Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2021-11-02 For: 2021-11-02
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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):   November 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 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. ☐

Item 2.02 Results of Operations and Financial Condition.

On November 2, 2021 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended September 30, 2021. 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 November 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/ Kontessa S. Haynes-Welsh
Kontessa S. Haynes-Welsh
Chief Accounting Officer
November 2, 2021

3

Exhibit 99.1

ConocoPhillips Announces Third-Quarter 2021 Financial and Operational Results

HOUSTON--(BUSINESS WIRE)--November 2, 2021--ConocoPhillips (NYSE: COP) today reported third-quarter 2021 earnings of $2.4 billion, or $1.78 per share, compared with a third-quarter 2020 loss of $0.5 billion, or ($0.42) per share. Excluding special items, third-quarter 2021 adjusted earnings were $2.4 billion, or $1.77 per share, compared with a third-quarter 2020 adjusted loss of $0.3 billion, or ($0.31) per share. Special items for the current quarter included a contingent payment from Cenovus associated with the 2017 Canadian disposition and a non-cash impairment credit, partially offset by a loss on asset sales and transaction and restructuring expenses.

“This third quarter was very significant for ConocoPhillips,” said Ryan Lance, chairman and chief executive officer. “While we benefited from the constructive price environment, the quarter’s important feature was that our underlying performance achieved our ‘new’ baseline for ConocoPhillips post-Concho. The previously announced operating cost synergies have now been delivered, we continue successfully executing our core programs across every part of the business and our returns on and of capital remain peer-leading. This positive performance momentum established an exceptional platform for the pending acquisition of Shell’s Permian properties that we announced in the quarter and expect to close in the fourth quarter. This transaction will spur another phase of positive performance as we head into 2022 and further strengthen our ability to deliver our distinctive triple mandate: meet future energy demand with the lowest cost of supply production through the energy transition, deliver competitive returns and meet our net zero ambition on operational emissions. These objectives, in addition to our well-established capital allocation priorities, ideally position us to remain a sector leader in any environment.”

Third-Quarter Highlights & Recent Announcements

  • Delivered strong operational performance across the company’s asset base, including successful planned maintenance turnarounds, resulting in third-quarter production of 1,507 MBOED, excluding Libya.
  • Cash provided by operating activities was $4.8 billion. Excluding working capital, cash from operations (CFO) of $4.1 billion exceeded capital expenditures and investments of $1.3 billion, generating free cash flow (FCF) of $2.8 billion. CFO was reduced by approximately $0.2 billion due to non-recurring impacts further explained in the Third-Quarter Review section below.
  • Distributed a total of $4.0 billion to shareholders year to date, comprised of $2.2 billion in share repurchases and $1.8 billion in dividends as part of the company’s plan to return approximately $6 billion to shareholders during 2021.
  • Increased the quarterly dividend by 7% to 46 cents per share.
  • Ended the quarter with combined cash, cash equivalents and restricted cash of $10.2 billion and short-term investments of $0.7 billion, totaling $10.9 billion in ending cash and short-term investments.
  • As part of a commitment to ESG excellence, announced an improvement to the company’s Scope 1 and 2 greenhouse gas emissions-intensity reduction targets from a 2016 baseline to 40-50% on a net equity and gross operated basis by 2030, from the previous target of 35-45% on only a gross operated basis.
  • Announced highly accretive pending acquisition of Shell Enterprises LLC’s (Shell) complementary Delaware Basin position in the Permian for $9.5 billion in cash, before customary closing adjustments.
  • Generated approximately $0.2 billion in disposition proceeds from Lower 48 non-core asset sales as part of the company’s targeted dispositions. Production from the disposed assets averaged approximately 15 MBOED in the first nine months of 2021.

Third-Quarter Review

Production excluding Libya for the third quarter of 2021 was 1,507 thousand barrels of oil equivalent per day (MBOED), an increase of 441 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions as well as impacts from the 2020 curtailment program, third-quarter 2021 production increased 26 MBOED or 2% from the same period a year ago. This increase was primarily due to new production from the Lower 48 and other development programs across the portfolio, partially offset by normal field decline. Production from Libya averaged 37 MBOED.

In the Lower 48, production averaged 790 MBOED, including 445 MBOED from the Permian, 217 MBOED from the Eagle Ford and 95 MBOED from the Bakken. Lower 48 development progressed as planned and the quarter ended with 15 drilling rigs and seven frac crews at work. In Alaska, drilling continued at GMT2 with first oil on track for the fourth quarter of 2021. Turnarounds were successfully completed during the quarter in Alaska and the Asia Pacific region.

Earnings and adjusted earnings increased from third-quarter 2020 due to higher realized prices and volumes, partially offset by higher operating costs associated with the higher volumes. The company’s total average realized price was $56.92 per BOE, 84% higher than the $30.94 per BOE realized in the third quarter of 2020, as our production remains unhedged and thus realizes the benefit of higher marker prices.

For the quarter, cash provided by operating activities was $4.8 billion. Excluding working capital, ConocoPhillips generated CFO of $4.1 billion. CFO was reduced by approximately $0.2 billion due to expected payment timing of a previously announced dispute settlement, which was offset in operating working capital, and a discretionary pension plan contribution during the period. The company also funded $1.3 billion of capital expenditures and investments, repurchased $1.2 billion of shares, paid $0.6 billion in dividends and made a $0.5 billion deposit under terms of the Shell Permian acquisition agreement. In addition, the company reported $1.5 billion in net sales of investments in financial instruments and generated $0.6 billion in disposition proceeds.

Nine-Month Review

ConocoPhillips’ nine-month 2021 earnings were $5.5 billion, or $4.09 per share, compared with a nine-month 2020 loss of $1.9 billion, or ($1.79) per share. Nine-month 2021 adjusted earnings were $5.0 billion, or $3.75 per share, compared with a nine-month 2020 adjusted earnings loss of $0.8 billion, or ($0.78) per share.

Production excluding Libya for the nine months of 2021 was 1,514 MBOED, an increase of 406 MBOED from the same period a year ago. After adjusting for closed acquisitions and dispositions, as well as impacts from the 2020 curtailment program and 2021 Winter Storm Uri, production increased 17 MBOED or 1% from the same period a year ago. This increase was primarily due to new production from the Lower 48 and other development programs across the portfolio, partially offset by normal field decline. Production from Libya averaged 39 MBOED.

The company’s total realized price during this period was $50.92 per BOE, 60% higher than the $31.76 per BOE realized in the first nine months of 2020, as our production remains unhedged and thus realizes the benefit of higher marker prices.

In the first nine months of 2021, cash provided by operating activities was $11.1 billion. Excluding a $0.9 billion change in working capital, ConocoPhillips generated CFO of $10.2 billion. CFO was reduced by approximately $1.1 billion due to transaction and restructuring expenses and realized losses on the commodity hedging portfolio acquired from Concho. The company funded $3.8 billion of capital expenditures and investments, repurchased $2.2 billion of shares, paid $1.8 billion in dividends and reported $2.8 billion in net sales of investments in financial instruments. In addition, the company generated $0.8 billion in disposition proceeds.

Outlook

Fourth-quarter 2021 production is expected to be 1.53 to 1.57 MMBOED, excluding Libya as well as impacts from the pending Shell Permian acquisition.

This guidance includes the impact of planned conversion of the significant majority of previously acquired Concho two-stream contracted volumes to a three-stream (crude oil, natural gas and natural gas liquids) reporting basis as Concho volumes are integrated into the company’s commercial activities. The conversion to three-stream reporting is neutral to earnings. Effective in the fourth quarter, this conversion is expected to add production of approximately 40 MBOED and increase both revenue and operating costs by roughly $70 million.

The company updated its 2021 depreciation, depletion and amortization expense guidance to $7.1 billion versus the prior guidance of $7.4 billion, reflecting positive revisions to proved reserves as a result of higher commodity prices. The company’s other guidance items are unchanged.

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. A recording and transcript of the call will be posted afterward.

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About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 14 countries, $87 billion of total assets, and approximately 9,900 employees at Sept. 30, 2021. Production excluding Libya averaged 1,514 MBOED for the nine months ended Sept. 30, 2021, 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, plans 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 the acquisition of assets from Shell Enterprises LLC (the “Shell Acquisition”) or any announced or any future dispositions or acquisitions on time, if at all; the possibility that regulatory approvals for the Shell Acquisition or any 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 the Shell Acquisition or any other 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 assets from the Shell Acquisition or achieve the anticipated benefits from the transaction; 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 Shell Acquisition or 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, operating costs, adjusted operating costs, cash from operations (CFO) and free cash flow (FCF).

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. 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 FCF 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. FCF 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. Adjusted earnings is defined as net income (loss) attributable to ConocoPhillips adjusted for the impact of special items that do not directly relate to the company’s core business operations, or are of an unusual and non-recurring nature. 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. CFO is defined as cash provided by operating activities, excluding the impact of changes in operating working capital. FCF is defined as CFO net of capital expenditures and investments. 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 and closed dispositions with an assumed close date of January 1, 2020. 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
3Q20 2021 YTD 2020 YTD
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 $ 2,379 1.78 (450 ) (0.42 ) 5,452 4.09 (1,929 ) (1.79 )
Adjustments:
Impairments ) 21 (68 ) (0.06 ) - - - - (89 ) 21 (68 ) (0.05 ) 556 (122 ) 434 0.40
(Gain) loss on CVE shares ) - (17 ) (0.01 ) 162 - 162 0.14 (743 ) - (743 ) (0.57 ) 1,302 - 1,302 1.20
Transaction and restructuring expenses (25 ) 27 0.02 - - - - 366 (78 ) 288 0.22 - - - -
(Gain) loss on asset sales (19 ) 28 0.02 - - - - (221 ) 3 (218 ) (0.16 ) (551 ) (14 ) (565 ) (0.53 )
Pension settlement expense (5 ) 23 0.02 27 (6 ) 21 0.02 70 (14 ) 56 0.04 27 (6 ) 21 0.02
Net loss on accelerated settlement of Concho hedging program - - - - - - - 132 (31 ) 101 0.08 - - - -
Unrealized (gain) loss on FX derivative - - - 8 (2 ) 6 0.01 12 (3 ) 9 0.01 (55 ) 11 (44 ) (0.04 )
Pending claims and settlements - - - (89 ) 19 (70 ) (0.06 ) 48 (10 ) 38 0.03 (121 ) 19 (102 ) (0.09 )
Alberta tax credit - - - - - - - - - - - - (48 ) (48 ) (0.04 )
Deferred tax adjustments - - - - - - - - 75 75 0.06 - 92 92 0.09
Adjusted earnings / (loss) $ 2,372 1.77 (331 ) (0.31 ) 4,990 3.75 (839 ) (0.78 )
The income tax effects of the special items are primarily calculated based on the statutory rate<br> of the jurisdiction in which the discrete item resides.

All values are in US Dollars.

ConocoPhillips
Table 2: Reconciliation of reported production to pro forma underlying production
In MBOED, Except as Indicated
3Q21 3Q20 2021 YTD 2020 YTD
Total Reported ConocoPhillips Production 1,544 1,067 1,553 1,112
Adjustments:
Libya (37 ) (1 ) (39 ) (4 )
Total Production excluding Libya 1,507 1,066 1,514 1,108
Closed Dispositions^1^ (12 ) (7 ) (13 ) (34 )
Closed Acquisitions ^2^ - 320 - 322
Total Pro Forma Underlying Production 1,495 1,379 1,501 1,396
Estimated Production Curtailments^3^ - 90 - 105
Estimated Downtime from Winter Storm Uri^4^ - - 17 -
^1^ Includes production related to the completed Australia-West disposition and various Lower 48 dispositions.
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^2^ Includes production related to the acquisition of Concho which closed on January 15, 2021. 2020 has been pro forma adjusted for the acquisition based on volumes publicly reported by Concho.
^3^ Estimated production impacts from price related curtailments, which are excluded from Total Production excluding Libya and Total Underlying Production.
^4^ Estimated production impacts from Winter Storm Uri, which are excluded from Total Production excluding Libya and Total Underlying Production.
ConocoPhillips
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Table 3: Reconciliation of net cash provided by operating activities to free cash flow
Millions, Except as Indicated
2021 YTD
Net Cash Provided by Operating Activities 11,128
Adjustments:
Net operating working capital changes 898
Cash from operations 10,230
Capital expenditures and investments 3,767
Free Cash Flow 6,463

All values are in US Dollars.

Contacts

Dennis Nuss (media)

          281-293-1149 

          *dennis.nuss@conocophillips.com*

Investor Relations

          281-293-5000 

          *investor.relations@conocophillips.com*

Exhibit 99.2
2021
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 6,158 2,749 4,386 5,491 18,784 9,826 9,556 11,326 30,708
Equity in earnings of affiliates 234 77 35 86 432 122 139 239 500
Gain (loss) on dispositions (42 ) 596 (3 ) (2 ) 549 233 59 2 294
Other income (loss) (1,539 ) 594 (38 ) 474 (509 ) 378 457 49 884
Total Revenues and Other Income 4,811 4,016 4,380 6,049 19,256 10,559 10,211 11,616 32,386
Costs and Expenses
Purchased commodities 2,661 1,130 1,839 2,448 8,078 4,483 2,998 4,179 11,660
Production and operating expenses 1,173 1,047 963 1,161 4,344 1,383 1,379 1,389 4,151
Selling, general and administrative expenses (3 ) 156 96 181 430 311 117 128 556
Exploration expenses 188 97 125 1,047 1,457 84 57 65 206
Depreciation, depletion and amortization 1,411 1,158 1,411 1,541 5,521 1,886 1,867 1,672 5,425
Impairments 521 (2 ) 2 292 813 (3 ) 2 (89 ) (90 )
Taxes other than income taxes 250 141 179 184 754 370 381 403 1,154
Accretion on discounted liabilities 67 66 62 57 252 62 63 61 186
Interest and debt expense 202 202 200 202 806 226 220 219 665
Foreign currency transactions (gain) loss (90 ) 7 (5 ) 16 (72 ) 19 10 (10 ) 19
Other expenses (6 ) (7 ) 20 6 13 24 37 17 78
Total Costs and Expenses 6,374 3,995 4,892 7,135 22,396 8,845 7,131 8,034 24,010
Income (loss) before income taxes (1,563 ) 21 (512 ) (1,086 ) (3,140 ) 1,714 3,080 3,582 8,376
Income tax provision (benefit) 148 (257 ) (62 ) (314 ) (485 ) 732 989 1,203 2,924
Net Income (Loss) (1,711 ) 278 (450 ) (772 ) (2,655 ) 982 2,091 2,379 5,452
Less: net income attributable to noncontrolling interests (28 ) (18 ) - - (46 ) - - - -
Net Income (Loss) Attributable to ConocoPhillips (1,739 ) 260 (450 ) (772 ) (2,701 ) 982 2,091 2,379 5,452
Net Income (Loss) Attributable to ConocoPhillips
Per Share of Common Stock (dollars)
Basic (1.60 ) 0.24 (0.42 ) (0.72 ) (2.51 ) 0.75 1.55 1.78 4.10
Diluted (1.60 ) 0.24 (0.42 ) (0.72 ) (2.51 ) 0.75 1.55 1.78 4.09
Average Common Shares Outstanding (in thousands)*
Basic 1,084,561 1,076,659 1,077,377 1,073,580 1,078,030 1,300,375 1,348,637 1,332,286 1,327,216
Diluted 1,084,561 1,077,606 1,077,377 1,073,580 1,078,030 1,302,691 1,353,201 1,336,379 1,330,652
*Ending Common Shares Outstanding is 1,318,947 as of September 30, 2021, compared with 1,339,082 as of June 30, 2021.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 107 (195 ) (30 ) (857 ) (975 ) 217 480 517 1,214
Lower 48 (562 ) (471 ) (105 ) (362 ) (1,500 ) 609 1,502 2,094 4,205
Canada (150 ) (177 ) (100 ) (84 ) (511 ) 16 135 205 356
Europe, Middle East and North Africa 311 (60 ) 113 221 585 511 697 878 2,086
Asia Pacific 445 702 84 70 1,301 432 289 377 1,098
Other International 27 (5 ) (11 ) (96 ) (85 ) (5 ) (6 ) (140 ) (151 )
Corporate and Other (1,741 ) 227 (463 ) 22 (1,955 ) (66 ) (17 ) (349 ) (432 )
Consolidated (1,563 ) 21 (512 ) (1,086 ) (3,140 ) 1,714 3,080 3,582 8,376
EFFECTIVE INCOME TAX RATES
Alaska* 24.3 % 27.6 % 47.6 % 25.0 % 26.2 % 26.8 % 22.8 % 21.6 % 23.0 %
Lower 48 22.3 % 22.5 % 25.0 % 33.2 % 25.2 % 23.2 % 21.7 % 22.1 % 22.1 %
Canada 26.8 % 51.8 % 24.9 % 33.4 % 36.2 % 33.7 % 24.9 % 24.4 % 25.0 %
Europe, Middle East and North Africa 35.3 % 142.3 % 19.0 % 40.9 % 23.3 % 70.1 % 70.3 % 72.5 % 71.2 %
Asia Pacific 32.7 % 5.2 % 70.0 % 75.9 % 22.6 % 26.6 % 39.4 % 31.9 % 31.8 %
Other International -2.0 % -2.6 % 28.7 % 17.9 % 24.3 % 28.0 % 7.6 % 30.4 % 29.4 %
Corporate and Other -1.9 % 18.7 % 15.9 % -361.1 % 3.9 % -85.1 % 496.6 % 38.9 % 37.9 %
Consolidated -9.5 % -1330.4 % 12.0 % 28.9 % 15.4 % 42.7 % 32.1 % 33.6 % 34.9 %
*Alaska including taxes other than income taxes. 61.2 % -18.9 % 126.4 % 16.9 % -15.1 % 50.3 % 38.8 % 36.0 % 40.0 %

All values are in US Dollars.

2021
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 81 (141 ) (16 ) (643 ) (719 ) 159 371 405 935
Lower 48 (437 ) (365 ) (78 ) (242 ) (1,122 ) 468 1,175 1,631 3,274
Canada (109 ) (86 ) (75 ) (56 ) (326 ) 10 102 155 267
Europe, Middle East and North Africa 201 25 92 130 448 153 207 241 601
Asia Pacific 272 648 25 17 962 317 175 257 749
Other International 28 (6 ) (8 ) (78 ) (64 ) (4 ) (5 ) (97 ) (106 )
Corporate and Other (1,775 ) 185 (390 ) 100 (1,880 ) (121 ) 66 (213 ) (268 )
Consolidated (1,739 ) 260 (450 ) (772 ) (2,701 ) 982 2,091 2,379 5,452
SPECIAL ITEMS
Alaska (120 ) 81 - (648 ) (687 ) (20 ) (2 ) (1 ) (23 )
Lower 48 (467 ) 40 70 (221 ) (578 ) (236 ) (10 ) 56 (190 )
Canada (29 ) 77 - - 48 (3 ) 52 77 126
Europe, Middle East and North Africa (2 ) 2 - - - - - (5 ) (5 )
Asia Pacific (4 ) 601 - - 597 199 - - 199
Other International 29 - - (67 ) (38 ) - - (105 ) (105 )
Corporate and Other (1,632 ) 453 (189 ) 365 (1,003 ) 140 335 (15 ) 460
Consolidated (2,225 ) 1,254 (119 ) (571 ) (1,661 ) 80 375 7 462
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 201 (222 ) (16 ) 5 (32 ) 179 373 406 958
Lower 48 30 (405 ) (148 ) (21 ) (544 ) 704 1,185 1,575 3,464
Canada (80 ) (163 ) (75 ) (56 ) (374 ) 13 50 78 141
Europe, Middle East and North Africa 203 23 92 130 448 153 207 246 606
Asia Pacific 276 47 25 17 365 118 175 257 550
Other International (1 ) (6 ) (8 ) (11 ) (26 ) (4 ) (5 ) 8 (1 )
Corporate and Other (143 ) (268 ) (201 ) (265 ) (877 ) (261 ) (269 ) (198 ) (728 )
Consolidated 486 (994 ) (331 ) (201 ) (1,040 ) 902 1,716 2,372 4,990
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 23.0 % 26.6 % 47.6 % 128.6 % 62.9 % 26.4 % 22.7 % 21.7 % 23.0 %
Lower 48 18.0 % 22.5 % 23.3 % 73.7 % 28.3 % 23.3 % 21.7 % 22.0 % 22.2 %
Canada 27.2 % 25.0 % 24.9 % 33.4 % 26.8 % 28.3 % 26.2 % 25.7 % 26.2 %
Europe, Middle East and North Africa 36.9 % 132.9 % 19.0 % 40.9 % 23.3 % 70.2 % 70.3 % 72.7 % 71.3 %
Asia Pacific 32.5 % 41.3 % 70.0 % 75.9 % 42.6 % 49.3 % 39.4 % 31.9 % 38.8 %
Other International 28.6 % -2.6 % 28.7 % 1.5 % 12.1 % 28.0 % 7.6 % -7.1 % 61.3 %
Corporate and Other -13.9 % 15.0 % 25.0 % 17.6 % 14.9 % 8.1 % 18.7 % 38.9 % 22.4 %
Consolidated 38.2 % 26.3 % 18.2 % 9.2 % 11.1 % 44.8 % 36.8 % 34.2 % 37.3 %

All values are in US Dollars.

2020 2021
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Transaction and restructuring expenses - - - - - (26 ) (2 ) (1 ) (29 )
Impairments (154 ) 109 - (841 ) (886 ) - - - -
Subtotal before income taxes (154 ) 109 - (841 ) (886 ) (26 ) (2 ) (1 ) (29 )
Income tax provision (benefit)^1^ (34 ) 28 - (193 ) (199 ) (6 ) - - (6 )
Total (120 ) 81 - (648 ) (687 ) (20 ) (2 ) (1 ) (23 )
Lower 48
Transaction and restructuring expenses - - - - - (175 ) (13 ) (15 ) (203 )
Net realized loss on accelerated settlement of Concho hedging program - - - - - (132 ) - - (132 )
Impairments (561 ) 50 - (283 ) (794 ) - - 89 89
Gain (loss) on asset sales (38 ) 2 - - (36 ) - - - -
Pending claims and settlements - - 89 - 89 - - - -
Subtotal before income taxes (599 ) 52 89 (283 ) (741 ) (307 ) (13 ) 74 (246 )
Income tax provision (benefit) (132 ) 12 19 (62 ) (163 ) (71 ) (3 ) 18 (56 )
Total (467 ) 40 70 (221 ) (578 ) (236 ) (10 ) 56 (190 )
Canada
Impairments (39 ) 39 - - - - - - -
Gain (loss) on asset sales - - - - - - 68 100 168
Transaction and restructuring expenses - - - - - (3 ) - - (3 )
Subtotal before income taxes (39 ) 39 - - - (3 ) 68 100 165
Income tax provision (benefit)^2^ (10 ) (38 ) - - (48 ) - 16 23 39
Total (29 ) 77 - - 48 (3 ) 52 77 126
Europe, Middle East and North Africa
Impairments (11 ) 11 - - - - - - -
Transaction and restructuring expenses - - - - - (1 ) - (24 ) (25 )
Subtotal before income taxes (11 ) 11 - - - (1 ) - (24 ) (25 )
Income tax provision (benefit) (9 ) 9 - - - (1 ) - (19 ) (20 )
Total (2 ) 2 - - - - - (5 ) (5 )
Asia Pacific
Gain (loss) on asset sales - 587 - - 587 200 - - 200
Impairments (5 ) 5 - - - - - - -
Transaction and restructuring expenses - - - - - (1 ) - - (1 )
Subtotal before income taxes (5 ) 592 - - 587 199 - - 199
Income tax provision (benefit)^3^ (1 ) (9 ) - - (10 ) - - - -
Total (4 ) 601 - - 597 199 - - 199
Other International
Pending claims and settlements 29 - - - 29 - - - -
Gain (loss) on asset sales - - - - - - - (147 ) (147 )
Exploration expense - - - (84 ) (84 ) - - - -
Subtotal before income taxes 29 - - (84 ) (55 ) - - (147 ) (147 )
Income tax provision (benefit) - - - (17 ) (17 ) - - (42 ) (42 )
Total 29 - - (67 ) (38 ) - - (105 ) (105 )
Corporate and Other
Pension settlement expense - - (27 ) (17 ) (44 ) - (42 ) (28 ) (70 )
Pending claims and settlements - 3 - (46 ) (43 ) - (48 ) - (48 )
Transaction and restructuring expense - - - (24 ) (24 ) (85 ) (8 ) (12 ) (105 )
Gain (loss) on investment in Cenovus Energy (1,691 ) 551 (162 ) 447 (855 ) 308 418 17 743
Unrealized gain (loss) on CAD FX derivative 75 (12 ) (8 ) (17 ) 38 (4 ) (8 ) - (12 )
Subtotal before income taxes (1,616 ) 542 (197 ) 343 (928 ) 219 312 (23 ) 508
Income tax provision (benefit)^4^ 16 89 (8 ) (22 ) 75 79 (23 ) (8 ) 48
Total (1,632 ) 453 (189 ) 365 (1,003 ) 140 335 (15 ) 460
Total Company (2,225 ) 1,254 (119 ) (571 ) (1,661 ) 80 375 7 462
^1^Includes deferred tax adjustment in 2Q 2020 in Alaska.
^2^Includes recognition of a tax refund in 2Q 2020 in Canada.
^3^Includes tax adjustment in 2Q 2020 for the Australia-West disposition.
^4^Includes deferred tax adjustment related to foreign tax credits in 2Q 2020 and 1Q 2021.
2021
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 3,908 2,907 2,490 2,991 2,991 2,831 6,608 9,833 9,833
Short-term investments 3,866 3,985 4,032 3,609 3,609 4,104 2,251 678 678
Accounts and notes receivable 2,116 1,399 1,984 2,634 2,634 4,339 4,401 5,336 5,336
Accounts and notes receivable—related parties 148 133 135 120 120 142 123 129 129
Investment in Cenovus Energy 420 971 809 1,256 1,256 1,564 1,802 1,416 1,416
Inventories 726 982 1,034 1,002 1,002 1,098 1,138 1,043 1,043
Prepaid expenses and other current assets 1,960 676 575 454 454 536 849 1,746 1,746
Total Current Assets 13,144 11,053 11,059 12,066 12,066 14,614 17,172 20,181 20,181
Investments and long-term receivables 8,707 8,334 8,295 8,017 8,017 8,286 8,013 8,058 8,058
Loans and advances—related parties 167 167 114 114 114 59 59 - -
Net properties, plants and equipment 40,645 41,120 41,269 39,893 39,893 58,270 57,717 56,689 56,689
Other assets 2,370 2,372 2,420 2,528 2,528 2,464 2,442 2,376 2,376
Total Assets 65,033 63,046 63,157 62,618 62,618 83,693 85,403 87,304 87,304
Liabilities
Accounts payable 2,900 2,060 2,217 2,669 2,669 3,779 3,591 4,101 4,101
Accounts payable—related parties 21 20 22 29 29 22 22 30 30
Short-term debt 126 146 482 619 619 689 1,205 920 920
Accrued income and other taxes 853 312 339 320 320 959 1,406 2,082 2,082
Employee benefit obligations 323 422 469 608 608 567 571 691 691
Other accruals 1,852 1,145 1,111 1,121 1,121 1,168 1,355 2,625 2,625
Total Current Liabilities 6,075 4,105 4,640 5,366 5,366 7,184 8,150 10,449 10,449
Long-term debt 14,847 14,852 14,905 14,750 14,750 19,338 18,805 18,748 18,748
Asset retirement obligations and accrued environmental costs 5,316 5,465 5,651 5,430 5,430 5,782 5,819 5,721 5,721
Deferred income taxes 4,141 3,901 3,854 3,747 3,747 4,982 5,331 5,630 5,630
Employee benefit obligations 1,563 1,586 1,661 1,697 1,697 1,530 1,297 1,162 1,162
Other liabilities and deferred credits 1,704 1,644 1,663 1,779 1,779 1,722 1,725 1,479 1,479
Total Liabilities 33,646 31,553 32,374 32,769 32,769 40,538 41,127 43,189 43,189
Equity
Common stock issued
Par value 18 18 18 18 18 21 21 21 21
Capital in excess of par 47,027 47,079 47,113 47,133 47,133 60,278 60,337 60,431 60,431
Treasury stock (47,130 ) (47,130 ) (47,130 ) (47,297 ) (47,297 ) (47,672 ) (48,278 ) (49,521 ) (49,521 )
Accumulated other comprehensive income (loss) (6,145 ) (5,825 ) (5,666 ) (5,218 ) (5,218 ) (5,080 ) (4,920 ) (5,123 ) (5,123 )
Retained earnings 37,545 37,351 36,448 35,213 35,213 35,608 37,116 38,307 38,307
Total Common Stockholders' Equity 31,315 31,493 30,783 29,849 29,849 43,155 44,276 44,115 44,115
Noncontrolling Interests 72 - - - - - - - -
Total Equity 31,387 31,493 30,783 29,849 29,849 43,155 44,276 44,115 44,115
Total Liabilities and Equity 65,033 63,046 63,157 62,618 62,618 83,693 85,403 87,304 87,304

All values are in US Dollars.

2021
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) (1,711 ) 278 (450 ) (772 ) (2,655 ) 982 2,091 2,379 5,452
Depreciation, depletion and amortization 1,411 1,158 1,411 1,541 5,521 1,886 1,867 1,672 5,425
Impairments 521 (2 ) 2 292 813 (3 ) 2 (89 ) (90 )
Dry hole costs and leasehold impairments 67 3 44 969 1,083 6 1 - 7
Accretion on discounted liabilities 67 66 62 57 252 62 63 61 186
Deferred taxes (227 ) (93 ) (108 ) (406 ) (834 ) 203 364 328 895
Undistributed equity earnings 31 373 46 195 645 81 236 (59 ) 258
(Gain) loss on dispositions 42 (596 ) 3 2 (549 ) (233 ) (59 ) (2 ) (294 )
(Gain) loss on investment in Cenovus Energy 1,691 (551 ) 162 (447 ) 855 (308 ) (418 ) (17 ) (743 )
Other (284 ) 40 56 231 43 (581 ) (107 ) (178 ) (866 )
Net working capital changes 497 (519 ) (360 ) 10 (372 ) (15 ) 211 702 898
Net Cash Provided by Operating Activities 2,105 157 868 1,672 4,802 2,080 4,251 4,797 11,128
Cash Flows from Investing Activities
Cash acquired from Concho - - - - - 382 - - 382
Capital expenditures and investments (1,649 ) (876 ) (1,132 ) (1,058 ) (4,715 ) (1,200 ) (1,265 ) (1,302 ) (3,767 )
Working capital changes associated with investing activities 81 (332 ) 22 74 (155 ) 61 (59 ) 77 79
Proceeds from asset dispositions 549 764 (1 ) 5 1,317 (17 ) 177 632 792
Net sales (purchases) of investments (935 ) (95 ) (59 ) 431 (658 ) (499 ) 1,801 1,544 2,846
Collection of advances/loans—related parties 66 - 50 - 116 52 - 53 105
Other (44 ) 9 4 5 (26 ) 6 80 (472 ) (386 )
Net Cash Used in Investing Activities (1,932 ) (530 ) (1,116 ) (543 ) (4,121 ) (1,215 ) 734 532 51
Cash Flows from Financing Activities
Net issuance (repayment) of debt (24 ) (190 ) 280 (20 ) 46 (26 ) (18 ) (319 ) (363 )
Issuance of company common stock 2 - (4 ) (3 ) (5 ) (28 ) 3 52 27
Repurchase of company common stock (726 ) - - (166 ) (892 ) (375 ) (606 ) (1,243 ) (2,224 )
Dividends paid (458 ) (455 ) (454 ) (464 ) (1,831 ) (588 ) (583 ) (579 ) (1,750 )
Other (24 ) (4 ) 1 1 (26 ) 2 1 3 6
Net Cash Used in Financing Activities (1,230 ) (649 ) (177 ) (652 ) (2,708 ) (1,015 ) (1,203 ) (2,086 ) (4,304 )
Effect of Exchange Rate Changes (122 ) 29 31 42 (20 ) (2 ) 11 (12 ) (3 )
Net Change in Cash, Cash Equivalents and Restricted Cash (1,179 ) (993 ) (394 ) 519 (2,047 ) (152 ) 3,793 3,231 6,872
Cash, cash equivalents and restricted cash at beginning of period 5,362 4,183 3,190 2,796 5,362 3,315 3,163 6,956 3,315
Cash, Cash Equivalents and Restricted Cash at End of Period 4,183 3,190 2,796 3,315 3,315 3,163 6,956 10,187 10,187
CAPITAL EXPENDITURES AND INVESTMENTS
Alaska 509 223 150 156 1,038 235 228 235 698
Lower 48 776 354 268 483 1,881 718 762 770 2,250
Canada 74 68 451 58 651 33 35 61 129
Europe, Middle East and North Africa 121 130 159 190 600 121 136 128 385
Asia Pacific 103 85 92 104 384 76 72 87 235
Other International 53 10 3 55 121 6 12 15 33
Corporate and Other 13 6 9 12 40 11 20 6 37
Total Capital Expenditures and Investments 1,649 876 1,132 1,058 4,715 1,200 1,265 1,302 3,767

All values are in US Dollars.

2021
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,289 981 1,067 1,169 1,127 1,527 1,588 1,544 1,553
Crude Oil (MBD)
Consolidated operations 642 460 535 581 555 804 836 802 814
Equity affiliates 12 14 13 14 13 14 13 13 13
Total 654 474 548 595 568 818 849 815 827
Over (under) lifting of crude oil (MBD) (20 ) (9 ) 12 40 6 (28 ) 27 42 14
NGL (MBD)
Consolidated operations 116 85 89 98 97 105 120 123 116
Equity affiliates 7 8 8 8 8 8 8 7 8
Total 123 93 97 106 105 113 128 130 124
Bitumen (MBD)
Consolidated operations 66 34 49 69 55 70 68 69 69
Equity affiliates - - - - - - - - -
Total 66 34 49 69 55 70 68 69 69
Natural Gas (MMCFD)
Consolidated operations 1,638 1,221 1,201 1,302 1,339 2,074 2,209 2,144 2,143
Equity affiliates 1,036 1,056 1,034 1,092 1,055 1,081 1,051 1,033 1,055
Total 2,674 2,277 2,235 2,394 2,394 3,155 3,260 3,177 3,198
Industry Prices
Crude Oil (/BBL)
WTI 46.06 27.85 40.93 42.66 39.37 57.84 66.07 70.56 64.82
WCS 25.54 16.58 31.83 33.46 26.85 45.32 54.60 56.99 52.30
Brent dated 50.31 29.20 43.00 44.23 41.68 60.90 68.83 73.47 67.73
JCC (/BBL) 65.89 67.71 30.58 40.83 51.25 43.77 55.88 67.00 55.55
Natural Gas (/MMBTU)
Henry Hub first of month 1.95 1.71 1.98 2.67 2.08 2.71 2.83 4.02 3.19
Average Realized Prices
Total (/BBL) 38.81 23.09 30.94 33.21 32.15 45.36 50.03 56.92 50.92
Crude Oil (/BBL)
Consolidated operations 48.77 25.10 39.49 40.89 39.56 57.18 65.54 70.39 64.62
Equity affiliates 53.14 25.32 37.56 41.16 39.02 59.73 64.10 73.44 65.71
Total 48.86 25.10 39.45 40.89 39.54 57.22 65.51 70.43 64.63
NGL (/BBL)
Consolidated operations 12.81 8.29 13.73 16.30 12.90 24.36 25.62 33.28 28.02
Equity affiliates 42.41 23.93 30.21 35.70 32.69 48.89 44.12 56.70 49.81
Total 14.82 9.88 15.29 17.98 14.61 26.44 26.87 34.79 29.58
Bitumen (/BBL)
Consolidated operations 5.90 (23.11 ) 15.87 19.41 8.02 30.78 37.60 41.19 36.61
Equity affiliates - - - - - - - - -
Total 5.90 (23.11 ) 15.87 19.41 8.02 30.78 37.60 41.19 36.61
Natural Gas (/MCF)
Consolidated operations 3.60 2.64 2.77 3.47 3.17 4.89 4.25 5.93 5.02
Equity affiliates 5.41 3.90 2.61 2.93 3.71 3.54 3.97 5.95 4.48
Total 4.30 3.22 2.70 3.23 3.41 4.42 4.16 5.94 4.84
Exploration Expenses ( Millions)
Dry holes 36 3 44 132 215 6 - - 6
Leasehold impairment 31 - - 837 868 - 1 - 1
Total noncash expenses 67 3 44 969 1,083 6 1 - 7
Other (G&A, G&G and lease rentals) 121 94 81 78 374 78 56 65 199
Total exploration expenses 188 97 125 1,047 1,457 84 57 65 206
U.S. exploration expenses 99 72 86 914 1,171 50 35 32 117
International exploration expenses 89 25 39 133 286 34 22 33 89
DD&A ( Millions)
Alaska 209 191 274 322 996 317 262 201 780
Lower 48 707 548 619 680 2,554 1,000 1,017 988 3,005
Canada 69 66 95 109 339 126 93 85 304
Europe, Middle East and North Africa 196 167 194 212 769 219 234 217 670
Asia Pacific 217 170 217 205 809 211 240 167 618
Other International - - - - - - - - -
Corporate and Other 13 16 12 13 54 13 21 14 48
Total DD&A 1,411 1,158 1,411 1,541 5,521 1,886 1,867 1,672 5,425

All values are in US Dollars.

2020 2021
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 198 153 184 190 181 190 184 163 179
Lower 48 270 166 197 218 213 416 454 457 442
Canada 2 5 6 10 6 11 9 8 10
Norway 84 75 76 75 78 80 81 82 81
Libya 9 - 1 24 8 36 39 35 37
Europe, Middle East and North Africa 93 75 77 99 86 116 120 117 118
Australia/Timor-Leste 4 3 - - 2 - - - -
China 31 30 29 28 30 31 27 27 28
Indonesia 2 2 2 3 2 2 2 2 2
Malaysia 42 26 40 33 35 38 40 28 35
Asia Pacific 79 61 71 64 69 71 69 57 65
Total consolidated operations 642 460 535 581 555 804 836 802 814
Equity affiliates 12 14 13 14 13 14 13 13 13
Total 654 474 548 595 568 818 849 815 827
NGL (MBD)
Consolidated operations
Alaska 19 13 14 16 16 17 15 13 15
Lower 48 89 64 68 75 74 79 97 101 93
Canada 1 2 2 3 2 4 4 4 4
Norway 5 5 5 4 4 5 4 5 4
Europe, Middle East and North Africa 5 5 5 4 4 5 4 5 4
Australia/Timor-Leste 2 1 - - 1 - - - -
Asia Pacific 2 1 - - 1 - - - -
Total consolidated operations 116 85 89 98 97 105 120 123 116
Equity affiliates 7 8 8 8 8 8 8 7 8
Total 123 93 97 106 105 113 128 130 124
Bitumen (MBD)
Canada 66 34 49 69 55 70 68 69 69
Total 66 34 49 69 55 70 68 69 69
Natural Gas (MMCFD)
Consolidated operations
Alaska 8 8 14 9 10 8 11 11 10
Lower 48 679 486 566 611 585 1,319 1,459 1,389 1,389
Canada 20 40 43 57 40 91 84 73 83
Norway 297 263 256 267 270 295 284 291 290
Libya 13 1 - 6 5 14 13 12 13
Europe, Middle East and North Africa 310 264 256 273 275 309 297 303 303
Australia/Timor-Leste 237 114 - - 87 - - - -
Indonesia 309 266 283 300 290 290 290 299 293
Malaysia 75 43 39 52 52 57 68 69 65
Asia Pacific 621 423 322 352 429 347 358 368 358
Total consolidated operations 1,638 1,221 1,201 1,302 1,339 2,074 2,209 2,144 2,143
Equity affiliates 1,036 1,056 1,034 1,092 1,055 1,081 1,051 1,033 1,055
Total 2,674 2,277 2,235 2,394 2,394 3,155 3,260 3,177 3,198
Total (MBOED)
Consolidated operations
Alaska 218 167 201 208 198 208 201 178 196
Lower 48 472 311 359 395 385 715 794 790 767
Canada 72 48 64 91 70 100 95 93 96
Norway 139 124 124 123 127 134 132 135 133
Libya 11 - 1 25 9 39 41 37 39
Europe, Middle East and North Africa 150 124 125 148 136 173 173 172 172
Australia/Timor-Leste 46 24 - - 17 - - - -
China 31 30 29 28 30 31 27 27 28
Indonesia 54 46 49 53 50 50 50 52 51
Malaysia 54 33 47 42 44 48 52 40 46
Asia Pacific 185 133 125 123 141 129 129 119 125
Total consolidated operations 1,097 783 874 965 930 1,325 1,392 1,352 1,356
Equity affiliates 192 198 193 204 197 202 196 192 197
Total 1,289 981 1,067 1,169 1,127 1,527 1,588 1,544 1,553
2021
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 54.78 26.81 40.88 42.61 42.12 59.56 67.87 72.55 66.78
Lower 48*** 40.97 19.87 36.43 38.50 35.17 55.68 64.13 68.59 63.14
Canada - 8.69 25.16 28.57 23.57 47.41 56.87 58.99 53.81
Norway 54.92 32.32 41.79 41.62 42.80 56.72 66.10 72.36 65.60
Libya 64.21 - - 44.93 48.64 59.78 66.88 72.57 66.68
Europe, Middle East and North Africa 55.53 32.32 41.79 42.35 43.30 57.75 66.34 72.43 65.94
Australia/Timor-Leste 47.35 47.21 - - 47.34 - - - -
China 54.10 25.09 39.75 42.80 40.29 58.27 65.63 74.39 66.03
Indonesia 29.33 30.64 36.41 41.21 34.97 53.79 57.16 61.35 57.63
Malaysia 57.67 30.59 46.43 42.42 45.26 62.27 69.77 75.65 68.97
Asia Pacific 54.71 27.98 42.79 42.50 42.84 60.36 67.72 74.66 67.41
Total consolidated operations 48.77 25.10 39.49 40.89 39.56 57.18 65.54 70.39 64.62
Equity affiliates 53.14 25.32 37.56 41.16 39.02 59.73 64.10 73.44 65.71
Total 48.86 25.10 39.45 40.89 39.54 57.22 65.51 70.43 64.63
NGL (/BBL)
Consolidated operations
Lower 48 11.85 6.95 13.51 15.58 12.13 23.99 24.62 32.87 27.48
Canada - 1.64 5.99 8.52 5.41 25.32 27.14 33.47 28.49
Norway 21.54 16.76 23.50 30.80 23.27 34.70 39.49 50.32 40.75
Europe, Middle East and North Africa 21.54 16.76 23.50 30.80 23.27 34.70 39.49 50.32 40.75
Australia/Timor-Leste 39.34 27.90 - - 33.21 - - - -
Asia Pacific 39.34 27.90 - - 33.21 - - - -
Total consolidated operations 12.81 8.29 13.73 16.30 12.90 24.36 25.62 33.28 28.02
Equity affiliates 42.41 23.93 30.21 35.70 32.69 48.89 44.12 56.70 49.81
Total 14.82 9.88 15.29 17.98 14.61 26.44 26.87 34.79 29.58
Bitumen (/BBL)
Canada* 5.90 (23.11 ) 15.87 19.41 8.02 30.78 37.60 41.19 36.61
Total 5.90 (23.11 ) 15.87 19.41 8.02 30.78 37.60 41.19 36.61
Natural Gas (/MCF)
Consolidated operations
Alaska 3.07 2.56 2.48 3.88 2.91 2.23 4.53 2.63 3.06
Lower 48*** 1.48 1.18 1.63 2.21 1.65 4.56 3.27 4.63 4.13
Canada - 0.79 0.71 1.77 1.21 2.37 2.26 2.45 2.36
Norway 3.65 2.21 2.40 4.39 3.23 6.15 7.36 12.28 8.63
Libya 4.53 - - 2.26 3.71 2.71 3.02 4.17 3.27
Europe, Middle East and North Africa 3.68 2.21 2.40 4.34 3.23 5.99 7.17 11.96 8.40
Australia/Timor-Leste** 6.43 10.62 - - 10.04 - - - -
Indonesia 6.58 4.69 5.75 5.85 5.75 6.57 7.19 7.49 7.09
Malaysia 2.93 2.22 2.22 1.85 2.38 2.35 2.61 3.02 2.68
Asia Pacific 5.94 4.74 5.33 5.26 5.39 5.88 6.32 6.66 6.30
Total consolidated operations 3.60 2.64 2.77 3.47 3.17 4.89 4.25 5.93 5.02
Equity affiliates 5.41 3.90 2.61 2.93 3.71 3.54 3.97 5.95 4.48
Total 4.30 3.22 2.70 3.23 3.41 4.42 4.16 5.94 4.84
*Average realized prices exclude additional value realized from third-party purchases and sales for optimization of<br> our pipeline capacity between Canada and the U.S. Gulf Coast.
**Excludes transfers to Darwin LNG plant.
***Average sales prices, including the impact of hedges settling per initial contract terms in the first quarter of<br> 2021 assumed in our Concho acquisition, were 61.90 per barrel for crude oil and 4.07 per mcf for natural gas for the nine-month period ended September 30, 2021. As of March 31, 2021, we had settled all oil and gas hedging positions<br> acquired from Concho.

All values are in US Dollars.

2021
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) (1,775 ) 185 (390 ) 100 (1,880 ) (121 ) 66 (213 ) (268 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (155 ) (174 ) (179 ) (154 ) (662 ) (270 ) (181 ) (176 ) (627 )
Corporate G&A expenses 50 (90 ) (50 ) (110 ) (200 ) (129 ) (65 ) (57 ) (251 )
Technology* 1 (9 ) (8 ) (10 ) (26 ) 41 (4 ) (6 ) 31
Other (1,671 ) 458 (153 ) 374 (992 ) 237 316 26 579
Total (1,775 ) 185 (390 ) 100 (1,880 ) (121 ) 66 (213 ) (268 )
*Includes investment in new technologies or businesses outside of our normal scope of operations and licensing<br> revenues.
Before-Tax Net Interest Expense ( Millions)
Interest expense (216 ) (216 ) (213 ) (216 ) (861 ) (241 ) (235 ) (236 ) (712 )
Capitalized interest 14 14 13 14 55 15 15 17 47
Interest revenue 42 22 9 15 88 6 4 5 15
Total (160 ) (180 ) (191 ) (187 ) (718 ) (220 ) (216 ) (214 ) (650 )
Debt
Total debt ( Millions) 14,973 14,998 15,387 15,369 15,369 20,027 20,010 19,668 19,668
Debt-to-capital ratio (%) 32 % 32 % 33 % 34 % 34 % 32 % 31 % 31 % 31 %
Equity ( Millions) 31,387 31,493 30,783 29,849 29,849 43,155 44,276 44,115 44,115

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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