Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2020-10-29 For: 2020-10-29
View Original
Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported):   October 29, 2020

ConocoPhillips

    \(Exact name of registrant as specified in its charter\)
Delaware 001-32395 01-0562944
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation) File Number) Identification No.)

925 N. Eldridge Parkway

    Houston, Texas 77079
    \(Address of principal executive offices and zip code\)

Registrant’s telephone number, including area code:  (281) 293-1000

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $.01 Par Value Per Share COP New York Stock Exchange
7% Debentures due 2029 CUSIP-718507BK1 New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

1

Item 2.02 Results of Operations and Financial Condition.

On October 29, 2020 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2020.  A copy of the press release is furnished as Exhibit 99.1 hereto and incorporated herein by reference.  Additional financial and operating information about the quarter is furnished as Exhibit 99.2 hereto and incorporated herein by reference.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.      Description

99.1 — Press release issued by ConocoPhillips on October 29, 2020.
99.2 — Supplemental financial information.
--- --- ---
104 — Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).
--- --- ---

2

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

CONOCOPHILLIPS
Catherine A. Brooks
Vice President and Controller
October 29, 2020

3

Exhibit 99.1

ConocoPhillips Reports Third-Quarter 2020 Results and Operational Results

HOUSTON--(BUSINESS WIRE)--October 29, 2020--ConocoPhillips (NYSE: COP) today reported a third-quarter 2020 loss of $0.5 billion, or ($0.42) per share, compared with third-quarter 2019 earnings of $3.1 billion, or $2.74 per share. Excluding special items, third-quarter 2020 adjusted earnings were a loss of $0.3 billion, or ($0.31) per share, compared with third-quarter 2019 adjusted earnings of $0.9 billion, or $0.82 per share. Special items for the current quarter were primarily due to an unrealized loss on Cenovus Energy equity, partially offset by a favorable outcome from pending claims and settlements.

Third-Quarter Highlights and Recent Announcements

  • Produced 1,066 MBOED excluding Libya during the third quarter; curtailed approximately 90 MBOED.
  • Distributed $0.5 billion in dividends and announced an increase to the quarterly dividend.
  • Ended the quarter with cash, cash equivalents and restricted cash totaling $2.8 billion and short-term investments of $4.0 billion, equaling $6.8 billion in ending cash and short-term investments.
  • As part of a commitment to ESG excellence, announced adoption of a Paris-aligned climate risk framework to achieve net-zero operated emissions by 2050.
  • Completed bolt-on acquisition of adjacent acreage in the liquids-rich Montney in Canada for $0.4 billion adding over 1 BBOE of high-value resource.
  • Announced agreement to acquire Concho Resources in an all-stock transaction for 1.46 shares of ConocoPhillips common stock per share of Concho Resources.

“As we all know, the year has been historically volatile for our industry,” said Ryan Lance, chairman and chief executive officer. “ConocoPhillips responded with several prudent actions, including economically-driven curtailments, while continuing to run the base business extremely well. In the third quarter we ended our curtailment program and successfully completed our seasonal turnarounds. We remain very well-positioned financially and operationally thanks to our strong balance sheet and exceptional workforce. Now that we’re back to more normal business, we’re focused on continued strong execution of our programs and progressing our announced transaction with Concho Resources.”

Lance continued, “The combination with Concho will make us a stronger company by enhancing the quality, scale and stakeholder appeal of ConocoPhillips’ successful value proposition, which is based on balance sheet strength, disciplined low cost of supply investments, free cash flow generation, and superior returns of and on capital – all with a visible commitment to ESG excellence. This is the winning formula for our sector and we’ll be uniquely positioned to deliver on it through the cycles of our business.”

Third-Quarter Review

Production excluding Libya for the third quarter of 2020 was 1,066 thousand barrels of oil equivalent per day (MBOED). After adjusting for estimated curtailments of approximately 90 MBOED and closed acquisitions and dispositions, third-quarter 2020 production would have been 1,155 MBOED, a decrease of 46 MBOED or 4 percent from the same period a year ago. This decrease was primarily due to normal field decline partially offset by growth from the Big 3. Production from Libya was 1 MBOED as it remained in force majeure during the quarter. Turnarounds were completed during the quarter in Canada, Alaska and Malaysia.

In the Lower 48, production from the Big 3 averaged 309 MBOED, including Eagle Ford of 167 MBOED, Bakken of 75 MBOED and Permian Unconventional of 67 MBOED. Lower 48 production included curtailments of approximately 65 MBOED, primarily in Eagle Ford and Bakken. At the Surmont operation in Canada, the company curtailed approximately 15 MBOED and restored production ahead of schedule. At Montney, the first phase of development continued with start up of the second pad. In addition, drilling and completion operations progressed as planned, with the third pad on track to come on line in the first quarter of 2021. In Norway, Tor II progress continued with first oil targeted for the fourth quarter of 2020.

Earnings decreased from third-quarter 2019 due to the absence of a gain from the UK divestiture in 2019, as well as lower realized prices and lower volumes. Excluding special items, adjusted earnings were lower compared with third-quarter 2019 due to lower realized prices and volumes, partially offset by a decrease in operating costs associated with the lower volumes. The company’s total average realized price was $30.94 per barrel of oil equivalent (BOE), 34 percent lower than the $47.07 per BOE realized in the third quarter of 2019, reflecting lower marker prices.

For the quarter, cash provided by operating activities was $0.87 billion. Excluding a $0.36 billion change in operating working capital, ConocoPhillips generated cash from operations (CFO) of $1.23 billion. The company funded $1.1 billion of capital expenditures and investments, including $0.4 billion for the bolt-on acquisition in the Montney, and paid $0.5 billion in dividends. During the quarter, the company initiated a commercial paper program totaling $0.3 billion.

Nine-Month Review

ConocoPhillips’ nine-month 2020 earnings were a loss of $1.9 billion, or ($1.79) per share, compared with nine-month 2019 earnings of $6.5 billion, or $5.72 per share. Nine-month 2020 adjusted earnings were a loss of $0.8 billion, or ($0.78) per share, compared with nine-month 2019 adjusted earnings of $3.2 billion, or $2.83 per share.

Production excluding Libya for the first nine months of 2020 was 1,108 MBOED. After adjusting for estimated curtailments of approximately 105 MBOED and closed acquisitions and dispositions, production for the first nine months would have been 1,186 MBOED, an increase of 6 MBOED from the same period a year ago. This increase was primarily due to growth from the Big 3 and other development programs across the portfolio, offset by normal field decline. Production from Libya averaged 4 MBOED for the first nine months of 2020.

The company’s total realized price during this period was $31.76 per BOE, compared with $49.35 per BOE in the first nine months of 2019. This 36 percent reduction reflected lower marker prices.

In the first nine months of 2020, cash provided by operating activities was $3.1 billion. Excluding a $0.4 billion change in operating working capital, ConocoPhillips generated CFO of $3.5 billion. The company also generated $1.3 billion in disposition proceeds. In addition, the company funded $3.7 billion of capital expenditures and investments, paid $1.4 billion in dividends and repurchased $0.7 billion of shares. Capital expenditures and investments included approximately $0.5 billion of previously announced and closed acquisitions.

Outlook

Fourth-quarter 2020 production is expected to be 1,125 to 1,165 MBOED, resulting in full-year 2020 production guidance of 1,115 to 1,125 MBOED. This guidance excludes Libya.

Operating plan capital for 2020 is expected to be $4.3 billion. This guidance excludes approximately $0.5 billion for opportunistic acquisitions completed during the year.

Following the recently announced acquisition of Concho Resources, the company is standing up an integration planning team in anticipation of a closing date in the first quarter of 2021.

ConocoPhillips will host a conference call today at 12:00 p.m. Eastern time to discuss this announcement. To listen to the call and view related presentation materials and supplemental information, go to www.conocophillips.com/investor.

--- # # # ---

About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 15 countries, $63 billion of total assets, and approximately 9,800 employees at Sept. 30, 2020. Production excluding Libya averaged 1,108 MBOED for the nine months ended Sept. 30, 2020, and proved reserves were 5.3 BBOE as of Dec. 31, 2019. For more information, go to www.conocophillips.com.

CAUTIONARY STATEMENT FOR THE PURPOSES OF THE "SAFE HARBOR" PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995

This communication relates to a proposed business combination transaction between ConocoPhillips and Concho Resources. Forward-looking statements relate to future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, the anticipated impact of the proposed transaction on the combined company’s business and future financial and operating results, the expected amount and timing of synergies from the proposed transaction, and the anticipated closing date for the proposed transaction and other aspects of our operations or operating results. Words and phrases such as "anticipate," "estimate," "believe," "budget," "continue," "could," "intend," "may," "plan," "potential," "predict," "seek," "should," "will," "would," "expect," "objective," "projection," "forecast," "goal," "guidance," "outlook," "effort," "target" and other similar words can be used to identify forward-looking statements. However, the absence of these words does not mean that the statements are not forward-looking. Where, in any forward-looking statement, the company expresses an expectation or belief as to future results, such expectation or belief is expressed in good faith and believed to be reasonable at the time such forward-looking statement is made. However, these statements are not guarantees of future performance and involve certain risks, uncertainties, and other factors beyond our control. Therefore, actual outcomes and results may differ materially from what is expressed or forecast in the forward-looking statements. The following important factors and uncertainties, among others, could cause actual results or events to differ materially from those described in these forward-looking statements: the impact of public health crises, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas and the resulting actions in response to such changes, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining, or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for oil and gas production; international monetary conditions and exchange rate fluctuations; changes in international trade relationships, including the imposition of trade restrictions or tariffs on any materials or products (such as aluminum and steel) used in the operation of ConocoPhillips’ business; ConocoPhillips’ ability to collect payments when due under ConocoPhillips’ settlement agreement with PDVSA; ConocoPhillips’ ability to collect payments from the government of Venezuela as ordered by the ICSID; ConocoPhillips’ ability to liquidate the common stock issued to ConocoPhillips by Cenovus Energy Inc. at prices ConocoPhillips deems acceptable, or at all; ConocoPhillips’ ability to complete ConocoPhillips’ other announced dispositions or acquisitions on the timeline currently anticipated, if at all; the possibility that regulatory approvals for ConocoPhillips’ other announced dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of such announced dispositions, acquisitions or ConocoPhillips’ remaining business; business disruptions during or following ConocoPhillips’ other announced dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from such dispositions in the manner and timeframe ConocoPhillips currently anticipates, if at all; potential liability for remedial actions under existing or future environmental regulations and adverse results in litigation matters, including the potential for litigation related to the proposed transaction; limited access to capital or significantly higher cost of capital related to illiquidity or uncertainty in the domestic or international financial markets; general domestic and international economic and political conditions; changes in fiscal regime or tax, environmental and other laws applicable to the combined company’s business; disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; ConocoPhillips’ ability to successfully integrate Concho’s businesses and technologies; the risk that the expected benefits and synergies of the proposed transaction may not be fully achieved in a timely manner, or at all; the risk that ConocoPhillips or Concho Resources will be unable to retain and hire key personnel; the risk associated with ConocoPhillips’ and Concho’s ability to obtain the approvals of their respective stockholders required to consummate the proposed transaction and the timing of the closing of the proposed transaction, including the risk that the conditions to the transaction are not satisfied on a timely basis or at all or the failure of the transaction to close for any other reason or to close on the anticipated terms, including the anticipated tax treatment; the risk that any regulatory approval, consent or authorization that may be required for the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; unanticipated difficulties or expenditures relating to the transaction, the response of business partners and retention as a result of the announcement and pendency of the transaction; uncertainty as to the long-term value of ConocoPhillips’ common stock; and the diversion of management time on transaction-related matters. These risks, as well as other risks related to the proposed transaction, will be included in the registration statement on Form S-4 and joint proxy statement/prospectus that will be filed with the SEC in connection with the proposed transaction. While the list of factors presented here is, and the list of factors to be presented in the registration statement on Form S-4 are, considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. For additional information about other factors that could cause actual results to differ materially from those described in the forward-looking statements, please refer to ConocoPhillips’ and Concho’s respective periodic reports and other filings with the SEC, including the risk factors contained in ConocoPhillips’ and Concho’s most recent Quarterly Reports on Form 10-Q and Annual Reports on Form 10-K. Forward-looking statements represent management’s current expectations and are inherently uncertain and are made only as of the date hereof. Except as required by law, neither ConocoPhillips nor Concho Resources undertakes or assumes any obligation to update any forward-looking statements, whether as a result of new information or to reflect subsequent events or circumstances or otherwise.

No Offer or Solicitation – This communication is not intended to and shall not constitute an offer to buy or sell or the solicitation of an offer to buy or sell any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made, except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Additional Information about the Merger and Where to Find It – In connection with the proposed transaction, ConocoPhillips intends to file with the SEC a registration statement on Form S-4 that will include a joint proxy statement of ConocoPhillips and Concho Resources and that also constitutes a prospectus of ConocoPhillips. Each of ConocoPhillips and Concho Resources may also file other relevant documents with the SEC regarding the proposed transaction. This document is not a substitute for the joint proxy statement/prospectus or registration statement or any other document that ConocoPhillips or Concho Resources may file with the SEC. The definitive joint proxy statement/prospectus (if and when available) will be mailed to stockholders of ConocoPhillips and Concho Resources. INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE REGISTRATION STATEMENT, JOINT PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT MAY BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY IF AND WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION. Investors and security holders will be able to obtain free copies of the registration statement and joint proxy statement/prospectus (if and when available) and other documents containing important information about ConocoPhillips, Concho Resources and the proposed transaction, once such documents are filed with the SEC through the website maintained by the SEC at http://www.sec.gov. Copies of the documents filed with the SEC by ConocoPhillips will be available free of charge on ConocoPhillips’ website at http://www.ConocoPhillips.com or by contacting ConocoPhillips’ Investor Relations Department by email at investor.relations@ConocoPhillips.com or by phone at 281-293-5000. Copies of the documents filed with the SEC by Concho Resources will be available free of charge on Concho’s website at https://ir.concho.com/investors/.

Participants in the Solicitation – ConocoPhillips, Concho Resources and certain of their respective directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of ConocoPhillips, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in ConocoPhillips’ proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on March 30, 2020, and ConocoPhillips’ Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on February 18, 2020, as well as in Forms 8-K filed by ConocoPhillips with the SEC on May 20, 2020 and September 8, 2020, respectively. Information about the directors and executive officers of Concho Resources, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in Concho’s proxy statement for its 2020 Annual Meeting of Stockholders, which was filed with the SEC on March 16, 2020, and Concho’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, which was filed with the SEC on February 19, 2020. Other information regarding the participants in the proxy solicitations and a description of their direct and indirect interests, by security holdings or otherwise, will be contained in the joint proxy statement/prospectus and other relevant materials to be filed with the SEC regarding the proposed transaction when such materials become available. Investors should read the joint proxy statement/prospectus carefully when it becomes available before making any voting or investment decisions. You may obtain free copies of these documents from ConocoPhillips or Concho Resources using the sources indicated above.

Cautionary Note to U.S. Investors – The SEC permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves. We may use the term "resource" in this news release that the SEC’s guidelines prohibit us from including in filings with the SEC. U.S. investors are urged to consider closely the oil and gas disclosures in our Form 10-K and other reports and filings with the SEC. Copies are available from the SEC and from the ConocoPhillips website.

Use of Non-GAAP Financial Information – To supplement the presentation of the company’s financial results prepared in accordance with U.S. generally accepted accounting principles (GAAP), this news release and the accompanying supplemental financial information contain certain financial measures that are not prepared in accordance with GAAP, including adjusted earnings (calculated on a consolidated and on a segment-level basis), adjusted earnings per share and cash from operations (CFO).

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis) are useful to investors to help facilitate comparisons of the company’s operating performance associated with the company’s core business operations across periods on a consistent basis and with the performance and cost structures of peer companies by excluding items that do not directly relate to the company’s core business operations. The company further believes that the non-GAAP measure CFO is useful to investors to help understand changes in cash provided by operating activities excluding the timing effects associated with operating working capital changes across periods on a consistent basis and with the performance of peer companies. The company believes that the above-mentioned non-GAAP measures, when viewed in combination with the company’s results prepared in accordance with GAAP, provides a more complete understanding of the factors and trends affecting the company’s business and performance. The company’s Board of Directors and management also use these non-GAAP measures to analyze the company’s operating performance across periods when overseeing and managing the company’s business.

Each of the non-GAAP measures included in this news release and the accompanying supplemental financial information has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of the company’s results calculated in accordance with GAAP. In addition, because not all companies use identical calculations, the company’s presentation of non-GAAP measures in this news release and the accompanying supplemental financial information may not be comparable to similarly titled measures disclosed by other companies, including companies in our industry. The company may also change the calculation of any of the non-GAAP measures included in this news release and the accompanying supplemental financial information from time to time in light of its then existing operations to include other adjustments that may impact its operations.

Reconciliations of each non-GAAP measure presented in this news release to the most directly comparable financial measure calculated in accordance with GAAP are included in the release.

Other Terms – This news release also contains the term underlying production. Underlying production excludes Libya and reflects the impact of closed acquisitions as of the close date and closed dispositions with an assumed close date of January 1, 2019. The company believes that underlying production is useful to investors to compare production excluding Libya and reflecting the impact of closed acquisitions and dispositions on a consistent go-forward basis across periods and with peer companies.

References in the release to earnings refer to net income/(loss) attributable to ConocoPhillips.

ConocoPhillips
Table 1: Reconciliation of earnings to adjusted earnings
Millions, Except as Indicated
3Q19 2020 YTD 2019 YTD
Income<br><br> <br>t ax After-<br><br> <br>tax Per share of<br><br> <br>common<br><br> <br>stock<br><br> <br>(dollars) Pre-tax Income tax After-tax Per share of<br><br> <br>common<br><br> <br>stock<br><br> <br>(dollars) Pre-<br><br> <br>tax Income tax After-tax Per share<br><br> <br>of<br><br> <br>common<br><br> <br>stock<br><br> <br>(dollars) Pre-tax Income tax After-tax Per share<br><br> <br>of<br><br> <br>common<br><br> <br>stock<br><br> <br>(dollars)
Earnings $ (450 ) (0.42 ) 3,056 2.74 (1,929 ) (1.79 ) 6,469 5.72
Adjustments:
Unrealized (gain) loss on CVE shares - 162 0.14 (116 ) - (116 ) (0.10 ) 1,302 - 1,302 1.20 (489 ) - (489 ) (0.43 )
Pension settlement expense (6 ) 21 0.02 37 (7 ) 30 0.03 27 (6 ) 21 0.02 37 (7 ) 30 0.03
Unrealized (gain) loss on FX derivative (2 ) 6 0.01 (15 ) 4 (11 ) (0.01 ) (55 ) 11 (44 ) (0.04 ) 15 (2 ) 13 0.01
Pending claims and settlements ) 19 (70 ) (0.06 ) (123 ) 16 (107 ) (0.10 ) (121 ) 19 (102 ) (0.09 ) (388 ) (37 ) (425 ) (0.38 )
Net gain on asset sales - - - (1,752 ) (93 ) (1,845 ) (1.66 ) (551 ) (14 ) (565 ) (0.53 ) (1,813 ) (359 ) (2,172 ) (1.92 )
Malaysia Deepwater tax incentive - - - - (164 ) (164 ) (0.15 ) - - - - - (164 ) (164 ) (0.15 )
Impairments - - - 141 (31 ) 110 0.10 556 (122 ) 434 0.40 296 (66 ) 230 0.20
Recognition of deferred revenue - - - (49 ) 10 (39 ) (0.03 ) - - - - (297 ) 62 (235 ) (0.21 )
Alberta tax credit - - - - - - - - (48 ) (48 ) (0.04 ) - - - -
Deferred tax adjustments - - - - - - - - 92 92 0.09 - (27 ) (27 ) (0.02 )
Alberta tax rate change - - - - - - - - - - - (25 ) (25 ) (0.02 )
Capital loss tax benefit - - - - - - - - - - - - - - -
Adjusted earnings / (loss) $ (331 ) (0.31 ) 914 0.82 (839 ) (0.78 ) 3,205 2.83
The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which the<br> discrete item resides.

All values are in US Dollars.

ConocoPhillips
Table 2: Reconciliation of reported production to underlying production
In MBOED, Except as Indicated
3Q20 3Q19 2020 YTD 2019 YTD
Total Reported Production 1,067 1,366 1,112 1,353
Adjustments:
Libya (1 ) (44 ) (4 ) (43 )
Total Production excluding Libya 1,066 1,322 1,108 1,310
Closed Acquisitions & Dispositions^1^ (1 ) (121 ) (27 ) (130 )
Total Underlying Production 1,065 1,201 1,081 1,180
Estimated Production Curtailments^2^ 90 - 105 -
^1^Includes production from the completed U.K. disposition, various Lower 48 dispositions and Australia-West disposition, in addition to production from the completed Montney acquisition in Canada.
^2^Estimated production impacts from price related curtailments, which are excluded from Total Production excluding Libya and Total Underlying Production.
ConocoPhillips
Table 3: Reconciliation of net cash provided by operating activities to cash from operations
Millions, Except as Indicated
2020 YTD
Net Cash Provided by Operating Activities 3,130
Adjustments:
Net operating working capital changes ) (382 )
Cash from operations 3,512

All values are in US Dollars.

Contacts

John C. Roper (media)

        281-293-1451 

        *john.c.roper@conocophillips.com*

Investor Relations

        281-293-5000 

        *investor.relations@conocophillips.com*

Exhibit 99.2
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
Sales and other operating revenues 9,150 7,953 7,756 7,708 32,567 6,158 2,749 4,386 13,293
Equity in earnings of affiliates 188 173 290 128 779 234 77 35 346
Gain (loss) on dispositions 17 82 1,785 82 1,966 (42 ) 596 (3 ) 551
Other income (loss) 702 172 262 222 1,358 (1,539 ) 594 (38 ) (983 )
Total Revenues and Other Income 10,057 8,380 10,093 8,140 36,670 4,811 4,016 4,380 13,207
Costs and Expenses
Purchased commodities 3,675 2,674 2,710 2,783 11,842 2,661 1,130 1,839 5,630
Production and operating expenses 1,271 1,418 1,331 1,302 5,322 1,173 1,047 963 3,183
Selling, general and administrative expenses 153 129 87 187 556 (3 ) 156 96 249
Exploration expenses 110 122 360 151 743 188 97 125 410
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 3,980
Impairments 1 1 24 379 405 521 (2 ) 2 521
Taxes other than income taxes 275 194 237 247 953 250 141 179 570
Accretion on discounted liabilities 86 87 86 67 326 67 66 62 195
Interest and debt expense 233 165 184 196 778 202 202 200 604
Foreign currency transactions (gain) loss 12 28 (21 ) 47 66 (90 ) 7 (5 ) (88 )
Other expenses 8 14 36 7 65 (6 ) (7 ) 20 7
Total Costs and Expenses 7,370 6,322 6,600 6,854 27,146 6,374 3,995 4,892 15,261
Income (loss) before income taxes 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (512 ) (2,054 )
Income tax provision (benefit) 841 461 422 543 2,267 148 (257 ) (62 ) (171 )
Net Income (Loss) 1,846 1,597 3,071 743 7,257 (1,711 ) 278 (450 ) (1,883 )
Less: net income attributable to noncontrolling interests (13 ) (17 ) (15 ) (23 ) (68 ) (28 ) (18 ) - (46 )
Net Income (Loss) Attributable to ConocoPhillips 1,833 1,580 3,056 720 7,189 (1,739 ) 260 (450 ) (1,929 )
Net Income (Loss) Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic 1.61 1.40 2.76 0.66 6.43 (1.60 ) 0.24 (0.42 ) (1.79 )
Diluted 1.60 1.40 2.74 0.65 6.40 (1.60 ) 0.24 (0.42 ) (1.79 )
Average Common Shares Outstanding (in thousands)*
Basic 1,139,463 1,125,995 1,108,555 1,095,606 1,117,260 1,084,561 1,076,659 1,077,377 1,079,525
Diluted 1,146,515 1,131,242 1,113,250 1,099,786 1,123,536 1,084,561 1,077,606 1,077,377 1,079,525
*Ending Common Shares Outstanding is 1,072,742 as of Sep. 30, 2020, compared with 1,072,566 as of Jun. 30, 2020.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 505 580 417 491 1,993 107 (195 ) (30 ) (118 )
Lower 48 261 269 35 9 574 (562 ) (471 ) (105 ) (1,138 )
Canada 73 100 69 (6 ) 236 (150 ) (177 ) (100 ) (427 )
Europe, Middle East and North Africa 811 761 2,512 511 4,595 311 (60 ) 113 364
Asia Pacific 628 483 439 500 2,050 445 702 84 1,231
Other International 130 87 75 (21 ) 271 27 (5 ) (11 ) 11
Corporate and Other 279 (222 ) (54 ) (198 ) (195 ) (1,741 ) 227 (463 ) (1,977 )
Consolidated 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (512 ) (2,054 )
EFFECTIVE INCOME TAX RATES
Alaska* 23.9 % 20.5 % 26.6 % 24.7 % 23.7 % 24.3 % 27.6 % 47.6 % 35.6 %
Lower 48 26.2 % 23.1 % 27.7 % -32.5 % 24.0 % 22.3 % 22.5 % 25.0 % 22.6 %
Canada -66.4 % -1.0 % 26.1 % 196.6 % -18.3 % 26.8 % 51.8 % 24.9 % 36.8 %
Europe, Middle East and North Africa 61.8 % 25.3 % 13.5 % 76.6 % 31.0 % 35.3 % 142.3 % 19.0 % 12.7 %
Asia Pacific 30.7 % 23.3 % -4.5 % 42.9 % 24.4 % 32.7 % 5.2 % 70.0 % 19.5 %
Other International -1.3 % 6.6 % 4.4 % -0.8 % 2.8 % -2.0 % -2.6 % 28.7 % -31.3 %
Corporate and Other 3.0 % 13.3 % 74.3 % 86.6 % 119.4 % -1.9 % 18.7 % 15.9 % -0.1 %
Consolidated 31.3 % 22.4 % 12.1 % 42.2 % 23.8 % -9.5 % -1330.4 % 12.0 % 8.3 %
*Alaska including taxes other than income taxes. 38.1 % 25.8 % 40.6 % 38.2 % 35.4 % 61.2 % -18.9 % 126.4 % 150.7 %

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 384 462 306 368 1,520 81 (141 ) (16 ) (76 )
Lower 48 193 206 26 11 436 (437 ) (365 ) (78 ) (880 )
Canada 122 100 51 6 279 (109 ) (86 ) (75 ) (270 )
Europe, Middle East and North Africa 310 569 2,171 120 3,170 201 25 92 318
Asia Pacific 422 355 443 263 1,483 272 648 25 945
Other International 131 81 73 (22 ) 263 28 (6 ) (8 ) 14
Corporate and Other 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (390 ) (1,980 )
Consolidated 1,833 1,580 3,056 720 7,189 (1,739 ) 260 (450 ) (1,929 )
SPECIAL ITEMS
Alaska - 81 (6 ) 4 79 (120 ) 81 - (39 )
Lower 48 (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 70 (357 )
Canada 68 66 - - 134 (29 ) 77 - 48
Europe, Middle East and North Africa - 234 1,845 (125 ) 1,954 (2 ) 2 - -
Asia Pacific - 52 164 (33 ) 183 (4 ) 601 - 597
Other International 147 84 86 - 317 29 - - 29
Corporate and Other 517 45 163 273 998 (1,632 ) 453 (189 ) (1,368 )
Consolidated 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (119 ) (1,090 )
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 384 381 312 364 1,441 201 (222 ) (16 ) (37 )
Lower 48 240 331 136 241 948 30 (405 ) (148 ) (523 )
Canada 54 34 51 6 145 (80 ) (163 ) (75 ) (318 )
Europe, Middle East and North Africa 310 335 326 245 1,216 203 23 92 318
Asia Pacific 422 303 279 296 1,300 276 47 25 348
Other International (16 ) (3 ) (13 ) (22 ) (54 ) (1 ) (6 ) (8 ) (15 )
Corporate and Other (246 ) (238 ) (177 ) (299 ) (960 ) (143 ) (268 ) (201 ) (612 )
Consolidated 1,148 1,143 914 831 4,036 486 (994 ) (331 ) (839 )
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 23.9 % 25.6 % 25.2 % 25.4 % 25.0 % 23.0 % 26.6 % 47.6 % 48.1 %
Lower 48 25.3 % 23.0 % 23.1 % 20.5 % 23.0 % 18.0 % 22.5 % 23.3 % 23.0 %
Canada 26.7 % 20.8 % 26.1 % 196.6 % 19.5 % 27.2 % 25.0 % 24.9 % 25.5 %
Europe, Middle East and North Africa 61.8 % 56.0 % 56.9 % 62.1 % 59.1 % 36.9 % 132.9 % 19.0 % 12.7 %
Asia Pacific 30.7 % 33.3 % 32.9 % 36.6 % 33.2 % 32.5 % 41.3 % 70.0 % 38.9 %
Other International 9.6 % -32.9 % -2.7 % -0.8 % 0.7 % 28.6 % -2.6 % 28.7 % 19.0 %
Corporate and Other 14.8 % 12.7 % 23.3 % 4.8 % 13.2 % -13.9 % 15.0 % 25.0 % 13.7 %
Consolidated 42.9 % 40.5 % 42.5 % 46.6 % 43.0 % 38.2 % 26.3 % 18.2 % 11.6 %

All values are in US Dollars.

2019 2020
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Impairments - - - - - (154 ) 109 - (45 )
Pending claims and settlements - 69 - - 69 - - - -
Subtotal before income taxes - 69 - - 69 (154 ) 109 - (45 )
Income tax provision (benefit)^1^ - (12 ) 6 (4 ) (10 ) (34 ) 28 - (6 )
Total - 81 (6 ) 4 79 (120 ) 81 - (39 )
Lower 48
Impairments (60 ) (95 ) (141 ) (386 ) (682 ) (561 ) 50 - (511 )
Gain (loss) on asset sales - - - 82 82 (38 ) 2 - (36 )
Pending claims and settlements - (67 ) - 9 (58 ) - - 89 89
Subtotal before income taxes (60 ) (162 ) (141 ) (295 ) (658 ) (599 ) 52 89 (458 )
Income tax provision (benefit) (13 ) (37 ) (31 ) (65 ) (146 ) (132 ) 12 19 (101 )
Total (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 70 (357 )
Canada
Impairments - - - - - (39 ) 39 - -
Gain (loss) on asset sales - 56 - - 56 - - - -
Subtotal before income taxes - 56 - - 56 (39 ) 39 - -
Income tax provision (benefit)^2^ (68 ) (10 ) - - (78 ) (10 ) (38 ) - (48 )
Total 68 66 - - 134 (29 ) 77 - 48
Europe, Middle East and North Africa
Impairments - - - - - (11 ) 11 - -
Gain (loss) on asset sales - - 1,752 (15 ) 1,737 - - - -
Qatar deferred tax adjustment - - - (118 ) (118 ) - - - -
Subtotal before income taxes - - 1,752 (133 ) 1,619 (11 ) 11 - -
Income tax provision (benefit)^3^ - (234 ) (93 ) (8 ) (335 ) (9 ) 9 - -
Total - 234 1,845 (125 ) 1,954 (2 ) 2 - -
Asia Pacific
Gain (loss) on asset sales - 5 - - 5 - 587 - 587
Impairments - - - - - (5 ) 5 - -
Pending claims and settlements - - - (2 ) (2 ) - - - -
Subtotal before income taxes - 5 - (2 ) 3 (5 ) 592 - 587
Income tax provision (benefit)^4^ - (47 ) (164 ) 31 (180 ) (1 ) (9 ) - (10 )
Total - 52 164 (33 ) 183 (4 ) 601 - 597
Other International
Pending claims and settlements 147 89 89 - 325 29 - - 29
Subtotal before income taxes 147 89 89 - 325 29 - - 29
Income tax provision (benefit) - 5 3 - 8 - - - -
Total 147 84 86 - 317 29 - - 29
Corporate and Other
Pension settlement expense - - (37 ) (8 ) (45 ) - - (27 ) (27 )
Pending claims and settlements (17 ) 44 34 (17 ) 44 - 3 - 3
Unrealized gain (loss) on CVE common shares 343 30 116 160 649 (1,691 ) 551 (162 ) (1,302 )
Unrealized gain (loss) on CAD FX derivative (6 ) (24 ) 15 (18 ) (33 ) 75 (12 ) (8 ) 55
Recognition of deferred revenue 248 - 49 - 297 - - - -
Subtotal before income taxes 568 50 177 117 912 (1,616 ) 542 (197 ) (1,271 )
Income tax provision (benefit)^5^ 51 5 14 (156 ) (86 ) 16 89 (8 ) 97
Total 517 45 163 273 998 (1,632 ) 453 (189 ) (1,368 )
Total Company 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (119 ) (1,090 )
^1^Includes deferred tax adjustment in 2Q 2019 and 2Q 2020 in Alaska.
^2^Includes deferred tax adjustment in 1Q 2019, tax rate change in 2Q 2019, and recognition of a tax refund in 2Q 2020<br> in Canada.
^3^Includes tax adjustment in 2Q 2019 and 3Q 2019 related to the U.K. disposition.
^4^Includes tax adjustment in 2Q 2019 related to the Greater Sunrise Fields disposition, 3Q 2019 for Malaysia Deepwater<br> tax incentives, and 2Q 2020 for the Australia-West disposition.
^5^Includes deferred tax adjustment related to foreign tax credits in 4Q 2019 and 2Q 2020.
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CONSOLIDATED BALANCE SHEET
Assets
Cash and cash equivalents 6,218 5,941 7,193 5,088 5,088 3,908 2,907 2,490 2,490
Short-term investments 249 732 908 3,028 3,028 3,866 3,985 4,032 4,032
Accounts and notes receivable 3,701 3,490 3,478 3,267 3,267 2,116 1,399 1,984 1,984
Accounts and notes receivable—related parties 168 161 138 134 134 148 133 135 135
Investment in Cenovus Energy 1,805 1,835 1,951 2,111 2,111 420 971 809 809
Inventories 1,014 1,089 955 1,026 1,026 726 982 1,034 1,034
Prepaid expenses and other current assets 528 2,552 594 2,259 2,259 1,960 676 575 575
Total Current Assets 13,683 15,800 15,217 16,913 16,913 13,144 11,053 11,059 11,059
Investments and long-term receivables 9,302 8,748 8,916 8,687 8,687 8,707 8,334 8,295 8,295
Loans and advances—related parties 268 268 219 219 219 167 167 114 114
Net properties, plants and equipment 45,942 44,334 43,814 42,269 42,269 40,645 41,120 41,269 41,269
Other assets 2,303 2,111 2,174 2,426 2,426 2,370 2,372 2,420 2,420
Total Assets 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,157 63,157
Liabilities
Accounts payable 3,815 3,618 3,148 3,176 3,176 2,900 2,060 2,217 2,217
Accounts payable—related parties 31 17 23 24 24 21 20 22 22
Short-term debt 113 114 121 105 105 126 146 482 482
Accrued income and other taxes 1,539 1,213 1,077 1,030 1,030 853 312 339 339
Employee benefit obligations 470 529 543 663 663 323 422 469 469
Other accruals 1,402 3,505 1,030 2,045 2,045 1,852 1,145 1,111 1,111
Total Current Liabilities 7,370 8,996 5,942 7,043 7,043 6,075 4,105 4,640 4,640
Long-term debt 14,832 14,809 14,799 14,790 14,790 14,847 14,852 14,905 14,905
Asset retirement obligations and accrued environmental costs 7,730 5,996 6,087 5,352 5,352 5,316 5,465 5,651 5,651
Deferred income taxes 5,043 4,825 4,693 4,634 4,634 4,141 3,901 3,854 3,854
Employee benefit obligations 1,704 1,689 1,786 1,781 1,781 1,563 1,586 1,661 1,661
Other liabilities and deferred credits 1,838 1,872 1,794 1,864 1,864 1,704 1,644 1,663 1,663
Total Liabilities 38,517 38,187 35,101 35,464 35,464 33,646 31,553 32,374 32,374
Equity
Common stock issued
Par value 18 18 18 18 18 18 18 18 18
Capital in excess of par 46,877 46,922 46,954 46,983 46,983 47,027 47,079 47,113 47,113
Treasury stock (43,656 ) (44,906 ) (45,656 ) (46,405 ) (46,405 ) (47,130 ) (47,130 ) (47,130 ) (47,130 )
Accumulated other comprehensive income (loss) (5,914 ) (5,827 ) (5,654 ) (5,357 ) (5,357 ) (6,145 ) (5,825 ) (5,666 ) (5,666 )
Retained earnings 35,534 36,769 39,484 39,742 39,742 37,545 37,351 36,448 36,448
Total Common Stockholders' Equity 32,859 32,976 35,146 34,981 34,981 31,315 31,493 30,783 30,783
Noncontrolling Interests 122 98 93 69 69 72 - - -
Total Equity 32,981 33,074 35,239 35,050 35,050 31,387 31,493 30,783 30,783
Total Liabilities and Equity 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,157 63,157

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CASH FLOW INFORMATION
Cash Flows from Operating Activities
Net income (loss) 1,846 1,597 3,071 743 7,257 (1,711 ) 278 (450 ) (1,883 )
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 3,980
Impairments 1 1 24 379 405 521 (2 ) 2 521
Dry hole costs and leasehold impairments 27 41 293 60 421 67 3 44 114
Accretion on discounted liabilities 86 87 86 67 326 67 66 62 195
Deferred taxes (1 ) (220 ) (83 ) (140 ) (444 ) (227 ) (93 ) (108 ) (428 )
Undistributed equity earnings 24 338 (102 ) 334 594 31 373 46 450
Gain on dispositions (17 ) (82 ) (1,785 ) (82 ) (1,966 ) 42 (596 ) 3 (551 )
Unrealized (gain) loss on investment in Cenovus Energy (343 ) (30 ) (116 ) (160 ) (649 ) 1,691 (551 ) 162 1,302
Other (221 ) 200 (310 ) (20 ) (351 ) (284 ) 40 56 (188 )
Net working capital changes (54 ) (531 ) (307 ) 313 (579 ) 497 (519 ) (360 ) (382 )
Net Cash Provided by Operating Activities 2,894 2,891 2,337 2,982 11,104 2,105 157 868 3,130
Cash Flows from Investing Activities
Capital expenditures and investments (1,637 ) (1,729 ) (1,675 ) (1,595 ) (6,636 ) (1,649 ) (876 ) (1,132 ) (3,657 )
Working capital changes associated with investing activities 107 (83 ) (7 ) (120 ) (103 ) 81 (332 ) 22 (229 )
Proceeds from asset dispositions 142 559 2,219 92 3,012 549 764 (1 ) 1,312
Net sales (purchases) of investments (1 ) (484 ) (180 ) (2,245 ) (2,910 ) (935 ) (95 ) (59 ) (1,089 )
Long-term collections from (advances to)
related parties and other investments (88 ) 276 (207 ) 38 19 22 9 54 85
Net Cash Provided by (Used in) Investing Activities (1,477 ) (1,461 ) 150 (3,830 ) (6,618 ) (1,932 ) (530 ) (1,116 ) (3,578 )
Cash Flows from Financing Activities
Net issuance (repayment) of debt (19 ) (19 ) (21 ) (21 ) (80 ) (24 ) (190 ) 280 66
Issuance of company common stock (38 ) 2 (3 ) 9 (30 ) 2 - (4 ) (2 )
Repurchase of company common stock (752 ) (1,250 ) (749 ) (749 ) (3,500 ) (726 ) - - (726 )
Dividends paid (350 ) (346 ) (341 ) (463 ) (1,500 ) (458 ) (455 ) (454 ) (1,367 )
Other (14 ) (41 ) (18 ) (46 ) (119 ) (24 ) (4 ) 1 (27 )
Net Cash Provided by (Used in) Financing Activities (1,173 ) (1,654 ) (1,132 ) (1,270 ) (5,229 ) (1,230 ) (649 ) (177 ) (2,056 )
Effect of Exchange Rate Changes 75 (49 ) (94 ) 22 (46 ) (122 ) 29 31 (62 )
Net Change in Cash, Cash Equivalents and Restricted Cash 319 (273 ) 1,261 (2,096 ) (789 ) (1,179 ) (993 ) (394 ) (2,566 )
Cash, cash equivalents and restricted cash at beginning of period 6,151 6,470 6,197 7,458 6,151 5,362 4,183 3,190 5,362
Cash, Cash Equivalents and Restricted Cash at End of Period 6,470 6,197 7,458 5,362 5,362 4,183 3,190 2,796 2,796
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 410 370 427 306 1,513 509 223 150 882
Lower 48 834 936 843 781 3,394 776 354 268 1,398
Canada 123 109 83 53 368 74 68 451 593
Europe, Middle East and North Africa 157 182 198 171 708 121 130 159 410
Asia Pacific 96 123 103 262 584 103 85 92 280
Other International 1 - - 7 8 53 10 3 66
Corporate and Other 16 9 21 15 61 13 6 9 28
Total Capital Expenditures and Investments 1,637 1,729 1,675 1,595 6,636 1,649 876 1,132 3,657

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,361 1,332 1,366 1,334 1,348 1,289 981 1,067 1,112
Crude Oil (MBD)
Consolidated operations 703 688 696 681 692 642 460 535 546
Equity affiliates 12 14 14 14 13 12 14 13 13
Total 715 702 710 695 705 654 474 548 559
Over (under) lifting of crude oil (MBD) 8 (3 ) 19 (2 ) 6 (20 ) (9 ) 12 (6 )
NGL (MBD)
Consolidated operations 103 110 106 110 107 116 85 89 97
Equity affiliates 7 8 8 8 8 7 8 8 7
Total 110 118 114 118 115 123 93 97 104
Bitumen (MBD)
Consolidated operations 63 51 63 64 60 66 34 49 50
Equity affiliates - - - - - - - - -
Total 63 51 63 64 60 66 34 49 50
Natural Gas (MMCFD)
Consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,221 1,201 1,353
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,034 1,042
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,235 2,395
Industry Prices
Crude Oil (/BBL)
WTI 54.87 59.80 56.44 56.98 57.02 46.06 27.85 40.93 38.28
WCS 42.58 49.13 44.18 41.15 44.26 25.54 16.58 31.83 24.65
Brent dated 63.20 68.82 61.94 63.22 64.30 50.31 29.20 43.00 40.83
JCC (/BBL) 76.98 63.72 71.59 66.34 69.66 65.89 67.71 30.58 54.72
Natural Gas (/MMBTU)
Henry Hub first of month 3.15 2.64 2.23 2.50 2.63 1.95 1.71 1.98 1.88
Average Realized Prices
Total (/BBL) 50.59 50.50 47.07 47.01 48.78 38.81 23.09 30.94 31.76
Crude Oil (/BBL)
Consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 39.49 39.04
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 37.56 38.22
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 39.45 39.02
NGL (/BBL)
Consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 8.29 13.73 11.72
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 30.21 31.65
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 15.29 13.45
Bitumen (/BBL)
Consolidated operations 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 2.90
Equity affiliates - - - - - - - - -
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 2.90
Natural Gas (/MCF)
Consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 2.77 3.07
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 2.61 3.98
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 2.70 3.47
Exploration Expenses ( Millions)
Dry holes 10 16 139 35 200 36 3 44 83
Leasehold impairment 17 25 154 25 221 31 - - 31
Total noncash expenses 27 41 293 60 421 67 3 44 114
Other (G&A, G&G and lease rentals) 83 81 67 91 322 121 94 81 296
Total exploration expenses 110 122 360 151 743 188 97 125 410
U.S. exploration expenses 75 70 319 60 524 99 72 86 257
International exploration expenses 35 52 41 91 219 89 25 39 153
DD&A ( Millions)
Alaska 205 208 200 192 805 209 191 274 674
Lower 48 621 709 731 761 2,822 707 548 619 1,874
Canada 56 48 63 63 230 69 66 95 230
Europe, Middle East and North Africa 273 173 222 218 886 196 167 194 557
Asia Pacific 375 338 332 240 1,285 217 170 217 604
Other International - - - - - - - - -
Corporate and Other 16 14 18 14 62 13 16 12 41
Total DD&A 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 3,980

All values are in US Dollars.

2019 2020
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
PRODUCTION
Crude Oil (MBD)
Consolidated operations
Alaska 210 199 190 205 202 198 153 184 179
Lower 48 245 269 277 274 266 270 166 197 211
Canada 1 1 1 1 1 2 5 6 4
Norway 89 73 91 85 84 84 75 76 79
United Kingdom 25 20 19 - 16 - - - -
Libya 38 37 39 39 38 9 - 1 3
Europe, Middle East and North Africa 152 130 149 124 138 93 75 77 82
Australia/Timor-Leste 6 7 6 5 6 4 3 - 2
China 41 37 35 29 35 31 30 29 30
Indonesia 2 2 2 2 2 2 2 2 2
Malaysia 46 43 36 41 42 42 26 40 36
Asia Pacific 95 89 79 77 85 79 61 71 70
Total consolidated operations 703 688 696 681 692 642 460 535 546
Equity affiliates 12 14 14 14 13 12 14 13 13
Total 715 702 710 695 705 654 474 548 559
NGL (MBD)
Consolidated operations
Alaska 17 17 11 16 15 19 13 14 15
Lower 48 74 82 84 85 81 89 64 68 74
Canada - 1 - - - 1 2 2 2
Norway 4 3 4 5 4 5 5 5 5
United Kingdom 4 3 3 - 3 - - - -
Europe, Middle East and North Africa 8 6 7 5 7 5 5 5 5
Australia/Timor-Leste 4 4 4 4 4 2 1 - 1
Asia Pacific 4 4 4 4 4 2 1 - 1
Total consolidated operations 103 110 106 110 107 116 85 89 97
Equity affiliates 7 8 8 8 8 7 8 8 7
Total 110 118 114 118 115 123 93 97 104
Bitumen (MBD)
Canada 63 51 63 64 60 66 34 49 50
Total 63 51 63 64 60 66 34 49 50
Natural Gas (MMCFD)
Consolidated operations
Alaska 8 7 6 8 7 8 8 14 10
Lower 48 568 593 649 677 622 679 486 566 577
Canada 7 8 9 11 9 20 40 43 35
Norway 263 244 226 284 254 297 263 256 272
United Kingdom 310 247 218 - 193 - - - -
Libya 31 27 29 36 31 13 1 - 4
Europe, Middle East and North Africa 604 518 473 320 478 310 264 256 276
Australia/Timor-Leste 273 202 222 203 225 237 114 - 117
Indonesia 311 314 324 333 321 309 266 283 286
Malaysia 81 62 112 109 91 75 43 39 52
Asia Pacific 665 578 658 645 637 621 423 322 455
Total consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,221 1,201 1,353
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,034 1,042
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,235 2,395
Total (MBOED)
Consolidated operations
Alaska 228 217 202 222 218 218 167 201 195
Lower 48 414 450 469 472 451 472 311 359 381
Canada 65 54 66 67 63 72 48 64 62
Norway 137 117 133 137 131 139 124 124 129
United Kingdom 80 64 58 - 50 - - - -
Libya 43 42 44 45 43 11 - 1 4
Europe, Middle East and North Africa 260 223 235 182 224 150 124 125 133
Australia/Timor-Leste 56 45 47 43 48 46 24 - 23
China 41 37 35 29 35 31 30 29 30
Indonesia 54 54 56 58 56 54 46 49 49
Malaysia 60 53 55 59 57 54 33 47 45
Asia Pacific 211 189 193 189 196 185 133 125 147
Total consolidated operations 1,178 1,133 1,165 1,132 1,152 1,097 783 874 918
Equity affiliates 183 199 201 202 196 192 198 193 194
Total 1,361 1,332 1,366 1,334 1,348 1,289 981 1,067 1,112
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
AVERAGE REALIZED PRICES
Crude Oil (/BBL)
Consolidated operations
Alaska 62.81 67.57 62.78 63.43 64.12 54.78 26.81 40.88 41.92
Lower 48 53.15 59.17 54.38 54.34 55.30 40.97 19.87 36.43 34.02
Canada - - - - 40.87 - 8.69 25.16 19.84
Norway 63.16 70.09 64.00 64.25 65.19 54.92 32.32 41.79 43.23
United Kingdom 59.74 69.22 63.32 - 64.68 - - - -
Libya 63.22 68.95 62.30 63.95 64.47 64.21 - - 64.21
Europe, Middle East and North Africa 62.83 69.65 63.47 64.15 64.94 55.53 32.32 41.79 43.72
Australia/Timor-Leste 59.39 62.22 57.02 58.32 59.29 47.35 47.21 - 47.34
China 59.23 65.40 59.07 63.17 61.26 54.10 25.09 39.75 39.71
Indonesia 47.07 51.62 48.79 50.35 49.55 29.33 30.64 36.41 31.81
Malaysia 67.33 73.99 66.26 69.74 69.45 57.67 30.59 46.43 46.42
Asia Pacific 62.94 69.78 62.01 65.90 65.02 54.71 27.98 42.79 42.94
Total consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 39.49 39.04
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 37.56 38.22
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 39.45 39.02
NGL (/BBL)
Consolidated operations
Lower 48 20.66 17.91 13.04 16.27 16.83 11.85 6.95 13.51 10.96
Canada - - - - 19.87 - 1.64 5.99 3.60
Norway 33.37 29.42 24.38 32.42 30.67 21.54 16.76 23.50 20.01
United Kingdom 27.65 32.75 22.20 - 27.71 - - - -
Europe, Middle East and North Africa 31.15 32.00 23.20 32.42 29.37 21.54 16.76 23.50 20.01
Australia/Timor-Leste 40.13 39.97 30.13 37.20 37.85 39.34 27.90 - 33.21
Asia Pacific 40.13 39.97 30.13 37.20 37.85 39.34 27.90 - 33.21
Total consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 8.29 13.73 11.72
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 30.21 31.65
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 15.29 13.45
Bitumen (/BBL)
Canada* 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 2.90
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 2.90
Natural Gas (/MCF)
Consolidated operations
Alaska 3.42 3.19 3.01 3.09 3.19 3.07 2.56 2.48 2.71
Lower 48 2.74 2.10 1.80 1.92 2.12 1.48 1.18 1.63 1.45
Canada - - - - 0.49 - 0.79 0.71 0.91
Norway 6.39 4.31 3.37 4.61 4.72 3.65 2.21 2.40 2.82
United Kingdom 6.83 4.49 3.69 - 5.19 - - - -
Libya 4.92 4.79 4.83 4.91 4.87 4.53 - - 4.53
Europe, Middle East and North Africa 6.55 4.42 3.60 4.63 4.92 3.68 2.21 2.40 2.85
Australia/Timor-Leste** 0.83 0.78 0.76 0.77 0.79 6.43 10.62 - 10.04
Indonesia 6.69 7.19 6.69 6.66 6.81 6.58 4.69 5.75 5.72
Malaysia 3.84 3.57 3.44 3.47 3.56 2.93 2.22 2.22 2.56
Asia Pacific 6.36 5.89 5.78 5.60 5.91 5.94 4.74 5.33 5.42
Total consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 2.77 3.07
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 2.61 3.98
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 2.70 3.47
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of our<br> pipeline capacity between Canada and the U.S. Gulf Coast.
**Excludes transfers to Darwin LNG plant.

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
CORPORATE AND OTHER
Corporate and Other Earnings (Loss) ( Millions) 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (390 ) (1,980 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (196 ) (131 ) (123 ) (154 ) (604 ) (155 ) (174 ) (179 ) (508 )
Corporate G&A expenses (65 ) (49 ) (34 ) (104 ) (252 ) 50 (90 ) (50 ) (90 )
Technology* 96 (10 ) 43 (6 ) 123 1 (9 ) (8 ) (16 )
Other 436 (3 ) 100 238 771 (1,671 ) 458 (153 ) (1,366 )
Total 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (390 ) (1,980 )
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing revenues.
Before-Tax Net Interest Expense ( Millions)
Interest expense (243 ) (178 ) (200 ) (214 ) (835 ) (216 ) (216 ) (213 ) (645 )
Capitalized interest 10 13 16 18 57 14 14 13 41
Interest revenue 32 33 45 39 149 42 22 9 73
Total (201 ) (132 ) (139 ) (157 ) (629 ) (160 ) (180 ) (191 ) (531 )
Debt
Total debt ( Millions) 14,945 14,923 14,920 14,895 14,895 14,973 14,998 15,387 15,387
Debt-to-capital ratio (%) 31 % 31 % 30 % 30 % 30 % 32 % 32 % 33 % 33 %
Equity ( Millions) 32,981 33,074 35,239 35,050 35,050 31,387 31,493 30,783 30,783

All values are in US Dollars.

REFERENCE
Commonly Used Abbreviations
Earnings Net Income (Loss) Attributable to ConocoPhillips
DD&A Depreciation, Depletion and Amortization
G&G Geological and Geophysical
G&A General and Administrative
JCC Japan Crude Cocktail
LNG Liquefied Natural Gas
NGL Natural Gas Liquids
WCS Western Canada Select
WTI West Texas Intermediate
Units of Measure
BBL Barrels
MMBBL Millions of Barrels
MBD Thousands of Barrels per Day
MBOED Thousands of Barrels of Oil Equivalent per Day
MCF Thousands of Cubic Feet
MMBTU Millions of British Thermal Units
MMCFD Millions of Cubic Feet per Day

Report a Problem

Category
Description
Email (optional, for follow-up)