cancelled projects - - - (28 ) (28 ) - -
Severance accrual - -   (15 ) -   (15 ) -         -  
Total 2 26   (323 ) 1,517   1,222   50         50  
 
International R&M
Gain (loss) on asset sales - - (80 ) (4 ) (84 ) - -
Impairments - -   (4 ) -   (4 ) (42 )       (42 )
Total - -   (84 ) (4 ) (88 ) (42 )       (42 )
 
Total R&M 2 26   (407 ) 1,513   1,134   8         8  
 
LUKOIL Investment
Gain (loss) on asset sales 237 -   -   -   237   -         -  
Total 237 -   -   -   237   -         -  
 
Chemicals
                     
Total - -   -   -   -   -         -  
 
Emerging Businesses
                     
Total - -   -   -   -   -         -  
 
Corporate and Other
Impairments - - - (20 ) (20 ) - -
Repositioning costs - -   -   (25 ) (25 ) (95 )       (95 )
Total - -   -   (45 ) (45 ) (95 )       (95 )
 
Total Company 394 (1 ) (837 ) 723   279   330         330  

CASH FLOW INFORMATION

Millions of Dollars
2011   2012
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 3,042 3,419 2,631 3,410 12,502 2,955 2,955
Depreciation, depletion and amortization 2,070 2,075 1,870 1,919 7,934 1,838 1,838
Impairments - 2 486 304 792 259 259
Dry hole costs and leasehold impairments 50 89 151 180 470 518 518
Accretion on discounted liabilities 112 115 114 114 455 114 114
Deferred taxes 87 429 293 478 1,287

258

258

Undistributed equity earnings (523 ) (570 ) (299 ) 315 (1,077 ) (423 ) (423 )
Loss (gain) on dispositions (616 ) (78 ) 480 (1,793 ) (2,007 ) (942 ) (942 )
Other (185 ) (67 ) 36 (143 ) (359 ) (404 ) (404 )
Net working capital changes (2,090 ) 860   (149 ) 1,028   (351 )

9

 

     

9

 

Net Cash Provided by

Operating Activities

1,947   6,274   5,613   5,812   19,646   4,182         4,182  
 
Cash Flows from Investing Activities
Capital expenditures and investments (2,884 ) (2,893 ) (3,617 ) (3,872 ) (13,266 ) (4,260 ) (4,260 )
Proceeds from asset dispositions 1,787 162 209 2,662 4,820 1,109 1,109
Net sales (purchases) of short-term investments (1,170 ) (424 ) (29 ) 2,023 400 92 92
Long-term advances to/collections from
related parties and other investments 56   472   192   311   1,031   49         49  

Net Cash Provided by (Used in)

Investing Activities

(2,211

) (2,683 ) (3,245 ) 1,124   (7,015 ) (3,010 )       (3,010 )
 
Cash Flows from Financing Activities
Net issuance (repayment) of debt (373 ) (19 ) (48 ) (521 ) (961 ) 5,740 5,740
Change in restricted cash - - - - - (6,050 ) (6,050 )
Issuance of company common stock 75 24 10 (13 ) 96 36 36
Repurchase of company common stock (1,636 ) (3,149 ) (3,199 ) (3,139 ) (11,123 ) (1,899 ) (1,899 )
Dividends paid on company common stock (944 ) (917 ) (900 ) (871 ) (3,632 ) (843 ) (843 )
Other (183 ) (174 ) (185 ) (143 ) (685 ) (254 )       (254 )
Net Cash Used in
Financing Activities (3,061 ) (4,235 ) (4,322 ) (4,687 ) (16,305 ) (3,270 )       (3,270 )
 
Effect of Exchange Rate Changes 43   (23 ) (114 ) 94   -   25         25  
 
Net Change in Cash
and Cash Equivalents (3,282 ) (667 ) (2,068 ) 2,343 (3,674 ) (2,073 ) (2,073 )
Cash and cash equivalents
at beginning of period 9,454   6,172   5,505   3,437   9,454   5,780         5,780  
Cash and Cash Equivalents
at End of Period 6,172   5,505   3,437   5,780   5,780   3,707         3,707  

CAPITAL PROGRAM
 
Millions of Dollars
2011 2012
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
E&P
Capital expenditures and investments 2,692 2,627 3,313 3,373 12,005 3,981 3,981
Loans and advances (4 ) 7 11 (5 ) 9 (4 ) (4 )
Joint venture acquisition obligation--principal 170   173 175 177   695 180         180  
E&P total 2,858   2,807 3,499 3,545   12,709 4,157         4,157  
Midstream* 3 1 5 8 17 4 4
R&M
Capital expenditures and investments 156 222 250 366 994 214 214
Loans and advances -   - - -   - -         -  
R&M total 156   222 250 366   994 214         214  
LUKOIL Investment* - - - - - - -
Chemicals* - - - - - - -
Emerging Businesses* 6 8 7 9 30 15 15
Corporate and Other* 27   35 42 116   220 46         46  
Total Capital Program 3,050   3,073 3,803 4,044   13,970 4,436         4,436  
*Capital expenditures and investments only.

E&P

2011   2012
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) 2,352   2,524   1,762   1,604 8,242 2,548         2,548  
 
Production
 
Total, Including Equity Affiliates (MBOE/D) 1,702   1,640   1,538   1,597 1,619 1,637         1,637  
 
Crude Oil and Natural Gas Liquids (NGL) (MB/D)
Consolidated operations 800 758 693 739 747 774 774
Equity affiliates 60   56   48   44 52 42         42  
Total 860   814   741   783 799 816         816  
Over/(Under) Lifting of Crude Oil (MB/D) 12   9   8   4 7 (11 )       (11 )
 
Bitumen (MB/D)
Consolidated operations 11 8 11 11 10 11 11
Equity affiliates 53   59   53   62 57 73         73  
Total 64   67   64   73 67 84         84  
 
Natural Gas (MMCF/D)
Consolidated operations 4,162 4,031 3,918 3,985 4,024 3,917 3,917
Equity affiliates 507   521   479   462 492 505         505  
Total 4,669   4,552   4,397   4,447 4,516 4,422         4,422  
 
Industry Prices (Platt's)
Crude Oil ($/BBL)
WTI spot 93.98 102.44 89.70 94.07 95.05 102.99 102.99
Brent dated 104.97 117.36 113.46 109.31 111.27 118.49 118.49
Natural Gas ($/MMBTU)
Henry Hub -- First of Month 4.11   4.32   4.20   3.54 4.04 2.72         2.72  
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Consolidated operations 91.30 103.91 97.10 96.44 97.12 101.23 101.23
Equity affiliates 94.95 103.82 99.24 96.11 98.60 107.41 107.41
Total 91.55   103.90   97.24   96.42 97.22 101.56         101.56  
 
Bitumen ($/BBL)
Consolidated operations 47.94 56.91 45.79 69.04 55.16 64.95 64.95
Equity affiliates 56.15 67.05 60.65 70.42 63.93 60.04 60.04
Total 54.77   65.74   58.14   70.20 62.56 60.66         60.66  
 
Natural Gas ($/MCF)
Consolidated operations 5.54 5.79 5.77 5.47 5.64 5.09 5.09
Equity affiliates 2.59 3.28 2.85 2.83 2.89 2.58 2.58
Total 5.22   5.50   5.45   5.19 5.34 4.80         4.80  
 
Exploration Charges ($ Millions)
Dry holes 9 48 111 141 309 6 6
Leasehold impairment 41   41   40   39 161 512         512  
Total Noncash Charges 50 89 151 180 470 518 518
Other (G&A, G&G and Lease rentals) 126   175   115   180 596 161         161  
Total Exploration Charges 176   264   266   360 1,066 679         679  
 
Depreciation, Depletion and
Amortization (DD&A) ($ Millions) 1,830   1,829   1,625   1,657 6,941 1,599         1,599  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (4 ) (5 ) (24 ) 50 17 2         2  

U.S. E&P

2011   2012
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) 863 817 816 758   3,254 870       870
 
Alaska ($ Millions) 549 490 501 443   1,983 616       616
Lower 48 ($ Millions) 314 327 315 315   1,271 254       254
 
Production
Total U.S. (MBOE/D) 629 658 643 681   653 687       687
 
Crude Oil and NGL (MB/D)
Alaska 214 223 199 227 215 226 226
Lower 48 150 160 174 186   168 201       201
Total 364 383 373 413   383 427       427
Over/(Under) Lifting of Crude Oil (MB/D) 38 6 11 (20 ) 8 27       27
 
Natural Gas (MMCF/D)
Alaska 67 62 56 59 61 59 59
Lower 48 1,522 1,589 1,561 1,547   1,556 1,502       1,502
Total 1,589 1,651 1,617 1,606   1,617 1,561       1,561
 
Average Realized Prices
Crude Oil and NGL ($/BBL)
Alaska 95.56 113.75 107.26 108.51 105.95 112.20 112.20
Lower 48 69.34 77.99 72.39 76.08 74.09 76.40 76.40
Total U.S. 85.36 98.43 90.95 92.47   91.77 95.71       95.71
 
Natural Gas ($/MCF)
Alaska 3.93 4.66 5.04 4.69 4.56 4.68 4.68
Lower 48 4.11 4.22 4.15 3.48 3.99 2.65 2.65
Total U.S. 4.10 4.23 4.17 3.52   4.01 2.72       2.72
 
Kenai, Alaska LNG Sales
Volume (MMCF/D) 20 18 45 20   26 -       -
Sales price per MCF 12.94 9.95 13.14 17.41   13.38 -       -
 
U.S. Exploration Charges ($ Millions)
Dry holes 6 10 36 38 90 6 6
Leasehold impairment 22 22 20 22   86 14       14
Total Noncash Charges 28 32 56 60 176 20 20
Other (G&A, G&G and Lease rentals) 41 76 49 54   220 67       67
Total U.S. Exploration Charges 69 108 105 114   396 87       87
Alaska Only 8 6 5 7   26 9       9
 
DD&A ($ Millions)
Alaska 136 151 134 155 576 135 135
Lower 48 513 530 551 558   2,152 601       601
Total U.S. 649 681 685 713   2,728 736       736

INTERNATIONAL E&P

2011   2012
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) 1,489   1,707 946   846 4,988   1,678         1,678  
 
Production
Total, Including Equity Affiliates (MBOE/D) 1,073   982 895   917 966   950         950  
 
Crude Oil and NGL (MB/D)
Consolidated operations
Canada 37 36 37 43 38 38 38
Norway 131 117 113 119 120 117 117
United Kingdom 65 63 46 48 55 49 49
Australia/Timor-Leste 32 28 30 28 30 29 29
China 77 70 35 26 52 23 23
Indonesia 11 11 12 11 11 16 16
Vietnam 22 19 17 15 18 11 11
Algeria 13 13 13 13 13 12 12
Libya 28 - - 4 8 35 35
Nigeria 20   18 17   19 19   17         17  
Total consolidated operations 436 375 320 326 364 347 347
Equity affiliates 60   56 48   44 52   42         42  
Total 496   431 368   370 416   389         389  
Over/(Under) Lifting of Crude Oil (MB/D) (26 ) 3 (3 ) 24 (1 ) (38 )       (38 )
 
Bitumen (MB/D)
Consolidated operations--Canada 11 8 11 11 10 11 11
Equity affiliates 53   59 53   62 57   73         73  
Total 64   67 64   73 67   84         84  
 
Natural Gas (MMCF/D)
Consolidated operations
Canada 944 947 929 891 928 863 863
Norway 208 130 130 185 163 195 195
United Kingdom 543 457 381 472 463 437 437
Australia/Timor-Leste 237 236 253 209 234 249 249
Indonesia 467 445 437 451 450 441 441
Vietnam 16 13 10 7 11 7 7
Libya 5 - - 1 1 3 3
Nigeria 153   152 161   163 157   161         161  
Total consolidated operations 2,573 2,380 2,301 2,379 2,407 2,356 2,356
Equity affiliates 507   521 479   462 492   505         505  
Total 3,080   2,901 2,780   2,841 2,899   2,861         2,861  
 
Darwin, Australia LNG Sales (MMCF/D) 420   410 424   424 420   427         427  

INTERNATIONAL E&P (continued)

2011   2012
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 62.27 71.06 67.51 63.86 66.07 63.98 63.98
Norway 104.90 116.79 112.73 108.65 110.45 120.13 120.13
United Kingdom 93.94 107.82 108.31 104.86 104.34 109.87 109.87
Australia/Timor-Leste 91.02 100.09 94.72 90.41 94.07 103.28 103.28
China 100.54 116.85 114.31 114.74 109.98 122.02 122.02
Indonesia 94.31 108.04 104.13 101.25 101.96 102.72 102.72
Vietnam 107.37 121.92 118.29 116.23 115.50 126.02 126.02
Algeria 105.21 120.09 112.63 109.77 112.69 123.50 123.50
Libya 98.30 - - - 98.30 121.68 121.68
Nigeria 91.53 107.50 100.29 90.34 97.35 103.81 103.81
Total consolidated operations 96.86 109.35 104.40 100.72 102.68 109.10 109.10
Equity affiliates 94.95 103.82 99.24 96.11 98.60 107.41 107.41
Total 96.62 108.62 103.70 100.17 102.16 108.90       108.90
 
Bitumen ($/BBL)
Consolidated operations--Canada 47.94 56.91 45.79 69.04 55.16 64.95 64.95
Equity affiliates 56.15 67.05 60.65 70.42 63.93 60.04 60.04
Total 54.77 65.74 58.14 70.20 62.56 60.66       60.66
 
Natural Gas ($/MCF)
Consolidated operations
Canada 3.59 3.74 3.56 2.93 3.46 1.98 1.98
Norway 9.61 10.57 9.89 10.09 10.00 10.40 10.40
United Kingdom 8.18 9.25 8.78 9.80 8.99 9.80 9.80
Australia/Timor-Leste* 0.81 0.90 1.16 1.12 1.00 1.10 1.10
Indonesia 9.43 10.98 10.18 10.01 10.14 10.37 10.37
Vietnam 1.16 1.11 1.07 1.19 1.13 1.15 1.15
Libya 0.09 - - - 0.09 0.09 0.09
Nigeria 2.15 2.10 2.36 2.36 2.25 2.53 2.53
Total consolidated operations 6.43 6.86 6.88 6.78 6.73 6.65 6.65
Equity affiliates 2.59 3.28 2.85 2.83 2.89 2.58 2.58
Total 5.80 6.22 6.19 6.14 6.08 5.93       5.93
 
International Exploration Charges ($ Millions)
Dry holes 3 38 75 103 219 - -
Leasehold impairment 19 19 20 17 75 498       498
Total Noncash Charges 22 57 95 120 294 498 498
Other (G&A, G&G and Lease rentals) 85 99 66 126 376 94       94
Total International Exploration Charges 107 156 161 246 670 592       592
 
DD&A ($ Millions) 1,181 1,148 940 944 4,213 863       863
*Excludes transfers to Darwin LNG plant.

R&M

2011   2012
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) 482   766   789   1,714   3,751   452         452  
 
United States ($ Millions) 402   692   789   1,712   3,595   415         415  
International ($ Millions) 80   74   -   2   156   37         37  
 
Worldwide - Including Net Share of Equity Affiliates
Crude Oil Charge Input (MB/D) 2,145 2,196 2,223 2,101 2,166 2,027 2,027
Total Charge Input (MB/D) 2,315 2,398 2,393 2,250 2,338 2,188 2,188
Crude Oil Capacity Utilization (%) 89 % 91 % 92 % 94 % 92 % 91 % 91 %
Clean Product Yield (%) 83 % 83 % 84 % 84 % 84 % 84 %       84 %
 
Refined Products Production (MB/D)
Gasoline 986 1,013 1,003 924 982 897 897
Distillates 903 932 950 928 928 895 895
Other 442   463   445   416   441   416        

416

 
Total 2,331   2,408   2,398   2,268   2,351   2,208        

2,208

 
 
Petroleum Products Sales (MB/D)
Gasoline 1,270 1,409 1,300 1,256 1,309 1,131 1,131
Distillates 1,203 1,177 1,250 1,245 1,219 1,135 1,135
Other 587   568   639   607   600   452         452  
Total 3,060   3,154   3,189   3,108   3,128   2,718         2,718  
 
Market Indicators
U.S. East Coast Crack Spread ($/BBL) 19.09 25.30 33.70 22.94 25.26 25.79 25.79
U.S. Gulf Coast Crack Spread ($/BBL) 17.25 25.25 31.76 19.37 23.41 24.22 24.22
U.S. Group Central Crack Spread ($/BBL) 18.95 27.26 34.12 20.75 25.27 21.33 21.33
U.S. West Coast Crack Spread ($/BBL) 16.14 15.86 11.78 10.74 13.63 16.63 16.63
U.S. Weighted 3:2:1 Crack Spread ($/BBL) 17.76 23.70 28.47 18.16 22.02 22.01 22.01
NW Europe Crack Spread ($/BBL) 12.31 11.88 13.09 13.97 12.81 12.73 12.73
Singapore 3:1:2 Crack Spread ($/BBL) 16.33   17.75   17.53   15.12   16.68   15.67         15.67  
 
Realized Margins
Refining Margin ($/BBL)
U.S. 10.05 10.55 13.70 7.21 10.45 10.65 10.65
International 8.28 4.21 6.50 4.91 5.95 7.29 7.29
Integrated Margin ($/BBL)
U.S. 10.16 11.70 14.79 7.86 11.21 10.87 10.87
International 9.34   7.75   10.78   7.91   8.92   8.82         8.82  
 
DD&A ($ Millions) 207   213   209   228   857   204         204  
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) 31   22   (16 ) (14 ) 23   16         16  
 
Turnaround Expense ($ Millions) 81   82   44   90   297   176         176  

R&M (continued)

2011   2012
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) 392 376 382 236 346 236 236
Total Charge Input (MB/D) 443 432 419 263 389 267 267
Crude Oil Capacity Utilization (%) 93 % 89 % 90 % 99 % 92 % 99 % 99 %
Clean Product Yield (%) 91 % 90 % 90 % 92 % 91 % 92 %       92 %
 
U.S. Gulf Coast
Crude Oil Charge Input (MB/D) 614 664 668 684 658 600 600
Total Charge Input (MB/D) 685 758 754 759 739 672 672
Crude Oil Capacity Utilization (%) 84 % 91 % 91 % 93 % 90 % 82 % 82 %
Clean Product Yield (%) 80 % 82 % 82 % 82 % 82 % 80 %       80 %
 
Western U.S.
Crude Oil Charge Input (MB/D) 371 353 396 394 378 353 353
Total Charge Input (MB/D) 397 381 420 419 404 381 381
Crude Oil Capacity Utilization (%) 89 % 85 % 95 % 94 % 91 % 85 % 85 %
Clean Product Yield (%) 83 % 81 % 84 % 85 % 84 % 87 %       87 %
 
Central U.S. - Consolidated
Crude Oil Charge Input (MB/D) 177 189 175 157 174 199 199
Total Charge Input (MB/D) 179 191 177 159 176 202 202
Crude Oil Capacity Utilization (%) 94 % 101 % 94 % 84 % 93 % 106 % 106 %
Clean Product Yield (%) 91 % 93 % 91 % 92 % 92 % 93 %       93 %
 
Central U.S. - Equity Affiliates - Net Share*
Crude Oil Charge Input (MB/D) 181 203 206 212 201 222 222
Total Charge Input (MB/D) 194 213 216 222 211 232 232
Crude Oil Capacity Utilization (%) 80 % 90 % 91 % 94 % 89 % 98 % 98 %
Clean Product Yield (%) 80 % 80 % 81 % 84 % 82 % 84 %       84 %
 
Total U.S.
Crude Oil Charge Input (MB/D) 1,735 1,785 1,827 1,683 1,757 1,610 1,610
Total Charge Input (MB/D) 1,898 1,975 1,986 1,822 1,919 1,754 1,754
Crude Oil Capacity Utilization (%) 87 % 90 % 92 % 93 % 91 % 89 % 89 %
Clean Product Yield (%) 85 % 84 % 85 % 85 % 85 % 85 %       85 %
 
Refined Products Production (MB/D)
Gasoline 853 886 878 786 851 754 754
Distillates 717 738 765 728 737 696 696
Other 344   362   348   325   344   325        

325

 
Total 1,914   1,986   1,991   1,839   1,932   1,775        

1,775

 
 
Petroleum Products Sales (MB/D)
Gasoline 1,099 1,218 1,134 1,066 1,129 958 958
Distillates 852 861 907 914 884 837 837
Other 437   385   402   381   401   298         298  
Total 2,388   2,464   2,443   2,361   2,414   2,093         2,093  
*Represents 50 percent share of the Borger Refinery and Wood River Refinery.
 
International R&M
International - Consolidated*
Crude Oil Charge Input (MB/D) 272 281 283 278 279 288 288
Total Charge Input (MB/D) 279 293 293 288 288 302 302
Crude Oil Capacity Utilization (%) 93 % 96 % 97 % 95 % 95 % 99 % 99 %
Clean Product Yield (%) 75 % 76 % 77 % 80 % 77 % 78 %       78 %
 
International - Equity Affiliates - Net Share**
Crude Oil Charge Input (MB/D) 138 130 113 140 130 129 129
Total Charge Input (MB/D) 138 130 114 140 131 132 132
Crude Oil Capacity Utilization (%) 103 % 97 % 84 % 104 % 97 % 93 % 93 %
Clean Product Yield (%) 84 % 79 % 78 % 82 % 81 % 84 %       84 %
 
Total International
Crude Oil Charge Input (MB/D) 410 411 396 418 409 417 417
Total Charge Input (MB/D) 417 423 407 428 419 434 434
Crude Oil Capacity Utilization (%) 96 % 96 % 93 % 98 % 96 % 97 % 97 %
Clean Product Yield (%) 78 % 77 % 77 % 80 % 78 % 80 %       80 %
 
Refined Products Production (MB/D)
Gasoline 133 127 125 138 131 143 143
Distillates 186 194 185 200 191 199 199
Other 98   101   97   91   97   91         91  
Total 417   422   407   429   419   433         433  
 
Petroleum Products Sales (MB/D)
Gasoline 171 191 166 190 180 173 173
Distillates 351 316 343 331 335 298 298
Other 150   183   237   226   199   154         154  
Total 672   690   746   747   714   625         625  
*Represents our Humber Refinery in the United Kingdom and Whitegate Refinery in Ireland.
**Represents 18.75 percent interest in a refinery complex in Karlsruhe, Germany, and 47 percent interest in a refinery in Melaka, Malaysia.

LUKOIL INVESTMENT

2011   2012
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) 239 - - - 239 -       -
 
Upstream
Production
Net crude oil production (MB/D) - - - - - - -
Net natural gas production (MMCF/D) - - - - - - -
Total (MBOE/D) - - - - - -       -
 
Industry Prices
Crude Oil ($/BBL)
Urals crude (CIF Mediterranean) (one-quarter lag) - - - - - -       -
 
Downstream
Refinery Throughput
Crude Processed (MB/D) - - - - - -       -
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) 2 - - - 2 -       -

MIDSTREAM

2011   2012
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) 73 130 137 118 458 93       93
 
U.S. Equity Affiliate ($ Millions)* 48 86 83 57 274 56       56
 
NGL Extracted (MB/D)
Equity Affiliates
United States* 179 189 196 203 192 206 206
International 9 9 8 8 8 7       7
Total 188 198 204 211 200 213       213
*Represents 50 percent interest in DCP Midstream.
 
NGL Fractionated (MB/D)
United States* 121 127 132 129 127 121 121
International 18 17 16 14 17 15       15
Total 139 144 148 143 144 136       136
*Excludes DCP Midstream.
 
Product Prices
Weighted Average NGL ($/BBL)*
Consolidated 53.55 59.14 59.26 59.19 57.79 52.44 52.44
DCP Midstream 47.64 52.24 52.09 50.61 50.64 42.10       42.10
*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) 2 1 2 1 6 1       1

CHEMICALS

2011   2012
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)

193 199 197 156 745 218       218
 
Industry Margins (Cents/Lb)*
Ethylene industry cash margin 16.7 26.9 23.3 11.3 19.6 31.1 31.1
HDPE industry contract sales margin 25.1 21.1 17.9 19.7 20.9 19.3 19.3
Benzene domestic contract margin 7.3 2.3 1.7 1.0 3.1 4.1       4.1

*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

2011   2012
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) (7 ) (14 ) (2 ) (3 ) (26 ) (14 )       (14 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Power 22 17 32 44 115 23 23
Other (29 ) (31 ) (34 ) (47 ) (141 ) (37 )       (37 )
Total (7 ) (14 ) (2 ) (3 ) (26 ) (14 )       (14 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) -   -   -   -   -   -         -  

CORPORATE AND OTHER

2011   2012
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) (304 ) (203 ) (267 ) (199 ) (973 ) (360 )       (360 )
 
Detail of Net Income (Loss)
Attributable to ConocoPhillips ($ Millions)
Net interest expense (181 ) (165 ) (166 ) (155 ) (667 ) (156 ) (156 )
Corporate overhead (63 ) (46 ) (34 ) (56 ) (199 ) (78 ) (78 )
Repositioning costs* - - - (25 ) (25 ) (95 ) (95 )
Other (60 ) 8   (67 ) 37   (82 ) (31 )       (31 )
Total (304 ) (203 ) (267 ) (199 ) (973 ) (360 )       (360 )
 
Before-Tax Net Interest Expense ($ Millions)
Interest expense (342 ) (330 ) (331 ) (336 ) (1,339 ) (327 ) (327 )
Capitalized interest 112 115 125 136 488 146 146
Interest revenue 39 27 19 23 108 13 13
Premium on early debt retirement -   -   -   -   -   -         -  
Total (191 ) (188 ) (187 ) (177 ) (743 ) (168 )       (168 )
 
Foreign Currency Gains
(Losses) After-Tax ($ Millions) (12 ) 19   (32 ) 45   20   (10 )       (10 )
 
Debt
Total Debt ($ Millions) 23,209 23,196 23,150 22,623 22,623 28,360 28,360
Debt-to-Capital Ratio (%) 25 % 25 % 26 % 26 % 26 % 30 %       30 %
 
Equity ($ Millions) 70,521   70,578   66,326   65,734   65,734   67,042         67,042  
*First quarter of 2012 includes $10 million of interest expense.

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