Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2021-02-02 For: 2021-02-02
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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):   February 2, 2021

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 February 2, 2021 ConocoPhillips issued a press release announcing the company's financial and operating results for both the quarter ended and year ended December 31, 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 and full year 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 February 2, 2021.
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
/s/ Catherine A. Brooks
Catherine A. Brooks<br><br> <br>Vice President and Controller
February 2, 2021

3

Exhibit 99.1

ConocoPhillips Reports Fourth-Quarter and Full-Year 2020 Results; Announces Quarterly Dividend

The 2020 results discussed herein reflect the performance of ConocoPhillips prior to the acquisition of Concho, which closed in January 2021.

HOUSTON--(BUSINESS WIRE)--February 2, 2021--ConocoPhillips (NYSE: COP) today reported a fourth-quarter 2020 loss of $0.8 billion, or ($0.72) per share, compared with fourth-quarter 2019 earnings of $0.7 billion, or $0.65 per share. Excluding special items, fourth-quarter 2020 adjusted earnings were a loss of $0.2 billion, or ($0.19) per share, compared with fourth-quarter 2019 adjusted earnings of $0.8 billion, or $0.76 per share. Special items for the current quarter were primarily due to non-cash impairments related to the Alaska North Slope Gas asset and non-core assets in Lower 48, in addition to exploration-related expenses in Other International, partially offset by an unrealized gain on Cenovus Energy equity.

Full-year 2020 earnings were a loss of $2.7 billion, or ($2.51) per share, compared with full-year 2019 earnings of $7.2 billion, or $6.40 per share. Excluding special items, full-year 2020 adjusted earnings were a loss of $1.0 billion, or ($0.97) per share, compared with full-year 2019 adjusted earnings of $4.0 billion, or $3.59 per share.

“I want to thank our workforce for their efforts in the face of a most challenging year,” said Ryan Lance, chairman and chief executive officer. “Throughout 2020, they protected each other, helped mitigate the spread of COVID-19 and safely executed our business as we adapted to changing market conditions. There was nothing easy about 2020, but the lessons from the year served to strengthen our conviction that ConocoPhillips offers the right value proposition for this volatile business -- free cash flow generation, a strong balance sheet, commitment to differential returns of and on capital and ESG leadership.

“Despite the significant industry-wide downturn in 2020, we successfully delivered this value proposition and remain committed to it. As we enter 2021, our ability to lead the sector in value creation is enhanced by the recent Concho acquisition that creates a best-in-class competitor of scale to thrive in the new energy future.”

Full-Year 2020 Summary and Recent Announcements

  • Enhanced both our portfolio and financial framework through the acquisition of Concho in an all-stock transaction, as well as purchasing bolt-on acreage in Canada and Lower 48.
  • Full-year production, excluding Libya, of 1,118 MBOED; curtailed approximately 80 MBOED during the year.
  • Cash provided by operating activities was $4.8 billion. Excluding working capital, cash from operations (CFO) of $5.2 billion exceeded capital expenditures and investments of $4.7 billion, generating free cash flow of $0.5 billion.
  • Generated $1.3 billion in disposition proceeds from non-core asset sales.
  • Distributed $1.8 billion in dividends and repurchased $0.9 billion of shares, representing a 53 percent return of CFO to shareholders.
  • Ended the year with cash, cash equivalents and restricted cash totaling $3.3 billion and short-term investments of $3.6 billion, equaling $6.9 billion in ending cash and short-term investments.
  • Announced two significant discoveries in Norway and achieved first production at Tor II; continued appraisal drilling and started up first pads and related infrastructure in Montney.
  • Adopted a Paris-aligned climate risk framework with ambition to achieve net-zero operated emissions by 2050 as part of our commitment to ESG excellence.

Quarterly Dividend

ConocoPhillips announced a quarterly dividend of 43 cents per share, payable March 1, 2021, to stockholders of record at the close of business on Feb. 12, 2021.

Fourth-Quarter Review

Production excluding Libya for the fourth quarter of 2020 was 1,144 thousand barrels of oil equivalent per day (MBOED), a decrease of 145 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, fourth-quarter 2020 production decreased 88 MBOED or 7 percent from the same period a year ago. This decrease was primarily due to normal field decline partially offset by new production from the Lower 48 and other development programs across the portfolio. Production from Libya averaged 25 MBOED.

In the Lower 48, production averaged 395 MBOED including Eagle Ford of 183 MBOED, Bakken of 94 MBOED and Permian of 88 MBOED. At Montney, the first phase of development continued as 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, in addition to achieving first oil at Tor II, the company made two significant discoveries with an estimated total resource of between 125 million and 390 million barrels of oil equivalent (BOE). In China, first oil was achieved at Bohai Phase 4A.

Earnings decreased from fourth-quarter 2019 due to lower realized prices and reduced volumes, as well as non-cash impairments in Alaska and Lower 48. These decreases were partially offset by the increase in Cenovus Energy equity market value. Excluding special items, adjusted earnings were lower compared with fourth-quarter 2019 due to lower realized prices and reduced volumes, partially offset by a decrease in operating costs associated with reduced volumes. The company’s total average realized price was $33.21 per BOE, 29 percent lower than the $47.01 per BOE realized in the fourth quarter of 2019, reflecting lower marker prices.

For the quarter, cash provided by operating activities and CFO was $1.7 billion. CFO included a benefit of $0.15 billion primarily due to favorable outcomes on dispute settlements, which were offset in operating working capital. The company funded $1.1 billion of capital expenditures and investments, paid $0.5 billion in dividends, repurchased $0.2 billion of shares and reported $0.4 billion in net sales of investments in financial instruments.

Full-Year Review

Production excluding Libya for 2020 was 1,118 MBOED. After adjusting for closed acquisitions and dispositions as well as estimated curtailments of approximately 80 MBOED, of which 55 MBOED were in the Lower 48, production for 2020 would have been 1,176 MBOED. This represents a 15 MBOED decrease from 2019. This decrease was primarily due to normal field decline partially offset by new production from the Lower 48 and other development programs across the portfolio. Production from Libya averaged 9 MBOED in 2020 as operations remained in force majeure for most of the year.

The company’s total realized price for 2020 was $32.15 per BOE, compared with $48.78 per BOE in 2019. This 34 percent reduction reflected lower marker prices.

In 2020, cash provided by operating activities was $4.8 billion. Excluding a $0.4 billion change in operating working capital, ConocoPhillips generated CFO of $5.2 billion. The company generated $1.3 billion in disposition proceeds, funded $4.7 billion of capital expenditures and investments (including bolt-on acquisitions of approximately $0.5 billion) and paid dividends of $1.8 billion. The company also repurchased shares of $0.9 billion and reported $0.7 billion in net purchases of investments in financial instruments.

Reserves Update

Preliminary 2020 year-end proved reserves are approximately 4.5 billion BOE. The total reserve replacement ratio, including market factors and closed acquisitions and dispositions, is expected to be negative 86 percent.

Reserve changes excluding market factors and closed acquisitions and dispositions are expected to add 0.3 billion BOE, resulting in an organic reserve replacement ratio of approximately 65 percent. Market factors represent the use of historical 12-month pricing in measuring proved reserves as prescribed by Securities and Exchange Commission (SEC) guidelines and reduced reserves by 0.6 billion BOE.

Final information related to the company’s 2020 oil and gas reserves, as well as costs incurred, will be provided in ConocoPhillips’ Annual Report on Form 10-K, to be filed with the SEC in February.

Outlook

On Jan. 15, 2021 ConocoPhillips closed the acquisition of Concho. That milestone initiated the process of fully integrating the company and developing forward-looking estimates for the combined entity, including customary guidance items for 2021. The company expects to provide additional guidance in March but is providing an outlook for expected combined company operating plan capital and annual production volumes at this time.

The company has set a 2021 operating plan capital budget of $5.5 billion. This includes $5.1 billion to sustain current production and $0.4 billion for investment in major projects, primarily in Alaska, in addition to ongoing exploration appraisal activity.

The operating plan capital budget of $5.5 billion is expected to maintain flat production as compared to 2020 pro forma production of approximately 1.5 million BOED. 2020 pro forma production assumes Concho reported production for the nine months ended Sep. 30, 2020 and ConocoPhillips full year production adjusted for Libya, closed dispositions and impact from curtailments. For additional information on operating plan capital, go to www.conocophillips.com/investor .

Lance commented, “While the industry fundamentals have strengthened off the 2020 lows, we believe setting a sustaining capital program for 2021 is the right approach for our company. It clearly demonstrates our commitment to free cash flow generation and creates flexibility to return additional capital to shareholders at higher prices. Most importantly, the closing of the Concho transaction clears the way for us to begin comprehensive integration and optimization efforts across every part of our business. It’s early days post-closing, but our organization is working diligently to ensure we emerge from the integration as the strongest competitor in the business. We have already sourced the capital and cost reductions we announced at the time of the deal and now see a path to outperforming those expectations.”

Lance continued, “To put our current expectations into perspective, in 2019 the two companies’ combined pro forma 2019 adjusted operating costs were approximately $7 billion. We anticipate entering 2022 at an annual adjusted operating cost run rate of approximately $6 billion. Of this $1 billion reduction, approximately $0.4 billion was driven by actions taken by both companies prior to the deal announcement, with the remaining to be realized through cost reductions to be implemented in conjunction with the transaction. When combined, the $1 billion in lower annual expenses represents a major value upgrade for the new company and greatly enhances the competitiveness of our free cash flow generation capability. This is even more powerful considering that the 2022 run rate assumes roughly the same production level as 2019. We look forward to providing additional detail and periodic updates on the progress of these efforts during the coming months.”

See the table at the end of this release for additional information about 2019 pro forma adjusted operating costs.

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 9,700 employees at Dec. 31, 2020. Production excluding Libya averaged 1,118 MBOED for the twelve months ended Dec. 31, 2020, and proved reserves were 4.5 BBOE as of Dec. 31, 2020. 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 news release contains forward-looking statements as defined under the federal securities laws. Forward-looking statements relate to future events and anticipated results of operations, business strategies, 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. Factors that could cause actual results or events to differ materially from what is presented include the impact of public health crises, including pandemics (such as COVID-19) and epidemics and any related company or government policies or actions; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas, including changes resulting from a public health crisis or from the imposition or lifting of crude oil production quotas or other actions that might be imposed by OPEC and other producing countries and the resulting company or third-party actions in response to such changes; changes in commodity prices, including a prolonged decline in these prices relative to historical or future expected levels; changes in expected levels of oil and gas reserves or production; potential failures or delays in achieving expected reserve or production levels from existing and future oil and gas developments, including due to operating hazards, drilling risks or 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 our 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 our business; our ability to collect payments when due under our settlement agreement with PDVSA; our ability to collect payments from the government of Venezuela as ordered by the ICSID; our ability to liquidate the common stock issued to us by Cenovus Energy Inc. at prices we deem acceptable, or at all; our ability to complete our announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for our announced or any future 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 the transactions or our remaining business; business disruptions during or following our announced or any future dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced or any future dispositions in the manner and timeframe we anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation, including litigation related to our transaction with Concho Resources Inc. (Concho); the impact of competition and consolidation in the oil and gas industry; 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; the ability to successfully integrate the operations of Concho with our operations and achieve the anticipated benefits from the transaction; unanticipated difficulties or expenditures relating to the Concho transaction; changes in fiscal regime or tax, environmental and other laws applicable to our business; and disruptions resulting from extraordinary weather events, civil unrest, war, terrorism or a cyber attack; and other economic, business, competitive and/or regulatory factors affecting our business generally as set forth in our filings with the Securities and Exchange Commission. Unless legally required, ConocoPhillips expressly disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.

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, cash from operations (CFO), free cash flow, operating costs and adjusted operating costs.

The company believes that the non-GAAP measures adjusted earnings (both on an aggregate and a per-share basis), operating costs and adjusted operating costs 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. Operating costs is defined by the company as the sum of production and operating expenses, selling, general and administrative expenses, exploration general and administrative expenses, geological and geophysical, lease rentals and other exploration expenses. Adjusted operating costs is defined as the company’s operating costs further adjusted to exclude expenses that do not directly relate to the company’s core business operations and are included as adjustments to arrive at adjusted earnings to the extent those adjustments impact operating costs. The company has also calculated adjusted operating costs on a pro forma basis to supplement investors’ understanding of forward-looking information of the combined company. The company has made certain reclassification adjustments to conform historical Concho expense presentation to ConocoPhillips’ expense presentation, as well as reflected the effects of accounting policy differences. Please see the calculation and effects of such adjustments in Table 6 below. 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. Free Cash Flow is defined as CFO net of capital expenditures and investments. The company believes free cash flow is useful to investors in understanding how existing cash from operations is utilized as a source for sustaining our current capital plan and future development growth. Free cash flow is not a measure of cash available for discretionary expenditures since the company has certain non-discretionary obligations such as debt service that are not deducted from the measure. 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
4Q19 2020 FY 2019 FY
Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars)
Earnings $ (772) (0.72) 720 0.65 (2,701) (2.51) 7,189 6.40
Adjustments:
Impairments (255) 869 0.81 386 (90) 296 0.27 1,680 (377) 1,303 1.20 682 (156) 526 0.47
Exploration expenses (17) 67 0.06 - - - - 84 (17) 67 0.06 - - - -
Pending claims and settlements (10) 36 0.03 10 33 43 0.04 (75) 9 (66) (0.06) (378) (4) (382) (0.34)
Transaction and restructuring expenses (5) 19 0.02 - - - - 24 (5) 19 0.02 - - - -
Unrealized (gain) loss on FX derivative (3) 14 0.01 18 (3) 15 0.01 (38) 8 (30) (0.03) 33 (5) 28 0.02
Pension settlement expense (4) 13 0.01 8 (2) 6 0.01 44 (10) 34 0.03 45 (9) 36 0.03
Unrealized (gain) loss on CVE shares - (447) (0.41) (160) - (160) (0.14) 855 - 855 0.79 (649) - (649) (0.58)
Net gain on asset sales - - - (67) 11 (56) (0.05) (551) (14) (565) (0.52) (1,880) (348) (2,228) (1.98)
Malaysia Deepwater tax incentive - - - - - - - - - - - - (164) (164) (0.15)
Alberta tax credit - - - - - - - - (48) (48) (0.04) - - - -
Deferred tax adjustments - - - - (151) (151) (0.14) - 92 92 0.09 - (178) (178) (0.16)
Qatar deferred tax adjustment - - - 118 - 118 0.11 - - - - 118 - 118 0.11
Alberta tax rate change - - - - - - - - - - - - (25) (25) (0.02)
Recognition of deferred revenue - - - - - - - - - - - (297) 62 (235) (0.21)
Adjusted earnings / (loss) $ (201) (0.19) 831 0.76 (1,040) (0.97) 4,036 3.59
The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in which<br> the discrete item resides.

All values are in US Dollars.

ConocoPhillips
Table 2: Reconciliation of reported production to underlying production
In MBOED, Except as Indicated
4Q20 4Q19 2020 FY 2019 FY
Total Reported Production 1,169 1,334 1,127 1,348
Adjustments:
Libya (25) (45) (9) (43)
Total Production excluding Libya 1,144 1,289 1,118 1,305
Closed Acquisitions & Dispositions^1^ (7) (64) (22) (114)
Total Underlying Production 1,137 1,225 1,096 1,191
Estimated Production Curtailments^2^ - - 80 -
^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 free cash flow
Millions, Except as Indicated
2020 FY
Net Cash Provided by Operating Activities 4,802
Adjustments:
Net operating working capital changes (372)
Cash from operations 5,174
Capital expenditures and investments 4,715
Free Cash Flow 459

All values are in US Dollars.

ConocoPhillips
Table 4: Calculation of Reserve Replacement Ratios
MMBOE, Except as Indicated
End of 2019 5,262
End of 2020 4,459
Change in reserves (803)
Production^1^ 432
Change in reserves excluding production^1^ (371)
Total reserve replacement ratio -86%
Production^1^ 432
Purchases^2^ (29)
Sales^2^ 36
Market Factors^3^ 640
Changes in reserves excluding<br><br> production^1^, purchases^2^, sales^2^and<br><br> market factors^3^ 276
Organic reserve replacement ratio, excluding Market Factors 64%
^1^Production includes fuel gas and Libya.
^2^Purchases refers to acquisitions and sales refers to dispositions.
^3^Market factors represent the use of historical 12-month pricing in measuring proved reserves as prescribed by SEC guidelines.
ConocoPhillips
Table 5: Reconciliation of 2020 pro forma production for ConocoPhillips & Concho
In MBOED, Except as Indicated
Pro Forma 2020 FY
Total Reported ConocoPhillips Production 1,127
Adjustments:
Libya (9)
Closed Dispositions^1^ (20)
Estimated Production Curtailments^2^ 80
Total ConocoPhillips Production adjusted for Libya, Dispositions and Curtailment Impacts 1,178
Estimated Concho Production^3^ 322
Total Pro Forma Production 1,500
^1^Includes production from the completed Australia-West disposition and various Lower 48 dispositions.
^2^Estimated production impacts from price related curtailments, which are excluded from Total Reported ConocoPhillips Production.
^3^Concho full-year production estimate is based on the average daily production volumes of 322 MBOED for the nine months ended September 30, 2020 as publicly reported by Concho.
ConocoPhillips
Table 6: Reconciliation of pro forma adjusted operating costs for ConocoPhillips & Concho
Millions, Except as Indicated
ConocoPhillips
Production and operating expenses
Selling, general and administrative (G&A) expenses
Exploration G&A, G&G and lease rentals
Operating costs
Adjustments to exclude special items:
Less pending claims and settlements
Adjusted ConocoPhillips operating costs
Adjustments:
Dispositions1
Adjusted ConocoPhillips operating costs excluding dispositions
Concho
Oil and natural gas production expenses
Gathering, processing and transportation expenses
General and administrative expenses
Exploration and abandonment expenses
Operating costs
Adjustments:2
Leasehold abandonment expenses
Other exploration expenses
Estimated accounting differences
Adjusted Concho operating costs
Total Pro Forma Adjusted Operating Costs
1Includes costs associated with the UK disposition, Australia-West disposition and various Lower 48<br> dispositions.
2Adjustments for reporting and accounting differences based on ConocoPhillips' definition of adjusted<br> operating costs.

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
2019 2020
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 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 5,491 18,784
Equity in earnings of affiliates 188 173 290 128 779 234 77 35 86 432
Gain (loss) on dispositions 17 82 1,785 82 1,966 (42 ) 596 (3 ) (2 ) 549
Other income (loss) 702 172 262 222 1,358 (1,539 ) 594 (38 ) 474 (509 )
Total Revenues and Other Income 10,057 8,380 10,093 8,140 36,670 4,811 4,016 4,380 6,049 19,256
Costs and Expenses
Purchased commodities 3,675 2,674 2,710 2,783 11,842 2,661 1,130 1,839 2,448 8,078
Production and operating expenses 1,271 1,418 1,331 1,302 5,322 1,173 1,047 963 1,161 4,344
Selling, general and administrative expenses 153 129 87 187 556 (3 ) 156 96 181 430
Exploration expenses 110 122 360 151 743 188 97 125 1,047 1,457
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 1,541 5,521
Impairments 1 1 24 379 405 521 (2 ) 2 292 813
Taxes other than income taxes 275 194 237 247 953 250 141 179 184 754
Accretion on discounted liabilities 86 87 86 67 326 67 66 62 57 252
Interest and debt expense 233 165 184 196 778 202 202 200 202 806
Foreign currency transactions (gain) loss 12 28 (21 ) 47 66 (90 ) 7 (5 ) 16 (72 )
Other expenses 8 14 36 7 65 (6 ) (7 ) 20 6 13
Total Costs and Expenses 7,370 6,322 6,600 6,854 27,146 6,374 3,995 4,892 7,135 22,396
Income (loss) before income taxes 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (512 ) (1,086 ) (3,140 )
Income tax provision (benefit) 841 461 422 543 2,267 148 (257 ) (62 ) (314 ) (485 )
Net Income (Loss) 1,846 1,597 3,071 743 7,257 (1,711 ) 278 (450 ) (772 ) (2,655 )
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 ) (772 ) (2,701 )
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 ) (0.72 ) (2.51 )
Diluted 1.60 1.40 2.74 0.65 6.40 (1.60 ) 0.24 (0.42 ) (0.72 ) (2.51 )
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 1,073,580 1,078,030
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 1,073,580 1,078,030
*Ending Common Shares Outstanding is 1,068,035 as of Dec. 31, 2020, compared with 1,072,742 as of Sep. 30, 2020.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 505 580 417 491 1,993 107 (195 ) (30 ) (857 ) (975 )
Lower 48 261 269 35 9 574 (562 ) (471 ) (105 ) (362 ) (1,500 )
Canada 73 100 69 (6 ) 236 (150 ) (177 ) (100 ) (84 ) (511 )
Europe, Middle East and North Africa 811 761 2,512 511 4,595 311 (60 ) 113 221 585
Asia Pacific 628 483 439 500 2,050 445 702 84 70 1,301
Other International 130 87 75 (21 ) 271 27 (5 ) (11 ) (96 ) (85 )
Corporate and Other 279 (222 ) (54 ) (198 ) (195 ) (1,741 ) 227 (463 ) 22 (1,955 )
Consolidated 2,687 2,058 3,493 1,286 9,524 (1,563 ) 21 (512 ) (1,086 ) (3,140 )
EFFECTIVE INCOME TAX RATES
Alaska* 23.9 % 20.5 % 26.6 % 24.7 % 23.7 % 24.3 % 27.6 % 47.6 % 25.0 % 26.2 %
Lower 48 26.2 % 23.1 % 27.7 % -32.5 % 24.0 % 22.3 % 22.5 % 25.0 % 33.2 % 25.2 %
Canada -66.4 % -1.0 % 26.1 % 196.6 % -18.3 % 26.8 % 51.8 % 24.9 % 33.4 % 36.2 %
Europe, Middle East and North Africa 61.8 % 25.3 % 13.5 % 76.6 % 31.0 % 35.3 % 142.3 % 19.0 % 40.9 % 23.3 %
Asia Pacific 30.7 % 23.3 % -4.5 % 42.9 % 24.4 % 32.7 % 5.2 % 70.0 % 75.9 % 22.6 %
Other International -1.3 % 6.6 % 4.4 % -0.8 % 2.8 % -2.0 % -2.6 % 28.7 % 17.9 % 24.3 %
Corporate and Other 3.0 % 13.3 % 74.3 % 86.6 % 119.4 % -1.9 % 18.7 % 15.9 % -361.1 % 3.9 %
Consolidated 31.3 % 22.4 % 12.1 % 42.2 % 23.8 % -9.5 % -1330.4 % 12.0 % 28.9 % 15.4 %
*Alaska including taxes other than income taxes. 38.1 % 25.8 % 40.6 % 38.2 % 35.4 % 61.2 % -18.9 % 126.4 % 16.9 % -15.1 %

All values are in US Dollars.

2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 384 462 306 368 1,520 81 (141 ) (16 ) (643 ) (719 )
Lower 48 193 206 26 11 436 (437 ) (365 ) (78 ) (242 ) (1,122 )
Canada 122 100 51 6 279 (109 ) (86 ) (75 ) (56 ) (326 )
Europe, Middle East and North Africa 310 569 2,171 120 3,170 201 25 92 130 448
Asia Pacific 422 355 443 263 1,483 272 648 25 17 962
Other International 131 81 73 (22 ) 263 28 (6 ) (8 ) (78 ) (64 )
Corporate and Other 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (390 ) 100 (1,880 )
Consolidated 1,833 1,580 3,056 720 7,189 (1,739 ) 260 (450 ) (772 ) (2,701 )
SPECIAL ITEMS
Alaska - 81 (6 ) 4 79 (120 ) 81 - (648 ) (687 )
Lower 48 (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 70 (221 ) (578 )
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 - - (67 ) (38 )
Corporate and Other 517 45 163 273 998 (1,632 ) 453 (189 ) 365 (1,003 )
Consolidated 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (119 ) (571 ) (1,661 )
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 384 381 312 364 1,441 201 (222 ) (16 ) 5 (32 )
Lower 48 240 331 136 241 948 30 (405 ) (148 ) (21 ) (544 )
Canada 54 34 51 6 145 (80 ) (163 ) (75 ) (56 ) (374 )
Europe, Middle East and North Africa 310 335 326 245 1,216 203 23 92 130 448
Asia Pacific 422 303 279 296 1,300 276 47 25 17 365
Other International (16 ) (3 ) (13 ) (22 ) (54 ) (1 ) (6 ) (8 ) (11 ) (26 )
Corporate and Other (246 ) (238 ) (177 ) (299 ) (960 ) (143 ) (268 ) (201 ) (265 ) (877 )
Consolidated 1,148 1,143 914 831 4,036 486 (994 ) (331 ) (201 ) (1,040 )
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 23.9 % 25.6 % 25.2 % 25.4 % 25.0 % 23.0 % 26.6 % 47.6 % 128.6 % 62.9 %
Lower 48 25.3 % 23.0 % 23.1 % 20.5 % 23.0 % 18.0 % 22.5 % 23.3 % 73.7 % 28.3 %
Canada 26.7 % 20.8 % 26.1 % 196.6 % 19.5 % 27.2 % 25.0 % 24.9 % 33.4 % 26.8 %
Europe, Middle East and North Africa 61.8 % 56.0 % 56.9 % 62.1 % 59.1 % 36.9 % 132.9 % 19.0 % 40.9 % 23.3 %
Asia Pacific 30.7 % 33.3 % 32.9 % 36.6 % 33.2 % 32.5 % 41.3 % 70.0 % 75.9 % 42.6 %
Other International 9.6 % -32.9 % -2.7 % -0.8 % 0.7 % 28.6 % -2.6 % 28.7 % 1.5 % 12.1 %
Corporate and Other 14.8 % 12.7 % 23.3 % 4.8 % 13.2 % -13.9 % 15.0 % 25.0 % 17.6 % 14.9 %
Consolidated 42.9 % 40.5 % 42.5 % 46.6 % 43.0 % 38.2 % 26.3 % 18.2 % 9.2 % 11.1 %

All values are in US Dollars.

2019 2020
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Impairments - - - - - (154 ) 109 - (841 ) (886 )
Pending claims and settlements - 69 - - 69 - - - - -
Subtotal before income taxes - 69 - - 69 (154 ) 109 - (841 ) (886 )
Income tax provision (benefit)^1^ - (12 ) 6 (4 ) (10 ) (34 ) 28 - (193 ) (199 )
Total - 81 (6 ) 4 79 (120 ) 81 - (648 ) (687 )
Lower 48
Impairments (60 ) (95 ) (141 ) (386 ) (682 ) (561 ) 50 - (283 ) (794 )
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 (283 ) (741 )
Income tax provision (benefit) (13 ) (37 ) (31 ) (65 ) (146 ) (132 ) 12 19 (62 ) (163 )
Total (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) 40 70 (221 ) (578 )
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
Exploration expense - - - - - - - - (84 ) (84 )
Subtotal before income taxes 147 89 89 - 325 29 - - (84 ) (55 )
Income tax provision (benefit) - 5 3 - 8 - - - (17 ) (17 )
Total 147 84 86 - 317 29 - - (67 ) (38 )
Corporate and Other
Pension settlement expense - - (37 ) (8 ) (45 ) - - (27 ) (17 ) (44 )
Pending claims and settlements (17 ) 44 34 (17 ) 44 - 3 - (46 ) (43 )
Transaction and restructuring expense - - - - - - - - (24 ) (24 )
Unrealized gain (loss) on CVE common shares 343 30 116 160 649 (1,691 ) 551 (162 ) 447 (855 )
Unrealized gain (loss) on CAD FX derivative (6 ) (24 ) 15 (18 ) (33 ) 75 (12 ) (8 ) (17 ) 38
Recognition of deferred revenue 248 - 49 - 297 - - - - -
Subtotal before income taxes 568 50 177 117 912 (1,616 ) 542 (197 ) 343 (928 )
Income tax provision (benefit)^5^ 51 5 14 (156 ) (86 ) 16 89 (8 ) (22 ) 75
Total 517 45 163 273 998 (1,632 ) 453 (189 ) 365 (1,003 )
Total Company 685 437 2,142 (111 ) 3,153 (2,225 ) 1,254 (119 ) (571 ) (1,661 )
^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.
2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 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 2,991 2,991
Short-term investments 249 732 908 3,028 3,028 3,866 3,985 4,032 3,609 3,609
Accounts and notes receivable 3,701 3,490 3,478 3,267 3,267 2,116 1,399 1,984 2,634 2,634
Accounts and notes receivable—related parties 168 161 138 134 134 148 133 135 120 120
Investment in Cenovus Energy 1,805 1,835 1,951 2,111 2,111 420 971 809 1,256 1,256
Inventories 1,014 1,089 955 1,026 1,026 726 982 1,034 1,002 1,002
Prepaid expenses and other current assets 528 2,552 594 2,259 2,259 1,960 676 575 454 454
Total Current Assets 13,683 15,800 15,217 16,913 16,913 13,144 11,053 11,059 12,066 12,066
Investments and long-term receivables 9,302 8,748 8,916 8,687 8,687 8,707 8,334 8,295 8,017 8,017
Loans and advances—related parties 268 268 219 219 219 167 167 114 114 114
Net properties, plants and equipment 45,942 44,334 43,814 42,269 42,269 40,645 41,120 41,269 39,893 39,893
Other assets 2,303 2,111 2,174 2,426 2,426 2,370 2,372 2,420 2,528 2,528
Total Assets 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,157 62,618 62,618
Liabilities
Accounts payable 3,815 3,618 3,148 3,176 3,176 2,900 2,060 2,217 2,669 2,669
Accounts payable—related parties 31 17 23 24 24 21 20 22 29 29
Short-term debt 113 114 121 105 105 126 146 482 619 619
Accrued income and other taxes 1,539 1,213 1,077 1,030 1,030 853 312 339 320 320
Employee benefit obligations 470 529 543 663 663 323 422 469 608 608
Other accruals 1,402 3,505 1,030 2,045 2,045 1,852 1,145 1,111 1,121 1,121
Total Current Liabilities 7,370 8,996 5,942 7,043 7,043 6,075 4,105 4,640 5,366 5,366
Long-term debt 14,832 14,809 14,799 14,790 14,790 14,847 14,852 14,905 14,750 14,750
Asset retirement obligations and accrued environmental costs 7,730 5,996 6,087 5,352 5,352 5,316 5,465 5,651 5,430 5,430
Deferred income taxes 5,043 4,825 4,693 4,634 4,634 4,141 3,901 3,854 3,747 3,747
Employee benefit obligations 1,704 1,689 1,786 1,781 1,781 1,563 1,586 1,661 1,697 1,697
Other liabilities and deferred credits 1,838 1,872 1,794 1,864 1,864 1,704 1,644 1,663 1,779 1,779
Total Liabilities 38,517 38,187 35,101 35,464 35,464 33,646 31,553 32,374 32,769 32,769
Equity
Common stock issued
Par value 18 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 47,133 47,133
Treasury stock (43,656 ) (44,906 ) (45,656 ) (46,405 ) (46,405 ) (47,130 ) (47,130 ) (47,130 ) (47,297 ) (47,297 )
Accumulated other comprehensive income (loss) (5,914 ) (5,827 ) (5,654 ) (5,357 ) (5,357 ) (6,145 ) (5,825 ) (5,666 ) (5,218 ) (5,218 )
Retained earnings 35,534 36,769 39,484 39,742 39,742 37,545 37,351 36,448 35,213 35,213
Total Common Stockholders' Equity 32,859 32,976 35,146 34,981 34,981 31,315 31,493 30,783 29,849 29,849
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 29,849 29,849
Total Liabilities and Equity 71,498 71,261 70,340 70,514 70,514 65,033 63,046 63,157 62,618 62,618

All values are in US Dollars.

2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 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 ) (772 ) (2,655 )
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 1,541 5,521
Impairments 1 1 24 379 405 521 (2 ) 2 292 813
Dry hole costs and leasehold impairments 27 41 293 60 421 67 3 44 969 1,083
Accretion on discounted liabilities 86 87 86 67 326 67 66 62 57 252
Deferred taxes (1 ) (220 ) (83 ) (140 ) (444 ) (227 ) (93 ) (108 ) (406 ) (834 )
Undistributed equity earnings 24 338 (102 ) 334 594 31 373 46 195 645
Gain on dispositions (17 ) (82 ) (1,785 ) (82 ) (1,966 ) 42 (596 ) 3 2 (549 )
Unrealized (gain) loss on investment in Cenovus Energy (343 ) (30 ) (116 ) (160 ) (649 ) 1,691 (551 ) 162 (447 ) 855
Other (221 ) 200 (310 ) (20 ) (351 ) (284 ) 40 56 231 43
Net working capital changes (54 ) (531 ) (307 ) 313 (579 ) 497 (519 ) (360 ) 10 (372 )
Net Cash Provided by Operating Activities 2,894 2,891 2,337 2,982 11,104 2,105 157 868 1,672 4,802
Cash Flows from Investing Activities
Capital expenditures and investments (1,637 ) (1,729 ) (1,675 ) (1,595 ) (6,636 ) (1,649 ) (876 ) (1,132 ) (1,058 ) (4,715 )
Working capital changes associated with investing activities 107 (83 ) (7 ) (120 ) (103 ) 81 (332 ) 22 74 (155 )
Proceeds from asset dispositions 142 559 2,219 92 3,012 549 764 (1 ) 5 1,317
Net sales (purchases) of investments (1 ) (484 ) (180 ) (2,245 ) (2,910 ) (935 ) (95 ) (59 ) 431 (658 )
Long-term collections from (advances to)
related parties and other investments (88 ) 276 (207 ) 38 19 22 9 54 5 90
Net Cash Provided by (Used in) Investing Activities (1,477 ) (1,461 ) 150 (3,830 ) (6,618 ) (1,932 ) (530 ) (1,116 ) (543 ) (4,121 )
Cash Flows from Financing Activities
Net issuance (repayment) of debt (19 ) (19 ) (21 ) (21 ) (80 ) (24 ) (190 ) 280 (20 ) 46
Issuance of company common stock (38 ) 2 (3 ) 9 (30 ) 2 - (4 ) (3 ) (5 )
Repurchase of company common stock (752 ) (1,250 ) (749 ) (749 ) (3,500 ) (726 ) - - (166 ) (892 )
Dividends paid (350 ) (346 ) (341 ) (463 ) (1,500 ) (458 ) (455 ) (454 ) (464 ) (1,831 )
Other (14 ) (41 ) (18 ) (46 ) (119 ) (24 ) (4 ) 1 1 (26 )
Net Cash Provided by (Used in) Financing Activities (1,173 ) (1,654 ) (1,132 ) (1,270 ) (5,229 ) (1,230 ) (649 ) (177 ) (652 ) (2,708 )
Effect of Exchange Rate Changes 75 (49 ) (94 ) 22 (46 ) (122 ) 29 31 42 (20 )
Net Change in Cash, Cash Equivalents and Restricted Cash 319 (273 ) 1,261 (2,096 ) (789 ) (1,179 ) (993 ) (394 ) 519 (2,047 )
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 2,796 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 3,315 3,315
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 410 370 427 306 1,513 509 223 150 156 1,038
Lower 48 834 936 843 781 3,394 776 354 268 483 1,881
Canada 123 109 83 53 368 74 68 451 58 651
Europe, Middle East and North Africa 157 182 198 171 708 121 130 159 190 600
Asia Pacific 96 123 103 262 584 103 85 92 104 384
Other International 1 - - 7 8 53 10 3 55 121
Corporate and Other 16 9 21 15 61 13 6 9 12 40
Total Capital Expenditures and Investments 1,637 1,729 1,675 1,595 6,636 1,649 876 1,132 1,058 4,715

All values are in US Dollars.

2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 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 1,169 1,127
Crude Oil (MBD)
Consolidated operations 703 688 696 681 692 642 460 535 581 555
Equity affiliates 12 14 14 14 13 12 14 13 14 13
Total 715 702 710 695 705 654 474 548 595 568
Over (under) lifting of crude oil (MBD) 8 (3 ) 19 (2 ) 6 (20 ) (9 ) 12 40 6
NGL (MBD)
Consolidated operations 103 110 106 110 107 116 85 89 98 97
Equity affiliates 7 8 8 8 8 7 8 8 8 8
Total 110 118 114 118 115 123 93 97 106 105
Bitumen (MBD)
Consolidated operations 63 51 63 64 60 66 34 49 69 55
Equity affiliates - - - - - - - - - -
Total 63 51 63 64 60 66 34 49 69 55
Natural Gas (MMCFD)
Consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,221 1,201 1,302 1,339
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,034 1,092 1,055
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,235 2,394 2,394
Industry Prices
Crude Oil (/BBL)
WTI 54.87 59.80 56.44 56.98 57.02 46.06 27.85 40.93 42.66 39.37
WCS 42.58 49.13 44.18 41.15 44.26 25.54 16.58 31.83 33.46 26.85
Brent dated 63.20 68.82 61.94 63.22 64.30 50.31 29.20 43.00 44.23 41.68
JCC (/BBL) 76.98 63.72 71.59 66.34 69.66 65.89 67.71 30.58 40.83 51.25
Natural Gas (/MMBTU)
Henry Hub first of month 3.15 2.64 2.23 2.50 2.63 1.95 1.71 1.98 2.67 2.08
Average Realized Prices
Total (/BBL) 50.59 50.50 47.07 47.01 48.78 38.81 23.09 30.94 33.21 32.15
Crude Oil (/BBL)
Consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 39.49 40.89 39.56
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 37.56 41.16 39.02
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 39.45 40.89 39.54
NGL (/BBL)
Consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 8.29 13.73 16.30 12.90
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 30.21 35.70 32.69
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 15.29 17.98 14.61
Bitumen (/BBL)
Consolidated operations 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 19.41 8.02
Equity affiliates - - - - - - - - - -
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 19.41 8.02
Natural Gas (/MCF)
Consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 2.77 3.47 3.17
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 2.61 2.93 3.71
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 2.70 3.23 3.41
Exploration Expenses ( Millions)
Dry holes 10 16 139 35 200 36 3 44 132 215
Leasehold impairment 17 25 154 25 221 31 - - 837 868
Total noncash expenses 27 41 293 60 421 67 3 44 969 1,083
Other (G&A, G&G and lease rentals) 83 81 67 91 322 121 94 81 78 374
Total exploration expenses 110 122 360 151 743 188 97 125 1,047 1,457
U.S. exploration expenses 75 70 319 60 524 99 72 86 914 1,171
International exploration expenses 35 52 41 91 219 89 25 39 133 286
DD&A ( Millions)
Alaska 205 208 200 192 805 209 191 274 322 996
Lower 48 621 709 731 761 2,822 707 548 619 680 2,554
Canada 56 48 63 63 230 69 66 95 109 339
Europe, Middle East and North Africa 273 173 222 218 886 196 167 194 212 769
Asia Pacific 375 338 332 240 1,285 217 170 217 205 809
Other International - - - - - - - - - -
Corporate and Other 16 14 18 14 62 13 16 12 13 54
Total DD&A 1,546 1,490 1,566 1,488 6,090 1,411 1,158 1,411 1,541 5,521

All values are in US Dollars.

2019 2020
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
PRODUCTION
Crude Oil (MBD)
Consolidated operations
Alaska 210 199 190 205 202 198 153 184 190 181
Lower 48 245 269 277 274 266 270 166 197 218 213
Canada 1 1 1 1 1 2 5 6 10 6
Norway 89 73 91 85 84 84 75 76 75 78
United Kingdom 25 20 19 - 16 - - - - -
Libya 38 37 39 39 38 9 - 1 24 8
Europe, Middle East and North Africa 152 130 149 124 138 93 75 77 99 86
Australia/Timor-Leste 6 7 6 5 6 4 3 - - 2
China 41 37 35 29 35 31 30 29 28 30
Indonesia 2 2 2 2 2 2 2 2 3 2
Malaysia 46 43 36 41 42 42 26 40 33 35
Asia Pacific 95 89 79 77 85 79 61 71 64 69
Total consolidated operations 703 688 696 681 692 642 460 535 581 555
Equity affiliates 12 14 14 14 13 12 14 13 14 13
Total 715 702 710 695 705 654 474 548 595 568
NGL (MBD)
Consolidated operations
Alaska 17 17 11 16 15 19 13 14 16 16
Lower 48 74 82 84 85 81 89 64 68 75 74
Canada - 1 - - - 1 2 2 3 2
Norway 4 3 4 5 4 5 5 5 4 4
United Kingdom 4 3 3 - 3 - - - - -
Europe, Middle East and North Africa 8 6 7 5 7 5 5 5 4 4
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 98 97
Equity affiliates 7 8 8 8 8 7 8 8 8 8
Total 110 118 114 118 115 123 93 97 106 105
Bitumen (MBD)
Canada 63 51 63 64 60 66 34 49 69 55
Total 63 51 63 64 60 66 34 49 69 55
Natural Gas (MMCFD)
Consolidated operations
Alaska 8 7 6 8 7 8 8 14 9 10
Lower 48 568 593 649 677 622 679 486 566 611 585
Canada 7 8 9 11 9 20 40 43 57 40
Norway 263 244 226 284 254 297 263 256 267 270
United Kingdom 310 247 218 - 193 - - - - -
Libya 31 27 29 36 31 13 1 - 6 5
Europe, Middle East and North Africa 604 518 473 320 478 310 264 256 273 275
Australia/Timor-Leste 273 202 222 203 225 237 114 - - 87
Indonesia 311 314 324 333 321 309 266 283 300 290
Malaysia 81 62 112 109 91 75 43 39 52 52
Asia Pacific 665 578 658 645 637 621 423 322 352 429
Total consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,221 1,201 1,302 1,339
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,056 1,034 1,092 1,055
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,277 2,235 2,394 2,394
Total (MBOED)
Consolidated operations
Alaska 228 217 202 222 218 218 167 201 208 198
Lower 48 414 450 469 472 451 472 311 359 395 385
Canada 65 54 66 67 63 72 48 64 91 70
Norway 137 117 133 137 131 139 124 124 123 127
United Kingdom 80 64 58 - 50 - - - - -
Libya 43 42 44 45 43 11 - 1 25 9
Europe, Middle East and North Africa 260 223 235 182 224 150 124 125 148 136
Australia/Timor-Leste 56 45 47 43 48 46 24 - - 17
China 41 37 35 29 35 31 30 29 28 30
Indonesia 54 54 56 58 56 54 46 49 53 50
Malaysia 60 53 55 59 57 54 33 47 42 44
Asia Pacific 211 189 193 189 196 185 133 125 123 141
Total consolidated operations 1,178 1,133 1,165 1,132 1,152 1,097 783 874 965 930
Equity affiliates 183 199 201 202 196 192 198 193 204 197
Total 1,361 1,332 1,366 1,334 1,348 1,289 981 1,067 1,169 1,127
2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 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 42.61 42.12
Lower 48 53.15 59.17 54.38 54.34 55.30 40.97 19.87 36.43 38.50 35.17
Canada - - - - 40.87 - 8.69 25.16 28.57 23.57
Norway 63.16 70.09 64.00 64.25 65.19 54.92 32.32 41.79 41.62 42.80
United Kingdom 59.74 69.22 63.32 - 64.68 - - - - -
Libya 63.22 68.95 62.30 63.95 64.47 64.21 - - 44.93 48.64
Europe, Middle East and North Africa 62.83 69.65 63.47 64.15 64.94 55.53 32.32 41.79 42.35 43.30
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 42.80 40.29
Indonesia 47.07 51.62 48.79 50.35 49.55 29.33 30.64 36.41 41.21 34.97
Malaysia 67.33 73.99 66.26 69.74 69.45 57.67 30.59 46.43 42.42 45.26
Asia Pacific 62.94 69.78 62.01 65.90 65.02 54.71 27.98 42.79 42.50 42.84
Total consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 25.10 39.49 40.89 39.56
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 25.32 37.56 41.16 39.02
Total 59.45 64.88 59.57 60.17 60.99 48.86 25.10 39.45 40.89 39.54
NGL (/BBL)
Consolidated operations
Lower 48 20.66 17.91 13.04 16.27 16.83 11.85 6.95 13.51 15.58 12.13
Canada - - - - 19.87 - 1.64 5.99 8.52 5.41
Norway 33.37 29.42 24.38 32.42 30.67 21.54 16.76 23.50 30.80 23.27
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 30.80 23.27
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 16.30 12.90
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 23.93 30.21 35.70 32.69
Total 23.85 21.65 15.59 19.67 20.09 14.82 9.88 15.29 17.98 14.61
Bitumen (/BBL)
Canada* 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 19.41 8.02
Total 33.15 37.20 32.54 24.58 31.72 5.90 (23.11 ) 15.87 19.41 8.02
Natural Gas (/MCF)
Consolidated operations
Alaska 3.42 3.19 3.01 3.09 3.19 3.07 2.56 2.48 3.88 2.91
Lower 48 2.74 2.10 1.80 1.92 2.12 1.48 1.18 1.63 2.21 1.65
Canada - - - - 0.49 - 0.79 0.71 1.77 1.21
Norway 6.39 4.31 3.37 4.61 4.72 3.65 2.21 2.40 4.39 3.23
United Kingdom 6.83 4.49 3.69 - 5.19 - - - - -
Libya 4.92 4.79 4.83 4.91 4.87 4.53 - - 2.26 3.71
Europe, Middle East and North Africa 6.55 4.42 3.60 4.63 4.92 3.68 2.21 2.40 4.34 3.23
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 5.85 5.75
Malaysia 3.84 3.57 3.44 3.47 3.56 2.93 2.22 2.22 1.85 2.38
Asia Pacific 6.36 5.89 5.78 5.60 5.91 5.94 4.74 5.33 5.26 5.39
Total consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 2.64 2.77 3.47 3.17
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 3.90 2.61 2.93 3.71
Total 6.00 4.76 4.74 4.62 5.03 4.30 3.22 2.70 3.23 3.41
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of our pipeline<br> capacity between Canada and the U.S. Gulf Coast.
**Excludes transfers to Darwin LNG plant.

All values are in US Dollars.

2019 2020
2nd Qtr 3rd Qtr 4th Qtr YTD 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 ) 100 (1,880 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (196 ) (131 ) (123 ) (154 ) (604 ) (155 ) (174 ) (179 ) (154 ) (662 )
Corporate G&A expenses (65 ) (49 ) (34 ) (104 ) (252 ) 50 (90 ) (50 ) (110 ) (200 )
Technology* 96 (10 ) 43 (6 ) 123 1 (9 ) (8 ) (10 ) (26 )
Other 436 (3 ) 100 238 771 (1,671 ) 458 (153 ) 374 (992 )
Total 271 (193 ) (14 ) (26 ) 38 (1,775 ) 185 (390 ) 100 (1,880 )
*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 ) (216 ) (861 )
Capitalized interest 10 13 16 18 57 14 14 13 14 55
Interest revenue 32 33 45 39 149 42 22 9 15 88
Total (201 ) (132 ) (139 ) (157 ) (629 ) (160 ) (180 ) (191 ) (187 ) (718 )
Debt
Total debt ( Millions) 14,945 14,923 14,920 14,895 14,895 14,973 14,998 15,387 15,369 15,369
Debt-to-capital ratio (%) 31 % 31 % 30 % 30 % 30 % 32 % 32 % 33 % 34 % 34 %
Equity ( Millions) 32,981 33,074 35,239 35,050 35,050 31,387 31,493 30,783 29,849 29,849

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

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