Equibles

8-K

CONOCOPHILLIPS (COP)

8-K 2020-04-30 For: 2020-04-30
View Original
Added on April 09, 2026

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

    Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

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

Date of Report (date of earliest event reported):   April 30, 2020

ConocoPhillips

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

925 N. Eldridge Parkway

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

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

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

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

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

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

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

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

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

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

Emerging growth company ☐

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

1

Item 2.02 Results of Operations and Financial Condition.

On April 30, 2020 ConocoPhillips issued a press release announcing the company's financial and operating results for the quarter ended March 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 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 April 30, 2020.
99.2 — Supplemental financial information.
104 — Cover Page Interactive Data File (formatted as Inline XBRL and filed herewith).

2

SIGNATURES

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

CONOCOPHILLIPS
/s/ Catherine A. Brooks
Catherine A. Brooks<br><br> <br>Vice President and Controller
April 30, 2020

3

Exhibit 99.1

ConocoPhillips Reports First-Quarter 2020 Results; Announces Quarterly Dividend and Additional Curtailments

HOUSTON--(BUSINESS WIRE)--April 30, 2020--ConocoPhillips (NYSE: COP) today reported a first-quarter 2020 loss of $1.7 billion, or ($1.60) per share, compared with first-quarter 2019 earnings of $1.8 billion, or $1.60 per share. Excluding special items, first-quarter 2020 adjusted earnings were $0.5 billion, or $0.45 per share, compared with first-quarter 2019 adjusted earnings of $1.1 billion, or $1.00 per share. Special items for the current quarter were primarily driven by an unrealized loss on Cenovus Energy equity and price-driven non-cash impairments.

Quarterly Dividend

The company also announced a quarterly dividend of 42 cents per share, payable June 1, 2020, to stockholders of record at the close of business on May 11, 2020.

First-Quarter Highlights

  • Cash provided by operating activities was $2.1 billion. Excluding working capital, cash from operations (CFO) was $1.6 billion.
  • Ended the quarter with cash, cash equivalents and restricted cash totaling $4.2 billion and short-term investments of $3.9 billion, equaling more than $8.0 billion in ending cash and short-term investments.
  • Ended the quarter with approximately $14 billion of liquidity, including $6 billion of available revolving credit facility.
  • Repurchased $0.7 billion of shares and paid $0.5 billion in dividends.
  • Achieved first-quarter production, excluding Libya, of 1,278 MBOED.
  • Produced 399 MBOED from the Lower 48 Big 3 unconventionals.
  • Started up first Montney pad and infrastructure.
  • Generated $0.5 billion in disposition proceeds from Lower 48 non-core asset sales.

First-Quarter Review

Production excluding Libya for the first quarter of 2020 was 1,278 thousand barrels of oil equivalent per day (MBOED), a decrease of 40 MBOED from the same period a year ago. Adjusting for closed and pending dispositions, production increased 52 MBOED primarily due to growth from the Big 3, as well as development programs in Europe, Asia Pacific and Lower 48. This growth more than offset normal field decline and impacts from a third-party pipeline outage on the Kebabangan Field in Malaysia. Production from Libya averaged 11 MBOED.

In the Lower 48, production from the Big 3 averaged 399 MBOED, including Eagle Ford of 233 MBOED, Bakken of 96 MBOED and Permian Unconventional of 70 MBOED. In Alaska, the company progressed construction on the multi-year GMT-2 project, which remains on track for startup in late 2021. The company also completed drilling two wells to further appraise the Willow discovery and one well to test the Harpoon prospect, prior to early termination of the 2020 winter exploration program to minimize risks associated with COVID-19. In Canada, the first phase of development at Montney was initiated with the startup of a 14-well pad and associated infrastructure. Additionally, a planned 24-day turnaround in Qatar was completed.

Earnings decreased from first-quarter 2019 due to a change in Cenovus Energy equity market value, lower realized prices, and price-driven non-cash impairments. Excluding special items, adjusted earnings were lower compared with first-quarter 2019 due to lower realized prices and volumes, partially offset by decreases in operating costs. Dry hole and lease impairment expenses totaled $67 million pre-tax for the quarter, primarily for the Kamunsu East Field in Malaysia that is no longer in our development plans, as well as a dry hole in Norway. The company’s total average realized price was $38.81 per barrel of oil equivalent (BOE), 23 percent lower than the $50.59 per BOE realized in the first quarter of 2019, reflecting lower marker prices.

For the quarter, cash provided by operating activities was $2.1 billion. Excluding a $0.5 billion change in operating working capital, ConocoPhillips generated CFO of $1.6 billion. CFO included a non-cash downward inventory valuation adjustment of $0.2 billion driven by lower commodity prices, which was offset in operating working capital. The company also generated $0.5 billion in disposition proceeds from the sale of the Lower 48 Niobrara and Waddell assets. In addition, the company funded $1.6 billion of capital expenditures and investments, repurchased $0.7 billion of shares, and paid $0.5 billion in dividends. Capital expenditures and investments included approximately $0.1 billion for payments toward the 2019 Argentina acreage acquisition, as well as bolt-on acquisitions in Lower 48. The company also purchased $0.9 billion of short-term and long-term financial instruments.

Other Items

Upcoming operational activities for the company include several seasonal turnarounds and maintenance projects typically conducted in the second and third quarters each year. These activities are planned in Alaska, Norway and various areas in the Asia Pacific region.

The company recently announced that it expects to voluntarily curtail production due to weak prices. Voluntary curtailments for the month of May are now estimated to be 265 thousand barrels of oil per day (MBOD) gross, comprised of 165 MBOD gross in the Lower 48 and 100 MBOD gross at Surmont. This represents approximately 230 MBOED on a net basis.

The company currently estimates voluntary curtailments for the month of June will be 460 MBOD gross, comprised of 260 MBOD gross in the Lower 48, 100 MBOD gross at Surmont and 100 MBOD gross in Alaska. This represents approximately 420 MBOED on a net basis.

Future voluntary curtailment decisions across our areas of operations will be made on a month-by-month basis. Daily net barrel oil equivalent impacts may vary from estimates due to differences in working interests and product mixes.

The company also expects some level of additional curtailments from infrastructure constraints, actions from partner-operated assets or government mandates.

Given ongoing uncertainty, continued market volatility, and production curtailments over the coming months, the company recently announced that its original 2020 guidance items should not be relied upon and that further guidance has been temporarily suspended. During this suspension, the company may provide periodic updates, as appropriate. In addition, the previously provided net income and cash flow sensitivities should not be relied upon as current marker prices are outside the reference price ranges to which the previous sensitivities applied.

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 supplemental information, go to www.conocophillips.com/investor.

--- # # # ---

About ConocoPhillips

Headquartered in Houston, Texas, ConocoPhillips had operations and activities in 17 countries, $65 billion of total assets, and approximately 10,400 employees as of March 31, 2020. Production excluding Libya averaged 1,278 MBOED for the three months ended March 31, 2020, and proved reserves were 5.3 BBOE as of Dec. 31, 2019. For more information, go to www.conocophillips.com.

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

This 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, such as pandemics (including coronavirus (COVID-19)) and epidemics and any related company or government policies and actions to protect the health and safety of individuals or government policies or actions to maintain the functioning of national or global economies and markets; global and regional changes in the demand, supply, prices, differentials or other market conditions affecting oil and gas and the resulting company actions in response to such changes, including changes resulting from the imposition or lifting of crude oil production quotas or other actions that might be imposed by the Organization of Petroleum Exporting Countries and other producing countries; changes in commodity prices; changes in expected levels of oil and gas reserves or production; operating hazards, drilling risks, unsuccessful exploratory activities; unexpected cost increases or technical difficulties in constructing, maintaining, or modifying company facilities; legislative and regulatory initiatives addressing global climate change or other environmental concerns; investment in and development of competing or alternative energy sources; disruptions or interruptions impacting the transportation for 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 dispositions or acquisitions on the timeline currently anticipated, if at all; the possibility that regulatory approvals for our announced dispositions or acquisitions will not be received on a timely basis, if at all, or that such approvals may require modification to the terms of our announced dispositions, acquisitions or our remaining business; business disruptions during or following our announced dispositions or acquisitions, including the diversion of management time and attention; the ability to deploy net proceeds from our announced dispositions in the manner and timeframe we currently anticipate, if at all; potential liability for remedial actions under existing or future environmental regulations; potential liability resulting from pending or future litigation; 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; 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 and cash from operations (CFO).

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

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

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

Other Terms – This news release also contains the terms liquidity and underlying production. Liquidity includes cash, cash equivalents, short-term investments and available borrowing capacity under the company’s revolving credit facility. The company believes liquidity is useful to investors to provide insight into the company’s ability to fund its business plans and debt obligations. Underlying production excludes Libya and reflects the impact of closed and pending 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 and pending 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
1Q19
Income tax After-tax Per share of common stock (dollars) Pre-tax Income tax After-tax Per share of common stock (dollars)
Earnings $ (1,739 ) (1.60 ) 1,833 1.60
Adjustments:
Unrealized (gain) loss on CVE shares - 1,691 1.56 (343 ) - (343 ) (0.30 )
Impairments (177 ) 593 0.54 60 (13 ) 47 0.04
Net gain on asset sales (9 ) 29 0.03 - - - -
Unrealized (gain) loss on FX derivative ) 16 (59 ) (0.05 ) 6 (1 ) 5 0.00
Pending claims and settlements ) - (29 ) (0.03 ) (130 ) (68 ) (198 ) (0.17 )
Recognition of deferred revenue - - - (248 ) 52 (196 ) (0.17 )
Adjusted earnings / (loss) $ 486 0.45 1,148 1.00
The income tax effects of the special items are primarily calculated based on the statutory rate of the jurisdiction in<br> which 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
1Q20 1Q19
Total Reported Production 1,289 1,361
Adjustments:
Libya (11) (43)
Total Production excluding Libya 1,278 1,318
Closed Dispositions^1^ (11) (93)
Pending Dispositions^2^ (46) (56)
Total Underlying Production 1,221 1,169
^1^Includes production from the completed U.K. and various Lower 48 dispositions. ^2^Includes production from the announced Australia-West disposition.
ConocoPhillips
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Table 3: Reconciliation of liquidity position
In Millions, Except as Indicated
Quarter-Ended 12/31/2019
Cash and cash equivalents 5,088
Short-Term Investments 3,028
Revolver 6,000
Total Liquidity 14,116

All values are in US Dollars.

Contacts

John C. Roper (media)

              281-293-1451 

              *john.c.roper@conocophillips.com*                  

              Investor Relations 

              281-293-5000 

              *investor.relations@conocophillips.com*

Exhibit 99.2
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions, Except as Indicated
CONSOLIDATED INCOME STATEMENT
Revenues and Other Income
Sales and other operating revenues 9,150 7,953 7,756 7,708 32,567 6,158 6,158
Equity in earnings of affiliates 188 173 290 128 779 234 234
Gain (loss) on dispositions 17 82 1,785 82 1,966 (42 ) (42 )
Other income (loss) 702 172 262 222 1,358 (1,539 ) (1,539 )
Total Revenues and Other Income 10,057 8,380 10,093 8,140 36,670 4,811 4,811
Costs and Expenses
Purchased commodities 3,675 2,674 2,710 2,783 11,842 2,661 2,661
Production and operating expenses 1,271 1,418 1,331 1,302 5,322 1,173 1,173
Selling, general and administrative expenses 153 129 87 187 556 (3 ) (3 )
Exploration expenses 110 122 360 151 743 188 188
Depreciation, depletion and amortization 1,546 1,490 1,566 1,488 6,090 1,411 1,411
Impairments 1 1 24 379 405 521 521
Taxes other than income taxes 275 194 237 247 953 250 250
Accretion on discounted liabilities 86 87 86 67 326 67 67
Interest and debt expense 233 165 184 196 778 202 202
Foreign currency transactions (gain) loss 12 28 (21 ) 47 66 (90 ) (90 )
Other expenses 8 14 36 7 65 (6 ) (6 )
Total Costs and Expenses 7,370 6,322 6,600 6,854 27,146 6,374 6,374
Income (loss) before income taxes 2,687 2,058 3,493 1,286 9,524 (1,563 ) (1,563 )
Income tax provision 841 461 422 543 2,267 148 148
Net Income (Loss) 1,846 1,597 3,071 743 7,257 (1,711 ) (1,711 )
Less: net income attributable to noncontrolling interests (13 ) (17 ) (15 ) (23 ) (68 ) (28 ) (28 )
Net Income (Loss) Attributable to ConocoPhillips 1,833 1,580 3,056 720 7,189 (1,739 ) (1,739 )
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 ) (1.60 )
Diluted 1.60 1.40 2.74 0.65 6.40 (1.60 ) (1.60 )
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 1,084,561
Diluted 1,146,515 1,131,242 1,113,250 1,099,786 1,123,536 1,084,561 1,084,561
*Ending Common Shares Outstanding is 1,072,425 as of Mar. 31, 2020, compared with 1,084,868 as of Dec. 31, 2019.
INCOME (LOSS) BEFORE INCOME TAXES
Alaska 505 580 417 491 1,993 107 107
Lower 48 261 269 35 9 574 (562 ) (562 )
Canada 73 100 69 (6 ) 236 (150 ) (150 )
Europe and North Africa 709 602 2,345 502 4,158 187 187
Asia Pacific and Middle East 730 642 606 509 2,487 569 569
Other International 130 87 75 (21 ) 271 27 27
Corporate and Other 279 (222 ) (54 ) (198 ) (195 ) (1,741 ) (1,741 )
Consolidated 2,687 2,058 3,493 1,286 9,524 (1,563 ) (1,563 )
EFFECTIVE INCOME TAX RATES
Alaska* 23.9 % 20.5 % 26.6 % 24.7 % 23.7 % 24.3 % 24.3 %
Lower 48 26.2 % 23.1 % 27.7 % -32.5 % 24.0 % 22.3 % 22.3 %
Canada -66.4 % -1.0 % 26.1 % 196.6 % -18.3 % 26.8 % 26.8 %
Europe and North Africa 70.8 % 32.4 % 14.6 % 78.4 % 34.5 % 59.8 % 59.8 %
Asia Pacific and Middle East 26.2 % 17.1 % -3.8 % 41.8 % 19.7 % 25.2 % 25.2 %
Other International -1.3 % 6.6 % 4.4 % -0.8 % 2.8 % -2.0 % -2.0 %
Corporate and Other 3.0 % 13.3 % 74.3 % 86.6 % 119.4 % -1.9 % -1.9 %
Consolidated 31.3 % 22.4 % 12.1 % 42.2 % 23.8 % -9.5 % -9.5 %
*Alaska including taxes other than income taxes. 38.1 % 25.8 % 40.6 % 38.2 % 35.4 % 61.2 % 61.2 %

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
EARNINGS BY SEGMENT
Alaska 384 462 306 368 1,520 81 81
Lower 48 193 206 26 11 436 (437 ) (437 )
Canada 122 100 51 6 279 (109 ) (109 )
Europe and North Africa 207 407 2,001 109 2,724 75 75
Asia Pacific and Middle East 525 517 613 274 1,929 398 398
Other International 131 81 73 (22 ) 263 28 28
Corporate and Other 271 (193 ) (14 ) (26 ) 38 (1,775 ) (1,775 )
Consolidated 1,833 1,580 3,056 720 7,189 (1,739 ) (1,739 )
SPECIAL ITEMS
Alaska - 81 (6 ) 4 79 (120 ) (120 )
Lower 48 (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) (467 )
Canada 68 66 - - 134 (29 ) (29 )
Europe and North Africa - 234 1,845 (7 ) 2,072 (2 ) (2 )
Asia Pacific and Middle East - 52 164 (151 ) 65 (4 ) (4 )
Other International 147 84 86 - 317 29 29
Corporate and Other 517 45 163 273 998 (1,632 ) (1,632 )
Consolidated 685 437 2,142 (111 ) 3,153 (2,225 ) (2,225 )
Detailed reconciliation of these items is provided on page 3.
ADJUSTED EARNINGS
Alaska 384 381 312 364 1,441 201 201
Lower 48 240 331 136 241 948 30 30
Canada 54 34 51 6 145 (80 ) (80 )
Europe and North Africa 207 173 156 116 652 77 77
Asia Pacific and Middle East 525 465 449 425 1,864 402 402
Other International (16 ) (3 ) (13 ) (22 ) (54 ) (1 ) (1 )
Corporate and Other (246 ) (238 ) (177 ) (299 ) (960 ) (143 ) (143 )
Consolidated 1,148 1,143 914 831 4,036 486 486
ADJUSTED EFFECTIVE INCOME TAX RATES
Alaska 23.9 % 25.6 % 25.2 % 25.4 % 25.0 % 23.0 % 23.0 %
Lower 48 25.3 % 23.0 % 23.1 % 20.5 % 23.0 % 18.0 % 18.0 %
Canada 26.7 % 20.8 % 26.1 % 196.6 % 19.5 % 27.2 % 27.2 %
Europe and North Africa 70.8 % 71.3 % 73.4 % 77.7 % 73.0 % 61.0 % 61.0 %
Asia Pacific and Middle East 26.2 % 24.6 % 23.3 % 28.9 % 25.8 % 25.1 % 25.1 %
Other International 9.6 % -32.9 % -2.7 % -0.8 % 0.7 % 28.6 % 28.6 %
Corporate and Other 14.8 % 12.7 % 23.3 % 4.8 % 13.2 % -13.9 % -13.9 %
Consolidated 42.9 % 40.5 % 42.5 % 46.6 % 43.0 % 38.2 % 38.2 %

All values are in US Dollars.

2019 2020
$ Millions 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
DETAILED SPECIAL ITEMS
Alaska
Impairments - - - - - (154 ) (154 )
Pending claims and settlements - 69 - - 69 - -
Subtotal before income taxes - 69 - - 69 (154 ) (154 )
Income tax provision (benefit)^1^ - (12 ) 6 (4 ) (10 ) (34 ) (34 )
Total - 81 (6 ) 4 79 (120 ) (120 )
Lower 48
Impairments (60 ) (95 ) (141 ) (386 ) (682 ) (561 ) (561 )
Gain (loss) on asset sales - - - 82 82 (38 ) (38 )
Pending claims and settlements - (67 ) - 9 (58 ) - -
Subtotal before income taxes (60 ) (162 ) (141 ) (295 ) (658 ) (599 ) (599 )
Income tax provision (benefit) (13 ) (37 ) (31 ) (65 ) (146 ) (132 ) (132 )
Total (47 ) (125 ) (110 ) (230 ) (512 ) (467 ) (467 )
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 ) (10 )
Total 68 66 - - 134 (29 ) (29 )
Europe and North Africa
Impairments - - - - - (11 ) (11 )
Gain (loss) on asset sales - - 1,752 (15 ) 1,737 - -
Subtotal before income taxes - - 1,752 (15 ) 1,737 (11 ) (11 )
Income tax provision (benefit)^3^ - (234 ) (93 ) (8 ) (335 ) (9 ) (9 )
Total - 234 1,845 (7 ) 2,072 (2 ) (2 )
Asia Pacific and Middle East
Gain (loss) on asset sales - 5 - - 5 - -
Impairments - - - - - (5 ) (5 )
Qatar deferred tax adjustment - - - (118 ) (118 ) - -
Pending claims and settlements - - - (2 ) (2 ) - -
Subtotal before income taxes - 5 - (120 ) (115 ) (5 ) (5 )
Income tax provision (benefit)^4^ - (47 ) (164 ) 31 (180 ) (1 ) (1 )
Total - 52 164 (151 ) 65 (4 ) (4 )
Other International
Pending claims and settlements 147 89 89 - 325 29 29
Subtotal before income taxes 147 89 89 - 325 29 29
Income tax provision (benefit) - 5 3 - 8 - -
Total 147 84 86 - 317 29 29
Corporate and Other
Pension settlement expense - - (37 ) (8 ) (45 ) - -
Pending claims and settlements (17 ) 44 34 (17 ) 44 - -
Unrealized gain (loss) on CVE common shares 343 30 116 160 649 (1,691 ) (1,691 )
Unrealized gain (loss) on CAD FX derivative (6 ) (24 ) 15 (18 ) (33 ) 75 75
Recognition of deferred revenue 248 - 49 - 297 - -
Subtotal before income taxes 568 50 177 117 912 (1,616 ) (1,616 )
Income tax provision (benefit)^5^ 51 5 14 (156 ) (86 ) 16 16
Total 517 45 163 273 998 (1,632 ) (1,632 )
Total Company 685 437 2,142 (111 ) 3,153 (2,225 ) (2,225 )
^1^Includes deferred tax adjustment in 2Q 2019 in Alaska.
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^2^Includes deferred tax adjustment in 1Q 2019, and a tax rate change in 2Q 2019 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 and in 3Q<br> 2019 for Malaysia Deepwater tax incentives.
^5^Includes deferred tax adjustment related to foreign tax credits in 4Q 2019.
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
Millions
CONSOLIDATED BALANCE SHEET
Assets
Cash and cash equivalents 6,218 5,941 7,193 5,088 5,088 3,908 3,908
Short-term investments 249 732 908 3,028 3,028 3,866 3,866
Accounts and notes receivable 3,701 3,490 3,478 3,267 3,267 2,116 2,116
Accounts and notes receivable—related parties 168 161 138 134 134 148 148
Investment in Cenovus Energy 1,805 1,835 1,951 2,111 2,111 420 420
Inventories 1,014 1,089 955 1,026 1,026 726 726
Prepaid expenses and other current assets 528 2,552 594 2,259 2,259 1,960 1,960
Total Current Assets 13,683 15,800 15,217 16,913 16,913 13,144 13,144
Investments and long-term receivables 9,302 8,748 8,916 8,687 8,687 8,707 8,707
Loans and advances—related parties 268 268 219 219 219 167 167
Net properties, plants and equipment 45,942 44,334 43,814 42,269 42,269 40,645 40,645
Other assets 2,303 2,111 2,174 2,426 2,426 2,370 2,370
Total Assets 71,498 71,261 70,340 70,514 70,514 65,033 65,033
Liabilities
Accounts payable 3,815 3,618 3,148 3,176 3,176 2,900 2,900
Accounts payable—related parties 31 17 23 24 24 21 21
Short-term debt 113 114 121 105 105 126 126
Accrued income and other taxes 1,539 1,213 1,077 1,030 1,030 853 853
Employee benefit obligations 470 529 543 663 663 323 323
Other accruals 1,402 3,505 1,030 2,045 2,045 1,852 1,852
Total Current Liabilities 7,370 8,996 5,942 7,043 7,043 6,075 6,075
Long-term debt 14,832 14,809 14,799 14,790 14,790 14,847 14,847
Asset retirement obligations and accrued environmental costs 7,730 5,996 6,087 5,352 5,352 5,316 5,316
Deferred income taxes 5,043 4,825 4,693 4,634 4,634 4,141 4,141
Employee benefit obligations 1,704 1,689 1,786 1,781 1,781 1,563 1,563
Other liabilities and deferred credits 1,838 1,872 1,794 1,864 1,864 1,704 1,704
Total Liabilities 38,517 38,187 35,101 35,464 35,464 33,646 33,646
Equity
Common stock issued
Par value 18 18 18 18 18 18 18
Capital in excess of par 46,877 46,922 46,954 46,983 46,983 47,027 47,027
Treasury stock (43,656 ) (44,906 ) (45,656 ) (46,405 ) (46,405 ) (47,130 ) (47,130 )
Accumulated other comprehensive income (loss) (5,914 ) (5,827 ) (5,654 ) (5,357 ) (5,357 ) (6,145 ) (6,145 )
Retained earnings 35,534 36,769 39,484 39,742 39,742 37,545 37,545
Total Common Stockholders' Equity 32,859 32,976 35,146 34,981 34,981 31,315 31,315
Noncontrolling Interests 122 98 93 69 69 72 72
Total Equity 32,981 33,074 35,239 35,050 35,050 31,387 31,387
Total Liabilities and Equity 71,498 71,261 70,340 70,514 70,514 65,033 65,033

All values are in US Dollars.

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

All values are in US Dollars.

2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
TOTAL SEGMENTS
Production
Total (MBOED) 1,361 1,332 1,366 1,334 1,348 1,289 1,289
Crude Oil (MBD)
Consolidated operations 703 688 696 681 692 642 642
Equity affiliates 12 14 14 14 13 12 12
Total 715 702 710 695 705 654 654
Over (under) lifting of crude oil (MBD) 8 (3 ) 19 (2 ) 6 (20 ) (20 )
NGL (MBD)
Consolidated operations 103 110 106 110 107 116 116
Equity affiliates 7 8 8 8 8 7 7
Total 110 118 114 118 115 123 123
Bitumen (MBD)
Consolidated operations 63 51 63 64 60 66 66
Equity affiliates - - - - - - -
Total 63 51 63 64 60 66 66
Natural Gas (MMCFD)
Consolidated operations 1,852 1,704 1,795 1,661 1,753 1,638 1,638
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,036
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,674
Industry Prices
Crude Oil (/BBL)
WTI 54.87 59.80 56.44 56.98 57.02 46.06 46.06
WCS 42.58 49.13 44.18 41.15 44.26 25.54 25.54
Brent dated 63.20 68.82 61.94 63.22 64.30 50.31 50.31
JCC (/BBL) 76.98 63.72 71.59 66.34 69.66 65.89 65.89
Natural Gas (/MMBTU)
Henry Hub first of month 3.15 2.64 2.23 2.50 2.63 1.95 1.95
Average Realized Prices
Total (/BBL) 50.59 50.50 47.07 47.01 48.78 38.81 38.81
Crude Oil (/BBL)
Consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 48.77
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 53.14
Total 59.45 64.88 59.57 60.17 60.99 48.86 48.86
NGL (/BBL)
Consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 12.81
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 42.41
Total 23.85 21.65 15.59 19.67 20.09 14.82 14.82
Bitumen (/BBL)
Consolidated operations 33.15 37.20 32.54 24.58 31.72 5.90 5.90
Equity affiliates - - - - - - -
Total 33.15 37.20 32.54 24.58 31.72 5.90 5.90
Natural Gas (/MCF)
Consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 3.60
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 5.41
Total 6.00 4.76 4.74 4.62 5.03 4.30 4.30
Exploration Expenses ( Millions)
Dry holes 10 16 139 35 200 36 36
Leasehold impairment 17 25 154 25 221 31 31
Total noncash expenses 27 41 293 60 421 67 67
Other (G&A, G&G and lease rentals) 83 81 67 91 322 121 121
Total exploration expenses 110 122 360 151 743 188 188
U.S. exploration expenses 75 70 319 60 524 99 99
International exploration expenses 35 52 41 91 219 89 89
DD&A ( Millions)
Alaska 205 208 200 192 805 209 209
Lower 48 621 709 731 761 2,822 707 707
Canada 56 48 63 63 230 69 69
Europe and North Africa 273 173 222 218 886 196 196
Asia Pacific and Middle East 375 338 332 240 1,285 217 217
Other International - - - - - - -
Corporate and Other 16 14 18 14 62 13 13
Total DD&A 1,546 1,490 1,566 1,488 6,090 1,411 1,411

All values are in US Dollars.

2019 2020
1st Qtr 2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
PRODUCTION
Crude Oil (MBD)
Alaska 210 199 190 205 202 198 198
Lower 48 245 269 277 274 266 270 270
Canada 1 1 1 1 1 2 2
Norway 89 73 91 85 84 84 84
United Kingdom 25 20 19 - 16 - -
Libya 38 37 39 39 38 9 9
Europe and North Africa 152 130 149 124 138 93 93
Australia/Timor-Leste 6 7 6 5 6 4 4
China 41 37 35 29 35 31 31
Indonesia 2 2 2 2 2 2 2
Malaysia 46 43 36 41 42 42 42
Equity affiliates 12 14 14 14 13 12 12
AP/ME 107 103 93 91 98 91 91
Total 715 702 710 695 705 654 654
NGL (MBD)
Alaska 17 17 11 16 15 19 19
Lower 48 74 82 84 85 81 89 89
Canada - 1 - - - 1 1
Norway 4 3 4 5 4 5 5
United Kingdom 4 3 3 - 3 - -
Europe and North Africa 8 6 7 5 7 5 5
Australia/Timor-Leste 4 4 4 4 4 2 2
Equity affiliates 7 8 8 8 8 7 7
AP/ME 11 12 12 12 12 9 9
Total 110 118 114 118 115 123 123
Bitumen (MBD)
Canada 63 51 63 64 60 66 66
Total 63 51 63 64 60 66 66
Natural Gas (MMCFD)
Alaska 8 7 6 8 7 8 8
Lower 48 568 593 649 677 622 679 679
Canada 7 8 9 11 9 20 20
Norway 263 244 226 284 254 297 297
United Kingdom 310 247 218 - 193 - -
Libya 31 27 29 36 31 13 13
Europe and North Africa 604 518 473 320 478 310 310
Australia/Timor-Leste 273 202 222 203 225 237 237
Indonesia 311 314 324 333 321 309 309
Malaysia 81 62 112 109 91 75 75
Equity affiliates 988 1,064 1,076 1,080 1,052 1,036 1,036
AP/ME 1,653 1,642 1,734 1,725 1,689 1,657 1,657
Total 2,840 2,768 2,871 2,741 2,805 2,674 2,674
Total (MBOED)
Alaska 228 217 202 222 218 218 218
Lower 48 414 450 469 472 451 472 472
Canada 65 54 66 67 63 72 72
Norway 137 117 133 137 131 139 139
United Kingdom 80 64 58 - 50 - -
Libya 43 42 44 45 43 11 11
Europe and North Africa 260 223 235 182 224 150 150
Australia/Timor-Leste 56 45 47 43 48 46 46
China 41 37 35 29 35 31 31
Indonesia 54 54 56 58 56 54 54
Malaysia 60 53 55 59 57 54 54
Equity affiliates 183 199 201 202 196 192 192
AP/ME 394 388 394 391 392 377 377
Total 1,361 1,332 1,366 1,334 1,348 1,289 1,289
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
AVERAGE REALIZED PRICES
Crude Oil (/BBL)
Consolidated operations
Alaska 62.81 67.57 62.78 63.43 64.12 54.78 54.78
Lower 48 53.15 59.17 54.38 54.34 55.30 40.97 40.97
Canada - - - - 40.87 - -
Norway 63.16 70.09 64.00 64.25 65.19 54.92 54.92
United Kingdom 59.74 69.22 63.32 - 64.68 - -
Libya 63.22 68.95 62.30 63.95 64.47 64.21 64.21
Europe and North Africa 62.83 69.65 63.47 64.15 64.94 55.53 55.53
Australia/Timor-Leste 59.39 62.22 57.02 58.32 59.29 47.35 47.35
China 59.23 65.40 59.07 63.17 61.26 54.10 54.10
Indonesia 47.07 51.62 48.79 50.35 49.55 29.33 29.33
Malaysia 67.33 73.99 66.26 69.74 69.45 57.67 57.67
AP/ME 62.94 69.78 62.01 65.90 65.02 54.71 54.71
Total consolidated operations 59.45 64.90 59.56 60.14 60.98 48.77 48.77
Equity affiliates 59.53 63.98 59.91 61.58 61.32 53.14 53.14
Total 59.45 64.88 59.57 60.17 60.99 48.86 48.86
NGL (/BBL)
Consolidated operations
Lower 48 20.66 17.91 13.04 16.27 16.83 11.85 11.85
Canada - - - - 19.87 - -
Norway 33.37 29.42 24.38 32.42 30.67 21.54 21.54
United Kingdom 27.65 32.75 22.20 - 27.71 - -
Europe and North Africa 31.15 32.00 23.20 32.42 29.37 21.54 21.54
Australia/Timor-Leste 40.13 39.97 30.13 37.20 37.85 39.34 39.34
AP/ME 40.13 39.97 30.13 37.20 37.85 39.34 39.34
Total consolidated operations 22.74 19.97 14.33 18.26 18.73 12.81 12.81
Equity affiliates 38.19 41.72 30.18 37.28 36.70 42.41 42.41
Total 23.85 21.65 15.59 19.67 20.09 14.82 14.82
Bitumen (/BBL)
Canada* 33.15 37.20 32.54 24.58 31.72 5.90 5.90
Total 33.15 37.20 32.54 24.58 31.72 5.90 5.90
Natural Gas (/MCF)
Consolidated operations
Alaska 3.42 3.19 3.01 3.09 3.19 3.07 3.07
Lower 48 2.74 2.10 1.80 1.92 2.12 1.48 1.48
Canada - - - - 0.49 - -
Norway 6.39 4.31 3.37 4.61 4.72 3.65 3.65
United Kingdom 6.83 4.49 3.69 - 5.19 - -
Libya 4.92 4.79 4.83 4.91 4.87 4.53 4.53
Europe and North Africa 6.55 4.42 3.60 4.63 4.92 3.68 3.68
Australia/Timor-Leste** 0.83 0.78 0.76 0.77 0.79 6.43 6.43
Indonesia 6.69 7.19 6.69 6.66 6.81 6.58 6.58
Malaysia 3.84 3.57 3.44 3.47 3.56 2.93 2.93
AP/ME 6.36 5.89 5.78 5.60 5.91 5.94 5.94
Total consolidated operations 5.27 4.08 3.73 3.88 4.25 3.60 3.60
Equity affiliates 7.31 5.81 6.40 5.75 6.29 5.41 5.41
Total 6.00 4.76 4.74 4.62 5.03 4.30 4.30

All values are in US Dollars.

*Average realized prices exclude additional value realized from third-party purchases and sales for<br> optimization of our pipeline capacity between Canada and the U.S. Gulf Coast.
**Excludes transfers to Darwin LNG plant.
2020
2nd Qtr 3rd Qtr 4th Qtr Full Year 1st Qtr 2nd Qtr 3rd Qtr 4th Qtr YTD
CORPORATE AND OTHER
Corporate and Other Earnings (Loss) ( Millions) 271 (193 ) (14 ) (26 ) 38 (1,775 ) (1,775 )
Detail of Earnings (Loss) ( Millions)
Net interest expense (196 ) (131 ) (123 ) (154 ) (604 ) (155 ) (155 )
Corporate G&A expenses (65 ) (49 ) (34 ) (104 ) (252 ) 50 50
Technology* 96 (10 ) 43 (6 ) 123 1 1
Other 436 (3 ) 100 238 771 (1,671 ) (1,671 )
Total 271 (193 ) (14 ) (26 ) 38 (1,775 ) (1,775 )
*Includes investment in new technologies or businesses outside of our normal scope of operations and<br> licensing revenues.
Before-Tax Net Interest Expense ( Millions)
Interest expense (243 ) (178 ) (200 ) (214 ) (835 ) (216 ) (216 )
Capitalized interest 10 13 16 18 57 14 14
Interest revenue 32 33 45 39 149 42 42
Total (201 ) (132 ) (139 ) (157 ) (629 ) (160 ) (160 )
Debt
Total debt ( Millions) 14,945 14,923 14,920 14,895 14,895 14,973 14,973
Debt-to-capital ratio (%) 31 % 31 % 30 % 30 % 30 % 32 % 32 %
Equity ( Millions) 32,981 33,074 35,239 35,050 35,050 31,387 31,387

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

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